PROJECT REPORT

On Comparative study of HDFC Standard Life Insurance Company product with the market player in the same domain.
At
HDFC standard life insurance company limited

A REPORT SUBMITTED IN FULFILLMENT OF THE REQUIREMENTS OF MBA (MARKETIG) OF SAROJ INSTITUTE OF TECHNOLOGY & MANAGEMENT

Submitted to

Submitted by

CERTIFICATE
I N J BUSINESS SCHOOL, Greater Noida

This is to certify that the project work done on Comparative study of HDFC Standard Life Insurance Company product with market player in the same domain Submitted to SAROJ INSTITUTE OF TECHNOLOGY & MANAGEMENT is in partial fulfillment of the requirement for the award of Post Graduate Diploma in Management is a bona fide work carried out by me at HDFC Insurance Company Limited Greater Noida.

DATE: PLACE:

ARUN KUMAR GUPTA ROLL NO. 09BM07 PGDM 2009-2011

I N J BUSINESS SCHOOL, Greater Noida

PREFACE

The Companies that best satisfy their customer will be the winners. It is the special responsibility of marketers to understand the need and wants of the market place and to help their companies not merely looking for sales they are investing in long term, mutually satisfying customer relationships based on delivery quality, service and value. Philip Kotlar

Summer Training is a necessary part for fulfillment of PGDM course. The Summer Training has given a chance to try and apply the academic knowledge into the Business Environment and gain insight of Corporate Culture.

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ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to several people, for their support and guidance which helped me complete my Summer Internship. First and foremost I would like to thank HDFC Standard Life Insurance Co. Ltd., Greater Noida Branch for giving me an opportunity to do my internship in their esteemed organization. My special appreciation extends to Mr. Rahul Mishra (Branch Sales Manager), Mr. Vivek choudhary (Sales Development Manager) and Mr. Sanjeev Kalra (F.C.Trainer) of HDFC SLIC Greater Noida for their constant encouragement through out this period. I would also like to thank our Campus placement coordinator, Prof .Vaibhav Gupta. And Project guide Prof. Meenu Dutt for their guidance and unflinching support through out the phases of my internship. My special thanks to my classmates and dear friends, Mr. Shashi Mahto, Mr. Rahul singh, Miss.Preeti Kaushik and Mr.Sakur Ansari for their support through out my internship. With their help I could complete my work efficiently and effectively. Last but not the least, my endless appreciation goes to my family who has stood by my side and given me moral support whenever I was low and boosted my will power. Thank You. ARUN KUMAR GUPTA PGDM BATCH-2009-2011 GREATER NOIDA

CONTENTS
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Chapter no.

page

1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. OBJECTIVE OF THE STUDY 4. INTRODUCTION OF INSURANCE 5. FUNCTIONS OF INSURANCE 6. INDUSTRY PROFILE 7. COMPANY PROFILE 20 8. DEPARTMENT OVERVIEW 22 9. SOME TERMS ABOUT ULIP PLANS 24 10. PRODUCT PROFILE 42 11. TAXATION BENEFIT 12. MARKET SHARE 13. COMPARATIVE STUDY OF DIFFERENT FIRMS 57 14. RESEARCH METHODOLOGY
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4 5 6 7-8 9-11 11 1221232443 44 4558

15. CONCLUSION & SUGGESTION 60 16. BIBILOGRAPHY

5961

INTRODUCTION

The project started with class room sessions involving lectures and interactions with the mentors Mr. Parvej Aalam (SDM) and Mr. Rahul Mishra (B.M.). They explained all the plans available with HDFC SLIC in detail and plans of other companys (BIRLA SUN LIFE, BAJAJ ALLIANZ & LIC). The classroom also involved role plays and games. The role plays and games involved students being asked to play the roles of customers or clients and that of a person trying to persuade the customer to go in for a plan with HDFCSLIC. These class room lectures and role-plays helped me to gain a substantial understanding of the plans. This in turn helped me to effectively explain these plans to people whom I meet or took appointment to meet. The connect of life insurance has undergone several changes over the years and what has myriad array of attractive options apart from the basic of life cover. Life insurance schemes also offer tax benefits. In todays scenario life Insurance solves the three objectives. 1. Security 2. Saving 3. Tax Benefit.

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EXECUTIVE SUMMARY
.

This project is based upon the fact & figure gathered from the websites about the plans of the firm. In the first part of the report there are some plans which are frequently sold by HDFC SLIC in the market, and then comparative study of pension plan of different firm namely BIRLA SUN LIFE, BAJAJ ALLIANZ and LIC and Comparison of Childrens plans . There In the last part of the project I have given some of the findings and conclusion about the life insurance market and what is the potential of the market. In the end I have give all the sources from which I have collected all the information.

