Questionnaire Devil (1)

HDFC STANDARD LIFE INSURANCE CO.LTD

HDFC STANDARD LIFE INSURANCE CO.LTD

CHAPTER 1

INTRODUCTION

1.1 INSURANCE:Insurance is a contract providing for payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of certain event. Uncertainty of death is inherent in human life. It is this risk, which gives rise to the necessity for some form of protection against the financial loss arising from death. Insurance substitutes this uncertainty by certainty. The objective of insurance is normally to provide:a) Family protection and / or b) Provision for old age.c) Protection against risks

1.2 Why Insurance?Insurance cover is essential because it provides the following benefits: A lump sum payment to the nominees at the time of the death of the policy holder. A regular payment to the nominees in the event of the death of the policy holder. Tax benefits, as premiums paid reduce the liability of tax. Relieves economic hardships in the family on the uneventful death of the sole income holder. Inculcates the habit of savings. Insurance sector which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance premier, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector.As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance.Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation.

1.3 What is the likely impact of opening up Indias insurance sector?The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped.In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and HDFC Standard Life Insurance Company Ltd has given me the opportunity to work and get experience in highly competitive and enhancing sector. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAXetc have adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer

INTRODUCTION TO THE INDUSTRY

1.4 THE HISTORY OF INDIAN INSURANCE INDUSTRY

Life InsuranceIn 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach. Some of the important milestones in the life insurance business in India are:1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its subsidiaries.Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

1.5 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of life insurance in the country and mobilize peoples savings for nation-building activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lac active agents spread over. The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U.K.In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth rate for Life insurance business has been 19.22 per cent per annum.

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were operating in the country prior to nationalization, were grouped into four operating companies, namely,(i) National Insurance Company Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance Company Limited. (However, with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies). All the above subsidiaries of GIC operate all over the country competing with one another and underwriting various classes of general insurance business except for aviation insurance of national airlines and crop insurance which is handled by the GIC. Besides the domestic market, the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: -

The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05).

1. HDFC Standard Life Insurance Company Ltd.

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. Their cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They have managed to cover over 11,00,000 individuals out of which over 3,40,000 lives have been covered through our group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max India Limited, a multi-business corporate, together with New York Life International, a global expert in life insurance. With their various Products and Riders, there are more than 400 product combinations to choose from. They have a national presence with a network of 57 offices in 37 cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

5. Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada.

6. Tata AIG Life Insurance Company Ltd.

Tata AIG General Insurance Company Limitedis an Indian general insurance company, and ajoint venturebetween theTata Group andAmerican International Group(AIG).Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, provides insurance to individuals and corporates. It offers a range of general insurance products including insurance forautomobile,home, personal accident, travel, energy,marine,propertyandcasualtyas well as several specialized financial lines. The Company's products are available through various channels of distribution likeagents,brokers,banks(through bank assurance tie ups) and direct channels like Telemarketing,Digital Marketing, worksite etc.

7. SBI Life Insurance Company Limited

SBI Life Insuranceis a joint venture life insurance company betweenState Bank of India(SBI), the largeststate-ownedbanking and financial servicescompany in India, andBNP ParibasAssurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26% of the capital. SBI Life Insurance has an authorized capital of20 billion(US$330million)and a paid up capital of10 billion(US$160million).

8. ING Vysya Life Insurance Company Private Limited

ING Vysya Life Insurance Company Limited(ING Life Insurance India) is alife insurancecompany headquartered inBangalore. ING Vysya Life Insurance recently achieved the significant milestone of completing 10 years of operations in India. The company is a joint venture between Exide Industries and ING Insurance International B.V.

9. Allianz Bajaj Life Insurance Company Ltd.

Bajaj Allianz Life InsuranceCompany Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) andAllianz. Bajaj Allianz Life Insurance offers a range of insurance products for financial planning and life insurance.

10. Metlife India Insurance Company Pvt. Ltd.MetLife India Insurance Company Private Limited was incorporated in India on April 11, 2001 as a joint venture between MetLife International Holdings Inc., The Jammu and Kashmir Bank, M. Pallonji and Co Private Limited and other private investors.

