ACKNOWLEDGEMENT

PROJECT REPORT

ON

HDFC STANDARD LIFE INSURANCE COMPANY

DOABA GROUP OF COLLEGES, GHATAUR, KHARAR (MOHALI)

BY:

MANDEEP SINGH

ROLL NO: 1205495

(Batch 2012-2015)

Submitted to Punjab technical university in partial fulfillment of the requirements of Bachelors of Business Administration (BBA)

DECLARATION

I, the undersigned, hereby declare that the project report entitled Study of HDFC STANDARD LIFE INSURANCE COMPANY submitted for the degree of bachelors of business administration, is a result of my own work and the project report has not formed the basis of the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or intuition for the award of any degree or diploma.

MANDEEP SINGH

(BBA 6TH semester)

Acknowledgement

If words are as a symbol of approval and token of appreciation then let the words lay the heralding role of expressing my gratitude and thanks.

I am indebted To Ms. Meenu Jaitly PRINCIPAL of Doaba group of colleges for giving me an opportunity to undertake the project.

I would like to place on record my sincere and whole hearted sense of gratitude and indebtedness to my learned guide, MISS. Simran Gill -who provide me all time help and guidance, continue interest and constant encouragement which led this project to its successful completion. It was his admiration and motivation that inculcated in me more enthusiasm and help me in treading the right line of action.

No appropriate words could be traced to convey my profound gratitude to my affectionate parents for their selfless devotion, moral, inspiration and affection which always helped me to face all odds successfully.

Above all, it is the grace of GOD that led and blessed me all the way in my life and will certainly help and guide me continuously. I pray my sincere, earnest and diligent obeisance to him.

MANDEEP SINGH

BBA 6TH semester

ROLL NO: 1205495

Doaba group of colleges, Kharar (mohali)

INDEX

INTRODUCTION...6

OBJECTIVES OF STUDY.8

COMPANY PROFILE9

FORM OF ORGANISATION.11

HISTORY OF INSURANCE.12

BANCASSURANCE14

PRODUCTS OF HDFC STANDARD LIFE INSURANCE15

BARRIERS TO ENTRY22

GROWTH POTENTIAL26

FUTURE TRENDS29

RESEARCH METHODOLOGY..27

ANALYSIS & FINDINGS OF SURVEY30

LIMITATIONS.34

CONCLUSION.35

RECOMMENDATIONS.36

QUESTIONNAIRE ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,37

BIBLIOGRAPHY.39

INTRODUCTION

BRIEF IDEA ABOUT THE PROJECT

The outlook of the modern day investors has undergone a dramatic change. In the changed fiscal scenario with drastic fall in the interest for investment and the volatile capital market with limited investment options, ULIP comes to the rescue of the prudent investors. Investment in insurance has become the style of the day. The individual looks at buying an insurance policy more of an investment, which comes with the additional benefits of life cover and tax benefit also.

Unit Linked plans provides one with not only an effective protection against individual investment risks and inflation but above all it brings along a long-term growth potential of financial means. Everyone decides on their own what is the right method of investment for them, which predetermines evaluation of deposited money.

OBJECTIVES OF STUDY

Exposure to financial Service sector particularly insurance and mutual funds sector.

The study of Insurance in India & Unit Linked Insurance Plans.

And gain the professional knowledge while working in corporate environment.

COMPANY PROFILEHDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry all-important factors to consider when choosing your insurer.

HDFC Limited

HDFC is Indias leading housing finance institution and has helped build more than 23,00,000 houses since its incorporation in 1977.

In Financial Year 2003-04 its assets under management crossed Rs.36,000Cr.

As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.

Rated AAA by CRISIL and ICRA for the 10th consecutive year

Stable and experienced management.

High service standards.

Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.

Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life group has been looking after the financial needs of customers for over 180 years.

It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs.

Its investment manager currently administers 125 billion in assets.

It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's.

Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006.

Form of Organisation

HDFC standard life insurance belongs to a life insurance sector in India.

Introduction

With such a large population and the untapped market area of this population, insurance happens to be a very big opportunity in India.

Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of the Indian population is without life insurance cover and the health insurance.

This is an indicator the growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation the government in 1993 to examine the various aspects of the industry constituted Malhotra committee. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the company was the main idea behind this reform.

