customer satisfection referance to hdfc.doc
-
Upload
harmeet-singh -
Category
Documents
-
view
226 -
download
0
Transcript of customer satisfection referance to hdfc.doc
-
7/29/2019 customer satisfection referance to hdfc.doc
1/83
A
PROJECT REPORT
ONCustomer Satisfaction Level
With Reference to
HDFC STANDERD life insurance company.
Submitted to
Submitted By
-
7/29/2019 customer satisfection referance to hdfc.doc
2/83
Lect.Puneet Garg
A
Avinash Bansal
MBA
3rd
94692
237610
2
-
7/29/2019 customer satisfection referance to hdfc.doc
3/83
CONTENTS
S.NO TOPIC P.NO.
1. Acknowledgement 4
2. Executive summary 53. CHAPTER 1. Introduction 7-33
4. CHAPTER 2. Main project 34-36
5. CHAPTER 3. Research methodology & data base 37-39
6. CHAPTER 4. Theoretical framework 40-54
7. CHAPTER 5. Data analysis and interpretation 55-69
8. CHAPTER 6. Conclusion 70-719. CHAPTER 7. Findings 72-73
10. CHAPTER 8. Suggestions 74-75
11. Future possibilities 76
12. Bibliography 77
13. Annexure 79-81
3
-
7/29/2019 customer satisfection referance to hdfc.doc
4/83
LIST OF GRAPHSLIST OF GRAPHS
S.NO. TOPICS.NO. TOPIC P.NOP.NO11. Market share of private companies 53. Market share of private companies 53
2. Awareness in life insurance 562. Awareness in life insurance 56
3. Source of awareness 573. Source of awareness 57
4. Needs of insurance 584. Needs of insurance 58
5. Opinion for insurance 595. Opinion for insurance 59
6. Whether insured 606. Whether insured 607. Insurance preference 617. Insurance preference 61
8. Customer satisfaction 628. Customer satisfaction 62
9. Customer preference 639. Customer preference 63
10. Investment area 6410. Investment area 64
11. Pension plan 6511. Pension plan 65
12. Compulsion of insurance plan 6612. Compulsion of insurance plan 66
4
-
7/29/2019 customer satisfection referance to hdfc.doc
5/83
ACKNOWLEDGEMENT
My just and foremost thanks go to my training Supervisor Mr. Joginder
Pa l Go yal (Branch Ma na ger ) & Mr . Gurp reet Si ngh (Business
Development Manager) under whose guidance and superv is ion the
present study was conducted.
His sympathet ic and encouraging att i tude was the basis, which made
the study possible.
I am obl iged to a ll the respondents for the ir support by p roviding
valuable Information, which provides a milestone for the study.
Last but not least, I would also l ike to thanks a host of other off ic ia ls
for their Active help and cooperation at each stage of the study.
Final ly I would l ike to thanks my respected and loving parents, who
kept motivating me in completing the summer training and report, with
their valuable suggestions and guidance.
DATE: SIGNATURE:
PLACE: AVINASH BANSAL
5
-
7/29/2019 customer satisfection referance to hdfc.doc
6/83
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
6
-
7/29/2019 customer satisfection referance to hdfc.doc
7/83
EXECUTIVE SUMMARY
The objective of this project was to assist HDFC STANDERD LIFE INSURANCE in
positioning the important role of life insurance sector as an investment being a
leading private life insurance company. For the company to successfully achieve
this, it needs to understand the general publics priorities and feedback so as to
provide them the best solutions through use of superior and flexible products and
services.
This was achieved through a four pronged efforts.
TheFirstobjective of the study isto analyze the general lifestyle of the people (Age,
Occupation & Income scenario) in the region.
The Second objective of the project was to study the opinion of the general public
regarding various preferable investment areas and most important criteria in
investment for them.
The Thirdobjective of the project was to study the role of life insurance sector as an
important tool of investment with different criteria options in it with the help of the
present standing of different life insurance companies.
The Fourth objective was to understand the various challenges before our company
so as to increase the overall Satisfaction level with the company, hereby improving
their retention.
The research methodology consisted of a survey using simple Questionnaire with
the general public mostly based in Chandigarh, and Mohali. The questionnaire used
is given at the end of report.
7
-
7/29/2019 customer satisfection referance to hdfc.doc
8/838
-
7/29/2019 customer satisfection referance to hdfc.doc
9/83
CHAPTER NO .1CHAPTER NO .1
9
-
7/29/2019 customer satisfection referance to hdfc.doc
10/83
Profile ofProfile of
HDFC Standard LifeHDFC Standard Life
InsuranceInsurance
10
-
7/29/2019 customer satisfection referance to hdfc.doc
11/83
HDFC Standard life Insurance
HDFC Standard Life Insurance Company is a joint venture between Indias largest
housing finance provider, HDFC, and Europes largest mutual life Assurance
Company. Standard life assurance company UK.
The partnership
Incorporation of HDFC Standard Life Insurance Company limited.
Our Mission.
Our Values.
The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to enter the
Life Insurance market, in January 1995. It was clear from the Outset that both
companies shared similar values and beliefs and a strong relationship quickly
formed. In October 1995 the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening
the relationship.
The next three years were filled with uncertainty, due to changes in government and
Ongoing delays in getting the IRDA (Insurance Regulatory and Development
authority) Act passed in parliament. Despite this companies remained firmly
committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource
made available. Around this time standard Life purchased 2% of Infrastructure
Development finance Company Ltd. (IDFC). Standard Life also started to use the
Services of the HDFC Treasury department to advise them upon their investments In
India
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level.
11
-
7/29/2019 customer satisfection referance to hdfc.doc
12/83
Therefore, in January 2000an expert team the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5%
stake in HDFC Bank. In a further development Standard Life agreed to participate in
the Asset Management Company promoted by HDFC to enter the mutual fund
market. The Mutual Fund was launched on 20th July 2000.
Incorporation of HDFC Standard Life Insurance CompanyLimited:
The company was incorporated on 14th August 2000 under the name of HDFC
Standard Life Insurance Company Limited. Our ambition from as far back as October
1995 was to be the first private company to re-enter the life insurance market in
India. On the 23rd of October 2000, this ambition was realized when HDFC Standard
Life was the only life company to be granted a certificate of Registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC
Group, this is the maximum investment allowed under current regulations. HDFC
And Standard Life have a long and close relationship built upon shared values andTrust. The ambition of HDFC Standard Life is to mirror the success of the parent
Companies and be the yardstick by which all other insurance companys in India are
measured.
12
-
7/29/2019 customer satisfection referance to hdfc.doc
13/83
Our Mission:
We aim to be the top new life insurance company in the market .This does not just
mean being the largest or the most productive company in the market, it is a
combination of several things like
Customer service of the highest order.
Value for money for customers.
Professionalism in carrying out business.
Innovative products to cater to different needs of different customers
Use of technology to improve service standards.
Increasing market share.
13
-
7/29/2019 customer satisfection referance to hdfc.doc
14/83
Our Values:
SECURITY:Providing long term financial security to our policy holders will be our constant
endeavor. We will be doing this by offering life insurance and pension products.
