UNIVERSITY OF MUMBAI

PROJECT REPORT

ON

“A COMPARATIVE STUDY OF LIFE INSURANCE SERVICES

BY PUBLIC & PRIVATE SECTOR”

SUBMITTED BY:

RAJPUROHIT AAKRUTI

THE AWARD OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES(BMS) SEM-VI

GUIDED BY:

PROF. SAIF ANSARI

PADMASHRI ANNASAHEB JADHAV BHARATIYA SAMAJ UNNATI MANDAL’S

B.N.N. COLLEGE, BHIWANDI

DIST. THANE 421302

 DECLARATION

I, Miss. RAJPUROHIT AAKRUTI, Exam No:____________ Student of

B.N.N College, Bhiwandi of T.Y.B.Com (BACHELOR OF MANAGEMENT
STUDIES), Semester VI, hereby declare that I have completed project on
“A COMPARATIVE STUDY OF LIFE INSURANCE SERVICES BY PUBLIC
& PRIVATE SECTOR” is a record of independent research work carried by me

during the academic year 2022- 23 under the guidance of PROF. SAIF ANSARI.

The information submitted is true and original to the best of my knowledge.

RAJPUROHIT AAKRUTI
 SELF-FUNDED COURSES
“A” NAAC Accredited
“BEST COLLEGE AWARD 2018-2019”

CERTIFICATE

This is to certify That RAJPUROHIT AAKRUTI, Seat No.:___________of

T.Y.B.Com (BACHELOR OF MANAGEMENT STUDIES), B.N.N College,
Semester VI (Academic Year 2020-23) has successfully completed the
project entitled “A COMPARATIVE STUDY OF LIFE INSURANCE SERVICES
BY PUBLICE & PRIVATE SECTOR ” and submitted the project report in
partial fulfillment of the requirement for the award of the Degree of
T.Y.BCom (Bachelor Of Management Studies) of University of Mumbai.

Prof. Saif Ansari Dr. Kalpana Patankar Jain Dr. Ashok D.Wagh
(Project Guide) (Co-ordinator) (Principal)

Examiner: __________

Date: __________

College Seal :
 ACKNOWLEGMENT

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous. I would like to acknowledge the following as being
idealistic channels and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do

this project. I would like to thank my Principal, Dr. Ashok D.Wagh for providing the

necessary facilities required for completion of this project. I take this opportunity to

thank our Co-ordinators, Dr. Kalpana Patankar and Dr. Vikas Ubale for their moral

support and guidance. I would also like to express my sincere gratitude towards my

project guide Prof. Saif Ansari whose guidance and care made the project successful.

I would like to thank my College Nirlon Library, for having provided

various reference books and magazines related to my project.

Lastly, I would like to thank each person who directly or indirectly

helped me in the completion of the project especially my parents and
peers who supported me throughout my project.
 INDEX

Sr. No. CONTENTS Page No

1 INTRODUCTION
2
3
4
5
6
7
 RATIONALE OF THE STUDY:

Why the need for the study?

To compare the public and private sector companies to identify

which company is the market leader.
To understand their financial performance and services.

What information will the study add?

This research will help in analysis of both the sectors.

This research will make us understand the sector, market
share, financial strength and quality of their business.

INTRODUCTION OF THE INDUSTRY:

Insurance is the backbone in managing the risk of the country. The insurance
providers offer diversity of products to business, thus ensuring protection
from risk thereby guaranteeing financial stability. It helps individual and
organization to minimize the consequences of risk which impart significant
cause on the growth and development of insurance industry. Insurance plays a
key role in stabilizing the economy, trade and commerce.
What is Life Insurance?

Life Insurance is defined as a contract between the policy holder and

the insurance company, where the life insurance company pays a
specific sum to the insured individual's family upon his death. The life
insurance sum is paid in exchange for a specific amount of premium.

The Indian Insurance Industry is divided into 2 basic sectors – Life

Insurance and Non-life Insurance (also called General Insurance) Both
these sectors are regulated by Insurance Regulatory and Development
Authority (IRDA) of India which is a government body which frames the
rules for the entire industry and all insurance companies have to abide
by them. IRDA is the policy maker for the entire insurance industry in
India and also serves as the custodian of consumers rights.

