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A PROJECT REPORT ON “CUSTOMERS PERCEPTION TOWARDS HDFC STANDARD LIFE” SUBMITTED BY ABHISHEK PADHI PGPM/09-11/04 ASIAN SCHOOL OF BUSINESS MANAGEMENT BHUBANESWAR Page 1 CERTIFICATE FROM THE INTERNAL GUIDE This is to certify that the work entitled ―Customers perception towards HDFC Standard life‖ with special reference to HDFC Standard life insurance company Ltd and its various innovative plans is a piece of term project done by Abhishek Padhi, a student of PGPM 1st year bearing Roll No. PGPM/09-11/04 has successfully completed his summer internship programme under my guidance and supervision for partial fulfillment of PGPM curriculum of ASIAN SCHOOL OF BUSINESS MANAGEMENT, BHUBANESWAR. To the best of my knowledge and belief the term project report: 1. Embodies the work of the candidate himself. 2. Has been duly completed. 3. Is up to the standard both in respect to contents and language for being referred to the examiner. I wish him all the best for his future. Prof. Rohit Prashar Internal guide Page 2 DECLARATION I here by declare that the report ―customers perception towards HDFC Standard life ―is a bonafied record of the work done by me at ―HDFC Standard life‖ at Cuttack new towards the practical fulfillment of requirement for degree in post graduate programme in management master of business administration under the supervision and guidance of Prof. Rohit Prashar and Mrs. Smita Bhuyan (Branch Manager HDFCSL, Cuttack new) and this project report have not been submitted any where else previously for award of any degree. Place: Date: ABHISHEK PADHI Page 3 PREFACE Private life insurers in the country are lucky that the recent SEBI ban on unit-linked insurance plans (ULIPs) was cancelled. They would have lost almost half their businesses if the market regulator‘s ban on 14 insurers from raising funds through the investment-cum-insurance product. That is because Ulips constitute 46% of the total business in the life insurance space. ―Ulip has taken a prominent place in the global insurance market and India is not far behind. It has become the growth engine over the years in the Indian insurance market. Of Rs 2,00,000 crore-plus life insurance premium collected in the first 11 months of 2009-10, a little over Rs 91,000 crore came from Ulips, according to the Life Insurance Council of India, an industry body representing 23 life insurers. Premium collection from renewal of Ulips registered a 33% year-on-year jump in the AprilFebruary period to Rs 46,927 crore, showing that majority of the consumers are banking on Ulips for better long-term return. The perception of Ulip has changed over the years. It was initially perceived as a short-term product; now, people consider it more as a long-term investment tool. Insurance firms also mopped up Rs 44,462 crore as new Ulip premium in the 11 months, up 17% from Rs 37,948 crore a year earlier. Ulips are the biggest products for private insurers who derive 70-80% of their premium collection from its sale. The country‘s largest life insurer, the state-owned Life Insurance Corporation derives a little more than half of its total new premium collection from Ulips. There has been significant rise in the Ulip renewal premium collection since 2007 and that goes on to show that there is a huge appetite for the products. The appetite for Ulip products is unlikely to go down even as the controversy erupted as people are bothered about their long-term returns. Ref: http://theeconomictimes.com Page 4 ACKNOWLEDGEMENT Summer internship programme is an aim to give practical orientation to the student, to provide an opportunity and to try and relate the theoretical aspect to the actual challenges in the industry. However, it goes with saying that proper guidance from experts will broaden the horizon of knowledge. Thus, success of any work would be incomplete unless I mention of the people, who made it possible by spending their valuable time and knowledge with me. I consider it as a privilege to express through a paper of this report a few words of gratitude and respect that inspired me in my training. I express my deep sense of gratitude to Mrs. Smita Bhuyan (Branch Manager HDFCSLIC) for her guidance and kind support without which the study would not have been possible. I also express my deep sense of gratitude to Prof. Rohit Prashar for his kind support in bringing out this project report. Lastly I would like to thank all my friends for extending their cooperation to me in presenting this report. ABHISHEK PADHI Page 5 EXECUTIVE SUMMARY I did my summer internship programme (SIP) with HDFC Standard life (HDFCSL) from 14 th April to 5thJune. During my summer training in the Housing Development FinanceCorporation Standard Life insurance company limited (HDFCSL) I got enormous opportunity to learn so many aspects of insurance sector. The job assigned to me was to analyze the customer perception towards the company. My SIP was divided into two parts 1st was customers interface of company and 2nd was research work. Profile:This project ―Customers perception towards HDFC Standard life‖ was a study of several ULIPs(unit link insurance plan). This study helped me to understand the perception and mind set of people while doing investment in different plans. This analysis helped the company to understand its market share of its product. This analysis focused some light on product innovation regarding ULIPs. Reporting: I reported to Mrs. Smita Bhuyan Branch Manager of HDFC Standard life insurance company, Cuttack new on 14thApril. Team contribution: This was individual effort but some of other members of the company and my friends helped me a lot. Learning during SIP: I learned a lot during my project. Firstly it provided me needed corporate exposure (working with team, business communication, prioritizing work). In the first part I learned, how to come across with customers and how to convince them for the product of the company. Page 6 Introduction HDFCSL is one of India’s leading private insurance companies.It offers both individual and group insurance solution. It is a joint venturebetween HDFC and a group of company of Standard Life. I have choseninsurance sector as the place for summer training because in these days this sector is in boom and it will never go down. All people invest their money in insurance and get more benefited. In the sector the work of marketing is more challenging than the other sector because there are 23insurance companies in the market who are giving competition to each other and the work of convince people for investment in respective company is achallenging work and success in the sector proves that the respective personis a good marketer. Today insurance sector India is on boom because allpeople want to invest. Those who don’t know about investment in sharemarket and don’t want to invest in mutual funds they invest in insurancesector. Insurance sector gives them investment plus risk cover. Those whodon’t want to take risk in the investment go to insurance sector. It also givesincome tax benefits to the peoples. Insurance company are now launchingULIP plan and gives chance to the investor to choose their investmentpattern according to their fund investment table(this table is included in theproduct information of the product of HDFC Standard life). This fundinvestment tells us that how much the investor want to take risk. Generallyin the ULIP plan, the thesis is that “The more you risk the more you haveprofit.” Page 7 REVIEW OF LITERATURE Client: HDFC Standard Life Insurance Brand: HDFC Standard Life Insurance (corporate) Agency: Leo Burnett Medium: Television HDFC Standard Life‘s new campaign, featuring Rajasthan Royals players - Shane Warne, Yusuf Pathan, Munaf Patel, Kamran Khan, and Swapnil Asnodkar - promotes and propagates ‗Self Respect‘ via its ‗Sar utha ke jiyo‘ proposition‘. The campaign captures the essence of self belief, pride, and confidence through a journey of the life of these players and depicts how these players have been able to achieve success despite all odds. The Brief: Sanjay Tripathy, Executive Vice President and Head - Marketing, HDFC Standard Life, explained, ―Our association with Rajasthan Royals is aimed at bringing to the fore our common values – self respect or living life with head held high. The campaign is a natural outcome of our effort in propagating the values of self pride, confidence, and self belief.‖ Commenting on the campaign, Rupesh Kashyap, Creative Director, Leo Burnett, said, ―When we started working on this brief, we had not one or two challenges, but almost four challenges. First challenge was to bring out a personal story or experience about the cricketers, which they knew it better than anybody. Second challenge was to make them feel comfortable, because they were going to share their personal story with the world for the first time. Third was to shoot five individual films within five hours. And the fourth challenge was to make them act. Wow! We did it and how.