1.

ABSTRACT
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 a Group Company of the Standard Life,
UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in
the joint venture.
It was tried to see that how customer think and evaluate the
situation before investing in the Insurance in Indian market at the same
time it also tried to see that how customer behaves after investing in
HDFC Standard Life insurance. This research tried to find out the
awareness of the people towards the various policies related to Life
insurance. India has many life insurance companies like HDFC Standard
Life Insurance, ICICI Potential Life Insurance, Bharti Life Insurance,
Met Life Insurance situated in Gurgaon, Haryana. I went to these
branches to get the people and to find out their views. A structured
questionnaire of 7 questions was constructed in which each question
pertains to specific task. A sample of sample size 100 was taken of all
people in Gurgaon, HR. The data were analyzed for each question
separately given in questionnaire and interpreted along with. The
questionnaire is given in annexure. It has been concluded that most of
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the people in Gurgaon are salaried, well educated and have higher
income. Most of the People in Gurgaon have atleast one policy. They
generally do not want to go for new policy if they already have one. LIC
is the most popular choice. It is getting good competition from HDFC,
ICICI and Kotak Life Insurance. Reputation, trustworthiness and brand
image is very important for any life insurance company to survive in the
market.
Keywords:
premium

Life Insurance, return, services, brand image, policy,

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1.2

INTRODUCTION OF THE COMPANY

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 a Group Company of the Standard Life,
UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in
the joint venture.
MISSION
HDFC Standard Life Insurances mission is to be a World-Class
Indian Life Insurance Company. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with
the bank's risk appetite. The bank is committed to maintain the highest
level of ethical standards, professional integrity, corporate governance
and regulatory compliance. HDFC Bank's business philosophy is based
on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.

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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 Solutions
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 a 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

BOARD MEMBERS

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Mr. Deepak S Parekh is the Chairman of the Company. He is also

the Executive Chairman of Housing Development Finance Corporation
Limited (HDFC Limited). He joined HDFC Limited in a senior
management position in 1978. He was inducted as a whole-time director
of HDFC Limited in 1985 and was appointed as its Executive Chairman
in 1993. He is the Chief Executive Officer of HDFC Limited. Mr.
Parekh is a Fellow of the Institute of Chartered Accountants (England &
Wales).
GROUP COMPANIES
HDFC Bank
HDFC Mutual Fund
HDFC Securities
HDFC Reality.com
HDFC General Insurance Company Ltd.
Why Someone Need Insurance
Life insurance is designed to protect the people and its family
against financial uncertainties that may result due to unfortunate demise
or illness. One can also view it as a comprehensive financial instrument
as a part of ones financial planning offering the savings & investment
facilities along with cover against financial loss. By choosing the right
policy as per the needs i.e. customized solutions, one will be able to plan
for a secure future for oneself and its loved ones.

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Right Plan
Identifying the right plan basis ones need is the first crucial step
towards insurance planning. HDFC SLI helps its customer through this
decision by identifying his various needs and offering plans that are
customized for him. One may also choose a plan for oneself by
identifying the life stage one is at.
Analyzing Need
Protection
Investment
Saving
Pension
Once one has analyzed its needs as per above classification, he
need to then ascertain important factors such as type of cover, insurance
amount as per his income, life stage and dependents. It is difficult to
arrive at all these figures by him. HDFC SLIs financial consultants can
help its customer with all the analysis to offer a customised solution by
doing a thorough need analysis.
LIFE STAGES
Insurance need will change as the life does, from starting to work
to enjoying the golden years and all the stages in between. Each one of
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these stages may pose a different insurance need/cover for the people.
Below shown the basic life stages which help someone analyze various
insurance needs accordingly. Financial consultants are there to help
always.

Young & Single

An important stage where one lays down the foundation of a
successful life ahead. One should take advantage of the time and power
of compounding to ensure that he/she build up his/her dreams. One
should start saving early.
Needs
Save for home and wedding
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 Tax Planning
Save for golden years
Just Married
Marriage brings about a significant change. New dreams and new
opportunities also bring in additional responsibilities. While both people
look forward to a happy and secure life, it is equally important to ensure
that eventualities dont come in the way of shaping their dreams.
Needs
Planning for home
Save for vacation
Save for the first child
Proud Parents
Once one have children, one need for life insurance is even more.
She/he need to protect her/his family from an untoward incident.
Ensuring the protection umbrella takes into account the future cost of
securing the childs dream. One will want life to go on for its loved ones,
and having enough life insurance is a way to help ensure that.
Need
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 Provide for a children education

