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CHAPTER - 1
GENERAL INTRODUCTION
In todays hectic world, there is uncertainty in every move that we
make. Life is not as healthy as it should be. In the rat race to earn money and
more money in order to live better quality of life, we all have somehow
forgotten to live the present. Hence by this entire bargain, our future
remarkably seems all the more confusing and uncertain. At this juncture, the
importance of this phrase seems more obvious:
Insurance is necessity-Observe it and absorb it
Insurance may be described as a social service to reduce or eliminate
risk of loss to life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risk attached to individuals. The risks,
which can be insured against, include fire, the perils of sea, death and accident
and burglary. Any risk involved. Thus college bearing of risk is insurance.
The insurance sector in India has come long way from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.
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Insurance business may be divided into 4 classed. They are:
Life insurance, fire insurance, marine insurance and miscellaneous
insurance.
Life insurers transact life insurance business while general insurers
transact rest. In India, insurance is a federal subject. The legislation that
deals with insurance in India is the insurance act, 1938 and insurance
Regulatory & development Authority Act, 1999.
A lead is defined as any potential customer who as in the age group of
18-62, who indicated the amount to be invested or the sun be insured who is
ready to give an appointment.
So the main job of an advisor is to produce more lead. The successful
advisor have some certain attributes and an profile after discussing with sales
manager and with unit members and with the successful advisor is listed down
the profile and attributes.
ATTRIBUTES TO SUCCESS:
1) Mental alertness
2) Good energy level
3) Goal & achievement motivation
4) Courage & determination and self confidence
5) Nature or realistic market
6) Competitive courage
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INDUSTRY PROFILE
Equity cap for foreign partners in an insurance company. There is a
proposal to increase this limit to 49 percent. The opening up of the insurance
sector has led to rapid growth of the sector. Presently, there are 16 life
insurance companies and 15 non-life insurance companies in the market. The
potential for growth of insurance industry in India is immense as nearly 80 per
cent of Indian population is without life insurance cover while health insurance
and non-life insurance continues to be well below international standards.
Insurance sector in India is one of the booming sectors of the economy
and is growing at the rate of 15-20 percent annum. Together with banking
services, it contributes to about 7 percent to the country's GDP. Insurance
is a federal subject in India and Insurance industry in India is governed by
Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General
Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts.
The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was
conceived as a means to provide for English Widows. In those days a higher
premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered riskier for coverage. The Bombay Mutual Life Insurance
Society that started its business in 1870 was the first company to charge same
premium for both Indian and non-Indian lives. In 1912, insurance regulation
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formally began with the passing of Life Insurance Companies Act and the
Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a number of
frauds during 1920s and 1930s tainted the image of insurance industry in India.
In 1938, the first comprehensive legislation regarding insurance was
introduced with the passing of Insurance Act of 1938 that provided strict State
Control over insurance business.
Insurance sector in India grew at a faster pace after independence. In
1956, Government of India brought together 245 Indian and foreign insurers
and provident societies under one nationalized monopoly corporation and
formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs.5 crore.
The (non-life) insurance business/general insurance remained with the
private sector till 1972. There were 107 private companies involved in the
business of general operations and their operations were restricted to organized
trade and industry in large cities. The General Insurance Business
(Nationalization) Act, 1972 nationalization the general insurance business in
India with effect from January 1, 1973. The 107 private insurance companies
were amalgamated and grouped into four companies: National Insurance
Company New India Assurance Company, Oriental Insurance and United India
Insurance Company. These were subsidiaries of the General Insurance
Company (GIC).
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In 1993, the first step towards insurance sector reforms was initiated
with the formation of Malhotra Committee, headed by former Finance
Secretary and RBI Governor R.N. Malhotra. The committee was formed to
evaluate the Indian insurance industry and recommend its future direction with
the objective of complementing the reforms initiated in the financial sector.
Key Recommendations of Malhotra Committee
Structure
o Government stake in the insurance Companies to be brought down to
50%
o Government should take over the holdings of GIC and its subsidiaries so
That these subsidiaries can act independent corporations.
o All the insurance companies should be given greater freedom to operate.
