PROJECT REPORT ON Customer Perception Towards HDFC Standard Life Insurance Company Ltd.

Report Submitted In the Partial Fulfillment For The Masters of Business Administration (2011-2013)

SUBMITTED TO: Ms. Sukhbir Kaur Asst. Professor Mgmt. Dept

SUBMITTED BY:Sheenam Pasricha MBA Roll no.1174494

MIMIT , MALOUT

DECLARATION

I undersigned hereby declare that the project report submitted to my college MIMIT, MALOUT. In partial fulfillment for the degree of Masters of business administration on Customer Perception Towards HDFC Standard Life Insurance is a result of my own work under continuous guidance and kind co-operation of our college faculty members. I have not submitted this report to any other university for the award of degree.

Sheenam Pasricha

ACKNOWLEDGEMENT

A successful completion of an endeavour is very gratifying experience. This is the moment where I feel indebted to people who have supported me at different point in this project. I would like to express my heartfelt gratitude and thankfulness to the almighty god for blessing me with the opportunity and ability to work on this project. I am thankful to J.J.Maini ( HOD of Management Dept.) who provided us the right kind of environment to work on this project. My sincere thanks to Ms. Sukhbir Kaur (Asst. Prof.) for her invaluable guidance in completing this project. I would also like to thank my parents for their constant support and providing me everything I required for study all the time. They are the one who should be credited for my successful completion of project. I hope this project provides readers meaningful information about Customer Perception towards HDFC Standard Life Insurance.

CONTENTS
TABLE OF CONTENTS PAGE NO.

1. INDIAN INSURANCE INDUSTRY 2. COMPANY PROFILE OF THE HDFC SLI BANK 3. CUSOMER PERCEPTION ON LIFE INSURANCE 4. RESEARCH METHODOLOGY 5. DATA ANALYSIS AND INTERPRETATION 6. FINDINGS 7. LIMITATIONS 8. RECOMMENDATIONS 9. CONCLUSION 10. BIBLIOGRAPHY 11. QUESTIONAIRE

(5-15) (18-33) (34-37) (38-40) (41-52) 53 54 55 56 57 (58-59)

Chapter-1 THE INSURANCE INDUSTRY IN INDIA

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INSURANCE Insurance is a contract providing for payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of certain event .Uncertainty of death is inherent in human life. It is this risk, which gives rise to the necessity for some form of protection against the financial loss arising from death. Insurance substitutes this uncertainty by certainty. Definition General definition: In the words of John Magee, Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals. Fundamental definition: In the words of D.S. Hansel, Insurance accumulated contributions of all parties participating in the scheme. Contractual definition: In the words of justice Tindal, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency. The objective of insurance is normally to provide:

a) Family Protection b) Provision for old age. c) Protection against risks Why Insurance?
Insurance cover is essential because it provides the following benefits: A lump sum payment to the nominees at the time of the death of the policy holder. A regular payment to the nominees in the event of the death of the policy holder. Tax

benefits, as premiums paid reduce the liability of tax.


holder.

Relieves economic hardships in the family on the uneventful death of the sole income

Inculcates the habit of savings.

INSURANCE PENETRATION ACROSS THE NATION

From being a purely advisor driven business, the sector has seen the emergence of a number of channels including bank assurance, corporate agents, brokers and direct marketing. These channels, though new, are quickly gaining importance primarily because they present the customer with multiple ways of approaching life insurers. There has been a vast improvement in service attitude and delivery too. As with privatization in any industry, the benefits aren`t restricted to the customer alone, but extend to the society at large, by generating employment opportunities for thousands. Over the past two years, insurance companies; both life and non life insurance have collectively hired at least 6,000 employees to staff their operation across the country, another 90,000- odd have been appointed as life insurance advisors who are engaged in counseling and recommending products to the insurance buyers. The potential for the growth and spread of life insurance is high as in many other Asian countries. This is due to stronger economic growth, rapid aging of population, a weak social security and pension system leaves a majority of workers with no old age income security. A welldeveloped insurance sector promotes economic growth by encouraging risk-taking activity, and also has great potential in mobilizing long-term contractual savings and the rest is crucially needed for infrastructure development.

INSURANCE DENSITY ACROSS THE NATIONS

The global insurance market stands at 1521.2 billion US dollar and India stands 23rd position with 9.93 billion US dollar. Out of the 1 billion populations in India 35 millions are insured. India`s life insurance premium as percentage of GDP is 2.32%. The Indian insurance market is set to touch 25 billion US dollar by 2010. On the assumption of 7% growth in GDP. The role of life insurance is a crucial one for the development of our country. Life insurance companies have to invest 75% of its revenue in the government specified securities like electricity boards, housing schemes, water supply and sewage projects, development of road and transport, industrial development schemes etc.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY(IRDA)

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Reforms in the insurance sector were initiated with the passage of the IRDA bill in parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulation and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular to the life insurance companies was the launch of the IRDA`s online service for issue and renewal of licenses to agents . The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 14 life insurance and 6 general insurance companies have been registered.

