INTRODUCTION1.1 INTRODUCTION.

The aim of the study is to understand the attitude of the customers towards the insurance

policies .the study apart from knowing the customers attitude it also focus the scope and

growth of insurance sector in Chennai where the study is being conducted. The project

focusing on HDFC insurance company’s branching Kasaragod ensured to successfully

take up the research on knowing the customer and the reviews about the life insurance

sector.

The primary aim of the study is to get a deep insight into the attitude of the customer

towards insurance plans. The very necessity of taking up this case is that life insurance

companies are slowly moving away from the usual traditional insurance plan and

focusing more on investments plans.

This study will help us to get a better picture as to what customer perceives about

insurance plans and their awareness about the same. This study will help us in

understanding what the customers prefer really through these insurance plans. Also if the

customers prefer these insurance plans, the study brings to light the customer

expectations about the same.

The sample was decided based on simple random sampling method. The responses were

recorded by conducting a survey with the help of a questionnaire. The questionnaire has

been designed in such a way so as to bring out the most accurate data, which will enable

the study to get the closest vicinity of its objectives.

The data collected from the survey has been appropriately analyze and has been

interpreted in a meaningful way to offer some consideration suggestions and

recommendations. The data has also been put through a series of statistical tools that will

close down the distance on the objective of the study.

Several measures have been taken to keep the study on course without any deviations.

There are certain limitations to the study that involved two primary factors –cost and

time. Yet the study has been done reaching close to the greatest possible extent of its

primary objective.

[1]

1.2 SIGNIFICANCE OF THE STUDY

The project was an attempt to explore the customer perception of HDFCL in Kasaragod.

The project started after knowing all the relevant information about the company

insurance product and policies and its competitors insurance products in accordance with

the prescribed schedule mentioned by management of HDFCL. The project covered

Kasaragod area. In this process I met 50 persons to collect information about HDFCL. I

collected information for the company by questionnaire method. During my work I

found the perception of the people about insurance, what they desire from it, and if they

will work as financial consultant than what they want from the organization.

STATEMENT OF THE PROBLEM

The project lays emphasis on the perception level among customers about the insurance

plans offered by HDFC Life Insurance Company. It further brings into light what the

customers feel about these insurance plans. The study focuses on the factors that are

related to the objective of the study. The main focus is on the customer perception of

insurance and how much they considered insurances important for ones life. To get a

deep insight into the research area, the customers perception level along with the

awareness factor associated with the life insurance plans are also looked at.

1.3 OBJECTIVE OF THE STUDY

The main purpose of the project is to do comparative analysis of different health

insurance products, check the awareness level and perception of insurance by the

individual. The project would also help in understanding preference of people regarding

private and public life insurance.

Consumers view about the life Insurance.

To carry out a comparative analysis of the various life insurance with the

comparison to HDFC life

To know about the types of insurance policy taken by consumer.

To find out the features and benefits of life insurance.  

To find out the awareness level of life insurance.

To know about the share of public insurance in insurance sector

To find out the customer perception towards HDFC life insurance.

To recommend improvement in the different sector of life insurance [2]

1.4 METHODOLOGY

Data collection

For data collection, I developed a well defined questionnaire as a research instrument,

consisting questions aimed to measure the consumer perception about HDFC life

insurance, their views and comments about Company’s structure. I conducted

unstructured interviews (sample size) of 50 persons of different age group. All the data

generated was primary data that was generated from different peoples of age group.

Primary data:

 Individual respondents, Insurance Agents were personally visited and interviewed. They

were the main source of Primary data. The method of collection of primary data was

direct personal interview through a structured questionnaire.

Secondary Data: 

It was collected from internal sources. The secondary data was collected on the basis of

organizational file, official records, newspapers, magazines, management books,

preserved information in the company’s database and website of the company.

1.5 SCOPE OF STUDY 

For this project, I have done my work through telephone calls, questionnaire, and

contacting persons by going to their home. I found that most of person can join insurance

company for saving taxes, unlimited earning, life time earning with little effort, which

will give him back support as a HEAD of the family in the diverse situation. This project

will help to understand the current market scenario and marketing in stiff competition.

Being a student of management I can draw the relevant conclusion from the survey and

give the appropriate suggestion to the organization. The company can take decision

according to the suggestions and it will provide better experience to the students for their

bright carrier. My project will provide help in these matters which are thus:-

Analyze the people perception about HDFCL 

To enhance the distribution channel in the selling of insurance Policies.

To find out the competitive edge of the company over the Competitors.

[3]

1.6 SCHEME OF CHAPTERISATION

The project is divided into five chapters. The first chapter deals with introduction.

Theoretical background and product portfolios are dealt in the second chapter. The third

chapter contains a profile of HDFC Life and the fourth chapter deals with analysis and

interpretation of data and the fifth chapter contains findings and suggestions.

1.7 LIMITATIONS OF THE STUDY

The study is confined to Kasragod only

Sample size is restricted to 50 due to time limit

Responses from respondents may not be accurate; they may be partial, biased.

Inferences derived may not be applicable to all parts of the country, since the area

selected was Kasaragod

[4]

THEORETICAL BACKGROUND OF THE STUDY

REVIEW OF LITERATURE

Perception (from the Latin perception, percipio) is the process of attaining awareness or

understanding of the environment by organizing and interpreting sensory information . All

perception involves signals in the nervous system, which in turn result from physical

stimulation of the sense origination. For example, vision involves light striking the

retinas of the eyes, smell is mediated by odor molecules and hearing involves pressure

waves. Perception is not the passive receipt of these signals, but can be shaped by

learning, memory and expectation Perception involves these "top-down" effects as well

as the "bottom-up" process of processing sensory inputs he "bottom-up" processing is

basically low-level information that's used to build up higher-level information (i.e. -

shapes for object recognition). The "top-down" processing refers to a person's concept

and expectations (knowledge) that influence perception. Perception depends on complex

functions of the nervous system, but subjectively seems mostly effortless because this

processing happens outside conscious awareness.

Since the rise of experimental psychology in the late 19th Century, psychology's

understanding of perception has progressed by combining a variety of techniques.

Psychophysics measures the effect on perception of varying the physical qualities of the

input. Sensory neuroscience studies the brain mechanisms underlying perception.

Perceptual systems can also be studied computationally, in terms of the information they

process. Perceptual issues in philosophy include the extent to which sensory qualities

such as sounds, smells or colors exist in objective reality rather than the mind of the

perceiver. Although the senses were traditionally viewed as passive receptors, the study

of illusions and ambiguous images has demonstrated that the brain's perceptual systems

actively and pre-consciously attempt to make sense of their input. There is still active

debate about the extent to which perception is an active process of hypothesis testing,

analogous to science or whether realistic sensory information is rich enough to make this

process unnecessary. [5]

The perceptual systems of the brain enable individuals to see the world around them as

stable, even though the sensory information may be incomplete and rapidly varying.