Loan liabilities
Saving for post-retirement
Planning for Retirement
While one is busy climbing the ladder of success today, it is
important for one to take time and plan for ones life after retirement.
Having an early start for retirement planning can make a significant
difference to its savings. One should think about ones golden years even
before one has reached them. The key is to think ahead and plan well
using the time and money.
Need
Provide for regular income post retirement
Immediate tax benefits
Lead a secure lifestyle

CUSTOMER SERVICES
HDFC Standard Life is committed to maintaining the highest level
of customer service. Interacting with the customers via its website is an
extension of this commitment.
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It has designed the 'Customer Service' section keeping in mind all

the information one may want to seek regarding procedures such as
paying the premium, various policy servicing options, processing a
claim and so on. It has also provided the relevant forms that can be
downloaded easily from its website www.hdfcinsurance.com which
contains all the relevant information.
One can now access the policy details online and manage its
insurance portfolio anytime and anywhere at the click of mouse.
CLAIMS
HDFC Standard Life Insurance (HDFC SLI) understands that
bereavement can be difficult to deal with, especially when one have to
arrange for all the formalities in case of insurance claims. HDFC
Standard Life lends a helping hand by enabling faster settlement of
claims and helps the family financially at the time of distress.
For any assistance or query relating to reporting claims (Death
Claims/Critical Illness Claims) one may get in touch with the company
by emailing it and the company will get back to him with the details that
will be required to process a claim.
HDFC BANK
The Housing Development Finance Corporation Limited (HDFC)
was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as
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part of the RBI's liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January
1995.
On the 18th of February, 1995, the then finance minister, Dr.
Manmohan Singh, inaugurated the first branch of a new bank called
HDFC Bank. Promoted by India's premier housing finance institution, it
was the first private sector bank to have received a license from the
Reserve Bank of India, after the banking sector was thrown open to new
players. Driven by the vision and leadership of a highly respected senior
management team, and thanks to the dedicated efforts of thousands of
employees over the last 10 years, HDFC bank has today emerged as one
of the leading banks in the country.
From the beginning, HDFC Bank began operations with the
mission of becoming a World-class Indian Bank, and the endeavour of
fulfilling all the financial requirements of its customers under one roof.
Over the years, by delivering superior financial products and services,
HDFC bank has built a stable and long-lasting relationship with nearly
seven million customers, without compromising its standards for
maintaining high quality associations. Its culture for learning; quick
absorption of latest and best technologies; and unwavering adherence to
best practices in governance have been the core strengths that have
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brought it to present position. Constantly learning through the growth,

HDFC bank has continued to use the dividends of its leadership position
to fuel further expansion and presence. Today, ten years later, HDFC is
the market leader, or one of the top three, in most of the segments that it
operate in. Today, HDFC bank is recognized by many to be the best in
many respects. However, its journey to be pre-eminent in every possible
sphere continues, and it drive to become even better at serving its
customers becomes stronger.
In a milestone transaction in the Indian banking industry, Times
Bank Limited (another new private sector bank promoted by Bennett,
Coleman & Co./Times Group) was merged with HDFC Bank Ltd.,
effective February 26, 2000. As per the scheme of amalgamation
approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for
every 5.75 shares of Times Bank. The acquisition added significant
value to HDFC Bank in terms of increased branch network, expanded
geographic reach, enhanced customer base, skilled manpower and the
opportunity to cross-sell and leverage alternative delivery channels.
HDFC Bank offers a wide range of commercial and transactional
banking services and treasury products to wholesale and retail
customers. The bank has three key business segments:
Wholesale Banking Services
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The

Bank's

target

market

ranges

from

large,

blue-chip

manufacturing companies in the Indian corporate to small & mid-sized

corporate and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services,
cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for
its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognised as a
leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange
members and banks

Retail Banking Services

The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services, giving
the customer a one-stop window for all his/her banking requirements.
The products are backed by world-class service and delivered to the
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customers through the growing branch network, as well as through

alternative delivery channels like ATMs, Phone Banking, NetBanking
and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals,
the HDFC Bank Plus and the Investment Advisory Services programs
have been designed keeping in mind needs of customers who seek
distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan
products including Auto Loans, Loans against marketable securities,
Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International
Debit Card in association with VISA (VISA Electron) and issues the
MasterCard Maestro debit card as well. The Bank launched its credit
card business in late 2001. By September 30, 2005, the bank had a total
card base (debit and credit cards) of 5.2 million cards. The Bank is also
one of the leading players in the "merchant acquiring" business with
over 50,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments.
Treasury

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Within this business, the bank has three main product areas Foreign Exchange and Derivatives, Local Currency Money Market &
Debt Securities, and Equities. With the liberalization of the financial
markets in India, corporate need more sophisticated risk management
information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team.
To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business
is responsible for managing the returns and market risk on this
investment portfolio.

