Live Research Project

8/2/2019 Live Research Project

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EXECUTIVE SUMMARYHDFC Standard Life insurance is the oldest life insurance company in the world. It is the

largest insurer in the UK and is the 28 th largest company in the world. In India, the

company is marketing life insurance products and unit linked investment plans. From my

research at HDFC SLIC, I found that the company has a lot of competition from other

private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also faces competition

from LIC. To compete effectively HDFC SLIC could launch cheaper and more reasonable

products with small premiums and short policy terms (the number of years premium is

to be paid). The ideal premium would be between Rs. 5000 Rs. 25000 and an ideal

policy term would be 10 20 years.

HDFC must advertise regularly and create brand value for its products and services.

Most of its competitors like Aviva, ICICI, Max, Reliance and LIC use television

advertisements to promote their products. The Indian consumer has a false perception

about insurance they feel that it would not benefit them if they do not live through the

policy term. Nowadays however, most policies are unit linked plans where a customer is

benefited even if their death does not occur during the policy term. This message

should be conveyed to potential customers so that they readily invest in insurance.

Family responsibilities and high returns are the two main reasons people invest in

insurance. Optimum returns of 16 20 % must be provided to consumers to keep them

interested in purchasing insurance.

On the whole HDFC standard life insurance is a good place to work at. Every new recruit

is provided with extensive research on unit linked funds, financial instruments and the

products of HDFC. This research enables an advisor to market the policies better. HDFC

was ranked 13 in the Best Places to Work survey. The company should try to create

awareness about itself in India. In the global market it is already very popular. With an

improvement in the sales techniques used, a fair bit of advertising and modifications to


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the existing product portfolio, HDFC would be all set to capture the insurance market in

India as it has around the globe.

TABLE OF CONTENTS

Introduction to Insurance 5

Research Design 10

Company Profile of HDFC SLIC 16

Company Profile of Tata AIG LIC 29

POPs and PODs 33

Competitive analysis 38

Marketing problems 43

Analysis and Interpretation 46

Future line of research 63

Conclusion 65

References 67

Appendix 68

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ACKNOWLEDGMENTI would like to thank my project guide Mr. B. K. Panda, Sales Development Manager

HDFC Standard Life Insurance, New Delhi for guiding me through my summer internship

and research project. His encouragement, time and effort are greatly appreciated.

I would like to thank Prof. Varun Arya, Prof. M. M. Mehta and Mr. Sanjay Diddee for

supporting me during this project and providing me an opportunity to learn outside the

class room. It was a truly wonderful learning experience.

I would like to dedicate this project to my parents. Without their help and constant

support this project would not have been possible.

Lastly I would like to thank all the respondents who offered their opinions and

suggestions through the survey that was conducted by me in Jodhpur.

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CHAPTER I

INDIAN INSURANCEINDUSTRY

AN OVERVIEW

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THE INSURANCE INDUSTRY IN INDIAAN OVERVIEW

With the largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. Its a business growing at the rate of 15-20

per cent annually and presently is of the order of Rs 2060.41 billion (for the financial

year 2011 2012). Together with banking services, it adds about 8.2% to the countrys

Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and

funds available with LIC for investments are 8% of the GDP.

Even so nearly 63% of the Indian population is without life insurance cover while healthinsurance and non-life insurance continues to be below international standards. A large

part of our population is also subject to weak social security and pension systems with

hardly any old age income security. This in itself is an indicator that growth potential for

the insurance sector in India is immense.

A well-developed and evolved insurance sector is needed for economic development as

it provides long term funds for infrastructure development and strengthens the risk

taking ability of individuals. It is estimated that over the next ten years India wouldrequire investments of the order of one trillion US dollars. The Insurance sector, to

some extent, can enable investments in infrastructure development to sustain the

economic growth of the country. (Source: www.indiacore.com)

KEY MILESTONES1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.

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1928: The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the Insurance Act with theobjective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken overby the central government and nationalized. LIC was formed by an Act of Parliament-

LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of India.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 49.78%, with premium

income at Rs. 2060.41 billion during the fiscal year 2011-2012. Though the total volume

of LIC's business increased in the last fiscal year (2011-201) compared to the previous

one, its market share came down from 83.75% to 79.91%.

The 17 private insurers increased their market share from about 15% to about 19% in a

year's time. The figures for the first two months of the fiscal year 2011-12 also speak of

the growing share of the private insurers. The share of LIC for this period has further

come down to 75 percent, while the private players have grabbed over 24 percent.

With the opening up of the insurance industry in India many foreign players have

entered the market. The restriction on these companies is that they are not allowed to

have more than a 26% stake in a companys ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7

billion have poured into the Indian market and 19 private life insurance companies have

been granted licenses.

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Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than anyone

expected. Indians, who had always seen life insurance as a tax saving device, are now

suddenly turning to the private sector and snapping up the new innovative products on

offer. Some of these products include investment plans with insurance and good returns

(unit linked plans), multi purpose insurance plans, pension plans, child plans and

money back plans. (www.wikipedia.com)

CHAPTER IIRESEARCH DESIGN

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RESEARCH DESIGNINTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in

collecting and analyzing the data collected. It is the blue print that is followed in

completing the study. The basic objective of research cannot be attained without a

proper research design. It specifies the methods and procedures for acquiring the

information needed to conduct the research effectively. It is the overall operational

pattern of the project that stipulates what information needs to be collected, from which

sources and by what methods.

TITLE OF THE STUDY

To Compare the products of HDFC Standard L ife Insurance CompanyLimited and Tata AIG Life Insurance Company Limited for HDFC StandardLife Insurance Company Ltd.

STATEMENT OF THE PROBLEM

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This study was undertaken to identify which type of insurance plans HDFC SLIC should

market to beat Tata AIG LIC in India. A survey was undertaken to understand the

preferences of Indian consumers with respect to insurance. While marketing policies the

sole duty of an advisor/ agent is to provide insurance plans as per customer

requirements.

