WINTER TRAINING REPORT

ON

“A COMPARATIVE STUDY BETWEEN ING VYSYA LIFE INSURANCE AND HDFC STANDARD LIFE INSURANCE”

Submitted in the Partial Fulfillment of the Requirement for the award of the Degree of

Master of Business AdministrationBatch 2008-2010

FACULTY GUIDE: SUBMITTED BY:DR. VIVEKA NAND SINGH HEMLATA DHYANIFaculty – MBA department MBA – IVth Sem. N.A.M., Dehradun NAM – Dehradun

NIMBUS ACADEMY OF MANAGEMENT, AFFILIATED TO UTTRAKHAND TECHNICAL

UNIVERSITY, DEHRADUN

ACKNOWLEDGEMENT

A dissertation is never the work of an individual; it is a combination of views, ideas,

suggestions, contribution & imprints of many people. Therefore one of the plesant parts

of writing report is the opportunity one gets to thank those who have contributed towards

its fulfillment.

I thank to my guide Dr. Vivekanand Singh (Faculty of Finance Management, NAM,

DEHRADUN) for his valuable contribution.

Thanks are also due to various employees of the company and to the respondents for their

co-operation during the research.

Last but not least I would like to thank each & everyone who directly and indirectly

helped me in completion of the project successfully.

DECLARATION

I here by declare that Dissertation report entitled “Finance Management” and the topic of

“ A Comparative Study of ING VYSYA LIFE INSURANCE and HDFC STANDARD

Life Insurance “at Dehradun is prepared by me, submitted in partial fulfillment of the

requirement for the degree of M.B.A., NAM, Dehradun is my original work and not

copied from any other source or project submitted for the similar purpose.

The information is collected from primary and secondary data.

Date: (HEMLATA DHYANI)

Place: Dehradun

PREFACE

The topic of my Dissertation is “A Comparative Study between ING VYSYA Life

Insurance and HDFC Standard Life Insurance”. The objectives of my project are to

compare life the ING VYSYA and HDFC Standard Life insurance and to find out the

customers opinion about the both companies with analyzing the insurance market.

In insurance scenario, there is a huge competition between the private and public sector

due to privatization. Among the private players there is a high degree of competition

exist. The companies facing the realities of a saturated market. The private companies are

looking outwards and now concentrating on emerging market of India.

To achieve my objectives, I conducted a survey through the questionnaire covering close-

ended questions. I also took the help of secondary data and the old reports in the library,

which helped me to understand the insurance scenario. I did the analysis of data on the

basis of different parameters.

The dissertation gave me a great learning experience. It is really a value addition to me as

per the knowledge is concerned.

TABLE OF CONTENTS

Page No.

Introduction

Company Profile of ING VYSYA Life Insurance

Company Profile of HDFC Standard Life Insurance

Research Methodology Problem formulation Research objectives Research design Source of data collection Data collection method Sampling method Sampling size Area of study

Limitations of the Study

Analysis and Discussion

Conclusion

References

Appendix

INTRODUCTION

INSURANCE

The basic concept of insurance is to build a common fund from the premiums by policy.

The fund undertakes to financially safeguard the policy holders against the untimely

death, loss of earning capacity and other things like purchase of house, land etc.

The financial distributed among all the policyholders. Insurance lays the foundation of

financial security against the “uncertain certainty” of death. With insurance, one can leave

behind what one has planned to save and not just, what one has actually saved.

E.g., the following illustration will explain how insurance work:

In a village, there are 400 houses. Each build at a cost of 1,00,000. Every year fire breaks

out And four houses are destroyed in the fire. If the villagers build a common fund, with

each house contributing Rs. 100 fund will have a collection of Rs.4,00,000 every year.

Thus, the houses, which are destroyed, can be easily rebuilt

CLASSIFICATION OF INSURANCE

Types of insurance

Life insurance Non-life insurance

Whole Life Insurance Term Insurance Variable Life Insurance Universal Life Insurance

Miscellaneous Insurance

Fidelity Guarantee Insurance Crop Insurance Burglary Insurance Flood Insurance Cattle Insurance Cash in Transit Insurance

General Insurance

Marine Insurance Fire Insurance Personal Accident Insurance Vehicle Insurance

Life Insurance

Life insurance is a contract whereby the insurer in consideration of premium either paid

in lump sum or in periodical installments undertakes to pay an annuity or certain sum of

money on the death of the insured or on the expiry of a certain number of years,

whichever is earlier.

1] Whole life insurance

This policy protects the insured until death or until the premiums are properly paid. This

plan also provides savings. It builds cash value that the policyholder is entitled to even if

the policy is cancelled. From the policy perspective of the insurance companies, whole

life policies generate periodic (half yearly, quarterly) premiums that can be invested until

the policyholder’s death at which time benefits are paid to the beneficiary. The amount of

premiums is generally fixed.

2] Term insurance

Term insurance is a temporary plan, providing insurance only over a specified term and

does not build cash value for policyholders. The premiums paid represent only insurance

and not savings. The policyholders must compare the cash value of whole life insurance to

their additional costs to determine whether it is preferable to term insurance. Those who

prefer to invest their savings them selves would like to opt for term insurance.

3] Variable life insurance

Under variable life insurance the benefits awarded by the life insurance company to the

beneficiary very with the assets backing the policy. Until 1948, the premium payments on

variable life insurance were constant over time. However, flexible life insurance has been

available since 1984 allowing on the size and time of payments.

4] Universal life insurance

It combines the features of term and whole life insurance. It specifies a period of time over

which the policy will exist but also builds cash value for the policyholders over time.

Insurance is accumulated from the cash value until the policyholder uses those funds.

The premium payment is divided into portions. The first is used to pay the death benefit

identified in the policy and to cover any administrative expenses. The second is used for

investment and reflects savings for the policyholder. The internal revenue service forbids

the value of these savings from exceeding the policy’s death benefit.

The life insurance policies offered in India are generally of the following types:. Money back

Pension

Woman

Child insurance

Disabled

Whole life

Endowment

Group insurance

Non Life Insurance

General Insurance

General insurance includes property insurance liability insurance and other forms of

insurance. Fire insurance and marine insurance are strictly called property insurance.

Motor theft fidelity and machine insurance includes the extent of liability insurance to a

certain extent. The strictest from of liability insurance is fidelity insurance, whereby the

insurance compensates the loss to the insured when he is under the liability of payment to

the third party.

1] Marine Insurance

Marine Insurance is a contract of insurance under which the insurer undertakes to

marine adventure. It may cover loss or damage to ship, cargo, freight, vessels, or

any other subject of a marine adventure.

2] Fire Insurance

Fire insurance is a contract or agreement between the insurer and the insured whereby

the insurer undertakes to indemnify the insured for destruction of or damage to

property caused by fire or other specified perils during an agreed period of time, in

return for payment in lump sum or by installments

3] Motor Vehicle Insurance

Motor vehicle insurance falls under the classification of general insurance. This

insurance is becoming very popular and its importance increasing day by day. In

motor insurance the owner’s liability to compensate people who were killed or

insured through the negligence of the motorists or derivers is passed on to the

insurance company. The rate of premium under motor insurance is standardized

because the business is tariff.

4] Personal Accident Insurance

Personal Accident Insurance is one of the contract of insurance, it provides an

absolute protection against death or disability arising solely and directly from

accident caused by violent external and visible means.

Miscellaneous Insurance

Miscellaneous insurance took the present shape at the later part of ninteenth century

with the industrial revolution in England. Accident insurance, fidelity insurance,

liability insurance and theft insurance were the important form of insurance at that

time. Loyds’s Association was the main functioning institution. Now insurance such

as cattle insurance, Crop insurance, Profit insurance, etc are taking place. The scope

of general insurance is increasing with the advancement of the society.

