Project report HDFC.doc

8/10/2019 Project report HDFC.doc

1/62

1.1 ABSTRACT

HDFC Standard Life Insurance Company Ltd. is one of India's

leading private insurance companies, which offers a range of individual

and group insurance solutions. It is a oint venture !etween Housing

Development Finance Corporation Limited "HDFC Ltd.#, India's leading

housing finance institution and a $roup Company of the Standard Life,

%&. HDFC as on Decem!er (, )**+ holds +). per cent of e-uity in

the oint venture.

It was tried to see that how customer thin and evaluate the

situation !efore investing in the Insurance in Indian maret at the same

time it also tried to see that how customer !ehaves after investing in

HDFC Standard Life insurance. /his research tried to find out the

awareness of the people towards the various policies related to Life

insurance. India has many life insurance companies lie HDFC Standard

Life Insurance, ICICI 0otential Life Insurance, 1harti Life Insurance,

2et Life Insurance situated in $urgaon, Haryana. I went to these

!ranches to get the people and to find out their views. 3 structured

-uestionnaire of + -uestions was constructed in which each -uestion

pertains to specific tas. 3 sample of sample si4e (** was taen of all

people in $urgaon, H5. /he data were analy4ed for each -uestion

separately given in -uestionnaire and interpreted along with. /he

-uestionnaire is given in anne6ure. It has !een concluded that most of

0age 7 (


2/62

the people in $urgaon are salaried, well educated and have higher

income. 2ost of the 0eople in $urgaon have atleast one policy. /hey

generally do not want to go for new policy if they already have one. LIC

is the most popular choice. It is getting good competition from HDFC,

ICICI and &ota Life Insurance. 5eputation, trustworthiness and !rand

image is very important for any life insurance company to survive in the

maret.

Keywords: Life Insurance, return, services, !rand image, policy,premium

0age 7 )


3/62


4/62

KEY STRENGTHS

F!"!#"$ E%&er'se

3s a oint venture of leading financial services groups, HDFC Standard

Life has the financial e6pertise re-uired to manage your long:term

investments safely and efficiently.

R"!(e o) So$*'o!s

9e have a range of individual and group solutions, which can !e easily

customi4ed to specific needs. ;ur group solutions have !een designed to

offer you complete fle6i!ility com!ined with a low charging structure.

Tr"#+ Re#ord so )"r

;ur gross premium income, for the year ending 2arch (, )** stood at

5s. =,>? crores and new !usiness premium income stood at 5s. ),@>

crores.

/he company has covered over ?,>?,*** lives year ending 2arch (,

)**

BOARD MEMBERS

0age 7 =


5/62

Mr. Dee&"+ S P"re+, is the Chairman of the Company. He is also

the


6/62

R(,' P$"!

Identifying the right plan !asis one8s need is the first crucial step

towards insurance planning. HDFC SLI helps its customer through this

decision !y identifying his various needs and offering plans that are

customi4ed for him. ;ne may also choose a plan for oneself !y

identifying the life stage one is at.

A!"$y/!( Need

0rotection

Investment

Saving

0ension

;nce one has analy4ed its needs as per a!ove classification, he

need to then ascertain important factors such as type of cover, insurance

amount as per his income, life stage and dependents. It is difficult to

arrive at all these figures !y him. HDFC SLI8s financial consultants can

help its customer with all the analysis to offer a customised solution !y

doing a thorough need analysis.

0IFE STAGES

Insurance need will change as the life does, from starting to wor

to enoying the golden years and all the stages in !etween.


7/62

these stages may pose a different insurance needcover for the people.

1elow shown the !asic life stages which help someone analy4e various

insurance needs accordingly. Financial consultants are there to help

always.

Yo*!( S!($e

3n important stage where one lays down the foundation of a

successful life ahead. ;ne should tae advantage of the time and power

of compounding to ensure that heshe !uild up hisher dreams. ;ne

should start saving early.

eeds

Save for home and wedding

0age 7 +


8/62

/a6 0lanning

Save for golden years

*s' M"rred

2arriage !rings a!out a significant change. ew dreams and new

opportunities also !ring in additional responsi!ilities. 9hile !oth people

loo forward to a happy and secure life, it is e-ually important to ensure

that eventualities don8t come in the way of shaping their dreams.

eeds

0lanning for home

Save for vacation

Save for the first child

Pro*d P"re!'s

;nce one have children, one need for life insurance is even more.