MISSION OF INSURANCE SECTOR

To protect the interest of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

DUTIES, POWERS AND FUNCTIONS OF IRDA

1. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. 2. Promoting and regulation professional organizations connected with insurance and re-insurance business. 3. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. 4. Promoting efficiency in the conduct of insurance business 5. Regulation investment of funds by insurance companies 6. Issue the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA are:
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1818: Oriental life insurance company, the first insurance company on Indian soil started functioning. 1870: Bombay Mutual life assurance society, the first Indian life insurance company started its business. 1912: The Indian insurance 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 business. 1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of protecting the interest of the insuring public. 1956: 245 Indian and foreign insurance and provident fund societies take over the central Govt and nationalized. LIC formed by an Act of Parliament, viz, LIC Act, 1956, with a capital contribution of Rs. 5crore from the Govt of India.

PLAYERS IN INDIAN INSURANCE INDUSTRY

1. Life insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurance Corporation of India (LIC)

2. General insurers: General Insurance Corporation of India (GIC ) with effect from Dec'2000, a National

Reinsure GIC had four subsidiary companies, namely with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited. Yr: 2000-2007: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:

PRIVATE LIFE INSURANCE PLAYERS IN INDIA

REG NO. 101 104 105 107 109 110 111 114 116 117 122 127 128

DATE REG. 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 14.05.2002 06.02.2004 17.11.2005

OF NAME OF THE COMPANY HDFC Standard life insurance company ltd. Max New York Life insurance company ltd. ICICI Prudential life insurance company lt6d. Om Kotak Mahindra life insurance company ltd. Birla Sun life insurance company ltd. Tata AIG life insurance company ltd. SBI life insurance company ltd. ING Vysya life insurance company private ltd. Alianz Bajaj life insurance company ltd. MetLife India insurance company pvt ltd. Aviva life insurance Co. India pvt ltd. Sahara India insurance company ltd Shriram life insurance company ltd.

The table below gives a general guide to the plans that are appropriate for different life stages.

g Life Stage e

Prim Primary Need Life

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Insurance

Product

Life

ary Need
Young & Single Young & Just married Married with kids Middle aged grown up kids Asset creation Asset creation protection

Insurance Product
Wealth creation plans & Wealth creation and mortgage protection plans

Children's education, Education insurance, mortgage protection & Asset creation and wealth creation plans protection with Planning for retirement & Retirement solutions & mortgage protection asset protection Health plans Health Insurance

Across all life-stages

NEED FOR LIFE INSURANCE

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail.

Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to
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take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Life

insurance is the only investment option that offers specific products tailor made for

different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are me

CHARACTERISTICS OF LIFE INSURANCE Sharing of risks Cooperative device Evaluation of risk Payment on happening of a special event The amount of payment depends on the nature of losses incurred. The success of insurance business depends on the large number of people insured against similar
risk.

Insurance is a plan, which spreads the risk and losses of few people among a large number of
people.13

The insurance is a plan in which the insured transfers his risk on the insurer. Insurance is a legal contract which is based upon certain principles of insurance which includes
utmost good faith, insurable interest, contribution, indemnity, causes proximal , subrogation, etc.

The scope of insurance is much wider and extensive.

FUNCTIONS OF INSURANCE Primary functions

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1.Provide protection: - Insurance cannot check the happening of the risk, but can provide for the losses of risk. 2.Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others. 3.Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. 4.Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty.

Secondary functions
1.Prevention of losses : - Insurance cautions businessman and individuals to adoptsuitable device to prevent unfortunate consequences of risk by observing safety instructions.

2.Small capital to cover large risks: - Insurance relives the businessman from security investment, by
paying small amount of insurance against larger risks and uncertainty. 3.Contributes towards development of larger industries.

Other Functions
Means of savings and investment :Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends.
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ADVANTAGES OF LIFE INSURANCE

1. It is superior to an ordinary saving plan : - Unlike other saving plans, if affords full protection against risk of death. In case of death, the full sum assured is made available under a life assurance policy; whereas under saving scheme the total accumulated saving alone will be available. The later will be considerable less than the sum assured, if death occurs during early years. 2. Easy settlement & protection against creditors: - The life assured can name person(s) called Nominee to whom the policy money would be payable in the event of his death. The proceeds of a life policy can be protected against the claim of the creditors of the life assured by effecting a valid assignment of the policy. 3. Ready marketability & suitability for quick borrowing: - After an initial period, if the policyholder finds him unable to continue payment of premiums, he can surrender the policy for a cash sum. Alternatively, he can tide over a temporary difficulty by taking loan on the sole security of the policy without delay. Further, a life insurance policy is sometimes acceptable as security for a commercial loan. 4. Tax Relief: - The Indian Income-Tax allows deduction of certain portion of the taxable income, which is diverted to payment of life insurance premiums from the total income tax liability. When this tax relief is taken into account, it will be found that the assured is in effect paying a lower premium for his insurance.

Company Profile
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HDFC Standard Life Insurance Ltd.

