1

INSURANCE
Definition:
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

Need for insurance:

The need for life insurance comes from the need to safeguard the family. Today insurance has
become even more important due to the disintegration of the prevalent joint family system, a
system in which a number of generations co-existed in harmony, a system in which a sense of
financial security was always there as they were more earning members. Times have changed
and the nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense
of insecurity is observed in it today besides, the family has shrunk. Needs are increasing with
time and fulfillment of these needs is a big question mark. How will we be able to satisfy all
those needs? Better lifestyle, good education, long desired house. But again - we just cannot
fritter away all our earnings; we need to save a part of it for the future too - a wise decision.
This is where insurance helps us. Ambitions etc are some of the reasons why insurance has
gained importance and where insurance plays a successful role.

History
India Insurance Company:
The concept of insurance is intimately related to security. Insurance acts as a protective shield
against risk and future uncertainties. Traditionally, a risk-averse behaviour has been a
characteristic feature of Indians who preferred a low & certain disposable income to a high
& uncertain one.
Hence insurance has become a close associate of Indians since 1818, when Oriental Life
Insurance Company was started by Europeans in Delhi to cater to the needs of their own
community. The age was characterized by intense racial discrimination as Indian insurance
policy holders were charged higher premiums than their foreign counterparts. The first Indian
Insurance Company to cover Indian lives at normal rates was Bombay Mutual Life Assurance
Society which was established in the year 1870.
By the dawn of the 20Th century, new insurance companies started mushrooming up. In order
to regulate the insurance business in India and to certify the premium rate tables and periodic
valuations of the insurance companies, the Life Insurance Companies Act and the Provident
Fund Act were passed to regulate the Insurance Business in India in 1912. Such statistical
estimates made by actuaries revealed the disparity that existed between Indian and foreign
companies.
The Indian Insurance Sector went through a full circle of phases from being unregulated to
completely regulate and then being partly deregulated which is the present situation. A brief
on how the events folded up is discussed as follows:
The Insurance Act of 1938 was the first legislation governing all forms of insurance to
provide strict state controls over insurance business.
In 19th January, 1956, the life insurance in India was completely nationalized through the Life
Insurance Corporation Act of 1956. At that time, there were 245 insurance companies of both
Indian and foreign origin. Government accomplished its policy of nationalization by acquiring
the management of the companies. Bearing this objective in mind, the Life Insurance

Corporation (LIC) of India was created on 1st September, 1956 which has grown in leaps and
bounds henceforth, to become the largest insurance company in India.
The General Insurance Business (Nationalization) Act of 1972 was formulated with the
objective of nationalizing nearly 100 general insurance companies and subsequently
amalgamating them into four basic companies namely National Insurance, New India
Assurance, Oriental Insurance and United India Insurance which have their headquarters in
four metropolitan cities.
The Insurance Regulatory and Development Authority (IRDA) Act of 1999 deregulated the
insurance sector in India and allowed the entry of private companies into the insurance sector.
Moreover, the flow of Foreign Direct Investment (FDI) was also restricted to 26 % of the total
capital held by the Indian Insurance Companies.

Some of the important milestones in the life insurance business in

India are:
1912:

The Indian Insurance Companies Act enacted as the first statute to regulate the

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:

Indian and foreign insurers and provident societies taken over by the central

government were 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.

Size:
Insurance is an Rs.400 billion business in India, and together with banking services adds
about 7% to Indias GDP. Gross premium collection is about 2% of GDP and has been
growing by 15 - 20% per annum. India also has the highest number of life insurance policies
in force in the world, and total investible funds with the LIC are almost 8% of GDP. Yet more
than three-fourths of India's insurable population has no life insurance or pension cover.
Health insurance of any kind is negligible and other forms of non-life insurance are much
below international standards.
To tap the vast insurance potential and to mobilize long - term savings we need reforms which
include revitalizing and restructuring of the public sector companies, and opening up the
sector to private players. A statutory body needs to be made to regulate the market and
promote a healthy market structure. Insurance Regulatory Authority (IRA) is one such body,
which checks on these tendencies. IRA role comprises of following three functions:
a. Protection of consumer's interest.
b. To ensure financial soundness and solvency of the insurance industry, and
c. To ensure healthy growth of the insurance market.
An insurance policy protects the buyer at some cost against the financial loss arising from a
specified risk. Different situations and different people require a different mix of risk-cost
combinations. Insurance companies provide these by offering schemes of different kinds.
Unfortunately, the concept of insurance is not popular in our country.
As per the latest estimates, the total premium income generated by life and general insurance
in India is estimated at around a meager 1.95% of GDP. However, Indias share of world
insurance market has shown an increase of 10% from 0.31 in 1996-97 to 0.34% in 1997-98.
India's market shares in the life insurance business showed a real growth of 11 % thereby
outperforming the global average of 7.7%. Non-life business grew by 3.1% against global
average of 0.20%. In India insurance spending per capita was among the lowest in the world

