Hdfc 99 Format

8/13/2019 Hdfc 99 Format

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CHAPTER 1

INTRODUCTION


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INTRODUCTION:

WHAT IS INSURANCE?

The business of insurance is relate to the !rotection of the econo"ic #alues of assets

E#er% asset has a #alue$ The asset &oul ha#e been creates throu'h the efforts of the o&ner$ The

asset is #aluable to the o&ner( because he e)!ects to 'et so"e benefits( fro" it$ The benefit "a%

be an inco"e or so"ethin'else$ It is a benefit because it "eets so"e of his nees$ In the case of a

factor% or a co&( the !rouct 'enerate b% is sol an inco"e 'enerates$ In the case of a "otor

car( it !rofices co"fort an con#enience in trans!ort$ There is no irect inco"e$

E#er% asset is e)!ecte to last for a certain !erio of ti"e urin' &hich it &ill !erfor"

After that( the benefit "a% not be a#ailable$ There is a life*ti"e for a "achine in a factor% or a

co& or a "otor car$ None of the" &ill last fore#er$ The o&ner is a&are of an so he can "ana'e

his affairs that b% the en of that !erio or life*ti"e( a substitute is "ae a#ailable$ Thus( he

"a+es sure that the #alue or inco"e is not lost$

Ho&e#er( the asset "a% 'et lost earlier$ An accient or so"e other unfortunate e#ent "a%

estro% it or "a+e it non*functional$ In that case( the o&ner an those e!ri#in' benefits an the

!lanne substitute &oul not ha#e been rea%$ There is an a#erse or un!leasant situation

Insurance is a "echanis" that hel!s to reuce the effect of such a#erse situations$


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DEFINITION:

A !ro"ise of co"!ensation for s!ecific !otential future losses in e)chan'e for a !erioic

!a%"ent$ Insurance is esi'ne to !rotect the financial &ell*bein' of an ini#iual( co"!an% or

other entit% in the case of une)!ecte loss$ So"e for"s of insurance are re,uire b% la&( &hile

others are o!tional$ A'reein' to the ter"s of an insurance are re,uire b% la&( &hile others are

o!tional$ A'reein' to the ter"s of an insurance !olic% creates a contract bet&een the insure an

the insurer$ In e)chan'e for !a%"ents fro" the insure -calle !re"iu"s.( the insurer a'rees to!a% the !olic% holer a su" of "one% u!on the occurrence of a s!ecific e#ent$ In "ost cases( the

!olic% holer !a%s !art of the loss -calle the eucible.( an the insurer !a%s the rest$ E)a"!les

inclue car insurance( health insurance( isabilit% insurance( life insurance( an business

insurance$


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NEED FOR THE STUDY:

We are not sa%in' that life an e)istence are constantl% frau'ht &ith an'er an

uncertaint%$ /ut then it is essential that %ou !lan for the future$ The chances for a fatalit%

or an in0ur% to occur to the a#era'e ini#iual "a% not be !articularl% hi'h but then noone can reall% affor to co"!letel% isre'ar his or her future an &hat it hols$Peo!le

'enerall% re'ar insurance as a sche"e &hen an &here %ou ha#e to lose a lot to 'ain a

little$ Ne#ertheless( insurance is still the "ost reliable tool an ini#iual ca use to !lan for

his future$

The "ain !ur!ose of oin' the !ro0ect &as to +no& about !rocesses in#ol#e in

recruit"ent of financial consultants an the #arious !roucts associate &ith it an its

functionain'$ This hel!s to +no& in etail about insurance inustr% ri'ht fro" its

ince!tion( 'ro&th an future !ros!ects$ It also hel!s in unerstanin' ifferent sche"es

of insurances$ Therefore HD2C Stanar 3ife Insurance is one of the !ioneer co"!anies

in the Inian "ar+et an thats &h% it &as chosen to learn "ore about the insurance

sector an the ris+ an return associate &ith it$ The !ro0ect stu% &as one an esti"ate

future !ro0ections affectin' in#est"ents$ Ulti"atel%( this &oul hel! in unerstanin' the

benefits( the a&areness a"on' #arious e)istin' an !otential in#estors$

3ife insurance lea#es "one% for %our fa"il% if %ou shoul ie earl%$ So"e life insurance

!lans ha#e sa#in's features$ Re"e"ber( !rotectin' %our e!enents-those &ho ount on

%ou financial su!!ort. in case of %our eath is the "ain reason for life insurance$


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4ost !eo!le ont ha#e enou'h life insurance$ In 1567( the a#era'e A"erican fa"il% &ith

insurance ha 89:(;


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CONCEPT OF THE STUDY:

On the one han( hu"an life is sub0ect to #arious ris+s*ris+ of eath or isabilit% ue to natural or

acciental causes$ Hu"ans are also !rone to iseases( the treat"ent of &hich "a% in#ol#e hu'e

e)!eniture$ On the other han( !ro!ert% o&ne b% "an is e)!ose to #arious haBars( natural

an "an*"ae$

When hu"an life is lost or a !erson is isable !er"anentl% or te"!oraril%( there is a loss of

inco"e to the househol$ The fa"il% is !ut to harshi!$ So"eti"es sur#i#al itself is at stale for

the e!enants$

When it co"es to !ro!ert%( loss or a"a'e to !ro!ert% results in either &hole or !artial loss in

inco"e to the !erson or entit%

Ris+ has the ele"ent of un!reictabilit%$ Deathisabilit% or lossa"a'e coul occur at an%ti"e

3osses can be "iti'ate throu'h insurance$ Insurance is a co""oit% &hich offers !rotection

a'ainst #arious contin'encies$

Insurance !roucts a#ailable for life an non*life are "an%$ In non*life( a!art fro" !ersonal

co#ers such as accient co#ers an health insurance( there are !roucts co#erin' liabilities uner

a !articular la& an or co""on la&$ The #arious !roucts are esi'ne to cater to ifferent

nees of an ini#iual or inustr% such as fire insurance !olic% on "ulti*storie builin'

householers !olic%$

An insurance contract !ro"ises to "a+e 'oo to the insure a certain u" in consieration for a

!a%"ent in the for" of !re"iu" fro" the insure$ Hu"an life cannot be #alue$ Hence the su"

assure -or the a"ount 'uarantee to be !ai in the e#ent of a loss. is b% &a% of a benefit in the

case of life insurance$ 3ife insurance !roucts !ro#ie a efinite a"ount of "one% to the


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e!enents of the insure in case the life insure ies urin' his acti#e inco"e earnin' !erio or

beco"es isable on account of an accient causin' reuctionco"!lete loss in his inco"e

earnin's$ An ini#iual can also !rotect his ol a'e &hen he ceases to earn an has no other

"eans of inco"e b% !urchasin' an annuit% !rouct$

A !ersonal Accient co#er is also for !rotection$ In the e#ent of eath or isabilit%

!er"anent or te"!orar%( of the insure( it !ro#ies for co"!ensation &hich is either the &hole

or a !ercenta'e of the Ca!ital Su" Insure e!enin' on the +in of loss$ In the case of Health

Insurance( the !olic% see+s to co#er e)!enses to&ars of treat"ent of iseases an or in0ur% u!to

the Su" Insure o!te for b% the insure$

In res!ect of insurance relatin' to !ro!ert%( there are "an% !roucts a#ailable$ Pro!ert% "a% be

co#ere a'ainst fire an !erils of nature incluin' floo( earth,ua+e etc$ 4achiner% "a% be

insure for brea+o&n$ oos in transit can be insure uner a "arine car'o insurenae co#er

Insurance co#ers are also a#ailable for shi!s an other #essels$ A "otor insurance !olic% co#ers

thir !art% a"a'e as &ell as a"a'e to the #ehicle$

Insurance of !ro!ert% is base on the !rinci!le of ine"nit%$ The iea is to brin' the insure to

the sa"e financial !osition as heshe &as before the loss occurre$ It safe'uars the in#est"entin the !ro!ert%$ Where there is no insurance( losses can "ar a !ro0ect or an inustr%$ eneral

Insurance offers stabilit% to the econo"% an to the societ%$ Insurane offers securit% an so !eace

of "in to the ini#iual$ The conce!t of insurance is that the losses of a fe& are "ae 'oo b%

contribution fro" "an%$ It is base on the la& of lar'e nu"bers$ It ste""e fro" the nee of

"an to fin a solution for "iti'ation of losses$ It also reflects the nature of "an to fin a solution

collecti#el%$

It is i"!ortant for all to unerstan the #arious !roucts that life an 'eneral

insurance co"!anies offer before the% "a+e a choice as to the !rouct the% &ant to bu%$

As !er re'ulations( insures ha#e to 'i#e the #arious features of the !roucts at the !oint

of sale$ The insure shoul also 'o throu'h the #arious ter"s an conitions of the !roucts an

unerstan &hat the% ha#e bou'ht an "et their insurance nees$


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OBJECTIVIES OF THE STUDY:

