Anoop Insurance in Industry
Anoop Insurance in Industry
Anoop Insurance in Industry
ON
AN INVESTORS PERSPECTIVE OF TOWARDS INSURANCE
INDUSTRY IN INDIA
Submitted to
Submitted by
Anoop Kumar
Faculty Guide
(2013-2016)
Declaration
I, Anoop
kumar student of B.com (Hons.) Finance
Anoop kumar
B.COM (HONS.)
ADM NO. -13GSFC101042
ENROLL NO. - 1306102014
ACKNOWLEDGEMENT
I convey my sincere thanks to Prof. Chabi Gupta , Faculty Guide under her
valuable guidance and supervision and support at all time and providing me the
proper guidance to carry out internship report effectively and efficiently.
I would like to thanks to all those people who provided me the best information
directly and indirectly throughout my project report completed at time.
Anoop kumar
B.com(H)
Admission no 13gsfc 101042
Enrollment no 1306102014
C E RT I F I C AT E
investors perspective
Date: _____________
Place: _____________
Faculty Guide
SYNOPSIS:
SCOPE OF THE STUDY:
The result of this research would help the company to have a better
understanding about the consumers perception towards life
insurance.
The study helps the company by creating awareness about the
consumers of different ages and income levels.
The study also enables the company to focus the consumers
preferences and expectations on the product which they offer.
OBJECTIVES OF THE STUDY:
a) To know about the various Investment alternatives that is
mostly preferred by the people.
b) To find out the important criteria that people think about
before investing in a life insurance policy.
c) To find out whether gender bias involved in investing life
insurance or not.
d) To find out the awareness of HDFC Life Insurance among the
people
RESEARCH METHODOLOGY:
Methodology is a systematic way of solving a problem it includes
the research methods for solving a problem it includes the
research methods for solving the problem.
Type of research
Descriptive research
Data source
Primary and Secondary data
Data collection method
Interview and survey
SAMPLING TECHNIQUE
The sampling technique that adapted to conduct the survey was
Convenient Random Sampling and the area of the research was
concentrated in the city of Erode only. The survey was conducted
by
visiting
different
places
like
colleges,
corporate
offices,
DATA SOURCE
The task of data collection begins after a research problem has
been
defined.
In
this
study
data
was
collected
through
data
was
collected
among
the
consumers
using
questionnaire.
B. SECONDARY DATA
Secondary
data
consist
somewhere,
of
information
having
that
already
exits
been
collected for
data was
two
or more
data
and
to
describe
relationships.
two
or
more
sources
of
data.
/Total
respondents.
TABLE OF CONTENT:
S.NO
TOPIC
PAGE
NO.
* STUDENT CERTIFICATE
* FACULTY CERTIFICATE
SYNOPSIS
EXECUTIVE SUMMARY
9
14
1.1
1.2
16
1.3
CHARACTERISTIC OF INSURANCE
18
1.4
FUNCTIONS OF INSURANCE
19
1.5
OVERVIEW
20
1.6
23
1.7
24
1.8
24
1.9
26
1.10
27
1.11
28
2.
30
2.1
2.2
33
2.3
CONSUMER BEHAVIOUR
35
1.
15
31
3.
36
3.1
OVERVIEW
37
3.2
COMPANY PROFILE
39
3.3
OFFICES IN INDIA
40
3.4
42
3.5
ASSOCIATE COMPANIES
43
3.6
PRODUCTS OF HDFCSL
49
3.7
AWARDS
60
3.8
ORGANISATIONAL STRUCTURE
62
4.
64
4.1
RESEARCH METHODOLOGY
65
4.2
RESEARCH OBJECTIVE
66
4.3
RESEARCH DESIGN
67
4.4
RESEARCH LIMITATION
69
5.
70
5.1
SWOT ANALYSIS
71
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
GRAPHS
MARKET SHARE OF KEY PLAYERS
BENEFIT OF INSURANCE
SATISFACTORY LEVEL
WHICH SECTOR-PRIVATE OR PUBLIC
WHERE TO IMPROVE
TOTAL SUM ASSURED OF LIFE INSURANCE
REASON FOR INVESTING
73
73
74
75
76
78
79
81
6.
