A MINOR PROJECT REPORT

ON
COMPARATIVE ANALYSIS OF UNITY LINK PRODUCT
BETWEEN HDFC-SLIC AND ICICI
SUBMITTED IN PARTIAL FULFILMENT FOR THE
DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
2014-17

Submitted To:
Ms. Parul Raj
(Associate Professor)

Submitted By:
Abhishek Gupta
BBA IInd Year
Roll No. 04714001714

JAGAN INSTITUTE OF MANAGEMENT STUDIES

Affiflated to Guru Gobind Singh Indraprastha University

CERTIFICATE

This is to certify that Abhishek Gupta student of Jagan Institute of Management Studies,
Sector-5, Rohini, Delhi has worked under my supervision and guidance on Comparative
Analysis of Unity link product between HDFC-SLIC &ICICI " submitted in partial
fulfilment for the award of degree in Bachelors of Business Administration, of Guru
Gobind Singh Indraprastha University, Delhi. The matter embodied in this report is
authentic and same is recommended for evaluation. I wish him luck in his future
endeavours.

Ms. Parul Raj

(Associate Professor)

ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual rather it is an amalgamation of
the efforts, ideas and co-operation of a number of entities. I would like to thank GURU
GOBIND SINGH INDRAPRASTHA UNIVERSITY for giving an opportunity to work
on a valuable project. I am thankful to our Faculty Ms. Parul Raj, for motivating me to
complete this project with complete focus and attention. I wish to express my heartfelt
gratitude to the all the people who have played a crucial role in the research for this
project, without their active cooperation this project could not have been completed
within the specified time limit.

Abhishek Gupta
BBA IInd
year

PREFACE
3

Risk and uncertainties are part of lifes great adventure; Accidents, Illness, Theft
& Natural Calamities they all are pillars of this world. To overcome these risks and
mishaps this project describes the policies and schemes of HDFC SLIC and ICICI Pru
Life Insurance Company. The way these companies provide different benefits to the
policyholder. Insurance is Cooperative venture where risk and uncertainties are shared by
many. Now days a lot is being done to create awareness among the Insuring Public about
the Importance of Insurance in life. In this direction IRDA has planned to create
awareness through Electronic and Print media.
A study of Life Insurance describes the meaning of various policies, comparison and
analysis and changing market scenario.

TABLE OF CONTENT
S.NO.

TOPIC

PAGE NO.

INTRODUCTION
1.1 INTRODUCTION
1.2 BENEFITS OF LIFE INSURANCE
1.3 WORKING OF LIFE INSURANCE
1.4 INSURANCE REGULATION
1.5 INSAURANCE REFORMS
1.6 COMPANY PROFILE
RESEARCH METHODOLOGY
2.1 RESEARCH DESIGN
2.2RESEARCH METHODOLOGY
ANALYSIS AND INTERPRETATION
FINDINGS AND CONCLUSION
SUGGESTIONS
BIBLIOGRAPHY & QUESTIONNAIRE
6.1 BIBLIOGRAPHY
6.2 QUESTIONNAIRE

1-24
1-3
4-5
6-6
7-9
10-11
12-24
25-30
25-26
26-30
31-39
40-42
43-44
45-48
46
47-48