The ai" of the !resent stu% &as to achie#e the follo&in' ob0ecti#esF

To !ro"ote the 3ife Insurance business$

To fin out the #arious co"!etitors in the Insurance sector$

To ientif% the in#est"ent !attern of the in#estors in Gisa+ha!atna"$

To anal%sis the !rouct etails of HD2C Stanar life Insurance Co"!an%

li"ite $

To fin Points of Parit% an Points of Difference of HD2C Stanar 3ifeInsurance Co"!an% 3i"ite

To fin out factors that influence custo"ers to !urchase insurance !olicies

an 'i#e su''estions for further i"!ro#e"ent$


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SCOPE OF THE STUDY:

The total in#est"ent !ortfolio of the insurers in Inia as at the en of 4arch( =


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At this !oint( it is i"!ortant to note that not all acti#ities can be insure$ If that &ere

!ossible( it &oul co"!letel% ne'ate entre!reneurshi!$ Professor 2ran+ Jni'ht in his celebrate

boo+ Ris+ Uncertaint% an Profit@ e"!hasiBe that !rofit is a conse,uence of uncertaint%$ He

"ae a istinction bet&een ,uantifiable ris+ an non*,uantifiable ris+$ Accorin' to hi"( it is

non*,uantifiable ris+ that leas to !rofit$ He &rote It is a &orl of chan'e in &hich &e li#e( an

a &orl of uncertaint%$ We li#e onl% b% +no&in' so"ethin' about the future &hile the !roble"s

of life or of conuct at least( arise fro" the fact that &e +no& so little$ This is as true of business

as of other s!heres of acti#it%@$ The real "ana'e"ent challen'es are uninsurable ris+s$ In the

case of insurable ris+s( ris+ is a#oie at a cost$ The Insurance Inustr% has 'ot a 'reat future

since the inflation at !resent is lo& in our countr% it &ill surel% 'ro& in "ere future


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METHODOLOGY

TYPE OF DATA COLLECTEDThere are t&o t%!es of ata use$ The% are !ri"ar% an seconar% ata$ Pri"ar% ata is

efine as ata that is collecte fro" ori'inal sources for a s!ecific !ur!ose$ Seconar% ata is

ata collecte fro" inirect sources$ -SourceF Research 4ethoolo'%( /% C$ R$ Jothari.

PRIMARY SOURCES

These inclue the sur#e% or ,uestionnaire "etho( tele!honic inter#ie& as &ell as the

!ersonal inter#ie& "ethos of ata collection$

SECONDARY SOURCES

These inclue boo+s( the internet( co"!an% brochures( !rouct brochures( the co"!an%

&ebsite( co"!etitors &ebsites etc( ne&s!a!er articles etc$ Profile of the co"!an% an its

ob0ecti#es &ere 'athere fro" the 4e"oranu" of Association of the Co"!an% an

other &or+in' !a!ers !ro#ie b% the co"!an%$


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LIMITATIONS

The stu% is li"ite to onl% fi#e co"!anies$

Ser#ices to !olic% holer so"e of the res!onents i not ha#e that "uch iea about

!roucts an their ser#ices$

so"e res!onents ue to ti"e constraint coul not e)!ress their #ie&s co"!letel%$

Sensible ata can not obtaine for so"eti"e$

This sur#e% &as li"ite to GISAJHAPATNA4 onl%$


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CHAPTER 2

INDUSTRY PROFILE


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HISTORY AND BACKGROUND:

INSURANCE IN INDIA:

The insurance sector in Inia has co"e a full circle fro" bein' an o!en co"!etiti#e "ar+et to

nationaliBation an bac+ to a liberaliBe "ar+et a'ain$ Tracin' the e#elo!"ent in the Inian

insurance sector re#eals the >;< e'ree turn &itnesse o#er a !erio of al"ost t&o centuries$

A brief history of the Insurance sector:

The business of life insurance in Inia in its e)istin' for" starte in Inia in the %ear 1616 &ith

the establish"ent of the Oriental 3ife Insurance Co"!an% in Calcutta$

Some of te !m"o#t$%t m!&e'to%e' !% te &!fe !%'(#$%)e *('!%e'' !% I%+!$ !':

,-,2F* The Inian 3ife Assurance Co"!anies Act enacte as the first statue to re'ulate the

life insurance business$

,-2.:* The Inian Insurance Co"!anies Act enacte to enable the 'o#ern"ent to collect

statistical infor"ation about both life an non*life insurance businesses$

,-/.:0 Earlier le'islation consoliate an a"ene to b% the Insurance Act &ith the

ob0ecti#es of !rotectin' the interests of the insurin' !ublic$


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,-1:0 =:7 Inian an forei'n insurers an !ro#ient societies ta+en o#er b% the centra

'o#ern"ent an nationaliBe$ 3IC for"e b% an Act of Parlia"ent( #iB$ 3IC Act(

,-1:0 &ith a ca!ital contribution of Rs$7 crore fro" the o#ern"ent of Inia$

The eneral insurance business in Inia( on the other han( can trace its roots to the

Triton Insurance Co"!an% 3t$( the first 'eneral insurance co"!an% establishe in the

%ear 167< in Calcutta b% the /ritish$

So"e of the i"!ortant "ilestones in the 'eneral insurance business in Inia areF

,-34:0 The Inian 4ercantile Insurance 3t$ Set u!( the co"!an% to transact all classes

of 'eneral insurance business

,-14:0 eneral Insurance Council( a &in' of the Insurance Association of Inia( fra"es a

coe of conuct for ensurin' fair conuct an soun business !ractices$

,-.:0 The insurance Act a"ene to re'ulate in#est"ents an set "ini"u" sol#enc%

"ar'ins an the Tariff A#isor% Co""ittee set u!$

,-42: The eneral Insurance /usiness -NationaliBation. Act( 159= nationaliBe the

'eneral insurance business in Inia &ith effect fro" 1stKanuar% 159>$

1


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I%'(#$%)e 'e)to# #efo#m'

In 155>( 4alhotra Co""ittee( heae b% for"er 2inance Secretar% an R/I o#ernor R$N

4alhotra( &as for"e to e#aluate the Inian insurance inustr% an reco""en its future

irection$

The 4alhotra co""ittee &as set u! &ith the ob0ecti#e of co"!le"entin' the refor"s initiate in

the financial sector$

The refor"s &ere ai"e at creatin' a "ore efficient an co"!etiti#e financial s%ste" suitable

for the re,uire"ents of the econo"% +ee!in' in "in the structural chan'es currentl% uner&a%

an reco'niBin' that insurance is an i"!ortant !art of the o#erall financial s%ste" &here it &as

necessar% to aress the nee for si"ilar refor"sL@

In 155:( the co""ittee sub"itte the re!ort an so"e of the +e% reco""enations inclueF

i) Structure

o#ern"ent sta+e in the insurance Co"!anies to be brou'ht o&n to 7


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Pri#ate Co"!anies &ith a "ini"u" !ai u! ca!ital of Rs$1 bn shoul be allo&e

to enter the inustr%$

No co"!an% shoul eal in both 3ife an eneral Insurance throu'h a sin'le

entit%

2orei'n co"!anies "a% be allo&e to enter the inustr% in collaboration &ith the

o"estic co"!anies$

Postal 3ife Insurance shoul be allo&e to o!erate in the rural "ar+et

Onl% one State 3e#el 3ife Insurance Co"!an% shoul be allo&e to o!erate in

each state$

!!!5 Re6(&$to#7 Bo+7

The Insurance Act shoul be chan'e

An Insurance Re'ulator% bo% shoul be set u!

Controller of Insurance -Currentl% a !art fro" the 2inance 4inistr%. shoul be

"ae ine!enent$

!85 I%8e'tme%t'

4anator% In#est"ents of 3IC 3ife 2un in 'o#ern"ent securities to be reuce

fro" 97M to 7< a%s

Insurance co"!anies "ust be encoura'e to set u! unit lin+e !ension !lans


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Co"!uteriBation of o!erations an u!atin' of technolo'% to be carrie out in the insurance

inustr%$ The co""ittee e"!hasiBe that in orer to i"!ro#e the custo"er ser#ices an increase

the co#era'e of the insurance inustr% shoul be o!ene u! to co"!etition$ /ut at the sa"e ti"e

the co""ittee felt the nee to e)ercise caution as an% failure on the !art of ne& !la%ers coul

ruin the !ublic confience in the inustr%

Te I%'(#$%)e Re6(&$to#7 $%+ De8e&o"me%t A(to#!t7

Refor"s in the Insurance sector &ere initiate &ith the !assa'e of the IRDA /ill in Parlia"ent in

Dece"ber 1555$ The IRDA since its incor!oration as a statutor% bo% in A!ril=6F &ith a

#ie& to !rotectin' the interest of the Insurance !ublic( the earlier le'islation &as consoliate

an a"ene b% the Insurance Act( 15>6 &ith co"!rehensi#e !ro#isions for effecti#e control

o#er the acti#ities of Insurers$

The Insurance A"en"ent Act of 157< abolishe Princi!al A'encies$ Ho&e#er( there &ere a


