A Comparative Study Based On CustomersGÇÖ Preference Analysis Towards Insurance Products

A
TRAINING REPORT
On
A Comparative Study Based on Customers’ Preference Analysis

towards Insurance Products
GURU NANAK INSTITUTE OF MANAGEMENT
AND TECHNOL OGY
LUDHIANA.
In Partial fulfillment for the

award of Degree of
Master of Business Administration
Submitted to:
Punjab Technical University
Submitted by:
ANKIT GUPTA
University Roll No. 618221266
Session 2005-2007
GURU NANAK INSTITUTE OF MAMAGEMENT AND
TECHNOLOGY
LUDHIANA.
ACKNOWLEDGEMENT
“If words are considered as symbol of approval and taken of

appreciation then let the words play the heralding role of expressing my
sincerest gratitude and thanks”
I am indebted to Mr. Tejveer Sandhu (Branch Manager),Vijay Thakur

HDFC Standard Life Insurance Co., Mandi for providing me an opportunity
to go through summer training.
I would like to express my sincere gratitude towards Mr. Parveen Kalsi

(Project Guide) for guiding me and also for letting me work on this project.
I would like to extend my warm gratitude to the other HDFC members for
their help in completing the project.
Ankit Gupta
PREFACE
Risks and uncertainties are part of life’s great adventure- accidents, illness,
theft, natural disaster – they are all built into working of the universe waiting
to happen. So far that there is a solution - insurance.
To overcome these risks and uncertainties this project describes about

various policies and schemes of different insurance companies. How these
companies provide different benefits to policyholders. Insurance is a
cooperative venture where risks and uncertainties are shared by many. Now
a days a lot is being done to create awareness among the insuring public
about the need and importance of the insurance in the field of a human
being. In this direction IRDA has planned to create awareness through
electronic and print media.
A study of life insurance describes the meaning, various policies,

comparison and their analysis market prospective changing customer
scenario.
CONTENTS
1) Introductions :-
• Definition
• Need for Life Insurance
• Role of Government
• Role of Life Insurance
• Evaluation of Insurance Industry in India
• Future Scenario
2) Opening of Insurance Sector in India

• Objectives of Liberalization of Insurance
3) Changing Expectations of Customers
4) Major Players in Life Insurance

• HDFC STANDARD LIFE
• Life Insurance of India (LIC)
• ICICI Prudential
5) Comparison of the products of various companies
6) Research Methodology
• Research Methodology
• Objectives
• Limitations
7) Data Analysis & Interpretations
8) Suggestions & Conclusion

• Findings
• Suggestions
9) Appendices
• Question
• Bibliography
Insurance is basically risk management device. The losses to assets
resulting from natural calamities like fire, flood, earthquake, accident etc.
are met out of the common pool contributed by large number of persons who
are exposed to similar risks. This contribution of many is used to pay the
looses suffered by unfortunate few. However the basic principle is that loss
should occur as a result of natural calamities or unexpected events, which
are beyond the human control. Secondly insured person should not make any
gains out of insurance.
It is natural to think of insurance of physical assets such as motor car

insurance or fire insurance but often be forget that creator all these assets is
the human being whose effort have gone along way in building upto assets.
In that scene human life is a unique income generating assets. Unlike
physical assets, which decrease with the passage of time, the individual
become more experienced and mature as he advances in age. This raises his
earning capacity and the purpose of life insurance is to protect the income to
individual and provide financial security to his family, which is dependent
on his income in the event of his pre-mature death. The individual also
himself also needs financial security for the old age or on his becoming
permanently disabled when his income will stop. Insurance also has an
element of saving in certain cases.
Insurance is rupees 400 billion business in India and yet its spread in
the country is relatively thin. Insurance as a concept has not being able to
make headway in India. Presently LIC enjoys a monopoly in Life Insurance
business while GIC enjoys it in general insurance business. There have been
very little option before the customer to decide the insurer. A successful
passage of the IRA bill have clear the way of private sector operators in
collaboration with
their overseas partners. It is likely to bring in a more professional and

focused approach. More over the foreign players would bring sophisticated
actuarial techniques with them, which would facilitate the insurer to
effectively price the product. It is very important that the trained marketing
professionals who are able to communicate specific features of the policy
should sell the policy. In the next millennium all
These activities would play a crucial role in the overall development and
maturity of the insurance industry.
DEFINITION GENERAL DEFINITION :-
In the words of John Magee, “Insurance is a plan by which

large numbers of people associate themselves and transfers to the shoulders
of all risks that attach to individuals”
FUNDAMENTAL DEFINITION: -
In the words of D S Hansel, “ Insurance may be defined as a

social device providing financial compensation for the effects of misfortune,
the payments being made from the accumulated contributions of all
participating in the scheme.”
CONTRACTUAL DEFINITION: -
In the words of justice Tidal “ Insurance is a contract in which a

sum of money is paid to the assured as consideration of insurer’s incurring
the risk of paying a large sum upon a given contingency.
CHARACTERISTICS OF INSURANCE
• Sharing of risk
• Co-operative device
• Evaluation of risk
• Payment on happening of special event
• The amount of payment depends on the nature of losses incurred
NEED OF THE LIFE INSURANCE: -
The original, basic intention of life insurance is to provide for

one’s family and perhaps others in the event of death. Originally, polices
were to provide for short periods of time, covering temporary risk situations,
such as sea voyages. As life insurance became more established. It was
realized what a useful tool it was in a number of situations, including:
1. Temporary needs/ threats:
The original purpose of Life Insurance remains an important element,

namely providing for replacement of income on death etc.
2. Regular Saving:
Providing one’s family and oneself, as a medium to long-term exercise

(through a series of regular payment of premiums). This has become more
relevant in recent times as people seek financial independence from their
family.
3. Investment:
Put simply, the building up of saving while safeguarding it from ravages

of inflation. Unlike regular saving products are traditionally lump sum
investments, where the individual makes are one time payment.
4. Retirement:
Provision for one’s on later years has become increasingly necessary,

especially in changing culture and social environment. One can buy a
suitable insurance policy, which will provide periodical payments in one’s
old age.
BENEFITS:
1. It is superior to traditional saving machine
As well as providing a secure vehicle to build up saving etc. it provides
piece of mind to the policyholder. In the event ultimately death, of say the
main earner in the family, the policy will pay out guaranteed sum assured,
which is likely to be significantly more then the total premiums paid. With
more traditional saving vehicles, such as fixed deposits, the only return
would be the amount invested plus any interested accrued.
2. It encourages saving and forces thrift:

Once an insurance contract has been entered into, the insured has an
obligation to continue paying premiums, until the end of the term of policy,
otherwise the policy will lapse. In other words, it becomes compulsory for
the insure to save regularly and spend wisely. In contrast savings held in a
deposit account can be accessed or stop easily.
3. It provides easy settlement and protection against creditors

Once a person appointed for receiving the benefits or a transfer of rights is
made (assignment), a claim under the life insurance contract can be settled
easily. In addition, creditors have no right to any mommies by the insurer,
where the policy is written under trust. Under the married woman’s act the
money available from the policy forms a kind of trust which creditors can
not claim on.
4. It can be encased and facilities borrowing:

Sum contracts may allow the policy can be surrendered for a cash amount, if
policy holder is not in a position to pay the premium. A loan, against certain
policy, can be taken for a temporary period to tide over the difficulty.
Presence of life insurance policy facilitates credit for personal or commercial
loans as it can be offered as collateral security.
5. Tax relief :
The policy holder obtains income tax rebates by paying the insurance
premium. The specified form of saving which enjoys a tax rebate u/s 88 of
the income tax act. Include Life Insurance premiums and contribution to a
recognized PF etc.
GOVT. ROLE :
============
Govt. keen to reduce the dependency on the state via private pension
provisions. They have a choice between using compulsion and incentives.
Most of the govt. chooses the later method. Tax relief is guaranteed in the
pension plants and is extremely generous, reflecting the value that the govt.
and the society and large place on the provision of retirement benefits. Tax
treatments of the benefit varies by country and by benefits.
In India, the proceeds of gratuity and provident fund are tax free in the
hand of the members. In UK, a certain amount of the proceeds can be taken
as tax lump sum and reminder as taxable income. Benefits due on withdrawl
from schemes are generally taxed unless they are transferred to another
scheme or approved pension plan.
ROLE OF LIFE INSURANCE
========================
Role 1 : Life Insurance as “investment”
Insurance is an attaractive option for investment. While most people