CHAPTER-6 CONCLUSION
82
6.1
CONCLUSION
83
6.2
87
6.3
SUGGESTIONS
88
6.4
LIMITATIONS
89
7.
QUESTIONAIRE
90
8.
RESUME
94
9.
BIBLIOGRAPHY
97
EXECUTIVE SUMMARY
The project A study on Consumer Perception about Insurance Company is
undertaken under the guidance of Mr. AMAN TANDON (Asst. Sales Manager).It
looks deep into the effectiveness at senior level. It also provides a comparative study
of
HDFC
STANDARD
Life
Insurance
Company
Ltd. withsome national companies with similar profiles to discuss their working stru
cture andsuggest to organization .On the basis of feedback through questionnaire,
interview and observation method, we find out the perception view about the
insurance
companys
working
style
and
is
constantly making efforts to make the company the best place to work for level. As
they are measures of individuals psychological makeup and personality and as such
are extremely powerful instruments as find out from our comparative analysis
results.
In order to make them proactive., it is required to provide them with such kind
of environment, and equally
have
people
company best place to work for high performers and creating a congenial
environment.
Asset Protection
From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the
underlying benefit of asset appreciation, life insurance is unique in that it gives the
customer the reassurance of asset protection, along with a strong element of asset
appreciation.
The core benefit of life insurance is that the financial interests of ones family
remain protected from circumstances such as loss of income due to critical illness or
death of the policyholder. Simultaneously, insurance products also have a strong
inbuilt wealth creation proposition. The customer therefore benefits on two counts
and life insurance occupies a unique space in the landscape of investment options
available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly
married couple, it could be buying a house. Once, they decide to start a family, the
goal changes to planning for the education or marriage of their children. As one
grows older, planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the instrument
in which you invest should offer corresponding benefits pertinent to the new life
stage.
Life insurance is the only investment option that offers specific products tailor
made for different life stages. It thus ensures that the benefits offered to the
customer reflect the needs of the customer at that particular life stage, and hence
ensures that the financial goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different
life stages.
g Life
Stage e
Asset creation
Wealth creation plans
Health Insurance
Health plans
Sharing of risks
Cooperative device
Evaluation of risk
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred.
The success of insurance business depends on the large number of people
With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value
of the Indian insurance market is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services contribution
to the country's gross domestic product (GDP) is 7% out of which the gross
premium collection forms a significant part. The funds available with the stateowned Life Insurance Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts indicate the
of immense growth potential of the insurance sector. The year 1999 saw a revolution
in the Indian insurance sector, as major structural changes took place with the
ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players
and allowing foreign players to enter the market with some limits on direct foreign
ownership. Though, the existing rule says that a foreign partner can hold 26% equity
in an insurance company, a proposal to increase this limit to 49% is pending with the
government. Since opening up of the insurance sector in 1999, foreign investments
of Rs. 8.7 billion have poured into the Indian market and 21 private companies have
been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled
fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,
braving stiff competition from private insurers. This report, Indian Insurance
Industry: New Avenues for Growth 2012, finds that the market share of the state
behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the
fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion
in 2004-05 from Rs. 24.29 billion in 2003-04. Though the total volume of LIC's
business increased in the last fiscal year (2004-2005) compared to the previous one,
its market share came down from 87.04 to 78.07%. The 14 private insurers
increased their market share from about 13% to about 22% in a year's time. The
figures for the first two months of the fiscal year 2005-06 also speak of the growing
share of the private insurers. The share of LIC for this period has further come down
to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private insurance
companies collectively have a 10% share of the non-life insurance market.
Though the focus of this market research report is on the potential growth on the
Indian Insurance Sector, it also talks about the market size, market segmentation,
and key developments in the market after 1999. The report gives an instant overview
of the Indian non-life insurance market, and covers fire, marine, and other non-life
insurance. The data is supplied in both graphical and tabular format for ease of
interpretation and analysis. This report also provides company profiles of the major
private insurance companies.