Growth of Life Insurance Industry

As an industry, insurance is regarded as a slow-growing, safe sector for

investors. This perception is not as strong as it was in the 1970s and 1980s. A
Brief Overview of the Insurance Sector, the Indian Insurance has been growing
rapidly since 2000, as it was liberalized after more than 50 years of monopoly
of LIC, where private life insurers have entered the insurance sector with
innovative practices leading to more business. Indian consumers, who have
always seen life insurance as a tax saving system, are now suddenly turning to
the private sector and snapping up the new innovative products on offer. The
Private players have taken some market share from LIC, and major growth has
happened because of market expansions. The Indian Insurance Industry is
getting ready for new era, where it is building world-class risk Management
capability. The insurance industry has come a long way from being an open
competitive market to nationalized then back to a liberalized market in India.
Current market Scenario

According to Indian Insurance Industry Latest Report, the insurance industry of

India has 58 insurance companies 24 are in the life insurance business, while 34
are non-life insurers (25 general insurers, 7 standalone insurers, 2 specialized
insurers). Among the life insurers, Life Insurance Corporation (LIC) is the sole
public sector company. According to (McKinsey, 2007) it was estimated that India
is likely to emerge as the fifth largest market in the world by 2025.
In India, most private companies have entered into business with collaboration
with established Insurance Companies in the world, both in the life and non-
life Insurance Sectors. These global players skills contribute to the
performance of the Indian insurance sector, as it replicates the learning
acquired from other industries over a long span of time. The international
partner of any insurance firm in India is not allowed to own more than 26% of
the shares in Indian insurance company as per IRDA regulations. We have
seen big financial groups in India like SBI, ICICI and HDFC enter this pace and
become aggressive players. Other famous corporate groups like the Tata’s,
Birla’s and the Ambani’s have also formed insurance companies.
 INTRODUCTION TO THE COMPANY:

For the purpose of the present study, two renowned public and
private sector life insurance companies namely, Life Insurance
Corporation (LIC) and HDFC Life Insurance were selected.

Profiles of the selected insurers are as follows:

a) Life Insurance in public sector

Life Insurance Corporation

Life Insurance Corporation of India (LIC) is an Indian public sector life

insurance company headquartered in Mumbai. It is India's largest
insurance company as well as the largest institutional investor with
total assets under management worth ₹41 trillion (US$510 billion) as
of May 2022. It is under the ownership of Government of India and
administrative control of the Ministry of Finance.
The Life Insurance Corporation of India was established on 1 September
1956, when the Parliament of India passed the Life Insurance of India
Act, nationalizing the insurance industry in India. Over 245 insurance
companies and provident societies were merged together.
LIC reported 290 million policyholders as of 2019, a total life fund of ₹28.3
trillion, and a total value of sold policies in the year 2018–19 of ₹21.4
million. The company also reported having settled 26 million claims in
2018–19. It ranked 98th on the 2022 Fortune Global 500 list with a revenue
of ₹775,283 crore (US$97 billion) and a
profit of ₹4,415 crore (US$550 million).
 Objectives Of LIC

Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-

linked savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full

realization that the moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that

would arise in the changing social and economic environment.
Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by
providing efficient service with courtesy.

Promote amongst all agents and employees of the Corporation a sense

of participation, pride and job satisfaction through discharge of their
duties with dedication towards achievement of Corporate Objective.

Corporation crossed 1000.00 crores only in the year 1969-70, and it took
another 10 years for LIC to cross 2000.00 crore mark of new business.
But with re-organisation happening in the early eighties, by 1985-86 LIC
had already crossed 7000.00 crore Sum Assured on new policies.
 Mission and Vision of LIC of India

Mission

"Ensure and enhance the quality of life of people through financial security
by providing products and services of aspired attributes with competitive
returns, and by rendering resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of

significance to societies and Pride of India."
 LIC Life Insurance Key Features

Hassle-free claim settlement

No lengthy documentation.

Simple insurance purchase procedures.

Can purchase a policy online instantly.

Dedicated customer support team.

Online Availability.

Benefits of LIC Life Insurance

Variety of Plans: Life Insurance Corporation (LIC) offers life insurance

policies for individuals, families, senior citizens, and childless couples.
They offer a variety of plans with different features and benefits;
including term plans, whole life policies, endowment plans, and ULIPs.