1] Fidelity Guarantee Insurance

Fidelity Guarantee Insurance falls under the classification of miscellaneous class of

insurance. This is the type of contract of insurance and a contract of guarantee to

which general principles of insurance apply. Fidelity Guarantee does not mean the

guarantee of the employee’s honesty. But it guarantees the employer for any damage

or loss resulting from the employee’s dishonesty or disloyalty. The insurer is liable to

compensate the said loss to the employer as prescribed by the contract.

2] Crop Insurance

A contract of crop insurance is a contract to provide a measure of financial support to

farmers in the event of a crop failure due to drought or flood. This insurance covers

against all risks of loss or damages relating to production of rice, wheat, millets, oil,

seeds and pulses etc. and also insurance of all crops against all risks of loss or

damages has been found beginning in our country so far.

3] Burglary Insurance

Burglary Insurance falls under the classification of insurance of property. In the case

of burglary policy, the loss or damages of household’s goods and properties and

personal effects due to theft, larceny, burglary, house-breaking and act of such nature

are covered. The actual loss is compensated.

4] Cattle Insurance

A contract of cattle insurance is a contract whereby sum of money is secured to the

assured in the event of animals like bulls, buffaloes, cows, and heifers. It is a contract

against death resulting from accident, disease and parturitions condition as the case may

be. The insurer usually undertakes to pay the excess sum in the event of loss.

5] Case in Transit Insurance

Case in Transit Insurance is one of the contract of insurance which falls under the

category of miscellaneous insurance covers compensation to the insured against any

loss in the event of money or cash being stolen from his business premises or while it

is being carried from or to bank. The crop of cash in transit insurance is important to

any business as large sum of money are drawn from banks to pay wages and to meet

the day-to-day expenses.

THE HISTORY OF LIFE INSURANCE

The story goes back to around 2100 BC, to the ancient civilization of Babylon and a

business Practice called ‘bottomry’. For all practice purposes a form of marine insurance,

bottomry enabled Ship owners to borrow money against their ship to pay for the trip.

With piracy rampant on high Seas, traders and seafarers were reluctant to sail other lands

for fear of their lives and goods. Bottomry gave them some semblance of security.

Insurance developed rapidly with the growth of British commerce organized, along the

way going through a period of defaults and closures. The British brought insurance to

India in 1818, replete with imperialist prejudices. The first Insurance Company in the

country was the Oriental Life Insurance, which insured only Europeans windows. British

insurance eventually began insuring Indian lives, but for a premium that payable by the

British. The insurance Act 1938 introduced state controls on insurance, but even this

failed to safeguard policyholder interest.

PURPOSE AND NEED FOR INSURACE

Assets are likely to be destroyed or made non-functional due to perils like fire,

Floods, breakdowns, lightning and earthquake.

Damage to assets caused by any perils is the risk that assets are exposed to.

Insurance becomes relevant only if there are uncertainties of occurrence of events leading

to Loss.

We can say that human life is an income generating assets which can be lost on early death

On the other hand, disabilities caused by accident.

Insurance does not protect the assets but only compensates the economic or financial loss.

ROLE OF INSURANCE IN INTRENATIONAL ECONOMY

Insurance plays an important role in not only in national economy but also in international

economy. Marine cargo insurance for example, provides risks coverage for shippers and

importers and the banks, which finance international trade. This role becomes all the more

important in the context of active government policy to encourage exports. Indian

Insurers operate in more than 30 countries through agencies, branches and subsidiary

companies. These operations earn foreign exchange and represents invisible exports. The

U.K. insurers for example earn more premium overseas than from their domestic

operations. The Indian insurers have also had an international presence through an active

reinsurance exchange programs with insurers in over 100 countries. Another dimension of

international insurance found in regional co-operation is reinsurance. Asian Reinsurance

Corporation (of which India is a member) with head quarter in Bangkok, Thailand is one

example. Large industrial and infrastructural project set up in India through joint ventures

or otherwise, with overseas finance need tailor made specialized insurance covers.

ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

Investments are necessary for economic development

Life insurance plays a major role in mobilization of public savings.

Savings out of life insurance funds are utilized in investments for growth.

Looking to general insurance business, industry, trade, would be seriously

handicapped in the absence of insurance cover relating to fire and engineering

risks.

The World Insurance Scenario and India’s Place in it

The Indian insurance market is far behind many countries and has still to make up a lot of

leeway in the global context, is clear from the information presented below.

In 1999, insurance companies wrote US $2,324 billion in premiums worldwide, an

increase of 7.3 per cent over the previous year and 4.5 per cent after adjustment for

inflation. Of the total, Us $912 billion was generated by non-life business, an increase of

1.2 per cent after inflation; and US $1,412 billion was from life premiums, an increase of

6.9 per cent after inflation. In 2000, the figures were US $2443.7 billion, made up of US

$1,521.3 in the life segment and US $922.4 in the non-life segment. This represented a

growth of 9.1 per cent and 2.7 per cent respectively. However, the development of the

insurance market demonstration wide regional disparities. The global insurance business

is concentrated in the industrial countries of North America, Western Europe, Japan and

Oceania. Together these countries account for 91.3 per cent of global premiums. On a

global average, the equivalent of 7.5 percent of the gross domestic product is spent on

insurance. At US $3,103 per capital, the outlay for life insurance. At US $3,103 per

capita, the outlay for life insurance is the highest in Japan. While the Swiss spend the

most on non-life insurance. In 2004, the above – mentioned developed countries

accounted for 90.7 percent of global premiums. Again, with a per capita premium of US

$3,165, the Japanese continued to be the highest savers of life insurance and the Swiss. In

most countries, the non-life business registered either a negative or only modest growth,

mainly because of the downward trend in commercial growth. Life insurance has growth

more than non-life with a growth rate of 6.9 per cent .Its premium income registered a

stronger increase both over the previous year and over the long-term average trend of the

last 10 years. In fact, life insurance experienced a boom outside Asia. It was appreciably

higher than global economic growth. This has been because of low interest rates. Rather,

concern about the state pension provision has increasingly proved to be an important

growth engine in private life insurance. At global level, the premiums in North America

and Europe expanded at a rate that above the average of the previous 10 years, while the

emerging markets generally developed at a slower pace than the long-term trend. The

positive developments in North America and Europe can be attributed to the boom in life

insurance. Japan, in contrast, had to contend with a renewed setback, the reasons for this

are to be found not only in economic stagnation, but also in declining consumer

confidence triggered by insolvencies and the guaranteed interest rate.

According to Mr. G. N. Bajpai*(2002):

The drivers of growth of life insurance business were private pension provisions in the

USA and Western Europe along with index linked policies buoyed by the stock market

rallies up to mid –2000. The upswing is also attributable to a dramatic rise in the single

premium business since the year 1995. The volatility of single premium business is likely

to introduce capriciousness in the otherwise steadily growing life insurance industry.

Further, according to him growth drivers of the non life insurance business were a robust

global economy and recovering from financial crists. The China, Hong Kong / Taiwan

regions registerd growth rates in excess of 10 per cent .however, it is noteworthy that in

spite of good growth and reporting fewer major losses, the earning of the industry

remained lackluster. Although growth in the emerging markets since1980 has been

subject to greater fluctuations than in the industrialized countries, it has also been

significantly higher (9.8 percent compared to 4.9 percent). In the emerging markets, the

fastest growing were south and East Asia, where more than half of the premium volume

in the emerging markets was generated in 1999.In absolute terms, the industrialized

countries continue to clearly dominate the global insurance market with a share of

premiums in life and non – life insurance business. This far exceeds their 15 percent

share of the global population or 77 percent share of the gross domestic products (GDP).