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OBJECTIVE OF STUDY

1. Comparative study of HDFC Standard Life Insurance Company

product with the market player in the same domain.

2. To analyze the insurance plans on the basis of features offered. 3. To observe working of various departments of the organization 4. To know the position of the hdfc slic product in the market.

INTRODUCTION OF INSURANCE
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WHAT IS INSURANCE? The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit may be an income or in some other form. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits. Every asset is expected to last for a certain period of time during which it will period of time during which it will provide the benefits. After that, the benefit may not be available. There is a life-time for a machine in a factory or a cow or a motor car. None of them will last forever. The owner is aware of this and he can so manage his affairs that by the end of that period or lifetime, a substitute is made available. Thus, he makes sure that the benefit is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. We can classify insurance in these terms:- It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. It is essential that: The calamity is either natural or unexpected The insured person does not gain out of this arrangement.. SCOPE OF INSURANCE We all know that assets are insured, because they are likely to be destroyed or made nonfunctional before the expected life time, through accident occurrences. Such possible occurrences are called perils. Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a building may be a few lakhs or a few crores of rupees, depending on the cost of building, the contents in it and the extent of damage. The risk only means that there is a possibility of loss or damage. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word possibility implies uncertainty. Insurance is relevant only if there are uncertainties. Insurance does not protect the asset.
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It does not prevent its loss due to the peril. The peril cannot be avoided through insurance.The risk can sometimes be avoided, through better safety and damage control measures. It only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged. Insurance compensates for the losses- and that too, not fully. In conclusion we can say that the scope of insurance is very broad and specific because it reduces the losses and risk of owner of the assets due to perils. It also gives supports to the person in the period of adverse situation. It insured economic consequences. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in past, plus interest. Insurance has no substitute and one more thing about the insurance is that this is not similar to a hire purchase scheme. In the event of death, the balance installments are not excused. They have to be paid by the surviving family. There is a tax benefits, both in income tax and in capital gains. Marketability and liquidity are better. Life insurance is not only the best possible way for family protection there is no other way. The term of life is hard but the terms of insurance are easy.

Objective of the insurance

When we talk about objective of the insurance sector we can divide it into three categories which are thus. Broad Increased coverage of the population Customer has a wider choice & range of products Service standards to customer Economic Savings mobilization in this objective part the first part deals with its market share because it deals with all people who live in India and it has a broad market potential. So the main motto is to increase and entice more and more people for insurance. In the second part it deals with innovative plans and schemes for the wider choice of people and different range of products of its competitors. It tries to serve its customer with significant way.

Functions of Insurance
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The functions of Insurance can be bifurcated into three parts: 1. Primary Functions 2. Secondary Functions 3. Other Functions The primary functions of insurance include the following: 1) Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. 2) Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. 3) Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis fo determining the premium rate also 4) Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

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1) Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses causes lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. 2) Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. 3) Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following: 1) Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. 2) Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. 3) Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover

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INDUSTRY PROFILE
INSURANCE: Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong. Its often about things going right.; One of the Wonders of human nature is that we never believe anything can actually go wrong. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to liberalized market again. Tracking the development in Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. The business of life insurance in Indian in its existing form started in India in the year 1818 with the establishment of Oriental Life. Insurance Company in Calcutta. Some of the important milestones in life insurance business in India are. 1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life insurance business. 1928: The Indian Insurance Compan9es Act enacted to enable the government to collect statistical information about 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. 1965: 245 Indian and foreign insurers and provident societies take over by the central government and nationalized. LIC formed by an act of parliament viz. LIC. Act. 1956, with a capital contribution of Rs. 5 Crore from the government of India. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its schedule of framing regulations and registering the private sector insurance companies. The other d4ecisoin taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents.
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COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India And UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the venture .HDFC Standard Life brings to you a whole range of insurance Solutions is it group or individual or NAV services for Corporations, they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.

HDFC LIMITED HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. Business Objectives:The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
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STANDARD

LIFE

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. SNAPSHOT Founded in 1875, company supporting generation for last 179 years. Currently over 5 million Policy holders benefiting from the services offered.
Europes largest mutual life insurer.

JOINT VENTURE

HDFC STANDARD LIFE MISSION:HDFC Standard Life aims to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like: Customer service of the highest order, Value for money for customers, Professionalism in carrying out business,
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 Innovative products to cater to different needs of different Use of technology to improve service standard, Increase the market share. VALUES:-

customers,

SECURITY: Providing long term financial security to its policy holders will be the companys constant endeavor. It will do this by offering life insurance and pension products.
1.

TRUST: HDFC Standard Life appreciates the trust placed by its policy holders in it. Hence, it will aim to manage their investments very carefully and live up to this trust.
2.

3. INNOVATION: Recognizing the different needs of its customers, it will be offering a range of innovative products to meet these needs. The companys mission is to be the best new life insurance company in India these are the value that will guide it in this.

