Minor Project

ON

STUDY ON DISTRIBUTION ENHANCEMENT OF HDFC LIFE.

[Submitted in Partial Fulfillment] BACHELOR OF BUSINESS ADMINISTRATION [BBA] [Third Semester 2010-1013]

SUBMITTED BY SHUBHAM BHATIA (05311401710) BBA (III SEM) From

UNDER THE SUPERVISION MR. S.THIYAGRAJAN

(INTERNAL PROJECT GUIDE)

Bhai Parmanand Institute of Business Studies (Government of Delhi) Shakarpur-92

Affiliated to Guru Gobind Singh Indraprastha University, Delhi.

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES SHAKARPUR, DELHI DATE:

DECLARATION BY THE CANDIDATE

I hereby declare that the work, which is being presented in the project, entitled Study on Distribution enhancement of HDFC LIFE. is an authentic record carried of my own work carried out by me under the supervision and guidance of MR. S.Thiyagarajan , Project Guide, BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES, Shakarpur , Delhi.

This project was undertaken as a part of the curriculum of Guru Gobind Singh Inderprastha University, Delhi for the partial fulfilment of MBA from Bhai parmanand Institute of Business Studies, Shakarpur. I have not submitted the matter embodied here in this project for the award of any other degree/diploma.

SHUBHAM BHATIA ROLL NO. 0531140171 B.B.A, 3RD SEMESTER BHAI PARMANAND INSITUTE OF BUSINESS STUDIES, SHAKARPUR, DELHI.

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES SHAKARPUR, DELHI DATE:

CERTIFICATE BY THE CANDIDATE This is to certify that MR. SHUBHAM BHATIA ROLL NO. 05311401710, Student of BBA-3rd semester, has satisfactory completed his Project Research Title- study on Distribution enhancement of HDFC LIFE. As a part of curriculum under my guidance for the partial fulfilment of B.B.A degree under Guru Gobind Singh Indraprastha University, Delhi for the year 2010-2013.

MR. S.THIYAGARAJAN [BBA-IN-CHARGE] BPIBS, SHAKARPUR

ACKNOWLEDGEMENT The project entitled Study of Distribution enhancement of HDFC LIFE. Was a challenging assignment for me required an improved environment, extensive endeavour and all necessary support. I take this an oppurunity to express my gratitude to MR. S.THIYAGARAJAN my project guide for his able guidance, cooperation and out of box thinking without which this project would not have been exciting at all. The successful progression of my project also gives mre the opportunity to acknowledge and appreciate the staff of the college that provide me much needed stimulating suggestion and encouragement in order to sterr this project towards completion.

SHUBHAM BHATIA

PREFACE
There are number forces that make marketing an endlessly changing activity. The constantly activity sociological, psychological and political environment may represent the uncontrollable marketing factors. To understanding these factors in better way marketing research is of atmost importance.

This

Project Report has

been completed in Partial fulfillment of my

Management Program, Master of Business Administration in the company HDFC STANDARD LIFE INSURANCE. The objective of my project was Enhancement of Channel Distribution.

HDFC STANDARD LIFE is the name which is working as one of the best private insurance company in insurance sector.

With such large population and the untapped market of populations insurance happens to be very big opportunity in India. Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, It adds about 7 percent 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.

CONTENTS
CERTIFICATE OF ORGANISATION CERTIFICATE OF PROJECT GUIDE OBJECTIVE ACKNOWLEDGEMENT EXECUTIVE SUMMARY PROJECT OBJECTIVE

Section 1 : INDUSTRY PROFILE 1) Overview & Historical Perspective 2) Insurance Sector Reforms 3) Nature of Industry 4) Indian Insurance Industry Regulatory Body : IRDA 5) Importance of Liberalization Market share of various players 6) Current Scenario 7) SWOT Analysis of Industry

Section 2 : COMPANYS PROFILE HDFC Ltd. : 1) Introduction 2) Subsidiary & Associate Companies