CAPITAL STRUCTURE
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5
billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The
HDFC Group holds 22.1% of the bank's equity and about 19.4% of the
equity is held by the ADS Depository (in respect of the bank's American
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Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by

Foreign Institutional Investors (FIIs) and the bank has about 190,000
shareholders. The shares are listed on the The Stock Exchange, Mumbai
and the National Stock Exchange. The bank's American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the
symbol "HDB".
CARPORATE GOVERNANCE
HDFC Bank recognizes the importance of good corporate
governance, which is generally accepted as a key factor in attaining
fairness for all stakeholders and achieving organizational efficiency. This
Corporate Governance Policy, therefore, is established to provide a
direction and framework for managing and monitoring the bank in
accordance with the principles of good corporate governance
The Bank believes in adopting and adhering to best recognized
corporate governance practices and continuously benchmarking itself
against each such practice. The Bank understands and respects its
fiduciary role and responsibility to shareholders and strives hard to meet
their expectations. The Bank believes that best board practices,
transparent disclosures and shareholder empowerment are necessary for
creating shareholder value.
The Bank has infused the philosophy of corporate governance into
all its activities. The philosophy on corporate governance is an important
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tool for shareholder protection and maximization of their long term

values. The cardinal principles such as independence, accountability,
responsibility, transparency, fair and timely disclosures, credibility etc.
serve as the means for implementing the philosophy of corporate
governance in letter and spirit.
BOARD
The Composition of the Board of Directors of the Bank is
governed by the Companies Act, 1956, the Banking Regulation Act,
1949 and the listing requirements of the Indian Stock Exchanges where
securities issued by the Bank are listed. The Board has strength of 12
Directors as on March 31, 2008. All Directors other than Mr. Aditya
Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-executive
directors. The Bank has five independent directors and seven nonindependent directors. The Board consists of eminent persons with
considerable professional expertise and experience in banking, finance,
agriculture, small scale industries and other related fields.
None of the Directors on the Board is a member of more than 10
Committees and Chairman of more than 5 Committees across all the
companies in which he/she is a Director. All the Directors have made
necessary disclosures regarding Committee positions occupied by them
in other companies.

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NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has
an enviable network of over 761 branches spread over 327 cities across
India. All branches are linked on an online real-time basis. Customers in
over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in
all major industrial and commercial centers where its corporate
customers are located as well as the need to build a strong retail
customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centers where the NSE/BSE has a strong and active
member base.
The Bank also has a network of about over 1794 networked ATMs
across these cities. Moreover, HDFC Bank's ATM network can be
accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001.
Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of
India.

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The Managing Director, Mr. Aditya Puri, has been a professional

banker for over 25 years, and before joining HDFC Bank in 1994 was
heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals
with a wealth of experience in public policy, administration, industry
and commercial banking. Senior executives representing HDFC are also
on the Board.
Senior banking professionals with substantial experience in India
and abroad head various businesses and functions and report to the
Managing Director. Given the professional expertise of the management
team and the overall focus on recruiting and retaining the best talent in
the industry, the bank believes that its people are a significant
competitive strength

1.3

SCOPE OF STUDY
This study will give perspective people who want to take life

insurance policies an insight about various phenomenon and criteria

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while investing in the life insurance policies. The investing in the life
insurance is a long back phenomenon and various theories has been
proposed to get the people better return.
This study will help the life insurance companies to understand
better the market insights and its various tenets. It will help them to
understand the various criteria adopted by people while investing life
insurance policies. In this way, we can see that it automatically
encompasses large chunk of peoples and their behavior with respect to
life insurance policies of various companies.
This study will help experts and professionals to understand
whether people either consciously or subconsciously rely on the market
information while selecting the life insurance policies. It also includes
whether well informed people make decision about the policies to
market information or they also consider the human psychology while
go for investing in the life insurance policies.
In this way we found that this study ranges to a very wide scope
which constitutes the profound respondents behavior, further discussion
and debate on the topic. In this way it will prove to be beneficial for
students, professionals, educationist, respondents as well as companies
and others.