TRUST:We appreciate the trust placed by our policy holders in us. Hence, we will aim to
manage their investments very carefully and live up to this trust.
INNOVATION:Recognizing the different needs of our customers, we will be offering a range of
innovative products to meet these needs.
Our mission is to be the best new life insurance company in India and these are the
values that will guide us in this.
-------------
14
-
7/29/2019 customer satisfection referance to hdfc.doc
15/83
GROUP COMPANIES:
HDFC was incorporated in 1977 with the primary objective of meeting a social Need-
that of promoting home ownership by providing long-term finance to Households for
their housing needs. HDFC was promoted with an initial share Capital of RS.100
million. HDFC is a professionally managed organization with a Board of directors
consisting of eminent person who represent various fields Including finance, taxation,
construction and urban policy & development.
HDFC BANK LIMITED:
The housing development finance corporation limited (HDFC) was amongst the
first to receive an in principle approval from the reserve bank of India (RBI)
to set up bank in the private sector, as part of RBIs liberalization of The Indian
banking industry in 1994. The bank was incorporated in august 1994 in the name
of HDFC BANK LIMITED, with its registered office in Mumbai, India. Banks
aim is to build sound customer franchises across distinct businesses so as to be
the preferred provider of banking services in the segments that the bank
operates in and to achieve healthy growth in profitability, consistent with the
banks risk appetite.
HDFC ASSET MANAGEMENT COMPANY LIMITED:
A mutual fund is a common pool of money in to which investors with common
Investment objective place their contributions that are to be invested in accordance
With the stated investment objective of the scheme. The investment manager would
invest the money collected from the investor in to assets that are defined/ permitted
by the stated objectives of the scheme. For example, an equity fund would invest
Equity and equity related instruments and a debt fund would invest in bonds,
Debentures, gilts etc. The mission is to provide customers with the most useful
investment guidance and investment related service available in the country. It is a
One stop solution for all investment needs, one that will help you get the most outOf your money.
15
-
7/29/2019 customer satisfection referance to hdfc.doc
16/83
HDFC SECURITIES LIMITED:
HDFC securities is a brand brought by HDFC Securities Ltd, which has been
Promoted by the HDFC Bank & HDFC with the objective of providing the diverse
Customer bases of the HDFC Group and other investors a capability to transact in
The stock exchanges & other financial market transactions. HDFC securities will
Equip with the necessary tools to allocate, select and manage investments wisely,
and
Support it with the highest standards of service, convenience and hassle-free trading
tools.
HDFC REALTY LIMTED:
HDFC realty.com is a real estate site that aims to bring credibility and trust to
property dealers. At HDFC realty.com one can meet Customer Relationship
Manager for any assistance one may require stages of property dealing.
HDFC CHUBB GENERAL INSURANCE COMPANY LIMITED:
Its a partnership that leverages the strengths of financial powerhouse combining the
Trust and local experience of HDFC, with the 120 years proven expertise of Chubb.
Individually, you can count on specialized products that cover not only you and
Your family (Personal Accident, Travel and Health Insurance) but also your
Possessions (Motor and Home Insurance).For businesses, theres a range of
Innovative commercial and Specialty Insurance offerings that can be custom
Designed to deliver peace of mind to your employees and superior value to
Organization.
SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues. SWOT stands for
16
-
7/29/2019 customer satisfection referance to hdfc.doc
17/83
Strengths, weaknesses, opportunities, and threats. Strengths and Weaknesses
are internal factors. Opportunities and threats are external factors.
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
In SWOT, Strengths and weaknesses are internal factors. For examples:
Strength could be:-
Your specialist marketing expertise.
A new, innovative product or service.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds values to your product or
Service.
A weakness could be:
17
-
7/29/2019 customer satisfection referance to hdfc.doc
18/83
Lack of marketing expertise.
Undifferentiated products or services (i.e. in relation to your competitors)
Location of your business.
Poor quality goods or services.
Damaged reputation.
In SWOT, opportunities and threats are external factors. For example:
An Opportunity could be:
A developing market such as the Internet.
Mergers, joint ventures or strategic alliances.
Moving into new market segments that offer improved profits.
A new international market
A market vacated by an ineffective competitor.
A threat could be:
A new competitor in your home market.
Price wars with competitors.
Price wars with competitors.
A competitor has a new, innovation product or service.
Competitors have superior access to channels of distribution.
Taxation is introduced on your product or service.
18
-
7/29/2019 customer satisfection referance to hdfc.doc
19/83
Simple rules for successful SWOT analysis
Be realistic about the strengths and weaknesses of your organization when
conducting SWOT analysis.
SWOT analysis should distinguish between where your organization is today,
and where it could be in the future?
SWOT should always be specific. Avoid grey areas.
Always apply SWOT in relation to your competition i.e.Better than or worse
than your competition
Keep your SWOT short and simple. Avoid complexity and over analysis.
SWOT is subjective.
19
-
7/29/2019 customer satisfection referance to hdfc.doc
20/83
STREANGTHS
Strong tie up.
Brand Equity.
Strong Network.
Huge customer
database.
Strong financial base.
WEAKNESSES
Low customer awareness.
Less promotion.
OPPORTUNITIES
Large uninsuredPopulation.
Network building.
Targeting the ruralSegment.
THREATS
Large uninsuredPopulation.
Network building.
Targeting the ruralSegment.
20
-
7/29/2019 customer satisfection referance to hdfc.doc
21/83
Products and policiesProducts and policies
Standard Life Insurance (HDFC STANDARD LIFE PRODUCTS):
Saving Plans:
Endowment Assurance Plan. Life Insurance With Saving.
Childrens Plan. Financial Security For Your Child.
Money Back Plan. Life Insurance With Saving.
Investment Plan:
Single Premium Whole Of LifePlan.
Investment With LifeInsurance.
Protection Plan:
Term Assurance Plan. Life Insurance At An Affordable Price.
Loan Cover Term Assurance. Life Insurance Customized For HomeLoans.
Retirement Plans:
Personal Pension Plan. Saving For Retirement.
21
-
7/29/2019 customer satisfection referance to hdfc.doc
22/83
Unit Linked Plan:
Unit Linked Pension Plan. Making your money work, for acomfortable retired life.
Young Star Supar Plan. Build up your investment for your childsfuture.
Unit Linked Endowment Plan. Life insurance with saving.
SAVING PLANS:
Endowment Assurance Plan:
It is a participating (with profits) insurance plan that offers the following features:
Provides financial support to the family by way of a lump sum payment in case of the
unfortunate death of the life assured within the term of policy.
Provides a lump sum payment to the life assured on survival up to maturity. The
lump sum payment to the basic sum assured plus any bonus additions. This Plan
is a wish profits saving plan and is well suited for saving money for your Long-
term financial goals. This Plan also helps provide for the needs of your family In
your absence by paying death during term of the policy.
Min.term: 10 years. Max.term: 30 years
Childrens Plan:
Childrens Plan gives you:
Invaluable financial support to your child.
Helps you customize an ideal plan for your child.
22
-
7/29/2019 customer satisfection referance to hdfc.doc
23/83
Provides you multiple options for multiple benefits.Childrens plan is designed to secure your child future by giving your child a
guaranteed lump sum, on maturity or in case of your unfortunate demise, Early in the
policy term. The premiums, paid by you, are invested by the company to give you
good term returns. The plan receives simple reversionary bonuses, which are usually
added annual.