HDFC STANDARD LIFE 1) Introduction 2) Key Personnel 3) Knowledge Management Life Stages 4) Product Mix 5) Current Sales 6) Future Plans

Section 3 : MAIN SECTION 1) Financial Planning 2) 360 Financial Planning Section 4 : CONCLUSIONS & RECOMMENDATION Section 5 : BIBLIOGRAPHY ANNEXURE

EXECUTIVE SUMMARY

Overall, the life insurance and pension sector is set for rapid changes and growth in the years ahead. Delivering service, building trust and being innovative are key areas in which any company will have to excel in order to do well in the long road ahead. Different companies will take different approaches and it would be myriad of solutions that will be found to delight the Indian customer. During the first part, I was given complete classroom training about the various Commission and Renewal structure, Club Membership-Additional benefit which the company offers. Later, Market Research was done through various activities and tele-calling which are discussed further in the report. Activities led to practical exposure and taught me the aspects of people dealing. Finally, interesting conclusions were drawn out of the data collected regarding the Awareness of Financial Planning among the people in todays environment. It was great experience because conveing general people to make him Financial Consultant are a great deal of confidence.

PROJECT OBJECTIVES

To Enhance Distribution Channel through generate Financial Consultant. To study the awareness of Financial Planning among the people. To study the importance of Insurance in todays scenario.

Brand awareness of various private insurance companies. Preference among different investment tools. Purpose of buying insurance. Preference in choosing channel for buying life insurance. Quality of service provided by agents and clients satisfaction Level.

Customers perception of improvements brought in by entry of Private Insurance Companies.

RESEARCH MEHODOLOGY

D.1 JOB PROFILE

Working in HDFC-SLIC was of a very good learning experience for me. I learned a lot from my unit manager. He taught me different aspects of corporate world and how to make the sales effective. He made sure that I put in my best efforts and gave me the deep insight of insurance sector. From the very beginning he told me that he wont provide me with any kind of leads and databases, so that I put my efforts and generate my own leads and complete my targets in the given time.

During my training I interacted with customers who were very much unknown to me and in the nascent stages I was having a little bit of hitch but later on I started enjoying while interacting with the customers.

D.2 RESEARCH DESIGN :

. The research design applied here was exploratory research and descriptive research. Exploratory Research is one in we dont know about the problem, we have to find about the problem and then work on solving the problem. Whereas in case of descriptive research, we know the problem, we just have to find the solution to the problem. Generally descriptive research design is applied after exploratory research

design. As in first case we tried to find out the problem area, as in initially there was problem in pitching the right thing to the customer and finding out the right customer who is actually interested in entering into the insurance market. Once the problem was known, then descriptive research was applied as to what benefits and extra thing could be given to customer so as to attract the customer.

D.3 RESEARCH TOOL

Research tool: In this project we have used primary data as well as secondary data. Primary data is one in which we find out the raw data through directly contacting the people and asking them to fill in the questionnaire and through some activities ands secondary data is by using the contacts which are already available Primary data is applied as we have used the questionnaire and through marketing activities, secondary data has been used in form of yellow pages, various personal contacts.

SECTION PROFILE.

1-

INDUSTRY

OVERVIEW

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 percent to the countrys GDP .

Important milestones in the life insurance business in India:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs.5 cr. from the Government of India. Important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1972: The general insurance business in India nationalized through The General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies- the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Insurance Sector Reforms

Prior to liberalization of Insurance industry, Life insurance was monopoly of LIC. In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

Structure
Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

Competition Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent

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

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

STATISTICS (INDIAN & GLOBAL)

This section gives the users important and detailed statistics of the Indian as well as the Global insurance industry. These statistics would give important insights of where the respective markets are headed for.

The global life insurance market stands at $1,521.2 billion while the non-life insurance market is placed at $922.4 billion.

The United States itself accounts for about one-third of the $2443.6 billion global insurance market and Japan stands next with a 20.62% share.

India takes the 23rd position with US $9.933 billion annual premium collections and a meager 0.41% share.