In effect plans (insurance products) should be flexible to suit individual requirements.

This research tries to analyze some key factors which influence the purchase of

insurance like the term of the policy, the type of company, the amount of annual

premium payable (capacity and willingness to spend), risk taking ability and the

influence of advertising. Solutions and recommendations are made based on qualitative

and quantitative analysis of the data.

OBJECTIVES OF THE STUDY

To analysis the product details of HDFC Standard life Insurance Company

limited and Tata AIG life Insurance Company Limited.

To find Points of Parity and Points of Difference of HDFC Standard Life

Insurance Company Limited and Tata AIG Life Insurance Company Limited.

To find out factors that influence customers to purchase insurance policies

and give suggestions for further improvement.

RESEARCH METHODOLOGY

TYPE OF DATA COLLECTEDThere are two types of data used. They are primary and secondary data. Primary data is

defined as data that is collected from original sources for a specific purpose. Secondary

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data is data collected from indirect sources. (Source: Research Methodology, By C. R.

Kothari)

PRIMARY SOURCESThese include the survey or questionnaire method, telephonic interview as well as the

personal interview methods of data collection.

SECONDARY SOURCESThese include books, the internet, company brochures, product brochures, the company

website, competitors websites etc, newspaper articles etc.

SAMPLINGSampling refers to the method of selecting a sample from a given universe with a view

to draw conclusions about that universe. A sample is a representative of the universe

selected for study.

SAMPLE SIZEThe sample size for the survey conducted was 114 respondents. This sample sizewas taken on 95% confidence level and 6 significant level. Data universe for this sample

is 4,14,000 which is approx population of Udaipur excluding people below age of 18

years.

SAMPLING TECHNIQUERandom sampling technique was used in the survey conducted.

PLAN OF ANALYSIS

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Tables were used for the analysis of the collected data. The data is also neatly

presented with the help of statistical tools such as graphs and pie charts. Percentages

and averages have also been used to represent data clearly and effectively.

OVERVIEW OF CHAPTER SCHEMECHAPTER 1:Introduction to insurance - An overview of the industry in India, history, keymilestones, present scenario in India.

CHAPTER 2:Research Design - Introduction, title of the study, statement of the problem,objectives of the study, research methodology, sampling, plan of analysis.

CHAPTER 3:Company prof i le of HDFC SLIC Introduction of HDFC SLIC, products andservices.

CHAPTER 4:Company pro fi le o f Tata AIG Introduction of Tata AIG, products andservices. The advantages of investing in HDFC SLIC compared to other financial

instruments.

CHAPTER 5:

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Points of Parity and Points of Difference between HDFC SLIC and TataAIG LIC Comparison between different plans, charges, fees, deductions andriders available with HDFC SLIC and Tata AIG LIC

CHAPTER 6:Competit ive analysis Information about the plans offered by LIC and otherprivate insurers in India. Comparisons between the plans to find the most popular

and beneficial plans which HDFC SLIC can incorporate into their product portfolio.

CHAPTER 7:Marketing problems - The techniques used to market insurance and theiradvantages and disadvantages along with suggestions for improvement.

CHAPTER 8:Analysis and Interpretat ion A survey on factors that influence people topurchase Life Insurance Policy.

CHAPTER 9:Problems requiring more research Future line of work

CHAPTER 10:Conclusion

ReferencesAppendices

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CHAPTER III

COMPANY PROFILEOF

HDFC STANDARD LIFEINSURANCE COMPANYLTD.14


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HDFC STANDARD LIFE INSURANCE COMPANYLIMITED

INTRODUCTIONHDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since

emerged as the largest residential mortgage finance institution in the country. The

corporation has had a series of share issues raising its capital to Rs. 122 Crores. The

gross premium income for the year ending March 31, 2012 stood at Rs. 2,956 Crores

and new business premium income at Rs. 1,824 Crores. The company has covered over

9,88,000 lives year ending March 31, 2012.

HDFC operates through almost 470 locations throughout the country with its corporate

head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE

with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing

company in India for the last 36 years.

KEY PLAYERS

Mr. Deepak S Parekh is the Chairman of the Company. He is also the ExecutiveChairman of Housing Development Finance Corporation Limited (HDFC Limited). He

joined HDFC Limited in a senior management position in 1978. He was inducted as a

whole-time director of HDFC Limited in 1985 and was appointed as its Executive

Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a

Fellow of the Institute of Chartered Accountants (England & Wales).

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Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company sinceNovember, 2000. Prior to this, he was the Managing Director of HDFC Limited since

1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian

Institute of Technology, Bombay and a Masters Degree in Business Administration fromThe American University, Washington DC.

GROUP COMPANIES

HDFC Bank: World Class Indian Bank- among the top private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

Intelenet Global: BPO services for international customers.

CIBIL: Credit Information Bureau India Limited.

HDFC Chubb: Upcoming Private companies in the field of General Insurance.

HDFC Mutual Fund

HDFC reality.com: Helps to search properties in all major cities in India

HDFC securities

STANDARD LIFE

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Standard Life is Europes largest mutual life assurance company. Standard Life, which

has been in the life insurance business for the past 175 years is a modern company

surviving quite a few changes since selling its first policy in 1825. The company

expanded in the 19th century from kits original Edinburgh premises, opening offices in

other towns and acquitting other similar businesses.

Standard Life Currently has assets exceeding over 70 billion under its management

and has the distinction of being accorded AAA rating consequently for the six years by

Standard and Poor.

JOINT VENTUREHDFC Standard Life Insurance Company Limited was one of the first companies to be

granted license by the IRDA to operate in life insurance sector. Reach of the JV player is

highly rated and been conferred with many awards. HDFC is rated AAA by both CRISIL

and ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and

Poors. These reflect the efficiency with which HDFC and Standard Life manage their

asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.

HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of

as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life

Insurance Companies, which offers a range of individual and group insurance solutions.

It is a joint venture between Housing Development Finance Corporation Limited (HDFC

Ltd.) Indias leading housing finance institution and the Standard Life Assurance

Company, a leading provider of financial services from the United Kingdom. Both the

promoters are will known for their ethical dealings and financial strength and are thus

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committed to being a long-term player in the life insurance industry- all important

factors to consider when choosing your insurer.

BUSINESS GROWTH

Track Record so far

The gross premium income of HDFC, for the year ending March 31, 2012 stood at Rs.

2,956 crores and new business premium income at Rs. 1,824 crores.

The company has covered over 9,88,000 lives year ending March 31, 2012. Company

also declared our 5th consecutive bonus in as many years for our with profit

policyholders.

KEY STRENGTH

Financial Expertise

As a joint venture of leading financial services groups. HDFC standard Life has the

financial expertise required to manage long-term investments safely and efficiently.

Range of Solutions

HDFC SLIC has a range of individual and group solutions, which can be easily

customized to specific needs. These group solutions have been designed to offer

complete flexibility combined with a low charging structure.

Strong Ethical Values:

HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment

with the customers is not allowed.

Most respected Private Insurance Company

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HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class

Magazine Business World for Integrity, Innovation and Customer Care.

PRODUCTS & SERVICESThe right investment strategies won't just help plan for a more comfortable tomorrow --

they will help you get Sar Utha ke Jiyo.At HDFC SLIC, life insurance plans are created

keeping in mind the changing needs of family. Its life insurance plans are designed to

provide you with flexible options that meet both protection and savings needs. It offers

a full range of transparent, flexible and value for money products. HDFC SLIC products

are modern and contemporary unitized products that offer unique customer benefits like

flexibility to choose cover levels, indexation and partial withdrawals. (Source:

www.hdfcslic.com)

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

Individual ProductsProtection Plans

A person can protect his family against the loss of his income or the burden of a loan

in the event of his unfortunate demise, disability or sickness. These plans offer

valuable peace of mind at a small price. Protection range includes our TermAssurance Plan &Loan Cover Term Assurance Plan.

Investment PlansHDFC SLICsSingle Premium Whole of Life plan is well suited to meet longterm investment needs. This provides attractive long term returns through regular

bonuses.

Pension Plans

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Pension Plans help to secure financial independence even after retirement. Pension

range includes Personal Pension Plan , Unit Linked Pension ,Unit LinkedPension Plus .

Savings PlansSavings Plans offer a flexible option to build savings for future needs such as buying

a dream home or fulfilling your childrens immediate and future needs.

Savings range includes Endowment Assurance Plan, Unit LinkedEndowment, Unit Linked Endowment Plus ,Unit Linked Endowment PlusII,Money Back,Unit Linked Enhanced Life Protection II,Chi ldren's Plan, Unit LinkedYoung Star, Unit Linked Young Star Plus , Unit Linked Young Star Plus II .

Group Products

One-stop shop for employee-benefit solutionsHDFC Standard Life has the most comprehensive list of products for progressive

employers who wish to provide the best and most innovative employee benefit solutions

to their employees. It offers different products for different needs of employers ranging

from term insurance plans for pure protection to voluntary plans such as superannuation

and leave encashment.

HDFC SLIC offers the following group products to esteemed corporate clients:

Group Term InsuranceGroup Variable Term InsuranceGroup Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with

Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave

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http://www.hdfcinsurance.com/products/indi_ppp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_eap.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_elpII.aspxhttp://www.hdfcinsurance.com/products/indi_cp.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/indi_ppp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_eap.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_elpII.aspxhttp://www.hdfcinsurance.com/products/indi_elpII.aspxhttp://www.hdfcinsurance.com/products/indi_cp.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspx


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Encashment schemes of your companyAlso suitable for other employee benefit schemes such as salary saving schemes

and wealth management schemes

Social Product

Development Insurance PlanDevelopment Insurance plan is an insurance plan which provides life cover to members of a

Development Agency for a term of one year. On the death of any member of the group insured

during the year of cover, a lump sum is paid to those member beneficiaries to help meet someof the immediate financial needs following their loss.

CHAPTER IVCOMPANY PROFILE

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TATA AIG LIFEINSURANCE COMPANYLTD.

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TATA AIG LIFE INSURANCE COMPANY LIMITEDIntroductionTata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,

formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life

combines the Tata Groups pre-eminent leadership position in India and AIGs global

presence as the worlds leading international insurance and financial services

organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG

holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals

and corporate. Tata AIG Life Insurance Company was licensed to operate in India on

February 12, 2001 and started operations on April 1, 2001.

THE TATA GROUPThe Tata Group is one of India's largest and most respected business conglomerates,

with revenues in 2011-012 of $150.3 billion (Rs. 7904,565 million), the equivalent of

about 2/3 per cent of the country's GDP. Tata companies together employ some

425,000 people. The Group's 42 publicly listed enterprises - among them standout

names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea - have

a combined market capitalization that is the highest among Indian business houses in

the private sector, and a shareholder base of over 2 million. The Tata Group has

operations in more than 48 countries across six continents, and its companies export

products and services to 170 nations.

AIGAmerican International Group, Inc. (AIG), world leaders in insurance and financial

services, is the leading international insurance organization with operations in more than

140 countries and jurisdictions. AIG companies serve commercial, institutional and

individual customers through the most extensive worldwide property-casualty and life

insurance networks of any insurer. In addition, AIG companies are leading providers of

retirement services, financial services and asset management around the world. AIG's

common stock is listed on the New York Stock Exchange as well as the stock exchanges

in London, Paris, Switzerland and Tokyo.

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Tata AIG has strong brand name and recall factor which most of its competitors lack in.