3
4
5
6

CHAPTER 1: INTRODUCTION

INTRODUCTION
6

Life Insurance: Definition

Life Insurance could be defined as a policy that will pay a specified sum to
beneficiaries upon the death of the insured. It is an agreement that guarantees the
payment of a stated amount of monetary benefits upon the death of the insured. Life
Insurance could be said as protection against the death of the insured in the form of
payment to a designated beneficiary, typically a family member or business
It is basically risk insurance intended as protection against the financial
consequences of the death of the insured person which takes the form of payment of a
previously agreed lump sum or pension to a beneficiary, if the insured person dies during
the term of insurance. In the case of pure life insurance, without any endowment
insurance component, no payments are due if the insured person survives the term of
insurance.
In big terms Life Insurance is a contract agreement between the certificate holder
and the insurance company, providing a specified sum to beneficiaries upon the death of
the insured. It is a coverage that pays out a set amount of money to specified beneficiaries
upon the death of the individual who is insured. It is a policy that will pay a specified
sum to beneficiaries upon the death of the insured. There are many types of life
insurance, including whole life, term life, universal life, etc. It is an insurance relating to
a risk depending on human life. This includes contracts providing payment on the insured
person's death, endowments providing payment either on survival to a specified date or
on earlier death and annuities which are paid throughout the annuitant's lifetime but cease
on death.
According to an article on site life-line.org Life insurance is the foundation of a
sound financial plan. It provides financial security for your family by protecting your
financial resources, such as your present and future income, against the uncertainties of
life.
More specifically, life insurance provides cash to the family after death. This cash
(the death benefit) replaces the income one would have provided and can meet many
important financial needs. It can help pay the mortgage, run the household, send kids to
college, and ensure that dependents are not burdened with debt. The proceeds from a life
7

insurance policy could mean that the family won't have to sell assets to pay outstanding
bills or taxes. And also that there is no federal income tax on life insurance benefits.
Most people with dependents need life insurance. While there's no substitute for
evaluating specific situation, one rule of thumb is to buy life insurance equivalent to five
to ten times ones annual gross income. To determine how much, if any, life insurance one
needs, then start by gathering all personal financial information and estimating what the
family will need after one is gone, including ongoing expenses (such as day care, tuition,
or retirement) and immediate expenses at the time of death (like medical bills, burial
costs, and estate taxes). The family also may need funds to help them readjust: perhaps to
finance a move, or pay expenses while job hunting. Choosing a life insurance product is
an important decision, but it can be complicated. As with any major purchase, it is
important that one should understand his or her family's needs.

BENEFITS OF LIFE INSURANCE

1. Superior to Any Other Savings Plan:

Unlike any other saving plan, a life insurance policy affords full protection against
risk of death. In the event of death of a policyholder, the insurance company makes
available the full sum assured to the policyholders near and dear ones. In comparison,
any other saving plan would amount to the total saving accumulated till date. If the death
occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the
potential financial loss to the family of the policyholder is sizable.
2. Encourages and Forces Thrift:
A savings deposit can be easily withdrawn. The payment of life insurance
premiums, however, is considered sacrosanct and is viewed with the same seriousness as
the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about
compulsory savings.

3. Easy Settlement and Protection against Creditors:

A life insurance policy is the only financial instrument the proceeds of which can
be protected against the claims of a creditor of the assured by effecting a valid assignment
of the policy.
4. Administering the Legacy for Beneficiaries:
Speculative or unwise expenses quickly cause the proceeds to be squandered.
Several policies have foreseen this possibility and provide for payments over a period of
years or in a combination of installments and lump sum amounts.
5. Ready Marketability and Suitability for Quick Borrowing:
A life insurance policy can, after a certain time period (generally three years), be
surrender for a cash value. The policy is also acceptable as a security for a commercial
loan, for example, a student loan. It is particularly advisable for housing loans when an

acceptable LIC policy may also cause the lending institution to give loan at lower interest
rates.
6. Disability Benefits:
Death is only the hazard that is insured; many policies also include disability
benefits. Typically, these provide for waiver of future premiums and payments of
monthly installments spread over certain time period.
7. Accidental Death Benefits:
Many policies can also provide for an extra sum to be paid (typically equal to the
sum assured) if death occurs as a result of accident.
8. Tax Relief:
Under the Indian Income Tax Act, the following tax relief is available:
(a) 20% of the premium paid can be deducted from your total income tax liability.
(b) 100% of the premium paid is deductible from your total taxable income. When
these benefits are factored in, it is found that most policies offer returns that are
comparable/or even better than other saving modes such as PPF, NSC etc. Moreover, the
cost of insurance is a very negligible.