You will have the choice of 3 options at the start of the policy.
PLAN OPTION. DEATH BENEFIT. MATURITY BENEFIT.
Maturity BenefitsPlan.
Future premiums waivedAnd the policy continuesTill maturity.
Sum assured bonusesPaid.
Accelerated BenefitPlan.
Sum assured + Bonusespaid and the policy stops.
On the survival of theinsured parent to thematurity date,Sum assured + Bonuses
paid.Double benefitsPlan.
Sum assured paid, futurepremiums waived, and thepolicy continues till maturity.
Sum assured bonusesPaid.
The eligibility ages for the life assured under the plan are as Follows:
Minimum Age at Entry 18 years.
Maximum Age at Entry 60 years.
Maximum Age at Maturity 75 years.
Minimum Term: 10 years Maximum Term: 25 years.
23
-
7/29/2019 customer satisfection referance to hdfc.doc
24/83
Money Back Plan:
It is a participating (with profits) insurance plan that offers the following
Features:
Payment of cash lump sums, each of which is a proportion of the basic sum
assured, at 5 year intervals during the term of policy.
On survival up to maturity, equal to the basic sum assured plus any bonus
Additions less the cash lump sum paid earlier is provided. In case of the
unfortunate death of life assured within the term of the policy, the basic sum
assured plus any bonus additions is provided. This is over and Above the earlier
Payouts.
INVESTMENT PLAN:
SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN
Single Premium Whole of life Insurance Plan is well suited to meet your long term
investment needs. This participating (with profits) Plan offers you the following
benefits:
A sound investment:
Your money will be invested in our with profits fund. The fund aims to provide secure
and stable long-term growth. Normally, we will declare a compound reversionary
bonus for your policy every year and add it to your policy on its anniversary. In
addition, on death, surrender or on the guaranteed dates, a terminal bonus might be
payable. You pay a single premium and the policy will pay you a lump sum.
24
-
7/29/2019 customer satisfection referance to hdfc.doc
25/83
Flexibility of term:
Even after choosing your policy, you can decide on the policy Term. For 4 weeks
after may one of the 10th, 15th, 20th, and Subsequent five-year Anniversaries, you
can choose to receive the sum assured Plus any attaching Bonuses, in full. Once the
money has been received, your Policy will cease.
Surrender value:
You can terminate the policy any time, after it has been in force for at least 6 months
and receive a surrender value. In case of unfortunate Death your nominee gets the
sum assured secured by your premium, plus any attaching bonuses. No medical
requirements we do not require you to undergo any medical test for this plan.
Minimum age at entry : 18 years.
Maximum age at entry : 70 years.
25
-
7/29/2019 customer satisfection referance to hdfc.doc
26/83
PROTECTION PLANS:
1. Term Assurance plan:
Under this plan, a sum assured is payable in case of the contact. One can choose
the lump sum that would replace the income lost to ones family in the Unfortunate
Event of ones death. Since this non-participating (without profits) Plan is a pure risk
cover plan, no benefits are payable on survival to the end of the term of the policy.
Why should you buy this product?
If you have a family that you care for, you should consider what would happen In
case of your unfortunate death. The emotional void cannot be filled, but financial
insecurity can be avoided. By taking this affordable life insurance Plan, you can
provide for the well benign of your family in case of your Unfortunate death. This plan
comes to you at a minimum cost and is well-suited for the value-conscious customer.
Minimum Age: 18 Maximum: 60
2. Loan cover Term Assurance Plan:
Loan Cover term Assurance (LCTA) Plan provides a lump sum on the Unfortunate
death of the life assured during the term of the plan. The lump sum will be a
decreasing percentage of the initial sum assured. As the outstanding Loan
decreases as per the loan schedule, the cover under the Policy decreases as per the
loan schedule. Since this is a non-participating (without profits) pure risk Cover plan,no benefits are payable on survival to the end of the term of the Policy.
26
-
7/29/2019 customer satisfection referance to hdfc.doc
27/83
Retirement Plan :
This participating (with profits) plan is basically a savings contract, which is designed
to provide an income for life from retirement. It doses this by accumulating a notional
lump sum on retirement, comprising of sum assured plus any attaching bonus.
Subject to the prevailing regulations, part of this lump Sum can be taken in form of
cash and the rest converted to an annuity at the rate then offered. Alternatively, if it is
permitted by the prevailing regulations, the Notional lump sum can be used to buy an
annuity with any other insurance Company who will accept such business. On
earlier death after the first year, for Regular Premium policies all premiums Paid to
date will be returned with compound interest calculated at 8% per annum Subject to
a maximum of the sum assured plus bonuses declared to date. For Single
premiums, it is sum assured plus bonuses declared to date. Normally, we will
declare a reversionary bonus once a year. Once added, it cannot be reduced.
Reversionary bonus will take the form of a simple addition to your Policy benefits. In
addition, on maturity, a terminal bonus, reflecting the period since the last addition of
reversionary bonus, also be payable.
Unit Linked Plans:
1. Unit linked Pension Plan:
The Unit Linked Pension Plan is an insurance policy that is designed to providing a
retirement income for life with the freedom to maximize your investment returns by
providing a choice of thoroughly researched and selected investments. You can
choose your premium and selected investment Funds. At the end of the policy term,
you will receive the accumulated value of your funds, which will be used to provide
your pension income. In the event of your unfortunate demise during the policy term,
your spouse will receive a cash lump sum to help him or her manage their retirement
years.
27
-
7/29/2019 customer satisfection referance to hdfc.doc
28/83
Benefits :-
Provides a post retirement income for life.
Gives you the flexibility to plan your retirement date.
Gives you the freedom to invest premiums as per your preference.
Offers you potentially higher market linked returns.
Gives you tax benefits on your premiums and on receiving the lump
Sum.
Your investment will buy 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:-
a) Liquid fund:-
Extremely low capital risk.
Very stable returns.
The liquid fund invests 100% in bank deposits and high quality short-term
Money market instruments.
b) Secure Managed:-
More capital stability than equity funds.
Higher potential fund than liquid fund.
The Secure Managed fund invests 100% in Government Securities and Bonds
Issued By companies or other bodies with a high credit standing. However, a Small
Amount Of working capital may be invested in cash to facilitate the day-to-Day
28
-
7/29/2019 customer satisfection referance to hdfc.doc
29/83
Running of The fund. This fund has a low level of risk but unit prices may still go or
down.
c) Defensive Managed:-
Access to better long-term returns through equities.
Significant bond exposure keeps risk down.
15% to 30% of the Defensive Managed fund will be invested in high quality Indian
Equities. The remainder (70% to 85%) will be invested in Government Securities and
Bonds issued by companies or other bodies with a high credit standing. In Addition,
a small amount of working capital may be invested in cash to facilitate the Day-to-
day running of the fund. The fund has a moderate level of risk with the Opportunity to
earn higher returns in the long term from some equity investment Unit price may go
up or down.
d) Balance Managed:-
Further increased exposure to equities to give a greater long-term Return.