Shehe need to protect herhis family from an untoward incident.


9/62

0rovide for a children education

Loan lia!ilities

Saving for post:retirement

P$"!!!( )or Re'ree!'

9hile one is !usy clim!ing the ladder of success today, it is

important for one to tae time and plan for one8s life after retirement.

Having an early start for retirement planning can mae a significantdifference to its savings. ;ne should thin a!out one8s golden years even

!efore one has reached them. /he ey is to thin ahead and plan well

using the time and money.

eed

0rovide for regular income post retirement

Immediate ta6 !enefits

Lead a secure lifestyle

CUSTOMER SER3ICES

HDFC Standard Life is committed to maintaining the highest level

of customer service. Interacting with the customers via its we!site is an

e6tension of this commitment.

0age 7 ?


10/62

It has designed the 'Customer Service' section eeping in mind all

the information one may want to see regarding procedures such as

paying the premium, various policy servicing options, processing a

claim and so on. It has also provided the relevant forms that can !e

downloaded easily from its we!site www.hdfcinsurance.com which

contains all the relevant information.

;ne can now access the policy details online and manage it8s

insurance portfolio anytime and anywhere at the clic of mouse.

C0AIMS

HDFC Standard Life Insurance "HDFC SLI# understands that

!ereavement can !e difficult to deal with, especially when one have to

arrange for all the formalities in case of insurance claims. HDFC

Standard Life lends a helping hand !y ena!ling faster settlement of

claims and helps the family financially at the time of distress.

For any assistance or -uery relating to reporting claims "Death

ClaimsCritical Illness Claims# one may get in touch with the company

!y emailing it and the company will get !ac to him with the details that

will !e re-uired to process a claim.

HDFC BANK

/he Housing Development Finance Corporation Limited "HDFC#

was amongst the first to receive an 'in principle' approval from the

5eserve 1an of India "51I# to set up a !an in the private sector, as

0age 7 (*


11/62

part of the 51I's li!erali4ation of the Indian 1aning Industry in (??=.

/he !an was incorporated in 3ugust (??= in the name of 'HDFC 1an

Limited', with its registered office in 2um!ai, India. HDFC 1an

commenced operations as a Scheduled Commercial 1an in Eanuary

(??>.

;n the (th of Fe!ruary, (??>, the then finance minister, Dr.

2anmohan Singh, inaugurated the first !ranch of a new !an called

HDFC 1an. 0romoted !y India's premier housing finance institution, it

was the first private sector !an to have received a license from the

5eserve 1an of India, after the !aning sector was thrown open to new

players. Driven !y the vision and leadership of a highly respected senior

management team, and thans to the dedicated efforts of thousands of

employees over the last (* years, HDFC !an has today emerged as one

of the leading !ans in the country.

From the !eginning, HDFC 1an !egan operations with the

mission of !ecoming a 9orld:class Indian 1an, and the endeavour of

fulfilling all the financial re-uirements of its customers under one roof.

;ver the years, !y delivering superior financial products and services,

HDFC !an has !uilt a sta!le and long:lasting relationship with nearly

seven million customers, without compromising its standards for

maintaining high -uality associations. Its culture for learning -uic

a!sorption of latest and !est technologies and unwavering adherence to

!est practices in governance have !een the core strengths that have

0age 7 ((


12/62

!rought it to present position. Constantly learning through the growth,

HDFC !an has continued to use the dividends of its leadership position

to fuel further e6pansion and presence. /oday, ten years later, HDFC is

the maret leader, or one of the top three, in most of the segments that it

operate in. /oday, HDFC !an is recogni4ed !y many to !e the !est in

many respects. However, its ourney to !e pre:eminent in every possi!le

sphere continues, and it drive to !ecome even !etter at serving its

customers !ecomes stronger.

In a milestone transaction in the Indian !aning industry, /imes

1an Limited "another new private sector !an promoted !y 1ennett,

Coleman A Co./imes $roup# was merged with HDFC 1an Ltd.,

effective Fe!ruary )@, )***. 3s per the scheme of amalgamation

approved !y the shareholders of !oth !ans and the 5eserve 1an of

India, shareholders of /imes 1an received ( share of HDFC 1an for

every >.+> shares of /imes 1an. /he ac-uisition added significant

value to HDFC 1an in terms of increased !ranch networ, e6panded

geographic reach, enhanced customer !ase, silled manpower and the

opportunity to cross:sell and leverage alternative delivery channels.