Human and animal brains are structured in a modular way, with different areas

processing different kinds of sensory information. Some of these modules take the form

of sensory maps, mapping some aspect of the world across part of the brain's surface.

These different modules are interconnected and influence each other. For instance, the

taste is strongly influenced by its odor. Several sequential factors influence our

perception. Exposure involves the extent to which we encounter a stimulus.  For example,

we are exposed to numerous commercial messages while driving on the freeway:  bill

boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at

shopping malls that we pass.  Most of this exposure is random—we don’t plan to seek it

out.  However, if we are shopping for a car, we may deliberately seek out advertisements

and “tune in” when dealer advertisements come on the radio.

Exposure is not enough to significantly impact the individual—at least not based on a

single trial (certain advertisements, or commercial exposures such as the “Swoosh” logo,

are based on extensive repetition rather than much conscious attention).  In order for

stimuli to be consciously processed, attention is needed.  Attention is actually a matter of

degree—our attention may be quite high when we read directions for getting an income

tax refund, but low when commercials come on during a television program.  Note,

however, that even when attention is low, it may be instantly escalated—for example, if

an advertisement for a product in which we are interested comes on. Interpretation

involves making sense out of the stimulus. 

Weber’s Law suggests that consumers’ ability to detect changes in stimulus intensity

appear to be strongly related to the intensity of that stimulus to begin with.  That is, if you

hold an object weighing one pound in your hand, you are likely to notice it when that

weight is doubled to two pounds.  However, if you are holding twenty pounds, you are

unlikely to detect the addition of one pound—a change that you easily detected when the

initial weight was one pound.  You may be able to eliminate one ounce from a ten ounce

container, but you cannot as easily get away with reducing a three ounce container to two

(instead, you must accomplish that gradually

[6]

Several factors influence the extent to which stimuli will be noticed.  One obvious issue

is relevance.  Consumers, when they have a choice, are also more likely to attend to

pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are also

likely to get attention—thus, many very irritating advertisements are remarkably

effective).  One of the most important factors, however, is repetition.  Consumers often

do not give much attention to a stimuli—particularly a low priority one such as an

advertisement—at any one time, but if it is seen over and over again, the cumulative

impact will be greater.

Surprising stimuli are likely to get more attention—survival instinct requires us to give

more attention to something unknown that may require action.  A greater contrast

(difference between the stimulus and its surroundings) as well as greater prominence

(e.g., greater size, center placement) also tend to increase likelihood of processing.

Subliminal stimuli.  Back in the 1960s, it was reported that on selected evenings, movie

goers in a theater had been exposed to isolated frames with the words “Drink Coca Cola”

and “Eat Popcorn” imbedded into the movie.  These frames went by so fast that people

did not consciously notice them, but it was reported that on nights with frames present,

Coke and popcorn sales were significantly higher than on days they were left off.  This

led Congress to ban the use of subliminal advertising.  First of all, there is a question as to

whether this experiment ever took place or whether this information was simply made

up.  Secondly, no one has been able to replicate these findings.  There is research to show

that people will start to giggle with embarrassment when they are briefly exposed to

“dirty” words in an experimental machine.  Here, again, the exposure is so brief that the

subjects are not aware of the actual words they saw, but it is evident that something has

been recognized by the embarrassment displayed.

PERCEPTION

Perception is the process by which organisms interpret and organize sensation to produce

a meaningful experience of the world. Sensation usually refers to the immediate,

relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose,

tongue, or skin. Perception, on the other hand, better describes one's ultimate experience [7]

of the world and typically involves further processing of sensory input. In practice,

sensation and perception are virtually impossible to separate, because they are part of one

continuous process.

Thus, perception in humans describes the process whereby sensory stimulation is

translated into organized experience. That experience, or percept, is the joint product of

the stimulation and of the process itself. Relations found between various types of

stimulation (e.g., light waves and sound waves) and their associated percepts suggest

inferences that can be made about the properties of the perceptual process; theories of

perceiving then can be developed on the basis of these inferences. Because the perceptual

process is not itself public or directly observable (except to the perceiver himself, whose

percepts are given directly in experience), the validity of perceptual theories can be

checked only indirectly.

Historically, systematic thought about perceiving was the province of philosophy.

Philosophical interest in perception stems largely from questions about the sources and

validity of what is called human knowledge (epistemology). Epistemologists ask whether

a real, physical world exists independently of human experience and, if so, how its

properties can be learned and how the truth or accuracy of that experience can be

determined. They also ask whether there are innate ideas or whether all experience

originates through contact with the physical world, mediated by the sense organs.

As a scientific enterprise, however, the investigation of perception has especially

developed as part of the larger discipline of psychology. For the most part, psychology

bypasses the questions about perceiving raised by philosophy in favor of problems that

can be handled by its special methods. The remnants of such philosophical questions,

however, do remain; researchers are still concerned, for example, with the relative

contributions of innate and learned factors to the perceptual process.

Such fundamental philosophical assertions as the existence of a physical world, however,

are taken for granted among most scientific students of perceiving. Typically, researchers

in perception simply accept the apparent physical world particularly as it is described in

those branches of physics concerned with electromagnetic energy, optics, and mechanics.

The problems they consider relate to the process whereby percepts are formed from the

[8]

interaction of physical energy (for example, light) with the perceiving organism. Of

further interest is the degree of correspondence between percepts and the physical objects

to which they ordinarily relate.

In philosophy, psychology, and cognitive science, perception is the process of attaining

awareness or understanding of sensory information. The word "perception" comes from

the Latin words perceptio, percipio, and means "receiving, collecting, action of taking

possession, apprehension with the mind or senses.

Perception is one of the oldest fields in psychology. The oldest quantitative law in

psychology is the Weber-Fetcher law, which quantifies the relationship between the

intensity of physical stimuli and their perceptual effects. The study of perception gave

rise to the Gestalt school of psychology, with its emphasis on holistic approach.

Types of Perception:-

Two types of consciousness are considerable regarding perception:

Phenomenal (any occurrence that is observable and physical) and

Psychological.

The difference every sighted person can demonstrate to him- or herself is by the simple

opening and closing of his or her eyes: phenomenal consciousness is thought, on average,

to be predominately absent without senses such as sight. Through the full or rich

sensations present in senses such as sight, nothing by comparison is present while the

senses are not engaged, such as when the eyes are closed. Using this precept, it is

understood that, in the vast majority of cases, logical solutions are reached through

simple human sensation. The analogy of Plato's Cave was coined to express these ideas.

