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PROJECT REPORT

ON
AN INVESTORS PERSPECTIVE OF TOWARDS INSURANCE
INDUSTRY IN INDIA

Submitted in partial fulfillment of the requirements


For the degree of B.Com (Hons.)

Submitted to

Submitted by

Prof. Chabi Gupta

Anoop Kumar

Faculty Guide

ADM No. 13GSFC101042


Enroll No. 1306102014

Department of Finance and Commerce

(2013-2016)

Declaration
I, Anoop
kumar student of B.com (Hons.) Finance

hereby declare that my

project report entitled Investors perspective towards insurance

industry in India is written and


submitted by me. This project report is not copied from any source or other
project report submitted for similar purpose.

Anoop kumar
B.COM (HONS.)
ADM NO. -13GSFC101042
ENROLL NO. - 1306102014

ACKNOWLEDGEMENT

I convey my sincere thanks to Prof. Chabi Gupta , Faculty Guide under her
valuable guidance and supervision and support at all time and providing me the
proper guidance to carry out internship report effectively and efficiently.
I would like to thanks to all those people who provided me the best information
directly and indirectly throughout my project report completed at time.

Anoop kumar
B.com(H)
Admission no 13gsfc 101042
Enrollment no 1306102014

C E RT I F I C AT E

This is to certify that the project report entitled

investors perspective

toward insurance industry in india


is a bonafide work carried out by Mr. Anoop kumar
, student of B.com (Hons.) (Finance) of GALGOTIAS UNIVERSITY
under my supervision and guidance. This project report is submitted for the
requirement of the degree of the award of B.com (Hons.) (Finance).
This work has not been submitted anywhere else for any other degree / diploma.

Date: _____________

Place: _____________

Faculty Guide

SYNOPSIS:
SCOPE OF THE STUDY:
The result of this research would help the company to have a better
understanding about the consumers perception towards life
insurance.
The study helps the company by creating awareness about the
consumers of different ages and income levels.
The study also enables the company to focus the consumers
preferences and expectations on the product which they offer.
OBJECTIVES OF THE STUDY:
a) To know about the various Investment alternatives that is
mostly preferred by the people.
b) To find out the important criteria that people think about
before investing in a life insurance policy.
c) To find out whether gender bias involved in investing life
insurance or not.
d) To find out the awareness of HDFC Life Insurance among the
people

RESEARCH METHODOLOGY:
Methodology is a systematic way of solving a problem it includes
the research methods for solving a problem it includes the
research methods for solving the problem.

Type of research
Descriptive research
Data source
Primary and Secondary data
Data collection method
Interview and survey

Data collection tools Questionnaires

Sampling universe Sample size


100
SAMPLE DESIGN
The target population of the study consists of various respondents
of various places. This survey was done by collecting the data from
the respondents.
SAMPLE SIZE
After due consultation with the company supervisor as well as with
the college guide, also keeping in mind the requirements of the
company for the research, the sample size that was found to
be appropriate for the study was 100.

SAMPLING TECHNIQUE
The sampling technique that adapted to conduct the survey was
Convenient Random Sampling and the area of the research was
concentrated in the city of Erode only. The survey was conducted
by

visiting

different

respondents home etc

places

like

colleges,

corporate

offices,

DATA SOURCE
The task of data collection begins after a research problem has
been

defined.

In

this

study

data

was

collected

through

both primary and secondary data source.


A. PRIMARY DATA
A primary data is a data, which is collected for gathering
information first timeand to analyze the problem. In this study the
primary

data

was

collected

among

the

consumers

using

questionnaire.
B. SECONDARY DATA
Secondary

data

consist

somewhere,

of

information

having

that

already

exits

been

collected for

some other purpose. In this study secondary

data was

collected from company websites, magazines and brochures.


STATISTICAL TOOLS
Simple percentage analysis, ranking method and chi square
analysis are the main statistical tool used for the study.

SIMPLE PERCENTAGE ANALYSIS


Percentage refers o a special king of ratio in making comparison
between

two

or more

data

and

to

describe

relationships.

Percentage can also be used to compare the relation terms


between

two

or

more

sources

of

data.

Percentage of respondents = Number of respondents * 100

/Total

respondents.

TABLE OF CONTENT:
S.NO

TOPIC

PAGE
NO.

* STUDENT CERTIFICATE

* FACULTY CERTIFICATE

INDUSTRY GUIDE CERTIFICATE

SYNOPSIS

EXECUTIVE SUMMARY

9
14

1.1

CHAPTER -1-INDIAN INSURANCE INDUSTRY AN


OVERVIEW
INTRODUCTION TO LIFE INSURANCE

1.2

NEED FOR INSURANCE

16

1.3

CHARACTERISTIC OF INSURANCE

18

1.4

FUNCTIONS OF INSURANCE

19

1.5

OVERVIEW

20

1.6

IMPORTANT MILE STONES OF INSURANCE INDUSTRY

23

1.7

LIBRALIZATION OF INDIAN INSURANCE

24

1.8

ROLE OF IRDA IN INSURANCE

24

1.9

ROLE OF INDIAN BANKS

26

1.10

POLE OF PRIVATE INSURANCE COMPANY

27

1.11

PLAYERS IN INSURANCE INDUSTRY

28

2.

30

2.1

CHAPTER-2 CONSUMER PERCEPTION ON LIFE


INSURANCE
INTRODUCTION

2.2

ABOUT CONSUMER PERCEPTION

33

2.3

CONSUMER BEHAVIOUR

35

1.

15

31

3.

CHAPTER-3 COMPANY PROFILE:HDFC LIFE

36

3.1

OVERVIEW

37

3.2

COMPANY PROFILE

39

3.3

OFFICES IN INDIA

40

3.4

VISION AND VALUES

42

3.5

ASSOCIATE COMPANIES

43

3.6

PRODUCTS OF HDFCSL

49

3.7

AWARDS

60

3.8

ORGANISATIONAL STRUCTURE

62

4.

CHAPTER-4 RESEARCH DESIGN

64

4.1

RESEARCH METHODOLOGY

65

4.2

RESEARCH OBJECTIVE

66

4.3

RESEARCH DESIGN

67

4.4

RESEARCH LIMITATION

69

5.

CHAPTER-5 FINDINGS AND ANALYSIS

70

5.1

SWOT ANALYSIS

71

5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7

GRAPHS
MARKET SHARE OF KEY PLAYERS
BENEFIT OF INSURANCE
SATISFACTORY LEVEL
WHICH SECTOR-PRIVATE OR PUBLIC
WHERE TO IMPROVE
TOTAL SUM ASSURED OF LIFE INSURANCE
REASON FOR INVESTING

73
73
74
75
76
78
79
81

6.

CHAPTER-6 CONCLUSION

82

6.1

CONCLUSION

83

6.2

FACTOR INFLUENCING CONSUMER BEHAVIOUR

87

6.3

SUGGESTIONS

88

6.4

LIMITATIONS

89

7.