Other than the public behemoth Life Insurance Corporation (LIC) of India which has a

major hold in the market share (of approximately 79%), the private players too are

having more and more opportunities to tighten their hold of the market. Of the private

players, ICICI Prudential comes first with an almost 6.50% of the market share followed

by Tata AIG with about 4.10% of the pie. The private players have everything to work

for, especially with LIC not meeting the needs of its clientele with respect to the services

they need. This provides a prospect for the private sector players to increase their share

of the market. Companies with a familiarity such as Tata AIG can especially achieve

their targets due to the brand image that the Tata group has.

(Source: www.tata-aig-life.com)

A recent survey conducted by the Voluntary Organization in Interest of Consumer

Education (VOICE) revealed Tata AIG Life Insurance Company (Tata AIG Life) as the

c le a r w i nn e r i n t e rm s o f c u st o m er s a ti sf ac t io n i n t he l if e i ns u ra n cec a t ego r y . This is India's first-ever customer satisfaction study for the insurance sector.

The survey also revealed that Tata AIG Life had a high recall as a reputed brand name.

The ability to provide innovative and customer-focused service such as allowing the

maximum grace period for premium payment has not only further distinguished Tata

AIG Life from other life insurance companies but also appealed to consumers.

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PRODUCTS & SERVICES:Corporate l i fe insurance products:

Employee Benefits Credit Life

Group Pensions

Workplace Solutions

Individual l i fe insurance products: Health First

Health Protector

Mahalife

InvestAssure II, InvestAssure Gold

Shubh life, Nirbhay life

With respect to individual life insurance products, Tata AIG has an array of policies to

suit the needs and requirements of all age groups viz, children, students, adults, retirees

etc.

The SUPPORT arm of Tata AIG Life is constituted of Operations, Human Resources,

Marketing, Corporate Training, Finance and Compliance.

Tata AIG Life possesses the philosophy and drive to customize retirement obligations

(for the company) which occur in the form of cash outflows, for the maximum benefit of

both the employer and the departing employee.

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CHAPTER V

POINTS OF PARITYAND

POINTS OFDIFFERENCEBETWEEN

HDFC SLIC AND TATAAIG

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Points of Parity

Funds avai lable with ULIP Plans

General Description Nature of Investments Risk Category

Equity Funds Primarily invested in companystocks with the general aim of capitalappreciation

High

Income, Fixed Interestand Bond FundsInvested in corporate bonds,

government securities and other fixedincome instruments

Medium

Cash Funds Sometimes known as MoneyMarket Funds invested in cash, bankdeposits and money market instruments

Low

Balanced Funds Combining equity investmentwith fixed interest instruments

Medium

Generally all life insurance companies have three types of fund which are Equity fund,

Debt fund and Balance fund. These fund have different risk profile. Equity fund has high

risk but it gives high return, Debt fund has low risk so it gives low return and Balanced

fund is combination of both Equity and Debt fund so risk is medium and return is also

low.

Both HDFC SLIC and Tata AIG LIC have 7 types of funds based on combination of Debt

Equity fund. These are liquid fund, stable managed fund, secure managed fund,

defensive managed fund, balanced managed fund, equity managed fund, growth fund.

IndexationYou have the option to increase your regular premiums by an indexation rate at any

policy anniversary to protect the real value of your investment against inflation. The rate

of indexation will be in line with the increase in the Whole Sale Price Index (or in the

event that this Index ceases to be published such other index as the Company may

select for this purpose). The base sum assured and sum assured of any attached rider

would also be increased by the corresponding indexation increase.

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Charges, Fees and Deductions in ULIP Premium Allocation Charge

This is a premium-based charge. After deducting this charge from premiums, the

remainder is invested to buy units. The Allocation charges are guaranteed for the entire

duration of policy term.

Mortal ity ChargeThe Mortality Charge will apply on the Sum at Risk (SAR = Sum Assured less the Fund

Value pertaining to regular premiums). It will be deducted by monthly cancellation of

units from the accumulation unit account. The Mortality Charge shall remain guaranteed

throughout the policy term.

Fund Management Charge

1% p.a. on With Profits Fund, 1% p.a. on Debt Fund, 1.25% p.a. on Balanced Fund and

1.50% p.a. on Growth Fund. FMC will be applied on the fund while calculating NAV on a

daily basis. The maximum FMC on any fund is 2% p.a. subject to prior approval by the

IRDA.

Policy Administration Charge

Rs. 60 per month, which will increase by 5% p.a. on the 1st of January each year. PAC

will be deducted monthly by cancellation of units from the accumulation unit account. If

premiums are discontinued, this charge would reduce to 60% of the charge applicable

for the premium paying policies

Surrender Charge

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This is the charge that applies when the policy is surrendered. It is equal to 50% of the

difference between regular premiums expected and those paid in the first year of the

contract.

Service Tax Deductions12.36% service tax is applicable on the first premium of life insurance policy.

Tax BenefitsTax benefits will be as per Section 80C & Section 10(10D) of the Income Tax Act, 1961.

Insurance is tax free up to Rs. 100000 per annum and the returns on investment on

maturity of the policy are also tax free.