Passive perception can be surmised as the following sequence of events:--

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

Although still supported by mainstream philosophers, psychologists and neurologists,

this theory is nowadays losing momentum. The theory of active perception has emerged

[9]

from extensive research of sensory illusions, most notably the works of Richard L.

Gregory. This theory, which is increasingly gaining experimental support, can be

surmised as dynamic relationship between "description" (in the brain) ↔ senses ↔

surrounding, all of which holds true to the linear concept of experience.

Perception and reality

In the case of visual perception, some people can actually see the percept shift in their

mind's eye. Others, who are not picture thinkers, may not necessarily perceive the 'shape-

shifting' as their world changes. The 'simplistic' nature has been shown by experiment: an

ambiguous image has multiple interpretations on the perceptual level. The question, "Is

the glass half empty or half full?" serves to demonstrate the way an object can be

perceived in different ways. Just as one object can give rise to multiple percepts, so an

object may fail to give rise to any percept at all: if the percept has no grounding in a

person's experience, the person may literally not perceive it.

The processes of perception routinely alter what humans see. When people view

something with a preconceived concept about it, they tend to take those concepts and see

them whether or not they are there. This problem stems from the fact that humans are

unable to understand new information, without the inherent bias of their previous

knowledge. A person’s knowledge creates his or her reality as much as the truth, because

the human mind can only contemplate that to which it has been exposed. When objects

are viewed without understanding, the mind will try to reach for something that it already

recognizes, in order to process what it is viewing. That which most closely relates to the

unfamiliar from our past experiences, makes up what we see when we look at things that

we don’t comprehend.

This confusing ambiguity of perception is exploited in human technologies such as

camouflage, and also in biological mimicry, for example by European Peacock

butterflies, whose wings bear eye markings that birds respond to as though they were the

eyes of a dangerous predator. Perceptual ambiguity is not restricted to vision. For

example, recent touch perception research Robles-De-La-Torre & Hayward 2001 found

that kinesthesia based haptic perception strongly relies on the forces experienced during

touch.

[10]

Cognitive theories of perception assume there is a poverty of stimulus. This (with

reference to perception) is the claim that sensations are, by themselves, unable to provide

a unique description of the world. Sensations require 'enriching', which is the role of the

mental model. A different type of theory is the perceptual ecology approach of James J.

Gibson. Gibson rejected the assumption of a poverty of stimulus by rejecting the notion

that perception is based in sensations. Instead, he investigated what information is

actually presented to the perceptual systems. He and the psychologists who work within

this paradigm detailed how the world could be specified to a mobile, exploring organism

via the lawful projection of information about the world into energy arrays. Specification

is a 1:1 mapping of some aspect of the world into a perceptual array; given such a

mapping, no enrichment is required and perception is direct perception.

Preconceptions can influence how the world is perceived. For example, one classic

psychological experiment showed slower reaction times and less accurate answers when

a deck of playing cards reversed the color of the suit symbol for some cards (e.g. red

spades and black hearts).

There is also evidence that the brain in some ways operates on a slight "delay", to allow

nerve impulses from distant parts of the body to be integrated into simultaneous signals.

Perception-in-action

An ecological understanding of perception derived from Gibson's early work is that of

"perception-in-action", the notion that perception is a requisite property of animate

action; that without perception action would be unguided, and without action perception

would serve no purpose. Animate actions require both perception and motion, and

perception and movement can be described as "two sides of the same coin, the coins

action". Gibson works from the assumption that singular entities, which he calls

"invariants", already exist in the real world and that all that the perception process does is

to home in upon them. A view known as constructivism (held by such philosophers as

Ernst von Glasersfeld ) regards the continual adjustment of perception and action to the

external input as precisely what constitutes the "entity", which is therefore far from being

invariant.

[11]

Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic

necessity to allow an initial measure of understanding to be established prior to the

updating that a statement aims to achieve. The invariant does not and need not represent

an actuality, and Glasersfeld describes it as extremely unlikely that what is desired or

feared by an organism will never suffer change as time goes on. This social

constructionist theory thus allows for a needful evolutionary adjustment.

A mathematical theory of perception-in-action has been devised and investigated in many

forms of controlled movement, and has been described in many different species of

organism using the General Taw Theory. According to this theory, taw information, or

time-to-goal information is the fundamental 'percept' in perception.

Theories of Perception

Two major classes:

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

to our internal representations.

Top-down: perception starts with a set of primitives, but our perceptual

experience is influenced by higher-level processes, such as knowledge and

context.

Bottom-up theory

All bottom-up theories rely on the notion that perception builds upwards from a

foundation of primitives to a representation our cognitive system can use. This takes

place without any influence from higher cognitive processes.

Five main theories are as follows:-

Direct perception

Precursor to behaviorism ó Perception is a direct result of stimulus energy affecting

receptor cells. No higher cognitive processes or internal representations are necessary

Template/Exemplar theory

[12]

We store examples of all the objects we have seen as exemplars or templates. We

compare a perceived object to this set of exemplars until we find a match.

Proto type theory

Instead of storing many exemplars or rigid templates, we store a prototype, which is kind

of like the average of an object. We compare a perceived object to these prototypes until

we find the closest match.

Feature theory

Perception starts with the identification of basic features that are put together into more

complex objects, which are put together into more complex objects, etc. until we identify

and object. Example; pandemonium.

Structural description theory

Kind of like a three-dimensional version of feature theory, where rather than having lines

and corners as the basic features, simple geometric shapes, called geons, are the basic

features. We recognize objects by matching the geons we are looking at to the stored

goons in memory.

Top-down theories

Top-down theories posit varying degrees of influence of higher cognitive processes on

what we actually perceive. The primary example of this is the effect of context on

perception, such as in the Word Superiority Effect.

The history of Indian insurance industry

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed

in primitive men also. They too sought to avert the evil consequences of fire and flood

and loss of life and were willing to make some sort of sacrifice in order to achieve

security. Though the concept of insurance is largely a development of the recent past,

particularly after the industrial era – past few centuries – yet its beginnings date back

almost 6000 years.

[13]

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the

Oriental Life Insurance Company. First attempts at regulation of the industry were made

with the introduction of the Indian Life Assurance Companies Act in 1912. A number of

amendments to this Act were made until the Insurance Act was drawn up in 1938.

Noteworthy features in the Act were the power given to the Government to collect

statistical information about the insured and the high level of protection the Act gave to

the public through regulation and control. When the Act was changed in 1950, this meant

far reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in such

companies to prevent dominant control (to protect the public from any adversarial

policies from one single party), stricter control on investments and, generally, much

tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance

companies. Business was heavily concentrated in urban areas and targeted the higher

echelons of society. “Unethical practices adopted by some of the players against the

interests of the consumers” then led the Indian government to nationalize the industry. In

September 1956, nationalization was completed, merging all these companies into the so-

called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the

industry fairness, solidity, growth and reach.”

