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“A Critical Study of Different segmentation of

insurance product”

Summer Project Report


Submitted by

Mirtunjay Kumar Singh


[Reg. No. 091512101036]

In June-July’2010
In partial fulfillment of the degree
of
Master of Business Administration

in

Marketing

Under the

Faculty of Management Studies

Dr MGR
Educational and Research Institute
UNIVERSITY
(Established u/s 3 of UGC Act, 1956)
N.H.4, Periyar EVR Road
Maduravoyal, Chennai - 600 095
“A Critical Study of Different segmentation of
insurance product”

Summer Project Report


Submitted by

Mirtunjay Kumar Singh


[Reg. No. 091512101036]
In June-July’2010

In partial fulfillment of the degree


of
Master of Business Administration

in

Marketing

Under the Guidance of

Mr. Jim Corbett.A


Channel Development Manager
HDFC SLIC
Mogappair
CHENNAI

Dr MGR University
[Established u/s 3 of UGC Act]
Department of Management Studies

DECLARATION

I declare that the Project Report entitled “A Critical Study of

Different segmentation of insurance

product”submitted by me for the degree of Master of Business

Administration is the record of work carried out by me during the period

June to July’2010 in HDFC SLIC under the guidance of Mr. Jim Corbett.A

[Channel Development Manager] and has not formed the basis for the

award of any degree, diploma, associate ship, fellowship, titles in this or

any other University or other similar institution of higher learning.

Counter Signature of the coordinator Student

Date:
--------------------------------
Dr MGR University
[Established u/s 3 of UGC Act]
Department of Management Studies

BONAFIED CERTIFICATE

We certify that the Project entitled “A Critical Study of

Different segmentation of insurance product” submitted

for the degree of Master of Business Administration by Mr Mirtunjay

Kumar Singh [Reg. No. 091512101036 ] is the bonafide record of

Project Work carried out by him during the period from june to

july’2010 under the guidance and supervision of Mr. Jim Corbett.A [Channel

Development Manager] and, that this work has not formed the basis for the

award of any Degree, diploma, associate ship, fellowship or other titles

in this University or other similar institution of higher learning.

Coordinator Head of Dept.

Date: Date:

ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere thanks and

deep gratitude to all the people who extended their wholehearted and

support in enabling me to complete this project.

First of all I wish to acknowledge my project guide Ms. Archana Bai for

her valuable guidance and constant encouragement, which immensely

helped me throughout my project work. I also wish to express my

gratitude towards all the Library staff for their patience and help.

I wish to thank my friends for their moral support. I am also grateful to

my family members for their continued patience, support and interest

in the progress of my work.

All these people and the help they rendered, motivated me to

complete this project report in the best possible way.

MIRTUNJAY KUMAR

SINGH
Declaration

Bonafide certificate

Acknowledgement

TABLE OF CONTENTS

Bibliography

Chapter No. Chapter Name Page No.

01 INTRODUCTION 1-7

02 COMPANY PROFILE 8 - 19

03 REPORT 20 - 25
INTRODUCTION

Chapter-I

INTRODUCTION
Introduction- Objective of the study- Scope
of the study- Limitation of the study

1.1 Introduction
The outlook of the modern day investors has undergone a dramatic change. In
the changed fiscal scenario with drastic fall in the interest for investment and the
volatile capital market with limited investment options insurance has rescued all.
Investment in insurance has become the style of the day. The individual looks at
buying an insurance policy more of an investment, which comes with the
additional benefits of life cover and tax benefit also.
I did my project on policies and position of HDFC Standard Life Insurance
Company limited. Under my project I met many people and took their view about
the insurance companies in the market. This helped me to gather information to
proceed in knowing how HDFC Standard Life Insurance Company Limited is
trying to make itself different from other players in the market. This further helped
to know the position of company.
1.1.1 Types of Insurance
 Life insurance

 Non- life insurance

• Life insurance

Life insurance covers human life, risk-sharing plan through which individuals
makes contributions during the years, they earn to meet their family requirement
in the event of untimely death or after retirement.
The life of the earning person in the family is very important to him as well as
other member’s life. If anything happens to earning person then the whole family
will in deep trouble. If the life-earning member insured, then if anything happens
to him then family members don’t have to worry about their survival, as insurance
company will indemnify the family.
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• Non-life insurance-
Non-life insurance is popularly known as general insurance. General insurance
covers variety of risks other than the life. Like life insurance it is also contract
between two parties i.e. insurance and insured. The contract of General
insurance is for the period of one year only.
1.1.2 Insurance Sector Reforms
In 1993, The Malhotra Committee was formed to evaluate the Indian insurance
industry and give its recommendations. The committee came up with the
following major provisions:
• Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry

