A STUDY ON “HDFC Life Insurance”

(A Mini Project report Submitted to Jawaharlal Nehru Technological University,

Kakinada)

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
BUNGA HIMA BINDHU
(Regd. No: 17ME1E0013)

UNDER THE ESTEEMED GUIDANCE OF

Prof. K. J.N.V. NARASA REDDY
M.B.A., (Ph.D),

DEPARTMENT OF MANAGEMENT STUDIES

RAMACHANDRA COLLEGE OF ENGINEERING
(AFFILIATED TO JNTU, KAKINADA, APPROVED BY AICTE, NEW
DELHI) NH-5 BYPASS ROAD, VATLURU (VILLAGE),
ELURU, W.G. DT- A.P
2017-19

DECLARATION
 I, hereby declare that this MINI PROJECT report titled A STUDY ON

“JINDAL STEELS" has been prepared by me in partial fulfillment of the 2 semester of

nd

MASTER OF BUSINESS ADMINISTRATION by RAMACHANDRA COLLEGE OF

ENGINEERING, ELURU AFFILIATED TO JNTU, KAKINADA. The information &

findings of this report are based upon the information collected by me is the results of my

own effort.

Place: ELURU

Date: MALLEMPALLI
MANIRATNAM
(Regd. No: 17ME1E0056)

CERTIFICATE

This is to certify that the mini Project entitled A STUDY ON “HDFC Life

Insurance" submittedby BUNGA HIMA BINDHU,in partial fulfillment of 2 nd

semester of MASTER OF BUSINESS ADMINISTRATION in RAMACHANDRA

COLLEGE OF ENGINEERING, ELURU AFFILIATED TO JNTU, KAKINADA is a

record of bonafide work carried out by him under my guidance & supervision.

PROJECT GUIDE HOD

Ph: 08812-215 150, 152, Fax: 08812-234 128 email: rcee_elr@yahoo.com, website:
rcee.ac.in
ACKNOWLEDGEMENT
I take this opportunity to express my regards to Dr. DOLA SANJAY .S, Ph. D
Principal of Ramachandra College of Engineering, Vatluru, Eluru, for his encouragement
during the period of my MBA programme and permission to do this project work.
I also express my happiness for being a student of the Management Studies
Department in Ramachandra College of Engineering and co-ordinate under the guidance of
Prof. K. J.N.V. NARASA REDDY, M.B.A., (Ph.D),HEAD OF THE DEPARTMENT OF
MANAGEMENT STUDIES, for her valuable suggestions and encouragement, guiding me
at every stage for successful completion of this project.
I really appreciate all the support and help extended by my mini project
guide K. J.N.V. NARASA REDDY M.B.A.,(Ph.D), PROFESSOR in Ramachandra College
of Engineering.

I am highly indebted to the Management of HDFC Life Insurancefor indirect support

from the company.

(BUNGA HIMA BINDHU)

 CONTENTS
CHAPTER – I

 Company profile
 Vision
 Mission
 Objectives of the company
 Board of directors
 Organizational structure
 Company location and its branches

CHAPTER - II

 Achievements
 Awards, rewards
 Government subsidies and regulations
 Company policies
 Competitors
 Employment
 Maintenance facilities
 Trade unions
 Share holders
 Corporate social responsibility

CHAPTER – III
 Types of products
 Manufacturing process
 Target customers
 Segmentation
 Pricing strategy
 Sources of funds
 Balance sheets
 Promotional mix
CHAPTER – IV
 News articles
 Mergers and acquisitions
 Statistical reports published in news papers , magazines
 Published article about company in journals
 SWOT analysis

CHAPTER – V

 Findings
 Suggestions
 Conclusion
 Bibliography/Weblography

CHAPTER – III
 Types of products
 Manufacturing process
 Target customers
 Segmentation
 Pricing strategy
 Sources of funds
 Balance sheets
 CHAPTER – I

 Company profile
 Vision
 Mission
 Objectives of the company
 Board of directors
 Organizational structure
 Company location and its branches

 Company profile:

HDFC Life (HDFC Standard Life Insurance Company) is a long-term life

insurance provider with its headquarters in Mumbai, offering individual
and group insurance.
It is a joint venture between Housing Development Finance Corporation Ltd (HDFC),
one of India's leading housing finance institution and Standard Life Aberdeen PLC,
leading well known provider of financial savings & investments services in the United
Kingdom. On August 14, 2015 HDFC Ltd. entered into a share sale agreement with
Standard Life to sell a 9.00% stake in HDFC Life to the latter. The transaction is
subject to receipt of regulatory approvals. Post the completion of the above
transaction, HDFC will hold

Saruthakejiyo!

Type Private company

Traded as BSE: 540777

NSE: HDFCLIFE

Industry Insurance Services

 Founded 2000

Headquarters Mumbai, India

Area served India

Key people Mr. Amitabh Chaudhry,

Ms. VibhaPadalkar.

 Vision & Values

Values are the most critical elements that reflect the conduct of an organisation.
Below is our vision and our values, the pillars that support the success of HDFC
Life.

Vision:
One of the most successful and admired life insurance company, which means
that we are the one of the most trusted company, the easiest to deal with, offer
the best value for money and set the standards in the industry.
'The most obvious choice for all'.