QUESTIONAIRE

90

8.

RESUME

94

9.

BIBLIOGRAPHY

97

EXECUTIVE SUMMARY
The project A study on Consumer Perception about Insurance Company is
undertaken under the guidance of Mr. AMAN TANDON (Asst. Sales Manager).It
looks deep into the effectiveness at senior level. It also provides a comparative study
of

HDFC

STANDARD

Life

Insurance

Company

Ltd. withsome national companies with similar profiles to discuss their working stru
cture andsuggest to organization .On the basis of feedback through questionnaire,
interview and observation method, we find out the perception view about the
insurance

companys

working

style

services offered is quite effective, Management of HDFC STANDARD LIFE

and
is

constantly making efforts to make the company the best place to work for level. As
they are measures of individuals psychological makeup and personality and as such
are extremely powerful instruments as find out from our comparative analysis
results.

In order to make them proactive., it is required to provide them with such kind
of environment, and equally

have

people

oientation too in order to make a

company best place to work for high performers and creating a congenial
environment.

INDIAN INSURANCE INDUSTRY


THE INSURANCE INDUSTRY IN INDIA
1.1 INSURANCE:
Definition:
Insurance is a contract providing for payment of a sum of money to the person
assured or failing him to the person entitled to receive the same on the happening of
certain event. Uncertainty of death is inherent in human life. It is this risk, which
gives rise to the necessity for some form of protection against the financial loss
arising from death. Insurance substitutes this uncertainty by certainty. The objective
of insurance is normally to provide:
a)Family protection and / or
b)Provision for old age.
c)Protection against risks
Why Insurance?

Insurance cover is essential because it provides the following benefits:


A lump sum payment to the nominees at the time of the death of the policy
holder.
A regular payment to the nominees in the event of the death of the policy
holder. Tax benefits, as premiums paid reduce the liability of tax.
Relieves economic hardships in the family on the uneventful death of the sole
income holder.
Inculcates the habit of savings.

1.2 NEED FOR INSURANCE:


Who will take care of my family if tomorrow something unfortunate happens to
me? If this question bothers you, then Life Insurance is the answer.
Of course, under any circumstances, the loss of a loved one is a traumatic
experience. But, if your family is also left without sufficient money to meet basic
living needs or prepare for future goals, they will have to cope with a financial crisis
at the same time. A Life Insurance plan ensures that your family is financially secure
even if tomorrow you are no longer around to care for them.Life insurance,
especially tailored to meet your financial needs:
Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from.
Modern day investments include gold, property, fixed income instruments, mutual
funds and of course, life insurance. Given the plethora of choices, it becomes
imperative to make the right choice when investing your hard-earned money. Life
insurance is a unique investment that helps you to meet your dual needs - saving for
life's important goals, and protecting your assets. Let us look at these unique
benefits of life insurance in detail.

Asset Protection
From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the
underlying benefit of asset appreciation, life insurance is unique in that it gives the
customer the reassurance of asset protection, along with a strong element of asset
appreciation.

The core benefit of life insurance is that the financial interests of ones family
remain protected from circumstances such as loss of income due to critical illness or
death of the policyholder. Simultaneously, insurance products also have a strong
inbuilt wealth creation proposition. The customer therefore benefits on two counts
and life insurance occupies a unique space in the landscape of investment options
available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly
married couple, it could be buying a house. Once, they decide to start a family, the
goal changes to planning for the education or marriage of their children. As one
grows older, planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the instrument
in which you invest should offer corresponding benefits pertinent to the new life
stage.
Life insurance is the only investment option that offers specific products tailor
made for different life stages. It thus ensures that the benefits offered to the
customer reflect the needs of the customer at that particular life stage, and hence
ensures that the financial goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different
life stages.

g Life

Stage e

Young & Single

Prim Primary Need ary


Need

Life Insurance Product Life Insurance Product

Asset creation
Wealth creation plans

Young & Just married

Asset creation & protection

Wealth creation and mortgage protection plans

Married with kids

Children's education, Asset


creation and protection

Education insurance, mortgage protection & wealth creation


plans

Middle aged with grown up


kids

Planning for retirement & asset


protection

Retirement solutions & mortgage protection

Across all life-stages

Health Insurance
Health plans

1.3 Characteristics of insurance

Sharing of risks
Cooperative device
Evaluation of risk
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred.
The success of insurance business depends on the large number of people

insured against similar risk.


Insurance is a plan, which spreads the risk and losses of few people among a
large number of people.13
The insurance is a plan in which the insured transfers his risk on the insurer.
Insurance is a legal contract which is based upon certain principles of
insurance which includes utmost good faith, insurable interest, contribution,
indemnity, causes proximal , subrogation, etc.
The scope of insurance is much wider and extensive.

1.4 Functions of insurance:


Primary functions:
1.Provide protection: - Insurance cannot check the happening of the risk, but can provide for
the losses of risk.
2.Collective bearing of risk: - Insurance is a device to share the financial losses of
few among many others.
3.Assessment of risk: - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk.
4.Provide certainty: - Insurance is a device, which helps to change from
uncertainty to certainty.
Secondary functions:
1.Prevention of losses: - Insurance cautions businessman and individuals
to adoptsuitable device to prevent unfortunate consequences of risk by obs
erving safetyinstructions.
2.Small capital to cover large risks: - Insurance relives the businessman from
security investment, by paying small amount of insurance against larger risks and
uncertainty.
3.Contributes towards development of larger industries.
Other Function:
Means of savings and investment :Insurance companies are business houses.
The product they sell is financial protection. To succeed and survive, they must
cover their costs, which include payments to cover the losses of policyholders, as
well as sales and administrative expenses, taxes and dividends.

1.5 .AN OVERVIEW:

With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value
of the Indian insurance market is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services contribution
to the country's gross domestic product (GDP) is 7% out of which the gross
premium collection forms a significant part. The funds available with the stateowned Life Insurance Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts indicate the
of immense growth potential of the insurance sector. The year 1999 saw a revolution
in the Indian insurance sector, as major structural changes took place with the
ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players
and allowing foreign players to enter the market with some limits on direct foreign
ownership. Though, the existing rule says that a foreign partner can hold 26% equity
in an insurance company, a proposal to increase this limit to 49% is pending with the
government. Since opening up of the insurance sector in 1999, foreign investments
of Rs. 8.7 billion have poured into the Indian market and 21 private companies have
been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled
fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,