• Foreign companies may be allowed to enter the industry in collaboration


with the domestic companies

• Only one State Level Life Insurance Company should be allowed to


operate in each state

• It was only after this committee came into effect that the regulatory body
for insurance sector was formed with the name of IRDA

1.1.3 Impact Of Liberalization


The introduction of private players in the industry has added to the colours in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the long time monopoly of the market LIC.
Since the advent of the private players in the market the industry has seen new
and innovative steps taken by the players in this sector.
The new players have improved the service quality of the insurance. As a result,
LIC down the years has seen the declining phase in its career. The market share
was distributed among the private players. Though LIC still holds the 75% of the
insurance sector, the upcoming nature of these private players is enough to give
2
more competition to LIC in the near future. LIC’s market share has decreased
from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of
the market share of the insurance industry.
1.2. Objectives of the study
1.2.1 Definition
The objective of the study defines the way of doing things for reaching the
organizational goal one by one individual to get the customers view about the
organization and their interest towards the product of the company. The quality of
the customer satisfaction survey depends on the quality of the research
methodology.
Objective is the most basic planning tools underlying all planning and strategic
activities. On the basis for policy and performance appraisals, and act as glue
that binds the entire organization together. Through this objective of the study, I
studied the various kinds of insurance product. Such as HDFC endowment super
plan, HDFC Young Star Super plan, HDFC Endowment Super Suvidha plan and
Young Star Super Suvidha plan.
1.2.2 Purpose
The purpose of any study is purely based on its objectives. Mainly the objective
can be categorized into two i.e. primary and secondary objectives. Primary
objective is the main and apart from this numerous factors which have high
importance remain unspoken. These factors play a vital role in defining the
objective.
The objective includes finding out the current trends in the market and what the
competitor’s product offering are. Also, market share of the players is too bound
and the recommendations to increase the market share for HDFC standard life
were to be given. In short it can be said that it was all about studying the market
properly. and also for attracting more and more customer regarding the
insurance products. so far it is considered for the insurance product because
HDFC SLIC has the some of the which is really beneficial for the customer.
1.2.3 Importance of the study
3
Objective of study is important for getting the result. In HDFC standard life
insurance has so many different types of insurance product. Before doing the
analysis of the data and interpretation, it is very important to set the objective.
And for the distribution of questionnaire it is also very important.
With the help of objective you can determine the process of interpretation of the
data. This is needed for giving the reasonable conclusion and finally the findings
and recommendation these are also depend upon to the setting of objective.
1.2.4 Need & objective of the Study
HDFC SLIC Ltd is a successful company as is evidence in its human resources
performance. Evaluation of human resources performance of a company is a
continuous process for understanding the direction in which the company is
moving so as decide and implement the future course action with a view to
achieve the objectives the best interest of the organization. So, with the given
information I was asked to find out the human resources performance of the firm
and to submit a report with conclusion and suggestion for the better for the
employees who work in the company.
1.2.5 Types of objective
 Primary Objective

 Secondary Objective

• Primary Objective

I. To understand the underlying reason for investment in HDFC SLIC


company.
II. To analyze the customer awareness about HDFC Standard Life
Insurance.
• Secondary Objective

I. To determine the basic objective of investors in this company.


4
II. To determine the interest of investing in this particular company.
III. To determine the Investors in children’s policy in this company.
IV. To find out the beneficial view of insurance product in this Company.
For the purpose of research it was absolutely imperative for me to find out what
the consumers want from their policy provider. It was also necessary to find out
the consumers profile, i.e. his age, income, occupation, investment time frame
and gender and also the current policy taken. This required me to get a detailed
questionnaire filled by the concerned person. All the analysis in the report is
drawn out of these questionnaires.
1.3 Scope of the Study
1.3.1 Meaning of the scope
The general aim of study was to choose, develop and experiment with some
evaluation method applicable to product design and capable of facilitating
ergonomics related decision making. User participation was aimed to be an
essential part of the experimental evalution.Every project or study has certain
scope and limitation. The main scope and limitation of this study.
1.3.2 Scope of the Study
This will actually promote the insurance products offered by HDFC Standard Life
insurance.
 It will help the company to make its goodwill among the people.