The Indian Insurance Sector went through a full circle of phases from being
unregulated to completely regulate and then being partly deregulated which is the
present situation. A brief on how the events folded up is discussed as follows: The
Insurance Act of 1938 was the first legislation governing all forms of insurance
to provide strict state controls over insurance business. In 19th January, 1956, the
life insurance in India was completely nationalized through the Life Insurance
Corporation Act of 1956. At that time, there were 245 insurance companies of both
Indian and foreign origin. Government accomplished its policy of nationalization by
acquiring the management of the companies. Bearing this objective in mind, the Life
Insurance Corporation (LIC) of India was created on 1st September, 1956 which has
grown in leaps and bounds henceforth, to become the largest insurance company in
India. The General Insurance Business (Nationalization) Act of 1972 was formulated
with
the
1928:
The Indian Insurance Companies Act enacted to enable the government to collect
statistical 'Information about both life and non life insurance businesses.
1938:
Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the 'Interests of the insuring pubic.
1956:
245 Indian and foreign insurance and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act,1956, with a capital contribution of Rs. 5 chores from the Government of India.
Many Indian banks are planning to enter the insurance sector due to the huge growth
that is estimated to take place in this sector. Indian banks plan to foray into the
insurance sector by setting up their own insurance companies. The Indian insurance
sector collected a premium of about Rs. 75,000 crores in the segments of non- life
and life insurance, during the first nine months of 2007- 2008. Further, the business
of insurance in the country is expected to increase due to the growth in the
categories of semi- urban and rural insurance and is expected to be worth about US$
60 billion by 2010. The major Indian Banks that are planning to enter the insurance
sector of the country are Union Bank, Federal Bank, Allahabad Bank, Bank of India,
Karnataka Bank, Indian Overseas Bank and Bank of Maharashtra. Further, there are
a number of banks that are planning to set up their own companies for insurance
such as Bank of Baroda, Punjab National Bank, and Dena Bank. Indian banks are
planning to enter the insurance sector on their own, without partnering with
insurance companies due to several reasons. One important reason is that they
would get better dividends than the commission they would get by entering into
partnerships with other insurance majors. Moreover, this would help them to
diversify from the regular banking activity that they are involved in. The insurance
companies have been affected with the planning of Indian banks to foray into the
insurance sector of the country. This is due to the fact that the insurance companies
are now unable to find banks with whom they can enter into partnerships for the
distribution of their products.
launched 'lifeline' a health insurance product on March 2008, across India. Now, the
company can boast of offering complete health and life insurance products across 11
regions in India. This newly launched health insurance product of Max New York
Life Insurance Company offers three groups of heath insurance solutions. The
director marketing product management and corporate affairs of Max New York
Life Insurance said that these three distinct heath insurance products are meant to
cover eventualities like hospitalization, surgery and critical illness of the insured and
these plans have been structured with features like coverage for a wide range of
ailments, no claim discount on revised premium for a healthy life, a fixed premium
for a five-year term, free second opinion from the best health care institutions of
India on detection of illness. Further, it also has provision for a free telephonic
medical helpline across India. The hospitalization is covered by "Medicate Plan",
which is meant to provide a fixed amount of cash benefit on a day-to-day basis
during the entire period of hospitalization of the insured. The Medicate Plan
would also cover expenses for admission in ICU, lump sum benefits against an
unlimited number of surgeries and recuperation benefits. The second plan of the
newly launched health insurance of Max New York Life Insurance, is the "Wellness
Plan", which is a more attractive one and covers 'critical illness' like cancer,
Alzheimers, heart ailments, liver disease, deafness, permanent disability, etc. The
Wellness plan covers thirty eight critical illnesses, which is the highest number of
illness covered under one insurance plan in India by any insurance company. The
third health insurance policy of Max New York Life Insurance is a term plus health
protection plan known as "Safety Net". Max New York Life Insurance Company is
one of the fastest growing life insurance companies in India and is the first life
insurance company of India to be awarded with ISO 9001:2000 certification.
had four
subsidiary companies,
subsidiaries
namely with
effect
have been de
the
world
and
the
joint
product
Philosophical interest in perception stems largely from questions about the sources
and validity of what is called human knowledge (epistemology). Epistemologists ask whether
areal, physical world exists independently of human experience and, if so, how its properties
can be learned and how the truth or accuracy of that experience can be determined.
