Description
research methodology
PROJECT REPORT ON
Customer Buying Behavior with a Focus on Market Segmentation In HDFC Life Company Ltd.
SUBMITTED BY:Salman N. jiwani In partial Fulfillment of BACHELOR OF BUSINESS ADMINISTRATION Under the Guidance of:
H.O.D
Project Guide
DECLARATION
This is to certify that I Salman Jiwani have completed the Summer Training Project titled “CUSTOMER the guidance of BUYING BEHAVIOUR WITH A FOCUS ON MARKET SEGMENTATION” in “HDFC STANDARD LIFE INSURANCE COMPANY LTD.” under “ Project Guide” in the partial fulfillment of the requirement for the award of Bachelor of Business Administration of I.T.M. College, Nanded This is an original piece of work & I have not submitted it earlier elsewhere.
ACKNOWLEDGEMENT
Words are inadequate to express my gratitude to the HDFC LIFE for giving me an opportunity to undergo the practical training in their company and extend me full cooperation, enabling me to successfully complete this project report.
I am thankful to my family and friends who have helped and supported me to make this project a success.
I am particularly grateful to Mr. Amol Baldawa (ASM) for his cooperation extended to me by providing necessary information & timely help.
I am also obliged and indebted to Lect. Prajakta and Prof. Praveen sir for internal guide for the valuable suggestions and encouragement in completing this project successfully.
Company Profile OF HDFC Life .LTD
ABOUT HDFC STANDARD LIFE INSURANCE
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 December 31, 2007 holds 72.38 per cent of equity in the joint venture.
HDFC STANDARD LIFE INSURANCE PARENTAGE
•
HDFC is India leading housing finance institution and has helped build more than 23,
00,000 houses since its incorporation in 1977. •In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
•
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.
•
Rated AAA by CRISIL and ICRA for the 10th consecutive year
•Stable and experienced management •High service standards
•
Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.
•
Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsidiaries)
• Standard Life Group (Standard Life plc and its subsidiaries) • The Standard Life group has been looking after the financial needs of customers for over 180 years • It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs • Its investment manager currently administers £125 billion in assets • It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
•
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the
Financial Adviser Service Awards for the last 10 years running. The '5 Star' has also been awarded to Standard Life Investments for the last 10 years, Standard Life Bank since its inception in 1998. Standard Life Bank was 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006
accolade and to
awarded the
BOARD OF DIRECTORS
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an
Executive Director in 1993. He was appointed as its Managing Director in 2000.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of HDFC Limited.
Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and remained in that position until December 2009. He is appointed as the Executive Europe on 1st January 2010. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member
of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010.
Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all UK net funds. He was appointed a Director of the Standard Life Investments’ board. He is a Mathematics graduate from Oxford University and the Member of the Securities Institute. He joined the Board of Directors in December 2009.
Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from
The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI).
Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari has completed his Electrical Engineering from Madras University in 1962. He is associated with Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is handling project finance for infrastructure projects at IDFC. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999.
Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been Deputy Chairman since March 2006. He became a director of the Standard Life Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders’ worldwide investment banking activities from 1998 to 1999. He is the Alternate Director to Mr. David Nish.
Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law, International Marketing, Operational Management, Strategy, Risk, Compliance, Company Secretarial
and Banking. He has acted as Project Manager for the start-up project of the Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch.
Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. He started his career with Bank of America delivering diverse roles ranging from Head of Technology Investment Banking for Asia, Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he headed their investment banking franchise for South East Asia and structured finance practice for Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad.
Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc.
ORGANISATION STRUCTURE
The organization structure of HDFC standard life insurance Co.Ltd.is hierarchywise start from Sales Development Manager(SDM)in the lower rank to the Chief Executive Officer (CEO)at the highest ranks. In between the ranks in higher order are Business Development
Manager(BDM),Assistant Sales Manager (ASM). CHIEF EXECUTIVE OFFICER(CEO) ? GENARAL MANAGER ? HEAD RETAIL SALES ? ZONAL MANAGER(ZM) ? REGIONAL MANAGER(RM) ? SALES MANAGER(SM) ? BRANCH MANAGER(BM) ? ASSISTANT SALES MANAGER(ASM)
HDFC KEYS STRENGHS
FINANCIAL EXPERTISE
AS A JOINT VENTURE OF LEADING FINANCIAL SERVICES GROUPS, HDFC STANDARD LIFE HAS THE
FINANCIAL EXPERTISE REQUIRED TO MANAGE YOUR LONG-TERM INVESTMENTS SAFELY AND EFFICIENTLY
.