‖ The Execution: The primary task for the communication was to extend the brand philosophy of self respect and pride (‗Sar utha ke jiyo‘) to cricket. The idea came from the observation that some determined individuals overcome all odds to achieve success. Where others see adversity and despair, they see a challenge and hope. They strive and they struggle to reach their chosen goal, and thus, Page 8 ‗earn‘ their pride. Drawing inspiration from such extraordinary people, HDFC Standard Life exhorts us to ‗Play with pride and live with pride‘ (‗Sar utha ke Khelo, Sar utha ke jiyo). Final Product: The campaign captures the essence of self belief, pride, and confidence through a journey of the life of these players and depicts how these players have been able to achieve success despite all odds. The video blends the common values (to both HDFC Standard Life and Rajasthan Royals) – self respect – with each of the success stories of these players. HDFC Standard Life‘s new campaign takes slice of life instances where the players have strived against all odds to succeed in their passion to play cricket. Each of them has overcome all hurdles and challenges that life has thrown at them, but they never gave up hope. They have always believed in themselves and their ability and arrive at this point of their lives without depending on anybody else – a true moment of pride. The HDFC Standard Life communication captures these moments in the players‘ lives and salutes this spirit through this campaign. Page 9 NEED OF THE STUDY The project was an attempt to explore the customer perceptionof HDFCSL‖ in Cuttack. The project was started on 14thApril, after knowing all the relevant information about the companyinsurance product and policies and its competitor‘s insurance products inaccordance with the prescribed schedule mentioned by management of HDFCSL.The project started in Cuttack, Bhubaneswar and Bhawanipatna region covering the local market. Inthis process I met 60 persons to collect information about HDFCSL. I collected information for the company by questionnaire method I met 50 persons to recruit them as a financial consultant. Ihave tried to recruit FC by meeting them personally. Duringmy work I found the perception of the people about insurance, what theydesire from it, and if they will work as financial consultant than what theywant from the organization. SCOPE OF STUDY During the summer training I have done my work through telephone calls, questionnaire, and contacting persons by going to their home. In the entirework I have contacted person who is a student, person who is working in the organization and visited different colleges.I found that most of person can join insurance company for savingtaxes, unlimited earning, life time earning with little effort, which will givehim back support as a HEAD of the family in the diverse situation.This project will help to understand the current market scenario andmarketing in stiff competition. Being a student of management I can drawthe relevant conclusion from the market survey and give the appropriatesuggestion to the organization.The company can take decision according to the suggestions and itwill provide better experience to the students for their bright carrier. Myproject 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. Page 10 ABOUT HDFSLIC HDFCstands for Housing Development Finance CorporationIt was incorporated in 1977 as a public limitedcompany with the specialization in provision of housing finance toindividuals’ cooperative societies and the corporate sector. One significantmatter about the HDFC is that it is first private sector retail housing financecompany and it is listed on both BSE and NSE. Standard life insurance was founded in 1825. Standard life wasreincorporated as a mutual assurance company in 1925. It’s largest mutuallife insurance company in Europe.For the joint venture between HDFC and SLIC, the discussioncommenced in January 1995 and the agreement signed in October 1995.Further joint venture agreement renewed in October 1998. In January 2000the life insurance project team established in Mumbai. At last the companyofficially incorporated in 14th August 2000. It is the matter of great happiness 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 75% shareholding in the hand of HDFC and Standard life has 25% shareholding in this joint venture. Page 11 COMPANY PROFILE 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 selling its products and recruitment of financial consultant and the whole company based on it because the main aim of company is to get business and sell lots of policies 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 bestvalue for money, and set the standards in the industry. In short, ―The mostobvious 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,employees and they should be friendly with us. It wants to live in the eye andheart of the customer. It wants to give them the easiest deal so that they can understand the terms and policies. As we know that profit is the main aimof any business but it think not only about his profit but also profit of thecustomer. It wants to be the choice of all people on the basis of trust ofcustomer, delivering high value to the customer, and deliver of best value of the money. Value that will be observed while we work with HDFCSL. 1. Integrity HDFCSL believes in honest and trustfulness in every action. Transparencyin dealing with customers. It is stick to principles irrespective of outcome. When we work in HDFCSL then we observed that its rules and activity of every person in the organization is just and fair to Page 12 everyone. Integrity is the bedrock on which the company and the expectations of the customers and employees are built. Integrity gives inner feeling to both customer and the employees to work with it. It establishes the credibility of the person defines the character and empowers one to do justice to the job. It enables confidence and trust, achieving transparency and laying a strong foundation for a binding relationship. It guides principle for all walks of life. 2. Innovation It is the process of building a store house of treasures through experiences.Lots of product is going to be launched by the competitors. So it is veryimportant to look every product and process through fresh eyes every day. Itis the significant part of the business that attracts customer.Innovation is essential to exceed customer expectation and maximizecustomer retention because it is the sector of investment so you need tofulfill the customer expectation which help you to retain customer.Innovation helps to achieve competitive advantage. It promotes growth andupgrade standards in the industry. It fosters creativity amongst employeesand partners. It opens a world of new possibilities because it brings newconcept which helps to entice the customer. 3. Customer centric Customer becomes the main properties of any organization. Whatever workdone by the organization runs around the expectations of the customer.Customer becomes centre point of the organization and the main focus ofthe organization becomes to understand his expectations by keeping him asthe Centre point. It gives more focus on customer activity and saying. It triesto understand customer needs and deliver solutions. As we know that themarket is changed. Lots of competitors is here who search chance toincrease their market share and entice your customer so customer interestbecome always supreme. Page 13 4. People Care Genuinely try to understand those people who are working with HDFCSL. It guides their development through training and support. It helps them to develop their requisite their skills so that they can reach their true potential. It tries to know them on a personal front because it works as a performance appraisal. It try to create an environment of trust and openness so that all people who are working here behave friendly and helps to each other because team work is most important for getting success and give respect for the time of others. People are the most valuable assets of the company so it tries to motivate individual to give his/her best. It wants to establish a valuable relationship with them to create a joyful working environment. The mostimportant thing is that it tries to provide job satisfaction for their people. 5. Team work ―One for all and all for one‖ Here whole team takes the ownership of the deliverables. It consults all involved in the work and tries to understand their opinion and then arrive at a common objective. There is a cooperation and support across departmental boundaries. It identifies strengths and weaknesses accordingly allocate responsibility to achieve common objectives. Team work helps everyone to achieve more. It adds joy at work place which adds interest in the work and new stamina in the work. It generates synergy and provides a focused approach. When an idea or activity performed in a group, it has greater acceptability. ―Team work proves one for all and all for one‖. 6. Joy and simplicity It believes in joy and simplicity so that people in the organization will bemore dedicated towards work and they will give more business to theorganization. Work with joy and simplicity brings creativity and newimagination which also brings new innovative ideas that promotecompetitive advantage to the organization. Page 14 MISSION OF HDFSLIC We aim to be the top new life insurance company in the market.This does not just mean being the largest or the most productive company inthe market, rather it is a combination of several things like      Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share Mile stone of HDFCSL 2008 Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment, including identity management respectively. Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award. HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative banks in the rural areas. Continued to increase its focus on quality service, by putting in place a robust mechanism to capture ‗Voice of the Customer‘ through service audits across its offices. This was complemented by use of technology that enabled capture of all interactions with customers across all touch points. Page 15 2007 Sar Utha Ke Jiyo was honoured as ‗Among India‘s 60 Glorious Advertising Moments. The advertisements of the company were ranked 6th amongst ‗The 10 most effective Advertisements‘ in September 2007. Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system. In addition the company also bagged the EMC storage award for being the most innovative users of storage and storage management. Pension Plan Tops Mint‘s Survey of Best TV Ads. HDFC Standard Life‘s advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards organized by the Advertising Agencies Association of India (AAAI). The 3 awards are the highest won by any single brand in the financial services business (including banking, mutual fund, insurance and other financial services). Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity – Economic Times, the leading business publication of India. 