A Project Report on Customers Attitude towards HDFC Standard Life Insurance

“Customers Attitude towards HDFC Standard Life Insurance”

INDEX

S. N.

CONTENTS

PAGE NO.

1

Executive Summary

1

2

Introduction to Topic

4

3

Introduction

10

4

Company Profile

32

5

Research Design

57

6

Data Analysis

60

7

Findings

81

8

Suggestions

83

9

Conclusion

85

10

Bibliography

87

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“Customers Attitude towards HDFC Standard Life Insurance” 11

Annexure

89

EXECUTIVE SUMMARY

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“Customers Attitude towards HDFC Standard Life Insurance”

EXECUTIVE SUMMARY Now a day, the insurance sector is playing a vital role in the portfolio of finance sector. So insurance industry is much concentrating over analyzing customers attitude, which is very essential for the growth of the company, to take competitive advantage in the market.

Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance” Statement of the Problem: The study has been undertaken to know the “Customers attitude towards HDFC Standard Life Insurance”

Objectives of Study: 

To study the customer awareness for HDFC Standard Life.



To understand the customers attitude towards HDFC Standard Life brand.



To know the customers attitude towards the products.



To know the customers attitude towards the service provided by the company.



To examine the consumers buying behavior.



To know the factors which influenced the customers to purchase policy.

.Data Source: 

Secondary: Secondary data consists of readily available information on various web-sites, journals, insurance books & company database.



Primary: Through survey method by using questionnaire

Sampling method: •

Sample size: 100 samples

•

Sample unit: Existing customers of HDFC Standard Life Insurance

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“Customers Attitude towards HDFC Standard Life Insurance” •

Sample area: Belgaum city

Limitations of the study: This survey was restricted to Belgaum city only. Time limit was major constraint. The Sample size restricted to 100 only

Benefits to the Organization: This project will help the organization to know the customer’s attitude towards the products of the company. This will help the organization to provide better services to its clients.

Findings:  35% of policy holders are more concentrated on Unit linked plans, it is due to the reason that the returns on these policies are more compared to the traditional policies.  The major competitors are LIC and ICICI Prudential.  79% of the respondents would like to invest up to 20% of their annual income in life insurance and keep the substantial part of the income for their livelihood.

Suggestions: Service should focus on enhancing the customer experience and maximizing customer convenience. This calls for effective CRM system, which eventually would create sustainable competitive advantage and build long lasting relationship.

Conclusion: Family welfare is the main factor, which investors think while investing in any life insurance company. But other factors such as returns, security, and tax benefit are also carrying almost same preference.

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“Customers Attitude towards HDFC Standard Life Insurance”

INTRODUCTION TO THE TOPIC

Consumer behavior Babasabpatilfreepptmba.com

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Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Attitude Attitude is a hypothetical construct that represents an individual's like or dislike for an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. a person, behavior or event. People can also be "ambivalent" towards a target, meaning that they simultaneously possess a positive and a negative bias towards the attitude in question.

Attitudes are composed from various forms of judgments. Attitudes develop on the ABC model (affect, behavioral change and cognition). The affective response is a physiological response that expresses an individual's preference for an entity. The behavioral intention is a verbal indication of the intention of an individual. The cognitive response is a cognitive evaluation of the entity to form an attitude. Most attitudes in individuals are a result of observational learning from their environment.

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“Customers Attitude towards HDFC Standard Life Insurance” Attitude-Behavior Consistency: Consumers often do not behave consistently with their attitudes for several reasons:  Ability. He or she may be unable to do so. Although junior high school student likes pick-up trucks and would like to buy one, she may lack a driver’s license.  Competing demands for resources. Although the above student would like to buy a pickup truck on her sixteenth birthday, she would rather have a computer, and has money for only one of the two.  Social influence. A student thinks that smoking is really cool, but since his friends think it’s disgusting, he does not smoke.  Measurement problems. Measuring attitudes is difficult. In many situations, consumers do not consciously set out to enumerate how positively or negatively they feel about mopeds, and when a market researcher asks them about their beliefs about mopeds, how important these beliefs are, and their evaluation of the performance of mopeds with respect to these beliefs, consumers often do not give very reliable answers. Thus, the consumers may act consistently with their true attitudes, which were never uncovered because an erroneous measurement was made.

Changing behavior: People like to believe that their behavior is rational; thus, once they use our products, chances are that they will continue unless someone is able to get them to switch. One way to get people to switch to our brand is to use temporary price discounts and coupons; however, when consumers buy a product on deal, they may justify the purchase based on that deal (i.e., the low price) and may then switch to other brands on deal later. A better way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. (Notice, by the way, that this represents a case of shaping).

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“Customers Attitude towards HDFC Standard Life Insurance” Changing beliefs: Although attempting to change beliefs is the obvious way to attempt attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because consumers tend to resist. Several approaches to belief change exist:  Change currently held beliefs: It is generally very difficult to attempt to change beliefs that people hold, particularly those that are strongly held, even if they are inaccurate. For example, the petroleum industry advertised for a long time that its profits were lower than were commonly believed, and provided extensive factual evidence in its advertising to support this reality.

Consumers were suspicious and rejected this information, however.  Change the importance of beliefs: Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth, it is usually not feasible to make beliefs less important--consumers are likely to reason, why, then, would you bother bringing them up in the first place? However, it may be possible to strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. Most consumers already agree with this, but the belief can be made stronger.  Add beliefs: Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. Thus, the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which sounds quite plausible to most people.  Change ideal: It usually difficult, and very risky, to attempt to change ideals, and only few firms succeed. For example, Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression.

Attitude Change Babasabpatilfreepptmba.com

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“Customers Attitude towards HDFC Standard Life Insurance” Changing the Function that the Product Serves Associate the Product with a Famous Personality or an Established Organization Changing Attitudes by Presenting the Product in a New Light Change the Beliefs of the Consumer Regarding the Product Try to Change the Perception of the Consumer Need to understand:  Why consumers make the purchases that they make?  What factors influence consumer purchases?  The changing factors in society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:  Buyers’ reactions to a firms marketing strategy has a great impact on the firm’s success.  The marketing concept stresses that a firm should create a Marketing Mix that satisfies customers, therefore need to analyze the what, where, when and how consumers buy.  Marketers can better predict how consumers will respond to marketing strategies.

If a marketer can identify consumer buyer behavior, he or she will be in a better position to target products and services at them. Buyer behavior is focused upon the needs of individuals, groups and organizations.

It is important to understand the relevance of human needs to buyer behavior (remember, marketing is about satisfying needs).

Let's look at human motivations as introduced by Abraham Maslow by his hierarchy of needs: The hierarchy is triangular. This is because as you move up it, fewer and fewer people satisfy higher level needs. We begin at the bottom level.

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Physiological needs such as food, air, water, heat, and the basic necessities of survival need to be satisfied. At the level of safety, man has a place to live that protects him from the elements and predators. At the third level we meet our social and belongingness needs i.e. we marry, or join groups of friends, etc.

The final two levels are esteem and self-actualization. Fewer people satisfy the higher level needs. Esteem means that you achieve something that makes you recognized and gives personal satisfaction, for example writing a book. Self-actualization is achieved by few. Here a person is one of a small number to actually do something. For example, Neil Armstrong self-actualized as the first person to reach the Moon.

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INTRODUCTION

INTRODUCTION TO INSURANCE The business of insurance is related to the protection of the economic values of the 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 from it.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.

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Purpose and Need of Insurance: Assets are insured because they are likely to be destroyed through accidental occurrences such possible occurrences are called perils. Fire floods breakdowns, lightning, earthquakes etc, are perils. If such perils can cause damage to the asset, the asset is exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingency that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertainties. In the case of a human being, death is certain, but the time of death is uncertain. In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril can sometimes be avoided, through better safety and damage control management.

Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset.

It only compensates the losses and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible.

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“Customers Attitude towards HDFC Standard Life Insurance” The Business of Insurance The business of insurance is to: 1) Bring together persons with common insurance interests (sharing the same risks), 2) Collect the share or contribution (called premium) from all of them, and 3) Pay out compensations (called claims) to those who suffer.

In India, insurance business is classified primarily as life and non-life or general. Life insurance includes all risks related to the lives of human beings and general insurance covers the rest. General insurance has three classifications is; Fire, Marine and Miscellaneous. Personal accident and sickness insurance, which are related to human beings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many other countries.

The business of insurance is nothing but one of sharing. It spreads losses of an individual over the group of individuals who are exposed to similar risks. People who suffer loss get relief because their loss is made good. People who do not suffer loss are relieved because they were spared the loss.

Insurance business is divided into four classes: 1) Life Insurance Business.

2) Fire Insurance Business.

3) Marine Insurance Business.

4) Miscellaneous Insurance Business.

Meaning of Life Insurance Business Babasabpatilfreepptmba.com

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“Customers Attitude towards HDFC Standard Life Insurance” Life insurance, originally conceived to protect a man's family when his death left them without income, has developed into a variety of policy plans.

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness.

In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life based contracts tend to fall into two major categories: •

Protection - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.

•

Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.

Meaning of Fire Insurance Business

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Fire insurance usually includes damage from lightning; other insurance against the elements includes hail, tornado, flood, and drought.

Meaning of Marine Insurance Business Marine insurance protects shipping companies against the loss of a ship or its cargo, as well as many other items, and so-called inland marine insurance covers a vast miscellany of items, including tourist baggage, express and parcel-post packages, truck cargoes, goods in transit, and even bridges and tunnels.

Meaning of Miscellaneous Insurance Business Special casualty forms are issued to cover the hazards of sudden explosions from equipment such as steam boilers, compressors, electric motors, flywheels, air tanks, furnaces, and engines. Boiler and machinery insurance has several distinctive features. A substantial portion of the premium collected is used for inspection services rather than loss protection.

The business of insurance started with marine business. Traders, who used to gather in the Lloyd’s Coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1583 in England. In India, insurance began in 1870.

The business of insurance is the protection of economic values of assets. Every asset is expected to last for a certain period of time during which it will perform. Insurance is a mechanism that helps to reduce the effect of such adverse situation. Insurance is relevant only if there are uncertainties.

Life Insurers transact life insurance business; the rest is transacted by General Insurers.

No composites are permitted as per law.

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The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities, both persons and organizations.

Insurance companies are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multi purpose and offer the following benefits: 1. Protection to the investors 2. Accumulate savings 3. Channelise savings into sectors needing huge long-term investments.

INSURANCE COMPANIES (IC) receives, without much default, a steady cash stream of premium or contributions to pension plans. Various actuary studies and models enable them to predict, relatively accurately, their expected cash outflows. Liabilities of ICs being long-term or contingent in nature, liquidity is excellent and their investments are also long-term in nature. Since they offer more than the return on savings in the shape of life-cover to the investors, the rate of return guaranteed in their insurance policies is relatively low. Consequently, the need to seek high rates of returns on their investments is also low.

The risk-return trade off is heavily tilted in favor of risk. As a combined result of all this, investments of insurance companies have been largely in bonds floated by GOI, PSUs.,state governments, local bodies, corporate bodies and mortgages of long term nature. The last place where Insurance companies are expected to be over-active is bourses.

Lately ICs have ventured into pension schemes and mutual funds also. However, life insurance constitutes the major share of insurance business. Life Insurance depends upon the laws of mortality and there lies the difference between life and general insurance businesses. Life has to extinguish sooner or later and the claim in respect of life is certain.

In case of general insurance, however, there may never be a claim and the amount can be ascertained in advance. Hence, Life Insurance Pension business also derives from life

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“Customers Attitude towards HDFC Standard Life Insurance� insurance in as much as the pension outgo again depends upon the laws of mortality .The forays made by insurance companies in this area are, therefore ,natural corollary of their business includes, besides covering the risk of early happening of an event, an element of savings also for the beneficiaries.

Insurance vs. assurance Outside the United States, the specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions "insurance" refers to providing cover for an event that might happen, while "assurance" is the provision of cover for an event that is certain to happen. However, in the United States both forms of coverage are called "insurance".

When a person insures the contents of their home they do so because of events that might happen (fire, theft, flood, etc.) They hope their home will never be burglarized, or burn down, but they want to ensure that they are financially protected if the worst happens.

This example of insurance shows how it is a way of spending a little money to protect against the risk of having to spend a lot of money.

When a person insures their life they do so knowing that one day they will die. Therefore a policy that covers death is assured to make a payment. The policy offers assurance on death; even if the policy has a prescribed termination date the policy is still assured to pay on death and therefore is an assurance policy. Examples include Term Assurance and Whole Life Assurance. An accidental death policy is not assured to pay on death as the life insured may not die through an accident; therefore it is an insurance policy.

A policy might also be assured for other reasons. For example an endowment policy is designed to provide a lump sum on maturity. Under certain types of policy the lump sum is guaranteed. Therefore, this may also be called an assurance policy.

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The test of whether a policy is assurance or insurance is that with an assurance policy the insured event will definitely occur (at some point) whereas with an insurance policy there is a risk the insured event might occur.

With regard to Whole Life policies, the question is not whether the insured event (in this case death) will occur, but simply when. If the policy has non-forfeiture values (or cash values) then the policy is assured to pay.

During recent years, the distinction between the two terms has become largely blurred.

This is principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one.

Role of Insurance in Economic Development: For economic development, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments foe economic growth.

All good life insurance companies have huge funds, accumulated through the payments of small amount of premium of individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business.

All good life insurance companies have huge funds, accumulated through the payments of small amount of premia of individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business.

The private insurers in India are new and had not built up funds in 2002. But, in course of time, they also would be directly and indirectly contributing to the country’s economic development.

A life insurance company will have large funds. These amounts are collected by way of premiums. Every premium represents a risk that is covered by that premium. In effect,

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“Customers Attitude towards HDFC Standard Life Insurance” therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the policyholders. The management of life insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. That is why successful insurance companies would not be found investing in speculative ventures.

Apart from investments, business and trade benefit through insurance. Without insurance, trade and commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if their debtors default.

INSURANCE INDUSTRY Insurance Sector in India India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market.

The insurance industry in India can be broadly classified in two parts. They are:  Life Insurance  Non-life (General) Insurance

Brief history of Insurance:

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“Customers Attitude towards HDFC Standard Life Insurance” The beginning of the insurance business is traced to the city of London. It started with the marine Business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship.

Marine related losses included A) Loss of ship by shrinking due to weather in high seas.

B) Goods in transit by ship robbed by sea pirates.

C) Loss if goods in transit by ship due to bad weather in high seas.

The first insurance police was issued in 1583 in England. In India insurance began in 1870 with life insurance being transacted by an English company the European and the Albert. The first Indian insurance company was the "Bombay mutual assurance society Ltd, formed in 1870.In 1956 LIC OF India was nationalized on 1/9/1956.

Some of the important milestones in the life insurance business in India are: •

1818:-The British Introduce to India. With the establishment of the Oriental Life Insurance Company in Calcutta.

•

1850:- Non life insurance debuts, with Triton Insurance Company.

•

1870:- Bombay mutual Life Assurance Society is the first India –owned life insurer.

•

1907:-Indian Mercantile Insurance is the first Indian non life insurer.

•

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

•

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

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“Customers Attitude towards HDFC Standard Life Insurance” •

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

•

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

•

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

•

1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms.