Values:
Our vision and values that we observe at work

1. Excellence
2. People Engagement
3. Integrity
4. Customer Centricity

Collaboration
 Mission:
This was the third season of the Mission In-genius initiative. Approximately

7300 employees India’s leading insurance players hosted their HR initiative

- Mission In-genius 2011 at the ITC Grand Central in September 2011.
Mission In-genius is a pan-India quiz property first conceptualized and
organized in 2006 for HDFC Life employees. It gives a platform for the
employees to display their skills on insurance knowledge. It is HDFC Life, one
of hosted once every two years.

of the company participated in this quiz that tests them at various levels for
their insurance acknowledge, industry knowledge, internal processes and
systems. The objective is to keep all employees updated on what is happening
on HDFC Life and the industry.

On the property, RajendraGhag, EVP - HR, HDFC Life, says,” We believe that
knowledgeable employees will give us a competitive advantage. Our people
processes are centered on 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 a spirit of competition and fun. It
brings in cross functional synergies together; thereby it becomes an
engagement initiative too”

The competition embarked at an individual level with approximately 7300

employees participating in the first round, and about 2300 minds battled
against each other in the second round. The next stage was the Zonal finals,
followed by Semi finals which were played in two batches of 7 teams each
eyeing for a berth in the national finals. Top three teams fro

 Objectives of the company:

Grow shareholder value: The top goal of your organization may be to

increase the value of your organization for your shareholders,
stakeholders, or owners. Value can be defined in many ways, so this
would need to be clearly defined.
1. Grow earnings per share: This objective implies your
organization is trying to increase its earnings or profits. For publicly
traded companies, a common way to look at this is through
“earnings per share.” This can be measured quarterly and/or
annually.
2. Increase revenue: Revenue represents growth in your
organization, so increasing revenue is a sign of company health.
 You can make this more specific by defining revenue from a key
area in your organization.
3. Manage cost: On the other side of revenue is the costs or expenses in your
business. As you grow (or shrink) you need to carefully manage cost—so this
may be an important objective for you.
4. Maintain appropriate financial leverage: Many organizations use debt—
another word for financial leverage—as a key financial tool. There may be an
optimal amount of debt you’d like to stay within.
5. Ensure favorable bond ratings: For some organizations, bond ratings are a
sign of healthy finances. This is a regularly occurring objective for a public
sector scorecard.
6. Balance the budget: A balanced budget reflects the discipline of good
planning, budgeting, and management. It is also one that is typically seen in
the public sector—or within divisions or departments of other organizations.
7. Ensure financial sustainability: If your organization is in growth mode or
has an uncertain economic environment, you need to be sure you remain
financially stable. Sometimes this means seeking outside sources of revenue
or managing costs that are appropriate to your operations.
8. Maintain profitability: This is a solid top-level objective that shows balance
between revenue and expenses. If your organization is investing in order to
grow, you may look to an objective like this to govern how much you are able
to invest.
9. Diversify and grow revenue streams: Some organizations receive revenue
from multiple sources or products and services. They set an objective to grow
revenue in different areas to ensure that the organization is stable and not
subject to risk associated with only one revenue stream.
Customer Objectives:

Customer objectives are typically written like customer goals. Sometimes they are
written in the form of a phrase or a statement that a customer would say when
talking about your product or service.

11. Best value for the cost: This means that your customers know they are not
purchasing the most expensive product or service—or even the highest
quality—but that they are getting the best deal. This may mean your
customers are paying less than average and getting an average or above-
average product.
12. Broad product offering: This objective works if your strategy is to be able to
offer the customer the best product in its class, regardless of price. In the
hotel industry, for example, this could reflect the strategy of the Four Seasons
or Ritz Carlton.
13. Reliable products/services: If your organization takes pride in the reliability
of your product or service, this objective—which reflects that you are targeting
customers that also value this reliability—may be right for you. This could
 indicate the on-time reliability of an airline or the dependable reliability of a
printer that generates high-quality output.
14. Cross-sell more products: Some organizations—like banks or office
product companies—focus on selling more products to the same customers.
This strategy acknowledges that you already have the customer but can make
money by selling them more.
15. Increase share of market: This customer strategy focuses on selling
to more customers, thus increasing the market share. For example, if
your organization is a landscape company, you are likely trying to
reach more households—or if your organization is a hospital, you likely want
more of the local population to use your services.
16. Increase share of wallet: This customer strategy focuses on
gaining more purchases from the same customers. If you sell fertilizer, for
example, you want each customer to purchase a larger percentage of their
fertilizer spend with your organization rather than with your competitors.
17. Partner with customers to provide solutions: This strategy reflects
customer intimacy. As part of this strategy, you may deliver service-oriented
solutions or have customers participate in research and development with
your organization. Partnering comes at a cost but tends to foster more
customer loyalty across your organization.
18. Best service: This strategy indicates you want your customers to consider
your organization easy to deal with. Customers may choose to work with you
even if you have a product similar to your competitors—simply because your
service is better.
19. Understands my needs: This objective also reflects a customer intimacy
strategy. The customer feels like you understand their needs, so they choose
your organization’s products and services because they are targeted for their
specific problem or situation.

Internal Objectives
The internal perspective is typically focused on processes that your organization
must excel at. According to Michael Tracy and Fred Wireman—who have written
extensively on the topic—these processes can be divided into three areas:
innovation, customer intimacy, and operational excellence.