HDFC 1an offers a wide range of commercial and transactional

!aning services and treasury products to wholesale and retail

customers. /he !an has three ey !usiness segmentsG

-,o$es"$e B"!+!( Ser4#es

0age 7 ()


13/62

/he 1an's target maret ranges from large, !lue:chip

manufacturing companies in the Indian corporate to small A mid:si4ed

corporate and agri:!ased !usinesses. For these customers, the 1an

provides a wide range of commercial and transactional !aning services,

including woring capital finance, trade services, transactional services,

cash management, etc. /he !an is also a leading provider of structured

solutions, which com!ine cash management services with vendor and

distri!utor finance for facilitating superior supply chain management for

its corporate customers. 1ased on its superior product delivery service

levels and strong customer orientation, the 1an has made significant

inroads into the !aning consortia of a num!er of leading Indian

corporates including multinationals, companies from the domestic

!usiness houses and prime pu!lic sector companies. It is recognised as a

leading provider of cash management and transactional !aning

solutions to corporate customers, mutual funds, stoc e6change

mem!ers and !ans

Re'"$ B"!+!( Ser4#es

/he o!ective of the 5etail 1an is to provide its target maret

customers a full range of financial products and !aning services, giving

the customer a one:stop window for all hisher !aning re-uirements.

/he products are !aced !y world:class service and delivered to the

0age 7 (


14/62

customers through the growing !ranch networ, as well as through

alternative delivery channels lie 3/2s, 0hone 1aning, et1aning

and 2o!ile 1aning.

/he HDFC 1an 0referred program for high net worth individuals,

the HDFC 1an 0lus and the Investment 3dvisory Services programs

have !een designed eeping in mind needs of customers who see

distinct financial solutions, information and advice on various

investment avenues. /he 1an also has a wide array of retail loan

products including 3uto Loans, Loans against mareta!le securities,

0ersonal Loans and Loans for /wo:wheelers. It is also a leading provider

of Depository 0articipant "D0# services for retail customers, providing

customers the facility to hold their investments in electronic form.

HDFC 1an was the first !an in India to launch an International

De!it Card in association with IS3 "IS3 , the !an had a total

card !ase "de!it and credit cards# of >.) million cards. /he 1an is also

one of the leading players in the merchant ac-uiring !usiness with

over >*,*** 0oint:of:sale "0;S# terminals for de!it credit cards

acceptance at merchant esta!lishments.

Tre"s*ry

0age 7 (=


15/62

9ithin this !usiness, the !an has three main product areas :

Foreign


16/62

Depository Shares "3DS# Issue#. 5oughly (.J of the e-uity is held !y

Foreign Institutional Investors "FIIs# and the !an has a!out (?*,***

shareholders. /he shares are listed on the /he Stoc


17/62

tool for shareholder protection and ma6imi4ation of their long term

values. /he cardinal principles such as independence, accounta!ility,

responsi!ility, transparency, fair and timely disclosures, credi!ility etc.

serve as the means for implementing the philosophy of corporate

governance in letter and spirit.

BOARD

/he Composition of the 1oard of Directors of the 1an is

governed !y the Companies 3ct, (?>@, the 1aning 5egulation 3ct,

(?=? and the listing re-uirements of the Indian Stoc


18/62

NET-ORK

HDFC 1an is head-uartered in 2um!ai. /he 1an at present has

an envia!le networ of over +@( !ranches spread over )+ cities across

India. 3ll !ranches are lined on an online real:time !asis. Customers in

over ()* locations are also serviced through /elephone 1aning. /he

1an's e6pansion plans tae into account the need to have a presence in

all maor industrial and commercial centers where its corporate

customers are located as well as the need to !uild a strong retail

customer !ase for !oth deposits and loan products. 1eing a

clearingsettlement !an to various leading stoc e6changes, the 1an

has !ranches in the centers where the S


19/62


20/62

while investing in the life insurance policies. /he investing in the life

insurance is a long !ac phenomenon and various theories has !een

proposed to get the people !etter return.