11. AMP SANMAR Assurance Company Ltd.A business enterprise among the AMP Australia and Sanmar association was the AMP Sanmar Life Insurance Company Limited of proportion 26:74. This AMP's first capital payment of the business enterprise was Rs.125 Crores and a first task of sale of about 30,000 schemes in the initial annual of its inauguration.

In the year of 2005, a subsidiary of Reliance capital limited under the power of Anil Ambani of Reliance Life Insurance Company Limited, obtained AMP Life Assurance Co. Ltd. As a result of this, Reliance Life Insurance was the very initial private sector life insurance company to begin with business in India without the interaction and association with foreign management.

12. Dabur CGU Life Insurance Company Pvt. Ltd.

Aviva Indiais an Indian life assurance company, and a joint venture betweenAviva plc, a British assurance company, andDaburGroup, an Indian conglomerate. Aviva began operations in July 2002 as a joint venture with Dabur Group, one of Indias oldest business houses. As per the Indian insurance sector regulations, Aviva plc has a 26% stake and Dabur has a 74% stake in the JV partnership.

13. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started its operations from March 2001. The company is Head Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.

1.6 Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy, which see increased savings, to the infrastructure sector, which can look forward to long term funding being available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies.

1.7 Marketing Mix Policies

Different companies can choose to position themselves differently and hence the Marketing Mix is different. However, there are certain common characteristics that one can cull out from the possible strategies that companies adopt. The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. The key to success is in providing insurance solutions, not standardized insurance products. The concept of riders/optional benefits has already been a huge innovation brought about by the new players, which has led to customization of products for individual needs. However, companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in. Different companies may however choose different channels and different geographies to focus on. The channel options are - tied agency force, corporate agents and brokers and this is an area where different companies will make different choices. Many companies like HDFC Standard Life are focusing on all channels whereas companies like Max New York Life are focusing on the tied agency force only. Customer interface will be a key challenge for life insurance companies and includes every that interaction that the customer has with the company, such as sales, new business underwriting, policy servicing, premium payments, claim processing and so on. Technology can play a crucial role in delivering the highest standards of service set by the company and it will be imperative for any serious player to excel in all of these. Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities. Here too, service delivery and financial strength will need to be present at a minimum acceptable level for price to be a relevant differentiator. In case of savings oriented products, long-term returns generated are more relevant than just the price of the product. A focus on generating good investment performance and keeping a tight control on costs help in generating good long-term maturity value for customers. Norms have been laid down on all of these by IRDA and adhering to these while delivering good returns will be a challenge.

1.8 Promotion and Advertising:

The level of demand is latent and will have to be activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. Various communication tools including advertising, direct marketing and road shows contribute to all this and different companies take different approaches on these. Cashless settlement: One of the most defining and customer-friendly changes that weve seen in recent years relates to the way claims settlements are made. The advent of the third-party administrator (TPA) regime has facilitated the transition to the hugely convenient era of cashless settlement of health and auto insurance claims. TPAs are entities who process claims on behalf of insurers: the IRDA licenses them after it is satisfied that they have the financial strength, the trained manpower, the infrastructure and the skills to undertake this activity. Likewise, with auto insurance, the TPA ties up with garages and authorized service centers for cashless settlement of auto insurance claims. Lower premiums: The spirit of competition and the broadening of the risk experience of insurance companies have contributed to a fall in premiums over the years. Thats because, other things being equal, an insurer who covers the lives just of 10 people bears a higher risk than an insurer who covers the lives of, say, 100 people. Further, a broader base will provide greater efficiencies on costs such as distribution, management and claims. A broad basing of the mortality experience, therefore, gives insurers the elbowroom to compete by lowering premiums, and that trend is expected to continue. Premium payment flexibility: Insurers have imparted certain flexibility to premium payment options in order to address this concern. For instance, one now have the option to pay your premiums upfront, which is then carried forward for the tenure of the policy. The yearly premiums are drawn from the initial corpus. Insurers have also introduced the concept of automatic cover maintenance to protect your policy from lapsing owing to your omission to pay your premium on time. Under this, in the event of your not paying the premium, the insurer dips into your investment account to the extent of the premium. Of course, this comes with an in-built drawback: your investment portion diminishes year on year to the extent of the amount paid to cover your risk.

