SUMMER TRAINING REPORT ON A STUDY ON EMPLOYEE MOTIVATION Undertaken at RELIANCE LIFE INSURANCE CO. LTD.

Submitted in partial fulfillment of the requirements for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION To Guru Gobind Singh Indraprastha University, Delhi

Session 2011 12

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CHAPTER- I
INTRODUCTION

1.1 INTRODUCTION Insurance is commerce. Insurance product is a financial contract entered into by parties with a define consensus of mind. Insurance, in its purest form, is a risk management tool, a security blanket. It provides financial protection against unexpected events. When we buy insurance, effectively a portion of risk is

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transferred to the insurer. This protection comes at a price, but its a function of what we might otherwise find ourselves burdened with. Whatever stage of life we are at, chances are, and we need insurance. Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial era: a few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a dramatic turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding. We study the collective experience of the other countries in Asia already deregulated their markets and have allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon. Insurance can be define as a contract by which insurance agrees to pay the insured a compensation for specified damage loss or injury suffered in exchange for periodic payment called premium HDFCSL is one of Indias 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. I have choseninsurance sector as the place for summer training because in these days thissector is in boom and it will never go down. All people invest their money ininsurance and get more benefited. In the sector the work of marketing ismore challenging then the other sector because there is 17 insurancecompanies in the market who are giving competition to each other and thework of convince people for investment in respective company is achallenging work and success in the sector proves that the respective personis a good marketer. Today insurance sector India is on boom because all people want to invest. Those who dont know about investment in sharemarket and dont want to invest in mutual funds they invest in insurancesector. Insurance sector gives them investment plus risk cover. Those whodont want to take risk in the investment go to insurance sector. It also givesincome tax benefits to the peoples. Insurance company are now launchingULIP 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). This fundinvestment tells us that how much the investor want to take risk. Generally in the ULIP plan, the thesis is that The more you risk the more you have profit.

1.2 OBJECTIVES OF STUDY

The project was an attempt to explore the Distribution Enhancement of insurance policy of HDFCSL in Ashok vihar . The project was started on 10thJune, after knowing all the relevant information about the company insurance product and policies and its competitors insurance products in

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accordance with the prescribed schedule mentioned by management of HDFCSL. The project started in Ashok vihar region covering all the local market. In this process I meet 90 persons to recruit them as a financial consultant. I have tried to recruit FC from telephone calling, and natural market. 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 theywant from the organization. What the organization should do for the recruitment of more and more FC and should give more facilities to them, reimbursement, and time to time gift voucher, and weakly training or meeting with FC to encourage them. To determine reasons behind opting for an insurance. To provide the company with information of customer's Insurance policy if they have any and reasons for opting for that particular policies. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by any other insurance agent. To study the types of benefits provided by insurance services.

1.3 SCOPE OF STUDY:

During the summer training I have done my work through telephone calling, natural market, and contact person having gone to their home. In the entire work I have contacted person who is student, person who is working in the organization, visit colleges, IGNOU study centre in Delhi regions Property dealers and lowers. 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 market 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 HDFCSL. To enhance the distribution channel in the selling of insurance policies. To find out the competitive edge of the company over the competitors.

1.4 COMPANY PROFILE:

1.4.1 HDFC Standard Life Insurance Company Limited.

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Corporate Office: 13th Floor, Lodha Excelus Building, Apollo Mills Compound, NM Joshi Road, Mahalaxmi Near Hindustan Petroleum Mumbai- 400011, Maharashtra Phone: (022) 67516666

Registered Office: Ramon House, 169, Backbay Reclamation, H T Parekh Marg, Churchgate MUMBAI - 400 020. Tel: +91 (22) 66316000 Fax: +91 (22) 22048834

1.4.2 Nature of organization

HDFCSLIC stands for Housing Development Finance corporation standard life insurance company. It is incorporated in 1977 as a public limited company with the specialization in provision of housing finance to individuals cooperative societies and the corporate sector. One significant matter about the HDFC is that it is first private sector retail housing finance company and it is listed on both BSE and NSE. Its market capitalization in June 2002. Standard life insurance is founded in 1825. Standard life was reincorporated as a mutual assurance company in 1925. Its largest mutual life insurance company in Europe. For the joint venture between HDFC and SLIC, the discussion commenced in January 1995 and the agreement signed in October 1995. Further joint venture agreement renewed in October 1998. In January 2000 the life insurance project team established in Mumbai. At last the company officially incorporated in 14th August 2000. It is the matter of great happiness for HDFCSLIC is that it is the first private sector life insurance company to be granted a certificate of registration in 23rd October, 2000. Today 75% shareholding in the hand of HDFC and Standard life has 25% shareholding in this joint venture.

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Our Parentage
HDFC Limited HDFC Limited, India's premier housing finance institution has assisted more than 3.8 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 289 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of March 2011, the total asset size has crossed more than Rs. 1, 32,727crores including the mortgage loan assets of more than Rs.1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625 crores, earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, Mauritius,and Bangladesh in the setting up of housing finance companies.