Riders and Bonuses

HDFC Standard LifeInsurance Tata AIG LifeInsuranceFree Look Period 15 days 15 days

Reversionary Bonus Based on company'sperformance

Based on company'sperformance

Terminal Bonus Based on company'sperformance

Based on company's

performanceTOP UP Minimum Rs. 5000 Minimum Rs. 5000Riders Critical Illness (CI)Benefit

Gives on diagnosis ofanyone

of 6 critical illness

Gives on diagnosis ofanyone

of 12 critical illnessAdditional Term Benefit(ATB) Provides ProvidesAccidental Death Benefit(ADB) Provides ProvidesDouble Benefit Provides Does not provideTriple Benefit Provides Does not providePayer Benefit Rider(PBR) Does not provide ProvidesWaiver of Premium(WOP) Benefit Provides Provides

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Points of Difference

HDFC Standard Life

InsuranceTata AIG Life

InsuranceGrace Period 15 days 31 daysPolicy AdministrationCharge Rs. 60 per month Rs. 55 per month

Guaranteed Bonus Does not give 10% on sum-assuredafter 10 year

Loyalty Bonus 0.1% every year 0.25% after every 4thyear

Fund Switching ChargeTotal 24 free switches in a

policy

after this Rs. 100 perSwitch

4 free switches per yearafter this

Rs. 250 per switch

Guaranteed Surrendervalue 50% of all premiumpaid excluding 1st premium30% of all premium

paid excluding 1st

premium

Fund ManagementCharge 0.80% per annumon the fund value 1.75% per annumon the fund value

Premium RedirectionChargeTotal 12 free Premium

Redirectionin a policy after this Rs.

250 per PremiumRedirection

First 2 PremiumRedirection in a

year is free after this

Rs. 1000per Premium Redirection

Last Year Return 42.70% 72%

We see that both the life insurance companies products are almost same. They

have same charges, fees and deductions. There is slightly difference in charges

and maximum limits of all charges are fixed by IRDA. Before buying any life

insurance policy one should check charges and fees on policy and companysoverall performance and return given to its consumer.

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CHAPTER VI

COMPETITIVEANALYSIS

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COMPETITIVE ANALYSISLIFE INSURANCE CORPORATION OF INDIA (LIC)

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 5, 10, 15 and 20 years and the balance 40% is payable at the 20th year along with

accrued bonus. (www.lic.com)

For a 25 years term , 15% of the sum assured becomes payable after 5,10,15 and 20

years and the balance 40% plus the accrued bonus becomes payable at the 25th year.

An 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. The bonus is also calculated on the full sum assured.

HDFC SLIC does not have a money back policy. It could offer a money back plan and

capture some portion of this market. While marketing insurance products I found that

many customers wanted to purchase these plans.

LIC offers 66 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. HDFC SLIC could diversify its product portfolio. It could add more

plans for high worth individuals and women.

ICICI PRUDENTIAL

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ICICI Prudential is a stiff competitor for HDFC SLIC. The company is a merger between

ICICI Bank which is the biggest private bank in India and Prudential Plc which is a

global life insurance company.

The company has an investment plan which is market related Invest Shield 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. The stock

market performance of ICICI Prudential is much better than HDFC SLIC. The returns on

the growth fund were 46.28% compared to the 42.70% offered by HDFC SLIC.

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

The company is very well advertised. The advertisements are showcased in movies,

television, newspapers, magazines, bill boards, radio etc. The company has an excellent

brand ambassador Mr. Amitabh Bacchan. His promotion of the company builds trust

and faith in the minds of our people.

However the charges are very high in the plans offered by ICICI Prudential. It is 35%

during the first year, 15% in the next year and 3% from the third year onwards. Also a

higher minimum premium of Rs. 8000 is charged. Hence the policies are not accessible

to the lower strata of the society. (Source: www.iciciprulife.com)

BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla

Group, one of the largest business houses in India and Sun Life Financial Inc., a leading

international financial services organization. The local knowledge of the Aditya Birla

Group combined with the expertise of Sun Life Financial Inc., offers a formidable

protection for your future. (Source: www.birlasunlife.com)

The Aditya Birla Group has a turnover close to Rs. 72078 crores with a market

capitalization of Rs. 3425.3115 crores (as on 31st March 2012). It has over 133000

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employees across all its units worldwide. It is led by its Chairman - Mr. Kumar

Mangalam Birla. Some of the key organizations within the group are Hindalco and

Grasim.

Sun Life Financial Inc. and its partners today have operations in key markets worldwide,

including Canada, the United States, the United Kingdom, Hong Kong, the Philippines,

Japan, Indonesia, India, China and Bermuda. It had assets under management of over

US$943 billion, as on 31st March 2012. The company is a leading player in the life

insurance market in Canada.

Being a customer centric company, BSLI has invested heavily in technology to build

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

inception and its customer base is spread across more than 1000 towns and cities in

India. All this has assisted the company in cementing its place amongst the leaders in

the industry in terms of new business premium income. The company has a capital base

of 620 crores as on 31st July, 2012.

Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100 years

of age. There are guaranteed returns of 3% p.a. net of policy charges after every 5

years from the eleventh policy year onwards. However the charges are very high. The

initial charges for the first year are 65%. Hence the fund value is greatly reduced.

BAJAJ ALLIANZBajaj Allianz is a joint venture between Allianz AG with over 115 years of experience in

over 80 countries and Bajaj Auto, a trusted automobile manufacturer for over 60 years

in the Indian market. Together they are committed to offering you financial solutions

that provide all the security you need for your family and yourself. Bajaj Allianz is the

number one private life insurer for the year 2011 2012. It is leading by 508 crores. It

has experienced a whopping growth of 616% in the last financial year.

The company has sold 19, 00,000 policies and is backed by 590 offices across India. It

offers travel insurance, motor insurance, home insurance, health and corporate

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insurance. The mortality charges are lower than HDFC SLIC. The entry age could be

zero years which allow even new born babies to be insured. (Source:

www.bajajallianz.com)

TATA AIGTata Aig is a joint venture between the Tata group and American International Group

Inc. In one of the plans the company offers hospital cash benefit wherein it will pay Rs.

2500 per day in case of hospitalization and Rs.12.5 lakhs in case the person suffers

from any critical illness. Annual premium is much less (about Rs. 6712) to avail such a

good benefit. Charges are relatively low compared to HDFC SLIC for some policies.