1.9 Physical Evidence:

This can play a significant role for marketing in the Indian scenario. Since Internet users are comparatively lesser than countries such as US, the offline mode will be preferred in India. Although the distribution model is largely agent-based, wherever the customer is in contact with the company, this factor can play a significant role in luring the customer. The most important factor that materializes sales and maintains customer relationships on a long-term basis is this factor. No matter what distribution strategy a company adopts, customer relationship has to be taken care of in order to maintain the customer base on a long-term basis.

CHAPTER 2

RESEARCH DESIGN

2.1 TITLE OF THE STUDYThe purpose of this study is to know Customer Satisfaction in HDFC Standard Life Insurance.

2.2 STATEMENT OF THE PROBLEM The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on HDFC Standard Life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied.

2.3 OBJECTIVES OF THE STUDY To determine reasons behind opting for an insurance. To provide the company with information of customer's Insurance policy if they have any and reasons for opting for that particular policies. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by any other insurance agent. To study the types of benefits provided by insurance services. To determine the use of Internet for valuable information and decision-making process. 2.4 SCOPE OF THE STUDYA big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The study deals with HDFC Standard Life in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.2.5 SIGNIFICANCE OF THE STUDYThis is a limited study which takes into consideration the responses of 63 people. This data can be explored to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

2.6 SIGNIFICANE FOR THE RESEARCHER:To facilitate and provide all the useful information of the study, the company, the insurance industry and also provide marketing ways, methods of HDFC Standard Life insurance.

2.7 RESEARCH METHODOLOGY The research is exploratory research. The research methodology is primarily based questionnaire prepared to ensure maximum coverage for the research objective. The questionnaire will be prepared to ensure that the sufficient data, information and analysis will be available to support the conclusion and recommendations.

Two kinds of data were used in this study: Primary Data. Secondary Data.

PRIMARY DATA The primary data for this study was collected using the undistinguished Questionnaire method. The questionnaire method was applied to collect the data from the Manager. This tools was applied to get the consumer view about the industry. The questionnaire concentrated on communication accepts of knowledge of the manager, their views, opinion, tastes, and suggestions which are useful to improve the efficiency and broadening the companys existing market share.

SECONDARY DATA The secondary data required for the study was collected from the company brochure, journals, books, magazines websites related to the subject of the study. Number of vivid talks and discussions had conducted with the company officials to get the desired results.

2.8 RESEARCH APPROACH / DESIGN

EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCHThe research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire.

2.9SAMPLING METHODOLOGYSampling Technique:Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient.

Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, and Self Employed etc.The sample size was restricted to only 100, which comprised of mainly peoples from Bangalore due to time constraints.

2.10 LIMITATIONS OF THE RESEARCH1. The research is confined to a certain parts of Bangalore and does not necessarily shows a pattern applicable to all of Country.2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.3. In a rapidly changing industry, analysis on one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the

Chapter SchemeChapter Layout of the Study Chapter 1: IntroductionThis chapter includes the theoretical background of the study. This chapter is the introduction chapter which includes about the insurance sector. There are two parts in this chapter Part A: history and growth and prospects of the insurance sector Part B: descriptive term and relevant aspects of the subject to the title of study

Chapter 2: Research designThe chapter gives extensive information regarding the data collection, designing the questionnaire and preparation of report. It involves all the research design like everything related to my topic A Study on Customer satisfaction on HDFC Life Insurance. All the limitations of the project are all included in this chapter as well. The chapter also covers parts like my source of data, scope of the study, and statement of problem.

Chapter 3: Company profileThis chapter covers the whole company profile and a summary of the company. The boards of directors are mentioned, as well as the vision & mission of the company is included in this chapter.

Chapter 4: Data analysis and interpretationThe collected data is analyzed using suitable quantitative techniques and would be interpreted for providing suitable recommendations.

Chapter 5 : Summary of findings and conclusionThe objectives would be interpreted based on research conducted and relevant suggestions would be given for the betterment of the organization.

