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SESSION 2008-2011


Date: 10th July, 2011

To Whom So Ever it May Concern

This is to certify that Mr. NIKHIL BARUA student of YMCA, New

Delhi, has successfully completed his training under my supervision. His
performance during the training was excellent. Duration of training was 5
weeks which started from 06th Dec 2010- 07th Jan, 2010.

He is blessed with a cheerful disposition and excellent interaction and

work skills. We would like to appreciate his sincerity and hard work.

We wish him best of luck for his future.

Yours sincerely,


Branch Manager

Corporate Office:


The present work is an effort to throw some light on “STUDY OF HDFC SLIC”.

The work would not have been possible to come to the present shape without the able

guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by my organizational guide Mr. Subhas Verma (Branch Manager of

HDFC) and other faculty members.

I convey my heartful affection to all those people who helped and supported me

during the course, for completion of my Project Report.



During this project I fully realized this and come to know about the present real world
of insurance. Since it include all the activities involved in selling insurance products
directly to financial customers. I am pleased to know about the customers’ wants and
various activities in the real world of insurance product.

The Subject of my study is A STUDY OF HDFC SLIC. I have done this by applying
various tools like Tele calling, and through direct interaction with customers.

The report contains first of all brief introduction about HDFC SLC. Then it throws
some light on the insurance policies and plans provided by HDFC SLIC.




Life Assurance was born in England when the first policy providing temporary cover
for a period of 12 months was issued as easy as 1583 A.D. The Amicable Society
started granting fluctuating sum on death since 1705 and a fix sum since 1757, with
the development of mortality tables, the life Assurance acquired a scientific character.
The Equitable Society founded in 1762 was the first Society established on scientific


In India, after failure of to British companies, the European and the Albert in 1870,
which attempted writing business on Indian lives, first Indian Life Assurance Society
was formed in the same year called Bombay Mutual Assurance Society Limited. The
Oriental Life Assurance Company Limited in 1874, Bharat in 1896 and Empire of
India in 1897 followed it. The idea of insurance was born out of a desire of the people
to share loss of an individual by many. Originally it restricted to forms other than life
assurance. It started with Marine Insurance, where the losses on account of perils of
sea forms of insurance, is found in the codes of Hammurabi, Manu (Manav Dharma
Shastra). The word ‘Yogakshema’ is used in the Rig Veda suggesting that some form
of community insurance was practiced by the Aryans in India over 3000 years ago. In
India during Buddhist period burial societies existed which were mutual in their
character and used to help a family by building a house, protecting the widow,
marrying the girls.

The Swadeshi Movement of 1905 provided impetus to the formation of several

companies such as the “Hindustan Cooperative’, the ‘United India’, the ‘Bombay

Life’, the ‘National’. Further in the wake of freedom movement number of companies
such as the ‘New India’, the Jupiter the ‘Lakshmi’ emerged.
The government began to exercise a certain measure of control on Insurance business
by passing the ‘Insurance Act’ in 1912. For controlling investment of funds,
expenditure and management, a comprehensive Act was passed know as the insurance
Act 1938’. For controlling the affairs, the office of Controller of Insurance was
established. The act was extensively amended in 1950.

In the year 1955, approximately 170 Insurance offices and 80 Provident Fond
Societies had been registered for transacting Life Assurance business in India. The
concept of trusteeship was lacking. Many insurance companies went into liquidation.
There were malpractices in insurance business. For achieving the following purposes
it was felt necessary to nationalize the insurance business in India.

⇒ To provide security to the policy holders

⇒ To utilize the funds for nation-building activities.

⇒ To avoid cut throat competition

⇒ To abolish mal-practices

⇒ To spread the insurance message to the rural areas.

The first in this direction was taken by the Government of India by issuing the life
Insurance (the Emergency provisions) Ordinance, 1956 on 19th January, 1956. The
then Finance Minister, Shri C.D. Deshmukh mentioned the purpose of nationalization
as reaching the goal of socialistic pattern of society, rendering genuine service to the
people in the rural areas.

Insurance activity in India is going on for more than 150 years. In India, life insurance
in its modern form was brought for the first time by the Britishers. The Oriental Life
Insurance Company started in 1818 in Calcutta was the first to be founded in India by
Europeans to help the widows of their community. The general insurance business in
India, on the other hand, can trace its roots to him Triton Insurance Company Ltd, the
first general insurance company established in the year 1850 in Kolkata by the British.
The year 1870, saw the birth of first Indian Insurance Company namely, Bombay
Mutual Life Assurance Society. The basic aim of this company was to insure Indian
lives at normal rates since in the earlier period. Indian lives were treated as subnormal
and loaded with an extra premium of fifteen to twenty per cent. However, right up to
the end of 19th century, the foreign insurance companies in India had an upper hand in
matters of Insurance business. Insuring Indian lives with 10 percent of extra premium
was a common practice prevalent in those times. The Indian Life Assurance
Companies were the first to regulate the life insurance business in 1912. In 1928, the
Indian Insurance companies act enabled the government to collect statistical
information about both life and non life insurance business. Later, the insurance Act
of 1938 was passed and department of insurance under authority of superintendent of
insurance was established for the administration of the Act. Up to 1939, 199
companies were working in India. However, the period 1939-55 was marked by:

• World War II resulting in hasty premium adjustments by Indian companies.

• Series of amendments to the insurance Act, 1938.

• Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger

to enquire into and to recommend measures to check certain trends and
undesirable features in the management of insurance companies.

• The findings of the sub committee on insurance under the National Planning
Commission headed by Pt. Jawaharlal Nehru.

• Partition of India.

• De-valuation of rupee on September 18, 1949.

• The insurance Amendment Act.

• Interest yield sagging to the lowest lend of three percent and remaining at that
level over 1947-1949.

• The rate war and cut throat competition between insurance companies.

• The recommendation of the ruling political party, the Indian National

Congress, to the government that the life sector insurance be nationalized, and

• The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation

of Insurance Institutes.

Source: Chartered Financial Analyst, (October 2004).


Risks and uncertainties are part of life's great adventure -- accident, illness, theft,
natural disaster - they're all built into the workings of the Universe, waiting to happen.