STANDARD LIFE PLC.

Established in 1825, Standard Life Plc. is a leading provider of long term savings and investments to around 6 million customers worldwide. A Headquartered in Edinburgh, Standard Life has around 9,000 employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. The Standard Life group includes savings and investments businesses, which operate across its UK, Canadian and European markets; corporate pensions and benefits businesses in the UK and Canada; Standard Life Investments, a global investment manager, which manages assets of over 157bn globally; and its Chinese and Indian Joint Venture businesses. A At the end of April 2011 the Group had total assets under administration of 198.4bn. Standard Life plc is listed on the London Stock Exchange and has approximately 1.5 million individual shareholders in over 50 countries around the world.

1.4.3 Vision & Mission

Vision

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

Mission
To reach out an influence our target customer so as to provide them. World class Competitive insurance solution .HDFCSLIC focuses long term strategy".

Values
Values that we observe while we work: Integrity Innovation Customer centric People Care "One for all and all for one" Team work Joy and Simplicity

1.4.4 Product Range Of The Company

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HDFC Standard Life offers a bouquet of insurance solutions to meet individuals need, the company has a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. The customers can choose from a range of products to suit their life-stage and needs. At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, varied range of products that customer can choose from to suit all needs. These will help secure customer future as well as the future of family. The products of the company are categorized into various sections which are as follows:

PROTECTION PLANS

SAVINGS & INVESTMENT PLANS RETIREMENT PLANS

CHILDREN'S PLANS

HEALTH PLANS

PROTECTION PLANS

Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of one's family is one of the most important goals of life. Protection Plans go a long way in ensuring your family's financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss. For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amit's real income would have been around Rs. 10,00,000/- per annum. However, in case of Amit's unfortunate demise at an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.

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However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10,00,000/- for his family over a period of 25 years.

HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

TYPES OF PROTECTION PLANS

CHILDRENS PLAN Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style. Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with

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the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime. Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree. An illustration of how education expenses could rise with passing time due to inflation

Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a.

So, how can you cope with these costs? Children's Plans help you save steadily over the long term so that you can secure your child's future needs, be it higher education, marriage or anything else. A small sum invested by you regularly can help you build a decent corpus over a period of time and go a long way in providing your child a secured financial future along with.

HDFC Children's Plan

TYPES OF CHILDRENS PLANS

SAVINGS & INVESTMENT PLANS

HDFC SL Young Star Super II

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HDFC SL Young Star Super Premium

You have always given your family the very best. And there is no reason why they shouldn't get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to ensure that your family's future expenses are taken care, even if something unfortunate were to happen to you. A big factor that you need to consider while building your wealth is inflation. It has a dual impact on your hard-earned savings. Inflation not only erodes your current purchasing power but also magnifies your monetary requirements for the future.

TYPES OF SAVINGS & INVESTMENT PLANS

Type

Conventional Plans

Unit Linked Insurance Plans

HDFC SL New Money Back Plan HDFC Savings Assurance Plan HDFC Endowment Assurance Plan HDFC Life Sampoorn Samridhi Insurance Plan

HDFC SL ProGrowth Super II

Regular Premium

HDFC SL ProGrowth Flexi

Single Premium/ Investment Limited Premium Payment

HDFC Single Premium Whole of Life Insurance Plan

HDFC SL ProGrowth Maximiser

HDFC SL Classic Assure Insurance Plan

HDFC SL Crest

HEALTH PLANS

Health plans give you the financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence. In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect the most important asset that we have - our health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

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As can be seen in the above chart, lifestyle diseases are set to spread at disturbing rates. The result increased expenditure. In many cases, people need to borrow money or sell assets to cover their medical expenses. All it takes is a suitable plan to help you overcome the financial woes related to your health by paying marginal amounts as premiums. For example, if you are 30 years old, then a mere sum of approximately Rs 3500* annually can provide you a health insurance plan of Rs 5 lakh over a period of 20 years, and a worry-free future for you and your family.

HDFC Critical Care Plan TYPES OF HEALTH PLANS HDFC Surgi Care Plan

RETIREMENT PLANS
Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. India's average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to

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ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years. Priorities at different stages of life:-

TYPES OF RETIREMENT PLANS

Type Regular Premium

Conventional Plans
HDFC Personal Pension Plan HDFC Life Classic Pension

Unit Linked Insurance Plans

Insurance Plan Single Premium/ Investment

HDFC SL Pension Maximus

1.4.5

Size In Terms Of Manpower And Turnover [13]

The Reliance Life Insurance Co. Ltd. At present status has 110 branches 1,95,000 Advisors over 16,000 employees

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1.4.6

Organisation Structure Of The Company Functional Department Of The Organization CHAIRMAN

