HDFC Life Insurance

Submitted in Partial Fulfillment for the Diploma Requirements for

PGDM Full Time Programme
Subject : R.M
By
Rahul Guleria
(Roll No. - 70 . Batch 2015-2017)
Shubham Sharma
(Roll No. - 70 . Batch 2015-2017)

To
Faculty Name : Kanika Gandhi

Bharatiya Vidya Bhavans

Usha and Lakshmi Mittal Institute of Management

Kasturba Gandhi Marg, New Delhi
2016

COMPANY PROFILE
Head - Marketing, HDFC Standard Life Insurance Co. Ltd.
Insurance is in a manner of speaking the last frontier in the financial sector to open. It
is also a sector which will lead to benefits across the full spectrum, from the individual
who will now have wider choices, to the economy which will see increased savings, to
the infrastructure sector which can look forward to long term funding being available.
In an under-insured economy, newer channels of distribution will have to be utilized to
intensify the reach of insurance both in urban and rural markets. This will create huge
employment opportunities not only within insurance companies but also as agents and
consultants of insurance companies.
Indian Bank enters into a strategic tie-up with HDFC Standard Life Insurance
Company Ltd .
INDIAN BANK with over 90 years of standing in the financial market with the
reputation for excellent customer service, has entered into a strategic tie-up with
HDFC Standard Life Insurance Company Ltd., the first in the private sector to receive
the Certificate of Registration for foray into Life Insurance business for distribution of
latters insurance products. A Memorandum of understanding has been signed by the
Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has
to its strength 1377 branches spread across the country with ready built infrastructure
and the expertise in marketing financial products. Initially the insurance products will
be marketed through select branches in the South where the Bank has strong
presence. The insurance products from HDFC Standard Life, will be competitive and
customer friendly. The tie-up would benefit the Bank's customers, as they will have
wider choice of life insurance policies at competitive premium.

OBJECTIVES

To study the benefits of this product provided by HDFC Standard Life Insurance
company.

To know the consumer feedback.

To know the marketing strategies adopted to promote these products.

To make the private players responsible to the investors and not to the government.

To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost

Insurance has a far reaching effect in synchronizing between the various service
sectors. So if this sector can grow, the prospects of the various other service sector
remains to be promising.

RESEARCH METLHODOLOGY
Primary Sources
(i) Data collected from Insurance companies through Questionnaire
Secondary Sources
(i) IRDA act,
(ii)Handbook of Insurance agents of different Life Insurance companies
(iii) Internet websites of IRDA and various Life Insurance companies
www.HDFC .com
www.lic.com
The primary study will be targeted towards the marketers. The study will also include
semi-structured interview with marketing managers of various Insurance companies
who are successfully selling Life Insurance Policies to Indian Consumers.
The Secondary Sources will help in tracing the historical framework of Insurance
companies of post independent India as well as the pre-privatization and postprivatization Insurance environment in India. This secondary study will help in
serving the theoretical groundwork for the study.

FINDING & ANALYSIS

The present chapter attempts to discuss
1) The analysis of the research conducted through a questionnaire
2) We are trying to find the awareness of people about the various insurance
companies and the type of insurance that the people avail in general.
3) We also tried to find in detail the awareness about the plans of LIC and HDFC
Standard Life Insurance . We could understand the satisfaction of the people
from the working of insurance company and the problem faced by them.
INSURANCE AVAILED
This graph shows the number of people who are aware and thus availed the different
kind of insurance product. The percentage of people who avail insurance plan is full

no of people

100 % .

80%
70%
60%
50%
40%
30%
20%
10%
0%

yes

no

ANALYSIS: As per todays market situation almost all the people are aware of insurance and have
opted for some or the other type of insurance policy
FACTORS IMPORTANT WHILE OPTING A POLICY
The following graph is about factors that people look while opting for any insurance
plan. The returns have the highest option of 90% and premium bags the second by
85%.

no. of people

80
70
60
50
40
30
20
10
0

Risk Cover

Tax
Benefits

Returns
&savings

Liquidity

ANALYSIS
1) Risk Cover as Savings through insurance guarantee financial protection against risk
of death of policyholder by payment of sum assured and bonus if any.
2) Tax benefits as tax rebate can be availed U/S 88 in majority of Plans and U/S
80CCC(1) for investment up to Rs10, 000 in pension plans.
3) Return&savings long term savings in a painless manner for future needs because
of easy instalment facilities (monthly, quarterly, halfyearly, yearly) and attractive
returns.
4) Liquidity investment in money back policies guarantee periodical payments after
every 3,4or5 years, loans can be raised on policies and security for commercial or
housing loans.
Insurance Company awareness
The bar diagram shows the awareness of people among various companies prevailing
in the market. The is highest LIC with 95% and HDFC pru with 65%.