Insurance then is man's answer to the vagaries of life. If you cannot beat man-made
and natural calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties - the insurer (the insurance company) and
the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay
the insured for financial losses arising out of any unforeseen events in return for a
regular payment of "premium".

These unforeseen events are defined as "risk" and that is why insurance is called a
risk cover. Hence, insurance is essentially the means to financially compensate for
losses that life throws at people - corporate and otherwise.

The principle of insurance works on the concept of a large number of people exposed
to a similar risk making a contribution to a common fund. Those who suffer losses
due to the occurrence of these events are compensated for them from this fund.



Insurance is an attractive option for investment. While most people

Recognize the risk hedging and taxes saving potential of insurance, many are not
aware of its advantages as an investment option as well. Insurance products yield
more compared to regular investment options, and this is besides the added incentives
offered by insurers.

You cannot compare an insurance product with other investment schemes for the
simple reason that it offers financial protection from risks, something that is missing
in non-insurance products. In fact, the premium you pay for an insurance policy is an
investment against risk. Thus, before comparing with other schemes, you must accept
that a part of the total amount invested in life insurance goes towards providing for
the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the
end of the term. In other words, if you take a life insurance policy for 20 years and
survive the term, the amount invested as premium in the policy will come back to you
with added returns. In the unfortunate event of death within the tenure of the policy,
the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in

PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this
case, the access to your funds will be limited. One can withdraw 50 per cent of the
initial deposit only after 4 years.

The same amount of Rs 10,000 can give you an insurance cover of up to
approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of
the life insured, etc) and this amount can become immediately available to the
nominee of the policyholder on death. Thus insurance is a unique investment avenue
that delivers sound returns in addition to protection.


The government in a bid to complement the reforms initiated in the financial sector
established a committee headed by former finance secretary and Reserve Bank of
India (RBI) governor, Mr R.N. Malhotra to evaluate the insurance industry and to
recommend its future direction. This committee suggested the following changes:
• Government stake in insurance companies be brought down to 50 percent.

• The take over of the holding of GIC and its subsidiaries in order to facilitate their
functioning as independent corporations.

• Allowing private enterprise in the sector with companies with a paid up capital of
a minimum of Rs 100 crore.

• No single entity to function in both Life and General insurance segments.

• Foreign companies to be allowed only in combination with an Indian partner.

• Changed to be made to the insurance Act.

• An independent insurance regulatory authority to be set up.

• Reduction in the mandatory investments of LIC Life Fund in government

securities to be brought down from 75 percent to 50 percent.

• GIC and its subsidiaries are not to hold more than 5 percent in any company.

• Popularization of pension schemes in rural areas.

• Allowing PLI (Postal life insurance) in rural areas.

• Rapid computerization of branches.

• Payment of interest on delayed claims.

• Use of revised mortality tables by LIC and revision of premiums after every 10

• Issue of long term unit linked insurance plans.

• Transfer of LALGI and IRDP schemes to concerned government authorities.

• The insurance sector began its reform process with the passage of the IRDA (the
Insurance Regulatory and development authority) bill in Parliament in December
1999. However with the setting up of IRDA, the government has once again de-
regulated the sector opening it for the private players. The entry of private players
has enabled the industry to look at alternative distribution channels. To get the
maximum pie of the premium, every insurance company is adopting new
distribution and marketing strategies. In the last two years alone, the economy has
witnessed some fundamental changes in the Indian insurance industry. The total
foreign direct investment in India in the insurance sector today stands at Rs 95,250
crore. The total premium income of the Indian insurance industry both life and
non life for the year ending March 31, 2007 stands at Rs 91,376,11 crore, out of
this, the share of life insurance premium is 78 percent, i.e. Rs 7155416 crore and
general insurance premium is 22 percent, i.e. Rs 15,638 crore. The share of private
sector in life insurance cake has increased from 0.02 to 1.99 percent in the last two
years. While the share of private sector in general insurance cake has increased
from 0.07 to 9.50 percent. The transition of the insurance industry from a public
monopoly to a competitive environment new presents very interesting challenges
both to the new players and to the customer. Not only the new players have an
opportunity to test out their various hypotheses and apply learning’s from
overseas markets, the customer will have a greater choice when it comes to
choosing a provider or a solution for their needs.

Source: Roy, Dilip, ‘Some Aspects of Insurance in the Context of Risk Management
Vision’. The Journal of Business Perspective, (January-June, 2007).


Insurance is a Rs.400 billion business in India, and together with banking services
adds about 7% to India’s GDP. Gross premium collection is about 2% of GDP and
has been growing by 15-20% per annum. India also has the highest number of life
insurance policies in force in the world, and total investible funds with the LIC are
almost 8% of GDP. Yet more than three-fourths of India’s insurable population has
no life insurance or pension cover. Health insurance of any kind is negligible and
other forms of non-life insurance are much below international standards.

Some few years ago the entry of private players was banned in India but its only after

first stage of economic reforms the situation has become better with the entry of

private sector .As of now the govt insurance companies like Life Insurance

corporation of India, GIC etc. It holds the majority of market share whereas the

private players are slowly catching up the race. As of now the private players have

concentrated on urban markets more and less on the rural markets and their lies a

huge untapped potential at rural markets. Even in urban markets the penetration levels

in India in terms of life insurance is very less and thus there is a huge market potential

for the companies to grow. The problem is how the companies can untapped the

unawake Ned demand among the target market. Also the awareness levels among the

consumers about insurance product is very low and the advertisement campaigns

launched by the private players like ICICI, KOTAK MAHINDRA has increased the

level of awareness among the consumers and have arisen the need for insurance. The

consumer now thinks that insurance is important these days as the life has become

much more unstable and thus there is less level of surety.


The new insurance companies used all channels of advertising from newspapers and
the television to insurance agents and direct mailers. The new companies focused
their campaigns primarily on building an image of trustworthiness and reliability for
themselves. Their advertisement focused on insurance as an investment option and not
a mere tax saving tool. Most of these advertisements carried messages like the
family’s happiness. It has been more than 5 years since private insurance companies’
lunched operations in India, which is depicted in the Table given below.