/his study will help the life insurance companies to understand

!etter the maret insights and its various tenets. It will help them to

understand the various criteria adopted !y people while investing life

insurance policies. In this way, we can see that it automatically

encompasses large chun of peoples and their !ehavior with respect to

life insurance policies of various companies.

/his study will help e6perts and professionals to understand

whether people either consciously or su!consciously rely on the maret

information while selecting the life insurance policies. It also includes

whether well informed people mae decision a!out the policies to

maret information or they also consider the human psychology while

go for investing in the life insurance policies.

In this way we found that this study ranges to a very wide scope

which constitutes the profound respondent8s !ehavior, further discussion

and de!ate on the topic. In this way it will prove to !e !eneficial for

students, professionals, educationist, respondents as well as companies

and others.

0age 7 )*


21/62

1.6 OBECTI3ES

M"! O78e#'4es:

0age 7 )(


22/62

(. /o find and analy4e the demography of the people and to find

correlation with the investment pattern towards various life

insurance policies.

). /o understand the !ehavior of people and their different criteria

!efore investing in life insurance policies.

S*7 O78e#'4es:

(. /o help people and companies to understand the various tenets of

life insurance maret.

). /o help management students to understand !ehavior of the

respondents with respect to life insurance maret.

1.9 0IMITATIONS OF STUDY

0age 7 ))


23/62

%nresponsiveness of some respondents was main limitation, which

may !e due to the fear of leaage of data or losing competitiveness

in the industry.

/ransportation and time constraint were other limitations, which

resorted us to constraint our study in a particular location.

2.1 RESEARCH DESIGN

0age 7 )


24/62

/he research will !e analytical in nature as it will analy4e the

demography of people who want to invest in life insurance policies and

its correlation to the investment pattern of people, various criteria

adopted !y people and its !ehavior while they go for investing in the life

insurance policies. /he research design will mainly consist of five parts

a. Hypotheses

!. Data Collection

c. Sample Design

d. Survey Design

e. Data 3nalysis

2.1.1 Hy&o',eses

/he following hypotheses were undertaenG

0age 7 )=


25/62

HK0;/H


26/62


27/62

Sample si4eG (**

For the collection of primary data, all the people in $urgaon

who are a!ove )* years old will !e taen as sample unit since their

demography, ideas, consideration and various criteria will !e re-uired.

2.1.5 S*r4ey Des(!

InstrumentG 3 structured -uestionnaire consisting -uestions

ScalingG ominal, interval and attitude scale

For survey of all the people who are a!ove )* years old in

$urgaon, a structured -uestionnaire consisting -uestions was prepared

where each -uestion measures the specific attri!ute associated with

people. /he -uestionnaire was consisting some o!ective -uestions and

open ended response -uestions. /he -uestionnaire is given in the

anne6ure. /he data were collected mainly at the life insurance

companies as HDFC, ICICI, &ota Life, 3viva and 1irla sunlife. /hese

offices are situated at sector (= and E2D tower near Sahara 2all in

$urgaon which is -uite a prominent landmar in $urgaon, H5 India.

2.1.9 D"'" A!"$yss

/echni-uesG :test and M): test

0age 7 )+


28/62

/he primary data will !e analy4ed according to the scaling

used in the -uestionnaire. /he -uestions !ased on nominal scale were

analy4ed through ta!ulation, percentage sharing and pie charts. /hen a

proper :test and M): test will !e followed.

5.1 DATA ANA0YSIS

5.1.1 Ge!der wse Ds'r7*'o! o) Res&o!de!'s

3ccording to the survey of people in $urgaon, Following

data were o!tained.

T"7$e 5.1: Ge!der wse Ds'r7*'o! o) Res&o!de!'s

$ender 2ale Female

5espondents += )@

/his figure can also !e visuali4ed through the pie chart as given

!elow

F(*re 5.1: Ge!der wse Ds'r7*'o! o) Res&o!de!'s

0age 7 )


29/62

I!'er&re'"'o!

It is found that +=J of the respondents are male. Female ust

constituted )@J of the total sample si4e. It showed that life insurance

maret decision is very much influenced !y the males in $urgaon.