•

1994:-Malhotra Committee recommends re-entry for private players, autonomy to PSU insurers.

•

1997:-Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.

•

2000:- IRDA starts giving licenses to private insurers, ICICI Prudential and HDFC Standard Life first private insurers to sell a policy.

•

2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene, insurers start selling non-life claims in the cashless mode

Insurance Sector Reforms: In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its Babasabpatilfreepptmba.com

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“Customers Attitude towards HDFC Standard Life Insurance” future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms". In 1994, the committee submitted the report and some of the key recommendations included: 1) Structure: •

Government stake in the insurance Companies to be brought down to 50%.

•

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

•

All the insurance companies should be given greater freedom to operate.

2) Competition: •

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry.

•

No Company should deal in both Life and General Insurance through a single entity.

•

Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

•

Postal Life Insurance should be allowed to operate in the rural market.

•

Only One State Level Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body: •

The Insurance Act should be changed.

•

An Insurance Regulatory body should be set up.

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“Customers Attitude towards HDFC Standard Life Insurance” •

Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments: •

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%

•

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)

5) Customer Service: •

LIC should pay interest on delays in payments beyond 30 days. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

Bank and Insurance: Bank assurance symbolizes the convergence of banking and insurance. The term has its origins in France and involves distribution of insurance products through a bank's branch

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“Customers Attitude towards HDFC Standard Life Insurance” network. While bank assurance has developed into a tremendous success story in Europe, it is a relatively new concept in Australia and Asia.

Most new insurers have entered into memoranda of understanding with banks to use their branches as outlets for marketing standard products. State Bank of India, Vysya Bank and J&K Bank already has joint ventures in life insurance. Vijaya Bank and Punjab National Bank are in the midst of finalizing life and non-life ventures.

The Insurance Act allows only those companies registered under the Companies Act to become corporate agents. This gives the new generation and old private sector banks a head start over Public sector banks, which are technically not eligible to sell risk products.

IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector banks will play a key role in the distribution of products.

March 2003 Review: The Insurance Regulatory and Development Authority have said that a bank cannot enter into a referral arrangement with more than one life insurance company or more than one general insurance company. Insurance companies can enter into referral arrangements displaying the insurer’s publicity material in the branch premises.

According to the IRDA, the participation of the bank’s customers in any insurance scheme shall be purely on a voluntary basis and this fact should appear prominently in all publicity materials distributed by the bank and the insurer. According to latest IRDA circular, the total payout under the referral fee has been capped as a percentage of the Circular, the total payout under the referral fee has been capped as a percentage of the total premium, which varies from 5.5% to 55% depending on the extent of the business.

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“Customers Attitude towards HDFC Standard Life Insurance” The company generates through the referral arrangement. IRDA has barred insurers from paying any referral fee for any promotional campaign. Besides, insurers cannot pay any commission or other remuneration along with the referral fees.

March 2004 Review: IRDA has announced new guidelines pertaining to payment of brokerage to insurance brokers carrying on direct insurance business in the country. As per the new guidelines on general insurance contracts, insurance brokers cannot charge brokerage or commission on the business of Government and public sector undertakings (PSUs. Business from these classes of customers will be placed directly with the insurance companies, wherein they will continue to enjoy a five per cent discount on the basic tariff applicable.

The notification will come into effect from April 1, 2003, and applies to all general insurance contracts. These guidelines will not apply to reinsurance broking contracts.

Brokerage/commission includes any royalty, license fees, administration charges or any compensation, which any agreement between the parties provide for intermediation.

IRDA has so far issued broking licenses to 32 entities in the country.

IRDA has laid out stringent norms including cap on exposure in MF investment as well as investment in stocks and shares for both public and private insurance companies detailing the guidelines for investments in mutual funds (MFs).

According to this circular, the investment in MFs at any point of time shall not exceed 50 per cent of investment falling under the ‘other than approved investments’ (OTAI) category for both life and general insurance companies. IRDA has also stipulated that the MFs in which the insurers invest should be registered with the SEBI. Besides, the insurer should always ensure that the investments in MF are diversified among the products of different companies.

Life insurers: S.No. Registration Date of Number Reg.

Name of the Company

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1

101

23.10.2000 HDFC Standard Life Insurance Company Ltd.

2

104

15.11.2000 Max New York Life Insurance Co. Ltd.

3

105

24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4

107

10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5

109

31.01.2001 Birla Sun Life Insurance Company Ltd.

6

110

12.02.2001 Tata AIG Life Insurance Company Ltd.

7

111

30.03.2001 SBI Life Insurance Company Limited .

8

114

02.08.2001 ING Vysya Life Insurance Company Private Limited

9

116

03.08.2001 Bajaj Allianz Life Insurance Company Limited

10

117

06.08.2001 MetLife India Insurance Company Ltd.

11

133

04.09.2007 Future General India Life Insurance Company Limited

12

135

19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Major Market Players: 1. Life Insurance Corporation of India (LIC)

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The Life Insurance Corporation (LIC) was established about 44 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and became synonymous with life insurance. Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh agency force. LIC has hundred divisional offices and has established extensive training facilities at all levels. At the apex, are the Management Development Institute, seven Zonal Training Centers and 35 Sales Training Centers. At the industry level, along with the Government and the GIC, it has helped establish the National Insurance Academy. It presently transacts individual life insurance businesses, group insurance businesses, social security schemes and pensions, grants housing loans through its subsidiary; and markets savings and investment products through its mutual fund. It pays off about Rs 6,000crore annually to 5.6 million policyholders.

2. ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. Prudential plc established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide ICICI Prudential enjoys the second highest market share after Life insurance corporation.

ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period April-December 2004, the company garnered Rs 860 crore of new business premium for a total sum assured of over Rs 7,360 crore and wrote nearly 345,000

3

Birla Sun Life Insurance Company Limited

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Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75

business units in India and overseas with

operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to name a few.

Foreign Partner: Sun Life Assurance, Sun Life Financials primary insurance business, has excellent ratings with the world's top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial services organizations in the world. Today, the Sun Life Financial Group of companies and partners are represented globally in Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda.

4 OM Kotak Mahindra Life Insurance Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc.

The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of India's leading Financial Institutions.

Old Mutual Old Mutual plc is an international financial services group based in London with expanding operations in life assurance, asset management, banking and general insurance. Old Mutual is listed on the London Stock Exchange (where it is included the FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 156 years of experience in the life insurance business.

OM Kotak Mahindra

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“Customers Attitude towards HDFC Standard Life Insurance�

OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products.

5 Max New York Life: Max India: Max India Limited is a multi-business corporation that has business interests in telecom services, bulk pharmaceuticals, electronic components and specialty products. It is also the service-oriented businesses of healthcare, life insurance and information technology.

New York Life: New York Life has grown to be a Fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894, New York Life pioneered the then unheard-of concept of insuring women at the same rate as men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in 1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.

Today New York Life has over US billion in assets under management and over 30,000 agents and employees worldwide. The October 2000 Fortune Survey named New York Life amongst the top three most admired life and health insurance companies worldwide.

With over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide.

6 Aviva Life Insurance India: Aviva Life Insurance India is joint venture between Dabur, one of India's oldest and largest groups of companies and Aviva. Aviva plc. is UK’s largest insurer. In accordance with government regulations, Aviva holds a 26 percent stake in the new venture and Dabur holds a 74 percent share.

Aviva:

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“Customers Attitude towards HDFC Standard Life Insurance�

Aviva is the world's seventh-largest insurance group (Based on gross worldwide premiums) and the biggest in the UK. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world.

Its main activities are long-term savings, fund management and general insurance.