A smaller bond holding will aid diversification and provide a little Stability.
The day-to-day running of the fund. The fund has high level of risk with the
Opportunity to earn higher returns in the long term from some equity Investment Unit
price may go up or down.
e) Equity managed fund:-
Further increased exposure to equities to give a greater long-term return.
A smaller bond holding will aid diversification and provide a little Stability.
The fund has very high level of risk 60% to 90% of the equity Managed fund will beinvested in high quality Indian equities. The remainder will be invested in
29
-
7/29/2019 customer satisfection referance to hdfc.doc
30/83
Government Securities and Bonds issued by companies or other Bodies With a high
credit standing.
f) Growth fund:-
For those who wish to maximize returns.
100% investment in high level of risk with the opportunity to maximize the
returns.
2. Unit Linked Young Supar Star Plan:
Young Star Supar Plan Gives You:
An outstanding investment opportunity by providing a choice of Thoroughly
researched and selected investments.
Valuable protection in case of the insured parents unfortunate demise.
Very flexible benefits combinations and payment options.
Flexible additional benefits options such as critical illness cover.
You can choose your premium and the investment fund or funds. Your Premium will
then be invested, net of charges in your chosen funds in the Proportion you specify.
At the end of the policy term, you will receive the Accumulated value of your funds.In case of your unfortunate demise during the policy term, company will continue the
policy and continue to pay the original premiums you had Chosen. Your family will
receive the sum assured you had chosen plus the Fund build up by your and
companys contributions. Your investment will buy in any of 5 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 5 funds:-
30
-
7/29/2019 customer satisfection referance to hdfc.doc
31/83
I. Liquid fund.
II. Secure managed fund
III. Defensive managed fund.
IV. Balance managed fund.
V. Growth fund.
Type of benefits providing by unit linked young star plan:-
Death benefits:
a) We will pay the sum assured to the beneficiary.
b) Your family need not pay any future premiums.
c) We will pay future premiums on your behalf.
d) Any critical illness cover terminates immediately.
Maturity benefits:
We will pay to the beneficiary the value of the accumulated fund.
The fund value will include all contributions paid by you and the life Insurance
company, plus all investment growth, less charges.
I. Liquid fund :
The Liquid fund invests 100% in bank deposits and high quality short-term moneyMarket instruments. The fund is designed to be cash secure and has a very low level
of risk; however, unit price may occasionally go down due to the use of short-term
Money market instruments. At inception, investments up to 20% can be allocated to
this fund.
31
-
7/29/2019 customer satisfection referance to hdfc.doc
32/83
II. Secure Managed:-
The Secure Managed fund invests 100% in Government Securities and Bonds
Issued By companies or other bodies with a high credit standing. However, a small
amount of working capital may be invested in cash to facilitate the day-to-day
running of the fund. This fund has a low level of risk but unit prices may still go up or
down.
III. Defensive Managed:-
15% to 30% of the defensive Managed found will be invested in high quality IndianEquities. The remainder will be invested in Government Securities and Bonds issued
by companies or other bodies with a high credit standing. In addition, a small Amount
of working capital may be invested in cash to facilitate the day-to-day Running of the
fund. The fund has a moderate level of risk with the opportunity to earn higher
returns in the long term some equity investment. Unit price may go up or down.
IV. Balanced Managed:-
30% to 60% of the Balanced Managed fund will be invested in high qualities Indian
equities. The remainder will be invested in Government Securities and Bonds is
issued by companies or other bodies with a high credit standing. In addition, a small
Amount of working capital may be invested in cash to facilitate the day-to-day
Running of the fund. The fund has a high level of risk with the opportunity to earnhigher returns in the long term from some equity investment. Unit prices may go or
down.
V. Growth fund:-
The Growth fund invested 100% in high quality Indian equities. In addition, a small
Amount of working capital may be invested in cash to facilitate the day-to-day
Running of the fund. The fund has very high level of risk with the opportunity to earn
32
-
7/29/2019 customer satisfection referance to hdfc.doc
33/83
higher returns in the long term from the investment in equities. Unit prices May go up
or down.
3. Unit Linked endowment Plan:-
Unit Linked endowment plan gives you:-
An outstanding investment opportunity by providing a choice of thoroughly
Researched and selected investments.
Valuable protection in case of the insured lifes unfortunate death.
Flexible benefits combinations and payment options.
Flexible additional benefits options such as critical illness cover.
Access to your accumulated fund before maturity.
You can choose your premium and investment fund or funds. Your premium will then
be invested, net of charges in your chosen funds in the proportion you specify. At the
end of the policy term, you will receive the accumulated value of your funds. In case
of your unfortunate demise during the policy term, company will pay the greater of
your sum assured (less any with drawls you have made) and your total fund value to
your family. Your investment will buy in any of 5 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 5 funds:-
a) Liquid Fund:-
Extremely low capital risk.
Very stable returns.
33
-
7/29/2019 customer satisfection referance to hdfc.doc
34/83
The liquid fund invests 100% in bank deposits and high quality short-term money
Market instruments.
b) Secure Managed:-
More capital stability than equity funds.
Higher potential than liquid fund.
The Secure Managed fund invests 100% in Government Security and Bonds issued
by companies or other bodies with a high credit standing. However, a small Amount
of working capital may be invested in cash to facilitate the day to- day running of
the fund. This fund has a low level of risk but unit price may still go up or down.
c) Defensive Managed:-
Access to better long-term returns through equities.
Significant bond exposure keeps risk down.
15% to 30% of the defensive Managed found will be invested in high quality Indian
equities. The remainder (70% to 85%) will be invested in Government Securities and
Bonds issued by companies or other bodies with a high credit standing. In Addition,
a small amount of working capital may be invested in cash to facilitate the Day-to-
day Running of the fund. The fund has a moderate level of Risk with the opportunity
to earn higher returns in the long term some equity Investment. Unit Price may go up
or down.
d) Balance Managed:-
Increased equity exposure gives better long-term return.
34
-
7/29/2019 customer satisfection referance to hdfc.doc
35/83
Bond exposure providing some stability.
The fund has a high level of risk with opportunity to earn higher returns in the long
from some equity investment. Unit price may go up or down.
e) Growth fund:-
For those who wish to maximize their returns.
100% investment in high quality Indian equities.
The fund has very high level of risk with the opportunity to maximize the Returns.
The past performance of any of the fund is not necessarily an indication of future
performance. There are no investment guarantees on the returns of unit linked
Funds.
35
-
7/29/2019 customer satisfection referance to hdfc.doc
36/83
CHAPTER 2CHAPTER 2
MAIN PROJECTMAIN PROJECT
36
-
7/29/2019 customer satisfection referance to hdfc.doc
37/83
OBJECTIVE
37
-
7/29/2019 customer satisfection referance to hdfc.doc
38/83
PROJECT OBJECTIVE
The insurance industry has never been in such lime light as it is now. It is witnessing
an unprecedented boom. The massive upheaval in insurance sector Has Opened
Gates for private insurance as well. The Indian market of life Insurance is flooded
with private companies vying with each other to create a Niche for themselves. This
Project undertaken is a market survey pertaining to Mind set and Inclination towards
the life insurance.