RANGE OF SOLUTIONS
WE HAVE A RANGE OF INDIVIDUAL AND GROUP SOLUTIONS, WHICH CAN BE EASILY CUSTOMISED TO
SPECIFIC NEEDS .
OUR GROUP SOLUTIONS HAVE BEEN DESIGNED TO OFFER YOU COMPLETE FLEXIBILITY
COMBINED WITH A LOW CHARGING STRUCTURE
.
TRACK RECORD SO FAR
OUR GROSS PREMIUM INCOME, FOR THE YEAR ENDING MARCH 31, 2008 STOOD AT RS. 4,859 CRORES
AND NEW BUSINESS PREMIUM INCOME STOOD AT
RS. 2,685 CRORES.
THE COMPANY HAS COVERED OVER 9,59,000 LIVES YEAR ENDING MARCH 31, 2008.
Accolades and Recognition
Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004. • Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1 personal finance magazine
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE
INSURANCE PLANS AVAILABLE Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.
Group Products One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave
Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes
Social Product Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss.
Eligibility
Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.
Premium Payments
The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received.
The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.
Benefits
On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.
The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.
Prohibition of rebates
Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred.
Tax Benefits INCOME TAX GROSS SECTION ANNUAL SALARY
Sec. 80C
HOW TAX
MUCH HDFC CAN STANDARD LIFE PLANS
YOU SAVE?
Across All income Upto Rs. 33,990 All the life insurance Slabs saved on plans.
investment Rs. 1,00,000. Sec. 80 CCC
of
Across all income Upto Rs. 33,990 All the pension plans. slabs. saved Investment Rs.1,00,000. on of
Sec. 80 D*
Across all income Upto slabs saved
Rs.
3,399 All the health insurance on riders available with of the conventional plans.
Investment Rs. 10,000. TOTAL SAVINGS POSSIBLE **
Rs37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Under Sec. 10(10D), the benefits you receive are completely taxfree, subject to the conditions laid down therein.
Sec. 10 (10)D
RESEARCH METHODOLOGY
TITLE:
To determine customer-buying behavior with a focus on market segmentation for HDFC Standard Life Insurance.
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying pattern
in the insurance industry with a special focus on HDFC Standard Life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied.
SIGNIFICANCE TO THE INDUSTRY :
This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving
sector. People are only beginning to wake up to it’s vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.
SIGNIFICANE FOR THE RESEARCHER :
To facilitate and provide all the useful informtaion of the company, the insurance industry and also provide marketing ways, methods of HDFC Standard Life insurance.
SAMPLING METHODOLOGY SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus the sampling came out to be judgemental and convenient.
Sampling Unit:
The respondants who were asked to fill out questionnaires are the sampling units. These comprise of employees of Banks, Govt. Employees, Self Employees etc.
Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Nanded due to time constraints.
Sampling Area :
The area of the research was NANDED
LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of NANDED and does not necessarily shows a pattern applicable to all of Country .A small number of 100 also does not show the pattern of the whole city.
2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. 4. The training period was very less.
DATA ANALYSIS & INTERPRETATION
DATA REPRESENTATION OF PEOPLE WHO ARE EMPLOYED
?
DATA GIVES EMPLOYMENT STATUS OF THE INSURED RESPONDENTS. Table 1 NO.OF RESPONDENT 92 8 SHARE (%) 92 8
EMPLOYMENT YES NO
INTERPRETATION
The data shows that the majority of respondents are employed which would depict the better picture of the marker scenerio.
DATA SHOWING ANNUAL INCOME OF RESPONDENTS
Table 2 NO.OF RESPONDENT S 45 25 20 10
ANNUAL INCOME >5L 5L-10L 1OL-15L 15L-20L
SHARE (%) 45 25 20 10
INCOME
10% 20% 45% > LAKCS 5 5-10LACS 10-15 LACS 25% 15-20 LACS
INTERPRETATION
It can be noted that maximum amount of people (45%) fall in the category of > 5 lacks slot .
?