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lar'e nu"ber of insurance co"!anies an the le#el of co"!etition &as hi'h$ There &ere also

alle'ations of unfair trae !ractices$

The o#ern"ent of Inia( therefore( ecie to nationaliBe insurance business$

An Orinance &as issue on 15th Kanuar%( 157; nationaliBin' the 3ife Insurance sector

an 3ife Insurance Cor!oration ca"e into e)istence in the sa"e %ear$ The 3IC absorbe 17:

Inian( 1; non*Inian insurers as also 97!ro#ient societies*=:7 Inian an forei'n insurers in

all$ The 3IC ha "ono!ol% till the late 5


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Inia &as incor!orate as a co"!an% in 1591 an it co""ence business on Kanuar% 1 sst

159>$

This "illenniu" has seen insurance co"e a full circle in a0ourne%

e)tenin' to nearl% = the o

ern"ent set u! a co""ittee uner the chair"anshi! ofRN 4alhotra for"er o e"or of R/I( to

!ro!ose reco""enations for re for"s in the in uran e sector$ The ob0ecti e &as to co"!le"ent

the refor"s initiate in the financial sector$ The co""ittee sub"itte its re!ort in 155:

&herein( a"on' other thin's( it reco""ene that the!ri#ate sector be !er"itte to enter the

insurance inustr%$ The% state that forei'n co"!anies are allo&e to enter b% floatin' Inian

co"!anies(!referabl% a0oint #enture

2ollo&in' the reco""enations of the 4alhotra Co""ittee re!ort( in 1555( the Insurance

Re'ulator% an De#elo!"ent Authorit% -IRDA. &as Constitute as an autono"ous bo% to

re'ulate an e#elo! the insurance inustr%$ The lRDA &as incor!orate as a statutor%bo% in

A!ril( =


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Insurance Cor!oration of Inia an 1: life insurance co"!anies o!eratin' in the countr%$

HDFC STANDARD LIFE INSURANCE:

I*ID2C stanar 3ife Insurance is a0oint #enture bet&een HD2Can Stanar l$i

fe I nsurance of UJ$ HD2C is one of the leain' financial institutions of Inia &hereas

Stanar 3ife is one the olest Insurance co"!anies in the &orl$

ABOUT STANDARD LIE:

The Stanar 3ife Assurance Co"!an% CStanar 3ife. &as establishe in 16=7

an the first Stanar 3ife Assurance Co"!an% Act &as !asse b% Parlia"ent in 16>=$

Stanar 3ife &as reincor!orate as a "utual assurance co"!an% in 15=7$ The Stanar 3ife

'rou! ori'inall% o!erate onl% throu'h branches or a'encies of the "utual co"!an% in the

Unite Jin'o" an certain other countries$

Its Canaian branch &as foune in 16>> an its Irish o!erations in 16>6$ This lar'el%

re"aine the structure of the 'rou! until 155;( &hen it o!ene a branch in 2ran+furt( er"an%&ith the ai" of e)!ortin' its UJ life assurance an !ensions o!eratin' "oel to ca!italise on the

o!!ortunities !resente b% EC Directi#e 5=5;EEC -the Thir 3ife Directi#e. an offer a

!rouct ran'e in that "ar+et &ith features &hich local !ro#iers &ere unable to offer$

In the 155


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in#est"ent "ana'e"ent business !ro#iin' ser#ices to both the 'rou! an thir !art% retail an

institutional clients$ The 'rou! ac,uire Pri"e Health 3i"ite -subse,uentl% rena"e Stanar

3ife Healthcare. in the Unite Jin'o" in =


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co"!l% &ith re'ulator% restrictions on the !ro#ision of non*insurance ser#ices an to e)!loit

'rou!*&ie s%ner'ies$

KEY STRENGTHS:

Financial Expertise

As a 0oint #enture of leain' financial ser#ices 'rou!s( HD2C Stanar 3ife has the financiale)!ertise re,uire to "ana'e %our lon'*ter" in#est"ents safel% an efficientl%$

Range of Solutions

The% ha#e a ran'e of ini#iual an 'rou! solutions( &hich can be easil% custo"iBe to s!ecific

nees$ Our 'rou! solutions ha#e been esi'ne to offer %ou co"!lete fle)ibilit% co"bine &ith

a lo& char'in' structure$

Trac Record so far

The 'ross !re"iu" inco"e( for the %ear enin' 4arch >1 ( =


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o&nloaable for"s an !rouct etails so that %ou can "a+e an infor"e choice about bu%in' a

!olic%

DIFFERENT PRODUCTS OF THE COMPANY:

HD2C Stanar 3ife offers abou,uet of insurance solutions to "eet e#er%ones nee$ The% cater

to both( ini#iuals as &ell as to co"!anies loo+in' to !ro#ie benefits to their e"!lo%ees$ This

section 'i#es %ou etails of all our !roucts$ The% ha#e incor!orate #arious o&nloaable

for"s an !rouct etails so that %ou can "a+e an infor"e choice about bu%in' a !olic%$2or ini#iuals( it has a ran'e of !rotection( in#est"ent (!ension an sa#in's

!lans that assist an nurture rea"s a!art fro" !ro#iin' !rotection$ ou can choose fro" a

ran'e of !roucts to suit %our life*sta'e an nees$

2or or'anisations the% ha#e a host of custo"ise solutions that ran'e fro"

rou! Ter" Insurance( ratuit%( 3ea#e Encash"ent an Su!erannuation Proucts$ These

afforable !lans a!art fro" !ro#iin' lon' ter" #alue to the e"!lo%ees hel! in enhancin'

'oo&ill of the co"!an% $

At HD2C Stanar 3ife are co""itte to "aintainin' the hi'hest le#el of custo"er ser#ice

Interactin' &ith %ou #ia this &ebsite is an e)tension of this co""it"ent$

The% ha#e esi'ne the Custo"er Ser#ice section +ee!in' in "in all the infor"ation %ou "a%

&ant to see+ re'arin' !roceures such as !a%in' %our !re"iu"( #arious !olic% ser#icin'

o!tions( !rocessin' a clai" an so on$ We ha#e also !ro#ie rele#ant for"s that can be

o&nloae$ easil% for %our use$ ou can no& access %our !olic% etails online an "ana'e

%our insurance

!ortfolio an%ti"e an an%&here at the clic+ of "ouse$


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Individual !roducts"

At HD2C Stanar 3ife realise that not e#er%one has the sa"e +in of nees$ Jee!in'

this in "in( the% ha#e a #arie ran'e of Proucts that %ou can choose fro" to suit all

%our nees$ These &ill hel! secure %our future as &ell as the future of our fa"il%$

!rotection !lans"

We can !rotect %our fa"il% a'ainst the loss of our inco"e or the buren of a loan in the

e#ent of %our unfortunate e"ise( isabilit% or sic+ness$ These !lans offer #aluable!eace

of "in at a s"all!rice$

Their Protection ran'e inclues our Ter" Assurance PlanP 3oan Co#er Ter" Assurance

Plan


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Savings !lans"

Our Sa#in's Plans offer %ou fle)ible o!tions to buil sa#in's for %our future nees such as

bu%in' a rea" ho"e or fulfillin' %our chilrens i""eiate an future nees$

Our Sa#in's ran'e inclues Eno&"ent Assurance Plan( Unit 3in+e Eno&"ent( Unit 3in+e

Eno&"ent Plus( 4one% /ac+ Plan( Chilrens Plan( Unit 3in+e oun'star( Unit 3in+e

oun'ster Plus$

Investment !lans"

Our Sin'le Pre"iu" Whole of 3ife !lan is &ell suite to "eet %our lon' ter" in#est"ent nees

We !ro#ie %ou &ith attracti#e lon' ter" returns throu'h re'ular bonuses$

!ension !lans"

Our Pension Plans hel! %ou secure %our financial ine!enence e#en after retire"ent$

Our Pension ran'e inclues our Personal Pension Plan( Unit 3in+e Pension( Unit 3in+e

Pension Plus$

#roup !roducts"

$ne-stop s%op for employee-&enefit solutions

HD2C Stanar 3ife has the "ost co"!rehensi#e list of !roucts for !ro'ressi#e e"!lo%ers &ho

&ish to !ro#ie the best an "ost inno#ati#e e"!lo%ee benefit solutions to their e"!lo%ees$ We


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offer ifferent !roucts for ifferent nees of e"!lo%ers ran'in' fro" ter" insurance !lans for

!ure!rotection to #oluntar%!lans such as su!erannuation an lea#e encash"ent

The% no& offer the follo&in' 'rou! !roucts to our estee"e cor!orate clients

rou! Ter" Insurance

rou! Gariable Ter" Insurance $

rou! Unit*3in+e Plan

An in#est"ent solution that !ro#ies funin' #ehicle to "ana'e cor!uses &ith ratuit%