Company Indian partner Foreign insurer Area

Birla Sunlife Aditya Birla Group Sunlife, Canada Life

Om Kotak Kotak Mahindra Old Mutual, South Life
Finance Africa
HDFC-Standard Life HDFC Standard Life UK Life
Royal Sundaram Sundaram Finance Roya Sun, UK Life & Non life
ICICI-Prudential ICICI Prudential, UK Life
Max New York Life Max India New York Life USA Life
Tata-AIG Tata group AIG USA Life & non Life
ING Vysya Vysya Bank ING Insurance, Life
Aviva Dabur CGU life, UK Life
Metlife India Jammu & Kashmir Metlife, USA Life
Bajaj Allianz Bajaj Auto Allianz Life & non Life
AMP Sanmar Sanmar Group AMP, Australia Life
SBI Life Insurance SBI Cardiff, France Life



In the first quarter of the year 2006, insurance companies spent 70 percent of what
was spent in the year 2005, on advertising ad publicity. Across the world, insurance as
a category was one of the largest spenders on advertising. In India too substantial
expenditure was being incurred due to advertising depicted in the Table given below:

Company Expenditure
LIC 1000
Allianz Bajaj 200
Om Kotak Mahindra 150
ICICI Prudential 146

TABLE 2: Advertisement Expenditure by Insurance Companies (Rs. Million)

Source: ICMR.

• LIC’s business increased mainly because of the increased public awareness about
insurance. During the first year of the entry of new players, while LIC reported a
growth of over 250 percent, private insurers managed to garner only about 0.5
percent market share in spite of spending hefty amounts on advertising and
promotion. According to a sample survey conducted by ORG-marg on the popular
life insurance brands in 2007, awareness of LIC policies was a phenomenal 100
per cent while the private insurers lagged behind. But now private players firmly
etched in the minds of tap insurance market.

Life insurance No. of policies sold as Value of business

on June 30, 2007 (Rs Crore)
ICICI Prudential 12,757 14.60
Max New York Life 6996 2.75
Tata AIG 1688 1021
HDFC standard 1629 2.09
Birla Sunlife 1048 7.60
SBI Cardit 169 1.63
Non-Life Insurance :
Tata AIG 6178 18.69
Royal Sundaram 1227 7.55
Reliance Genins 372 8.51
IFFCO-Tokio 174 16.30
Bajaj Allianz 10 1.26



Company Premium % of No. of % of No. of % of

U/w (in pre- policies/ No. of lives lives
Rs Lakh) mium schemes policies covered covered
under under
group group
scheme scheme

1. Bajaj Allianz 10,675.20 1.93 53.427 0.89 49,066 2.73

Individual single premium 3559.45 4247
Individual non single 7,020.22 49,155
Group single premium
Group non single premium 95.52 25 49,066

2. ING VYSYA 1921.48 0.35 26,803 0.45 5898 0.33
Individual single premium 32.44 4771
Individual non single 1778.20 22,026
Group single premium 95.26 1 255
Group non single premium 15.57 5 5643



Company Premium % of No. of % of No. of % of

U/w (in pre- policies/ No. of lives lives
Rs Lakh) mium schemes policies covered covered
under under
group group
scheme scheme

3. AMP Sanmar 1302.03 0.24 9616 0.16 17,956 1.00

Individual single premium 529.92 1153
Individual non single premium 673.57 8438
Group single premium 20.85 1 190
Group non single premium 77.69 24 17,766
4. SBI Life 8460.42 1.53 26,515 0.44 17,0035 9.47
Individual single premium 1986.43 1144
Individual non single premium 1573.69 24759
Group single premium 3257.56 2 40,165
Group non single premium 1642.74 610 1,29,870
5. TATA AIG 7551.74 1.37 64,420 1.08 11,730 6.33
Individual single premium
Individual non single premium 5704.18 64,344 29,094
Group single premium 198.62
Group non single premium 1648.94 76 84,636

TABLE 4: Top five Life Insurance Companies (in terms of premium, till July 2007)

SOURCE: IRDA Journal, September 2006.


HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's
largest housing finance institution and Standard Life Assurance Company, Europe's
largest mutual life company. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October 2007.

Standard Life, UK was founded in 1825 and has experience of over 180 years.
Companies. The company is rated as "very strong" by Standard & Poor's (AA) and
"excellent" by Moody's (Aa2).

HDFC Standard Life's cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2006. So
far the company has covered over 11, 00,000 individuals and has declared 5th
consecutive bonus in as many years for its 'with profit' policyholders.

The most successful and admired life insurance company, which mean that we are the
most trusted company, the easiest to deal with, offer the best value for money, and set
the standards in the industry. “The most obvious choice for all”.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
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 The Standard
Life Assurance Company, a leading provider of financial services from the United
Kingdom. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life insurance
We attribute the success of our company to our people, who are our most important
asset. We believe they are a key fact of the company and it is their contribution that
has enabled us to achieve our current status. Since they deserve the best, our efforts
have been to provide them with the best environment, culture and development
opportunities possible.

HDFC Standard Life Insurance is known for its stimulating environment with high
levels of motivation, empowerment and recognition. We encourage an open and
informal culture that values integrity, commitment, teamwork and excellence in
customer service. We adopt a policy of strong learning and development initiatives,
which promotes day-to-day learning as well as decision-making. We believe our
strength is our people, so we endeavor to surpass their expectations and give them the
best possible work environment and benefits that match the best in the industry.


• Integrity
• Innovation
• Customer centric
• People Care
• Teamwork “One for all and all for one”
• Joy and Simplicity


• Customer service of highest order

• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater different needs of different customers
• Use of technology to improve service standards




Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2007 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year. Since
being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

The study of insurance companies of that time clearly reveal that concept of trustship
which should be cornerstone of life business seemed entirely lacking and most of the
managements had no appreciation of the clear and vital distinction that exists between
trust monies and those that belong to joint stock companies owned by shareholders.
So the nationalization of life insurance business became necessary with a view to --
• provide cent percent security to policy holder,

• ensure the use of life insurance funds for nation building activities,

• avoid wasteful efforts in competition,

• save the dividends paid to shareholder of insurance companies,

• avoid certain undesirable practices adopted by some of the insurance

companies management, and

• Spread the gospel of life insurance into the neglected rural areas.