DATA SHOWS PEOPLE HAVING INSURANCE Table 3 RESPONSE NO. OF RESPONDENT S 70 30 SHARE (%)
Yes No
70% 30%
INTERPRETATION
• Of the sample size of 400 surveyed respondents 70% of the respondents are
having Insurance policy.
•
30% of the respondents are either not having any Insurance policy at present or
their policy is already matured. • And at present 100% of the respondents are with the view that Insurance is a tool
to protect your family
? DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS Table 4 BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENT S 55 20 25 100 SHARE (%) 55 20 25 100
INTERPRETATION
? 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. ? Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.
?
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS Table 5 FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Company’s Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100
INTERPRETATION
? Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.
DATA SHOWS PEOPLE PREFERENCE IN INSURANCE COMPANIES Table 6 CATEGORY NO. OF RESPONDEN TS 55 45 SHARE (%) 55% 45%
PRIVATE GOVERNMENT
INTERPRETATION
There are more number of people employed in Private sector(55%) as compared to 45% of people in govt. Sector.
? DATA GIVES PREFERECE OF RESPONDENTS OF INSURANCE COMPANIES Table 7 COMPANY’S NAME L.I.C. HDFC ICICI PRUDENTIAL SBI LIFE RELIANCE LIFE INSURANCE NO.OF RESPONDENT 78 2 10 7 3 SHARE (%) 78 2 10 7 3
TOTAL
100
100
INTERPRETATION
? 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.
DATA SHOWING THE REASON FOR PREFERENCE OF AN INSURANCE POLICY TABLE 8 REASON EASY ACCESSABILITY MORE SECURITY BETTER SECURITY MORE INFORMATION NO.OF RESPONDENT 40 20 20 10 SHARE (%) 40 20 20 10
& HELP CUSTOMER ORIENTATION TOTAL
REAS ON
10% 10% 40% EASY ACCESSABILITY MORE SECURITY 20% BETTER SECURITY MORE INFORMATION 20% CUST. ORT
10 100
10 100
INTERPRETATION
It can be noted that the reason for maximun people for prefering the policy is easy accessability followed by people who look for better & more security
DATA SHOWINGTHE TIME SPAN OF THE INSURANCE PLAN Table 9 NO. OF YEARS >5YRS 5YRS-10YRS 1OYRS-15YRS 15YRS-20YRS NO.OF RESPONDENT S 45 25 20 10 SHARE (%) 45 25 20 10
NO. OFYEARS
10% 20% 45% > YRS 5 5-10YRS 10-15YRS 25% 15Yrs<
INTERPRETATION
It can be noted that maximum amount of people look for short term insurance as compared to 10% of those who go for long term.
?
DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX
Table 10 RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 100 100 SHARE (%) 100% 0% 100%
INTERPRETATION
Of the sample size of 100 respondents, all the respondents are paying tax
?
DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX
SAVING Table 11 INVESTMENTS LIC NSC Bonds NO. OF RESPONDENTS 51 33 32 SHARE (%) 51% 33% 32%
PPF PF EPF
25 21 11
25% 21% 11%
INTERPRETATION
• 51% of the respondents save their tax by investing in LIC, which is the highest
among all Investment. This shows that most people for getting taxes benefits invest in LIC. •
•
33.25% of the respondents do their tax saving by investing in NSC. 32.25% of the respondents to their tax saving by investing in bonds.
? DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY Table 12 RESPONSE NO. OF RESPONDENT S 60 SHARE (%)
Satisfied
60%
Not satisfied Not Responded Total
40 0 100
40% 0.0% 100%
INTERPRETATION
• • • 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.
DATA
PROVIDES
NUMBER
OF
INSURANCE
POLICY
TYPE
RESPONDENTS Table 13 POLICY TYPE LIFE POLICY NON LIFE NO. OF RESPONDENTS 75 25 SHARE (%) 75 25
POLICY BOTH 45 45
INTERPRETATION
? 75% of the respondents have Life Insurance Policy while 45% have
both. (The % is calculated out of 280 positive response)
FACTS/FINDINGS
1.As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.
2.Company should come up with more branches in Nanded with the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3.Since HDFC STANDARD LIFE INSURANCE LTD is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4.As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.
RECOMMENDATIONS
• To make people aware about the benefits of HDFC standard life insurance policy,
following activities promotional activities should be carried out: .Printed media
. Hoardings & Banners . Continues telivision commercials.