Insurance density (premium per capital) is markedly lower in most emerging markets

compared to industrialized countries, being around US $40 on average. There are never

toeless, great differences between the markets, with premium expenditure of over US

$1,000 per capita and were thus comparable to industrialized countries.

That India occupies a very low place in this scenario is seen from the figures presented

below. The present per capita spending on insurance (life and non – life put together) in

India is $8.5(2.4non – life and 6.1 for life) per year as against $68.6 (56.7 and 11.8) in

brazil; Chile $163.0 (48.7 and 114.3); UK $3,244.3 (741.5 and 2,502.8); Japan $3,908.9

(805 and 3,103.4); south Korea $ 1,022.8 (262.3 and 760.5); china $13.3 (5.0 and 8.3);

Malaysia $140.4 (62.3 and 78); and south Africa $490.9 (77.9 and 413.0). It will thus be

seen that India is way behind many other countries in this respect also.

INDIA AND THE WORLD MARKET

The last decade has been sometime a frustrating, but mostly an eventful period for the

industry. Unfortunately, despite the progress achieved by the insurance industry in India

It compares unfavorably not just with the developed countries, but also even with the

developing world. Thus, of the global insurance market worth an the astronomical $2,

324 billion in 1999, [the summation of all premium payments] with the US accounting

for almost one-third and Japan a 21.29 per cent share India accounted for a pathetic 0.36

per cent share and was the world 23rd biggest insurance market. There was no perceivable

improvement in 2000-2001. The global market for life insurance is estimated to be

around $1, 412.3 billion. The Indian market, at $6 billion is just 0.43 percent of that the

non-life global market is placed at $911.7 billion. Of this, the Indian market was about

$2.3 billion in 1999, which was just 0.25 per cent of the world market. The situation

remained much the same in the sub –sequent year. Again, of the 1 billion people in India

only about 35 million are covered by insurance. The share of insurance funds in

household financial savings in India reached 12.8 per cent in 2000-2001. The share of life

insurance in household saving was 12.2 per cent during the same period. The country’s

life insurance premium was a mare 1.5 per cent of the GDP, compared to 11.6 per cent in

South Korea. In the non-life segment, India is even weaker at 0.6 per cent. Several factors

account for this situation. Low disposable income is of course one important reason. One

account of the low awareness voluntary protection coverage seeking behavior is rare even

in the middle – class.

FUTURE SCENARIO OF THE INSURANCE SECTOR IN INDIA

The size of the existing insurance market is very large and is growing at the rate of 10%

per year. The existing potential of the Indian insurance market in terms of premium was

$80 billion [Rs. 344000 crores] in the year 1999. Only 10% of the market share has been

untapped. Only a large number of insurers can tap this vast potential. To serve 100 crore

of population, Indian insurance market offers. Tremendous opportunities to prospective

insurers and can easily sustain about 100 insurers. Hence, the regulator should issue

licenses to a large number of insurers if the insurance market has to growth fast. With

increase in life span of individual and disintegration of the joint family system, each

individual has now arranged insurance cover for himself and for the family. Hence,

coverage of insurers, which was around 7% in 1999, has now been growing at a very fast

rate. In fact, all the citizens in the middle class, estimated around 350 million can afford

insurance from their own financial resources, the remaining population has to be given

subsidized insurance with the help of government and insurers. The huge life fund can be

utilized for financing the infrastructure industry as well as a support to other industries in

the country. Hence, insurance industry is likely to play a key role in changing economic

landscape of the country. However, the success of insurance industry will primarily

depend upon meeting the rising expectation of the consumers who will be the real king in

the liberalized insurance market in the future.

BENEFITS OF GLOBALIZATION

In this age of global integration, no country can operate in isolation because in every

economic, social and political activity, there is considerable interdependence between

countries. A greater integration of the market with the rest of the world is accelerated by

the breakdown of geographical barriers to the movement of capital across countries. Each

country, therefore, operating in the international norms and behaviors essentially,

globalization brings benefits to all participating countries. The host country becomes a

recipient of large foreign investment and foreign investors secure access to new and

developing markets. Several benefits then flow in either direction in terms of expanding

markets, improved products and services, new marketing and production technologies,

and newer concepts of management. So far, our participation in the global market in

virtually all sectors of the finical has been only at the margin and our insurance

institutions in particular have been relatively insured from world markets. Now, due to

the advantage of opening up that could accure to India, business has to operate beyond

the national boundaries. In the main, globalization will secure for India larger inflows of

foreign capital needed to sustain our GDP growth. in addition, new entrants with a

professional approach and state-of-the- art technology will revolutionize the market by

bringing about tremendous improvement in service. Moreover, global competitions will

help in building expertise with their best global practices.

NATIONALISATION OF LIFE INSURANCE IN INDIA

In 1956, life insurance business was nationalized and LIC of India came into being on.

1.9.1956. The government took over the business of 245 companies (including 75

provident fund societies) who were transacting life insurance business at that time.

Thereafter, LIC got the exclusive privilege to transact life insurance business in India.

Relevant laws were amended in 1999 and LIC’s monopoly right to transact life insurance

business in India came to end. At the close of financial year ending 31.3.2004, twelve

new companies were registered with the Insurance Regulatory & Development Authority

(IRDA) to transact life insurance businessperson in India.

PRIVATISATION

In the 90’s the government went on a reform being and started loosening controls on

Indian industry. In 1993, the govt. appointed the Malhotra committee, headed by former

RBI governor, R.N Malhotra to draw up a blue print for insurance sector reforms. The

panel submitted its report a year later, recommending privatization backed by stiff entry

guidelines and stringent regulation, to avoid a repeat of the pre-nationalization free.

OBJECTIVES OF LIBERALIZATION OF INSURANCE

The main objective for opening up insurance sector to the private insurance is:

To provide better coverage to the Indian citizens.

To argument the flow of long-term financial resources to the growth of

infrastructure.

The public sector insurance companies have not succeeded in extending the insurance

cover to all needy people of the country due to various reasons. Hence this onerous

responsibility has now has been entrusted to private insurers.

MALHOTRA REPORT 1994

Liberalization of the Indian market was recommended in a report released in 1994 by the

Malhotra Committee indicating that the market should be opened to p[private sector

competition, and the ultimate foreign private- sector competition.

PURPOSE OF COMMETTEE

To suggest the structure of the insurance industry to assess the strengths and

weaknesses of insurance companies in terms of the objectives of creating efficiency and

wide coverage of insurance services to have a variety of insurance products with a high

quality service and to develop an effective instrument for mobilization of financial

resources for development.

To make recommendation for changing the structure of the insurance industry, for

charging the general policy framework.

To take specific suggestions regarding LIC and GIC with a view to improve the

functioning of them.

To make recommendation on the role and functioning of surveyors, intermediaries like

agents etc.

To make recommendation on regulation and supervision of the insurance sector in

India.

To make recommendation on any other matter which are relevant for development of

the insurance industry in India.

The committee made a number of important and far-reaching recommendations

Government stake in the insurance companies to be brought down to 50%. All the

insurance companies should be given greater freedom to operate.

Private companies with a minimum paid up capital of Rs 1bn should be allowed

to enter the industry. No companies should deal in both life and general insurance

through a single entity. Foreign companies may be allowed to enter the industry in

collaboration with domestic companies.

The insurance Act to changed. The committee felt the need to provide greater

autonomy to insurance companies in order to improve their performance and enable to

act as independent companies with economic motives. For this purpose, it setting up

an independent regulatory body.

The LIC should use the MBA specialized in Marketing (a similar suggestion for

the GIC subsidiaries)

It suggested that settlement of claims were to be done within a specific period

with out delay.

The committee suggested that the federation of Insurance Institute, Mumbai

should start new courses for intermediaries of the insurance sector.

The committee has several recommendations on Product, Pricing, Vigilance,

system and procedures improving customer service and use of technology.