Competition
o Private Companies with a minimum paid up capital of Rs.1 billion
should be allowed to enter the industry.
o No Company should deal in both Life and General Insurance through a
single Entity.
o Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
o Postal Life Insurance should be allowed to operate in the rural market
o Only one State Level Life Insurance Company should be allowed to
operate in each state.
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Regulatory Body
o The Insurance Act should be changed.
o
An Insurance Regulatory body should be set up.
o Controller of Insurance should be made independent.
Investments
o Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%.
o GIC and its subsidiaries are not to hold more than 5% in any
company
Customer Service
o LIC should pay interest on delays in payments beyond 30 days
o Insurance companies must be encouraged to set up unit linked
pension plans
o Computerization of operations and updating of technology to be
carried out in the insurance industry.
Malhotra Committee also proposed setting up an independent regulatory
body- The Insurance Regulatory and Development Authority (IRDA) to
provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic
motives.
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Insurance sector in India was liberalized in March 2000 with the passage
of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all
entry restrictions for private players and allowing foreign players to enter the
market with some limits on direct foreign ownership. There is a 26 percent
equity cap for foreign partners in an insurance company. There is a proposal to
increase this limit to 49 percent. The opening up of the insurance sector has led
to rapid growth of the sector. Presently, there are 16 life insurance companies
and 15 non-life insurance companies in the market. The potential for growth of
insurance industry in India is immense as nearly 80 percent of Indian
population is without life insurance cover while health insurance and non-life
insurance continues to be well below international standards.
Insurance industry has always been a growth-oriented industry globally.
On the Indian scene too, the insurance industry has always recorded noticeable
growth vis-a-vis other Indian industries.
The Indian insurance industry saw a new sun when the Insurance
Regulatory & Development Authority (IRDA) invited the applications as
insurers in August 2000. With the liberalization and opening up of the sector
to private players, the industry has presented promising prospects for the
coming future. The transition has also resulted into introduction of ample
opportunities for the professionals including Chartered Accountants.
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The Indian Insurance industry is featured by the attributes:
o Low market Penetration:
o
Ever-growing middle class component in population.
o Growth of consumer movement with an increasing demand for better
insurance products;
o Inadequate application of information technology for business.
o Adequate fillip from the Government in the form of tax incentives to the
insured, etc.,
The industry formations need to keep vigil on these characteristics of the
Indian market and formulate their strategies to entail maximum contribution
to the output of the sector.
The Indian life and non-life insurance business accounted for merely 0.42
percent of the worlds life and non-life business in 1997.
The figures of the basic parameters of the industry's performance viz.,
Insurance Density and Insurance Penetration also are evident of the hitherto
existing low yield Indian market conditions.
The term "Insurance Penetration" broadly measures the contribution of
insurance industry in relation to a nation's entire economic productivity. The
figure of premium vis-a-vis the GDP of 1999 stood at 0.54 percent for non-life
insurance business and 1.39 percent for the life insurance business. The term
"reflects the Insurance purchasing power. The premium per capita in India
mounted to US $ 2.40 for non-life insurance and US $ 6.10 for life insurance in
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1999 but with the deregulation of the sector, a sea-change in the scene is most
likely. The Life Insurance Corporation (LIC) was established on 01.09.1956
and had been the sole corporation to write the life insurance business in India.
Insurance plays several important roles in developing the national economy
like
It enables entrepreneurs to take financial risks in starting enterprises
that create wealth and jobs for its people.
Life insurance is the most dramatic example of a social security scheme
of the choice of the insured in the beneficial interest of his future and his
family.
The risk management techniques of insurers, loss occurrence data and
expertise in mitigation of losses provide a database for prevention of
future accidents and thus avoid national waste.
Invested Funds
The Life Insurance industry in India has invested funds to the tune of
Rs.4,00,000 Cr.54% of these funds are invested in Government Securities and
34% are invested in marketable securities. (The investment guidelines of
IRDA provide a permissible minimum of 50% in Government Securities and a
maximum of 35% in market securities). The annual growth of Rs.90000 is
remarkable.
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Emerging Insurance Markets
The developing markets are fast reaching a saturation point in insurance
density and market penetration. The parameters to measure the above factors
are
1. Per Capita spending on insurance
2. The share of insurance premium as a percentage of their national
GDP.
