A Project Report on Customer Awareness Level in Market for HDFC Standard Life Insurance Corporation...

7/31/2019 A Project Report on Customer Awareness Level in Market for HDFC Standard Life Insurance Corporation in Dharwa

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Customer Awareness Level in market for HDFC Standard Life Insurance

Corporation in Dharwad city.

Babasabpatilfreepptmba.com

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INDEX

Chapter-I

1) Introduction

2) Literature Review

3) Statement of the problem

4) Purpose of the study

5) Scope of the study

6) Objectives of study

Chapter-II

1) Organization Profile

2) Organization Chart

3) Sampling

4) Research Design Data Collection Methods

5) Measuring tools.

Chapter-III

1) Result & discussion with graphs & charts.

2) Summary, conclusion, & a proposed action plan with resource

requirements and projected benefits to the organization.

Chapter-IV

1) Appendix

Questionnaire

2) Bibliography


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INDUSTRY OVERVIEW

THE HISTORY OF INSURANCE:

As with so many things in so many facts of our life, insurance too was born out

of a primal need and shaped by socio economic realities of the time. The story goes

back to around 2100 BC, the time ancient civilization of Babylon and a business

practice called bottomry. For all practical purposes a form of marine insurance,

bottomry enabled ship owners to borrow money against their ships to pay for the trip.

With piracy rampant of high seas, traders and seafarers were reluctant to sale to other

lands for fear of their lives and goods. Bottomry gives them some semblance of

security. The arrangement was only if their ship returned did trader have to repay the

loan, along with interest, which was pegged at an above market rate for risk covered.

So, if their ship failed to make it back they did not have to repay the loan ,there by

covering some or all the loss.

ORIGIN:

With the marine rout being the bedrock of trade and commerce in those days, the

practice of bottomry evolved and spread. With the growth towns and trade in Europe,

medieval guilds (group organized on the basses of some common objective like traders)

pooled in money to protect their members from loss by fire and ship wreck, to pay

ransom if they were captured by pirates and to provide burial and support in sickness

and poverty. By the middle of 14th century, as evidences by earliest known insurance

contract (Genoa, 1347) marine insurance was common among maritime nations of

Europe.


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Lioyds of London the largest marine insurance today, was found in 1688, in a

coffee shop in London. Lioyds coffee house became preferred place for merchants,

ship owners and underwriters to transact business. Insurance develop rapidly with

growth of British commerce in 17th & 18th century, and started becoming organized,

along the way going through a period of defaults and closures.

The British bought insurance to India in 1818, replete with imperialist

prejudices. The oriental life insurance company, the first insurance company in the

country, insured only European widows. British insurers eventually begin insuring

Indian lives, but for a premium that was 15% to 20% higher than that payable by

British. It was only in 1870 that the disparity was corrected. Six Indians peeved by this

second-class treatment, set-up Bombay Mutual Life Assurance Society, and started

insuring Indian lives at the same cost of British lives. Social discrimination, in fact,

turned out to be catalyst for Indians initiative in insurance sector. In 1909, activist

Ishwar Chandra Vidyasagar founded the Hindu family annuity fund the first instant of a

pension-based investment scheme targeted at Indians.

As had happened in England earlier, a flood of new players and patchy regulation

snowballed into a crisis. Several insurers defaulted on their contractual obligations to

policyholders, citing investment losses, some even folded-up. The insurance act 1938

started control on insurance but even they failed to safeguard policyholders interests.


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NATIONALSATION:

Post-Independence, discontent against insurers reached a pitch. Business was

chaotic ,, foreign insurers were leaving the country, and Indian insurers, driven by

greed and business consideration, werent earning much credibility. The cry for

nationalizing insurance grew louder a move that insurers were, of course, opposed to.

On 19th January 1956, the life insurance business was nationalized. In one swoop,

the government snapped up 245 insurers and provident societies. Eight months later,

the life insurance corporation of India (LIC) was formed, which took over the business

of the erstwhile private insurers, and started expanding at a frenetic pace. Today, this

monolith has 2100 branch, 8lakh agents and offers a bevy of insurance investment

products. LIC marketed insurance less has a risk management tool and more has

savings instruments with tax edge. A look at LIC policy profile shows that 18% of

policies in force currently are protection plans. Insurance cum investment plans account

for 60%, with balance being pure investment plans. Still house holds embraced these

safe investment avenues, with the sum assured (or the total value of cove) increasing

from Rs.1476cr in 1`957 to Rs. 459201cr to 1998 to 1999.

Similar circumstances lead to the nationalization of non-life (general insurance).

As in life insurance per nationalization there were an inordinately largely number of

insurers many of who where notorious of clams. Non life insurance was nationalized in

1972. General Insurance Corporation was setup as a holding company, total of 107

private insurers where merged and group to form general insurance corporation four

subsidiaries.


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PRIVATISATION:

There were various reasons given by the government to nationalize the insurance

sector was to take insurance to the mass, facilitate the flow of long term funds (which

insurance companies, by virtue of the business they are in, have ready access to) into

development of infrastructure in the country, and safe guard the interest of the policy

holders. Towards this end, state insurers did develop the insurance sector, though most

experts believe that these monopolies could have done much, much more.

In the early nineties is, the government went on a reforms binge and started

loosing controls on Indian industry. In 1993 the government appointed the Malhotra

committee headed former RBI governor R.N.Malhotra, to draw up a blue print for

insurance sector reforms. The panel submitted its report a year later, recommending

privatization, backed by stiff entry guidelines and stringent regulations, so as to avoid

repeat per nationalization free for all.

The insurance regulatory and development authority (IRDA) was founded to

regulate the sector and over see the process of privatization. In 2000, the IRDA started

giving out licenses, and a year later, the first of the private players started operation.

The wheel had come full circle.

Under state control, the insurance sector, both life and non-life ,grew steadily.

Still, Indians are not adequately insured and lag behind most countries. Total insurance

penetration (insurance premium as a percentage of gross domestic product) is dismal

when compared to its economic standing. Just 2% of the population has some of life

insurance.


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Why private insurance are queuing up?

In many ways the re-entry of private insurers has marked Second Coming for the

sector. In just 3 years, the sector has under gone a make over, offering the fruits of free

market, more choice better service, and quicker settlements, tighter regulations greater

awareness. State insurers have been compelled to get their act together.