•
Company should come up with more branches in Nanded with the objective and
goals to meet the demands & expectations of the public in order to provide people with better customer satisfaction.
•
Since HDFC Standard Life Insurance Company Ltd is leading with several
companies’ policies it should be easy for them to penetrate into the market and secure a good position if they increase thenumber of branches and diversify their business to various other regions. .
•
As seen from the survey that at present 70% of the customer are having insurance
policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to tap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.
CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some intresting trends which can be seen in the above analysis. A general impression that we gathered during Data
collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressioned by the marketing and advertising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have it’s impact now. Another heartning trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondants have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the oppurtunity for a relative new comer like HDFC Standard Life Insurance Company Ltd . LIC has never been known for prompt service or customer oriented methods and HDFC Standard Life can build on these factors.
BIBLIOGRAPHY
1. WEBSITES REFFERED:
?
NSURANCE.COM
WWW.CIFAI
?
YOUTLOOK.COM
WWW.MONE
?
ANCE.IND.COM ? NURANCE.COM
WWW.INSUR
WWW.HDFCI
2.
REPORTS/ARTICLES REFFERED: REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY…. Dec2010. BRIEF PROFILE OF LIC, INDIA…Dec 2010. REPORT: COPING WITH COMPETITION…Mar 2011
QUESTIONNAIRE
1.
ARE YOU EMPLOYED? YES NO YOUR MONTHLY INCOME? a)5Yrs b) 5-10 Yrs c) 10-15 Yrs d) 15Yrs<
11. DO YOU PAY TAXES? YES NO
12.WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF
13.
ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) NO COMMENTS
14 . WOULD YOU BE INTERESTEDIN AVALING ANY OF THE FOLLOWING FINANCIAL PLANNING SERVICES? a) WEALTH CREATION PLANS b) INVESTMENT PLANS
c) CHILDREN FUTURE PLANS d) TAX PLANNING e) RETIREMENT PLANS f) RISK MANAGEMENT & INSURANCE
doc_721110665.doc
research methodology
PROJECT REPORT ON
Customer Buying Behavior with a Focus on Market Segmentation In HDFC Life Company Ltd.
SUBMITTED BY:Salman N. jiwani In partial Fulfillment of BACHELOR OF BUSINESS ADMINISTRATION Under the Guidance of:
H.O.D
Project Guide
DECLARATION
This is to certify that I Salman Jiwani have completed the Summer Training Project titled “CUSTOMER the guidance of BUYING BEHAVIOUR WITH A FOCUS ON MARKET SEGMENTATION” in “HDFC STANDARD LIFE INSURANCE COMPANY LTD.” under “ Project Guide” in the partial fulfillment of the requirement for the award of Bachelor of Business Administration of I.T.M. College, Nanded This is an original piece of work & I have not submitted it earlier elsewhere.
ACKNOWLEDGEMENT
Words are inadequate to express my gratitude to the HDFC LIFE for giving me an opportunity to undergo the practical training in their company and extend me full cooperation, enabling me to successfully complete this project report.
I am thankful to my family and friends who have helped and supported me to make this project a success.
I am particularly grateful to Mr. Amol Baldawa (ASM) for his cooperation extended to me by providing necessary information & timely help.
I am also obliged and indebted to Lect. Prajakta and Prof. Praveen sir for internal guide for the valuable suggestions and encouragement in completing this project successfully.
Company Profile OF HDFC Life .LTD
ABOUT HDFC STANDARD LIFE INSURANCE
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 December 31, 2007 holds 72.38 per cent of equity in the joint venture.
HDFC STANDARD LIFE INSURANCE PARENTAGE
•
HDFC is India leading housing finance institution and has helped build more than 23,
00,000 houses since its incorporation in 1977. •In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
•
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.
•
Rated AAA by CRISIL and ICRA for the 10th consecutive year
•Stable and experienced management •High service standards
•
Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.