Out of one billion people in India, only 35 million people are covered by insurance.

India's life insurance premium as a percentage of GDP is just 1.77 per cent. The income derived by GIC and its subsidiary companies through investment was Rs.2491.76 crore and the investable fund generated was Rs.2843 crore in 1999-2000.

Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real annual growth in GDP.

a variety of perils. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, and fire and storm damage; medical expenses; and loss of income due to disability or death. The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies (Financial Consultant) and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks

covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. Insurance companies assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. In the policy, the companies states the length and conditions of the agreement, exactly which losses it will provide compensation for, and how much will be awarded. The premium charged for the policy is based primarily on the amount to be awarded in case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In order to be able to compensate policyholders for their losses, insurance companies invest the money they receive in premiums, building up a portfolio of financial assets and income-producing real estate which can then be used to pay off any future claims that may be brought. Direct insurance carriers offer a variety of insurance policies. Life insurance provides financial protection to beneficiariesusually spouses and dependent childrenupon the death of the insured. Disability insurance supplies a preset income to an insured person who is unable to work due to injury or illness Health insurance pays the expenses resulting from accidents and illness. An Annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of ones life. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire, theft, and natural disasters. Liability insurance shields policyholders from financial responsibility for injuries to others or for damage to other peoples property. Most policies, such as automobile and homeowners insurance, combine both property-casualty and liability coverage.

Companies that underwrite this kind of insurance are called property-casualty carriers.

What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Risks are unpredictable. Death/disability may occur when one least expects it. There are a number of life insurance products which offer protection and also coupled with savings. A Term insurance product provides a fixed amount of money on death during the period of contract. A Whole Life insurance product provides a fixed amount of money on death. An Endowment Assurance product provided a fixed amount of money either on death during the period of contract or at the expiry of contract if life assured is alive. A Money Back Assurance product provides not only fixed amounts which are payable on specified dates during the period of contract, but also the full amount of money assured on death during the period of contract. An Annuity product provides a series of monthly payments on stipulated dates provided that the life assured is alive on the stipulated dates. A Linked product provides not only a fixed amount of money on death but also sums of money which are linked with the underlying value of assets on the desired dates.

There are a variety of life insurance products to suit to the needs of various categories of peoplechildren, youth, women, middle-aged persons, old people; and also rural people, film actors and unorganized laborers. Life insurance products could be purchased from registered life insurers notified by the IRDA. Insurers appoint insurance agents to sell their products. As per regulations, insurers have to give the various features of the products at the point of sale. The insured should also go through the various terms and conditions of the products and understand what they have bought and met their insurance needs. They ought to understand the claim procedures so that they know what to do in the event of a loss.

INDIAN INSURANCE SECTOR

REGULATORY BODY Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. The Insurance Regulatory and Development Authority (IRDA) Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.

MISSION-IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

IMPACT OF LIBERALISATION
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 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 79% 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).

LIC has the current market share of 79%.

Among the private players ICICI Prudential has the maximum of appx 5.60% Followed by Bajaj Allianz (3.27 %) and HDFC Standard Life of about 3.11%. Below is the table that shows the market share of various players of the industry.

The following companies have the rest of the market share of the insurance industry.

COMPANY NAME
LIC ICICI PRUDENTIAL BAJAJ ALLIANZ HDFC STANDARD LIFE BIRLA SUNLIFE TATA AIG SBI LIFE MAX NEWYORK AVIVA LIFE ING VYSYA OM KOTAK LIFE AMP SANMAR METLIFE RELIANCE LIFE

MARKET SHARE
79.30 5.63 3.27 3.11 2.32 1.45 1.24 0.90 0.82 0.66 0.54 0.38 0.33 0.05

The liberalization of the Indian insurance sector has opened new doors to private competition and the new and improved insurance sector today promises several new job opportunities. With private players now in the field, there will be innovative products, better packaging, improved customer service, and, most importantly, greater employment opportunities.