2006 Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity – Economic Times, the leading business publication of India. The year witnessed the launch of ‗My Account‘, a web-based facility with various policy servicing options such as switch, premium redirection to be executed by clients, without recourse to visiting a branch As against a regulatory requirement of writing 18% of all policies in rural areas, the company issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the year. The company had been awarded the ―Intelligent Enterprise‖ Award by the Express Computer Magazine – Part of the Indian Express Group, for investing in workflow and imaging technology which helped in increasing volumes without affecting service standards. Page 16 Was selected as the '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). WHAT IS INSURANCE? The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit may be an income or in some other form. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits. Every asset is expected to last for a certain period of time during which it will period of time during which it will provide the benefits. After that, the benefit may not be available. There is a life-time for a machine in a factory or a cow or a motor car. None of them will last forever. The owner is aware of this and he can so manage his affairs that by the end of that period or lifetime, a substitute is made available. Thus, he makes sure that the benefit is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. We can classify insurance in these terms:  It is a system, by which the losses suffered by a few are spread over many,exposed to similar risks. Insurance is a protection against financial loss arising on the happening ofan unexpected event. It is essential that:   The calamity is either natural or unexpected The insured person does not gain out of this arrangement Page 17 SCOPE OF INSURANCE We all know that assets are insured, because they are likely to be destroyed or made nonfunctional before the expected life time, through accident occurrences. Such possible occurrences are called perils. Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a building may be a few lakhs or a few crores of rupees, depending on the cost of building, the contents in it and the extent of damage. The risk onlymeans that there is a possibility of loss or damage. Insurance is done againstthe possibility that the damage may happen. There has to be an uncertaintyabout the risk. The word ―possibility‖ implies uncertainty. Insurance isrelevant only if there are uncertainties.Insurance does not protect the asset. It does not prevent its loss due tothe peril. The peril cannot be avoided through insurance. The risk cansometimes be avoided, through better safety and damage control measures.It only tries to reduce the impact of the risk on the owner of the asset andthose who depend on that asset. They are the ones who benefit from theasset and therefore, would lose, when the asset is damaged. Insurancecompensates for the losses- and that too, not fully.In conclusion we can say that the scope of insurance is very broadand specific because it reduces the losses and risk of owner of the assets dueto perils. It also gives supports to the person in the period of adversesituation. It insured economic consequences. When a person saves, theamount of funds available at any time is equal to the amount of money setaside in past, plus interest. Insurance has no substitute and one more thingabout the insurance is that this is not similar to a hire purchase scheme. Inthe event of death, the balance installments are not excused. They have to bepaid by the surviving family. There is a tax benefits, both in income tax and in capital gains. Marketability and liquidity are better. Life insurance is notonly the best possible way for family protection there is no other way. Theterm of life is hard but the terms of insurance are easy. OBJECTIVES When we talk about objective of the insurance sector we can divide it intothree categories which are thus.    Broad Increased coverage of the population Specific Customer has a wider choice & range of products Service standards to customer Economic Savings mobilization Page 18 In this objective part the first part deals with its market share because it deals with all people who live in India and it has a broad market potential. So the main motto is to increase and entice more and more people for insurance. In the second part it deals with innovative plans and schemes for the wider choice of people and different range of products of its competitors. It tries to serve its customer with significant way. HDFCSL invest the investment in the share market through the unit link plans and get and give significant return from the markets and satisfy their customer. Insurance history INDIAN INSURANCE INDUSTRY: Insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurers:  Life Insurance Corporation of India (LIC) General Insurers:   General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer) GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies.     The Oriental Insurance Company Limited The New India Assurance Company Limited National Insurance Company Limited United India Insurance Company Limited. Yr: 2000-2001 : ( From 2nd April '2000 to 31st December'2001) Page 19 Insurance Industry in the year 2000-2001 had 16 new entrants, namely: Life Insurers: S.No. Registration Date of Number Reg. 1 2 3 4 5 6 7 8 9 10 101 104 105 107 109 110 111 114 116 117 Name of the Company 23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited 31.01.2001 Birla Sun Life Insurance Company Ltd. 12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited . 02.08.2001 ING Vysya Life Insurance Company Private Limited 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 Metlife India Insurance Company Ltd. General Insurers : S.No. 1 2 3 4 5 6 Registration Date of Name of the Company Number Registration 102 103 106 108 113 115 23.10.2000 23.10.2000 04.12.2000 22.01.2001 02.05.2001 03.08.2001 Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Page 20 Limited. Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002) Insurance Industry in this year, so far has 5new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 121 Name of the Company 03.01.2002 Reliance Life Insurance Company Limited. 2 122 14.05.2002 Aviva Life Insurance Co. India Ltd. General Insurers : S.No. 1 2. 3. Registration Date of Name of the Company Number Registration 123 124 125 15.07.2002 27.08.2002 27.08.2002 Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd. Yr: 2003-2004 : ( From 1st Jan 2003 till Date) Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. Registration Date of Number Reg. Name of the Company Page 21 1 127 06.02.2004 Sahara India Insurance Company Ltd. Yr: 2004-2005 : Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 128 Name of the Company 17.11.2005 Shriram Life Insurance Company Ltd. Yr: 2006-2007 : Insurance Industry in this year, had 1new entrants; namely Life Insurers: S.No. 1 Registration Date of Number Reg. 130 14.07.2006 Name of the Company Bharti AXA Life Insurance Company Ltd. Yr: 2007-2008 : Insurance Industry in this year, had 5 new entrants; namely Page 22 Life Insurers: S.No. Registration Date of Number Reg. 1 2 133 135 Name of the Company 04.09.2007 Future Generali India Life Insurance Company Limited 19.12.2007 IDBI Fortis Life Insurance Company Ltd. General Insurers: 3 4 5 131 132 134 03-082007 04-092007 16-112007 Apollo Munich Health Insurance Company Limited Future Generali India Insurance Company Limited Universal Sompo General Insurance Company Ltd. Yr: 2008-2009 : Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in General ; namely Life Insurers: S.No. Registration Date of Number Reg. 1 2 136 138 Name of the Company 08.05.2008 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 27.06.2008 Aegon Religare Life Insurance Company Ltd. Page 23 3 4 5 140 142 143 27.06.2008 DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd., 05.11.2009 IndiaFirst Life Insurance Company Ltd. General Insurers: S.No. 1 2 3 Registration Date of Number Reg. 137 139 141 8.05.2008 Name of the Company Shriram General Insurance Company Limited, 27.06.2008 Bharti Axa General Insurance Company Ltd. 15.12.2008 Raheja QBE General Insurance Co. Ltd INSURANCE BUSINEES: Insurance business is divided into four classes : 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. Page 24 LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the current insurers – website information of insurers is provided at the web page for insurers ): Life Insurance: Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More than 80% of the life insurance business is from these products. General Insurance: Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products (please visit website of GIC for details ) 2001 New products have been launched by life insurers. These include linked-products. For details, please visit the websites of life insurers. INFORMATION About the insurance industry, the following documents may be helpful: Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector); Page 25 IRDA's First Annual Report - 2001 CUSTOMER PROTECTION: Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers. PRODUCT SCOPE HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The company caters to both, individuals as well as to companies looking to provide benefits to their employees. For individuals, the company has a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. The customers can choose from a range of products to suit their life-stage and needs. For organizations they have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: 1. INDIVIDUAL PRODUCTS 2. GROUP PRODUCTS 3. RURAL PRODUCTS 4. SOCIAL PRODUCTS Page 26 TAX BENEFITS For Individuals, HDFC Standard Life has a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. Customer can choose from a range of products to suit his life-stage and needs. For Organizations, HDFC Standard Life has a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. Individual Products: HDFC Children's Plan, HDFC Endowment Assurance Plan, HDFC Loan Cover Term Assurance Plan, HDFC Money Back Plan, HDFC Personal Pension Plan, HDFC Single Premium Whole Of Life Plan, HDFC Term Assurance Plan, HDFC Unit Linked Endowment, HDFC Unit Linked Endowment Plus, HDFC Unit Linked Pension, HDFC Unit Linked Pension Plus, HDFC Unit Linked Young Star, Page 27 HDFC Unit Linked Young Star Plus At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, varied range of products that customer can choose from to suit all needs. These will help secure customer future as well as the future of family. Protection Plans: Customer can protect his family against the loss of his income or the burden of a loan in the event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term Assurance Plan. Investment Plans: HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term investment needs. HDFC Standard Life provides with attractive long term returns through regular bonuses. Pension Plans: HDFC Standard Life Pension Plans help secure financial independence even after retirement. Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked Pension Plus Savings Plans. Savings Plans: HDFC Standard Life Savings Plans offer flexible options to build savings for future needs such as buying a dream home or fulfilling children‘s immediate and future needs. Page 28 Group Products: Group Term Insurance, Group Variable Term Insurance, Group Unit Linked Plan, Gratuity Group Unit Linked Plan, Superannuation Group Unit Linked Plan , Leave Encashment Page 29 PRODUCT PORTFOLIO HDFC offers products as per the life stages of the customers and their respective needs. Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly. Page 30 LIFE STAGES & NEEDS IN HAT STAGES STAGE 1: YOUNG & SINGLE An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early NEEDS: Save for Home & Wedding Tax Planning Save for Golden Years STAGE 2: JUST MARRIED Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life, it is equally important to ensure that eventualities don‘t come in the way of shaping your dreams. Page 31 NEEDS: Planning for home / securing your home loan liability. Save for vacation. Save for your first child. STAGE 3: PROUD PARENTS Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your child‘s dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. NEEDS: Provide for children's education Safeguarding family against loan liabilities Savings for post-retirement STAGE 4: PLANNING FOR RETIREMENT Page 32 While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. NEEDS – Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years. MILESTONES IN THE HISTORY HDFC is India‘s leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs.36000Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. Rated ‗AAA‘ by CRISIL and ICRA for the 10th consecutive year Page 33 Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. Presented the ‗Dream Home‘ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards HDFC Standard Life Insurance is the first private life insurance company to be granted a license by IRDA Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India‘s number 1 personal finance magazine Rated by ‗Business world‘ as ‗India‘s Most Respected Private Life Insurance Company‘ in 2004. Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005) Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns 2.4 COLLABORATIONS & AFFILIATIONS: SUBSIDIARY AND ASSOCIATE COMPANIES: HDFC Bank HDFC Mutual Fund HDFC Standard Life Insurance Company HLSIL HDFC Chubb General Insurance Company Ltd. Intelnet Global Services Ltd. Other Companies Co-Promoted by HDFC Financial Information with regard to Subsidiary Companies Page 34 PRODUCTs OF HDFCSL As we know that lots of insurance plan are playing in the market of different companies. HDCFSL has launched various insurance plans which based on unit link plan. It invests the investment of his consumer in bank deposits,Government securities and Bonds, and Equity. The percentage of theseinvestments 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 given below: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 1. Unit linked Young Star plus II As a parent, your priority is your children‘s future and being able to meettheir dreams and aspiration. Today, we need more money for providing a good education, establishing a Page 35 professional career or even a modest weddingbecause these are expensive. Costs are increasing fast. Just imagine howmuch we need when our children take these important steps in life when institute like IIM is increasing their fees for education by leaps and bound.This plan ensures us a bright future for your children. It makes yourchild able to lead a life of respect and dignity with a secured financial future.Benefits of this planThe HDFC unit linked Young star Plus II gives us:        Valuable protection to your child in case you are not around. An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investments. Regular loyalty units to boost your fund value every year. Flexible benefit combinations and premium payment options. Flexible additional benefit options such as critical illness cover. Flexible benefit payment preferences- Double and Triple Benefit. Four steps to your own plan. Step1) IN this policy you will continue to pay each year of the policy. Youcan pay monthly, halfyearly or annually. The minimum regular premium isRs. 15,000 per year for annual and half yearly policies. For monthly mode,the minimum regular premium is Rs 1500 per month. Step2) we can choose any amount of sum Assured with, a minimum of 5times your chosen annul regular premium and a maximum of 40 times yourchosen annul regular premium. Step3) it offers a range of valuable protection options to secure the futurefor whole family. In this policy the customer can choose any one of bothwhich life option (death Benefit) is and life and health option (death benefit+ critical illness benefit). It offers flexible benefit payment preference. 2. Unit Linked Enhanced Life Protection II The massage of this policy is ―invest in financial security and self respect for you and your family‖. In this policy, the investment risk in investmentportfolio is borne by the policyhold er. In Page 36 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 plan The 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 ofthoroughly researched and select investment. . 4) Flexible premium payment options. Steps regarding this plan Step1) Choose your regular premium: - this is the premium you willcontinue to pay each year of the policy. You can pay monthly, half-yearly orannually. The minimum regular premium is Rs.15, 000 per year or annualand half yearly policies. For monthly mode, the minimum regular premiumis Rs. 1500 per month. Step2) Choose your level of protection: - You can choose any amount ofSum Assured with a. a minimum of term of your policy/2 times your chosenannul regular premium.And b. a maximum of 20 times your chosen annual regular premium.In this plan in case of your fortunate demise duringthe policy term, we will pay the greater of your current Sum assured (less any withdrawals you had made in the two years before your claim) and yourtotal fund value to your family. Page 37 3. Unit Linked Pension Plus The massage of this plan is living a life of dignity and self respect. It is designed to provide a retirement income for life with the freedom tomaximize your investment returns. Stride into your golden years ofretirement with dignity and pride. Benefits of HDFC Unit Linked Pension Plus This plan is giving you some benefits which will help you in the oddsituation. The benefits of this plan are thus:a)An outstanding investment opportunity by providing a choice ofthoroughly researched and selected investments. b) Regular loyalty units to boost your fund value every year c) A post retirement income for life d) Flexibility to plan your premiums as per your preference. Steps of your own plan Step1) Choose your retirement age: - In this plan firstly you have to chooseany age you wish to retire at (vesting age), between 50 years and 75 years. Step2) this is the premium you will continue to pay each year to the policy. The minimum regular premium is Rs 10,000 per year. You can pay monthly(using standing instructions or ecs mandate), quarterly, half yearly orannually.You may also choose to pay adhoc single premium Top-up oradditional regular premiums depending on the policy type you have chosenand your convenience. Page 38 Unit Linked Pension. The masses of Unit linked Pension is live a life of dignity and self respect.Today we are busy climbing the ladder of success and realizing yourdreams. Today, time is with you. Just take a moment and think. It will makeyou able to continue at the same pace.The HDFC Unit Linked Pension is an insurance policy that isdesigned to provide a retirement income for life with the freedom tomaximize your investment returns. Stride into your golden years ofretirement with dignity and pride. Benefits of this plan The HDFC unit linked pension gives you a) An outstanding investment opportunity by providing a choice ofthoroughly researched and selected investments. b) It gives a post retirement income for life c) Flexibility to plan your retirement date and d) Freedom to invest premiums as per your preference 4.Unit Linked Endowment plus II Its massage is to invest in financial security and self respect for you andyour family in this policy, the investment risk in investment portfolio isborne by the policy holder. Benefits of this product The HDFC unit linked endowment plus II gives a) A valuable protection to your family in case you are not around. Page 39 b) An outstanding investment opportunity by providing a choice of thethoroughlyResearched and selected investment. c) Flexible additional benefit options such as critical illness cover. Simple steps for this product Step1) choose your regular premium: - this is the premium you will continueto pay each year of the policy. You can pay monthly, half-yearly orannually. The minimum regular premium is Rs 15,000 per year for annualand half yearly policies. For monthly mode, the minimum regular premiumis Rs.1, 500 per month.You may also choose to pay adhoc single premium top-up oradditional regular premiums depending on your convenience. Step2) You can choose any amount of sum Assured with: a minimum of (the term of your policy/2) times your chosen annual regularpremium. A maximum of 40 times your chosen annual regular premium. Step3) Choose additional plan benefits: - it offer a range of valuableprotection options to secure the future for your family Life option - Death Benefit Extra Life option - death benefit + accidental Death benefit Life and health option - Death benefit + critical