Values:1. Security: Providing long term financial security to its policy holders will be the companys constant endeavor. It will do this by offering life insurance and pension products. 2. Trust: HDFC Standard Life appreciates the trust placed by its policy holder in it. Hence, it will aim to manage their investments very carefully and live up to this trust. 3. Innovation: Recognizing the different needs of its customers, it will be offering a range of innovative products to meet these needs. The companys mission is to be the best new life insurance company in India and these are the values that will guide it in this.

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FINANCE DEPARTMENT AT HDFC STANDARD LIFE The finance department of HDFC Standard Life Insurance is headed by the General Manager (Finance), who reports to the MD and CEO. There are four other departments under the Finance Departments. These are: 1. Accounts Department 2. Actuary Department 3. Investment Department 4. Underwriting Department The Accounts Department: The Accounts Department functions like any other Accounts department. It is concerned with the disbursement of salaries, reimbursements, incentives, commissions to agents. It also handles the payments due to other agencies with which the Company interacts, viz. event management companies etc. The work of an Accounts department assumes much importance in an insurance company because it has to be able to pay the claims arising time to time. The Actuary Department: The Actuary Department is the Pricing Department of an insurance company. It must be understood that the basic premise on which the insurance companies work is use the corpus of policy holders for disbursement for any claim. Based on this principle, this department decides the amount of premium to be charged from a client for a particular policy. This is normally done with the help of Mortality Tables, which can either be prepared by the company itself, or the company can use the existing tables available for its use. The IRDA (Insurance Regulation Development Authority) has prescribed the use of the mortality tables used by LIC for all other companies. The Actuary Department is also responsible for Asset-Liability Management of the insurance company. It must ensure that the Solvency margin (Assets- Liabilities) must be at least Rs 50 crores, as prescribed by IRDA. 95% of the surplus above this has to be distributed to the investors a bonus. HDFC Standard Life has till now declared three bonuses to its policyholders
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The Investment Department: The Investment Department is responsible for the investment of the money of the investors. Since the basic reason for the investors investing their money in Life Insurance is security, IRDA has put certain regulations on such companies for investments so that the money of investors is safe. These guidelines are: 1. Not less than 50% of the corpus will be invested in Government Securities (G-Sec) 2. Up to15% of the corpus will be invested in infrastructure, social and rural sectors. 3. Not less than 20% can be invested in government and other equities. 4. Remaining 15% can be invested in unapproved equities. Till recent time, HDFC has not been investing in equities. But now it has decided to follow the footsteps of its Joint-Venture partner Standard Life, which invests around 75% of its corpus in equities. The Investment Department is also responsible for calculating the returns of the investment to the investors. Here also the insurance companies are bound by regulations and guidelines. According to IRDA, the returns have to be in the range of 6 %-9 %. The Underwriting Department This department is responsible for taking the decision on whether to insure a person or not. For this it must take into account the risk premium associated, the reinsurance opportunities etc. normally, there are charts available with the people of this department on the basis of which they can come to a viable decision. Underwriting is done on the basis of two grounds: 1. Financial Grounds: here the underwriters decide on the worth of the person by taking into account his tax returns of the last three years. On this basis they are able to assess the premium paying ability of that person and accordingly take a decision. 2. Medical Grounds: each new customer is required to undergo comprehensive medical test, which determines the persons general health. On the basis of this report, the underwriters decide upon the premium to be charged from customer.
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SOME TERMS ABOUT ULIP PLANS Fund Management The crux of the entire product is the returns that this product can generate and this is dictated by the management of the fund. There is no great value in doing well in all other aspects of the product delivery if the fund does not perform well. The insurance company has two options with regards to the management of the fund i.e. external and internal. External funds usually be having an in-house investment team and this could be extended to management of the funds too. The expenses and hence the cost should be kept in mind as by nature the unit linked insurance product is a very transparent product and hence this would become a significant selling point in the long run. Charges and Expenses There are different charges that can be levied by the insurance companies, some of the more common ones are: 1) Initial charges 2) Annual charges 3) Investment charges 4) Morality charges 5) Surrender charges Initial charges Initial charges are applied at the time of setting up the policy; this could be in the form of a bind offer spread and also in the form of allocation of units known as the allocation factor. It is also possible to be levying a per member level charge. Annual charges The annual charges can either be fixed or can be linked to the size of the fund. It could also be linked to the number of members in the scheme. This charge is usually taken to cover the maintenance expenses of the insurer.
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Investment charges A fund management charge is levied to take care of the fund management expenses depending upon whether the fund is managed internally or externally. Mortality charges It is possible to have an insurance element built into the super annotations contract and in case of a gratuity there would be an element of insurance the degree and the form could differ from company to company. The insurance premium can be taken as a part of the gratuity contract of it can be administered outside this but packaged to look as if it is a whole some product offering gratuity and insurance to the employees of the organization. Surrender Charges The surrender charges can be used in multiple ways. It could be used as a way of recouping the initial outlay of the insurer in case the company decides to withdraw in the early years of the contract or it could be used as a deterrent for the company to shift the service provider at any point of the contract. Usually the surrender charges/ penalty would decrease over a period of time and would be expressed as a percentage of the fund. Administration The unit linked policies are significantly complex to administer and also would need a very highly technically trained customer service department to handle enquiries. Much of the administer the policy, As the allocation of units would be time dependent it is extremely important to have a very robust system that can take care of allocation, de allocation and reallocation of units. It is essential to have a system that would be able to talk/ interact with other systems to capture the unit price details, to give outputs to accounting packages, report generators etc.