braving stiff competition from private insurers. This report, Indian Insurance
Industry: New Avenues for Growth 2012, finds that the market share of the state
behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the
fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion
in 2004-05 from Rs. 24.29 billion in 2003-04. Though the total volume of LIC's
business increased in the last fiscal year (2004-2005) compared to the previous one,
its market share came down from 87.04 to 78.07%. The 14 private insurers
increased their market share from about 13% to about 22% in a year's time. The
figures for the first two months of the fiscal year 2005-06 also speak of the growing
share of the private insurers. The share of LIC for this period has further come down
to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private insurance
companies collectively have a 10% share of the non-life insurance market.
Though the focus of this market research report is on the potential growth on the
Indian Insurance Sector, it also talks about the market size, market segmentation,
and key developments in the market after 1999. The report gives an instant overview
of the Indian non-life insurance market, and covers fire, marine, and other non-life
insurance. The data is supplied in both graphical and tabular format for ease of
interpretation and analysis. This report also provides company profiles of the major
private insurance companies.
The Indian Insurance Sector went through a full circle of phases from being
unregulated to completely regulate and then being partly deregulated which is the
present situation. A brief on how the events folded up is discussed as follows: The
Insurance Act of 1938 was the first legislation governing all forms of insurance
to provide strict state controls over insurance business. In 19th January, 1956, the

life insurance in India was completely nationalized through the Life Insurance
Corporation Act of 1956. At that time, there were 245 insurance companies of both
Indian and foreign origin. Government accomplished its policy of nationalization by
acquiring the management of the companies. Bearing this objective in mind, the Life
Insurance Corporation (LIC) of India was created on 1st September, 1956 which has
grown in leaps and bounds henceforth, to become the largest insurance company in
India. The General Insurance Business (Nationalization) Act of 1972 was formulated
with

the

objective of nationalizing nearly 100 general insurance companies and subsequently


amalgamating them into four basic companies namely National Insurance, New
India Assurance, Oriental Insurance and United India Insurance which have their
head quarters in four metropolitan cities. The Insurance Regulatory and
Development Authority (IRDA) Act of 1999 deregulated the insurance sector in
India and allowed the entry of private companies into the insurance sector.
Moreover, the flow of Foreign Direct Investment (FDI) was also restricted to 26
%of the total capital held by the Indian Insurance Companies.

1.6.IMPORTANT MILESTONES IN THE LIFE INSURANCE:


1818:
Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870:
Bombay Mutual Life Assurance Society, the first Indian life 'Insurance Company
started 'Its business,
1912:
The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life 'Insurance business.

1928:
The Indian Insurance Companies Act enacted to enable the government to collect
statistical 'Information about both life and non life insurance businesses.
1938:
Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the 'Interests of the insuring pubic.
1956:
245 Indian and foreign insurance and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act,1956, with a capital contribution of Rs. 5 chores from the Government of India.

1.7.Liberalization of Indian Insurance:


1994:
Insurance sector invited private participation to induce a spirit of competitionamong
st the various insurers and. to provide a choice to the consumers.
1997:
Insurance regulator IRDA was set up as there felt the Feed:
To set up an independent regulatory body, that provides greater autonomy to
insurance companies in order to improve their performance, In the first year of
insurance market liberalization (2001) as much as 16 private sector companies
including joint ventures with leading foreign insurance companies have entered the
Indian insurance sector. Of this, 10were under the life insurance category and six
under general insurance. Thus in all there are25 players (12-life insurance and l3general insurance) in the Indian insurance industry till date.

1.8.ROLE OF IRDA IN INSURANCE SECTOR:


IRDA plays an important role in insurance sector giving important guide lines to
various companies in the area of insurance. The IRDA's green signal to insurance
companies for investments in venture capital funds would provide a boost in growth
pertaining to the infrastructure segment. The insurance companies would be allowed
to invest about 5% of the total investment in the venture capital funds pertaining to
infrastructure based projects. The total aggregate of the assets under the life
insurance companies is Rs 699,375 crores. The proposed alterations in the
regulations pertaining to investments of the insurance companies were settled by the
Insurance Regulatory and Development Authority of India (IRDA), at the board
meeting on the 25th of March 2008. Several other alterations were also done with
the investment norms. The other important norm is the expansion of the sanctioned
investments category, which would also include the mortgaged securities and the
initial public offerings unlike previously when these two were not included. The
proposal would be submitted to the Insurance Regulatory and Development
Authority of India (IRDA) board for approval. The final draft was published in the
Gazette of the Central Government at the end of March 2008. The alterations would
help in developing the instruments of investment and provide flexibility for insurers.
The alterations would provide more margins pertaining to the investments in
certificates of deposit issued by the banks and term deposits.
At present the insurance companies may invest about 10% of its investment funds to
a particular sector. The Insurance Regulatory and Development Authority of India
(IRDA) constituted a working group in the year 2006 to probe the existing
investment regulations and provide review on the present statutory advices and the
trends of investments for insurance companies. According to the Insurance
Regulatory and Development Authority (IRDA), the private insurers had collected
premium income from new business of about Rs. 18,980 crore, in 2007.
1.9.ROLE OF INDIAN BANKS IN INSURANCE SECTOR:

Many Indian banks are planning to enter the insurance sector due to the huge growth
that is estimated to take place in this sector. Indian banks plan to foray into the
insurance sector by setting up their own insurance companies. The Indian insurance
sector collected a premium of about Rs. 75,000 crores in the segments of non- life
and life insurance, during the first nine months of 2007- 2008. Further, the business
of insurance in the country is expected to increase due to the growth in the
categories of semi- urban and rural insurance and is expected to be worth about US$
60 billion by 2010. The major Indian Banks that are planning to enter the insurance
sector of the country are Union Bank, Federal Bank, Allahabad Bank, Bank of India,
Karnataka Bank, Indian Overseas Bank and Bank of Maharashtra. Further, there are
a number of banks that are planning to set up their own companies for insurance
such as Bank of Baroda, Punjab National Bank, and Dena Bank. Indian banks are
planning to enter the insurance sector on their own, without partnering with
insurance companies due to several reasons. One important reason is that they
would get better dividends than the commission they would get by entering into
partnerships with other insurance majors. Moreover, this would help them to
diversify from the regular banking activity that they are involved in. The insurance
companies have been affected with the planning of Indian banks to foray into the
insurance sector of the country. This is due to the fact that the insurance companies
are now unable to find banks with whom they can enter into partnerships for the
distribution of their products.

1.10.ROLE OF PRIVATE INSURANCE COMPANIES IN INSURANCE


SECTOR:
Private sector also plays important role in this sector and tried to capture maximum
shares in this sector. Max New York Life Insurance Company is the leading private
life insurance company in India. Max New York Life Insurance Company Ltd.

launched 'lifeline' a health insurance product on March 2008, across India. Now, the
company can boast of offering complete health and life insurance products across 11
regions in India. This newly launched health insurance product of Max New York
Life Insurance Company offers three groups of heath insurance solutions. The
director marketing product management and corporate affairs of Max New York
Life Insurance said that these three distinct heath insurance products are meant to
cover eventualities like hospitalization, surgery and critical illness of the insured and
these plans have been structured with features like coverage for a wide range of
ailments, no claim discount on revised premium for a healthy life, a fixed premium
for a five-year term, free second opinion from the best health care institutions of
India on detection of illness. Further, it also has provision for a free telephonic
medical helpline across India. The hospitalization is covered by "Medicate Plan",
which is meant to provide a fixed amount of cash benefit on a day-to-day basis
during the entire period of hospitalization of the insured. The Medicate Plan
would also cover expenses for admission in ICU, lump sum benefits against an
unlimited number of surgeries and recuperation benefits. The second plan of the
newly launched health insurance of Max New York Life Insurance, is the "Wellness
Plan", which is a more attractive one and covers 'critical illness' like cancer,
Alzheimers, heart ailments, liver disease, deafness, permanent disability, etc. The
Wellness plan covers thirty eight critical illnesses, which is the highest number of
illness covered under one insurance plan in India by any insurance company. The
third health insurance policy of Max New York Life Insurance is a term plus health
protection plan known as "Safety Net". Max New York Life Insurance Company is
one of the fastest growing life insurance companies in India and is the first life
insurance company of India to be awarded with ISO 9001:2000 certification.