Chapter 6: SuggestionsDirect references to the objectives of study so that better justify recommendation are form for the company betterment.

CHAPTER 3

COMPANY PROFILE OF HDFC STANDARD LIFE

3.1 ABOUT HDFC STANDARD LIFE INSURANCE HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGEHDFC Limited. HDFC is India leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. Rated AAA by CRISIL and ICRA for the 10th consecutive year Stable and experienced management High service standards Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards. Standard Life Group (Standard Life plc and its subsidiaries) The Standard Life group has been looking after the financial needs of customers for over 180 years It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs Its investment manager currently administers 125 billion in assets It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006

HDFC KEYS STRENGHS

FINANCIAL EXPERTISE As a joint venture of leading financial services groups, HDFC Standard Life Insurance has the financial expertise required to manage your long-term investment safely and range of solutions. We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solution have been designed to offer you complete flexibility combined with a low charging structure.

CORPORATE OBJECTIVE

Our Vision:'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in 'The most obvious choice for all'.

Our Values:Values that we observe while we work.

Customer centric:People Care One for all and all for ones. Joy and Simplicity

Accolades and Recognition:Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004.Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1 personal finance magazine

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFEINSURANCE

Individual ProductsWe at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Investment Plans .

Pension PlusOur Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked.

Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.

Health Plan Health insuranceisinsuranceagainst the risk of incurring medical expenses among individuals. By estimating the overall risk ofhealth careandhealth systemexpenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. According to theHealth Insurance Association of America, health insurance is defined as "coverage that provides for the payments of benefits as a result of sickness or injury. Includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment"

Retirement plans Retirement Plansprovide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. Given the high cost of living and rising inflation, Retirement planning hasbecome all the more important.

Womens plans HDFC Life presents special solutions catering to different financial needs of women. Womens plans are a set of specially created and hand-picked products which suit the needs of women at different stages of their life; such as protection, health, retirement, childs education and long term savings and investments.

Childrens plans

Successful parenting is no mean accomplishment. A huge contributor to this success is financial planning for your child's future needs at the right age! There is really no better gift you can give your child, than the promise of a secure future with YoungStar Plans from HDFC Life. This Birthday, gift your child a secure future and watch her soar high to fulfill her dreams.

Rural & social Plans

Rural & Social Plans are a special offering from HDFC Life, exclusively for the benefit of our rural customers. These plans have been designed keeping in view the rural population with stable returns and insurance cover.

ProGrowth Plus Plan

HDFC Life ProGrowth Plus, a simple savings-cum-insurance plan that will enable you to enjoy life cover and benefit from comfort of creating your own investment strategies. This ULIP plan will help you to make the most of equities by channelizing your savings effectively.

Group ProductsOne-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients:Group Term InsuranceGroup Variable Term InsuranceGroup Unit-Linked PlanAn investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company. Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

Social ProductDevelopment 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 some of the immediate financial needs following their loss. Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthdayEmployees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member. On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at

The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower.

These tasks would include: Submission of member data in a specified computer format. Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.

Prohibition of rebates: Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer .If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred

Tax BenefitsINCOME TAX GROSS ANNUAL SALARYSec. 80C Across All income SlabsSec. 80 CCC Across all income slabs.Sec. 80 D* Across all income slabs

TOTAL SAVINGS POSSIBLE **Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, Calculated for a male with gross annual income exceeding Rs. 10,00,000. Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein.

CHAPTER: 4

DATA ANALYSIS

Table 4.1: Age group respondents

Age GroupNo. of respondentPercentage

Below 253131%

25 to 353939%

35 to 452525%

45 and above55%

Total100100%

Sources: primary data collected through questionnaire

Analysis: From the above table it is clear that out of 100 respondents, the majority of respondents i.e. 39% belongs to age group of 25-35.

GRAPH 4.1: SHOWING AGE GROUP OF RESPONDENTS

Interpretation:Graph 4.1 shows the different age group who have taken life insurance policies. Among whom the age group 25 35 have responded more on adopting an insurance policy out of 100 respondents .

