Project Report On

“Comparative analysis of “DHFL Pramerica” with

“BAJAJ Alllianz” Life Insurance Company”

Submitted to: Submitted by:

Mr.Malkeet Singh Rajwinder kaur

Assistant Professor BBA 5TH SEMESTER

Roll NO: 1343845

Department of Management
CT GROUP OF INSTITUTION ,JALANDHAR
 DECLARATION

I hereby declare that this project work entitled “Comparative analysis ofDHFL
Pramerica” with BAJAJ Allianz life insurance company” is my work, carried out under
the guidance of my faculty guides Assistant Professor Mr. Malkeet Singh and my
company guide Mr. Gurpreet Singh. This report neither full nor in part has ever been
submitted for award of any other degree of either this management college or any other
management college.

Countersigned

( ) ( )

Supervisor Candidate
CERTIFICATE

This is to certify that the summer training was done on “Comparative analysis of DHFL
Pramerica with BAJAJ Allianz life insurance company” submitted to ct group of institution

Engineering And managment Technology, jalandhar by Rajwinder kaur in partial fulfillment of

the Requirement for the award of Graduation of BBA is a bonafide work carried out by him under
my

Supervision and Guidance. This work has not been submitted anywhere else for other

Degree/diploma. The original work was carried during 01/06/2015 to 15/07/2015 in “DHFL

PRAMERICA LIFE INSURANCE CO.LTD

Date Mr. Harmeet Singh

Exicutive Sales Manager
DHFL Pramerica Co.Ltd
ACKNOWLEDGEMENT

I am also thankful to Mr. HARMEET SINGH, my Company DHFL PRAMERICA LIFE

INSURANCE CO. LTD, CHANDHIGARH, for his valuable guidance for preparing the Final Report

and also for providing the necessary facilities.

I am extremely thankful to Mr. MALKEET SINGH faculty Guide of CT GROUP OF

INSTITUTION,JALANDHAR for their timely guidance and support throughout the project work.

Finally I am indebted to our other faculty members, my friends and my parents who gave their full-

fledged co-operation for successful completion of my project.

It was an indeed learning experience for me.

RAJWINDER AKUR
Content Page No.

CHAPTER No. 01
…………………
1.1. Abstract ………….. 01
……………….
1.2. Introduction ……………..02
……………….…
1.2.1. Insurance Industry ………….. 02
…………………
1.2.2. About The Project …………..0 4
…………………
1.2.3. Purpose of the Project …………..04
…………………
1.2.4. Scope of the Project …………..0 5

CHAPTER NO. 02
……………………
2. Review of Literature …………06
……………………
2.1. About Insurance Industry in Brief ……… …06
… ………………
2.2. Logic of Insurance … …………06
… ………………
2.3. Need of Insurance … …………07
……………
……………
2.4. Insurance in India … …07
……………… …………
2.5 History of Insurance in India … …08
…………
2.6 Life Insurance Corporation Act.…………
1956 … ….. 09
…………………
2.7 General Insurance Business … …………10

CHAPTER NO. 03

3.1. Insurance Regulatory and Development Authority of India, Act…10

Content Page No.

CHAPTER NO. 04
…………………
4.1. Different Insurance Companies ………….. 11

4.1.1. Top 10 Insurance Companies in India……………..13

4.2. Market share of Indian Insurance Companies ……… ………...17

……………
…………..1
4.3. Booming Insurance Market …… 8

CHAPTER NO. 05
…………………
5.1. Advantage of Life Insurance ………….19

CHAPTER NO. 06
…………………
6.1. Type of Insurance product …………..22
………………
6.1.1. Term Insurance Plan … .………….22
…………………
6.1.2. Endowment Assurance Plan ..…………. 22
. …………
6.1.3. Money Back Policy …………… ……22
…
… …………….……
6.1.4. Whole life Plan … …..23
… ………………
6.1.5. Pension Plan … ………...23
…………………
6.1.6. Child Plan …………...24
…………………
6.1.7. ULIP ………….. 24
 Page No.
Content

CHAPTER NO. 07
……………
7. 1. Marketing mix in Insurance Industry ……..25
……………
7.1.1. Introduction ……..25
……………
7.1.2. Insurance Marketing ……..26

7.1.3. Marketing mix for Insurance Company ………………….26

.……………
7.1.3.1. Product …… 27
…………
7.1.3.2. Price ……….28
………….
7.1.3.3. Place ………30
…………..
7.1.3.4. Promotion ………31
………..…
7.1.3.5. People ………32
……...……
7.1.3.6. Process ………32

7.1.3.7. Physical Distribution………………….33

CHAPTER NO. 08
……………
8.1. Costumer For DHFL Pramerica Insurance Company ……35

CHAPTER NO. 09
……………
9.1. Changing face of Indian Insurance industry ……37

9.1.1. India – The n ext Insurance Giant…………………38

Content
Page no

CHAPTER NO. 10

10.1. Valuing the invaluable ……………………….42

10.1.1. Under Insurance ……………………….42

10.1.2. Cover Insurance ……………………….42

CHAPTER NO. 11

11.1. Profile of the Company ……………………….46

11.1.1. About Reliance Life Insurance Company Ltd…..48

11.1.2. Corporate Objective ……………………….49

11.1.3. Corporate Mission ……………………….49

CHAPTER NO. 12

12.1. Other Player in Insurance Industry ………………………56

12.1.1. Birla Sun Life ……………………...56

1.2.1.2Life Insurance Corporation of India……………..57

1.2.1.2National Insurance Company Ltd……………….58

12.1.4. TATA AIG Life Insurance ……………………59

Content
CHAPTER NO. 13.
……………………
13.1. Research Methodology ……60
………………………
13.1.1. Source …60
……………………
13.1.2. Primary Survey ……60
……………………
13.1.3. Secondary Survey ……61
…………………
13.1.4. Methodology ………61
…………………
13.1.5. Sample design ……….61
…………………
13.1.5.1. Sampling Frame ……….62
………………………
13.1.5.2. Sampling Technique ….62
………………………
13.1.5.3. Sample Size ….62
……………………
13.1.6. Data Collection ……..63
………………………
13.1.7. Finding and Interpretation …..63
……………………
13.1.8. Result ……..73
………………………
13.1.9. Suggestion and Recommendation …..74
………………………
13.1.10. Conclusion …...75
……………………
13.1.11. Limitation ………76
ANEXXURE ………………………….78

List of Table and Particulars Page No.

Figure

Fig. No. 1 Market share of Insurance Companies 17

Table No. 1 Market share of Insurance Companies 17

Fig. No. 2 Indian insurance Market 38

Table No. 2 Tax Rebate table 54

Fig. No. 3 Have you LIFE INSURANCE OR NOT 64

Table No.3 Have you LIFE INSURANCE OR NOT 64

Fig. No. 4 Most believable company 65

Table No. 4 Most believable company 65

Fig. No. 5 Policy taken from which company 66

Table No. 5 Policy taken from which company 66

Fig. No. 6 Suggestion for taken policy 67

Fig. No. 7 Types of Plan 68

Fig. No. 8 According to Age 40 your prefer 69

insurance company

Fig. No. 9 According to age 25-40 your prefer 70

insurance company

Fig. No. 10 Generally Preference of insurance 71

company by people
1.1 Abstract

Today every sector is very competitive sector and I find that insurance sector has the maximum

Growth and potential as compared to other sectors. Insurance has the maximum growth rate of

75% while as other sector has maximum 12-15% of growth rate. This growth potential attracts

to enter in this sector and DHFL Pramerica life insurance given me the opportunity to work and

get experience in the highly competitive and enhancing sector. This project studies the existing

Management practices In the channel development process and various benefits delivered by

them in the in DHFL Pramerica life insurance. The project is all about comparative analysis of

different insurance products of different companies. The objective of project was to check the

the awareness level of insurance and attitude towards the insurance in the current market.

Survey was also done regarding the preference of insurance sector depending on the age group

(Whether they prefer private player or public companies). In the beginning, I gain an insight

About the company and its value and inherit them in our life, and them studied different types

Of insurance plan like ULIP’S, Term plan, Endowment plan, and various other plans. Now, on

Statistical part, I designed a questionnaire that will provide a base for the studying the

Awareness lewel and perception of life insurance. The project helped me in developing my

Communication skills and interpersonal skills. During the tenure of my internship I learned

From my seniors, friends etc but all the above I learned a lot from my own personal experience.
1.2.1. INSURANCE INDUSTRY

The history of life insurance in India dates back to 1818 when it was conceived as a means to

Provide for English Widows. Interestingly in those days a higher premium was charged for

Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first

Company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance

Company was established in 1880. The General insurance business in India, on the other hand,

can trace its roots to the Triton (Total) Insurance Company Limited, the first general insurance

company established in the year 1850 in Calcutta by the British. Till the end of nineteenth

century insurance business was almost entirely in the hands of overseas companies’ .Insurance

regulatation formally began in India with the passing of the Life Insurance Companies Act of

1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance

business in India. By 1938 there were 176 insurance companies. The first comprehensive

legislation was introduced with the Insurance Act of 1938 that provided strict State Control

over insurance business. The insurance business grew at a faster pace after independence.

