deepika gupta
TRANSCRIPT
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A
Summer Internship Report
On
“A Market research on public perception to supplement
their income by doing a financial activity and a
comparative analysis”
At
Submitted In Partial Fulfillment For the Degree of
Post Graduation In MBEF
BUNDELKHAND UNIVERSITY, JHANSI
Submitted to:
Dr. Shamim Ansari
Submitted by:
Deepika Gupta
MBEF- Economics & Finance
Department
Bundelkhand University
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DECLARATION
I hereby declare that this project entitled “A MARKET RESEARCH ON PUBLIC
PERCEPTION TO SUPPLEMENT THEIR INCOME BY DOING A FINANCIAL
ACTIVITY AND COMPARATIVE ANALYSIS” submitted to Bundelkhand
University,JHANSI in partial fulfillment of the requirements for the award of degree of Master Of Business Economics & Finance is a bonafide record of
work done by myself under the guidance of Dr.C.V Singh during the course
period of 2010-2012.
Place: - DEEPIKA GUPTA
Date: - MBEF ( Eco. & Finance
Department)
Bundelkhand University,
JHANSI
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ACKNOWLEDGEMENT
The Summer Training at HDFC Life, JHANSI is my professional experience
with the insurance sector which enriched my knowledge about the
fundamental concepts of the sector. The numbers of people who have
influenced, supported and guided me through this project are numerous to
mention, but some merit special attention.
I would like to take this opportunity to express my gratitude towards
Mr.Vivek Dwedi, Circle Head, HDFC Life, JHANSI for giving me anopportunity to work as a summer trainee. I also express my sincere thanks
to Mr.Sanjeev Singh , Sales development manager, my project guide,
for their individual help and guidance without which this project wouldn’t
have been successful.
I would like to dedicate the project to my parents, brother and my
friends without their help and constant support this project would have not
been possible. I would also like to thank all the respondents of the survey
for their cooperation in providing me with the required information.
At last I would like to express my deepest sense of gratitude for the
people who have guided me and constantly been. Without their
involvement, this project would not have been accomplished. With me
throughout my training tenure
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
5
2. STATEMENT OF PURPOSE
6
3. OBJECTIVES
6
4. RESEARCH METHODOLOGY
7-9
5. RESEARCH PROBLEMS
10
6. INSURANCE INDUSTRY “A N OVERVIEW” 11-
202 7.COMPARISON OF UNIT LINKED INSURANCE
23-24
PLANS AND MUTUAL FUNDS
8. COMPETITIVE ANALYSIS
25-28
9. COMPANY PROFILE OF HDFC LIFE
29-39
10. COMPANY PROFILE OF LIC
40-47
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11. ANALYSIS AND INTERPRETATIONS
48-60
12. SUMMARY OF FINDINGS
61
13. CONCLUSION
61
14. SUGGESTIONS AND RECOMMENDATIONS
62
15. BIBLIOGRAPHY
63
14. ANNEXURES
64-65
EXECUTIVE SUMMARY
HDFC Life insurance is the oldest life insurance company in the world. Thecompany is marketing life insurance product and unit linked investment
plans. From my research at HDFC Life, I found that the company faces lot of
competition from other private insurance companies like ICICI, Aviva, Birla
Sun Life and Tata AIG. It also faces tough competition from LIC. To compete
effectively HDFC Life could launch cheaper and more reasonable products
with small premiums and short policy terms. The ideal premium would be
between Rs 5000-Rs 25000 and the ideal policy term would be 10-20 years.
The project is divided into the following parts:
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Profile of the competitors- Competitive analysis
Competitive analysis of HDFC Life with ICICI Prudential
Market study on customer perception towards insurance sector andarising job opportunities in the area.
HDFC Life must advertise regularly and create brand value of its product
and services. The market survey deals with the customer perception
towards the insurance sector, their willingness to supplement the income
by doing any extra activity, the motivation behind their work at place.
The report contains company profile of HDFC Life and the basic concepts of
insurance which includes scope, need and types of insurance. The report
also illustrates the comparison between insurance and mutual funds.
STATEMENT OF PURPOSE
Increase awareness about insurance
Make people aware about financial activity
Mode to supplement income
Factors leading to motivation
Level of competition in market
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OBJECTIVES OF THE STUDY
To analyze the product details of HDFC Life Insurance companylimited and ICICI Prudential.
To find out whether customer will supplement their income by doingany extra activity.
To find out whether customer would supplement their income byproviding financial advice/service.
Factors that motivates employees behind their work at place
To find out the time that a prospect can spare to do an additional
activity.
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RESEARCH METHODOLOGY
Research Design
Research Design is the framework or plan for a study which is used as a
guide in collecting and analyzing the data collected. It is the blue print thatis followed in completing the study. The basic objective of research cannot
be attained without a proper research design. It specifies the methods and
procedures for acquiring the information needed to conduct the research
effectively. It is the overall operational pattern of the project that stipulates
what information needs to be collected, from which sources and by what
methods.
Descriptive Research-Descriptive research, also known as statistical
research, describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the questions
who, what, where, when and how... The description is used for frequencies,
averages and other statistical calculations. the data description is factual,
accurate and systematic, the research cannot describe what caused a
situation. Thus, Descriptive research cannot be used to create a causal
relationship, where one variable affects another.
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DATA COLLECTION AND
SAMPLING
Type of data collected
There are two types of data used; both primary and secondary data were
collected for the study. Primary data is defined as the data that is
collected from original sources for a specific purpose. Secondary data is
the data collected from indirect sources.
• Sources of data
Primary data : Questionnaire method or survey method,
telephonic interview, as well as personal interview was adopted for
collecting information .
Secondary data: Secondary data were collected from
internet, books, company brochures, company’s website,
competitors website, etc, newspaper articles.
Sampling
It is a process of obtaining information about an entire population by
examining only part of it.
The technique for the process is non-probability sampling. Under this I
have used judgmental sampling and then convenience sampling.
In judgmental sampling I first sought advice of my instructor, and
accordingly I choose the samples. After this I selected the items from the
universe as per convenience sampling.
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• Sample size
The sample size for the survey conducted was 110 respondents.
DATA COLLECTION PROCESS
For primary data collection I approached various government offices, shopping
malls and shops of Lucknow and collected information from them. For this
questionnaire method was used. The basic objective for the preparation of this
questionnaire is to know about customer willingness to supplement their income
by doing any financial activity.
For secondary data I browsed various websites related to insurance sector, studiedmonthly fact sheets of different policies and investment plans and also gained
information from key information memorandum of selected companies.
Questionnaire
The questionnaire prepared was structure and non-disguised. The
questionnaire consist of five demographic variables which are- name,
age, sex, educational qualification, occupation, address, status and
contact number.
Ten questions forming the main part of questionnaire. The
questionnaire includes:-
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Multiple choice questions
Dichotomous questions
Through the questionnaire an attempt has been made to find out the
prospects who would like to supplement their income by doing any
additional activity. The questionnaire is attached as an annexure.
