report on ulip plans
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DECLARATION
This is to certify that Sonia Rani student of Geeta Institute of
management & Technology, kanipla studying in M.B.A Roll No.
3609853 has undergone summer traning of HDFC STANDERD LIFE
INSURANCE, KARNAL for six weeks and have submitted a project
report on the title COMPARISION OF ULIP PLAN as assigned by the
company for partial fulfillment of degree of M.B.A to Kurukshetra
University, Kurukshetra.
I hereby declare that the work done by me on project report
titled COMPARISION OF ULIP PLAN is my own work and has
been carried out under the able guidance of Mr. Himmat Singh
(Manager Channel Development), HDFC SLIC Branch (Kurukshetra).
is original and no copy of it has been submit to any other
Universities for award of any other degree or on similar title and
topic.
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ACKNOWLEDGEMENT
There is race for existence in which only fittest succeed. In
every walk of life, the intellectual work of a candidate is adjusted
not only by the division, grade or marks obtained in the examination
but also practical work matters a lot. So as for practical fulfillment, I
joined the practical field. It would not have been possible for me to
accomplish without any help or contribution.
My Sincere thanks are to all the members of HDFCSL, KARNAL
who have lightened me with their precious guidance during my
training. I am also grateful to the management of this organization
who has given me a chance to undergo training in their
organization.
I am deeply thankful to my teacher Dr. Pooja Malhotra (HOD)
MBA department GIMT, kanipla for their valuable contribution during
the academic session & guidance in preparation of this project
report.
I also want to pay my sincere regards to Mr. Himmat Singh, who
allow me to do this project in HDFC Standar Life successfully. I
extend my sincere gratitude towards my parents, who have always
encouraged me and gave suggestions as how to work on project.
They always stand by me in solving all my queries. Their support
has always motivated me.
Above all it gives me immense pleasure to thank authors of various books those
indirectly helped me in gaining knowledge about insurance industry.
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PREFACE
Indian insurance industry is emerging rapidly after year 2000. To
survive in this highly competitive scenario, managers are being
pressured to improve quality, recruit quality and skilled people and
eliminate inefficiency. The collective efforts of the employer,
managers and other relative people assume relevance in thiscontext. And this is where marketing management and human
resources play important role.
Recruitment is very important in todays scenario. But still it is
ignored and considered as a secondary aspect. In case of insurance
industry recruitment only decide success or failure of company.
I have made an attempt to study this aspect of Insurance industry in
my project. In this project, recruitment for developing channel at
HDFCSL is considered. I have tried to find out how exactly
recruitment is very important for this firm as well as this industry,
which are the different strategies firm use to recruit quality people
and so on. It is more qualitative rather than a quantitative data.
To get knowledge of above question and to fulfill the requirements
for my project on Channel Development at HDFCSL, I have worked
in HDFCSL and searched some internet sites.
On the basis of my study, I have included following topics as the
important aspect of Channel Development at HDFCSL.
Insurance industry introduction.
Strategies for recruitment.
Eligibility of recruitment and so on.
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In this project I have tried to give attention to all the above topics
and study them in depth. But I would still like to receive all sorts
feedback to enhance my knowledge on the topics as far as this
industry is concern.
Company Profile
HDFC Standard Life Insurance
HDFC Standard Life Insurance Company Ltd is one of Indias leading private
insurance companies, which offers a range of individual and group insurance solution.
It is a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), Indias leading housing finance institution and Group Company of the
Standard Life, U.K.HDFC as on December 31,2007 holds 72.38 percent of equity in
the joint venture.
Our Key Strengths
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard
Life has the financial expertise required to manage your long-term
investments safely and efficiently.
Range of Solution
We have a range of individual and group solutions, which can be easily
customized to specific needs. Our group solutions have been designed
to offer you complete flexibility combined with low charging structure.
Track Record so Far
Our gross premium income, for the year ending March 31, 2008 stood
at Rs. 4,859 crores and new business premium income stood at Rs.
2,685 crores. The company has covered over 9, 59,000 lives year
ending March 31, 2008.