10

WORKING OF INSURANCE BUSINESS

Insurance companies receive premium from a large number of people buying
insurance. The more customers an insurer has, the lower the premiums can be, and the
less likely that insurer is to take a loss that wipes everyone out.
Insurance is fundamental to every aspect of modern life and commerce.

THE IMPORTANT FEATURES OF INSURANCE ARE:

State insurance departments regulate the type of investments companies are

permitted to make;

Investment profiles of companies differ depending on what type of insurance

they underwrite;

Each state enforces laws to protect consumers against unfair discrimination in

the provision of insurance;

Consumers who do not qualify for property insurance in the private market
may obtain it through insurance industry operated plans;

The insurance industry does not benefit from federal deposit insurance. Insurance
companies pay for insolvencies in the industry through a system of state Guaranty
Funds.

11

INSURANCE REGULATION & DEVELOPMENT BILL

On Oct. 21st, 1999 the govt.Finally offered IRDA bill for the consideration of the
new parliament. The new bill knows called insurance Regulatory Authority Bill 1999.
Bills to provide for establishment of an authority to protect the interest of holders of
insurance polices and to regulate promote and insure orderly growth of the industry.

IRDA
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the composition
of Authority.
The Authority is a ten-member team consisting of
(a)

aChairman;

(b)

fivewhole-timemembers;

(c)

fourpart-timemembers,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
(1) Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include, (a) Issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration;

12

(b)

Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance;

(c)

Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d)

Specifying the code of conduct for surveyors and loss assessors;

(e)

Promoting efficiency in the conduct of insurance business;

(f)

Promoting and regulating professional organizations connected with the

insurance and re-insurance business;

(g)

Levying fees and other charges for carrying out the purposes of this Act;

(h)

Calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;

(i)

Control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so
controlled and regulated by the Tariff Advisory Committee under section 64U
of the Insurance Act, 1938 (4 of 1938);

(j)

Specifying the form and manner in which books of account shall be

maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries;

(k)

Regulating investment of funds by insurance companies;

(l)

Regulating maintenance of margin of solvency;

(m)

Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

13

(n)

Supervising the functioning of the Tariff Advisory Committee;

(o)

Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations referred to in
clause (f);

(p)

Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector; and

(q)

Exercising such other powers as may be prescribed.

14

INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar
reforms In 1999, the committee submitted the report and some of the key
recommendations included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate

ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only one State Level Life Insurance Company should be allowed to operate in each
state

15

iii) Regulatory Body

The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.

iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time)

v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerization of operations and updating of technology to be carried out in the
insurance industry

16

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.),
India's leading housing finance institution and a Group Company of the Standard Life,
UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity in the joint venture.
Our key strengths
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and efficiently.
Range of Solutions

We have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.
Track Record so far

Our gross premium income, for the year ending March 31, 2007 stood at Rs. 2, 856
crores and new business premium income at Rs. 1,624 crores.
The company has covered over 8, 77,000 lives year ending March 31, 200
Our Parentage
HDFC Limited.

17

 HDFC is Indias leading housing finance institution and has helped build more
than 23, 00, 000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
Presented the Dream Home award for the best housing finance provider in 2004
at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsidiaries)
The Standard Life group has been looking after the financial needs of customers
for over 180 years
It currently has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care needs
Its investment manager currently administers 125 billion in assets
It is a leading pensions provider in the UK, and is rated by Standard & Poor's as
'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at
the Money Marketing Awards, and it was voted a 5 star life and pensions
provider at the Financial Adviser Service Awards for the last 10 years running.
The '5 Star'

accolade has also been awarded to Standard Life Investments for the

18

last 10 years,
Life Bank was

and to Standard Life Bank since its inception in 1998. Standard

awarded the 'Best

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'.
'The most obvious choice for all'.
Our Values
Values that we observe while we work:
Integrity
Innovation
Customer centric
People Care One for all and all for one
Team work
Joy and Simplicity