245 Indian and foreign insurance and provident societies taken over by the central
Government and nationalized. In 1956, the Government of India nationalized the life
insurance business. Since then the entire life insurance business is being transacted by
the Life insurance Corporation of India for more than four decades, the LIC has been
enjoying monopoly status enjoying supernormal profits at the expense of consumers
in life business in the country. The LIC by this time has grown manifold. At present it
has a network of 7 zones, 100 divisions and over 2007 branches. The annual premium
income was US $21 million in 1956. Current business investment in LIC is over US
$29 billion. Life insurance funds constitute approximately 11 percent of gross
household saving in financial assets in India, and a little over 1 percent of gross
domestic product. Life insurance Corporation of India, despite its best efforts, has not
penetrated more than 15 percent of the insurance population, which itself is more than
300 million. Insurance penetration as a measure of percentage of GDP is very low for
India and countries like South Korea are much higher than India. With approximately
$7 billion of premium collected annually, India is the 23rd largest market in the world.
The General insurance business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from January 1, 1973. 107 insures
amalgamated and grouped into four companies, viz the national insurance company
Ltd., the New India Assurance Company Ltd., the Oriental Fire and general insurance
company Ltd., and the United India insurance company Le., General insurance
company (GIC) was incorporated as a company. The four constituents of the GIC
were to operate on a competitive basis and be governed by the guidelines structured
by the Government of India. Recognizing the need for reforms in the financial and
insurance sector, the government appointed the Malhotra Committee to seek and
identify the measures required for the reform process in the insurance sector.
Source: Reddy, K. Rama Krishna, and Reddy, Raghunatha, ‘Life Insurance
Corporation of India, Need for New Lessons’, PIMR, 4, October, 2006.


Business firms undertake SWOT analysis to understand the external and internal
environment. SWOT, which is the acronym for Strength, Weakness, Opportunities
and Threats, is also known as WOT-UP Analysis. Through such an analysis strength
and weakness existing within an organization can be matched with the opportunities
and threats operating the environment so that an effective strategy can be formulated.
An effective organization strategy, therefore, is one that is capitalized on the
opportunities and through the use of strengths and neutralizes the threats maximizing
the impact of weakness.

⇒ Has sold 3 lakh policies.
⇒ Brand power.
⇒ Strong assets and infrastructure.
⇒ Market share of 22.5%.

⇒ Industry in nascent stage.
⇒ Awareness about private life insurance companies is very less.
⇒ Still not very popular in rural market.
⇒ Very few branches in the country.
⇒ Lack of operational activities.

⇒ Liberalization of Indian economy.
⇒ Life Insurance sector opening up.
⇒ Very small percentage of population insured in India One of best products
in the market.
⇒ Global market opportunity.


⇒ Lack of proper technical knowledge among the mass.
⇒ Apprehension towards HDFC Prudential being a private life insurance
⇒ LIC: very big player.
⇒ Change in government policy may affect the growth and expansion of the
Insurance sector and the company




The objective of the study is to study the insurance policies and activities in HDFC
SLC with special emphasis on products of the company.
In this era of cutthroat competition, any organization needs to select and retain the
best talent. People selected should have positive attitude, ability to inspire others and
must be dynamic.
This project involved the study of:
 Working of Insurance Plans
 SWOT analysis of the product sold
 Comparative study with the competitors


The questionnaire is a structured technique for data collection consisting of a series of

question, written or verbal, to which a respondent replies, is interpreted as


The data has been collected through filling up of the questionnaire from different
company’s managers and financial consultants and interviewing them about their
various options of investments.
Primary data collected from these managers and financial consultants only. This is
first hand data. This is gauged by personally conducting interviews, observation and
by means of questionnaire.

Secondary data was collected from

 Internet,
 Company documents,
 Newspaper and
 Magazines.




HDFC commenced operations as a mortgage bank; it raised large wholesale resources

(domestic and international) and lent primarily to individual households. In mid 1991,
HDFC entered the retail deposit market by offering savings and investment
opportunities to households.

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged
as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs s 120 crores. The net
worth of the corporation is Rs. 28,000 crores.


HDFC Standard Life Insurance:-

HDFC Standard Life Insurance Company is a joint venture between India’s largest
housing finance provider, HDFC, and the Europe’s largest mutual life assurance
Company, the Standard Life Assurance Company (U.K).

HDFC Developers Limited

HDFC promoted a wholly owned subsidiary company; HDFC Developers Limited, to

undertake housing projects on a selected basis in various regions of the country.
HDFC Developers Limited has also undertaken a number of projects for the office
premises of the corporation. It is also being engages as a consultant to a number of
residential and commercial projects.

HDFC Investments Limited

HDFC promoted a wholly owned subsidiary company; HDFC Investments Limited

(HIL), to undertake investments in stocks, shares, debentures, and other securities.
The Reserve Bank of India under the category of investment Company has registered

HIL as a Non- Banking Insurance Company (NBFC). HIL was set-up with an
intention of being the investment arm of HDFC.

• HDFC Realty Limited

• HDFC Holding Limited

• HDFC Asset Management Company Limited

• HDFC Trustee Company Limited

• HDFC Finance Limited


HDFC has broadened its service range by entering into strategic associations with
some of the best organizations, both Indian and international, which include:

HDFC Bank Limited: Initially promoted in strategic alliance with NatWest Group,
U.K. With NatWest diversting it’s holding. HDFC Bank has signed a MoU for
strategic business collaboration with The Chase Manhattan Bank. Chase Capital
Partners through their various investment funds in India have acquired 15% stake in
HDFC Bank.

The Housing Development Finance Corporation and HDFC BANK have promoted
HDFC SECURITIES LIMITED. HDFC Securities has already acquired BSE and
NSE membership.

Infrastructure Leasing and Financial Services Limited: Co – promoted jointly with the
Unit Trust of India and Central Bank of India.

Maruti Countrywide Auto Financial Services Limited: IN alliance with Maruti Udyog
Limited and GE Capital India Limited.

Colliers Jardine India Property Services Limited: Co – promoted jointly with

infrastructure Leasing and Financial Services Limited and Colliers Jardine Asia
Pacific Limited.