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Chapter-2 COMPANY PROFILE HDFCS Standard Life Insurance Company Ltd. is one of Indias leading Private 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.), and Indias leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on March 31, 2007 holds 81.9 Per cent of equity in the joint venture OUR KEY STRENGTHS Financial Expertise
As a joint venture of leading financial Services groups, HDFC Standard Life has the financial expertise required to manager 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 Gross Premium income, for the year ending March 31, 2008 stood at Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2008.

HDFC PROFILE
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HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs, HDFC was promoted with promoted with an initial share capital of Rs. Million.

BUSINESS OBJECTIVES
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

ORGANIZATIONAL GOALS HDFCs main goals are to

1. Develop close relationships with individual households, 2. Maintain its position as the premier housing finance institution in the country. 3. Transform ideas into viable and creative solutions, 4. Provide consistently high returns to shareholders, 5. We to grow through diversification by leveraging off the existing client base

STANDARD LIFE HISTORY

The Standard Life Assurance Company (Standard Life) was established in 1825 and the first Standard Life Assurance Company Act was passed by parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925. The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK Life assurance and pensions operating model to capitalize on the opportunities presented by EC Directive 92/96/EEC (the Third Life Directive) and offer a product range in that market with features which local provides were unable to offer.

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In the 1990s, the group also sought to diversify its operations into areas, which complemented its core life assurance and pensions business, which the intention of positioning itself as a broad range financial services provider.

Standard Life Asia Limited / joint ventures:Economic Development Area General Company (TEDA) became operational in 2003. The groups Hong Kong subsidiary, Standard Life Asia Limited (SL Asia), was incorporated in 1999 as a joint venture and became a wholly owned subsidiary of Standard Life in 2002, The groups operations in Hong Kong were established to give the group a presence in the far East from which it could expand into China. The groups joint ventures in India which Housing Development Finance Corporation Limited(HDFC) Were Incorporated in 2000(in relation to the life assurance and pensions joint venture) and 2003 (in relation to the investment management joint venture). The groups joint venture in China with Tianjin

OUR VISION AND VALUES

HDFC Standard Life Insurance Company Ltd. is one of India's leading private 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 Standard Life plc, a Group Company of the Standard Life, UK. HDFC, as on December 31, 2008, holds 72.26 per cent of the paid up equity in the joint venture.

OUR VISION
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'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. In short, 'The most obvious choice for all'.

OUR VALUES
Values that define how we work: Integrity ,Innovation ,Customer centric, People Care ,Team work, Joy and Simplicity Besides the above (which provides an insight into the Corporate Structure of the Company), the Committees appointed by the Board focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board on matters within their areas of purview. All decisions and recommendations of the Committees are placed before the Board for information or for approoval

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VALUES that we observe while we work: Integrity Innovation Customer Centric People Care One For All And All For Ones Teamwork Joy And Simplicity

GROUP COMPANIES Housing Development Finance Corporation HDFC Bank HDFC Mutual Funds HDFC Securities HDFC Chubb General insurance company Limited

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Board of Directors
MR Deepak S Parekh Chairman MR Deepak M Satwalekar MD&CEO MR Keki M Mistry MR Ravi Narain MR G.N. Bajpai MR Alexander M Crombie MR Gautam R Divan MR Ranjan Pant MRS Marcia Dominic Campbell MR Keith Norman Skeoch

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. Reach 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 Moodys and Standard and Poors. 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. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd . is one of India's leading private 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
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finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

PROFILE OF THE PRODUCTS

Life insurance is a contract between a person and an insurance company by which that person pays in a certain agreed-upon amount regularly (usually monthly) so that upon that persons death, his or her family or other beneficiary will receive a large lump sum payment and thereafter replaces the loss of income or pension benefit caused by the death of the policy-holder.

Benefits :1. Protection to the family: Helps maintain lifestyle even in the absence of its earning member. 2. Savings: Life Insurance facilitates financial planning. 3. Security: Takes care of loans and debts in the event of the death of the earning member. 4. Establish an emergency fund for the family to meet unexpected expenses. 5. Retirement Benefits. 6. Also Tax savings. Different life insurance polities may very by frequency and amount of payments (some policies have a fixed payment amount that never changes; others will increase on a regular basis), term of coverage, and the amount and method of final payment to the beneficiary. The following are the products offered by HDFC standard life.

Savings plans Protection plans Retirement plans Child plans Investment plans

HDFC Unit Linked Young Star

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The HDFC Unit Linked Young Star gives you: 1. Access to your accumulated fund before maturity 2. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments 3. Valuable protection to your child in case you are not around 4. Flexible benefit combinations and payment options Valuable protection to your child in case you are not around Your can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation 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

Pay the Sum Assured you had chosen to your child Continue your policy AND continue to pay the original regular premiums you had chosen.

Benefits Life :- Speaks about death immediately, sum assured is paid & all remaining premium are paid by
insurance company and at the time of maturity fund value is given.