Accolades and Recognition

Rated by 'Business world' as 'India's Most Respected Private Life Insurance
Company' in 2004
Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias
number 1 personal finance magazine

19

UNIT LINKED YOUNG STAR PLAN

The HDFC Unit Linked Young Star Plan gives you:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investment.
Valuable protection in case of the insured parents unfortunate demise.
Very flexible benefit combinations and payment options.
Flexible additional benefit options such as critical illness cover.
4 easy steps to your own plan
Step 1 Choose the premium you wish to invest.
Step 2 Choose the amount of protection (Sum assured) you desire.
Step 3 Choose the additional benefit options you desire.
Step 4 Choose the investment fund or funds you desire.

Step 1: Choose your regular premium

This is the premium you will continue to pay each year of the policy.
The minimum regular premium is Rs.10,000 per year. You can pay quarterly, half yearly
or annually.

20

Step 2: Choose your level of protection

You can choose any amount of Sum Assured with:

A minimum of 5 times your chosen regular premium.

A maximum of 40 times your chosen regular premium.

You can reduce but not increase the sum assured.

Step 3: Choose additional plan benefits
In addition to maturity benefit, you can choose from these benefit options.

Life Option- Death Benefit

Life & Health Option- Death Benefit + Critical Illness Benefit

Step 4: Choose your investment funds.

Choosing your investment option is important. We have 6 funds that give you:
The potential for higher but more variable returns over the term of your policy; or

More stable returns with lower long-term potential.

Your investment will buy units in any of 6 funds designed to meet your risk approach. All
units in a particular fund are identical.

You can choose from all or any of the following 6 funds.

Fund

Details

Asset Class
Bank
Govt.

Equit

Risk

deposits &

Securities

&

Money

& Bonds

Market
Liquid

Extremely low capital

100%

Return
Rating

Fund Composition
---

Low

21

Fund
Secure

risk.
More capital stability

--

100%

--

Low

Fund
Defensive

than equity funds.

*Access to better long-

--

70% to

15%

Moder

Fund

term returns through

85%

to

ate

equities.

30%

*Significant bond
exposure keeps risk
Balanced

down.
*Increased equity

Managed

exposure gives better

Fund

long-term return.

--

40% to

30% to

Very

70%

60%

high

--

100%

Very

*Bond exposure
Growth

provides some stability.

*For those who wish to

Fund

maximize their returns.

--

high

*100% investment
insurance high Indian
equities.

Eligibility
The age and term limits for the insured parent for taking out a Unit Linked Young Star
Plan are as shown below.

Benefit Options

Life Option
Life & Health

Term Period (Yrs.)

Age at Entry

Maximum Age at

(Yrs.)

Maturity (Yrs.)

Min.

Max.

Min.

Max.

10

25

18

60

75

10

25

18

55

65

22

Option

Beneficiaries
The beneficiary (your child) is the sole person to receive the benefit under the policy.
Where the beneficiary is less than 18 years of age the benefit will be paid to the
Appointee.

Charges Applicable under the Policy

The charges under the policy are deducted to provide for the benefits and the
administration provided by the company.
Premium Allocation Charge:
This is a premium-based charge. After deducting this charge from your premiums, the
remainder is invested to buy units.
Premium Paid During Tear (Rs.)
Up to 1 ,99,999
From 2,00,000 to 4,99,999
Regular
From 5,00,000 to 9,99,999
Premiums
10,00,000 and above
Single Premium Top-Up(s)

Investment Content Rate (ICR)

1st& 2nd yrs.
3rd year onwards
70.00%
99.00%
80.00%
99.00%
85.00%
99.00%
90.00%
99.00%
97.50%
99.00%

Fund Management Charges (FMC)