The company offers high coverage plans at low cost. There is a plan even for a policy

term of 1 year. Your family can continue to enjoy their current lifestyle even in the case

of something happening to you. These plans are very flexible and HDFC SLIC could

adopt this idea of insuring individuals for short periods of time. For example; there is a

family of four. The only earning member is the father.

He has just taken a loan from a bank of 20 lakhs to purchase a new home. He is able to

repay the loan with his current salary in 15 years. The problem arises if something were

to happen to him within these fifteen years. Not 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. (Source: www.tataaig.com)

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CHAPTER VII

MARKETING

PROBLEMS

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MARKETING PROBLEMSThe old and out dated technique of tele marketing is used to prospect customers. More

modern techniques must be adopted. The company must sponsor shows and give

presentations in corporate houses. The financial health check must be performed for

every prospect to assess his/her true financial position and needs. Some of the advisors

skip this vital step and the prospect ends up with a plan they do not appreciate and

soon surrender or discontinue.

Some of the main problems in marketing the policies are:

Large amount of competition .

Other brands are well advertised and have higher recall value

LIC is considered a safer option

Face competition from banks and mutual funds

High premium policies are difficult to market

Incorrect perception about insurance

Interested prospects might have a lack of time and postpone investments

Customers get defensive if you cold call

Short term plans are available only at large premium

Customers do not have risk appetite to invest in shares

Some prospects have already invested and are not interested in further

investments

Consumers dont want to undertake medical examinations

Large amount of documentation

Customers do not like their money locked up for many years

Lack of awareness about the unit linked funds in the market

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No money back plan present in the product portfolio

SUGGESTIONS FOR IMPROVEMENT

Advertise about the company and its products it motivates individuals to

purchase insurance

Create a positive perception about insurance

Speak about the good features a plan offers like high returns, life cover, tax

benefits, indexation, accident cover while prospecting customers

Try to sell the product/plan which the consumer requires and not the plan where

the advisors benefit is higher

Improve the efficiency in operations

Bring out policies with small premiums payable for short periods of time Rs.

5000 Rs. 10000 per annum for 10 years

Attract the youth of India with higher returns on investment as returns are the

motivating factor which influence purchase of insurance

Promote insurance in colleges and corporate houses

Promote HDFC SLIC as an Indian Company to build trust

HDFC SLIC could have a brand ambassador or a mascot to promote its services

Should have partial withdrawals from the first year onwards

Tap the rural market where there is large potential

Diversify product portfolio

Make products more straight forward reduce complexities

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CHAPTER VIIIANALYSIS

&INTERPRETATION

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ANALYSIS & INTERPRETATIONA SURV EY ON THE L I FE INSURANCE IND USTR Y IN IND IA

AGE GROUP OF SURVEYED RESPONDENTSTABLE 1: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

CHART 1:

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Analysis:From the chart above we find that 47% of the respondents fall in the age group of 18

25 years, 25% fall in the age group of 26 35 years and 17% fall in the age group of

36 49 years.

Therefore most of the respondents are relatively young (below 26 years of age). These

individuals could be induced to purchase insurance plans on the basis of its tax saving

nature and as an investment opportunity with high returns.

Individuals at this age are trying to buy a house or a car. Insurance could help them

with this and this fact has to be conveyed to the consumer. As of now many consumers

have a false perception that insurance is only meant for people above the age of 50.

Contrary to popular belief the younger you are the more insurance you need as your

loss will mean a great financial loss to your family, spouse and children (in case the

individual is married) who are financially dependent on you.

GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE 2:

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Particulars No. of Respondents

Male 193

Female 77

CHART 2:

CUSTOMER PROFILE OF S URVEYED RESPONDENTSTABLE 3:Customer profile No. of respondents

Student 62

Housewife 5

Working Professional 116

Business 49

Self Employed 24

Government service employee 14

CHART 3:

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Analysis:From the chart above it can clearly be seen that 43% of the respondents are working

professionals, 23% are students and 18% are into business. Therefore the target

market would be working individuals in the age group of 18 25 years having surplus

income, interested in good returns on their investment and saving income tax.

NO. OF RESPONDENTS WHO HAVE LIFE INSURANCE POLICY IN THEIRNAMETABLE 4:

Person who have l i fe insurance pol icyYes 103

No 167

CHART 4:

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ANALYSIS :This graph shows that out of total 270 respondents only 103 or 38% respondents have

life insurance policy in their name. Rest all dont have a single policy in their name. So

there is a very big scope for life insurance companies to cover these people. So in future

business of life insurace will gro further.

MARKET SHARE OF LIFE INSURANCE COMPANIESTABLE 5:

LIFE INSURER NUMBER OF POLICIES

HDFC STANDARD LIFE 4

BIRLA SUN LIFE 3

AVIVA LIFE INSURANCE 6

BAJAJ ALLIANZ 7

LIC 55

TATA AIG 6

ICICI PRUDENTIAL 12

ING VYSYA 6

BHARTI AXA 2

OTHERS 2

CHART 5:

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Analysis:In India, the largest life insurance company is Life Insurance Corporation of India. It has

been in existence in India since 1956 and is completely owned by the Government of

India. Today the organization has grown to 2048 offices serving 18 crore policies and

has a corpus of over 340000 crore INR.

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ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE

TABLE 6:

Premium paid (p.a.) No. of respondents

Rs. 5000 - Rs. 10000 40

Rs. 10001 - Rs. 15000 26

Rs. 15001 - Rs. 24900 18

Rs. 25000 - Rs. 50000 10

Rs. 50001 - Rs. 60000 4

Rs.60001 - Rs. 80000 2

Rs. 80001 - Rs. 100000 3

CHART 6:ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE INSURANCE

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Analysis:From the chart above we find that, 39% of the respondents surveyed pay an annual

premium less than Rs. 10001 towards life insurance. 25% of the respondents pay an

annual premium less than Rs. 15001 and 17% pay an annual premium less than Rs.