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Unit Linked Endowment Plus Plan
Unit Linked Endowment Suvidha Plan
Unit Linked Endowment Suvidha Plus
Unit Linked Endowment Suvidha Plus II
Unit Linked Young Star Plan
Unit Linked Young Star Plus
Unit Linked Young Star Suvidha
Unit Linked Young Star Suvidha Plus
Unit Linked Enhanced Life Protection II
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INTRODUCTION TO INSURANCE
WHAT IS INSURANCE?
Insurance may be described as a social device to reduce or eliminate riskof
life and property. Under the plan of insurance, a large number of people associate
themselves by sharing risk, attached to individual.
The risk, which can be insured against include fire, the peril of sea, death,
incident, & burglary. Any risk contingent upon these may be insured against at a
premium commensurate with the risk involved.
Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party
happening of a certain event.
Insurance is a contract whereby, in return for the payment of premium by the
insured, the insurers pay the financial losses suffered by the insured as a result of
the occurrence of unforeseen events.
With the help of insurance, large number of people exposed to a similar risk makes
contributions to a common fund out of which the losses suffered by the unfortunatefew, due to accidental events, are made good.
Insurance is the most important aspect a novice to insurance market should be
conversant with. Insurance is a hedging instrument used as a precautionary
measure against future contingent losses. Insurance is used for managing the
possible risks of the future.
Insurance can be defined as the process of reimbursing or protecting a person from
contingent risk of losses through financial means.
Insurances are bought in order to hedge the possible risks of the future which
might / might not take place. This is a mode of financially insuring that if
such a incident happens then the loss does not affect the present well-being of
the person. Thus, through insurance, a person buys the future happiness and
smooth living.
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A simple example will make meaning of insurance easy to understand. A biker
is always subjected to the risk of head injury. But it is not certain that the
accident causing him the head injury would definitely occur. Still people riding
bikes cover their heads with a helmet. This helmet in such cases act as insurance
by protecting him/her from the contingent accident and the ultimate danger.
Though loss of life or injuries cannot be measured in financial terms, still in this
materialistic world it is quantifiable which tries to compensate the potential future loss
financially.
It may sound that the financial reimbursement by the insurance giving companycomes free of cost. But in real life, insurance is not a free commodity. The Insurance
companies do charge a regular payment from the insurance customers (known as
Insurance Premium) which are reimbursed, either in part or entirety, to the
customers in cases of actual loss (for which the insurance has been bought).
Insurance can range from life to medical to general (residential, commercial
property, natural incidents, burglary, etc).
LIFE INSURANCE: - It insures the life of the person buying the Life Insurance
Certificate. Once a Life Insurance is sold by a company then the company remains
legally entitled to make payment to the beneficiary after the death of the policy holder
MEDICAL INSURANCE: - This is also known as mediclaim. Here, the policy
holder is entitled to receive the amount spent for his health purposes from the
insurance company.
GENERAL INSURANCE: - This insurance type involves insuring the risks
associated with the general life such as automobiles, business related, natural
incidents, commercial and residential properties, etc
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Research Methodology
RESEARCHDESIGN
A research design is a framework or blueprint for conducting the marketing research
project .It details the procedures necessary for obtaining the information needed to
structure or solve marketing research problems.
A descriptive research study is done, which is concerned with describing the
characteristics of a particular individual or group of individuals.
Objectives of Study
The objectives of my studies are:
To Study interest of general public in part time business
To Study the preference in insurance sector of different prospects
Identifying the different financial product provided by HDFC Standard.
To study whether general public wants to be a financial advisor.
To study why people are adopted ulip plans than traditional plans
Stages of Research Process
Formulating the Research Problem
Research Design
Sampling
Data collection
Data processing and analysis
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Interpretation and report writing.
Defining Of Problem:-
1). To analyze the customer satisfaction regarding life insurance plans of
Insurance Company Limited in market.
2). Comparison of ULIP Plans of different insurance companies in the life
Insurance sector.
Research Design:-
A descriptive research study is done, which is concerned with describing the
characteristics of a particular group of individuals.
Sampling:-
Population:-
To study the satisfaction of customers having life insurance policies of Different
Insurance Companies constitute my universe.
To study the market share of these insurance companies
Sampling Technique:-
1) Convenient sampling techniques is used to determine the customer satisfaction
of Different Insurance Products.