1.11.Players in Indian insurance industry Life insurers:


Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurance Corporation of India (LIC)


General insurers:
General Insurance Corporation of India (GIC) with effect from Dec'2000,
a National ReinsureGIC

had four

from Dec'2000, these

subsidiary companies,
subsidiaries

namely with

effect

have been de

linked from the parent company and made as independent insurancecompanies.


1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited,
3. National Insurance Company Limited4. United India Insurance Company
Limited.
Yr: 2000-2007
: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:

Life Insurers( insurance company)


1. Max New York Life Insurance Co. Ltd.
2. HDFC Standard Life Insurance Company Ltd.
3. ICICI Prudential Life Insurance Company Ltd.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
5. Birla Sun Life Insurance Company Ltd.
6. Tata AIG Life Insurance Company Ltd.
7. SBI Life Insurance Company Limited
8. ING Vysya Life Insurance Company Private Limited
9. Allianz Bajaj Life Insurance Company Ltd.
10.MetLife India Insurance Company Pvt. Ltd.
11.Reliance Life Insurance Company Ltd.
12.Shriram Life Insurance Company Ltd.
13.Sahara India Life Insurance Company Ltd.
14.Bharti AXA Life Insurance Company Ltd.
15.Aviva Life Insurance Company Ltd.

CONSUMER PERCEPTION ON LIFE


INSURANCE
2.1 INTRODUCTION
Perception is the process by which organisms interpret and organize sensation to produce a
meaningful experience of the world. Sensation usually refers to the immediate,
relatively unprocessed result of stimulation of sensory receptors in the eyes, ears,
nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience
of

the

world

and

typically involves further processing of sensory input. In practice, sensatio


n andperception are virtually impossible to separate, because they are part of one co
ntinuous process.Thus,

perception in humans describes the process whereby

sensory stimulation is translated into organized experience. That experience, or percept,


is

the

joint

product

of t he st i mul at i on and of t he pr oce ss i t se l f . Rel at i on s fou nd be t wee n


var i ou s ty pes of stimulation (e.g., light waves and sound waves) and t
heir associated percepts suggest inferences that can be made about the
properties of the perceptual process; theories of perceiving then can
be developed on the basis of these inferences. Because the perceptual process
is not itself publicor directly observable (except)to the perceiver himself, whose perc
epts are given directly in experience), the validity of perceptual theories can becheck
ed only indirectly.
Historically, systematic

thought about perceiving was

the province of philosophy.

Philosophical interest in perception stems largely from questions about the sources
and validity of what is called human knowledge (epistemology). Epistemologists ask whether
areal, physical world exists independently of human experience and, if so, how its properties
can be learned and how the truth or accuracy of that experience can be determined.
They also ask whether there are innate ideas or whether all experience originates through
contact with the physical world, mediated by the sense organs.

As a scientific enterprise, however,the investigation of perception has especial


lydeveloped as part of the larger discipline of psychology. For the most part,
psychology bypasses the questions about perceiving raised by philosophy in favors
of problems thatcan be handled by its special methods. The remnants of such
philosophical
questions,how ev er, do r e ma i n; r e se ar che rs a r e st i l l conce rn e d, for
ex a mpl e , wi t h t he r e l at i ve contributions of innate and learned factors to the
perceptual process. Such fundamental philosophical assertions as the existence of a
physical world, however are taken for granted among most scientific students of
perceiving. Typically, researchers in perception simply accept the apparent physical
world particularly as it is described in those branches of physics concerned with
electromagnetic energy, optics, and mechanics. The problems they consider relate to
the process whereby percepts are formed from the interaction of physical energy (for
example, light) with the perceiving organism. Of further interest is the degree of
correspondence between percepts and the physical objects to which they ordinarily relate.
In philosophy, psychology, and cognitive science, perception is the process of
attaining awareness or understanding of sensory information. The word "perception" comes
from

the

L a t i n wor ds per ce pt i o , p e r ci pi o, an d me ans "r e ce i vi ng , col l e ct i n


g , a c t i on

of t aki n g possession,

apprehension

with

the

mind or senses.

P e r cept i o n i s on e o f t h e o l dest fi e l d s i n psy chol og y. The ol dest


qua n t i t at i ve l aw i n psychology is the Weber-Fetcher law, which quantifies
the relationship between theintensity of physical stimuli and their perceptual
effects. The study of perception gave rise to the Gestalt school of psychology, with its
emphasis on holistic approach.
2.2 ABOUT CONSUMER PERCEPTION:
Consumer behavior studies the behavior of individual or a group of people.
The study of consumer behavior provides marketers to understand and

predict the future market behavior. In this paper, role of IRDA, role of
Indian banks, role of private insurance companies, function of insurance
company,

various

factors

influencing

consumer

behavior,

factors

influencing buying decision and model of consumer decisions making


process have been considered. Also, the types of insurance policy taken by
consumer, the total sum assured of life insurance, the total sum assured of
life insurance for the spouse, the share of public insurance in insurance
sector, share of LIC in life insurance in insurance sector and the reasons
for invested in life insurance have been studied. The survey was conducted
across 334 cities/towns in all the states and union territories. A sample of
1947 individuals has been selected by setting questionnaire. The online
response system has selfchecking and its validation system vetted the
quality and veracity of the responses.Indicus Analytics then cross-checked
and inputs with its databases on investors and their habits. The majorities
of the respondents were from the top five metros and 10 major cities and
had at least 30 participants. The profile of the target respondents is
typically matched. The target respondents are well educated, familiar with
English, spread over major urban centers having a higher socioeconomic
and income profile and spread across a range of occupations, professions
and different age groups.
2.3.INTRODUCTION:
Consumer behavior is the process where the individual decides what, when,
how and from whom to purchase goods and services. Consumer behavior
studies how individuals, groups and organization select, buy, use dispose
off goods, services, ideas or experiences to satisfy their needs and desire.
The study of consumer behavior enables marketers to understand and
predict consumer behavior in the market place in advance and it is return
for the payment of premium by the insured, the insurers pay the financial

losses suffered by the insured as a result of the occurrence of unforeseen


events. The Indian insurance market is characterized by the presence of
'young pensioners', as per an article in the 'Times of India'.