Define /enefit or Define Contribution Su!erannuation or 3ea#e Encash"ent sche"es of %our

co"!an%

An in#est"ent solution that !ro#ies funin' #ehicle to "ana'e cor!uses &ith ratuit%

Define /enefit or Define Contribution Su!erannuation or 3ea#e Encash"ent sche"es of

%our co"!an%$

'evelopment Insurance !lan

De#elo!"ent Insurance !lan is an insurance !lan &hich !ro#ies life co#er to "e"bers of a

De#elo!"ent A'enc% for a ter" of one %ear$ On the eath of an% "e"ber of the 'rou! insure

urin' the %ear of co#er( a lu"! su" is !ai to that "e"bers beneficiaries to hel! "eet so"e of

the i""eiate financial nees follo&in' their loss$

Eligi&ility

4e"bers of the e#elo!"ent a'enc% an their s!ouses &ith

- 4ini"u" a'e at the start of the !olic% 16 %ears last birtha%$

- 4a)i"u" a'e at the start of !olic% 7< %ears last birtha%$

E"!lo%ees of the De#elo!"ent A'enc% are not eli'ible to 0oin the 'rou! $

The 'rou! to be co#ere is onl% eli'ible if !t contains "ore than 7


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(enefits"

On the eath of each "e"ber co#ere b% the !olic% urin' the %ear of co#er a lu"! su" e,ual to

the su" assure &ill be !ai to their beneficiaries or le'al heirs$ Where the eath is as a result ofan accient( an aitional lu"! SUIll &illbe!ai e,ual to half the su" assure$

There are no benefits !ai at the en of the %ear of co#er an there is no surrener #alue

a#ailable at an% ti"e$

T* (E+EFITS"

INCO4E TAQ

SECTION

ROSS

ANNUA3

SA3AR

HOW 4UCH TAQ

CAN OU SAGE?

HD2C STANDARD 3I2E

P3ANS

Sec$6


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co"!letel% ta)*free( sub0ect to the conitions lai o&n

therein$

A!!licable to !re"iu"s !ai for Critical Illness /enefit( Accelerate Su" Assure an Wai#er

of Pre"iu" /enefit$

These calculations are illustrati#e an base on our unerstanin' of current ta) le'islations

&hich are sub0ect to chan'e$Please contact %our ta) consultant for e)act calculation of %our ta) liabilities$

$ur ,or Culture"

HD2C S3IC is +no&n for its sti"ulatin' en#iron"ent &ith hi'h le#els of "ou#auon

e"!o&er"ent an reco'nition$ We encoura'e an o!en an infor"al culture that #alues

inte'rit%( co""it"ent( tea"&or+ an e)cellence In custo"er ser#ice$ We ao!t a !olic% ofstron' learnin' an e#elo!"ent initiati#es( &hich !ro"otes a%*to*a% learnin' as &ell as

ecision*"a+in'$ We belie#e our stren'th is our !eo!le( so &e enea#or to sur!ass their

e)!ectations an 'i#e the" the best !ossible &or+ en#iron"ent anbenefits that rriatch the best

in the inustr%$ oun' !rofessionals o!tin' to "a+e a career &i th HD2C S3 can "a+e use of

the 4ana'e"ent Trainee !ro'ra" to 'ro& &ith us$ Professional e#elo!"ent an inter!ersonal

relationshi!s are accore a hi'h !riorit% &hile creatin' a "ore con'enial an !eo!le oriente

"ilieu across the or'aniBation( &hich sho&s In our contribution "ana'e"ent s%ste"$


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Com"e%'$t!o% Be%ef!t':

Well*bein' of our e"!lo%ees is our ut"ost ob0ecti#e$ The co"!ensation an benefits offere are

best in the inustr% an are ai"e at not onl% attractin' but also retainin' the best talent

Re&ars for each !osition are base on!erfor"ance(!otential( an "ar+et #alue$ We offer other

benefits as &ell( such as !ro#ient fun( 'ratuit% an a hos!italisation insurance co#era'e

!ro'ra" that co#ers not onl% the e"!lo%ee but hisher fa"il% as &ell$ The e"!lo%ees( &ho

co"!lete t&o %ears of ser#ice( can a#ail of housin' an eucation loans facilit% at iscounterate$ We encoura'e our e"!lo%ees to 'o for further eucation$ 2or our e"!lo%ees con#enience

all co""on !rocesses li+e co"!ensation etails( rei"burse"ent( lea#e a!!lications( tra#e

!lannin'( u!atin' !ersonal infor"ation( etc $$ are auto"ate throu'h the e)tensi#e use of

technolo'%$

GROWTH AND DEVELOPMENT:

The 'ains are ob#ious for an%one &ho hasbeen closel% "onitorin' the Inian insurance scene

The total !re"iu" collecte b% the insurers both life an non*life inF the %ear =


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The "ar+et share of the !ri#ate !la%ers has to be seen in the conte)t of this enlar'e "ar+et

There is also e#ience to sho& that the rate of 'ro&th of !ublic sector unerta+in's ha not

sho&n an% ecline after the entr% of the !ri#ate sector co"!anies$ All of the" are ob#iousl%

ha#in' a share of a lar'er "ar+et$ The Creit for enlar'in' the "ar+et shoul ho&e#er( 'o to the

!ri#ate sector as the% ca"e u! &ith an a''ressi#e "ar+etin' strate'% to establish their !resence

The Public Sector has( in its turn( rera&n its !riorities( re#a"!e their "ar+etin' strate'%( anto'ether the !ublic an

!ri#ate sectors ha#e enlar'e the "ar+et$ The e#ience of the enlar'e"ent of the "ar+et can be

seen in #arious other!ara"eters as &ell$

Inian insurance business( &hich re"aine uner e#elo!e &ith lo& le#els of

insurance !enetration an insurance ensit% has sho&n si'ns of

i"!ro#e"ent$ The insurance !enetration i$e$ !re"ia as !ercenta'e of DP has increase

fro" =$>=M in =


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As !er Assocharn( Inias !re"ier a!e) cha"ber of inustries( the countr%s o"estic

insurance "ar+et &oul touch US8 ;< /illion b% the %ear =


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also esti"ate an increase in the countr%s insurance "ar+et in future$ As !er the re!ort( the

Inian life insurance "ar+et is e)!ecte to reach the #alue of aroun Rs 1;6> /illion in the %ear

=


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Since o!enin' u! of the insurance sector in 1555( forei'n in#est"ents of Rs$ 6$9 billion ha#e

!oure into the Inian "ar+et an =1 !ri#ate co"!anies ha#e been 'rante licenses$

Inno#ati#e !roucts( s"art "ar+etin'( an a''ressi#e istribution ha#e enable fle'lin'

!ri#ate insurance co"!anies to si'n u! Inian custo"ers faster than an%one e)!ecte$ Inians

&ho ha al&a%s seen life insurance as a ta) sa#in' e#ice( are no& suenl% turnin' to the

!ri#ate sector an sna!!in' u! the ne& inno#ati#e !roucts on offer$

The life insurance inustr% in Inia 're& b% an i"!ressi#e >;M( &ith!re"iu" inco"e

fro" ne&business at Rs$ a7>$:> billion urin' the fiscal %ear =


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"ar+et( an co#ers fire( "arine( an other non*life insurance$ The ata is su!!lie in both

'ra!hical an tabular for"at for ease of inter!retation an anal%sis$ This re!ort also !ro#ies

co"!an%!rofiles of the "a0or !ri#ate insurance co"!anies$

REPORT HIGHLIGHTS

ains of 3iberaliBation in Inian Insurance Sector

Inian Insurance 4ar+et Se'"entation /% Proucts

SiBe of the 4ar+et an 4ar+et Share Of 3ife Insurers( In INR -crore.