Indian companies strengthened their hold on this business but despite the growth that was

witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and

provident societies under one nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born. Nationalization was justified on the grounds that it would

create much needed funds for rapid industrialization. This was in conformity with the

Government's chosen path of State lead planning and development. The (non-life)

insurance business continued to thrive with the private sector till 1972. Their operations

were restricted to organized trade and industry in large cities. The general insurance

industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and

grouped into four companies- National Insurance Company, New India Assurance

Company, Oriental Insurance Company and United India Insurance Company. These were

subsidiaries of the General Insurance Company (GIC).The general insurance business was

nationalized after the promulgation of General Insurance Business (Nationalizations) Act,

1972.The post-nationalization general insurance business was undertaken by the Genera

1.2.2. About the project

The project deals with comparative analysis of different insurance companies offered

by Insurance companiess
1)Introduction About “DHFL Pramerica Life Insurance
Company Ltd”.
DHFL Pramerica Life Insurance Company Ltd.(DPLI) is a joint venture
between Dewan Housing Finance Corporation Ltd. (DHFL) and Prudential
International Insurance Holdings, Ltd. (PIIH), a fully owned subsidiary
of Prudential Financial, Inc. (PFI), a financial services leader headquartered
in the U.S. DHFL Pramerica Life Insurance Company Ltd., which was earlier
known as DLF Pramerica Life Insurance Company Ltd. started operations in
India on September 01, 2008.

Dewan Housing Finance Corporation Ltd. (DHFL) is India's second largest

private sector housing finance company.Pramerica, the trade name for
Prudential Financial, Inc. (PFI), is a financial services leader incorporated with
its principal place of business in the United States, and its affiliated companies
in Asia, Europe and Latin America. PFI’s Insurance expertise along with DLF’s
strength proves to be the strongest possible foundation for DLFPI.
2)Introduction About “ BAJAJ Allianz Life
Insurance Company Ltd”.
Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE.
Both enjoy a reputation of expertise, stability and strength. This joint venture
Company incorporates global expertise with local experience. The
comprehensive, innovative solutions combine the technical expertise and
experience of Allianz SE, and in-depth market knowledge and goodwill of
"Bajaj" brand in India. Competitive pricing and quick honest response have
earned the Company the customer's trust and market leadership in a very short
time.
At Bajaj Allianz, customer delight is our guiding principle. Ensuring world class
solutions by offering customized products with transparent benefits supported
by the best technology is our business philosophy.
Bajaj Allianz Life Insurance has developed insurance solutions that cater to
every segment and age-income profiles. Currently Bajaj Allianz has a strong
product portfolio and caters to all kinds of customer needs from ULIPs to Child
plans, from group insurance to health insurance.
1.2.3. Objective of the project
The main purpose of the project is to do comparative analysis of different insurance

products, check the awareness level and perception of insurance by the individuals. The

project would also help in understanding preference of people regarding private and public

insurance companies.

The main objective of the research is

1) Making comparative analysis between:-

2)DHFL Pramerica life insurance with life insurance Corporation of India.

3)DHFL Pramerica with life insurance Tata AIG life insurance.

4) To find potential market for ULIPs.

5)To study the awareness level of Bajaj Allianz ULIPs with view to recommend

measure to improve market share.

Finding out the features and benefits of these plans:

1)To find out the awareness level of insurance in Chandigarh

2)To determine customer preference towards private insurance companies and public

insurance companies.

3)Marketing of different insurance products.

 1.2.3Scope of the project

The entry of foreign MNC’s and the conductive business environment fostered by the

government, it is no wonder that the re-entry of private insurance has marked a second

coming for the sector. In just five years, the sector has undergone a makeover, offering

more choice, better services, quicker settlement, tighter regulation and greater

awareness‘s the environment become more and more competitive and services and

products become alike, creating a differentiation is becoming extremely tough. Thus, the

main objective of my project was to find out the preference of people regarding insurance

companies, which would help DHFL Pramerica life insurance, employees to market their

product. The study then goes on to evaluate and analyze the findings so as to present a

clear picture of recent trends in the Insurance sector.

Chapter No. 2

2. REVIEW OF LITERATURE
2.1. About Insurance Industry
"Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premiums, to pay the other party

called insured a fixed amount of money on the happening of a certain event."Insurance is a

protection against financial loss arising on the happening of an unexpected event.

Insurance companies collect premiums to provide for this protection. A loss is paid out of

the premiums collected from the insuring public and the Insurance Companies act as

trustees to the amount collected. For Example, in a Life Policy, by paying a premium to

the Insurer, the family of the insured person receives a fixed compensation on the death of

the insured. Similarly, in a car insurance, in the event of the car meeting with an accident,

the insured receives the compensation to the extent of damage. It is a system by which the

losses suffered by a few are spread over many, exposed to similar risks.

2.2. Logic of insurance

It is a system by which the losses suffered by a few are spread over many, exposed to

similar risks. Insurance is a protection against financial loss arising on the happening of an

unexpected event. Insurance companies collect premiums to provide for this protection. A

loss is paid out of the amount premiums collected from the insuring public and the

Insurance Companies act as trustees to the collected.

2.3. Need of insurance
Insurance is desired to safeguard oneself and one's family against possible losses on

account of risks and perils. It provides financial compensation for the losses suffered due

to the happening of any unforeseen events. By taking life insurance a person can have

peace of mind and need not worry about the financial consequences in case of any

untimely death. Certain Insurance contracts are also made compulsory by legislation. For

example, Motor Vehicles Act 1988, stipulates that a person driving a vehicle in a public

place should hold a valid insurance policy covering “Act" risks. Another example of

compulsory insurance pertains the Environmental Protection Act, wherein a person using

or to carrying hazardous substances (as defined in the Act) must hold a valid public

liability (Act) policy.

2.4 Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life and

general insurance in India is still a nascent sector with huge potential for various global

players with the life insurance premiums accounting to 2.5% of the country's GDP while

general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has

gone through a number of phases and changes, particularly in the recent years when the

Govt. of India in 1999 opened up the insurance sector by allowing private companies to

solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector

is considered as a booming market with every other global insurance company wanting to

have a lion's share. Currently, the largest life insurance company in India is still owned by

the government.
2.5. History of Insurance in India
Insurance in India has its history dating back till 1818, when Oriental Life Insurance

Company was started by Europeans in Kolkata to cater to the needs of

European community. Pre-independent era in India saw discrimination among the life of

foreigners and Indians with higher premiums being charged for the latter. It was only in

the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance

company covered Indian lives at normal rates.At the dawn of the twentieth

century, insurance companies started mushrooming up. In the year 1912, the Life

Insurance Companies Act, and the Provident Fund Act were passed to regulate the

insurance business. The Life Insurance Companies Act, 1912 made it necessary that the

premium rate tables and periodical valuations of companies should be certified by an

actuary. However, the disparage still existed as discrimination between Indian and foreign

companies. The oldest existing insurance company in India is National Insurance

Company Ltd, which was founded in 1906 and is doing business even today. The

Insurance industry earlier consisted of only two state insurers: Life Insurers i.e. Life

Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance
Corporation of India (GIC). GIC had four subsidiary companies. With effect from

December 2000, these subsidiaries have been de-linked from parent company and

made as independent insurance companies: Oriental Insurance Company Limited,

New India Assurance Company Limited, National Insurance Company Limited

and United India Insurance Company Limited.

2.6. Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that

life insurance in India was completely nationalized, through a Government

ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956

was enacted in the same year to, inter-alia, form LIFE INSURANCE CORPORATION

after nationalization of the 245 companies into one entity. There were 245

insurance companies of both Indian and foreign origin in 1956. Nationalization was

accomplished by the govt. acquisition of the management of the companies. The Life

Insurance Corporation of India was created on 1 September, 1956, as a result and has

grown to be the largest insurance company in India as of 2006 .

2.7. General Insurance Business (Nationalization) Act,

1972
The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize

the 100 odd general insurance companies and subsequently merging them into four

companies. All the companies were amalgamated into National Insurance, New India

Assurance, Oriental Insurance

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize

the 100 odd general insurance companies and subsequently merging them into four

companies. All the companies were amalgamated into National Insurance, New India

Assurance, Oriental Insurance

, and United India Insurance which were headquartered in each of the four metropolitan

cities.