The project undertaken shall meet the following objectives:-
To have an overview of insurance of HDFC Standard Life Insurance.
Making an Analysis of customers of Life Insurance among customers.
Making suggestions & recommendations for Improvements.
Investment Criteria.
Most Important Investment Area.
38
-
7/29/2019 customer satisfection referance to hdfc.doc
39/83
CHAPTER 3
Research Methodology
And
Data Base
39
-
7/29/2019 customer satisfection referance to hdfc.doc
40/83
Research Methodology and Data
Base
Research methodology is a way to systematically solve the research problem. It Maybe understood as a science of studying how research is done scientifically. In it we
study the various steps, the research process that is generally adopted to Study the
research problem and marketing research is a systematic and objective of study
problems pertaining to the marketing of goods and services. Market research
specifies the information required to address these issues; designs the method of
collecting information; analyses the results and communicating the findings and their
implications. The basic steps in this Research are shown in the chart below:-
The Research Process:-
40
Define the research problem and its
ob ectives
Review concepts and theories
Collection of data survey
Research design including sample
design
-
7/29/2019 customer satisfection referance to hdfc.doc
41/83
Data Collection
Data has been collected both from primary as well as secondary sources as
Described below:
Primary sources:-
The primary source of data was Questionnaires conducted as part of the Survey.
This data forms the backbone of the analysis of the customers Requirements. The
survey is described in detail in the following section:
The sample size of 100 was taken and almost all questionnaires were filled andSource of Income was salaried class, Businessmen & Professional, Student and Age
group was 20 to 55 years.
Secondary sources:-
The secondary sources of data were the various websites and
insurance Manuals. This mainly provided information about the
insurance sector and the Companys profile. These helped in gaining
knowledge about the Industry. These sources are listed in References.
Statistical Method Used For Analysis:-
The data collection was done through Filling of Questionnaires mostly based in
Chandigarh and Mohali. And the questionnaire was designed in such a way that it is
self-explanatory. The questionnaire of 12 questions regarding awareness of Life
41
Analysis of data
Interpretation and report writing
-
7/29/2019 customer satisfection referance to hdfc.doc
42/83
insurance and private insurance companies. And the various methods were Used to
Analyses the data as under:-
1. Percentages.
2. Bar Graphs.
3. Tables.
4. Ratios and
5. Figures.
CHAPTER 4CHAPTER 4
THEORITICALTHEORITICAL
FRAMEWORKFRAMEWORK
42
-
7/29/2019 customer satisfection referance to hdfc.doc
43/83
EVOLUTION OF INSURANCEINDUSTRY
Insurance in India
1818 The Britishintroduction life insurance to India, with the establishment of theOriental Life Insurance Company in Calcutta.
1850 Non-life insurance debuts, with triton insurance.
1870 Bombay Mutual Life Assurance Society is the first Indian owned Life
Insurance.
1907 Indian Mercantile Insurance is the first Indian Non Life insurer.
1912 The Indian Life Assurance Companies Act enacted to regulate the life
Insurance business.
1938 Insurance Act, which forms the basis for most current insurance Laws,
replaces earlier acts.
43
-
7/29/2019 customer satisfection referance to hdfc.doc
44/83
1956 Life insurance nationalized; Government takes over companies and
foreign insurers and provident societies.
1956 Government steps up L.I.C.
1972 Non life insurer nationalized; G.I.C. set up.
1973 Malhotra committee recommends re entry of private players, Autonomy to
PUS insurers.
1997 Insurance regulator IRDA (Insurance regulatory and development
Authority) set up.
2000 IRDA starts giving licenses to private insurers; HDFC Standard Insurance
and ICICI Prudential were first private life insurance to Sell Policy.
2001 Royal Sundaram first non life insurer to sell policy.
2002 Banks allowed selling insurance plans.
44
-
7/29/2019 customer satisfection referance to hdfc.doc
45/83
INTRODUCTION TO INSURANCE
WHAT IS INSURANCE?
Insurance is the method of spreading and transfer of risks.
Losses of unfortunate few are shared by and spread over to many exposed to
the same risk.
Assets created by the owner in expectation of future needs or benefits have a
value.
Loss of assets for any reasons deprives the owner of the expected benefit.
Insurance in this context is a mechanism that helps to reduce the adverse
consequences due to loss of assets.
PURPOSE AND NEED FOR INSURANCE
Assets are likely to be destroyed or made non-functional due to perils like fire,
floods, breakdowns, lightning and earthquake.
Damage to assets caused by any peril is the risk that assets are exposed to.
Insurance becomes relevant only if there are uncertainties of occurrence of
event leading to loss.
We can say that human life is an income generating assets which can be lost
on early death or disabilities caused by accidents.
Insurance does not protect the assets but only compensates the economic or
financial loss.
45
-
7/29/2019 customer satisfection referance to hdfc.doc
46/83
ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT
Investments are necessary for economic development.
Life insurance plays a major role in mobilization of public savings.
Savings out of life insurance funds are utilized in investments for growth.
Looking to general insurance business, industry, trade would be seriously
handicapped in the absence of insurance cover relating to fire and
engineering risks.
CLASSIFICATION OF INSURANCE
Life is full of uncertainty. Trials and tribulations abound in each and every aspect of
life. No one can truly predict or even estimate what the future has in store for him.
Life offers no guarantees by itself, except the incidences of death and taxation.
This lack of security present throughout life can be overcome partially through
insurance. Insurance can never replace or repair a loss. But the monetary value
offered by insurance helps in adjusting to the new circumstances.
Despite offering innumerable options and immense scope, insurance can be
classified into four main categories.
Insurance of Person
Insurance of Property
Insurance of Interest
Insurance of Liability
46
http://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofPerson%23InsuranceofPersonhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofProperty%23InsuranceofPropertyhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofLiability%23InsuranceofLiabilityhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofPerson%23InsuranceofPersonhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofProperty%23InsuranceofPropertyhttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofInterest%23InsuranceofInteresthttp://www.insuremagic.com/Content/InsuranceBasics/General/classification.asp#InsuranceofLiability%23InsuranceofLiability -
7/29/2019 customer satisfection referance to hdfc.doc
47/83
Insurance of Person
Under the purview of this class of insurance, the risks associated with human life in
general can be covered up to the limit specified. A person can insure his or her life
and his health against any unplanned contingencies.
In event of his death, his dependants will be reimbursed to the full amount that he
was insured for. Or if the insured person meets with an accident or suffers from an
illness that cripples him forever, he will be compensated with the complete sum
assured anyway since he may not be able to lead a normal life again.
In case, the accident is not that severe, he should be able to recover after medicaltreatment and rehabilitation. If he has opted for medical cover, then his medical
expenses, treatment and medication will be paid for by his insurance policy.
Insurance of Property
Everyone possesses material value in the form of tangible assets. Assets can be in
the form of a landed estate or a vehicle, share holdings or plain old paper money.
Since tangible property has a physical shape and consistency, it is subject to many
risks ranging from fire, allied perils to theft and robbery. An individual's lifetime of
hard work can be wiped out in a blink of an eye.
But if a person judiciously invests in insurance for his property prior to any
unexpected contingency then he will be suitably compensated for his loss as soon as
the extent of damage is ascertained.