2) Random sampling is done to determine the market share of the company over
other competitors.
Sample Size:-
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Sample size for the study of customer satisfaction is 100 customers who have
taken life insurance plans by these insurance companies.
Sample size of 100 people was taken who have visited our canopy in a market. This
sample represented the people who either have these companies insurance plans This
sample was taken to determine the market share of these Insurance Companies
Data Collection:-
Sources of Data:
Both primary and secondary sources of data has been used to collect information
Primary data was collected from HDFC Insurance (Karnal), ICICI (Ktl), Max
New York(Ktl), Birla life(Ktl),Kotak Life(Ktl), by products offered by the
company
Secondary Data was collected by making extensive use of the internet. Data
was also collected from various books, journals and publications.
Technique of data collection:-
Data was collected through discussions with employees of the company.
And by personally interviewing the customers of the company and through
questionnaires.
LIMITATION
How so ever impeccable a thing may see to be there always dwell some possibilities
of failure and incompleteness. The result of this work also subject to some of
limitations.
Which are as follows?
The main limitation of the study is the availability of time. As the sufficienttime was not available for collection of information.
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Some respondents were not interested in giving answer and they appeared to
be busy.
Data analysis and Interpretations:-
In order to extract meaningful information from the data, analysis of the data was
done. Analysis was done by using certain statistical tools like bar-graphs, pie-charts,
percentages etc. and from these analysis interpretations were drawn.
Occupation
Table No. 1.1
Options Responses Percentage
Salaried 53 53
Professional 29 29
Business 12 12
Others 6 6
Total 100 100
Graph No. 1.1
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Salaried 53%Professional 29%
Business 12%
Agriculture 6%Salaried
Professional
Business
Agriculture
Interpretation:
The above Pie Chart indicates that 53% of the respondents belong to salaried
class while 29% of respondents are professional. Only 12% of respondentsbelong to
business class and rest 6% are engaged in Agriculture.
Annual Income
Table No. 1.2
Options Responses Percentage
Up to Rs. 2,00,000 21 21
Rs.2,00,000- Rs. 5,00,000 63 63
Rs. 5,00,000 Rs. 8,00,000 11 11
Above Rs. 8,00,000 5 5
Total 100 100
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Graph No. 1.2
21%
63%
11% 5%Up to Rs. 2,00,000
Rs.2,00,000- Rs.
5,00,000
Rs. 5,00,000 Rs.
8,00,000
Above Rs. 8,00,000
Interpretation:
The above Pie Chart shows that 21% of respondents fall in group
having income up to Rs. 2,00,00, 63% of the respondents fall in the
income group of Rs.2,00,000Rs.5,00,000,11% of the respondents
in the income group of Rs.5,00,00 Rs.8,00,000 and only 5% of
respondents fall in the income group above Rs. 5,00,000.
Duration of Companys as Insurance provider
Table No. 1.3
Options Responses Percentage
Less than 2 Years 48 48
to 5 Years 37 37More than 5 Years 15 15
Total 100 100
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Graph No. 1.3
48%
37%
15%
Less than 2 Years
2 to 5 Years
More than 5 Years
Interpretation:
The above Pie-Chart depicts that 15% people have insurance policies of HDFC Standardfor more than 5 years, 37% people have policies
from 2- 5 years (this shows that people have started trusting HDFC as a
brand) and 48 % are customers of HDFC for less than 2 years.
Type of Insurance Policy
Table No. 1.4
Options Responses Percentage
Life 100/100 100
Health 23/100 23
Children 37/100 37
Pension 28/100 28
Total 30 100
Graph No. 1.4
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100
23
37
28
0
10
20
30
40
50
60
70
80
90
100
Series1 100 23 37 28
Life Health Children Pension
Interpretation:
The above graph depicts that 100% people have Life insurancepolicy, 23 out of 100 have health insurance, 37 have taken Children Insurance Plans
and 28 out of 100 have opted for Pension Plans of the company. This shows that still
Health, Children, Pension be marketed properly
Reason for Selecting HDFC STANDARDTable No. 1.5
Options Responses Percentage
Attractive Plans 75/100 75
Recommended By some person. 60/100 60
You are an employee of HDFC 17/100 17
`Because of Market Ranking. 45/100 45
Graph No. 1.5
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75
60
17
35
0
10
20
30
40
50
60
70
80
Series1 75 60 17 35
Attractive
Plans
Recommen
ded By
Employee of
ICICI Pru
Because of
market
Interpretation:
The above bar- graph shows that 75% of customers have taken insurance plans because
of attractive plans and quality service and 60% have taken on recommendation of some
person.