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RESEARCH PROBLEMS
• Large amount of competition
• Other brands are well advertised and have higher recall value.
• LIC is considered safer option.
• Face competition from banks and mutual funds.
• High premium policies are difficult to market.
• Incorrect perception about insurance.
• Interested prospects might have lack of time and postpone the call.
• Customers get defensive if you cold call.
• Short term plans are available only at large premium.
• Customers do not have risk appetite to invest in shares.
• Some prospects have already invested and are not interested for further
investment.
• Large amount of documentation.
• Lack of awareness
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INSURANCE INDUSTRY “AN OVERVIEW”
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INTRODUCTIONInsurance is a risk management technique primarily used to hedge against
the risk of a contingent, uncertain loss that may be suffered by those
individuals or entities who have an insurable interest in scarce resources,
by transferring the possibility of this loss from one interested person,
persons, or entity to another. The scarce resources referred to here fall into
three divisions: human resources, financial resources, and capital, or
tangible resources. In the context of insurance, scarce resources are also
known as "exposures," because they are "exposed" to perils, those things,
or forces, which cause destruction or reduction, in the usefulness, or value,
of an exposed resource. Human resources are thus exposed to perils such
as illness or death; financial resources to legal judgments that may result
from negligent acts, and capital resources to physical perils such as fire,
theft, windstorm, and vandalism, to name but a few. A hazard is the cause
of a peril. It is that thing or condition which increases the likelihood of a
peril. Thus perils and hazards are identified by the exposure that they
threaten. In the context of commercial trade, insurance is further defined as
the equitable transfer of the risk of a loss, from one entity to another, in
exchange for consideration, payment, in the form of a risk premium. The
insurance premium develops at an actuarially-determined rate. This rate is
a factor used to determine the amount of premium to charge for a certain
limit, and type, of insurance on the scarce resource. The premium can
further be viewed as a guaranteed, known, relatively small financial loss to
the insured, paid to the insurer, in exchange for the insurer's promise to
compensate (indemnify) the insured in the case of a loss to the insured
resource(s). The insured receives a contract, called the insurance policy,
which details the conditions and circumstances under which the insured will
be indemnified.
The business of insurance is related to the protection of the economic
values of assets. Every asset has a value. The asset would have been
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created through the efforts of the owner. The asset is valuable to the
owner, because he expects to get some benefit may be an income or in
some other form. It is a benefit because it meets some of his needs. The
benefit may be an income or in some other form. In the case of a factory or
a cow, the product generated by it is sold and income is generated. In the
case of a motor car, it provides comfort and convenience in transportation.
There is no direct income. Both are assets and provide benefits.
Every asset is expected to last for a certain period of time during which it
will period of time during which it will provide the benefits. After that, the
benefit may not be available. There is a life-time for a machine in a factory
or a cow or a motor car. None of them will last for ever. The owner is aware
of this and he can so manage his affairs that by the end of that period or
life-time, a substitute is made available. Thus, he makes sure that the
benefit is not lost. However, the asset may get lost earlier. An accident or
some other unfortunate event may destroy it or make it incapable of giving
the benefits. We can classify insurance in these terms-
It is a system by which the losses suffered by a few are spread over
many,exposed to similar risks.
Insurance is a protection against financial loss arising on the happening of
an unexpected event.
It is essential that:
The calamity is either natural or unexpected
The insured person does not gain out of this arrangement
SCOPE OF INSURANCE:We all know that assets are insured, because they are likely to be
destroyed or made nonfunctional before the expected life time, through
accident occurrences. Such possible occurrences are called perils. Perils
are the events. Risks are the consequential losses or damages. The risk to
an owner of a building may be a few lakhs or a few crores of rupees,
depending on the cost of building, the contents in it and the extent of
damage. The risk only means that there is a possibility of loss or damage.
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Insurance is done against the possibility that the damage may happen.
There has to be an uncertainty about the risk. The word “possibility”
implies uncertainty. Insurance is relevant only if there are uncertainties.
Insurance does not protect the asset. It does not prevent its loss due to the
peril. The peril cannot be avoided through insurance. The risk can
sometimes be avoided, through better safety and damage control
measures. It only tries to reduce the impact of the risk on the owner of the
asset and those who depend on that asset. They are the ones who benefit
from the asset and therefore, would lose, when the asset is damaged.
Insurance compensates for the losses- and that too, not fully. In conclusion
we can say that the scope of insurance is very broad and specific because it
reduces the losses and risk of owner of the assets due to perils. It also gives
supports to the person in the period of adverse situation. It insured
economic consequences. When a person saves, the amount of funds
available at any time is equal to the amount of money set aside in past,
plus interest. Insurance has no substitute and one more thing about the
insurance is that this is not similar to a hire purchase scheme. In the event
of death, the balance installments are not excused. They have to be paid by
the surviving family. There is a tax benefits, both in income tax and in
capital gins. Marketability and liquidity are better. Life insurance is not only
the best possible way for family protection there is no other way. The
term of life is hard but the terms of insurance are easy.
HISTORY OF INSURANCE:
The first insurance company in the United States underwrote fireinsurance and was formed in Charles Town , South Carolina, in
1732. Benjamin Franklin helped to popularize and make standard the
practice of insurance, particularly against fire in the form of perpetual
insurance. In 1752, he founded the Philadelphia Contribution ship for the
Insurance of Houses from Loss by Fire. Franklin's company was the first
to make contributions toward fire prevention. Not only did his company
warn against certain fire hazards, it refused to insure certain buildingswhere the risk of fire was too great, such as all wooden houses. In the
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United States, regulation of the insurance industry is highly Balkanized,
with primary responsibility assumed by individual state insurance
departments. Whereas insurance markets have become centralized
nationally and internationally, state insurance commissioners operate
individually, though at times in concert through a national insurance
commissioners' organization. In recent years, some have called for a
dual state and federal regulatory system (commonly referred to as
the Optional federal charter (OFC)) for insurance similar to that which
oversees state banks and national banks.
The business of life insurance in India in its existing form started
in India in the year 1818 with the establishment of the Oriental LifeInsurance Company in Calcutta. The General insurance business in India,
on the other hand, can trace its roots to the Triton Insurance Company
Ltd., the first general insurance company established in the year 1850
in Calcutta by the British.
INDIAN INSURANCE MARKET-HISTORY : Insurance has a long history in India. Life Insurance in its current form
was introduced in 1818 when Oriental Life Insurance Company began
its operations in India. General Insurance was however a
comparatively late entrant in 1850 when Triton Insurance company set
up its base in Kolkata. History of Insurance in India can be broadly
bifurcated into three eras: a) Pre Nationalization b) Nationalization and
c) Post Nationalization. Life Insurance was the first to be nationalized in
1956. Life Insurance Corporation of India was formed by consolidating
the operations of various insurance companies. General Insurance
followed suit and was nationalized in 1973.