recognize thetax hedging and tax saving potential of life insurance, many are
not aware of its advantages as an investment option as well as. Insurance
products
yield more compared to regular investment option as this is besides the
added incentives (read bonuses) offered by insurers.
You can not compare an insurance product with other investment
schemes for simple reason that it offers financial protection from risks,
something that is the missing in non- insurance products.
Infact, the premium you pay for a investment against risk. Thus,
before comparing with other scheme, you must accept that a part of total
amount invested in life insurance goes towards providing for the risk cover,
while the rest is used for savings.
In life insurance, unlike non-products, you get maturity benefits on
survival at the end of the term. In other words, if you take a life insurance
policy for 20 years and survive the term the amount invester as premium in
the policy will come back to you with added returns. In the unfortunate
event of death within the tenure of the policy, the family of the deceased will
receive the sum assured.
Now, let us compare insurance as an investment options. If you invest
Rs. 10000/- in PPF, year money grows to Rs. 10950 at 9.5% interest over a
year. But in this case, the access to your funds will be limited. One can
withdraw 50% of the initial deposit only after four years.
The sane amount of Rs. 10000/- can give you an insurance cover of
upto approximately Rs. 5 to 12 lacs. ( depending upon the plan, age and
medical condition of life insure etc. ) and this amount can become
immediately available to the nominee of the policy holder on death. Thus
insurance is a unique investment avenue that dekivers sound returns in
addition to protection.
Role 2 : Life Insurance as “Risk Cover”
First and foremost, insurance is about risk cover and protection –

financial protection, to be more presize-to help out last once unpredictable
losses. Designed
to safe guard against losses suffered on account of an unforeseen events.
Insurance provide you with that uniqueness sense of security that no other
form of investment provides. By buying life insurance, you buy peace of
mind and are prepared to face any financial demand that would hit the
family incase of an untimely demise.
To provide such protection, insurance firms collect contributions for
many people who face the same risk. A loss claim is paid out of the total
premium collected by the insurance companies, who act as trustees to the
monies.
Insurance also provides a safeguard in the case of accident or a drop

in income after retirement. An accident or disability can be devastating and
an insurance policy can lend timely support to the family in such time. It
also comes as a great help when you retire, in case untoward incident
happens during the term in the policy.
With the entry of private sector player in insurance, you have a wide
range of products and services to choose from. Further, many of these can be
further customized to fit individual/group specific needs considering the
amount you have to pay now, its worth buying some extra sleep.
ROLE 3 : Life Insurance as “Tax Planning”
Insurance serves as an excellent tax saving mechanism too. The Govt.

of India have offered tax incentives to life insurance products in order to
facilitate the flow of funds into productive assets. U/S 88 of Income Tax Act
1961, an individual is entitled to rebate 20% on the annual premium payable
on his/her life and life of his/her children or adult children. The rebate is
reductible from tax payable by a individual or Hindu undivided family. This
rebate is can be availed
upto a maximum of Rs 12000/- on payment of yearly premium of Rs
60000/- a year, you can buy anything upward of Rs 100000/- in sum
assured. This means that you get Rs 12000/- tax benefit. This rebate is
deductible from the tax payable by an individual or a Hindu undivided
family.
THE EVALUATION OF INSURANCE INDUSTRY IN INDIA :
Life Insurance in its modern form is a western concept. The Indian

insurance industry is as old as it is in other part of the world. Although life
insurance business has been taking shape for the last 300 years, it came to
India with the arrival of Europeans. First Life Insurance Company was
established in 1818 as Oriental Insurance Company, mainly to provide for
widows of Europeans. The companies that follow mainly catered to
Europeans and charged extra premium on Indian Lives. The first insurance
company insuring Indian Lives at standard rates was BOMBAY MUTUAL
LIFE INSURANCE COMPANY which was formed in 1870. this was also
the year when 1st Insurance act was passed by the British Parliament. The
years subsequent to the Swadeshi movement saw the emergence of several
insurance companies. At the end of the year 1955 there were 245 insurance
companies. All the insurance companies were nationalized in 1956 and
brought under one umbrella- LIFE INSURANCE CORPORATION OF
INDIA (LIC) which enjoyed a monopoly of the Life Insurance business
until near the end of 2000. by enacting the IRDA act 1999, the Govt of India
effectively ended LIC’s monopoly and opened the doors for private
Insurance companies.
Collaboration of Indian Companies with Foreign Companies
Indian Company Foreign Partner
Kotak Mahindra Chubb
Tata Group AIG
Sundram Finance Winterthur
Spic Metlife
ILFC Cigna
Alpic Finance Allianz
20th Century Canada Life
Vysa Bank ING
Cholamandlam Axa
SBI Alliance Capital
HDFC Standard Life
ICICI Prudential
Hindustan Times Commercial Union
IDBI Principal
Max India New York Life

FUTURE SCENARIO :-
Before looking in 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 1956 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. Nationalization has lent the industry
solidity and growth which is unparalleled. Forever, along with these
achievements there also grew a feelings of insensitivity to the needs of the
market, traditions in adoption of modern practices to upgrades technical
skills coupled with a scene of lethargy which probably led to a feeling
amongst that the 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
in India. The following indicates as explained and support this contention :
1. While per capita insurance premium in developed country is high,
it is quite low in India. For instance, per capital insurance premium
in India in 1999 was only $8 while it was $4800 for Japan $1000
for Republic of Korea , $887 for Singapore, $823 for Hong-Kong
and $144 for Malaysia.
2. Similarly the penetration of insurance is also assessed by the ratio

of Insurance premium to gross domestic products in a country.
While insurance premium 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% in India in 1999. hence the
penetration of insurance is low here.
3. 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% in
India in 1999. Hence even this index indicates low level of
penetration of insurance in India.
4. The share of India in the world market in terms of gross insurance

premium is again very small. For instance while Japan has 31%,
European union 25%, South Africa 2.3%, Canada 1.7% share of
global insurance premium ot is only 0.3% for India.
OPENING OF INSURANCE SECTOR IN INDIA
The union government of India decided to open the insurance sector
to make it more dynamic and customer friendly.
OBJECTIVE OF LIBERALIZATION OF INSURANCE :-

The Main objective for the opening up the Insurance sector to the
private insures as under :-
• To provide better coverage to the India citizens.
• To augment the flow of long term financial resources to finance the
growth of infrastructure.
Indian Insurance industry has ten new entrants in year 2000-2001 in Life
Insurance sector.
S.No Reg Date of Reg Name of Company
No
1 101 23.10.2000 HDFC Standard Life Insurance CO. Ltd
2 104 15.11.2000 Max New York Life Insurance CO. Ltd
3 105 24.11.2000 ICICI Prudential Life Insurance CO. Ltd

4 107 10.01.2001 OM Kotak Mahindra Life Insurance CO Ltd
5 109 31.01.2001 Birla Sun Life Insurance CO. Ltd
6 110 12.02.2001 Tata AIG Life Insurance CO. Ltd
7 111 20.03.2001 SBI Life Insurance CO. Ltd
8 114 02.08.2001 ING Vyasya Life Insurance CO. Ltd
9 116 03.08.2001 Allianz Bajaj Life Insurance CO. Ltd
10 117 06.08.2001 Metlife Insia Life Insurance CO. Ltd
Insurance Industry in the year 2000 has one new entrant in Life Insurance
Business name :-
S.No Reg Date of Reg Name of Company
No
1 121 03.01.2002 AMPSANMAR Assurance Co. ltd
CHANGING CUSTOMER EXPECTATIONS IN INSURANCE
SECTOR PRE TO POST LIBERALISATION
RESEARCH OBJECTIVE AND METHODOLOGY
OBJECTIVE :-
To provide insight into customers experiences prior to recent

liberalization, mapping changes in expectations after liberalization and
perceived performance of insurance players vis a vis expectations.
RESEARCH APPROACH :-
In depth qualitative study to capture indicative trends which can be

strictly validated, if required :
Geographical coverage : Delhi, Mumbai, Kolkata, Hyderabad and Banglore
RESEARCH DESIGN :-
RESPONDENT SEGMENT
Life Policy Holders :-
• Old Customers : Taken Insurance prior to liberalization only.

• Evolved Customer : Taken insurance both in per and post
liberalization.
• New customers : Taken Insurance in post liberalization only.
Non Policy holders (Life)
RESEARCH DESIGN
Sample Plan:
Respondent Category SEC A SEC B SEC C TOTAL
Life Policy 48 41 37 126
Non Life 43 21 16 80
Non Policy (Life) 14 15 16 45
Total 105 77 69 251
Respondent Old Customer Evolved New Total

Customer
Life Policy 47 40 39 126
PRE PURCHASE PROCESS : LIFE
Pre Liberalization Post

Liberalization
Motivating Factor (s) for considering Insurance
Security 43% Security 50%

Saving 14% Saving 34%
Tax Rebate 43% Tax Rebate 16%
Children’s education, marriages, retirement plan
Sources of information on Insurance and Product Awareness
• Friend, colleagues, relatives and agent Additionally from direct

• Low awareness of several Insurance mailers, customer meets
products due to poor communication Internet and media.
Rising level of aeareness of new product of both LIC and private
Company
CHOICE OF FIRST POLICY
Money Back 60% Money Back 42%

Endowment 40% Endowment 48%
Whole Life 0% Whole Life 10%
Approach of the Agent and Consumer’s Experience

Approach of the agent—informal Approach more
professional
And through referral something
aggregative private co.
Proactive in contacting
prospectus directly often has to start from selling concept of insurance rather
than product
conducts financial health check

up and then offers suitable products/ solution.
Better communication and presenter
Handless Larger number of queries.
SIDERATION OF PRIVATE PLAYERS
Overall SEC A SEC B SEC C
73% 93% 83% 50%