20. Most innovative products/services: This objective is for organizations that

pride themselves on constant and cutting-edge innovation. You would first
need to define what you mean by “innovation” and how you’re innovating in
each particular area.

21. Differentiate the product: Your organization might use this objective if you
22. are in an environment where the customer cannot tell the difference between
your organization and another organization’s product. You are asking your
 organization to either develop new services around the product or new
differentiating features of the product or service.
23. Invest a certain amount in innovation: Sometimes organizations use an
objective like this to drive investment in research and development or other
innovative

 Board of directors

Sir Gerry Grimstone

Mr. Keki M Mistry

 Ms. RenuSudKarnad
 Organization structure:
By Rina jha
The Composition of the Board of Directors of the Bank is governed by the
Companies Act, 1956, the Banking Regulation Act, 1949 and the listing
requirements of the Indian Stock Exchanges where securities issued by the
Bank are listed. The Board has strength of 12 Directors as on March 31, 2008.
All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh
Sukthankar are non-executive directors. The Bank has five independent
directors and seven non-independent directors. The Board consists of eminent
persons with considerable professional expertise and experience in banking,
finance, agriculture, small scale industries and other related fields. None of
the Directors on the Board is a member of more than 10 Committees and
Chairman of more than 5 Committees across all the companies in which
he/she is a Director. All the Directors have made necessary disclosures
regarding Committee positions occupied by them in other companies. Mr.
JagdishCapoor, Mr. Keki Mistry, Mrs. RenuKarnad, Mr. Vineet Jain, Mr.
Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-
independent Directors on the Board. Mr. Arvind Pande, Mr. AshimSamanta,
 Chapter-2
Awards and Achievements
 Adjudged one of India's Best Companies to Work 2017
HDFC Life was adjudged one of India's Best Companies to Work for in The India's
Best Companies to Work for study conducted by The Economic Times & Great Place
to Work Institute.India's Best Companies to Work For - The India's Best Companies
to Work for study is conducted by The Economic Times & Great Place To Work®
Institute
 Gold Shield in the ICAI Awards - Annual Report
HDFC Life received the ICAI Awards - Gold Shield for Excellence in Financial
Reporting for the Annual Report 2015-16
 HDFC Life Cancer Care awarded the Finnoviti 2016 Award for innovations in
BFSI
HDFC Life Cancer Care was awarded the prestigious Finnoviti 2016, an award that
salutes the spirit of innovation. Finnoviti 2016 Conference and Awards recognize and
reward innovations in BFSI sector and honour the innovators
 Indian Insurance Awards 2016 - Best Product
HDFC Life received the Indian Insurance Awards for Best Product Innovation (Life
Insurance) by Fintelekt
 Gold in DL Shah Quality Award 2015 - Improvement in Persistency : A Win for
ALL
HDFC Life won the QCI - D. L. Shah Quality Awards - Gold Award for the case
study Improvement in Persistency : A Win for ALL
Government Subsidies and Regulations
Unless the content otherwise requires, the words and expressions used but not defined
in this Red Herring Prospectus will have the same meaning as assigned to such terms
under the Companies Act, the SEBI Act, the SCRA, the Depositories Act, the
Insurance Act and the rules and regulations made thereunder. In “Main Provisions of
Articles of Association” beginning on page 762 of this Red Herring Prospectus,
defined terms have the meaning given to such terms in the Articles of Association. In
“Statement of Tax Benefits” beginning on page 157 of this Red Herring Prospectus,
defined terms have the meaning given to such terms in the Statement of Tax Benefits.
In “Financial Information” beginning on page 332 of this Red Herring Prospectus,
defined terms have the meaning given to such terms in the Financial Statements.
Notwithstanding the foregoing, terms specifically defined in this Red Herring
Prospectus, shall have the meanings given to such terms in the sections where
specifically defined
 Approval for appointment of certain KMPs and the Remuneration Gudelines:
Pursuant to Section 34A of the Insurance Act, no appointment, re-appointment or
termination of appointment, or amendment to the terms of remuneration of a
managing or whole time director, manager or a chief executive officer, of an
insurance company may be effected without the prior approval of IRDAI. The IRDAI
has also issued the Remuneration Guidelines which are guidelines on remuneration
payable to non-executive directors, chief executive officers, whole time directors and
managing directors. Further, in terms of the IRDAI Guidelines on ‘Indian Owned and
Controlled’ dated October 19, 2015, the right to appoint any chairman who exercises
a casting vote is required to be retained and exercised by the Indian promoters and/or
investors and the appointment of any chief executive officer is required to be through
the Board of Directors or by the Indian promoter/ investor.

Company Policies
The tenure of your term plan is as important as the amount of premium you pay. The longer
the period of term insurance policy, greater will be the policy’s annual premium. If you keep
the period too short, there are chances that you would be without a cover in a period when
your loved ones will still need financial protection. Therefore, it makes sense to consider
important factors like the tenure of your term plan when you are buying a term plan in India.

Objective: The function of term life insurance is to help your family members meet their
regular expenses and future needs even in your absence. Therefore, the ideal term of an
online term insurance plan should end at a time when you have met all your life goals and
saved enough for retirement.