General Insurance Corporation of India was set up as the controlling
body with New India, United India, National and Oriental as its
subsidiaries. The process of opening up the insurance sector wasinitiated against the background of Economic Reform process which
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commenced from 1991. For This purpose Malhotra Committee was
formed during this year who submitted their report in 1994 and
Insurance Regulatory Development Act (IRDA) was passed in 1999.
Resultantly Indian Insurance was opened for private companies and
Private Insurance Company effectively started operations from 2001.
MILESTONES:
Year Milestones in the life insurance business in India
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
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.
Year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business
1957 General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business
practices
1968 The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.107 insurers amalgamated and grouped into four companies’ viz. the
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National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
NEED FOR INSURANCE:
• Funding future goals through insurance
A wide range of vehicles are available to fund future financial goals.
These could be low risk-low return instruments like bank deposits and
small savings, or higher risk products such as equity, which can offer
potentially higher returns. Insurance scores over other investment
vehicles in the following aspects:
Certainty
Once a goal has been identified and a value for it has been
crystallized, an insurance policy is an excellent vehicle to fund the
goal. This is because one can rest assured that even in the
unfortunate event of death or even critical illness, the sum assured
will fund a future goal of the policyholder.
Tax efficient
Maturity benefits of most insurance policies are tax free under
Section 10 (10D) and the premium paid is eligible for deduction under
Section 80C of the Income Tax Act, 1961.
Flexibility
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Insurance products, especially Unit Linked Plans, provide flexibility in
terms of asset allocation to suit specific risk appetites, policy
durations, premium payment terms and fund switching options.
Wider options
Depending on the time horizon of the goal, the return required and the
investor's risk appetite, a broad spectrum of asset allocations
between equity and debt is possible in a Unit Linked Plan. An investor
may tailor his policy to suit his requirement.
Liquidity
Most Insurance products offer good liquidity after the lock-in period to
take care of any emergency requirement of funds. But they do have
inherent deterrents in the form of charges to discourage unnecessary
encashment.
Earmarking
Very often an insurance policy is taken for a specific goal. This
therefore can become a deterrent against utilizing these funds for any
other purpose and also encourages continued contributions.
• Planning for unforeseen events
Insurance helps you to provide for contingent liabilities like
hospitalization, critical illness, debt redemption etc, in a cost efficient
manner.
Term insurance
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Term insurance is the simplest and cheapest form of life cover, which
pays the sum assured on death. This is useful to simply provide for a
family's survival in the unfortunate event of demise of the bread
winner. This can also be used to cover repayment of any debt of a
policy holder by simply assigning the policy to the creditor. Upon
maturity or claim on the policy, the proceeds are paid to the creditor.
Loan Cover policies are a variant where the sum assured keeps
reducing in line with the loan balance.
Health covers
These policies provide cover against major health care expenses like
hospitalization, surgery, critical illness etc. The benefits could be in
the form of fixed pay outs on hospitalization or a lump sum on
diagnosis against some specified critical illnesses.
Accident benefit
This is usually an add-on cover over a basic policy and pays anadditional sum assured to the beneficiary in case of death due to
accident. Since accidental death is sudden and unforeseen, the family
could be faced with issues like relocation, debt servicing and other
requirement for funds.
• Planning for retirement
Indian life expectancy has improved dramatically over the years dueto availability of advanced medical facilities. However, a longer
working life may not really be possible due to occurrences of life-style
induced illness and high burn-out rate. The evolving demographic
balance with plenty of young talent becoming continuously available
may also be a deterring factor to a longer working life unless one is
self employed.
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Consequently, our retirement life span could well be as long as our
active working life span. This means that we have to build a solid
corpus during our active life to maintain our life style for the long post
retirement life if we are to enjoy the true meaning of the word
"retirement". Pension Plans help us build up our savings during our
earning years and provide us a lump sum on retirement. This lump
sum can then provide us a retirement income by investing in an
annuity.
•
Provide post retirement income
The worst situation that a retiree can face is to run out of funds late
into retirement. Such a situation may force him to seek help from
friends / relatives or liquidate his fixed assets which essentially are a
compromise of self respect. This is where insurance offers the best
solution in the form of an annuity. Annuities bought from the
retirement corpus can either be used to provide regular post
retirement income for a fixed term or also for the entire life.
• Insurance as an inflation shield
Inflation lowers the purchasing power of money and makes a
dramatic cumulative impact over the long term. It reduces your real
income year after year as your cost of living keeps increasing. So, itmust be taken into account while framing financial goals. Insurance
products such as Unit Linked Plans help us combat the impact of
inflation on our financial goals by providing the option to invest in
equity, which is known to deliver one of the best returns from all
asset classes, over the long term. Ignoring inflation would result in
our savings falling short of the estimated value of future goals,
especially over the long term.
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TYPES OF INSURANCE :
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Comparison between Unit Linked Plans and Conventional
Plans
UnitLinked
Insurance Plan
Conventionalplans
TypeDescription
Unit LinkedInsurance Plansoffered by insurancecompanies allowpolicy holders todirect part of their
premiums intodifferent types of funds (equity, debt,money market,hybrid etc.) Here therisk of investment isborne by thepolicyholder.
Conventional Plansare traditionalinsurance plans. Theyusually invest in lowrisk return optionsand offer guaranteed
maturity proceedsalong with declaredbonuses.
KeyFeatures of Flexibility
Investment
Unit Linked Plansgive you flexibility toinvest as per yourrisk profile, financialcommitments andconvenience. Youcan choose to investeither in equity, or indebt or in hybridfund and evenchange yourinvestment strategy.
These plans do notallow you to chooseinvestment avenues.
Your funds areinvested as per thestrategy anddiscretion of thecompany.
Transparency
Most Unit LinkedPlans allow you totrack your portfolio.
They also regularlyintimate regardingthe percentage of the premium that isinvested along withthe charges levied.
You are also keptinformed about thevalue and number of fund units that youhold.
Your premiums areinvested in acommon 'with profits'
fund and thereforeyou cannot track yourindividual portfolio.
Maturitybenefitspayout
At the time of maturity you redeemthe units collected at
At the time of maturity you get thesum assured plus
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the then prevailingunit prices. Someplans also offer youloyalty or additionalunits annually or at
the time of maturity.
bonuses, if applicablein the plan.
Partialwithdrawal
Unit Linked Plansallow you to makewithdrawals fromyour fund, providedthe fund does not fallbelow the minimumfund value andsubject to otherconditions.
Conventional plansdo not allow you towithdraw part of yourfund. Instead, somepolicies offer you thefacility to take a loanagainst yourinvestment.
Switchingoptions
Available. You canchange your
investment funddecision by switchingbetween the fundsas being offered bythe policy.
Not available sincethe the investment
decision is taken bythe insurancecompany.
Chargesstructure
Unit Linked Plansspecify the charges.under various heads.
These plans do notspecify the chargesinvolved.
SinglepremiumTop-up
Available. The singlepremium top-upfacility allows you to
invest an extraamount over andabove your regularpremiums in yourunit linked plan.
The top-up facility isnot available.