The daily unit price already includes a low fund management chare of 0.80% per annum
of the funds value. In the long term, the key to building great maturity values is a low
FMC.
Cancellation or Surrender Charges

23

On cancellation or surrender of the policy before 3 years of regular premiums have been
paid, the company will make a charge of 30% of the outstanding premiums due for the
remainder of this 3-year period.
Other Charges
Administration Charge
A charge of Rs.20 per month is charged to cover regular administration costs. The
company makes the charge by canceling units in each of the funds you have chosen, in
the proportion you have chosen.
Risk Benefit Charges
Every month the company makes a charge for providing you with the death or critical
illness cover you have selected. The amount of the charge taken each month depends on
your age. The company takes the charge by canceling units in each of the funds you have
chosen, in the proportion you have chosen.
Fund switching Charges, Premium Redirection or Alteration Charges
Premium alterations include stopping and restarting your regular premium after 3 years.
The company does not charge for any of these options currently. The company deserves
the right to introduce such charges after approval from the IRDA.

24

ICICI PRUDENTIAL LIFE INSURANCE

Overview
India's Number One private life insurer, ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank-one of India's foremost financial
services companies-and Prudentialplc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72 billion,
with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of
over 680 offices, over 235,000 advisors; and 23 banc assurance partners.
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI
Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic
Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our
distribution, product range and customer base, we continue to tirelessly uphold our
commitment to deliver world-class financial solutions to customers all over India.
The ICICI Prudential Edge - What makes us No. 1
The ICICI Prudential edge comes from our commitment to our customers, in all
that we do - be it product development, distribution, the sales process or servicing. Here's
a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps us develop Education plans that offer the
ideal way to truly guarantee your child's education, Retirement solutions that are a hedge
against inflation and yet promise a fixed income after you retire, or Health insurance that
arms you with the funds you might need to recover from a dreaded disease.

25

2. Having the right products is the first step, but it's equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an
advisor base across the length and breadth of the country, and also partners with leading
banks, corporate agents and brokers to distribute our products.
3. Robust risk management and underwriting practices form the core of our business.
With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a
smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 20,000 plus strong team is given the opportunity to
learn and grow, every day in a multitude of ways. We believe this keeps them engaged
and enthusiastic, so that they can deliver on our promise to cover you, at every step in
life.

26

Vision & Values

Our vision:
To be the dominant Life, Health and Pensions player built on trust by world-class people
and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology service customers quickly, efficiently and conveniently
Developing and implementing super risk management and investment strategies
to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our
employees
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of
the values describes what the company stands for, the qualities of our people and the way
we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
Our values:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and Passion. These values shine forth in all
we do, and have become the keystones of our success.
Promoters

27

ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank
with over 50 years presence in financial services and with assets of over Rs 3569.32 bn
(USD 88 billion) as on June 30, 2007. The Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries in the areas of investment banking, life
and non-life insurance, private equity and asset management. ICICI Bank is a leading
player in the retail banking market and services its large customer base through a network
of over 950 branches (including extension counters), 3469 ATMs, call centers and
internet banking (www.icicibank.com) to ensure that customers have access to its
services at all times
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to more
than 20 million customers, policyholder and unit holders and manages over 256 billion
of funds worldwide (as on June 30,2007). In Asia, Prudential is the leading European life
insurance company with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the
second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its
fund management business has expanded into a total of ten markets : China, Hong Kong,
India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

Fact Sheet

28

THE Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudentialplc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. For the first quarter ended June 30, 2007, the
company garnered Rs. 987 crore of weighted retail + group new business premiums and
wrote over 450,000 retail policies in the period. The company has assets held to the tune
of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the
highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations
to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1 private life
insurer in the country, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.

Distribution
ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India. It has a strong presence across India with over 680 branches and over 235,000
advisors.