A Brief History

The origin of insurance is very old. The time when we were not even born: man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any risk and uncertainty led to the origin of insurance.

The insurance came to India from UK: with the establishment of the Oriental Life Insurance Corporation in 1818.the Indian Life Insurance Company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breadth of the country. After the liberalization the entrance of foreign players has added to the competition in the market.

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. In 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. In 1972 The General Insurance Business (Nationalization) Act. 1972 nationalized the general insurance business in India with effect from 1st January 1973. it was after this that 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd.

CUSTOMER SERVICE

Consumers remain the most important center of the insurance sector. After the entry of foreign players the industry is facing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The one time monopoly of the LIC and its agents are now going through a thorough revision and training programmes to catch up with the other private players. Though lot is being done for the increased customer service and adding technology to it but there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.

BANCASSURANCE

India has an extensive bank network established over the years. What insurance companies have to do is just take advantage of the customers long-standing trust and relationships with banks. This is a mutually beneficial situation as banks can also expand their range of products on offer to customers, while the insurance company will also earn profits from the exposure. Another, advantage ids that banjks, with their network in rural areas, help to fulfill rural and social obligations stipulated by the Insurance Regulatory Development Authority (IRDA) recently. Insurance companies should see bancassurance as a tool for increasing their market penetration in India. It is also good for the one who sees bancassurance in terms of reduced price, high quality product and delivery at doorsteps. Everybody is a winner here. The creation of bancassurance operations has made an important impact on the financial services industry at large. This is though a new concept but it has gained a lot of importance in the industry at present and has a great future.

PRODUCTS

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

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

For organizations we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long-term value to the employees help in enhancing goodwill of the company.

Following are the major plans of HDFC:

Endowment plan.

Whole life plan

Pension plan

Childrens plan

Money back plan

ENDOWMENT PLANThe HDFCSL Endowment Assurance Plan gives you:

An ideal way to secure your long-term financial goals

Valuable protection to your family by way of lump sum payment in case of your unfortunate death within policy term

Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date

Very flexible benefit options and payment options

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

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

WHOLE LIFE PLAN

HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. This participating plan offers you the following benefits:

Whole of life plan aimed at providing long-term real growth of your money.

Single premium investment plan

In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments.

During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender.

PENSION PLAN

HDFC PERSONAL PENSION PLAN

We understand your need to build a secure future for yourself. Hence, the HDFC Personal Pension Plan is an insurance policy that is designed to provide a post - retirement income for life with the freedom to choose your retirement date.

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

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

Provides a post retirement income in your golden years

Gives you the flexibility to plan your retirement date

Gives you tax benefits on your premiums

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

Dont compromise on your self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Personal Pension Plan.

CHILDRENS PLAN

The HDFC Children's Plan gives you:

Invaluable financial support to your child

Helps you customize an ideal plan for your child

Provides you multiple options for multiple benefits

The HDFC Childrens Plan is designed to secure your childs future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The company to give you good long-term returns invests the premiums, paid by you. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See Bonuses for more details).

MONEY BACK PLAN

The HDFC Money Back Plan is a With Profit Plan that gives you:

A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your long- term as well as short-term financial goals

A lump sum payment on survival up to maturity date

Valuable protection to your family by way of lump sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payouts

Making the right kind of investment will enable you to achieve your objectives be it your immediate expenses or else securing your future financial needs. Our Money Back Plan gives you a wide range of terms and cash benefit schedule to choose from. A summary of Key Benefits including the cash lump sum payments, expressed as a percentage of Sum Assured is shown below:

Key Benefits

Total Policy Term

Survival Benefit

Death Benefit

5 Yrs.

10 Yrs.

15 Yrs.

20 Yrs.

25 Yrs.

30 Yrs.

Within Policy Term

10

40%

60% + Attaching Bonuses

-

-

-

-

100% Sum Assured + attaching bonuses (Over and above the earlier payouts).

15

30%

30%

40% + Attaching Bonuses

-

-

-

20

25%

25%

25%

25% + Attaching Bonuses

-

-

25

20%

20%

20%

20%

20% + Attaching Bonuses

-

30

15%

15%

15%

15%

15%

25% + Attaching Bonuses

Maturity Value

On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term.You can ensure your financial independence. And be able to live life on your own terms. Always.