5.1.2 A(e wse Ds'r7*'o! o) Res&o!de!'s

T"7$e 5.2: A(e wse Ds'r7*'o! o) Res&o!de!'s

3ge "Kr# 1elow

)*

)*:* *:=* =*:>* >*:@* 3!ove

@*5espondents (* > )) = = )

It will !e worth to mention that during travelling for the survey

many people who aged !etween )* to * years old. 2ost of the

respondents are found in the trading shops as ICICI, &ota Life, 3viva

0age 7 )?


30/62

and 1irla Sunlife etc. which are located in sector:(= and E2D tower near

Sahara 2all in $urgaon. Selection of respondents was !ased upon the

availa!ility and completely randomness without any !iases.

F(*re 5.2: A(e wse Ds'r7*'o! o) Res&o!de!'s

Age wise Distribution of Investors

58%

22%

2%4%4%

10%

Below 20

20-30

30-40

40-50

50-60

Above 60

I!'er&re'"'o!

From the pie chart given a!ove, it showed that >J of the peoples fall

!etween )*:* years of age. It is found that most of the respondents in

$urgaon are youth. 3ccording to previous data, most of these youth

found male.

5.1.5 Pro)esso! wse Ds'r7*'o! o) Res&o!de!'s

/o get the information a!out the profession of the peoples, si6

options has !een given in the -uestionnaire which are following.

0age 7 *


31/62

Student

Salaried without family

Salaried with family

1usinessman

5etired

H9

/his information was re-uired to now a!out the responsi!ility

over the respondents as it was assumed that an respondent with family is

suppose to have more responsi!le prior to investing as compared to

those respondents who are salaried without family. Student are found to

!e least responsi!le while people !etween )* to * years old were found

to !e more responsi!le as they were more interested.

Following is the ta!le to show the actual picture of the variousrespondents

T"7$e 5.5: Pro)esso!s wse Ds'r7*'o! o) Res&o!de!'s

0rofession Student Salaried

without family

Salaried

with family

1usinessman 5etired H9

5espondents @ )) >@ ( = (=

ow it can !e seen that respondents salaried without family are !it

more than salary with family. 1ut according to the data, salaried people

0age 7 (


32/62

are dominating over the figures. It can !e clearly seen that according to

the sample data, out of (** respondents, +@ are salaried. It can also !e

reviewed through the statistics in following graph.

F(*re 5.5: Pro)esso!s wse Ds'r7*'o! o) Res&o!de!'s

I!'er&re'"'o!

It can !e seen from the chart that +@J of the respondents are

salaried. Salaried without family found more than salaried with family

!ut together they found to have the !ig chun of the pie. e6t came to

student with ()J which found to !e youth again.

5.1.6 *"$)#"'o! wse Ds'r7*'o! o) Res&o!de!'s

/o get the information a!out the -ualification of the respondents,

four options has !een given in the -uestionnaire which are following.

0age 7 )


33/62

(*N)

$raduate

0ost:$raduate

;ther

T"7$e 5.5: *"$)#"'o! wse Ds'r7*'o! o) Res&o!de!'s

;ptions (*N) $raduate 0ost:$raduate ;ther

5espondents @ )) @@ @

F(*re 5.6: *"$)#"'o! wse Ds'r7*'o! o) Res&o!de!'s

I!'er&re'"'o!

It can !e seen from the chart that @@J of the respondents are post:

graduate. It shows that most of the respondents are well -ualified. It is a

0age 7


34/62

good thing so that people can easily understand the various sort of

policies and their !enefit.

5.1.9 I!#oe wse Ds'r7*'o! o) Res&o!de!'s

F(*re 5.6: I!#oe wse Ds'r7*'o! o) Res&o!de!'s

0age 7 =


35/62

Income "lacs# (.*:(.> (.>:).> ).>:.> .>:>.* >.*:@.* @.*:.* 3!ove .*

5espondents * * (* )) (@ = (

It can !e seen here that average respondents have the income on

higher side as around .> lacs and a!ove. ;ut of (** respondents, @

respondents came to this category which shows that they constitute a !ig

chun in the pie as shown in the figure !elow.

F(*re 5.9: I!#oe wse Ds'r7*'o! o) Res&o!de!'s

It can !e seen here that @J of the respondents are having income

more than .> lacs. OJ of the respondents are having income more than

@ lacs per annum.

0age 7 >


36/62

I!'er&re'"'o!"$

It was found that the respondent, who invests in share maret,

generally considered as more risy, poised to get more return as well.