Expectations from an Insurance Policy
Table No. 1.6
Options Responses Percentage
Higher growth of money invested 80/100 80
Convenience in branch availability. 45/100 45
Less formalities and paperwork 55/100 55
Transparent Transactions 65/100 65
No Hidden charges 78/100 78Efficient Customer Care dept. 75/100 75
Easy Claim Settlement 80/100 80
Graph No 1.6
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80
4555
65
7875
80
0
10
20
30
40
50
60
70
80
Series1 80 45 55 65 78 75 80
Higher
return
money
Easy
branch
availabi
Less
formalit
ies
Transp
arent
Transa
No
Hidden
charge
Custo
mer
Care
Easy
Claim
Settle
Interpretation:
The above graph depicts that 80% of people expect higher growth of invested
and easy claim settlement.85% says no hidden charges should be there. Other
expectation covers up less paperwork, customer care department and easy branch
availability
Does HDFC STANDARD Provides Customers with the
expected features in a policy
Table No.1.7
Options Responses Percentage
Yes 92 92
No 8 8Total 100 100
Graph No 1.7
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92
8
0
20
40
60
80
100
Series1 92 8
Yes No
Interpretation:
The graph shows that 92% customers feel that HDFC STANDARD is providing
insurance plans which are up to their expectations and only 8% feels that the plans
are not according to their wish. They pointed out the hidden charges which
constitute a very small percentage.
Proper solution to Insurance policy relating queries
Table No. 1.8
Options Responses Percentage
Yes 94 94
No 6 6
Total 100 100
Graph No. 1.8
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94
6
0
10
20
30
40
50
60
70
80
90
100
Series1 94 6
Yes No
Interpretation:
The graph depicts that 94% customers are satisfied with the customer care
department of the company. Only 6 respondents were not satisfied with the query
handling of the department.
Satisfaction regarding Administration charges
Table No. 1.9
Options Responses Percentage
Yes 90 90
No 10 10
Total 100 100
Graph No.1.9
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90
10
0
10
20
30
40
50
60
70
80
90
Series1 90 10
Yes No
Interpretation:
The graph shows that 90%respondents are satisfied with the
administration charges being charged by the company but 10% feel that
administration fees should be reduced.
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FINDINGS
Most of the respondents belong to Salaried and professional class.
Business class still needs to be tapped.
The clientele has increased in past 3 years, this shows that people
have started trusting HDFC STANDARD as a Brand.
Most of the respondents are satisfied with the insurance plans and
services provided by HDFC STANDARD Life Insurance
Company. The company is providing the customers a huge product
range which is customized according to the customers
requirements.
HDFC STANDARD provides Insurance plans which cover up all
the features which customers want in their Insurance plans.
From Graph No. 4 it is inferred that still the market for Health,
Children and Pension plans is not tapped fully so, efforts should be
made to promote these plans.
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The main reason due to which customers are choosing HDFC
STANDARD as their insurance provider is the huge product range
which suits the requirements of all income and age groups. And
In their recommendations a few number of respondents asked for
lesser administration charges and no hidden charges should be
there.
85% of respondents are willing to invest in the company in future.
Satisfaction regarding the services provided by company is rated as
very good by the respondents. This shows that the company is
working in accordance to its Vision.
Recommendations
1. Making HDFC more accessible: Here I mean that as 80% of the
population of India is rural therefore HDFC must have there branches in
important towns such as Ambala, Jagadhari ,Kaithal, not only this will
increase the awareness among people more over it will help the company to
acquire local market and cater to their needs effectively.
2. There should be a product with similar features and low initial
premium: A product like Young star is suitable for all but the initial
premium which cannot be less than 18000 rs. is on the higher side , thereforethe company should derive a product with similar features but with low initial
premium so that it is affordable to normal service class.