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INTRODUCTION OF LIFE INSURANCE:

History of life insurance in India:

The life insurance industry in India dates back to 1818 .when the Oriental

Life Insurance Company set up office in Kolkata in 1823, the Bombay Life Assurance

Company started operations in Mumbai, India. The Indian Life Assurance Companies

Act was passed in 1912; the Indian Insurance Companies Act 1928 followed this .These

acts allowed the Government to collect data regarding life and non life businesses

conducted by both Indian and foreign insurance companies later the 1928 act was

amended and a new act the Insurance Act was passed in 1938.

By the mid 1950s, 154 Indian insurers, 16 foreign insurers and 75 provident

societies were operating in the country. The life insurance business was concentrated in

urban areas and was confined to the higher strata of society. In 1956, the management

of these companies was taken over the Government of India LIC was formed in

September 1956 through the LIC Act 1956 with a Capital of Rs 50 million .One of the

main objectives of forming LIC was to make insurance cover available to a larger

number of people particularly to the lower segments of society . In 1972, the

Government took over management control of 106 private general insurance companies

and formed the General Insurance Corporation(GIC) over the years , LIC expanded its

network all over the country and become one of the largest corporations in India .LIC

had seven zonal offices 100divisional offices ,2,048 branch offices and army of agents

totaling 6,28,031.


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Growth in Indian insurance industry was minimal in the 1960s and 1970s

because of low sayings and the low level of literacy. In addition the insurance industry

lacked sufficient funding and infrastructure .However changes in the economy in the

1980s, such as growth in the rate of industrialization improvement in infrastructure the

capital markets increase in the savings rate and substantial capital formation resulted in

tremendous growth in the life insurance industry over the years LIC launched several

group insurance and social security schemes to enhance its reach in the rural areas.

What is life insurance?

Life insurance is a form of insurance that pays monetary proceeds upon the

death of the insured covered in the policy. Essentially , a life insurance policy is a

contract between the named insured and the insurance company wherein the insurance

company agrees to pay an agreed upon sum of money to the insureds named

beneficiary so long as the insureds premiums are current.

People take out life insurance policies for a number of reasons. Such

insurance provides security to family members upon the loss of a loved one for instance

if the primary wage earner dies in his or her prime the death benefit received from a

life insurance policy will assist the surviving family members in overcoming the

burden of the tragic loss . Life insurance can be purchased by individuals but is also

offered as a perk by many employers .Often times large employers and government

employers offer group life insurance at no cost the employee . Should the employee

wish to obtain additional life insurance from the employers insurance company they

can usually do so at reduced rates.


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The cost of life insurance varies depending on such factors as the insured s

age health and occupation . For example the premium for a 25 year old male non-

smoker in excellent health will be far less expensive then a similar policy for a 65-year

old male smoker .similarly a sky dive instructor would have to pay much higher

premiums for life insurance then would a librarian.

Life insurance is available in a number of different forms to fit the tastes of

the proposed insured some of the typical forms of insurance policies include whole life

variable life and term life .Term life insurance policies begin with low premiums during

the initial stages of the policy and these premiums increase steadily as the insured

grows older .There is no cash built-up in a term policy and accordingly the death

benefit will not increase.

With whole life and variable life insurance a portion of premium pays for

the insurance and the remainder serves as a tax-free investment .A whole life policy

sets a premium at the beginning of the policy and that premium does not change over

the life of the policy .This form of insurance allows for a cash of the policy or it will

simply serve to increase the death benefits in the end.

In a variable life product, the premium remains the same over the life of the

policy , and there should be a cash build-up as long as the various mutual funds

selected by the insured perform well.


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What is an insurance premium:

An insurance premium is the actual amount of money charged by insurance

companies for active coverage .An insurance premium for the same service can very

widely among insurance providers which is why experts strongly recommend getting

several quotes before committing to an insurance policy .Insurance agents or brokers

will take your basic information and calculate an insurance premium estimate based on

your answers and other factors. The lowest quoted price on an insurance premium may

be the better bargain but the level of coverage may also be lower.

The cost of an insurance premium is largely based on statistics not

necessarily on individual habits or history .A 22-year old male seeking car insurance

for a sports car can often anticipate a higher insurance premium than a 45-year-old

women driving a mid-size sedan. Both may have excellent driving records but the

insurance company considers a younger driver in a faster car to be more at risk for

accidents. Therefore the insurance premium quotes will be noticeably different. In

general a more expensive or faster car will cost more to insure simply because owners

of those vehicles TEND to drive faster.

The same philosophy holds true for medical insurance premium costs .Non-

smokers statistically live healthier lives then smokers ,for example Construction worker

may have more serious on the job accidents than accountants . A55-year-old

lumberjack who smokes may be charged a higher health insurance premium than a 30-

year-old non-smoker working in an office conversely an insurance premium may be

reduced if the policyholder changes his or her habits and life style.


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An insurance premium is generally collected in monthly or semi-yearly

payments .If the policyholder fails to make a scheduled payment the insurance

company can choose to cancel the policy entirely. This is often referred to as a lapsed

policy .Either the customer will pay the balance of the insurance premium and become

reinstated or the policy will become null and void. Because the billing cycle can be

lengthy it is not unusual for policy holders to forget to make a payments before the

policy lapses.

An insurance premium is always in a state of flux Rates can go up or remain

stable between billing cycles .An accidents claim can dramatically changes the

insurance premium rate of the claimant especially if the accidents report show the

policy holder was at fault . Because most states now have a mandatory minimal

insurance coverage law for drivers there may be no other choice but to pay the

increased insurance premium or find another company willing to a higher risk driver

.Insurance agencies are for profit businesses , so they will make every effort to recoup

their losses after a pay-out . Paying an insurance premium may seem like a waste of

money ,but knowing your expenses will be met after an accident can bring peace of

mind .


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INDIAN

PROMOTER

FOREIGN

PROMOTER

COUNTRY INSURER WEBSITE

Bajaj Auto Allianz AG Germany Bajaj Allianz

Life Insurance

bajajallianz.co.i

n

ICICI Prudential USA ICICI

Prudential Life

Insurance

iciciprulife.com

HDFC Standard Life UK HDFC Standard

Life Insurance

hdfcinsurance.c

om

Vysya Bank ING Group Netherland

s

INGVysya Life

Insurance

ingvysyalife.com

SBI Cardif(arm of

BNP paribas)

Canada SBI Life

Insurance

sbilife.co.in

TATA American

International

Group

USA Tata-AIG Life

Insurance

tata_aig.com

Dabur India Aviva Plc Aviva Life

Insurance

avivaindia.com

Aditya Birla

Group

Sun Life Canada Birla Sun Life

Insurance

birlasunlife.com


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Literature Review:

The project report on A study on customer awareness to determine the potential

market HDFC Standard Life Insurance Plan in Dharwad. I through under took the

project by the help of HDFC Standard Life Insurance Plan Ltd. Sales development

manager Mr. Moin Lohani

Body of the Report:

Primary data was collected by administration questionnaire of 100 customers.