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INDIVIDUAL PRODUCTS:
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of products and invites you to choose the one that suits you best.

PLAN
Savings Plans Endowment Assurance Plan Unit Linked Endowment Plan Childrens plan Money Back Plan

BENEFIT
Life Insurance with Savings Life Insurance & Savings with choice of investments funds Financial Security for your child Financial Security for your child with choice of investment funds Life Insurance with Savings

Unit Linked Young Star Plan Investment Plans Single Premium Whole of Life Investment with Life Insurance Plan Protection Plans Term Assurance Plan Life Insurance Customized for home loans Loan cover term Assurance Plan Life Insurance at an affordable price Retirement Plans Personal Pension Plan Savings for retirement Unit Linked Pension Plan Retirement Savings with a choice of investment funds

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Endowment Assurance Plan Endowment assurance plan is a participating (with profits) insurance plan that offers the following features: Provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. Provides a lump sum payment to the life assured on survival up to maturity this plan is with profits saving plan and is well suited for saving money for your long term financial goals. This plan also helps provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the term of the policy. Optional benefits You can add the following optional benefits to customize your policy to suit your needs: Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses(1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Additional Term Benefit (ATB) provides an additional amount equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental Death Benefit (ADB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death : - due to an accident and within 60 days of an accident. Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. This plan can be taken on a single life basis or a joint life (first claim) basis.

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Eligibility This plan can be taken as a single life basis or a joint life (first claim) basis. The eligibility ages are as follows:

Min age of entry Max age of entry

Basic Basic Policy with optional benefits Policy CI ATB ADB WOP 12 18 18 18 18 60 55 70 60 75 55 65 50 60

Max age of 75 expiry Minimum term: 10 years

Maximum term: 30 years

Tax Benefits Tax benefits described in Section 88, Section 80D and Section 10 (10D) of the income Tax Act are applicable. Applicable to premium paid for CI and WOP Payment options You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience.

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Unit Linked Endowment Plan: The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of additional protection against the six common critical illnesses, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the greater of the value of your units and your selected basic sum assured. Premiums Premiums can be paid either quarterly, half-yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year. Premiums can be paid by cash, cheque or demand draft. Benefits There are 4 different options available to choose from: 1. Life Option On death within the policy term, the greater of the Sum Assured and the value of the unit-linked fund will be paid to your nominee. On survival to the end of the policy term the value of the unit linked fund will be paid to you. 2. Life and Health Option On death or earlier diagnosis of any one of six common critical illnesses within the policy term, the greater of the Sum Assured and the value of the unit-linked fund will be paid to your nominee. On survival to the end of the policy term the value of the unit-linked fund will be paid to you. The illnesses covered under this option are cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke. 3. Extra Life Option
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This option pays the same benefits as the Life Option but, should death occur within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid. 4. Extra Life and Health Option This option pays the same benefits as the Life and Health Option but, should death occur within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid. Levels of protection Depending on your age at entry, you may choose between 3 levels of cover Low, Medium or High. For each level the Sum Assured is based on the amount of premium you pay each year. The Sum Assured can not be changed during the term of the contract.

Age at entry Low 18 to 40 41 to 50 Over 51 5Xpremium 5Xpremium 5Xpremium

Levels of cover Medium 10XPremium 10XPremium High 20Xpremium

Eligibility
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The age and term limits for taking out a Unit Linked Endowment Plan are: (Years) Minimum Minimum Maximum age at term term entry 10 30 18 30 30 30 18 18 18 Maximum age at entry 60 55 55 55 Maximum age at expiry 75 65 70 65

Life 10 Life and 10 health Extra life 10 Extra life and 10 health

The alteration of premium, surrendering of the policy, conditions on stopping of payment of premiums and charges are the same as that of the unit linked pensions plan. Tax Benefits Tax benefits under section 88 and section 10 (10D) of the income tax act are applicable. Surrendering the policy The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below. Accessing money? You can make lump sum withdrawals from you funds provided the fund balance after withdrawal and charges does not fall below the Sum Assured. The minimum withdrawal amount is Rs. 10,000.