•
Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsidiaries)
• Standard Life Group (Standard Life plc and its subsidiaries) • The Standard Life group has been looking after the financial needs of customers for over 180 years • It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs • Its investment manager currently administers £125 billion in assets • It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
•
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the
Financial Adviser Service Awards for the last 10 years running. The '5 Star' has also been awarded to Standard Life Investments for the last 10 years, Standard Life Bank since its inception in 1998. Standard Life Bank was 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006
accolade and to
awarded the
BOARD OF DIRECTORS
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an
Executive Director in 1993. He was appointed as its Managing Director in 2000.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of HDFC Limited.
Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and remained in that position until December 2009. He is appointed as the Executive Europe on 1st January 2010. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member
of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010.
Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all UK net funds. He was appointed a Director of the Standard Life Investments’ board. He is a Mathematics graduate from Oxford University and the Member of the Securities Institute. He joined the Board of Directors in December 2009.
Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from
The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI).
Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari has completed his Electrical Engineering from Madras University in 1962. He is associated with Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is handling project finance for infrastructure projects at IDFC. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999.
Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been Deputy Chairman since March 2006. He became a director of the Standard Life Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders’ worldwide investment banking activities from 1998 to 1999. He is the Alternate Director to Mr. David Nish.
Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law, International Marketing, Operational Management, Strategy, Risk, Compliance, Company Secretarial
and Banking. He has acted as Project Manager for the start-up project of the Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch.
Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. He started his career with Bank of America delivering diverse roles ranging from Head of Technology Investment Banking for Asia, Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he headed their investment banking franchise for South East Asia and structured finance practice for Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad.
Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc.
ORGANISATION STRUCTURE
The organization structure of HDFC standard life insurance Co.Ltd.is hierarchywise start from Sales Development Manager(SDM)in the lower rank to the Chief Executive Officer (CEO)at the highest ranks. In between the ranks in higher order are Business Development
Manager(BDM),Assistant Sales Manager (ASM). CHIEF EXECUTIVE OFFICER(CEO) ? GENARAL MANAGER ? HEAD RETAIL SALES ? ZONAL MANAGER(ZM) ? REGIONAL MANAGER(RM) ? SALES MANAGER(SM) ? BRANCH MANAGER(BM) ? ASSISTANT SALES MANAGER(ASM)
HDFC KEYS STRENGHS
FINANCIAL EXPERTISE
AS A JOINT VENTURE OF LEADING FINANCIAL SERVICES GROUPS, HDFC STANDARD LIFE HAS THE
FINANCIAL EXPERTISE REQUIRED TO MANAGE YOUR LONG-TERM INVESTMENTS SAFELY AND EFFICIENTLY
.
RANGE OF SOLUTIONS
WE HAVE A RANGE OF INDIVIDUAL AND GROUP SOLUTIONS, WHICH CAN BE EASILY CUSTOMISED TO
SPECIFIC NEEDS .
OUR GROUP SOLUTIONS HAVE BEEN DESIGNED TO OFFER YOU COMPLETE FLEXIBILITY
COMBINED WITH A LOW CHARGING STRUCTURE
.
TRACK RECORD SO FAR
OUR GROSS PREMIUM INCOME, FOR THE YEAR ENDING MARCH 31, 2008 STOOD AT RS. 4,859 CRORES
AND NEW BUSINESS PREMIUM INCOME STOOD AT
RS. 2,685 CRORES.
THE COMPANY HAS COVERED OVER 9,59,000 LIVES YEAR ENDING MARCH 31, 2008.
Accolades and Recognition
Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004. • Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India number 1 personal finance magazine
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE
INSURANCE PLANS AVAILABLE Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.
Group Products One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave
Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes
Social Product Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss.
Eligibility
Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.
Premium Payments
The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received.
The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.
Benefits
On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.
The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.
Prohibition of rebates
Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred.
Tax Benefits INCOME TAX GROSS SECTION ANNUAL SALARY
Sec. 80C
HOW TAX
MUCH HDFC CAN STANDARD LIFE PLANS
YOU SAVE?
Across All income Upto Rs. 33,990 All the life insurance Slabs saved on plans.
investment Rs. 1,00,000. Sec. 80 CCC
of
Across all income Upto Rs. 33,990 All the pension plans. slabs. saved Investment Rs.1,00,000. on of
Sec. 80 D*
Across all income Upto slabs saved
Rs.
3,399 All the health insurance on riders available with of the conventional plans.
Investment Rs. 10,000. TOTAL SAVINGS POSSIBLE **
Rs37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Under Sec. 10(10D), the benefits you receive are completely taxfree, subject to the conditions laid down therein.