The questionnaire was specially framed to meet the requirement of the survey and the

following details.

Direct contact was made with the respondents through random sample to collect

the needful information with reference to our objective as per to meet the survey

requirement.

Interview technique:

Direct personal interview was conducted throughout project using direct

structured and self administrative questionnaire.

Conclusion & Recommendation:

Analysis was based on the result of the research conducted and the

recommendations are based on the analysis.

Limitation :

The major limitation of the project was time frame.


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STATEMENT OF THE PROBLEM

A study on customer awareness to determine the potential market of

HDFC Standard Life Insurance Products and plans.

The main core problem in the project is to know weather the people of Dharwad

city is fully aware ofHDFC Standard Life Insurance Plan

Purpose of the study:

The study was undertaken to gather information from the respondents

regarding awareness Unit-Linked Youngster plan and the purpose of the study is to

know how many people are aware ofHDFC Standard Life Insurance Plan

Scope of the study:

The study will help the company to know the awareness of HDFC

Standard Life Insurance Plan in Dharwad city.

The study will help the company to know the customer profile.

The company can find out where their competitors stand.

The reason for confining the scope of the research in Dharwad were .

1) One of the fast growing city in educational field in Karnataka and represents

the more scope to the insurance companies.

2) It is also commercial city in the Business field.


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Objectives:

1. To study the awareness level ofHDFC Standard Life Insurance Plan.

2. To find factor influencing financial planning.

3. To find potential market for HDFC Standard Life Insurance Plan

4. To find vital communication media.

RESEARCH METHODOLOGY

Data source: Primary data (field survey)

Area of Research: Dharwad city.

Research instrument: Questionnaire.

Sample Plan: Personal Interview.

Sample Unit: Businessman, Job holders, etc.

Sampling method: Non probability method, Random sampling method.

Sample Size: 50 respondents.


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Organizational Profile:

HDFC (Housing Development Finance Corporation Ltd.)

Founded in 1977, HDFC is today the market leader in housing finance in India

and extended financial assistance for more than 19 lacks homes.

HDFC has 120 offices in India presently. It also has one international office in

Dubai and service associate in Bahrain, Kuwait, Qatar, Saudi Arabia and sultanate of

Oman.


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HDFCs asset based amount of over Rs 21450crore. Its financial strength is

reflected in highest safety rating of FAAA and MAAA awarded by CRISIL ICRA two

of Indias leading credit rating agencies respectively for the last 7 years consequently.

It has a depositor based of over 13 lacks depositors and deposits agent face of over

50000.

Of the total deposit of 82%are sourced from individual and trust depositors,

which demonstrate the tremendous confidence that retails investor, have in the

company.

HDFC promoted companies have emerged to to meet the investor and

customers needs.

HDFC bank for commercial banking HDFC mutual fund of mutual fund of

products.

HDFC standard life insurance company for life insurance and pension plan

and product and HDFC Chubb for general insurance product.

Being an institution that is strongly committed to the highest standard of

quality and excellence , HDFC has own several accolades in the past few years one

such award is Ramakrishna Bajaj National Quality Award for the year 1999.this

award was instituted to award reorganization to Indian companies for business

excellence and quality achievements. HDFC is the only Company so far to receive this

award in the service category.


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Standard Life Assurance Company (SLAC)

Founded in 1825, Standard life has been at the fore front of the U.K. Insurance

Industry for 177 years by combining sound financial judgment with integrity and

reliability. The largest mutual life company in Europe, it has operations in the U.K,

Ireland, Spain, Germany, Austria and Canada with representative offices in Hong Kong

and Chaina.

One of its most recent successes was the launch of standard life bank on 1st

January 1998. The introduction of its innovative mortgage product in January 1999 had


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an immediate impact on the U.K. market, accounting for 11% of the all new lending

within the first operational year. The current deposite base of the bank is U.S. $ 7.1 Bn.

Standard life has total assets of U.S.$ 121 Bn and the new premium income last

year of U.S.$ 9.2 Bn. Its U.K. investment portfolio accounts for approximately 2% of

all shares listed in the London Stock Exchange.

It is one of the few insurance companies in the world to receive AAA rating

from two of the leading International Credit Rating Agencies, Moodys And Standard

and Poors. The letter described standard lifes ability to meet its claims obligations of

overwhelming under a variety of economic conditions.

Not surprisingly, standard life is rated as one of the strongest companies in the

world, in financial terms.

The quality and values standard life brings to this venture are immense. The

companies reputation in the U.K. market remains unrivalled. Besides being voted

Company of the year for overall service, for the third consecutive year, standard life

was recently voted Company of the Decade by independent brokers.

Commissions

The rewards of selling insurance are the lucrative.

The limits on commission as provided in the Insurance Act 1938 are as under:

Type of Policy Commission Limits

Immediate Annuity 2% of premium

Deferred Annuity

(single premium)

2% of premium


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Deferred Annuity

(regular premium)

7.5 % of the first years premium

2% of each renewal premium

All other Cases

(Endowment, Money-back, etc.)

A maximum of 40 % of the first

years premium

A maximum of 7.5 % of the

second years premium

A maximum of 5 % of the 4 th & 5th

years premium

Thereafter, 5% of the renewal

premium

Total commission payable in the

first five years cannot exceed 60 %

of the annual premium payable on

the policy.

Role of the HDFC Standard Life Agent-The consultant

The Companys agent would be a professional sales person & would be given the

designation of a consultant by the Company.

The consultant would act as a financial advisor to the customer. He/She would:

Analyze the customer financial requirements

Help them plan their goals &


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Recommend appropriate solution, so that the customer is able to meet his /her

financial objectives in the most optimum manner. He/She shall provide support

to customers on an ongoing basis.

The Company would also support the consultant by providing the required

training & information so that he/she is able to provide the best service to the

customers.

Thus, the Companys Consultant would have a far wider role to play than the

typical insurance agent.

Why should be a consultant with HDFC standard life insurance Company Ltd.?