Insurance may be described as a social device to ensure protection of economic value of

life and other assets. Under the plan of insurance, a large number of people associate

themselves by sharing risks attached to individuals. The risks, which can be insured

against, include fire, the perils of sea, death and accidents and burglary. Any risk

contingent upon these, may be insured against at a premium commensurate with the risk

involved. Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of premium by the insured, the

insurers pay the financial losses suffered by the insured as a result of the occurrence of

unforeseen events. The term "risk" is used to describe the possibility of adverse results

flowing from any occurrence or the accidental happenings, which produce a monetary

loss.

[14]

Insurance is a pool in which a large number of people exposed to a similar risk make

contributions to a common fund out of which the losses suffered by the unfortunate few,

due to accidental events, are made good. The sharing of risk among large groups of

people is the basis of insurance. The losses of an individual are distributed over a group

of individuals.

Definitions: 

General definition:

In the words of John Magee, “Insurance is a plan by themselves which large number of

people associate and transfer to the shoulders of all, risks that attach to individuals.”

Fundamental definition:  

In the words of D.S. Hansel, “Insurance accumulated contributions of all parties

participating in the scheme.”

Contractual definition:

In the words of Justice Tindal, “Insurance is a contract in which a sum of money is paid

to the assured as consideration of insurer’s incurring the risk of paying a large sum upon

a given contingency.”

Characteristics of insurance

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of people insured

against similar risk.

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

number of people.

The insurance is a plan in which the insured transfers his risk on the insurer.

[15]

Insurance is a legal contract which is based upon certain principles of insurance

which includes utmost good faith, insurable interest, contribution, indemnity, causes

proximal, subrogation, etc.

The scope of insurance is much wider and extensive.

Functions of insurance:

Primary functions:

1. Provide protection: - Insurance cannot check the happening of the risk, but can

provide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial losses of few

among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals to adopt

suitable device to prevent unfortunate consequences of risk by observing safety

instructions.

2. Small capital to cover large risks: - Insurance relives the businessman from security

investment, by paying small amount of insurance against larger risks and uncertainty.

3. Contributes towards development of larger industries.  

Other Function:

Means of savings and investment:

Insurance companies are business houses. The product they sell is financial protection.

To succeed and survive, they must cover their costs, which include payments to cover the

losses of policyholders, as well as sales and administrative expenses, taxes and dividends.

Insurance companies have two sources of income for covering these costs:

[16]

Premiums and

Investment income.

The premiums are collected on a regular basis and invested in Government Bonds, Gilt,

stocks, mutual funds, real estates and other conservative avenues. However, investment

income depends on market conditions, interest rates, economy etc. and varies from year

to year. Because of the uncertainty associated with the investment income, insurance

companies must generate enough income from premiums to cover the bulk of their

expenses.

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

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life 'Insurance Company

started 'Its business,

1912: The Indian 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 pubic.

1956: 245 Indian and foreign insurance and provident societies are 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 chores from the Government of India.

Liberalization of Indian Insurance

1994: Insurance sector invited private participation to induce a spirit of competition

amongst the various insurers and. to provide a choice to the consumers.

1997: Insurance regulator IRDA was set up as there felt the Feed:

[17]

To set up an independent regulatory body, that provides greater autonomy to insurance

companies in order to improve their performance, In the first year of insurance market

liberalization (2001) as much as 16 private sector companies including joint ventures

with leading foreign insurance companies have entered the Indian insurance sector. Of

this, 10 were under the life insurance category and six under general insurance. Thus in

all there are 25 players (12-life insurance and l3-general insurance) in the Indian insurance

industry till date.

Players in Indian insurance industry

Life insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurance Corporation of India (LIC)

General insurers:

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

Reinsure

GIC had four subsidiary companies, namely with effect from Dec'2000, these subsidiaries

have been de-linked from the parent company and made as independent insurance

companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

Yr: 2000-2007: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:

Table No. 2.1. Insurance industry in the year 2009-10[18]

Adva

ntag es of

life

insurance

1. It is superior to an ordinary saving plan: - Unlike other saving plans, if affords full

protection against risk of death. In case of death, the full sum assured is made available

under a life assurance policy; whereas under saving scheme the total accumulated saving

alone will be available. [19]

Sly No. Name of the Company

1 Max New York Life Insurance Co. Ltd.

2 HDFC Standard Life Insurance Company Ltd.

3 ICICI Prudential Life Insurance Company Ltd.

4 Om Kodak Mahindra Life Insurance Co. Ltd.

5 Birla Sun Life Insurance Company Ltd.

6 Tata AIG Life Insurance Company Ltd.

7 SBI Life Insurance Company Limited

8 ING Visa Life Insurance Company Private Limited

9 Allianz Bajaj Life Insurance Company Ltd.

10 MetLife India Insurance Company Pvt. Ltd.

11 Reliance Life Insurance Company Ltd.

12 Shiras Life Insurance Company Ltd.

13 Sahara India Life Insurance Company Ltd.

14 Bharti AXA Life Insurance Company Ltd.

15 Aviva Life Insurance Company Ltd.

2. Easy settlement & protection against creditors: - The life assured can name

person(s) called Nominee to whom the policy money would be payable in the event of his

death. The proceeds of a life policy can be protected against the claim of the creditors of

the life assured by effecting a valid assignment of the policy.

3. Ready marketability & suitability for quick borrowing: - After an initial period, if

the policyholder finds him unable to continue payment of premiums, he can surrender the

policy for a cash sum. Alternatively, he can tide over a temporary difficulty by taking

loan on the sole security of the policy without delay.

4. Tax Relief: - The Indian Income-Tax allows deduction of certain portion of the

taxable income, which is diverted to payment of life insurance premiums from the total

income tax liability..

Need for insurance

To provide cash to meet various routine expenses of the family on or immediately

after the death of the income earner of the family.

To preserve the family’s accustomed standard of living ever after the death of the

breadwinner.

To provide continuous flow of funds for the living spouse.

To allocate income funds for the children’s education.

To provide a retirement income throughout old age.

To provide a reliable savings plan for the future.

To supplement income when earning power is reduced or eroded by illness,

accident or any handicap.

To furnish surplus earnings for the investors should disaster strike.