25000. Hence we can safely say that HDFC SLIC would be able to capture the market

better if it introduced products/plans where the minimum premium starts at Rs. 5000

per annum.

Only 19% of the respondents pay more than Rs. 25000 as premium and most products

sold by HDFC SLIC have Rs.12000 as the minimum annual premium amount. They

should introduce more products like Easy Life Plus and Safe Guard where the minimum

premium is Rs.6000 p.a. and Rs. 12000 p.a. respectively. This would definitely increase

their market share as more individuals would be able to afford the policies/plans

offered.

POPULAR LIFE INSURANCE PLANSTABLE 7:

Type of Plan No. of Respondents

Term Insurance Plans 105

Endowment Plans 122

Pension Plans 16

Child Plans 8

Tax Saving Plans 19

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CHART 7:POPULAR LIFE INSURANCE PLANS

Analysis:From the chart given above we can clearly see that 45% of the respondents hold

endowment plans and 39% of the respondents hold term insurance plans. Endowment

plans are very popular and serve two purposes life cover and savings.

If the policy holder dies during the policy term the nominee gets the death benefit that

is, sum assured and accumulated bonus. On survival the policy holder receives the

survival benefit with a bonus.

A term plan is a pure risk cover plan wherein the insured pays a lower premium for a

higher sum assured. Term insurance is the cheapest form of insurance and helps the

policy holder insure himself for a relatively low premium. For the returns sensitive

investor term plans do not find favor as they do not offer a return in case the individual

does not die during the policy term.

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AWARENESS OF UNIT LINKED INSURANCE PLANSTABLE 8:

Awareness of Unit Linked Plans No. of Respondents

Yes 154No 116

CHART 8:AWARENESS OF UNIT LINKED INSURANCE PLANS

Analysis:From the chart given above we find that 57% of the respondents are aware of unit

linked life insurance plans and 43% are not aware of such plans. These plans should be

promoted through advertising. The company can advertise through television, radio,

newspapers, bill boards and pamphlets. This would increase awareness and arouse

curiosity in the minds of the consumer which would enable the company to market its

products more effectively.

Unit linked plans are those where the benefits are expressed in terms of number of

units and unit price. They can be viewed as a combination of insurance and mutual

funds. The number of units a customer would get would depend on the unit price when

they pay the premium.

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When the policy matures the individual gets his fund value. The value of his fund is

calculated by multiplying the net asset value and number of units held by them on that

day.

CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

TABLE 9:

Willingness to spend on premium No. of respondents Percentage

Less 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 9:CONSUMER WILLINGNESS TO SPEND ON LIFE INSURANCE PREMIUM

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Analysis:From the graph above, we can clearly see that 41% of the respondents would be willing

to spend between Rs. 10001 Rs. 25000 for life insurance. 27 % would be willing to

spend between Rs. 6001 Rs. 10000 per annum. Only 15% would be willing to spend

more than Rs. 25000 per annum as life insurance premium.

We could say that the maximum premium payable by most consumers is less than Rs.

25000 p.a. This is further reduced as most customers have already invested with LIC,

ICICI Prudential, Birla Sun Life, Bajaj Allianz etc.

HDFC SLIC is faced with a large amount of competition. There are 18 insurance

companies in India inclusive of LIC. Hence to capture a larger part of the market the

company could introduce more reasonable plans with lesser premium payable per

annum.

CHART SHOWING IDEAL POLICY TERMTABLE 10:

Ideal policy term No. of respondents

3 - 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

Whole life Policy 13

CHART 10:

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CHART SHOWING IDEAL POLICY TERM

Analysis:From the chart given above it can be seen that 35% of the respondents prefer a policy

term of 10 15 years, 19% prefer a term of 3 5 years and 15% prefer a term of 6 9

years. This means that HDFC SLIC could introduce more plans wherein the premium

paying term is less than 15 years.

The outlook of insurance as a product should be changed from something which you

pay for your whole life (whole life policy) and do not receive any benefit (the nominee

only receives the benefit in case of your death) to an extremely useful investment

opportunity with the prospects of good returns on savings, tax saving opportunities as

well as providing for every milestone in your life like marriage, education, children and

retirement.

FACTORS THAT MOTIVATE RESPONDENTS TO PURCHASE INSURANCE

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TABLE 11:Parameter No. of Respondents

Advertisements 35

High returns 84Advice from friends 46

Family responsibilities 89

Others 16

CHART 11:

Analysis:From the chart above it can be seen that 33% of the respondents purchase life

insurance to secure their families, 33% take life insurance to get high returns, 17%

purchase insurance on the advice of their friends and 13% purchase insurance because

of the influence of advertisements.

The main purpose of insurance is to cover the financial or economic loss that occurs to

the family in case of the uncertain death of the policy holder. But now a days this trend

is changing. Along with protection (life cover), a savings element is being added to

insurance.

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With the introduction of the new unit linked plans in the market, policy holders get the

option to choose where their money will be invested. They can invest their money in the

equity market, debt market, money market or a combination of these. The debt and

money markets usually have low risk attached whereas the equity market is a high risk

investment option.

PREFERRED COMPANY TYPE OF THE RESPONDENTSTABLE 12:

Type of Company No. of Respondents Percentage

Government Owned Company 127 47%

Public Limited Company 62 23%

Private Company 49 18%

Foreign Company 32 12%

CHART 12: PREFERRED COMPANY TYPE OF THE RESPONDENTS

Analysis:

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From the graph above we find that 60% of the respondents preferred to purchase

insurance from a government owned company, 29% of the respondents preferred to

purchase insurance from a public limited company and only 4% of the respondents

preferred a foreign based company. Heavy advertising through television, newspapers,

magazines and radio is required.