Table 4.2: Consumer awareness

ResponseNo ofrespondents%age of Respondents

YES100100%

NO00

Total100100%


Analysis: From the above table it is clear that out of the 100 respondents , 100% are aware of the insurances policies.

GRAPH 4.2: SHOWING ABOUT CONSUMER AWARENESS

INTERPRETATION:

Graph 4.2 shows the awareness among the consumers. This indicates that everyone is aware of insurance policies . So company should not waste its resources on creating awareness.

Table 4.3: Occupation of respondents Sector ofworkNo of respondents

%age of respondents

Education99%

Finance1313%

Govt.3232%

IT2222%

Others2424%

Total100100%


Analysis: From the above table we can find out 32% of customers are government employee, whereas only 13% belongs to finance .

GRAPH 4.3: SHOWING OCCUPATION OF THE

INTERPRETATION: We can see maximum respondents are government employee. Company should focus on attracting customers from other sectors too.

Table 4.4: KNOWLEDGE ABOUT INVESTMENT

RESPONSENo of respondents

%age ofrespondents

Yes3333%

No1414%

Have some knowledge53

53%

TOTAL100100%


Analysis: The above table shows that 53% of the respondents have some knowledge about investment whereas 14% of people have no idea about investment .

GRAPH 4.4: SHOWING RESPONDENTS HAVING KNOWLEDGE

INTERPRETATION:The majority of people have only some idea about investment , company should educate more people about investment policies .

Table 4.5: TABLE SHOWING RESPONDENTS HAVING POLICY

ResponseNo of respondents%age of respondents

YES100100%

NO00%

Total100100


Analysis:The above table states that out of 100 respondents, all the people i.e.100% have insurance policy.

GRAPH 4.5: SHOWING RESPONDENTS HAVING POLICY

Interpretation:We can see that all respondents have some kind of insurance policies. Thus company should encourage people for acquiring more than one policies.

Table 4.6: Reasons for investing in insurancepurposeNo of respondents%age of Respondents

Retirement2828%

Tax saving2121%

Earnings3333%

Liquidity1818%

Total100100%

Sources: primary data collected through questionnaire Analysis: From the above data we can find out that 33% of people invest in insurance for earnings .

Graph 4.6: showing the reason for investment


Interpretation:We can see that maximum people invest for earning whereas least people invest for liquidity.

Table 4.7: Types of policy people have.

Types of policyNo of respondents%age of respondents

TRADITIONAL2727%

UNIT LINKED7373%

TOTAL100100%


Analysis: From the above table we can find out 73% of respondent have unit linked policy , whereas 27% of people have traditional policy.

Graph 4.7: showing the type of policy

Interpretation:We can see that maximum people have unit linked policy , company should not change any policies whereas company can encourage people for unit linked policy.

Table 4.8: Table showing term of investment.

TERMSNO of respondents%age ofrespondents

Short term4646

Medium -term22

22

Long- term32

32

Total100100


Analysis: From the above table , we can see that maximum number of respondents i.e. 46% have short term investment and 32% of respondents have long term investment .

Graph 4.8: showing the term of investment by the customers

Interpretation:From the above graph, we can find out maximum people invest for short term. Company should encourage people for long term investment, so that company can invest fund in other areas .

Table 4.9: TABLE SHOWING reasons for investing in HDFC Life Insurance.

ReasonsNo of respondents%age ofRespondents

Brand image1414%

Advertising1212%

value added services2121%

Policy feature2929%

Advisor2424%

Total

100100%


Analysis:

Table shows that majority of people i.e. 29% invest in HDFC Life Insurance due to its policy features and least people i.e. 12% people because of advertising.

Graph 4.9: showing the reasons for investing

Interpretation;

The above graph shows that maximum people invest due to its policy features and minimum people invest because of advertising. So company should take some appropriate action to attract more customers.Table 4.10: Table showing about policy information

RESPONSENO OF RESPONDENTS%AGE OFRESPONDENTS

YES100100%

NO00%

TOTAL100100%


Analysis:

The above table shows that all the people i.e. 100% were given full information at the time of acquiring policy.