 Chapter No. 3

3.1. Insurance Regulatory and Development Authority

(IRDA) Act, 1999
Till 1999, there were not any private insurance companies in Indian insurance sector. The

Govt. of India then introduced the Insurance Regulatory and Development Authority Act

in 1999, thereby de-regulating the insurance sector and allowing private companies into

the insurance. Further, foreign investment was also allowed and capped at 26% holding

in the Indian insurance companies. In recent years many private players

entered in the Insurance sector of India. Companies with equal strength

started competing In the Indian Insurance market. Currently, in India only 2

million people (0.2 % of total population of 1 billion), are covered under

Medi claim, whereas in developed nations like USA about 75 % of the total

population are covered under some insurance scheme. With more and more private

players in the sector this scenario may change at a rapid pace

 Chapter No. 4

4.1. Different Insurance Companies

Insurance is an upcoming sector, in India the year 2000 was a landmark year for life

insurance industry, in this year the life insurance industry was liberalized after more than

fifty years. Insurance sector was once a monopoly, with LIC as the only company, a

public sector enterprise. But nowadays the market opened up and there are many private

players competing in the market. There are fifteen private life insurance

companies has entered the industry. After the entry of these private players, the market

share of LIC has been considerably reduced. In the last five years the private players is

able to expand the market (growing at 30% per annum) and also has improved their

market share to 18%.For the past five years private players have launched many

innovations in the industry in terms of products, market channels and advertisement of

products, agent training and customer services etc.The various life insurers entered India:-

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Max New York Life Insurance Co. Ltd

7. Met Life India Insurance Company Ltd.

8. Kotak Mahindra Old Mutual Life Insurance Limited

9. SBI Life Insurance Co. Ltd

10. Tata AIG Life Insurance Company Limited

11. Dhfl Pramerica life insurance Co. Ltd

12. Aviva Life Insurance Co. India Pvt. Ltd.

13. Sahara India Life Insurance Co, Ltd.

14. Reliance Life Insurance Co, Ltd.

15. Bharti AXA Life Insurance Company Ltd.

16. Future General Life Insurance Company Ltd.

17. IDBI Fortis Life Insurance Company Ltd.

18. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

19. AEGON Religare Life Insurance Company Limited.

20. Shriram Insurance Co. Ltd.

21. Star Union Dai-ichi Life Insurance Comp. Ltd.

The various other general Insurance Companies are as under:-

1. National Insurance Company Limited.

2. Reliance General Insurance.

3. Star Health plus Insurance.

4. Oriental Insurance Company.

5. United India Insurance Company Ltd.

6. Bajaj Allianz General Insurance Company Ltd.

7. Future General Insurance Company Ltd.

8. ICICI Lombard General Insurance Ltd

1.1.1 TOP 10 LIFE INSURANCE COMPANIES INDIA

1. Life Insurance Corporation of India

LIC (Life Insurance Corporation of India) still remains the largest life insurance

company accounting for 64% market share. Its share, however, has dropped from

74% a year before ,mainly owing to entry of private players with innovative

products and better sales force.

2. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance

company in India. It experienced growth of 58% in new business premium,

accounting for increase in market share to8.93% in 2007-08 from 6.97% in 2006-

07.

3. Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market

share went upto 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked

second (after LIC) in numberof policies sold in 2007-08, with total market share of

7.36%.

4. SBI Life Insurance Company Ltd

SBI Life Insurance Co Ltd in terms of new number of policies sold, the company

ranked 6th in2007-08. New premium collection for the company was Rs 4,792.66

crore in 2007-08, anincrease of 87% over last year.

5. DHFL Pramerica Life Insurance Company Ltd.
Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its

market share wentup to 2.96% from 1.23% a year back. It now ranks 5th in new

business premium and 4th in number of new policies sold in 2013-14.

6. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in

FY2007-08,registering a year-on-year growth of 64%. Its market share is 2.88% and

it ranks 6 th among theinsurance companies and 5th amongst the private players.

7.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Co Ltd market share of the company increased from

1.22% to 2.11% in 2007-08.

8.Max New York Life Insurance Company Ltd.

Max New York Life Insurance Co Ltd has reported growth of 73% in 2007-08.

Total new business generated was Rs 641.83 crore as against Rs 387.51 crore.

9.Kotak Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company

reported growth of 80%, moving from the 11th position to 9th. It captured a market

share of 1.19% in2007-08.

10.Aviva Life Insurance Company India Ltd.

Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9thlast

year. It has presence in more than 3,000 locations across India via 221 branches and close

to40 banc assurance partnerships. Aviva Life Insurance plans to increase its capital base

by Rs 344 crore

4.2 Market Shares of Indian Insurance Companies.

Market share Of indian Insurance Companies

LIC
ICICI Prodential
Bajaj Allianz
SBI Life
HDFC Standard
Birla Sun Life
DHFL Pramerica
Reliance life Insurance
Max Life Insurance
Om Kotak
Aviva
Tata AIG
Met Life
 S. No. Company Market share
1 L.I.C. 48.10%
2 ICICI Prudential 13.70%
3 Bajaj Allianz 10.30%
4 SBI Life 6.20%
5 HDFC Standard 4.10%
6 Birla sun life 3.40%
7 Reliance life insurance 3.40%
8 Max life insurance 2.40%
9 Om Kotak 1.90%
10 AVIVA 1.80%
11 TATA AIG 1.50%
12 MetLife 1.40%
13 ING Vysya 1.20%
14 DHFL Pramerica 0.30%
Table No. 1

4.3. BOOMING INSURANCE MARKET

With a huge population base and large untapped market, insurance industry is a big

opportunity area in India for national as well as foreign investors. India is the fifth largest

life insurance market in the emerging insurance economies globally and is growing at 32-

34% annually. This impressive growth in the market has been driven by liberalization,

with new players significantly enhancing product awareness and promoting consumer

education and information. The strong growth potential of the country has also made

international players to look at the Indian insurance market. Moreover, saturation of

insurance markets in many developed economies has made the Indian market more

attractive for international insurance players. This research report will help the client to

analyze the leading-edge opportunities critical to the success of insurance industry in

India. Based on this analysis, the report gives a future forecast of the market that is

intended as a rough guide to the direction in which the market is likely to move. Total life

insurance premium in India is projected to grow Rs 1,230,000 Crore by 2010-11.

•Total non-life insurance premium is expected to in crease at a CAGR of 25% for the

period spanning from 2008-09 to 2010-11.

•With the entry of several low-cost airlines, along with fleet expansion by existing ones

and increasing corporate aircraft ownership, the Indian aviation insurance market is all set

to boom in a big way in coming years.

•Home insurance segment is set to achieve a 100% growth as financial institutions have

made home insurance obligatory for housing loan approvals

•A booming life insurance market has propelled the Indian life insurance agents into

the‘top 10 country list’ in terms of membership to the Million Dollar Round Table

(MDRT)— an exclusive club for the highest performing life insurance agent
Chapter No. 5

5.1 ADVANTAGES OF LIFE INSURANCE

5.1.1Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death

the full sum assured is made available under a life assurance policy, whereas under

other savings schemes, the total accumulated savings alone will be available.

5.1.2. Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect of

loans advanced for educational purpose or to provide donations to charitable institutions

like hospital and school.

5.2.3Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death

the full sum assured is made available under a life assurance policy, whereas under

other savings schemes, the total accumulated savings alone will be available.

5.1.2. Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect of

loans advanced for educational purpose or to provide donations to charitable institutions

like hospital and school.

. Nomination and assignment

The life insured can name the person or persons to whom the policy money would be

payable in the event of his death .the proceeds of a life insurance policy can be protected
against the claims of the creditors of the life insured by effecting a valid assignment of

the policy. The beneficiaries are fully protected from creditors expect to the extent of any

interest in the policy retained by the insured.21Marketability and suitability

for borrowing After 3 years, if the policyholder finds that he is unable to continue

payment of premiums he can surrender a policy for a cash sum. A life insurance policy is

accepted as a security for a commercial loan.

5.2.4. Loans from the insurance company

A policy holder can take a loan from his insurance company against the Security of his life

insurance policy provided the terms of the terms of his policy allow such a loan. This loan

can be taken usually after a period of 3 years from commencement of the policy and is a

percentage of its surrender value.

5.2.5 Investment options

The unit link products gives comprehensive insurance solutions that cater to an

individual’s dual need of earning potentially high returns as well as stay for life. Thus

there is an option to invest money in the products that combine the best of insurance and

investment. In a volatile market conditions it is possible to secure both as one can hedge

the investment with saver investment vehicles that provide a diversified portfolio.
5.2.6 . Tax benefits

The Indian income tax act provides tax concessions to the policyholder both on payment

of premium and on the maturity amount. Under sec 88 the tax benefits on premium paid

by an individual for life insurance policies on his own life\on the life of spouse \children

minor or major, including married daughters. Under sec 6 of the married women’s

property act if a married man takes a policy of life insurance on his own life and expenses

on the face of it to be for the benefit of his wife or of his wife and children or any of them,

then it shall be deemed to be a trust for the benefit of his wife and children or any of them,

According to the interest so expressed and shall not so long as any object of trust remains

be subject to the control of the husband or to his creditors or form part of his estate. An

insurance policy taken by a married man in the above manner is ideal way to protect the

interest of his wife and children, even after his untimely death.
Chapter No. 6

6.1 Types of insurance products

6.1.1. Term assurance plan-

In insurance language this is a “pure risk cover” a nd can be described as an insurance or risk

management product in its purest and simplest form. In case of your untimely death, your

dependents will receive the risk-cover amount or the ‘sum assured’. On the other hand, there

is no survival benefits if you survive the policy term, and you also do not get back the

premiums paid.