 It will help the company in adopting strategies to lead in the market.

 It will help the company to have more customers.

 It develops the good relationship between the company and people.

 It is fully related with companies profit and its need.

 It will build the companies goodwill among the people.

 It will help the people to go for the best investment.

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 It increase the customers trust in company.

 This study is necessitated to find out response towards insurance product.

 This study to get firsthand knowledge about the attitude and opinion of
customer about HDFC slic product.

 The study has been conducted for a period of 2 months.

 The number of respondent taken for survey is 52.

 The study will be useful to HDFC SLIC managers and financial advisors.

1.4 Limitation of the Study


1.4.1 Meaning of the Study
There was difficulties/obstacle faced during the initial part of the project, which
were however overcome successfully. Give that a natural language such as
English contains, at any given time, a finite number of words, any comprehensive
list of definitions must either be circulator leave some terms undefined. If every
term of defines must itself be defined, “where at last should we stop?” a
dictionary, for instance, insofar as it is a comprehensive list of local definitions,
must resort to circularity.

1.4.2 The list of limitation of the study


 To convince the people for a proper interviewing process is also difficult

 Compilation of data on competitor analysis was difficult

 The result of this sample size may not be applicable to whole population

 I worked purely on the data provided by the company and the data
gathered by primary research hence no further analyses and research
could be done.

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 The competitor analysis in the manual could only be compiled for a rough
idea to the nature of the product.

 It was quite difficult to get appointments with few of the respondents.

 It will be successful only when all respondents will cooperate properly.

 As the sample size is small the outcome cannot be generalized.

 This study was done for short period, which might not hold true in long
run.

 Reluctance on the part of the respondents to give the necessary


information was found and to that extent there are limitations to analysis.

7
STUDY PROFILE
Chapter- II

STUDY PROFILE
Industry profile- Company profile- Product Profile- History of the
company- Activity of the company

2.1 Industry Profile


HDFC is India’s leading housing finance institution and has helped build more
than 23, 00,000 houses since its corporation in 1977. In Financial year 2003-04
its assets under management crossed Rs 36,000 cores. Rated ‘AAA’ by CRISIL
and ICRA for the 10th consecutive year, stable and experienced management,
high service standard.
2.1.1 Standard Life Group
The standard life group has been looking after the financial needs of customers
for over 180 years. It is a leading pensions provider in the UK and is rated by
Standard and Poor’s as ‘strong’ with the rating of A+ and as ‘good’ with a rating
of A1 by Moody’s. It got ‘Best Flexible Mortgage Lender’ at the Mortgage
Magazine Awards in 2006.
2.1.2 HDFC – Standard Life Insurance
HDFC, founded in 1977, has grown to be a leader in housing finance and now
has a wide branch network spread across the country. It has 75 branches across
the country. HDFC Standard Life Insurance HDFC Standard Life Insurance
Company is a joint venture between India's largest housing finance provider,
HDFC and Europe's largest mutual life assurance company - The Standard Life
Assurance Company (U. K).
HDFC Ltd is India's leading housing finance institution whereas Standard Life plc
is also a major financial service provider in the United Kingdom. We can really
rely upon these two companies as they are known to provide ethical dealings.
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The financial service groups of HDFC Standard Life Insurance employ financial
experts and they offer reliable suggestions on profitable long term investment
plans. These solutions are customized according to the need of the clients. The
HDFC Standard Life Insurance is known to have served more than 1.6 million
individuals till date.
2.1.3 Insurance Industry in India
With the largest number of the insurance policies in the forces in the world,
insurance happens to be a mega opportunity in India. It’s a business growing at
the rate of 15-20 percentages annually and presently is of the order of rupees
1560.41 billion. Together with banking service it adds about 7% to the countries
grows domestic product. The gross premium collection is nearly 2% of GDP and
funds available with LIC of investment are 8% of the GDP.
2.1.4 Foreign Partner Standard Life, UK
Standard Life, UK, founded in 1825, has been at the forefront of the UK
insurance industry for 175 years by combining sound financial judgment with
integrity and reliability. It is the Largest Mutual Life Company in Europe and has
total assets of Rs. 5, 50,000 cores.
It is one of the very few insurance companies in the world to have received 'AAA'
rating from two of the leading international credit rating agencies, Moody's and
Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in
U.K. by the Independent Brokers called IFAs
2.1.5 Mission
HDFC aims to be the top new life insurance company in the market.
This doe’s not just mean being the largest or the most productive company in the
market; rather it is a combination of several things like-
• Customer service of the highest order