4ar+et Share of Non* life insurers

2orecast of 3ife Insurance ro&th U! to =


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GROWTH IN HDFC SLIC:

I*ID2C Stanar 3ife is one of the leain' life insurance co"!anies ha#in' a trac+ recor of

eclarin'bonuses e#er% %ear since ince!tion$ We attribute this success to our !eo!le( &ho are

our "ost i"!ortant asset$ We belie#e the% are$a +e% facet of the co"!an% an it is their

contribution that has enable us to achie#e our current status$ Since the% eser#e the best ( our

efforts ha#e been t? !ro#ie the" &ith thebest en#iron"ent(best culture an best e#elo!"ent

o!!ortunities!ossible

The 'ross !re"iu" inco"e( for the %ear enin' 4arch >1( =


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CHAPTER *

CO4PAN PRO2I3E


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HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

INTRODUCTION

HD2C Incor!orate in 1599 &ith a share ca!ital of Rs 1< Crores( HD2C has since e"er'e as

the lar'est resiential "ort'a'e finance institution in the countr%$ The cor!oration has ha a

series of share issues raisin' its ca!ital to Rs$ 115 Crores$ The 'ross !re"iu" inco"e for the

%ear enin' 4arch >1( =


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HD2C Chubb eneral Insurance Co"!an% HD2C hols 9:M$

SNAPSHOT0II

3oan A!!ro#als Rs$ 6


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/o"ba% an a 4asters De'ree in /usiness A"inistration fro" The A"erican Uni#ersit%(

Washin'ton DC$

GROUP COMPANIES

HD2C /an+F Worl Class Inian /an+* a"on' the to! !ri#ate ban+s in Inia$

HD2C A4CF One of the to! > A4Cs in Inia* Preferre in#est"ent "ana'er$

Intelenet lobalF /PO ser#ices for international custo"ers$

CI/I3F Creit Infor"ation /ureau Inia 3i"ite$

HD2C ChubbF U!co"in' Pri#ate co"!anies in the fiel of eneral Insurance$

HD2C 4utual 2un

HD2C realit%$co"F Hel!s to search !ro!erties in all "a0or cities in Inia

HD2C securities

STANDARD LIFE

Stanar 3ife is Euro!es lar'est "utual life assurance co"!an%$ Stanar 3ife( &hich has been

in the life insurance business for the !ast 197 %ears is a "oern co"!an% sur#i#in' ,uite a fe&

chan'es since sellin' its first !olic% in 16=7$ The co"!an% e)!ane in the 15 thcentur% fro" +its


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ori'inal Einbur'h !re"ises( o!enin' offices in other to&ns an ac,uittin' other si"ilar

businesses$

Stanar 3ife Currentl% has assets e)ceein' o#er 9< billion uner its "ana'e"ent an has the

istinction of bein' accore AAA@ ratin' conse,uentl% for the si) %ears b% Stanar an Poor$

SNAPSHOT

2oune in 1697( co"!an% su!!ortin' 'eneration for last 195 %ears$

Currentl% o#er 7 "illion Polic% holers benefitin' fro" the ser#ices offere$

Euro!es lar'est "utual life insurer$

JOINT VENTURE

HD2C Stanar 3ife Insurance Co"!an% 3i"ite &as one of the first co"!anies to be 'rante

license b% the IRDA to o!erate in life insurance sector$ Reach of the KG !la%er is hi'hl% rate

an been conferre &ith "an% a&ars$ HD2C is rate AAA b% both CRISI3 an ICRA$

Si"ilarl%( Stanar 3ife is rate AAA both b% 4oo%s an Stanar an Poors$ These reflect

the efficienc% &ith &hich HD2C an Stanar 3ife "ana'e their asset base of Rs$ 17(


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housin' finance institution an the Stanar 3ife Assurance Co"!an%( a leain' !ro#ier of

financial ser#ices fro" the Unite Jin'o"$ /oth the !ro"oters are &ill +no&n for their ethical

ealin's an financial stren'th an are thus co""itte to bein' a lon'*ter" !la%er in the life

insurance inustr%* all i"!ortant factors to consier &hen choosin' %our insurer$

BUSINESSGROWTH

T#$)< Re)o#+ 'o f$#

The 'ross !re"iu" inco"e of HD2C( for the %ear enin' 4arch >1( =


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Mo't #e'"e)te+ P#!8$te I%'(#$%)e Com"$%7

HD2C S3IC &as a&are No*1 Pri#ate Insurance Co"!an% in =


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unitiBe !roucts that offer uni,ue custo"er benefits li+e fle)ibilit% to choose co#er le#els(

ine)ation an !artial &ithra&als$ -SourceF &&&$hfcslic$co".

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

I%+!8!+($& P#o+()t'

!rotection !lans

A !erson can !rotect his fa"il% a'ainst the loss of his inco"e or the buren of a loan in the

e#ent of his unfortunate e"ise( isabilit% or sic+ness$ These !lans offer #aluable !eace of

"in at a s"all !rice$ Protection ran'e inclues our Te#m A''(#$%)e P&$% Lo$% Co8e#

Te#m A''(#$%)e P&$%$

Investment !lans

HD2C S3ICsS!%6&e P#em!(m Wo&e of L!fe "&$%is &ell suite to "eet lon' ter"

in#est"ent nees$ This !ro#ies attracti#e lon' ter" returns throu'h re'ular bonuses$

!ension !lans

Pension Plans hel! to secure financial ine!enence e#en after retire"ent$ Pension ran'e

incluesPe#'o%$& Pe%'!o% P&$%( U%!t L!%


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L!%


46/88

So)!$& P#o+()t

De8e&o"me%t I%'(#$%)e P&$%

De#elo!"ent Insurance !lan is an insurance !lan &hich !ro#ies life co#er to "e"bers of a

De#elo!"ent A'enc% for a ter" of one %ear$ On the eath of an% "e"ber of the 'rou! insure

urin' the %ear of co#er( a lu"! su" is !ai to those "e"ber beneficiaries to hel! "eet so"e of

the i""eiate financial nees follo&in' their loss$

E&!6!*!&!t7

4e"bers of the e#elo!"ent a'enc% an their s!ouses &ithF

* 4ini"u" a'e at the start of the !olic% 16 %ears last birtha%

* 4a)i"u" a'e at the start of !olic% 7< %ears last birtha%

E"!lo%ees of the De#elo!"ent A'enc% are not eli'ible to 0oin the 'rou!$ The 'rou! to be

co#ere is onl% eli'ible if it contains "ore than 7


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Be%ef!t'

On the eath of each "e"ber co#ere b% the !olic% urin' the %ear of co#er a lu"! su" e,ual

to the su" assure &ill be !ai to their beneficiaries or le'al heirs$ Where the eath is as a

result of an accient( an aitional lu"! su" &ill be !ai e,ual to half the su" assure$ There

are no benefits !ai at the en of the %ear of co#er an there is no surrener #alue a#ailable at

an% ti"e$

Te #o&e of te De8e&o"me%t A6e%)7

Due to the nature of the 'rou!s co#ere( HD2C Stanar 3ife &ill be !assin' certain

a"inistrati#e tas+s onto the De#elo!"ent A'enc%$ /% !assin' on these tas+s the !re"iu"

char'e can be lo&er$ These tas+s &oul inclueF

Sub"ission of "e"ber ata in a s!ecifie co"!uter for"at

Collection of !re"iu"s fro" 'rou! "e"bers

Recorin' chan'es in the etails of 'rou! "e"bers

Disburse"ent of clai" !a%"ents an the "ortalit% rebate -if an%. to 'rou! "e"bers

These tas+s &oul be in aition to the usual uties of a !olic%holer such asF

Pa%"ent of !re"iu"s

Re!ortin' of clai"s

Jee!in' !olic% holer infor"ation u! to ate

Trainin' an su!!ort &ill be a#ailable to 'i#e 'uiance on ho& to co"!lete the tas+s

a!!ro!riatel%$ Since these aitional tas+s &ill i"!ose a buren on the De#elo!"ent A'enc%(

the De#elo!"ent A'enc% "a% char'e a Rs$ 1< a"inistration fee to their "e"bers$

P#o!*!t!o% of #e*$te'

Section :1 of the Insurance Act( 15>6 states


48/88

No !erson shall allo& or offer to allo&( either irectl% or inirectl%( as an inuce"ent to an%

!erson to ta+e out or rene& or continue an insurance in res!ect of an% +in of ris+ relatin'

to li#es or !ro!ert% in Inia( an% rebate of the &hole or !art of the co""ission !a%able oran% rebate of the !re"iu" sho&n on the !olic%( nor shall an% !erson ta+in' out or rene&in'

or continuin' a !olic% acce!t an% rebate( e)ce!t such rebate as "a% be allo&e in

accorance &ith the !ublishe !ros!ectus or tables of the insurer

If an% !erson fails to co"!l% &ith sub re'ulation -!re#ious !oint. abo#e( he shall be liable

to !a%"ent of a fine &hich "a% e)ten to ru!ees fi#e hunre

INTROUCTION TO UNIT LINKED FUNDS

Unit lin+e !lans are base on the co"!onent of the !re"iu" or the contribution of the

custo"er to&ars the !lan$ This contribution can be in ifferent "oes li+e %earl%( half

%earl%( ,uarterl% an "onthl%$ Unit lin+e !lans ha#e "ulti!le benefits li+e life !rotection(

rier !rotection( sa#in's( trans!arenc%( in#est"ent choices( li,uiit% an !lannin' for ta)es$

These !lans &or+ li+e "utual funs$ The !re"iu" is collecte fro" the !olic% holer$ He is

allotte a certain nu"ber of units base of his contribution$ The Net Asset Galue is the

#alue of each unit of the fun$ It is foun b% subtractin' the char'es an current liabilities

fro" the current assets an in#est"ents an i#iin' this nu"ber b% the total nu"ber of

outstanin' units$ 3et us ta+e an e)a"!le$ There are 1


49/88

P$#$mete#' RBI Bo%+' F!>e+ De"o'!t' M(t($& F(%+' U%!t &!% *e%ef!t' T$> f#ee T$>e+ T$>e+ T$> f#ee