at $7.6 compared to $7 in the previous year. Amongst the emerging economies, India is one of
the least insured countries but the potential for further growth is phenomenal, as a significant
portion of its population is in services and the life expectancy has also increased over the
years.
The nationalized insurance industry has not offered consumers a variety of products. Opening
of the sector to private firms will foster competition, innovation, and variety of products. It
would also generate greater awareness on the need for buying insurance as a service and not
merely for tax exemption, which is currently done. On the demand side, a strong correlation
between demand for insurance and per capita income level suggests that high economic
growth can spur growth in demand for insurance. Also there exists a strong correlation
between insurance density and social indicators such as literacy with social development,
insurance demand will grow.

Objectives of the study

To evaluate the customer awareness with regard to different HDFC Standard Life insurance
policies
To identify the satisfaction level of the customers with respect to the various criterias like
modes of payment, level of returns, amount of premium and so on...

Scope of the study:

The study is confined to Delhi city and to the HDFC Standard Life insurance company.

RESEARCH METHODOLOGY
Questionnaire - The research instrument used is a questionnaire. The
questionnaire has more close ended questions as the study was specific.
Through the questionnaire, the measurement of the customers level of
satisfaction and awareness would be easier.

SAMPLE SIZE:
The customers data needed for the survey was collected from the companys web site. The
address of 100 respondents was given to me who resided in different parts of Delhi. Since the
respondents resided in different part of Delhi and in different locations or areas, I had to
divide the survey as North, South, East and West. Hence, I have conducted the survey on the
available data.

DATA COLLECTION:
Primary data collection tool - Questionnaire were administered to
respondents to study the name, occupation, income, needs, risks,
awareness and satisfaction level of the customers.
Secondary data collection tool - Secondary data is gathered from
numerous sources. The secondary data is collected from the internal
research such as trade journals, insurance journals, general library
research sources, internet, company web sites (green page).

SAMPLING FRAME:
In this research, 100 respondents were selected in Delhi city such as in Vikaspuri. They were
approached, given a brief explanation about the study and the purpose of the study. The

respondents were then asked to fill a questionnaire with 20 questions including the basic
details which had more close ended questions than open ended, so that the respondents can
easily fill the questionnaires.
The purpose of this research is to gain in-depth knowledge of customer awareness and the
factors that influence their satisfaction level.

SAMPLING METHOD:
The selection of the respondents is based on the non-probability sampling where selected
samples were as per the convince. As the sample is selected as per the convince and it has
become a purely a nonprobability research.

SAMPLING TECHNIQUE:
The technique used in the questionnaire was simple attitude scaling and category scaling
techniques.
Population - The information is generated from respondents in Delhi city such as Vikaspuri.
Sampling unit - Respondents were randomly selected for the purpose of the research.

LIMITATIONS OF THE STUDY

(a)

The study is confined to the city of Delhi such as Vikaspuri.

(b)

The findings of the study are based on the assumption that respondents have

disclosed accurate information.

(c)

The study was limited to 100 respondents of the company.

(d)

The information, data collected and analysed is restricted to the researchers

knowledge and ability.

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PROFILE

Incorporated in 1977 with a share capital of Rs. 10 cores, HDFC have since emerged as one of
the largest residential mortgage finance institution in the country.
HDFC operates through 75 locations throughout the country with its Corporate Head Quarters
in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service
associates in Kuwait, Oman and Qatar.

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Standard Life is Europe's 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 19 th
century from its original Edinburgh premises, opening offices in other towns and acquiring
other Similar businesses.
Standard Life currently has assets exceeding over $119 billion under its management and has
the distinction of being accorded "AAA" rating consequently for the past six years by
Standard and Poor. They have assets under management which are worth more than the
market value of Sainsbury's Boots, Tesco, Cadbury Schweppes and Marks and Spencer
combined.
HDFC Standard Life insurance is backed by HDFC, the reputed housing financial institution
operating since several decades and Standard Life Assurance Company, one of the Europe's
largest mutual fund company. HDFC has 30000 crores of assets and Standard Life has $119
billion of assets so they can comfortably consider has safe as insurers.

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The Partnership

Your Family, Their Future, Our Help

HDFC are the main shareholders in HDFC Standard Life with 61.63% stake while Standard
Life owns 35%. The company is one of the top three performing companies in the industry.
They have tie ups with various banks like Indian bank, Union bank and Kochi based JRG
Financial Services Pvt. Ltd. On its bank assurance tie up with Union Bank of India, the bank
has been selling HDFC Standard Life products across the country through its branches.

HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market. In January 1995, it was clear from the outset that both company shared
similar values and beliefs and a strong relationship quickly formed. In October 1995, the
company signed a 3-year joint venture agreement. Around this time Standard Life purchased a
5% stake in HDFC, further strengthening the relationship. The next 3 years were filled with
uncertainties, due to changes in government and ongoing delays in getting the IRDA
(Insurance Regulatory and Development Authority) Act passed in parliament. Despite this
both companies remained firmly committed to the venture. In October 1998, the joint venture
agreement was renewed and additional resources were made available. Around this time
Standard Life purchased 2% of Infrastructure Development Finance Company Limited
(IDFC).

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Standard Life also started to use the services of the HDFC Treasury department to advice
them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore, in
January 2000 an expert team from the UK joined a handpicked team from HDFC to form the
core project team, based in Mumbai.

In a further development, Standard Life agreed to participate in the Asset Management

Company promoted by HDFC to enter the mutual fund market. The mutual fund was
launched on 20th June 2000.

Incorporation of HDFC Standard Life Insurance Company

Limited:
HDFC Standard Life Insurance Company Limited was the first company to be granted license
by the IRDA to operate in Life Insurance sector. Each of the JV player is highly rated and
been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA.
Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poor's.
The company was incorporated on 14th May 2000 under the name of HDFC Standard Life
Insurance Company Limited.
Their ambition as far back as October 1995 was to be the first private company to re-enter the
life insurance market in India. On the 23 of October 2000, this ambition was realized when
HDFC Standard Life was the only life company to be granted a certificate of registration.
HDFC are the main share holders in HDFC Standard Life, with 61.63%, while Standard Life
owns 35%. Given Standard Life's existing investment in the HDFC group, this is the
maximum investment allowed under current regulation.

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HDFC and Standard Life a long and close relationship built upon shared values and trust. The
ambition of HDFC Standard Life is to mirror the success of the parent companies and be the
yardstick by which all other insurance companies India are measured.

Service:
It has employed well-equipped and trained consultants to whom question can be asked for any
policy purchased or any other queries.

MISSION OF THE COMPANY

The company aim is 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

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

VISION OF THE COMPANY

The most successful and admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards
in the industry.

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The most obvious choice of all.

VALUES OF THE COMPANY

SECURITY: providing long term financial security to its policy holders will be co's constant
endeavor. It will be doing this by offering life insurance and pension products.

TRUST: Co appreciates the trust placed by its policy holders in it hence; Co will aim to
manage their investments very carefully and live up to this trust.
INNOVATION: recognizing the different needs of customer, Company will be offering a range
of innovative products to meet these needs.

Strategic objectives of the insurance companies:

As a leading insurance company, we are committed to providing the best possible service for
our clients. Since the establishment of the company, we have set a number of long term
strategic goals.
We are keen to achieve. On top of our goals is to build a strong loyal customer base that we
always try to enrich by providing the best services at competitive costs. We have broadened
our range of services over the years, in order to reach out for more customers and meet their
precise needs.
One of the main objectives of the company is to maintain a stable financial position in the
market along with a stable growth in capital over the years.
To be able to compete in a fast emerging market, we have to keep up with needs of our clients.
Our

services

are

updated

according

to

their

demands.

Innovative services were presented according to the needs of the new market. We try to cover
as many sectors as possible using our long experience in the insurance field.
Finally, our achievements and clients speak for us, which proves that we are on the right track.

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ORGANISATION STRUCTURE OF THE BRANCH OFFICE I

WORKED:

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Branch manager is the head of the branch under whom the whole branch office is dealt with.
Next to the branch manager is the business development managers of 1 or 2 of them. The
sales development manager falls under business development manager but is accountable to
branch manager only. Below the business development manager and sales development
manager are the financial consultants who are not the employees of the company but the
agents who give the business. Operational officer and the agency support officers are the staff
members employed to maintain the inner transactions and to keep account of all the receipts
and payments. Even they are accountable to the branch manager only.

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Table showing the various individual products offered by HDFC

Standard Life Insurance company:
Plan
Savings series
Endowment Assurance Plan

Benefits

Unit Linked Endowment plan

Life Insurance and savings with choice of

investment in funds

Children's plan

Financial Security for your child

Money Back plan

Life Insurance with Savings

Unit linked young star

Life Insurance and savings with choice of

investment in funds

Investment Series
Single Premium Whole Of Life plan

Protection series
Term Assurance plan

Life Insurance with Savings

Investment with life insurance

Life Insurance at an affordable price (i.e.

high risk cover with low premium)

Retirement Series
Personal Pension Plan

Savings for retirement

Unit Linked Pension Plan

Retirement savings
investment in funds

with

choice

of

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THE VARIOUS GROUP PRODUCTS OFFERED BY HDFC

STANDARD LIFE:
Group Term Insurance:

HDFC Standard Life offers a Group Insurance scheme for companies called "Group Term
Insurance". This product has been designed to offer innovative features and a high degree of
customization.