The insurance density, the per capita spending on insurance is, in India
is 16.4 US$, whereas in countries like China it is US$ 36.3, and North America
it is US$ 3000
The market penetration that is in share of premiums to GDP in India is
2.9% and for China it is 3.3%. The world average is 8.1% and Asian average is
7.5%.
Market penetration in life insurance sector is 2.46% when compared to
2.26% in 2004. It is evident that the life insurance sector has seen very
dramatic premium changes post liberalization.
In life and non-life sectors, the private players have been able to garner
more than 20% of market share in a span of 4 years, where the govt.
Expectation was only 5 to 8%.
The over all growth in the life insurance sector has been very impressive
at over 35% for new business. Private players will move faster and deeper and
continue to improve their market share, for the next 3 to 4 years at the rate of 4
to 5%.
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India as seen from the above analysis is lagging behind other emerging
markets, when judged from the point view of the level of insurance awareness
and low spending on insurance protection.
But the size of the population and the repaid economic growth, however
now makes India a market of exciting interest and opportunity to foreign and
domestic investors.
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COMPANY PROFILE
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 the 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.
The company was incorporated on 14th August 2000 under the name of
HDFC Standard Life Insurance Company Limited.
The ambition from as far back as October 1995 was to be the first
private company to re enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realized when HDFC standard Life was the
only life company to be granted a certificate or registration.
HDFC are the main share holders in HDFC Standard Life, with 81.4%
while Standard Life owns 18.6%. Given Standard Life's existing investment in
the HDFC Group, this is the maximum investment allowed under current
regulations.
HDFC and Standard Life have a long and close relationship built upon
shared values and trust. The ambition of HDFC Standard Life is to Mirror the
success of the parent companies and be the yardstick by which all other
insurance companys in India are measured. The company's fast moving
plans are childrens plan and unit linked plans. Children's plan was launched
in Feb.'03 and unit linked plans were launched in Nov.04.
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The four functional areas identified in the company are:-
Marketing function
Human Resource function
Finance function
Operations functions
Marketing Wing:
The marketing team of HDFCSL is divided for two major purposes,
Promotion & Advertising division and Sales Division.
Promotion & Advertising Division:
The division deals with all activities like designing of advertisements for
print and television media, designing of Sales brochures, Promotional
Campaign design etc., This division is being operated from the corporate
office of HDFCSL.
Sales Division:
This division exclusively deals with the sale of policies. The sales force
uses the promotional activities and material to generate sales.
There are two sales channels
1) Retail Sales
2) Corporate Sales
Retails Sales:
It has total strength of 10000 employees working in 104 branches of the
company. These retail sales agents are called as "Financial Consultants (FC)".
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Nearly 20000 FCs are now working for generating business all over India. In
Nellore Branch alone there are 195 FCs.
Corporate Sales:
It has total strength of 4000 employees working in four banks in various
parts of India. The total business generated by corporate agents in more, even
though the sales force is less when compared to Retail Sales Forces.
The four banks working for HDFCLSL are HDFC Bank, Union Bank of
India, Indian Bank of India of and Sarawathi Bank. These banks are known as
Corporate Agents.
Human resource wing:
Recruitment
The company prefers for Internal Recruitment as far as possible. In case
of external recruitment, they adopt referrals as first option and then adopt
Personal Interview for Recruitment of top and middle level management.
Training
Training is the integral part of any business strategy. Almost all the
employees have undergone training to enhance their technical skills.
And the soft behavioral skills to be able to deliver the service standards
that the company has set for itself.
Besides the mandatory training for the financial consultants for being
licensed the company has developed training modules like DISHA covering
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various aspects including selling skills, objection handling skills and so on and
product training sessions imparting product knowledge.
Financial wing:
This function deals with the accounting and portfolio management. But
the most important function of this wing is investment management and Cost
reduction.
Operations Wing:
This wing deals with the processing of applications and forwarding all
types of communications. A part from these functions, an additional function is
there, it is
Underwriters and actuarians wing:
UNDERWRITERS this wing function deals with the decision making
process, whether to issue the policy or not; based on various criteria.
Actuarians:
This wing function is where the mathematicians and experts decide
various figures like annual premiums and discretionary benefits.