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Children's Plan Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future even in case of the insured parents unfortunate death during the policy term. Childrens Plan receives simple reversionary bonuses which are usually added annually. This is a flexible plan with three options for you to choose from, depending on your requirements. The details of these options are explained in the next section. Options You will have the choice of 3 options at the start of the policy.

Option

On the death of the insured parent during the policy term Maturity Benefit Future premium Plan waived and the policy continues till maturity. Accelerated Benefit Sum assured+ Plan bonuses paid and the policy stops. Double Benefit Plan

On maturity

On the survival of the insured parent to the maturity date, sum assured+ bonuses paid. Sum assured paid, Sum assured+ future premiums Bonuses paid. waived, and the policy continues till maturity.

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Tax Benefits The premiums you pay will be eligible for tax relief under Section 88 of the Income Tax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 100 (10D) of the income tax act, 1961. Eligibility The eligibility ages for the life assured under the plan are as follows:

Minimum age of entry Maximum age of entry Maximum age of maturity

Term of policy Min. Term: 10 years

18 years 60 years 75 years

Max. Term: 25 years

Payment options You have the choice of paying the premium either in yearly, half yearly or quarterly modes, depending on your convenience.

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Unit Linked Young Star Plan HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parent's unfortunate death during the policy term. The Unit Linked Young Star Plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit prices. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity. Following a valid death or critical illness claim, we will pay the future premiums (at the level originally chosen at inception) into your policy, as and when they would have fallen due. Premiums You agree to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year. Premiums can be paid by cash, cheque or demand draft. Benefits There are 2 different options available: 1. Life Option This option consists of a Maturity Benefit and a Death Benefit. The Maturity Benefit will pay the value of the unit-linked fund at the end of the policy term. The Death Benefit will pay the basic Sum Assured on death of the life assured during the policy term. Following payment of this benefit, no further premiums are due from the policyholder. Following a valid death claim, we will pay future premiums on your behalf, as and when they become due. The level of premium will be that chosen by you at inception of the policy.

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2. Life and Health Option:This option consists of a Maturity Benefit, a Death Benefit and an Extra Health Benefit. The Maturity Benefit will pay the value of the unit-linked fund at the end of the policy term. The Death Benefit will pay the basic Sum Assured on death of the life assured during the policy term. Following payment of this benefit, no further premiums are due from the policyholder and the Extra Health Benefit will lapse without value. The Extra Health Benefit will pay the basic sum assured on diagnosis of any one of six critical illnesses during the policy term. Following payment of this benefit, no further premiums are due from the policyholder and the Death Benefit will lapse without value. The illnesses covered under this benefit are cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke. Following a valid death or critical illness claim, we will pay future premiums on your behalf, as and when they become due. The level of premium will be that chosen by you at inception of the policy. Eligibility The age and term limits for taking out a Unit Linked Young Star Plan are:

Life Option Life and Health Option

Minimum Maximum Minimum term term age at entry 10 25 18 10 25 18

Maximum age at entry 60 55

Maximum age at expiry 75 65

Surrendering the policy

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The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below. Accessing money You can make lump sum withdrawals from you funds provided the fund balance after withdrawal and charges does not fall below Rs. 15,000. The minimum withdrawal amount is Rs. 10,000. Children's Plan Childrens Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parents unfortunate death during the policy term. Childrens Plan receives simple reversionary bonuses, which are usually added annually. This is a flexible plan with three options for you to choose from, depending on your requirements. The details of these options are explained in the next section. Options You will have the choice of 3 options at the start of the policy.

Option

On the death of the insured parent during the policy term Maturity Benefit Future premium Plan waived and the policy continues till maturity. Accelerated Benefit Sum assured+ Plan bonuses paid and the policy stops.

On maturity

On the survival of the insured parent to the maturity date, sum assured + bonuses paid. Double Benefit Plan Sum assured paid, Sum assured+
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future premiums Bonuses paid. waived, and the policy continues till maturity.
Tax Benefits The premiums you pay will be eligible for tax relief under Section 88 of the Income Tax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 100 (10D) of the income tax act, 1961. Eligibility The eligibility ages for the life assured under the plan are as follows:

Minimum age of entry Maximum age of entry Maximum age of maturity

Term of policy Min. Term: 10 years 25 years

18 years 60 years 75 years

Max. Term:

Payment options You have the choice of paying the premium either in yearly, half yearly or quarterly modes, depending on your convenience.