6.1.2. Endowment assurance plans-

It is a traditional investment-cum-insurance plan. In other words, it provides both life

cover (in the event of death of life insured) or maturity benefits if he/she survives the

policy term. Endowment plans are typically front-loaded. Therefore it makes sense for you to

remain in the policy for at least 12-15 years.

6.1.3. Money-back policy-

It is a variant of the endowment assurance policy-the difference is that you get the survival

benefits intermittently over the life of the policy. Thus taking care of his lump-sum monetary

requirements to enable him to meet his financial goals and major commitments. The maturity

benefit is the sum assured value less the survival benefits already paid under
the policy, plus bonuses accrued, if any. In case of untimely death the nominee will receive

the entire sum assured without considering the payouts already made to you before the

unfortunate death.

6.1.4. Whole life plan-

This policy provides the life assurance cover for almost the entire life. Most of the insurance

companies provide protection up to the age of 100 years. The sum assured is paid to you once

you reach this age, and the policy is terminated. In this payment of premium is for whole life,

and the sum assured is paid to your nominee in the event of your death. In other words, this is

equivalent to a term plan over your lifetime.

6.1.5. Pension plan-

A pension plan can be looked as more of an investment product offered by insurers to

cater to the “golden” retirement years of an individual. Also referred to as

retirement plans, these are designed to ensure that you are financially independent during your

retirement years. Most of the pension plans also provide an optional life assurance cover in

them.
6.1.6. Child plan-

It basically aims at ensuring the achievement of life goals of your child. The goal can be

higher education, financial help in establishing a business or profession, or even marriage. In a

child plan, the life assured can be the parent or the child. The beneficiary for the policy,

however, is the child. As a child is a minor, the life insurance contract is between the parent

and the insurance company. In case of early death of the parent, the premium payment is

waived off by the insurance company and the policy continues as originally planned.

6.1.7. Unit Linked Insurance Plan-

ULIPs have been the darling of insurance companies, intermediaries and the insured

population alike over the last five years. The main reason for this popularity is the twin

advantage of a pure life cover (insurance component) and a range of investment funds or

options (savings component) to match your risk profile. While the pure life cover provides the

much needed financial security to your dependents in the event of your untimely death, the

savings component allows you to participate in the capital markets and build wealth over the

long-term tenure of the policy.

Chapter No. 7

7.1. Marketing Mix in Insurance Industry (7 P's)

7.1.1. INTRODUCTION:

Wherever there is uncertainty there is risk. We do not have any control over uncertainties

which involves financial losses. The risks may be certain events like death, pension,

retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for

collecting the savings of the public and providing them with risk coverage. The main function

of Insurance is to provide protection against the possible chances of generating losses. It

eliminates worries and miseries of losses by destruction of property and death.

It also provides capital to the society as the funds accumulated are invested in productive

heads. Insurance comes under the service sector and while marketing this service, due care is

to be taken in quality product and customer satisfaction. While marketing the services, it is

also pertinent that they think about the innovative promotional measures. It is not sufficient

that you perform well but it is also important that you let others know about the quality of

your positive contributions. The creativity in the promotional measures is the need of the hour.

The advertisement, public relations, word of mouth communication needs due care and

personal selling requires intensive care.

7.1.2. INSURANCE MARKETING:

The term Insurance Marketing refers to the marketing of Insurance services with the aim to

create customer and generate profit through customer satisfaction. The Insurance Marketing

focuses on the formulation of an ideal mix for Insurance business so that the Insurance

organization survives and thrives in the right perspective.

7.1.3. MARKETING –MIX FOR INSURANCE COMPANIES:

The marketing mix is the combination of marketing activities that an organization engages in

so as to best meet the needs of its targeted market. The Insurance business deals in selling

services and therefore due weightage in the formation of marketing mix for the Insurance

business is needed. The marketing mix includes sub-mixes of the 7 P’s of marketing i.e. the

product, its price, place, promotion, people, process & physical attraction. The above

mentioned 7 P’s can be used for

Marketing of Insurance products, in the following manner:

7.1.3.1. PRODUCT
A product means what we produce. If we produce goods, it means tangible product and when

we produce or generate services, it means intangible service product. A product is both what a

seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and

therefore services are their product. In India, the Life Insurance Corporation of India (LIC)
7.1.3.2. PRICING:

In the insurance business the pricing decisions are concerned with:

i) The premium charged against the policies,

ii) Interest charged for defaulting the payment of premium and credit facility, and

iii) Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy

becomes significant. In a developing country like India where the disposable income in the

hands of prospects is low, the pricing decision also governs the transformation of potential

policyholders into actual policyholders. The strategies may be high or low pricing keeping in

view the level or standard of customers or the policyholders. The pricing in insurance is in the

form of premium rates. The three main factors used for determining the premium rates under a

life insurance plan are mortality, expense and interest. The premium rates are revised if there

are any significant changes in any of these factors.

7.1.3.3. PLACE:

This component of the marketing mix is related to two important facets –

i) Managing the insurance personnel, and

ii) Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of

maintaining the norms for offering the services. This is also to process the services to the end

management of insurance branch offices needs a new vision, distinct approach and an

innovative style. This is essential to make the work place conducive, attractive and proactive

for the generation of efficiency among employees. The branch managers need professional

excellence to make place decisions productive

7.1.3.4. PROMOTION:

The insurance services depend on effective promotional measures. In a country like India, the

rate of illiteracy is very high and the rural economy has dominance in the national economy. It

is essential to have both personal and impersonal promotion strategies. In promoting insurance

business, the agents and the rural career agents play an important role. Due attention should be

given in selecting the promotional tools for agents and rural career agents and even for the

branch managers and front line staff. They also have to be given proper training in order to

create impulse buying. Advertising and Publicity, organisation of conferences and seminars,

incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions,

participation in fairs and festivals, rural wall paintings and publicity drive through the mobile

publicity van units would be effective in creating the impulse buying and the rural prospects

would be easily transformed into actual policyholders

7.1.3.5. PEOPLE:

Understanding the customer better allows to design appropriate products. Being a service

industry which involves a high level of people interaction, it is very important to use this

resource efficiently in order to satisfy customers. Training, development and strong

relationships with intermediaries are the key areas to be kept under consideration. Training the

employees, use of IT for efficiency, both at the staff and agent level, is one of the important

areas to look into.

7.1.3.6. PROCESS:

The process should be customer friendly in insurance industry. The speed and accuracy of

payment is of great importance. The processing method should be easy and convenient to the

customers. Installment schemes should be streamlined to cater to the ever growing demands of

the customers. IT & Data Warehousing will smoothen the process flow. IT will help in

servicing large no. of customers efficiently and bring down overheads. Technology can either

complement or supplement the channels of distribution cost effectively. It can also help to

improve customer service levels. The use of data warehousing management and mining will

help to find out the profitability and potential of various customers product segments.
Chapter No. 8

8.1 CUSTOMER OF DHFL PRAMERICA LIFE INSURANCE

Life insurance is one of the best known insurance products today. People buy these products

as investment tools and also as protection for themselves and their families. All the insurance

companies the world over are looking at attracting the eye balls of customer and positioning

their solutions innovatively to cater to niche and specific markets. One of the most critical

aspects both from the view point of the customer and the insurer is getting important and

relevant leads that can be beneficial for both.

There is a big need for market intelligence, database of products and services and secondary

data that can be converted in to leads for the companies to tap. The customer also needs to

have relevant life insurance lead information on products that give him the best value for his

money. The Internet is the best repository for all relevant information both for the potential

customers as well as the insurance companies. The insurance companies can put up all kinds

of data and information on their websites that a potential customer can conveniently use to

arrive at a decision. On the other end of the spectrum, a customer can use relevant keywords

to search for information on the Internet to get hold of a good insurance product. So, the key

lies to getting “Search Engine Optimization” done b y the insurance companies so that every

time an insurance specific keyword is used to search the Internet, their website is one of the

first to be displayed. This assures a large internet traffic that can help generate potential leads
from the information and digital footprints left by the visitors and can be later converted to paying

customers. Various B2B and B2C portals offer a host of innovative services that can be used as

leads by the insurance companies and also the potential customers who are looking for a good deal

in today’s insurance jungle. Nowadays, banks have entered the insurance domain and since they

have a variety of customers already in their folds, they can use their readily available database as

leads to contact potential customers for their insurance products. For consultants and insurance

agents, it is imperative that they get associated for a symbiotic relationship with retail shops and

chains via the internet as well as otherwise to gain maximum visibility and use tools such as

advertisement, mailers, flyers and sales incentives to gather life insurance leads and convert them to

potential customers. The customer gets the best of everything in the present scenario. All that a

prospective client has to do is log on to the internet, or call a toll free number or walk into an office

to get the best deal. However, it is always good to use all the resources, leads and information

available to ensure that he decides on the best product available. There are many ways in which

both the customer and the insurer can get access to all important life insurance lead. The trick lies

in using the leads well to get the most out of a particular situation. The endeavor of a company is to

position itself favorably so that the customer chooses him over other similar products while the job

of the client is to use the leads in such an effective way so that there is no reason for him to repent

later that he could have opted for a better deal.