Social Sector Obligations
Under IRDA regulations, an insurer is required to meet the prescribed
obligations pertaining to meet the rural sectors. The company has covered
10490 lives in the social sector and written polices aggregating to 12.3% in the
rural sector.
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The company has intensified its efforts to penetrate the rural and social
markets in the country through a multi-pronged approach. Besides appointing
financial consultants to service specific.
Geographical areas in the country, the company continues to work with
non governmental organizations in providing life insurance protection too
economically to weaker sections in the society. The rural product, "HDFC
Bima Bachat Yojana" also contributed to this effort.
Technology:
IT has been backbone of the companys growth and will continue to be
so in years to come. Real time data access to all the offices in the country is
one of the tremendous achievements for the company and also one of the
factors providing efficient services to the employees as well as customers.
Policies and Procedures:
Open Door Policy
Participative Management
Middle of the Road Leadership
Periodic Performance Appraisal
Annual Wage - Package Reviews
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THEORETICAL BACKGROUND
The idea that customers prefer one product or one service over another
is not new. The ability to identify and measure the elements of such preference
decisions with any accuracy and reliability has only recently become available.
Research into this area of consumer behavior has brought understanding
to some of the major issues with standard customer satisfaction research. Most
importantly, we have come to realize that high customer satisfaction does not
assure continued customer preference. Satisfaction research over the past
fifteen years demonstrates that high satisfaction scores, while a measure of
corporate performance on a set of important criteria, do not adequately explain
the composition of preference formation and therefore often serve as
insufficient predictors of sustained preference or what is normally referred to as
customer loyalty.
Loyalty as a concept has also shown itself to be difficult to define. Like
beauty, loyalty is truly in the eye of the beholder. We understand there are
different types and degrees of loyalty and some of these are not appropriate in
describing the relationship between a consumer and a company. However,
preference (defined as The power or ability to choose one thing over another
with the anticipation that the choice will result in greater satisfaction, greater
capability or improved performance) has demonstrated the ability to be
effectively measured and to provide meaningful insight into the choices
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consumers make when selecting one provider over another and when
determining to continue a relationship over time.
Have you ever wondered why your company often loses relatively
satisfied customers? Why is it that customers will often indicate they are
satisfied with how they have been treated but then leave for a competitor at the
first opportunity? Why is customer defection often unrelated to price? The
answers to these and other related questions are found in coming to an
understanding of customer preference.
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CHAPTER 2
TITLE OF THE STUDY
A STUDY ON CUSTOMER PREFERENCE TOWARDS HDFC
STANDARD LIFE INSURANCE COMPANY WITH SPECIAL
REFERENCE TO SALEM DISTRICT
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STATEMENT OF THE PROBLEM
The study is used to find out the awareness about insurance among the
rural area people. The rural area is not covered by the executives so the rural
people are not having that much awareness on their investment and savings.
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OBJECTIVES OF THE STUDY
To find out the awareness of the Customers regarding the insurance
sectors.
To find out the satisfaction of the Customers toward the HDFC
Standard Life Insurance
To find out the preference of Customers about insurance.
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SCOPE OF THE STUDY
The present study is to identify the factors which influences in
selection of insurances.
The investigator through this study is actually attempting to help the
company to identify the preference of customers.
The study can also useful for future reference
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LIMITATION OF THE STUDY
The study was conducted to only 200 individuals
The geographical area restricted to Salem district
Respondent are afraid to express their annual income level
Bias of the respondents.
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CHAPTER - 3
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the arrangement to condition for collections and an
analysis of data is manners that aims are combine relevance to the research
purpose with economy into procedure
DESCRIPTIVE RESEARCH
The research design used in this study is descriptive research.
Descriptive research included survey and fact finding enquiries of different
kinds. The major purpose of the research is description of the state of affairs as
its exists at present. It is also known as EXPOST-FACTO RESEARCH. In
this type of research, the researcher can only report what has happened or what
is happening and he has no control over variables.
METHODOLOGY
Methodology is a fancy word for strategy, which is a fancy word for
how things are done. Marketing research is a Methodology fancy phrase for
how business information is collected. Here is the main methods observation
on the spot examination of the actually happens in a particular business
operation context.