7 ING Vysya Life Insurance: ING Group: ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, ING Vysya Bank and GMR Group. Over the last 150 years, ING Group has grown to become one of the largest life insurance organizations in the world. Today it touches the lives of over 50 million people across 65 countries. It offers a range of financial services including insurance, pensions, banking and asset management. In the year 2000, total assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries.

ING Vysya Bank Limited: It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million customers, 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services. ING Vysya Bank has a longstanding relationship with its customers and deep understanding of the Indian market.

GMR Group:

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“Customers Attitude towards HDFC Standard Life Insurance” It has a solid track record of over two decades of growth and has wide-ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking.

GMR group has an excellent reputation of being able to successfully develop ventures from scratch.

8 MetLife India Insurance Pvt. Company: MetLife India was incorporated as a joint venture between MetLife International Holdings, Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors.

MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and additional 1000 outreach points through its channel partners.

MetLife: Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of the world’s largest, strongest and most respected financial organizations. MetLife, through its affiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of life insurance in force (as of December 2002) and has been delivering reliable, high quality service to customers since 1868. The MetLife companies serve approximately 12million individuals in the U.S. as well as the employees of 88 of the Fortune 100 companies.

Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12 countries across the Americas, Europe and Asia.

9 Allianz Bajaj Life Insurance Co. Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Foreign Partner:

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“Customers Attitude towards HDFC Standard Life Insurance” Allianz Group is one of the world's leading insurers and financial service providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of • Property and Casualty Insurance, • Life and Health Insurance, • Asset Management and Banking.

10 SBI Life Insurance Company Ltd: SBI Life Insurance Company Ltd. is a joint venture between India's largest bank, State bank of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. State Bank of India (SBI) is a household name, and it stands as the last word for financial strength and security in the country. SBI's illustrious background dates back to the year 1806 when it started business, as a presidency bank, known as Bank of Bengal.

Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years.

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“Customers Attitude towards HDFC Standard Life Insurance”

COMPANY PROFILE

Housing Development Financial Corporation Ltd

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“Customers Attitude towards HDFC Standard Life Insurance” Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the Corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India.

HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.

HDFC Standard Life Insurance Company Ltd: HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard Life Assurance Company, a leading provider of financial services from the United Kingdom.

Incorporated on 14th August 2000, it was the first life company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. HDFC Standard Life is one of the first companies to be granted license by the IRDA to operate in life insurance sector.

It is a joint venture of HDFC Ltd and Standard Life Europe's largest mutual life assurance company. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance is a new Indian life insurance company that operates out of 52 locations. It offers clients a range of insurance plans to meet their savings, investment and protection needs. In the financial year 2002-03, the company registered a year-on-year growth of over 260%. It is also the first new life insurance company to declare its third successive bonus for participating policy holders.

In order to survive in the insurance segment, HDFC had to introduce new products. They were looking for a robust and integrated solution to support the new

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“Customers Attitude towards HDFC Standard Life Insurance� product. HDFC was also facing numerous problems with their current systems in terms of performance, reliability and scalability.

HDFC Standard Life Insurance sells a range of individual savings, pension and group life assurance products and has branch offices in 39 locations throughout India. It was recently rated as the "Best New Insurer - 2003" by Outlook Money magazine. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry.

HDFC Standard Life Insurance is one of the leading private life insurance companies.

The company generated premium from new business of Rs. 486 Cr in 2004-05, registering a year-on-year growth of over 132%. The total premium income (including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company also achieved a major milestone during the financial year by crossing a Sum Assured figure of Rs. 30,000 Cr. The company also declared its fifth bonus for participating policyholders.

HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life Group, UK

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“Customers Attitude towards HDFC Standard Life Insurance” Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

The Joint Venture HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

VISION & MISSION

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“Customers Attitude towards HDFC Standard Life Insurance” We aim to be the top new life insurance company in the market. This doe’s not just mean being the largest or the most productive company in the market, rather it is a combination of several things like•Customer service of the highest order •Value of 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.

Key Values:  SECURITY: Providing long term financial security to our policy holders will be our constant Endeavour. We will be doing this by offering life insurance and pension products.  TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.  INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this.

Board Members Mr. Deepak S Parekh Babasabpatilfreepptmba.com

Chairman of HDFC Limited.

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Mr. Keki M Mistry

Managing Director of HDFC Limited.

Mr. Alexander M Crombie

Group Chief Executive of the Standard Life

Ms. Marcia D Campbell

Group Operations Director

Mr. Keith N Skeoch

Chief Executive in Standard Life

Mr. Ranjan Pant

Global Management Consultant

Ms. Renu S. Karnad

Executive director of HDFC Limited

Key strengths: 

Financial Expertise

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“Customers Attitude towards HDFC Standard Life Insurance” As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. 

Range of Solutions

We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. 

Track Record so far

Our cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the current financial year, Apr-Nov 2005.

We have covered over 11, 00,000 individuals out of which over 3, 40,000 lives have been covered through our group business tie-ups.

Highlights of Financial Year 2007-08

 New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% @Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07 Babasabpatilfreepptmba.com

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 Alternate Channels including banc assurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI)  Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07  The average premium has increased to Rs. 33,000  Company products and services are now available in 726 cities and towns across the country  Strength of Financial Consultants has increased to 1,45,000

HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally

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“Customers Attitude towards HDFC Standard Life Insurance” PRODUCTS: HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy.

Protection Plans o

Term Assurance Plan

o

Loan Cover Term

o

Assurance Plan

Investment Plans: o

Single Premium Whole Life Plan

Pension Plans: •

Personal Pension Plan

•

Unit Linked Pension Plan

•

Unit Linked Pension Plus

Savings Plans: o

Endowment Assurance Plan

o

Unit Linked Endowment

o

Unit Linked Endowment Plus

o

Money Back Plan

o

Children's Plan

o

Unit Linked Young star

o

Unit Linked Young star Plus

GROUP PRODUCTS o

Group Term Insurance

o

Group Variable Term Insurance

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“Customers Attitude towards HDFC Standard Life Insurance” o

Group Unit Linked Plan

OTHER PRODUCTS •

Social Development Insurance Plan

INDIVIDUAL PRODUCTS: For individuals, they have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs.

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

Protection Plans One can protect their family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans Single Premium Whole of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.

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“Customers Attitude towards HDFC Standard Life Insurance” Pension Plans Pension Plans helps one secure their financial independence even after retirement.

Pension range includes Personal Pension Plan and Unit Linked Pension Plan.kkk

Savings Plans Savings Plans offers flexible options to build savings for ones future needs such as buying a dream home or fulfilling your children’s immediate and future needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment Assurance Plan, Money Back Plan, Children’s Plan, Unit Linked Young star Plan.

GROUP PRODUCTS: 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.

Some of the group products to our esteemed corporate clients: Group Term Insurance : Whatever the business – It’s the people who make it a success. Everybody requires Some type of life insurance, especially when others depend on them financially.

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“Customers Attitude towards HDFC Standard Life Insurance” The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for companies to reinforce their bond with their employees. The sort of needs, you, as an employer need to cater to could be in form of:  Employee benefits.  Cover for housing or vehicle loans given by you to your employees.  A GTI cover for future service gratuity liability to be taken along with the HDFC Group Unit Linked Plan.

The HDFC Group Term Insurance is a cost-effective plan that addresses these needs.

In addition you have the choice to opt for a GTI with an experience discount feature ("Profit Share"), where a discount is given on future premiums in case of favorable claim experience (subject to group size).

Group Variable Term Insurance The Group Variable Term Insurance is a tailor made insurance policy for third party institutions. HDFC Standard Life Insurance Company will offer life insurance to customer’s of one or more of the third party’s specific products in order that in the event of their death, there will be a lump sum available.