GRUH Finance Limited: Established with support from the international Finance
Corporation, the Aga khan Fund for Economic Development and Government of

SBI Home Finance Limited: Co – promoted jointly with SBI Capital Markets

Can Fin Homes Limited: Co – promoted jointly with Canara Bank and Asian
development Bank.

GIC Housing Finance Limited: Co – promoted jointly with the General Insurance


Founded in 1977, HDFC is today the market leader in housing finance in India and
has extended financial assistance to more than 15 lakh homes. HDFC has more than
110 offices in India presently. It also one international office in Dubai and 3 Service
Associates in Kuwait, Qatar, and the Sultanate of Oman. HDFC’s asset base amounts
to over Rs 28,000 cores. Its financial strength is reflected in highest safety ratings of
‘FAAA’ and ‘MAAAA’ awa4rrded by CRISIL and ICRA – two of India’s leading
credit rating agencies- respectively, for the last 6 years consequently. It has a
depositor base of over 1 lakh customers and a deposit agent’s force of over 46,000. Of
the total deposits, 73% are sourced from individual and trust depositors. Which
demonstrates the tremendous confidence that retail investors have in the company.

Being an institution that is strongly committed to the highest standards of quality and
excellence, HDFC has won several accolades in the past few years such as
“Ramakrishana Bajaj National Quality Award” for the year 1999. This award was
instituted to award recognition to Indian companies for business excellence and
quality achievement. HDFC is the only company so far to receive this award.


Founded in 1825, Standard life has been at the forefront of the UK insurance industry
for 176 years by combining sound financial judgement with integrity and reliability.
The largest Mutual life Company in Europe, it has operations in the United Kingdom,
Ireland, Spain, Germany, Austria and Canada with representative offices in Hong
Kong and China.

One of its most recent successes was the launch of Standard Life Bank on 1st January,
1998. The introduction of its innovative mortgage product in January 1999 has an
immediate impact on the UK market, accounting for 1% of all new lending within the
first operational year. The current loans understanding amount to Rs. 43,000 crore.

Standard Life has total assets of Rs. 5,95,000 crore and new premium income last
year of Rs. 30,000 crore. Its UK investment portfolio accounts for approx. 2% of all
shares listed in the London Stock Exchange. It is one of the few insurance companies
in the world to receive AAA rating from two of the leading international credit rating
agencies. Moody’s and Standard & Poor’s. The later described Standard Life’s ability
to meet its claims obligations as ‘overwhelming under a variety of economic

Standard life is rated as one of the strongest companies of the world, in financial
terms. The company’s reputation in the UK market remains unrivalled. Besides, being
voted ‘ company of the Year for overall service, for the third consecutive year,
Standard Life was recently voted ‘Company of the Decade’ by independent brokers.

Incorporation of HDFC Standard life Insurance Company Limited

The company was incorporated on 14th August 2000 under the name of the HDFC
Standard Life Insurance Company Limited. On the 23rd of October 2000, HDFC
Standard Life was the only Life Company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Life’s existing investment in the HDFC Group, this
is the maximum investment allowed under current regulations

The Retails Sales Hierarchy of HDFC Standard Life Insurance

General Manage

Head Retail Sales

Regional Branch Manager

Business Development Mangers

Certified Financial Consultants


Analysis of performance of HDFC Standard life in financial year 2006-


The company has achieved a total sum of Rs 1,266 crore on its individual insurance,
individual pensions and group insurance business nationally and has covered
44.311 lives. The total sum assured in the first quarter of the current financial
year is Rs 800 cr. HDFC Standard life is also the first new life insurance
company to declare a bonus on its with profits policies. The company has
declared a lower interim bonus of 7 % on single premium policies and 3.75% on
regular premium policies.

HDFC Standard life has declared a non-recurring founder’s bonus.

The company has earned Rs 789 crore from its individual life insurance and pension
business, of which 20% has come from the HDFC personal pension plan, which was
introduced in February 2006. Of the individual policies, endowments from 52%,
while single premium policies brought in business worth Rs 10crores

PARTICULARS FY 2004-05 FY 2006-07

Total premium Rs 298 crores Rs 687 crores
Insurance coverage Rs 5000crores Rs30000 crores
New business premium Rs 132 crores Rs 486 crores

Growth rate 260% 132%

Number of offices in India 44 104
Number of FC 10500(approx) 23000
Group business insurance coverage 2000 crores 10,000 crores
Lives insured in groups business 22,000 lives 200,000 lives


• Structured sales processes

• Better understanding of customer needs and their assessment.
• Training was one of the biggest initiatives they undertook last year.
• Offered a wide range of employee benefit solutions to its corporate clients.


HDFC Standard Life Insurance offers you a range of innovative life insurance plans.
Through an appropriate combination of the basic plan and optional benefits, we can
create the right insurance solution for you.



Endowment Assurance Life Insurance + Savings + upto 4 optional benefits

Money Back Life Insurance + Savings + upto 4 optional benefits

Single Premium Whole Of Life Investment + Life Insurance

Term assurance Life Insurance at an affordable price + upto 2



Loan Cover Term Assurance Life Insurance for loan cover protection + 1


Personal Pension Plan Savings + Retirement Planning

HDFC Standard Life Insurance is presently operational in
 Ban galore,
 Bhopal,
 Chandigarh,
 Chennai,
 Delhi,
 Hyderabad,
 Indore,
 Jaipur,
 Kolkata,
 Kanpur,
 Lucknow,
 Ludhiana,
 Mumbai,
 Pune ,
 Rajkot,
 Surat,
 Thane and
 Vadodara ,
 Panjim ,
 Nasik and many more places.


HDFC Standard Life offers a range of products and invites you to choose the one that
suits you best.


This policy provides a combination of savings, regular cash payments and life
insurance. Over the course of the contract, a proportion of the sum assured will be
paid at regular intervals. The sum assured plus any bonuses will be payable on death
before the end of the contract. On survival to maturity, you will get the sum assured
plus any bonuses less the regular payments already made. Your commitment is to pay
a level premium regularly throughout the life of the policy. The Money Back can also
be customized to meet your needs by adding any combination of up to 4 rider



Under the Term Assurance plan, a sum assured is payable in case of death of the life
assured during the term of the contract. One can choose the lump sum that would
replace the income lost to one's family in the unfortunate event of one's death. The
Term Assurance Plan comes to you at a minimal cost and is well suited for the value-
conscious customer. The Term Assurance Plan can also be customized to suit your
needs by adding optional rider benefits.