Life & health :-Speaks about death immediately & Critical illness which ever is earlier, sum assured
is paid & all remaining premium are paid by insurance company and at the time of maturity fund value is given. Critical illness include stork, heart, organ transplant, cancer, kidney failure, and coronary artery bypass surgery.

Note 1: the beneficiary (child) is the sole person to receive the benefit under the policy. Where the
beneficiary is less than 18 years of age, the benefit will be paid to the Appointee.

Note 2: there is no nomination facility PREMIUM ALLOCATION CHARGES

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:KS .99 .99 .99 19.99

First Year 60% 40% 30% 20% 10%

Second year onwards 1% 1% 1% 1% 1%

HDFC Unit Linked Young Star Plus The HDFC Unit Linked Young Star plus gives you:
1. Access to your accumulated fund before maturity 2. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments 3. Valuable protection to your child in case you are not around 4. Flexible benefit combinations and payment options Valuable protection to your child in case you are not around 5. You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charge sin 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

Pay the Sum Assured you had chosen to your child Continue your policy and continue to pay the original regular premiums you had chosen.

Benefits
Life:- Speaks about death immediately, sum assured is paid & all remaining premium are paid by insurance company and at the time of maturity fund value is given.

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Life & health:- Speaks about death immediately & Critical illness which ever is earlier, sum
assured is paid & all remaining premium are paid by insurance company and at the time of maturity fund value is given. Critical illness includes stork, heart, organ transplant, cancer, kidney failure, and coronary artery bypass surgery. Note 1: The beneficiary (child) is the sole person to receive the benefit under the policy. Where the beneficiary is less than 18 years of age, the benefit will be paid to the appointee.

Note 2: there is no nomination facility PREMIUM ALLOCATION CHARGES First Year Second year onwards 30% 1% 20% 1% 150% 1% 10% 1% 5% 1% Additional Benefit: it given 0.1% of loyalty bonus every year. KS .99 .99 .99 19.99

UNIT LINKED ENDOWMENT

The HDFC unit Linked Endowment Plan gives you:1. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. 2. Valuable protection to your family in case you are not around 3. Flexible benefit combinations and payment options
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4. Flexible additional benefit options such as critical illness cover 5. Access to your accumulated fund before maturity You cans choose your premium and the investment fund of funds. We will then invest your premium, net of premium allocation 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:

We will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

Benefits
Life Life & health Extra Life option Extra Life & Health Option

Beneficiaries:
You will receive the benefits due on maturity due on maturity at the end of the policy term. In the event of your unfortunate demise, your nominee will receive the benefits due. Nomination facilities are available.

Charges:
Policy administration charges: Rs. 20 per month. Fund manager charges; 0.8% per annum charge on daily basis. Mortality charges: depends on age, features (on monthly basis). Surrender charges are 3% of 2years of o/s premium.

Additional Benefit: It gives 0.1%of 2yours of o/s premium.

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HDFC UNIT LINKED PENSION The HDFC unit Linked Pension gives you:
1. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. 2. A post retirement income for life. 3. Flexibility to plan your retirement date 4. Freedom to invest premiums as per your preference You cans choose your premium and the investment fund of funds. We will then invest your premium, net of premium allocation 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, 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 the retirement years

Benefits On retirements
You will get the value of the units in your policy. Your can take up to 1/3 of your fund value as a tax-free cash lump sum and the rest must be converted in to annuity You can buy the annuity from us or any other insurer. On death: Unfortunate death your nominee will receive the unit fund value. Policy terminates there after.

Charges:
Policy administration charges: Rs. 20 per month. Fund manager charges; 0.8% per annum charge on daily basis.
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Revival charge: A charge of Rs. 250 is charged for revival to cover for administrative expenses Miscellaneous charges: This is a charge levied for any alterations with in the contract like premium redirection for any alterations with in the contract like premium reduction or ad-hoc policy servicing. 12 premium reduction requests will be free in a policy year and any additional 12 premium reductions will be charged Rs. 250 per request.

HDFC UNIT LINKED PENSION PLUS The HDFC unit Linked Pension plus you:
1. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. 2. A post retirement income for life. 3. Flexibility to plan your retirement date 4. Freedom to invest premiums as per your preference You cans choose your premium and the investment fund of funds. We will then invest your premium, net of premium allocation 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, 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 the retirement years. Benefits On retirements :- You will get the value of the units in your policy.
Your can take up to 1/3 of your fund value as a tax-free cash lump sum and the rest must be converted in to annuity
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You can buy the annuity from us or any other insurer. On death: - Unfortunate death your nominee will receive the unit fund value. Policy terminates there after. CHARGES: Policy administration charges :- Rs. 20 per month. Fund manager charges :- 0.8% per annum charge on daily basis. Revival charge:- A charge of Rs. 250 is charged for revival to cover for administrative expenses Miscellaneous charges: This is a charge levied for any alterations with in the contract like premium redirection for any alterations with in the contract like premium reduction or ad-hoc policy servicing. 12 premium reduction requests will be free in a policy year and any additional 12 premium reductions will be charged Rs. 250 per request. ADDITIONAL BENEFIT: At the end of every policy year we will increase the number of units in each of your funds by 0.10% as long as your policy is in force or paid-up. The compounding effect of this regular addition is expected to boost your final vesting benefits. AREA OF OPERATION:The area of operation was national since origin, but in the year 2000 the company has a joint venture with standard life UK and entered Global market. So the area of operation of the company is global since 2000. OWNERSHIP PATTERN:- HDFC STANDARD LIFE INSURANCE is having a joint venture with Standard life UK. It was registered on 23.10.2000 & while registration it took the joint venture with standard life.