The Group Variable Term Insurance: On death, will pay a lump sum known as a sum assured. The sum assured varies over time in order that the customer receives the cover that they need.

Is a group policy.

•

Has no lengthy underwriting procedure.

•

Is simple to administer

GROUP UNIT LINKED PLAN Many organizations realize that the statutory requirement benefits are not sufficient for their trusted employees to continue enjoying their quality of life after they retire. The HDFC Group Unit Linked Plan is a great way for an employer to show his employees that he not only takes care of them while in service, but has also ensured that they can lead a comfortable life after retirement.

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“Customers Attitude towards HDFC Standard Life Insurance” The HDFC Group Unit Linked plan is also a great employee retention and motivation tool that helps employers to fund their employees’ post-retirement needs in a systematic, tax-efficient and cost-effective manner. Moreover, as a unit-linked plan, it gives you tremendous flexibility and freedom to customize individual retirement funds for your employees based on their appetite for risk and the stage of life they are in.

This plan helps an organization by:  Providing an investment vehicle to trustees for making the contribution for each member.  Helping build a substantial retirement fund for each member.  Presenting a potential to provide higher benefits to employees.  Offering tax benefits for investments made through the formation of a trust

INDIVIDUAL PRODUCTS: Term Assurance Plan If you have a family that you care for, you should consider what would happen in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the wellbeing of your family in case of your unfortunate death. This plan comes to you at a Minimal cost and is well-suited for the value-conscious customer. Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. Since this non-participating (without profits) plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

Term Assurance Plan:

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“Customers Attitude towards HDFC Standard Life Insurance” A protection plan to secure higher protection needed for your family at economical rates Optional riders for enhanced protection Unique joint life option to cover your spouse under the same plan Single / regular premium payment options

PERSONAL PENSION PLAN Today, one is busy climbing the ladder of success and realizing their dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace?

Will your income be the same forever? Will you be able to live life on your own terms even after you retire?

HDFC PERSONAL PENSION PLAN: HDFC understands ones need to build a secure future for them. Hence, the HDFC Personal Pension Plan is an insurance policy that is designed to provide a post – retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonus, which will provide your post - retirement income.

The HDFC Personal Pension Plan is an insurance policy, which can benefit one in the following ways: •

Provides a post retirement income in your golden years

•

Gives you the flexibility to plan your retirement date

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Gives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.

Easy steps to get insured are: 

Choose your retirement age



Estimate the post – retirement income you require.



Work out the premium payable with your Financial Consultant.

UNIT LINKED PENSION PLAN: Lead a life of respect and dignity. Even after retirement Today, one is busy climbing the ladder of success and realizing their dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire?

HDFC UNIT LINKED PENSION PLAN HDFC understands ones need to build a secure future for them. The HDFC UnitLinked Pension Plan is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns by providing a choice of thoroughly researched and selected investments. Stride into your golden years of retirement with dignity and pride. You can choose your premium and the investment fund or funds. We will then invest your premium, net of charges in your chosen funds in the

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“Customers Attitude towards HDFC Standard Life Insurance” proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds, which will be used to provide your pension income. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you in the following ways: 

Provides a post retirement income for life



Gives you the flexibility to plan your retirement date



Gives you the freedom to invest premiums as per your preference



Offers you potentially higher market linked returns



Give you tax benefits on your premiums and on receiving the lump sum

Easy steps to get insured are: •

Choose your retirement age

•

Choose the premium you wish to invest, based on your retirement needs.

•

Choose the investment fund or funds you desire.

Endowment Assurance Plan: You have given your family the very best. And there is no reason why they should not get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the longterm.More importantly, you have to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly built by you, in your absence? With our HDFC Endowment Assurance Plan, you can ensure that your family remains financially

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“Customers Attitude towards HDFC Standard Life Insurance” independent, even if you are not around. You can ensure that they live a life of respect and dignity. Always

The HDFCSL Endowment Assurance Plan gives: An ideal way to secure your long-term financial goals Valuable protection to your family by way of lump sum payment in case of your unfortunate death within policy term Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date Very flexible benefit options and payment options.

In case of your unfortunate demise during the policy term, this participating (‘With Profits’) insurance plan will pay your family the Sum Assured (together with the attached bonuses) you had chosen.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment

Easy steps to get insured are: Choose the amount of targeted savings and policy term using our Financial Planning Tool.

Choose from any one of the 4 additional benefit options as per your requirement. Work out the premium payable and Sum Assured with our Financial Consultant.

CHILDREN'S PLAN:

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“Customers Attitude towards HDFC Standard Life Insurance” As a parent, your priority is your child’s future and being able to meet your child’s dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you’ll need when your child takes these important steps in life!

Plan today to ensure a bright future for your child. Start building savings today with our HDFC Children’s Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

HDFC Children's Plan The HDFC Children's Plan gives: Invaluable financial support to your child Helps you customize an ideal plan for your child Provides you multiple options for multiple benefits

The HDFC Children’s Plan is designed to secure your child’s future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See ‘Bonuses’ for more details).

Easy steps to follow:

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“Customers Attitude towards HDFC Standard Life Insurance” Choose the amount of targeted savings and policy term using our Financial Planning Tool.

Choose any one of the 3 plan options as per your child's requirement.

Work out the premium payable and Sum Assured with our Financial Consultant

UNIT LINKED YOUNG STAR PLAN: As a parent, your priority is your children’s future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit Linked Young Star Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

The HDFC Unit Linked Young Star Plan gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection in case of the insured parent’s unfortunate demise Very flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover You can choose your premium and the investment fund or funds. We will then invest your premium, net of charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds In case of your unfortunate demise during the policy term, HDFC Standard Life will continue the policy and continue to pay the original premiums you had chosen.

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“Customers Attitude towards HDFC Standard Life Insurance” Your family will receive the Sum Assured you had chosen* plus the fund built up by your and HDFC Standard Life’s contributions. Use HDFC Standard Life’s excellent investment options to maximize your savings and Maximize your child’s achievements.

We will provide security for your child and make those savings on your behalf, in your absence Easy steps to follow: Choose the premium you wish to invest.

Choose the amount of Protection (Sum Assured) you desire.

Choose the additional benefit options you desire.

Choose the investment fund or funds you desire.

Money Back Plan: You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure that you have the necessary funds to meet your future financial needs.

The table below will help you identify and classify some of your financial goals. You can prioritize these goals and set your objectives accordingly (see indicative table given below).

LONG-TERM GOALS

SHORT TERM GOALS

Provide adequate cover for Life, Critical Buying a car Illness or disability.

Saving for big-ticket assets like your Saving for your marriage house.

Saving for your children’s education Vacation abroad Having a regular system for savings

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“Customers Attitude towards HDFC Standard Life Insurance” The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you: A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the policy term (see the table given below) – an ideal way to secure your longterm as well as short-term financial goals A lump sum payment on survival up to maturity date Valuable protection to your family by way of lump sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payouts Making the right kind of investment will enable you to achieve your objectives – be it your immediate expenses or else securing your future financial needs. Our Money Back Plan gives you a wide range of terms and cash benefit schedule to choose from. A summary of Key Benefits including the cash lump sum payments, expressed as a Percentage of Sum Assured is shown below.

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“Customers Attitude towards HDFC Standard Life Insurance” Maturity Value On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term.

You can ensure your financial independence. And be able to live life on your own terms.

Steps to be followed: Choose the amount of targeted savings and policy term using our Financial Planning Tool Choose from any one of the 4 additional optional benefits as per your requirement.

Work out the premium payable and Sum Assured with our Financial Consultant.

Unit Linked Plan The Group Term Insurance (GTI) is a cost-effective plan that addresses these needs.