MINIMUM EXPECTED RETURN ON INVESTMENTTABLE 13:Expected Returns No. of respondents

Less 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 13:

Analysis:

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From the chart above it can clearly been seen that 18% of the respondents would like

16 20% returns, 17% would like returns between 21 25% and 17% would like

returns of 11 15% on their investments. Therefore the average return on investment

should be at least 16 20 %.

Most consumers are willing to adapt to some amount of risk but still want some

guaranteed returns. Therefore the bulk of investment should be made in the balanced

fund with 50% debt and 50% equity. The returns on the Secure Fund are guaranteed

as these involve investment is government securities and the debt market. But the

returns on these instruments are low (8 10%). If the company invests in shares,

returns are higher (39%) but correspondingly risk borne by the policy holder is also

higher. Therefore a good combination of the two instruments is often a wise choice.

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CHAPTER IXFUTURE LINE OF

RESEARCH

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FUTURE LINE OF RESEARCH

The future topics for research in the organization could be setting up of an appropriate

ad campaign. It is very vital to the companies success that the people of India know

about HDFC SLIC, its products and their special features and how insurance in general

can help them in their future. The advertisements have to be emotionally appealing.

They might also include a celebrity. The brand name of HDFC could be used to give a

push to HDFC SLIC and its products. The general perception of insurance as

inauspicious should be done away with and individuals and corporations accept

insurance on power with other investment opportunities.

The other area of research could be in the management of funds HDFC SLIC possesses

and how it can maximize returns for its investors. A research project could be

undertaken on how to ensure that the money gets invested in the right companies and

earns a medium high return on investment. Another area of research could be an

analysis of the sales and marketing techniques used by HDFC SLIC. A large number of

changes could be introduced and this would help in saving operating costs and

improving the efficiency of the firm.

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CHAPTER X

CONCLUSION

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CONCLUSIONHDFC standard life insurance is first life insurance Company in India. It has businesses

spread out across the globe. It was registered on 23rd December 2000. It currently

ranks number 4 amongst the insurers in India (Source: annual premium provided by the

company)

The company faces a large amount of competition. To sustain itself it must promote its

products through advertising and improve its selling techniques. Consumers must be

aware of the new plans available at HDFC SLIC. The medium of advertising used could

be television since most of its competitors use this tool to promote their products. The

company must be promoted as an Indian company since consumers seem to have more

trust in investing in Indian firms.

The general perception of life insurance has to change in India before progress is made

in this field. People should not be afraid to invest money in insurance and must use it as

an effective tool for tax planning and long term savings.

HDFC SLIC could tap the rural markets with cheaper products and smaller policy terms.

There are individuals who are willing to pay small amounts as premium but the plans do

not accept premiums below a certain amount. It was usually found that a large number

of males were insured compared to females. Individuals below the age of 30 (mostly

male) were interested in investment plans. This was a general conclusion drawn during

prospecting clients.

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REFERENCESwww.hdfcslic.comwww.tata-aig-life.comwww.irdaindia.comwww.lic.comwww.money control.comwww.bajajall ianz.comwww.icici.prulife.com

62
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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A RESEARCH ON INSURANCE INDUSTRYDear Sir/Madam,

I am a student of Pacific Institute of Management, Udaipur. As part of the requirementsfor my Post Graduation in Management I am required to do a research based report.Kindly spend a few minutes of your valuable time and fill in this questionnaire.

Do you have a l ife insurance poli cy/ investmentplan in your name?o Yes o No

If yes which companys insurance pol ic ies do youhold?o HDFC Standard

Life Insuranceo Birla Sun Life

Insurance

o Aviva LifeInsurance

o Bajaj Allianz Life

Insuranceo LIC

o Tata AIG Life

Insuranceo ICICI Prudential

Life Insurance

o ING Vysya Life

Insuranceo Bharti Axa Life

Insuranceo Others (specify name)

What i s the approximate premium pa id by youannual ly (in Rupees)?o Rs. 5,000 Rs.

10,000o Rs. 10,001 Rs.

15,000o Rs. 15,001 Rs.

25,000o Rs. 25,001 Rs.

50,000

o Rs. 50,001 Rs.

60,000o Rs. 60,001 Rs.

80,000o Rs. 80,001 Rs.

1,00,000

o More than Rs. 1,00,000 (specify premium)

What kind of insurance pol icy would suit you bestin your current stage of l i fe?

o Life Insurance

o Life Insurance and

Investment Plans

o Pension Plans

o Child Plans

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o Tax saving plans

Are you aware of the new unit l inked insuranceplans in the market?o Yes o No

How much wou ld you be wil li ng to spend perannum if you were to go for aninvestment/insurance plan?o Less than Rs.

6,000o Rs. 6,001 Rs.

10,000o Rs. 10,001 Rs.

25,000

o Rs. 25,001 Rs.

50,000o Rs. 50,000 Rs.

1,00,000o More than Rs.

1,00,000Which according to you is an ideal pol icy term?(Number o f years you wou ld be wil li ng to paypremium)o 3 to 5 years

o 6 to 9 years

o 10 to 15 years

o 16 to 20 years

o 21 to 25 years

o 26 to 30 years

o More than 30

yearso Whole life policy

What motivates you to purchaseinsurance/investment plans?o Advertisements

o High Returns

o Advice from

friendso Family

responsibilitieso Others (specify)

In which kind of company would you prefer tomake a purchase of insurance?o Government

owned companyo Public Limited

Company

o Private Company

o Foreign based

company

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Typical ly what kind of returns would you look atf rom your investments? (Please note: H igherreturns involve greater risk)o Less than 5%

o 6% - 10 %

o 11% - 15 %

o 16% - 20 %

o 21% - 25%

o 26% - 30%

o 31% - 40%

o 41% - 50%

o More than 50%

Personal Details:Name:Address:Age: Contact No. :Profi le of respondent:

Student

Housewife

WorkingProfessional

Business

Self Employed

GovernmentService Employee

Date:

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