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1.4

OBJECTIVES

Main Objectives:

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1. To find and analyze the demography of the people and to find

correlation with the investment pattern towards various life
insurance policies.
2. To understand the behavior of people and their different criteria
before investing in life insurance policies.
Sub Objectives:
1. To help people and companies to understand the various tenets of
life insurance market.
2. To help management students to understand behavior of the
respondents with respect to life insurance market.

1.5

LIMITATIONS OF STUDY

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 Unresponsiveness of some respondents was main limitation, which

may be due to the fear of leakage of data or losing competitiveness
in the industry.
Transportation and time constraint were other limitations, which
resorted us to constraint our study in a particular location.

2.1

RESEARCH DESIGN

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The research will be analytical in nature as it will analyze the

demography of people who want to invest in life insurance policies and
its correlation to the investment pattern of people, various criteria
adopted by people and its behavior while they go for investing in the life
insurance policies. The research design will mainly consist of five parts;
a.

Hypotheses

b.

Data Collection

c.

Sample Design

d.

Survey Design

e.

Data Analysis

2.1.1

Hypotheses
The following hypotheses were undertaken:
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HYPOTHESIS 1:

All people of Gurgaon have life insurance policy.

HYPOTHESIS 2:

All people of Gurgaon need another new life

insurance policy.

HYPOTHESIS 3:

People want the policy of Rs. 50000 & Rs.100000

in the ratio of 5:3

HYPOTHESIS 4:

People want Life Insurance policy especially for

kids education.

HYPOTHESIS 5:

Half of the people want only the policies of LIC

corp.

HYPOTHESIS 6:

People look for reputation and trustworthiness of

companies.

2.1.2

Data Collection

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Data will be primary as well as secondary in nature. The primary

data has been taken through the people who invest in life insurance
policies in Gurgaon. This data is necessary to know about the
respondents demography, their view and their various considerations
while investing.
The secondary data has been collected for getting the knowledge of
various theories prevailed in the market and for various development in
the life insurance market etc. The secondary data will be collected
mainly through internet, books, journals, newspaper etc.

2.1.3

Sample Design
Sample unit:

The people in Gurgaon above 20 years old, HR

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Sample size:

100

For the collection of primary data, all the people in Gurgaon

who are above 20 years old will be taken as sample unit since their
demography, ideas, consideration and various criteria will be required.
2.1.3 Survey Design
Instrument:
Scaling:

A structured questionnaire consisting 8 questions

Nominal, interval and attitude scale

For survey of all the people who are above 20 years old in
Gurgaon, a structured questionnaire consisting 8 questions was prepared
where each question measures the specific attribute associated with
people. The questionnaire was consisting some objective questions and
open ended response questions. The questionnaire is given in the
annexure. The data were collected mainly at the life insurance
companies as HDFC, ICICI, Kotak Life, Aviva and Birla sunlife. These
offices are situated at sector 14 and JMD tower near Sahara Mall in
Gurgaon which is quite a prominent landmark in Gurgaon, HR India.

2.1.5 Data Analysis

Techniques:

Z-test and 2 - test

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The primary data will be analyzed according to the scaling

used in the questionnaire. The questions based on nominal scale were
analyzed through tabulation, percentage sharing and pie charts. Then a
proper Z-test and 2 - test will be followed.

3.1

DATA ANALYSIS

3.1.1 Gender wise Distribution of Respondents

According to the survey of people in Gurgaon, Following
data were obtained.
Table 3.1: Gender wise Distribution of Respondents
Gender
Respondents

Male
74

Female
26

This figure can also be visualized through the pie chart as given
below
Figure 3.1: Gender wise Distribution of Respondents

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 Interpretation
It is found that 74% of the respondents are male. Female just
constituted 26% of the total sample size. It showed that life insurance
market decision is very much influenced by the males in Gurgaon.

3.1.2 Age wise Distribution of Respondents

Table 3.2: Age wise Distribution of Respondents
Age (Yr)

Below

20-30

30-40

40-50

50-60

Above

20
60
Respondents
10
58
22
4
4
2
It will be worth to mention that during travelling for the survey;
many people who aged between 20 to 30 years old. Most of the
respondents are found in the trading shops as ICICI, Kotak Life, Aviva
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and Birla Sunlife etc. which are located in sector-14 and JMD tower near
Sahara Mall in Gurgaon. Selection of respondents was based upon the
availability and completely randomness without any biases.
Figure 3.2: Age wise Distribution of Respondents
Age wise Distribution of Investors
4%