Easy claim Settlement: LIC provides a simplified claim procedure.

This is the reason perhaps why it provided the highest percentage
of Claim Settlement Ratio.

Excellent Customer support: The customer support of LIC is one of

the best in the industry.

Trust ensured: LIC is the most trusted insurance company with hundreds
of recognitions and awards and LIC policy is trusted by millions of people.
 Life Insurance Corporation has received awards, few of them:

LIC adjudged as "Best life insurance Company of the year" at the

"2nd"NDTV Profit Business Leadership Awards-2007.

LIC adjudged the "Most Preferred Life insurance Company of the year" at
the "CNBC AWAAZ" consumer award 2007 for 3rd time in succession.

Adjudged "The most trusted service Brand" in India, by "Economic Times

and AC NEILSEN ORG MARG" for the year 2007 for the 5th consecutive year.

"Golden Peacock" award for Excellence in "corporate Governance"

 Types of LIC Life Insurance Plans

Type of Plans LIC Life Insurance Plans

Term Life Insurance Plans LIC’s TECH TERM LIC’s

Jeevan Amar LIC’s
Saral Jeevan Bima

Whole Life Insurance Plans LIC’s Jeevan Umang

Money-Back Plans LIC’s New Bima Bachat

LIC’s New Money Back Plan-20 Years

Endowment Plans LIC’s New Endowment Plan

LIC’s New Jeevan Anand

Pension Plans Pradhan Mantri Vaya Vandana

Yojana LIC’s New Jeevan Shanti
LIC’s Saral Pension

ULIP Plans LIC’s NIVESH PLUS

LIC’s SIIP
LIC’s NEW ENDOWMENT PLUS

Micro Insurance Plans LIC’s Bhagya Lakhsmi

LIC’s New Jeevan Mangal
LIC’s Micro Bachat Plan

Health Plans LIC’s Cancer Cover

LIC’s Arogya Rakshak

Withdraw Plans LIC’s Bhagya Lakhsmi

LIC’s New Jeevan Mangal
LIC’s Jeevan Arogya

Group Plans LIC's Group Credit Life Insurance

LIC's Single Premium Group
Insurance Micro Term Assurance
Plan LIC’s Group Assurance plan
b) Life Insurance In private sector

HDFC Life Insurance

HDFC Life Insurance Company Ltd. is a long-term life insurance

provider with its headquarters in Mumbai, offering individual and
group insurance services and it was incorporated on 14 August 2000.
The company is a joint venture between Housing Development Finance
Corporation Ltd (HDFC), one of India's leading housing finance
institutions and Abrdn, a global investment company. As of 31 March
2020, the promoters; HDFC Ltd. and Standard Life (Mauritius Holdings)
2006 Ltd. hold a 51.69% and 34.75% stake in HDFC Life respectively.
The remaining equity is held by public shareholders.
HDFC Life obtained the certificate of commencement of business on 12
October 2000 and a certificate of registration from Insurance Regulatory and
Development Authority of India (IRDAI) to undertake the life insurance
business on 23 October 2000. HDFC Life has 421 branches and is present in
980+ cities, villages, and towns in India and supported by 16,544 employees.
The company has also established a liaison office in Dubai. HDFC Life
distributes its products through a multi-channel network consisting of
Insurance agents, Bancassurance partners (HDFC Bank, Saraswat Bank, RBL
Bank), a Direct channel, Insurance Brokers, MFIs (Micro Finance Institutions),
SFBs (Small Finance Banks), etc. and 39 partnerships within non-traditional
ecosystems and an Online Insurance Platform and currently one of the leading
financial service providers in India offering finance in varied sectors like
housing, banking, life insurance and general insurance, asset management
and education loans and many other products.
 Objective

To study the Insurance sector industry in India.

To study the marketing strategies of HDFC Life Insurance.
To analyze the market share of HDFC Insurance in life insurance sector.

To study the strategies of the competitors of HDFC Life Insurance.

To study the market size of different insurance companies.

To differentiate the company with its market competitors.

HDFC Life Insurance Key Features

No lengthy documentation process for buying an HDFC life insurance policy.

HDFC Life offers a various range of life insurance plans such

as protection, retirement, savings, health, and investment.