COMPANY PROFILE: HDFC STANDARD LIFE


3.1.OVERVIEW:
The company can take decision according to the suggestions and itwill provide
better experience to the students for their bright carrier. My project will provide
help in these matters which are thus:-Analyze the people perception about
HDFCSL.
To enhance the distribution channel in the selling of insurance policies.
To find out the competitive edge of the company over the competitors.
ABOUT HDFSLICHDFCSLIC stands for Housing Development Finance
corporation
standardlife insurance company. It is incorporated in 1977 as a public limitedcom
pany with the specialization in provision of housing finance toindividualscooper
ative societies and the corporate sector. One significant matter about the HDFC is
that it is first private sector retail housing finance company and it is listed on
both BSE and NSE.
Its market capitalization in June
2002.Standard life insurance is founded in 1825. Standard life wasreincorporated
as a mutual assurance company in 1925. Its largest mutual life insurance
company in Europe.
For the joint venture between HDFC and SLIC, the discussion commenced in
January 1995 and the agreement signed in October 1995.Further joint venture
agreement renewed in October 1998. In January 2000the life insurance project
teem

established

in

Mumbai.

At

last

the

companyofficially incorporated in 14th August 2000. It is the matter of greathapp


iness for HDFCSLIC is that it is the first private sector life insurance company to
be granted a certificate of registration in 23rd October, 2000.Today 75%
shareholding in the hand of HDFC and Standard life has 25%shareholding in this
joint venture.
3.2.COMPANY PROFILE:
Incorporated in Aug, 2000 HDFC Standard life is one of the leading private life
insurance companies in India. HDFC Standard Life is a joint venture between
HDFC- Indias housing finance company and Standard plc United Kingdoms
savings and investment Company. HDFC Ltd. holds 72.43% and Standard Life
(Mauritius Holding) Ltd. holds 26% of equity in the joint venture while the rest
is owned by others. When we talk about company profile then HDFC standard
life

insurance

company is targeting insurance sector. It is launching various type of insurance


plan and product which is enticing people to buy its plan. As a insurance
company it focus mainly in the recruitment of financial consultant and the whole
company

based

on

it

because

the

aim

of

company

toget business and sell lots number of policy and this work is done by

is

financial

consultant. HDFC Standard Life Vision and Values Vision of HDFCSL .The most
successful and admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set
the standards in the industry. In short, The most obvious choice for all For
retention

in

the

market

and

highest

market

share,

we

need

trustof our customer. The customer should trust on our policies, services,employs
and they should be friendly with us. It wants to live in the eye and heart of the
customer. It wants to give them the easiest deal so that they can be understood
the terms and policies. As we know that profit is the main aim of any business
but it think not only about his profit but also profit of the customer. It wants to be

the choice of all people on the basis of trust of customer, delivering high value to
the customer, and deliver Of best value of the money.

3.3.OFFICES IN INDIA:
---Extensive branch network reach to customers
Dedicated Email team for resolution of email requests/queries
SMS Services for customers On the Move through SMS key words
Web based services enhanced for customers and channel partners
Constant evaluation and capture of Voice of Customer through renowned
research agencies for experience at various touch points
Drastic Our exclusive Customer Contact Center for customer queries
COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE:
Corporate Governance is a process that aims to meet stakeholders aspirations and
societal expectations. It is not a discipline imposed by a Regulator, rather is a culture
that guides the Board, Management and Employees to function towards best interest
of Stakeholders.
At HDFCSL, Corporate Governance philosophy stems from the belief that corporate
governance is a key element in improving efficiency and growth as well as
enhancing investor confidence. Accordingly, the Corporate Governance philosophy
has been scripted as under: As a good corporate citizen, the Company is committed
to sound corporate practices based on its vision, values & principles in building
confidence of its various stakeholders, thereby paving the way for its long term
success and sustenance.

At the core of its corporate governance practice is the Board, which oversees how
the management serves and protects the long-term interests of all the stakeholders of
the Company. The Company believes that an active, well-informed and independent
Board is necessary to ensure the highest standards of corporate governance.
The Companys corporate governance practices are aimed at meeting the corporate
governance requirements as per the IRDA Corporate Governance Guidelines,
besides good practices either recommended by professional bodies or practised by
leading companies in India. .
The following Corporate Governance Policy has been adopted by the Board of
Directors to assist the Board in the exercise of its responsibilities. This Policy is
subject to future amendments or changes, as may be necessary, in the light of the
amendments in various regulations in force for governance requirements.
3.4.OUR VISION AND VALUES
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and Standard Life
plc, a Group Company of the Standard Life, UK. HDFC, as on December 31, 2008,
holds 72.26 per cent of the paid up equity in the joint venture.
Our Vision
'The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money,
and set the standards in the industry'. In short, 'The most obvious choice for all'.
Our Values
Values that define how we work:
Integrity Innovation Customer centric People Care Team work Joy and Simplicity

Besides the above (which provides an insight into the Corporate Structure of the
Company), the Committees appointed by the Board focus on specific areas and take
informed decisions within the framework of delegated authority, and make specific
recommendations to the Board on matters within their areas of purview. All
decisions and recommendations of the Committees are placed before the Board for
information or for approval.
HDFC Life Product Portfolio:
HDFC Standard Life has vast portfolio of retirement plans, children plans, term
plans, savings investment plans and health plans.
Retirement Plan: With rising inflation, its absolutely necessary to make provisions
for the future which makes retirement plan an important financial decision. Better
known as Pension plan, this plan takes care of financial needs after retirement by
investing a part of your savings for limited period. Pension plan provides steady
income after retirement and takes care of daily needs. The pension plans offered by
HDFC Life are Personal Pension Plan, Immediate Annuity and Pension Maximums.
Child Plan: Parenthood brings responsibilities and no one is better judge of that
than you. Child Plan is a plan specifically designed to take care of financial needs of
your child. Child plan provides with necessary funds that will take care of childs
education, marriage etc. By investing small portion of your savings you secure the
financial end of your child. Child plan of HDFC Life are called SL Youngster Super
II, SL Youngster Super Premium and Childrens Plan.
Term Plan: A risk plan which provides comprehensive cover for your family in the
unfortunate event of untimely demise. A term life insurance plan provides good
cover at relatively nominal cost and has no survival benefits. HDFC Life term plans
are Term Assurance Plan, Premium Guarantee Plan, Loan Cover Term Assurance
Plan and Home Loan Protection Plan.

Investment Plan: Popularly known as ULIP, an investment plan invests part of


your savings in equity or debt market as per your preference. The objective of
investment plan is to give you returns which easily beat the rising costs since the
usual returns in a bank are extremely low. ULIPs offered by HDFC Life are
Endowment Assurance Plan, SL Crest, SL ProGrowth Super II, SL ProGrowth
Maximize, SL New Money Back Plan and Single Premium Whole of Life Insurance
Plan.
Health Plan: Slightly different from health insurance, health plan provides cover
for surgery costs, critical illness. A lump sum is paid irrespective of actual hospital
bill.