WHAT DOES LIFE INSURANCE HAVE TO OFFER?

Life insurance is many different things to many different people. For some, it is a premium to be paid on time. For others it offers liquidity since cash can be borrowed when needed. For the investment-minded, it denotes a constantly growing capital account and numerous other benefits. The contractual guarantee is the promise to pay, backed by one of the oldest and most stably regulated financial industry operating in the Indian sub-continent today.

1) Insurance Buys Time and Money

People like to refer to life insurance as time insurance, the reason being that life insurance proceeds are paid to the insured's beneficiaries in case of death. The money proffered by life insurance helps buy time to adjust to the change of circumstances. Insurance provides large amounts of cash that will keep the lifestyle for the survivors the way it was before the insured's death.

2) Insurance Offers Peace of Mind

For the person who buys an insurance policy, it offers absolute and complete peace of mind. He or she knows that the decision made by him will provide sound benefits in the future, whether or not the individual may live to see it.

3) Multiple Applications
The future is uncertain for each and every one. No one knows how long he or she will live. The investment benefit is paid to the insured's beneficiaries after his death or it can be used during the life as well. Life insurance policy owners can turn to the cash value of the policy in case of a financial emergency when all avenues are either blocked or denied.

4) Enduring Elasticity
Since life insurance is flexible enough to serve several needs, the insured can keep several long-term goals in mind once he or she invests in the insurance plan. The cash value of the policy can be allocated towards augmenting the monthly income during the retirement years. Leisure years should be turned into pleasure years. Permanent life insurance is designed on the concepts of long-term flexibility.

5) Financial Security
The insurance policy offers contractual guarantees to people looking for peace of mind when they buy life insurance. Life insurance offers complete financial security. The purchase of life insurance demonstrates concern for a family's future financial well being.

6) Regard for Family

The purchase of life insurance clearly displays care and concern for the people the policy owner loves.

7) Insurance is Safer
No financial institution can do what life insurance does. No industry can back its products with reserves and surplus as sound as those of the insurance industry. The proof of strength and safety that insurance companies have ensured even under the most adverse of conditions is a matter of pride for the entire insurance industry. For generation after generation, life insurance has been acclaimed as the very benchmark of security against which the other industries are measured.

OPPORTUNITIES FOR INSURANCE COMPANIES

In the now open sector on insurance, the following is what I feel will determine the success of the company in particular and the industry in general:
A change in the attitude of the population

Indians have always been wary of employing their hard-earned money in a venture that will pay them on their death. Insurance has always been used as a Tax saving tool. No more, no less. It is depend upon the Financial Consultant to educate the people to secure/insure their future against any unknown calamity and make a shield around their families and businesses.
An open and transparent environment created under the IRDA.

The reason for this being on the top of our understanding is that when ever we have seen any sector open up in India there are always grey areas and unsure policies. These are not exactly what any player, be it Indian or foreign, looks for. It creates an air of uncertainty in all the decision making process. Insurance as a sector requires players who are strong financially and are willing to wait for returns. Their confidence can be bolstered only if there is an open and a transparent policy guidelines. This will also help the consumers feel safe that the regulatory is an active one and cares to do everything possible to keep things under control and help the insurance environment grow maturely.

A well-established distribution network.

To cater to the largest democracy in the world is by no means a cakewalk. Insurance profits are directly related to number of insured and this is in turn related to the reach.
Trained professionals to build and sell the product.

It is said that the insurance agent (Financial Consultant) is the best salesman in the world. He makes you pay, regularly, an amount promising to pay back only on

your death. Thus the players will require an excellent sales team to sell their products in the now competitive environment.
Encouragement of new and better products and letting the hackneyed

ones die out. This will itself ensure the market grows. And that every class/society gets a product that best suits them.

SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTH

1. Best returns with the added advantage of 100% life insurance coverage. 2. Good option for new investors into the market as all the money is invested by best fund managers so with less knowledge also they can earn good returns. 3. Best commission charges paid to the agents which vary from 12% to 40% which is much higher as compared to mutual funds i.e. , only 2-2.5%.