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The present study was conducted at HDFC SLIC at Salem. This depends
mainly on the secondary data. The main source of secondary data are the
annual report, directors report, prospect report, minutes of the company
information discussion were made with industries staff. During course of
discussion the staffs expressed their opinion as regards the working of the
industry they also suitable suggestion to improve the function of the HDFC
SLIC
SAMPLING DESIGN
SAMPLING METHOD : The sampling design for the study unit is
Snowball sampling.
SAMPLE UNIT : The sample unit of study is rural
Customers.
SAMPLE SIZE : The sample size of study is 200 rural
Customers in Salem district.
SAMPLING PLAN : The researcher conducted survey only in
Salem district.
STATISTICAL TOOL USED: Simple percentage
Chi Square
Correlation
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METHOD OF DATA COLLECTION
The necessary data for the research was collected from the primary and
secondary source.
PRIMARY DATA
The questionnaire schedule was prepared for collecting the data from the
teachers. The analysis of primary data obtained from respondents, compilation
and tabulation were done.
SECONDARY DATA:
The SECONDARY DATA was collected from the company profile
and websites.
TOOLS FOR ANALYSIS
Tools used for data collection
The tool used for collecting the data is through the questionnaire. The
main reason for selecting the questionnaire method for the study is:
Respondents have adequate time to give well thought out answers.
The time of the study was also a limiting factor.
QUESTIONNAIRE
The questionnaire was developed through a series of pre- tests involving
employees, Team leaders, and HR Professionals.
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The major section of the questionnaire comprises of job and behavioural
competencies. The other section consists of organizational overview.
STATISTICAL TOOL
Percentage Analysis
Anova
Chi-square test
PERCENTAGE ANALYSIS
Percentage analysis is the total number of respondents divided by the
total sample size and multiplied by 100.
CORRELATION
Correlation is the statistical analysis which measures and analyses the
degree or extent to which two variables fluctuate with reference to each other.
The correlation measures the closeness of the relationship between the
variables.
CHI-SQUARE
Chi-square is a statistical measure used in the context of sampling
analysis for comparing a variance to a theoretical variance. As a non parametric
test it can be used to determine if categorical data shows dependence or the two
classifications are inter depended. It can also be used to make comparisons
between theoretical population and actual data when categories are used
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CHAPTER 4
ANALYSIS AND INTERPRETATION
TABLE 1
GENDER OF THE RESPONDENTS
Gender No. of respondents Percentage (%)
Male 178 89.0
Female 22 11.0
Total 200 100.0Source : Primary data
INFERENCE:
From the above table it could be inferred that 89% of Customers are
male and 11% of Customers are female.
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CHART 1
GENDER OF THE RESPONDENTS
89
11
0
10
20
30
40
50
60
70
80
90
100
Male Female
Gender
Percentage
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TABLE 2
AGE OF THE RESPONDENTS
Age No.of respondents Percentage (%)
18-20 20 10.0
21-30 60 30.0
31-40 80 40.0
41-50 30 15.0
51-60 10 5.0
Total 200 100.0
Source : Primary data
INFERENCE
From the above table it could be inferred that 10% of rural Customers
are below 18-20 years of age, 30% of rural Customers are in between 21-30
years of age, 40% of rural Customers are in between 31-40 years of age,15% of
rural Customers are in between41-50 years of age,5% of rural customers are in
between 51-60 years of age,
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CHART 2
AGE OF THE RESPONDENTS
10
30
40
15
5
0
5
10
15
20
25
30
35
40
45
18-20 21-30 31-40 41-50 51-60
Age
Pe
rcentage
TABLE 3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational qualification No.of respondents Percentage (%)
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School level 70 35.0
College level 30 15.0
Pharmacy 45 22.5
No formal education 55 27.5
Total 200 100.0Source : Primary data
INFERENCE
From the above table it could be inferred that 35% of rural Customers
are farmers, 15% of rural Customers are doing business, 22.5% of rural
Customers are employees, and 27.5% of rural Customers are students.