4% 2%

10%

Below 20
20-30
30-40
40-50
50-60
Above 60

22%

58%

Interpretation
From the pie chart given above, it showed that 58% of the peoples fall
between 20-30 years of age. It is found that most of the respondents in
Gurgaon are youth. According to previous data, most of these youth
found male.
3.1.3 Profession wise Distribution of Respondents
To get the information about the profession of the peoples, six
options has been given in the questionnaire which are following.
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 Student
Salaried without family
Salaried with family
Businessman
Retired
HW
This information was required to know about the responsibility
over the respondents as it was assumed that an respondent with family is
suppose to have more responsible prior to investing as compared to
those respondents who are salaried without family. Student are found to
be least responsible while people between 20 to 30 years old were found
to be more responsible as they were more interested.
Following is the table to show the actual picture of the various
respondents
Table 3.3: Professions wise Distribution of Respondents
Profession

Student

Salaried

Salaried

Businessman Retired HW

without family with family

Respondents

22

56

18

14

Now it can be seen that respondents salaried without family are bit
more than salary with family. But according to the data, salaried people
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are dominating over the figures. It can be clearly seen that according to
the sample data, out of 100 respondents, 76 are salaried. It can also be
reviewed through the statistics in following graph.
Figure 3.3: Professions wise Distribution of Respondents

Interpretation
It can be seen from the chart that 76% of the respondents are
salaried. Salaried without family found more than salaried with family
but together they found to have the big chunk of the pie. Next came to
student with 12% which found to be youth again.
3.1.4 Qualification wise Distribution of Respondents
To get the information about the qualification of the respondents,
four options has been given in the questionnaire which are following.
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 10+2
Graduate
Post-Graduate
Other
Table 3.3: Qualification wise Distribution of Respondents
Options
Respondents

10+2
6

Graduate
22

Post-Graduate
66

Other
6

Figure 3.4: Qualification wise Distribution of Respondents

Interpretation
It can be seen from the chart that 66% of the respondents are postgraduate. It shows that most of the respondents are well qualified. It is a
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good thing so that people can easily understand the various sort of
policies and their benefit.

3.1.5

Income wise Distribution of Respondents

Figure 3.4: Income wise Distribution of Respondents

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Income (lacs)

1.0-1.5

1.5-2.5

2.5-3.5

Respondents

10

3.5-5.0 5.0-6.0 6.0-8.0 Above 8.0

22

16

34

18

It can be seen here that average respondents have the income on

higher side as around 3.5 lacs and above. Out of 100 respondents, 68
respondents came to this category which shows that they constitute a big
chunk in the pie as shown in the figure below.
Figure 3.5: Income wise Distribution of Respondents

It can be seen here that 68% of the respondents are having income
more than 3.5 lacs. !8% of the respondents are having income more than
6 lacs per annum.

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 Interpretational
It was found that the respondent, who invests in share market,
generally considered as more risky, poised to get more return as well.
This may be the reason that average respondent found to have more than
average income.
Secondly, as it has seen earlier that most respondents are youth.
From this it can be interpret that most of these youths are on higher side
of income.

3.1.5

Life Insurance policy Holders

This question was asked to know that how many respondents have

life insurance policy.

Table 3.6: Life Insurance Policy Holders
Options
Respondents

Yes
76

No
24

The responses were more for first option Yes. It shows that most
people are aware of the benefit of the life insurance policy. Out of those
people who have the life insurance policies, 68% preferred LIC (Life
Insurance corp. of India).
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Figure 3.8: Life Insurance Policy Holders

Here it can be seen that 76% of the respondents have the life
insurance policies.
Applying the z-test:
p = 0.76

q = 0.24

(Standard error)

= [(pq)/n]^(0.5)

= [(0.760.24)/100] ^(0.5)
= 0.0433
= 4.33 %
Taking the confidence level of 95%
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p + z. = 76 + 1.96 4.33
=

76 + 8.487

67.51% to 84.48%

( Hence Hypothesis -1 is rejected)

Interpretation
Hence we see that there is very little standard deviation in the yes
response. It shows that people are very much interested in life insurance
policies. We can see that around 67% to 84% people may have life
insurance policy which is quite good in statistics. It led to the rejection
of hypothesis-1 which assumed the 100% inclination towards LIC
policies.
3.1.7 Interestedness in new/another life insurance policy
This question depends upon the response of previous question
(Holding of life insurance policy).
Yes =

Respondents may look for another policy

No =

Respondents may look for new policy

3.7: Another Policy

Options
Respondents

Yes
6

No
70

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It can be seen here that responses are overwhelmingly for the

response No while there were very few people who went for Yes
option.
Figure 3.7: Another policy

Here it can be seen that 92% of the respondents went for the option
Yes and 8% went for the option No.
Applying the z-test:
p = 0.92

q = 0.08

(Standard error)