WEAKNESS

1. HDFC SLIC could not able to match LIC in remote areas services. 2. Misleading facts given by Financial Consultant about the returns of ULIPs. 3. Hidden charges taken by the companies. 4. Less Promotional Campaigns.

OPPORTUNITY

1. 80 percent of Indian population is still under insured. So there is a big opportunity for insurance companies. 2. As the stock market can be under the mark any time so it can bring loss to the investors but as in ULIPs there is proper mixture of debt securities and equity so the loss is incurred during dark trading days also. 3. Unit-linked products are exempted from tax and they provide life 4. Increasing consumer awareness about Insurance and its use. insurance.

THREAT

1. Cannibalism within the industry by providing misleading figures to the investors. 2. Govt.s instability has a long term repercussions affecting companys and its growth. policies

CONCLUSION

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India, which is growing at the rate of 15-20 per cent annually. Nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. And also the changing attitude and increasing awareness level of the population is an indicator that growth potential for the insurance sector is immense.

SECTION 2

COMPANYS PROFILE
INTRODUCTION
Helping Indians experience the joy of home ownership. Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India.

OBJECTIVES AND BACKGROUND

Background
HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives
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..

ORGANIZATION AND MANAGEMENT

HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to shareholders. FOUNDER Mr. Hasmukhbhai Parekh BOARD OF DIRECTORS Mr. D S Parekh Chairman Mr. Keshub Mahindra Vice Chairman Ms. Rene S. Karnad Executive Director Mr. K M Mistry Managing Director Mr. Shirish B. Patel Mr. B S Mehta Mr. D M Sukthankar Mr. D N Ghosh Dr. S A Dave Mr. S Venketaraman Dr. Ram S. Tarneja Mr. N M Munjee Mr. D M Satwalekar

HDFC has a staff strength of 1029, which includes professionals from the fields of finance, law, accountancy, engineering and marketing.

SUBSIDIARY & ASSOCIATE COMPANIES

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life

Intelenet Global Services Ltd.

HDFC Chubb General Insurance Company Ltd. HDFC Reality Other Companies Co-Promoted by HDFC HDFC Trustee Company Ltd. HDFC Developers Ltd. HDFC Venture Capital Ltd. HDFC Ventures Trustee Company Ltd. HDFC Investments Ltd. HDFC Holdings Ltd. Home Loan Services India Pvt. Ltd. Credit Information Bureau (India) Ltd

HDFC STANDARD LIFE INSURANCE

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 Cr and Rs. 600,000 Cr respectively. 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.

THE PARTNERSHIP : HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

COMPANYS MISSION: To be the top life insurance company in the market. This not only means being the largest or the most productive company in the market, but a combination of several things like

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

COMPANYS VISION: The most successful and admired life insurance company. Which means that We are the most trusted company, the easiest to deal with offer the best value for money, and set the standards in the industry.

IN SHORT: The most obvious choice for all .

COMPANYS VALUES:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. This is done by offering life insurance and pension products.

TRUST: Company appreciates the trust placed by our policy holders in us. Hence, company will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, company will be offering a range of innovative products to meet these needs.

Companys mission is to be the best new life insurance company in India and these are the values that will guide us in this.

KEY MANAGEMENT PERSONNEL

Chairman

Mr. Deepak S. Parekh

Board Of Directors

Mr. K. M. Mistry Ms. Renu S. Karnad Mr. A. M. Crombie Ms. Marcia D. Campbell Mr. Norman Keith Skeoch Mr. G. R. Divan Mr. G. N. Bajpai Mr. Ranjan Pant Mr. Ravi Narain

Managing Director & CEO

Mr. D. M. Satwalekar

AUDIT COMMITTEE Haribhakti & Company Chartered Accountants B.K. Khare & Co. Chartered Accountants

Bankers

HDFC Bank Ltd. Union Bank of India Indian Bank The Saraswat Co-operative Bank Ltd. Federal Bank

KNOWLEDGE MANAGEMENT

When Should One Go For Insurance? Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly.