/his may !e the reason that average respondent found to have more than

average income.

Secondly, as it has seen earlier that most respondents are youth.

From this it can !e interpret that most of these youths are on higher side

of income.

5.1.9 0)e I!s*r"!#e &o$#y Ho$ders

/his -uestion was ased to now that how many respondents have

life insurance policy.

T"7$e 5.;: 0)e I!s*r"!#e Po$#y Ho$ders

;ptions Kes o

5espondents +@ )=

/he responses were more for first option PKes8. It shows that most

people are aware of the !enefit of the life insurance policy. ;ut of those

people who have the life insurance policies, @J preferred LIC "Life

Insurance corp. of India#.

0age 7 @


37/62

F(*re 5.#

Q "*.+@T*.)=#(**U V"*.>#

Q *.*=

Q =. J

/aing the confidence level of ?>J

0age 7 +


38/62

p N 4.R Q +@ N (.?@ T =.

Q +@ N .=+

Q @+.>(J to =.=J " Hence Hypothesis :( is reected#

I!'er&re'"'o!

Hence we see that there is very little standard deviation in the yes

response. It shows that people are very much interested in life insurance

policies. 9e can see that around @+J to =J people may have life

insurance policy which is -uite good in statistics. It led to the reection

of hypothesis:( which assumed the (**J inclination towards LIC

policies.

5.1.= I!'eres'ed!ess ! !ew>"!o',er $)e !s*r"!#e &o$#y

/his -uestion depends upon the response of previous -uestion

"Holding of life insurance policy#.

PKes8Q 5espondents may loo for another policy

Po8 Q 5espondents may loo for new policy

5.=: A!o',er Po$#y

;ptions Kes o

5espondents @ +*

0age 7


39/62

It can !e seen here that responses are overwhelmingly for the

response Po8 while there were very few people who went for PKes8

option.

F(*re 5.=: A!o',er &o$#y

Here it can !e seen that ?)J of the respondents went for the option

PKes8 and J went for the option Po8.

3pplying the 4:testG

p Q *.?) - Q *.*

R "Standard error# Q "pT-#nUV"*.># Q "*.?)T*.*#(**U V"*.>#

Q *.*)+(

Q ).+( J

0age 7 ?


40/62


p N 4.R Q ?) N (.?@ T ).+(

Q ?) N >.((@

Q @.@? J to ?+.( J

Hence Hypothesis:) is reected as there is not complete inclination for

another policy.

I!'er&re'"'o!

It can !e interpret that those people who already have the life

insurance policies, they are generally not going for new policies. /he

ma6imum range goes upto (**J which shows people generally do

not want more than one life insurance. ;ne life insurance policy

seems to !e enough for them. ery few people as J were lie to go

for another policy. /he reason was that they want to go for further

investment.

5.


41/62

It can !e seen here that responses are more for the response PKes8

while there were very few people who went for Po8 option.

F(*re 5.


42/62

Q *.*=+*

Q =.+* J


p N 4.R Q @+ N (.?@ T =.+*

Q @+ N ?.)()

Q >+.+J to +@.)(J

I!'er&re'"'o!

It can !e interpreted that those people who do not have the life

insurance policies, they are generally going for new policies. 3t

ma6imum, around +@J of the people were interested in new policy. It

is very good in num!er. /here were also few people who do not want

to go for new policy. It may !e those people who may !e student or

unmarried people having least responsi!ility.

5.1.< Ao*!' o) 0)e I!s*r"!#e Po$#y

/his -uestion was ased to now a!out the amount the

respondents want to invest in life insurance policy.

0age 7 =)


43/62

T"7$e 5.1?: Ao*!' o) 0)e I!s*r"!#e Po$#y

;ptions >**** :

(*****

( lac B

lacs

lacs : >

lacs

> lacs : (*

lacs

3!ove

(*3mount >= @ ) :

2ost of the respondents were going for around 5s. >**** :

(*****. 3fter it came to ( lac : lacs. ery few people went for more

than that.

F(*re 5.1?: Ao*!' o) 0)e I!s*r"!#e Po$#y

A&&$y!( C,@S*"re Tes':

Ao*!'