= [(pq)/n]^(0.5)

= [(0.920.08)/100] ^(0.5)
= 0.0271
= 2.71 %
Page | 39

Taking the confidence level of 95%

p + z. = 92 + 1.96 2.71
=

92 + 5.3116

86.69 % to 97.31 %

Hence Hypothesis-2 is rejected as there is not complete inclination for

another policy.
Interpretation
It can be interpret that those people who already have the life
insurance policies, they are generally not going for new policies. The
maximum range goes upto 100% which shows people generally do
not want more than one life insurance. One life insurance policy
seems to be enough for them. Very few people as 8% were like to go
for another policy. The reason was that they want to go for further
investment.
3.8: New Policy
Options
Respondents

Yes
16

No
8

Page | 40

It can be seen here that responses are more for the response Yes
while there were very few people who went for No option.
Figure 3.8: New policy

Here it can be seen that 67% of the respondents went for the option
Yes and 33% went for the option No.
Applying the z-test:
p = 0.67

q = 0.33

(Standard error)

= [(pq)/n]^(0.5)

= [(0.670.33)/100] ^(0.5)
Page | 41

= 0.0470
= 4.70 %
Taking the confidence level of 95%
p + z. = 67 + 1.96 4.70
=

67 + 9.212

57.78% to 76.21%

Interpretation
It can be interpreted that those people who do not have the life
insurance policies, they are generally going for new policies. At
maximum, around 76% of the people were interested in new policy. It
is very good in number. There were also few people who do not want
to go for new policy. It may be those people who may be student or
unmarried people having least responsibility.

3.1.8

Amount of Life Insurance Policy

This question was asked to know about the amount the

respondents want to invest in life insurance policy.

Page | 42

Table 3.10: Amount of Life Insurance Policy

Options

50000 -

1 lac 3

3 lacs - 5

5 lacs - 10

Above

Amount

100000
54

lacs
38

lacs
6

lacs
2

10
-

Most of the respondents were going for around Rs. 50000 100000. After it came to 1 lac - 3 lacs. Very few people went for more
than that.
Figure 3.10: Amount of Life Insurance Policy

Applying Chi-Square Test:

Observed
Amount
(O)
50000 100000
54
100000 300000
38

Expected
(E)
50
30

(O-E) (O-E)2 (O-E)2/E

4
16
0.320
8
64
2.133
Page | 43

300000 500000
500000 1000000

Degree of freedom

6
2
100

14
6
100

-8
-4

64
16

4.571
2.667
9.691

= 4-1
=3

Taking level of significance

= 5%

Calculated 2

= 5.991

Since observed value is grater than expected value hence hypothesis-3 is

rejected.
Interpretation
It can be seen from the test that people generally go for Rs. 50000 and
Rs. 100000 in bulk and ratio is somewhat near to 5:3. It found that
most of the respondents consider risk in moderate way while
investing in the life insurance policy. Presently they do not want to go
for large amount while investing. The main reason may be that it
doesnt give return in short term.
3.1.9

Reasons for opting Life Insurance Policy

This is evidently quite an important question asked to respondents

that why they want to go for the life insurance policy. The options were
following.
Page | 44

 Saving Tax
Wife
Kids Education
Kids Marriage
Parents
Other
The findings are following.

Figure 3.11: Reasons for opting Life Insurance Policy

Options

Tax

Respondents

Saving
12

Wife

Kids

Kids

18

Education
38

Marriage
22

Parents Other
10

Page | 45

Figure 3.11: Reasons for opting Life Insurance Policy

Applying Chi-Square Test:

Options
Tax Saving
Wife
Kids
Education
Kids Marriage
Parents

observed
12
18

expected
20
20

O-E
-8
-2

38
22
10
100

30
20
10
100

8
2
0

Degree of freedom
Taking level of significance

(O-E)2 (O-E)2/E
64
3.200
4
0.200
64
4
0

2.133
0.200
0.000
5.733

= 5-1
=4
= 5%
Page | 46

Calculated 2

= 9.488

Since observed value is less than expected value hence hypothesis-4 is

accepted.
Interpretation
It found that the responses were more inclined towards the kids
marriage and kids education, wife and tax saving got almost same
preferences. These all are very much long term in nature. It shows that
people are generally opting for life insurance policies for long term
investment.
3.1.10

Preference of Life Insurance Companies

This question was there to know about the respondents view about
various life insurance companies. The options were following.
LIC
HDFC
ICICI
Kotak Life
MetLife
Birla Sun Life
Other
Table 3.12: Preference of Life insurance Companies
Options