They also ask whether there are innate ideas or whether all experience originates through
contact with the physical world, mediated by the sense organs.
the
of t aki n g possession,
apprehension
with
the
mind or senses.
predict the future market behavior. In this paper, role of IRDA, role of
Indian banks, role of private insurance companies, function of insurance
company,
various
factors
influencing
consumer
behavior,
factors
established
in
Mumbai.
At
last
the
insurance
based
on
it
because
the
aim
of
company
toget business and sell lots number of policy and this work is done by
is
financial
consultant. HDFC Standard Life Vision and Values Vision of HDFCSL .The most
successful and admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set
the standards in the industry. In short, The most obvious choice for all For
retention
in
the
market
and
highest
market
share,
we
need
trustof our customer. The customer should trust on our policies, services,employs
and they should be friendly with us. It wants to live in the eye and heart of the
customer. It wants to give them the easiest deal so that they can be understood
the terms and policies. As we know that profit is the main aim of any business
but it think not only about his profit but also profit of the customer. It wants to be
the choice of all people on the basis of trust of customer, delivering high value to
the customer, and deliver Of best value of the money.
3.3.OFFICES IN INDIA:
---Extensive branch network reach to customers
Dedicated Email team for resolution of email requests/queries
SMS Services for customers On the Move through SMS key words
Web based services enhanced for customers and channel partners
Constant evaluation and capture of Voice of Customer through renowned
research agencies for experience at various touch points
Drastic Our exclusive Customer Contact Center for customer queries
COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE:
Corporate Governance is a process that aims to meet stakeholders aspirations and
societal expectations. It is not a discipline imposed by a Regulator, rather is a culture
that guides the Board, Management and Employees to function towards best interest
of Stakeholders.
At HDFCSL, Corporate Governance philosophy stems from the belief that corporate
governance is a key element in improving efficiency and growth as well as
enhancing investor confidence. Accordingly, the Corporate Governance philosophy
has been scripted as under: As a good corporate citizen, the Company is committed
to sound corporate practices based on its vision, values & principles in building
confidence of its various stakeholders, thereby paving the way for its long term
success and sustenance.
At the core of its corporate governance practice is the Board, which oversees how
the management serves and protects the long-term interests of all the stakeholders of
the Company. The Company believes that an active, well-informed and independent
Board is necessary to ensure the highest standards of corporate governance.
The Companys corporate governance practices are aimed at meeting the corporate
governance requirements as per the IRDA Corporate Governance Guidelines,
besides good practices either recommended by professional bodies or practised by
leading companies in India. .
The following Corporate Governance Policy has been adopted by the Board of
Directors to assist the Board in the exercise of its responsibilities. This Policy is
subject to future amendments or changes, as may be necessary, in the light of the
amendments in various regulations in force for governance requirements.
3.4.OUR VISION AND VALUES
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and Standard Life
plc, a Group Company of the Standard Life, UK. HDFC, as on December 31, 2008,
holds 72.26 per cent of the paid up equity in the joint venture.
Our Vision
'The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money,
and set the standards in the industry'. In short, 'The most obvious choice for all'.
Our Values
Values that define how we work:
Integrity Innovation Customer centric People Care Team work Joy and Simplicity
Besides the above (which provides an insight into the Corporate Structure of the
Company), the Committees appointed by the Board focus on specific areas and take
informed decisions within the framework of delegated authority, and make specific
recommendations to the Board on matters within their areas of purview. All
decisions and recommendations of the Committees are placed before the Board for
information or for approval.
HDFC Life Product Portfolio:
HDFC Standard Life has vast portfolio of retirement plans, children plans, term
plans, savings investment plans and health plans.
Retirement Plan: With rising inflation, its absolutely necessary to make provisions
for the future which makes retirement plan an important financial decision. Better
known as Pension plan, this plan takes care of financial needs after retirement by
investing a part of your savings for limited period. Pension plan provides steady
income after retirement and takes care of daily needs. The pension plans offered by
HDFC Life are Personal Pension Plan, Immediate Annuity and Pension Maximums.