Consider tenure till retirement: It is typically difficult for you early in life to determine till
when you will have accumulated enough savings to take care of all your needs for the rest of
your life. This is the time when you will not need life insurance coverage. Since many of
your large expenses such as your child’s higher education and marriage are likely to happen
in your 40s and 50s, it makes sense to have your term life insurance coverage all the way
upto your retirement at the age of 58 or 60.

Of course, there are people who aspire to, and there are some who actually do, retire much
earlier, say, in their 40s. The guiding principle remains the same. You keep the life cover as
long as you don’t have enough savings to take care of you and your family for the rest of
your life.
Why taking the longest tenure, early in life makes sense. A smart approach is to buy the term
insurance plan early on in life, opting for the longest possible coverage. This ensures you
benefit from the low premium during the long tenure of the term plan. For instance, at the age
of 25 you can take a term of 40 years as it would last till age 65. In this case, you would enjoy
the low premium till the end of the term. Of course, as your income increases and lifestyle
gets enhanced, besides you taking up loans, to cover all of them, you will need to periodically
enhance your term life insurance cover.

To sum it up, it is not only important for you to have adequate life insurance coverage but
also to ensure that it stays that way till the time your family needs it. It is your responsibility
to ensure that your family is financially prepared to face any eventuality

Competitors

ICICI Prudential Life Insurance is perceived as one of HDFC Life's biggest rivals. ICICI
Prudential Life Insurance is headquartered in Mumbai, Maharashtra, and was founded in
2000. ICICI Prudential Life Insurance operates in the Life & Health Insurance industry.
ICICI Prudential Life Insurance generates 39% the revenue of HDFC Life.

LIC is one of HDFC Life's top competitors. LIC is a Private company that was founded in
1956 in Mumbai, Maharashtra. LIC competes in the Life & Health Insurance field. Compared
to HDFC Life, LIC has 13,576 more employees.

SBI Life has been one of HDFC Life's top competitors. SBI Life was founded in 2001 in
Mumbai, Maharashtra. SBI Life competes in the Life & Health Insurance industry. SBI Life
generates $7.2B more revenue than HDFC Life

Shareholders

Shareholders more than 1 percent

Name Category Mar- Dec-17 Jul-17 Apr-Jan-17
18 17
Housing Development Finance Promoter and 51.62 51.69 - - -
Corporation Limited Promoter Group
Standard Life (Mauritius Promoter and 29.31 29.35 - - -
Holdings) 2006 Limited Promoter Group
Nomura India Investment Fund Public shareholder 1.16 1.15
Mother Fund

Corporate Social Responsibility

1.Preamble The Corporate Social Responsibility Policy (hereafter referred to as ‘Policy’)
of HDFC Life has been designed in consonance with Section 135 of The Companies Act,
2013 (hereafter referred to as ‘Act’) to lay down the guidelines for undertaking CSR
initiatives at HDFC Life in accordance to Companies (Corporate Social Responsibility
Policy), Rules, 2014 (hereafter referred to as ‘Rules’). This Policy lays down the guiding
principles or rules that shall apply to all CSR programs/projects to be undertaken by the
Company, as per Schedule VII of the Act, within the geographical limit of the Republic of
India.
2. Vision Statement HDFC Life’s business philosophy highlights the theme of self-respect
and independence. HDFC Life has undertaken CSR activities with the basic aim of
contributing towards easing of distress and aiding in the advancement of society, while
engaging with stakeholders; thereby becoming a socially responsible corporate citizen. The
vision statement of HDFC Life with regard to its CSR activities is as follows: i. The
Company aspires to be a responsible Corporate Citizen by contributing to nation building
through CSR projects/ programmes, in true letter and spirit, as enshrined in the Act. ii. The
Policy, which has been made in alignment with the vision and values of the Company, lays
down guidelines and mechanisms to be adopted by the Company in order to carry out CSR
projects/programmes. iii. All CSR interventions will be conceived and implemented through
a focused approach towards target beneficiaries for generating maximum impact. iv. CSR
initiatives of the Company will be carried out in partnership with credible implementing
agencies and directly through projects executed by project management teams.
3. Objectives of the Policy
1. To define HDFC Life’s framework for CSR.
2. To constitute a Board CSR Committee that will ensure compliance to Section 135 of the
Act and oversee implementation of CSR Policy and interventions.
3. To lay down the guidelines & mechanism to carry out CSR projects/ programmes by
HDFC Life and to report the impact and outcome in the reporting format prescribed by the
Rules in the Act.
4. To undertake CSR activities as projects/ programmes with specific timelines,
implementation and monitoring mechanism. This Policy, as amended, is applicable with
immediate effect to HDFC Life. 3 | P a g e Version 3
4. Principles of HDFC Life’s Approach to CSR At HDFC Life, we see CSR as the
commitment of our businesses to manage and improve the economic, environmental and
social implications of our activities at the local, regional and national levels by undertaking
various projects.
1. Employee Engagement There shall be active participation from employees of HDFC Life
in the CSR interventions. Employees shall contribute their time and skills to the initiatives,
thereby adding immense value.
2. Focused Beneficiary Each of HDFC Life’s CSR interventions would be conceived and
implemented with a focused approach towards a target beneficiary to achieve maximum
impact. Although impact may be felt by more than one beneficiary group, impact
measurement would be in terms of assessing the difference made to the intended
beneficiaries.
3. Collaboration In order to leverage expertise, build cohesion and achieve greater impact
through the activities undertaken, the CSR initiatives of HDFC Life shall be carried out in
collaboration with credible third parties such as NGOs, corporate organizations with aligned
interests, incubation centers and other implementing agencies (including a Registered Trust
or a registered society or a Company established by HDFC Life or a holding company or a
subsidiary company or an associate company under Section 8 of the Act or otherwise).
4. Linkage to Domain Expertise HDFC Life believes in sharing knowledge and domain
expertise by integrating business models with social and environmental priorities and
processes. HDFC Life hopes to achieve the same through CSR activities by designing
initiatives, the implementation and impact of which shall be linked to its domain expertise.
The CSR activities may be undertaken by the Company as per this Policy as projects,
programmes, or activities (either new or ongoing)
 CHAPTER – III
 Types of products
 Manufacturing process
 Target customers
 Segmentation
 Pricing strategy
 Sources of funds
 Balance sheets
 Chapter-3
Types of Plans
HDFC Life provides a variety of life insurance plans and policies to meet each individual’s
insurance needs and requirements. We provide different insurance products for needs like
Protection, Savings & Investments, Children education and marriage, Retirement, Health
related and women specific. We help you in becoming financially independent so that you
can live your life on your own terms.
Protection Plans
Term plans are typically low cost life insurance plans that provide full protection and
financial stability to your loved ones in case of any unforeseen events.