illness benefit Extra life and health option - Death benefit + critical illness benefit+ Accidental Death benefit. Benefit types Summary Page 40 Death Benefit We will pay the greater of your sumassured (less any withdrawals youhave made in the two year beforeyour claim) and your total fund valueto your family.The policy will terminate. Critical illness benefit We will pay the greater of your sumassured (less any withdrawals youhave made in the two year beforeyour claim) and your total fund valueto your family.The policy will terminate. Accidental Death Benefit. In addition to the death benefit, wewill pay a further sum assured toyour family.The policy willterminate. CHOOSE YOUR INVESTMENT FUNDS The most significant part of the Unit Linked Plan is that investor can choosethe mode of investment. In this plan the investment risk in your choseninvestment portfolio is borne by the investor. This means that the premiumsyou pay in this plan are subject to investment risks associated with thecapital markets. The unit prices of the funds may go up or down, reflectingchanges in the capital markets.So to balance investor‘s level of risk and return, making the rightinvestment choice is very important and you are responsible for the choicesyou make. It has 7 funds that give investor:a) The potential for higher but more variable returns over the term of yourpolicy; or b) The more stable returns with lower long-term potential. Page 41 Your investment will buy units in any of the following 7 fundsdesigned to meet your risk appetite. Details of funds are given below:Funds Money market+ + Bank deposit+ ++ Fund composition Liquid fund 100% 100% 70-100% ---------70-100% ------------------------Low Low Asset class Govt. security equity Risk and return rating Stable 0-30% managed fund Secure 0-5% managed fund Defensive 0-5% managed fund Balanced 0-5% managed fund Equity 0-5% managed fund Growth fund 0-5% 0-20% 75-100% ------------ Lowmoderate High 0-15% 50-85% 15-30% 0-15% 20-70% 30-60% Very high 0-10% 0-40% 60-100% Very high -------- ---------- 95-100% Very high + note on the funds shows will manage the investment in each fund so thatthe proportion of each Asset class is always with the ranges. + + showsMoney market instruments. It includes liquid Mutual Funds, commercialpapers, commercial bills, treasury bills, government securities having anunexpired maturity up to one year. Bank deposits means deposits issued byany primary dealer Page 42 or non Banking and banking financial companyapproved by the reserve by the reserve bank of India or any other publicfinancial institutions or by Housing Finance Companies approved by theNational Housing Bank. The past performance of any of the funds is notnecessarily an indication of future performance. Unit prices can go up anddown. No fund offers an assured return. The names of the fund it offer underthis plan do not, in any way, indicate the quality of theplan, its future prospects or returns. India's best Ulips (Sunil Dhawan, Outlook Money) January 03, 2008 We have toyed with the idea for a long time. Should we rank the unit-linked insurance plans (Ulips) in the market? The idea is exciting simply because it has never been done in India before. The idea is good because it allows an investor a handle with which to hold the product. Also, the idea is very daunting because comparing insurance policies is like trying to unravel a noodle soup. The more you stir, the more complicated it looks After discussing with the regulator, some industry leaders and those close to the insurance sector, Outlook Money decided to bite the bullet and get on with the ranking. This is where we realized what an overwhelming task we had taken on. Just comparing the return figure, as given by net asset value data, would be incorrect since a financial product is a function of cost and return. The minute we bring in costs, comparisons became almost impossible to carry out. Unlike the mutual fund product that has a very simple cost structure, Ulips carry a greater number of costs (administration and mortality), in addition to the others. To cut through the confusion and yet be relevant to you, we took illustrations from all 14 life insurance companies for their Ulips for ages 30 and 45. We assumed that a 30-year-old was taking a 20-year policy for an SA of Rs 12.5 lakh, paying an annual premium of Rs 50,000. And a 45-yearold was taking a 10-year policy for an SA of Rs 7.5 lakh with the same premium (see How We Did It). Premiums are paid throughout the term. We also assumed that only the growth, or the fund with up to 100 per cent equity allocation, is chosen. Left with only nine companies, we looked at Type-I and Type-II policies. A Type-I policy just gives the higher of the sum assured or the fund value, making the policy buyer extremely vulnerable to a small corpus in case of an untimely death in the early part of the plan. A Type-II policy gives both the sum assured and the fund value, and sure, itcosts more too. Page 43 RESULT The winner in the Type-I category is Tata AIG Life's Invest Assure II, which has scored primarily because its one-year return, at 72 per cent, was way above the benchmark return of 53 per cent of the BSE Sensex. This despite the fact that it has a fund management charge of 1.75 per cent, more than double the 0.8 per cent that HDFC Standard Life charges. In fact, HDFC Standard Life has done very well on the cost parameter. The insurer is clearly the lowest cost one in our examples, but has lost out due to underperformance over the time period. At returns of 42.7 per cent, HDFC Standard Life has underperformed the benchmark by about 10 percentage points. In fact, Tata and Bharti have outperformed the index by 10 percentage points or more. Four companies were unable to beat the benchmark over a one-year period. In Type-II policies, there is much less competition, with just six companies in the fray. Kotak Life's Platinum Advantage is the winner and has a nice mix of lower costs and decent returns. It has consistently outperformed the benchmark. Early exit options- The Ulip product works over the long term. The earlier the exit, the worse off is the investor since he ends up redeeming a high-front-load product andis then encouraged to move into another higher cost product at that stage. Anearly exit also takes away the benefit of compounding from him. An early exit option in a unit-linked plan shows how the product isstructured. We found many products that clearly encouraged product churnby giving too many zero cost options to get out of the policy after themandatory holding period was over. There are others, like the plans fromMetLife, which encourage a longer holding term. Creeping costs- Page 44 Since the investors are now more aware than before and have begunto ask for costs, some companies have found a way to answer that withoutdisclosing too much. People are now asking how much of the premium willgo to work. There are plans that are able to say 92 per cent will be invested,that is, will have a front load of just 8 per cent. What they do not say is themuch higher policy administration cost that is tucked away inside (adjustedfrom the fund value). While most insurance companies charge an annual feeof about Rs 600 as administration costs, that stay fixed over time, there areplans that charge this amount, but it grows by as much as 5 per cent a yearover time. There are others that charge a multiple of this amount and that toogrows. IRDA (Insurance Regulatory and Development Authority) The Government of India has enacted the Right to Information Act, 2005which has come into effect from October 13, 2005. The Right to Informationunder this Act is meant to give to the citizens of India access to informationunder control of public authorities to promote transparency andaccountability in these organizations. The Act, under Sections 8 and 9,provides for certain categories of information to be exempt from disclosure.The Insurance Regulatory and Development Authority (IRDA) is a publicauthority as defined in the Right to Information Act, 2005. As such, theInsurance Regulatory and Development Authority are obliged to provideinformation to members of public in accordance with the provisions of thesaid Act. Access to the Information held by IRDA The right to information includes access to the information which is held byor under the control of any public authority and includes the right to inspectthe work, document, records, taking notes, extracts or certified copies ofdocuments / records and certified samples of the materials and obtaininginformation which is also stored in electronic form. IRDAWebsite Page 45 The IRDA maintains an active website. The site is updated regularly and allthe information released by the IRDA is also simultaneously made availableon the website. The information published in public domain includes thefollowing: 1.Acts/Regulations 2. Information relating to Insurers/Reinsures, Agents Training Institutes,Appointed Actuaries. 