MANAGING DIRECTOR

CHIEF EXECUTIVE OFFICER

BUSINESS HEAD

ZONAL MANAGER

REGIONAL MANAGER

EXECUTIVE SALES MANAGER

CIRCLE MANAGER

CIRCLE HEAD

SENIOR SALES MANAGER BUSNIESS DEVELOPMENT MANAGER

SALES MANAGER

ASSISTANT SALES MANAGER

SALES DEVELOPMENT MANAGER

FINANCIAL CONSULTANT [15] CUSTOMER

 Hierarchial Structure Of The Organization

CHAIRMAN MR. DEEPAK S. PAREKH

MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER MR. AMITABH CHAUDHRY

EXECUTIVE DIRECTOR AND CHIEF OPERATING OFFICER MR. PARESH PARASNIS

CHIEF FINANCIAL OFFICER MS. VIBHA PADALKAR

CHIEF ACTUARY AND APPOINTED ACTUARY MR. ASHLEY REBELLO

GENERAL MANAGER, SALES AND MARKETING MR. VIKRAM MEHTA

CHIEF INVESTMENT OFFICER [16] MR. PRASUN GAJRI

1.4.7 Market share and the position of the company in industry

HDFC Life Insurance plans to tap 2.5-crore telephony subscriber base to market its products. The company is considering a series of options to leverage its relationship with HDFC GROUP. However, a joint product or a co-branded solution would require approval from the Insurance Regulatory and Development Authority.

Customers of INTERNET, the information and entertainment portal of HDFC GROUP, would also be able to pay premiums through a bank account, provided the bank is listed on the network. HDFC Life Insurance officials, however, offered no comment when asked whether there would be an arrangement for payment of commission.

As an alternative channel for distribution, insurance companies usually tie up with banks. In the case of banc assurance, where there is a corporate agency tie-up, he commission could range from 5 per cent to 40 per cent of first-year premium depending on the commission loaded on to the product at the time of registration with IRDA.

Brand Positioning
The Brand Essence of HDFC Life is, Experience the joy of fulfilling your responsibility. This essence is captured in the unique brand positioning Mera Farz, developed in 2007. This positioning means, HDFC Life helps its customers fulfill their responsibilities as provider towards themselves and their families. As part of the HDFC Group, the worlds largest financial services company, HDFC Life provides its customers with the strength, reliability and the right balance between long-term savings, security & reasonable returns.

This powerful positioning has helped HDFC Life create a distinct identity for itself. The latest brand campaign in 2008 portrays how key life-stages in our lives, such as marriage, birth of a child, childrens education, retirement, bring unexpected financial worries along with happiness.

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However, we can overcome these burdens with prudent financial planning and a helping hand from HDFC Life, thus fulfilling our responsibilities towards our family.

Advertisement And Sales Promotion

Film opens in the compound of a house. Father is checking something inside the bonnet of an old small car. His daughter, around 27-28 years old, is working on a lap top next to him.

Daughter: Dad. Father: Bolo Daughter: Nayi car lene mein hee bhalaai hai. Dad nods in agreement without looking up. Dad: Hmmm

Daughter continues affirmatively as she signs on a cheque. Daughter: Aur wo bhi badi wali.

Dad looks at her and asks. Dad: Huh, Badi kyon?

Daughter, walks towards him with swinging hand in air and says. Daughter: Kyonki Toolika Sharma chahti hai uske dad style se travel kare.

Dad goes back to checking the engine and says in a light hearted tone. Dad: Aur Extra paise dad dega kya? Daughter replies firmly: Nahi. Mere dad ki beti.

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And hands him the cheque. Dad looks at the cheque and questions. Dad (seriously): Itne paise aaye kahaan se?

Daughter: Relax dad, plan kiya. Dad doesnt know what to say: Par...

Dad doesnt know what to say as he looks at the cheque. Daughter pleads: Pleasedad

Mother enters with tea. She senses something serious and questions them. Mother: Aree Kya hua?

Father looks at her and says emotionally. Dad: Car badi ho gayi, aur beti bhi. Daughter smiles with pride.

Super: Unit Linked Savings Plans MVO: Unit Linked Savings Plans from HDFC Standard Life. zimmedari nibhao, Aaj bhi kal bhi

Father daughter are sitting. MVO: Sar Utha Ke Jiyo.

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AWARDS & ACCOLADES

RECEIVED 2008 CIO BOLD 100 AND CIO SECURITY AWARDS HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. This year's award theme, 'The Bold 100,' recognized those executives and organizations that embraced great risk for the sake of great reward. HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs, whose pioneering implementations have taken their enterprise security to the next level. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure.

The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment, including identity management.

RECEIVED PCQUEST BEST IT IMPLEMENTATION AWARD 2008 HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc.

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HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years consequently. Last year, the company received the award for Wonders, its path-breaking implementation of an enterprise-wide workflow system. SILVER ABBY AT GOOFIEST 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goofiest 2008 organised by the Advertising Agencies Association of India (AAAI). The radio commercial 'Pata nahin chala' touched several changes in life in the blink of an eye through an old manna perspective. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement, without compromising on one's self-respect UNIT LINKED SAVINGS PLAN TOPS MINT BEST TV ADS SURVEY The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mint's Top Television Advertisement survey conducted, for February 2008. HDFC Standard Life's Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mint exclusive report, 'New voices in a makeover' outlines the survey in detail. DEEPAK M SATWALEKAR AWARDED QIMPRO GOLD STANDARD AWARD 2007 Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. SAR UTHA KE JIYO AMONG INDIA'S 60 GLORIOUS ADVERTISING MOMENTS HDFC Standard Life's advertising slogan honoured as one of '60 Glorious Advertising & Marketing Moments' over the last 60 years in India,' by 4Ps Business and Marketing magazine. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by others including ICCI Prudential, thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years.