• Value for money for customers

• Professionalism in carrying out business

• Innovative products to cater to different needs of different customers

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• Use of technology to improve service standards

2.1.6 Values:
• Security: Providing long term financial security to the policy holders is
their constant endeavor. The company does this by offering life insurance
and pension products.

• Trust: The Company appreciates the trust placed by our policy holders in
us. Hence, we will aim to manage their investments very carefully and live
up to this trust.

• Innovation: Recognizing the different needs of our customers, we will be


offering a range of innovative products to meet these needs. Our mission
is to be the best new life insurance company in India and these are the
values that will guide us in this.

2.1.7 Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has
the financial expertise required to manage the long-term investments safely and
efficiently.
2.1.8 Range Of Solutions
It has a range of individual and group solutions, which can be easily customized
to specific needs. The group solutions have been designed to offer complete
flexibility combined with a low charging structure.
2.1.9 HDFC Standard Life
HDFC Standard Life believes that establishing a strong and ethical foundation is
an essential prerequisite for long-term sustainable growth. To ensure this, we
have concentrated our focus on expansion of branch network, organizing an
efficient and well trained sales force, and setting up appropriate systems and
processes with optimum use of technology. As all these areas form the basic
infrastructure for establishing the highest possible customer service standards.
2.2 Company profile
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2.2.1 Introduction
The insurance sector in India has comes a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries. The business of life
insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life Insurance
2.2.2 Insurance market in India
India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for
global insurance majors. The insurance sector in India has come to a position of
very high potential and competitiveness in the market. Innovative products and
aggressive distribution have become the sway of the day. Indians, have always
seen life insurance as a tax saving device, are now suddenly turning to the
private sector that are providing them new products and variety for their choice.
2.2.3 Historical perspective
The history of life insurance in India dates back to 1818 when it was conceived
as a means to provide for English Widows. Interestingly in those days a higher
premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered more risky for coverage. The Oriental Assurance Company was
established in 1880. The General insurance business in India, on the other hand,
can trace its roots to the Triton (Total) Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the
British.
The Bombay Mutual Life Insurance Society started its business in 1870. It was
the first company to charge same premium for both Indian and non-Indian lives.
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of
11
15-20 per cent annually. This, itself, is an indicator that growth potential for the
insurance sector is immense. Together with banking services, it adds about 7 per
cent to the country’s GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international
standards. And this part of the population is also subject to weak social security
and pension systems with hardly any old age income security. It is estimated that
over the next ten years India would require investments of the order
2.2.4 Some of the important milestone in the life insurance business in
India
 1912: The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business.

 1928: The Indian Insurance Companies Act enacted to enable the


government to collect statistical information about both life and non-life
insurance businesses.

 1938: Earlier legislation consolidated and amended to by the Insurance


Act with the objective of protecting the interests of the insuring public.

 1956: 245 Indian and foreign insurers and provident societies taken over
by the central government and nationalized. LIC formed by an Act of
Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 core from
the Government of India.

2.2.5 Key Players


Mr. Deepak S Parekh is the chairman of the company. He is the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC Limited).
He joined HDFC Limited in a senior management position in 1978. He was
inducted as a whole time director of HDFC Limited in 1985 and was appointed as
its executive chairman in 1993. He is the chief executive officer of HDFC Limited.
Mr. Parekh is a fellow of the institute of chartered accountants.
12
Mr. Deepak M Satwalekar is the Managing director and CEO of the company
since November, 2000. Prior to this he was the managing director of the HDFC
Limited 1993. Mr. Satwalekar obtains a bachelor degree in technology from the
India institute of the technology, Bombay and master degree in Business
Administration from the American university, Washington DC.
2.2.6 Insurance companies in India
• Max New York