IRDA (Insurance Regulatory and Development Authority)

[20]

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act

as a strong and powerful supervisory and regulatory authority for insurance. Post

nationalization, the role of Controller of Insurance diminished considerably in

significance since the Government owned the insurance companies. But the scenario

changed with the private and foreign companies foraying in to the insurance sector. This

necessitated the need for a strong, independent and autonomous Insurance Regulatory

Authority was felt. As the enacting of legislation would have taken time, the then

Government constituted through a Government resolution an Interim Insurance

Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for

the establishment of an Authority to protect the interests of holders of insurance policies,

to regulate, promote and ensure orderly growth of the insurance industry 17 and for

matters connected therewith or incidental thereto and further to amend the Insurance Act,

1938, the Life Insurance Corporation Act, 1956 and the General insurance Business

(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of

India (for life insurance business) and General Insurance Corporation and its subsidiaries

(for general insurance business).

The act extends to the whole of India and will come into force on such date as the Central

Government may, by notification in the Official Gazette specify. Different dates may be

appointed for different provisions of this Act. The Act has defined certain terms; some of

the most important ones are as follows:

Appointed day means the date on which the Authority is established under the act.

Authority means the established under this Act.

Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up

by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd

January, 1996.

Words and expressions used and not defined in this Act but defined in the

[21]

Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General

Insurance

Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to

them in those Acts.

A new definition of "Indian Insurance Company" has been inserted. "Indian insurance

company" means any insurer being a company

(a) Which is formed and registered under the Companies Act, 1956

(b) In which the aggregate holdings of equity shares by a foreign company, either by

itself or through its subsidiary companies or its nominees, do not exceed twenty-six

percent, paid up capital in such Indian insurance company.

(c) Whose sole purpose is to carry on life insurance business, general insurance business

or re-insurance business?

Current scenario

Liberalization commitments of the country to help in disciplining future

economic policies will include the insurance reforms. When the world over ,

insurance , markets have been opened up, India cannot remain in isolation.

Globalization is the new economic reality, which is here to stay, heralding a

new era of insurance in India. With the opening of the insurance industry, India

stands to gain the following major advantages:

Globalization will provide improved opportunities to the customers for better

products, with more reasonable and affordable pricing.

The customer will get quicker servicing.

It will enhance the savings rate.

Long-term funds for infrastructure development will be available to the country.

It will secure for India larger inflows of foreign capital needed to sustain our GDP

growth.

[22]

COMPANY PROFILE

HDFCL is one of India’s leading private insurance companies. It offers both individual

and group insurance solution. It is a joint venture between HDFC and a group of

company of Standard Life.

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a

joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.)

India and UK based Standard Life Company. Both the joint venture partners being one of

the leaders in their respective areas came together in this 81.4:18.6 joint Venture to form

HDFC standard life insurance company limited.

The MD and CEO of HDFC Life Mr. Deepak Satwalekar, has given the company new

directions and has helped the company achieve the status it currently enjoys. HDFC

Standard Life brings to you a whole range of insurance solutions be it group or individual

or NAV services for corporations; they can be easily customized as per specific needs.

HDFC Standard Life Insurance India boasts of covering around 8.7 lakhs lives by

March'2007. The gross income standing at a whopping Rs. 2,856 cores, HDFC Standard

Life Insurance Corporation is sure to become one of the leaders and the first Preference

for any life insurance customer.

The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC

Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Sarawat Bank

and Bajaj Capital.

The premium payment options available to the customers vary from online payment to

direct desk payments at the HDFC Standard Life Branches, by courier services or in drop

boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or

standing instruction mandate. HDFC Standard Life Insurance Company is a customer

oriented corporation with an aim of complete customer satisfaction.

HDFC Standard Life first came together for a possible joint venture, to enter the Life

Insurance market, in January 1995. It was clear from the outset that both companies

shared similar values and beliefs and a strong relationship quickly formed. In October

[23]

1995 the companies signed a 3 year joint venture agreement. Around this time Standard

Life purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and

ongoing delays in getting the IRDA (Insurance Regulatory and Development authority)

Act passed in parliament. Despite this both companies remained firmly committed to the

venture. In October 1998, the joint venture agreement was renewed and additional

resource made available. Around this time Standard Life purchased 2% of Infrastructure

Development Finance Company Ltd. (IDFC). Standard Life also started to use the

services of the HDFC Treasury department to advise them upon their investments in

India.

Towards the end of 1999, the opening of the market looked very promising and both

companies agreed the time was right to move the operation to the next level. Therefore,

in January 2000 an expert team from the UK joined a handpicked team from HDFC to

form the core project team, based in Mumbai. 

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in

HDFC Bank. In a further development Standard Life agreed to participate in the Asset

Management Company promoted by HDFC to enter the mutual fund market. The Mutual

Fund was launched on 20th july 2000. Incorporation of HDFC Standard Life Insurance

Company Limited: The company was incorporated on 14th August 2000 under the name

of HDFC Standard life insurance company limited. Their ambition from the beginning

was to be the first private company to re-enter the life insurance market in India. On the

23rd of October 2000, this ambition was realized when HDFC Standard Life was the first

life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard

Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is

the maximum investment allowed under current regulations. HDFC and Standard Life

have a long and close relationship built upon shared values and trust. The ambition of

HDFC Standard Life is to mirror the success of the parent companies and be the yardstick

by which all other insurance companies in India are measured.

[24]

HDFC Standard Life Insurance Company Limited is one of India's leading private life

insurance companies offering a range of individual and group insurance solutions. It is a

joint venture between Housing Development Finance Corporation Limited (HDFC Ltd),

India's leading housing finance institution and Standard Life plc, the leading providers of

financial services in the United Kingdom.

HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC Standard Life's Product portfolio comprises solutions, which meet various

customer needs such as Protection, Pension, Savings, and Investment. Customers have

the added advantage of customizing the Plans, by adding optional benefits called riders,

at a nominal price. The company currently has 21 retail and 6 group products in its

portfolio.

HDFC Standard Life maintains very high professional standards during product offerings

by providing sound financial advice, efficient post-sale service, and immaculate financial

security. Ongoing training for conventional products, and specialized training, for unit-

linked products, for its financial consultants, has also helped its customers choose the

product, best suited for their needs.

HDFC Standard Life operates across more than 726 cities and towns of the country

supported by its strong network of more than 145,000 Financial Consultants. HDFC Life

also has more than 383 corporate agents and other sales intermediaries including banks

for distribution of insurance products.

HDFC LIFE VISION AND WHERE

Vision of HDFC life

The most successful and admired life insurance company, which mean that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set the

standards in the industry. In short, ³The most obvious choice for all for retention in the

market and highest market share; we need trust of our customer. The customer should

trust on our policies, services, employees and they should be friendly with us. It wants to

live in the eye and heart of the customer. It wants to give them the easiest deal so that

they can understand the terms and policies. As we know that profit is the main aim of any

business but it think not only about his profit but also profit of the customer. It wants to [25]

be the choice of all people on the basis of trust of customer, delivering high value to the

customer, and deliver of best value of the money. Value that will be observed while we

work with HDFC.