35 % 65% 30% 10%
AWARENESS OF NEW PRODUCTS-LIFE

• Only some customers have mentioned new products.
• Products with multiply riders medical, accident, waiver of premium

rider
• Through most SEC A and SEC B customers have generally heard of

liberalization but unable to provide any details.
• Flexi premium plans-products with singly premium and shot out time
premium option
PURCHASE PROCESS : LIFE
Pre Liberalization Post Liberalization
Role of Agent and Customer’s Experience
• Medical examination : in Medical examination : Both LIC and

several cases details filled by private company
medical agent medical Customers examination arranged by
examination very perfunctory agent.
some time no formula
examination. Experience regular contact
Purchase experience with agent Post purchase
reasonably satisfactory, but often
agent not in touch later.
Product Offering
Limited Products choices and less Product with multiple riders-medical,
flexible products accident, waiver of premium rider
Choice often determined by agent Pension/retirement benefit plans
push flexible premium, saving and
security plans.
Discount offering practices
No. of customers getting discount : Customers getting discount 33%
50% (Delhi)
Rate of discount: 25%-50% of first Rate of discount : More less plans
year premium
Policy Delivery
Mode Mode
Registered posts for LIC hand Registered for LIC
delivered by agent 23% case Courier for private companies.
In both cases, policy comes in
attractive. Protective plastic jacket
Time taken Time taken LIC Private Co

Upto week 0% Upto week 5% 85%
One month 65% One month 77% 15%
> 1 month 35% >1 month 18% 0%
CLAIMS SETTLEMENT EXPERIENCE-LIFE (LIC ONLY SO FAR)
FINAL MATURITY CLAIM :-
• Involvement of agent very low (35%)
• Payment mostly within 15 days, but 1 to 3 month in some situations

such as change of survivor’s address etc.
• Most customers are satisfied with the overall process.
DEATH CLAIM :-
• Involvement of agent low though considered critical by nominee
• Payment takes 3 to 6 months in normal cases, in disputed cases 9 to
12 months
• Process very cumbersome and people faced much difficulty.
CHANGING CUSTOMER EXPECTATIONS – LIFE

TIME EXPECTATIONS :
• First premium receipt ( FPR ) delivery to customers in two days.

• Policy document should be delivered within 7 days from FPR.
• Premium notice should arrive 30 days before due date.
• Final maturity payment should reach within 10 days of maturity date.
• Death claim should be settled in 39 days.
EXPECTATIONS FROM AGENT :-

==========================
• Should give information on all products and not push high

commission products only.
• Should maintain regular contact wiyh client to give information on
new products.
• Premium payment reminder should come from agent also.
• Should collect payment, deposit and handover receipt.
• Should be actively involved in Death claims settlement and Lapsed
Policy Revival.
CHANGING CUSTOMER EXPECTATIONS – LIFE
EXPECTATIONS FROM THE COMPANY:
• Premium notice should be settled regularly.

• Premium payment reminder should be sent through SMS and E-Mail.
•
• Cheque payment at bank, imternt and special collection centres ( Om

Kotak in Mumbai )
• Payment through credit cards.
• Facility of purchasing policy through more channels.
• Flexible/wider range of products.
• Focus on cutomer education.
• Fine/prints devi in detail, correct disclosures.
• Transparent and fair dealings.
• Information on new products/services through call centres, internet,
mailers, new agent customer meets. Set up toll free help line.
• Where customer is cancelled is deposited should be entitled to be the
commission thereof.
ROLE OF IRDA :
• Educate public on regulatory safeguards, investments guidelines and
plough back of profits ( several people have expressed concern about
security of their money, credibility of private insurance company
investment of funds in foreign markets.
• Inform public on social and rural obligation of private players
( several people believd that only LIC was responsible for insuring the
poor.
POST PURCHASE PROCESS : LIFE

Premium Notice Intimation from company/reminder from agent
* Cash 43% * Cash 41%
* Cheque 57% * Cheque 49%

* Credit Card 10%
* No case of payment through internet
was observed, due to low awareness
and security apprehensions.
* Includes deposits at private
company
collection centres.
WHO DEPOSITS PREMIUM ?

* Self 44% * Self 37%
* Agent 49% * Agent 49%
* Salary saving Scheme 7% * Salary saving Scheme 14%
includes relatives & friends includes relatives & friends
CORRESPONDENCE ( Other than premium notice ) FROM
COMPANY/AGENT
• Generally no correspondence from • Mailers from both private
either company or agent except for companies and LIC on product and
late premium payment reminder services, greetings cards on
from company birthdays, anniversary and new
• Agent maintained informal contact product.
with close customers • Phone calls from private company
call centres.
• Agent in regular contact for offer
new product.
DELAY IN PREMIUM PAYMENT

• Incidence of delay high 30% • Incidence of delay high 30%
( due to irregular receipt of premium ( due to irregular receipt of premium
notice from company/reminder from notice from company/reminder from
agent ) agent )
CHANGING TRENDS IN SAVINGS PATTERN
Saving Instrument % of Respondents Saving Instrument % of Respondents
Insurance 23% Insurance 33%
Bank Deposit 28% Bank Deposit 44%
PPF 19% PPF 8%
NSC 12% NSC 0
Share 7% Share 3%
Post Office 7% Post Office 3%
Bonds 0 Bonds 9%
Gold 4% Gold 0%
Total 100 Total 100
• When the respondents were asked where they would invest their extra
income, if any, the top respondents were recorded as above.
COMPANY PROFILE
HOUSING DEVELOPMENT FINANCE CORPORATION LTD.
( HDFC ) :
======================================================
Founded in 1977, HDFC is today the market leader in housing
finance in India and has extended financial assistance to more than 15 lacs
homes. HDFC has more than 110 offices in India presently. It has also one
international office in Dubai and 3 more services associate in Kuwait, Qatar
and sultanate of OMAN. HDFC’s assets base amount to over 15,000 crore.
Its financial strength is reflected in highest safety rating of ‘FAAA’ and
‘MAAA’ awarded by CRISIL and ICRA – two of India’s leading credit
rating agency respectively, for the last 6 year consecutively. It has a
depositor base of over 11 lacs customer and a deposit agents force of over
46,000 of the total deposit, 73% are sourced from individual and trust
depositors, which demonstrates the tremendous confidence that retail
investors have in the company.
HDFC- promoted companies have emerged to meet the

investors and customers needs. HDFC bank for commercial banking, HDFC
Mutual Fund for mutual fund products, to be followed very shortly by
HDFC Standard Life Insurance Company for the life indurance and pension
products.
Being an institution that is strongly committed to the highest

standards of quality and excellence, HDFC has won several accolades in the
past few years. One such award is the “ Ramakrishnan Bajaj National
Quality Award “ for the year 1999. this award was instituted to award
recognition to Indian
companies for business excellence and quality achievement. HDFC is the

only company so far to receive this award in the service category.
STANDARD LIFE ASSURANCE COMPANY ( SLAC ) :
Founded in 1952, Standard Life has been at the for front of the
UK Insurance industry for 176 years by combining sound financial
judgement with integrity and reliability. The kingdom, Ireland, Spain ,
Germany and some more with representative office in Hong-Kong and
China.
One of the most recent success was the launch of standard Life
Bank on 1st January 1998. in less than 20 months, the bank collected Rs.
28,000 crore in deposit. The introduction of its innovative mortgage product
in Jan. 1999, had an immediate impact on the UK market, accounting for
11% of all new lending within the first operational tear. The current loans
outstanding amount to Rs. 43,300 crore.
Standard Life has total assets of Rs. 55,000 crore and new
premium income last year 33,000 crore. Its UK investment portfolio account
for approximately 2% of all shares listed in the London Stock Exchange. Its
one of the new Insurance companies in the world to receive AAA rating
from two of the leading international credit rating agencies. Moody’s and
Standard’s And Poor’s. the latter described Standard Life’s ability to meet
its claim obligations as overwhelming under a variety of economic
conditions.
Not surprisingly, Standard Life is rated as one of the few

strongest companies in the world, in financial terms. The quality and value
standard Life brings to this venture are immense. The company’s reputation
in UK market remains unrivalled. Besides being voted ‘ Company of the
ears for overall service, for the third consecutive year. Standard Life was
recently voted ‘ Company f the decade’ by independent brokers.
THE PARTNERSHIPS :-
HDFC and Standard Life first commenced

discussions about possible joint venture, to enter the life Insurance market,
in Jan. 1995. it was clear from the outset that both companies shared similar
values and beliefs and a strong relationship quickly formed. In Oct. 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.
A small project team was set up in UK and India and set about
preparatory work. Among other things, the team conducted market research,
looked at possible information technology, documented high level business
process maps and set about preparing the first project plan.
The next three years were filled uncertainity, due to change in
Govt. and both ongoing delays in getting the insurance bill passed in
parliament. Despite this both companies remained firmly committed to
venture.
In Oct. 1998, the joint venture agreement was renewed and additional
resources 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.
One of many success stories over the last few tears has been the
actuarial student program. The program was designed to identify high
caliber individuals who would be sponsored by Standard Life to study for
their actuarial qualification in the UK.
The new company has 1 Indian actuary and 5 actuarial students

in the team, with a further 2 students undergoing training in the UK. Both
parents companies strongly believe the program will benefit the new
company in the years to come and are firmly committed to it. 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 Jan. 2000 and expect team from the UK joined a hand picked
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 further development standard Life to participate in the Assets

