CHAPTER 1

GENERAL INTRODUCTION

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1.1 Overview of Industry

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries.
With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20 per cent annually. Together with banking
services, it adds about 7 per cent to the countrys GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly
80% of Indian populations are without Life insurance cover and the Health
insurance. This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation Malhotra Committee was
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to the
existence of LIC. Since the liberalization of the industry the insurance industry has
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never looked back and today stand as the one of the most competitive and
exploring industry in India. The entry of the private players and the increased use
of the new distribution are in the limelight today.
The use of new distribution techniques and the IT tools has increased the scope of
the industry in the longer run.

The origin of insurance is very old .The time when we were not even born; man
has sought some sort of protection from the unpredictable calamities of the nature.
The basic urge in man to secure himself against any form of risk and uncertainty
led to the origin of insurance.
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.

Some of the important milestones in the life insurance business in India

are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance
businesses.

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1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
1993:

Malhotra Committee, headed by former Finance Secretary and RBI

Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry
and recommend its future direction.

1.2 PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN

INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total
volume of LIC's business increased in the last fiscal year (2006-2007) compared to
the previous one, its market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19%
in a year's time. The figures for the first two months of the fiscal year 2007-08 also
speak of the growing share of the private insurers. The share of LIC for this period

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has further come down to 75 percent, while the private players have grabbed over
24 percent.
With the opening up of the insurance industry in India many foreign players have
entered the market. The restriction on these companies is that they are not allowed
to have more than a 26% stake in a companys ownership.
Since the opening up of the insurance sector in 1999, foreign investments of Rs.
8.7 billion have poured into the Indian market and 19 private life insurance
companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled
fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi purpose insurance
plans, pension plans, child plans and money back plans. (www.wikipedia.com)

1.3 Impact Of Liberalization

The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC.
Since the advent of the private players in the market the industry has seen new and
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innovative steps taken by the players in this sector. The new players have
improved the service quality of the insurance. As a result LIC down the years have
seen the declining phase in its career.
The market share was distributed among the private players. Though LIC still
holds the 75% of the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near future. LIC market
share has decreased from 95% (2002-03) to 81 %( 2004-05).

1.4 Product Innovation

There has been a plethora of new and innovative products offered by the new
players. Customers have tremendous choice from a large variety of products from
pure term (risk) insurance to unit-linked investment products. Customers are
offered unbundled products with a variety of benefits as riders from which they
can choose. More customers are buying products and services based on their true
needs and not just traditional money-back policies, which is not considered very
appropriate for long-term protection and savings. There is lots of saving and
investment plans in the market. However, there are still some key new products
yet to be introduced - e.g. health products.

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1.5. Rural Marketing

Rural India seems to have an appetite for mobile phones, computers, and cars and
to add to it we have insurance. In India with the private players having entered into
the insurance industry, the expected explosion in job opportunities may not
actually happen but for them the catchments area is the opportunities in the rural
India. In India the insurance business can be said to be "a marathon, not a sprint".
This is because of the nature of the business being long term. With merely two
years of the industry being opened, not surprisingly, the new comers are making
losses. The public sector companies, notably the LIC, have gained in strength,
thanks to the deepening of the market consequent to the awareness created by the
new companies. However this does not deterred the private sector, which knows
know that the race is a marathon, not a sprint. However it seems that they if not
anything, are only increasing their spending, though only out of the capital. Today,
there are 18 insurance companies in India excluding the PSUs, with 12 in the life
insurance business and the rest in non-life .As insurance companies go more and
more rural in search of business, there will be opportunities in the rural sector. A
research conducted exhibited that the rural consumers are willing to dole out
anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance
the awareness level for life insurance is the highest in rural India, but the
consumers are also aware about motor, accidents and cattle insurance. In a study
conducted by MART the results

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showed that nearly one third said that they had purchased some kind of insurance
with the maximum penetration skewed in favor of life insurance. The study also
pointed out the private companies have huge task to play in creating awareness
and credibility among the rural populace. The perceived benefits of buying a life
policy range from security of income bulk return in future, daughter's marriage,
children's education and good return on savings, in that order, the study adds.
Regulatory and Development Authority (IRDA) have set stiff rural targets for
insurance companies. For the life sector, in the first year, 5 per cent of the total
policies written should come from the rural sector. This will go up to 15 per cent in
five years. Similarly, for the non-life sector, two per cent of the total gross
premium income should come from the rural sector going up to 5 per cent in five
years, according to the regulation. All these moves will make the investment the
rural area a big start.

1.6 Information Technology And Insurance

In the insurance industry today, there is a clear trend away from selling a broad
range of products to a large volume of customers in a one size-fits-all manners.
Instead of focusing on their different products lines as silos (i.e., life, property and
casualty etc) insurers are looking for ways to offer highly targeted insurance
products that are tailored to the individuals customers with the highest propensity
to buy them.