COMPETITORS

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AWARDS AND ACCOLADES:

Company of the Year for the seventh successive year (Money Marketing Awards)
Best Pension Provider (2004 and 2005 Money Marketing Awards) Best Pension Product (2003 2005 Money facts Investment, Life & Pension Awards) Group Pensions Provider of the Year (Financial Adviser Life and Pension Award 2004).

GROWTH & PROSPECTS: 29

The company is performing well at present. It has increased sales by 65% to euro 70m (2006:euro42m) of which standard life share was euro 12m (2006:euro11m). There was an increase of 57.9% growth during the year (2007-2008). It also has the present share of 2.15%. As the HDFC is in various domains of finance like Banking, Life insurance, Personal loan, Home loan, Mutual Funds, Securities, and General insurance.

SWOT ANALYSIS STRENGTHS : Advanced Technology : Technology plays a vital role in todays banking and insurance sector to be very fast and accurate and in the process meet its day-to-day operations at a lighting pace and tremendous accuracy. HDFC STANDARD LIFE is using advanced technology to satisfy the customers in a large way. Commanding market share :-

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HDFC enjoys a commanding market share of around 15% in the private insurance sector where other insurance companies are fighting a battle to get their market share into double figures. Providing innovative products and services :To attract new customers and retain old customers HDFC has range of products tailor made for everyones requirements ranging from investment plans to child plans to retirement solutions. An array of products that cannot be found in the shelf of any other life insurance company. High quality infrastructure :HDFC perhaps has got the best infrastructure support both for its employees and the advisors. They made huge investments in IT to make the company techno savvy and competitive. Premium rates are increasing and so are commissions. The variety of products is increasing. Prospects expect more services from their brokers. Huge pool of skilled professionals

WEAKNESSES: Absent in the rural market :HDFC has not catered into the rural market where there are tremendous opportunities for the companys products provided they develop some innovative products for the rural markets.

Lack of Band image in rural areas :The company is well known in urban areas due the promotions undertaken in the city but HDFC does not have the brand recognition of an LIC in the rural area. So HDFC has to undertake
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promotional activities to generate interest among the rural folks if it intends to have substantial market share.

Too many subsidiaries :HDFC group has many subsidiary products like General insurance. Mutual funds, Securities, Retail banking etc.

Premium is high :a) The company fixed the minimum premium that difficult to pay for low-income class people. b) Insurance companies are often slow to respond to changing needs. c) There is an increasing trend of financial weakness among the companies. d) There are more competitors for agencies to compete with banks and Internet players.

OPPORTUNITIES Every growing population :As the population of our country is increasing the steadily the demand for the insurance and other financial products are increasing simultaneously as there are more people with a variety of needs.

Expand more branches :As the awareness increase in people about insurance. There is need to expand more branches.

More growth for few products :32

a) Increase in population in particular area. There is large growth in Retirement solution and Health products. b) The ability to cross sell financial services is barely being tapped. c) Technology is improving to the point that paperless transactions are available.

THREATS Cut throat competition :HDFC is given a tough run for its money due to the competition from other private insurance companies like ICICIPRU, Bajaj Allianz and Birla Sun Life insurance companies. Nonexistent in the rural market . Arrival of more insurance companies in India. The increasing cost and need for insurance might hit a point where a backlash will occur. Government regulations on issues like health care, mold and terrorism can quickly change the direction of insurance. Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies.