Stage 1 : Young and Single This is 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, so start saving early. Your needs: o Save for a home and wedding o Tax Planning o Save for Golden years

Stage 2 - Just Married

Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you 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. Your needs: o Planning for home / securing your home loan liability o o Save for vacation Save for your first child

Stage 3 - Proud Parents Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your childs dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Your needs: o o o Provide for childrens education Safeguarding family against loan liabilities Savings for post-retirement

Stage 4 - Planning for Retirement While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Your needs: o o o Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style after retirement

PRODUCT MIX
At HDFC Standard Life, there is a bouquet of insurance solutions to meet every need. They cater to both, individuals as well as to companies looking to provide benefits to their employees. For individuals, they have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. One can choose from a range of products to suit ones life-stage and needs. For organizations they have customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products.

PRODUCTS FOR INDIVIDUALS

PROTECTION - 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. Plans : Term Assurance Plan Loan Cover Term Assurance Plan.

INVESTMENT - This includes a plan that is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.

Plan :

Single Premium Whole Of Life

PENSION - Our Pension Plans help you secure your financial independence even after retirement and live a relaxed retired life.

Plans :

Personal Pension Plan Unit Linked Pension Unit Linked Pension Plus

SAVING - 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. Plans : Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked Youngstar Plus .

GROUP PLANS

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. They 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.

Plans:

Group Term Insurance with Riders Group Term Insurance with Profit-Share Group Unit-Linked Plan For Gratuity For Defined Benefit Superannuation For Defined Contribution Superannuation Group Leave Encashment Plan

RURAL CUSTOMER - According to research findings, there is keenness among rural customers to invest in savings cum protection plan with a term of five years, especially, if the premium amount is low and affordable. Keeping this in view, HDFC STD> LIFE has plans like:

Plans :

Bima Bachat Yojana. Super Bachat Yojana

DISTRIBUTION OFFICES

In addition to the corporate office at Mumbai, your Company had 169 offices in over 135 cities/towns in the country. It has a widespread network of Financial Consultants, Corporate Agents and Brokers servicing customers in these cities and towns.

FINANCIAL CONSULTANTS

The number of licensed Financial Consultants appointed by your Company increased from over 23,000 in the previous year to over 33,000 in the current year. During the year, the Company continued its

CURRENT SALES- HDFC Standard Life

HDFC STANDARD LIFE PACING AHEAD
The Financial Express

15th May 2010

HDFC Standard Life has recorded a strong year-on-year growth of 112% for the period April-March 2009-10, in comparison to the same period 2008-09, with a new business first year premium of Rs 1,029 crore. In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy and is an internationallyaccepted indicator of an insurance company's performance, the EPI grew by 103% to Rs 887 cr from Rs 436 crore. HDFC Standard Life's growth in new business is a manifestation of the number of lives insured as well as an increase in the average premium. For the individual business, volume measured by the number of lives insured witnessed a 32% growth. The average premium also grew by 62% to Rs 27,500 in 2008-09 from Rs 17,000 in 2004-05.

During the year the company issued over 3,97,000 policies and has covered more than 22,50,000 lives

Table Showcasing Financial Results:

April-March Parameters 2008-09 (Rs. Cr) Total received premium 668.40

April-March 2009-10 (Rs. Cr) 1532.21 Growth (%) 129.23

i. New Business

486.15

1028.94

111.65

ii. Renewal Effective Premium Income (Total) Group Business Premium (EPI)

182.25

503.27

176.14

436.08

887.30

103.47

49.40

135.15

173.58

FUTURE PLANS
HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending program. 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.

SECTION 3- FINANCIAL PLANNING

FINANCIAL PLANNING
A comprehensive financial advisory service involving financial strategies, tax, corporate/trust structures, estate planning, legal issues, family law, asset allocation, asset protection and investment advice.