100
90
80

no. of people

70
60
50
40
30
20
10
0
LIC

ICICI Pru

HDFC Std.

Analysis

Birls Sun
life

Allianz
bajaj

others

The concept of insurance means LICis changing with time. Although most
People know about LIC but their awareness about other insurance companies is also
good.
1) INSURANCE COMPANY AWARENESS
LIC is highest with 99% and HDFC pru with 72%
100
90
80

no. of people

70
60
50
40
30
20
10
0
OTHERS

HDFC Std.

ANALYSIS: All the respondents know about Insurance but there awareness of private insurance
companies ,ICIC Pru is also gaining momentum.

WORKING OF COMPANY SATISFACTION OF PEOPLE/CONSUMERS

The graph shows how much the people are satisfied with the working of the company.
The number of people satisfied is 65% while who are not satisfied are 35%.

70
no. of people

60
50
40
30
20
10
0

yes

no

ANALYSIS: Satisfaction of people from the products and services of insurance companies is quite
high. Around 65% of the people are satisfied from the working of insurance
companies and feel that the problems faced are handled properly and as quickly as
possible

WHOLE LIFE POLICIES

The analysis shows that of all the respondents 8% are aware of LIC Whole life

8%
7%
6%
5%
LIC
HDFC Std.

4%
3%
2%
1%
0%

awareness

availed

Policies and 1% are aware of HDFCs Whole life Policies.1% have availed LICSUN
Insurances Whole Life Policies whereas none have availed HDFCs Policy.

10

TERM INSURANCE

20
18
16
14
12
LIC
HDFC

10
8
6
4
2
0
awareness

availed

The analysis shows that 19% people are aware of LIC Insurances Term Insurance
Policy and 7% people are aware of HDFC s Term Insurance Policy. And 2% availed
LIC and no one has availed HDFC s Policy.

11

ENDOWMENT

The analysis shows that 78% people are aware of LIC Insurances Endowment
80
70
60
50
40

LIC

30

HDFC

20
10
0
awareness

availed

Policies and 28% people are aware of HDFC s Endowment Policies. And 38% of
people have availed LIC Insurances Endowment Policies whereas 3% have
availed HDFC s Policy.

12

MONEY BACK POLICY

90
80
70
60
50
40
30
20
10
0

LIC
HDFC

awareness

availed

The analysis shows that 84% people are aware of LIC Money Back Policy and 24%
people are aware of HDFC s Money Back Policy. 42% of them have availed LIC
Endowment Policies whereas 2% have availed HDFC s Policy.

13

CHILDREN PLAN

25
20
15
LIC
HDFC

10
5
0
awareness

availed

The analysis shows that 24% people are aware of HDFC Children Policy and 8%
people are aware of LIC Children Policy. And 4% availed LIC but no one has availed
HDFC Policy.

14

ANNUITY PLANS

30
25
20
LIC

15

HDFC

10
5
0

awareness

availed

The analysis shows that of all the respondents 12% are aware of LIC Annuity Policies
and 28% are aware of HDFC s Annuity Policies.Only 2% availed LIC and 7% have
availed HDFC s Policy. This shows that HDFC scored over LIC in annuity plans as
most of HDFC s annuity plans are market linked and people buying due to bullish
trend in stock market. LIC has no market linked annuity plans.
PROPOSED SCHEME
The above topic proposed
1) The summary of the overall project
2) The overall conclusion drawn out while doing this project
3) The policy and recommendation, which we fill to be given for the insurance
sector.

15

ANALYSIS
1.

2.

Do you Know about Insurance

(a) Yes -

92%

(b) No

8%

Have you ever opted for Insurance from any Company?