We fin that life insurance unit lin+e !lans is a 'oo area to in#est "one% in as it !ro#ies

li,uiit%( safet%( hi'h returns( life co#er an ta) benefits in a sin'le !lan$ HD2C S3IC

offers the o!tion of ine)ation to beat inflation$ Ris+ is reuce to a lar'e e)tent as the

co"!an% in#ests in a i#ersifie !ortfolio of stoc+s$

T$> Be%ef!t'

INCOME TA GROSS ANNUAL HOW MUCH

TA CAN YOU

HDFC STANDARD


50/88

SECTION SALARY SAVE LIFE PLANS

Sec$ 6


51/88


52/88

Public relations tea" !ublic relations e!art"ent

Technical su!!ort tea"$

ORGANISATION SET0UP:

Or'aniBational set*u! of a life Insurance co"!an%!la%s an i"!ortant !art in its o#erall

efficient &or+in' $

The #arious e!art"ents of an or'aniBation nee to co""unicate interact an &or+ in

cohesion to achie#e the or'aniBations ob0ecti#e $

Po&er an res!onsibilities of each e!art"ent &or+ in s"ooth "anner leain' to an

o#erall i"!ro#e !erfor"ance$

The e!art"ents can be car#e out on the basis of functionalit% or acti#ities of the

co"!an%$ Re#enue*'eneratin' acti#ities shoul be 'i#en "ore i"!ortance than non*

re#enue 'eneratin' acti#ities$ Ho&e#er( this "a% not be al&a%s true$ 2or instance( fun

"ana'e"ent is not a re#enue 'eneratin' acti#it%F si"ilarl% custo"er ser#ice an

technolo'% i"!le"entation are not in the"sel#es re#enue 'eneratin' acti#itiesF but

these are #er% crucial for the co"!an% to succee in the "ar+et$

In an Insurance co"!an%( the #arious offices( e!art"ents an $ sections are create

+ee!in' in #ie& the co"!an%s i"!ortant functions an acti#ities $

These acti#ities can be or'aniBe in ifferent &a%s$ 2or e)a"!leF the acti#ities "a% be

centraliBe at one !lace or "a%be ecentraliBe at ifferent!laces$


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CHAPTER0

THEORITICAL ASPECTOF

THE STUDY

CONCEPT:

On the one han( hu"an life is sub0ect to #arious ris+s*ris+ of eath or isabilit% ue to natural


54/88

or acciental causes$ Hu"ans are also !rone to iseases( the treat"ent of &hich "a% in#ol#e

hu'e e)!eniture$ On the other han( !ro!ert% o&ne b% "an is e)!ose to #arious haBars

natural an "an*"ae$

When hu"an life is lost or a !erson is isable !er"anentl% or te"!oraril%( there is a loss of

inco"e to the househol$ The fa"il% is !ut to harshi!$ So"eti"es sur#i#al itself is at sta+e for

the e!enants$

When it co"es to !ro!ert%( loss or a"a'e to !ro!ert% results in either &hole or !artial loss in

inco"e to the !erson or entit%$

Ris+ has the ele"ent of un!reictabilit%$ Deathisabilit% or lossa"a'e coul occur at

an%ti"e$ 3osses can be "iti'ate throu'h insurance$

Insurance is a co""oit% &hich offers !rotection a'ainst #arious contin'encies$

Insurance !roucts a#ailable for life an non*life are "an%$ In non*life( a!art for" !ersonalco#ers such as accient co#ers an health insurance( there are !roucts co#erin' liabilities uner

a !articular la& an or co""on la&$ The #arious !roucts are esi'ne to cater to ifferent

nees of an ini#iual or inustr% such as fire insurance !olic% on "ulti*store%e builin'

householers!olic%$

An insurance contract !ro"ises to "a+e 'oo to the insure a certain su" in consieration for a

!a%"ent in the for" of!re"iu" fro" the insure$

Hu"an life cannot be #alue$ Hence the su" assure - or the a"ount 'uarantee tobe !ai in

the e#ent of a loss. is b% &a% of a benefit in the Case of life insurance$ 3ife insurance!roucts

!ro#ie a efinite a"ount of "one% to the e!enants of the insure in case the life insure ies


55/88

urin' his$ acti#e inco"e earnin'!erio$ or beco"es isable on account of$ an accient causin'

reuctionco"!lete loss in his inco"e earnin's$

An ini#iual can also!rotect his ol a'e &hen he ceases to earn an has no other

"eans of inco"eb%!urchasin' an annuit% !rouct$

A Personal Accient co#er is also for !rotection$ In the e#ent of eath or isabilit%(

!er"anent or te"!orar%( of the insure( it !ro#ies for co"!ensation &hich is either the &hole

or a !ercenta'e of the Ca!ital Su" Insure e!enin' on the +in of loss$ insurance( losses can

"ar a !ro0ect or an inustr%$ eneral Insurance offers stabilit% to the econo"% an to the societ%$

Insurance offers securit% an so !eace of "in to the ini#iual$ The conce!t of*

insurance is$ that the losses of a fe& are"ae 'oo b% contribution fro" "an%$ It isbase on the

la& of lar'e nu"bers$ It ste""e fro" the nee of "an to fin a solution for "iti'ation of

losses$ It also reflects the nature of "an to fin a solution collecti#el%$

It is i"!ortant for all to unerstan the #arious !roucts that life an 'eneral insurance

co"!anies offer before the% "a+e a choice as to the !rouct the% &ant tobu%$

As !er re'ulations( insurers ha#e to 'i#e the #arious features of the !roucts at the

!oint of sale$ The insure shoul also 'o throu'h the #arious ter"s an cunitions of the

!roucts an unerstan &hat the% ha#e bou'ht an "et their insurance nees$ The% ou'ht to

unerstan the clai" !roceures so that the% +no& &hat to o in the e#ent of a loss$

FINANCIAL CONSULTANTF

As !er !ro#isions of Section 16: of the Inian Contract Act( bet&een the !rinci!al an the thir

!erson an% !erson can beco"e an a'ent$ If a "inor is e"!lo%e as an a'ent( the !rinci!a l &oul

be boun b% his acts$ /ut his "inor hi"self &ill not be liable to his !rinci!al$


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An Insurance a'ent can be F*

o An% ini#iual or

o An% co"!an% or a fir"or ban+ or co*o!erati#e societ% as

Cor!orate A'ent$

WHY AGENTS ARE NECESSARY

X Intan'ible nature of !roucts

XNee to e)!lain benefits

X /enefit in future*#a'ue

X Hu"an habit of!ost!one"ent

X A'ent as thebasic uner&riter is a useful entit% for the insurer$ He is he hu"an face of the

insurer in the "ar+et$

AGENTS REGULATION:

IRDA -3icensin' ofInsurance A'ents. Re'ulations =


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The #aliit% for the license is for > %ears fro" the ate of issue$ It can be rene&e &ith a fee of

Rs$l


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Inias life Insurance inustr% into a #ibrant( trust&orth% an !rofitable ser#ice( hel!in' the

!eo!le of Inia on their0ourne% to !ros!erit%$

It' m!''!o%:

X To function as an acti#e foru" to ai( a#ise an assist insurers in "aintainin' hi'h

stanars$ of conuct an ser#ice to !olic%holers$

X A#ise the su!er#isor% authorit% in the "atter of controllin' e)!enses$

X Interact &ith the o#ern"ent an other boies on !olic% "atters

X Acti#el% !artici!ate in s!reain' insurance a&areness in Inia$

X Ta+e ste!s to e#elo! eucation an research insurance$

X Hel! brin' to Inia the benefit of the best !ractices in the &orl$ Thou'hit

has co"e a lon' &a% itstill has a lon' &a% to 'o$

COMPETITIVE ANALYSIS

LIFE INSURANCE CORPORATION OF INDIA (LIC)


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LIC has an excellent money back policy which provides for periodic payments of

partial survival benefits as long as the policy holder is alive. 20 of the sum

assured is payable after !" #0" #! and 20 years and the balance $0 is payable at

the 20thyear along with accrued bonus. %www.lic.com&

'or a 2! years term " #! of the sum assured becomes payable after !"#0"#! and

20 years and the balance $0 plus the accrued bonus becomes payable at the 2! th

year. (n important feature of these types of policies is that in the event of the death

of the policy holder at any time within the policy term the death claim comprises of

full sum assured without deducting any of the survival benefit amounts which have

already been paid. )he bonus is also calculated on the full sum assured.

*+'C ,LIC does not have a money back policy. It could offer a money back plan and

capture some portion of this market. -hile marketing insurance products I found

that many customers wanted to purchase these plans.

LIC offers different plans/ plans are formulated for specific occasions whole life

plans" term assurance plans" money back plan for women" child plans" plans for the

handicapped individuals" endowment assurance plans" plans for high worth

individuals" pension plans" unit linked plans" special plans" social security schemes

diversified portfolio of products. *+'C ,LIC could diversify its product portfolio. It

could add more plans for high worth individuals and women.