The committee insisted that the insurance companies should pay special attention

to the Rural Insurance Business.

Based on the above recommendations of the Malhotra committee the insurance

regulatory authority (IRDA) was set up in January 1996. The word “Development”

was added later and IRDA bill was passed.

INSURANCE REGULATOTRY and DEVELOPMENT AUTHORITY ACT 1999 (IRDA)

IRDA is a revolutionary piece of legislation. The IRDA was established to Regulate, promote &

ensure orderly growth of the life & general insurance Industry.

On 19th April 2000, the Authority has been notified in the Gazette of Indian terms of Insurance

Regulatory and Development Authority Act 1999.

Mission of IRDA

To protect the interest of the policyholders, to regulate, promote and ensure orderly growth of the

insurance industry for matters connected therewith or incidental there to.

The authority consists of the following members:

A chairperson

Not more than five whole time members

Not more than four part time members

The central government would appoint the members. The tenure of the chairperson and members

would be five years.

Functions of IRDA

To exercise all power seven function of controller of insurance.

Protection of the interest of the policyholders.

To issue, renew, modify, withdraw or suspend certificate of registration.

To prescribe method of insurance accounting to conduct inspection / investigation etc.

To regulate investment of fund & margins of solvency.

To adjudicate upon disputes.

To conduct inspection & audit of insurers, intermediaries & other organization concerned with

insurance.

PRIVATE INSURANCE OPERATING IN INDIA

At present there are 13 companies offering life insurance in India. Out of these 12 are

private insurance companies and one i.e LIC is state owned insurance company.

The twelve private companies that have entered the Indian market in the past three years

are as follows.

1) ING VYSYA Life Insurance

2) HDFC Standard Life Insurance

3) ICICI Prudential Life Insurance

4) Birla Sun Life Insurance

5) Allianz Baja Life Insurance

6) OM Kotak Life Insurance

7) SBI Life Insurance

8) Aviva Life Insurance

9) Met Life India Insurance

10) TATA AIG Life Insurance

11) Max New Life Insurance

12) AMP Sanmar Life Insurance

Sl. No Indian Partner Foreign Partner Specialization Permit Status

1 Vysya Bank ING Insurance (Netherlands)

Life Received License

2 HDFC Standard Life (UK) Life Received License3 Adidtya Birla

Group Sun Life (Canada) Life Received License

4 ICICI Prudential (UK) Life Received License5 Kotak Mahindra

FinanceOld Mutual (SA) Life Received License

6 Max India New York Life Life Received License7 Tata Group AIG (USA) Life Received License8 Bajaj Auto Allianz Life Received License9 SBI - Life Received License10 Sanmar AMP Life Received License11 - AVIVA Life Received License12 Met Life India - Life Received License

Facing the reality of a saturated market, the private companies are now looking outward

and concentrating on emerging market like India and China. Since the gestation period of

a typical insurance business is around ten years, it is high time to make their presence felt

in India. The new players will have to prove their creditworthiness. It will be time a

consuming and difficult task to win customers away from LIC and gain their trust. Their

record of accomplishment and brand value in overseas market will not help them much in

getting immediate brand recognition in India. Already, several companies have entered

into the market and a dozen companies have already jointed hands with foreign partners

(see table). The real growth in 21st century will come from countries like India and China.

Delay may doom future afford to stake a claim in these high potential markets.

Source: www.indaininsurance.com

CHALLANGES BEFORE INDUSTRY

Broadening the benefits

India has an amorphous middle class of 300 millions people who can afford to buy life,

health, Disability and pension plan products. Out of this 30% have insurance and that too

covers only 25% of their needs and financial capacity. The remaining 70%have no

insurance cover. The Life Insurance market in India therefore is practically untapped.

Since 1956, with the nationalization of insurance industry, the state-run Life Insurance

Corporation (LIC) has held the monopoly in the country. With around 600000 agents in

every nook and corner , it has created a viable brand name , particularly among the rural

population of the country .However on the qualitative side, it has very little to take pride

in and there lies the potential for foreign players to challenge this behemoth. As is typical

with a huge unionized, rigid workforce mostly in the clerical category. Technology used

is outdated.

After privatization of insurance sector, many private companies came in force. The

central bank had laid out a set of parameters to be met as on 31st March 2000.

A minimum net worth of Rs. 5 Billion.

A minimum capital requirement of Rs. 1 Billion (this is mandatory for any player in the

private sector ,including banks)

Entry through a joint venture.

A net profit of last three years.

Net non-performing assets that are “are reasonable”.

COMPANY PROFILE

OF

ING VYSYA LIFE INSURANCE

ING-VYSYA LIFE INSURANCE IN INDIA

ING - Vysya Life Insurance Company Private Limited (the Company) entered the private

life insurance industry in India in September 2001, and in a short span of 4 years has

established itself as a distinctive life insurance brand with an innovative, attractive and

customer friendly product portfolio ranging from protection, saving, retirement &

investment plans (selling through unique tool - Life Maker) and a professional advisor

sales force.

ING Group has wide and deep experience in setting up companies in new markets, which

require substantial investments underlining ING’s long-term commitment. In last 20

years ING Group has established successful life insurance companies in 15 countries

contributing to the development of insurance services in these countries successfully.It

has a dedicated and committed advisor sales force of over 11,000 people, working from

80 branches located in 70 major cities across the country and over 2,600 employees. It

also distributes products in close cooperation with the ING - Vysya Bank network. The

Company has a customer base of over 3,00,000 & is headquartered at Bangalore. In 2005,

ING - Vysya Life earned a total income in excess of Rs. 400 crore and has a share capital

of Rs. 440 crore. With an innovative, attractive and customer friendly product portfolio

backed by a professional advisor force, it proudly serving over 1,50,000 customers. It

Being part of the ING Group, the world’s 4th largest financial services group*, trusted by

60 million people across 50 countries, with a heritage of over 150 years. The Company

aims to make customers look at life insurance afresh, not just as a tax saving device but

also as a means to add protection to life. The one thing we hold in highest esteem is 'life'

itself. It believes in enhancing the very quality of life, in addition to safeguarding an

individual's security. Our core values are therefore defined as Professional,

Entrepreneurial, Trustworthy, Approachable and Caring. The Company’s portfolio offers

products that cater to every financial requirement, at any life stage. It believes in

continuously developing customer-driven products and services and value being

accessible and responsive to the needs of its customers.

In fact, the company has developed the Life Maker. A simple method that can be used to

choose a plan most suitable to a specific customer based on his needs, requirements and

current life stage. This tool helps build a complete financial plan for life, whether the

requirement is Protection, Saving, Retirement and Investment.

Mission

“To set the standard in helping our customers manage their financial future”.

Corporate Objective

ING - Vysya Life strongly believes that as life is different at every stage, life insurance

must offer flexibility and choice to go with that stage. They are fully prepared and

committed to guide you on insurance products and services through their well-trained

advisors, backed by competent marketing and customer services, in the best possible

way. It is their aim to become one of the top private life insurance companies in India and

to become a cornerstone of ING’s integrated financial services business in India. In short,

we are a customer – oriented company with a clear organization and strategy, which is

founded on value, based management. We have a strong position in mature markets

where we want to generate future growth through proper execution of our business

fundamentals (such as customer satisfaction and managing costs, risk and our reputation)

and we focus on growth in retirement services, direct banking and life insurance in

developing markets. That we try to offer our shareholders a higher return than the

average of our peers.