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There is a evolutionary change in the technology that has revolutionized the entire
insurance sector. Insurance industry is a data-rich industry, and thus, there is dire
need to use the data for trend analysis and personalization.
With increased competition among insurers, service has become a key issue.
Moreover, customers are getting increasingly sophisticated and tech-savvy. People
today dont want to accept the current value propositions, they want personalized
interactions and they look for more and more features and add ones and better
service The insurance companies today must meet the need of the hour for more
and more personalized approach for handling the customer. Today managing the
customer intelligently is very critical for the insurer especially in the very
competitive environment. Companies need to apply different set of rules and
treatment strategies to different customer segments. However, to personalize
interactions, insurers are required to capture customer information in an integrated
system.
With the explosion of Website and greater access to direct product or policy
information, there is a need to developing better techniques to give customers a
truly personalized experience. Personalization helps organizations to reach their
customers with more impact and to generate new revenue through cross selling
and up selling activities. To ensure that the customers are receiving personalized
information, many organizations are incorporating knowledge databaserepositories of content that typically include a search engine and lets the customers
locate the all document and information related to their queries of request for
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services. Customers can hereby use the knowledge database to mange their
products or the company information and invoices, claim records, and histories of
the service inquiry. These products also may be able to learn from the customers
previous knowledge database and to use their information when determining the
relevance to the customers search request.
The insurance sector remains a very competitive market and those companies that
are able to best utilize their data and provide their customer with the most
personalized options will have the distinct competitive advantage. The insurers
that come up to the top will be those who leverage the appropriate technology
solutions effectively in order to foster customer loyalty, attract new customers and
improve operational efficiency by providing common information across their
lines of business.

1.7 Mergers And Aquisitions

This is an era of mergers and acquisitions. Private companies including MNCs are
amalgamating the world over to get more competitive edge. Currently, the general
insurance industry has been opened up. The question here is that for over two
years, eight private companies have operated and has the size of the cake
expanded. The insurers are doing enough to raise the level of risk awareness or are
they merely content to compete in the markets organized and established.
However sooner or later the private sector players will have to put in place
strategies aimed not at winning the existing accounts of the public players but at
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diversifying markets penetration as a whole. The private players in the future

would have to turn their attention to working in the unorganized and under served
markets.
What is likely to happen is that the private players would continue to skim the
profitable segments of the already organized business in the urban areas? The time
has already come for the government of India to evaluate the performance of
private companies vis--vis their declared objective of opening up the industry.
However it is high time for the government to realize that importance of merging
the public sector general insurance companies into single entity. The resent
scenario calls for a better performance from part of each of the public sector
insurance companies against each other; or in other words a competition to be the
best. The result what we see is the undercutting of premium to retain or wrest
business and quoting an uneconomical rate of premium. While this allows one of
the Public Sectors Company to win a business form another in this manner. The
others suffer a loss and the resultant effect is a cannibalization with a fall in the
average premium of the public sector itself. This at many times brings advantage
to the private players who grab the business because of the
unethical competition among the public players.
The purpose of having four companies all subsidiaries of General Insurance
Corporation of India (GIC) National Insurance Company, New India Assurance
Company, Oriental Insurance Company, And The United India Insurance
Company; at the time of nationalization was to have competition among
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themselves in service and products at the same price. The service provided by
them was also equally good or bad depending on the experience of the customers.
Now with real competition coming in with most of the global insurance players
setting footprints here, it is felt that the time for merger has come and to enjoy the
benefits if the size. It is to be sated that size does matter in insurance business. All
over the worlds mergers and acquisitions in the risk-underwriting sector is
common. The benefits if the four insurance companies merge will be enormous.
The merged entity will enjoy higher underwriting and risk retention capacity;
increase in reinsurance premium, reduction in reinsurance outflow, healthy
solvency margins, setting right the asset liability mismatch and reduction in cost.
The insurance market thus becomes a gambling place. Had the public sector
companies made into a single entity, perhaps the total premium of the four public
sector companies in the year 2003-04 would have gone up but 25 percent. But the
public sector alone is forced to underwrite the loss making motor third party
liability (TPL) insurance. The public insurance companies insured a loss of Rs
1943 crore on this portfolio on just one year (03-04). The cumulative loss under
this portfolio is astronomical. The loss of profitable business in view of
undeserved competition among the public sector companies is hampering the
subsidization of social insurance including the motor TPL.
It is thus clear that it is good for the public sector companies to merge immediately
when they are still strong, lest a merger becomes inevitable later after the
independent public sector companies fail one after another. This does not bid well
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for the public sector, nor fort he insuring public and not for the economic
development either. For a progress me require merger of strong public sector
companies. Else it would render public sector companies weak and destroy them.

1.8 Potential Of Insurance Industry In India :

Only ONE out of FIVE insurable population in India have insurance
coverage.
In terms of Insurance premium per capita and premium per GDP, India
ranks as one of the lowest in the world.
Life insurance premium constitutes only 9% of domestic savings.
By 2010, hundred million elderly look to planning for old age pension and
annuities.
More than 325 million labor forces have no social security.
With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value
of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10
billion). According to government sources, the insurance and banking services'
contribution to the country's gross domestic product (GDP) is 7% out of which the
gross premium collection forms a significant part. The funds available with the
state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
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insurances in India is also well below the international level. These facts indicate
the of immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural
changes took place with the ending of government monopoly and the passage of
the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market
with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in an
insurance company, a proposal to increase this limit to 49% is pending with the
government. Since opening up of the insurance sector in 1999, foreign investments
of Rs. 8.7 billion have poured into the Indian market and 21 private companies
have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled
fledgling private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,
braving stiff competition from private insurers. Though the total volume of LIC's
business increased in the last fiscal year (2004-2005) compared to the previous
one, its market share came down from 87.04 to 78.07%. The 14 private insurers
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increased their market share from about 13% to about 22% in a year's time. The
figures for the first two months of the fiscal year 2005-06 also speak of the
growing share of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private insurance
companies collectively have a 10% share of the non-life insurance market.

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CHAPTER 2
INTRODUCTION TO HDFC
STANDARD LIFE INSURANCE

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2.1. HDFC
The Housing Development Finance Corporation Limited (HDFC Bank) was
incorporated in 1977 with a share capital of Rs. 10 crores and 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 has
since emerged as the largest residential mortgage finance institution in the country.
The Bank commenced operations as a Scheduled Commercial Bank in January
1995. HDFC was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the
RBI's liberalization of the Indian Banking Industry in 1994. The corporation has
had a series of share issues raising its capital to Rs. 119 crores. The net worth of
the corporation as on March 31, 2000 stood at Rs. 2,096 crores.

HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai,
U.A.E., with service associates in Kuwait, Oman and Qatar.

HDFC Bank has a network of over 531 branches spread over 228 cities across
India. All branches are linked on an online real-time basis. HDFC Banks
Customers are serviced through Telephone Banking in over 120 locations. The

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Bank also has a network of about over 1054-networked ATMs across these cities.
HDFC Bank's ATM network can be accessed by all domestic and international
Visa
MasterCard
Visa Electron
Maestro
Plus
Cirrus and American Express Credit
Charge cardholders.

HDFC Bank has won many awards for its excellent service. Major among them
are "Best Bank in India" by Hong Kong-based Finance Asia magazine in 2005 and
"Company of the Year" Award for Corporate Excellence 2004-2005.

The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional
manner, and to promote home ownership. Another objective is to increase the flow
of resources to the housing sector by integrating the housing finance sector with
the overall domestic financial markets.

HDFCs main goals are to

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 Develop close relationships with individual households,

Maintain its position as the premier housing finance institution in the
country,
Transform ideas into viable and creative solutions,
Provide consistently high returns to shareholders,
To grow through diversification by leveraging off the existing client base.

HDFC has always been market-oriented and dynamic with respect to resource
mobilization as well as its lending programmed. This renders it more than capable
to meet the new challenges that have emerged. Over the years, HDFC has
developed a vast client base of borrowers, depositors, shareholders and agents, and
it hopes to capitalize on this loyal and satisfied client base for future growth.
Internal systems have been developed to be robust and agile, to take into account
changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with some of

the best institutions in the world, for providing specialized financial services. Each
institution is being fine-tuned for a specific market, while offering the entire
HDFC customer base the highest standards of quality in product design, facilities
and service.

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2.2. Standard Life

Standard Life is Europe's largest mutual life assurance company. Standard Life,
which has been in the life insurance business for the past 175 years, is a modern
company surviving quite a few changes since selling its first policy in 1825. The
company expanded in the 19th century from its original Edinburgh premises,
opening offices in other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over 70 billion under its
management and has the distinction of being accorded "AAA" rating consequently
for the past six years by Standard & Poor.

2.3. The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies
to be granted license by the IRDA to operate in life insurance sector. Each of the
JV player is highly rated and been conferred with many awards. HDFC is rated
'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by
Moody's and Standard and Poors. These reflect the efficiency with which HDFC
and Standard Life manage their asset base of Rs. 15,000 Crores and Rs. 600,000
Crores respectively.

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HDFC Standard Life Insurance Company Ltd was incorporated on 14th August
2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and
Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of
the venture.

HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and a Group
Company of the Standard Life, UK. HDFC as on March 31, 2007 holds 81.9 per
cent of equity in the joint venture

2.3.1 Board Of Directors

Following are the board of directors of HDFC Standard Life Insurance LTD.
Mr. Deepak S. Parekh (CHAIRMAN)
Mr. K. M. Mistry
Ms. Renu Sud Karnad
Mr. A. M. Crombie
Ms. Marcia D. Campbell
Mr. Norman Keith Skeoch
Mr. G. R. Divan
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 Mr. Ranjan Pant

Mr. Ravi Narain
Mr. Gerald Edgar Grimstone
Mr. D. M. Satwalekar (MANAGING DIRECTOR & C.E.O)

2.3.2 Subsidiary Companies

Following are the some subsidiary companies of HDFC Standard Life Insurance
LTD.
HDFC Limited (Holding Company)
Standard Life Assurance Company (Investing Party)
HDFC Asset Management Company Limited (Fellow Subsidiary)
HDFC Developers Limited (Fellow Subsidiary)
HDFC Holdings Limited (Fellow Subsidiary)
HDFC Trustee Company Limited (Fellow Subsidiary)
HDFC Realty Limited (Fellow Subsidiary)
HDFC Investment Limited (Fellow Subsidiary)
HDFC Chubb General Insurance Company Limited (Fellow Subsidiary)
GRUH Finance Limited (Fellow Subsidiary)
Home Loan Service India Private Limited (Fellow Subsidiary)
HDFC Venture Capital Limited (Fellow Subsidiary)

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 HDFC Venture Trustee Company Limited (Fellow Subsidiary)

HDFC Property Ventures Limited (Fellow Subsidiary)

2.4. Our Key Strengths

Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has
the financial expertise required to manage our long-term investments safely and
efficiently.

Range of Solutions
They have a range of individual and group solutions, which can be easily
customized to specific needs. There group solutions have been designed to offer us
complete flexibility combined with a low charging structure.

Track Record so far

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

2.5. Products Of HDFC Standard Life Insurance

HDFC Standard Life Insurance has offered the following products: Group Products
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 Social Products
Rural Products
Individual Products

2.6. Life Stages In HDFC Insurance Plan

Insurance need will change as our life does, from starting to work to enjoying our
golden years and all the stages in between. Each one of these stages may pose a
different insurance need/cover for us. There are basic life stages, which help us to
analyze various insurance needs accordingly.