Management Company promoted by HDFC to enter the mutual fund market.
The Mutual Fund market was launched on 20th July 2000 and
one on the 10th Nov. 2000 assets under the management reached Rs. 1,063
crores.
The company was incorporated on 14th Aug 2000 under the

name of HDFC Standard Life Insurance Company Limited.
The ambition of the company from as afr back as Oct. 1995 was
to be first private company to reenter the Life Insurance market in India. On
23rd of Oct. 2000 , this ambition was realized when HDFC standard Life
Insurance Company Limited were only Life company to be grated a
certificate of registration.
HDFC are main shareholders in HDFC standard Life Insurance

Company Limited with 81.4% while standard Life own 18.6 given Standard
Life’s existing investment in the HDFC Group, this is max. investment
allowed under current regulations.
MISSION AND VALUES OF HDFC STANDARD LIFE :-
MISSION :-
HDFC Standard Life have clearly on several occasions that they

ain to be the top new Life Insurance company un the market.
This does not just mean being the largest or the moist
productive company in the market, rather it is a combination of several
things. :
• Proffessionalism
• Value of money
• Customer services
• Innovative product
• Use of technology
• Market share
As mentioned earlier the aim is to be the yardstick against which all other
life insurance companies are measured.
VALUES :-
The core value of the company are “ Security , trust and
Innovation “.
SECURITY :-
HDFC Standard Life will invest their policy holder’s money
prudently in order to achieve the aim of long term stable growth.
The aim is to immulate the financial security rating of the
parent companies.
TRUST :-
HDFC Standard Life’s are committed to development products

for the specific needs of the Indian customer. The company will also use the
latest technology to ensure they develop the highest quality service to both
their customers and their consultants.
PRODUCTS
1. TERM ASSURANCE PLAN

2. ENDOWMENT ASSURANCE PLAN
3. MONEY BACK PLAN
4. CHILDREN’S PLAN
5. PERSONAL PENSION PLAN
6. SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN
7. UNIT LINKED PENSION PLAN
8. UNIT LINKED ENDOWMENT PLAN
“Protection against uncertainties of life “

TERM ASSURANCE PLAN :-
=====================
Under this plan, a sum assure is payable in case of death of the

life assure during the tem of the contract. One can choose the lumpsum that
would replace the income lost to one’s family in the unfortunate event of
one’s death. Since this non participating ( without profits ) plan is a pure risk
cover plan, no benefits are payable on the survival to the end of the term of
the policy.
Minimum age 18 years.

Maximum age 60 years.
TERMS TO AVAIL PLAN :
20,25 and 30 years that plan can cover till 65 years.
Advantage of this plan :-

=================
On maturity, you would receive the sum assure plus the

bonuses addition. Bonuses addition is the amount in the accumulation
account. In access of the sum assure –
• Cover you for a term ( years ) of your choice.

• At the same time does not burden you with the liability to pay premiums
for that entire term.
• Entitled you to bonus addition for the entire term of the plant.
• Premium to be paid for the full term of the plan.
• You have the choice of paying you premium either in yearly , half yearly
and quarterly modes or of paying a single one time premium, depending
on your conveniences.
ENDOWMENT PLAN :-
=================
It is participating ( with profits ) insurance plan that offers the

following features.
Provides financial support to the family by way of a lumpsum payment in

case of the unfortunate death of the life assured within a term of policy.
Provides a lumpsum payments to the life assured on the survival upto

maturity.
The lumpsum mentioned is the basic sum assured plus any bonus additions.
TERM TO AVAIL LOAN :-

====================
Minimum term 10 years.

Maximum term 30 years.
Maximum age that plan can cover till 75 years.
ADVANTAGE OF THIS PLAN :-

========================
On maturity , you would receive the sum assures plus the bonuses
addition. Bonuses addition is the amount in the accumulation account. In
access of the sum assure –
Cover you for a term ( years ) of your choice.
At the same time does not burden you with the liability to pay premiums for
that entire term.
Entitled you to bonus addition for the entire term of the plant.
You have the choice of paying you premium either in yearly , half yearly
and quarterly modes or of paying a single one time premium, depending on
your conveniences.
Endowment assurance plan offers the tax benefits u/s 88, section 80D and
section 10 ( 10D ) of the income tax act are applicable. Applicable to
premium paid for CI and WOP.
MONEY BACK PLAN :-
=================
It is participating ( with profits ) plan. That offers the following

features :-
• Payment of cash lumpsum , each of which is a proportionate of the basic

sum as assured, at five years intervals during the term of policy.
• On survivals upto maturity, a payment equal to the basic sum assured
plus any bonus addition less the cash lumpsum paid earlier is provided.
• In case of the unfortunate death of the life assure within the term policy ,
the basic sum assure plus any bonus addition is provided.
This is over and above the earlier payouts.
Term No. of years from policy date

5 10 15 20 25
policy
term
10 40%
15 30% 30%
20 25% 25% 25%
25 20% 20% 20% 20%
30 15% 15% 15% 15% 15%

TERM TO AVAIL PLAN :-
===================
Minimum term 10 tears
Maximum age 30 tears
Maximum age that plan can cover till 75 years.
Advantages of this plan :-

==================
• The plan not only covers your life but provides you with a survive
benefit payout every five years.
• In the fortunate event of the death of life insure, the beneficiary would
receive the death benefit.
• On maturity, you would receive the sum of survival benefits, bonus
addition and guaranteed addition.
• You have the choice of paying your premium either in yearly, half yearly
or quarterly modes, depending upon your conveniences.
• Money back plan offers the tax benefits u/s 88, sec 80D and sec 10
( 10D ) of the income tax act are applicable. Applicable to premium
paid for CI and WOP.
CHILDEREN PLAN :-
================
Children’s flag is designed to provide a lumpsum to the child at

maturity it also provides financial security to the child in the future , even in
the case of insured parents unfortunate death during the policy term.
Children plan
will receive simple reversionary bonuses, which are usually added anuually.
This is a flexible plan with three option for you to choose from , depending
on your requirements.. the details of these options are explained in the next
section.
Option On the death of the On maturity

insured person during the
policy term
Maturity benefit Future premiums waived Sum assured + bonuses
and the policy continued
till maturity
Accelerated benefit plan Sum assuered + bonus On the survivals of the
paid and the policy stops insurance. Parent of the
maturity date
Sum assured + bonus
paid
Double benefit plan Sum assured paid, future Sum assured + bonuses
premium waived and the paid
continue
Minimum age 18 years
Maximum age 60 years
Minimum term 10 years

Maximum term 25 years
Maximum age that plan can cover till 75 years
ADVANTAGE OF THIS PLAN :-

========================
On maturity you would receive the sum assured plus the bonuses addition.
The automatic cover maintenance facility ensures the policy remains
enforces even if you miss premium payments. This facility is available after
the first three years of the term.
You can take a loan against this plan, after policy has been enforce at least 3
years.
You can have the option of paying premiums quarterly, half yearly or yearly.
Money back plan offers the tax benefits u/s 88, sec 88D and section 10 ( 10
D ) of the income tax act are applicable . applicable to premium paid for CI
and WOP.
PERSONAL PENSION PLAN :-

=======================
This participating ( with profits ) plan is basically a saving
contract, which is designed to provide and income for life fro retirement. It
does this by accumulating in national lumpsum on retirement, comprising of
sum assured plus any attaching bonus. Subject to the prevailing regulations,
part of these lumpsum can be taken in form of cash and the rest converted to
an annuity at the rate offered by HDFC Standard Life . alternatively if it
permitted by the prevailing regulations notional lumpsum can be used to by
and annuity with any other insurance company who will accept such
business.
On earlier death after the first year, for regular premium
policies all premium paid to date will return with compounded interest rate
calculated @ 8% per annum, subject to a maximum of the sum assured plus
bonuses declare to date. For single premiums, it is sum assured plus bonuses
declare to date. Normally we
will declare a reversionary bonus once a year , once added , it can not be
reduced reversionary will take the form of a single addition to your policy
benefits. In addition, on maturity a terminal bonus might be payable. On
death an interim business, reflecting the period since the last addition of
reversionary bonus might also be payable term
Term 10 15 20
30 N/a n/a 4309
35 N/a 6098 4327
40 9577 6177 4357
Minimum age 18 years

===================
In case of death the family will receive the sum assured plus bonuses.
You can suurender the policy at any time. If premium have been paid
continuously for at least 3 years, surrender value will be subjected to be
guaranteed minimum.
You have the choice of paying your premium either in yearly, half yearly or
quarterly modes, depending upon your conveniences.
Money back plan offers the tax benefits u/s 88, sec 88D and section 10 ( 10
D ) of the income tax act are applicable . applicable to premium paid for CI
and WOP.
SINGLE PREMIUM WHOLE OF LIFE INSURANCE :-
Single premium whole of life insurance plan is well suited to meet

your long term investment needs. This is participating (with profit) plan.
Your money will be invested in your with profit fund. The fund aims to
provide secure and stable long term growth. Normally, you will declare a
compound reversionery bonus for your policy every year and add it to your
policy on its anniversary. In addition, on death, surrender or on the
guaranteed dates, a terminal bonus is payable. You pay us single premium
and the policy will pay you a lumpsum.