Chapter No - 9

9.1 Changing face of Indian insurance industry

Indian life-insurance market is the target market of all the companies who either want to

extend or diversify their business. To tap the Indian market there has been tie-ups

between the major Indian companies with other International insurance companies to start

up their business. The government of India has set up rules that no foreign

insurance company can setup their business individually here and they have to tie up with an

Indian company and this foreign insurance company can have an investment of only 24% of

the total start-up investment. Indian insurance industry can be featured by:

Low market penetration

 Ever growing middle class component in population.

 Growth of customer’s interest with an increasing demand for better

insurance products.

 Application of information technology for business.

 Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are

making strides in raising awareness levels, introducing innovative products and increasing the

penetration of life insurance in the vastly underinsured country. Several

of private insurers have introduced attractive products to meet the needs of their target

customers and in line with their business objectives

9.1.1. India: The Next Insurance Giant

Market Performance & Forecast: In 2000, Indian insurance market size was $21.71 billion.

Between 2000 and 2007, it had an increase of 120% and reached $47.89 billion. Between

2000 and 2007, total premiums maintained an average growth rate of 11.96% and the CAGR

growth during this time frame has been 11.96%. It was one of the most consistent growth

patterns we have noticed in any other emerging economies in Asian as well as Global markets.

Indian Insurance Market

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in

terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising

foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is on

the fulcrum of an ever increasing growth curve. Insurance is one major sector which has been on a

continuous growth curve since the revival of Indian economy. Taking into account the huge

population and growing per capita income besides several other driving factors, a huge opportunity

is in store for the insurance companies in India. According to the latest research findings, nearly

80% of Indian population is without life insurance cover while health insurance and non-life

insurance continues to be below international standards. And this part of the population is also

subjected to weak social security and pension systems with hardly any old age income security. As

per our findings, insurance in India is primarily used as a means to improve personal finances and

for income tax planning; Indians have a tendency to invest in properties and gold followed by bank

deposits. They selectively invest in shares also but the percentage is very small 4-5%. This in itself is

an indicator that growth potential for the insurance sector is immense. It’s a business growing at

the rate of 15-20% per annum and presently is of the order of $47.9 billion.India is a vast market

for life insurance that is directly proportional to the growth in premiums and an increase in life

density. With the entry of private sector players backed by foreign expertise, Indian insurance

market has become more vibrant. Competition in this market is increasing with company’s
Major Driving Factors

✔ Growing demand from semi-urban population

✔ Entry of private players following the deregulation

✔ Rising demand for retirement provision in the ageing population

✔ The opening of the pension sector and the establishment of the new pension

regulator

✔ Rising per capita incomes among the strong middle class, and spreading

affluence

✔ Growing consumer class and increase in spending & saving capacity

✔ Public private partnerships infrastructure development

✔ Dearth of innovative & buyer-friendly insurance products

Emerging Areas

✔ Healthcare Insurance & Pension Plans

✔ Mutual fund linked insurance products

✔ Multiple Distribution Networks .i.e. Bank assurance

The upward growth trend started from 2000 was mainly due to economic policies adopted by

the then Indian government. This year saw initiation of an era of economic liberalization and

globalization in the Indian economy followed by several reforms and long-term policies that

created a perfect roadmap for the success of Indian financial markets. On the basis of several

macroeconomic factors like increase in literacy rate & per capita income, decrease in death
rate and unemployment, better tax rebates, growing GDP etc., we estimate that the Indian

insurance sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a CAGR

(compounded annual growth rate) of 12.44% and a growth of 59.82%.

Chapter No. 10

10.1. Valuing the invaluable

Both under insurance and over insurance can often be attributed to the lack of proper

understanding of the exact insurance needs for oneself and the family, and the failure to

spot and cover all liabilities properly and adequately, or being over-conservative in this

regard.

10.1.1. Under Insurance

Under insurance, typically occurs when the existing financial liabilities and insurance

needs are fully taken care of. In the event of the untimely death of the only (or the main

earning) member of the family, his financial liabilities would obviously fall on his dependents,

leaving them in a state of financial distress that could threaten their need of sustenance.

10.1.2. Cover Insurance

Conversely, there are also instances where individuals indulge in life insurance covers that far
exceed in value than what is actually required. This is a classic case of over insurance, which
leads to an unnecessarily higher premium payment, leaving you much poorer. It results in
unnecessary expenditure that could otherwise be wisely invested Elsewhere. The need for an
adequate insurance cover is never static and keeps on varying with changes in the life stages
and important events of an individual. The table below provides an insight into the various life
stages and events when life insurance cover usually requires a revision
Busting some insurance myths

With a range of products flooding the market, people today are more confused about

insurance than ever. Here are a bagful of myths floating around and I have made an

effort to bust a few of the significant ones.

1. I don’t want to put my hard-earned money into a pure term assurance plan if I don’t even

get back all the premiums paid on survival of the term.

➢A pure term assurance plan is a risk mitigation tool and not an investment product. In the

event of your untimely death during the policy term, your dependents get a “sum assured”

to enable them to continue living their existing lifestyle, repay loan liabilities and meet

long-term financial goals. To achieve this, you only need to pay a premium amount that is a

fraction of the “sum assured”. Moreover unlike inve stments, where it takes years to build a

suitable corpus, the “sum assured” on your insuranc e policy is

payable, in the event of your untimely death, from the date of its

commencement.

2. It would be enough if only the main breadwinner of the family takes life

insurance.

➢While the main breadwinner should take out a life insurance policy on a priority basis; the

other members of the family should also be covered. If the wife is working, then she should be

covered to the extent of loss of income to the family in the event of her untimely death. On the

other hand, even if she is not working, she should be covered, albeit for a smaller
sum, because her contribution to the family, in form of household services, has monetary

value.

3. I will get back all my premiums when I surrender my endowment policy prematurely.

➢You couldn’t be more wrong! You only get back the “surrender value”, which is based on

the “paid-up value” is a proportion of the original “sum assured” based on the number

of years for which premium was paid against the total premium-paying years. The

paid-up value of the policy is also calculated and available as per the policy conditions.

4. Insurance is primarily useful as a tax-saving instrument.

➢Again, this is a huge misconception! While you do get attractive Tax

breaks, the primary objective of insurance is risk mitigations followed by wealth creation for

the long term. Many people end up taking this myth too seriously, particularly without

considering the costs and benefits involved.

5. After three years, I can walk away from any ULIP, along with the accrued investment or

the fund value.

➢Sure, you can do that! However, you need to remember that a ULIP, at least in the

initial years, is very different from a mutual fund. While a mutual fund only charges o

nominal fund management charge every year, a ULIP is front loaded. That means a significant

chunk of your premium is allocated across various charges in the initial years of the policy

and only the balance gets invested in a fund of your choice. As these charges taper
Chapter No. 11

11.1. PROFILE OF ORGANIGATION

DHFL PRAMERICA LIFE INSURANCE

DHFL PRAMERICA – THE JOINT VENTURE

Dewan Housing Prudential International

Finance Corporation Ltd. Insurance Holdings Ltd.(PIIH)
(DHFL) & Promoter Entities

74 26

*PIIH is a fully owned subsidiary of Prudential Financial Inc, referred to hereafter as PFI. PIIH and PFI
of the United States are not affiliated with Prudential Plc., a company incorporated in the United
Kingdom.
Pramerica is the brand name used in India and select countries by PFI.
Pramerica and the Rock logo are proprietary service marks and may not be used without the express
permission of the owner

DHFL – AN OVERVIEW

DHFL - Changing Rules, Changing Lives

DHFL was founded in 1984 by Shri Rajesh Kumar Wadhawan, a visionary Indian
businessman, who believed that owning a home is a critical element of building

an identity for every Indian.

INDIA’S SECOND LARGEST PRIVATE HOUSE FANACING COMPANY

Financial Inclusion, the DHFL Way

 Over the past 29 years, DHFL has been providing financial access to the

lower and middle income segments, in semi-urban and rural parts of India
 Under the leadership of Mr. Kapil Wadhawan, CMD, DHFL stands strong as
India’s second largest housing finance company in the private sector
 Based in India’s commercial capital Mumbai, DHFL has a presence across
over 450 locations in India, to ensure consumer access

 Has tie-ups with leading public and private sector banks like Punjab & Sind Bank, United
Bank of India, Central Bank of India and YES bank, to provide home loans to customers through
a home loan syndication agreement
  Listed on the BSE and NSE

PRESSENCE ACROSS INDIA

 Spread across 291company operated location in India.

 Presence in 151 addional location through alliances.