Financial Planning takes into account: Desired asset allocation, risk profile and return expectations. Building cash flows correlating all expenses and income. Inflation and outflows due to loans are considering in building the financial plan. Future goals like retirement, housing and children's education / marriage or other needs.

Why do you need Financial Planning? You may have many dreams, needs and desires. For example, you could be dreaming of:

Owning a new car, Buying a dream house, Providing your children with the best education, Planning a grand wedding for your children Having a great time after your retirement

But in today's world of skyrocketing costs and increasing inflation, how many of these dreams can you hope to turn into reality? By planning well, you can utilize your limited resources to the fullest.

EXPERIENCE THE POWER 360 FINANCIAL PLANNING

The only thing permanent in life is change. Times change. People change. So does life. You expect life to be much better tomorrow than it is today. Tomorrow, you hope to fulfill all your dreams and aspirations. But what happens if things take an untoward turn? Or, if there is an eventuality? Perhaps it's time for you to change the way you plan your investments...

How will 360 Financial Planning help?

Instead of investing in an ad-hoc manner, 360 Financial Planning helps you take a holistic, all-round view. Briefly, 360 Financial Planning comprises: Investment Planning Cash Flow Planning Tax Planning Insurance Planning Children Future Planning Retirement Planning

INVESTMENT PLANNING: To make your wealth grow Everyone needs to save for a rainy day. Once you have saved enough to take care of emergencies, you should start thinking about investing and to make your money grow. Investment Planning Service includes:

Risk Profiling Asset Allocation and Portfolio Construction Creation and Accumulation of Wealth through Systematic Investment Plans (SIP) Regular review of progress and Portfolio Rebalancing

CASH FLOW PLANNING: To provide for assets and meet the periodic cash requirements In simple terms, cash flow refers to the inflow and outflow of money. It is a record of your income and expenses. Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and making planned investments so that the required amount is accumulated within the required time frame.

TAX PLANNING: To save on taxes and increase your income Proper tax planning is a basic duty of every person which should be carried out religiously. According to the Income Tax Act, 1961, One will be eligible for Tax Benefits under Section 80C and Section 10(10D) of the act. One has to compare the advantages of several tax saving schemes and depending upon your age, social liabilities, tax slabs and personal preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the minimum possible. INSURANCE PLANNING: To protect yourself, your family and your Assets. "Insurance is not for the person who passes away, it for those who survive," goes a popular saying that explains the importance of Insurance Planning. It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality. Insurance Planning is concerned with ensuring adequate coverage against insurable risks.

CHILDREN'S FUTURE PLANNING: To give your children a financially secure future Like every parent, you too must be overjoyed to watch your child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding.

The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years.

RETIREMENT PLANNING: Because retirement is a time to relax, not to get worried Some like it. Some dont. But retirement is a reality for every working person. Most young people today think of retirement as a distant reality. However, it is important to plan for your post-retirement life if you wish to retain your financial independence and maintain a comfortable standard of living even when you are no longer earning. This is extremely important, because, unlike developed nations, India does not have a social security net.

CONCLUSION

The various conclusions drawn from the project are:

There has been a tremendous change in the insurance industry. And with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry. While the LIC, in order to face the competition is coming up with new strategies. New private players are leading the sector due to their strategic management and tailored made projects. From the research, we also conclude that though the awareness and people opting for LIC plans are more as compared to other private players but the latter are gaining momentum in the market day by day. The demand for insurance is likely to increase with rising per-capita income, rising literacy rates, and growth of service sector. In-fact opening up of the insurance sector is an integral part of the liberalization process being persued by many developing countries.

Life insurance as a form of protection is the single-most important financial product any earning member of a family must have. Having said this, a well-diversified portfolio is one of the first rules of financial planning, and as such one should consider different instruments as the ability to save increases. Possible investment options range from bank deposits and government small saving schemes to mutual funds, stocks and property.