You can buy the product on a single life basis
Minimum sum assured 25000

Maximum sum assured 500000
Premium : Rs 950 per thousand of sum assured

==================
Flexibility of this term :-
Even after choosing your policy, you can decide on the policy. For 4
weeks after any one of the 10th, 15th, 20th and subsequence 5 year
anniversaries 5 year anniversaries you can choose to receive the sum assured
plus any attaching, in full. Once the money has been received, your policy
will cease.
Surrender Policy :-
You can terminate the policy any time, after it has been force at least
6 month, and receive a surrender value
In case of unfortunate death :-
Your nominee gets the sum assured squared by your premium, plus
any attaching bonus.
No medical requirements :-
We do not require you to undergo any medical test for this plan.
GENERAL BENEFITS :-
PREMIUM WAIVER BENEFIT :-
For a policy taken on the life of a child (children policies –

jeewan Kishore, Jeewan sukanya, Jeewan balya and children money back
policy) the premium is paid by the proposer. Under these polices the
propser’s life is not covered. It means if proposer dies before maturity of the
policy, no money becomes payable to the family. On death of the proposer,
the family will loose the income of the proposer. In addition to this problem
the family has to continue the payment of premium. To avoid this problem,
the premium waiver benefit can be opted for, by the proposer. Under this
benefit, if the proposer dies before maturity of the policy, future premium
are waived future premium not to be paid by the other family members. The
premium waiver benefit may be obtained by paying
some extra premium depending upon the age of the policy holder. This extra
premium is calculated per 100 rupee of basic premium per thousand.
PROFILE
OBJECTIVES :-
Spread Life Insurance much more 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 responsible cost.
Maximum 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

policy holders, whose money it holds in trust, without losing sight of the
interest of the community as whole, keeping in view national priorities and
obligation of attractive return.
Conduct business with almost and with the full realisation that the
money belongs to the policy holders.
Act as trustees of the insured public in their individual and collective

capacities.
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.
VISION:
“A Tran-nationally competitive
Financial conglomerate of
Significance to society &
Pride of India”
MISSION :-
“Explore 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”
PRODUCTS :-
1. Term Insurance Plan
2. Endowment Plan
3. Money Back Plan
4. Jeevan Mitra Plan
5. Jeevan Sathi Plan
6. Jeevan Surbhi Plan
7. Children Plan
a. Bal Vidya
b. Jeevan Chhaya
c. Children Money Back
TERM INSURANCE PLAN :-
Term insurance plan is a pure risk product that aims to cover your life
at a nominal cost. You may want to take this plan to cover your outstanding
debts like a mortgage, Home Loan etc. Since this is a pure risk cover
product, there is no maturity benefits payable on survival. This is non
participating plan.
Availability of Plan :-
Minimum Age of 12 Years

Maximum Age of 60 Years
Term to Avail Plan :-
Minimum Term 5 years
Maximum Term 55 years
Maximum Age that plan cover 70 years
Advantages of this Plan :-
• It is low cost insurance plan
• You can choose between a regular premium payment option or a

single premium payment option.
• In case you forget to pay your premium by due date, you are
entitled to a grace period of 30 days from the date of unpaid
premiums.
• In case of financial emergency, you have the option to surrender

the policy provided you have taken the single premium payment
option.
ENDOWMENT PLAN
=================
Endowment plan is a protection plan that covers your life and at the
sane time ensure that your money does not lie idle. It invests a portion of
your premium is financial instruments and ensures a considerable growth in
saving. This is a participating plan ( With Profits ). This is most popular plan
which helps fulfilling many long terms and short term financial needs.
Availability of the plan :

==================

Term to Avail plan :
Minimum term 5 years.
Maximum term 55 years.
Maximum age that the plan cover 75 year.\

Advantage of this plan :-
==================
On maturiy, you would receive the sum assure plus the bonuses
addition. Bonuses addition is the amount in the accumulation account, in
access of the sum assure.
• Cover for a term ( years ) of your choice.
• At the same time does not burden you with the liability to pay
premiums for that term.
• Entitiled you to bonus addition for the entire term of the plan.
• For age at entry 61 to 65 years, minimum sum assured is Rs.
250000/- and proposal has to be reffered to divisional officer.
• Premium to be paid for the full policy term or policy holder’s death,
which ever is earlier.
MONEY BACK PLAN :-

=================
The money back plan not only covers your life, it also assure you a
certain percent of the sum assure as cash payment at regular intervals of
every five years. It is a saving plan with the added advantage of life cover
and regular cash inflow. This plan is ideal for planning special movement
like a wedding, your child education or purchase of an asset etc. this is a
participating plan ( with profits ).
How old does the child have to be to avail this plan?

Term to Avail Plan :
20,25 and 30 years for regular premium.
Maximum age that plan will cover till 70 years.
Advantage of this plan :

=================
• The plan not only cover your life but also provides you with a
survives benefit payout every five years.
• In case of death before the policy the policy term ends, full sum assure
plus accumulated bonuses is given to the nominee. The survival
benefit already paid, if any, is not deducted in case of death claim.
• On maturity, you would receive the sum of the survivals benefit,
bonus addition and guarantee addition.
Benefits on maturity :-
On maturity, you would receive the sum of the survivals benefit,

bonus addition and guaranteed addition. The table below in illustrates the
survival benefit for Rs. 1000/- of sum assure.
Survival benefits payout for every Rs. 1000/- sum assured.

Payout (in rupees) .
5th years, 10th years, 15th years, 20th years, 25th years
15 years plan
Survivals benefit 250, 250, 500
Guaranteed addition – 200
20 years plan
survivals benefits 200, 200, 200, 400
guaranteed addition – 300
JIVAN MITRA POLICY :-
====================
Jivan Mitra plan is a protection plan that covers your life and at the
same time assures that your money does not lie idle. It is most popular plan
of LIC. This plan is best suited for people who are insurance oriented and
also want to provide a big sum insurance protection to their family, in case
of their unfortunate death.
This plan is most preferred by traveling persons like sales representatives,
marketing executives, medical representatives.
Availability of the Plan :-

=================
Minimum Age 18 years

Maximum Age 50 years
Term to Avail plan: -

Maximum age 30Years
Maximum Age that Plan cover is 70 years.
Advantages of this Plan: -

==================
• On maturity, basic sum assured plus bonus is given.
• In case of death three times of sum assured plus bonus is given.
• In case of accidental death, four times of sum assured plus bonus is

given, provided policy was covered for accident benefit.
• The returns of the policy will totally tax free U/s 88.
JIWAN SATHI
============
Jiwan Sathi plan is most suitable for newly married couple. It covers
the life risk of both under the single policy. This policy is very economical
and affordable. It is wise to take one Jiwan Sathi, instead of investing in two
different policies individually. This policy is issued only to working couple
or wife should be an income tax assessee. For sum assured 50000 and less,
wife needs not to be earning person. Age taken as mean of both.
Availability of the Plan: -
Minimum Age 20 years

Term to Avail plan: -

Maximum age 30Years
Advantages of this Plan: -

==================
• In case of survival till maturity you would receive sum assure plus full
bonuses.
• If the survivor dies before maturity, sum assure plus bonus till that
time, is pay to the nominee.
• If both husband and wife are alive upto maturity, sum assure plus
bonus is given.
• On death of either husband or wife, the survivor gets sum assured

immediately and future premium are waived.
CHILDREN PLAN: -
===============
The children plan is an investment plan designed to meet your child’s

future financial needs. Its a plan that gives your child to realize his dreams.
This plan divide into two parts :
1. CHILD AS A POLICY HOLDER

2. PARENTS AS A POLICY HOLDER & CHILD AS BENIFICIARY
Child as a policy Holder: -
• Jeewan Sukanya
• Jeewan Kishore
Jeewan Sukanya: -
This policy given on the life of female child is the best gift. Policy
takes care of the need of the girl for the entire life. Female child’s age should
between 1 to 12 years. Father can propose, mother can propose, if she has
her own income. Age at entry is calculated as age last birthday and not as
age nearer birthday. Life risk cover starts from seventh year of the girl child.
Minimum Age 1 years

Term to Avail plan :-

Maximum age 49Years

==================
• On maturity girl surviving till she reaches 50 years of age, bonuses

upto the age is paid.
• After the marriage of girl, husband life is also covered for the amount
equal to sum assure. No additional premium to be paid.
• In case of death of the girl after commencement of risk but before the
maturity date, full sum assure with bonuses is paid.
CHILDREN MONEY BACK POLICY :-
In this policy parents are policy holders and child is beneficiary this is
the best policy for making provisions in advance for children’s higher
education. Policy is an ideal gift for the child male/female. Mother/Father
can propose. Life risk starts from 7th year of child. Parents insurance need
not be sister on insurance upto Rs 100000/-
Minimum Age 0 years