Sec. 10 (10)D
RESEARCH METHODOLOGY
TITLE:
To determine customer-buying behavior with a focus on market segmentation for HDFC Standard Life Insurance.
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying pattern
in the insurance industry with a special focus on HDFC Standard Life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied.
SIGNIFICANCE TO THE INDUSTRY :
This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving
sector. People are only beginning to wake up to it’s vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.
SIGNIFICANE FOR THE RESEARCHER :
To facilitate and provide all the useful informtaion of the company, the insurance industry and also provide marketing ways, methods of HDFC Standard Life insurance.
SAMPLING METHODOLOGY SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus the sampling came out to be judgemental and convenient.
Sampling Unit:
The respondants who were asked to fill out questionnaires are the sampling units. These comprise of employees of Banks, Govt. Employees, Self Employees etc.
Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Nanded due to time constraints.
Sampling Area :
The area of the research was NANDED
LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of NANDED and does not necessarily shows a pattern applicable to all of Country .A small number of 100 also does not show the pattern of the whole city.
2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. 4. The training period was very less.
DATA ANALYSIS & INTERPRETATION
DATA REPRESENTATION OF PEOPLE WHO ARE EMPLOYED
?
DATA GIVES EMPLOYMENT STATUS OF THE INSURED RESPONDENTS. Table 1 NO.OF RESPONDENT 92 8 SHARE (%) 92 8
EMPLOYMENT YES NO
INTERPRETATION
The data shows that the majority of respondents are employed which would depict the better picture of the marker scenerio.
DATA SHOWING ANNUAL INCOME OF RESPONDENTS
Table 2 NO.OF RESPONDENT S 45 25 20 10
ANNUAL INCOME >5L 5L-10L 1OL-15L 15L-20L
SHARE (%) 45 25 20 10
INCOME
10% 20% 45% > LAKCS 5 5-10LACS 10-15 LACS 25% 15-20 LACS
INTERPRETATION
It can be noted that maximum amount of people (45%) fall in the category of > 5 lacks slot .
?
DATA SHOWS PEOPLE HAVING INSURANCE Table 3 RESPONSE NO. OF RESPONDENT S 70 30 SHARE (%)
Yes No
70% 30%
INTERPRETATION
• Of the sample size of 400 surveyed respondents 70% of the respondents are
having Insurance policy.
•
30% of the respondents are either not having any Insurance policy at present or
their policy is already matured. • And at present 100% of the respondents are with the view that Insurance is a tool
to protect your family
? DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS Table 4 BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENT S 55 20 25 100 SHARE (%) 55 20 25 100
INTERPRETATION
? 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. ? Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.
?
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS Table 5 FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Company’s Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100
INTERPRETATION
? Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.
DATA SHOWS PEOPLE PREFERENCE IN INSURANCE COMPANIES Table 6 CATEGORY NO. OF RESPONDEN TS 55 45 SHARE (%) 55% 45%
PRIVATE GOVERNMENT
INTERPRETATION
There are more number of people employed in Private sector(55%) as compared to 45% of people in govt. Sector.
? DATA GIVES PREFERECE OF RESPONDENTS OF INSURANCE COMPANIES Table 7 COMPANY’S NAME L.I.C. HDFC ICICI PRUDENTIAL SBI LIFE RELIANCE LIFE INSURANCE NO.OF RESPONDENT 78 2 10 7 3 SHARE (%) 78 2 10 7 3
TOTAL
100
100
INTERPRETATION
? 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.
DATA SHOWING THE REASON FOR PREFERENCE OF AN INSURANCE POLICY TABLE 8 REASON EASY ACCESSABILITY MORE SECURITY BETTER SECURITY MORE INFORMATION NO.OF RESPONDENT 40 20 20 10 SHARE (%) 40 20 20 10
& HELP CUSTOMER ORIENTATION TOTAL
REAS ON
10% 10% 40% EASY ACCESSABILITY MORE SECURITY 20% BETTER SECURITY MORE INFORMATION 20% CUST. ORT
10 100
10 100
INTERPRETATION
It can be noted that the reason for maximun people for prefering the policy is easy accessability followed by people who look for better & more security
DATA SHOWINGTHE TIME SPAN OF THE INSURANCE PLAN Table 9 NO. OF YEARS >5YRS 5YRS-10YRS 1OYRS-15YRS 15YRS-20YRS NO.OF RESPONDENT S 45 25 20 10 SHARE (%) 45 25 20 10
NO. OFYEARS
10% 20% 45% > YRS 5 5-10YRS 10-15YRS 25% 15Yrs<
INTERPRETATION
It can be noted that maximum amount of people look for short term insurance as compared to 10% of those who go for long term.
