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insurance product”
In June-July’2010
In partial fulfillment of the degree
of
Master of Business Administration
in
Marketing
Under the
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”
in
Marketing
Dr MGR University
[Established u/s 3 of UGC Act]
Department of Management Studies
DECLARATION
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
Date:
--------------------------------
Dr MGR University
[Established u/s 3 of UGC Act]
Department of Management Studies
BONAFIED CERTIFICATE
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
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
First of all I wish to acknowledge my project guide Ms. Archana Bai for
gratitude towards all the Library staff for their patience and help.
MIRTUNJAY KUMAR
SINGH
Declaration
Bonafide certificate
Acknowledgement
TABLE OF CONTENTS
Bibliography
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
• 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.
1
• 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
• It was only after this committee came into effect that the regulatory body
for insurance sector was formed with the name of IRDA
Secondary Objective
• Primary Objective
5
It increase the customers trust in company.
This study to get firsthand knowledge about the attitude and opinion of
customer about HDFC slic product.
The study will be useful to HDFC SLIC managers and financial advisors.
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.
6
The competitor analysis in the manual could only be compiled for a rough
idea to the nature of the product.
This study was done for short period, which might not hold true in long
run.
7
STUDY PROFILE
Chapter- II
STUDY PROFILE
Industry profile- Company profile- Product Profile- History of the
company- Activity of the company
9
• 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.
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
10
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.
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.
• ING Visya
• Features
• Advantages
17
82 major surgical procedures are covered.
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.
19
REPORT
Chapter- III
REPORT
Observations in the company- Summarizing the project experience-Finding
Suggestion- Conclusion
• 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-
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.
21
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.
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.
22
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.
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.
23
• 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.
24
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
25
BIBLIOGRAPHY
www.google.com
www.hdfc slic.com
www.wikipedia.com