BenefitSnapshot
• Unit LinkedPlans give youflexibility of investment
• They allow youto track your
portfolio.• Unit Linked
Plans offer thebenefit of asingle premiumtop up whichallows you toinvest ad hocadditionalamounts
• Unit Linked
Plans allowpartial
• Conventionalplans offerfixedpremiumslinked to thesum assured.
• The maturity
benefits forthese plansinclude thesum assuredplus bonuses,
• if applicable
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withdrawals,subject toconditions andswitchingbetween funds
by paying somecharges, if necessary.
• Unit LinkedPlans give youthe option of apremiumvacation.
COMPARISON OF UNIT LINKEDINSURANCE PLANS AND MUTUALFUNDS
Unit
LinkedInsura
nce Plan
Mutual funds
TypeDescription
Unit Linked Plansrefer to Unit LinkedInsurance Plansoffered by insurancecompanies. Theseplans allow investorsto direct part of their
premiums intodifferent types of funds (equity, debt,money market,hybrid etc.)
A mutual fund poolsthe money frominvestors and usesit to invest invarious securitiesaccording to a pre-specified
investmentobjective.
KeyFeaturesObjective
Unit Linked Plans arelong term plansoffering you a dualbenefit of insuranceand investment.
Mutual funds areideal investmenttool for the short tomedium term.
TaxBenefit
All Unit Linked Plansoffer tax benefitsunder section 80C.
Only investments intax saving funds areeligible for section
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80C benefits.Switching Options
Unit Linked Plansallow you to switchyour investmentbetween the funds
linked to the plan. This enables you tochange the riskreturn.
No switching optionis available. If youare not satisfiedwith the
performance of thefund you can exitcompletely from thesame by paying exitcharges, if applicable
Additional Benefits
Some of the UnitLinked Plans give youan additional benefitor loyalty benefit by
issuing extra fundunits.
There are noadditional benefitsissued by mutualfunds.
Liquidity Unit Linked Planshave limited liquidity.One needs to stayinvested for aminimum period of time as specified inthe policy beforeredeeming the units.
You can easily sellmutual fund units(except for ELSSand funds that havea minimum lock-inperiod)
Charges
Structure
Charges in a unit
linked plan includemortality charges forthe life insuranceprovided. In addition,premium allocationcharge, fundmanagement chargeand administrationcharges areapplicable.
Mutual fund charges
include an entryload, the annualfund managementcharge and an exitload, if applicable
BenefitSnapshot•
Dual benefit of investment andinsurance
• Suitable for thelong term
• Option toswitch betweenthe funds ispermitted.
• Offers tax
benefits
•
Investmenttool suitablefor short tomedium term.
• Easy exitpossible.
Tax benefitavailable only ontax saving funds
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COMPETITIVE
ANALYSIS28
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PROFILE OF
COMPETITORS
Life Insurance Corporation of india
LIC has an excellent money back policy which provides for periodic
payments of partial survival benefits as long as the policy holder is alive.
20% of the sum assured is payable after 5, 10, 15 and 20 years and thebalance 40% is payable at the 20th year along with accrued bonus. For a 25
years term , 15% of the sum assured becomes payable after 5,10,15and 20
years and the balance 40% plus the accrued bonus becomes payable at the
25th year. An important feature of these types of policies is that in the
event of the death of the policy holder at any time within the policy term
the death claim comprises of full sum assured without deducting any of the
survival benefit amounts which have already been paid. The bonus is alsocalculated on the full sum assured. HDFC SLIC does not have a money back
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policy. It could offer a money back plan and capture some portion of this
market. While marketing insurance products I found that many customers
wanted to purchase these plans.
LIC offers 66 different plans; plans are formulated for specific occasions –
whole life plans, term assurance plans, money back plan for women, child
plans, plans for the handicapped individuals, endowment assurance plans,
plans for high worth individuals, pension plans, unit linked plans, special
plans, social security schemes – diversified portfolio of products. HDFC SLIC
could diversify its product portfolio. It could add more plans for high worth
individuals and women.
Birla Sun Life
A US $30 billion corporation, the Aditya Birla Group is in the league of
Fortune 500 worldwide. It is anchored by an extraordinary force
of 130,000 employees, belonging to 40 different nationalities. The group
operates in 27 countries across six continents – truly India's first
multinational corporation.
Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG),
has a strong presence across various financial services verticals that
include life insurance, fund management, distribution & wealth
management, security based lending, insurance broking, private equity and
retail broking The seven companies representing Aditya Birla Financial
Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life
Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla
Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart
Ltd, and Aditya Birla Insurance Brokers Ltd. In FY 2009-10, ABFSG reported
consolidated revenue from these businesses at Rs. 5871 Cr., registering a
growth of 43%.
ICICI Prudential
ICICI Prudential is a stiff competitor for HDFC SLIC. The company is amerger between ICICI Bank which is the biggest private bank in India and
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Prudential Plc which is a global life insurance company. The company has
an investment plan which is market related – Invest ShieldLife. In this plan
even if the market falls, the premium will be returned to investors. It is a
guaranteed plan which ensures the company carefully nvests your money.
The stock market performance of ICICI Prudential is much better than HDFC
SLIC. The returns on the growth fund were 46.28%compared to the 42.70%
offered by HDFC SLIC. Customers are attracted by higher returns and this is
a plus point for Prudential.
The company is very well advertised. The advertisements are showcased in
movies, television, newspapers, magazines, bill boards, radio etc. The
company has an excellent brand ambassador – Mr. Amitabh Bacchan. His
promotion of the company builds trust and faith in the minds of our people.
Bajaj Allianz
Bajaj Allianz General Insurance Company Limited is a joint venture between
Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and
Allianz SE. Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration on 2nd May, 2001
to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of
Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is
held by Allianz, SE.
As on 31st March 2010, Bajaj Allianz General Insurance maintained its
premier position in the industry by achieving growth as well as profitability.
Bajaj Allianz has made a profit before tax of Rs. 180 crores and has become
the only private insurer to cross the Rs.100 crore mark in profit before tax
in the last four years. The profit after tax was Rs. 121 crores, 27% higher
than the previous year.
Max New York Life Insurance Company Ltd
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Max New York Life Insurance Company Ltd. is a joint venture between
Max India Limited, one of India's leading multi-business corporations and
New York Life International, the international arm of New York Life, a
Fortune 100 company. The company has positioned itself on the quality
platform. In line with its vision to be the most admired life insurance
company in India, it has developed a strong corporate governance model
based on the core values of excellence, honesty, knowledge, caring,
integrity and teamwork.
Incorporated in 2000, Max New York Life started commercial operation in
April 2001. In line with its values of financial responsibility, Max New York
Life has adopted prudent financial practices to ensure safety of
policyholder's funds. The Company's paid up capital as on 31 st August,
2010 is Rs 1,973 crore.