DHFL STRIVES COUTINOULLY TO REACH OUT TO ITS TO REACH OUT ITS CUSTOMER
THROUGH ITS EXTENSIVE NETWORK OF BRANCES, SERVICE SENTERS,CAMPS AND
REGIONAL PROCESSING SPREAD OVER ACROSS THE LENGTH AND BREADH OF THE
COUNTRY.

Business Overview (as of March 31, 2014, All figures in INR)

NET WORTH AUM PAT

35.7 BILLION 448.2 Billoin 5.3 Billion

BILLION

DISBURDEMENTS GROSS NPA CAPITAL ADEQUACY

166.5 Billion & 0.78 % RATIO 16.42 %

Section 223.8 Billion
 DHFL strives to participate in Financial Inclusion in India through the product
Fin F DHFL strives to participate in Financial Inclusion in India through the product
Offerings of: Home Loan, NRI Home Loan, Fixed Deposit, Recurring Deposit,
Offering DHFL strives to participate in Financial Inclusion in India through the product
Property Services,
Offerings of: Home Loan, NRI Home Loan, Fixed Deposit, Recurring Deposit,

s of: Home Loan, NRI Home Loan, Fixed Deposit, Recurring Deposit,

PFI- AN OVERVIEW

History
Tracing its roots to 1875, PFI is one of the best-known names in financial services in the U.S.

Company Overview

 For more than 135 years, PFI has helped individual and institutional customers grow and
protect their wealth
 One of the world's largest financial services institutions with more than $1.1 trillion of
assets under management (as of March 31, 2014)
 PFI, through its subsidiaries, serves institutional and individual customers in more
than 41 countries in the United States, Asia, Europe and Latin America (as of March
31, 2013)
 47,355 employees and sales associates worldwide (as of December 31, 2013)
 Offers a variety of products and services, including life insurance, annuities, retirement-
related services, mutual funds and investment management
 PFI’s distinctive Rock® symbol is among the most widely recognized in the U.S. and is an
icon of strength, stability, expertise and innovation
BUSINESS OVERVIEW

Assets managed by PFI is approx. Rs.68,52,330* crores (USD 1.107 trillion)

*As of March 31st , 2014.

Assets managed by the Life Insurance Industry in India is Rs.17,41,000** crores

(USD 0.279 trillion)
**As of March 31, 2013
Source: Life Insurance Council of India.

DHFL PRAMERICA OVERVIEW

DHFL Pramerica - A United Vision

 A coming together of two strong and trusted financial houses who share our vision

of securing and enriching every life that we touch

 DHFL - A company that is committed to help build an identity for every Indian by
empowering families financially to fulfill their dreams of owning a home

 PFI - A company that is committed to help ensure financial security and peace of mind for its
customers through a variety of products and services, backed by sound financial advice

Our Company

• Started operations in 2008 as DLF Pramerica Life Insurance, a joint venture between DLF

Limited (DLF), a leading real estate company in India and PFI, to provide life insurance
products to customers in India
• In 2013, Dewan Housing Finance Corporation Limited (DHFL) and its promoter
entities acquired DLF Ltd.’s 74 percent interest in the JV and entered into a
partnership with PFI
• Pan India presence through multiple distribution channels which have been customized to
address the specific insurance needs of diverse customer segments
• 2000+ employees, 3500+ sales advisors and over 100 Third Party relationships
• Offers a comprehensive suite of long-term savings and protection-oriented products.

 PFI - A company that is committed to help ensure financial security and peace of mind for its
customers through a variety of products and services, backed by sound financial advice

Our Company

• Started operations in 2008 as DLF Pramerica Life Insurance, a joint venture between DLF

Limited (DLF), a leading real estate company in India and PFI, to provide life insurance
products to customers in India
• In 2013, Dewan Housing Finance Corporation Limited (DHFL) and its promoter
entities acquired DLF Ltd.’s 74 percent interest in the JV and entered into a
partnership with PFI
• Pan India presence through multiple distribution channels which have been customized to
address the specific insurance needs of diverse customer segments
• 2000+ employees, 3500+ sales advisors and over 100 Third Party relationships
• Offers a comprehensive suite of long-term savings and protection-oriented products.

11.1.2. CORPORATE OBJECTIVE

At R.L.I. we strongly believe that as is different at every stage, insurance must offer flexibility

and choice to go with that stage. We are fully prepared and committed to guide you on

insurance products and services through our well-trained advisors, backed by competent

marketing and customer services, in the best possible way.

•It is our aim to become one of the top private insurance companies in India and to

become a cornerstone of RLI integrated financial services business in India.

11.1.3. CORPORATE MISSION

• “To set the standard in helping our customers manag e their financial future”.

BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY DHFL Pramerica

INSURANCE PLANS AVAILABLE:

1. Aajeevan Samriddhi

2. U-Protect

3. Future idol gold plus

4. Rakhshakplus

5. Family_First_Sep

6. Wealth Ace

Tax Benefits

It is one kind on benefit from life insurance policy . Maximum people buy insurance

because they want deduction in their income tax.

Premiums paid for Life insurance - Deduction under Section 80C

1. Category of assesses allowed deduction: Individual assessee and Hindu

Undivided Family assessee.

2. Eligible Savings: Premiums paid or deposited by assessee to effect or to keep in

force insurance on the life of following persons:

 In case of individual assessee – Himself/Herself, s pouse, children of such

individual

20% limit: If the amount of premium paid in a financial year for a policy is in

excess of 20% of the actual capital sum assured, then deduction will be allowed

only for premiums upto 20% of the sum assured.

3. Limit on amount of deduction: Deduction will be restricted to investments upto

Rs 100,000 in savings specified under Section 80C (including life insurance

premiums). The limit of deduction under Section 80C will be part of the overall

limit prescribed under Section 80CCE.

4. Disallowance: This benefit will be reversed if the policy is terminated/cease to be

inforce within 2 years after the date of commencement of policy.

Premiums paid for Pension plans - Section 80CCC

1. Permitted Deduction: Section 80CCC allows for deduction of premiums paid

under a pension scheme. As per this Section, the whole of amount paid or deposited

(excluding interest or bonus accrued or credited to the assessee’s account, if any) as

does not exceed the amount of Rs 100,000 is eligible for deduction from the total

income.

2. Receipt under Policy: Amounts received on surrender (whole/part) of annuity

plan, amounts received as Pension is taxed as income.

3. Limit: The limit of deduction under Section 80CCC will be part of the overall limit

prescribed under Section 80CCE.

 5. 20% limit: If the amount of premium paid in a financial year for a policy is in

excess of 20% of the actual capital sum assured, then deduction will be allowed

only for premiums upto 20% of the sum assured.

6. Limit on amount of deduction: Deduction will be restricted to investments upto

Rs 100,000 in savings specified under Section 80C (including life insurance

premiums). The limit of deduction under Section 80C will be part of the overall

limit prescribed under Section 80CCE.

7. Disallowance: This benefit will be reversed if the policy is terminated/cease to be

inforce within 2 years after the date of commencement of policy.

Premiums paid for Pension plans - Section 80CCC

4. Permitted Deduction: Section 80CCC allows for deduction of premiums paid

under a pension scheme. As per this Section, the whole of amount paid or deposited

(excluding interest or bonus accrued or credited to the assessee’s account, if any) as

does not exceed the amount of Rs 100,000 is eligible for deduction from the total

income.

5. Receipt under Policy: Amounts received on surrender (whole/part) of annuity

plan, amounts received as Pension is taxed as income.

6. Limit: The limit of deduction under Section 80CCC will be part of the overall limit

prescribed under Section 80CCE.

Overall deduction limit - Section 80CCE

As per this section, the maximum amount of deduction that an assessee can claim under

Sections 80C, 80CCC and 80CCD will be limited to Rs 100,000.

Premiums paid for medical insurance - Section 80D

1. Category of assesses allowed deduction: Individual assessee and Hindu

Undivided Family assessee.

2. Eligible premiums: Premiums paid by assessee by any mode other than cash out of

his taxable income to effect or to keep in force an insurance on the health of

following persons:

o In case of individual assessee – Himself/Herself, s pouse, dependent children

and parent or parents. The condition of dependency of parent has been

removed from FY 2008-09. In other words, even if the parent is independent,

the individual can pay the premium and claim the deduction.

o In case of HUF assessee – any member of HUF

Benefits under insurance policy - Section 10(10D)

As per Section 10(10D) of Income tax Act, 1961, any sum received under a life insurance

policy, including the sum allocated by way of bonus on such policy is exempt from tax.

However, this rule does not apply to following amounts:

 sum received under Section 80DD(3), or


 any sum received under a Keyman Insurance Policy, or

any sum received other than as death benefit under an insurance policy which has been
issued on or after April 1 2003 and if the premium paid in any of the years during the term
of the policy is more than 20% of the sum assured

Benefits under insurance policy - Section 10(10D)

As per Section 10(10D) of Income tax Act, 1961, any sum received under a life insurance

policy, including the sum allocated by way of bonus on such policy is exempt from tax.