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Money Back Plan It is a participating (with profits) insurance plan that offers the following features: Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of the policy. (Please refer to the table given below.) on survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid earlier is provided. In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts. This plan helps you plan for future anticipated expenses by paying periodic cash lump sum to you at regular intervals. This plan also helps provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions in the event of your unfortunate death during the term of the policy. Benefits You can add the following optional benefits to customize your policy to suit your needs: Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses. The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Additional Term Benefit (ATB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental Death Benefit (ADB) provides an additional amount equal to the basic sum assured in case you die: - Due to an accident, and - Within 90 days of the accident. Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. All optional benefits must be selected at the outset of your plan.
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Eligibility This plan can be taken on a single life basis or a joint life (first claim) basis. The eligibility ages are as follows: Basic Policy Min age of entry Max age of entry Max age of expiry 12 60 75 Basic Policy with optional benefits CI 18 55 70 ATB 18 60 75 ADB 18 55 65 WOP 18 50 60

PAYMENT OPTIONS You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience. SINGLE PREMIUM WHOLE LIFE INSURANCE Single Premium Whole of Life Insurance Plan is well suited to meet your long term investment needs. This participating (with profits) plan offers you the following Benefits: A sound investment: Your money will be invested in our With Profits fund. The fund aims to provide secure and stable long term growth. Normally, we will declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary. In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. You pay a single premium and the policy will pay you a lump sum.

Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of the 10th, 15th, 20th and subsequent five-year
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anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease.

Surrender value: You can terminate the policy any time, after it has been in force for at least 6 months, and receive a surrender value. In case of unfortunate death: Your nominee gets the sum assured secured by your premium, plus any attaching bonuses. No medical requirements: We do not require you to undergo any medical test for this plan. Eligibility You can buy the product on a single life basis. Tax benefits Tax benefits under Section 88 of the income Tax Act are applicable on premiums up to 20% of the sum assured. Payment options A single premium can be paid by cash, cheque or demand draft. Minimum age at entry: 18 years maximum age: 75 years

PENSION PLAN
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 The policy is basically a saving contract, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity, provide it is permitted by the prevailing regulations. Your commitment You agree to pay a single premium or level premiums with installments due every quarter half-year or year throughout the deferment period of the policy, after which you will start receiving your pension. Plan is basically a savings contract, which is designed to provide an income for life from retirement. It does this by accumulating a national lump sum on retirement, comprising of sum assured plus any attaching bonus. Can I take the national lump sum as cash on retirement? Subject to the prevailing legislation and regulations, part of this can be taken as a lump sum and the rest used to buy an immediate annuity. Mode of premium You can pay either a single premium or pay premiums is quarterly half yearly or annual form by cheque, in cash or by bank drafts. Eligibility The age and term limits for looking out a personal pension plan area:

Minimum Maximum Maximum Maximum Minimum Maximum term term age age of age of age of entry retirement retirement RP 10 SP 5 RP 40 SP 15 RP 18 SP 35 60 50 70

What if I need money (Loan)? There is no facility for loans against this contract. Tax benefits Tax benefits described in Section 80 CC of the income tax act are applicable (up to Rs. 10,000) Unit Linked Pension Plan
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The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs 1000.

Premiums
You agree to pay level premiums regularly, either quarterly, half yearly or annually, throughout the term of the policy or a single premium at the start of the policy. The minimum premium amount for regular premium mode is Rs. 10,000 each year and for single premium, it is Rs. 25,000. To facilitate increased investment, we allow additional single premium top-ups at any time. The minimum single premium top-up is Rs. 5,000. Premiums can be paid by cash, cheque or demand draft. Benefits At the chosen vesting date, the unitized fund value will be available to secure pension benefits. Subject to the prevailing regulations, part of this value can be taken in the form of a cash lump sum and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternatively, if it is permitted by the prevailing regulations, the proceeds net of any cash lump sum can be used to buy an annuity with any other insurance company who will accept such business. The current maximum limit for any cash lump sum is one-third of the unitized fund value on vesting. On death the unitized fund value will be paid along with a cash lump sum of Rs. 1,000. The beneficiary may use the proceeds to purchase pension benefits for the surviving spouse. Your basic benefits will be paid by cheque. Eligibility The age and term limits for taking out a Unit Linked Pension Plan are: (Years)

Mini mum term Regular premium 10

Maxi mum term 40

Minimu Maximu Minimu m age m age m age of entry of entry of investin g 18 60 50

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Maximu m age of investin g 70

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version Single premium version 5 40 18 65 50 70

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TAXATION TAX BENEFITS OF INSURANCE AND PENSION PLAN. Life insurance and retirement plans are effective ways of saving taxes. The tax breaks that are available under various insurance and pension policies are described below: 1. Life insurance plans are eligible for deduction under Sec. 80C. 2. Pension plans are eligible for a deduction under Sec. 80CCC. 3. Health riders are eligible for deduction under Sec. 80D. 4. The proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section. Tax Rates for Individuals The rates of income tax for FY 2005-06 are as follows:

MARKET SHARE & ITS COMPETITORS

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In India there are total 22 insurance companies are existing and the name of few companies and its market shares are listed below: NAME OF INSURANCE MARKET SHARE IN % COMPANIES LIC 72.15 HDFC SLIC 3.88 ICICI Prudential 5.91 Birla Sun Life 2.6 Bajaj Allianz 1.62 Tata AIG 1.5 SBI Life 1.19 Aviva 1.8 Max New York Life 2.4 Kotak Mahindra 1.9 ING vysya 1.2 AMP SANWAR 1 Met Life 1.4 Others 1.45

Competitors
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There are total 22 insurance companies in India out of which LIC is the only public Ltd. Company & is also very good competitor to all the insurance company. The top ten companies are LIC, ICICI Prudential, HDFC SLIC, Bajaj Allianz, SBI Life, Reliance Life insurance, Birla Sun Life, MAX New York Life, Kotak Mahindra and Aviva Life Insurance. HDFC SLIC faces a very stiff competition with its other players like LIC, ICICI, etc. Some of the competitive features are as follows: Large amount of competition (22 players in the market) 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 private insurance company Short term plans available only at large premium Lack of awareness about the unit linked funds in the market The market share of HDFC is 3.88% & LIC is 72.08% as LIC is a public company it is the major competitor for all the other 21 insurance company in India. Most of the market concentration is occupied by LIC.

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LIFE INSURANCE CORPORATION OF INDIA (LIC)

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 has total 25 plans, and it could diversify its product portfolio. It could add more plans for high worth individuals and women.

ICICI PRUDENTIAL
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
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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. 8,000 is charged. Hence the policies are not accessible to the lower strata of the society.

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. The Aditya Birla Group has a turn over close to Rs. 33,000 crores with a market capitalization of Rs. 53,400 crores (as on 31st March 2007). It has over 72,000 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$343 billion, as on 31st March 2007. The company is a leading player in the life insurance market in Canada. Being a customer centric company, 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 520 crores as on 31st July, 2007. Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100years of age. There are guaranteed returns of 3% p.a. net of policy charges after every 5 years from the eleventh
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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 ALLIANZ
Bajaj Allianz is a joint venture between Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, a trusted automobile manufacturer for over 55years 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 05 06. It is leading by 78 crores. It has experienced a whopping growth of 216% in the last financial year. The company has sold 13, 00,000 policies and is backed by 550 offices across India. It offers travel insurance, motor insurance, home insurance, health and corporate 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.

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TATA AIG
Tata 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.

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COMPETITIVE ANALYSIS
HDFC Pension plan Vs BIRLA Flexi Secure Life Retirement Vs Bajaj Allianz Unit Gain Vs LIC Bima Plus
Features HDFC Pension Plan BIRLA Flexi Secure Life Retirement 18-60 years 18-60 years Bajaj Allianz Unit Gain 0-60 years LIC Bima Plus 12-55 years 10 years

Age Term

Sum Assured

10-30 years Minimum Choice Term of 10 rests with years the consumer with a mini mum premium payment term of 3years Only 5, 10, Minimum Minimum 20(age Sum Sum based) Assured is Assured is multiples Rs. 50,000. 5 times the are allowed Zero Death premium as Sum Benefit is paid. Assured. also available.
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Maximum limit up to Rs. 2 lakhs.

Survival Benefit

Death Benefit

Higher of Death sum during the assured or first 6 value of monthsunits. 30% of SA + value of units, next 6 months60% of SA + value of units. Death after 1st year- SA + value of units. Death during the 10th year105% of SA + value of units. Withdrawal No partial No partial Partial or Premature Benefit withdrawals withdrawals complete withdrawal are are withdrawal allowed available. available. at bid price after one rd after 3 year (after
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Value of units partly in cash partly converted to annuity. Value of units, no sum assured is given.

Unit Value Value of Bid Value is used to fund at Bid of the fund purchase an Price. units. annuity. Value of units in this case the sum assured is zero.

Contributio n/ Premium Flexible Contributio n Investment Options

Surrender value

applying bid-offer spread). Contd.. Minimum Minimum Minimum: Minimum: Rs. : Rs. : Rs. Rs. 10,000 10,000 p.a. 10,000 5,000 p.a. p.a. p.a. Available Not Only an Not available available increase in contributio n is allowed. 7 fund Nourish, Equity Balanced, options- Growth fund, Debt Secured & Risk Liquid and fund, fund, Enrich Balanced Stable fund & fund, Cash fund Secure managed fund, Defensiv e managed fund, Balanced fund, Equity & Growth fund. The Surrender A selling/ Partial surrender is purchase surrender up to
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year.

is 25% of 3 years of regular premium. No charges after 3 years.