Stage 1
Young and Single
An important stage where one lays down the foundation of a successful life
ahead. Take advantage of the time and power of compounding to ensure that
you build up your dreams. Start saving early.
Our needs
o Save for a home and wedding
o Tax planning
o Save for golden years

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 Stage 2
Just married
Marriage brings about a significant change. New dreams and new opportunities
also bring in additional responsibilities. While both of us look forward to a
happy and secure life, it is equally important to ensure that eventualities dont
come in the way of shaping your dreams.
Our needs
o Planning for home / securing your home loan liability
o Save for vacation
o Save for your first child

Stage 3
Proud Parents
Once we have children, our need for life insurance is even more. We need to
protect our family from an untoward incident. Ensure our protection umbrella
takes into account the future cost of securing our childs dream. We will want
life to go on for your loved ones, and having enough life insurance is a way to
help ensure that.
Our needs
o Provide for childrens education

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o Safeguarding family against loan liabilities

o Savings for post-retirement

Stage 4
Planning for Retirement
While we are busy climbing the ladder of success today, it is important for us
to take time and plan for our life after retirement. Having an early start for
retirement planning can make a significant difference to our savings. Think
about our golden years even before we have reached them. The key is to think
ahead and plan well using your time and money.
Our needs

o Provide for regular income post retirement

o Immediate Tax benefits

o Lead a secure, independent and comfortable life style in

your retirement years

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- 27 -

CHAPTER 3
GROUP PRODUCTS
OF
HDFC SLIC

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3. Group Products
HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit
solutions to their employees. We offer different products for different needs of
employers ranging from term insurance plans for pure protection to voluntary
plans such as superannuation and leave encashment.

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

3.1. Group Term Insurance

Whatever the business Its the people who make it a success. Everybody
requires some type of life insurance, especially when others depend on them
financially.
The Group Term Insurance (GTI) plan meets this need and serves as an ideal
way for companies to reinforce their bond with their employees. The sort of
needs, you, as an employer need to cater to could be in form of :
Employee benefits
Cover for housing or vehicle loans given by you to your employees
A GTI cover for future service gratuity liability to be taken along with
the HDFC Group Unit Linked Plan

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The HDFC Group Term Insurance is a cost-effective plan that addresses these
needs. In addition you have the choice to opt for a GTI with an experience
discount feature ("Profit Share"), where a discount is given on future
premiums in case of favorable claim experience (subject to group size).

The HDFC group term insurance plan will have the following structure:
One year renewable term insurance plan
One master policy issued covering all members of the group
Sum assured is payable on death (either due to natural causes or
accidents)

The plan covers death due to any cause; accidental or natural, and hence is
more comprehensive than Group Personal Accident Insurance. Several
multinational corporations, large Indian companies, foreign banks and software
companies have already chosen the HDFC Group Term Insurance, an
innovative product from HDFC Standard Life Insurance, to protect their
employees.

Optional Rider Benefits

Accidental Death Benefit
Total Permanent Disability

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 Total Permanent and Partial Diability Benefit

Critical Illness Benefit
Terminal Illness Benefit

3.2. Group Variable Term Insurance

The Group Variable Term Insurance is a tailor made insurance policy for third
party institutions. HDFC Standard Life Insurance Company will offer life
insurance to customers of one or more of the third partys specific products in
order that in the event of their death, there will be a lump sum available.
On death, will pay a lump sum known as a sum assured. The sum
assured varies over time in order that the customer receives the cover
that they need
Is a group policy
Has no lengthy underwriting procedure
Is simple to administer

3.3. Group Unit Linked Plans

An investment solution that provides funding vehicle to manage corpuses with

3.3.1. Gratuity schemes

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Most employers have a statutory obligation to pay a gratuity to its

employees on termination of employment. This gratuity is in the form of a
one-off payment made on termination of employment. It depends on salary
and number of years of service, so will therefore increase with time. The
HDFC Group Unit Linked plan is a new and innovative unit-linked plan,
which offer employers and gratuity scheme trustees a flexible and cost
effective way to fund this gratuity liability. The plan helps a corporate by:
Building a fund systematically, which will be used to meet
your future gratuity liability
Providing the opportunity to maximise investment returns and
thus provide the benefit in a cost-effective manner
One factor that helps you to maximise the investment returns is low
charges. Our charges are the lowest in the industry and therefore can
improve your long-term returns.

3.3.2. Superannuation schemes

Many organisations realise that the statutory requirement benefits are not
sufficient for their trusted employees to continue enjoying their quality of
life after they retire. The HDFC Group Unit Linked Plan is a great way for
an employer to show his employees that he not only takes care of them

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while in service, but has also ensured that they can lead a comfortable life
after retirement.
The HDFC Group Unit Linked plan is also a great employee retention and
motivation tool that helps employers to fund their employees postretirement needs in a systematic, tax-efficient and cost-effective manner.
Moreover, as a unit-linked plan, it gives you tremendous flexibility and
freedom to customise individual retirement funds for your employees based
on their appetite for risk and the stage of life they are in.
This plan helps an organisation by:
Providing an investment vehicle to trustees for making the
contribution for each member
Helping build a substantial retirement fund for each member
Presenting a potential to provide higher benefits to employees
Offering tax benefits for investments made through the formation of
a trust

3.3.3. Leave Encashment schemes

Many employers provide their employees with the option of encashing their
leave to their credit at the time of retirement or resignation. Accounting
Standard 15 requires that an actuarial valuation of a company leave
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encashment liability be carried out and reflected in the books of accounts.

The HDFC Group Unit Linked Plan is an innovative plan, which offers
employers a flexible and cost effective way to fund this Leave Encashment
liability. The plan helps an organisation by:
Creating a fund that can be built up to meet your future leave
encashment liability
Providing the opportunity to maximize investment returns and thus
provide the benefit in a cost-effective manner

One factor that helps maximise investment returns is low charges. Our fund
management charges are the lowest in the industry today and therefore can
improve your long-term returns.