?
DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX
Table 10 RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 100 100 SHARE (%) 100% 0% 100%
INTERPRETATION
Of the sample size of 100 respondents, all the respondents are paying tax
?
DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX
SAVING Table 11 INVESTMENTS LIC NSC Bonds NO. OF RESPONDENTS 51 33 32 SHARE (%) 51% 33% 32%
PPF PF EPF
25 21 11
25% 21% 11%
INTERPRETATION
• 51% of the respondents save their tax by investing in LIC, which is the highest
among all Investment. This shows that most people for getting taxes benefits invest in LIC. •
•
33.25% of the respondents do their tax saving by investing in NSC. 32.25% of the respondents to their tax saving by investing in bonds.
? DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY Table 12 RESPONSE NO. OF RESPONDENT S 60 SHARE (%)
Satisfied
60%
Not satisfied Not Responded Total
40 0 100
40% 0.0% 100%
INTERPRETATION
• • • 60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.
DATA
PROVIDES
NUMBER
OF
INSURANCE
POLICY
TYPE
RESPONDENTS Table 13 POLICY TYPE LIFE POLICY NON LIFE NO. OF RESPONDENTS 75 25 SHARE (%) 75 25
POLICY BOTH 45 45
INTERPRETATION
? 75% of the respondents have Life Insurance Policy while 45% have
both. (The % is calculated out of 280 positive response)
FACTS/FINDINGS
1.As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.
2.Company should come up with more branches in Nanded with the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3.Since HDFC STANDARD LIFE INSURANCE LTD is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4.As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.
RECOMMENDATIONS
• To make people aware about the benefits of HDFC standard life insurance policy,
following activities promotional activities should be carried out: .Printed media
. Hoardings & Banners . Continues telivision commercials.
•
Company should come up with more branches in Nanded with the objective and
goals to meet the demands & expectations of the public in order to provide people with better customer satisfaction.
•
Since HDFC Standard Life Insurance Company Ltd is leading with several
companies’ policies it should be easy for them to penetrate into the market and secure a good position if they increase thenumber of branches and diversify their business to various other regions. .
•
As seen from the survey that at present 70% of the customer are having insurance
policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to tap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.
CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some intresting trends which can be seen in the above analysis. A general impression that we gathered during Data
collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressioned by the marketing and advertising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have it’s impact now. Another heartning trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondants have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the oppurtunity for a relative new comer like HDFC Standard Life Insurance Company Ltd . LIC has never been known for prompt service or customer oriented methods and HDFC Standard Life can build on these factors.
BIBLIOGRAPHY
1. WEBSITES REFFERED:
?
NSURANCE.COM
WWW.CIFAI
?
YOUTLOOK.COM
WWW.MONE
?
ANCE.IND.COM ? NURANCE.COM
WWW.INSUR
WWW.HDFCI
2.
REPORTS/ARTICLES REFFERED: REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY…. Dec2010. BRIEF PROFILE OF LIC, INDIA…Dec 2010. REPORT: COPING WITH COMPETITION…Mar 2011
QUESTIONNAIRE
1.
ARE YOU EMPLOYED? YES NO YOUR MONTHLY INCOME? a)5Yrs b) 5-10 Yrs c) 10-15 Yrs d) 15Yrs<
11. DO YOU PAY TAXES? YES NO
12.WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) LIC b) NSC c) BONDS d) PPF e) PF f) EPF
13.
ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) NO COMMENTS
14 . WOULD YOU BE INTERESTEDIN AVALING ANY OF THE FOLLOWING FINANCIAL PLANNING SERVICES? a) WEALTH CREATION PLANS b) INVESTMENT PLANS
c) CHILDREN FUTURE PLANS d) TAX PLANNING e) RETIREMENT PLANS f) RISK MANAGEMENT & INSURANCE
doc_721110665.doc