Critical

Care

Plan

and

SurgiCare

Plan

are

HDFC

health

plan.

Distribution Network:
HDFC has wide distribution network with 568 branches and has over 200000
Financial Consultants. HDFC Standard Life also has ban assurance partners- HDFC
Bank, Sara swat Bank and Indian Bank. HDFC products like HDFC SL Crest,
HDFC SL Youngster Super II, HDFC SL ProGrowth Super II, HDFC SL Youngster
Super Premium and HDFC SL ProGrowth Maximize are also available online.
Financial Information:
The total premium earned for the half year ended September 30, 2010 was Rs
35,909 million. The profit after tax for the same period is Rs 646 million. There
have been 1,298 death claims during the period out of which 1,045 claims were
settled and 45 claims were rejected.
Marketing Campaigns:
HDFC Standard Life Insurance has taken dynamic steps as part of changing brand
identity. HDFC Standard life in order to connect to younger target market made a
series of changes. HDFC Standard life dropped the standard word from their

name to make it HDFC Life. HDFC Life also changed their logo depicting more
energy, exuberance, vibrancy, dependability in their brand. HDFC Life also pushed
their tagline sar utha ke jiyo with television commercial, radio ads, print and other
communication mediums. The tagline presents the idea of living life with dignity
which can be achieved through being self dependent and insurance is part and parcel
of the same.

Distinctions:
HDFC Standard Life has been adjudged one of the Best Companies to Work
for in India in 2010. The company participated in the Great Places to Work
study for the first time and ranked first in the insurance category.
HDFC Standard Lifes YoungStar Super has been voted Product of the Year
2010 in the 'Insurance' category by more than 30,000 consumers nationwide
across 36 markets. The consumer study on product innovation in India was
conducted by A C Nielsen, the leading global research firm.
HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award,
for ATLAS (Agency Training Licensing and Servicing System). Additionally,
the company has received the CIO 100 Security Award 2009 for pioneering
LANDesk Management and Security Suite security implementation and
taking its security to a higher level of technological excellence.
HDFC Standard Life has received the Diamond EDGE Award 2009 for its
mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving
Growth and Excellence (using IT) is an initiative by the ,Network Computing
magazine to identify, recognize, and honor end-user companies in India that
have demonstrated the best use of technology to solve a business problem,

improve business competitiveness, and deliver quantifiable ROI to


stakeholders.

3.5.ASSOCIATE COMPANIES:
1. HDFC Limited
2. HDFC Bank
3. HDFC Asset Management Co. Limited
4. HDFC Securities Limited
5. HDFC Standard Life Insurance Company
6. Intel net Global
7. CIBIL Credit Information Bureau Investigation Ltd
8. HDFC Chubb General Insurance
OTHER COMPANIES:
HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Property Ventures Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Investments Ltd.
HDFC Holdings Ltd.

They are:
Maturity Benefit Plan
Should the life insured die during the term of the plan, the future premiums are
waived and the policy continues till maturity. On maturity, the beneficiary will
receive the sum assured and the accumulated bonuses. Bonuses under this plan are
of reversionary nature and are on sum assured (non-compounded).
Accelerated Benefit Plan
If the life insured dies the beneficiary will receive the sum assured and the
accumulated bonuses immediately, and the policy will terminate. Should the life
assured survive up to maturity, the sum assured and the bonuses will be paid.
Double Benefit Plan
Under this plan, on the death of the life insured during the premium paying term, the
beneficiary will receive the sum assured, and the future premiums are waived. On
maturity, the beneficiary will receive an additional sum assured plus bonuses.
HDFC Endowment Assurance Plan:
As a judicious family man, your priority is to secure the well-being of those who
depend on you. Not just for today, but also for the long term. With our HDFC

Endowment Assurance Plan, you can start building your savings today and ensure
that your family remains financially independent, even when you are not around.
This 'With Profits' plan is designed to secure your family's future by giving your
family a guaranteed lump sum on maturity or in case of your unfortunate demise,
early into the policy term.

Advantages:
Ideal way to secure your long-term financial goals and your family's financial
independence by giving a lump sum payment (basic Sum Assured plus any
Bonus Additions) on survival up to Maturity date
Provides invaluable protection to your family by way of lump sum payment
in case of unfortunate demise within policy term
Gives you the flexibility to customise your policy according to your needs by
adding any one of the 3benefit options available
You can choose to pay your premium as either Annually, Half-Yearly or
Quarterly depending on your convenience. You also have a range of
convenient auto premium payment options
Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961

HDFC Life Smart Woman Plan:


HDFC Life Smart Woman Plan, a unique insurance cum investment plan designed
specifically for women. This plan ensures that your savings continue, while you
adjust to the new stages of your life, and you remain confident to live life your way.
The plan comes with comprehensive coverage options where we will cover you
against pregnancy complications and congenital conditions or for malignant femalespecific cancers. During these critical moments, we assure you the peace of mind by
waiving and funding your premiums so that as you overcome and adjust to your life
your investments continue to grow.
FEATURES:

Advantages:
Choose plan options as per your needs i.e. Classic or Premier or Elite

Uninterrupted savings with Waiver & funding of premiums for next 3 years
on the following events
o Pregnancy complications or birth of child with congenital disorder
o Diagnosis of malignant cancer of female organs
o Death of spouse (Only with Elite option)
Additional periodic cash payouts under Premier & Elite Options

3.8.ORGANIZATION STRUCTURE:

COMPETITORS:

4.1.RESEARCH METHODOLOGY:
Data collection:
For data collection, I developed a well defined questionnaire as a research
instrument ,consisting questions aimed to measure the consumer perception about

insurance company in India, their views and comments about Companys structure. I
conducted unstructured interviews (sample size) of 100 persons of different age
group in time duration of three days. All the data generated was primary data that
was generated from different peoples of age group under NCR region.
Primary data:
Individual respondents, Chartered
Accountants,TaxConsultants, Insurance Agents, Auto loan providers were personall
y visited andinterviewed. They were the main source of Primary data. The method
of collection of primary data was direct personal interview through a structured
questionnaire.
Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis
of organizational file, official records, newspapers, magazines, management books,
preserved information in the companys database and website of the company.

4.2.RESEARCH OBJECTIVES:
To know about the types of insurance policy taken by consumer
To know about the total sum assured of life insurance
To know about the total sum assured of life insurance for the spouse
To know about the share of public insurance in insurance sector
To know about the share of LIC in life insurance in insurance sector

To know about the reasons for investment in life insurance


The main aim of the research was to explore consumers attitudes to allowing
insurance companies to access results of genetic tests for the purpose of risk
assessment and premium setting. More specifically, the objectives of the research
were:
Proper understanding and analysis of life insurance industry.
To

know

about

brand

awareness

of

HDFC

Life

Insurance

and

customers preference HDFC Life Insurance.