Chapter-3 COSTUMER PERCEPTION ON LIFE INSURANCE INTRODUCTION

Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world. Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience of the world and typically involves further processing of sensory input. In practice, sensation and perception are virtually impossible to separate, because they are part of one continuous process.
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Thus, perception in humans describes the process whereby sensory stimulation is translated into organized experience. That experience, or percept, is the joint product of the stimulation and of the process itself. Relations found between various types of stimulation (e.g., light waves and sound waves) and their associated percepts suggest inferences that can be made about the properties of the perceptual process; theories of perceiving then can be developed on the basis of these inferences. Because the perceptual process is not itself public or directly observable (except to the perceiver himself, whose percepts are given directly in experience), the validity of perceptual theories can be checked only indirectly. Historically, systematic thought about perceiving was the province of philosophy . Philosophical interest in perception stems largely from questions about the sources and validity of what is called human knowledge (epistemology). Epistemologists ask whether a real, physical world exists independently of human experience and, if so, how its properties can be learned and how the truth or accuracy of that experience can be determined. They also ask whether there are innate ideas or whether all experience originates through contact with the physical world, mediated by the sense organs. As a scientific enterprise, however, the investigation of perception has especially developed as part of the larger discipline of psychology. For the most part, psychology bypasses the questions about perceiving raised by philosophy in favors of problems that can be handled by its special methods. The remnants of such philosophical questions, however, do remain; researchers are still concerned, for example, with the relative contributions of innate and learned factors to the perceptual process. Such fundamental philosophical assertions as the existence of a physical world, however, are taken for granted among most scientific students of perceiving. Typically, researchers in perception simply accept the apparent physical world particularly as it is described in those branches of physics concerned with electromagnetic energy, optics, and mechanics. The problems they consider relate to the process whereby percepts are formed from the interaction of physical energy (for example, light) with the perceiving organism. Of further interest is the degree of correspondence between percepts and the physical objects to which they ordinarily relate. In philosophy, psychology, and cognitive science, perception is the process of attaining awareness or understanding of sensory information. The word "perception" comes from the Latin words perceptio, percipio, and means "receiving, collecting, action of taking possession, apprehension with the mind or senses.

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Perception is one of the oldest fields in psychology. The oldest quantitative law in psychology is the Weber-Fetcher law, which quantifies the relationship between the intensity of physical stimuli and their perceptual effects. The study of perception gave rise to the Gestalt school of psychology, with its emphasis on holistic approach.

Types of Perception
Two types of consciousness are considerable regarding perception: Phenomenal (any occurrence that is observable and physical) and Psychological.

The difference every sighted person can demonstrate to him- or herself is by the simple opening and closing of his or her eyes: phenomenal consciousness is thought, on average, to be predominately absent without senses such as sight. Through the full or rich sensations present in senses such as sight, nothing by comparison is present while the senses are not engaged, such as when the eyes are closed. Using this precept, it is understood that, in the vast majority of cases, logical solutions are reached through simple human sensation. The analogy of Plato's Cave was coined to express these ideas. Passive perception can be surmised as the following sequence of events:--

Surrounding Input (senses) processing (brain) Output (re-action).

Although still supported by mainstream philosophers, psychologists and neurologists, this theory is nowadays losing momentum. The theory of active perception has emerged from extensive research of sensory illusions, most notably the works of Richard L. Gregory. This theory, which is increasingly gaining experimental support, can be surmised as dynamic relationship between "description" (in the brain) senses surrounding, all of which holds true to the linear concept of experience. Preconceptions can influence how the world is perceived. For example, one classic psychological experiment showed slower reaction times and less accurate answers when a deck of playing cards reversed the color of the suit symbol for some cards (e.g. red spades and black hearts). There is also evidence that the brain in some ways operates on a slight "delay", to allow nerve impulses from distant parts of the body to be integrated into simultaneous signals.
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Theories of Perception
Two major classes:

Bottom-up: perception builds up hierarchically from a set of primitive "features" to our

internal representations. Top-down: perception starts with a set of primitives, but our perceptual experience is

influenced by higher-level processes, such as knowledge and context. Bottom-up theories All bottom-up theories rely on the notion that perception builds upwards from a foundation of primitives to a representation our cognitive system can use. This takes place without any influence from higher cognitive processes. Five main theories are as follows: Direct perception

Precursor to behaviorism Perception is a direct result of stimulus energy affecting receptor cells. No higher cognitive processes or internal representations are necessary

Template/Exemplar theory

We store examples of all the objects we have seen as exemplars or templates. We compare a perceived object to this set of exemplars until we find a match.

Proto type theory

Instead of storing many exemplars or rigid templates, we store a prototype, which is kind of like the average of an object. We compare a perceived object to these prototypes until we find the closest match. Feature theory

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Perception starts with the identification of basic features that are put together into more complex objects, which are put together into more complex objects, etc. until we identify an object. Example: Pandemonium Structural description theory

Kind of like a three-dimensional version of feature theory, where rather than having lines and corners as the basic features, simple geometric shapes, called geons, are the basic features. We recognize objects by matching the geons we are looking at to the stored geons in memory.

Chapter-4 Research Methodology OBJECTIVE OF THE STUDY

The main purpose of the project is to check the customer perception towards HDFC Standard Life Insurance. To study about Consumers views about the HDFC Standard life Insurance.
To study about the customer preferences towards different insurance policies offered by

HDFC.
To study about the satisfaction level of customer towards HDFC Standard Life Insurance. 37

 To Study the reason for the investment in HDFC Standard Life Insurance. To study about services availed by HDFC Standard Life Insurance.

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Research Methodology Sources of Data

i. Primary Data ii. Secondary Data I use primary source of data that is structured questionnaire. As the bank is established from so many years, so many researchers have done research on this topic, so we will find secondary data also and also use this data for the help of this research. So, this research data will collected from the primary source and secondary source. Our method of collecting the data is from the questionnaire that will be filled by the respondent from the sample, it will be structured questionnaire.