Gratuity Plan:
The HDFC gratuity plan is an insurance policy. Which offers you, as an employer and gratuity
scheme trustee, a new and flexible way to fund your gratuity liability? The contributions that
you decide to invest in this policy will assist you in meeting your gratuity obligations in a
systematic manner.

Leave Encashment Plan:

The HDFC leave Encashment plan is a flexible insurance policy, which helps employers, and
leave encashment scheme trustees in funding leave encashment obligations without the
employer's profit and loss account being unexpectedly impacted.

Development Insurance Plan:

This product is well suited for the economically weaker sections of society and caters
specifically to their needs. It makes available life cover at affordable rates.

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Rider:
Rider is not a basic plan offered by the company it is an additional benefit given by receiving
additional premium with the basic plan's premium

Riders Offered By the Company:

1) Critical illness benefit (CI)
This rider pays an additional sum assured on happening of the 6 specified critical illnesses,
along with the sum assured of the basic plan.

2) Additional term benefit (ATB)

Additional Term benefit provides additional sum assured on death during the term of this rider
along with the sum assured of the basic plan.

3) Accidental death benefit (ADB)

This rider pays one extra sum assured on death due to accident.

4) Waiver of premium benefit (WOP)

As the name indicates, this rider waives of future premiums on disability of the policyholder.

5) Accelerated sum assured (ASA)

This rider accelerates the payment of the basic sum assured on happening of critical illness (6
specific illnesses).

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VARIOUS PRODUCTS AND OTHER FEATURES:

Savings Series Endowment Assurance Plan:

This plan is with profits saving plan and is well suited for saving money for long term
financial goals. This plan also provides the needs of a family in the absence of incoming
earning capacity of a family (unfortunate death of earner) by paying out a lump sum in the
event of unfortunate death of policy holder during the term of the policy

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 of the policy.
The lump sum mentioned is the basic Sum Assured plus any bonus addition.

The Riders Allowed Under the Plan:

Critical Illness Benefit (CI)

Additional Term Benefit (ATB)

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Accidental Death Benefit (ADB)

Waiver of premium benefit (WOP)

Payment options:
Payment of premium can be done either in yearly, half yearly or quarterly modes, depending
on the convenience.

Benefits:
On maturity basic sum assured + Reversionary bonus + Terminal bonus (if any) is paid.
On death basic sum assured + Reversionary bonus + Terminal bonus (if any) is paid along
with the rider benefits if any.
Allowed to: single life as well as joint life first claim basis Eligibility:

Basic policy

Rider

options

with

corresponding

eligibility ages chart

Min age at entry
Max age at entry
Max age at expiry

Terms:
Minimum: - 10years
Maximum: - 30years

12
60
75

CI
18
55
70

ATB
18
60
75

ADB
18
55
65

WOP
18
50
60

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UNITLINKED ENDOWMENT PLAN:

MARKET- linked insurance plans (MLP) are fast becoming popular HDFC plans plays a
lump sum either on death or maturity but the returns are directly linked to the underlying
investments.

Term period

Age at entry

Maximum
maturity

Option
Life option
Life
and

Min
10
health 10

option
Extra life option
10
Extra life and death 10
option

Max
30
30

Min
18
18

Max
60
55

7
65

30
30

18
18

55
55

70
65

age

at

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MONEY BACK PLAN

The plan has a 5 investments options- liquid fund, secure managed, defensive managed,
balanced, and growth fund.

SWICHING OPTIONS:
Policy holder can have the option to switch between funds and also redirect future premiums
into a different fund.

PREMIUM ALTERATION:
Premium levels can be either reduced or increased .if regular premium have been paid for 3
years or the policy value is at least Rs.15, 000.

WITHDRAWALS:
Withdrawals can be made from the fund any time provided the balance does not fall below the
SA.

CHARGES:
The charge is lower compared to other plans. You can pay minimum premium in the first 2
years and subsequently increase them. the charges in the subsequent years are substantially
lower, even on top ups, moreover, you will not be charged for altering your premium, switch
between funds redirecting your premium into other.