HDFC standard life are companies with tremendous financial strength as

endorsed by credit rating agencies. Both enjoy an excellent reputation in terms

of goodwill and efficient customer service.

Sales training imparted to our consultants will be based on the finest

international practices.

Promote and effective communication on marketing campaigns, new products.

The customer service process will be highly leveraged on technology, whether it

is getting a new policy on the books, paying your commission or setting a claim.

New business will be processed through a local branch network.

Our objective is to get policies on our books and disburse.

Commission paid to you as quickly as possible.


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A range of comparative products backed by quick and efficient service supported

by highly trained and customer focused administration of team. The idea is to

designe all our process around the customers want, when they want it and where

tyeu want it.

Additional recognition for top performers.

Published service turnaround times, which will be used to measures our performance.

Customer satisfaction surveys will be conducted proactively and the company will

the act on the results.

Scope of Insurance Business in India

The malhotra committee estimated that the insurance penetration in India is to

extent of about 25% of the insurable population.

As of 1999-2000, LICs insurance premium income was approximately

rs.32000 crore. It is observed that currently LIC has about 10 crore policies in force,

which contribute a premium of about 6% of GDS (Grosss Domestic Savings ) of

households in India.

Based on a report by the confederation of Indian Industries (CII), it is

anticipated that this figure of 10 crore policies inforce is likely to double in the next

decade.by the year 2010, the premium income is expected to account for 18% of the

GDS,amounting to Rs. 5,12,000 crore.


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90

100

120

135

150

165

180

0

20

40

60

80

100

120

140

160

180

1

years

Number of policies in force


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6

7

9

11

12

15

19

0

2

4

6

8

10

12

14

16

18

20

Life premeum as a proportion of GDS

Series1

About us

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life

insurance companies, which offers a range of individual and group insurance solutions.

It is a joint venture between Housing Development Finance Corporation Limited

(HDFC Ltd.), Indias leading housing finance institution and The Standard Life

Assurance Company, a leading provider of financial services from the United

Kingdom. Both the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life insurance

industryall important factors to consider when choosing your insurer.


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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.

RangeofSolutions

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.

TrackRecordsofar

Our cumulative premium income, including the first year premiums and renewal

premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000 lives have

been covered through our group business tie-ups.

Customer services


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We at HDFC Standard Life are committed to maintaining the highest level of

customer service. Interacting with you via this website is an extension of this

commitment.

We have designed the Customer Service section keeping in mind all the

information you may want to seek regarding procedures such as paying your premium,

various policy servicing options, processing a claim and so on. We have also provided

relevant forms that can be downloaded easily for your use.

Premium Payment

This section gives you all the details that you may require to pay your

premium and make it a hassle free experience. Along with various premium payment

options currently available to you, we have also drawn up a of details that you will need

in case you are paying through cheque or demanddraft

6 Easy Ways to pay your premium:

Lapsation & Revival


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Your renewal premium should reach us by the due date specified in the

premium reminders. It is always advisable to pay on time so that your valuable policy

benefits can continue.

However we do understand that there may be times when you may not be able

to pay the renewal premium by the due date. Therefore we allow for some additional

number of days from the due date, which is specified in your policy document, to help

you make your premium payment.

Make the policy Paid up if otherwise

Either of these may mean loss/reduction of valuable benefits of your policy.

Please refer to your policy document for details.

We do, however, allow you to restore the original benefits for a Lapsed or a

Paid up policy under certain conditions. Here is what you would need to do:

In case we still dont receive your premium payments by the end of the above

mentioned period, we would do either one of the following:

Lapse the policyif you havent paid premiums for the first 3 policy years

Claims


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We at HDFC Standard Life realize that not everyone has the same kind of needs.

Keeping this in mind, we have a varied range of Products that you can choose from to suit all

your needs. These will help secure your future as well as the future of your family.

Protection Plans

You can protect your family against the loss of your income or the burden of a loan in

the event of your unfortunate demise, disability or sickness. These plans offer valuable

peace of mind at a small price.

Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance

Plan.

Investment Plans

Our Single Premium Whole Of Life plan is well suited to meet your long term investment

needs. We provide you with attractive long term returns through regular bonuses.
http://www.hdfcinsurance.com/products/indi_tap.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_spwlp.asphttp://www.hdfcinsurance.com/products/indi_spwlp.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_lcta.asphttp://www.hdfcinsurance.com/products/indi_tap.asp


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Pension Plans

Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked

Pension Plus

Savings Plans

Our Savings Plans offer you flexible options to build savings for your future needs such as

buying a dream home or fulfilling your childrens immediate and future needs.

Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit

Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngster, Unit

Linked Youngster Plus .

We understand that bereavement can be difficult to deal with, especially when you have to

arrange for all the formalities in Case of insurance claims.

If you are the claimant you may get in touch with us by emailing us at and we will get back

to you with that will be required to process a claim.

To help you arrange the documents we have drawn up a list of documents that you may be

required to send along with the claims form. This list is for your reference only and the complete

list may vary for each claim.
http://www.hdfcinsurance.com/products/indi_ppp.asphttp://www.hdfcinsurance.com/products/indi_ulpp.asphttp://www.hdfcinsurance.com/products/indi_ulpplus.asphttp://www.hdfcinsurance.com/products/indi_ulpplus.asphttp://www.hdfcinsurance.com/products/indi_eap.asphttp://www.hdfcinsurance.com/products/indi_ulep.asphttp://www.hdfcinsurance.com/products/indi_uleplus.asphttp://www.hdfcinsurance.com/products/indi_uleplus.asphttp://www.hdfcinsurance.com/products/indi_mbp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_ulysp.asphttp://www.hdfcinsurance.com/products/indi_ulysplus.asphttp://www.hdfcinsurance.com/products/indi_ulysplus.asphttp://www.hdfcinsurance.com/products/indi_ulysplus.asphttp://www.hdfcinsurance.com/products/indi_ulysplus.asphttp://www.hdfcinsurance.com/products/indi_ulysp.asphttp://www.hdfcinsurance.com/products/indi_cp.asphttp://www.hdfcinsurance.com/products/indi_mbp.asphttp://www.hdfcinsurance.com/products/indi_uleplus.asphttp://www.hdfcinsurance.com/products/indi_uleplus.asphttp://www.hdfcinsurance.com/products/indi_ulep.asphttp://www.hdfcinsurance.com/products/indi_eap.asphttp://www.hdfcinsurance.com/products/indi_ulpplus.asphttp://www.hdfcinsurance.com/products/indi_ulpplus.asphttp://www.hdfcinsurance.com/products/indi_ulpp.asphttp://www.hdfcinsurance.com/products/indi_ppp.asp