3. Administration charges should be low as in comparison with
mutual funds, national saving certificate (N.S.C),etc.: The
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company should lessen down the administration charges so that this product
can have an edge over other investment modules like N.S.C, P.P.F etc.
4. Market surveys should be conducted regularly so that to know
about customer demands and changing needs: The company
should know about the customers changing needs and demands by
conducting market surveys which are helpful in innovating a product which
suits the customers requirements.
5. There should be Training batches on weekends : It is advised that
the company should have training batches for the already serving class on
weekends , so that the willing candidates can opt it as a part time business
opportunity
CONCLUSION
In India, insurance is generally considered as a tax-saving device instead of its other
implied long-term financial benefits. Indian people are prone to investing in propertiesand gold followed by banks deposits. They selectively invest in shares also but the
percentage is very small4.5%. Even to this day, Life insurance market has become
more vibrant.
The top three insurance companies-ICICI Prudential Life Insurance Company, HDFC
Standard Life and Max New York Life- combined managed to sell over two lakh
policies in a single year. ICICI Prudential, touted as the number one private life
insurer, scored on all three fronts-with the maximum number of policies sold
(1,00,000 policies), highest amount of premium collected (Rs. 2,700 crore).
Max New York Life scored second place with Rs. 43 crore Premium income received
on 64,000 whole-life policies sold. It has built business to the tune of Rs.2,100 crore
in its first year of operations. HDFC Standard Life, even as it belongs to the
December 2001 vintage when it and ICICI Prudential were the first to commence
operations, is placed at number three position. HDFC Standard Life has sold
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32,000.policies against 44,311 lives. On a business portfolio of Rs.1,266 crore , it has
received a premium income of Rs. 36, crore.
Of course, the numbers come no where closed to the state the Life Insurance
Corporation of India (LIC) which sold2.32 Crore policies in the fiscal 2006.The
fiscal was marked by phenomenal growth rates for (LIC) as the number of policies
sold short up by over16 percent. The state player mopped up first premium income
from new policies sold to the extranet of R.S. 40,844.05 crore, growth of 137 percent
over its performance last fiscal. This is over an about the regular yearlypremium of
Rs. 35,000 crore. At the same time, LIC has managed to grow its books by
underwriting an additional R.S. 1,92,575.36 crore of fresh business. Tata AIG Life
and non-life Combined has sold over five lakh policies in the first year. Birla Sun life
Insurance. Has returned a business size of R.S. 1,6,00 crore.
Bibliography
1) Literature available at HDFC Standard Life Insurance (Karnal)
2) www.hdfcstandardlife .com
3) www.bajajcapital.com
4) www.moneymarket .com
5) Broachers of different insurance companies
6) Websites of different insurance companies
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http://www.hdfcstandardlife/http://www.bajajcapital.com/http://www.moneymarket/http://www.hdfcstandardlife/http://www.bajajcapital.com/http://www.moneymarket/ -
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QUESTIONNAIRE
on
CUSTOMER SATISFACTION
1)Occupation:
Salaried
Businessman
Professional
2)Annual Income of Household:-
Up to Rs.2 lakh
Rs 2 lakh to Rs. 5 lakh
Rs.5 lakh to Rs.8 lakh
Above Rs.8 lakh
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3) From how much time is HDFC Standard Life Insurance Company
is your insurance provider?
0 year 2 years
2- 5 yrsAbove 5 yrs.
4) What kind of insurance policy you have?
Life Health Children
5) Why did you select HDFC Standard Life Insurance Company as
your insurance provider?
Attractive Plans
Recommended by some one.
You are an employee of HDFC Standard Life.
Because of Market ranking.
6) What do you expect in your insurance policy?
Higher growth of money invested
Convenience in branch availability
Less formalities and paperwork
Transparent transactions
Easy claim statement
Efficient Customer Care Department
No hidden Charges.
7) Does HDFC Standard provide you with the desired features which
you expect in your insurance policy?
Yes No
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8) Are your queries relating to your insurance plan being solved
properly?
Yes No
9)Are you satisfied with the administrative fees charged by HDFC
Standard Life Insurance Company?
Yes No
10) What do you think about the standard of services provided by
HDFC Standard Life Insurance Company?
Fair Good
Very Good Excellent