1. Integrity: HDFCL believes in honest and trustfulness in every action Transparency in

dealing with customer. It is stick to principles irrespective of outcome. When we work in

HDFCL then we observed that its rules and activity of every person in the organization is

just and fair to everyone. Integrity is the bedrock on which the company and the

expectations of the customers and employees are built. Integrity gives inner feeling to

both customer and the employees to work with it. It establishes the credibility of the

person defines the character and empowers one to do justice to the job. It enables

confidence and trust, achieving transparency and laying a strong foundation for a binding

relationship. It guides principle for all walks of life.

2. Innovation: It is the process of building a store house of treasures through

experiences. Lots of product is going to be launched by the competitors. So it is very

important to look every product and process through fresh eyes every day. It is the

significant part of the business that attracts customer. Innovation is essential to exceed

customer expectation and maximize customer retention because it is the sector of

investment so you need to fulfill the customer expectation which help you to retain

customer. Innovation helps to achieve competitive advantage. It promotes growth and

upgrade standards in the industry. It fosters creativity amongst employees and partners. It

opens a world of new possibilities because it brings new concept which helps to entice

the customer.

3. Customer centric: Customer becomes the main properties of any organization.

Whatever work done by the organization runs around the expectations of the customer.

Customer becomes centre point of the organization and the main focus of the

organization becomes to understand his expectations by keeping him as the Centre point.

It gives more focus on customer activity and saying. It tries to understand customer needs

and deliver solutions. As we know that the market is changed. Lots of competitors is here

[26]

who search chance to increase their market share and entice your customer so customer

interest become always supreme.

4. People Care: Genuinely try to understand those people who are working with

HDFCSL. It guides their development through training and support. It helps them to

develop their requisite their skills so that they can reach their true potential. It tries to

know them on a personal front because it works as a performance appraisal. It try to

create an environment of trust and openness so that all people who are working here

behave friendly and helps to each other because team work is most important for getting

success and give respect for the time of others. People are the most valuable assets of the

company so it tries to motivate individual to give his/her best. It wants to establish a

valuable relationship with them to create a joyful working environment. The most

important thing is that it tries to provide job satisfaction for their people.

5. Team work: One for all and all for one ´Here whole team takes the ownership of the

deliverables. It consults all involved in the work and tries to understand their opinion and

then arrive at a common objective. There is a cooperation and support across

departmental boundaries. It identifies strengths and weaknesses accordingly allocate

responsibility to achieve common objectives. Team work helps everyone to achieve

more. It adds joy at work place which adds interest in the work and new stamina in the

work. It generates synergy and provides a focused approach. When an idea or activity

performed in a group, it has greater acceptability. ³Team work proves one for all and all

for one

6. Joy and simplicity: It believes in joy and simplicity so that people in the organization

will be more dedicated towards work and they will give more business to the

organization. Work with joy and simplicity brings creativity and new imagination which

also brings new innovative ideas that promote competitive advantage to the organization.

Mission of HDFC life

HDFC Life aims to be the top new life insurance company in the market. This doesn’t

just mean being the largest or the most productive company in the market; rather it is a

combination of several things like-

 

Customer service of the highest order 

[27]

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Market share

HDFC Limited.

HDFC is India’s 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. 36,000 Cr.

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

[28]

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

All people invest their money in insurance and get more benefited. In the sector the

work of marketing is more challenging than the other sector because there are

23insurance companies in the market who are giving competition to each other and the

work of convince people for investment in respective company is a challenging work

and success in the sector proves that the respective person is a good marketer. Today

insurance sector India is on boom because all people want to invest. Those who don’t

know about investment in share market and don’t want to invest in mutual funds they

invest in insurance sector. Insurance sector gives them investment plus risk cover. Those

who don’t want to take risk in the investment go to insurance sector. It also gives

income tax benefits to the peoples. Insurance company are now launching ULIP plan

and  gives chance to the investor to choose their investment pattern according to their

fund investment table(this table is included in the product information of the product of

HDFC Standard life).

 Marketing strategy of HDFC life

Marketing is process of analyzing the consumer need and serve the need of consumer

which satisfy the consumer and solve the consumer problem. In this sector the

marketing is pay main role in brand formation and policy awareness to the public. As we

know that LIC is covering more than 75%market share. So marketing helps in increasing

the market share. Marketers have to analyze the market share and find out the market. We

can divide its marketing process in two parts:-

1) Marketing for Financial Consultant: - Work part-time, earn full-time is the

punch line of its marketing strategy. It says just work for 5 hours a week and earns

more than Rs. 20,000 per month. If you will be financial consultant of HDFCSL then

you can have high earning potential, zero investment, and you will not have pressure

for work. You can work as whatever you make your target or you can work as a part-

[29]

time as per your convenience. There are certain facilities for FC:-Flexible work

timings:-you can work whenever you like and from whenever you like. You can work

full time or part-time, depending on your convenience. It’s like no other job. However,

the time you invest will determine you success.

2) Zero investment: - There is no star-up capital. Be your own boss; with a flexible

working environment, unlimited earning potential and other opportunity to be part of a

world class team. The advantage is all yours. Sunrise industry: - Life insurance in

India has a huge potential for growth. Statistics reveal that only 25% of the insurable

population in India is insured. And those insured are in need of still higher insurance

cover. The over 100% growth displayed by private life insurers indicates this huge

untapped potential.

Strong partnership: - It is one of the fastest growing life insurance

companies. It was the first private life insurance company to be granted a

license by IRDA. It has been rated by business world class magazine as

India’s most respected Private life Insurance Company in 2004. HDFC

Standard life Insurance has one of the highest brand recalls of around 86%.

Marketing for the potential market: - In our general life we buy those things

which we see. For consumer awareness print marketing and electronic

marketing both are most important. In the market 17 insurance players is

trying to convince people with the advertising in television, radio, newspaper

and magazines. HDFC Standard Life is also adopting these electronic

marketing.

The punch line of HDFC Standard Life is ³Sar Utha Ke Jiyo´. Today it has

more than 8 lack policy holder. It is also targeting cinema halls like PVR

where it will get more potential market, for marketing.

For insurance sector the main marketer becomes its Financial Consultant. So it is

trying to recruit more and more financial consultant for the purpose of sale of the

policy of HDFC life and people will be more aware through it because it is a work

of contact. Which have more contact the person can get more business.

[30]

Products of HDFC life 

 As we know that lots of insurance plan are playing in the market of different companies.