However, this rule does not apply to following amounts:

 sum received under Section 80DD(3), or


 any sum received under a Keyman Insurance Policy, or

 any sum received other than as death benefit under an insurance policy which has

been issued on or after April 1 2003 and if the premium paid in any of the years

during the term of the policy is more than 20% of the sum assured.
Tax Rates for Individuals

The rates of income-tax for FY 2015

Individual (except Female (Below 65 Senior citizen Rate

female/ senior citizen) years) (Above 65 years)

0 – 2,50,000 0 – 2,50,000 0 – 3,00,000 Nil

Rs. 2,50,001 to Rs. 500,000 Rs. 2,50,001 to Rs. Rs. 3,00,001 to Rs. 10%

500,000 500,000

Rs. 500,001 to Rs.

10,00,000 Rs. 500,001 to Rs. Rs. 500,001 to Rs. 20%

10,00,000 10,00,000

> Above > Above > Above

Rs. 10,00,000 Rs. 10,00,000 Rs. 10,00,000 30%

Table No. 1

Surcharge on Income Tax:

No surcharge on Income Tax for the Financial Year 2014-15 for Individuals.

Education Cess on Income Tax

Edcuation Cess @3% will be payable on the amount of income tax (including

surcharge 
Chapter No. 12
12.1 OTHERS PLAYERS

Birla sun life Insurance Company limited is a joint venture between the Aditya Birla group,

one of the largest business houses in India and Sun Life Financial Inc., as leading

international financial services organization. The local knowledge of the Aditya Birla

group combined with the expertise of Sun Life Financial Inc., offer a formidable protection

for your future. The Aditya Birla group has a turnover of Rs. 1,33,875 corers (as on 31st

march 2008). It has over 100,000 employees across all its units worldwide. It is led by its

chairman – Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim

and Aditya Birla Nuvo. Sun Life Financial Inc. and its partners, have operations in key

markets worldwide. These include Canada, U.S, U.K, Hong Kong, the Philippines, Japan,

Indonesia, India, china and Bermuda. Sun Life Financial Inc. has

assets under management of over us$ 404.7 BILLION (as on 31st March, 2008). It is a

leading performer in the life insurance market in Canada.Birla sun life insurance

(BSLI) has been operating for 7 years. It has contributed significantly to the growth and

development of the life insurance industry in India. It pioneered the launch of unit linked

life insurance plans amongst the private player in India. It pioneered the launch of united

linked life insurance plans amongst the private players in India.

12.1.2. Life Insurance Corporation Of India

Mission

"Explore and enhance the quality of life of people through financial security by providing

products and services of aspired attributes with competitive returns, and by rendering

resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies and

Pride of India Every day we wake up to the fact that more than 220 million lives are part

of our family called LIC.We are humbled by the magnitude of the responsibility we carry

and realize that the lives that are associated with us are very valuable indeed. Although

this journey started five decades ago, we are still conscious of the fact that, while

insurance may be a business for us, being part of millions of lives every day for the past

52 years has been a process called TRUST.

12.1.3. National Insurance Company Limited

National Insurance Company Limited was incorporated in 1906 with its registered office

in Kolkata. Consequent to passing of the General Insurance Business Nationalization Act

in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it

and National became a subsidiary of General Insurance Corporation of India (GIC) which

is fully owned by the Government of India. After the notification of the General Insurance

Business (Nationalisation) Amendment Act, on 7th August 2002, National has been de-

linked from its holding company GIC and presently operating as a Government of India

undertaking.National Insurance Company Ltd (NIC) is one of the leading public sector

insurance companies of India, carrying out non life insurance business. Headquartered in

Kolkata, NIC's network of about 1000 offices, manned by more than

16,000 skilled personnel, is spread over the length and breadth of the country

Covering remote rural areas, townships and metropolitan cities. NIC's foreign

operations are carried out from its branch offices in Nepal.National transacts

general insurance business of Fire, Marine and Miscellaneous insurance. The

Company offers protection against a wide range of risks to its customers.

The Company is privileged to cater its services to almost every sector or industry in the

Indian Economy viz. Banking, Telecom, Aviation, Shipping, Information Technology,

Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea,

Automobile, Education, Environment, Space Research etc. National Insurance isthesecond

largest non life insurer in India having a large market presence in Northern and Eastern

India.
12.1.4. Tata AIG life-A New Look at Life

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,

formed by the Tata Group and American International Group, Inc. The Tata Group holds

74 percent stake in the insurance venture with AIG holding the balance 26 percent.Tata

AIG Life provides insurance solutions to individuals and corporate. Tata AIG

Life Insurance Company was licensed t operates in India on February 12,2001

and started operations on April 1, 2001. Tata AIG Life offers a broad array of life
insurance coverage to both individuals and groups, providing various types of add-ons and
options on basic life products to give consumers flexibility and choice
Chapter No. 13

13.1. RESEARCH METHODOLOGY

13.1 Sources

The success of any Insurance company depends on how well they are able to align

with the objectives and needs of individual customers, and is able to

Provide proper solutions to them. To know how a company is performing and whether

they have any cutting edge advantage over competitors, an intensive study of the market is

absolutely necessary. In order to understand the performance of different companies in the

market, we did two types of surveys, primary survey and secondary survey.

13.1.2. Primary survey

Primary survey included:-

➢ Visiting websites and fixing appointments with their agents.

➢ Creation of database of prospective clients from different sources

Calling them up to fix appointment and then visiting them.

➢ Prepare a questionnaire for the market survey.

➢ Meeting different people to know their views, perception and

preference of different insurance companies.

13.1.3 Secondary survey

Secondary survey included of consulting books, magazines, journals, internet and

also taking reference from:-

Library.

Internet.

DFHL Reports

13.1.4. Methodology

We would go in for a qualitative research as our objective is to judge the

perception and preference of different insurance products. The research would be

done from primary data.

13.1.5. Sample Design

Target population: The target population for the research would be people who are in

theage group beyond 40 and age group between 25 to 40.We targeted this group of

population because these populations are the potential customers of insurance.

13.1.5.1. Sampling Frame :

The research would be conducted in Varanasi. The survey has been conducted among the
potential customers of DHFL Pramerica from different sectors as Reliance deals in many

sectors of business.
13.1.5.2. Sampling Technique :

The sampling technique that is adopted is the simple random sampling wherein every

element in the target population has an equal chance or probability of getting selected in

the sample. That means every unit of the population who is more is in the above

mentioned age group, have an equal chance of getting selected

13.1.5.3 Sample Size:

I did a survey among 100 people by taking two categories in consideration of

50 each; that is

1.) Age group beyond 40

2) Age group between 25 to 40

13.1.6. Data Collection :

The research would be conducted from the source of primary data collection. Secondary

data would help us in knowing the trends prevailing in the insurance market and would

help us in analyzing and interpretation of the primary data.

13.1.7. Findings and Interpretations

We have presented below the findings and analysis of the questionnaire addressed to the

respondents to gauge the attitude and perception of the people towards insurance.
Respondents having life insurance
The question was asked to the respondents to know how many of the respondents

had a life insurance policy

Life Insurance Policy

Yes
No

No. of

Respondents

Yes 55

No 15

From the survey it was found out that 85% of the respon dents had a life insurance policy
whereas 15 % of the respondents didn’t had a life insurance pol
1.What is your total saving ratio from your income?

a) More then 60% b) 60% - 50%

c) 50% - 25% d) Less then 25%

SAVINGS

47%
50%

40%
31%
30%
CUSTOMER
RESPONSE
20% Series1
13%
9%
10%

0%
> 60% 60%-50% 50%-25% <25%

Interpretation:From the above graph it is clear that 9% of people saving more

than 60%, 13% of people saving less than 60%, 31% of people saving less than
50%, 47% of people saving less than 25%.
2) Where you invest your saving?

a) Post office b) Banks

c) Shares d) Land / Building

e) Life insurance f) Gold

g) Mutual fund h) All the above

SAVING CONSIST

25% 23%
20%
20%

CUSTOMER 15% 13% 13%

RESPONSE 10%
8% 8% Series1
10%
5%
5%

0%
Post Office Shares Life Mutual
Insurance Fund

Interpretation: From the above graph it is clear that, 10% of people saving in
post office, 20% of people savings in Bank FD, 8% of people savings in shares,
13% of people saving consist land and building, 23%
of people savings in Life Insurance, 5% of people saving consist in gold,8% of
people saving in Mutual Fund
3. Which factors you think while selecting the policy.

a) Returns b) Safety

c) Liquidity d) Risk cover

e) All the above

FACTOR CONSIST WHILE MAKING POLICY

Series1

29%
30%
24%
25% 20% 19%
20%
CUSTOMER
RESPONSE15%
8%
10%
5%
0%
Returns safety Liquidity Risk All the
cover above

Interpretation:wants returns, 29% of people wants safety,8% of people wants

liquidity, 19% of people From the above graph it is clear that 20% of people
wants risk cover, 24% of people wants all the above option
4. Have you invested money in life insurance?

a) Yes b) No

MONEY INVESTED IN LIFE INSURANCE

75%
80%
70%
60%
CUSTOMER 50%
RESPONSE Series1
40% 25%
30%
20%
10%
0%
Yes No

Interpretation: From the above graph it is clear that 75% respondents invested
their money in life insurance, 25% respondents are not invested
5. Are you aware about ULIP plan?

a) Yes

b) No

AWARENESS OF ULIP

45%

55% Yes

No

Interpretation:Above graph 55% of respondents are aware of ULIP,45% of

respondents are not aware of ULIP.