LIC HDFC ICICI

Kotak

Met

Birla Sun

Other
Page | 47

Life
life
Life
Respondents 42
16
18
14
4
4
Figure 3.12: Preference of Life insurance Companies

Applying Chi-Square Test:

Options
Observed(O) Expected(E)
LIC
42
50
HDFC
16
26
ICICI
18
14
Kotak Life
14
4
Met Life
4
2
Birla Sun
Life
4
2
Others
2
2
100
100
Degree of freedom

O-E
-8
-10
4
10
2

(O-E)2
64
100
16
100
4

(O-E)2/E
1.280
3.846
1.143
25.000
2.000

2
0

4
0

2.000
0.000
35.269

= 7-1
=6
Page | 48

Taking level of significance

= 5%

Calculated 2

= 12.592

Since observed value is more than expected value hence hypothesis-5 is

rejected.

Interpretation
Here it found that less than half of the respondents were opting LIC
as their most preferred option. It is getting close competition from
HDFC, ICICI, and Kotak Life Insurance. It shows that there are now
many players in the market trying to get the bigger chunk of pie. LIC is
certainly the market leader but HDFC, ICICI, and Kotak Life Insurance
are potential market challenger.
3.1.11

Various Criteria for opting Life Insurance Policies

This question was asked by respondents to know about the various

criteria considered before investing in Life Insurance Policies.

The

options were following.

Reputation
Type of Policy
Return
Page | 49

 Services
Trustworthiness
Other

Table 3.13: Various Criteria for opting Life Insurance Policies

Options

Reputation Type Return Services Trustworthiness Other

of

Respondents

12

Policy
24

20

38

Figure 3.13: Various Criteria for opting Life Insurance

Policies

Page | 50

.
Applying Chi-Square Test:
Options
Observed(O) Expected(E)
Reputation
12
30
Type of Policy
24
10
Return
20
20
Services
6
10
Trustworthiness
38
30
100
100
Degree of freedom

= 5-1

O-E (O-E)2
-18
324
14
196
0
0
-4
16
8
64

(O-E)2/E
10.800
19.600
0.000
1.600
2.133
34.133

=4

Taking level of significance

= 5%

Calculated 2

= 9.488
Page | 51

Since observed value is more than expected value hence hypothesis-6 is

rejected.
Interpretation
It is found that maximum respondents were seeing trustworthiness
before going for the life insurance policy. It is followed by type of
policy, return and reputation. It came contrary to our belief that return
may be a very important factor. It is evident that trustworthiness, brand
image and reputation are important factor for any life insurance
company. It is so because life insurance is a long term plan and long
term plan depends very much on trustworthiness, reputation, brand
image etc.

3.1.12.

Various Criteria for opting type of Policies

This question was asked by respondents to know about the various

criteria considered before investing in Life Insurance Policies.

The

options were following.

Young star
Young star plus
Pension plan
Pension plan plus
Page | 52

 other

Table 3.14: Various Criteria for opting type of Policies

Options

Young

Young star

Pension

Respondents

star
20

plus
40

plan
10

Pension plan Other

plus
30

Interpretation
Here it found that 40% respondents were opting young star plus and
pension plan plus their most preferred option. It shows that there are
now many people in the market trying to get the bigger chunk of pie.

Page | 53

CONCLUSION
Most of the people who go for investing in life insurance policy,
were male. It shows that most of the families are patriarch in nature
where male is the decision maker. Maximum people were found to be
adult, married, salaried, with nuclear family as well as with parents. It
shows the responsibility level, which was found high. Peoples were
mostly post graduate especially having MBA degree. It shows the high
educational level of peoples in Gurgaon. They also having high income
range varying 3.5 lacs to 5.0 lacs per annum. It shows that they have the
potential of investing handsomely in life insurance policies as well.

Page | 54

Most of the peoples were found to have at least one life insurance
policy. It shows the awareness and responsibility level of people which
is high. If a person has a policy, then he generally will not go for another
policy. People generally do not invest in high amount in life insurance
policy. They generally go for Rs. 50000 to 1 lac.
People generally go for life insurance policy for the future of their
kids and wife. Saving the taxes was also an important measure. People
generally go for LIC (Life Insurance Corporation of India) as their
preferred choice for investing. It then followed by ICICI, HDFC, Kotak
Life etc. It shows that LIC is still the market leader but it is getting good
competition from other players in market.
For any life insurance company, brand image, trustworthiness and
reputation is very important. Return and services also play a very
important role. Since life insurance policy is generally a long term plan
hence these things matters too much.