Design of Research
The research will be exploratory in nature. A population of peoples who take Insurance from HDFCSLI will be considered for this study. I will try to explore about the Insurance policy which would help in analyzing the perception of the customer. Effort will be made to throw light on most of the factors which have either indirect or direct effect on the behavior of the customer. I will also explore the impact of home loans on the market share of the banks.

Sampling Plan Population

The study aimed to include the customers of HDFC in Malout and Bathinda for the purpose of customer perception towards HDFC SL.

Sample Size
A Sample size of 70 respondents is taken for the current study because it is not possible to cover the whole universe in the available time period. So it is necessary to take the sample size.

Sampling technique
The sampling technique is probabilistic sampling more specifically the random convenient and judgemental sampling is used. As in probabilistic sampling the select unit for observation with known probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample

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Tools and Techniques

As no study could be successfully completed without proper tools & techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used for project are: 1. PIE CHARTS 2. TABLES Pie charts are very useful tools for every research to show the result in a clear, simple way. Because I used pie charts in my project for showing data in a systematic way. So I need not necessary for any observer to read all the theoretical detail, simple on seeing the charts anybody that what is being said.

Technological Tools:
1. MS WORD 2. MS-EXCEL

CHAPTER- 5 DATA ANALYSIS AND INTERPRETATIONS

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1.PROJECT FINDINGS & ANALYSIS I have presented below the project findings and analysis, addressed to the respondents to gauge the perception and consumer behavior of the people toward HDFC life insurance. Market share of the key players in the life insurance sector in India.

S AL ES
5% 4% 3% 7% 1% 2%1% 22% ICICI Pru Bajaj Allianz SBI Life HDFC Standard Birla Sunlife Reliance Life Max New York 8% Tata Aig 14% Aviva Kotak Mahindra 8% 7% 10% 8% Met Life ING Vysya ShriramLife Others

INTERPRETATION In life insurance sector ICICI Pru is the leading life insurance company in private sector, followed by Bajaj Allianz, SBI life, HDFC standard( 7%), Birla Sun life and others.

2.Occupation of Respondent
Table2
Occupation Service Business 41 Others

No. Of Persons(%)

52%

38%

10%

INTERPRETATION It was founded that customer who have taken the policy. service 52% ,business 38% and Others 10%

3.Annual Income of the customer Table3

Income No. Of Below 1lac 10% 1lac-2lac 34% 42 Above 2lac 56%

Persons(%)

INTREPRETATION
It was found that 10% respondents had below 1 lac income, 34% had income 1lac-2 lac ,and (56%) majority of the respondents had income above 2lac because they have more funds to invest in insurance policies.

4.Reasons For Investment The question was asked to know that what is the reason for the investing in insurance Plans in HDFC SLI . Table4
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Reason

Future Investment Good

Schemes Future Security

Tax Deduction

No. Persons(%)

Of

15%

12%

58%

15%

70% 60% 50% Percentage 40% 30% 20% 10% 0% Future Investment Schemes good Future security Tax deduction Investment Reason 15% 12% 15% 58%

INTERPRETATION The majority of customer invest it as future security because they find more security in HDFCSLI bank.

5.Experience after investing in Insurance plans of HDFC SLIC. The question was asked to know that what is the Experience after Investing in HDFCSL bank . Table 5
Bank NO. Of Persons(%) Good 31% Averagely Satisfied 63% Cheated 6%

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INTERPRETATION It was found that 63% are averagely satisfied with their investment because of better returns.

6. Preference for HDFC bank The question was asked to know that what is the reason for preferring HDFC bank by the customers .

Table6
Preference for HDFC No. Of 56% 18% 45 22% 45 Better Service Better Returns Agent Known Attractive Plans

Persons(%)

INTERPRETATION This Graph shows that 56% respondents preferred HDFC Bank because of better Services, 18% because of Better Returns, 22% because of Agent Known ,4% because of Attractive plans.As hdfc provides Better facilities to the customer.

7.Satisfied with the policy

The question was asked to know that what percentage of customers is satisfied with the policies. Table7
Satisfied No. Of Persons(%) Yes 71% NO 29%

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INTERPRETATION
It was founded that majority of customer are satisfied with their current policy.

8.Premium Amount The question was asked to know about how is the premium amount to be paid by the respondents.
Table 8
Premium No. persons(%) 47 Of Satisfactory 6% Average 90% Dissatisfactory 4%

INTERPRETATION It was found that 90% respondents are averagely satisfied with the premium amount.

9. Returns in Insurance Policies The question was asked to know about the returns in Insurance policies. Table 9

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Returns No. Of persons(%)

Very good 8%

Good 30%

Average 34%

Poor 12%

INTERPRETATION
It was found that majority of the respondents says that returns are averagely satisfied.

10.Value of Insurance

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The question was asked to know about respondents.

the value of the Insurance policy of the

Table10
Value No. persons(%) Of <10000 6% 10000-25000 20% 25000-50000 46% 50000-100000 12% >100000 16%

INTERPRETATION It was found that majority of the customer have their insurance value in between 25000-50000.