29

The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Cooperative Bank, Jalgaon Peoples Co-operative Bank, ShamraoVithal Co-op Bank,
Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban
Co-operative Bank, Baramati Co-operative Bank, BalliaKshetriyaGramin Bank, The
Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.

30

CHAPTER 2: RESEARCH METHODOLOGY

31

RESEARCH METHODOLOGY
RESEARCH DESIGN
1) Statement of the problem
2) Research objectives
3) Research Methodology
Type of study
Data collection
Sampling
Tools & techniques
4) Scope of study
5) Limitations
I. Defining Research Problem
Problem definition is the first & foremost part of the research process, without
this research cannot be completed until and unless there is a problem or objective, the
research cannot be initiated. Problem definition refers to the objective on which research
has to be done, so problem definition in my project work is comparative study of unit link
products of HDFC-SLIC & ICICI Prudential Life Insurance Company and to know which
company can provide better service to consumer.
II. Objectives
To know about company history and organization structure.
Provide an overview of unit linked plans of HDFC standard life insurance company
ltd.&ICICI Prudential Company.
To make a comparative performance of unit linked plans
To study the expectations of customers from insurance companies.
Position of Insurance Companies in the mind of the consumer

32

III.

Research Methodology

Research refers to search for knowledge. In other words research is defined as a careful
investigation or inquiry especially through for new facts in any branch of knowledge.
Research Methodology is one of the important aspects of any project. This gives
us clear-cut view of method so used while gathering the information so needed for the
completion of the report.
a) Type of Study: Study is exploratory & descriptive in nature.
b) Data Collection: Source of Data:
Two types of data sources will be taken into consideration
Primary Data
Secondary Data
Primary Data: The primary data are those which are collected a fresh and for the first
time and thus happen to be original in character. Under this project direct collection of
data from source of information & techniques such as personal interviewing and survey
through questionnaire for customers has been considered.
Secondary Data: Secondary data is one which has already been collected by someone
else and which has already been passed through statistical processing. Under this project
secondary data is been collected from journals, magazines, & web sites.
C) Developing Sample Design:
Sample design refers to number of items tobe included in sample
It refers to the technique or procedure the researcher would adopt
In selecting items from the sample.
Type of universe: The universe is the entire group of items the researcher
wishes to study and about which they plan to generalize. Under this project

33

type of universe include people residing in Baddi (H.P.) & surrounding rural
area.

Sampling Unit: Sampling units are the persons, who have purchased the
insurance plan in Baddi(H.P).

Size of Sample: Number of people surveyed. Generally large Sample more

reliable result than small sample. The sample Consist of 100 respondents.
Sampling Procedure: Sampling procedure refers to technique Used in
selecting the items for the sample. Under this project selection of
respondents is on the basis of convenience sampling.
Tools and Techniques: For this survey Convenience- Sampling technique is
used.
Scope of Study:This study is mainly confined to the customer of Baddi
(H.P.) & near villages.
The size of sample is 100 respondents.
Comparison is done on the basis of secondary sources.
Limitations of the Study:
Time for the completion of the project was too short to do an in-depth study.
The facts and concepts of Respondents may be biased, imaginary and may
be based entirely on their personal experience.
Most of question in the questionnaire was closing ended which reduced the
scope for people to give free opinion.
The sample size was not enough to reach on any exact conclusion.

34

Company Name
Plan Name
Age
Sum Assured
Premium

Lock in period
Surrender allowed

HDFC Std. Life Insurance

Young star
18 to 65

ICICI Pru life Insurance

Life Time Plus
0 to 65

Minimum-Rs.1,00,000

Minimum-Rs.1,00,000

Maximum-No limit

Maximum-1crore

Minimum-Rs.10, 000

Minimum-Rs.20, 000

Maximum-no limit
3 years

Maximum-3,00,000
3 years

After 3 years: no charges

Before lock in period-30%
of outstanding premium
OP= difference between
regular premium expected
& received in the first two
years

After 3 years: you get

92%
After 4 years: you get
94%
After 5 years: you get
96%
After 6 years: you get
98%
After 7years & above:
you get 100% of fund
value

Death and Maturity

On Death-Sum Assured +

On Death- Sum Assured +

future premiums will be

Fund Value will be given to

given by HDFC on the

the nominee.

behalf of policyholder.