CHILDREN'S PLAN

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FEATURES:
The plan can be taken those in the 18-60 age groups with the maximum age at maturity being
75. The minimum and maximum terms are 10 & 25 respectively. Under this plan, the payer of
the premium is the life insured and child is the beneficiary. Children's plan is design to
provide a lump sum to the child at maturity. It also provides financial security to the child in
the future, incase of insured person's unfortunate death during the policy term. Policy receives
simple reversionary bonuses, which are usually added annually. This is a flexible plan with
three options to choose from. depending on the requirements they are:

Maturity Benefit Plan:

If the life insured die during the term of the plan. The future premiums are waived and the
policy continues till maturity.
On maturity, the beneficiary will receive the sum assured and the accumulated bonuses.
Bonuses under the plan are of reversionary in nature and are on sum assured.

Accelerated benefit plan:

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If the life insured dies during the term of the plan. The beneficiary will receive the sum
assured and the accumulated bonuses immediately and the policy terminates. Bonuses under
the plan are of reversionary in nature and are on sum assured.

Double benefit plan:

If the life insured dies during the term of the plan. The beneficiary will receive the sum
assured and the accumulated bonuses immediately and the policy continues till the date of
maturity. The future premiums are waived on maturity, the beneficiary will receive another
sum assured and the accumulated bonuses. Bonuses under the plan are of reversionary in
nature.
This plan helps you plan for future anticipated expenses by paying a periodic cash lump sum
to you at regular intervals

Features:
Payment of cash lump sum, each of which is a proportion of the basic sum assured at a 5 year
intervals during the term of the policy.
On survival up to maturity, a payment equal to the basic sum assured plus any bonus addition
less the cash lump sum paid earlier is provided.
In case of the unfortunate death of the life assured with in the term of the policy, the basic
sum, assured plus any bonus addition is provided. This is a cover and above the earlier pay
outs.

OPTIONAL BENEFITS:

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The following optional benefits can be added to customize the policy to suit the personal
needs.
Critical illness benefit
Additional term benefit
Accident death benefit
Waiver of premium benefit.

Eligibility:
Min, age at entry 12 years
Max age at entry 60
Max age at expiry 75 years
Min term

10 years

Max term 30 years Payment options

Payment of premium can be done either in yearly, half yearly or quarterly modes, depending
on the convenience.
SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN FEATURES:

A sound investment: the money is invested in their with profit funds. A compound
reversionary bonus is declared for the policy every year and added to the policy on its
maturity.

Flexibility of term: even after choosing the policy, you can decide on the policy term.

Surrender value: the policy can be terminated any time, after it has been in force for at least 6
months. And receive a surrender value.
In case of unfortunate death: the nominee gets the sum assured secured by your premium.
Plus any attached bonus.

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No medical benefits: no medical test is required for this plan

Eligibility:
Min, age at entry 18 years
Max, age at entry 70 years

Payment options:
A single premium can be paid by cheque, cash or demand draft.

Indicative premium:
Minimum sum assured Rs.25, 000
Maximum sum assured Rs.5.00.000
Premium 950 per thousand sum assured

PROTECTION SERIES

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TERM ASSURANCE PLAN

Under this plan sum assured is payable in case of death of the assured during the tern of the
contract. One can choose the lump sum that would replace the income lost to one's family in
the unfortunate event of one's death. Since this is non participating (with profits) plan is a pure
risk cover plan. No benefits are payable on survival to the end of the term of the policy.

Optional benefits:
Critical illness benefit
Accident death benefit
Accelerated sum assured benefit
ELIGIBILITY:

Basic policy

policy with optional benefits

Min, age at entry

18

18

Max, age at entry

60

55

Max age at expiry

65

65

Payment option:
Payment of premium can be done either in yearly, half yearly or quarterly modes or a single
one time premium depending on the convenience.

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LOAN COVER TERM ASSURANCE:

This plan provides a lump sum on the unfortunate death of the life assured during the term of
the policy. The lump sum will be a decreased percentage of the initial sum assured, as the
outstanding loan decreases as per the loan schedule, the cover under the policy schedule.

Eligibility:

Min, age at entry 18 years

Max, age at entry 55 years

Max, age at expiry65 years

Payment option:
Payment of premium can be done either in yearly, half yearly or quarterly modes, or a single
one time premium depending on the convenience.

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RETIREMENT PLANS

PERSONAL PENSION PLAN:

This plan is basically savings contract, which is designed to provide an income for life from
retirement.
Eligibility:
Min, age at entry RP -18

sp -35

Max, age at entry 60

Min, age at retirement 50
Max, age at retirement 70

Surrender value:
You can surrender the policy at any time. if premiums have been paid continuously for at least
3 years. The surrender value will be subject to a guaranteed minimum.

Unit Linked Pension Plan

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The unit linked pension plan is a 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.