O7ser4ed

O

E%&e#'ed

E O@E O@E2 O@E2>E

9???? 1????? >= >* = (@ *.)*

1????? 5????? * @= ).(

0age 7 =


44/62

5????? 9????? @ (= : @= =.>+(

9????? 1?????? ) @ := (@ ).@@+

1?? 1?? .;1

Degree of freedom Q =:(

Q

/aing level of significance Q >J

Calculated M) Q >.??(

Since o!served value is grater than e6pected value hence hypothesis: isreected.

I!'er&re'"'o!

It can !e seen from the test that people generally go for 5s. >**** and

5s. (***** in !ul and ratio is somewhat near to >G. It found that

most of the respondents consider ris in moderate way while

investing in the life insurance policy. 0resently they do not want to go

for large amount while investing. /he main reason may !e that it

doesn8t give return in short term.

5.1. Re"so!s )or o&'!( 0)e I!s*r"!#e Po$#y

/his is evidently -uite an important -uestion ased to respondents

that why they want to go for the life insurance policy. /he options were

following.

0age 7 ==


45/62

Saving /a6

9ife

&ids


46/62

F(*re 5.11: Re"so!s )or o&'!( 0)e I!s*r"!#e Po$#y


O&'o!s o7ser4ed e%&e#'ed O@E O@E2 O@E2>E

T"% S"4!( () )* : @= .)**

-)e ( )* :) = *.)**

Kds

Ed*#"'o! * @= ).(

Kds M"rr"(e )) )* ) = *.)**

P"re!'s (* (* * * *.*** 1?? 1?? 9.=55

Degree of freedom Q >:(

Q =


0age 7 =@


47/62

Calculated M) Q ?.=

Since o!served value is less than e6pected value hence hypothesis:= is

accepted.

I!'er&re'"'o!

It found that the responses were more inclined towards the ids

marriage and ids education, wife and ta6 saving got almost same

preferences. /hese all are very much long term in nature. It shows that

people are generally opting for life insurance policies for long term

investment.

5.1.1? Pre)ere!#e o) 0)e I!s*r"!#e Co&"!es

/his -uestion was there to now a!out the respondent8s view a!out

various life insurance companies. /he options were following.

LIC

HDFC

ICICI

&ota Life

2etLife

1irla Sun Life

;ther

T"7$e 5.12: Pre)ere!#e o) 0)e !s*r"!#e Co&"!es

;ptions LIC HDFC ICICI &ota 2et 1irla Sun ;ther

0age 7 =+


48/62

Life life Life

5espondents =) (@ ( (= = = )

F(*re 5.12: Pre)ere!#e o) 0)e !s*r"!#e Co&"!es


O&'o!s O7ser4edO E%&e#'edE O@E O@E2 O@E2>E

0IC =) >* : @= (.)*HDFC (@ )@ :(* (** .=@

ICICI ( (= = (@ (.(=

Ko'"+ 0)e (= = (* (** )>.***

Me' 0)e = ) ) = ).***

Br$" S*!

0)e = ) ) = ).***

O',ers ) ) * * *.***

1?? 1?? 59.2;

Degree of freedom Q +:(

Q @

0age 7 =


49/62


Calculated M) Q ().>?)

Since o!served value is more than e6pected value hence hypothesis:> is

reected.

I!'er&re'"'o!

Here it found that less than half of the respondents were opting LIC

as their most preferred option. It is getting close competition from

HDFC, ICICI, and &ota Life Insurance. It shows that there are now

many players in the maret trying to get the !igger chun of pie. LIC is

certainly the maret leader !ut HDFC, ICICI, and &ota Life Insurance

are potential maret challenger.

5.1.11 3"ro*s Cr'er" )or o&'!( 0)e I!s*r"!#e Po$#es

/his -uestion was ased !y respondents to now a!out the various

criteria considered !efore investing in Life Insurance 0olicies. /he

options were following.

5eputation

/ype of 0olicy

5eturn

0age 7 =?


50/62


51/62

.


O&'o!s O7ser4edO E%&e#'edE O@E O@E2

O@E2

>ERe&*'"'o! () * :( )= (*.**

Ty&e o) Po$#y )= (* (= (?@ (?.@**

Re'*r! )* )* * * *.***

Ser4#es @ (* := (@ (.@**

Tr*s'wor',!ess * @= ).(

1?? 1?? 56.155

Degree of freedom Q >:( Q =


Calculated M) Q ?.=

0age 7 >(


52/62

Since o!served value is more than e6pected value hence hypothesis:@ is

reected.