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Indicative list of documents for Death Claim

Death Claim Form

Original Death Certificate

Original Policy Documents

Medical certificate of cause of death

Cremation or burial certificate (not mandatory)

Legal evidence of title (In case there is no nominee)

All past medical reports

Indicative list of documents for Critical Illness Claim

Critical Illness Form

Claimant Statement Form

Original Policy Document

A copy of medical records at the time of diagnosis illness and for past illnesses

Doctors/Hospital Certificates (formats will be issued by the claims assessor only)
http://www.hdfcinsurance.com/customerserv/pdfs/death_claim.pdfhttp://www.hdfcinsurance.com/customerserv/pdfs/death_claim.pdfhttp://www.hdfcinsurance.com/customerserv/pdfs/critical_illness.pdfhttp://www.hdfcinsurance.com/customerserv/pdfs/critical_illness.pdfhttp://www.hdfcinsurance.com/customerserv/pdfs/critical_illness.pdfhttp://www.hdfcinsurance.com/customerserv/pdfs/death_claim.pdf


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Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for progressive

employers who wish to provide the best and most innovative employee benefit

solutions to their employees. We offer different products for different needs of

employers ranging from term insurance plans for pure protection to voluntary plans

such as superannuation and leave encashment.

We now offer the following group products to our esteemed corporate clients:

Group Term Insurance with Riders

Group Term Insurance with Profit-Share

Group Unit-Linked Plan

For Gratuity

For Defined Benefit Superannuation

For Defined Contribution Superannuation

Group Leave Encashment Plan

Rural Products

According to our research findings, there is keenness among rural customers to invest

in savings cum protection plan with a term of five years. Especially, if the premium
http://www.hdfcinsurance.com/products/grp_gtistdprop.asphttp://www.hdfcinsurance.com/products/grp_gtistdprop.asphttp://www.hdfcinsurance.com/products/grp_gtistdprop.asphttp://www.hdfcinsurance.com/products/grp_gtistdprop.asp


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amount is low and affordable. Keeping this in view, we have designed a special

product calledBima Bachat Yojana.

We have also designed a product called Super Bachat Yojana wherein the rural

customer can save regularly to create a corpus for future needs..

Bima Bachat Yojana

The key objective of this product is to provide cover to economically weaker

section and also to popularise the concept of life insurance and savings in rural

areas. Bima Bachat Yojana is a low premium life protection plan. One time

premium for a five-year term is just Rs. 100.

Benefits on death before Maturity: Rs 1,000.

Benefits on Surrender before Maturity

During year Surrender Value (Rs)

1 100

2 120

3 140

4 160

5 180
http://www.hdfcinsurance.com/products/rural.asp#bima#bimahttp://www.hdfcinsurance.com/products/rural.asp#bima#bimahttp://www.hdfcinsurance.com/products/rural.asp#bima#bimahttp://www.hdfcinsurance.com/products/rural.asp#super#superhttp://www.hdfcinsurance.com/products/rural.asp#super#superhttp://www.hdfcinsurance.com/products/rural.asp#super#superhttp://www.hdfcinsurance.com/products/rural.asp#bima#bima


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Benefits on Maturity

On survival of the life assured to maturity, a benefit of Rs 200 will be paid.

Age Limit : 18 to 50 years

Super Bachat Yojana

Super Bachat Yojana combines the benefits of life protection as well as super

savings. It helps you save money to meet the expected long term needs. Whats

more, it lets you participate in the surplus profits of the company!

Benefits on Maturity

Sum Assured + Reversionary Bonus + Interim and Terminal Bonus

(Bonuses will be declared normally as on 31st March)

Benefits On Death

During the first year a basic benefit of 80% of premiums paid and after the first year

lesser of


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basic sum assured +reversionary bonuses paid and

total premiums paid to date +interest @ 6 % per annum

Tax Benefits

Premiums paid are eligible for tax relief under Section 80 C of the Income Tax

Act, 1961

Any sum received is exempt under Section 10[10D] of the Income Tax Act, 1961

Age and Term Limits

Minimum Age at Entry 18 years

Maximum Age at Entry 60 years

Maximum Age at Maturity 75 years

Minimum Term 10 years

Maximum Term 30 years

Minimum Premium & Policy Fee

Option Premium Fee

Annual 1800 150

Half Yearly 1000 80

Quarterly 550 45


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Documents Required for Claim Payments

Fully completed Claim Form

Original Policy document

Original Death Registration Certificate

Original Certificate of Doctor certifying death

Original Certificate of cremation

There are NO exclusions under this product

Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to members of

a Development Agency for a term of one year. On the death of any member of the group

insured during the year of cover, a lump sum is paid to that members beneficiaries to help

meet some of the immediate financial needs following their loss.

Eligibility

Members of the development agency and their spouses with:

- Minimum age at the start of the policy 18 years last birthday


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- Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The group to

be covered is only eligible if it contains more than 500 members.

Premium Payments

The premium to be paid will be quoted per member in the group and will be the same for

all members of the group.

The premium can only be paid by the Development Agency as a single lump sum that

includes all premiums for the group to be covered. Cover will not start until the premium

and all the member information in our specified format has been received.

The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

.

Benefits

On the death of each member covered by the policy during the year of cover a lump sum

equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death

is as a result of an accident, an additional lump sum will be paid equal to half the sum

assured. There are no benefits paid at the end of the year of cover and there is no

surrender value available at any time.

The role of the Development Agency


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Due to the nature of the groups covered, HDFC Standard Life will be passing certain

administrative tasks onto the Development Agency. By passing on these tasks the

premium charged can be lower. These tasks would include:

Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to group members

These tasks would be in addition to the usual duties of a policyholder such as:

Payment of premiums

Reporting of claims

Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasks

appropriately.

Since these additional tasks will impose a burden on the Development Agency, the

Development Agency may charge a Rs. 10 administration fee to their members.