Managing Risk

Managing our risk and consequently the cost of capital is essential for stable, profitable

growth. Risk management support value creation by providing insight into the levels of

risk we can absorb compared with our earning power and capital base. Integrated risk

management (combining credit, market, insurance and operational risk into one common

view) is a key ingredient in our strategy. It allows us to create a clear overview of all

risks. Our ultimate goal of integrated risk management is to better align our risk taking to

our risk appetite. This allows ING to make optimal use of its capital base, leading to a

lower overall cost of capital

Managing Reputation

Integrity and reputation are two of ING’s most important assets. Our strong focus on

execution has resulted in greater emphasis on the importance of adherence to laws and

regulations. Regulatory compliance is essential because ING’s long- term relationships

with its clients depend on integrity and fairness. ING has a group wide compliance

policy. Senior management is accountable for compliance and integrated in their

performance targets and remuneration structure.

Growth

ING also continues to invest in business areas that have clear growth potential. We have

defined three main areas of growth: retirement services, direct banking and life insurance

in developing markets. ING has strong position in three businesses and intends to raise

further their profit potential by using the experience and capital gained in ING’s mature

business.

Life Insurance In Developing Markets

The company can build on an established presence in Asia/Pacific, Latin American and

Culture Europe. In Asia, the company has a great portfolio of businesses. The company

focuses on long-term relationship and strong alliance with banks in the region. In Culture

Europe, ING has been present from the start when their markets opened up to the West.

ING have a very broad presence there. Today, ING is the number one life insurer in the

region and is well positioned to benefit from the growth of these markets.

ING-VYSYA – BUSINESS PARTNERS

ING Vysya Bank Ltd., is an entity formed with the Vysya Bank Ltd, a premier bank in

the Indian Private Sector and a global financial powerhouse, ING (International

Nederland Group) of he Dutch origin, in the year 2002.

Partners A glance at our equity partners:

ING Group Vysya Bank

ING Group

ING Group is known for its philosophy of ‘keeping it simple’. This thought is the result

of ING Group’s 150 years of understanding of customers’ needs and fulfilling them.

ING is a global financial institution of Dutch origin. It has 150 years of experience, and

provides a wide array of banking, insurance and asset management services in over 50

countries and is trusted by over 60 million customers. Its 1,13,000 employees work daily

to satisfy a broad customer base – individuals, families, small businesses, large

corporations, institutions and governments. The ING Group has gone from strength to

strength year after year and is the world's 17th largest company. The ING Group is the

world's fourth largest financial services group* with over US $ 1 trillion in assets and

profits of US $ 8.5 billion in 2005.Over the last 150 years, ING Group has grown to

become one of the largest life insurance organizations in the world. Today it touches the

lives of millions of people across 50 countries.ING Group has wide and deep experience

in setting up companies in new markets, which require substantial investments

underlining ING's long-term commitment. In the last 20 years, ING Group has

established successful life insurance companies in 15 countries contributing to the

development of insurance services in these countries successfully.

Vysya Bank

The origin of the Vysya Bank dates back to 1930. Since then the Bank has grown

in size and stature and has reached the coveted position of number one private

sector bank in India. The Karur Vysya Bank Limited popularly known was such

one to be set up in 1916 by two great visionaries and illustrious sons of Karur, the

late shri Ma Vevkatarana Chettior and the late Shri Athi Krishna Chattier to

include saving habit and to provide financial assistance to traders and small

agriculturists in and around KARUR, a textile town in Tamil Nadu, it has now

spread its wings far wide with 234 branches and 5 extension counters in 11 states

and 2 union Territories the bank has been conducting its affairs with meticulous

care to be in conformance with all prudential norms and exacting statutory

regulations.

.

2003REVENUES

PROFITS PROFITS AS % OF…REVENUES I ASSETS

Rank $ millions $ millions

Rank % Rank % Rank

1. AXA FRANCE 111912 1137 7 1 17 0 162. ING GROUP NETHERLANDS 95893 4576 1 5 7 0 83. ASSICURAZIONI GENERALI

ITLAY 66755 1149 6 2 13 0 13

4. AVIVA BRITAIN 59719 1551 4 3 11 0 185. METLIFE U.S. 36261 2217 2 6 5 1 66. PRUDENTIAL BRITAIN 35473 340 15 1 18 0 187. AEGON NETHERLANDS 32175 2029 3 6 4 1 58. CNP ASSURANCDES

FRANCE 30806 659 13 2 12 0 14

9.PRUDENTIAL FINANCIAL

U.S. 27907 1264 5 5 8 0 11

10.CHINA LIFE CHINA 20782 32 20 0 20 0 2011.SAMSUNG LIFE

SOUTH KOREA 19159 277 16 1 15 0 12

12.OLD MUTUALBRITAIN

BRITAIN 17145 446 14 3 10 0 9

13.SWISS LIFE SWIZERLAND 16036 173 18 1 16 0 1714.SUNLIFE FINANCE

CANADA 15741 934 9 6 6 1 4

15.LEGAL & GENERAL GROUP

BRITAIN 15730 660 12 4 9 0 15

ING Group is the world’s second largest life insurance

Source: www.ingvysyains.com

.

RANKING OF ING VYSYA LIFE INSURANCE INFORTUNE 500-TOP 20 CORPORATE GROUPS IN THE WORLD

RANK REVENUES PROFITS ASSETS2003

2002

$ million % change from 2002

$ million rank

% change from 2002

$ millionrank

1 1 WAL-MART STORES

U.S. 263009.0 6.7 9054.0 12 12.6 104912.0 119

2 5 BP BRITAIN 232571.0 30.1 10267.0 8 50.0 177572.0 913 3 EXXON

MOBILU.S. 222883.0 22.2 21510.0 2 87.7 174278.0 93

4 4 ROYAL DUTCH/ SHELL GROUP

BRITAIN 201728.0 12.4 12496.0 5 32.7 168091.0 94

5 2 GENERAL MOTORS.

U.S 195324.0 4.6 3822.0 59 120.2 448507.0 36

6 6 FORD MOTORS

U.S 164505.0 0.4 495.0 300 - 304594.0 63

7 7 DAIMLERCHRYSLER

GERMANY

156602.2 10.7 507 298 (88.6) 224854.8 77

8 8 TOYOTA MOTORS

JAPAN 153111.0 20.4 10288.1 7 66.9 211852.7 80

9 9 GENERAL ELECTRIC

U.S. 1341187.0 1.9 15002.0 4 6.3 647483.0 25

10 14 TOTAL FRANCE 118441.4 22.2 7950.6 16 41.6 100859.7 12311 12 ALLIANZ GERMAN

Y114949.9 12.8 1828.9 131 1180543.1 3

12 15 CHEVRONTEXACO

US 112937.0 22.7 7230 20 538.7 81470.0 140

13 31 AXA FRANCE 111912.2 80.4 1137.4 187 26.8 566631.1 2914 36 CONOCOPHI

LLIPS U.S. 99468.0 70.4 4735.0 41 82455.0 139

15 20 VOLKWAGEN

GERMANY

98636.0 20.0 1239.3 176 (49.3) 150269.8 98

16 16 NIPPON TELEGRAPH & TELEPHONE

JAPAN 98229.1 9.6 5700.1 30 197.6 186809.9 88

17 17 ING GROUP NETHERLANDS

95893.3 8.8 4575.2 43 7.6 982287.2 12

18 13 CITIGROUP U.S. 94713.0 (6.0) 17853.0 3 16.9 12640312.0

2

19 19 INTERNATIONAL BUSINESS MACHINES

U.S. 89131.0 7.2 7583.0 18 111.9 104457.0 120

20 AMERICAN INTERNATIONAL GROUP

U.S. 81303.0 20.5 9274.0 10 68.0 678346.0 23

Source: www.ingvysyalife.com

ING VYSYA LIFE INSURANCE

SWOT ANALYSIS

STRENGTHS

ING VYSYA is the world’s second largest life insurance

company and ninth largest leading company..

Ranked seventeenth in Fortune 500 list of Global

companies.