The company also provides add-ons to enhanced

protection for an extra premium.

The company has a healthy claim settlement ratio which means its claim
settlement process is hassle-free and it offers good service to its customers
 Mission and Vision of HDFC of India

Mission

" We want to create an environment of possibilities for our customers

and employees by implementing effective business processes through
commitment to quality, responsiveness and resourcefulness."

Vision

'To provide innovative and customer centric insurance plans that

can help our customers secure their family's future as well as
help them with other benefits such as tax savings.
 Benefits of HDFC Life Insurance

Claim Settlement Ratio: HDFC Life Insurance Company provides every

policyholder have the financial security for their family in case any
death/demise happens the insurer will give hassle-free services. As per the
IRDAI report, the HDFC Life insurance claim settlement ratio is 99.07%.

Life Cover till 99 years: To ensure your financial protection for

the family when you are not around with a life cover up to 99
years at affordable premiums.

Corona Kavach Add-on: This add-on covers you from expenses

spent for hospitalization, PPE kit, gloves, Masks, etc. if you are
affected with Corona kavach/covid-19.

Accidental Death Benefit: This accidental death covers you with additional
payouts in case of any death that happened by a road accident.

Critical Illness Benefit: The critical illness covers you with 19 illnesses that will
secure your family against the loss of income due to any illness diagnosed.

1 Day Claim Settlement: HDFC Life insurance will pay interest on

your death claim amount for every single day and it is eligible only
for online policy purchases.
HDFC Life Insurance has received awards, few of them:

In 2021, the company was awarded the Super Brand, for the
8th time in a row.

The company also won the 11th Aegis Graham Bell

Award for Innovative digital transformation for Vision AI.

HDFC Life wins the ‘Best Governed Company Listed

Segment: Large Category’ at the 21st ICSI National Awards
for Excellence in Corporate Governance.

Winner of ‘ Innovative Fundraising Campaign’ awards for

India Giving Challenge 2013.

HDFC Life Insurance was awarded with ‘Yuva Unstoppable

Corporate Icon Award’ from Dr. APJ Kalam in Sept’2010.
 HDFC Life Insurance Plans

Type of Plans HDFC Life Insurance Plans

Term Plans HDFC Life Click 2 Protect Life

HDFC Life Saral Jeevan Bima

Savings Plans HDFC Life Sanchay Plus

HDFC Life Sanchay Par Advantage
HDFC Life Sanchay
HDFC Life ClassicAssure Plus
HDFC Life Super Income Plan
HDFC Life Sampoorn Samridhi Plus
HDFC Life Uday Plans
HDFC Life Pragati Plans

ULIP Plans HDFC Life Click 2 Wealth

HDFC Life Click2Invest ULIP
HDFC Life ProGrowth Plus
HDFC SL ProGrowth Super II
HDFC SL Crest
HDFC SL ProGrowth Flexi
HDFC Life Smart Woman Plan

Pension Plans HDFC Life New Immediate Annuity

Plan
HDFC Life Click 2 Retire
HDFC Guaranteed Pension Plan
HDFC Life Personal Pension Plus

Child Plans HDFC Life Click 2 Wealth

HDFC Life Click 2 Retire
HDFC Life Youngstar Udaan

POS Plans HDFC Life Guaranteed

Savings Plan

Combo Plans HDFC Life Sanchay Maximiser

 Comparison of LIC vs HDFC Life Insurance

Here are some of the key parameters based on which they

differ from each other:

Parameter LIC HDFC

Claim Settlement 98.62% 98.66%

Ratio
Solvency Ratio 1.83 1.91

Online Availability Yes Yes

Life Cover Up to 99 years Up to 99 years

Riders Available Available

Number of Branches 2048 421

Available
Premium Payment Regular Pay, Single Regular Pay, Single

Term Pay, Limited Pay Pay, Limited Pay

Premium Payment Yearly/Half-yearly/ Yearly/Half-yearly/

Mode Quarterly/ Monthly Quarterly/ Monthly

Conclusion:

Life insurance provides financial protection against the risk of death. It

is typically used to provide an income to a spouse and children after
the death of the primary wage earner. So, before deciding on the best
policies check all the features and benefits of LIC life insurance and
HDFC life insurance before concluding the right insurance policy.