3. Information relating to Surveyors, Third Party Administrators, InsuranceBrokers, CorporateAgents 4. Information relating to Insurance Councils, Insurance Ombudsmen 5.Annual Report/IRDA Journal 6.Press Releases. Complaints against Insurance Companies IRDA has provided for a separate channel for lodging complaints againstdeficiency of services rendered by Insurance Companies. If you have acomplaint/grievance against an insurance company for poor quality ofservice rendered by any of its offices/branches, please approach the NodalOfficer of the Insurance Company concerned. In case you are not satisfiedwith the Insurance Company‘s response you may also file a complaint withthe Insurance Ombudsman in your State. The Insurance Ombudsman is anindependent office to provide speedy and cost effective resolution ofgrievances to the customers. For more details on Insurance OmbudsmanScheme and their contact numbers, please visit. Complaints from Policyholders Page 46 Policyholders who have complaints against insurers are required to firstapproach the Grievance/Customer Complaints Cell of the concerned insurer.If they do not receive a response from insurer(s) within a reasonable periodof time or are dissatisfied with the response of the company, they mayapproach the Grievance Cell of the IRDA. Reinsurance: The insurance Regulatory and Development Authority, IRDA for short, haslaid down that those who wish to become insurance agents will be givenlicenses only after they complete a course of study and pass an examinationprescribed was to last 100 hours. The course, IC 33, was prepared keeping inmind that requirement. In 2007, the period of compulsory study has beenreduced to 50 hours. Life Insurance Sector: Fact Sheet India is emerging as one of the two of the largest markets in the world forlife insurance products, the other being China. In the case of India, the threekey drivers of growth are a large insurable population, a high savings rate,roughly at about 25 per cent and a low penetration, at a mere 2.3 per cent. Inthe 11 months of fiscal year 2004-05, life insurance companies collectedpremium worth Rs 172 billion and the market grew by a whopping 32.4 percent during the year. Of this, the public sector Life Insurance Corporation(LIC) had the lion's share of the market with premium totaling Rs 134billion. Private sector players recorded a spectacular growth of 129 per centover the last year, compared to LIC's growth of 18 per cent. India's GDPgrowth rate of 6 per cent per annum holds great potential for the sector.According to one estimate real life premium are expected to grow at acompounded annual rate of 15 per cent over the next ten years. How does India's life insurance market compare with China's? While India'smarket is currently the fifth largest, China's is the third largest in Asia afterJapan and Korea. Low penetration rate of insurance products is common toIndia and China - at just about 2.3 per cent. In China, the savings rate is at35 per cent while for India it is a little lower at 25 per cent. A large part ofthe growth of the life insurance market in China was driven by theconversion of bank deposits into endowment products. Demographically,China's population is ageing faster than India's. Page 47 FDI in Insurance Sector The government of Indiahas increase the equity limit for foreigndirect investment from the current 26 per cent to 49 per cent in the insurancesector. Liberalizations of the FDI policy, including the Budget proposals forraising the sect oral caps in insurance are one of the main factors for thehigher FDI inflows during the current year. In 2003-04 the total FDI inflowsin the country touched $3.4 billion. Indian insurance companies have beenpushing for the FDI limit to be raised. The current paid-up requirement ofRs 1 billion for general insurance and Rs 2 billion for life insurance havebecome difficult targets to achieve for the companies. The companies feelthat injection of additional foreign equity would reduce their costs. Thesector was liberalized for private players towards the end of 1999. Currently,there are 14 insurance companies, including the key public sector companyLife Insurance Corporation, in the life insurance sector and 13 generalinsurance companies. Key Players in the Indian Market While the public sector LIC dominates the Indian life insurance market withnearly 80 per cent of the market share. It has 248 branches, 115,000employees and over 1 million agents. It has also been improving internalprocesses and systems, upgrading skills of its agency force and managersand developing innovative products. LIC sold 1.69 corers policies during theyear compared to 18 lakh policies sold by all the private players. ICICI Prudential is the leader among the private players with a market shareof 6.69 per cent after its premium collection totaled Rs 11.54 billion. BajajAllianz with sales of Rs 4.9 billion had a market share of 2.86 per cent. BirlaSun Life with sales of Rs 4.8 billion had a market share of 2.81 per cent andSBI Life with premium collection of Rs 3.9 billion, a market share of 2.29Mper cent. With its combination of aggressive marketing through an agencyforce and the use of the banking channel, ICICI has emerged as a key player.Initially, the company drove new business by opening branches in newlocations. The focus has now shifted to penetrating these locations forincreasing market share. The company is also trying to get higherpenetration in the High Net Page 48 Worth segment. The company has seven bankassurance partners and this is the largest contributor to non-agency business.It also has 15 key non-bank partners and 800 financial sales consultants. Asof September 2004, it had 90 branches in 60+ locations. It took the initiativein launching non-traditional products such as life-stage products, retirementsolutions and child plans. It also focused on Unit Linked Plans (ULIPs) totarget new consumer segments. It has a presence in 15 states throughpartnership arrangements and as of 2003-04, it sold 64,764 policies in ruralareas. HDFC Standard Life has established its branches in 110 locations and istargeting non-metro towns. It is hoping to leverage its ―pedigree/parentage‖to gain more customer acceptance. As a result, it is focusing on quality – notjust volume growth. It has developed some innovative products like theLoan Cover Term Assurance Plan which provides a lump sum in case ofdeath of the assured life during the term plan. Aimed at the growing segmentof home loan takers, the plan helps the family to repay the outstanding loan.Given that HDFC has a huge database of homeloan customers; it can easilytap into this resource to acquire new business. The company is leveragingits large customer database of home loan and banking clients to cross-sellinsurance products. Birla Sun Life Birla Sun Life was the first to offer ULIPs in the Indian insurance market.And this has been the primary driver of its growth over the last one year.The company has been investing in customer education and feels that as aresult customers don't view ULIPs as mutual funds but long term insurance.As of 2004, the company had 33 branches, 10,274 agents, 79 corporaterelationships and 10 bank assurance partners. Bajaj Allianz has been focusing on second tier towns and cities which areyet to witness the entry of other life insurance players apart from LIC. It isusing first mover advantage by opening an office in the most prominentlocation in a non-metro town. It hires local people who are trained. Itsmantra is to develop only the indispensable infrastructure so that it canmatch the pricing of LIC. Apart from that it claims that it is the only privateplayer to provide policy servicing at the branch level. Standard Chartered iscurrently its biggest partner followed by Page 49 Syndicate Bank and CenturionBank. The biggest challenge that the company faces is the weakinfrastructure – particularly transport and communications – in the smallercities. It is also facing a challenge in terms of banking channels, particularlyfor customers who bank with cooperative banks, where delays in clearingcheques are inevitable. Tied agencies comprise the biggest channel (68%) ofnew business acquisitions for Bajaj Allianz. Banca insurance (27%) is theother significant channel of growth for the company. Product Preferences among Consumers Pension policies are becoming popular as people prefer to opt for solutionsthat can offer them a regular income after retirement rather than a lump sumon retirement. Maturable policies for a bulk sum are being bought only forlimited single use such as purchase of a house, children‘s higher education,marriage, etc. This consumer trend is likely to help companies that offerpension schemes. Term policies are finding favor with youngsters: Terminsurance policies are also finding more and more takers among the youngergeneration of consumers. Because they offer protection at extremely lowcosts. It is assumed that life insurance is purchased only to avail of tax-breaks. Butthe fact remains that while the tax paying population in the country is justabout 20 million, there is a huge population that has not been tapped. Onlythe urban salaried class who fall in the tax net has been targeted for lifeinsurance policies for tax-saving purposes. The other income-earning classessuch as businessmen, professionals, farmers, provide a great opportunity forlife insurance marketers. There is a need to tap these customer segmentseffectively. Currently all their disposable income is going into purchase ofconsumer durables such as washing machines, TV, refrigerators and mobilephones (as is evident from the fact that spending on savings/investmentproducts has declined from 14 per cent to 4 per cent in the past decade). Mutual Funds (MF) have benefited the most during the last two years. Takethe example of the Systematic Investment Plans (SIP) of mutual funds. Injust one quarter ICICI PRU MF sold 20,000 SIPs and it has the potential ofselling about 100,000 new SIPs in a year. There are 33 Mutual Fundcompanies in the country and based on this trend one could say that theestimated fund inflow in MFs through this route alone could touch the Rs 20billion per month. Due to the Page 50 good performance of MF during the past 2years, life insurance companies have lost out to mutual funds. Marketing strategy of HDFCSL Marketing is process of analyzing the consumer need and serve the need ofconsumer which satisfy the consumer and solve the consumer problem. Inthis sector the marketing is pay main role in brand formation and policyawareness to the public. As we know that LIC is covering more than 75%market share. So marketing helps in increasing the market share. Marketershave to analyze the market share and find out the market. We can divide itsmarketing process in two parts:1) Marketing for Financial Consultant: - Work part-time, earn full-time is the punch line of its marketing strategy. It says just work for 5 hours aweek and earns more than Rs. 20,000 per month. If you will be financialconsultant of HDFCSL then you can have high earning potential, zeroinvestment, and you will not have pressure for work. You can work aswhatever you make your target or you can work as a part-time as per yourconvenience. There are certain facilities for FC:Flexible work timings:-you can work whenever you like and from wheneveryou like. You can work full time or part-time, depending on yourconvenience. It‘s like no other job. However, the time you invest willdetermine you success. Zero investment: - There is no star-up capital. Be your own boss; with aflexible working environment, unlimited earning potential and otheropportunity to be part of a world class team. The advantage is all yours.Sunrise industry: - Life insurance in India has a huge potential for growth.Statistics reveal that only 25% of the insurable population in India isinsured. And those insured are in need of still higher insurance cover. Theover 100% growth displayed by private life insurers indicates this hugeuntapped potential. Strong partnership: - It is one of the fastest growing life insurancecompanies. It was the first private life insurance company to be granted alicense by IRDA. It has been rated by business world class magazine asIndia‘s most respected Private life Insurance Company in 2004. HDFC Standard life Insurance has one of the highest brand recalls of around 86%. 