BARRIERS TO ENTRY

Capital requirements

High gestation period

Access to distribution channels

Brand equity

Indian consumer psychology

Tax avoidance

Capital Requirements

The huge capital requirements pose a major barrier to entry in the insurance sector . These requirements can be attributed to the costs incurred in setting up your distribution network. To achieve economies of scale you would require a nationwide presence, unless you want to cater to a niche group, which would involve setting up a huge sales force.

High Gestation Period

On an average a player in the insurance sector would require around

7-10 years to break-even. This comparatively long gestation period would entail the player to have sufficiently deep pockets to bear the losses till the time he breaks even.

Access to Distributional Channels

Given the poor reach of the insurance companies amongst the Indian public especially in the rural sector the distribution channels adopted will determine the future growth of the industry. For the insurance industry to take off in a big way in India companies will have to adopt new and innovative distribution channels to be able to cover the vast majority of the Indian population which is still not covered by the insurance companies.

Brand equity

Customer loyalty in the insurance sector is very high, thus benefiting players whove already been there in the market for a long time. While going in for an insurance policy, the brand and the trust that it generates are essential criteria on which the customer makes his judgement. Thus a brand, which has been there for a long period of time and has managed to serve it customers well , would be in a position to leverage its brand equity.

Indian Consumer Psychology

The Indian customer, liken his global counterpart , buys policies for tax benefits and to ensure secure savings for the future. Although he is price sensitive , he still deserves value and sound services for his money.

Insurance as savings: There is reluctance amongst Indians to use insurance policies as a means of investment of their savings. Traditionally Indians have invested the bulk of their savings in bank fixed deposits followed by the capital markets in spite of the low returns offered by the banks and the large risk involved in trading in stocks. The changing mindset of the Indian public will be a key driver for growth in the liberalized era.

Insurance for Tax Avoidance:

The urban educated class of Indians traditionally looked at insurance as a tax avoidance tool. Mindsets are now changing, but purchase patterns are not. The months of February and March still are the busiest at LIC. The traditional hook of tax incentives and savings will take a long time to change. Private players need to step up their selling in terms of need and protection.

Due to low consumer awareness of the need for insurance and benefits attached to it, most of the insurance is still sold through agents. Other distribution channels like banc assurance are now being explored.

Growth potential of the Indian insurance marketIndia at a glance

Population: 1 Billion

Economy: 5th largest in the world in terms of Purchasing Power Parity (PPP)

GDP growth Rate: Over 6% per year on an average for the last decade

Savings Rate: Around 26% of GDP

Estimated middle class population: 300 Million

Insured population: 70 million only

Future Trends

The Insurance sector is set to see a whole lot of changes in the way business was traditionally done with new and innovative products, distribution networks , etc. Changes in the external environment for the life Insurance market will have to be suitably understood in order to avoid excessive selling and mis-selling out of over-enthusiasm.

New Products

Most of the insurance products offered by the traditional Indian players are outdated, as they are not suitable to the needs of the consumers. Hence, old as well as new insurers will be offering innovative products to the consumers. The consumers are particularly expecting good pension plans, health insurance, term insurance and Investment products like unit-linked insurance, from the life insurers. Similarly, the consumers expect innovative products from the general insurers for managing healthcare, property insurance, accident insurance and other products related to the personal line of insurance. The consumers also expect reduction in the premium of the insurance products as the mortality rate in India has come down by three times in the last 50 years.

Consumer Education

Very soon the market will be flooded with a large number of products by a fairly large number of insurers operating in the Indian market. Even with the limited range of traditional insurance products , the consumers are confused. Their confusion will further increase in the face of a large number of products in the market. The existing level of awareness of the consumers for insurance products is very low. This is because only 65 percent of the Indian population is literate. Even the educated consumers are ignorant about the various products of insurance. Moreover , there is a shortage of trained agents and brokers. It is necessary that all the insurers should undertake extensive plans for educating the consumers.

.

RESEARCH METHODOLOGYThe project is based on Insurance in India, Future of Insurance in India & unit linked insurance plan market in India for that , I prepared a questionnaire , based on which , I took personal interviews . I have also used information from different Websites, brochures of the organizations & articles from various newspapers.