The Fourth Largest Financial Services Corporation in

World, with assets exceeding Rs. 52, 00,000 Crores.

Competitive pricing strategies as compared to its

competitors.

WEAKNESS

Less awareness level among the customers about

insurance as a investment tool

Less numbers of branches.

Clients face problems to be insured due to large number

of formalities.

OPPORTUNITIES

Increasing purchasing power of the people

Favorable government policies and support.

Huge market is literally untapped. Out of estimated 320 Million insurable

peoples, only 20% are insured.

THREATS

For the Insurance sector government the IRDA body which is

undertaken record of accomplishment of all the companies and charge rules day by

day more rigid which is very difficult for the company?

Tough competition due to entry of new players and it is

increased day by day.

Weak perception of private players in the minds of Indian

people.

ING VYSYA

PRODUCT INTRODUCTION

ING _ VYSYA- BUSINESS (PRODUCTS) & FUTURE PLANS

ING Vysya (a group terminology) has 3 businesses in India, ING -Vysya Life Insurance,

ING -Vysya Bank and ING -Vysya Mutual Fund. ING -Vysya Bank is a premier private

sector bank with a 70-year heritage and 1.5 million satisfied customers. ING -Vysya

Mutual Fund is a mid sized asset management company with a retail investor focus.

PRODUCT CENTERED PLANS

At ING Vysya Life, there is nothing that hold higher than life itself. ING vysya therefore

view its plans not as tax saving devices but as a means to add protection to life. It

believes in enhancing the very quality of life, in addition to safeguarding its customer’s

security. Its products are designed in a way that helps customers bear heavy expenses

while building home or providing for their children's education and marriage. It makes

sure that post-retirement years are carefree and secure, ensuring family and loved ones

are protected against financial difficulties in the event of a premature death. Depending

on their personal needs, priorities and individual responsibilities, they can go for a

Protection, Saving or Investment plan. If a customer is not sure of which plan would suit

him best, he could use the Life Maker, an application developed for that very purpose.

Life Maker

The Life Maker, a tool that assists customers in building a complete financial plan for life

by helping them understand the basic needs for buying life insurance – Protection,

Saving, Retirement and investment.

Protection: First, life insurance helps protect customer’s income and their family’s

financial future in case he is not around.Conquering Life

Saving: second, life insurance works as a long term saving, thus giving financial strength

to achieve ones life goals. It also gives tax benefits.

Retirement: Third, life insurance makes sure that customer has regular income after he

retires and helps maintain standard of living.

Investment: Final, life insurance is safe, long-term investment, free from the risks of the

market swings. At the end of the term, customer or his family can enjoy added returns on

investments.

CHILD’S PROTECTION PLAN

Creating Life Child Protection Plan

What can this plan do for you?

This plan is perfect if you have small children. You can provide for their future by setting

aside a small portion of your current income. The money you set aside will help your

children pursue their dream even when you are not around to take care of them. Death cover

will provide immediate relief and the maturity benefit will come to your child at the right

time when they need it.

The Creating Life Child Protection Plan helps you ensure that your children’s future is

secure and prosperous, so they can pursue their dreams no matter what the future brings.

 Key Features

Guaranteed Maturity Benefits (Payment in case of Death and at Maturity)

Flexible Maturity Benefit Options

Built-in Waiver of Premium Benefit

Benefits

Guaranteed maturity benefits

The sum assured and the accumulated compound reversionary bonus are paid on

maturity. A final additional bonus based upon the performance of company is paid on

maturity.

Death Benefits

Your child will receive the sum assured in case of your death.

The policy continues even after the sum assured on death is paid.

 No premiums have to be paid after the death of the parent

whose life is insured (Built-in waiver of premium benefit).

Your child will be eligible for guaranteed maturity benefits.

Additional Benefits

Rider Benefits

Increase your coverage at a nominal extra cost by opting for any of our riders Term

Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider

and Waiver of Premiums Rider.

Loan Benefit After paying a premium for three years, you will be eligible for a loan.

Maturity Benefit

Your child can either receive a lump sum or receive the amount in 3 or 5 equal

installments after the maturity date.

Tax Benefits

Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance

plans and riders.

Look-in Period This is a 15-day period for you to go through the terms and conditions and decide upon

taking or canceling the policy.

Product Features

Eligibility Minimum entry age: 18 years

Maximum entry age: 55 yea

Maximum maturity age: 65 years

Premium Payment TermChoose premium paying terms of 10 - 25 years

Premium Payment OptionsAnnual, half-yearly, quarterly or monthly

Minimum Premium Payable Annual: Rs. 6, 000

Half-Yearly: Rs. 3, 000

Quarterly: Rs. 1, 500

Monthly: Rs. 750

RETIREMENT PLAN

BEST YEARS

WHAT IS THIS PLAN ALL ABOUT?

ING VYSYA Life Insurance “Best Years Retirement plan “gives you capital guarantee

while protection you from market swing. It also gives you an opportunity to investments

at a lower cost.

HOW DOES THE BEST YEARS RETIREMENT PLAN WORKS?

An ING VYSYA Life Lion will first help you in decline on a regular contribution to be

made every year, which will ensure an adequate pension on retirement at a vesting date of

your choice. You have the complete flexibility to decide the time, amount and frequency

of contributions you make each year.

All contribution will be transferred to your individual pension account (IPA) and

charges, as applicable, will then be deducted

The balance in IPA will be invested in the ING VYSYA Capital Guaranteed plan,

which is invested as follows.

The bonus interest will be in proportion to period for which the monies are

invested in the ING VYSYA Capital Guaranteed plan the year and will be credited to

your IPA on 31st of March each year.

MAIN BENEFITS

On your attaining the chosen vesting date, up to one-third of the benefit amount can

be withdrawn and it is tax free under section 10(10A) of the IT Act. The balance

amount will be utilized to purchase an annuity.

In case of death during the term, your spouse will have the following options in

respect of the benefits under the policy

In case there is no spouse, the benefit amount will be paid in lumpsum to the

nominee/legal heirs.

Balance in assured IPA is guaranteed on chosen date or on death.

The assured also have the flexibility

To choose the regular contribution to be made each year.

To invest additional amounts in the form of Top-up contributions.

To take up a contribution holiday when you are unable to meet the regular

contribution.

To start the pension when you wish.

To postpone your retirement date to make best use of market conditions.

To attach the term rider if you wish

Contributions made are eligible for tax exemption under section 80 ccc of the

income Tax Act.

OTHER FEATURES

ELIGIBILITY

Minimum entry age 18yrs

Maximum entry age 65yrs

Minimum deferment period 5yrs

Maximum deferment period 52yrs

Minimum vesting age 45yrs

Maximum vesting age 70yrs

Source: www.ingvysyains.com

LAPSE OF THE POLICY

IF assured is unable to meet the regular contributions in any year for any reason, the

policy will not lapse and will continue to exist and accrue benefits, based on the

investment performance of the ING VYSYA Capital Guaranteed Plan.

SURRENDER The policy can be surrendered for cash after 3 years. The surrender value will be the

accumulated balance in the IPA at the time of surrender less a surrender Penalty as

determined by the company from time to time. The guaranteed surrender value is 60% of

the balance IPA at the time of surrender.

COMPANY PROFILE OF

HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance

HDFC Standard Life Insurance Company is a joint venture between HDFC Ltd, India’s

Largest housing finance institution and Standard Life Assurance Company, Europe’s

largest natural life insurance company has Head Office in Edenbara (U.K.). It was the

first company to be granted a certificate of registration by IRDA on 3 rd of October

2000. Standard Life, UK was founded in 1825 and has experience of over 180 years’

companies. The company is rated as “very strong “ by Standards & Poor’s ( AA ) and

“Excellent” by “Moody’s”. HDFC Standard life’s cumulative premium income

included the first year premiums and renewal premiums are Rs 672.3 carores of the

financial year, April-November 2005. So far as the company has covered over

11,00,000 individuals and has declared 5th consecutive bonus in as many years for its

with profit policyholders.