2) Marketing for the potential market: - In our general life we buy thosethings which we see. For consumer awareness print marketing and electronicmarketing both are most important. In the market 17 insurance players istrying to convince people with the advertising in television, radio,newspaper and magazines. HDFC Standard Life is also adopting theseelectronic marketing. Page 51 The punch line of HDFC Standard Life is ―Sar UthaKe Jiyo‖. Today it has more than 8 lack policyholder. It is also targetingcinema halls like PVR where it will get more potential market, formarketing. 3) For insurance sector the main marketer becomes its FinancialConsultant. So it is trying to recruit more and more financial consultant forthe purpose of sale of the policy of HDFC Standard life and people will bemore aware through it because it is a work of contact. Which have morecontact the that person can get more business. 2.5 HEAD OFFICES AND BRANCHES HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd. 'Trade Star', 2nd floor, ’A’ Wing, Page 52 Junction of Kondivita and M.V. Road, Andheri-Kurla, Road, Andheri (East), Mumbai - 400 059. PHONE: Fax: (Board) (022) 2822 0055 / 6751 6666 2822 9998 / 2822 2414 BRANCH LOCATIONS SITE MAP: Objective of the study Page 53 Marketing Research provides information that assists an organization todefine opportunities for product development and market strategy. It worksby assessing whether marketing strategies are accurately targeted, and byidentifying market opportunities or changes that are required by customers.Market research tends to confirm issues that are well-known in a marketinitially, but if planned well and effectively it will also identify newopportunities, market niches, or ways by which to improve sales, marketingand communications activities. The role of market research, therefore, is to reduce uncertainty indecision making, to monitor the effects of decisions taken, and identify theperformance of a company or a product in the market. During internship my market survey was related with the analysis of customer perception. Objective of project My project is being undertaken in HDFCSL in which I had to analyze customer perception towards the company. For this distribution enhancement of insurance policies of HDFCSL hasbeen implemented as a marketing strategy. HDFCSL tied up with worldclass insurance product. Primary Objective The primary objective of my project is to make a market survey. In the insurance sectorthe main work is done by the financial consultant who brings selling for theorganization. It improves the services of the organization. Secondary Objective The secondary objective was to recruit FC and to make insurance policies. Working Procedure In my summer training I targeted Bhubaneswar and Cuttack.Here I had to approach various detail of insurance productof HDFCSL and the other competitors of it, suggestions, its marketingstrategy and its advertisement. As a part of marketing research I also have tocollect data in order to find out market share of HDFCSL from our samplespace. During the period I was in constant touch with areamanager and I have to submit daily report of my work and fullinformation about phone calls and questioners. Questioner consisting ofopen ended questions was used for collection the information. Sample Area Page 54 My working area was Bhubaneswar, Cuttack and Bhawanipatna. As I know that those person will invest ininsurance sector who is aservice holder or a professional. I targeted those peoplewhose age is equal or more than 25. Methods of data Collection Data is the significant part of the research. Your all research depends uponyour data. Whatever data is collected by me during the internship in theHDFCSL, I can divide the method of data collection into two parts. Which are thus:a. Primary data Primary data are those which are collected fresh and for the first time andthus happen to be original in chapters. I have collected my data throughQuestionnaire. . b. Secondary data Secondary data are those data which are being already collected by someoneelse and which have already been passed through the statistical process. Ihave collected my published date form Internet and the books, magazinesand newspaper. Research Design In this project exploratory research is used. In exploratory research data wascollected by open ended questionnaire research method. In my research cross sectional studies, field work and survey was conducted. My studywas concerned with the specific prediction of customers perception. SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. 1. Sampling Units: Service holders, self employed, Business Man, Professionals and Housewives2. Sample Technique: Random Sampling. 3. Research Instrument: Structured Questionnaire. 4. Contact Method:telephone calls. Page 55 Analysis and interpretation 1)For the marketing survey I selected a sample size of 60 respondents. They belong to different age group more than 25 years and less than 66 years. Age groups 26—30 years 31—35 years 36—40 years 41—45 years 46—50 years 51—55 years 56—60 years 61—65 years 1321.66 12 20.00 08 13.33 06 10.00 0406.66 03 03 05.00 05.00 No. of respondents 11 18.33 Percentage 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 Page 56 2)The second thing is Male and female In my sample size there were 52 male and 8 female 86.66% male and 13.33% female male female 3) The third thing in my survey was single or married In my sample there were 21 single and 39 married means 35% single and 65% married single married 4) the fourth thing is occupation Page 57 Service Self employed Student Professional House wife 2745% 14 2 23% 3.33% 13 21.66 4 6.66% service self employed student professional house wife Questionnaire Page 58 Q1. What is your average monthly income? Less than 5000/ 5000-10000/10000-20000/20000-25000/25000-30000/30000-40000/ 40000-50000/50000 & above Monthly income Less than 5000 5000-10000 10000-20000 20000-25000 25000-30000 30000-40000 40000-50000 50000 & above 0 0% 06 35 14 04 01 0 0 10% 58.3% 23.33% 6.66% 1.66% 0% 0% no.of respondent percentage 5000-10000 10000-20000 20000-25000 25000-30000 30000-40000 Q2. What are your view points on life insurance? Page 59 Protection tool/tax savings instrument/savings option/others (please specify) Protection tool Tax savings instrument Savings option Others 40 23 37 0 66.66% 25.55% 61.66% 0% tax savings instrument savings option others Q3. Do you have insurance policy on your life? Yes / no Yes No 48 12 80% 20% yes no Q4. What plan you have taken pleases help me by sharing reasons? Page 60 Most of the customers have taken life insurance policies in LICI . They have different plans like jeevan aanand, money plus, lic life plus, children bright future etc. Q5. Which are the prominent life insurance companies in your locality? Please name two. --------------------------------------------------LICI ICICI prudential Bajaj Allianz SBI life HDFCSL 50 83.33% ------------------------------------------------ 11 18.33% 09 08 15% 13.33% 0610% LICI ICICI prudential Bajaj Allianz SBI life HDFCSL Q6. Have you hard of HDFC ltd? Answer Yes No no.of respondents 55 5 percentage 91.66% 8.33% Page 61 yes no Q7. Have you ever been associated with any group company of HDFC as a customer? Answer Yes No no.of respondents 2 58 percentage 3.33% 96.66% yes no Q8. If yes please share with us the details of the same? Page 62 Q9. Do you know that HDFC is also into insurance business? Answer Yes No no.of respondents 49 11 percentage 81.66% 18.33% yes no Q10. If yes how did you come to know about HDFC being into insurance business? Through advertisement/friends/relatives/internet/others (please specify) Answer Through advertisement Friends Relatives Internet Others no.of respondents 45 14 6 11 0 percentage 75% 23.33% 2.33% 18.33% 0% Page 63 advertisement friends relatives internet Q11. Have any one from HDFCSL approached earlier for any survey / agency/ need analysis? Answer Yes No no.of respondents 3 57 percentage 5% 95% yes no Q12. Are you aware, that you can get an expert advice from HDFCSL on your financial goals? Answer Yes No no.of respondents 28 32 percentage 46.66% 53.33% Page 64 yes no Q13.Would you like to review your financial goals with an expert, who will be assisting you in achieving your financial goals? Answer Yes No no.of respondents 25 35 percentage 41.66% 58.33% yes no Q14.Do you want any of your relatives/friends to know about the services offered by HDFCSL? Answer Yes No no.of respondents 45 15 percentage 75% 25% Page 65 yes no Q15. Can you help me with 2 contacts, whom I can contact similar survey? Secondary data study HDFC Standard Life Insurance Respect Yourself Subject: Effective Communication Various Ad Campaigns Pension Plan Explanation As we see the above Ad campaign there are three characters 1) Grandfather 2) Father & 3) Son This grandfather is an old retired person who accompanies his grandson to the market, where this grandson of is sees a cycle and demands a same like it. Now the old grandfather may not have the money to buy that cycle for his grandson, therefore after returning from the market the father of the child comes to his father and offers him some money that he can go and buy that cycle Page 66 from the market for his grandson. But in the meanwhile the grandfather calls the grandson who is riding his cycle out in the garden. The father of the child is shocked that his father had already bought him a cycle, and then his father asks him to keep the money back or he will feel bad. Therefore Hdfc Standard Life Insurance is the way for a secured old age by which you can be also independent and not dependent on your children Value Projected The value shown in this particular campaign is that even at an old age the grandfather is able to serve his grandson without sacrificing his self-esteem and accepting help from his own son Children‘s Plan Explanation There are 2 main characters projected in the above Ad 1) Father & 2) Daughter The daughter in the annual day function of her school who is presenting a show where she is singing something which says as below ―...na sar jhuka hai kabhi, aur na jhukayenge kabhi, jo apne dam pe kare, sach mein… zindagi hai wahi‖ After reciting the first part she forgets the second part, she continuously looks at her father who gets up and helps her to recollect her lines by acting on it, by which she recollects the lines and feels comfortable to sing the song. SWOT Analysis of HDFC Standard Life Insurance Analysis of the industry‘s environment (SWOT Analysis) 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. STRENGTH 1. Domestic image of HDFC supported by Prudential‘s international image is strength of the company. Page 67 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. 