Term to Avail plan :-

Maximum age 26Years

==================
In this 18 & 20 years of child, 20% of the sum assure is given respectively.
After 22 & 24 of the child 30% each of the sum assure is given respectively.
After 26 year of the child, bonus upto that period is given. In addition,
guaranteed addition plus loyalty addition, if any is given also.
If the policy holder dies after the commencement of the risk but before
maturity full sum assure together with guaranteed addition is given to the
nominees without deducting earlier installments paid.
If policy holder (child) dies before the policy risk commerce, premium paid
till them is refunded.
GENERAL BENEFITS :-
PREMIUM WAIVER BENEFITS :-
For a policy taken on the life of a child (children policies-

jeewan kishore, jeewan sukanya, jeewan balya & children money back
policy) the premium is paid by the proposer. Under these policies the
proposer’s life is not covered. It means if proposer dies before maturity of
the policy, no money becomes payable to the family. On the death of the
proposer, the family will loose the income of the propser. In addition to this
problem, the other family members has to continue the payment of premium.
To avoid this problem, the premium waiver benefit can be opted for, by the
proposer. Under this benefit, if the propser dies before maturity of the
policy, future premium are waived future premium not be paid by the other
family members. The premium waiver benefit may be obtained by paying
some extra premium depending upon the age of the policy holder. This extra
premium is calculated 100 rupee of basic premium per thousand.
TERM RIDER BENEFIT :-
Under children money back policy, the life risk covered is that of the child.
If the proposer dies pre maturely, no money becomes payable to the family.
To avoid this problem the term rider can be added to the children’s money
back policy. Under this benefit if proposer dies before 18 years of the child a
sum equal to 20% of the sum assure becomes payable to the family. Other
benefits to the child
TAX BENEFIT :-
The premiums paid under the plan qualify for rebate U/s 88 of the
Income Tax Act, 1961 and the returns are fully exempted under sec
10(10D).
OPTIONAL BENEFITS :-
Critical Illness, Double Sum Assured Benefits, Accidental Death

Benefit etc.
INTRODUCTION
ICICI Prudential Life Insurance Corporation Ltd. was incorporated on

20.7.2002. this company is a joint venture of ICICI(74%) and Prudential plc
UK(26%).
The company was granted certificate of registration for carrying out

Life Insurance Business, by the Insurance Registory and Development
authority on Nov 24.2000. it commenced commercial operations on Dec
19.2000, becoming one of the few private sector players to enter the
liberalized arena.
DETAILS OF ICICI :-
This is Indian participate company of this insurance Co.. ICICI Ltd

was established in 1955 by world bank, the govtof India and the Indian
Industry, to promote industrial development of India by providing project
and corporate finance to Indian Industry.
Since inception, ICICI has grown from a development bank to a

financial conglomerate and has become one of the largest public financial
institutions in India. ICICI has thus far financed all the major sectors of the
economy, covering 6848 companies and 16851 projects.
DETAILS OF PRUDENTIAL PLC :-
Prudential Plc was founded in 1848. since then it has grown to

become one of the largest providers of a wide range of savings products for
the individuals including life insurance, pensions, annuities, unit trust and
personal banking. It has
presence in 15 countries, and caters to the financial needs of over 10 million
customers.
Prudential is the largest life insurance company in the United

Kingdom. Asia has always been an region for prudential and it has had a
presence in Asia for 75 Years. In fact Prudential first Overseas operation
was in India, way back in 1923 to establish Life and General Branch
agencies.
This is the only company who market maximum product with goof
feature in competition with LIC. In my opinion these company’s stand
seconds in merits. It has introduced the following Insurance product :-
1. Save ‘n’ Protect

2. Cash Bak
3. Smart Kid
4. ICICI PRU Life Guard
5. Life Time Pension.
1. SAVE ‘N’ PROTECT :-
It is a fix term policy that combines saving with life cover in this plan,
you pay premium regularly during the term. On death of the life assure upto
age 7 years the basic premium paid will be return without interest. On the
death of the life assured after 7 years, the beneficiary will get the sum
assured, guaranteed additions 3.5% compounded interest annually for the
first 4 years and the vested bonuses was the policy matured at the end of the
term, you can get the full sum assure and guaranteed addition, 3.5% a
compounded annually for the 1st 4 years as well as the vested bonuses.
Minimum Age 0 years

Term to Avail the plan :
Minimum term 10 years, maximum term 30 years

The maximum cover ceasing age is 70 years.
Advantages of this plan :
• The plan not only covers your life but also provides you with a survives
• In the unfortunate event of death of life insure, the beneficiary would
• On the maturity, you would receive the sum of the survivals benefit,
bonus addition and guaranteed addition.
modes, depending upon your conveniences.
• Money back plan offers the tax benefit U/s 88, Sec 80D and Sec
10(10D)
• of the Income Tax Act, 1961 are applicable.
• You can take a loan against this plan.
2. CASH BANK :-
A fixed term policy of 15 to 20 years in which premiums are paid

through out the term of the policy. Survival benefit payment at regular
intervals are paid to provide you with the liquidity full sum assured, along
with the guaranteed addition 3.5% compounded annually for the 1st four
years at the vested bonuses would be payable on death, irrespective of the
survival benefit paid. On death of the life assured, the beneficiary will get
the full sum assure, the guaranteed bonuses and the vested bonuses,
irrespective of the survival benefit already paid. The survival benefit payable
are as per the table :
Policy Term 15 Years Policy Term 20 Years
At end of year Survival pay. a % At the end of year Survival pay a %

basic bas sum assured
sum assured
3 10% 4 10%
6 15% 8 15%
9 20% 12 20%
12 25% 16 25%
15 (Maturity) 50% gur add. bonus 20 (Maturity) 50% gur add. bonus
Minimum Age 16 Years

Term to Avail Plan:

Maximum Term 20 Years
The maximum maturity age is 70 years
• The plan not only covers your life but also provide you with a survivals
• In the unfortunate event of death of the life insure, the beneficiary would
• On maturity, you would receive the sum of the survivals benefit, bonus
addition and guaranteed addition.
modes, depending on your conveniences.
• Money back plan offers the tax benefits U/s 88, Sec 80D and Sec
10(10D) of the Income tax Act, 1961 are applicable.
3. SMART KID: -
===========
Smart kid is so designed that it provides you the flexibility to structure

the benefit in accordance to your needs. You get the security of assured
payments under your plan depending upon the benefit structure chosen by
you. What’s more, you can decide the term of the plan, so that the benefit
are paid when you need it. You can also choose the policy to mature
between 22-25 years of the child’s age. In case of survivals during the term
of the policy you can get the payouts after some intervals.
At the end of Child’s age Payouts
10 yr of the policy 15 years 20% of the sum

assured
assured
assured
assured
+ GA + VB
Minimum Age 0 Years
Parents of Minimum age 20 years and Maximum age 60 years
Term to Avail Plan:
• On maturity you would receive the sum assured plus the bonus addition
• The automatic cover maintenance facility ensures the policy remains

inforce for at least 3 years.
• You have the option of paying premium half yearly or yearly.
10(10D) of the Income tax Act,1961 are applicable.
4. LIFE TIME PLAN :-
ICICI Prudential Life time Pension Plan combine the best of

investment and insurance. The solution gives the power of maintaining your
life style needs for as long as you live. It is a regular premium plan it gives
you the freedom to choose the amount, the premium, and invest your money
in the market-linked funds, to generate potentially higher returns. A part of
the premium paid is used to pay for the death benefit (if any) opted for by
you and the rest be invested in the plan of your choice. On the retirement
date the accumulated value of the units will be used to purchase and annuity-
to provide you with regular income for life.
Term to Avail Plan:

• Power to choose the retirement age between 52-70 years.
• You can increase your investment during the deferred period.
• You can increase or decrease the protection level.
• You can invest in a plan based on your priorities.
10(10D) of the Income tax Act, 1961 are applicable.
• Your policy acquires a paid up and surrender value after 3 years

premiums are paid in life time pension plan.
5. LIFE GUARD :-
Under this plan, a sum assure is payable in case of death of the life
assure during the term of contract. One can choose the lump sum that would
replace the income lost to one’s family in the unfortunate event of the one’s
death. Since this non-participating (without profits) plan is a pure, risk cover
plan, no benefits are payable on survival to the end of the term of the policy.