6. In which company you have invested your money?

a) DHFL b) Bajaj Allianz

c) ICICI d) Others .

PEOPLE INVESTED THEIR MONEY IN

DIFFERENT COMPANIES

24%

42%

9%
ICICI
8% BAJAJ ALLIANZ
ICICI
17% OTHERS
DHFL

Interpretation: Above graph shows 42% respondents invested their money in

DHFL pramerica, 17% in Bajaj Allianz,8% in ICICI prudential, 9% in others and
24% of respondents are not responded well.
7. Which plan you have taken?

a) Endowment b) Money Back

c) Term Plan d) ULIP

e) All the above

RESPONDENT TAKEN DIFFERENT PLANS

29%
30% 27%

25%
20% 17% 16%
CUSTOMER
RESPONSE 15% Series1
8%
10%
4%
5%
0%
Endowment Term Plan All the
above

Interpretation:The above graph shows that 17% of respondents have taken

Endowment policy,29% of respondents have taken money back policy,16% of
respondents have taken term plan,8% of respondents have taken ULIP,4% of
respondents have taken others, 27% of respondents not taken
8. Why you have chosen ULIP?

a) Higher Returns b) Liquidity

c) Life cover d) All the above

FACTOR CONSIST WHILE CHOOSING ULIP PLAN

100%

80%

60%
91%
40%
CUSTOMER
RESPONSE
20% Series1
4% 1% 2% 2%
0%
Higher Life Liquidity All the Blank
returns cover above

Interpretation: The above graph shows that 4% respondents wants

Higher returns,1% liquidity, 2% life cover, 2% all the above and 91% of
respondents are not responded well
9. What is the premium you are paying per annum?

a) 10000 b) 10000-25000

c) 25000-50000 d) 50000-100000

PREMIUM PAYING PER ANNUM

38%
40%
35% 31%
30%
25%
CUSTOMER
17%
RESPONSE 20% Series1
15% 11%
10%
3%
5%
0%
A B C D BLANK

Interpretation:The above graph shows that the 38% of respondents

paying premium per annum less than 10,000, 17% respondents paying
per annum between 10,000- 25,000, 11% respondents paying per
annum between 25,000-50,000, 3% respondents paying per annum
between 50,000-100,000, blank is 31%.
10.What factors influence your Financial Planning?
a) Discussion with Family Member

b) Tax Consultant/ C. A

c) Insurance consultant /Agents

d) Finance Magazines.

e) Web site of insurance or Finance company.

f) Any other Specify .

FACTOR INFLUANCING FINANCIAL PLANNNING

1%
9%
14%
47%

22%
7%

Discussion with FM
Tax consultant/CA
IC /Agents
Finance Magizine
Websits
Others

Interpretation: The above graph factors influencing financial

planning 47% influencing discussion with family members, 22% tax
consultant/CA, 7% Insurance Consultant/ Agents,14% through
finance magazines, 1% through web sites of insurance/ Finance
Company,9%through others
11. What factor consist while making the policy.

a) Returns b) Safety

c) Liquidity d) Risk cover

e) All the above

FACTOR CONSIST WHILE MAKING POLICY

Series1
29%
30%
24%
25% 20% 19%
20%

15%
CUSTOMER 8%
RESPONSE 10%
5%

0%
Returns safety Liquidity Risk All the
cover above

safety,8% of people wants liquidity, 19% of people wants risk cover,

24% of people wants all the above option Interpretation: From the
above graph it is clear that 20% of people wants returns, 29% of
people wants.
13.1.8. Results

After the survey it was found that still major portion of customers go for public insurance

companies, but with the entry of more and more private companies the scenario is

changing rapidly, people with a need of more and better returns are opting for private

companies, and this can be justified by the increasing market share of private companies

in the Indian insurance sector.

There are various ways in which private companies are found much more lucrative than

public companies and the facts which support this statement are as follows:-

1. Versatility of products.

2. Efficient fund managers.

3. Better customer services.

4. More returns.

5. Regular follow up.

6. Quicker settlement
13.1.9. Suggestions and recommendation

✔ People are not aware of the life insurance. Most of them know only one

company which provides life insurance i.e. LIC. So awareness campaign

should be run so that people are aware of different life insurance companies

in India.

✔ People should be educated about the different types of products or plans

offered by the life insurance companies. Most of them don’t know much of

the different types of plan or products.

✔ It was felt that most of the people took life for tax savings or just to

cover up their life, not as an investment avenue. Life Insurance companies

need to advertise in such a manner that people start investing in life

insurance like the way they invest in the stock market

✔ Now at the time of global turmoil insurance company had to

hold on to the policyholders trust which might lead the company to the

path of success

✔ Insurance companies should try to adopt different strategies to market

their products or plan. Companies should not primarily focus on the agents

for their business.

13.1.10. Conclusion

Insurance is one sector that witnessed continuous growth owing to the

reforms in 2000. The insurance sector is likely to attain a size of Rs.

2,00,000 crore ($ 51.2 billion) in 2014-15. In life insurance, the business

grew by 23.3% to Rs. 93,000 crore in 2010-11 (Source:Assocham). The

sector alone employs close to 30 lakh people (including agents and direct

employees).A well-functioning insurance market plays an important role in

economic development and financial stability of developing economies such

as India’s. First, it inculcates and encourages the habit of saving. Second, it

provides a safety net to rural and urban enterprise and productive

individuals.

The life insurance market in India is on a growth path. In spite of this, the

country lags far behind the others in awareness about life insurance. The

challenge is to spread awareness about life insurance and it true benefits. The

industry has to convince people to park their hard earned money in long-term

insurance and not just look at it as a tax saving instrument.

13.1.11. Limitations

1. Useful Financial insights are not easily available.

2. Due to time constraint sufficient research on all the investment tools is

difficult.

3. The survey sample is not very large for analysis

4. Properly convincing people to invest in insurance products

is challenging.

5. Due to recession there is liquidity crunch in the market.

6. There might have been tendencies among the respondents to amplify or

Filter their responses under the testing conditions

7. The research is confined to Chandhigarh and does not necessarily shows

a Pattern applicable to other parts of the country.
BIBLIOGRAPHY

Marketing Management- Philip Kotlor, edition-twelth edition….April 2004,.

Publisher- Prentice Hall of India (p) Ltd, Analyzing Consumer Markets & Buyer
behavior & consumer behaviour.

Broachers from DHFL Pramerica Life Insurence

WEBSITES

www.dhflpramerica.com

www.irdaindia.org

wikipedia.org

www.selling-well.com

www.insureme.com

www.advisortoday.com
Annexure

QUESTIONNAIRES

CLIENT DETAIL

NAME:_____________________________SURNAME__________________________
_____
DATE OF BIRTH: ______________ (As On Document) Age
Proof:_______________________________________________
PRESENTADDRESS_____________________________________________________
________________________________________________________________________
________________________________________________________________________
_____
LANDMARK: ______________________PIN ___________
PHONE NO _____________ MOBILE________________
PERMANENT ADDRESS:
____________________________________________________________
________________________________________________________________________
_____EDUCATION: _____________
OCCUPATION: _______________________
DESIGNATION: ___________________________
GROSSINCOME:____________________________
NO. OF YEAR JOB / BUSINESS: _______________________
NAME OF
ORGANISATION:_______________________________________________
PREVIOUS POLICY DETAILS (IF ANY):
_______________________________________________________________
PRODUCT: ______________ _________PREMIUM __________________________

MODE : Yearly/Half-yearly/monthly
Payment Mode: CASH / DD / CHEQUE
Reference:
1. Mr./Mrs./Miss.____________________Address:_____________Mobile No:
2. Mr./Mrs./Miss.____________________Address:_____________Mobile No:

1. Are you insured? 1. Yes 2. No

2. If yes then with Life / Non Life / Both
3. In which company ………………………………………

4. How much give you rank your insurance company ?

Excellent Very Good Good Fair Bad

5. Who suggest you take life insurance policy ?

Friends Family Agent Others..

6. In which of the insurance plan you like to invest your money ?

Term Endowment Money Children Pension ULIP Health
Plan Plan back Plan Plan Plan
Plan
7.Rank the Insurance Company according to your preference?

DHFL PRAMERICA LIFE

INSURANCE CO.LTD

LIFE CORPORATION OF

INDIA

BIRLA SUN LIFE

INSURANCE LTD

TATA AIG LIFE

INSURANCE COMPANY

LTD

BAJAJ ALLIANZ LIFE

INSURANCE COMPANY