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 leading to power politics at all levels without any exception. 4. Poor retention percentage of tied up agents. 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 world‘s 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,... THREATS 1. The immerging trend of insurance companies in Indian market. 2. Competitors like ICICI Prudential, Bajaj Allianz, LICI , Big MNCs are coming to domestic market. 3. Local companies specialized in providing such services. Page 68 COMPARITIVE ADVANTAGE OVER COMPETITORS PRODUCT I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies parent is insured and child in nominee or beneficiary, Both the policies contains same features, only additional rider is available in smart kid is income benefit rider (IBR), how this rider works? this rider comes in the picture when the parent expires or becomes permanent disable at that time this rider pay 10% of sum assurance to nominee, HDFC Young star offers Insurance Cover up to 20 Times of Annual Premium. You may Pay Rs. 30000 per year & take Insurance Cover of Rs. 6 Lacs. You may take Critical Illness Rider in HDFC Young star up to 65 years Age(as it Cheaper than other ULIPS ). The returns from HDFC Tax saver, HDFC LT Advantage fund are better than the returns from HDFC Standard Life Equity Fund. HDFC Standard ULIP Returns are over 70% in last 1 year. HDFC Young star with Maximum Insurance Cover of Rs.3.6 Lacs Received CIO 'The Ingenius 100 2009' Award 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 has received the CIO 100 Award for the third consecutive year. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment, including Sesame - Identity and Access Management. In 2007, the company received CIO 100 award for Wonders and a Special Award in Storage category. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program – CIO 100. It‘s a celebration of 100 organizations (and the people within them) that are using IT in innovative ways to deliver Page 69 business value, whether by creating competitive advantage, optimizing business processes, enabling growth or improving relationships with customers. HDFC SL 'Mission in Genius' for 15,000 staffers culminates August 20 Mission in Genius, a HR initiative of HDFC Standard Life for its 15,000 employees, is a panIndia quiz property first organised in 2006. This year's event, following the zonal rounds, concluded in a grand finale at ITC Grand Maratha, Mumbai, on August 20. The event was managed by Mumbai-based Cupid Advertising. On the property, Sharad Gangal, GM-HR, HDFC Standard Life, explained, "We believe that knowledgeable employees will give us a competitive advantage. Our people processes are centered around building skills and capabilities that will give us a leading edge in the Industry. We want to promote this culture of knowledge enhancement by going beyond class rooms. Mission In genius is one such initiative that invites involvement through competition, fun and bringing in cross functional synergies together; thereby it becomes an engagement initiative too." The grand finale was the culmination of the two-month pan-India contest. The initial pan-India round was held online and more than 15,000 employees across 595 offices participated. "We believe this enthusiasm is a clear indication of the degree of hunger and craving amongst employees to compete for knowledge enhancement. We had zonal competitions from which 12 teams qualified for the semi finals. The semi final round ended with four teams qualifying, of which the two best scoring teams battled it out in the fiercely fought finals," elaborated Gangal. Mission In Genius' design structure, quiz questions and creatives were developed in-house. Cupid Advertising was appointed to handle set-up and system support during the zonal and national rounds. The finale was conducted by quiz master Barry O' Brain. Certificates, trophies and holiday coupons were awarded to winners Core competency Page 70 Page 71 Work culture The company attributes its success to the contributions made by its employees. We believe that our strength is our people, so our endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry. Talent management initiatives in HDFC Standard Life are driven by a set of organizational core competencies (Mantra 10) as well as position-specific competencies. The competency set includes knowledge, skills, experience, and personal traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life. In this endeavor of shaping and nurturing our talent pool, HDFC Standard Life adopts a four-step model: Page 72 CONCLUSIONS & SUGGESTIONS CONCLUSIONS: People have a very good perception towards HDFCSL. In my marketing survey81.66% respondents know that HDFC is into insurance business. Among them 75% people come to know through advertisement, 3.33% people through friends .33% through relative and 18.33% through internet. 46.33% respondents know that they can get expert advice regarding financial goals. 41.66% respondents want to get financial advice from HDFCSL financial consultants. 75% respondents want their relatives to know about t services of HDFCSL. From the secondary data study it is studied that HDFCSL has a very good marketing strategy we have done the SWOT analysis also. We come to know about the core competency and the competitive advantage. We studied its advertising strategy. From the marketing survey and the secondary data analysis we come to know that HDFCSL is a very good player in the insurance market and the customers perception for its services, products, customer care, brand, FCs, advertisements are too good. 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 got 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 that‘s why it has setup 5-qscore. It gives priority that is professional like as MBA, CA, ENGINEERS, DOCTORS, LAYERS, AND OTHER PROFESSIONAL. In this process I have recruited 3 FCs for the company, two of them are MBA students and one of them is an MA and got insurance policies of Rs. 30,000. Now a day 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%. Page 73 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 1000 crores 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. SUGGESTIONS: Finally some recommendations for the company are as fallows: To make people aware about the benefit of HDFC Standard Life‘s products, and change their perception for the company following activities of advertisement should be done through 1. 2. 3. 4. 5. Print Media. Hoarding & Banners. Stalls in Trade Fares Distribution of leaflets containing details information. Company can recruit sales promoters so that maximum information can be provided to the potential client. Page 74         By showing additional and alternative income source along with various schemes for Financial Consultant in the company so that more and more FC can be recruited. Free life cover for every active Financial Consultant. Discounted rate premium for its family members. Make people understand about the meaning of the IRDA authorization and its validity. Company should organize the program in the society, so that people will be aware about the company Separate time slot for Working Professionals, House Wives and Retired people. Agency of non-life products should also be provided along with life. Company should open more branches in different cities  It should provide better facilities for premium collection and to get the sum assured money.  FC should visit clients for premium collection.  Experts from company should visit the clients with the FC.  FCs should be given better training regarding the products and they should try to create better impact on the customer for the company.  In the advertisements their basic mission should be to change the perception of people towards the HDFC group, because a good brand sells itself.  In the recruitment of financial consultant I found that mostly person don‘t want to give Rs.825. I have faced some difficulties when they don‘t agree to give this much amount. If the company will less this charge then it will get more FC. Page 75 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 to analyze the customer‘s perception. 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 or to take a policy. I analyze that the person who is needy for money, greedy about fast life and believes in speed join insurance because this sector gives you a platform for unlimited earning and life time earning like life time validity in mobile phone. Bibliography  Websites www.hdfcinsurance.com www.hdfc.com www.irda.net www.hdfcbank.com www.theconomictimes.com www.indiabudget.nic.in www.outlookmoney.com www.moneycontrol.com Used literature ―The Times of India‖ ―The economic times‖ E-magazines of HDFCSL Valuable information from corporate guide and faculty guide   Page 76