Health Plans
HDFC Life provides a variety of Health Insurance Plans &Mediclaim Policies that offer
financial security to meet health related contingencies

Children's Plans
Successful parenting is no mean accomplishment.A huge contributor to this success is
financial planning for your child's future needs at the right age!

Savings and Investment Plans

Our Savings and Investment plans are life insurance plans that offer you multiple avenues to
save and grow your money.

Women's Plans
Women's plans are a set of specially created and hand-picked products which suit the needs
of women at different stages of their life.

Retirement Plans
Retirement and Pension Plans provide you with financial security so that when your
professional income starts to ebb, you can still live with pride without compromising on your
living standards.

Rural & Social Plans

Rural & Social Plans are a special offering from HDFC Life, exclusively for the benefit of
our rural customers.
SHAURYA Plans
Sales and after sales service from individuals who have in-depth understanding and
appreciation of Armed forces, police & paramilitary , their lifestyle, protection and financial
requirements.

ULIP Plans
HDFC Life offers you a variety of ULIP products depending on your risk appetite and
financial goals.

NRI Insurance Plans

Being a developing country India's economical growth in recent years has been phenomenal.
Thus, NRI's have even more reasons to invest in India.

Group Insurance Plans

HDFC Life offers various group life insurance policies that help employers/trusts with
meeting their employee benefit liability obligations in a simple , efficient and cost effective
manner.
Discontinued Insurance Plans
List of HDFC Life Products which have been discontinued and are now closed for sale. These
life insurance products continue to be serviced by the HDFC Life Customer Service team.

MARKETING STRATEGY
Banking Industry is one of the most important service industries which touches the livesof
millions of people. Its service is unique both in social and economic points of view ofa
nation. Earlier the attitude of banking service was that it was not professional to
sellone'sservicesand was unnecessary in the sense that traditional relationships and quality of
productswere sufficient to carry forward the tasks. Before the mid 1950's the banks had
nounderstanding or regard for marketing. The bank building was created in the image of
aGreek Temple to impress the public about the importance of a bank. The interior wasaustere
and the teller rarely smiled. Bankers maintained austere dignity and they hardlymaintained
friendliness Marketing strategy is defined by David Aakeras a process thatcan allow an
organization to concentrate its resources on the optimal opportunities withthe goals of
increasing sales and achieving a sustainable competitive advantage.

Marketing strategy includes all basic and long-term activities in the field of marketingthat
deal with the analysis of the strategic initial situation of a company and theformulation,
evaluation and selection of market-oriented strategies and thereforecontribute to the goals of
the company and its marketing objectivesIt was in the late 1950's that marketing in banking
industry emerged in the west. Itemergence was in the form of advertising and promotion
concept. At that time, personalsetting could not get a significant place. (.3radually there was a
change in the attitude of bankers, probably in time with the attitudinal change in customers.
The idea of customers'

satisfaction began in the late 1950's, flourished in 1960's and became an integral part ofthe
banking services in the1970's. But the same trend could not be applicable, especially in
developing countries andto be more specific in India because of socioeconomic and political
reasons. Marketingcame into Indian banks in the late 1950's not in the form of marketing
concept but in theforms of advertising and promotion concept. Soon it was realised that
marketingtranscendsadvertlslng and friendliness'. Till 1950 it was recognised that personal
sellingwas not necessary. The bankers went out of their way to avoid being accused of
selling.The bankers even eliminated the word 'selling' and they called the function of
customercontact 'business development function'. The bankers' attitudes and
comprehensionsabout marketing changed in the 1960's. They began to realise that marketing
was a lotmore than smiling and friendly tellers2. The idea ofcustomer convenience began in
the late fifties and it flourished in the 1960's. Bankerswere beginning to understand the
concept of market segmentation in the late 1960's.