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RECEIVED CIO 'THE INGENIOUS 100 2009' AWARD HDFC Standard Life has received the CIO 'The Ingenious 100 - 2009 Award,' for ATLAS (Agency

Training Licensing and Servicing System). Additionally,

the company

has received the CIO 100 'Security Award 2009' for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence. HDFC Standard has received the CIO 100 Award for the third consecutive year. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment, including Sesame - Identity and Access Management. In 2007, the company received CIO 100 award for Wonders and a Special Award in Storage category. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program - CIO 100. It's a celebration of 100 organizations (and the people within them) that are using IT in innovative ways to deliver business value, whether by creating competitive advantage, optimizing business processes, enabling growth or improving relationships with customers. RECEIVED DIAMOND EDGE AWARD 2009 HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the ,Network Computing magazine to identify, recognize, and honor end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders. Network Computing magazine is part of CMP Technology, which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide.

BEST COMPANIES TO WORK FOR IN INDIA IN 2010

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HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in 2010. The company participated in the Great Places to Workstudy for the first time and ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work for, in India 2010 list. The company was also

Awarded for its unique employee initiative - Mission in-Genius national quiz. The study has shown that HDFC Standard Life conscientiously develops employee talent programmers to keep engaging and motivating its employees. The company provides some unique platforms such as 'Mission in Genius' national quiz. The management is accessible to all at all times and sincerely seeks feedback from its employees through programmes such as 'Sparsh', the study said.The Best Companies to Work in India is a study conducted by the Great Place to Work Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study in India, which received overwhelming response from more than 400 companies, making it the largest such study in India. And only 50 companies made it to the Best Companies to Work list! 'YOUNGSTAR SUPER' VOTED 'PRODUCT OF THE YEAR 2010'

HDFC Standard Life Young Star Super has been voted Product of the Year 2010in the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets. Young Star Super is an

Unit linked Children Plan with unique benefits such as bumper additions, double and triple benefits, attractive allocations rates, and seven different funds.

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The consumer study on product innovation in India was conducted by A C Nielsen, the leading global research firm. Entries were accepted from products that demonstrate innovation in their product function, design, packaging or process or any other specified form. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an Internationally Recognized Standard that celebrates and rewards the best innovations in consumer products and services. The Product of the Year is selected through an independent consumer survey across the country in 26 countries for the past 20 years.

ORIGIN OF THE ORGANIZATION

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 Standard 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 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, 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, Sarawak 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 and aim at complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly defined on the official website. Online renewal forms are also available. For any change in personal details like the contact details or the nominee of the policy or policy benefits, online servicing is also available. Even the claim procedure has

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been simplified since affect of the loss life is irreparable and is thus fully understandable at HDFC Standard Life. A completely hassle-free process has been formulated to provide maximum convenience. 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 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 Companylimited. 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.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

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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 1, 45,000 Financial Consultants. HDFC Standard Life also has more than 383 corporate agents and other sales intermediaries including banks for distribution of insurance products.

AREAS OF OPERATION

Helping Indians experience the joy of home ownership. The road to success is a tough and challenging journey in the dark where only obstacles light the path. However, success on a terrain like this is not without a solution. As we found out nearly three decades ago, in 1977, the solution for success is customer satisfaction. All you need is the courage to innovate, the skill to understand your clientele and the desire to give them your best. Today, nearly three million satisfied customers whose dream we helped realise, stand testimony to our success. Our objective, from the beginning, has been to enhance residential housing stock and promote home ownership. Now, our offerings range from hassle-free home loans and deposit products, to property related services and a training facility. We also offer specialized financial services to our customer base through partnerships with some of the best financial institutions worldwide.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August

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1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC Mutual Fund has been one of the best performing mutual funds in the last few years. HDFC Asset Management Company Limited (AMC) functions as an Asset Management company for the HDFC mutual fund. AMC is a joint venture between housing finance giant HDFC and British investment firm Standard Life Investments Limited. It conducts the operations of the Mutual Fund and manages assets of the schemes, including the schemes launched from time to time. As of Aug 2006, the fund has assets of Rs.25,892 crores under management. IN 2003, following a decision by the Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, to divest its asset management business in India, AMC had entered into an agreement with ZIC to acquire the asset management business. Consequently, all the schemes of Zurich Mutual Fund in India had been transferred to HDFC mutual fund and renamed as HDFC schemes. Here is a list of mutual funds of HDFC which includes Equity Funds, Balanced Funds and Debt Funds.