Funds which can be chosen:

Liquid fund
Secured managed fund
Defensive managed fund
Balanced managed fund

Eligibility:
Min, age at entry RP-18 SP-18 Max age at entry
Min, age at retirement 50
Max, age at retirement 70

RP 60

SP-65

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Tax Benefits:
Tax benefits under various sections of the Income Tax Act, 1961 are as follows:
Plan

Tax Benefits

Endowment Assurance

Sec. 88, Sec. 80D** and Sec. 10 (10D)

Children' s Plan

Sec. 88 and Sec. 10 (10D)

Money Back

Sec. 88, Sec. 80D** and Sec. 10 (10D)

Single Premium Whole Of Life

Sec. 88

Term Assurance

Sec. 88, Sec. 80D** and Sec. 10 (10D)

Loan Cover Term Assurance

Sec. 88, Sec. 80D** and Sec. 10 (10D)

Personal Pension Plan

Sec. 80 CCC

** Applicable to premiums paid for Cl, WOP and ASA.

** Applicable to premiums paid for Cl, WOP and ASA.

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DATA ANALYSIS AND INTERPRETATION

FOLLOWING TABLES AND BAR DIAGRAMS SHOWS THE SATISFACTION LEVEL OF
THE CUSTOMERS IN DIFFERENT PARTS OF DELHI:
TABLE SHOWING THE SATISFACTION LEVEL OF THE HDFC CUSTOMERS:
SATISFIED
UNSATISFIED
NO RESPONSE

NORTH
65%
30%
5%

SOUTH
72%
20%
8%

EAST
84%
10%
6%

WEST
78%
15%
7%

Table no: I
FIGURE SHOWING THE SATISFACTION LEVEL OF THE CUSTOMERS:

Figure no: I
Inference:
84% of the HDFC customers residing in the east region of Delhi are more satisfied than any
other regions pertaining to the Delhi region. And at the same time the 30% of the customers
from the north region are more unsatisfied than any other region of Delhi.

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TABLE SHOWING THE AWARENESS OF THE DIFFERENT HDFC POLICIES TO

THE CUSTOMERS:

NORTH

SOUTH

EAST

WEST

AWARE

56%

75%

90%

92%

NOT AWARE

40%

15%

4%

1%

NO RESPONSE

4%

10%

6%

7%

Table no: II
FIGURE SHOWING AWARENESS OF THE DIFFERENT HDFC POLICIES TO THE
CUSTOMERS:

Figure no: II

Inference:
92% of the HDFC customers residing in west region of Delhi are more aware than any other
regions pertaining to the Delhi city. And at the same time 40% of the customer in the north
region are mainly not aware compared to other regions of Delhi.

36

TABLE SHOWING THE BASIS OF RETURN KNOWN TO THE CUSTOMERS:

NORTH

SOUTH

EAST

WEST

KNOWN

50%

48%

30%

52%

UNKNOWN

35%

50%

60%

40%

NO RESPONSE

15%

2%

10%

8%

Table no: III

FIGURE SHOWING THE BASIS OF RETURN KNOWN TO THE CUSTOMERS:

Figure no: III

Inference:
52% of the HDFC customers residing in west region of Delhi know the returns from their
policy, more than any other regions pertaining to the Delhi region. And at the same time the
60% of the customers from the east region are not aware of the returns they get from their
policy, being the most when compared to other regions of Delhi.

37

TABLE SHOWING THE AWARENESS ON THE PAYMENT OF PREMIUMS ON DUE

DATES TO THE CUSTOMERS:

AWARE

NORTH

SOUTH

EAST

WEST

93%

96%

96%

93%

NOT AWARE
NO RESPOND

1%
7%

1%

3%

4%

6%

Table no: IV
FIGURE SHOWING THE AWARENESS ON THE PAYMENT OF PREMIUMS ON DUE
DATES TO THE CUSTOMERS:

Figure no: IV
Inference:
96% 0f the HDFC customers residing in east region of Delhi know the due dates of premiums
they pay for the policy they own, more than any other regions pertaining to the Delhi city.
And 1% of the customers in the south region are not aware of the due dates of premium they
are supposed to pay to the policy they own compared to other regions of Delhi. But in
common almost all the customers are aware of the amount they are supposed to pay every
year.