On Maturity-Fund value is

On maturity- Value of

given to the policyholder

accumulated fund is given

Fund Option

to the beneficiary.
1. Liquid Fund
2. Secure Managed
Fund

Maxi miserll
Balancer ll
Protector ll

35

Term Rider
Charges

3. Defensive Managed
Fund
4. Balanced Managed
Fund
5. Equity Managed
Fund
6. Growth Fund
For accident, Critical
Illness- max. Rs.25,00,000
Fund Mgmt. Charges0.80% per annum
Administration ChargesRs.20 per Month
Risk Benefit ChargesDepend upon the age of the
policyholder.
Partial Withdrawal Charge6 partial withdrawal in a
policy year is free. All
subsequent partial
withdrawal in that policy
year would be charged
atRs.250 per withdrawal.
Fund switching Charges, 24
switches allowed every
policy year free.
Subsequent switches will be
charged at Rs. 100 per
switch premium

Preserver

For accident, Critical

Illness, Permanent
Disability
Fund Management ChargesDifferent Charges for
different funds selected.
Maxi miser ll-1.50%
p.a.
Balancer ll-1.00%
p.a.
Protector- 0.75%
p.a.
Preserver- 0.75%
p.a.
Administration ChargesRs.60 per Month
Partial Withdrawal Chargeone partial withdrawal in a
policy year is free. All
subsequent partial
withdrawal in that policy
year would be charged
atRs.100 per withdrawal.
Switching Charges- 4
switches allowed every
policy year free.
Subsequent switches will be
charged at Rs. 100 per
switch.

36

CHAPTER 3: ANALYSIS AND INTERPRETATION

37

Respondent Profile:
Respondent profile has been analyzed: Que. 1: - Awareness of HDFC Standard Life Insurance Company:S. No.

Particulars

Response

Print Media

24

Electronic Media

30

Agents

35

Others

11

INTERPRETATION:In this chart, we can see that the agents play major role in awaring people about
the HDFC-SLIC. Apart from this electronic media is also a source for awareness.

Respondents response about the awareness of the Insurance Companies

38

Que. 2: -What the people think about the Insurance

S. No.

Particulars

Response

Necessity for protection security

67

Imposition of a burden of expenses

17

A compulsory tool for tax saving

16

INTERPRETATION:On the basis of above analysis, we can say that people mostly treat insurance as a
protection instrument. 67 people think insurance as a necessity for protection & security.

Que. 3: - Main consideration that a customer looks at while purchasing an Insurance

Policy.

39

S. No.

Particulars

Response

TAX

10

SAVING

29

PROTECTION

53

PENSION

INVESTMENT

INTERPRETATION:On the basis of above analysis, we can say that people purchase insurance policy
mostly for the protection purpose so use to purchase traditional palns.

40

Que. 4: - What a respondent see while purchasing Insurance from the company?

S. No.

Particulars

%age

Standing and goodwill of the company

46

Product range of the company

Advertisement being released by the

company

D
E

Services being given by the company

Returns of bonus declared by the company

18
26

INTERPRETATION:On the basis of above analysis, we can say that people prefer the companies those
have very highly goodwill in the market. And apart from this while purchasing they also
use to give more weight age to return also.

41

Que. 5: -Plan that a respondent prefers to buy

S. No.

Particulars

%age

Protection Plan

47

Investment Plan

19

Pension Plan

10

Children Plan

24

INTERPRETATION:On the basis of above analysis, we can say that people prefer to buy protection &
children plans mostly.