The Loan Cover Term Assurance plan provides a lump sum on death of the life
assured during the term of the plan. The lump sum will be a decreasing percentage of
the initial sum assured. It is an affordable plan that has been designed to help your
family repay the outstanding loan in case of your unfortunate death.


The Personal Pension Plan is basically a savings contract, which is designed to

provide an income for life from retirement, with an option to take the lump sum
elsewhere to buy the annuity, provided it is permitted by the prevailing regulations.
Your commitment is to pay a single premium or level premiums with installments due
every quarter, half-year or year throughout the deferment period of the policy, after
which you will start receiving your pension.


The future of your child is most important to you. You need to plan today to ensure a
bright future for your child, whether it is education, marriage or establishing a
professional career. To help you save for your child, we at HDFC Standard Life,
present the Children's Plan.

The plan is affordable, customized to your needs, and above all, enables you to realize
your dreams for your child. This plan is well suited for the value-conscious customer,
and above all, for every loving parent. This plan can also be chosen by grandparents,
other relatives or any adult for the benefit of a child.


What is an Endowment Assurance Plan?

It is a participating (with profits) insurance plan that offers the following features:

• Provides financial support to the family by way of a lump sum payment in

case of the unfortunate death of the life assured within the term of the policy.
• Provides a lump sum payment to the life assured on survival up to maturity.
The lump sum mentioned is the basic sum assured plus any bonus additions.

Why should you buy this product?

This plan is with profits saving plan and is well suited for saving money for your long
term financial goals. This plan also helps provide for the needs of your family in your
absence by paying out a lump sum in the event of your unfortunate death during the
term of the policy.

What optional benefits are available With this plan?

You can add the following optional benefits to customize your policy to suit your

Critical Illness (CI) Benefit provides an additional amount equal to the basic
sum assured on diagnosis of any one of the 6 common critical illnesses *. The
sum assured is payable if you survive for 30 days after the date of the claim.
Once such a claim has been met, no further Critical Illness Benefit is payable.
However, your basic policy continues even after we pay a claim on this

Double Sum Assured (DSA) Benefit provides an additional amount

equivalent to the basic sum assured in case of your unfortunate death.

Accidental Death Benefit (ADB) provides an additional amount equal to the

basic sum assured in case you die:

- Due to an accident, and

- Within 90 days of the accident.

Waiver Of Premium (WOP) Benefit waives the premium for you in case
you become totally disabled. The waiver is applicable during the period of
total disability.

* (a)Cancer, (b)Coronary artery bypass graft surgery, (c) Heart attack, (d) Kidney /
Renal failure, (e)Major organ transplant (as recipient) and (f)Stroke.

Endowment Assurance Plan offers you Tax Benefits?

Tax benefits described in Section 88, Section 80D** and Section 10 (10D) of the
Income Tax Act are applicable. Applicable to premiums paid for CI and WOP.

**Applicable to premiums paid for CI and WOP.


This plan can be taken on a single life basis or a joint life (first claim) basis. The
eligibility ages are as follows:

Basic Policy Basic Policy with optional



Min. age at entry 12 18 18 18 18
Max. age at entry 60 55 60 55 50
Max. age at expiry 75 70 75 65 60

Min. term: 10 years; Max. Term: 30 years


Joint life insurance policies are similar to endowment policies as they too offer
maturity benefits to the policyholders, apart form covering risks like all life
insurance policies.
But joint life policies are categorized separately as they cover two lives
simultaneously, thus offering a unique advantage in some cases, notably, for a
married couple or for partners in a business firm

Under a joint life policy the sum assured is payable on the first death and again on
the death of the survivor during the term of the policy. Vested bonuses would also
be paid besides the sum assured after the death of the survivor. If one or both the
lives survive to the maturity date, the sum assured as well as the vested bonuses are
payable on the maturity date. The premiums payable cease on the first death or on
the expiry of the selected term, whichever is earlier.


Group insurance offers life insurance protection under group policies to various
groups such as employers-employees, professionals, co-operatives, weaker sections
of society, etc. It also provides insurance coverage for people in certain approved
occupations at the lowest possible premium cost. Such plans are particularly
beneficial to those for whom other regular policies are a costlier proposition. Group
insurance plans extend cover to large segments of the population including those
who cannot afford individual insurance.

A number of group insurance schemes have been designed for various groups.
These include employer-employee groups, associations of professionals (such as
doctors, lawyers, chartered accountants etc.), and members of cooperative banks,
welfare funds, credit societies and weaker sections of society.

Unit linked insurance plan (ULIP) is life insurance solution that provides for the
benefits of protection and flexibility in investment. The investment is denoted as
units and is represented by the value that it has attained called as Net Asset Value
(NAV). The policy value at any time varies according to the value of the underlying
assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:

• Life protection
• Investment and Savings
• Flexibility
• Adjustable Life Cover
• Investment Options
• Transparency
• Options to take additional cover against
• Death due to accident
• Disability
• Critical Illness


To sum a wise man had said that the time to mend the roof is when the sun is shining.
This is applicable to life insurance too. Today as the breadwinner you are able to
maintain a decent standard of living for yourself and your family. If you want enough
bread for the family even after the death of the breadwinner, you should look at the
Single Premium Bond. In other cases, life insurance is an absolute necessity. Have a
look at other products.

Money Back Plan

Total Policy Number of years from policy date
Term 5 10 15 20 25
10 40%
15 30% 30%
20 25% 25% 25%
25 20% 20% 20% 20%
30 15% 15% 15% 15% 15%
Endowment Assurance Plan
Age Basic Policy Additional Premium
Years Premium For Optional benefits (Rs.)
20 4771 304 322 136 236
30 4835 442 388 144 300
40 5098 925 641 156 475
50 5813 1890 1357 - -


SEGMENT Protection Investment Savings Pensions

Individuals term Assurance Single premium bonds

Endowment / Money Back Pensions plans, annuities

Corporate Group term InsuranceGratuity Superannuation


The life insurance and pension business has two distinct customers segments -
individuals and corporate. In case of the retail business for individuals, the 4 sub-
segments are - protection, investment, savings and pension. Apart from the existing
leader LIC, new companies such as HDFC Standard Life, TATA AIG, ICICI
Prudential and more will seek to be present across all the segments of the market.