38

TABLE SHOWING THE BASIS OF MODE OF PAYMENT OF PREMIUM:

CASH
CHEQUE
DEMAND
DRAFT
INTERNET
PAYMENT
SYSTEM
ECS MODE

NORTH
32%
55%
0%

SOUTH
23%
68%
0%

EAST
12%
75%
0%

WEST
19%
80%
0%

2%

0%

3%

0%

11%

9%

10%

1%

Table no: V
FIGURE SHOWING THE BASIS OF MODE OF PAYMENT OF PREMIUM:

Figure no: V
Inference:
80% of the HDFC customers pay the premiums in cheque and cash. Its only a small
percentage pay the premium through internet mode of payment and ECS mode. And none of
them prefer to pay through demand draft since they have to pay the D.D. charges.
TABLE SHOWING A COMPARITIVE ANALYSIS OF ALL THE ABOVE CRITERIAS:

39

SATISFACTION
LEVEL
AWARENESS
TOWARDS THE
POLICIES
RETURNS
KNOWN
AWARENESS
OF PAYMENT
OF PREMIUM
DUE DATES
MODE OF
PAYMENT

SATISFIED/AWARE/KNOW
N/CHEQUE
74.75%

UNSATISFIED/NOTAWAR
E/UNKNOWN/ECS MODE
18.75%

78.25%

15%

45%

46.25%

94.5%

0.5%

69.5%

7.75%
Table no: VI

FIGURE SHOWING A COMPARITIVE ANALYSIS OF ALL THE ABOVE CRITERIAS:

Figure no: VI
Inference:
The satisfaction level of the customers is 74.75% and the unsatisfied level of the customers is
18.75%, this is mainly because of the mode of payment that is available is not satisfactory to

40

the customers. Most of the customers who pay through cheque or by cash have to pay the
premium by going to the company itself. At the same time, the customer awareness towards
the payment of premium due dates and awareness towards the returns they get from the
policies they own are interlinked. Customers are aware of the due dates but concerned to the
returns, they are not aware where their premium amount will be invested by the company and
how they are going to give the returns back to them. The customers who own a policy must
know whether their premium amount is a purely market linked, or 50% of market linked or
purely an insurance.
Though 45% of customers know the actual returns which they will get from their policies,
46.25% of them dont know the actual returns which they might get on the maturity date of
their policy. This shows that the rate of unknown customers with respect to their returns is
higher than the rate of customers who know their actual returns.
Though 78.25% customers are aware of the policy they own and the premium due dates, there
are many customers who pay the premium with fine of Rs. 250. This is mainly due to the
customers busy hours which delays in the payment of premium on the due date and most of
them pay through cheque and cash which they have to come to the company and pay.

41

FNDINGS/OBSERVATIONS OF THE STUDY

74.75% of the customers are satisfied with the companys performance, but 18.75% of them
prefer easy mode of payment and premiums of fewer amounts which they are ready to pay
every month.
Though 45% of the customers know the returns they are going to get, 46.25% of them are not
aware of the actual returns they are going to get which is due to the unawareness of the
companys method of generating the amount.
94.5% of the customers know the due date of payment of premiums but due to their busy
hours they are not able to come to the company and pay the amount on date.
69.5% of the customers pay the premium through cheque.
78.25% of the customers are aware of the different policies in HDFC but 15% of them dont
even know the features of the policy they own.

General findings
There are no specific policies for the students and retired people.
The reasons for not buying insurance policy or unsatisfaction in customers show that the
company should make effort to convenience people of their reliability and long-term existence
which also satisfies the existing customers.
Most of the customers have purchased the policy for the tax benefit, this perception has to be
changed by educating them and offering them beneficial short investment plans where the
returns are known to them at the time they purchase the policy.

42

SUGGESTIONS AND RECOMMENDATIONS

18.75% of people prefer premiums of lower rate; hence for rural sector new policies with low
premiums can be implemented to tap the rural market.
46% of the customers do not know their returns from the investments they have made;
therefore, it is necessary for the company to provide the customers the details of their
investments and the tools and techniques used by the company to generate the returns.
The returns should be specified even in case of market link policies.
The bonus amount that will be declared on their policy every year should be informed to
customers. Also the companys declaration details of bonus amount should be made available
to the public in order to attract more customers.
69.5% of the customers pay the premium through cheque, but they still prefer ECS mode in
order to avoid late payment and lapsation of the policy. Hence the company can facilitate the
customers to pay the premium every month in the banks with which they have their daily
transactions.
94.5% of the customers know the due dates of the premium payable yet it is necessary to
remind them on regular intervals regarding their premium due date by E-Mails, post cards,
telecalls, etc; because due to their busy hours they may forget the exact due date.
15% of the customers are not aware of the different policies and its features, HDFC Standard
Life should create more awareness campaigns to the public regarding different policies and its
features through various media.