Insurance of Interest
Every individual has to discharge certain specific duties. Everyone is expected to
maintain a standard of conduct. But then, it is an intrinsic part of human nature to err.
No one is infallible and no one will ever be.
47
-
7/29/2019 customer satisfection referance to hdfc.doc
48/83
Owing to an occasional error or omission committed by us, our clients or customers
might suffer a loss. In turn we might have to pay those damages or compensation
out of our own personal resources.
However, if our chosen profession qualifies for insurance of interest, then our
insurance policy will more than suffice in arranging for the funds and court formalities
that might ensue in the aftermath of legal libel.
Insurance of Liability
Every person has to regulate his actions and behavior so as not to cause injury or
damage to other people and their property. Everyone is personally responsible andliable for his actions.
If due to lack of control over his actions or prejudiced behavior, a person incurs any
liability then he has to provide compensation out of his personal resources.
Liabilities: legal, civil or criminal can have severe repercussions on social standing
and prestige besides the financial status.
By investing in liability insurance, an individual can ward off any liabilities he might
incur due to his actions and behavior. Besides, the premiums payable on liability
insurance are fairly minimal when compared to the damages that have to be
compensated in the long run.
----------
48
-
7/29/2019 customer satisfection referance to hdfc.doc
49/83
LEGISLATIVELEGISLATIVE ANDAND REGULATORYREGULATORY
MATTERS.MATTERS.
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA)
ACT, 1999
Explanation to the title.
The Authority replaces under this Act an authority called IRDA has been set up.
This is a corporate body established for the purpose and objects as set out in the
Controller under Insurance Act 1938.
The first schedule amends Insurance Act 1938.
It states that if Authority is superseded by Central Government, the Controller of
Insurance may be appointed till such time as Authority is reconstituted.
CONSTITUTION OF IRDA
The Insurance Regulatory and Development Authority consists of the following
members:
1. Chairperson.
2. Less than five whole time members.
3. Less than four part time members.
Members should be persons of Ability, Integrity & Standing.
They should have experience in the fields of
1. Life Insurance
2. General Insurance
49
-
7/29/2019 customer satisfection referance to hdfc.doc
50/83
3. Actuarial Science
4. Finance
5. Economics
6. Law
7. Accountancy
8. Administration
Chairperson, members, officers and other employees of Authority shall be public
servants.
FUNCTIONS OF IRDA
1. To issue certificate of registration, renew, withdraw, suspend or cancel such
registration.
2. To protect the interest of policyholders/insured in the matter of insurance contract
with the insurance company.
3. To specify requisite qualification, code of conduct and training for insurance
intermediaries and agents.
4. To specify code of conduct for surveyors/loss assessors.
5. To promote efficiency in the conduct of insurance business.
6. To promote and regulate professional organizations connected with the insurance
and reinsurance business.
7. To undertake inspection, conduct enquiries and investigations including audit of
insurers and insurance intermediaries.
8. To control and regulate the rates, terms and conditions to be offered by the
insurer regarding general insurance business not so controlled by Tariff Advisory
Committee u/s 604 of Insurance Act, 1938.
9. To regulate investment of funds by the insurance companies.
50
-
7/29/2019 customer satisfection referance to hdfc.doc
51/83
10.To adjudicate dispute between insurers and intermediaries of insurance.
LIFE INSURANCE CORPORATION OF INDIA ACT, 1956
Life insurance business was nationalized in India with effect from 19 th January
1956.
The life insurance business of 154 Indian life offices constituted by 16 non-Indian
insurers operation in India and 75 Provident Societies was taken over by the
Government of India.
LIC of India Act was passed by the Parliament on 18th June 1956 and it came into
effect from 1st July 1956.
----------
51
-
7/29/2019 customer satisfection referance to hdfc.doc
52/83
MA JOR MARKET PLAYERS:
Birla Sun life Insurance Company
Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and
Sun Life Financial. It is a private sector company. The Company was registered on
31/1/2001
HDFC-Standard Life
HDFC-Standard is a 74:26 joint venture between HDFC and Standard Life .It is a
private sector company .The company was registered on 23/10/2000.
ICICI Prudential Life Insurance
ICICI Prudential Life is a joint venture between ICICI and Prudential. It is a private
sector company. The company was registered on 24/11/2000.
Kotak Mahindra Old Mutual
Kotak Mahindra Old Mutual is a 74:26 joint venture between Kotak Mahindra bank
and Old Mutual. It is a private sector company. The Company was registered on
10/1/2001.
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India is a 100% government held Public Sector
Company. Being the first to be established LIC is the forerunner in the life insurance
sector.
Max New York Life
Max New York Life is a 74:26 joint venture between J&K Bank, Pallonji & Co. and
MetLife. It is a private sector company. The company was registered on 6/8/2001.
52
-
7/29/2019 customer satisfection referance to hdfc.doc
53/83
Aviva Life Insurance India
Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur.It is a private
sector company. The company was registered on 14/5/2002.
ING Vysya Life Insurance
ING Vysya Life Insurance is joint venture between Exide (50%)Gujarat Cements
(14.87%),Enam (9.13%) and ING (26%).It is a Private sector Company. The
company was registered on 2/8/2001.
MetLife India
MetLife India is a 74:26 joint venture between 74:26 JV between J & K Bank, Pallonji
& Co and MetLife. It is a private sector Company. The company was registered on
6/8/2001.
Bajaj Allianz Life Insurance Co.
Bajaj Allianz Life Insurance Company is a 74:26 joint venture between Bajaj Auto
limited and Allianz AIG.The Company was registered on 3/8/2001.The market share
for FY 2006-07 was
SBI Life Insurance Company
SBI Life Insurance Company is a 74:26 joint venture between SBI And Cardiff S.A.
The company was registered on 31/3/2001.It is a Private sector Company.
TATA AIG Group
TATA AIG Group is a 74:26 between Tata Group and AIG. It belongs to the private
sector. The company was registered on 12/2/2001.
53
-
7/29/2019 customer satisfection referance to hdfc.doc
54/83
Sahara Indian Life Insurance Company Ltd.
First Wholly Indian Owned Private Life Insurance Company. The Company
commenced operation from 30th October 2004.
Shriram Life Insurance Company Ltd.
Shriram Life is a recent entrant into the life insurance sector it is a 74:26 Joint
venture between the Shriram groups through its Shriram financial Holdings and
Sanlam Life Insurance Limited, South Africa. The Company expects to start
operations soon.
--------------
54
-
7/29/2019 customer satisfection referance to hdfc.doc
55/83
Market Shares (%) of PrivateInsuranceCompanies:
55
M a r k e t S h a r e ( % ) o
c o m p a n i e s .