CHART 3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
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35
15
22.5
27.5
0
5
10
15
20
25
30
35
40
School level College level Pharmacy No formal education
Educational qualification
Percentage
TABLE 4
INCREASE SIZE OF RESPONDENTS
Occupation Frequency Percent
Farmer 60 30.0
Business 46 23.0
Employee 34 17.0
Student 60 30.0Total 200 100.0
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Source : Primary data
INFERENCE
From the above table it could be inferred that 30% of rural Customers
up to school level, 23% of rural Customers up to college level, 17% of rural
Customers up to pharmacy and 30% of rural Customers up to No formal
Education.
CHART 4
INCREASE SIZE OF RESPONDENTS
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30
23
17
30
0
5
10
15
20
25
30
35
Farmer Business Employee Student
Occupation
Percentage
TABLE 5
MARITALSTATUS OF RESPONDENTS
Martial status No.of respondents Percentage (%)
Married 152 76.0
Un married 48 24.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 76% of rural Customers
are married and 24% of Rural Customers are unmarried.
CHART 5
MARITAL STATUS OF RESPONDENTS
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24
76
0
10
20
30
40
50
60
70
80
Married Un married
Marital status
Percentage
TABLE 6
SIZE OF THE FAMILY OF RESPONDENTS
Size of the family No.of respondents Percentage (%)
Upto 2 members 8 4.0
3-4 members 108 54.0
5-6 members 80 40.0
Above 6 members 4 2.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 4% of rural Customers are
below 2 , 54% of rural Customers have family size in between 3-4, 40% of
rural Customers have family size in between 6-5 and 2% of rural Customers
have family size in between 6 & above.
CHART 6
SIZE OF THE FAMILY OF RESPONDENTS
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54
40
24
0
10
20
30
40
50
60
Upto 2 members 3-4 members 5-6 members Above 6 members
Size of the family
Percentage
TABLE 7
ANNUAL INCOME OF THE FAMILY
Annual Income No.of respondents Percentage (%)
Less than 50000 38 19.0
50000-100000 108 54.0
Above 100000 54 27.0
Total 200 100.0
Source : Primary data
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INFERENCE
From the above table it could be inferred that 19% of rural Customers
have annual income below 50000, 59% of rural Customers have annual income
in between 50000-100000, and 22% of rural Customers have annual income in
between 100000 & above.
CHART 7
ANNUAL INCOME OF THE FAMILY
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54
27
19
0
10
20
30
40
50
60
Less than 50000 50000-100000 Above 100000
Annual income
Percentage
TABLE 8
ADDITIONAL INCOME
Additional income No.of respondents Percentage (%)
Yes 74 37.0
No 126 63.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 37% of rural Customers
have additional income and 63% of rural Customers dont have additional
income.
CHART 8
ADDITIONAL INCOME
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63
37
0
10
20
30
40
50
60
70
Yes No
Additional income
Percentage
TABLE 9
DO YOU HAVE SAVINGS
SavingsNo.of respondents Percentage (%)
Yes 135 67.5
No 65 32.5
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 37% of rural Customers
have savings and 63% of rural Customers dont savings.
CHART 9
DOYOUHAVE SAVINGS
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32.5
67.5
0
10
20
30
40
50
60
70
80
Yes No
Savings
Percentage
TABLE 10
PREFER TO SAVE
Preference to save No.of respondents Percentage (%)
Bank 141 70.5
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Stock market 5 2.5
Mutual Fund 11 5.5
Postal Govt. bonds 43 21.5
Total 200 100.0
Source : Primary data
INFERENCE:
From the above table it could be inferred that 70.27% of rural
Customers prefer to bank, 2.70% of rural Customers prefer to stock market,
5.41% of rural Customers prefer to; mutual funds and 21.62% of rural
Customers prefer to postal govt.bonds.
CHART 10
PREFER TO SAVE
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32.5
67.5
0
10
20
30
40
50
60
70
80
Yes No
Savings
Percentage
TABLE 11
AWARE OF LIFE INSURANCE
AwarenessNo.of respondents Percentage (%)
Yes 66 33.0
No 134 67.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 33% of rural customer
knowing about life insurance, 67% of rural customer didnt know about life
insurance.