Graph 4.10: showing about the policy information given to the customers

Interpretation:The above graph shows that all people got all the information during the time of acquiring policy so company should not change any thing to improve this.

Table 4.11: Table showing satisfaction with policy

RESPONSENO. OF RESPONDENTSPERCENTAGE OF RESPONDENTS

YES8585%

NO1515%

TOTAL100100%

Sources: primary data collected THROUGH QUESTIONNAIRE

Analysis: The above table shows that out of 100 respondents 85% of respondents are satisfied with the policy they have whereas 15% of people are not satisfied with people.

Graph 4.11: showing number of customer satisfied with policy

Interpretation:From the above graph we can find out, maximum people are satisfied with the policy they have whereas minimum people are not satisfied with the policy they have. Company should take care of the people who are not satisfied with the policy they have.

Table 4.12: : Table showing number of policy people have


15858%

22222%

31313%

MORE THAN 377%

TOTAL100100%


Analysis: From the above graph, we can find out that 58% of respondents have only one policy, whereas least i.e. 7% of respondents have more than 3 policies.

Graph 4.12: showing number of policies

Interpretation:

From the above graph we can see that, maximum people have one policies. Company should encourage people to invest in more than one policy.

Table 4.13: Table showing about the judgment of customer need


YES9393%

NO77%

TOTAL100100%


Analysis: From the above table we can find out majority of the respondents i.e. 93% were judged appropriately on their need.

Graph 4.13: showing judgment of customers need

Interpretation:From the above graph we can see that majority of the customers need are judged properly. Hence company should not change any policies regarding this.

Table 4.14: Table showing rate of judgment


SATISFACTORY6767%

AVERAGE2626%

NON SATISFACTORY77%

TOTAL100100%


Analysis: From the above table we can find out that 67% of respondents are satisfied with the judgment of the company for the need of the customers.

Graph 4.14: showing rate of judgment:

Interpretation:From the above graph we can see that majority of the customers need are judged properly. Hence company should not change any policies regarding this.

Table 4.15: Table showing the satisfaction of the customer.


YES9090%

NO1010%

TOTAL100100%


Analysis: From the above table we can find out that 90% of the customers are satisfied with the company, whereas only 10% of respondents are not satisfied with the company.

Graph 4.15: showing satisfaction of the customer:

Interpretation:From the above graph we can find out that maximum people are satisfied with the company. But company should not neglect those people who are not satisfied because it can affect the business.

CHAPTER 5

FINDINGS AND CONCLUSION

FINDINGS: The majority of respondents i.e. 39% belongs to age group of 25-35. Out of the 100 respondents , 100% are aware of the insurances policies 32% of customers are government employee, whereas only 13% belongs to finance . 53% of the respondents have some knowledge about investment whereas 14% of people have no idea about investment . Out of 100 respondents , 100% have insurance policy. 33% of people invest in insurance for earnings . 73% of respondent have unit linked policy , whereas 27% of people have traditional policy. 46% of respondents have short term investment and 32% of respondents have long term investment . 29% of people invest in HDFC Life Insurance due to its policy features and least people i.e. 12% people because of advertising. All the people i.e. 100% were given full information at the time of acquiring policy. Out of 100 respondents 85% of respondents are satisfied with the policy they have whereas 15% of people are not satisfied with people. 58% of respondents have only one policy, whereas least i.e. 7% of respondents have more than 3 policies. Majority of the respondents i.e. 93% were judged appropriately on their need.

67% of respondents are satisfied with the judgment of the company for the need of the customers. 90% of the customers are satisfied with the company, whereas only 10% of respondents are not satisfied with the company.

CONCLUSION

A study on customer satisfaction on value added services offered by HDFC Standard Life Insurance Ltd Company has been carefully analysed interpreted with the help of analysis tools.

` HDFC Standard Life Insurance was grown a lot through its aggressive marketing strategies and the growth rate as tremendous, through it is growing faster it has to work on certain things and maintain the standard. This can be done through introducing more innovative products and recruiting good quality advisors because they are the pillars of the company and it is the most valuable value added services that the company is having.