Among the retail products for individuals, pure risk protection products have been
introduced by some of the new life insurance companies in the market. As these
products have no savings component to it, the premiums are very low compared to
other products. Investment products provide long term investment growth and
insurance cover. This segment is growing rapidly. Savings products like Endowments
and Money-Backs provide a combination of protection and investment benefits. The
last segment of pension includes products that are aimed at offering customers an
income during their retirement years. In case of the group business, there are three
sub-segments - protection, statutory savings and pension. Group insurance products
are taken to provide low cost life insurance cover to a group of people. Group
insurance can be taken to provide low cost life insurance cover as part of employee
benefit packages to motivate employees or to cover the housing or vehicle loan given
by employer to employee. It can also be used as a substitute for the statutory EDLI
subject to approval by the Regional Provident Fund Commissioner. The statutory
savings segment essentially comprises of the gratuity products for companies. The
pension segment will include products like group superannuation, which will enable a
company to benefit from the actuarial, investment and operational expertise of a
specialist company to manage its superannuation funds.

HDFC Standard Life declares results for FY 2006-07, premium from new business
more than three and a half times over last FY Insurance coverage crosses Rs. 5000
crore mark.

HDFC Standard Life participating policyholders to benefit from third successive

bonus declaration

On 8th May 2007, HDFC Standard Life Insurance Company Limited, the first private
sector life insurance company to start operations, declared its annual results for the
financial year ending March 31st, 2007. The company generated premium from new
business of Rs. 132 crore in 2006-07, as compared to Rs. 36 crore in the previous
financial period, registering a year-on-year growth of over 260%.

Another significant achievement for HDFC Standard Life was that the cumulative
insurance coverage, i.e. the sum assured for the policyholders, crossed the Rs. 5000
crore mark during the year. During this period, HDFC Standard Life extended life
insurance coverage to over 1, 50,000 lives.

According to Mr. Deepak Satwalekar, Managing Director and CEO, HDFC Standard
Life, the exceptional growth in business in the past twelve months had been driven by
the rising expectations of the consumer. This in turn had resulted in HDFC Standard
Life introducing new insurance solutions, establishing an increased presence across
locations, increasing its sales force of trained financial consultants and adding
corporate agents to its distribution mix, he added.

The Directors of HDFC Standard Life at their Board meeting on 29th April, 2007,
also declared the company’s third bonus for participating policyholders.

Commenting on the bonus declaration Mr. Deepak Parekh, Chairman, HDFC

Standard Life, said “We have declared reversionary bonus rates this year equal to the
interim bonus rates we declared last year. Long term interest rates have fallen by over
1% since we declared our bonus last year, and this has had an impact on the rates of
interest that all financial institutions can pay their customers. In recognition of this fall
in long term interest rates we have reduced our interim bonus rates this year, and
unless there is a recovery in long term interest rates, reversionary bonus rates will also
have to be reduced in future years.”

Details of the bonuses declared are given in the Annexure attached along with this

HDFC Standard Life’s current product portfolio caters to all the needs of the
individual – protection, investment, savings and pension. Mr. Satwalekar said, “Our
products are in fact integrated financial solutions that can offer them stability of
returns along with total protection. We would, going forward, continue to add to our
“insurance solutions portfolio to offer increased flexibility in structuring
individualized insurance solutions.”

A new addition to HDFC Standard Life’s product portfolio was the HDFC Children’s
Plan in February 2007. This customized solution has found wide acceptance amongst
policyholders towards ensuring a bright future for their children, whether it is
education, marriage or establishing a professional career. Besides the Children’s Plan,
the HDFC Personal Pension Plan also continued to gain in popularity during the year.
Amongst private insurers, HDFC Standard Life currently has a 25 percent market
share in the pension segment.

With offices in 49 locations, HDFC Standard Life has nearly doubled its physical
presence across the country in the last twelve months. Ajmer in Rajasthan was the
latest in the company’s list of cities that it operates from.

Also contributing to the growth in business were more than 10,500 financial
consultants trained to understand the needs of the consumer, provide the right advice
and maintain high service standards.


The current state of insurance distribution in India is still in flux. On one hand,
insurers are awaiting regulations to be approved for brokerages and banc assurance to
be truly launched. On the other hand they are trying the corporate model of
intermediaries in addition to the traditional models in the market.

There is no right and wrong in all this. The success of marketing insurance depends
on understanding the social and cultural needs of the target population, and matching
the market segment with the suitable intermediary segment.

In addition a major segment of the Indian population has low disposable income,
meaning that every penny won will be obtained after a lot of persuasion and the
expected value for money is high.

All intermediaries can't sell all lines of business profitably in all markets. There
should be clear demarcation in the marketing strategies of the company from this
perspective. Clients should also receive price differentials for using different
channels. This is not a new concept, as the Public sector Property Casualty companies
are giving discounts in lieu of agency commission. The channel composition should
not be homogeneous but should reflect the larger society.


• Agents from different economic, social strata and different age and gender.

• Banc assurers ranging from multinational banks to micro credit lending


• Brokers stretching from corporate to NGOs to milk co-operatives

These intermediaries need to be empowered with the right learning, training and sales
tools and technology enablers. Coupled with the right product mix, this will help the
insurers to survive and flourish in this competitive market.

Let us conclude with a story of a retired postal clerk who became a success story for
selling postal savings and insurance in his village in Punjab in Northern India. The
person is the father of our colleague, who is a retired postal employee and took up
agency for postal savings and insurance to supplement his meager retirement

Today -- 10 years later -- he is one of the top agents selling postal savings and
insurance in his village, assisted by his illiterate wife and grandson (a seven year old
computer literate) doing all the administrative work from home on a small Personal
computer using a package (developed by our friend who is a programmer) to handle
his client portfolio!