Page | 55

RECOMMENDATIONS

Transparency is an important factor. Life insurance policies should

be transparent and easily understandable so that investor would not
face any problem in future.
Life Insurance Companies should go for good marketing technique
so that their brand image could be established and people can trust.
Services are very important thing while marketing the various
policies. It should be good.

Page | 56

 Policy amount should be less so that more people can invest and
risk could be minimize further.

BIBLIOGRAPHY
References
1. Beri, G. C. (2005) Marketing Research 3rd edition, Tata McGraw
Hill Publication, New Delhi, India.
2. Kothari, C. R. (2007) Research methodology 3rd edition, Wishwa
Prakashan, New Age International (P) Ltd. Daryaganj, New Delhi,
India.
3. Kotler Philip, (2007) Marketing Management, Prentice
Hall of India Pvt. Ltd. New Delhi, India
Page | 57

4. Schiffman. Leon G., (2005) Consumer Behavior, Prentice

Hall of India Pvt. Ltd. New Delhi, India
5. Gitman, Lawrence J. (2007) Principles of Managerial Finance
11th edition, Dorling Kindersley ( India ) Pvt. Ltd., Licensees of
Pearson Education in South Asia.
6. Zikmund, William G. (2007) Business Research 3 rd edition,
South-Western, Thomas Learning Inc. USA
7. Trachim, William M. K. (2007) Research Methods 2 nd
edition, Biztantra, Dreamtech Press, Daryaganj, New Delhi,
India
8. Shimp, Terence A. (2003) Advertising, Promotion 6 th
edition, South-Western, Thomas Learning Inc. USA
9. Cohn, Jaffrey M., Khurana, Rakesh, Reera, Laura (Oct. 2005)
Growing Talent as if your Business Depend on it Page 62.
Harward Business Review, USA
10.

Subramaniam, R., (Apr. 2008) Is Investment in

Insurance Products a Worthwhile Option? A study based on

Page | 58

HDFC Life Insurance Plans Vol. V, No. 2. The ICFAI

Journal of Risk & Insurance, Hyderabad, India
11.

Singh, Fulbay, Chawla, Sonia (July 2007) Life

Insurance Regulatory Framework in India: Development

Issues and Concerns The ICFAI Journal of Insurance Laws,
Hyderabad, India
12.

Chaudhari, Sandeep Ray, Chakraborty, Joy, (Apr. 2008)

Private Life Insurance Companies in India: Strategizing

Ways to Overcome the Product-Selling Challenges Vol. V,
No. 2 The ICFAI Journal of Insurance Laws, Hyderabad,
India
13.

http://en.wikipedia.org

14.

www.knowldgedigest.com

15.

www.banknetindia.com

16.

www.insuremagic.com

17.

www.irda.co.in

18.

www.hdfcinsurance.com

19.

www.hdfc.com
Page | 59

20.

www.naredw.org

21.

www.valueresearch.com

QUESTIONNAIRE

Gender: M

Date:

Place:
Age: 20-25
50-60

25-30

30-35

35-40

40-50

above 60

Profession:

Student

with family

Businessman
Retired

Qualification:

Salaried without family

Salaried

HW

10+2 Graduate

Post-Graduate

Other

Page | 60

Income (lacs): 1-1.5

5-6

6-8

1.5-2.5

2.5-3.5

3.5-5

above 8

1. Do you have any Life Insurance Policy presently?

No

Yes

If Yes, Kindly mention it alongwith amount(Rs.)

2. Are you interested in another/new Life Insurance Policy?

Yes

No

3. What amount of Life Insurance Policy you require?

Rs. 50000 1 lac
1 lacs 3 lacs
3 lacs 5
lacs
5 lacs 10 lacs
above 10 lacs
4. Why you want to take Life Insurance Policy?
for saving tax for wife for kids education for kids
marriage
for parents
Other, kindly mention
it.
5. Do you want to take Life Insurance for other family member?
Yes

No

If Yes, Kindly mention it.

6. Which Company policy you will prefer to purchase?

LIC HDFC ICICI Kotak Life
Birla Sun Life

Metlife

Page | 61

 Other, Kindly Mention

it..
WHY?
7. What are the various criteria, you consider before investing in life
Insurance?
Reputation

Type of policy

Trustworthiness

Return Services

Other, kindly mention

it..
8. Which type of policy you will recommend?
Young star

Young star plus

Pension plan

Pension plan plus

Other , kindly mention

it..

Page | 62