Top-up

Switch

available from the first year itself. In the 1st year surrender charges are 75%, in the 2nd year the charges are 50%, in the 3rd year the charges are 25% Available Available with a , with a minimum minimum top-up of top-up of Rs. 5,000 Rs. and 10000 maximu m of 20% of sum assured. 24 2 free switches switches are free. every year. Every additional
47

price spread of 5 % will be applicable from the 3rd year onwards.

50% of bid value of units allowed after 3 years from the date of commencement s.

Available

Available (charges: 1.5% of the top-up)

Three free switches every policy year. Subsequen

No free switches. Cost of switching is 2% of the fund value.

INJ BUSINESS SCHOOL Greater Noida

switch will be charged at 0.5% of the switch amount.

t switches would be charged @1% of switch amount or Rs. 100, whichever is higher. Charges: Not st 1 yeardisclosed nd 70%, 2 year- 2%, 3rd year 1%, no charges from the 4th year onwards. Not applicable

Initial charge

Charges: 1st year27%, 2nd year- 27%, 3rd year onwards1%

Admin charge

Admin charges of Rs. 180 fixed charge p.a. Fund Least in the management industry charges 0.8% of the fund p.a. Bonus units Available

Charges: 20% of the initial premium in the first year and 2% of the premium from the 2nd year onwards. Policy admin fee of Rs. 20/ month

Annual admin charges of 1.25% p.a. of net assets A fund Annual based fee investment of 2.25% charge of p.a. of the 1% p.a. of policy fund fund Not Not available available
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1% of the fund per annum Available

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Comparison of Childrens plans

Company MinFund Minimum Death Max Allocation Premium Benefit Age Charges
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Minimum Partial Surrender Premium Maturity Benefit Withdrawal Value Payment (year) (year) Term

Life Insured: 21-50 Smart Step yrs, plus child: 3 mnths15 yrs

Life Insured: 20-60 Smart Kid yrs, Maxima child: 0-15 yrs

Life Headstart Insured: Future 18-60 Protect yrs, child: 0-17 yrs

100% of sum assured. Company will pay all future premiums at one 1st yr: time. 100% 26%-30% Accumulated After Family value amount till 3 yrs completion Rs. 20000 2nd yr after 10th income maturity date. of 5 yr onwards: yr benefit 2% rider ensures a regular income every year (5% of sum assured). Accumulated 1st yr: amount till 15% 100% of maturity date. 2nd yr: After sum 10% 100% assured. completion of After 3rd yr: 8% 10yrs, every 3 or 5 value completion Rs. 12000 Company 6th yr yours yrs after 5th 4th yr to 5 of 5 yr will pay Accumulated yr th yr: 6% all future value will be 6th yr premiums. added with onwards: 60% of total 4% premium paid. Rs. 15000 1st yr: 100% of Accumulated 3 or 5 After 100% 18%-30% sum amount till yrs completion value 2nd yr: assured. maturity of 5 yr after 6%-14% Company date. 5th yr 3rd yr: will pay 4%-7% all future 4th yr premiums
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Life Insured: 18-50 Saral yrs, Children child: Plan 30 days13 yrs

Life Insured: Children 18-55 Fortune yrs, Plus child: 0-17 yrs

onwards: at one 0% time. 100% of sum assured. Company 1st yr to will pay 3rd yr: all future 17% Rs. 10000 premiums 4th yr at one onwards: time. 4% Riders are also available with this. 100% of sum 1st yr: assured. 29% Company 2nd yr to will pay 3rd yr: 5% all future 4th yr premiums Rs. 10000 onwards: as a lump 2.5% sum in 8th yr one onwards: stroke. 1% Riders are also available.

Accumulated amount till 100% After maturity date value 10 yrs completion with after of 3 yr guaranteed 3rd yr benefits.

Accumulated amount till 100% After maturity date value 3 yrs completion with after of 3 yr guaranteed 3rd yr benefits

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RESEARCH METHODOLOGY
Study The present investigation is a descriptive type of study undertaken to estimate the comparative study of pension plan of HDFC SLIC, BIRLA SUN LIFE, BAJAJ ALLIANZ, LIC. Sample size For the purpose of analysis a sample size of different companies were selected. The sample size taken was from some leader companies of the market. Sampling method The sampling method used for the project was Random Sampling. This type of sampling is also known as probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples. This procedure gives each item an equal probability of being selected.

CONCLUSION
HDFC 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
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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 unit linked concept must be specifically promoted. 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.

SUGGESTIONS Premium allocation charge (initial charge) should be reduced to provide customer with better return.

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 Policy administration charge should be reduced to gain more advantage in the market.

Surrender charges should be reduced. Create a positive perception about insurance.

Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher.

BIBLIOGRAPHY
www.hdfcinsurancei.com
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 www.irda.com www.LICindia.com www.birlasunlife.com

www.bima deals.com

www.google.com

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