(a) Yes -

61%

(b) No -

39%

16

1. If Yes, Which Company have you taken Insurance from?

LIC
TATA AIG life Insurance
HDFC Standard Life Insurance
HDFC Pur
Max New York Life Insurance
Birla san life Insurance
Met life insurance

42%
7%
12%
19%
8%
10%
2%

17

18

4.

How did you come to know about Insurance?

(a) Advertisement

76%

(b) Word of Mouth

14%

(c) Referred by your company / Friend

10%

19

5.

What made you select a particular Company for the Insurance?

(a) EMI

78%

(b) Brand name

3%

(c) Procedures

9%

(d) Facilities

1%

(e) Policies

7%

(f) Advertisement

2%

20

6.

How do you like the Marketing strategy by different Companys?

(a) Good

68%

(b) Average

19%

(c) Bad

13%

21

7.

What motivates you for selecting any Company for Insurance.

(a) EMI

76%

(b) Brand name

4%

(c) Procedures

9%

(d) Facilities

3%

(f) Policies

8%

Advantages or Comment about Insurances

(a) Advertisement should be more on the advantages and fact rather the
features.
(b) There is a Tax saving factors while opting for Insurance.
(c) Procedure should be made easier for the normal public as it consumes a lot
of time and effort for providing all the documents.
(d) Insurance is a need and not Luxury.

22

t
9.

Which Company would you prefer if you have never applied for
Insurance?
LIC
Birla sun life Insurance
HDFC Standard Life Insurance
Icici Pur
Max New York Life Insurance
TATA AIG life Insurance
Met Life Insurance

56%
7%
12%
17%
8%
5%
3%

FINDINGS & SUGGESTIONS

23

This chapter deals with the concluded aspects of the study carried out on General
perception about Life Insurance. The basic objective is for the study is for which
study was carried out has been fulfilled in the earlier chapter, based on the objective
interview schedule was designed. Data collected based on schedule was analyzed and
some findings have emerged.
Major Findings of the Study
Based on the quantitative analysis the major findings of the study have been
highlighted below.

Most of the people are satisfied with the extent of their life insurance cover. They
are not interested in buying more life insurance.

People do not consider life insurance as a good savings because of low returns.

As life insurance is a long term contract. Maximum people do not have faith on
private life insurance companies, they still prefer LIC.

Because of less advertising not many people are aware about private life insurance
companies.

Most of the people do not know about broker, corporate agents and banc
assurance, they rely on their agents only

The most preferred type of plan is money back. The reason being availability of
funds after every five years which can be used for paying further premium, thus
saving the regular income.

Some people have no idea about what type of cover they have.

Most of the people feel that life insurance is essential but they think returns are
low.

Some people have their doubts on the credibility and long stay of private insurance
companies.

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Suggestions

Advertising of the insurance product should stress on the need of security.

Insurance should be popularized as the means of securing future rather than saving
tax.

New entrants should come out with innovative riders.

Policies should be issued quickly and with less formalities

Other service should also be improved.

Newspaper/Magazines and television are the most effective medium of advertising

life insurance.

Insurance agents should be well trained.

Dividend for the Financial Year 2004-05

The Board of Directors of the Corporation has recommended payment of dividend of
170% (Rs. 17 per share), for the financial year ended March 31, 2005, for approval of
the shareholders at the AGM. [Previous year 135% (Rs. 13.50 per share)].
Dividend entitlement is as follows:

For shares held in physical form: shareholders whose names appear on the
register of members of the Corporation as at the close of business hours on
June 30, 2005.

For shares held in electronic form: beneficial owners whose names appear in
the statements of beneficial position furnished by NSDL and CDSL as at the
close of business hours on June 30, 2005.