Target Customers
The extent to which what customers say they want does not match
their purchasing decisions. Thus surveys of customers might claim that 70% of arestaurant's
customers want healthier choices on the menu, but only 10% of themactually buy the new
items once they are offered. This might be acceptable exceptfor the extent to which those
items are money-losing propositions for
the business, bleeding red ink. A lesson from this type of situation is to be smarterabout the
truetestvalidityof instruments like surveys. A corollary argument isthat "truly understanding
customers sometimes means understanding them betterthan they understand themselves."
Thus one could argue that the principle ofcustomer focus, or being close to the customers, is
notviolated here
justexpandedupon.The extent to which customers are currently ignorant of what one might
argue theyshould want
which is dicey because whether it can be acted upon affordably depends onwhether or how
soon the customers will learn, or be convinced, otherwise. IT hardwareand software
capabilities and automobile features are examples. Customers who in 1997said that they
would not place any value on internet browsing capability on a mobile phone, or 6%
better fuel efficiencyin their vehicle, might say something different today, because the value
proposition of those opportunities has changed
Segmentation
Life insurers are increasingly adopting a customer segmentationapproach with respect to
selling insurance plans.
HDFC Life has filed a life insurance cover with estate planning features targeting the HNI
(high net worth individuals) for approval. "This plan is similar to those offered in the
developed world that focuses on a corpus creation for dependents and payout to the heirs in
the event of death," Sanjay Tiwari, vice-president, product development, HDFC Life, said.

In addition, HDFC is also actively targeting the wisdom investor category (40-45 years) and
those who can pay annual premiums upwards of Rs 60,000.

Similarly, Max Life high value customers are those who pay premium upwards of Rs 1 lakh.
In Max's case, marketing to its high value clients revolves around providing differentiated,
enhanced and consistent experience at every touch point.

"The customer proposition for such members includes priority on-boarding, priority service
delivery, faster policy issuance, smoother claim settlement, dedicated toll free number to
handle their queries on a priority basis, a special team of relationship managers to service
customers better," company officials said.

Industry observers also state that insurers are increasingly looking at specific clusters. "Life
insurers are increasingly looking at specific customer segments and building a business
around them. Many of them have a separate team that focuses on such HNI clients," Rahul
Aggarwal, chief executive officer, Optima Insurance Brokers, said.

Women too are an important focus area for HDFC Life. Nearly 23% of premiums for the
company in last fiscal came from women customers as against 20% during 2012-13.
 Balance Sheet
Rs (in Crores)

Particulars Mar'17 Mar'16 Mar'15 Mar'14 Mar'13

12 12 12 12 12
Liabilities Months Months Months Months Months

Share Capital 1998.48 1995.29 1994.88 1994.88 1994.88

Reserves & Surplus 1807.90 1154.55 548.98 -68.97 -677.57

Net Worth 3806.38 3149.84 2543.86 1925.91 1348.05

Secured Loan .00 .00 .00 .00 .00

Unsecured Loan .00 .00 .00 .00 .00

TOTAL LIABILITIES 3806.38 3149.84 2543.86 1925.91 1348.05

Assets

Gross Block 693.98 658.71 634.33 543.14 541.90

(-) Acc. Depreciation 341.07 312.37 282.43 254.45 260.09

Net Block 352.91 346.34 351.90 288.69 251.07

Capital Work in Progress .00 .00 .00 .00 .00

Investments 37937.12 28503.04 22104.71 16321.88 12071.49

Inventories .00 .00 .00 .00 .00

Sundry Debtors .00 .00 .00 .00 .00

Cash and Bank 796.50 646.60 572.37 444.91 463.85

Loans and Advances 56019.62 47052.71 46279.57 35219.75 29101.13

Total Current Assets 56816.12 47699.31 46851.94 35664.66 29564.98

Current Liabilities 91253.22 73357.37 66731.58 50321.95 40541.58

Provisions 46.55 41.48 33.11 27.37 28.65

Total Current Liabilities 91299.77 73398.85 66764.69 50349.32 40570.23

NET CURRENT ASSETS -34483.65 -25699.54 -19912.75 -14684.66 -11005.25

Misc. Expenses .00 .00 .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 3806.38 3149.84 2543.86 1925.91 1348.05
Rs (in Crores

CHAPTER – IV

 News articles
 Mergers and acquisitions
 Statistical reports published in news papers , magazines
 Published article about company in journals
 SWOT analysis

Chapter-4
Mergers, Acquisitions
In April 2016, the board of HDFC Standard Life Insurance Company Limited (“HDFC Life”)
was planning to undertake an initial public offer and get listed. However, pursuant to a
proposed merger with Max Life Insurance Company Limited (“Max Life”), a subsidiary of
Max Financial Services Limited (“MFSL”) (a listed entity), HDFC Life shelved its plans to
undertake an initial public offer and decided to “reverse list” itself through the merger with
Max Life. The merger would have resulted in the amalgamated company commanding
around 12.4% of the market share, making it the largest private insurance provider in India.1
After almost a year, Insurance Regulatory and Development Authority of India (“IRDA”), the
insurance regulator in India, rejected the merger in the form proposed by HDFC Life, Max
Life and MFSL on a literal interpretation of the provisions of the Insurance Act, 1938. Whilst
in spirit, the proposed merger involved the merging of Max Life with HDFC Life (and
therefore, a merger of two insurance companies as permitted under the Insurance Act, 1938),
the manner in which it was proposed to be done (that is, through merger of Max Life with
MFSL prior to the demerger of the life insurance undertaking into HDFC Life) did not
receive the approval of the IRDA on the grounds that it was not in compliance with the
Insurance Act, 1938. Having seen a couple of structures rejected by the IRDA in the last one
year and given HDFC Life’s intentions to list itself on the Indian bourses, the proposed
merger has now been called off by the parties.