Prohibition of rebates

Section 41 of the Insurance Act, 1938 states

No person shall allow or offer to allow, either directly or indirectly, as an inducement

to any person to take out or renew or continue an insurance in respect of any kind of

risk relating to lives or property in India, any rebate of the whole or part of the

commission payable or any rebate of the premium shown on the policy, nor shall any


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person taking out or renewing or continuing a policy accept any rebate, except such

rebate as may be allowed in accordance with the published prospectus or tables of the

insurer

If any person fails to comply with sub regulation (previous point) above, he shall be

liable to payment of a fine which may extend to rupees five hundred

Tax Benefits

INCOME TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

HDFC STANDARD LIFE

PLANS

Sec. 80CAcross All

income Slabs.

Up to Rs. 33,660

saved on investment

of

Rs. 1, 00,000.

All the life insurance plans.

Sec. 80 CCCAcross all income

slabs.

Up to Rs. 33,660

saved on Investment

of

Rs.1, 00,000.

All the pension plans.

Sec. 80 D*Across all income

slabs.

Unto Rs. 3,366 saved

on Investment of

Rs. 10,000.

All the health insurance riders

available with the conventional

plans.


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TOTAL

SAVINGS

POSSIBLE **

Rs. 37,026

Rs. 33,660 under Sec. 80C and under Sec. 80 CCC , Rs.3,366 under Sec. 80

D, calculated for a male with gross annual income not exceeding Rs.

10,00,000.

Sec. 10 (10)DUnder Sec. 10(10D), the benefits you receive are completely tax-free,

subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and

Waiver of Premium Benefit.

** These calculations are illustrative and based on our understanding of current tax legislations.

Please contact your tax consultant for exact calculation of your tax liabilities.

Knowledge Centre

Our Knowledge Centre is your personal resource for information that can help you

understand the basics of insurance and help you make an informed decision about

buying a policy.

This section includes details on insurance terms and concepts, helps you analyze plans

for your various needs and lends meaning to some of the insurance jargon that you may

encounter.


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HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life

insurance companies, which offers a range of individual and group insurance solutions.

It is a joint venture between Housing Development Finance Corporation Limited

(HDFC Ltd.), Indias leading housing finance institution and The Standard Life

Assurance Company, a leading provider of financial services from the United

Kingdom. Both the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life insurance

industryall important factors to consider when choosing your insurer.

Our key strengths

FinancialExpertise

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.

RangeofSolutions

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.


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TrackRecordsofar

our cumulative premium income, including the first year premiums and renewal

premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000 lives have

been covered through our group business tie-ups.

carriers

HDFC's finest investment is in its Human Resources. It draws its personnel from

many disciplines. They are the building blocks on which the company's performance

& productivity is based". Mr. H T Parekh Founder-Chairman, HDFC Ltd.

We welcome you to the family of HDFC Standard Life Insurance Company Ltd.

This section will help you identify various career opportunities with us, give you an

insight into our work culture and also our various learning and development initiatives

amongst host of other information.

HDFC Standard Life is one of the leading life insurance companies having a track

record of declaring bonuses every year since inception. We attribute this success to our

people, who are our most important asset. We believe they are a key facet of the

company and it is their contribution that has enabled us to achieve our current status.

Since they deserve the best, our efforts have been to provide them with the best

environment, best culture and best development opportunities possible.


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Join the Winning Team at HDFC SL

In our quest to be a competitive player in the insurance space, we are keen to

partner with talented, high performing people. We pride our self for a rich

talent base that can successfully propel the company to even greater heights in

an increasingly competitive platform. So if you think, you have it in you to

emerge victorious in this challenging environment, join us. You can in order

to send us your CV.

Current Opportunities

Accounts & Finance

Group Sales

Human Resource & Administration

Inferior & Technology

Marketing

Operations

Sales-Retail

Sales-Alternate Channel

Underwriting

Training

Process Management

Agency

Legal & Compliance


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Medical

Group Companies

Some of our valued bancassurance partners.

16th May 2006

HDFC Standard Life records impressive growth


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Premium Income grows by 112%

HDFC Standard Life has recorded a strong year on year growth of 112% for the

period April-March 2005- 06, in comparison with the same period 2004-05, with

new business first year premium of Rs.1029 corers. The growth achieved by the

company was considerably higher than the private sector industry average of 84%

for 2005-06. In terms of effective premium income (EPI), which gives a 10% value

to a Single Premium policy, and is an internationally accepted indicator of an

insurance companys performance, the EPI grew by 103% from Rs.436 Cr. to Rs.

887Cr.

HDFC Standard Lifes growth in new business is a result of number of lives

insured as well as, an increase in the average premium. For the individual business,

volume measured by the number of lives insured, witnessed a 32% growth. The

average premium also increased by 62% from Rs.17, 000 in 2004-05 to Rs. 27,500

in 2005-06.

Commenting on the huge potential that exists in the Indian market today, Mr.

Deepak Satwalekar, Managing Director & CEO of HDFC Standard Life

emphasized, The GDP has been growing over 8% per annum and 47% of all

savings are now in financial saving forms; 16% of savings is in the form of

insurance premiums and another 16% is in Provident Fund and Pensions i.e., 32% of

Indias financial savings of the household sector are available to be tapped.

Therefore, growth for the private life insurance industry is inevitable and HDFC


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Standard Life is confident of maintaining a steady growth pace.

Highlighting HDFC Standard Lifes differentiators, Mr. Deepak Satwalekar said,

Our Company has the most competitive fund management charge, which is the

lowest in equity based products. Our fund management charge is as low as 0.8% per

annum, the key to enhancing long-term returns. Our other differentiator is that we

believe in offering life insurance solutions to customers based clearly on their needs,

and Disha is the way it is done.

Disha is a Professional Sales Skills Training Program. The delegates in this

program are introduced to a Need-based selling approach, which can cater to all

our clients opting for life insurance solutions. Disha is aimed at providing a good

service to the client and building long-term relationships.

Contribution to the individual business premium income by the different channels of

distribution also changed significantly, compared to last year. The Corporate

Agency and Banc assurance channel has grown tremendously and currently

accounts for 43% of the companys business. Speaking on this, Mr. Satwalekar said,

The strategy to concentrate on activating a limited number of bancasurance

partners rather than going in for signing up a large number of banks in the early

years, also paid off. Our key to achieving banc assurance success is our belief in a

partnership approach, customized product offerings, highly ethical dealings and

providing good value to our partners and their customers.

HDFC Standard Lifes offerings of Employee Benefit Solutions, to the corporate

sector, through Group Business, have met with increased success with year on year


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growth of 174%. Commenting on the strong growth of HDFC SLs Group Business,

Mr. Satwalekar said, Our excellent fund performance on retirement products and

increase in our client base with 150 clients cutting across a spectrum of industries

spanning from multinationals to PSUs to the older business houses, have been the

highlights of the year.