Term to Avail Plan:

Maximum age that plan covers is 65 years
Minimum premium payable is 2400 per annum
• On maturity, you would receive the sum assure plus the bonuses
addition. Bonuses addition is the amount in the accumulation account. In
cases of the sum assure.
• Cover you for a term (years) of your choice.
• At the same time does not burden you with the liability to pay premiums
for the entire life
• Entitled you to a bonus addition for the entire term of the plan.
• Premium to be paid for the Full policy term or policy holder’s death,
whichever is earlier.
• You have the choice of paying premium either in yearly, half yearly and
quarterly modes or of paying a single one time premium
• Level term Assurance life guard plan will have the option with returns of
premium. In case of death you will receive the sum assure plus bonuses.
On survival till maturity, all the premium paid, will be returned without
interest. The minimum premium payable is Rs 2400/- per annum
10(10D) of the Income tax Act,1961 are applicable.
GENERAL BENEFITS
Accident Death Benefit :-
This benefit provides an additional amount (Over and above basic

sum assured) to the beneficiary in the death of the accidental death of the
assured. The maximum cover available under this benefit is equal to the
basic sum assured (subject to a maximum of Rs 10 lac). If accident death
occurs while traveling as a passenger in mass transport system like train or
bus amount payable would be double of the sum assure.
Critical Illness Benefit :-
The benefit can be taken with the basic life insurance policy to
provide financial support in the event of medical emergencies. On the first
occurrence of critical illness during the term of the policy, you would
receive a portion of the sum assured to reduce your financial burden in this
emergency.
Permanent Disability Benefit :-
This benefit provides financial support in case of your permanent

disability due to an accident. The amount payable is over and above the
basic sum assured and would be paid out as an annuity. The maximum
permanent disability benefit that permanent disability is defined as a
permanent and immediate inability to work, the permanent loss of two limbs
or a total and permanent loss of a sight.
Major Surgical Rider :-
This is a cover available against the major surgical procedures.

Depending upon the surgery, 50%,30% or 20% of the sum assured under the
rider is paid. This provide the cover of the sum, subject to maximum of 65
years. Claims for this rider are not admitted for the first 6 months of the
policy.
As 0it is difficult to compare all the policies of all the companies because
they vary in their benefits etc. So in this project I am comparing only four
policies of three Companies i.e. HDFC Standard Life, LIC, ICICI
Prudential.
Policies are named as :
• TERM ASSURANCE PLAN
• ENDOWMENT ASSURANCE PLAN
• MONEY BACK PLAN
• CHILD ADVANTAGE PLAN

Min to Max Age Premium Base Comparison Min to Max. term
18-60 years Term Plan 10-30 years
Name of the HDFC SLIC LIC ICICI PRO OM KOTAK

company
Age of the 30 years 30 years 30 years 30 years
person
Term of the 10 years 10 years 10 years 10 years

policy
Sum assured 1,00,000 1,00,000 1,00,000 1,00,000
Basic 10,300 9,324 11,809 11,237

premium
(without any
premium)
Returns (on S.A. + Bonus S.A. + S.A. + Bonus S.A. + Bonus
death) Bonus
Returns (on NI2 NI2 NI2 NI2
maturity)
other benefits (CI),(ADB),(ASA) (WOP), (ADBR), (CI),(ADB)
(ADB) (ABR) (PDB)
12-60 years Endowment Plan 10-30 years
company
Age of the person 30 years 30 years 30 years 30 years
Term of the policy 20 years 20 years 20 years 20 years
Sum assured 1,00,000 1,00,000 1,00,000 1,00,000
Basic premium 5,100 4,895 5,216 5,321

(without any
premium)
Returns (on death) S.A. + Bonus S.A. + S.A. + Bonus S.A. + Bonus
Accumulated
Bonus
Returns (on S.A. + Bonus S.A. + Bonus S.A. + Bonus+ S.A. + Bonus
maturity) GA
Other benefits (CI),(ADB), (WOP), (ADB) (ADB),(ABR), (CI),(ADB)

(DSA),(WOP) (CI),(MSR) (DSA),(2GD),
(TB)

12-60 years Money Back Policy 10-30
years
Name of HDFC SLAIC LIC ICICI PRO OM KOTAK
the
company
person
policy
Sum 1,00,000 1,00,000 1,00,000 1,00,000
assured
Basic 7,585 6,380 7,019 6,040
premium
(without
any
premium)
Returns (on S.A. + Bonus S.A. + Bonus S.A. + S.A. + Bonus
death) Bonus
Returns (on Return after 5-5 Return after In 20 year’s Return after 5-5
maturity) year’s 5-5 year’s Policy year’s
For 20 Year’s For 20 returns after For 20 Year’s
Policy 20%-20% Year’s Policy 4-4 years Policy 20%-20%
and 20% alte 5-5 20%-20% gap. and 20% alte 5-5
year’s gap+ and 20% alte 1st year-10% year’s gap+
Bonus 5-5 year’s 2nd year- Bonus
gap+ Bonus 15%
3rd year-20%
4th year-25%
On
maturity-
50%+
Bonus
Other (CI),(ADB), (WOP), (ADB), (CI),(ADB),
benefits (DSA),(WOP) (ADB) (DAB), (PDB), (2GD)
(CI),(MSR)
Min to Max Age of Child 0-17 Premium Base Comparison Min to Max. term
Min to Max Age of Policy Holder Children Policy 10-30 years
12-60 years
company
Child
policy
Sum assured 1,00,000 1,00,000 1,00,000 1,00,000
Basic 7,500 6,380 7,991 7,620
premium
(without any
premium)
Returns (on Future Future Future Future premium
death) premium premium premium waived and Policy
waived and waived and waived and continue till
Policy Policy sum assured maturity
continue till continue till immediately
maturity maturity after the death
Returns (on Sum assured+ Return after Return after Sum assured+
maturity) Bonus 2-2 year’s 2-2 year’s gap Bonus
gap 20 % - on maturity
20%-30% S.A.+ Bonus
-30% and
Bonus
Other benefits (ADB, (PWP), (ADB),(IBR), (LGB),(ADB),
(WOP) (TRB) (ABR), (WOP)
(WOP)
OTHER BENEFITS :-
1. Tax Benefit
2. Loan Facility
3. The policy holder can pay the premium yearly, half yearly and
quarterly
4. If policy holder avail any additional, he will paid more premium
5. The best of most popular plan of:
HDFC CHILDREN PLAN

ICICI LIFE TIME
LIC JEEVAN MITRA
OM KOTAK CAPITAL MULTIPLE
6. When the age of the person grow old. The premium also increased
7. Premium rate increased in case of person taking intoxicants in

comparison to healthy person.
1) Sample Size - Sample Size in my study is 200.
2) Age Group - above 22
3) Sampling Technique : Sampling Technique used in my study is

Convenience Sampling.
4) Sample Design:Sample in my study is non-probability sample design.

5) Method of Data Collection: In my study data collected is both of Primary
type and Secondary type data.
 Primary Data is collected through Questionnaire. The

Questionnaire consists of eight different questions. The
questions are of close ended.
 Secondary Data: Secondary data collected if from following

two :
India Today
Business Today
Websites
OBJECTIVES OF THE STUDY :-
1. To know about the requirement habit of the people in the region of

Patiala.
2. To know about the views of people regarding various Insurance

Companies.
3. Position of the Insurance companies in the mind of the consumer
4. To know about the competition regarding various Insurance

Companies.
5. To find out the position of Insurance Companies in the market.
LIMITATIONS :-
1. Most of the people are not interested to give the right data.
2. Some people don’t know about the private Companies.
3. A span of 6 weeks training was too short for survey.

DATA ANALYSIS AND FINDINGS :-
QUES 1 : Awareness of the Various companies ?
S.No. Particulars %age
A ICICI 80%
B HDFC 75%
C OM Kotak Mohindra 5%
D MAX New York Life Insurance 15%
E SBI Life Insurance 10%
80%
60%
40%
20%
0%
% age
ICICI
HDFC
OM Kotak Mohindra
MAX New York Life Insurance
SBI Life Insurance
Interpretation 80% people know about ICICI Insurance Company. 75%

people know about HDFC Insurance Company. 15 % people know about
other Company. So we can analyze that more people aware about ICICI
Insurance Company.
QUES 2 : How the people know about the companies?
A Newspaper 75%
B TV Ad’s 60%
C Banners/Posters 2%
D Friends 90%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
% age
Newspaper TV Ad’s Banners/Posters Friends
Interpretation 90% people know about the insurance company by

friends. 75% people know from newspaper. 60% know from TV Ads. Only
2% people know the company with help of banners and posters. It is analyze
that friends are main source of Advertisement.
QUES 3: What the people think about the Insurance?

A Necessity for protection 89%

Security
B Imposition of an extra burden 5%
of expenses
C A compulsory tool for tax 78%
saving
100%
80%
60%
40%
20%
0%
%age
Neccesity for protection Security

Imposition of an extra burden of expenses
A compulsory tool for tax saving
Interpretation 89% people think that insurance is necessary for

protection security. 78% people think that insurance is compulksory tool for
tax saving. 5% think that insurance is imposition of an extra burden of
expenses. It is analyze that mostly people think that insurance is necessary
for protection security.
QUES 4: Main considerations that a customer looks at while

purchasing an Insurance Policy?
A TAX 90%
B SAVING 75%
C PROTECTION 80%
D PENSION 25%
E INVESTMENT 35%
100%
80%
60%
40%
20%
0%
%age
TAX SAVING PROTECTION

PENSION INVESTMENT
Interpretation 90% people prefer tax while purchasing an

insurance policy. 80% people prefer protection. 75% prefer saving. 35%
people investment. 25% prefer pension. It is analyzed that mostly people
prefer tax and protection while purchasing an insurance policy.
QUES 5 : What a respondents see while purchasing a Insurance from
the Company?
A Standing and Goodwill of the company 90%
B Product Range of the company 10%
C Advertisement being released by the 5%
company
D Services being given by the company 80%
E Communications and knowledge of the 10%
Representatives
F Returns of Bonus declared by the 85%
company
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
%age
Standing and Goodw ill of the company

Product Range of the company
Adv ertisement being released by the company
Serv ices being giv en by the company
Com m unications and k now le dge of the Re pre s e ntative s
Returns of Bonus declared by the company
Interpretation 90% people see standing and goodwill of the company.