I!'er&re'"'o!

It is found that ma6imum respondents were seeing trustworthiness

!efore going for the life insurance policy. It is followed !y type of

policy, return and reputation. It came contrary to our !elief that return

may !e a very important factor. It is evident that trustworthiness, !rand

image and reputation are important factor for any life insurance

company. It is so !ecause life insurance is a long term plan and long

term plan depends very much on trustworthiness, reputation, !rand

image etc.

5.1.12. 3"ro*s Cr'er" )or o&'!( 'y&e o) Po$#es

/his -uestion was ased !y respondents to now a!out the various

criteria considered !efore investing in Life Insurance 0olicies. /he

options were following.

Koung star

Koung star plus

0ension plan

0ension plan plus

0age 7 >)


53/62

other

T"7$e 5.16: 3"ro*s Cr'er" )or o&'!( 'y&e o) Po$#es

;ptions Koung

star

Koung star

plus

0ension

plan

0ension plan

plus

;ther

5espondents )* =* (* * :

I!'er&re'"'o!

Here it found that =*J respondents were opting young star plus and

pension plan plus their most preferred option. It shows that there are

now many people in the maret trying to get the !igger chun of pie.

0age 7 >


54/62

CONC0USION

2ost of the people who go for investing in life insurance policy,

were male. It shows that most of the families are patriarch in nature

where male is the decision maer. 2a6imum people were found to !e

adult, married, salaried, with nuclear family as well as with parents. It

shows the responsi!ility level, which was found high. 0eoples were

mostly post graduate especially having 213 degree. It shows the high

educational level of peoples in $urgaon. /hey also having high income

range varying .> lacs to >.* lacs per annum. It shows that they have the

potential of investing handsomely in life insurance policies as well.

0age 7 >=


55/62

2ost of the peoples were found to have at least one life insurance

policy. It shows the awareness and responsi!ility level of people which

is high. If a person has a policy, then he generally will not go for another

policy. 0eople generally do not invest in high amount in life insurance

policy. /hey generally go for 5s. >**** to ( lac.

0eople generally go for life insurance policy for the future of their

ids and wife. Saving the ta6es was also an important measure. 0eople

generally go for LIC "Life Insurance Corporation of India# as their

preferred choice for investing. It then followed !y ICICI, HDFC, &ota

Life etc. It shows that LIC is still the maret leader !ut it is getting good

competition from other players in maret.

For any life insurance company, !rand image, trustworthiness and

reputation is very important. 5eturn and services also play a very

important role. Since life insurance policy is generally a long term plan

hence these things matters too much.

0age 7 >>


56/62

RECOMMENDATIONS

/ransparency is an important factor. Life insurance policies should

!e transparent and easily understanda!le so that investor would not

face any pro!lem in future.

Life Insurance Companies should go for good mareting techni-ue

so that their !rand image could !e esta!lished and people can trust.

Services are very important thing while mareting the various

policies. It should !e good.

0age 7 >@


57/62

0olicy amount should !e less so that more people can invest and

ris could !e minimi4e further.

BIB0IOGRAPHY

Re)ere!#es

(. 1eri, $. C. ")**># W2areting 5esearchX rdedition, /ata 2c$raw

Hill 0u!lication, ew Delhi, India.

). &othari, C. 5. ")**+# W5esearch methodologyX rdedition, 9ishwa

0raashan, ew 3ge International "0# Ltd. Daryagan, ew Delhi,

India.

. &otler 0hilip, ")**+# W2areting 2anagementX, 0rentice

Hall of India 0vt. Ltd. ew Delhi, India

0age 7 >+


58/62


59/62


60/62

)*. www.naredw.org

)(. www.valueresearch.com

UESTIONNAIRE

Ge!derG 2 F D"'eG ZZZZZ

P$"#eG ZZZZZ

A(eG )*:)> )>:* *:> >:=* =*:>*

>*:@* a!ove @*

Pro)esso!G Student Salaried without family Salaried

with family 1usinessman

5etired H9

*"$)#"'o!: (*N) $raduate 0ost:$raduate

;therZZZZZZZZ

0age 7 @*


61/62


62/62

Project report HDFC.doc

Documents

Transcript of Project report HDFC.doc