4 4
34246
42
32
5
3
6
1 2 00
L I C
I C I C I P r u d
S B I L i f eH D F C S t a
B i r l a S u n L
R e l i a n c e L
T a t a A I G
K o t a k M a h
B a j a j A l l i a
A v i v a
M e t L i f e
I N G V y s y a
M a x N e w
S a h a r a L i f
B h a r t i A x a
-
7/29/2019 customer satisfection referance to hdfc.doc
56/83
COMPETITOR S
Indian Promoter Foreign Promoter
ICICI Prudential Plc UK
Aditya Birla Group Sun life Financial, Canada
Kotak Mahindra Finance Old Mutual Plc, South Africa
Max Indian New York Life, USA
Tata Group American International group,
USA
Vyasa Bank ING Group, Nether land
Bajaj Auto Allianz AG
Sanmar Group AMP, Australia
Dadur India Aviva Plc
State Bank Of Indian Cardiff , France
J&K Bank , Pallonji & Co. Metropolitan Life Insurance
56
-
7/29/2019 customer satisfection referance to hdfc.doc
57/83
CHAPTER 5
DATA ANALYSISDATA ANALYSIS
&&
INTERPRETATIONINTERPRETATION
57
-
7/29/2019 customer satisfection referance to hdfc.doc
58/83
Question (1)
Do you know about the term Life Insurance?
1. Yes [ ] 2. No [ ]
YES 100%
NO 0%
AWARENESS IN LIFE-INSURANCE
100%
0%0%
20%
40%
60%
80%
100%
120%
YES NO
Opinion
P
ercentage
100% of people said yes it means that all people are very well aware about Life
insurance. So life insurance companies have done well to inform general Public.
58
-
7/29/2019 customer satisfection referance to hdfc.doc
59/83
Question (2 )
From where did you come to know?
1. Newspaper [ ] 2. Magazines [ ]
3. Electronic Media [ ] 4. Other Sources [ ]
Newspaper 28.34%
Magazines 4.17%
Electronic Media 15.87%
Other Sources 51.62%
SOURCE OF AWARENES
28.34%
4.17%
15.87%
51.62%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Newspaper Magazines Electronic Media Other Sources
Sources
Persentage
Mostof people have come to know about it from other sources which include agents,
relatives, friends etc. Newspapers are doing fairly well. Magazines have not proved a
goodsource.
59
-
7/29/2019 customer satisfection referance to hdfc.doc
60/83
Question (3)
Life Insurance is necessity of Life?
1. Completely Agree [ ]
2. Partially Agree [ ]
3. Disagree [ ]
NEEDS OF INSURANCE
Disagree
1%
Completel
y Agree
95%
Partially
Agree
4%
Approximately all people (95%) agree with the view that it is necessity of Life,
because it has lot of uncertainties.
Completely Agree 95%
Partially Agree 49%
Disagree 1%
60
-
7/29/2019 customer satisfection referance to hdfc.doc
61/83
Question (4)
Why would you go for Life Insurance?
1. Risk Coverage [ ] 2. Investment [ ]
3. Tax Benefits [ ] 4. All of above [ ]
Risk Coverage 36.57%
Investment 3.11%
Tax Benefits 12.81%
All of above 47.51%
36.57%
3.11%
12.81%
47.51%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%50.00%
Risk Coverage Investment Tax Benefits All of above
Opinion
Percentage
So approximatelyhalf of people (47.51%) will go for insurance for all benefits Like
risk coverage, tax benefits and investment. After that risk coverage was Main logic
for getting policy (36.57%).
61
-
7/29/2019 customer satisfection referance to hdfc.doc
62/83
Question (5)
A) Are you insured? If yes, then with which Company?
1. Yes [ ] 2. No [ ]
Yes 85.20%
No 14.80%
85.20%
14.80%
Yes
No
Maximum people of sample area (85.20%) were ensured.
62
-
7/29/2019 customer satisfection referance to hdfc.doc
63/83
B) Insurance Preference
Others,
13.18%
L.I.C,86.82%
L.I.C
Others
LIC is big leader in the insurance industry with share of 86.82%, other Companies
like HDFC Standard life Insurance, ICICI prudential, Max New York, Tata AIG, ING
Vyasa etc. have total of just 13.18% share.
L.I.C 86.20%
Others 13.18%
63
-
7/29/2019 customer satisfection referance to hdfc.doc
64/83
Question (6)
Are you satisfied with the service of your insurance
Agent/company?
1. Yes [ ] 2. No [ ]
COUSTOMER SATISFACTIONS
26%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
YES NO
Opinion
Percentage
Whole sample of people was satisfied, so no company has left any weak spot, On
which other company can take advantage.
YES 74%
NO 26%
64
-
7/29/2019 customer satisfection referance to hdfc.doc
65/83
Question (7)
Which sector would you prefer to get insured from?
1. Govt. [ ] 2. Private. [ ]
81.89% of people are preferring to Govt. Sector for insurance i.e. LIC, because they
think that it is more safe. With other private companies there is risk.
Government 81.89%
Private 18.11%
PREFRENCE OF CUSTOMERS
81.89%
18.11%
Government
Private
65
-
7/29/2019 customer satisfection referance to hdfc.doc
66/83
Question (8)
In what type of instruments would you prefer to Invest?
1. Property [ ] 2. Banks [ ]
3. Security [ ] 4. Insurance [ ]
5. Others [ ]
Property 41.87%
Banks 27.70%
Securities 7.21%
Insurance 18.66%
Others 4.54%
MOST PREFERABLE INVESTMENT AREA
27.70%
7.21%
18.66%
4.54%
41.87%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Property Banks Securities Insurance Others
Investment opinions
Percentage
Good proportion of people (41.87%) would like to invest in property. On Second
preferences are Banks (27.72%).Insurance got (18.66%) preference. Securities got
least preference, as people thought, they are risky & Includes lot of fluctuations in
values.
66
-
7/29/2019 customer satisfection referance to hdfc.doc
67/83
Question ( 9)
Do you have Pension Plan?
1. Yes [ ] 2. No [ ]
94%
6%
Yes
No
It means most of people dont have any pension plan except Govt. pension-plan.
Yes 6%
No 94%
67
-
7/29/2019 customer satisfection referance to hdfc.doc
68/83
Question ( 10)
Should life insurance be made compulsory?
1. Yes [ ] 2. No [ ]
28.40%
71.60%
0.00% 10.00
%
20.00
%
30.00
%
40.00
%
50.00
%
60.00
%
70.00
%
80.00
%
Yes
No
Opin
ion
Percentage
4/5 of people said that life insurance should be made compulsory, provided People
should be able to pay premiums. 28.40% says it should not be made compulsory; it
depends on their own wish.
Yes 71.60%
No 28.40%
68
-
7/29/2019 customer satisfection referance to hdfc.doc
69/83
AGE COMPOSITION:-
AGE COMPOSITION NO. OF PEOPLE
LESS THAN 20YRS 1626YRS TO 35YRS 25
36YRS TO 45YRS 50
46YRS TO 55YRS 9
TOTAL 100
AGE COMPOSITION:
In this market survey most of the people are between the age group of 26-55yrs
which indicates that this report has most of the emphasis (84%) on those people who
are well established in their related field i.e. business, profession, job, etc.
INCOME SCENARIO:-
69
-
7/29/2019 customer satisfection referance to hdfc.doc
70/83
INCOME SCENARIO:
More than half of the people have annual income below 1.5 Lakhs (52%) and rest of
the people belongs to high annual income group (48%). It indicates that this report
has balanced research and findings without focusing on any specific income group.
People of diverse income groups helped us to study the absolute picture of life
insurance as a tool of investment.