85% people return of bonus declared by the company while purchasing a
insurance from the company. 80% people see services being given by the
company and remaining 25% product range of the company and the
communication and knowledge of the representative. So it is analyzed that
moistly people prefer standing and goodwill of the company.
QUES 6 : Excising Policy?

A Yes 80%
B No 20%
80%
70%
60%
50%
40%
30%
20%
10%
0%
%age
Yes No
Interpretation 80% people favor the excising policy. 20% people

donot favor the excising policy.
QUES 7 : From where a respondent purchase the previous Insurance

Policy?

A Directly from the company 10%
B Any unknown agent 10%
C Any known agent 90%
D Others 5%
100%
80%
60%
40%
20%
0%
%age
Directly from the company

Any unknown agent
Any known agent
Others
Interpretation 90% people purchase the previous insurance policy from

any known agent. 10% people purchase it from directly from the company.
10% from any unknown agent. 5% people know from others. A known agent
is the significant in purchasing the previous insurance policy.
QUES 8: Other Investment and Saving Tools where respondent Invest?
S.No. Particulars % age
A NSC 90%
B Bank Deposits 40%
C KVP 5%
D Tax Saving Bonds 55%
E PPF and Post Office 92%
F Others 5%
100%
80%
60%
40%
20%
0%
% age
NSC Bank Deposits

KVP Tax Saving Bonds
PPF and Post Office Others
Interpretation 92% people prefer and post office as investment and

saving tool where a person can invest. 90% people prefer NSE. 40% people
prefer Bank deposit. 55% people prefer tax saving bonds. Other 10% people
prefer KVP. So it is analyzed that mostly people prefer PPF and post office
and NSE as a investment and saving tool.
FINDINGS
1. The Monopoly of LIC has been broken because private Insurance

companies came into the market.
2. 90% respondents are aware of privatization of Insurance Industry and

10% respondents do not know about private companies.
3. 80% people know about ICICI Insurance Company. 75% people know
about HDFC Insurance Company and 15% people know about other
companies.
4. Some people preferred to the private companies because of their better
services.
5. Some people believe only or preferred only Public Insurance

companies like LIC.
6. As majority of the population of Mandi City belongs to the service

class so they consider tax saving rather than purchasing a Life
insurance.
7. The Financial growth of Private companies is much more than Life

Insurance companies
8. The private companies always keep in touch with their customers with
the latest information.
9. Most of the respondent said that private companies should not be
trustworthy
10.Most of the people go for Children benefit because of Triple benefit.
11.Now, a days people preferred to invest the money in Insurance policy

rather than in Banks because of better benefits of Insurance polices
growth money with life cover.
12.The respondents are above 45 they believe in Public Insurance

companies and those respondents who are less than 45 believe in
Private Insurance companies
13.HDFC has made its presence felt in the market in a short span of time.
SUGGESTIONS
1. Advertisement should be done on Television and especially Posters
and Banners. This will greatly help in raising awareness level.
2. Insurance company should show more commitment with the

customer.
3. Private companies give better services to the customers comparatively

to Public companies.
4. The private company should create good relation and communication.
5. Private companies should work together to spread awareness

regarding the benefit given by the Private Companies.
6. Private Insurance Companies give some discount to attract the

customer
7. A public relation officer should be appointed in the company who

deals with customers and their needs.
8. Cross training should introduce in Private Companies.
9. Private Companies needs to the market their product better and should
create greater awareness about their product and services. They need
extensive marketing advertising about the additional benefit provided
by them in comparison to the policies offered by LIC.
10.Agents have got maximum influence on a customer. They are the one
who introduce the prospect to different policies. So agents should be
given full-fledged training and the training should be strict.
11.Special emphasizes should be on known cover policies because these

type of policies have more potential in the market.
QUESTIONNAIRE
Q1: Awareness of the various components.

(a) ICICI
(b) HDFC
(c) OM Kotak Mohindra
(d) Max New York Life Insurance
(e) SBI Life Insurance
Q2: How the people know about the companies?
(a) Newspaper
(b) TV Ad’s
(c) Banners and posters
(d) Friends
Q3: What the people think about the Insurance?
(a) Necessity for protection security.
(b) Imposition of extra burden of expenses
(c) A compulsory tool for tax saving.
Q4: Main consideration that a customer looks at while purchasing an Insurance
Policy.
(a) Tax
(b) Saving
(c) Protection
(d) Pension
(e) Investment
Q5: What a respondents see while purchasing a Insurance from the

Company.
(a) Standing and Goodwill of the Company.
(b) Product Range of the company
(c) Adv. Being released by the company

(d) Services being given the company
(e) Communication and Knowledge of the representatives
(f) Returns of Bonus declared by the company
Q6: Excising Policy
(a) Yes
(b) No
Q7: From where a respondent purchase the previous Insurance Policy.

(a) Directly from the company
(b) Any unknown agent
(c) Any known agent
(d) Others
Q8: Other Investment and Saving tools where respondent Investment

(a) NSC
(b) Bank Deposit
(c) KVP
(d) Tax Saving
(e) PPF and Post Office
(f) Others
BIBLIOIGRAPHY
Study Material Of HDFC STANDARD LIFE INSURANCE

Study Material Of LIC
Study Material Of ICICI PRUDENTIAL
WEBSITES
www.hdfcstandardlife.com http://www.hdfcstandard.com
www.licindia.com http://www.licindia.com
www.icicipufile.com http://www.iciciprulife.com
www.bimaonline.com http://www.bimaonline.com

A Comparative Study Based On CustomersGÇÖ Preference Analysis Towards Insurance Products

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

A Comparative Study Based On CustomersGÇÖ Preference Analysis Towards Insurance Products

Încărcat de

Drepturi de autor:

Formate disponibile

A

A Comparative Study Based on Customers’ Preference Analysis

In Partial fulfillment for the

“If words are considered as symbol of approval and taken of

I am indebted to Mr. Tejveer Sandhu (Branch Manager),Vijay Thakur

I would like to express my sincere gratitude towards Mr. Parveen Kalsi

To overcome these risks and uncertainties this project describes about

A study of life insurance describes the meaning, various policies,

2) Opening of Insurance Sector in India

3) Changing Expectations of Customers

4) Major Players in Life Insurance

8) Suggestions & Conclusion

It is natural to think of insurance of physical assets such as motor car

their overseas partners. It is likely to bring in a more professional and

DEFINITION GENERAL DEFINITION :-

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

In the words of D S Hansel, “ Insurance may be defined as a

In the words of justice Tidal “ Insurance is a contract in which a

NEED OF THE LIFE INSURANCE: -

The original, basic intention of life insurance is to provide for

The original purpose of Life Insurance remains an important element,

Providing one’s family and oneself, as a medium to long-term exercise

Put simply, the building up of saving while safeguarding it from ravages

Provision for one’s on later years has become increasingly necessary,

2. It encourages saving and forces thrift:

3. It provides easy settlement and protection against creditors

4. It can be encased and facilities borrowing:

Role 1 : Life Insurance as “investment”

Insurance is an attaractive option for investment. While most people

Role 2 : Life Insurance as “Risk Cover”

First and foremost, insurance is about risk cover and protection –

Insurance also provides a safeguard in the case of accident or a drop

ROLE 3 : Life Insurance as “Tax Planning”

Insurance serves as an excellent tax saving mechanism too. The Govt.

Life Insurance in its modern form is a western concept. The Indian

Indian Company Foreign Partner

Kotak Mahindra Chubb

Tata Group AIG

Sundram Finance Winterthur

Alpic Finance Allianz

20th Century Canada Life

Vysa Bank ING

SBI Alliance Capital

HDFC Standard Life

Hindustan Times Commercial Union

Max India New York Life

Before looking in future prospectus of the insurance industry,

When the insurance Industry was nationalized, it was consider a land

2. Similarly the penetration of insurance is also assessed by the ratio

3. The penetration of Insurance is also assessed by a ratio of

4. The share of India in the world market in terms of gross insurance

OBJECTIVE OF LIBERALIZATION OF INSURANCE :-

2 104 15.11.2000 Max New York Life Insurance CO. Ltd

3 105 24.11.2000 ICICI Prudential Life Insurance CO. Ltd

5 109 31.01.2001 Birla Sun Life Insurance CO. Ltd

6 110 12.02.2001 Tata AIG Life Insurance CO. Ltd

7 111 20.03.2001 SBI Life Insurance CO. Ltd

8 114 02.08.2001 ING Vyasya Life Insurance CO. Ltd

9 116 03.08.2001 Allianz Bajaj Life Insurance CO. Ltd

10 117 06.08.2001 Metlife Insia Life Insurance CO. Ltd

RESEARCH OBJECTIVE AND METHODOLOGY

To provide insight into customers experiences prior to recent