History of the Company

Helping Indians experience the joy of home ownership. The road to success is a tough

and challenging journey in the dark where only obstacles light the path. However,

success on a terrain like this is not without a solution. As company was found out over

two decades ago, in 1997, the solution for success is customer’s satisfaction. All one

need is the courage to innovate, the skill to understand one’s clientele and the desire to

give them the best. Today, over a million satisfied customers whose dream HDFC

helped realize, stand testimonial to company’s success. Company’s objective, from the

beginning, has been to enhance residential housing stock and promote home ownership.

Now, HDFC is offering a range from hassle-free home loans and deposit products, to

property related services and a training facility.HDFC offer specialization financial

services to its customer base through partnership with some of the best financial

institutions worldwide.

Mission

The company aim to be the top new life insurance company in the market. This does

not just mean 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 the different customers.

Use of technology to improve service standards.

Increasing market share.

Values

Security Provides long-term financial security to the policy holders will be.

Our constant Endeavour, the company will be doing this by offering life insurance

and pension products.

Trust, the company appreciate the trust placed by our policyholders in us. Hence,

the company will aim to manage their investments very carefully and live up to this

trust.

Innovation, recognizing the different needs of the customers, the company will be

offering a range of innovative products to meet these needs.

The company mission is to be the best new life insurance company in India and these

are the values that will guide us in this.

The Partnership of HDFC & Standard Life:

The company was incorporated on 14th August 2000 under the name of HDFC Standard

Life Insurance Company Limited. Company ambition from, as far as back as October

1995, was to be the first private company to re-enter the life insurance market in India.

On the 23rd 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 shareholder in HDFC Standard Life, with 81.4% while Standard

Life’s existing investment in the HDFC Group, this is the maximum investment

allowed under current regulations. HDFC and Standard Life have 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 in India are measured.

Products and Services

In January 2000 an expert team from UK joined a hand picked team from HDFC to

from the core project team based in Mumbai. Around this time, Standard Life

purchased a further 5% stake in HDFC and a 5% stake in HDFC bank. In a future

development, Standard life agreed to participate in the asset management company

promoted by HDFC to enter the mutual fund market. The Mutual funds was launched

on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited

The company was incorporated on 14th August 2000 under the name of HDFC Standard

Life Insurance Company Limited. Our ambition from as far aback as October 1995 was

to be the first private company to renter the life insurance market in India. On the 23erd

of October 2000 this ambition was realized when HDFC Standard Life company to be

granted certificate of registration. HDFC are the main shareholder in HDFC Standard

Life 81.4% while Standard life own 18.6% given Standard Life’s existing investment

allowed under current regulations. HDFC and Standard life have 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 company’s in India are measured.

HDFC STANDARD LIFE INSURANCE

SWOT ANALYSIS

STRENGTHS

Adequate financial strength of the company.

Good Brand Image among customers.

Minimum charges for surrending policy.

HDFC is biggest Institution in the Banking Sector and financial sector in India.

WEAKNESS

Less awareness among the customers about the insurance as an investment tool.

Less numbers of employees.

HDFC Standard Life Insurance premiums are high in comparison of LIC.

HDFC Standard Life Insurance targeted in high-income group.

OPPORTUNITIES

Increasing buying power of the people.

Favorable government policies and support.

Increasing demand of the insurance.

Due to long experience in financial sector will give high priority to HDFC than other

new players.

THREATS

Entry of new players. And government policies

Tough completion from LIC.

Child and Pension plan are major plan of the HDFC Standard Life and 14 new

companies also launching their Pension and Children Plan.

PRODUCTS OF

HDFC STANDARD LIFE

INSURANCE

CHILDREN’S PLAN

WHAT IS CILDREN’S PLAN?

Children’s plan is designed to provide a lump sum, to the child at maturity. It also

provides financial security to the child in future, even in case of the insured parents’

unfortunate death during the policy term. Children’s 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

explain in the next section

The eligibility ages for the life assured under the plan are as follows:

Minimum Age At Entry 18 years

Maximum Age At Entry 60years

Maximum Age At Maturity 75years

Minimum Term: 10 years Maximum Term: 25years

Indicative Premiums

Child’s Current Age; 1year

Age of Parent(years)

Maturity BenefitPlan (Rs.)

Accelerated Benefit Plan (Rs.)

Double Benefit Plan(Rs.)

30 4,658 4,835 4,93735 4,684 4,929 5,07840 4,731 5,098 5,321

Source: www.hdfcstandardlife.com

The above quoted premiums are for a male life assured paying annual premiums for a Rs.

1 lack sum assured policy, with the policy maturing when the child is 21 years old. The

premium quoted above may very because of underwriting.

Child’s Current Age: 7years

Age of Parent(years)

Maturity Benefit Plan (Rs.)

Accelerated Benefit Plan (Rs.)

Double Benefit Plan (Rs.)

30 7,039 7,142 7,28235 7,063 7,196 7,39040 7,107 7,300 7,593

Source: www.hdfcstandardlife.com

* The above quoted premiums are for a male life assured paying annual premiums for a

Rs. 1 lack sum assured policy, with the policy maturing when the child is 21 years old.

The premium quoted above may very because of underwriting.

Policy Type Minimum Maximum Minimum Maximum Minimum Minimum

Regular premium

10 40 18 60 50 70

Single premium

50 15 35 60 50 70

PERSONAL PENSION PLAN

WHAT IS PENTION PLAN

The company understands the needs of its customers to build a secure future for them.

Hence, the HDFC Personal Pension Plan is an insurance policy that is designed to

provide a post retirement income for life with the freedom to choose their retirement

date.

You can choose your premium, the sum assured and your retirement date. At the end of

the policy term , you will receive the sum assured plus any attaching bonus , which will

provide you post-retirement income.

THE BENEFITS OF THE PLAN:

The plan provides a post retirement income in your golden years.

It gives you the flexibility to plan your retirement date.

It gives you tax benefits on your premiums.

BONUS

The plan receives Simple Reversionary bonuses, which are usually

added annually.

At the end of the term an additional Terminal Bonus may be paid,

depending on the performance of the underlying investment.

AGE AND TERM LIMITATION:

Policy typeTerm Period

(yrs)

Age at entry

(Yrs)Age at retirement (yrs)

Minimum

Maximum

Minimum

Maximum

Minimum

Maximum

Regular

premium

10 40 18 60 50 70

Single

premium

5 15 35 60 50 70

Source: www.hdfcstandardlife.com

BONUSES

The reversionary bonus is usually declared annually as a

percentage of the basic sum assured of your policy

The terminal bonus is sometimes added to a policy on vesting

and allowed the company to pay a fair share of with the profit fund, based on the

investment returns mortality and other experience over your policy plan.

BENIFITIARIES

On your chosen retirement (vesting) date, you will get the lump sum comprising the

sum assured plus any attaching bonus.

You can take up to 1/3 rd of your sum assured as a tax-free cash lump sum+.

The rest must be converted to annuity.

You can buy annuity fro another insurer also.

In case of unfortunate demise during the policy term, your nominee will receive the

following.

POLICY TYPEBENIFITS

BENIFITS

Demise with first year Demise after first year

Regular premium policy 80% of the premium paid Premium paid to date along with compound interest

calculated at 80% per annum.

Single premium policy 90% of the premium paid Sum assured + bonus declared to date.

Source: www.hdfcstandardlife.com

TAX BENEFIT

You will be eligible for Tax benefits under section 80C of the Income Tax.