So lets conduct this business with utmost economy with the spirit of trusteeship; thereby making insurance widely popular.

RECOMMENDATION
Positioning insurance as a means to fulfilling ones duties during ones lifetime. Fears relating to thefts, ailments, death could be addressed through sensitive communication Fears relating to claims: Need to promote trust. Demonstrating claim testimonials, positioning as worry free. Low returns: Reposition insurance as a risk cover, security instrument rather than a financial investment. Lack of understanding: Training of Channels To provide quality advice on products best suited Lack of Knowledge: Ease of Process, procedure Need to promote the quality of awareness The benefits: Leverage on Risk Protection or Returns oriented or both The product: catering to life stages simplifying the product and the

Need for Branding in Insurance: Branding is more relevant in the Insurance market which not only faces the problem of securing and retaining customers in an increasingly competitive marketplace but also experiences the need for heightened relevance of the brand proposition in a world where brand has been termed the new religion.

In rural India, the LIC is especially synonymous with insurance. But in the wake of competition insurance companies have to do a considerable brand building exercise at least in urban India. Adequate time, investment and longer-term management of the brand are essential, not only for success also survival. All brands need to be built around well-differentiated and credible positioning that springs from the organizations history. The brand must not only be believed but lived by management and employees. but

BIBLIOGRAPHY
Websites

www.rbi.org.in www.irdaindia.org www.banknetindia.com www.hdfcinsurance.com www.businessworldonline.com

LIMITATIONS I had put my best effort in gathering the data I have tried my level best that the data provided and the survey done are authentic as they could be, but there are some limitation , which are mentioned below: The study period is limited, the researcher has to collect the necessary and the important within the limited period of the time and it is not possible to collect it, due to lack of time. Some organisations were hesitant to speak freely as they have feared the information to leak outside.

Annexure-A
PERFORMANCE APPRAISAL MINOR PROJECT Students Name: Shubham Bhatia. Programme: BBA(Gen.)-[2010-2013] You are required to provide your opinion on the following parameters. Outstanding Good Satisfactory Unsatisfactory A B C D 1. Technical knowledge gathered about the industry and the job he/she was involved. 2. Communication Skills: Oral/ Written/ Listening skills. 3. Ability to work in a team. 4. Ability to take initiative. 5. Ability to develop a healthy long term relationship with client. 6. Ability to relate theoretical learning to the practical training. 7. Creativity and ability to innovate with respect to work methods & procedures 8. Ability to grasp new ideas and knowledge 9. Presentation skills 10. Documents skills 11. Sense of Responsibility 12. Acceptability (patience, pleasing manners, the ability to instill trust, etc.) 13. His/her ability and willingness to put in hard work 14. In what ways do you consider the student to be valuable to the organization? Consider the students value in term of: (a) Qualification (b) skills and abilities (c) Activities/Roles performed 15. Punctuality Any other comments Assessors Overall rating Assessors Name: Designation: Organization name and address: Email id: Contact No: .

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

EVALUATION SHEET FOR MINOR PROJECT REPORT STUDENTS NAME : ROLL NO. : EVALUATORS FEEDBACK:

DID THE STUDENT CONTACT YOU REGULARLY FOR DISCUSSION?

:YES/NO(Please tick)

REPORT IS APPROVED / DISAPPROVED: MARKS AWARDED (Out of 50) :

SIGNATURE OF EVALUATOR NAME: DATE:

*In case report is disapproved, student has to resubmit the report after incorporating the suggestions given on the feedback form. Revised report should be submitted along with the feedback form.

BHAI PARMANAND INSTITUTE OF BUSINESS

ATTENDANCE FOR MINOR PROJECT REPORT
Name of the student Course Roll No. Name of the Supervisor :Shubham Bhatia :BBA (3RD SEMESTER) :05311401710 :MR. S.THIYAGRAJAN

S.No. 1 2 3 4 5 6 7 8 9 10

Date

Time

Progress of Report (Remarks)

Signature of Student

Signature of Supervisor