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and derivatives in NSE. Our website will support you with the highest standards of service, convenience and hassle-free trading tools. Our research team tracks the economy, industries and companies to provide you the latest information and analysis. Our content offers financial information, analysis, investment guidance, news & views, and is designed to meet the requirements of everyone from a beginner to a savvy and well-informed trader.

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HDFC Realty is a wholly owned subsidiary of HDFC. We have assisted individuals in acquiring homes valued at 5000 million rupees.HDFC is a pioneer housing finance institution in India and with over 30 years in operations has provided finance to over a million families in India.We are a team of real estate professionals facilitating Buying, Selling or Leasing of Residential / Commercial property.At HDFC Realty, we provide personalized attention to the individuals and corporates in their process of identifying properties. From understanding the requirement to organizing the site visits to completion of transaction, we make every effort to make the process of acquiring a property, hassle free and convenient.

GROWTH AND PRESENT STATUS OF THE ORGANIZATION

HDFCSL Milestone

2006 HDFCSL expanded its reach in the Banc assurance channel by arrangements with cooperative banks in the rural areas. Continued to increase its focus on quality service, by putting in place a robust mechanism to capture 'Voice of the Customer' through service audits across its offices. This was

2008 Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc.

complemented by use of technology that enabled Received the 2008 CIO Bold 100 Award for capture of all interactions with customers across all touch points Sar Utha Ke Jiyo was honored as 'Among India's 60 Glorious Advertising Moments. The its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment, including identity management respectively.

advertisements of the company were ranked 6th Mr. Deepak M Satwalekar Awarded amongst 'The 10 most effective Advertisements' in September 2007. Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system. In addition the company also bagged the EMC storage award for being the most QIMPRO Gold Standard Award.

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innovative users of storage and storage management. Pension Plan Tops Mint's Survey of Best TV Ads. HDFC Standard Life's advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards organised by the Advertising Agencies Association of India (AAAI). The 3 awards are the highest won by any single brand in the financial services business (including banking, mutual fund, insurance and other financial services). Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity Economic Times, the leading business publication of India. The year witnessed the launch of 'My Account', a web-based facility with various policy servicing options such as switch, premium redirection to be executed by clients, without recourse to visiting a branch As against a regulatory requirement of writing 18% of all policies in rural areas, the company issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the year. The company had been awarded the "Intelligent Enterprise" Award by the Express Computer Magazine Part of the Indian Express Group, for investing in workflow and imaging technology which helped in increasing volumes without affecting service standards. Was selected as the '4Ps Power Brand 2006', for

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being one of India's Top 25 'Most Innovative Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research) and 4Ps - Business and Marketing (a Business and Marketing magazine published by Planman Media). Biggest NGO covered on 28th March 2006 with 14000 lives

HDFC LIFE REGISTERS HIGHEST GROWTH IN INDIVIDUAL NEW BUSINESS IN 2010-11; ONLY COMPANY TO REGISTER POSITIVE GROWTH IN NEW REGIME (H2, 2010-11)

Continues to be the fastest growing company with 26% YoY growth and the only one among the top 5 private players to be on positive YoY growth; Strongest market share gain of 4.2% in private space in 2010-11 Mumbai, May 4, 2011: HDFC Life, one of Indias leading private life insurance companies, registered highest growth of 26% in individual new business (regular and single) among the top 5 private life insurance players in 2010-11. HDFC Life recorded 36% growth in renewal premium and 29% growth in total premium in the financial year 2010-11.Announcing the companys financial results, Mr. Amitabh Chaudhry, MD& CEO, HDFC Life, said, I am extremely satisfied with our performance in 2010-11. In spite of significant challenges in the market, we responded extremely well and demonstrated significantly better traction than our competitors. Our proactive efforts on gearing up the organization to face challenges in the market reflect in the early signs of adapting well to the new regime. We ranked 1stin H2 FY2010- 11 in individual business in the industry and we are one of the very few private insurers to achieve positive growth in FY2010-11. Our consistent focus on creating awareness about life insurance as long-term financial instruments has resulted in our customers exhibiting renewed focus on life insurance reflected in our high conservation ratio of 81%.

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1.5 INDUSTRY PROFILE: 1.5.1The Indian Insurance Industry India insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, and as Indians become more familiar with different insurance products, this growth can only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the Indian insurance industry. India Insurance Policies at a Glance Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. The most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motor insurance, home insurance, travel insurance and health insurance. Due to the growing demand for insurance, more and more insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry. Indian Insurance: Sector Reform
In 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.

1.5.2 Origin and Development of the Industry [31]

 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, 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.

Some Of The Important Milestones In The Life Insurance Business In India Are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies. General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of

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private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted. These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its subsidiaries.

Some of the important milestones in general insurance businesses in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973.

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. GIC incorporated as a company.

Insurance Regulatory and Development Authority The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto." Expectations The law of India has following expectations from IRDA [33]

1. To protect the interest of and secure fair treatment to policyholders. 2. To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy. 3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates. 4. To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard.