Also suitable for other employee benefit schemes such as Salary Saving Schemes
and Wealth Management Schemes

- 34 -

CHAPTER 4
SOCIAL PRODUCTS
OF
HDFC SLIC

- 35 -

4. Social Products

4.1. Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to
members of a Development Agency for a term of one year. On the death of any
member of the group insured during the year of cover, a lump sum is paid to
that members beneficiaries to help meet some of the immediate financial
needs following their loss.

4.1.1. Eligibility
Members of the development agency and their spouses with
Minimum age at start of Policy is 18 Years and Maximum age at
start of Policy is 50 Years As Per Last Birthday

Employees of the Development Agency are not eligible to join the group.
The group to be covered is only eligible if it contains more than 500
Members.

4.1.2. Premium Payments

The premium to be paid will be quoted per member in the group and will be
the same for all members of the group.

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

lump sum that includes all premiums for the group to be covered. Cover
will not start until the premium and all the member information in our
specified format has been received.
The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

4.1.3. Benefits
On the death of each member covered by the policy during the year of
cover a lump sum equal to the sum assured will be paid to their
beneficiaries or legal heirs. Where the death is as a result of an accident, an
additional lump sum will be paid equal to half the sum assured. There are
no benefits paid at the end of the year of cover and there is no surrender
value available at any time.

4.1.4. The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be
passing certain administrative tasks onto the Development Agency. By
passing on these tasks the premium charged can be lower. These tasks
would include:
Submission of member data in a specified computer format
Collection of premiums from group members

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 Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to
group members
These tasks would be in addition to the usual duties of a policyholder such
as:
Payment of premiums
Reporting of claims
Keeping policy holder information up to date
Training and support will be available to give guidance on how to complete
the tasks appropriately.
Since these additional tasks will impose a burden on the Development
Agency, the Development Agency may charge a Rs. 10 administration fee
to their members.

4.1.5. Prohibition of rebates

Section 41 of the Insurance Act, 1938 states
No person shall allow or offer to allow, either directly or indirectly,
as an inducement to any person to take out or renew or continue an
insurance in respect of any kind of risk relating to lives or property
in India, any rebate of the whole or part of the commission payable
or any rebate of the premium shown on the policy, nor shall any

- 38 -

person taking out or renewing or continuing a policy accept any

rebate, except such rebate as may be allowed in accordance with the
published prospectus or tables of the insurer
If any person fails to comply with sub regulation (previous point)
above, he shall be liable to payment of a fine which may extend to
rupees five hundred

- 39 -

CHAPTER 5
RURAL PRODUCTS
OF
HDFC SLIC

- 40 -

5. Rural Products

5.1. HDFC Gramin Bima Mitra Yojna

Timely preparedness for uncertainties of the future can go a long way towards
living a life of confidence. HDFC Gramin Bima Mitra Yojana provides this
preparedness through robust returns even on an investment as small as Rs. 500
by adding 50% to your original investment in 3 years. In addition to the
guaranteed returns, the plan offers the security of a life insurance cover and the
flexibility to exit prematurely. HDFC Gramin Bima Mitra Yojana is a special
offering from HDFC Standard Life, exclusively for the benefit of our rural
customers.

5.1.1. Product Features

On survival of the life assured to maturity of the plan which is 3 years after
the inception date, a guaranteed maturity benefit of Rs. 750 is payable.

On termination of the plan before maturity, the guaranteed benefits payable

are (in Rs.):
During Year
On Death
On Surrunder

1
5000
500

2
5000
575

5.1.2. Eligibility

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3
5000
650

To be eligible for this plan, age at entry of the life assured must be between
18 and 50 years of age. This policy can be taken only on a single-life basis.

5.1.3. Premium
A single premium of Rs. 500 is due on the date of commencement. There
are no further premium/s due.

5.2. HDFC Bima Bachat Yojna

5.2.1. Product Feature
A single premium of Rs. 500 is due on the date of commencement. There
are no further premium/s due. This policy does not participate in profits.

On survival of the life assured to maturity of the plan which is 5 years after
the inception date, a maturity benefit of Rs. 1000 is payable.

On termination of the plan before maturity, benefits payable are (in Rs.):

During Year
On Death
On Surrunder

1
5000
500

2
5000
550

3
5000
625

5.2.2. Eligibility
- 42 -

4
5000
700

5
5000
850

To be eligible for this plan, age at entry of the life assured must be between
18 and 50 years of age. This policy can be taken only on a single-life basis.

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CHAPTER 6
INDIVIDUAL PRODUCTS
OF
HDFC SLIC

6. INDIVIDUAL PRODUCTS
We at HDFC Standard Life realise that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose

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from to suit all your needs. These will help secure your future as well as the future
of your family.

6.1. PROTECTION PLANS

You can protect your family against the loss of your income or the burden of a
loan in the event of your unfortunate demise, disability or sickness. These plans
offer valuable peace of mind at a small price.
Our Protection range includes

6.1.1. HDFC Term Assurance Plan

The HDFC Term Assurance Plan is an insurance policy that is designed to
help secure your family's financial needs. The plan does this by providing a
lump sum to the family of the life assured in case of death or critical illness
(if option is chosen) of the life assured during the term of the contract. One
can choose the lump sum that would replace the income lost to one's family
in the unfortunate event of one's death

6.1.2. HDFC Loan Cover Term Assurance Plan

This Plan provides a lump sum on the unfortunate death of the life assured
within the policy term. If you are taking a loan to buy a house for your
family, this plan can help you ensure that life's uncertainties do not affect
their shelter. It is an affordable plan that has been designed to help your
family repay the outstanding loan in case of your unfortunate death. The
lump sum will be a decreasing percentage of the initial Sum Assured as the

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outstanding loan decreases as per the loan schedule, the cover under the
policy also decreases as per the policy schedule.