Tata AIG Life Insurance Company Limited
(Tata AIG Life)
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture
company, formed by Tata Sons and AIA Group Limited (AIA). Tata AIG Life
combines Tata’s pre-eminent leadership position in India and AIA’s
presence as the largest, independent listed pan-Asia life insurance group in
the world spanning 15 markets in Asia Pacific. Tata Sons holds a majority
stake (74%) in the company and AIA holds 26% through an AIA Group
company. Tata AIG Life Insurance Company Limited was licensed to operate
in India on February 12, 2001 and started operations on April 1, 2001.
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COMPANY PROFILEOF HDFC LIFE
INSURANCE COMPANY
LTD.
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HDFC LIFE INSURANCE COMPANY
LIMITED
Introduction :
HDFC Life, one of India's leading private life insurance companies, offers
a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC),
India's leading housing finance institution and Standard Life plc, the
leading provider of financial services in the United Kingdom.
HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds
26.00% of equity in the joint venture, while the rest is held by others.
HDFC Life's product portfolio comprises solutions, which meet various
customer needs such as Protection, Pension, Savings, Investment and
Health. Customers have the added advantage of customizing the plans,
by adding optional benefits called riders, at a nominal price. The
company currently has 29 retail and 5 group products in its portfolio,
along with five optional rider benefits catering to the savings,
investment, protection and retirement needs of customers.
HDFC Life continues to have one of the widest reaches among new
insurance companies with more than 500branches servicing customer
needs in over 700 cities and towns. The company has a strong base of
Financial Consultants.
Parentage:
HDFC Limited
HDFC Limited, India's premier housing finance institution has assisted
more than 3.8 million families own a home, since its inception in 1977
across 2400 cities and towns through its network of over 289 offices. It has
international offices in Dubai, London and Singapore with service associatesin Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a
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home back in India. As of March 2011, the total asset size has crossed more
than Rs. 1,32,727crores including the mortgage loan assets of more than
Rs.1,17,126 crores. The corporation has a deposit base of over Rs. 24,625
crores, earning the trust of nearly one million depositors. Customer Service
and satisfaction has been the mainstay of the organization. HDFC has set
benchmarks for the Indian housing finance industry. Recognition for the
service to the sector has come from several national and international
entities including the World Bank that has lauded HDFC as a model housing
finance company for the developing countries. HDFC has undertaken a lot
of consultancies abroad assisting different countries including Egypt,
Maldives, Mauritius, Bangladesh in the setting up of housing finance
companies.
Standard Life Plc.
Established in 1825, Standard Life Plc. is a leading provider of long term
savings and investments to around 6 million customers worldwide.
 Headquartered in Edinburgh, Standard Life has around 9,000 employeesacross the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong
and mainland China. The Standard Life group includes savings and
investments businesses, which operate across its UK, Canadian and
European markets; corporate pensions and benefits businesses in the UK
and Canada; Standard Life Investments, a global investment manager,
which manages assets of over £157bn globally; and its Chinese and Indian
Joint Venture businesses.  At the end of April 2011 the Group had totalassets under administration of £198.4bn. Standard Life plc is listed on the
London Stock Exchange and has approximately 1.5 million individual
shareholders in over 50 countries around the world.
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Visions and Values:
Vision
'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'.
'The most obvious choice for all'.
Values
Values that we observe while we work:
• Integrity
• Innovation• Customer centric
• People Care "One for all and all for one"
• Team work
• Joy and Simplicity
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Awards and Accolades
Received 2008 CIO Bold 100 and CIO Security Awards
Received PC Quest Best IT Implementation Award 2008
Board Members
• Mr. Amitabh Chaudhry
Managing Director and Chief Executive Officer
• Mr. Paresh ParasnisExecutive Director and Chief Operating Officer
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• Ms. Vibha PadalkarChief Financial Officer
• Mr. Ashley RebelloChief Actuary and Appointed Actuary
• Mr. Vikram MehtaGeneral Manager, Sales and Marketing
• Mr. Prasun Gajri Chief Investment Officer
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Associated Companies
HDFC Limited HDFC Bank
HDFC Mutual Fund HDFC Sales
HDFC ERGO General Insurance HDB Financial Services
HDFC Securities
Other Companies
• HDFC Trustee Company Ltd.• GRUH Finance Ltd.• HDFC Developers Ltd.• HDFC Property Ventures Ltd.• HDFC Ventures Trustee Company Ltd.• HDFC Investments Ltd.• HDFC Holdings Ltd.• Credit Information Bureau (India) Ltd• HDFC Securities• HDB Financial Services
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PRODUCT RANGE
Savings Plans : Under the Savings Plans following plans are
available.
Endowment Assurance (EA) Plan:
It is a participating (with profits) insurance plans that offers the following features:
Provides financial support to the family by way of lump sum payment in case of
the unfortunate death of the life assured with in the term of the policy.
Provide a lump sum payment to the life assured on survival up to the maturity.
The lump sum mentioned is the basic sum assured plus any bonus additions.
Children’s Plan:
It is designed to provide a lump sum to the child at maturity. It also provides a
financial security to the child in future, even in case of insured parent’s
unfortunate death during the policy term. Children’s Plan receives simple
reversionary bonuses, which are usually added annually. This is flexible plan with
three options to choose from, depending on one’s requirement.
MONEY Back (MB) Plan:
It is participating (with profits) insurance plan that offers the following features:
Payment of cash lump sum, each of which is proportion of basic sum assured, at 5-
year interval during the term of policy.
On survival up to the maturity, a payment equal to the basic sum assured plus any
bonus addition less the cash lump sum paid earlier is provided.
In cash of the unfortunate death of the life assured within the term of the policy,
the basic sum assured plus any bonus addition is provided. This is over the above
the earlier payouts.
Protection Plans:
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Under the protection plan the following are available:
Term Assurance (TA) Plan:
It is a plan under which the term assured is payable in case 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 profit) plan is a pure risk cover plan, no benefits are
payable on survival to the end of the term of the policy.
Loan Cover Term Assured (LCTA) Plan:
This provides a lump sum on the unfortunate death of the life assured during the
term of the plan. The lump sum will be decreasing percentage of the initial sum
assured. As the outstanding loan decrease as per the loan schedule, the cover
under the policy decrease as per the policy schedule. Since this is non-
participating (without profits) pure risk cover plan, no benefits are payable on
survival to the end of the term of the policy.
Retirement Plan:
Under the retirement plan the following plan is available:
Personal Pension Plan:
This plan is participating (with profit) plan which is basically a saving contract, designed
to provide an income for life after retirement. It provides a notional lump sum on
retirement, comprising of the sum assured plus any attaching bonus. Subject to the
prevailing regulations, part of this lump sum can be taken in the form of cash and the
rest converted to an annuity at the rate then offered by HDFC Standard Life Insurance
or with any other insurance company who will accept such business.
Health Plans:
HDFC critical careplan
HDFC surgicare plan
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GROUP TERM INSURANCE PLAN
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
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 withthe 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 , where a discount is given on future premiums
in case of favorable claim experience (subject to group size).