ICICI PRUDENTIAL


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ICICI 1rudential is a stiff competitor for *+'C ,LIC. )he company is a merger

between ICICI ank which is the biggest private bank in India and 1rudential 1lc

which is a global life insurance company.

)he company has an investment plan which is market related Invest ,hield Life. In

this plan even if the market falls" the premium will be returned to investors. It is a

guaranteed plan which ensures the company carefully invests your money. )he

stock market performance of ICICI 1rudential is much better than *+'C ,LIC. )he

returns on the growth fund were $.23 compared to the $2.40 offered by *+'C

,LIC. Customers are attracted by higher returns and this is a plus point for

1rudential.

)he company is very well advertised. )he advertisements are showcased in movies

television" newspapers" maga5ines" bill boards" radio etc. )he company has an

excellent brand ambassador 6r. (mitabh acchan. *is promotion of the company

builds trust and faith in the minds of our people.

*owever the charges are very high in the plans offered by ICICI 1rudential. It is 7!

during the first year" #! in the next year and 7 from the third year onwards. (lso

a higher minimum premium of 8s. 3000 is charged. *ence the policies are not

accessible to the lower strata of the society. %,ource9 www.iciciprulife.com&

BIRLA SUN LIFE

irla ,un Life Insurance Company Limited is a :oint venture between )he (ditya

irla ;roup" one of the largest business houses in India and ,un Life 'inancial Inc." aleading international financial services organi5ation. )he local knowledge of the

(ditya irla ;roup combined with the expertise of ,un Life 'inancial Inc." offers a

formidable protection for your future. %,ource9 www.birlasunlife.com&


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)he (ditya irla ;roup has a turnover close to 8s. 77000 crores with a market

capitali5ation of 8s. !7$00 crores %as on 7#st 6arch 2004&. It has over 42000

employees across all its units worldwide. It is led by its Chairman < 6r. =umar

6angalam irla. ,ome of the key organi5ations within the group are *indalco and

;rasim.

,un Life 'inancial Inc. and its partners today have operations in key markets

worldwide" including Canada" the >nited ,tates" the >nited =ingdom" *ong =ong

the 1hilippines" ?apan" Indonesia" India" China and ermuda. It had assets under

management of over >,@7$7 billion" as on 7#st 6arch 2004. )he company is a

leading player in the life insurance market in Canada.

eing a customer centric company" ,LI has invested heavily in technology to build

world class processing capabilities. ,LI has covered more than a million lives since

inception and its customer base is spread across more than #000 towns and cities

in India. (ll this has assisted the company in cementing its place amongst the

leaders in the industry in terms of new business premium income. )he company has

a capital base of !20 crores as on 7#st?uly" 2004.

Its 'lexi Life Line 1lan offers life long insurance cover till the policy holder is #00

years of age. )here are guaranteed returns of 7 p.a. net of policy charges after

every ! years from the eleventh policy year onwards. *owever the charges are very

high. )he initial charges for the first year are !. *ence the fund value is greatly

reduced.

BAJAJ ALLIANZ

a:a: (llian5 is a :oint venture between (llian5 (; with over ##0 years of experience

in over 40 countries and a:a: (uto" a trusted automobile manufacturer for over !!

years in the Indian market. )ogether they are committed to offering you financia

solutions that provide all the security you need for your family and yourself. a:a:

(llian5 is the number one private life insurer for the year 200! 200. It is leading


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by 43 crores. It has experienced a whopping growth of 2# in the last financia

year.

)he company has sold #7" 00"000 policies and is backed by !!0 offices across India

It offers travel insurance" motor insurance" home insurance" health and corporate

insurance. )he mortality charges are lower than *+'C ,LIC. )he entry age could be

5ero years which allow even new born babies to be insured. %,ource

www.ba:a:allian5.com&

TATA AIG

)ata (ig is a :oint venture between the )ata group and (merican Internationa

;roup Inc. In one of the plans the company offers hospital cash benefit wherein it

will pay 8s. 2!00 per day in case of hospitali5ation and 8s.#2.! lakhs in case the

person suffers from any critical illness. (nnual premium is much less %about 8s.

4#2& to avail such a good benefit. Charges are relatively low compared to *+'C

,LIC for some policies.

)he company offers high coverage plans at low cost. )here is a plan even for a

policy term of # year. Aour family can continue to en:oy their current lifestyle even

in the case of something happening to you. )hese plans are very flexible and *+'C

,LIC could adopt this idea of insuring individuals for short periods of time. 'or

example/ there is a family of four. )he only earning member is the father.

*e has :ust taken a loan from a bank of 20 lakhs to purchase a new home. *e is

able to repay the loan with his current salary in #! years. )he problem arises if

something were to happen to him within these fifteen years. Bot only will the family

face the emotional and financial loss of their father but they will also have to repay

the home loan or risk being homeless. %,ource9 www.tataaig.com&


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SUMMARY:

l*ID2C Stanar 3ife Insurance Co"!an% 3i"ite( one of the first !ri#ate life insurance

co"!anies in Inia( &as for"e in =


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ANALYSIS & INTERPRETATION

AE ROUP O2 SURGEED RESPONDENTS

TABLE ,:

Age group No. of Respondents

18 - 25 years 127

26 - 35 years 67

36 - 49 years 46

50 - 60 years 24

More than 60 years 6

A%$&7'!':

2ro" the chart abo#e &e fin that :9M of the res!onents fall in the a'e 'rou! of 16 =7 %ears(

=7M fall in the a'e 'rou! of =; >7 %ears an 19M fall in the a'e 'rou! of >; :5 %ears$

Therefore "ost of the res!onents are relati#el% %oun' -belo& =; %ears of a'e.$ Theseini#iuals coul be inuce to !urchase insurance !lans on the basis of its ta) sa#in' nature an

as an in#est"ent o!!ortunit% &ith hi'h returns$

Therefore "ost of the res!onents are relati#el% %oun' -belo& =; %ears of a'e.$ These

ini#iuals coul be inuce to !urchase insurance !lans on the basis of its ta) sa#in' nature an

as an in#est"ent o!!ortunit% &ith hi'h returns$

Ini#iuals at this a'e are tr%in' to bu% a house or a car$ Insurance coul hel! the" &ith this an

this fact has to be con#e%e to the consu"er$ As of no& "an% consu"ers ha#e a false !erce!tion

that insurance is onl% "eant for !eo!le abo#e the a'e of 7


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%our fa"il%( s!ouse an chilren -in case the ini#iual is "arrie. &ho are financiall%

e!enent on %ou$

G#$"!)$& #e"#e'e%t$t!o%


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GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE 2:

Particulars No. of Respondents

Mae 193

!e"ae 77

CHART 2:

I%te#"#et$t!o%

The abo#e table sho&s the sur#e% &as conucte on insurance custo"ers in that "ost of

res!onents are "ales an 99 res!onents are fe"ale custo"ers $the "ost of the "ale are feelin'

res!onsibilit% to o the insurance for his future !ur!ose$

An also the% thin+ that it &ill "ore hel! full at their ol a'e $


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CUSTOMER PROFILE OF SURVEYED RESPONDENTS

TABLE 3:

#usto"er prof$e No. of respondents

%tudent 62

&ouse'$fe 5

(or)$ng *rofess$ona 116

+us$ness 49

%ef ,"poyed 24

oern"ent ser$/e e"poyee 14

CHART 3:

An!"#$#:

'rom the chart above it can clearly be seen that $7 of the respondents are

working professionals" 27 are students and #3 are into business. )herefore the

target market would be working individuals in the age group of #3 2! years having


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surplus income" interested in good returns on their investment and saving income

tax.

NO% OF RESPONDENTS HO HAVE LIFE INSURANCE POLICY IN THEIR NAME

TABLE ':

P#*n +,* ,- !$. $n#/n0 1*!$0"

Aes 103

Bo 167

CHART ':

ANALYSIS :

This 'ra!h sho&s that out of total =9< res!onents onl% 1 or >6M res!onents ha#e life

insurance !olic% in their na"e$ Rest all ont ha#e a sin'le !olic% in their na"e$ So there is a

#er% bi' sco!e for life insurance co"!anies to co#er these !eo!le$ So in future business of life

insurace &ill 'ro further$


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MARET SHARE OF LIFE INSURANCE COMPANIES

TABLE :

!, N%R,R NM+,R ! *#,%

&!# %ANAR !, 4

+RA %N !, 3

AA !, N%RAN#, 6

+AA AAN 7

# 55

AA A 6

## *R,NA 12

N %A 6

+&AR A:A 2

&,R% 2

CHART :

A%$&7'!':

In Inia( the lar'est life insurance co"!an% is 3ife Insurance Cor!oration of Inia$ It has been in

e)istence in Inia since 157; an is co"!letel% o&ne b% the o#ern"ent of Inia$ Toa% the


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or'aniBation has 'ro&n to =


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Onl% 15M of the res!onents !a% "ore than Rs$ =7


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insure hi"self for a relati#el% lo& !re"iu"$ 2or the returns sensiti#e in#estor ter" !lans o not

fin fa#or as the% o not offer a return in case the ini#iual oes not ie urin' the !olic% ter"$

AARENESS OF UNIT LINED INSURANCE PLANS

TABLE 6:

A'areness of n$t $n)ed *ans No. of Respondents

es 154

No 116

CHART 6: AARENESS OF UNIT LINED INSURANCE PLANS

An!"#$#:

2ro" the chart 'i#en abo#e &e fin that 79M of the res!onents are a&are of unit lin+e life

insurance !lans an :>M are not a&are of such !lans$ These !lans shoul be !ro"ote throu'h

a#ertisin'$ The co"!an% can a#ertise throu'h tele#ision( raio( ne&s!a!ers( bill boars an

!a"!hlets$ This &oul increase a&areness an arouse curiosit% in the "ins of the consu"er

&hich &oul enable the co"!an% to "ar+et its !roucts "ore effecti#el%$


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CONSUMER ILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

TABLE 7:

($$ngness to spend on pre"$u" No. of respondents *er/entage

ess than Rs. 6>000 41 15?