Ongoing training for conventional products and specialized training for unit linked

products for more than 33,000 of our financial consultants has also helped its

customers choose the products best suited for their need for protection, savings,

investments and pensions. HDFC Standard Life is the only company requiring its

sales force to undergo specific training in ULIPs before they are permitted to sell the

same. There has been a huge jump in the number of its Financial Consultants who

have qualified to become members of the prestigious Million Dollar Round Table

(MDRT). From 124 members as on 31st December 2004, the number has increased

to 318 members as on 31st December 2005.

HDFC Standard Life continues to have one of the widest reaches amongst new

insurance companies. The Companys geographical presence has also increased and

covers 169 offices across the country.

Table Showcasing Financial Results:

Parameters

Apr-Mar

2004-05

(Rs. Cr.)

Apr-Mar

2005-06

(Rs. Cr.)

% Growth


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Total received premium 668.40 1532.21 129.23

i. New Business 486.15 1028.94 111.65

ii. Renewal 182.25 503.27 176.14

Effective Premium

Income (Total)

436.08 887.30 103.47

Group Business

Premium (EPI)

49.40 135.15 173.58

News

16th May 2005

HDFC Standard Life declares results for FY 2004-05

Premium Income grows by 132%


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HDFC Standard Life Insurance Company Limited declared its annual results for the

financial year ending March 31st, 2005. The company generated New Business Premium

Income of Rs. 486 Crore in 2004-05 registering a year-on-year growth of 132%. The

growth was primarily driven by the success of the company's initiative on structured sales

processes based on customer needs and their assessments.

Mr. Deepak Satwalekar, Managing Director & CEO, HDFC Standard Life attributed this

growth to the quality of life insurance solutions offered by the company. Speaking on the

occasion he said, "We are equipped to offer some of the best solutions to our customers

given our wide range of products and the quality of advice offered by our Financial

Consultants and Corporate Consultants. Training was one of the biggest initiatives we had

undertaken last year. Clearly, this initiative has started giving us good results."

Highlights of Financial Year 2004-05

New Business Premium Income up by 132% to Rs. 486 Crores. Total Premium Income

of Rs.687 Crores as against Rs. 298 Crores in FY 03-04.

Alternate Channels including banc assurance have recorded an impressive growth of over

400% to contribute 37% to the Effective Premium Income (EPI).

Group business increased to Rs. 32 Crores on EPI basis.

The average premium doubled to Rs 17,000


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Company products and services available in 444 locations across the country

HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium

Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy

and is an internationally accepted indicator of an insurance company's performance. While

the company recorded New Business Premium Income of Rs. 486 Crores, the EPI figure

was lower at Rs. 436 Crores. The total premium income (including renewal premium)

grew by 130% to touch a figure of Rs. 687 Crores. High levels of persistency have resulted

in a higher level of renewal premiums. High persistency is an important contributor to

future profitability. The cumulative sum assured for all policies issued up to March 31,

2005 crossed Rs. 30,000 Crores.

In the first full year of offering unit linked products, the structured sales process adopted

by the company has paid rich dividends. HDFC Standard Life offers, both, life insurance

policies as well as pension products on a unit linked platform. Unit linked products

accounted for over 50% of the new business premium. Given the nature of the unit linked

product, the company provided specialized training to a limited number of its Financial

Consultants who were then tested for their understanding of the products and separately

licensed. HDFC Standard Life is unique in stipulating this requirement for its sales force.

The company's national relationships with HDFC Limited, HDFC Bank, Union Bank of

India, Indian Bank and Saraswat Bank have also helped it reach out to a larger number of


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customers across the country. The alternate channel business grew by over 400% to

contribute 37% of the premium income. The company plans to further strengthen these

relationships through the introduction of products specially designed for this channel.

HDFC Standard Life continues to have one of the widest reaches among new insurance

companies. The company doubled the number of offices to 104 across the country.

Through these offices, the company today services customer needs in over 440 towns. The

company also increased its depth in existing markets by increasing its Financial Consultant

strength from 17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005. There

has been a huge jump, of over 220%, in the number of its Financial Consultants who have

qualified to become members of the prestigious Million Dollar Round Table (MDRT).

From 38 members as on 31st December 2003, the number has increased to 124 members

as on 31st December 2004.

During the year, the company expanded its portfolio of products by launching plans to

cover Superannuation and Leave Encashment needs, thereby offering a wide range of

employee benefit solutions to its corporate clients. Consequently, HDFC Standard Life's

Group Business saw a huge growth over the previous financial year. The New Business

Premium grew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of over

Rs.10,000 Crores.

Given its parentage and its financial expertise, the company is confident of offering good

long-term returns to its policyholders. Speaking on this Mr. Satwalekar said, "Our

investment philosophy and cost consciousness together will help us in providing good long

term growth to policyholders on their investments with us. This is evident in the

performance of our equity based unit linked funds which have outperformed most indices


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over the last one year".

Accident Benefit

An add-on with a life policy. It compensates a policyholder in the event of

death or injury by accident

Annuity

An investment option that makes a series of regular payments to an individual in

exchange for a premium or a series of premia.

Appreciate

To grow in value

Asset

Everything owned or due to a person

Asset allocation

How your investments are spread across various asset classes


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Bond

It is like an IOU. By buying a bond you loan money to a company, a municipality,

state or the Central Government

Bonus

The amount paid as return in a with-profit policy. The bonus, expressed as a

percentage of the sum assured, is generally declared every year. The amount is

linked to the profits earned by the insurer. Depending on the time of withdrawal,

there are two kinds of bonuses reversionary and cash. A reversionary bonus can

be encashed only on maturity of the policy; a cash bonus can be withdrawn when

declared

Budget

It is a tool used to monitor and control expenditures and purchases.

Capital gains

Profit earned from the sale of stocks, mutual fund units and real estate. Long-term

capital gains arise from assets owned for more than a year while short-term capital

gains are made from assets owned for less than a year.


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Compound Interest

Interest computed on principal plus interest accrued during the previous periods of

the investment

Corpus

The amount of money available with a scheme for investing. If already invested,

the corpus is the current value of the schemes portfolio.

Cost averaging

A strategy that involves investing a fixed amount of money in an asset class like

equity, so that the average cost of acquiring the asset in the long-term is much

lower than that in the short-term.

Cover

Another word for insurance; it also refers to the amount of insurance.