6.1.3. HDFC Home Lone Protection Plan

The HDFC Home Loan Protection Plan provides you with the comfort of
knowing that should you die; a sum of money will be available towards
repaying your housing loan. This means that your dependants will be secure
in your family home.
Benefits
A decreasing sum assured payable if you die during the term of the
contract. This sum assured is intended to help pay-off your
outstanding home loan. By reducing the sum assured as the years go
by, we ensure that you do not pay for protection you dont need.
Your commitment
To avail yourself of this policy, you only need to pay us a single
premium in advance. It may be possible to include this premium in
the loan amount and repay as part of your instalments.

6.2. INVESTMENT PLANS

Our investment products are well suited to meet your long-term needs.
Our investment range include

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6.2.1. Single Premium Whole Life Plan

The well-informed rightly said and proves how important investments are
In todays date and age. The question that we all fear is What about the
risks attached?
GOOD NEWS for all the people who are anxious the same way! HDFC
Standard Life Insurance brings to you a safe investment plan that would
take care of your savings and nurture your earnings
HDFC Single Premium Whole of Life Insurance Plan.
HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan
well suited to meet your long-term investment needs. This participating
plan offers you the following benefits:

Whole of life plan aimed at providing long-term real growth of your

money

Single premium investment plan

In case of your unfortunate demise during the policy term, this
participating (With Profits) insurance plan will pay your family the
Sum Assured and compound Reversionary Bonuses, which are
usually added annually. An additional Terminal Bonus may be paid
depending on the performance of the underlying investments

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 During Guaranteed Surrender Periods you get the Sum Assured and
all bonuses vested as at the date of surrender

6.2.2. Unit Linked Wealth Maximum Plus

In This Policy, The Investment Risk In Investment Portfolio Is Borne By
the Policy holder
You have given your best to everything in life. And you will settle for
nothing but the best for yourself and your family. No wonder, you want an
investment plan that enhances your investment returns. We present HDFC
Unit Linked Wealth Maximiser Plus, a unique single premium investment
plan that strives to maximise your investment returns and takes care of your
familys protection need. So that while you reap potential returns of your
investment, your and yours familys financial independence is also secured.

6.3. PENSION PLANS

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

6.3.1. Personal Pension Plans

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Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will you be
able to continue at the same pace? Will your income be the same forever?
Will you be able to live life on your own terms even after you retire

6.3.2. HDFC Personal Pension Plan

We understand your need to build a secure future for yourself. Hence, the
HDFC Personal Pension Plan is an insurance policy that is designed to
provide a post - retirement income for life with the freedom to choose your
retirement date.
You can choose your premium, the Sum Assured and your retirement date.
At the end of the policy term, you will receive the Sum Assured plus any
attaching bonus, which will provide your post retirement income.
The HDFC Personal Pension Plan is an insurance policy, which can benefit
you in the following ways:
We understand your need to build a secure future for yourself. Hence, the
HDFC Personal Pension Plan is an insurance policy that is designed to
provide a post - retirement income for life with the freedom to choose your
retirement date.
You can choose your premium, the Sum Assured and your retirement date.
At the end of the policy term, you will receive the Sum Assured plus any
attaching bonus, which will provide your post - retirement income.
- 49 -

The HDFC Personal Pension Plan is an insurance policy, which can benefit
you in the following ways:

Provides a post retirement income in your golden years

Gives you the flexibility to plan your retirement date
Gives you tax benefits on your premiums
The plan receives simple Reversiory Bonuses, which are usually added
annually. At the end of the term an additional Terminal Bonus may be paid
depending on the performance of the underlying investment.
Don't compromise on your self-respect, ever. Go ahead, hold your head
high and enjoy life with the HDFC Personal Pension Plan.

6.3.3. Unit Linked Pension

Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will you be
able to continue at the same pace? Will your income be the same forever?
Will you be able to live life on your own terms even after you retire
The HDFC Unit Linked Pension is an insurance policy that is designed to
provide a retirement income for life with the freedom to maximise your
investment returns. Stride into yours gold years of retirement with dignity
and pride.
The HDFC Unit Linked Pension gives you:

- 50 -

 An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

A post retirement income for life

Flexibility to plan your retirement date
Freedom to invest premiums as per your preference.
HDFC Standard Life is the name of our Insurance Company and HDFC
Unit Linked Pension is the name of this plan. The name of our company
and the name of our plan do not, in any way, indicate the quality of the
plan, its future prospects or returns.

6.3.4. Unit Linked Pension Plus

Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will you be
able to continue at the same pace? Will your income be the same forever?
Will you be able to live life on your own terms evenafter you retire?
The HDFC Unit Linked Pension Plus is an insurance policy that is designed
to provide a retirement income for life with the freedom to maximise your
investment returns. Stride into your golden years of retirement with dignity
and pride.
The HDFC Unit Linked Pension Plus gives you:

- 51 -

 An outstanding investment opportunity by providing a choice of

thoroughly researched and selected investments

Regular Loyalty Units to boost your fund value every year

A post retirement income for life
Flexibility to plan your retirement date
Freedom to invest premiums as per your preference
HDFC Standard Life is the name of our Insurance Company and HDFC
Unit Linked Pension Plus is the name of this plan. The name of our
company and the name of our plan do not, in any way, indicate the quality
of the plan, its future prospects or returns.

6.3.5. Immediate Pension Plan

The HDFC Immediate Annuity is a contract that uses your capital to
provide you with a guaranteed gross income through out your lifetime or
over a period of your choice. The income is guaranteed and is unaffected by
the rise and fall of interest rates. This means you can plan your life the way
you want it to be, safe in the knowledge that your gross income will not fall
during the period you have selected.
The HDFC Immediate Annuity offers a number of options to meet all your
income needs.
Flexibility in how you receive your income

- 52 -

You can choose to receive your income at times to suit your own
circumstances.
Monthly
Every 3 months
Every 6 months
Once a year
The annuity can be paid in advance or arrears i.e. either at the start or the
end of the payment period you have chosen.