Rs. 6>001 - Rs. 10>000 73 27?

Rs. 10>001 - Rs. 25>000 110 41?

Rs. 25>001 - Rs. 50>000 41 15?

Rs. 50>001 - Rs. 1>00>000 5 2?

CHART 7: CONSUMER ILLINGNESS TO SPEND ON LIFE INSURANCEPREMIUM

An!"#$#:

'rom the graph above" we can clearly see that $# of the respondents would be

willing to spend between 8s. #000# 8s. 2!000 for life insurance. 24 would be

willing to spend between 8s. 00# 8s. #0000 per annum. Dnly #! would be

willing to spend more than 8s. 2!000 per annum as life insurance premium


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CHART SHOING IDEAL POLICY TERM

TABLE 89:

dea po$/y ter" No. of respondents3 - 5 years 51

6 - 9 years 41

10 - 15 years 95

16 - 20 years 38

21 - 25 years 24

26 - 30 years 5

More than 30 years 3

(hoe $fe *o$/y 13

CHART 89: CHART SHOING IDEAL POLICY TERM

A%$&7'!':

2ro" the chart 'i#en abo#e it can be seen that >7M of the res!onents !refer a !olic% ter" of 1>M of the res!onents !urchase life insurance to secure

their fa"ilies( >>M ta+e life insurance to 'et hi'h returns( 19M !urchase insurance on the a#ice

of their friens an 1>M !urchase insurance because of the influence of a#ertise"ents$

The "ain !ur!ose of insurance is to co#er the financial or econo"ic loss that occurs to the

fa"il% in case of the uncertain eath of the !olic% holer$ /ut no& a a%s this tren is chan'in'$

Alon' &ith !rotection -life co#er.( a sa#in's ele"ent is bein' ae to insurance$


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MINIMUM EPECTED RETURN ON INVESTMENT

TABLE 83:

,=pe/ted Returns No. of respondents

ess than 5? 5

5? - 10? 39

11? - 15? 46

16? - 20? 49

21? - 25? 46

26? - 30? 27

31? - 40? 22

41? - 50? 14

More than 50? 22

CHART 83:

A%$&7'!':

2ro" the chart abo#e it can clearl% been seen that 16M of the res!onents &oul li+e 1; =


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CHAPTER*E

2INDINS AND

SUESTIONS

FINDINGS


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3ar'e a"ount of co"!etition -16 !la%ers in the "ar+et.

Other brans are &ell a#ertise an ha#e hi'her recall #alue

3IC is consiere a safer o!tion

2ace co"!etition fro" ban+s an "utual funs

Hi'h !re"iu" !olicies are ifficult to "ar+et

Incorrect !erce!tion about insurance

Intereste !ros!ects "i'ht ha#e a lac+ of ti"e an !ost!one in#est"ents

Custo"ers 'et efensi#e if %ou col call

Short ter" !lans are a#ailable onl% at lar'e !re"iu"

Custo"ers o not ha#e ris+ a!!etite to in#est in shares

So"e !ros!ects ha#e alrea% in#este an are not intereste in further in#est"ents

Consu"ers ont &ant to unerta+e "eical e)a"inations

3ar'e a"ount of ocu"entation

Custo"ers o not li+e their "one% loc+e u! for "an% %ears

3ac+ of a&areness about the unit lin+e funs in the "ar+et

No "one% bac+ !lan !resent in the !rouct !ortfolio


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SUGGESTIONS:

A#ertise about the co"!an% an its !roucts it "oti#ates ini#iuals to !urchase

insurance

Create a !ositi#e !erce!tion about insurance

S!ea+ about the 'oo features a !lan offers li+e hi'h returns( life co#er( ta) benefits(

ine)ation( accient co#er &hile !ros!ectin' custo"ers

Tr% to sell the !rouct!lan &hich the consu"er re,uires an not the !lan &here the

a#isors benefit is hi'her

I"!ro#e the efficienc% in o!erations

/rin' out !olicies &ith s"all !re"iu"s !a%able for short !erios of ti"e Rs$ 7


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CONCLUSION

HD2C stanar life insurance is first life insurance co"!an% in Inia$ It has businesses s!rea

out across the 'lobe$ It &as re'istere on => rDece"ber =< -"ostl% "ale. &ere intereste in

in#est"ent !lans$ This &as a 'eneral conclusion ra&n urin' !ros!ectin' clients$


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CHAPTER*F

/I/3IORAPH

UESTIONNAIRE

A FINANCIALSURVEY ON INSURANCE INDUSTRY


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,; Do 7o( $8e $ &!fe !%'(#$%)e "o&!)79!%8e'tme%t "&$% !% 7o(# %$me

o es o No

2; If 7e' =!) )om"$%7' !%'(#$%)e "o&!)!e' +o 7o( o&+

o HD2C Stanar 3ife Insurance

o /irla Sun 3ife Insurance

o A#i#a 3ife Insurance

o /a0a0 AllianB 3ife Insurance

o 3IC

o Tata AI 3ife Insurance

o ICICI Pruential 3ife Insurance

o IN G%s%a 3ife Insurance

o /harti A)a 3ife Insurance

o Others -s!ecif% na"e.

/; W$t !' te $""#o>!m$te "#em!(m "$!+ *7 7o( $%%($&&7 !% R("ee'5

o

Rs$ 7(


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4; W!) $))o#+!%6 to 7o( !' $% !+e$& "o&!)7 te#m N(m*e# of 7e$#' 7o( =o(&+ *e

=!&&!%6 to "$7 "#em!(m5

o > to 7 %ears

o ; to 5 %ears

o 1< to 17 %ears

o 1; to =< %ears

o =1 to =7 %ears

o =; to >< %ears

o 4ore than >< %ears

o Whole life !olic%

.; W$t mot!8$te' 7o( to "(#)$'e !%'(#$%)e9!%8e'tme%t "&$%'

o A#ertise"ents

o Hi'h Returns

o A#ice fro" friens

o 2a"il% res!onsibilities

o Others -s!ecif%.

-; I% =!)

o 2orei'n base co"!an%

,3; T7"!)$&&7 =$t

o 3ess than 7M

o ;M * 1< M

o 11M * 17 M

o 1;M * =< M

o =1M * =7M

o =;M * >1M * :


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o OTHERS

,2; te t7"e of te )om"$%7 +o 7o( "#efe# fo# +o!%6 !%'(#$%)e "o&!)7

o Go8e#%me%t o=%e+ )om"$%7

o P(*&!) &!m!te+ )om"$%7

o P#!8$te )om"$%7

o Fo#e!6% )om"$%7

,/; o= m() +o 7o( e>"e)t te #et(#% o% 7o(# !%8e'tme%t

o 10,3

o ,,0,1

o ,023

o 2,021

o Mo#e t$% /3

o Mo#e t$% 13

Pe#'o%$& Det$!&':

N$me:

A++#e'':

A6e: Co%t$)t No; :

P#of!&e of #e'"o%+e%t:

Stuent

House&ife

Wor+in' Professional

/usiness

Self E"!lo%e

o#ern"ent Ser#ice E"!lo%ee


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BIBLILOGRAPHY

===;+f)'&!);)om

===;t$t$0$!60&!fe;)om

===;!#+$!%+!$;)om

===;&!);)om

===;mo%e7 )o%t#o&;)om

===;*$$$&&!$%;)om

===;!)!)!;"#(&!fe;)om

M$6$!%e

I%'(#$%)e Wo#&+

Te O(t&oo< Mo%e7

Se)#et' of S())e''f(& I%'(#$%)e S$&e' *7 M#; J$)< K!%+e#
http://www.hdfcslic.com/http://www.tata-aig-life.com/http://www.irdaindia.com/http://www.hdfcslic.com/http://www.tata-aig-life.com/http://www.irdaindia.com/

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