In addition you have the choice to opt for a GTI with an experience discount feature, Wherein a discount is given on future premiums in case of favorable claim experience The Group Term Insurance plan will have the following structure One year renewable term insurance plan One master policy issued covering all members of the group Sum assured is payable on death (either due to natural causes or accidents) Key features of the plan Our product has been designed to offer innovative features and a high degree of Customization. These are: Convenient medical procedures The members do not need to undergo any medical examination up to the “Free Cover Limit”. This limit is dependant upon the sum assured and the size of the group.

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“Customers Attitude towards HDFC Standard Life Insurance” Awards and Accolades March,

2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mint’s Top Television Advertisement survey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mint’s exclusive report, ‘New Voices in a makeover’ outlines the survey in detail.

February,

2008

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations.

January, Babasabpatilfreepptmba.com

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“Customers Attitude towards HDFC Standard Life Insurance” 2008 Sar Utha Ke Jiyo among India’s 60 Glorious Advertising Moments HDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious Advertising & Marketing Moments' over the last 60 years in India,’ by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years.

December,

2007

Pension Plan Tops Mint’s Survey of Best TV Ads HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth on ad reach in a survey of new television advertisements in November, 2007, conducted by Mint, the leading business newspaper of the Hindustan Times Group. Our pension advertising was ranked first in terms of ad diagnostic scores (likeability, credibility, enjoyment). The respondents were between 18 and 40 years. We were ranked 8th in terms of a combined score of ad awareness and brand recall.

September,

2007

Ranked Sixth Most Effective Advertisement

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“Customers Attitude towards HDFC Standard Life Insurance”

HDFC Standard Life was ranked 6th amongst ‘The 10 most effective ads’ in September 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. We have moved up from 56th position in August 2007. JuxtConsult’s Ad Box Office is India’s biggest monthly monitor of most effective television ads amongst urban consumers. The ranking was based on the total effectiveness of the ad in connecting the Sar Utha Ke Jiyo ranked 10th in the Top 10 Top-of-mind ad slogans in September, 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. The ranking was based on how much our ad slogan recalled ‘top of mind’ in the daily ad clutter.

June,

2007

Received PCQuest Best IT Implementation Award 2007 HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system.

PCQuest, the leading IT publication from the Cyber Media Group identified six most innovative IT implementation projects deployed successfully across India for the award.

The winners of the 4th PCQuest Best IT Implementation Awards were chosen from 250 nominations across 22 industries and 23 projects ranging from government, banking finance and insurance, manufacturing, petroleum, and IT/ITES to poultry, travel and tourism, real estate, construction, power and utilities.

.

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“Customers Attitude towards HDFC Standard Life Insurance”

RESEARCH DESIGN

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“Customers Attitude towards HDFC Standard Life Insurance” Title of the Study: “Customers Attitude towards HDFC Standard Life Insurance” Statement of the Problem: The study has been undertaken to know the “Customers attitude towards HDFC Standard Life Insurance”

Objectives of Study: 

To study the customer awareness for HDFC Standard Life.



To understand the customers attitude towards HDFC Standard Life brand.



To know the customers attitude towards the products.



To know the customers attitude towards the service provided by the company.



To examine the consumers buying behavior.



To know the factors which influenced the customers to purchase policy.

Benefits to the Organization: This project will help the organization to know the customer’s attitude towards the products of the company. This will help the organization to provide better services to its clients.

Data Source: The sources of data collected are: Secondary Data: •

Information is collected through internet

•

From various text books

•

Journals and magazines

Primary Data: •

Questionnaire

•

Personal interview

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“Customers Attitude towards HDFC Standard Life Insurance” Sampling method: •

Sample size: 100 samples

•

Sample unit: Existing customers of HDFC Standard Life Insurance

•

Sample area: Belgaum city

•

Sample Technique: Convenience sampling

Tools Used For Analysis: SPSS Software MS excel

Data Collection Approach: Primary data has been used to carry out the research successfully. The secondary data has been collected from various journals and publications. For the purpose of gathering primary data a structure and non-disguised questionnaire was designed to collect data from the Customers. The questionnaire contains both open-ended and closeended questions.

Method of Communication: In order to minimize the bias in data collection, the method of personal interaction was adopted.

Limitations of the study:  This survey was restricted to Belgaum city only.  Time limit was major constraint.  The sample size restricted to 100 only.

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“Customers Attitude towards HDFC Standard Life Insurance”

DATA ANALYSIS

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“Customers Attitude towards HDFC Standard Life Insurance” CUSTOMERS PROFILE:

Age

Valid

20 - 30 30 -40 40 - 50 50-60 Total

Frequency 41 34 17 8 100

Percent 41.0 34.0 17.0 8.0 100.0

Valid Percent 41.0 34.0 17.0 8.0 100.0

Cumulative Percent 41.0 75.0 92.0 100.0

Age 50-60 8.0% 40 - 50 17.0%

20 - 30 41.0%

30 -40 34.0%

Analysis: From the pie chart it depicts that majority of Customers age is in between 20 – 40 age.

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“Customers Attitude towards HDFC Standard Life Insurance” Sex

Valid

Male Female Total

Frequency 72 28 100

Percent 72.0 28.0 100.0

Valid Percent 72.0 28.0 100.0

Cumulative Percent 72.0 100.0

Sex Female 28.0%

Male 72.0%

Analysis Out of 100 Respondents •

72% of respondents are male

•

28% of respondents are female

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Marital Status

Valid

Married Unmarried Total

Frequency 67 33 100

Percent 67.0 33.0 100.0

Valid Percent 67.0 33.0 100.0

Cumulative Percent 67.0 100.0

Marital Status Unmarried 33.0%

Married 67.0%

Analysis: Out of 100 respondents majority of respondents are married.

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“Customers Attitude towards HDFC Standard Life Insurance�

Education

Valid

Graduate Post Graduate Under Graduate Proffesional Total

Frequency 41 25 29 5 100

Percent 41.0 25.0 29.0 5.0 100.0

Valid Percent 41.0 25.0 29.0 5.0 100.0

Cumulative Percent 41.0 66.0 95.0 100.0

Education Proffesional 5.0%

Under Graduate 29.0%

Graduate 41.0%

Post Graduate 25.0%

Analysis: According to analysis majority of clients are Graduate.

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“Customers Attitude towards HDFC Standard Life Insurance” Occupation

Valid

Government Employee Business Private employee Proffesional Other Total

Frequency 10 26 28 5 31 100

Percent 10.0 26.0 28.0 5.0 31.0 100.0

Valid Percent 10.0 26.0 28.0 5.0 31.0 100.0

Cumulative Percent 10.0 36.0 64.0 69.0 100.0

Occupation Government Employee 10.0% Other 31.0% Business 26.0%

Proffesional 5.0% Private employee 28.0%

Out of 100 Respondents •

10% of respondents are Government employees

•

26% of respondents are Business

•

28% of respondents are Private employee

•

5% of respondents are Professionals

•

31% of respondents are others

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“Customers Attitude towards HDFC Standard Life Insurance�

Annual Income

Valid

Below 1 Lakh 1- 2lakhs 2 - 3 Lakhs 3 - 4Lakhs Abow 4l akhs Total

Frequency 28 30 27 13 2 100

Percent 28.0 30.0 27.0 13.0 2.0 100.0

Valid Percent 28.0 30.0 27.0 13.0 2.0 100.0

Cumulative Percent 28.0 58.0 85.0 98.0 100.0

Annual Income Abow 4l akhs 2.0% 3 - 4Lakhs 13.0%

Below 1 Lakh 28.0%

2 - 3 Lakhs 27.0%

1- 2lakhs 30.0%

Out of 100 respondents the pie chart depicts that majority of respondents have annual income of 1-2 lakhs per annum.

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“Customers Attitude towards HDFC Standard Life Insurance” Can you mention the names of life insurance companies?