• Birla Sun Life

• ING Visya

• Aviva Life Insurance

• SBI Life Insurance

• Tata AIG Life Insurance

2.2.7 The Insurance Regularity and Development Authority (IRDA)


Our country has a regulatory body, IRDA, also the governing body of insurance
that looks after the common man’s interest and curb exploitation. The Authority is
a 10 member team consisting of a chairman, four whole time member and five
part-time members.
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies
2.2.8 HDFC Standard Life Insurance
HDFC Standard life insurance company ltd is one of India’s leading private
insurance companies, which offers a range of Individual and Group Insurance
solutions. It is a joint venture between HDFC LTD India’s leading housing finance
institution and a group company of STANDARD LIFE UK based company. In Dec
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31, 2007 HDFC holds 72.38% of equity in the joint venture. HDFC SLIC gross
premium income for the year ending March 31, 2008 stood at Rs 4,859 cores
and new business premium income stood at Rs 2,685 cores.
2.2.9 Rating process
HDFC is India’s leading housing finance institution and has helped build more
then 23, 00,000 houses since its corporation in 1977. In Financial year 2003-04
its assets
Under management crossed Rs 36,000 cores. Rated ‘AAA’ by CRISIL and ICRA
for the 10th consecutive year, stable and experienced management, high service
standard
2.3 Product Profile
2.3.1 Protection Plans
It protects family against the loss of income or the burden of a loan in the event
of unfortunate demise, disability or sickness. These plans offer valuable peace of
mind at a small price. Protection range includes Term Assurance Plan and Loan
Cover Term Assurance Plan.
2.3.2 Term assurance
It is suitable for those who want protection of their money as well as multiplication
of the invested amount.
2.3.3 Investment Plans
Single Premium Whole of Life plan is well suited to meet long term investment
needs. It provides attractive long term returns through regular bonuses.
2.3.4 Pension Plans
Pension Plans helps in securing financial independence even after retirement.
Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked
Pension Plus
2.3.5 Savings Plans
Savings Plans offer flexible options to build savings for future needs such as
buying a dream home or fulfilling children’s immediate and future needs.
Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit
14
Linked Endowment Plus, Unit Linked Endowment plus II, Money Back,
2.3.6 Children’s plan
This is an investment plan to meet the child’s future needs. It is a participating
plan
Eligibility-
Min term -10 years
Max term- 25 years
Sum Assured-:
Min SA- Rs 25, 00,000
Premium-:
ANUALLY, HALFYEARLY, QUARTERLY
• Types of Children’s Plan

i. HDFC Young Star Plan

ii. HDFC young Star Super Suvidha Plan

iii. HDFC young Star Supreme Suvidha Plan

iv. HDFC Young Star Plan

i. HDFC Young Star Plan


As a parent, your priority is to meet your children’s future and being able to meet
your child’s dreams and aspirations. With our HDFC Young Star Super, you can
start building your savings today and ensure a bright future for your child. This
Plan provides valuable protection to your child in case you are not around and
gives you an outstanding investment opportunity to maximize your savings by
providing you a choice of thoroughly researched and selected investments. This
plan also gives Bumper Addition to the fund value at Maturity.
ii. HDFC Young Star Super Suvidha
There is no bigger joy than being able to fulfill your child's dream. With HDFC
Young Star Supreme Suvidha you can fulfill your child’s immediate and future
needs. So tomorrow when you child needs your support you don’t have to
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depend on anyone else. This Plan provides valuable protection to your child in
case you are not around and gives you an outstanding investment opportunity to
maximize your savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund value at
Maturity.
iii. HDFC young Star Supreme Suvidha Plan
The policy provides family protection as well as gives old age benefits
Eligibility-:
Min age at entry -18 years
Max age at entry -60 years
• The Company offers additional benefits that can be availed with a
policy-

 Critical illness benefit provides an amount equal to sum assured on


diagnosis of any of the 6 commonly found illness.

 Double sum assured benefit.

 Accidental death benefit.