The HDFC 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)
The plan covers death due to any cause; accidental or natural, and hence is
more comprehensive than Group Personal Accident Insurance. Several
multinational corporations, large Indian companies, foreign banks and
software companies have already chosen the HDFC Group Term Insurance,
an innovative product from HDFC Standard Life Insurance, to protect their
employees.
Optional Rider Benefits
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• Accidental Death Benefit
• Total Permanent Disability
• Total Permanent and Partial Diability Benefit
• Critical Illness Benefit
• Terminal Illness Benefit
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 customers of one or more of the third party's specificproducts 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
The policy is without any participation in the insurer's profits.
GROUP UNIT LINKED PLAN
Gratuity Schemes
Most employers have a statutory obligation to pay a gratuity to its
employees on termination of employment. This gratuity is in the form of a
one-off payment made on termination of employment. It depends on salary
and number of years of service, so will therefore increase with time. The
HDFC Group Unit Linked plan is a new and innovative unit-linked plan,
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which offer employers and gratuity scheme trustees a flexible and cost
effective way to fund this gratuity liability. The plan helps a corporate by:
• Building a fund systematically, which will be used to meet your future
gratuity liability
• Providing the opportunity to maximise investment returns and thus
provide the benefit in a cost-effective manner
GROUP UNIT LINKED PLAN
Leave Encashment Schemes
Many employers provide their employees with the option of encashing their
leave to their credit at the time of retirement or resignation. Accounting
Standard 15 requires that an actuarial valuation of a company leave
encashment liability be carried out and reflected in the books of accounts.
The HDFC Group Unit Linked Plan is an innovative plan, which offers
employers a flexible and cost effective way to fund this Leave Encashment
liability. The plan helps an organisation by:
• Creating a fund that can be built up to meet your future leave
encashment liability
• Providing the opportunity to maximise investment returns and thus
provide the benefit in a cost-effective manner
One factor that helps maximise investment returns is low charges. Our fund
management charges are the lowest in the industry today and thereforecan improve your long-term returns.
HDFC SL GROUP SAVINGS PLAN
As a company or an affinity group, you want to express to your group
members that you care for them, and want them to have stronger financial
future.
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HDFC SL GROUP SAVINGS PLAN is a simple conventional group plan
wherein the company/affinity group is the policyholder & the group
members /employees/depositors are the scheme members.
This 'with profits' group plan would enable your scheme members to
• Provide financial protection to their loved ones
• Build savings in a simple & systematic manner
• Pay premiums only for a limited period of 5 years
• Is simple to administer
COMPANY PROFILE OF LIC
Introduction
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apartfrom its corporate office in the year 1956. Since life insurance contracts are
long term contracts and during the currency of the policy it requires a
variety of services need was felt in the later years to expand the operations
and place a branch office at each district headquarter. Re-organization of
LIC took place and large numbers of new branch offices were opened. As a
result of re-organisation servicing functions were transferred to the
branches, and branches were made accounting units. It worked wonderswith the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00
crores only in the year 1969-70, and it took another 10 years for LIC to
cross 2000.00 crore mark of new business. But with re-organisation
happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
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Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satallite offices and the Corporate
office. LIC’s Wide Area Network covers 109 divisional offices and
connects all the branches through a Metro Area Network. LIC has tied up
with some Banks and Service providers to offer on-line premium
collection facility in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks
and IVRS, Info Centres have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune
and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The
satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
Objectives
• Spread Life Insurance widely and in particular to the rural areas and
to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.
• Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of
the interest of the community as a whole; the funds to be deployed to
the best advantage of the investors as well as the community as a
whole, keeping in view national priorities and obligations of attractive
return.
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• Conduct business with utmost economy and with the full realization
that the moneys belong to the policyholders.
• Act as trustees of the insured public in their individual and collective
capacities.
• Meet the various life insurance needs of the community that would
arise in the changing social and economic environment.
• Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing
efficient service with courtesy.
• Promote amongst all agents and employees of the Corporation a
sense of participation, pride and job satisfaction through discharge of
their duties with dedication towards achievement of Corporate
Objective.
Product and services
• Insurance Plan
The Whole Life Policy This plan is mainly devised to create an estate for the heirs of the
policyholder as the plan basically provides for payment of sum assured
plus bonuses on the death of the policyholder. However, considering the
increased longevity of the Indian population, the Corporation has
amended the above provision, thereby providing for payment of sum
assured plus bonuses in the form of maturity claim on completion of age
80 years or on expiry of term of 40 years from date of commencement
of the policy whichever is later.
The premiums under the policy are payable up to age 80 years of the
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policyholder or for a term of 35 years whichever is later.
If the payment of premium ceases after 3 years, a paid-up policy for
such reduced sum assured will be automatically secured provided the
reduced sum assured exclusive of any attached bonus is not less than
Rs.250/-. Such reduced paid-up policy is not entitled to participate in the
bonus declared thereafter but the bonuses already declared on the
policy will remain attach, provided the policy is converted in to a paid-up
policy after the premiums are paid for 5 years.
The Whole Life Policy- Limited Payment
This is the best form of life assurance for family provision since it
enables the Life Assured to pay all the premiums during the ordinarily
vigorous and most productive years of life. He need not pay any
premium in the later stages of life if and when his conditions might
become adverse.
With Profits Limited Payments Policies do not cease to participate in
profits after completion of the premium paying period but continue to
share in the periodical Bonus Distribution until the death of the Life
Assured.
If the policyholder pays at least 3 years' premiums and then
discontinues paying any more premium, a reduced paid-up assurancepolicy comes into force.
Such a reduced paid-up Policy will not be entitled to participate in the
profits declared thereafter, but such Bonus as has already been declared
on the Policy will remain attached thereto. The premium paying term
under this plan is five years minimum and 55 years maximum.
The Whole Life Policy- Single Premium
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This is the best form of life assurance for family provision since it
enables the Life Assured to pay the premium during the ordinarily
vigorous and most productive years of life, relieving him from the
necessity of making payments later in life when they might become a
burden.
With Profits Single Premium policies do not cease to participate in profits
after completion of the period for which premium has been paid ,but
continue to share in the periodical Bonus Distribution until the death of
the Life Assured.
Jeevan Anand
This plan is a combination of Endowment Assurance and Whole Life
plans. It provides financial protection against death throughout the
lifetime of the life assured with the provision of payment of a lump sum
at the end of the selected term in case of his survival.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or through
salary deductions as opted by you throughout the selected term of the
policy or till earlier death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporation’s
life insurance business. It gets a share of the profits in the form of bonuses.
Simple Reversionary Bonuses are declared per thousand Sum Assured
annually at the end of each financial year. Once declared, they form part of
the guaranteed benefits of the plan. Bonuses will be added during the
selected term or till death, if it occurs earlier. Final (Additional) Bonus may
also be payable provided the policy has run for certain minimum period.