HDFC SLIC LIC of India ICICI Prudential MetLife TATA AIG SBI Aviva Max New York Kotak Mahindra ING Vysya Reliance Bajaj Allianz Others

100 100 75 14 22 27 22 8 7 5 12 10 5

Can you mention the names of life insurance companies 120 100

100

100 75

80 60

Series1

40

14

20

22

27

22

8

7

5

12

10

5

SB I A M viv ax a N ew Ko yo ta k rk M ah in dr IN a G Vy sy a Re l ia Ba nc ja e jA llia nz e O th er s

of In IC d IC IP ru d M et life TA TA AI G

LI C

HD

FC

SL IC

0

In which company you have invested?

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“Customers Attitude towards HDFC Standard Life Insurance�

TATAAIG

3

ICICI Prudential

9

LIC of India

61

MetLife

0

Others

6

Others 8% Metlife 0%

TATAAIG 4%

ICICI Prud 11%

TATAAIG ICICI Prud LIC of Ind Metlife Others

LIC of Ind 77%

The chart depicts that the customers of HDFC Standard Life are also having policies in the other companies this indicates that the customers opt for different plans which they prefer in other companies.

What % of your savings would you like to invest in Life insurance

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“Customers Attitude towards HDFC Standard Life Insurance�

Policy annually?

What % of your savings would you like to invest in Life Insurance policy annually ?

Valid

Upto 20% 21% - 30% Total

Frequency 79 21 100

Percent 79.0 21.0 100.0

Valid Percent 79.0 21.0 100.0

Cumulative Percent 79.0 100.0

What % of your savings would you like to invest 21% - 30% 21.0%

Upto 20% 79.0%

Most of the customers would like to invest up to 20% and keep the substantial part of the income for their livelihood.

Which policy have you taken from HDFC Standard Life?

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“Customers Attitude towards HDFC Standard Life Insurance�

Which policy have you taken from HDFC Standard Life ?

Valid

Pension Plan Children Plan Protection Plan Investment Plan Unit Linked Plan Other Total

Frequency 27 14 11 10 35 3 100

Percent 27.0 14.0 11.0 10.0 35.0 3.0 100.0

Valid Percent 27.0 14.0 11.0 10.0 35.0 3.0 100.0

Cumulative Percent 27.0 41.0 52.0 62.0 97.0 100.0

Which policy have you taken from HDFC Standard Life ?

Other 3.0% Pension Plan 27.0% Unit Linked Plan 35.0%

Children Plan 14.0% Investment Plan 10.0%

Protection Plan 11.0%

According to the analysis, unit linked plan has captured the mindsets of the customers compared to traditional plans

Specify the reason for investing in HDFC Standard Life?

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“Customers Attitude towards HDFC Standard Life Insurance�

Specify the reason for investing in HDFC Standard LIfe ?

Valid

Service Saving Tax Benefit Return On Investment Total

Frequency 19 8 25 48 100

Percent 19.0 8.0 25.0 48.0 100.0

Valid Percent 19.0 8.0 25.0 48.0 100.0

Cumulative Percent 19.0 27.0 52.0 100.0

Specify the reason for investing in HDFC Standard LIfe ?

Return On Investment 48.0%

Service 19.0%

Saving 8.0%

Tax Benefit 25.0%

Most of the customers (48%) invest in HDFC Standard Life Insurance for getting high returns on investment. And minority is 8% of respondents have invested in HDFC Standard Life for savings purpose.

How did you come to know about HDFC Standard Life?

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“Customers Attitude towards HDFC Standard Life Insurance�

How did you come to know about HDFC Standard Life ?

Valid

Periodicals Family & Friends Financial Consultants Adversitments Others Total

Frequency 21 41 28 8 2 100

Percent 21.0 41.0 28.0 8.0 2.0 100.0

Valid Percent 21.0 41.0 28.0 8.0 2.0 100.0

Cumulative Percent 21.0 62.0 90.0 98.0 100.0

How did you come to know about HDFC Standard Life ?

Others 2.0% Adversitments 8.0% Financial Consultant 28.0% Periodicals 21.0%

Family & Friends 41.0%

Chart indicates that majority of customers have come to know about HDFC Standard Life Insurance from their Family& Friends.

Who influences you, while making purchase decision (Company / policy decision)?

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“Customers Attitude towards HDFC Standard Life Insurance” Who influence you ,While making purchase decision(Company / Policy decision) ?

Valid

Friends & Colleagues Family & Relatives Financial Consultant Adversitment others Total

Frequency 22 18 51 5 4 100

Percent 22.0 18.0 51.0 5.0 4.0 100.0

Valid Percent 22.0 18.0 51.0 5.0 4.0 100.0

Cumulative Percent 22.0 40.0 91.0 96.0 100.0

Who influence you ,While making purchase decision others 4.0% Adversitment 5.0%

Friends & Colleagues 22.0%

Family & Relatives Financial Consultant

18.0%

51.0%

Analysis Out of 100 Respondents •

40%&of respondents have been influenced by reference groups while making purchase decision (company /policy decision)

•

51% of respondents have been influenced from Financial Consultants while making purchase decision (company /policy decision)

Would you like to recommend HDFC Standard Life to others?

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“Customers Attitude towards HDFC Standard Life Insurance” Would you like to reccomend HDFC Standard Life to others ?

Valid

Yes No Total

Frequency 79 21 100

Percent 79.0 21.0 100.0

Valid Percent 79.0 21.0 100.0

Cumulative Percent 79.0 100.0

Would you like to recomend HDFC SL to others?

No 21.0%

Yes 79.0%

Analysis:  79 % of respondents have positive attitude towards HDFC Standard Life that they willingness to recommend HDFC Standard Life to others.  21% of respondents have not going to recommend HDFC Standard Life.

It is easy to invest in HDFC Standard Life.

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“Customers Attitude towards HDFC Standard Life Insurance�

It is easy to invest in HDFC Standard Life

Valid

Stronly Agree Agree Neither Agree Nor Disagree Disagree Total

Frequency 51 31

Percent 51.0 31.0

Valid Percent 51.0 31.0

Cumulative Percent 51.0 82.0

13

13.0

13.0

95.0

5 100

5.0 100.0

5.0 100.0

100.0

It is easy to invest in HDFC Standard Life Disagree 5.0% Neither Agree Nor Di 13.0%

Stronly Agree 51.0% Agree 31.0%

Analysis : Out of 100 Respondents majority of the customers strongly agree saying that it is easy to invest in HDFC Standard Life Insurance.

HDFC Standard Life maintains good relation with Customer (After sales service).

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“Customers Attitude towards HDFC Standard Life Insurance” HDFC Standard LIfe maintains good relation with customer

Valid

Strongly Agree Agree Neither Agree nor Disagree Total

Frequency 15 53

Percent 15.0 53.0

Valid Percent 15.0 53.0

Cumulative Percent 15.0 68.0

32

32.0

32.0

100.0

100

100.0

100.0

HDFC Standard LIfe maintains good relation with customer Neither Agree nor Di 32.0% Strongly Agree 15.0%

Agree 53.0%

Analysis:  68% of respondents (15% strongly agree + 53% Agree) have positive attitude towards service provided by the company.  32% of respondents have not in a position to decide the service provided by the company.

You buy HDFC Standard Life products because it gives.

High Return on investment

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“Customers Attitude towards HDFC Standard Life Insurance�

High return on investment

Valid

Strongly Agree Agree Neither Agree nor Disagree Total

Frequency 57 32

Percent 57.0 32.0

Valid Percent 57.0 32.0

Cumulative Percent 57.0 89.0

11

11.0

11.0

100.0

100

100.0

100.0

High return on investment Neither Agree nor Di 11.0%

Agree 32.0%

Strongly Agree 57.0%

Analysis:

57% of customers have taken HDFC Standard Life Insurance products for high return on investments and strongly agree with that.