Child Plan: Parenthood brings responsibilities and no one is better judge of that
than you. Child Plan is a plan specifically designed to take care of financial needs of
your child. Child plan provides with necessary funds that will take care of childs
education, marriage etc. By investing small portion of your savings you secure the
financial end of your child. Child plan of HDFC Life are called SL Youngster Super
II, SL Youngster Super Premium and Childrens Plan.
Term Plan: A risk plan which provides comprehensive cover for your family in the
unfortunate event of untimely demise. A term life insurance plan provides good
cover at relatively nominal cost and has no survival benefits. HDFC Life term plans
are Term Assurance Plan, Premium Guarantee Plan, Loan Cover Term Assurance
Plan and Home Loan Protection Plan.
Critical
Care
Plan
and
SurgiCare
Plan
are
HDFC
health
plan.
Distribution Network:
HDFC has wide distribution network with 568 branches and has over 200000
Financial Consultants. HDFC Standard Life also has ban assurance partners- HDFC
Bank, Sara swat Bank and Indian Bank. HDFC products like HDFC SL Crest,
HDFC SL Youngster Super II, HDFC SL ProGrowth Super II, HDFC SL Youngster
Super Premium and HDFC SL ProGrowth Maximize are also available online.
Financial Information:
The total premium earned for the half year ended September 30, 2010 was Rs
35,909 million. The profit after tax for the same period is Rs 646 million. There
have been 1,298 death claims during the period out of which 1,045 claims were
settled and 45 claims were rejected.
Marketing Campaigns:
HDFC Standard Life Insurance has taken dynamic steps as part of changing brand
identity. HDFC Standard life in order to connect to younger target market made a
series of changes. HDFC Standard life dropped the standard word from their
name to make it HDFC Life. HDFC Life also changed their logo depicting more
energy, exuberance, vibrancy, dependability in their brand. HDFC Life also pushed
their tagline sar utha ke jiyo with television commercial, radio ads, print and other
communication mediums. The tagline presents the idea of living life with dignity
which can be achieved through being self dependent and insurance is part and parcel
of the same.
Distinctions:
HDFC Standard Life has been adjudged one of the Best Companies to Work
for in India in 2010. The company participated in the Great Places to Work
study for the first time and ranked first in the insurance category.
HDFC Standard Lifes YoungStar Super has been voted Product of the Year
2010 in the 'Insurance' category by more than 30,000 consumers nationwide
across 36 markets. The consumer study on product innovation in India was
conducted by A C Nielsen, the leading global research firm.
HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award,
for ATLAS (Agency Training Licensing and Servicing System). Additionally,
the company has received the CIO 100 Security Award 2009 for pioneering
LANDesk Management and Security Suite security implementation and
taking its security to a higher level of technological excellence.
HDFC Standard Life has received the Diamond EDGE Award 2009 for its
mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving
Growth and Excellence (using IT) is an initiative by the ,Network Computing
magazine to identify, recognize, and honor end-user companies in India that
have demonstrated the best use of technology to solve a business problem,
3.5.ASSOCIATE COMPANIES:
1. HDFC Limited
2. HDFC Bank
3. HDFC Asset Management Co. Limited
4. HDFC Securities Limited
5. HDFC Standard Life Insurance Company
6. Intel net Global
7. CIBIL Credit Information Bureau Investigation Ltd
8. HDFC Chubb General Insurance
OTHER COMPANIES:
HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Property Ventures Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Investments Ltd.
HDFC Holdings Ltd.
They are:
Maturity Benefit Plan
Should the life insured die during the term of the plan, the future premiums are
waived and the policy continues till maturity. On maturity, the beneficiary will
receive the sum assured and the accumulated bonuses. Bonuses under this plan are
of reversionary nature and are on sum assured (non-compounded).
Accelerated Benefit Plan
If the life insured dies the beneficiary will receive the sum assured and the
accumulated bonuses immediately, and the policy will terminate. Should the life
assured survive up to maturity, the sum assured and the bonuses will be paid.
Double Benefit Plan
Under this plan, on the death of the life insured during the premium paying term, the
beneficiary will receive the sum assured, and the future premiums are waived. On
maturity, the beneficiary will receive an additional sum assured plus bonuses.