Critical illness rider

A rider that provides a policyholder financial protection in the event of a critical

illness

Death benefit

The amount payable to the nominee on death of the policyholder. The amount paid


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is the sum assured plus benefits applicable (if any) less outstanding loans.

Declining term cover

A type of pure life protection insurance policy where the premia remain the same

while the life coverage keeps declining. They are typically used to cover the life of

a person with a pending loan repayment, like home loan.

Deferred annuity

An annuity plan where the first annuity payment becomes payable after a chosen

period that exceeds one year.

Discretionary expenses

These are expenses like entertainment, dining out and non-compulsory travel that

you can reduce at will.

Disability / dismemberment benefit rider

A rider that provides for additional cover in the event of disability, or

dismemberment, of the policy holder due to an accident

Dividends

Payments made by companies and mutual funds to shareholders and unit-holders,

respectively, from the income generated by it.

Down payment


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The money that a home buyer has to contribute, often at least 15 per cent of the

value of the house, when he is taking a home loan.

Dividend yield

The percentage of dividend paid on a share to the value of the share.

Emergency fund

The money, in the form of liquid investments in bank savings accounts, two-in-one

accounts and liquid funds, you need, to take care of emergencies like a job loss that

your insurance policies wouldnt cover

Endowment plans

An insurance plan that provides a policyholder risk cover and some return on

investment. Usually suitable for the risk-averse

Effective rate of interest

The true rate as against the nominal rate, which may be incorrect.

Estate

All assets of a person, both financial-like stocks, bonds, mutual funds and fixed

deposits and physical-like a house and gold that can be passed on to his heirs.


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Estate planning

A financial plan to ensure the transfer of all your assets-both financial, such as

fixed deposits and stocks and physical, such as home, after your death to your heirs

without any delay or loss.

Exclusions

Risks and circumstances not covered by a policy. No claim will be entertained in

case of losses arising out of such situations

ELSS (equity-linked savings schemes)

Diversified equity funds that additionally offer a tax deduction under Section 80C

on investments up to Rs.1 lack.

EMI (equated monthly installment)

A borrower must make this payment each month towards repayment of interest and

principal of a loan taken by him.

Equity

The actual ownership interest in a specific asset or group of assets

Financial planning

It covers the essential elements of a persons financial affairs and is aimed at


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achieving a persons financial goals.

Fixed deposit

Funds placed on deposit in a bank, company or post office at a fixed rate of

interest.

Fixed-income investment

Any investment that provides a stated percentage of value, say 6 per cent, on the

invested amount.

Fixed rate loan

Interest rate charged on a loan that remains fixed during the tenure of the loan

Floating rate loan

Interest rate charged on a loan benchmarked to a particular lending rate. The rate

gets adjusted during the tenure of the loan as the benchmark interest rate changes.

Group Insurance

An insurance policy taken out by employers to provide life cover to their

employees. Usually the cheapest form of insurance.

Guaranteed additions


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The amount paid as returns in assured-return insurance plans. Guaranteed additions

are expressed as a percentage of the sum assured, with the amount payable being

stated by the insurer at the outset.

Hospital cash benefit rider

A rider that provides cover for hospitalization

Immediate annuity

An annuity that starts payments immediately after, or soon after, the first premium

is paid

Index fund

A scheme whose portfolio mirrors the progress of a particular index, both in terms

of composition and individual stock weight ages. Its a passive investment option,

as a funds performance will mimic the index concerned, barring a minor tracking

error.

Insured

The policyholder


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Insurer

The insurance company

Investments

Assets like fixed deposits, post office savings, bonds and stocks that are acquired

for the purpose of earning a return

Investment risks

The risks that your investments face. These include the risk of interest rate

fluctuations impacting your debt investments or the prices of equities going down.

Level term cover rider

A rider that increases the life cover in non-term plans, up to a maximum of the sum

assured on the base policy. The rider offers death benefit along, and serves the need

for extra protection for a specified time period.

Liabilities

Monies owed, debt and other financial obligations of a person

Life annuity

An annuity that makes regular income payments till the policyholder is alive. On

the policyholders death, all income payments cease and there are no beneficiary


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Maturity date

The date on which a policy term or fixed-income investment like fixed deposit or

bond comes to an end.

Money-back plans

A variant of endowment plans in which survival benefits are disbursed through the

policy term, rather than in a lump sum at the end.

Net asset value (NAV)

The simplest measure of how a scheme is performing, it tells how much each unit

of it is worth at any point in time. A schemes NAV is its net assets (the market

value of the financial securities it owns minus whatever it owes) divided by the

number of units it has issued.

Nominee

The person(s) nominated by the policyholder to receive the policy benefits in the

event of his death.


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Participative plans

See with-profit policy

Pension Plan

Investment products offered by insurance companies and mutual funds that

required the investor to make defined contributions over regular periods, mostly

every year. The contributions are invested according to a pre-decided investment

plan. At retirement, the accumulation is paid out through regular pay-out options.

Periodic payment investments

Investment options that have payouts in fixed intervals. For example, money-back

life insurance policies.

Permanent partial disability

Permanent loss of any body part, one eye, one limb or one finger or a toe, or

injuries that render the insured in capable of earning an income from the date of the

accident onwards from any work, occupation or profession. While the loss of the

body part may be permanent, its effects on the insureds life are partial.

Permanent total disability

Permanent loss of use of any two limbs, or permanent and complete loss of sight in

both eyes and any other injury that renders the insured incapable of earning an

income. Cover this risk to secure your wealth.


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Policy

The legal document issued by an insurance company to a policyholder that states

the terms and conditions of an insurance contract.

Policyholder

The person who buys an insurance policy. Also referred to as the insured.

Policy term

The period for which an insurance policy provides cover

Post office schemes

Also known as Small Savings schemes, they are offered at post offices and carry

the highest returns among fixed income instruments. Government backing makes

these instruments like Public Provident Fund (PPF), National Savings Certificate

(NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme

(POMIS) risk-free

Pre-payment

Partial or full repayment of the loan before the end of the tenure.

Premium

The amount paid by the insured to the insurer to buy cover


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Recurring deposit

This is offered both in post office and banks where you are required to contribute a

fixed amount ever month. It is a great tool for making small and regular savings.

Rest

The frequency at which interest is calculated on the outstanding loan balance. The

more regularly the interest is calculated on t

A Project Report on Customer Awareness Level in Market for HDFC Standard Life Insurance Corporation...

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