Jeevan Tarang
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5½ % of the Sum Assured after the chosen Accumulation Period. The
vested bonuses in a lump sum are payable on survival to the end of the
Accumulation Period or on earlier death. Further, the Sum Assured, along
with Loyalty Additions, if any, is payable on survival to age 100 years or
on earlier death. The plan offers three Accumulation periods – 10, 15 and
20 years. A proposer may choose any of them. Premiums can be paid
regularly at yearly, half-yearly, quarterly or monthly intervals or through
salary deductions over the Accumulation Period. Alternatively, a Single
Premium can be paid on commencement of a policy.
Two Year Temporary Assurance Policy
The Convertible Term Assurance Policy
This plan of assurance is designed to meet the needs of those who are
initially unable to pay the larger premium required for a Whole Life or
Endowment Assurance Policy, but hope to be able to pay for such a
policy in the near future.
This plan would be found useful also in cases where it is desired to leave
the final decision as to the plan to a later date when, perhaps a better
choice could be made.
Policy holders get an option of converting an policy into endowment
assurance or limited payment whole life assurance.
Anmol Jeevan-I
Amulya Jeevan-I
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On Death during theTerm of the Policy
Sum Assured
On Maturity Nil
On Death during the
Term of the Policy
Sum Assured
On Maturity Nil
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Jeevan Saathi
This is an Endowment Assurance Plan issued on the lives of husband and
wife. The plan provides financial protection against death of both the
lives. It pays the maturity amount on survival of one or both the lives to
the end of the policy term. Premiums are payable yearly, half-yearly,
quarterly, monthly or through salary deductions as opted by you
throughout the term of the policy or till the first death of the lives
covered, whichever is earlier.
Bima account plans
As the name explains “LIC’s Bima Account – I ” is a simple non-linked plan
under which you can be covered without undergoing any medical
examination subject to certain conditions.
This plan offers you everything you think of an insurance plan should
provide:
1. Simplicity
2. Liquidity
3. Guaranteed minimum return
4. No medical examination
5. Transparent charges
6. Risk cover
Under this plan, the premiums paid by you, after deduction of charges, will
be credited to the Policyholder’s Account maintained separately for each
policyholder. The risk cover will be provided by deduction of mortality
charges from the Policyholder’s Account.
If all due premiums are paid, the amount held in your Policyholder’s
Account will earn an annual interest rate of 6% p.a. which will be
guaranteed for whole of the policy term. In addition to this guaranteed
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return, if all due premiums are paid, your account may earn an additional
return depending upon the experience under this plan.
You will also have an option to pay additional (Top-up) premiums without
any increase in risk cover.
Loan facility will also be available immediately after first policy anniversary.
Endowment plans
This is a unit linked Endowment plan which offers investment cum
insurance cover during the term of the policy. You can choose the level of insurance cover within the limits, which will depend on the mode and level
of premium you agree to pay.
You have a choice of investing your premiums in one of the four types of
investment funds available. Premiums paid after deduction of allocation
charge will purchase units of the Fund type chosen. The Unit Fund is subject
to various charges and value of units may increase or decrease, depending
on the Net Asset Value (NAV).
Childrens plan
This plan is specially designed to meet the increasing educational,
marriage and other needs of growing children. It provides the risk cover
on the life of child not only during the policy term but also during the
extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are payable on surviving by the life assured to the end
of the specified durations.
Plans for handicapped dependent
Plans for high worth individual
Money back plan
• Pension plans
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LIC’s Pension Plus is a unit linked deferred pension plan, which provides you
a minimum guarantee on the gross premiums paid. The plan is without any
life cover.
You have a choice of investing your premiums in one of the two types of
investment funds available. Premiums paid after deduction of allocation
charge will purchase units of the Fund type chosen. The Unit Fund is subject
to various charges and value of units may increase or decrease, depending
on the Net Asset Value (NAV).
• Unit plans
LIC’s Pension Plus is a unit linked deferred pension plan, which provides you
a minimum guarantee on the gross premiums paid. The plan is without any
life cover.
You have a choice of investing your premiums in one of the two types of
investment funds available. Premiums paid after deduction of allocation
charge will purchase units of the Fund type chosen. The Unit Fund is subject
to various charges and value of units may increase or decrease, depending
on the Net Asset Value (NAV).
• Special plans
Health plus plan
Golden jubilee plan
Micro insurance plan
• Group schemes
Group (term) Insurance Scheme is meant to provide life insurance
protection to groups of people. Administration of the scheme is on group
basis and cost is low. Under Group (Term) Insurance Scheme, life insurance
cover is allowed to all the members of a group subject to some simple
insurability conditions without insisting upon any medical evidence. Scheme
offers covers only on death and there is no maturity value at the end of the
term.
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• Withdrawal plans
ANALYSIS
AND
INTERPRETATION
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Demographic Variables
• AGE GROUP OF THE RESPONDENTS
Age Group No. of Respondents
Percentage
18-25 20 1826-35 39 35
36-45 25 2446-55 19 17More than 55 7 6Grand total 110 100
Analysis : Out of the total 110 samples taken highest were in the age
group of 46-55(39,36%), 25 in the age group of 36-45, 20 in the age group
of 18-25 and 19 in the age group of46-55 and only 7 in the age group of
more than 55 respectively. This shows that mostly people in the age group
of 25-55 should be targeted.
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• GENDER OF THE RESPONDENTS
Sex No. of Respondents
Percentage
Male 93 85Female 17 15Grand Total 110 100
• HIGEST QUALIFICTION OF THE RESPONDENTS
Qualificatio
n
No. of
Respondents
Percentage
10th 5 512th 7 6Graduation 61 55Postgraduation
37 34
Grand total 110 100
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Analysis: Out of the total 110 samples taken highest were in the groupof graduation (61,55%), followed by post graduation 37, and only 5,7 in 10th
,12th standard respectively This shows that most of them had highestqualification as graduation.
• OCCUPATION OF THE RESPONDENTS
Occupation No. of Respondents
Percentage
Service 50 45Self employed
39 36
Student 6 5Professional 11 10House wife 4 4Grand total 110 100
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Analysis: Out of the total 110 samples taken highest were in the servicegroup (50, 45%), 39 in the self employed group, 11 in the professionalgroup, 6 were students and only 4 in the house wife respectively. Thisshows that mostly people in the service group should be targeted primarilyfollowed by self employed.
Main Questions
Q1) For how long you are residing in this town?
No. of Years No. of Respondent
s
Percentage
Less than 1 15 141-2 18 162-3 4 33 yrs above 73 67Grand total 110 100
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Analysis: Out of the total 110 samples taken highest were in the group
of more than 3 years(73,67%), 18 in the group of 1-2 years, 15 in the
group of less than 1 years and only 4 in the group of 2-3 years
respectively. This shows that mostly people surveyed are residing in the
town for more than 3 years and therefore can be targeted easily.
Q 2) How many people do you know well in the city?
No. of peopleknown inthe city
No. of Respondents
Percentage
Below 25 17 1525-50 10 950-100 12 11More than100
71 65
Grand total 110 100
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Analysis: Out of the total 110 samples taken highest were in the group
of more than 100(71,65%), 17 in the group of below 25, 12 in the group of
50-100 and only 10 in the group of 25-50 respectively. This shows that
mostly people surveyed know more than 100 people well in the town and
therefore more customers can be targeted easily.