HDFC Endowment Assurance Plan:
As a judicious family man, your priority is to secure the well-being of those who
depend on you. Not just for today, but also for the long term. With our HDFC
Endowment Assurance Plan, you can start building your savings today and ensure
that your family remains financially independent, even when you are not around.
This 'With Profits' plan is designed to secure your family's future by giving your
family a guaranteed lump sum on maturity or in case of your unfortunate demise,
early into the policy term.
Advantages:
Ideal way to secure your long-term financial goals and your family's financial
independence by giving a lump sum payment (basic Sum Assured plus any
Bonus Additions) on survival up to Maturity date
Provides invaluable protection to your family by way of lump sum payment
in case of unfortunate demise within policy term
Gives you the flexibility to customise your policy according to your needs by
adding any one of the 3benefit options available
You can choose to pay your premium as either Annually, Half-Yearly or
Quarterly depending on your convenience. You also have a range of
convenient auto premium payment options
Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961
Advantages:
Choose plan options as per your needs i.e. Classic or Premier or Elite
Uninterrupted savings with Waiver & funding of premiums for next 3 years
on the following events
o Pregnancy complications or birth of child with congenital disorder
o Diagnosis of malignant cancer of female organs
o Death of spouse (Only with Elite option)
Additional periodic cash payouts under Premier & Elite Options
3.8.ORGANIZATION STRUCTURE:
COMPETITORS:
4.1.RESEARCH METHODOLOGY:
Data collection:
For data collection, I developed a well defined questionnaire as a research
instrument ,consisting questions aimed to measure the consumer perception about
insurance company in India, their views and comments about Companys structure. I
conducted unstructured interviews (sample size) of 100 persons of different age
group in time duration of three days. All the data generated was primary data that
was generated from different peoples of age group under NCR region.
Primary data:
Individual respondents, Chartered
Accountants,TaxConsultants, Insurance Agents, Auto loan providers were personall
y visited andinterviewed. They were the main source of Primary data. The method
of collection of primary data was direct personal interview through a structured
questionnaire.
Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis
of organizational file, official records, newspapers, magazines, management books,
preserved information in the companys database and website of the company.
4.2.RESEARCH OBJECTIVES:
To know about the types of insurance policy taken by consumer
To know about the total sum assured of life insurance
To know about the total sum assured of life insurance for the spouse
To know about the share of public insurance in insurance sector
To know about the share of LIC in life insurance in insurance sector
know
about
brand
awareness
of
HDFC
Life
Insurance
and
4.3.Research design:
Research was initiated by examining the secondary data to gain insight into the
problem .The primary data is evaluated on the basis of the analysis of the secondary
data.
Developing the research plan:
The data for this research project has been collected through self administration.
Due to time limitation and other constraints direct personal interview method is
used. A structured questionnaire was framed as it is less time consuming, generates
specific and to the point information, easier to tabulate and interpret. Moreover
respondents prefer to give direct answers. In questionnaires open ended and closed
ended, both the types of questions has been used.
Sampling plan
Since it is not possible to study whole population, it is necessary to obtain
representative samples from the population to understand its characteristics.
Sampling Units:
Individual respondents for studying Customer Buying Behavior and Market
Segmentation, selected randomly from different areas in NCR, like various shopping
malls and markets ,Government Offices. Chartered Accountants, Tax Consultants,
Lawyers, Business Men, Professionals and House Wives of for recruitment of Life
Insurance Advisors
Sample Technique:
Random Sampling
Research Instrument:
Structured Questionnaire
Contact Method:
Personal Interview
Sample size
Study of Customer Buying Behavior and Market Segmentation: 100Respondents
Data collection instrument development
The mode of collection of data is based on Survey Method and Field Activity.
Primary data collection is based on personal interview. I have prepared the
questionnaire according to the necessity of the data to be collected.
4.4.Research limitations
The research is confined to certain parts of NCR and does not necessarily show
a pattern applicable to all of country.
Some respondents were reluctant to divulge personal information which can affect
the validity of all responses. In a rapidly changing industry, analysis on one day or
in one segment can change very quickly. The environmental changes are vital to be
considered in order to assimilate the findings.
Answe
r
1.
10th or
below
Count
Percent
1
1.00%
6.00%
Gradua
te
58
58.00%
Post
4. Gradua
te
29
29.00%
6.00%
100
100%
2. 12th
3.