5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery. 6. To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players. 7. To take action where such standards are inadequate or ineffectively enforced. 8. To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation. Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA (1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include,

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(A) Issue to the applicant a certificate of registration, renews, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) Specifying the code of conduct for surveyors and loss assessors; (e) Promoting efficiency in the conduct of insurance business; (f) Promoting and regulating professional organisations connected with the insurance and reinsurance business; (g) Levying fees and other charges for carrying out the purposes of this Act; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) Regulating investment of funds by insurance companies; (l) Regulating maintenance of margin of solvency; (m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) Supervising the functioning of the Tariff Advisory Committee; [35]

(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f); (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) Exercising such other powers as may be prescribed.

1.5.3 Growth and Present Status of The Industry

India's insurance sector is zooming to show an unprecedented progressive growth of more than 200% by the period of 2009-09. The Associated Chambers of Commerce and Industry of India has clocked out the fact that during this period, private players in the industry will see a growth of about 140 per cent, owing to the adoption of the aggressive marketing techniques in comparison of the growth rate of 35 per cent-40 per cent achieved by the state owned insurance companies. The chamber is expected to poise the business of insurance to reach at Rs.2000 billions in coming 2 years from the present level of Rs. 500 billion. With the result of adoption of the intense marketing strategies by the private players, the declination has been witnessed in respect of the share of the state owned insurance companies captured in the market. The market share fallout has been noticed in context of such companies like GIC, LIC, which have come down to nearly 70 per cent in the past 4-5 years from the 97 per cent. The experts have fore casted the more severe competition in the insurance sector likely to be occurred in the near future. Till recently, insurance sector was majority driven by the government sector players but now many private sector multinational players have come into the picture. Like HDFC, ICICI, Kotak, Mahindra and Birla Sun life. Insurance sector has been characterized as the booming sector of the Indian arena, which has shown the growth rate of more than 15 per cent to 20 per cent. Insurance in India is put under the federal subject and is governed by the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and by various other acts. The roots of the insurance sector can be tracked down in the year 1818 in the formation of the life insurance Corporation in Calcutta. The idea was to provide means to the English widows. During that time different premiums were charged for the Indian and English people lives. In 1870, the Bombay Mutual Life Insurance Society started its insurance business and it charged the same premium from all people irrespective of whether they were Indian or English. In the year 1912, insurance regulation was started due to the passing of the Life Insurance Companies Act and the Provident Fund Act.

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By the year of 1938, in India there were total 176 insurance companies. In the year of 1938, with the passing of Insurance Act, 1938 there was the introduction of the first comprehensive legislation. It was passed with the aim of providing the strict state control over the insurance business. After the independence, insurance sector in India grew at a much higher pace.

1.5.4 Future of the Industry

Before looking insurance future prospectus of the insurance industry, we must take a look into its past history. The independent India started with private sector insurance companies. These companies were nationalized by the Union Govt. in 1965 to form a monopoly known as Life Insurance Corporation of India has being under public sector for over four decades till the govt. opened the insurance sector for private companies in 2000. When the insurance Industry was nationalized, it was consider a land mark and a milestone on the way to the socialistic pattern of society that India had chosen after independence.

INDIAN COMPANIES WITH FOREIGN PARTNERSHIP

Indian Partner Tata CK Birla Group ICICI Sundaram Finance Hindustan Times Ranbaxy HDFC Bombay Dyeing DCM Shriram Dabur Group Kotak Mahindra Godrej 20th Century Finance M A Chidambaram Vysya Bank

International Partner American Int. Group, US Zurich Insurance, Switzerland Prudential, UK Winterthur Insurance, Switzerland Commercial Union, UK Cigna, US Standard Life, UK General Accident, UK Royal Sun Alliance, UK Allstate, US Chubb, US J Rothschild, UK Canada Life Met Life ING

Insensitivity to the needs of the market, traditions insurance adoption of modern practices to upgrades technical skills coupled with a scene of lethargy which probable led to a feeling amongst that the

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insurance industry was not fully responsive to customers needs. The life insurance corporation of India has not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. LIC could not insure very fast growth of insurance in India even in a long period extending over four decades. Hence the penetration of insurance is very low insurance India. The following indicates as explained and support this contention: While per capita insurance premium in developed country is high, it is quite low insurance India. For instance, per capital insurance premium insurance India insurance 1999 was only $8 while it was $4800 for Japan and $1000 for Republic of Korea, $887 for Singapore, $823 for Hong-Kong and $144 for Malaysia. Similarly the penetration of insurance is also assessed by the ratio of insurance premium to gross domestic products in a country. While insurance premiums as a percentage of GDP was 14% in Japan 13% for South-Africa, 12% for Korea, 9% for UK and France. It was only around 2% insurance India insurance 1999. Hence the 34th penetration of insurance is low here. The penetration of insurance is also assessed by a ratio of insurance premium to gross domestic savings (GDS). While insurance premium as a percentage of GDS was 52% for UK, 35% for other European and American countries, it was only 9% insurance Indian Insurance 1999. hence even this index indicates low level of penetration of insurance insurance India. The share of India insurance the world market insurance terms of gross insurance premium is again very small for instance while Japan 31%, European union 25%, South Africa 2.3%, Canada 1.7% share of global insurance premium to is only 0.3% for India.