The topics are dealt with in a general manner. There would be details, which could vary from company to company.

Overall, following tools were used to build this project:

Primary data:

a) Questionnaire.

b) Personal interview.

Secondary data

a) Websites.

b) Brochures.

c) Articles.

FINDINGS ANDANALYSIS OF SURVEY

Q1.

Well first foremost result that 87% of the people are looking for profitable opportunities to invest their money.

Ready To

Invest

77%

Not Ready

23%

Q2.

From survey tit was clear that about 9 % of the persons that were surveyed said that they would like to go for insurance policy , 10% were in favor of investment only, and about 81% people were interested in both insurance as well as investment policy.

Insurance

9%

Investment

10%

Both

81%

Q3.

Then it showed one of the most popular brand in the country is LIC it seems that about 40% of the people know about their products, than came the ICICI prudential, where only 25% of the people knew , although HDFC Standard Life Insurance as a starter have starting gaining some publicity but it is still not have came in focus, so is for the other brands .only 20% people knew about HDFC Standard Life Insurance products. BAJAAJ ALLIANZ accounts for 6% and BIRLA SUN LIFE accounts for 9%.

ICICI

Prudential

25%

HDFC

Standard

Life

20%

LIC

40%

BAJAAJ

Allianz

6%

BIRLA SUN

LIFE

9%

Q4.

It was also seen that still after 5 years of ULIP plans, a higher percentage of people are still not aware about them, only 15 % are aware of it. Most of people (about 46%) know about the traditional plan, 12% knows educational plan and 27% know about pension plan.

Educational

Plan

12%

ULIP

15%

Pension

Plan

27%

Traditional

Plan

46%

LIMITATIONS

1. Time was the biggest constraint as many times it was not possible to meet senior officials to collect such information.

2. There may be biases on the part of the Company Executive while providing the information

3. Respondents are not willing to provide information.

4. There are very limited latest information sources for such topic.

5. The information was collected in few offices only.

CONCLUSION

From this comparative study one can say that everyone has his / her own perception, when it comes to their priorities regarding the different features. Well one can say that deciding factor mainly depends upon perceiving criteria which is different for each and every person, it is also dependent upon buying capacity, risk taking ability, profession, age, dependability on members of the family, income and many more. So one cant conclude the only plan which one feel the best. I have mainly compared and listed the features may be better than the others.

RECOMMENDATIONS

1. Promotion of BrandHDFC SLIC has a good reputation among the people. But to increase market share it needs to take some brand building measures such as advertising, brand promotion etc.

2. Boosting customer Base what has been seen from the analysis of data collected from the respondents is that there are a lot of people who are seriously thinking of buying a policy from HDFC SLIC but are tentative due to some reason. This is the target market, which the company should aim for.

3. Variety of PlansHDFC SLIC has a substantial variety of plans available but due to the fact that insurance market is getting competitive the company should keep re-inventing itself from time to time.

4. Availability of Riders Riders are extremely important for each and every plan as it gives an additional incentive to the customer and also offers him more flexibility. Thus it is recommended that the company strive to offer riders on all plans.

Questionnaire

Name

Address ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Contact no ______

Gender ______

1) Are you looking for some options to invest your Money?

a) Yes b) No

2) Out of these which are the priority for you at the moment?

a) Insurance b) Investment

c) Both of the above

3). What are the various brands you are aware of:

a) ICICI prudential b) HDFC standard life c) LIC d) BAJAAJ Allianz e) BIRLA SUN LIFE f) Other

4). Which of these plans are YOU aware of?

a) ULIP Plan b) Traditional Plan c) Educational Plan

d) Pension Plan e) Any other..

5). Which type of benefit you will see to invest your money in Insurance Sector?

a) Low Premium b) Short Time period c) Long Time Period d) Tax saving

e) Insurance f) Interest benefits g) any other

6). From where do you come to know about these brands?

a) Internet b) News paper c) Friends

d) TV e) Any other.

7) How much do you plan to invest your money in a Investment Plan?

8) What profession are you in: -

a) Business b) Service c) self employed d) Any other

BIBLIOGRAPHY

INTERNET Websites

www.hdfcinsurance.com

www.qooqle.com

www.bimaquru.com

www.insurance.com

www.mibknowledge.com

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