Therefore, the best the company can do is giving the customer something, which is little bit different and better than its competitor. The company should also be successful in expressing the extra features, which is given to the customer. The customer should feel that whatever company is giving is something great, and no one could ever imagine about it. This feeling makes the customer feel that company is very much satisfying them. In addition, the extra feature given to satisfying is some thing great.

CHAPTER 6

SUGGESTIONS:

Different age group who have taken life insurance policies. Among whom the age group 25 35 have responded more on adopting an insurance policy out of 100 respondents . Everyone is aware of insurance policies . So company should not waste its resources on creating awareness. Maximum respondents are government employee. Company should focus on attracting customers from other sectors too. The majority of people have only some idea about investment , company should educate more people about investment policies . All respondents have some kind of insurance policies .Company should encourage people for acquiring more policies . Maximum people invest for earning whereas least people invest for liquidity. Maximum people have unit linked policy , company should not change any policies whereas company can encourage people for unit linked policy. Maximum people invest for short term. Company should encourage people for long term investment, so that company can invest fund in other areas . Maximum people invest due to its policy features and minimum people invest because of advertising. So company should take some appropriate action to attract more customers.

Maximum people are satisfied with the policy they have whereas minimum people are not satisfied with the policy they have. Company should take care of the people who are not satisfied with the policy they have. Maximum people have one policies. Company should encourage people to invest in more than one policy. Majority of the customers need are judged properly. Hence company should not change any policies regarding this. Maximum people are satisfied with the company. But company should not neglect those people who are not satisfied because it can affect the business.

BIBLIOGRAPHY:

REFERENCES:

List of websites:

www.irda.com www.hdfcsl.com

List of Books & Magazines:

Marketing Management- ICFAI publication Marketing Management- Philip kotler Outlook- the Laymans Guide to Insurance

Business line IRDA Journal

List of News Papers:

Business Line Economics Times

QUESTIONNAIREI am BHAVESH KUMAR, doing my final year Bachelor of Business management from Acharya Institute of Management & Sciences, Bangalore. As a part of my curriculum, I am currently doing my project work on a study on CUSTOMER SATISFACTION with Insurance service offered by HDFC STANDARD LIFE INSURANCE COMPANY LTD.

1. Personal detailName: - Age: -

Phone No.:- .

Email:-..

Office Address: -..... Residential Address: ..

(2) Are you aware of HDFC StandardLife Insurance Co. Ltd. ?a) YES b)NO (3) Which sector are you working in?

(a) Education [ ] (b) Finance [ ] (c) Government [ ] (d) IT [ ]

(e) others [ ]

(4) Are you aware of the all the Investment option ?

(a) Yes [ ] (b) No [ ] (c) Have some knowledge [ ]

(5) Do have any insurance policy ?

(a) Yes [ ] (b) No [ ]

(6) Why do you want to invest in to insurance?

(a) Retirement [ ] (b) Tax saving [ ] (c) Earnings [ ] (d) Liquidity [ ]

(7) What type of policy do you have?

(a) Traditional [ ] (c) Unit linked [ ]

(8) Which term of investment preferred?

(a) Short term [ ] (b) Medium term [ ] (c) Long term [ ]

(9) What made you to invest in HDFC Standard Life Insurance?

(a) Brand image [ ] (b) Advertising [ ] (c) value added services [ ]

(d) Policy feature [ ] (d) Advisor [ ]

(10) Were yougiveninformation about allthe differentpoliciesavailableatthe timeyou purchased the policy?

a) Yes [ ] b) No [ ]

(11) Are you satisfied with the policy you own?

a) Yes [ ] b) No [ ]

(12) How many policies do you have in our company?

a) 1[ ] b) 2 [ ] c) 3[ ] d) More than 3[ ]

(13) Do youthink the customer need is properly judged by the company?

a) Yes [ ] b) No [ ]

(14) howdo you rate the judgment?

a) Satisfactory [ ] b) Average [ ] c) Non satisfactory [ ]

(15) areyou satisfied with the company?

a) Yes [ ] b) No [ ]

(16) ANY SUGGESTIONS86 AIMS

Questionnaire Devil (1)

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Transcript of Questionnaire Devil (1)