The entire village population trusts him with the investment advices that he doles out
and has no qualms in handing over small amounts of cash to him for depositing in the
post office. He is their trusted customer care or financial consultant. This we feel is
the essence of distribution of financial products in India




Comparisons of the distribution of occupation of the respondents.

HDFC Standard Life Insurance

Self - employed 6%

Emp. Emp.
(Pubic.sector) (Pvt.sector)
18% 62%

It belonged to the employee in the private sector, 62 belong to the employee

in the private sector, 18 are self employed and 14 are in the other category.
All these 3 respondents are retired from there jobs.

HDFC Standard Life Insurance

5 HDFC Standard Life
0 Insurance
advertisements. (I) & (ii) All Three

The average score received was calculated by adding the score given by each
respondent divided by the total number of respondent. Also it was noted that
in case of LIC there were total of 13 respondents who give rating of 5 or less
than 5 but the same in case of HDFC Standard Life Insurance were only 3.


It is inferred that though the difference between the averages score obtained
on the satisfaction of financial needs is not much, the customers of HDFC
Standard Life Insurance seemed to be satisfied









HDFC Standard Life Insurance

Advt. Frends DSAs


In the above figure all the respondents marked more than one option given in
the questionnaire advertisements in print media, television, radio etc, and 11
responses went in favor of word of mouth communication through friends
and relatives. Of the total respondents of HDFC Standard Life Insurance, 34
responses went in favor of advertisements, 26 went in favor of DSAs, and
only 4 went in favor of friends and relatives.


Any specific inference cannot be drawn from this information, but still word
of mouth communication plays a great role in case of life insurance policies
and HDFC Standard Life Insurance life insurance is quite lagging behind in
this area.


30 LIC HDFC Standard Life Insurance





High Satisfied Moderate Unsatisfied Highly
satisfied unsatisfied


Of the total respondents of LIC (as shown in figure 4.10), 28 responded that
they are very much satisfied with the incentive schemes associated with their
policies, 7 were only satisfied with the incentive scheme, 9 were moderate
with regards to the incentive scheme and 6 people were either unsatisfied or
highly unsatisfied with the incentive schemes. However, of the total
respondents of the HDFC Standard Life Insurance, 24 were highly satisfied
with the incentive scheme associated with their life policy while only 6
people were highly unsatisfied with regards to the same .


The customers of both the organizations hold positive perception towards

the incentive provided by them. This is very well visible from the total
numbers of “highly satisfied” and “satisfied” category, wherein close to 70%
of the customer interviewed for both the organizations have responded in
these categories.


1). Are you interested in products offered by the HDFC SLC?

Yes 61%

No 22%

Will think 17%


22% 61% Will think

The good thing is that at least the corporate were quite eager to find out what HDFC
SLC has to offer whereas the major 39 % of the corporate were not even interested in
the products as they are quite satisfied by the LIC and they are not in breaking their
long relationship with them. The private players will have to play a long battle in
order to ensure that they are serious player in the market.

2). Are you satisfied with your present insurer?

YES 95%
No 5%

95% 5% 5%

Here is where the challenge is. Inevitably most of the players are very satisfied with
their present insurer which makes it more tough for the private players to attract the
corporate. The remaining 5 % are also not very dissatisfied by the services but they
are just open to new avenues and are looking forward that private companies come
with good offers so that they may shift to them. Thus private players will have to be
very proactive and in this regard since LIC is the leader and HDFC SLC is lagging
behind its competitors in terms of competition.

3). Where would you like to insure if given chance?

LIC - 60
ICICI - 10
HDFC - 15
SBI - 8

40 60

20 8 10 5 2
0 3-D Column 1


Thus we see that the companies are comfortable in having business with govt. owned
companies as they feel it’s safe & secure to have business with them which is
followed by SBI as it is the biggest bank and then followed by

4). what is people’s main concern while taking a insurance policy?

A) Security 70%
B) Returns 10%
C) Tax rebate 20%



People invest in insurance mainly because of security concern.

Q.5 Are you satisfied with the for premiums paid for the different


Very Low

Very High



⇒ Here we found that

⇒ 40%people are very highly satisfied,

⇒ 30% of people are highly satisfied,

⇒ 11% are moderate,

⇒ 10% of people are low satisfied,

⇒ 9% are very low satisfied .

6). Are you satisfied with the incentives associated with
your policy?

30% Highly satisfied
25% Satisfied
20% Moderate
15% Unsatisfied
10% Highly Unsatisfied
Highly Unsatisfied


⇒ 30% people are highly satisfied,

⇒ 40% satisfied,
⇒ 15%are moderate,
⇒ 5% are unsatisfied
⇒ 10%are highly unsatisfied.

7). What other plans or flexibility you expect
fromInsurance companies?

More returns

20% Pattern


⇒ 50%people are satisfied with investment pattern,

⇒ 30% are satisfied with more returns and
⇒ Only 20% people expect complimentary gifts.




1. LIC enjoys credibility over other private players in the industry

2. People look for security over returns in market insurance plans

3. Lifetime is the most popular product among the people who are aware

about HDFC SLC products.

4. People are now showing more interest in ULIP as compared to some of the

traditional plans.

5. HDFC SLC has to counter the distribution network of LIC

6. The product profile of HDFC SLC is not very comprehensive




More emphasis should be on promotional activities.

⇒ Plenty of advertisement should be done through T.V, Newspaper and Radio as

these media’s are having maximum recall value.

⇒ Total financial planning and advice should be given to every customer.

⇒ More business opportunity seminars should be conducted to make people

aware of the offer given.

⇒ The company should quite frequently send their agent to the customer so that
they should be aware of the latest offer.

⇒ The company should attempt to open more and more of its branches in the
country so as to promote their product publicity.



The geographical area was very much limited to residential area & so the results are
not particularly reflection of the current behavior.

⇒ Biases and non-cooperation of the respondents.

⇒ Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.

⇒ Most of the people in India take their policies in the period preceding
March(for tax saving purposes) & so the response to initial contacts were not
all encouraging and that has been the primary reason in the inability to
quantify the results large enough so as to deduce any relevant outcomes.

⇒ People are not interested in giving personal opinion.