5. Other
Total
0.726
Standa
rd Error
:
0.073
Answe
r
Count
Percent
1. Owned
40
40.00%
2. Rented
41
41.00%
Compa
ny
3.
provide
d
19
19.00%
100
100%
Total
0.743
Standa
rd Error
:
0.074
Answe
r
Count
Percent
1. Salary
56
56.00%
Self
2. employ
ed
35
35.00%
3. Retired
9.00%
4. Student
0.00%
5. NRI
0.00%
100
100%
Total
0.658
Standa
rd Error
:
0.066
Interpretation: : From the analysis 56% respondents are salary and 35% are
self employed and 9% are retired and 0% are student and 0% NRI
Answer
Count
Percent
1.
Private
limited
32
32.00%
2.
Partnershi
p
33
33.00%
3.
Public
limited
11
11.00%
4.
Public
sector
10
10.00%
5.
Governme
nt
12
12.00%
6.
Multinatio
nal
2.00%
100
100%
Total
Mean :
2.430
1.437
Standa
rd Error
:
0.144
Interpretation: : From the analysis 32% respondents are private limited and
33% are partnership and 11% are public limited and 1% are public sector and
12% are government and 2% are multinational
Answ
er
Count
Percent
Less
1. than
15%
39
39.00%
2.
1520%
48
48.00%
3.
2025%
9.00%
4.00%
4. More
than
25%
Total
100
100%
Mean :
Confidence Interval @ 95% :
1.78
Standard Deviation :
[1.628 - 1.932]
0
0.773
Standa
rd Error
:
0.077
Interpretation:: From the analysis 39% are less than 15% and 48% are 15-20% and
9% are 20-25% and 4% are 25% more than.
Answ
er
Count
Percent
1. Yes
85
85.00%
2. No
15
15.00%
100
100%
Total
0.359
Standa
rd Error
:
0.036
Interpretation: From the above analysis 85% are yes and 15% are no(85%
people are covered assessed to tax and the 15% are not be covered)
Answ
er
Count
Percent
1. Yes
92
92.93%
2. No
7.07%
99
100%
Total
0.258
Standa
rd Error
:
0.026
Answer
Life
1. protecti
on plain
Count
Percent
39
39.00%
2.
Educatio
n plain
19
19.00%
3.
retireme
nt plain
10
10.00%
4.
Health
plain
20
20.00%
Money
5. growth
plain
12
12.00%
100
100%
Total
1.473
Standa
rd Error
:
0.147
Interpretation: From the above result we find it 39% are life protection plain
and 19% are education plain and 1% are retirement plain and 2% health plain
and 12% are money growth plain .
Answ
er
Count
Percent
1. Yes
95
95.00%
2. No
5.00%
100
100%
Total
0.219
Standa
rd Error
:
0.022
Interpretation: From the above result we find that 100 respondent and 95% are
taken insurance life policy and 5% are no .
Answer
1. Profit
2.
Investm
ent
3.
Tax
saving
4.
Insuranc
e cover
Any
other
5.
please
specify
Total
Count
Percent
32
32.00%
31
31.00%
8.00%
24
24.00%
5.00%
100
100%
1.294
Standa
rd Error
:
0.129
Interpretation: From the above result we find that 100 respondent ,32% are
profit and 31% people are taken insurance propos investment and 8% are tax
saving and 24% are insurance cover and 5% are any other ..
Answer
Count
Percent
Life
1. insuranc
e
63
63.00%
Vehicle
2. insuranc
e
15
15.00%
Health
3. insuranc
e
18
18.00%
Agricultu
re
4.
insuranc
e
4.00%
100
100%
Total
0.917
Standa
rd Error
:
0.092
Interpretation: From the above result we find that 100 respondents , 63% are
taken life insurance and 15% are vehicle insurance and 18% are health
insurance and 4% people are taken agriculture insurance
Answer
Count
Percent
Highly
1. satisfact
ory
29
29.29%
Satisfact
ory
45
45.45%
3. Average
21
21.21%
Dis4. satisfact
ory
3.03%
Highly
dis
5.
satisfact
ory
1.01%
99
100%
2.