HDCFL has launched various insurance plans which based on unit link plan. It invests

the investment of his consumer in bank deposits, Government securities and Bonds, and

Equity. The percentage of these investments in these plans depends upon the consumer

whether he wants to take more risk and more return or less risk or less return. It has

launched several insurance plans which are thus given below:-

1. Unit link pension plan

2. Unit linked pension plus

3. Unit linked enhanced life protection II

4. Unit linked young star plus II

5. Endowment assurance plan

6. Children plan

7. Money back plan

8. Single premium whole of life plan

9. Personal pension plan

10. Saving assurance plan

11. Assure plan

12. Unit linked Young Star plus II

Awards

Innovation in CRM Award 2011z

2011 CIO 100 Award

Asia Best Employer Brand Awards 2011

Yuma Hero Award[31]

Top 50 Best Companies to Work for in India in 2011

Indian Insurance Awards 2011

CISO 100 Awards 2011

IMC RBNQA - Performance Excellence Trophy 2010

'Young Star Super' Voted 'Product of the Year 2010'

Received CIO 'The Ingenious 100 2009' Award

Received Diamond EDGE Award 2009

Received 2008 CIO Bold 100 and CIO Security Awards

Received PC Quest Best IT Implementation Award 2008

Silver Abby at Goa fest 2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

[32]

DATA ANALYSIS AND INTERPRETATION

Table No. 4.1 showing the age groups

Age groups No of respondents percentages

26-30 years 8

31-35 years 8

36-40 years 12

41-45 years 12

46-50years 32

51-55 years 12

56-60 years 4

61-65 years 12

Figure No. 4.1 showing the age groups

INTERPERATION

Among the respondents 32 were of the group 46 – 50, 12 each were of the group 36-40,

41-45, 51-55, 61-65 and 8 each were of the group 20-30 & 31-35.

[33]

\Table No. 4.2 showing the marital status

Single 18 36%

Married 32 64%

Figure no 4.2 showing the marital status

INTERPRETATION

The second thing in my survey was single or married. In my sample there were 19 single

and 31 married

Table No.4.3 showing the occupation[34]

Category No. of respondents Percentage

Service 21 42%

Self employed 10 20%

Students 10 20%

Professionals 6 12%

House wives 3 6%

Figure No. 4.3 showing the occupation

INTERPRETATION

Among the 100 respondents majority are from service sector and next highest group is

professionals. There were self employed people, house wives, and students, they are less

in number .Next thing in the questionnaire was the opinion of the respondents about life

insurance. Majority have an opinion that it life insurance protects their life and some have

selected insurance policy as savings option.

Table No.4.4 showing the number of insurance holders

[35]

Yes 38 76%

No 12 24%

Figure No. 4.4 showing the number of insurance holder

INTERPRETATION

Among the 50 respondents, 76% is having life insurance policy and the remaining 24%

doesn’t have any life insurance policies.

Table No.4.5 showing the type of insurance policy

[36]

Tax savings 22 44%

Protection tool 16 32%

Savings option 12 44%

Others 0 0

Figure No. 4.5 showing the type of insurance policy

INTERPRETATION

44% of the respondents selected insurance policy for the purpose of tax savings. 32% as

protection tool and 44% are savings option. The main intention for purchasing insurance

policy is to get tax benefit.

Table No.4.6 showing the major life insurance companies in the locality

[37]

LICI 64%

ICICI prudential 9%

BAJAJ ALLIANZ 5%

SBI 3%

BIRLA LIFE 8%

HDFC LIFE 11%

Figure No. 4.6 showing the major life insurance companies in the locality

INTERPRETATION

There are so many insurance companies in the market both from private sector and public

sector. The dominating insurance company in the market is LIC of India. Birla life, SBI,

Bajaj Allianz, ICICI Prudential, etc are the insurance companies familiar to the

respondents.

Table No.4.7 showing the number of people associated with HDFC

[38]

Yes 35 70%

No 15 30%

Figure No.4.7 showing the number of people associated with HDFC

INTERPRETATION

35 respondents among the 50 have been associated with HDFC before. 15 do not

Table No.4.8 showing the number of customers of HDFC ltd

[39]

Banking 12 24%

Insurance 28 56%

Mutual fund 2 4%

Securities 3 6%

House loan 5 10%

Figure No. 4.8 showing the number of customers of HDFC ltd

INTERPRETATION

Among the respondents, majority are familiar with the insurance sector of HDFC. People

are not so interested in mutual fund, securities and house loan. HDFC bank also familiar

to the people

Table No. 4.9 showing the number of people familiar with HDFC life

Yes 36 72%[40]

No 14 28%

Figure No. 4.9 showing the number of people familiar with HDFC

INTERPRETATION

36 people know about HDFC life and 14 do not know about the company.

[41]

Table No.4.10 showing the mode how the people came to know about HDFC life

Advertisements 10 20%

Friends 18 36%

Relatives 14 28%

Internet 8 16%

Figure No. 4.10 showing the mode how the people came to know about HDFC life

INTERPRETATION

Majority of the respondents comes to know about HDFC life through friends. Relatives

also play a major role in exchanging information about the company. Inherent and

advertisements are the other modes of communication

[42]

Table No. 4.11 Table showing the number of people who wants their relatives and

friends to know about HDFC life

Yes 26 52%

No 24 48%

Figure No.4.11 showing the number of people who wants their relatives and friends

to know about HDFC life

INTERPRETATION

52% of the people want their friends/ relatives to know about the HDFC life and their

Services. The remaining 48% doesn’t want to inform their friends/relatives about HDFC

life

[43]

Table No.4.12 Table showing the number of respondents who reviews their financial

goals with an expert

Yes 16 32%

No 34 68%

Figure No. 4.12 showing the number of respondents who reviews their financial

goals with an expert

INTERPRETATION

32% of the respondents will review their financial goals with an expert who will be

assisting them in achieving their financial goals

[44]

Table No. 4.13 Table showing the number of respondents aware that they can get

expert advice from HDFC life

Yes 28 56%

No 22 44%

Figure No. 4.13 showing the number of respondents aware that they can get expert

advice from HDFC

INTERPRETATION

56% respondents are aware that they can get an expert advice form HDFC life on their

financial goals

[45]

Table No.4.14 Table showing the number of respondents who think HDFC provides

more benefits than other insurance companies

Yes 26 52%

No 24 48%

Figure No. 4.14 showing the number of respondents who think HDFC provides

more benefits than other insurance companies

INTERPRETATION

26 among the 50 respondents think HDFC life provides benefits more when compared to

other insurance companies. The remaining 24 thinks HDFC life as like any other life

insurance companies. Services offering are more or less will be the same

[46]

Table No.4.15 showing the number of respondents who think financial consultants

should come to their home and collect premium amount

Yes 32 64%

No 18 36%

Figure No. 4.15 showing the number of respondents who think financial consultants

should come to their home and collect premium amount

INTERPRETATION

Majority (32 out of 50) thinks that financial consultants should come to their home and

collect the premium amount. The remaining 18 people do not have such an opinion.