SWOT ANALYSIS OF INSURANCE COMPANIES

STRENGTH

WEAKNESS

Patents Insurance having currently good market Premiums rates are increasing and so on
commissions

Insurance companies are often slow to

respond to changing needs

Buying insurance policy is a cumbersome

process

Product or service similar to competitors It brings new dimensions to insurance sector Variety of products increasing

OPPORTUNITY

THREATS

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 Technology is improving, paper less

transactions are available

weather cycles new substitute product emerging increasing expenses and lower profit
margins will hit hard on the smaller agencies and insurance companies

busy life, customers need flexible and

customizable life

like mobile banking mobile insurance can be

a hit

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CHAPTER-III
RESEARCH METHODOLOGY

[40]

TITLE: DISTRIBUTION ENHANCEMENT OF HDFC STANDARD LIFE INSURANCE COMPANY

Research can be defined as systematized effort to gain knowledge. A research is carried out by different methodology, which has their own pros and cons. Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary purpose for applied research (as opposed to basic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Research methodology is a way to solve research problem along with the logic behind them. Thus when we talk of the research methodology we not only take of research method but also context of our research study and explain why we are using a particular method or techniques and why we are not using other so that research result are capable of being evaluated either by the researchers himself or by others. Research methodology means the method carried out to study the problem. It shows the type of the sample design used, its size and the procedure used to dew sample. The extent of precision achieved and the method used for handling any special problem during the course of the study.

RESEARCH DESIGN AND RESEARCH METHODOLOGY

In this project conclusive research is used. In conclusive research data was collected by descriptive research method. The method applied in descriptive research is cross sectional studies field work and survey. My study concerned with the specific prediction of distribution of insurance policy. It assimilates the narration of facts and characteristics concerning individual, group or situation.T h e o b j e c t i v e o f m y r e s e a r c h i s t o e n h a n c e t h e d i s t r i b u t i o n o f insurance policy of HDFCSL in the market. In the market there are lots of insurance industry is playing and trying to achieve more and more market share. In this situation is very important to sustain in the market and increase share. For this purpose I have done a research on it. For this objective I have used telephone calling and field survey and go to the institute area and try to find out the response of the public aboutHDFCSL and Insurance.7
Research design is a plan, structure, strategy of investigation conceived so as to obtain answer to research question and control variance. Descr,iptive Research

Among the above mentioned type descriptive research design has been chosen. Descriptive research is to find ad efficient sales force, of Management Training. In order the study the characteristics and variables,

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cross sectional analysis was conducted by using field survey method. In the process of field survey, a questionnaire was developed and circulated to the respondents, which formed the basis for entire research

Data source are the data resources or collection of fresh and data to obtain results. There are two types of data sources: thus happen to be original in character. Primary Data: Primary data is that which is collected fresh and thus happen to be original in character. Secondary data: Secondary data is any data, which have been gathered earlier for some other purpose. Among the above mentioned types of data was used for the study and analysis of the objective of this project, also the secondary to data proved to be helping hand in framing up the industry scenario and also the relevant topics in the entire project report. Reason for selecting primary data: In terms of primary data structure questionnaire was prepared to interview the professional, unemployed students, housewives, investment consultant, post office agent and other in Delhi location. Analysis clearly reflected the views and preference regarding the perception of the people towards joining HDFC LIFE INSURANCE. SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. SAMPLE SIZE The sample size for the survey conducted was 166 respondents. This sample size was taken on 95% confidence level and 6 significant levels. Data universe for this sample is 10, 00,000 which is approx population of Delhi excluding people below age of 18 years. PLAN OF ANALYSIS Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively. STUDY AREA The samples referred to were residing in Delhi City. The areas covered were Shastri Nagar, Sub hash Nagar, City Area and Kamla Nagar.

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CHAPTER-IV
DATA REDUCTION, PRESENTATION & ANALYSISAND INTERPRETATION
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A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA 1. How much percentage of respondents is aware of insurance industry in different age group profile? Age group Below 20 years 20-30 years 30-40 years 40-50 years More than 50 years No. of Respondents (%) 1.18% 33.73% 22.89% 15.26% 25.90%

33.73% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Below 20 years 20-30 years 30-40 years Age Group 40-50 years More than 50 years 1.18% 22.89% 15.26% 25.90%

Analysis and Interpretation:

1.18% of the respondents fall in the age group of below 20 years. 33.73% fall in the age group of 20 30 years. 22.89% fall in the age group of 30 40 years.

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15.26% fall in the age group of 40-50 years. 25.90% fall in the age group of above 50 years. Therefore most of the respondents are relatively young (below 30years of age).

2.How much percentage of respondents is aware or unaware about life insurance in total?

Life insurance Aware Unaware

No. of respondents % 88.55% 11.45%

11.45%

Aware Unaware

88.55%

Analysis and Interpretation: Out of total 166 respondents only 88.55% of people are aware about life insurance policies Rest about 11.45% of people are there in Delhi who are unaware with the benefits of insurance policies. So there is a very big scope for life insurance companies to cover these people So in future business of life insurance will grow further.