6.4. SAVINGS PLAN

Our Savings Plans offer you flexible options to build savings for your future
needs such as buying a dream home or fulfilling your childrens immediate and
future needs. Our saving range includes:

6.4.1. Endowment Assurance Plan

The HDFC Endowment Assurance Plan gives you:
An ideal way to secure your long-term financial goals
Valuable protection to your family by way of lump sum payment in
case of your unfortunate demise within policy term
Lump sum payment (basic Sum Assured plus any bonus additions)
on survival up to maturity date
Very flexible benefit options and payment options
- 53 -

In case of your unfortunate demise during the policy term, this participating
('With Profits') insurance plan will pay your family the Sum Assured
(together with the attached bonuses) you had chosen. The plan receives
simple Reversionary Bonuses, which are usually added annually. At the end
of the term an additional Terminal Bonus may be paid depending on the
performance of the underlying investment.

6.4.2. Assurance Plan

To fulfil your dreams for your family and yourself, you need to start saving
today. And you not only need to save enough but also need the assurance
that your familys future is secure Get the convenience of HDFC Assurance
Plan. HDFC Assurance Plan helps you conveniently build your long-term
savings while keeping your familys future protected.
This plan offers you the following features

Convenient no medical examination procedure

Insurance cover up to Rs. 5 Lakh with limited documentation
You can choose to save monthly, quarterly, half yearly or yearly as
per your convenience

The annual amount you pay is eligible for tax relief under Sec. 80 C
The maturity amount is completely tax-free under Section 10(10 D)
What is HDFC Assurance Plan?

- 54 -

This plan is a with profits savings policy, which offers the following
features :

The policy receives simple reversionary bonuses, which are usually

added annually.

At maturity, the policy pays out the basic Sum Assured plus
reversionary bonuses declared during the policy term. Interim or
terminal bonus are also be payable if declared.

The policy can be surrendered for cash value before maturity

Provides financial support to your family by way of a lumpsum
payment in case of your unfortunate death within the term of the
policy. The lumpsum is the basic sum assured plus any bonus
additions

6.4.3. Savings Assurance Plan

Inspite of your best efforts, you do not end up savings regularly for your
familys and your future. Unexpected expenses, unplanned purchases and
often, sheer lack of time defeat your efforts. Dont you wish that someone
would take on the responsibility of regularly savings your money for you?
Auto build your savings with HDFC Savings Assurance Plan.
HDFC Savings Assurance Plan helps you conveniently build your long
term savings.
This plan offers you the following features :
- 55 -

 You can choose to save monthly, quarterly, half yearly or yearly as

per your convenience

The chosen amount is automatically invested from your bank

account into the plan.

You can choose to invest as little as Rs. 200 per month. And there is
no limit to the maximum amount.

No underwriting or extensive documentation required.

The annual amount you pay is eligible for tax relief under Sec. 80 C
The maturity amount is completely tax-free under Section 10(10 D)
6.4.4. Childrens Plan
As a parent, your priority is your child's future and being able to meet your
child's dreams and aspirations. Today, providing a good education,
establishing a professional career or even a modest wedding is expensive.
Costs are increasing fast. Just imagine how much you'll need when your
child takes these important steps in life.
The HDFC Children's Plan is designed to secure your child's future by
giving your child (the beneficiary) 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 long-term
returns. The plan receives simple Reversionary Bonuses, which are usually

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added annually. At the end of the term an additional Terminal Bonus may
be paid depending on the performance of the underlying investment.

6.4.5. Money Back

A proportion of the basic Sum Assured as Cash lump sums at regular

5-year intervals within the policy term (see the table given below) an
ideal way to secure your long- term as well as short-term financial
goals.

A lump sum payment on survival up to maturity date.

Valuable protection to your family by way of lump sum payment in
case of your unfortunate death within the policy term. This is over
and above any earlier payouts.

6.4.6. Unit Linked Endowment Suvidha

In This Policy, The Investment Risk In Investment Portfolio Is Borne By
the Policyholder. You have given your family the very best. And there is no
reason why they should not get the very best in the future too. With HDFC
Unit Linked Endowment Suvidha, you can ensure that your family remains
financially independent, even if you are not around. You can ensure that
they live a life of respect and dignity.

- 57 -

CHAPTER 7
COMPETITIVE ANALYSIS

- 58 -

7. COMPETITIVE ANALYSIS
7.1 LIFE INSURANCE CORPORATION OF INDIA (LIC)

LIC has an excellent money back policy which provides for periodic payments of
partial survival benefits as long as the policy holder is alive. 20% of the sum
assured is payable after 5, 10, 15 and 20 years and the balance 40% is payable at
the 20th year along with accrued bonus.

For a 25 years term , 15% of the sum assured becomes payable after 5,10,15 and
20 years and the balance 40% plus the accrued bonus becomes payable at the 25 th
year. An important feature of these types of policies is that in the event of the death
of the policy holder at any time within the policy term the death claim comprises
of full sum assured without deducting any of the survival benefit amounts which
have already been paid. The bonus is also calculated on the full sum assured.

HDFC SLIC does not have a money back policy. It could offer a money back plan
and capture some portion of this market. While marketing insurance products I
found that many customers wanted to purchase these plans.

LIC offers 66 different plans; plans are formulated for specific occasions whole
life plans, term assurance plans, money back plan for women, child plans, plans

- 59 -

for the handicapped individuals, endowment assurance plans, plans for high worth
individuals, pension plans, unit linked plans, special plans, social security schemes
diversified portfolio of products. HDFC SLIC could diversify its product
portfolio. It could add more plans for high worth individuals and women.