[47]

Table No 4.16 showing the number of respondents who likes the advertisements of

HDFC life

Good 23 46%

Average 22 44%

Poor 5 10%

a

Figure No. 4.16 showing the number of respondents who likes the advertisements of

HDFC life

INTERPRETATION

From the survey I come to know that the advertisements of HDFC life are good and

average. Only 5 people among the respondents had an opinion that the ads are

poor .Majority have a good opinion about HDFC life, since the company gives priority to

the customers. Some of them have a fear to invest in HDFC life because of it’s a private

ownership. The advertisements are more effective to make a good place in the minds of

the public.

[48]

CONCLUSION

FINDINGS

1. Among the 50 respondents 18 single and 32 married.

2. Among 100 respondents majority are form service sector and next highest group is

professionals there where self employed.

3. among 50 respondents 76% in having life insurance policy and remaining 24%.

4. 44%of the respondent’s policy for the purpose of tax savings .32%.protection tool

and 44%.

5. There are so many insurance companies in market both from private and public sector.

6 .35 respondents 50 have associated with HDFC before 15%.

7. Among the respondents majority are familiar with the insurance sector of HDFC.

8. 36 people know about HDFC life and 15 do not know about the company.

9. Majority of the respondents comes to know above HDFC life through friends relatives

also play a major role in exchange information about the company.

10.52% OF the people want their relatives to know about the HDFC life and there

service the remaining 48% doesn’t want to inform their friends /relatives

[49]

SUGGESTIONS

Finally, some recommendations for the company are as follows:-

To make people aware about the benefit of HDFC Life’s products, and change

their perception for the company following activities of advertisement should be done

through;

Print Media

Hoarding and banners

Stalls in trade fares

Distribution of leaflets containing detailed information

Company can recruit sales promoters so that maximum information can

be provided to the potential client

By showing additional and alternative income source along with various schemes

for Financial Consultant in the company so that more and more FC can be

recruited

Free life cover for every active Financial Consultant.

Discounted rate premium for its family members.

Make people understand about the meaning of the IRDA authorization and its

validity

Company should organize the program in the society, so that people will be aware

about the company.

Separate time slot for working professions, house wives and retired people.

Agency of non-life products should also be provided along with life

Company should open more branches in different cities

It should provide better facilities for premium collection and to get the sum

assured money

FC should visit clients for premium collection

Experts from company should visit the clients with the FC

[50]

FCs should be given better training regarding the products and they should try to

create better impact on the customer for the company.

In the advertisements their basic mission should be to change the perception of

people towards the HDFC group, because a good brand sells itself.

In the recruitment of financial consultant I found that most people don’t want to

give 825. If the company will less this charge then it will get more FC.

[51]

CONCLUSIONS

Life insurance is a relatively low involvement product, even for those who have

voluntary cover. It is not something that occupies consumers’ minds at times other than

the time of consideration / purchase. The result of this is a low level of awareness and

understanding of life insurance products, and more generally, of the operation of life

insurance companies.

There is confusion in the minds of consumers between life insurance, general insurance,

health insurance, and some investment products (such as endowment products). Life

insurance companies, therefore, are subject to odium emanating from problems in the

general insurance sector, such as the collapse of HIH, increasing general insurance

premiums, and obscenely large director salaries and bonuses. This is the case even

among apparently erudite individuals.

In this knowledge vacuum, people make incorrect assumptions and attributions about life

insurance. These ill-formed and uninformed attitudes then act as barriers to life insurance

product take-up.

A similar line of reasoning is applicable to genetic testing. A lack of knowledge about

the details and potential benefits of genetic testing leads people to associate genetic

testing with unrelated areas such as organ farming, human cloning, ‘Dolly the sheep’ and

so on.

It should not be surprising, therefore, that there is a significant level of opposition in the

community to the use of human genetic information by life insurers. It is effectively the

fusion of two areas of uncertainty, coupled with cynicism towards financial institutions.

However, the picture is not altogether bleak. There is evidence in this research

suggesting that attitudes to life insurance and genetic testing are, to some extent,

malleable. In the course of the group discussions, the attitudes of numerous people

changed, in some cases dramatically. In the quantitative research, a brief explanation of

the concept of pooled risk was able to significantly alter attitudes to a number of issues.

While it is the case that some people are more easily led than others, these two pieces of

research suggest that a communications program has the potential to influence attitudes in [52]

the area of life insurance and genetic testing. Our belief is that given the relatively low

involvement nature of life insurance, an attitude change program should target the time of

greatest involvement – that is, the time around product consideration and purchase. We

believe that a communication program would be most effective if it was a joint life

insurance industry and government initiative.

[53]

QUESTIONNAIRE

I, Shabana, Student of Dhakeerath Women’s College, requested you to fill the following

questions for the purpose of Project work on the topic CONSUMERS PERCEPTION ON

HDFC LIFE, on behalf of our curriculum.

Name:

Age :

Address:

Marital status: Single Married

Occupation:

Q1. What are your view points on life insurance?

Q2. Do you have life insurance policy?

Yes No

Q3. What kind insurance policy do you subscribe to?

Tax savings Savings option

Protection tool others

Q4. Which are the prominent life insurance companies in your locality?

1… ……………… 2………………….

Q5. Have you ever been associated with any group company of HDFC as a customer?

Yes No

[54]

Q6. If yes please share with us the details of the same?

Banking Insurance Securities

Mutual fund House Loan

Q7.Do you know about HDFC Life?

Yes No

Q8. If yes how did you come to know about HDFC being into insurance business?

Advertisement Friends

Relatives Internet

Q9. Whether you want any of your relatives/friends to know about the services offered

by HDFC life?

Yes No

Q10. Do you review your financial goals with an expert, who will be assisting you in

achieving your financial goals?

Yes No

Q11. Are you aware, that you can get an expert advice from HDFC life on your financial

goals?

Yes No

Q12. Do you think HDFC life provides any benefit more when compared to other

insurance companies?

Yes No

[55]

Q13. Do you think Financial Consultant should come to your home and collect premium

amount?

Yes No

Q14. How do you think about the advertisements of HDFC life?

Good average poor

Q15.what is your view points about HDFC life?

[56]

BIBLIOGRAPHY

Leon G. Schiffman, Leslie Lazar Kink, Consumer Behavior, Himalaya

Publishers, Delhi, 2004

Kotler Philip, Marketing Management, Pearson Education Inc. 11thEdition.

www.wikipedia.com

www.licindia.com

www.irda.org

www.lifeinsure.com

www.hdfclifeinsurance.com

www.hdfc.com

Valuable information from corporate guide and faculty guide.

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