Total
0.851
Standa
rd Error
:
0.086
Interpretation: From the result we find that 100 respondents , 29% are highly
satisfaction and 45% are satisfaction and 21% are average and 3% dissatisfaction and 1% are highly dis-satisfaction Q13.
Reason for
investing in insurance plans of XYZ life insurance
Answer
1. Returns
Count
Percent
38
38.00%
Schemes
are good
33
33.00%
Recommen
ded by
3.
family and
friends
18
18.00%
Needs to
save tax
11
11.00%
100
100%
2.
4.
Total
Mean :
2.020
Confidence Interval @
Standard Deviation :
95% : [1.823 - 2.217]
1.005
Standa
rd Error
:
0.100
Interpretation: From the above result we find that 100 respondents , 38% are returns and 33% are scheme are
good and 18% are recommendation by family and friends and 11% are needs are save tax
5.1.1.STRENGTH:
1. Domestic image of HDFC supported by Prudentials international image is
strength of the company.
2. Strong and well spread network of qualified intermediaries and sales person.
3. Strong capital and reserve base.
4. The company provides customer service of the highest order.
5. Huge basket of product range which are suitable to all age and income groups.
6. Large pool of technically skilled manpower with in depth knowledge and
understanding of the market.
7. The company also provides innovative products to cater to different needs of
different customers.
5.1.2.WEAKNESS:
1. Heavy management expenses and administrative costs.
2. Low customer confidence on the private players.
3. Vertical hierarchical reporting structure with many designations and cadres
leading to power politics at all levels without any exception.
4. Poor retention percentage of tied up agents.
5.1.3.OPPORTUNITIES:
1. Insurable population According to ING only 10% of the population is insured,
which represents around 30% of the insurable population. This suggests more than
300m people, with the potential to buy insurance, remain uninsured.
2. There will be inflow of managerial and financial expertise from the worlds
leading insurance markets. Further the burden of educating consumers will also be
shared among many players.
3. International companies will help in building world class expertise in local market
by introducing the best global practices.
4. Insurance liberalization in India is expected to result in a wider choice of major
commercial insurance covers, such as fire, export credit.
5.1.4.THREATS :
1. Legislation could impact.
2. Great risk involved
3. Very high competition prevailing in the industry.
4. Vulnerable to reactive attack by major competitors.
5. Lack of infrastructure in rural areas could constrain investment.
6. High volume/low cost market is intensely competitive.
Explains about the reasons for investing in life Insurance. About 35.70 %
respondents have invested in life insurance due to higher risk coverage, 32.43%
respondents have invested in life insurance for tax saving and 19.65 % respondents
have invested in life insurance due to easy way to invest.
From the analysis this survey 39% people are saved the salary are less than
15% and 48% people are 15%-20% saved and 9% are saved 20%-25% and
4% saved 25% or more .
85% people are under cover the assessed and only 15% people are not cover .
93% people are says the insurance Is important and 7% people are asked
insurance is not important .
This survey is cleared by 95% people are taken the insurance policy (life
insurance ,vehicles insurance , fire insurance , theft insurance and health
insurance etc) and only 5% people are asked no.
Conclusion
All the insurance company must advertise more in the market because not all
people know more about life Insurance policy.
Make insurance policy which can buy any one so we can insured them
through this type of life insurance policy.
BIBLIOGRAPHY
BOOKS:
WEBSITES:
www.lic.in
www.hdfc.in
www.wikipidia.com
Annexure
Dear Sir/Madam;
Name: ..
Gender:
Contact No/Email id ;
12TH
Post graduate
Others
Graduate
2. Your residence is
Owned
Rented
Company provided
3. Your occupation
Salary
Self employed
Student
NRI
Retired
Partnership
Public limited
Public sector
Government
Multinational
15-20%
20-25%
No
No
Education plan
Health plan
Retirement plan
No
10. What are the reason you have opted to take insurance ?
Profit
Investment
Insurance cover
Tax saving
Vehicle insurance
Health insurance
12. Rate your overall satisfaction with insurance policy of XYZ life insurance .
Highly satisfactory
Satisfactory
Average
Dissatisfactory
Highly dissatisfactory