OCCUPATION SCENARIO:-
OCCUPATION NO. OF PEOPLEBUSINESS 53
ANNUAL INCOME PERCENTAGE
LESS THAN Rs.10,000 30
Rs.10,000 - Rs.20,000 22Rs. 30,000 Rs.40,000 35
Above Rs. 50,000 13
TOTAL 100
70
-
7/29/2019 customer satisfection referance to hdfc.doc
71/83
PROFESSION 22
SERVICE 12
STUDENT 13
TOTAL 100
OCCUPATION SCENARIO:
In this market survey more than half of the people are businessman (53%) and rest
of the people belongs to profession and service. It indicates that this report has total
emphasis (98%) on those people who are well established, experienced, decision
makers.
CHAPTER 6CHAPTER 6
71
-
7/29/2019 customer satisfection referance to hdfc.doc
72/83
ConclusionConclusion
72
-
7/29/2019 customer satisfection referance to hdfc.doc
73/83
CONCLUSION
Over the part three years, around 40 companies have expressed interest in entering
the sector and many foreign and Indian companies have arranged Anticipatory
alliances. The threat of new players taking over the market hasbeen overplayed. Asis witnessed in other countries where liberalization took players will continue towhole strong market share positions, but there will be enough business for new
entrants to be profitable. Opening up the sector will certainty mean new products,
better packaging and improved customer service. Both new and existing players will
have to explore new distribution and marketing channels. Potential buyers for most
of this insurance lie in the middle class. New insurers must segment the Market
carefully to arrive at appropriate products and pricing. Recognizing the potential, in
the past three years, the nationalized insurers have already begun to target niches
like pensions, women or children. There should be efforts made by different
Insurance companies to efforts Made by different Investment companies to increase
awareness among general Public. This can be by doing advertising through various
Medias.
73
-
7/29/2019 customer satisfection referance to hdfc.doc
74/83
CHAPTER 7CHAPTER 7
FindingsFindings
74
-
7/29/2019 customer satisfection referance to hdfc.doc
75/83
Findings
1. When people of Chandigarh were asked to know about life insurance all people
Said yes this shows all people are very well aware about life insurance. It also
shows that Life Insurance Companies has done well to inform general public.
2. Most of people have come to know about it from different sources which include
Agents, relatives; friends etc. newspapers are doing fairly well. Magazines has
not Proved a good source.
3. Approximately all people (95%) agree with the view that it is necessity of life,
because it has lot of uncertainties.
4. So approximately half of people (47.51%) will go for life insurance for all benefits
and investments. After that risk coverage was main logic for getting policy
(36.57%).
5. LIC is the big leader in the life insurance industry with share of 86.82%, other
Companies like HDFC Standard Life Insurance, ICICI Prudential, and Max New
York, TATA AIG, ING Vyasa etc, have total of just 13.17% share.
6. 81.89% of people are preferring to govt. sector for insurance i.e. LIC because
they think that it is more safe. With other private companies their risk.
7. Good proportion of people would like to invest in property. On second
Preferences are banks. Insurance got third rank in order of preference to Invest.
8. Most of people dont have pension plan expect govt. pension plan.
9. 4/5 of people said that life insurance should be made compulsory, provided
People should be able to pay premiums. 28.40% says it should not be made
Compulsory; it depends on their own wish.
75
-
7/29/2019 customer satisfection referance to hdfc.doc
76/83
CHAPTER 8
SUGGESTIONS
76
-
7/29/2019 customer satisfection referance to hdfc.doc
77/83
SUGGESTIONS
Very few people gave suggestions. Some important one was:
Bonus offered should be increased.
Rural areas must be properly covered.
More plans for common man and lower class.
Tax benefits on life insurance premium should be increased section 88.
Premium should be less so that everybody can pay it.
Put up ATMs in different areas so that premium can be collected across Thecountry.
Organize some seminars regarding insurance sector in which one should
Come to know about insurance sector that why it is so important for individual
Life.
77
-
7/29/2019 customer satisfection referance to hdfc.doc
78/83
FUTURE POSSIBILITIESJob opportunities are likely to increase minified. The number of people Working in
the insurance sector in India is roughly the same as in the UK With a population that
is 1/7 Indias the US with a population 1/4 the size Of India has nearly 4 times the
number. The liberalization of the insurance Sector promises several new jobs
opportunities for those employed in the Finance sector that are equipped with
degrees in finance. There will be Demand for marketing specialists, finance experts,
human resource Professionals, engineers from diverse streams like the
petrochemical and Power sectors, systems professionals, statisticians and even
medical Professionals. There could be a huge inflow of funds into the country. Given
the industrys huge requirement of start- up capital, the initial years after opening up
are bound to see a strong inflow of foreign capital. Substantial shift in the distribution
of insurance in India is likely to take Place. Initially, insurance is seen as a complex
product with a high advice and service component. Buyers prefer a face to-face
interaction and place a High premium on brand name and reliability. Finally, some
potential Indian entrants into insurance hope to ride their Existing distribution
networks and customer based. For Example, financial Organizations like ICICI,
HDFC or Kotak Mahindra intend to tap the Thousand of customers who already buy
their deposits, consumer loans or
Housing finance. Other hopeful entrants anticipate specific alliances such as with
hospitals to provide health cover.
------------
78
-
7/29/2019 customer satisfection referance to hdfc.doc
79/83
BibliographyBibliography
79
-
7/29/2019 customer satisfection referance to hdfc.doc
80/83
BIBILIOGRAPHY
a) www.licindia.com
b) www.hdfcinsurance.com
c) www.irdaindia.org
---------------
80
http://www.licindia.com/http://www.hdfcinsurance.com/http://www.irdaindia.org/http://www.licindia.com/http://www.hdfcinsurance.com/http://www.irdaindia.org/ -
7/29/2019 customer satisfection referance to hdfc.doc
81/83
AnnexureAnnexure
81
-
7/29/2019 customer satisfection referance to hdfc.doc
82/83
QUESTIONNA IRE
1. Do you know about the term Life Insurance?
Yes No
2. From where did you come to know?
Newspaper.
Magazines.
Electronic Media.
Other sources.
3. Life Insurance is necessity of life?
Completely Agree.
Agree.
Partially Agree.
Disagree.
4. Why would you go for life Insurance?
Risk Coverage. Investment. Tax Benefits.
All of the above.
5. Are you insured? If Yes, then with which company?
Yes No
Company Name ------------------------------------------.
6. Are you satisfied with the service of your insurance agent / corporation?
Yes No
7. Which Sector would you prefer to get insurance?
Government. Private.
8. In what type of instruments would you prefer to invest?
82
-
7/29/2019 customer satisfection referance to hdfc.doc
83/83
Property Bank Security
Insurance Others ------------------------
9. Do you have any pension plans?
Yes No
10. Should life insurance be made compulsory?
Yes No
11.Any suggestions from your side?
-------------------------------------------------------------------------------------------------------------------------------------.
Personal Details
Name: --------------------------------------------------
Age: Less then 20 years 26-35 years
36-45 years 46-55 years
Monthly family income:
Less than 10,000 10,000 - 20,000
30,000 - 40,000 Above 50,000
Occupation: Salaried Student
Businessman Profession