25

RECOMMENDATION
There are certain flaws existing in this working of the insurance industry. There are
some of the recommendation we ad come up with while doing this project. It will help
to make insurance more important sector in todays economy.
The need of the hour is to devise a comprehensive strategy that will help the firms face
the challenges of the future. The financial services industry around the world over is
undergoing a major transformation. It is very important that trained marketing
professionals who are able to communicate specific features of the policy should sell
the policy.
From our research we could find out that people are not aware about the policies and
features of insurance. Therefore LICand HDFC are recommended to shed light on
policies and explain the benefits, thus increasing the awareness.
The penetration of insurance in India is around 22%. This indicates that a vast
majority of rural population is not covered. The market player needs to explore this
untapped potential through their marketing and sales network.
The returns of the policies are not properly managed and never given in time. So, these
must be looked at.
Pricing of insurance products, as empirically available in India, shows that pricing is
not in consonance with market realities. Life Insurance premium is generally
perceived, as being too high while general insurance (especially motor insurance) is
priced too low.
Some insurance products, which are not available in India, should, be introduced in
market. There are areas for new product development:

Industry all risk policies,

Large projects risk cover, Risk beyond a floor level, Extended public and product
liability cover
Insurance companies will also had to get savvy in distribution. Enhanced marketing
thus will be crucial. Already many companies have full operation capabilities over a
12-hour period. Facilities such as customer service center are already into 24-hour

26

mode. These will provide services such as motor vehicle recovery. Technology will
also play an important role on the market.
The lines of distinction between banks insurance companies and brokerages are
getting blurred. The future seems to belong to financial supermarkets that will offer a
host of services and products to the consumer. In the next millennium all these
activities would play a crucial role in the overall development and maturity of the
insurance industry

27

CONCLUSION
There has been tremendous change in the insurance history. And with it there has been
continuous growth in this sector both in Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry.
While the LICin order to face the competition is coming with new strategies. New
players like HDFC Pru are leading the sector due to their strategic management and
tailored made projects.
From our research also we conclude that though the awareness and people opting for
LICplans are more as compare to HDFC Pru but the later are gaining momentum in
the market day by day.
The primary reasons for buying an insurance policy, whether life or non-life is to
protect us from vagaries of life. We do not invest in insurance for returns; rather we
invest in it for regrettable necessities. Though a large proportion of policies available
in the country provide for returns, but nobody is looking for returns to the inflation
rate. So what does insurance offer, perhaps peace of mind, but even that takes time,
due to poor claim performance
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing countries
Insurance is a Rs.400 billion business in India and yet its spread in the country is
relatively thin. Insurance as a concept has not been able to make headway in India.
There has been a strong fall in insurance business in recent years. Furthermore, it can
be observed that non-life business is not increasing as strongly as life business. On the
other hand, growth fluctuations have been relatively small with growth rates varying
between 1% and 5%. Life insurance business by contrast achieved average growth
rates of 6%, although the actual rates ranged from 0% to 13%. This shows on the one
hand the increasing significance of life insurance as an instrument for old age

28

provisions and on the other hand indicates the sensitivity of life insurance to changes
in the institutional and economic environment.
So lets conduct this business with utmost economy with the spirit of trusteeship;
thereby making insurance widely popular.

29

QUESTIONNAIRE
1. Name:
2. Occupation
3. Do you know about Insurance?
Yes
No
4. Have you ever opted for Insurance from any company?
Yes
No
5. If Yes,
Which company have you taken Insurance from?
LIC
SBI Insurance
HDFC Standard Life Insurance
Icici Pur
Max New York Life Insurance
LIC
TATA AIG life Insurance
6. How did you come to know about Insurance?
Advertisement
Word of Mouth
Referred by your company / Friend
7. What made you select a particular company for the Insurance?
EMI
Brand name
Procedures
Facilities
Policies

30

Advertisement
8. How do you like the Marketing strategy by different Insurance Company?
Good
Average
Bad
9. What motivates you for selecting any Company for Insurance?
EMI
Brand name
Procedures
Facilities
Policies
10. Advantages or Comment about Insurances
11. Which Company would you prefer if you have never applied for Insurance?
LIC
SBI Insurance
HDFC Standard Life Insurance
HDFC Pur
Max New York Life Insurance
LIC
TATA AIG life Insurance

31

BIBLIOGRAPHY
The various sources from where I collected datas are as follows.

Internet Sites:1. www.hometrade.com

2. www.hdfcstd.com
3. www.hdfc.com
4. www.sbibank.com
5. www.moneycontrol.com

News Papers:1. The Economic Times.

2. Times of India.
3. Business standard.
4. Financial Express.

Magazines:1. Business world.

2. Business Today
3. Outlook.

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