11.Which sector customer chose public or private? Table11

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Sector No. persons(%) Of

Public 36%

Private 64%

34% Public Private 66%

INTERPRETATION:
After the survey it was found that still major portion of customers go for public insurance companies, but with the entry of more and more private companies the scenario is changing rapidly, people need of more and better returns are opting for private companies, and this can be justified by the increasing market share of private companies in the Indian insurance sector. There are various ways in which private companies are found much more lucrative than public companies and the fact which support this statement are as follows: 1.Versatility of products 2.Efficient fund managers 3.Better customer services
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4.More returns 5.Regular follow up 6.Quicker settlement

12.Charges in Insurance Policies of HDFC Standard Life Insurance. The Question is asked to the respondents about the charges for the policy. Table12
Charges No. persons(%) Of High 24% Average 61% Low 15%

INTERPRETATION
61% respondents says that charges are low in HDFC SLI Policy.
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FINDINGS
Majority of the customers prefer HDFC bank because of better services and extra facilities offered as 56% respondents are satisfied with their investment because of better facilities by HDFC Bank.

Major part of respondents said that the charges for policy are average but some of the respondents find it high.

Majority of the respondents are found the bank is average in maintaining the good customer relationship.

The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.

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LIMITATIONS OF THE STUDY

My study is totally based on the perception of the people that what they think about the

insurance policy. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. A small number of 70 also does not show the pattern of the whole city. Time Period was also less for the proper analysis of the study. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. This research study was taken in a limited area only (i.e. Malout and Bathinda city) and findings may vary if the area of study is increased or changed. Sometimes wrong information was provided by respondents which needed to be cross checked & verified.

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SUGGESTIONS & RECOMMENDATIONS.

Company should come up with more branches in near by villages with the objective and goals to meet the demands & expectations of the public in order to provide people with better customer satisfaction. Since HDFC Standard Life Insurance Company Ltd is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they increase the number of branches and diversify their business to various other regions. HDFC Standard Life Insurance should have more children plans, and more help line plans. They should provide more information to the customer so that they become more aware about insurance

CONCLUSION
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HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity. HDFC have total 12 group companies. It is the first insurance company who has gotten the license of insurance in firstly. HDFC SL entered the scene in 2000.It is a joint venture between the housing finance major HDFC and the UK insurance giant Standard Life. Bajaj have a market share of around 8% and HDFC SL and ICICI fighting at 3rd place with around 7.5%. HDFC is currently focusing on the Pension Plan and the Child Plan aiming to cash in on the potential of these segments. HDFCSLIC Bank's performance is rated as satisfactory. HDFC Bank is preferred the most because of higher returns and better plans and services.66% of respondents agree that private sector banks are better than public sector banks.

BIBLIOGRAPHY
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WEBSITES REFFERED: WWW.HDFCINURANCE.COM Customer Perception Towards Hdfc Standard Life,retrieved from www.scribd.com/.../Customer-Perception-Towards-Hdfc-Standard-Li...

BOOKS

REFFERED
E. Gordon & K. Natarajan,

Financial Markets & Services, ,

Himalaya Publishers
Dr. Singh, Avtar, Principles of Insurance Law, S. Chand & Sons, Delhi,2003

V.A Avdhani, Marketing Of Financial Services,Himalaya Publishers

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QUESTIONNAIRE
This is a questionnaire to understand the Consumers Perception about HDFC Standard Life Insurance Policy. 1. Name: - ________________________ 2. Age:- _________________________ 3. Address:- ________________________ 4. Mob.:- ____________________________ Q1. Your Occupation? o Service o Business o Retired o Student Q2. Your Income ? o Below 1 lac o 100000-200000 o Above 200000 Q3. Reasons for investing in Insurance Plans of HDFC Standard Life Insurance ? o Future Investment o Schemes are good o More security o Needs to save tax Q4. What do you feel after investing in Insurance Plans of HDFC Standard Life Insurance? o Good o Averagely Satisfied with the investment decision o Cheated Q5. Do you invest in Insurance Plans of HDFC Standard Life because of Tax Benefits? o Yes o No Q6 Why do you prefer HDFC Bank? o Better Services o Better returns o Agent Known o Attractive Plans o Others Q7. Are you satisfied with your current Life Insurance Company? o Yes o No Q8. How is the Premium Amount to be paid in Insurance Plans of HDFC Standard Life Insurance Company ? o Satisfactory o Average o Dissatisfactory

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Q9. What is the value of your life insurance? o <10,000 o 10,000-25,000 o 25,000-50,000 o 50,000-1,00,000 o >1,00,000 Q10. How are the Returns in Insurance Policies of HDFC Standard Life Insurance? o Excellent o Very Good o Good o Average o Poor Q11. How are the Charges in Insurance Policies of HDFC Standard Life Insurance? o High o Average o Low Q12. What would you like more in Insurance Policies of HDFC Standard Life Insurance? o More benefits o More security o Others, Please specify Q13.Which sector customer chose public or private? o Public o Private Q14.Any suggestions for improving the service offered by life insurance companies ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

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