7.2 ICICI PRUDENTIAL

ICICI Prudential is a stiff competitor for HDFC SLIC. The company is a merger
between ICICI Bank which is the biggest private bank in India and Prudential Plc
which is a global life insurance company.

The company has an investment plan which is market related Invest Shield Life.
In this plan even if the market falls, the premium will be returned to investors. It is
a guaranteed plan which ensures the company carefully invests your money. The
stock market performance of ICICI Prudential is much better than HDFC SLIC.
The returns on the growth fund were 46.28% compared to the 42.70% offered by
HDFC SLIC. Customers are attracted by higher returns and this is a plus point for
Prudential.

The company is very well advertised. The advertisements are showcased in

movies, television, newspapers, magazines, bill boards, radio etc. The company
has an excellent brand ambassador Mr. Amitabh Bacchan. His promotion of the
company builds trust and faith in the minds of our people.
- 60 -

However the charges are very high in the plans offered by ICICI Prudential. It is
35% during the first year, 15% in the next year and 3% from the third year
onwards. Also a higher minimum premium of Rs. 8000 is charged. Hence the
policies are not accessible to the lower strata of the society.

7.3 BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya
Birla Group, one of the largest business houses in India and Sun Life Financial
Inc., a leading international financial services organization. The local knowledge
of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc.,
offers a formidable protection for your future.

The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market
capitalization of Rs. 53400 crores (as on 31st March 2007). It has over 72000
employees across all its units worldwide. It is led by its Chairman - Mr. Kumar
Mangalam Birla. Some of the key organizations within the group are Hindalco and
Grasim.

Sun Life Financial Inc. and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Hong
Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. It had assets
- 61 -

under management of over US$343 billion, as on 31st March 2007. The company
is a leading player in the life insurance market in Canada.

Being a customer centric company, BSLI has invested heavily in technology to

build world class processing capabilities. BSLI has covered more than a million
lives since inception and its customer base is spread across more than 1000 towns
and cities in India. All this has assisted the company in cementing its place
amongst the leaders in the industry in terms of new business premium income. The
company has a capital base of 520 crores as on 31st July, 2007.

Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100
years of age. There are guaranteed returns of 3% p.a. net of policy charges after
every 5 years from the eleventh policy year onwards. However the charges are
very high. The initial charges for the first year are 65%. Hence the fund value is
greatly reduced.

7.4 BAJAJ ALLIANZ

Bajaj Allianz is a joint venture between Allianz AG with over 110 years of
experience in over 70 countries and Bajaj Auto, a trusted automobile manufacturer
for over 55 years in the Indian market. Together they are committed to offering
you financial solutions that provide all the security you need for your family and
yourself. Bajaj Allianz is the number one private life insurer for the year 2005
- 62 -

2006. It is leading by 78 crores. It has experienced a whopping growth of 216% in

the last financial year.

The company has sold 13, 00,000 policies and is backed by 550 offices across
India. It offers travel insurance, motor insurance, home insurance, health and
corporate insurance. The mortality charges are lower than HDFC SLIC. The entry
age could be zero years which allow even new born babies to be insured.

7.5 TATA AIG

Tata Aig is a joint venture between the Tata group and American International
Group Inc. In one of the plans the company offers hospital cash benefit wherein it
will pay Rs. 2500 per day in case of hospitalization and Rs.12.5 lakhs in case the
person suffers from any critical illness. Annual premium is much less (about Rs.
6712) to avail such a good benefit. Charges are relatively low compared to HDFC
SLIC for some policies.

The company offers high coverage plans at low cost. There is a plan even for a
policy term of 1 year. Your family can continue to enjoy their current lifestyle even
in the case of something happening to you. These plans are very flexible and
HDFC SLIC could adopt this idea of insuring individuals for short periods of time.
For example; there is a family of four. The only earning member is the father.

- 63 -

He has just taken a loan from a bank of 20 lakhs to purchase a new home. He is
able to repay the loan with his current salary in 15 years. The problem arises if
something were to happen to him within these fifteen years. Not only will the
family face the emotional and financial loss of their father but they will also have
to repay the home loan or risk being homeless.

- 64 -

CHAPTER - 8
CONCLUSION

- 65 -

HDFC standard life insurance is first life insurance company in India. It has
businesses spread out across the globe. It was registered on 23 rd December 2000.
The company faces a large amount of competition. To sustain itself it must
promote its products through advertising and improve its selling techniques.
Consumers are well aware of the new plans available at HDFC SLIC. The medium
of advertising used by HDFC Standard Life Insurance is television since most of
its competitors use this tool to promote their products. The company is promoted
as an Indian company since consumers seem to have more trust in investing in
Indian firms.
The unit linked concept is specifically promoted. The general perception of life
insurance has to change in India before progress is made in this field. People
should not be afraid to invest money in insurance and must use it as an effective
tool for tax planning and long term savings.
HDFC SLIC could tap the rural markets with cheaper products and smaller policy
terms. There are individuals who are willing to pay small amounts as premium but
the plans do not accept premiums below a certain amount. It was usually found
that a large number of males were insured compared to females. Individuals below
the age of 45 (mostly male) were interested in investment plans. This was a
general conclusion drawn during prospecting clients.

- 66 -

BIBLIOGRAPHY

- 67 -

BIBLIOGRAPHY
WEBSITES
1. www.lic.com
2. www.birlasunlife.com
3. www.hdfc.com
4. www.icici.com
5. www.bajajaliaanz.com

MAGAZINE
6. India Today
7. Business Today

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