 Waiver of the premium benefit

2.3.7 Group Products


HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit
solutions to their employees. It offers different products for different needs of
employers ranging from term insurance plans for pure protection to voluntary
plans such as superannuation and leave encashment
• It offers the following group products to our esteemed corporate
clients:

I. Group Term Insurance


II. Group Variable Term Insurance
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III. Group Unit-Linked Plan
II. HDFC SurgiCare Plan
In the fast paced lives that we lead, medical contingencies may arrive at our
doorstep uninvited. Surgery costs form a substantial portion of health care
expenditure and needs to be provided for. Health issues can get compounded if
left unattended and may require a surgery. Plus, the ever increasing costs of
surgical procedures are sure to burn a hole in our pockets.
HDFC SurgiCare Plan provides you with timely support in case you have to
undergo a major surgery and hospitalization, as the case maybe, ensuring your
financial independence at all times. Investment Plans, you can therefore ensure
that your family always remains financially independent, even if you are not
around.

• Features

• Advantages

17
 82 major surgical procedures are covered.

 Option to include hospital cash benefit

 Automatic increase in the level of health cover (subject to terms and


conditions) ensures that the increasing medical costs are taken care of.

 Lump sum benefits are paid regardless of the actual medical expenses.

 The policy continues even after the after the payment of first or
subsequent surgical procedures, subject to terms and conditions as stated
in the policy brochure.

 Flexibility to tailor-make the policy by choosing level of health cover,


benefit options level and premium payment as per your needs.

 Convenient and hassle free claims with cashless benefits on surgeries


and hospitalization in any of the network hospitals. To know more click
here.

2.3.10 Saving and Investment Plan


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.
Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8%
returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.
18
However, Rs. 10,00,000/- after 15 years would be worth roughly around half of
what it is today once adjusted for inflation at the rate of 4%. Therefore, an
individual will need to save nearer to Rs 50,000/- annually to reach your targeted
savings at the age of 50 Years, if you consider inflation.
Our Savings & Investment Plans provide you the assurance of lump sum
funds for you and your family’s future expenses. While providing an excellent
savings tool for your short term and long term financial goals, these plans
also assure your family a certain sum by way of an insurance cover. With
HDFC Standard Life’s range of Saving

19
REPORT
Chapter- III

REPORT
Observations in the company- Summarizing the project experience-Finding
Suggestion- Conclusion

3.1 Observations in the company

I did my project on policies and position of HDFC Standard Life Insurance


Company limited. Under my project I met many people and took their view about
the insurance companies in the market. This helped me to gather information to
proceed in knowing how HDFC Standard Life Insurance Company Limited is
trying to make itself different from other players in the market. This further helped
to know the position of company.
3.1.1 Types of Insurance
 Life insurance

 Non- life insurance

• Life insurance

Life insurance covers human life, risk-sharing plan through which individuals
makes contributions during the years, they earn to meet their family requirement
in the event of untimely death or after retirement.
• Non-life insurance-

Non-life insurance is popularly known as general insurance. General insurance


covers variety of risks other than the life. Like life insurance it is also contract
between two parties i.e. insurance and insured. The contract of General
insurance is for the period of one year only.

3.1.2 HDFC – Standard Life Insurance


The HDFC Standard Life Insurance provide customized solutions for the
20
employees of the corporate organizations and those can be group insurance,
leave encashment, gratuity and retirement schemes. These are usually long term
schemes. HDFC Standard Life Insurance Company Limited is the First Private
Sector Life Insurance Company to be granted a license.
3.1.3 Mission
HDFC aims to be the top new life insurance company in the market.
This doe’s not just mean being the largest or the most productive company in the
market; rather it is a combination of several things like-
• Customer service of the highest order

• Value for money for customers

• Professionalism in carrying out business

• Innovative products to cater to different needs of different customers

• Use of technology to improve service standards

3.1.4 Values:
• Security: Providing long term financial security to the policy holders is
their constant endeavor. The company does this by offering life insurance
and pension products.

• Trust: The Company appreciates the trust placed by our policy holders in
us. Hence, we will aim to manage their investments very carefully and live
up to this trust.

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 So, according to me insurance sector is the best for every people and
specially HDFC SLIC is providing very good and important scheme and
policy for every people that is too good for every people for certain future
risk in both point of view Life Insurance, and Non life insurance. So
according to my knowledge and my experience of 41 days HDFC SLIC is
the one of the best insurance company in India.

3.2 Meaning of Finding


The findings of any study reflect the point which attracts people to choose that
company and also where the company lags behind. It gives the overall scenario
of the company in respect of the objective with which the project is made. It also
shows that in which area the company must focus in order to lead in the market.
Therefore the above mentioned finding reveals both its merits as well as
demerits.