Conduct market survey on a sample selected from the entire population and derive
opinion on that research.
To help company in establishing a network of Life Insurance Advisors and
to promote the benefits those are provided by HDFC Life Insurance.
To explore consumers understanding of life insurance companies use of different
factors in assessing risk.
To understand consumers attitudes to life insurance companies use of different
factors in assessing risk.
These factors included sex, age, smoking status, current and past health ,family
history of cancer or heart disease, and genetic make-up.
To determine if the use of genetic test results by life insurance companies would
deter consumers from having such tests.
To explore consumer attitudes to disclosure of information to insurance companies.
Attitudes to voluntary and involuntary disclosure.
To gain an understanding of why consumers hold particular attitudes.

4.3.Research design:
Research was initiated by examining the secondary data to gain insight into the
problem .The primary data is evaluated on the basis of the analysis of the secondary
data.
Developing the research plan:
The data for this research project has been collected through self administration.
Due to time limitation and other constraints direct personal interview method is
used. A structured questionnaire was framed as it is less time consuming, generates
specific and to the point information, easier to tabulate and interpret. Moreover
respondents prefer to give direct answers. In questionnaires open ended and closed
ended, both the types of questions has been used.
Sampling plan
Since it is not possible to study whole population, it is necessary to obtain
representative samples from the population to understand its characteristics.
Sampling Units:
Individual respondents for studying Customer Buying Behavior and Market
Segmentation, selected randomly from different areas in NCR, like various shopping
malls and markets ,Government Offices. Chartered Accountants, Tax Consultants,
Lawyers, Business Men, Professionals and House Wives of for recruitment of Life
Insurance Advisors
Sample Technique:
Random Sampling
Research Instrument:
Structured Questionnaire

Contact Method:
Personal Interview
Sample size
Study of Customer Buying Behavior and Market Segmentation: 100Respondents
Data collection instrument development
The mode of collection of data is based on Survey Method and Field Activity.
Primary data collection is based on personal interview. I have prepared the
questionnaire according to the necessity of the data to be collected.
4.4.Research limitations
The research is confined to certain parts of NCR and does not necessarily show
a pattern applicable to all of country.
Some respondents were reluctant to divulge personal information which can affect
the validity of all responses. In a rapidly changing industry, analysis on one day or
in one segment can change very quickly. The environmental changes are vital to be
considered in order to assimilate the findings.

Q1. Education qualification ?

Answe
r
1.

10th or
below

Count

Percent
1

1.00%

6.00%

Gradua
te

58

58.00%

Post
4. Gradua
te

29

29.00%

6.00%

100

100%

2. 12th
3.

5. Other
Total

Mean : Confidence Interval @ 95% Standard Deviation :


3.330 : [3.188 - 3.472]

0.726

Standa
rd Error
:

0.073

Interpretation: From the analysis 1% respondent are 10th pass and


6% are 12th pass and 58% graduate and 29% post graduate and 6%
others

Q2. Your residence is

Answe
r

Count

Percent

1. Owned

40

40.00%

2. Rented

41

41.00%

Compa
ny
3.
provide
d

19

19.00%

100

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
1.790 : [1.644 - 1.936]

0.743

Standa
rd Error
:
0.074

Interpretation: From the analysis 40% respondents are owned and


41% are rented and 19% are company provided

Q3. Your occupation

Answe
r

Count

Percent

1. Salary

56

56.00%

Self
2. employ
ed

35

35.00%

3. Retired

9.00%

4. Student

0.00%

5. NRI

0.00%

100

100%

Total

Mean : Confidence Interval @ 95% Standard Deviation :


1.530 : [1.401 - 1.659]

0.658

Standa
rd Error

:
0.066

Interpretation: : From the analysis 56% respondents are salary and 35% are
self employed and 9% are retired and 0% are student and 0% NRI

Q4. If salaried employed with

Answer

Count

Percent

1.

Private
limited

32

32.00%

2.

Partnershi
p

33

33.00%

3.

Public
limited

11

11.00%

4.

Public
sector

10

10.00%

5.

Governme
nt

12

12.00%

6.

Multinatio
nal

2.00%

100

100%

Total

Mean :
2.430

Confidence Interval @ 95%


Standard Deviation :
: [2.148 - 2.712]

1.437

Standa
rd Error
:
0.144

Interpretation: : From the analysis 32% respondents are private limited and
33% are partnership and 11% are public limited and 1% are public sector and
12% are government and 2% are multinational

Q5. What percentage of you salary do usually save .

Answ
er

Count

Percent

Less
1. than
15%

39

39.00%

2.

1520%

48

48.00%

3.

2025%

9.00%

4.00%

4. More
than

25%
Total

100

100%

Mean :
Confidence Interval @ 95% :
1.78
Standard Deviation :
[1.628 - 1.932]
0

0.773

Standa
rd Error
:
0.077

Interpretation:: From the analysis 39% are less than 15% and 48% are 15-20% and
9% are 20-25% and 4% are 25% more than.

Q6. Are you assessed to tax?

Answ
er

Count

Percent

1. Yes

85

85.00%

2. No

15

15.00%

100

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
1.150 : [1.080 - 1.220]

0.359

Standa
rd Error
:
0.036

Interpretation: From the above analysis 85% are yes and 15% are no(85%
people are covered assessed to tax and the 15% are not be covered)

Q7. Do you think insurance in important ?

Answ
er

Count

Percent

1. Yes

92

92.93%

2. No

7.07%

99

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
1.071 : [1.020 - 1.121]

0.258

Standa
rd Error
:
0.026

Interpretation: : From the above analysis 93% people says insurance is


important and only 7% people are says to insurance is not important Q8.

What scheme of insurance policy have taken ?

Answer
Life
1. protecti
on plain

Count

Percent

39

39.00%

2.

Educatio
n plain

19

19.00%

3.

retireme
nt plain

10

10.00%

4.

Health
plain

20

20.00%

Money
5. growth
plain

12

12.00%

100

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
2.470 : [2.181 - 2.759]

1.473

Standa
rd Error
:
0.147

Interpretation: From the above result we find it 39% are life protection plain
and 19% are education plain and 1% are retirement plain and 2% health plain
and 12% are money growth plain .

Q9. Do you have insurance life policy ?

Answ
er

Count

Percent

1. Yes

95

95.00%

2. No

5.00%

100

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
1.050 : [1.007 - 1.093]

0.219

Standa
rd Error
:
0.022

Interpretation: From the above result we find that 100 respondent and 95% are
taken insurance life policy and 5% are no .

Q10. what are the reason you have opted to take


insurance

Answer
1. Profit
2.

Investm
ent

3.

Tax
saving

4.

Insuranc
e cover

Any
other
5.
please
specify
Total

Count

Percent

32

32.00%

31

31.00%

8.00%

24

24.00%

5.00%

100

100%

Mean : Confidence Interval @ 95%


Standard Deviation :
2.390 : [2.136 - 2.644]

1.294

Standa
rd Error
:
0.129

Interpretation: From the above result we find that 100 respondent ,32% are
profit and 31% people are taken insurance propos investment and 8% are tax
saving and 24% are insurance cover and 5% are any other ..