3.How much percentage of respondents is familiar with the HDFC life insurance?

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HDFC life insurance aware unaware

No. of respondents % 55% 45%

HDFC LIFE INSURANCE

aware 45% 55% unaware

Analysis and Interpretation: 55% of people are aware about HDFC life insurance policies but still about 45% of people are there in Delhi who are unaware with the benefits of insurance policies.

4.How MUCH percentage of respondents hasaware about HDFC life insurance through different parameters?

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Parameter TV Friends Hoardings Newspapers

No. of Respondents % 28.31% 25.30% 12.65% 33.73%

33.73% 35.00% 30.00% NO. OF RESPONDENTS 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% TV Friends Hoardings Newspapers PARAMETER 12.65% 28.31% 25.30%

Analysis and Interpretation:

From the chart above it can be seen that the respondents purchase life insurance to secure their families, 28.31% of the respondents purchase insurance because of the influence of watching TV, 25.30% purchase insurance on the advice of their friends, 12.65% purchase insurance because of the influence of seeing hoardings, 33.73% purchase insurance because of the influence of reading newspapers. The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of the uncertain death of the policy holder. 5.What is the percentage of respondents that are aware of unit linked insurance plans?

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Awareness of Unit Linked Plans Yes No

No. of Respondents % 43.98% 56.02%

ULIP AWARENESS
60.00% NO. OF RESPONDENTS 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Yes No 56.02% 43.98%

Analysis and Interpretation:

43.98% of the respondents are aware of Unit Linked life insurance plans and 56.02% of people are unaware about such plans. These plans should be promoted through advertising. The company can advertise through television, radio, newspaper and pamphlets. This would increase awareness and arouse curiosity in the minds of the consumer which would enable the company to market its products more effectively. Unit-linked plans are those where the benefits are expressed in terms of number of units and unit price. 6.HOW much percentage of respondents hasinvested in mutual fund or share of HDFC ?

Investment in mutual fund or share

No. of respondents %

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Yes No

33.73% 66.27%

70.00% 60.00% 50.00% 40.00% NO. OF RESPONDENTS 30.00% 20.00% 10.00% 0.00% Yes 33.73%

66.27%

No

INVESTMENT IN MUTUAL FUND AND SHARE

Analysis and Interpretation:

66.27% of respondents do not invest in mutual fund or share in HDFC life insurance and 33.73% of respondents invest in it. The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of the uncertain death of the policy holder.

7. What percent of respondents consider what parameters while purchasing an insurance policy?

Parameters Higher return

No. of respondents % 28.31%

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Security Higher return and security

12.04% 59.65%

59.65% 60.00% 50.00% NO. OF RESPONDENTS 40.00% 30.00% 20.00% 10.00% 0.00% Higher return Security PARAMETERS Higher return and security 12.04% 28.31%

Analysis and Interpretation:

59.65% of the respondents purchase life insurance to get high returns and to secure their families. 28.31% of the respondents purchase life insurance to get high returns and 12.04% of the respondents purchase life insurance to get security. The main purpose of insurance is to cover the financial and economic loss that occur to the family in case of the uncertain death of the policy holder.

SUMMARY AND FINDINGS

Chapter-VI: Summary & Conclusions

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Analysis of a research project is based on the primary data and secondary data which are being collected from various sources to take out some conclusions of the research study being taken. In my project my purpose was to find the market credibility of HDFC LIFE among various other private life insurance companies. For this a population of 166 people was being interviewed having different lifestyles, different incomes, different occupations yet the point which was kept in mind was that this interviewed population was insurable. 88.55% are aware Life Insurance. 45% are aware HDFC LIFE Life Insurance. People viewing insurance as a tax saving and investment instrument as much as a protective one. There is great opportunity for Insurance companies as there is a is a rise in number of people who want to invest in share market but dont have time and knowledge to do so, also these people want to take less risk . Young people these days are particularly more interested in insurance because they see insurance as safe bet. Also these people have large disposable incomes and risk taking capability too. The bad part is people are still ignorant about insurance and different schemes about insurance; hence it is very necessary to educate them about insurance. Advertising can also play a major part as it has been seen that people buy insurance looking at the brand name.

RECOMMENDATIONS Sending brochure through agents to the respondents who could be the potential customer. To inform the agents that they need to talk about higher return & security to the customers. Promoting ULIP to the respondents who invest in mutual fund & share.

CONCLUSION

I have come to know about the customer perception about the insurance sector and how it varies with their behaviors and cultures this helps me increase my marketing skills, have more knowledge about the products and improve my communication skills. I have also come to know how to talk with different types of customers in different situations and I am able to solve their queries in a more effective way. All the insurance company must advertise more in the market because not all people know more about life insurance policy.

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 Most number of people wants guaranteed returns so company must focus on this for the customer investment. Make insurance policy which can buy any one so we can insurance them through this type of life insurance policy.

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