 The findings of any study reflect its strength as well as weakness. The
followings are the findings of my study.

 The study tells that the respondents are mainly interested to invest in this
company with the objective of getting tax rebate benefit which contributes
(42.3%) as compared to pension which is just (7.2%).

 It is also inferred from the study that the main attraction for the
respondents to invest in the company is mainly due to its plans which
holds (67.3%) in comparison to other reason which is (23.07%).

 The respondents whose annual income is between 2-5 lakhs are more
willing to invest in this company.

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 The response of males is better as compared to females. Male’s
respondents consist of (67.3%) and the remaining which is (32.7%) is
holded by females.

 Most of the people doing private service which comprises of (38.46%) of


the total sample size are more interested in this company. The business
group contributes only (28.84%) of the total sample size.

 Though the company is one of the leading company among private


players but the difference is very less as still the people goes for other
company (25%).

 The people are mainly attracted towards the Life Insurance policy of this
company and out of total sample size 54% of the people go for this policy.

 Mainly the people falling in the age group of36-45 (34.61%0prefers this
company whereas the people belonging to 26-35 yrs contributes 23.07%.

 Most of the people goes for the time horizon of investment of 10-15 yrs i.e.
42.3% of the total sample size as compared to 15 yrs and above which is
19.2%.

3.3 Suggestion
After the completion of the project these points are suggested by me. I believe
that if the company adopts this it will be beneficial for it.

• The company should try to establish Brand awareness and credibility


especially among the senior customers so that it can lead in the market.

• The companies should target more of female consumers as they have


money to invest but are completely unaware about the options available to
them and plans should be made to look more attractive to them.

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• More interest rates should be made available because of the severe
competition within the private players as well as the biggest threat posed
by LIC.

• The unique products of the LIC and as it are the first insurance company
the customers rely more upon it.

• LIC understand the requirement of the mass hence still stands as the
leading company in this sector.

• Few people are not aware about the company and also the product as
such which companies are providing to them. So it is very important for
the companies that they should convince their customers that the
investment made by them will be really worthwhile.

• The company should also focus on making the policies for the time period
of five years and 15 yrs and above more attractive as still it has not gained
more attention of the public.

• The level of service in terms of delivering whatever is promised, fast


response in case of problems, is the most important benefit that the
customers seek from the company in which they are investing their money
as savings as well as they are getting life cover so it becomes very
important for the companies that what they are promising to their
customers they should deliver those things to them.

• The company should do some innovations in pension plan as still it is not


successful in convincing people.

• New strategies should be adopted by the company for attracting people


belonging to government service.

• The most important thing which should be taken into consideration is in

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respect of framing policies. For any insurance company the people looks for
its plans and the service provided by them.

3.4 Conclusion
It was really a difficult task to draw a conclusion that which company’s product
are the best since every company with different plan offers some unique features
so that its product stand apart from its competitors.
In context to the strategies followed by the competitors, it was found that the
strategies of every company are different from each other
The important facts which we could conclude from our data regarding the buying
behavior of individuals are that people give maximum importance to the tax
benefit
Our analysis shows that though the product has been able to cater to a number
of benefits but still a lot of brand awareness is lacking and LIC is posing the
biggest threat
The level of service in terms of delivering whatever is promised, fast response in
case of problems, is the most important benefit that the customers seek from the
company in which they are investing their money as savings as well as they are
getting life cover so it becomes very important for the companies that what they
are promising to their customers they should deliver those things to them
Most of the customers are not aware about the products as such the companies
are providing to them. So it is very important for the companies that they should
convince their customers that they are getting something out of their money that
they are going to invest in there company

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BIBLIOGRAPHY

 MARKETING MANAGEMENT - PHILIP KOTLER, Tata McGraw Hill


Edition

 RESEARCH METHODOLOGY – R. RAVILOCHAN, Margham


Publication

 BUSINESS RESEARCH METHODS(2004) -Tata Mcgraw Hill Edition

 BUSINESS STATISTICS(2004) - LEVIN, KREHBIEL, BERENSON

 FINANCIAL MANAGEMENT - I.M.PANDEY, Tata McGraw Hill Edition

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