SURRENDER THE POLICY

This plan is designed to provide you with the maximum

possible value over the longer term and the product features support this aim. If you

have paid premium continuously for 3 years, than the contract acquires a guaranteed

minimum surrender value.

For regular premium policies, the guaranteed minimum

surrender value including the value of any attaching bonuses is 50% of the

premiums paid subsequent to the first years in respect of the basic benefit,

excluding all additional premiums.

For single premium, policies, the guaranteed surrender value,

including the value of any attaching bonuses is 10% of the single premium paid in

respect of the basic benefit (excluding additional premiums).

TERM ASSURANCE PLAN

WHAT IS TERM ASSURANCE PLAN

Under this plan , a sum assure is payable in case of death of the life assured during the

term of the contract. One can choose the lump sum that would replace the income lost

to one’s family in the unfortunate death. Since this non- participating (with out profit)

plan is a pure risk cover plan, no benefits are payable on survival to the end of the term

of the policy.

Why Should You Buy This Plan?

If you have a family then you care for, you should consider what would happen in case

of your unfortunate death. The emotional void cannot be filled, but financial insecurity

can be a single life basis or a joint life (first claim) basis. The eligibility ages are as

follows:

AGEBASIC POLICY POLICY WITH ANY

OPTIMAL BENIFIT

Minimum age at entry

Maximum age at entry

Maximum age at expiry

18

60

65

18

55

65

Source: www.hdfcstandardlife.com

By taking this affordable life insurance plan, you can provide for the well-being of your

family in case of your unfortunate death. This plan comes to you at a minimal cost and

is well suited for the value-conscious customer.

RESEARCHMETHODOLOGY

Problem Formulation

In insurance scenario, there prevails a huge competition between the private

players and the public sector players. Among the private sector itself, a high

degree of competition exists among the private players itself. In this

perspective, HDFC Standard Life Insurance giving still competition to ING

Vysya Life Insurance, the problem with which the project deals in the

comparison.

RESEARCH OBJECTIVES

To compare ING VYSYA LIFE INSURANCE and HDFC

STANDARD LIFE INSURANCE.

To find out the customers opinion about both companies.

To analyze the insurance market.

RESEARCH DESIGN

The research will be of descriptive type and a study will be undertaken to

compare the ING VYSYA LIFE INSURANCE and HDFC STANDARD

LIFE INSURANCE on the basis of following parameters.

1) Locking Period

2) Risk cover

3) Maturity Amount

4) Amount of Premium to be Paid

5) Benefits like Medideuim and Accidental

6) Deductions and Rebates under sec.80

7) Social security aspects

8) Pension

9) Gratuity

10) Voluntary Retirement Scheme. (VRS)

11) Features of Policies between HDFC Standard Insurance and

ING VYASA Insurance

SOURCE OF DATA COLLECTION

Both the primary and secondary methods of data collection have been used.In primary method we have done structure interviews and survey through questionnaires. In the secondary data was collected by referring through websites, journals, books, magazines and old thesis.

SAMPLING METHOD

The sampling method chosen for the study is cluster sampling. In this type

of sampling, the population is divided into clusters where every item in

population has an equal chance of inclusion. The procedure gives each item

an equal probability of being selected.

SAMPLING SIZE 50 respondents.

AREA OF STUDY

Dehradun

ANALYSIS

AND

DISCUSSION

Q1. What do you know about Insurance?

INTERPRETATION:This graph shows out of the 50 respondents 10% respondents know about insurance cover risk, 8% respondents know insurance is prevention of losses, 6% respondents know insurance provides profitable investments, 6% respondents know insurance is saving and 70% respondents know all of the above.

Q2.Do you know about ING VYSYA Life Insurance and HDFC Standard Life Insurance?

Q3. How do you come to know about Insurance?

Q4. Which Insurance plan have you purchased? If not, then leave the question?

Q5. According to you, which Insurance plan is best for you?

Q6. From which insurance company have you purchased or intend to purchase the plan?

Q7. To what extent, are you satisfied with the services, like?

Figure no.1

Figure no.2

Figure no.3

Figure no. 4

Figure no.5

Q8. To what extend are you satisfy with the Policy Parameters, like?

Insurance according to respondents is, 9% says insurance is prevention of losses, 12%

says insurance cover risk, 16% says insurance provides profitable investments, 19%

says insurance is savings and 44% says all of the above.

CONCLUSION

Through the survey, we can conclude that the different analyzed segment (Combine,

Gender, and Occupation) reflects a scenario, where the majority people agree to one

consideration.

1) People are of the opinion that insurance is not only acts as a risk cover but also

acts a saving instrument.

2) Majority of the people are come to know about the insurance through T.V

Advertisements.

3) The insurance plan that consumers have purchased is Term insurance and Unit

Linked insurance plan, reflects that they are interested in Investment and

Protection plans. And most of the people have perception that Protection plan is

best for them.

4) Majority of people have purchased insurance plan from Life Insurance

Corporation, reflects the faith of consumers on it.

5) A number of people are of the opinion that Grievance Handling service,

Customer Relationship service and Product Information services of the company

are satisfactory from which people have purchased the plan.

6) People are of the opinion that LIC and ING VYSYA Life Insurance are the best

service provider companies.

7) Large number of customers’ viz., housewives, businessmen, Govt. employees,

Pvt. employees, and professionals are more interested in ING VYSYA in

comparison to HDFC Standard Life Insurance. Now, ING is developing rapidly

but it needs to compete with other players like LIC, to become Number One

Insurance Company.

REFERENCES

Kotler Philip, “Marketing Management”, 2003, Published by Pearson Education (Singapore).

Kothari. C.R. “Research Methodology” (2nd Edition), Wishwa Prakashan. Kumar Ranjit, “Research Methodology” (2nd Edition), Sage Publications, Delhi.

www.ingvysyains.com

www.hdfcstandardlifeinsurance.com

www.irda.com

APPENDIX

QUESTIONNAIRE NAME:

ADDRESS:

CONTACT NO:

AGE SEX EDUCATION OCCUPATION INCOME

25-35

36-45

46-55

56<above

Male

Female

High school

Intermediate

Graduate

Post Graduate

Professional

Any other

Businessman

Housewives

Pvt. Service

Govt. service

Professional

5001-10000

10001-15000

15001-20000

20001-35000

35001-Above

Q1. What do you know about Insurance?

a) Insurance cover risk.b) Insurance is prevention of losses.c) Insurance provides profitable investments.d) Insurance is savings.e) All of the above.

Q2. How do you come to know about Insurance?

a) Newspapers Advertisement.b) Friends.c) T.V. Advertisements.d) Insurance Advisor.e) If any other, please mention ………………………….

Q3. Which Insurance plan have you purchased? If not, then leave the question.

a) Child’s Protection Plan.b) Retirement Plan.c) Unit linked Insurance Plan.d) Term-Insurance Plane) Money Back Plan

Q4. According to you, which Insurance plan is best for you?

a) Child’s Protection Plan.b) Retirement Plan.c) Unit linked Insurance Plan.d) Term-Insurance Plane) Money Back Plan

Q5. From which insurance company have you purchased the plan?

a) ING VYSYA Life Insurance.b) HDFC Standard Life Insurance.c) Life Insurance Corporation.d) ICICI Prudential.e) SBI Life Insurance.f) If any other, please mention.

………………………….

Q6. To what extent, are you satisfied with the services, like?

ServicesHighly Satisfied

Satisfied Neither Satisfied

Nor Dissatisfied

Dissatisfied Highly Dissatisfied

Grievance HandlingCustomer Relationship ServicesAdviser’s ServicesProduct InformationClaim SettlementServices.

Q7. Please rank, according to you, which company is the best service provider?

a) ING VYSYA Life Insuranceb) HDFC Life Insurancec) Life Insurance Corporation.d) ICICI Prudential. e) SBI Life Insurance.