Q3) What is your average monthly income?
Averagemonthlyincome
No. of Respondents
Percentage
Less than5000
7 6
5000-10000 13 1210000-20000
34 31
20000-25000 14 13
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No 65 59Grand Total 110 100
Analysis: Out of the total 110 samples taken only 45 or 41%
respondents have to support anyone financially. Rest all 65 respondents
don’t have to support anyone financially. Therefore those who need to
support anyone financially would like to supplement their income by doing
any extra activity.
Q5) Do you know any of your family members or friends,
who is working as Agent or Advisor for any insurance
company?
No. of Respondents
Percentage
Yes 48 44No 62 56Grand Total 110 100
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Analysis: Out of the total 110 samples taken only 48 or 44%
respondents know whether their family member or friend is working for
insurance company as agent or advisor. Rest all 62 respondents don’t
know.
Q6) If ’yes’ do you know any idea about his /her role as
an “Agent”/”Advisor”?
No. of Respondents
Percentage
Yes 45 41No 65 59Grand Total 110 100
Analysis: Out of the total 110 sample taken only 45 or 41% respondents
know the role of their family member or friend as an agent or advisor in theinsurance company.
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Q7) Would you like to supplement your income by doing
any activity?
No. of Respondents
Percentage
Yes 42 38No 68 62Grand Total 110 100
Analysis: Out of the total 110 samples taken only 42 or 38%
respondents would like to supplement their income by doing any extra
activity. Rest all 68 respondents do not want to earn extra besides their
present income. Therefore there is a scope of about 38% for the
recruitment of respondents as an agent or advisor for the insurance
company.
Q8) If you get an opportunity to supplement your income
by providing financial Advice/Service, would you go for
it?
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No. of Respondents
Percentage
Yes 43 39
No 67 61
Grand Total 110 100
Analysis: Out of the total 110 samples taken only 39% respondents
would like to supplement their income by doing any financial
advice/service. Rest all 67 respondents do not want to supplement income
by providing financial services. Therefore there is a scope of about 39% for
the recruitment of respondents as an agent or advisor for the insurance
company.
Q9) How much time do you think that you can spare for
doing this additional activity that will fetch you an extra
income?
Averagemonthlyincome
No. of Respondents
Percentage
2 hrs per day 94 852-5 hrs perday
11 10
More than 5hrs per day
1 1
Less than 5 0 0
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hrs per week5-10 hrs perweek
0 0
More than 10hrs per week
4 4
Grand total 110 100
Analysis: Out of the total 110 samples taken 94 or 85% respondentswould be able to give 2 hours for an additional activity followed by 2-5 hrs
per day, 4respondents will be able to give more than 10 hours per week.
Therefore most suitable time assigned to do an additional activity will 2-5
hours.
Q10) What motivates you at your work place?
Averagemonthlyincome
No. of Respondents
Percentage
Appreciation 18 16Service 16 15Money 27 25Comfort 30 27
Others 19 17Grand total 110 100
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Analysis: Out of the total 110 samples taken 30 or 27% respondents
are mostly motivated by comfort at their workplace, 27 by money, 19 due
to other reasons ,18 by appreciation, and only16 by service. Therefore
comfort is the prime factor for employee’s motivation at workplace followed
by money.
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SUMMARY OF FIDINGSOn the overall basis of various parameters considered it can be found that:
• People with high turnover would likely to take up investment plans.
• People with monthly turn over 10000-25000 are most interested to supplement
their income by doing a financial activity.
• Respondents are not well aware of the role played by their friends or family
member working in insurance industry; which shows a lack of insurance
awareness amongst people.
• Lack of information about income opportunity in financial sector.
• 2 hrs would be the best suitable time to do a financial activity to supplement
income.
• Employees are highly motivated by comfort and money at workplace.
CONCLUSION
With the largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It’s a business
growing at the rate of 15-20 per cent annually . Together with banking
services, it adds about 7% to the country’s Gross Domestic Product
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(GDP).The gross premium collection is nearly 2% of GDP and funds
available with LIC for investments are 8% of the GDP.
Even so nearly 65% of the Indian population is without life insurance cover
while health insurance and non-life insurance continues to be belowinternational standards. A large part of our population is also subject to
weak social security and pension systems with hardly any old age income
security. This in itself is an indicator that growth potential for the insurance
sector in India is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development
and strengthens the risk taking ability of individuals. It is estimated that
over the next ten years India would require investments of the order of one
trillionUS dollars. The Insurance sector, to some extent, can enable
investments in infrastructure development to sustain the economic growth
of the country.
SUGGESTIONS AND
RECOMMENDATIONS
• Advertise about company and its product
• Motivates individuals to purchase products
• Create positive perception about insurance
• Promote insurance at college level and corporate houses
• Improve efficiency in operations
• Diversify product portfolio
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• Bring out policies with small premium
• Attract youth of India to insurance sector
•
Provide peaceful environment at workplace
• Provide high return investment plans
• Deliver good customer services
BIBLIOGRAPHY
1. www.hdfclife.com
2. www.licindia.com
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3. www.birlasunlife.com
4. www.icicipulife.com
5. www.bajajallianz.com
6. www.moneycontrol.com
7. www.irdaindia.com
8. www.google.com
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ANNEXURE
QUESTIONNAIRE
Name of the person contacted: Sex:Male/Female
Age:
Address
Status: Single/Married Contact no. :
Educational qualification: 10th std/12thstd /Graduation/Post Graduation
Occupation: Service/ Self employed/Student/Professional/House wife
Q1. For how long you are residing in this town?
Less than a yr/1-2 yrs/2-3 yrs/3yrs &above
Q2.How many people do you know well in the city?
Below 25/25-50/50-100/100 & above
Q3. What are your hobbies and interests?
Q4. What is your average monthly income?
Less than 5000/5000-10000/10000-20000/20000-25000/
25000-30000/30000-40000/40000-50000/50000 & above
Q5.Do you need to support anyone financially?[Yes/No]
Q6. If ‘yes’ please help us with details of family members who need to befinancially supported?
Q7. Do you know any of your family members or friends, who is working asAgent or Advisor
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for any insurance company?[Yes/No]
Q8. If ’yes’ do you know any idea about his /her role as an“Agent”/”Advisor”? [Yes/No]
Q9. Would you like to supplement your income by doing any activity?[Yes/No]
Q10. If ‘no’ please help us with the reason for saying so?
Q11. If you get an opportunity to supplement your income by providingfinancial Advice/Service, would you go for it?[Yes/No]
Q12. How much time do you think that you can spare for doing thisadditional activity that will fetch you an extra income?
2hrs per day/2-5 hrs per day/More than 5 hrs perday/ Less than 5 hrs
per week/5-10 hrs per week/ More than 10 hrsper week
Q13. What motivates you at your work place?Appreciation/Service/Money/Comforts in life/ Others
(Please specify)
Name of the surveyor:
Location:
Date:
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