Standard Life Insurance today said it is open to any kind of acquisition, including of Max
Life if the "structural issues" that hampered its earlier deal are resolved.

"That problem was more to do with the structural issue and obviously Max has to solve that.
So if they can solve their problem, which is not easy, and they are ready for this (merger)
sometime in future then we will look at it," HDFC Life MD & CEO Amitabh Chaudhry told
reporters at a roadshow

News Articles
Life insurers log in 4.6% growth in new premium income in Apr
Driven by new individual premium income, the life insurance industry has begun FY19 on an
healthy note, with 4.6 per cent growth in new business premium at Rs 7,280 crore in April,
according to the data from the industry lobby Life Insurance Council.

As of end April, total individual new business of the industry rose 7.32 per cent to Rs
3,881.61 crore, the council said today.

As against this, new group business income grew at a much lower pace of 1.60 per cent
during the repo ..
SBI Life is the second largest player when it comes to the number of polices sold with a
market share of 4.73 per cent, while the company stood at No 4 slot when it comes to the new
premium income with a market share of 5.65 per cent during the reporting month.

At No 3 is ICICI Prudential with a 6.38 per cent market share in new premium income, while
it is at No 4 with a 4.42 per cent market pie in terms of new policies sold.

Bajaj Allianz Life comes at No 5 in terms of new premium income with a market share of
2.70 per cent, while Max Life is at No 5 in terms of policies sold with a pie of 1.90 per cent.

At the sixth slot is Kotak Mahindra Life with a share of 2.51 per cent of the new premium
income, while Bajaj Allianz Life is at No 6 slot in terms of new policies sold with 1.87 per
cent share, according to the council data.
 Statistical reports published in News articles and Magazines
a) The Company has hired motor vehicles on cancellable operating lease for a term of up to
five years. In respect of these operating leases, the lease rentals debited to the Revenue
Account are ` 4,856 thousands (Previous year ` 6,544 thousands). The terms of the lease
agreements do not contain any exceptional/restrictive covenants which will have significant
detrimental impact on the Company’s financials nor are there any options given to the
Company to purchase the motor vehicles. The agreements provide for predecided increase in
lease rentals over the lease period and for change in the rentals if the taxes leviable on such
rentals are revised.
b) The Company has taken properties under operating lease. In respect of these operating
leases, the lease rentals debited to rent in the Revenue Account are ` 460,188 thousands
(Previous year ` 606,532 thousands). The minimum future lease rentals payable under non-
cancellable operating leases for specified duration in respect of such leases amount to the
following: (` ‘000) Particulars As at March 31, 2017 As at March 31, 2016 Not later than 1
year 66,314 79,517 Later than 1 year but not later than 5 years 191,951 141,748 Later than 5
years - 594 The lease arrangements contain provisions for renewal and escalation. The terms
of the lease agreements do not contain any exceptional/ restrictive covenants which will have
significant detrimental
c) The Company has taken furniture and generators under cancellable operating lease. In
respect of these operating leases, the lease rentals debited to rent in the Revenue Account are
` 19,872 thousands (Previous year ` 22,333 thousands).

Published Article about Company in Journals

Registration of person entitled to shares otherwise than by transfer
Subject to the provisions of the Act and the Articles of Association, any person becoming
entitled to shares in consequence of the death, lunacy, bankruptcy, incapacity or insolvency
of any Member, or by any lawful means other than by a transfer in accordance with these
Articles, may with the consent of the Board (which it shall not be under any obligation to
give), upon production of such evidence that he sustains the character in respect of which he
proposes to act under this Article or of such title as the Board thinks sufficient, either be
registered himself as the holders of the shares or elect to have some person nominated by him
and approved by the Board registered as such holders; provided nevertheless, that if such
person shall elect to have his nominee registered, he shall testify the election by executing in
22 favour of his nominee an instrument of transfer in accordance with the provisions
contained herein, and until he does so, he shall not be freed from any liability in respect of the
shares.

No fee on Transfer and Transmission

No fee shall be charged for registration of transfer, transmission, nomination, probate,
succession certificate, letters of administration, certificate of birth, death or marriage, power
of attorney or other similar documents.

Closure of transfer books and register of members

The Board shall have power on giving not less than seven days notice, by issuing an
advertisement in newspapers in accordance with applicable laws, to close the Register of
Transfers, Register of Members or Register of Debenture-holders at such time or times and
for such period or periods, not exceeding thirty days at a time, and not exceeding in the
aggregate forty-five days in each year

SWOT Analysis
SWOT analysis is just one method ofcategorizationand has its own weaknesses. Forexample,
it may tend to persuade its users to compile lists rather than to think aboutactual important
factors in achieving objectives. It also presents the resulting listsuncritically and without clear
prioritization so that, for example, weak opportunities mayappear to balance strong threats.It
is prudent not to eliminate any candidate SWOT entry too quickly. The importance
ofindividual SWOTs will be revealed by the value of the strategies they generate. A
SWOTitem that produces valuable strategies is important. A SWOT item that generates
nostrategies is not important.
STRENGTHS
 1.HDFC offers a range of individual and group insurance solutions
 2.HDFC has the financial expertise required to manage your long-terminvestments
safely and efficiently.
 3.The company has covered over 8,77,000 lives year ending March 31,2007
 4.Rated ‗AAA‘ by CRISIL and ICRA for
 the 10th consecutive year forHigh service standards
 5.HDFC Bank industry is a rapid growing and a nobler service industry.