You buy HDFC Standard Life products because it gives.

High Security

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“Customers Attitude towards HDFC Standard Life Insurance�

High security

Valid

Highly Agree Agree Neither Agree nor Disagree Total

Frequency 40 51

Percent 40.0 51.0

Valid Percent 40.0 51.0

Cumulative Percent 40.0 91.0

9

9.0

9.0

100.0

100

100.0

100.0

High security Neither Agree nor Di 9.0%

Highly Agree 40.0%

Agree 51.0%

Analysis:

Majority of the customers agree with the security of their investment made in HDFC Standard Life insurance and a substantial part of the customers strongly agree with that.

You buy HDFC Standard Life products because it gives.

Good Service

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“Customers Attitude towards HDFC Standard Life Insurance” Good Service

Valid

Stronly Agree Agree Neither Agree nor Disagree Disagree Total

Frequency 17 52

Percent 17.0 52.0

Valid Percent 17.0 52.0

Cumulative Percent 17.0 69.0

30

30.0

30.0

99.0

1 100

1.0 100.0

1.0 100.0

100.0

Good Service Disagree 1.0% Neither Agree nor Di 30.0% Stronly Agree 17.0%

Agree 52.0%

Out of 100 Respondents  69% of respondents have positive attitude towards service provided by the company.  30% of respondents have not in a position to decide the service provided by the company.  1% respondent have negative attitude towards service provided by the company.

You buy HDFC Standard Life products because it gives Tax benefit

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“Customers Attitude towards HDFC Standard Life Insurance” Tax benefit

Valid

Strongly Agree Agree Neither Agree nor Disagree Total

Frequency 59 36

Percent 59.0 36.0

Valid Percent 59.0 36.0

Cumulative Percent 59.0 95.0

5

5.0

5.0

100.0

100

100.0

100.0

Tax benefit Neither Agree nor Di 5.0% Agree 36.0%

Strongly Agree 59.0%

Analysis Out of 100 Respondents •

59% of respondents are strongly agree.

•

36% of respondents are Agree.

•

5% of respondents are neither agree nor disagree.

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“Customers Attitude towards HDFC Standard Life Insurance”

FINDINGS

Findings

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“Customers Attitude towards HDFC Standard Life Insurance”  35% of policy holders are more concentrated on Unit linked plans, it is due to the reason that the returns on these policies are more compared to the traditional policies.  All the respondents are having insurance policies, which shows that their willingness to cover his/ her life risk cover and give protection to his/her family.  79% of the respondents would like to invest up to 20% of their annual income in life insurance and keep the substantial part of the income for their livelihood.  Many customers expect some extra facilities from the Company.  The major competitors are LIC and ICICI Prudential.  Maximum business comes from financial consultants with aggressive selling.  Most of the respondents are satisfied with attending query, which shows that the company is capable of understanding the customers attitude & provide optimal solution.  The customers of HDFC Standard Life are also having policies in the other companies this indicates that the customers opt for different plans which they prefer in other companies.  51% of the customers strongly agree that investing in HDFC Standard Life is easy. 

79% of the customers would like to recommend HDFC Standard Life to others.



57% of the customers have invested in HDFC Standard Life because of high return on investments.



Most of the customers have positive attitude towards safety and secured on their investment.

 68% of respondents have positive attitude towards service provided by the company and 32% of respondents have not in a position to decide the service provided by the company.

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“Customers Attitude towards HDFC Standard Life Insurance”

SUGGESTIONS

Suggestions  Company has to create sense of security among the customers. Because most of the people fear about security in Private life insurance companies. So Company has to explain and highlight about IRDA, which will give support to the private life insurance.

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“Customers Attitude towards HDFC Standard Life Insurance”

 As the competition is increasing the company should use the new emerging methods for collection of premiums to get the competitive advantage on others.

 Service should focus on enhancing the customer experience and maximizing customer convenience. This calls for effective CRM system, which eventually would create sustainable competitive advantage and build long lasting relationship.  Whenever company launches new products, company should conduct some Events for existing customers, which ensures direct interaction with existing customers.

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“Customers Attitude towards HDFC Standard Life Insurance”

CONCLUSION

Conclusion HDFC Standard Life Insurance Company is well structured company in all respects it has got well-organized distribution system. It has also a proper procedure for running activities systematically. The major competitors are LIC and ICICI Prudential.

Financial consultants are the one who influence the customer’s decision. Maximum business comes from financial consultants with aggressive selling. Family welfare is the main factor, which investors think while investing in any life insurance company.

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“Customers Attitude towards HDFC Standard Life Insurance�

But other factors such as returns, security, and tax benefit are also carrying almost same preference.

BIBLIOGRAPHY

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Bibliography:

Books: Marketing Management: Philip Kotler Marketing Research: Tull and Hawkins Magazines/Journals: Insurance watch IRDA journal Website: www.irda.com

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“Customers Attitude towards HDFC Standard Life Insurance” www.hdfcinsurance.com

ANNEXURE

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“Customers Attitude towards HDFC Standard Life Insurance�

Dear Sir / Madam

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“Customers Attitude towards HDFC Standard Life Insurance�

Customer Profile Name:

____________________________

Age: ______

Address: ____________________________ ____________________________ Sex: Male ( ) Female ( )

Marital status: Married ( ) Unmarried ( )

Education: Graduate ( ) Post graduate ( )Under Graduate ( ) Professional( ) Occupation: Government Employee ( ) Business ( ) Private Employee ( ) Professional ( ) Others ( ) Annual Income: Below1lakh ( ) 3-4 lakhs ( )

1-2 lakhs ( ) 2-3 lakhs ( ) Above 4 lakhs ( )

1. Can you mention the names of Life Insurance companies? ________________________________________ 2

3.

In which company you have invested?

HDFC Standard life ( ) Tata AIG ( ) LIC of India ( ) MetLife ( )

ICICI Prudential ( ) Others_____________

What % of your savings would you like to invest in Life insurance Policy annually?

Nothing ( ) Up to 20% ( ) 21 % -30% ( ) 31%- above ( )

4. Which policy have you taken from HDFC Standard Life?

Pension plan ( ) Children plan ( ) Protection plan ( ) Investment plan ( ) Unit Link ( ) Other_____________ 5. Specify the reason for investing in HDFC Standard Life?

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Service ( ) Tax benefit ( )

Saving ( ) Return on investment ( )

6. How did you come to know about HDFC Standard Life?

Periodicals ( ) Family & Friends ( ) Financial Consultant ( ) Advertisement ( ) Others _____________ 7. Who influences you, while making purchase decision (Company / policy decision)?

Friends & Colleague ( ) Family & Relatives ( ) Financial Consultants ( ) Advertisements ( ) Others _____________ 8. Would you like to recommend HDFC Standard Life to others?

Yes ( ) No ( ) Reason: _________________________________ __________________________________ 9. It is easy to invest in HDFC Standard Life.

Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( ) Strongly disagree ( ) 10. HDFC Standard Life maintains good relation with Customer (after sales service).

Strongly agree ( ) Agree ( ) Neither agree nor disagree ( ) Disagree ( ) Strongly disagree ( )

Attitude towards product 11. You buy HDFC Standard Life products because it gives.

Factors

Strongly agree

Agree

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Neither Disagree agree nor disagree

Strongly disagree

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“Customers Attitude towards HDFC Standard Life Insurance” High Return on investment High Security Good Service Tax benefit

12. Which kind of facility do you expect from HDFC Standard Life? ____________________________________________ ____________________________________________ ____________________________________________

****** THANK YOU *****

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