42

Que. 6: - Customers expectations from Life Insurance Companies

S. No.

Particulars

%age

Innovative Products

Attractive Riders

Reasonable Premium

24

Better Customer Service

47

High Risk Coverage

22

INTERPRETATION:On the basis of above analysis, we can say that people expect better customer
service from the insurance companies & reasonable premium on their investment.

43

Que. 7: - HDFC Standard Life Insurance Company provides better facilities than ICICI
Prudential Life Insurance Company
S. No.

Particulars

%age

Yes

34

No

Cant say

64

INTERPETATION:On the basis of above analysis, we can say that people are not aware about these
companies so we can not come on any conclusion.

44

Que. 8: -Is the respondent satisfied with the plan he bought?

S. No.

Particulars

Response

Yes

67

No

17

I havent bought any

16

INTERPETATION:On the basis of above analysis, we can say that people are satisfied with the plans
they have bought.

45

CHAPTER 4:
FINDINGS AND CONCLUSION

46

FINDING
Agents play major role in awaring people about the benefits of insurance.
People think insurance as a protection tool.
People purchase insurance policy mostly for protection purpose and some of
people for saving.
The goodwill of the company also attracts customers toward a insurance
company.
People also take insurance policy as a security for their children.

47

CONCLUSION
On the basis of my study, I conclude that, both the companies are providing very
good facilities to their customers. HDFC Standard Life Insurance is the one that is
providing wavier of premium to its customer in case of death of the life assured, whereas
ICICI is not providing this facility to its customers.
Both the companies have same lock in period i.e.3 years. Surrender charges of
these companies are different from each other. On maturity, both the companies provide
the amount equal to the market value of the units. Charges taken to manage the fund are
different in both the companies.

48

CHAPTER 5:
SUGGESTIONS

49

SUGGESTIONS
Advertisement should be done on television and especially Posters and Banners.
This will greatly help in raising awareness level.
Insurance Companies should show more commitment with the customers.
Private companies give better services to the customers as compared to public
companies.
The private company should create good relations and communication.
Private companies should collaborate to spread awareness regarding the benefits
of insurance plans provided by the Private Companies.
Agents have got maximum influence on customers. They are the one who
introduces the prospect to different policies. So agents should be given fullfledged training and the training should be strict.

50

CHAPTER6: BIBLIOGRAPHRY

51

BIBLIOGRAPHY
WEBSITES

www.hdfcinsurance.com

www.economictimes.com

www.irdaindia.com

www.bimaonline.com

www.google.com

BROUCHERS

HDFC Standard Life Insurance

ICICI Prudential Life Insurance

52

QUESTIONAIRE
(This information is for our internal use only, will not to be disclosed to any other
organization/department)
Consumers Behavior towards various Investment and Insurance Products
A- Study
Name

Address

Telephone

Age

Occupation
Marital status: Single/Married
Q.1: How do you know about HDFC Standard Life Insurance Company?
Print Media
Electronic Media
Agents
Others
Q.2: What do you think about insurance?
Necessity for protection security
Imposition of a burden of expenses
A compulsory tool for tax saving
Q.3: Main consideration that you look at while purchasing an insurance policy.
Tax
Saving
Protection
Pension
Investment
Q.4: What do you see while purchasing an insurance policy from the company?
Standing and goodwill of the company
Product range of the company
Advertisement being released by the company
Services being given by the company
Returns of bonus declared by the company

53

Q.5: Which plan would you like to buy?

Protection Plan
Investment Plan
Pension Plan
Children Plan
Q.6: What do you expect from HDFC Standard Life Insurance Company?
Innovative Products
Attractive riders
Reasonable premium
Better Customer Service
High risk coverage
Q.7: Do you think that HDFC Standard Life Insurance Company provides better facilities
than ICICI prudential life insurance company?
Yes
No
Q.8. Are you satisfied with the plan you bought?
Yes
No
I havent bought any

-------------------------------------------------------------------------------------------(THANK YOU)

54