43

General suggestions

HDFC Standard Life can come up with new policy for younger that is also for the students
and for retired people.
Company can target various sub-urban and rural population by coming up with policies for
farmers.
HDFC Standard Life can bring awareness of Life insurance among college students by
organizing seminars on life insurance at colleges.
Insurance agents (financial consultants) are best salesmen. Companies should train them to
build and sell the products because they are the one who makes policyholder to pay regularly
by trying to fulfill their needs and demands.
Tie-ups with corporate companies and institutions to provide policies to their employees
would create a better recognition & profit in the market.
It should advertise about all its product features in all the available media based on the
consumer target group.

44

CONCLUSION
As per the study, many customers are unaware of the returns on their investments and also
since in the current market we notice that lot of fly-by operators exist in the market, the
customers are normally worried about their investments as well as the companys existence
for a longer period. To subside these worries the HDFC Standard Life has to assure its
customers of their existence or stability in the market and its also very much necessary to
inform the customers about the returns they generate on their investments year on year. The
company should also actively take measures to ensure the customers have enough knowledge
about the products offered by HDFC Standard Life insurance. Understanding the customers
mindset and customization of some of the product features or the mode of payments with
respect to individual customers focus would benefit the company in the long run.

Future line of work:

A survey/research can be conducted based on the satisfaction of customers after receiving
claims against the policies of HDFC Standard Life purchased by the consumers.
Since my study covered only the awareness and satisfaction of HDFC Standard Life insurance
products, a further research could be done to analyze the customer satisfaction with regards to
the claims against the life insurance policies taken from HDFC Standard Life insurance.
This would benefit HDFC Standard Life Insurance to understand not only customer
satisfaction with regards to claims against its policies but also to understand the customer
perception and expectations which would help the organization to fine-tune or improvise the
claim handling process.

45

BIBILOGRAPHY

Websites:
www.hdfcinsurance//costumers.asp/insuranceproducts (last accessed on 28/07/16)
www.irda/indianinsurancemarket.ME6/product (last accessed on 29/07/16)
https://cc.hdfcinsurance.com/ccrevampapp/ams/Presentation/View/Root/Home.aspx?sid=0
(last accessed on 13/08/16)
http://www.policybazaar.com/life-insurance/life-insurance-india.aspx

(last

accessed

08/09/16)

http://www.articlesbase.com/insurance-articles/compare-buy-life-insurance-in-india-780631.html (last accessed on 28/07/16)

Books:

Pandey, I.M.; Financial Management, Vikas Publisher, New Delhi; 2010

on

46

ANNEXTURE:
QUESTIONNAIRE:
HDFC STANDARD LIFE INSURANCE:
To evaluate the customer awareness and satisfaction towards different policies of HDFC
standard life insurance at Delhi
PERSONAL DATA
1. NAME:
2. AGE

3. SEX
4. QUALIFICATION

5. DESIGNATION
6. MARITAL STATUS

PLEASE TICK THE APPLICABLE

1. Since when are you the customer of the company?
a) <1 year
b) 1year<2 years
c) 2years<5years
d) Five years or more
2. What is the premium amount you are paying annually?

47

a) 12000 and more

b) More than 25000
c) 50000 and more
3. Were you given information about all the different policies available at the time you
purchased the policy?
a) Yes
b) No
4. If yes, are you satisfied with the company?
a) Yes
b) No
5. Are you satisfied with the policy you own?
a) Yes
b) No
6. How many policies do you have in our company?
a) 1
b) 2
c) 3
d) More than 3

7. Do you think the customer need is properly judged by the company?

a) Yes
b) No
8. If yes, how do you rate the judgment?
a) Satisfactory
b) Average

48

c) Non satisfactory
9. What is your total annual income?
a) <2,00,000
b) 2,00,000-3,00,000
c) 3,00,000-6,00,000
d) 6,00,000 & above
10. Does the company remind you at the time of renewal date of your policy?
a) Yes
b) No
11. How do the employees react for your queries?
a) Excellent b) Good c) Average d) Fair e) Poor
12. How frequently you are contacted by Company?
a) Yearly
b) Half-Yearly
13. What type of service system do you prefer?
a) Personal
b) Telephone
c) On line internet system
14. Is proper feedback given to you for your queries?
a) Yes
b) No
15. How do you prefer the mode of payment of premium?
a) Cheque
b) Demand Draft

49

c) Internet payment system

d) ECS mode of payment
e) Cash
16. Are the benefits received by your policy attractive and preferable?
a) Yes
b) No
17. Is the returns from your policies confirmed to you?
a) Yes
b) No
18. If you have received any compensations & rewards; is it given to you in time as
specified at the time of purchasing the policy?
a) Yes
b) No
19. Your opinion about the company:
a) Average
b) Good
c) Very good
d) Still to improve
20. Do you like to be called for the meetings from the company?
a) Yes
b) No
Suggestions if any:

SIGNATURE