Q11. Types of insurance

Answer

Count

Percent

Life
1. insuranc
e

63

63.00%

Vehicle
2. insuranc
e

15

15.00%

Health
3. insuranc
e

18

18.00%

Agricultu
re
4.
insuranc
e

4.00%

100

100%

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
1.630 : [1.450 - 1.810]

0.917

Standa
rd Error
:
0.092

Interpretation: From the above result we find that 100 respondents , 63% are
taken life insurance and 15% are vehicle insurance and 18% are health
insurance and 4% people are taken agriculture insurance

Q12. Rate your overall satisfaction with insurance


policy of XYZ life insurance

Answer

Count

Percent

Highly
1. satisfact
ory

29

29.29%

Satisfact
ory

45

45.45%

3. Average

21

21.21%

Dis4. satisfact
ory

3.03%

Highly
dis
5.
satisfact
ory

1.01%

99

100%

2.

Total

Mean : Confidence Interval @ 95%


Standard Deviation :
2.010 : [1.842 - 2.178]

0.851

Standa
rd Error
:
0.086

Interpretation: From the result we find that 100 respondents , 29% are highly
satisfaction and 45% are satisfaction and 21% are average and 3% dissatisfaction and 1% are highly dis-satisfaction Q13.

Reason for
investing in insurance plans of XYZ life insurance

Answer
1. Returns

Count

Percent

38

38.00%

Schemes
are good

33

33.00%

Recommen
ded by
3.
family and
friends

18

18.00%

Needs to
save tax

11

11.00%

100

100%

2.

4.

Total
Mean :
2.020

Confidence Interval @
Standard Deviation :
95% : [1.823 - 2.217]

1.005

Standa
rd Error
:
0.100

Interpretation: From the above result we find that 100 respondents , 38% are returns and 33% are scheme are
good and 18% are recommendation by family and friends and 11% are needs are save tax

5.1.SWOT ANALYSIS OF HDFC STANDARD LIFE INSURANCE:


Analysis of the industrys environment:
HDFC and Standard Life first came together for a possible joint venture, to enter the
life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quickly
formed. In October 1995, the companies signed a 3-year joint venture agreement.

5.1.1.STRENGTH:
1. Domestic image of HDFC supported by Prudentials international image is
strength of the company.
2. Strong and well spread network of qualified intermediaries and sales person.
3. Strong capital and reserve base.
4. The company provides customer service of the highest order.
5. Huge basket of product range which are suitable to all age and income groups.
6. Large pool of technically skilled manpower with in depth knowledge and
understanding of the market.
7. The company also provides innovative products to cater to different needs of
different customers.

5.1.2.WEAKNESS:
1. Heavy management expenses and administrative costs.
2. Low customer confidence on the private players.
3. Vertical hierarchical reporting structure with many designations and cadres
leading to power politics at all levels without any exception.
4. Poor retention percentage of tied up agents.

5.1.3.OPPORTUNITIES:
1. Insurable population According to ING only 10% of the population is insured,
which represents around 30% of the insurable population. This suggests more than
300m people, with the potential to buy insurance, remain uninsured.

2. There will be inflow of managerial and financial expertise from the worlds
leading insurance markets. Further the burden of educating consumers will also be
shared among many players.
3. International companies will help in building world class expertise in local market
by introducing the best global practices.
4. Insurance liberalization in India is expected to result in a wider choice of major
commercial insurance covers, such as fire, export credit.
5.1.4.THREATS :
1. Legislation could impact.
2. Great risk involved
3. Very high competition prevailing in the industry.
4. Vulnerable to reactive attack by major competitors.
5. Lack of infrastructure in rural areas could constrain investment.
6. High volume/low cost market is intensely competitive.

REASONS FOR INVESTING IN LIFE INSURANCE:


The figure explains about the reason for investing in life Insurance. About 35.70 %
respondents have invested in life insurance due to higher risk coverage and 32.43%
respondents have invested in life insurance for tax saving.

Explains about the reasons for investing in life Insurance. About 35.70 %
respondents have invested in life insurance due to higher risk coverage, 32.43%
respondents have invested in life insurance for tax saving and 19.65 % respondents
have invested in life insurance due to easy way to invest.

RESULTS & FINDINGS


I have presented below the project findings and analysis, addressed to the
respondents to gauge the attitude, perception and consumer behavior of the people
toward life insurance

From the analysis this survey 39% people are saved the salary are less than
15% and 48% people are 15%-20% saved and 9% are saved 20%-25% and
4% saved 25% or more .
85% people are under cover the assessed and only 15% people are not cover .
93% people are says the insurance Is important and 7% people are asked
insurance is not important .
This survey is cleared by 95% people are taken the insurance policy (life
insurance ,vehicles insurance , fire insurance , theft insurance and health
insurance etc) and only 5% people are asked no.

Conclusion

All the insurance company must advertise more in the market because not all
people know more about life Insurance policy.

Most number of people wants Guaranteed Returns so company must focus on


this for the customer investment.

Make insurance policy which can buy any one so we can insured them
through this type of life insurance policy.

BIBLIOGRAPHY
BOOKS:

1) KOTHARI C.R., Research Methodology tools and techniques( New Age


International
Publishers, 2nd Edition, 2016 )
2) Information Memorandum

WEBSITES:
www.lic.in
www.hdfc.in

www.wikipidia.com

Annexure
Dear Sir/Madam;
Name: ..
Gender:

Contact No/Email id ;

I am the student of (Galgotias University) department of finance of commerce studies, (Anoop


kumar ) presently doing a project on INSURANCE INDUSRTY IN INDIA I request you to
kindly fill the questionnaire below and assure you that the data generated be kept confidential .
1. Educational qualification
10th

12TH

Post graduate

Others

Graduate

2. Your residence is
Owned

Rented

Company provided

3. Your occupation
Salary

Self employed

Student

NRI

Retired

4. If salaried employed with


Private limited

Partnership

Public limited

Public sector

Government

Multinational

5. What percentage of you salary do you usually save ?


Less than 15%

15-20%

20-25%

More than 25%


6. Are you assessed to tax?
Yes

No

7. DO you think insurance is important ?


Yes

No

8. What scheme of insurance policy have you taken?


Life protection plan

Education plan

Health plan

Money growth plan

Retirement plan

Any other specify__________________________


9. Do you have insurance life policy?
Yes

No

10. What are the reason you have opted to take insurance ?
Profit

Investment

Insurance cover

Any other please specify

Tax saving

11. Types of insurance


Life insurance
Agriculture insurance

Vehicle insurance

Health insurance

12. Rate your overall satisfaction with insurance policy of XYZ life insurance .
Highly satisfactory

Satisfactory

Average

Dissatisfactory

Highly dissatisfactory

13. Reason for investing in insurance plans of XYZ life insurance .


Returns
Needs to save tax

Schemes are good

Recommended by family and friends