2.2. WEAKNESSES
 1.LIC is prevalent and sustains even today a major source of population.
 2.Low number of offices and network and number of life insurance agents.
 3.Lack of knowledge and expertise.
 4.Heavy management expenses and administrative costs.
 5.Low customer confidence on the private players.
 6.Poor retention percentage of tied up agents.
2.3. OPPORTUNTIIES
 1.HDFC has captured its mere15 - 20% growth therefore a wide openuntapped market
is open to the company to develop, grow and measure itssuccess.
 2. Still the number of companies are few and company has everycapabilities to grow
and forward its performance areas to the widest

2.4. THREATS
 1.People are hesitant to invest and put their hard earned money to the private life
insurance company with the fear of getting lost.
 2.Belief Banks (government) corporation phobia is continue to surmountthe people of
India despite lots of flaws and development andliberalization of life insurance.
 3.Alternative financial services such as mutual fund, banking services,share and
securities also pose problems and threats to the working of thelife insurance sector.
 CHAPTER – V

 Findings
 Suggestions
 Conclusion
 Bibliography/Weblography

Chapter-5
FINDINGS
 Well first foremost result that 87% of the people are looking for profitable
opportunities to invest their money
 From survey tit was clear that about 9% of the persons that were surveyed said that
they would like to go for insurance policy,10% wre in favour of investment only, and
about 81% people were interested in both insurance as well as investment policy.
 Then it showed one of the most popular brand in the country is LIC it seems thst
about 40% of the people know about their products ,than came the ICIC prudential,
where only 25% of the people knew , although HDFC standard life insurance as a
 starter have strating gaining some publicity but it is still not have came in focus , so is
for the other brands. Only 20% people knew about HDFC Standard Life Insurance
Products . BAJAAJ ALLIANZ accounts for 6% and BIRLA SUN LIFE accounts for
9%

SUGGESTION
When we talk about suggestion I think I have small experience of this sector but whatever I
have pointed out which are thus.
 In the recruitment of financial consultant I found that mostly persondon’t want to give
rs.925 or rs.825. I have faced some difficultieswhen they don’t agree to give this
much amount. If the company willless this charge then it will get more FC.
 It should organize weakly meeting with FC for the business and giveappraisal training
to FC. It works as a performance appraisal of theFC.
 It should give monthly party to the FC for the attachment with theindustry.
 It should give canopy facility to CDM or RC for the recruitment of FC and if it will
give canopy facility to FC then they can give morefacility.
 Generally we buy only that thing whatever we see. It means that itshould spend more
on advertisement. Other insurance industry likeLIC and ICICI advertise mostly
through banner on metro station, onroad and advertise in the cinema hall. Add more
and more movie hallfor the advertisement.
 The role of recruitment is not easy so it should increase
commissionor give salary instead of commission so that RC will take moreinterest in
the recruitment on financial consultant.
 Regular canopy should be established such areas like metro Stations,college campus,
and malls, supermarket, and hypermarket for the purpose of recruitment FC and
getting business form FC.
CONCLUSION
HDFCSLIC is the renounce industry in the insurance sector. It believes inquality not in
quantity. HDFC have total 12 group companies. It is the firstinsurance company who has
gotten the license of insurance in firstly. It hasstarted its insurance industry with the joint
venture of U.K. based standardlife insurance company.
In the insurance sector main work is done by the financialconsultant who
brings business to the industry. It gives more priority for therecruitment 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.
During summer training I have given presentation in study centre
of IGNOU and SIKKIM MANIPAL and phone call, and try to contact those person to whom
I know and contact them for the purpose of financialconsultant. In this process I
haverecruited12peoplewhoareeitherCA,MBA, SOFTWARE ENGINEER, STUDENT, OR E
MPLOY OF THEORGANISATION.
It gives more facilities to their employ and provides better opportunity to
their employ for promotion because it has minimum target for fulfillment. FC have to give 36
policy or 360 lack premium with in sixmonths which less in comparison to the other
insurance industry and for Delhi region where the transaction of money is too high. FC has
chances to become sales development manager with in six month months when hefulfills the
target. The post of SDM is based on payroll. He will get packageof 2.75 lack per year

Bibliography/weblography
 https://www.hdfclife.com/about-us
 https://www.hdfclife.com/
 https://www.hdfclife.com/about-us/hdfc-life-introduction
 https://www.hdfclife.com/insurance-knowledge-centre/about-life-insurance/type-of-
insurance/
 https://en.wikipedia.org/wiki/HDFC_Life
 https://www.csb.co.in/hdfc-life-insurance
 https://www.hdfcbank.com/personal/products/insurance/life-insurance
 https://www.bankbazaar.com/insurance/hdfc-life-insurance.html