CHART 11
AWARE OF LIFE INSURANCE
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67
33
0
10
20
30
40
50
60
70
80
Yes No
Awareness
Percentage
TABLE 12
AWARENESS OF PRIVATE LIFE INSURANCE COMPANIES
Private life insurance companies No.of respondents Percentage (%)
HDFC SLIC 48 24.0
ICICI 60 30.0
Bajaj Allianz 32 16.0
Reliance 36 18.0Others 24 12.0
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Total 200 100.0
Source : Primary data
INFERENCE:
From the above table it could be inferred that 24% of rural customer
know about HDFC SLIC.
CHART 12
AWARENESS OF PRIVATE LIFE INSURANCE COMPANIES
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12
1816
30
24
0
5
10
15
20
25
30
35
HDFC SLIC ICICI Bajaj Allianz Reliance Others
Private life insurance companies
Percentage
TABLE 13
THE SPECIAL FEATURES OF LIFE INSURANCE
Special features of life insurance No.of respondents Percentage (%)
Preventive loss 26 13.0
Investment 10 5.0
Sharing of Risk 98 49.0
Tax benefit 54 27.0
Others 12 6.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table 49% of rural customer says insurance is sharing of
risk
CHART 13
THE SPECIAL FEATURES OF LIFE INSURANCE
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6
27
49
5
13
0
10
20
30
40
50
60
Preventive loss Investment Sharing of Risk Tax benefit Others
Special features of life insurance
Percentage
TABLE 14
AWARE OF HDFC AND SLIC
Aware of HDFC and SLICNo.of respondents Percentage (%)
Yes 74 37.0
No 126 63.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 37% of the customers
aware of HDFC SLIC and 63% of the customers not aware of HDFC SLIC.
CHART 14
AWAREOF HDFC AND SLIC
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63
37
0
10
20
30
40
50
60
70
Yes No
Aware of HDFC and SLIC
Percentage
TABLE 15
SOURCES OF AWARENESS
Source of Awareness No.of respondents Percentage (%)
Insurance agent 54 27.0
Advertisement 84 42.0
Friends &Relatives 32 16.0
Others 30 15.0
Total 200 100.0Source : Primary data
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INFERENCE:
From the above table it could be inferred that 27% of rural Customers
are know though insurance agents, 42% of rural Customers are know though
advertisement, 16% of rural Customers are know though friends/Relatives,
15% of rural Customers are know though others.
CHART 15
SOURCES OF AWARENESS
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1516
42
27
0
5
10
15
20
25
30
35
40
45
Insurance agent Advertisement Friends &Relatives Others
Sources of Awareness
Percentage
TABLE 16
PURCHASE OF INSURANCE PRODUCT FROM HDFC & SLIC
OpinionNo.of respondents Percentage (%)
Yes 30 15.0
No 170 85.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 15% of rural customer
having HDFC SLIC products and 85% of rural customer dont have HDFC
SLIC products.
CHART 16
PURCHASE OF INSURANCE PRODUCT FROM HDFC & SLIC
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85
15
0
10
20
30
40
50
60
70
80
90
Yes No
Opinion
Percentage
TABLE 17
TYPE OF PLAN PREFER
Type of plan prefer No.of respondents Percentage (%)
production plan 28 14.0
Investment plan 52 26.0
Pension plan 36 18.0
Savings plan 84 42.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 14% of rural Customers
are preferred protection plans, 26% of rural Customers are preferred investment
plans, 18% of rural Customers are preferred pension plans, and 42% of rural
Customers are preferred savings plans only.
CHART 17
TYPE OF PLAN PREFER
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42
18
26
14
0
5
10
15
20
25
30
35
40
45
production plan Investment plan Pension plan Savings plan
Type of plan prefer
Percentage
TABLE 18
DO YOU HAVE ULIP PRODUCTS
OpinionNo.of respondents Percentage (%)
Yes 50 25.0
No 150 75.0
Total 200 100.0
Source : Primary data
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INFERENCE:
From the above table it could be inferred that 24% of rural customers
are having ULIP products and 75% of rural customers are not having ULIP
products.
CHART 18
DO YOU HAVE ULIP PRODUCTS
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75
25
0
10
20
30
40
50
60
70
80
Yes No
Opinion
Percentage
TABLE 19
PREFERENCE OF ULIP PRODUCTS
Preference of ULIP products No.of respondents Percentage (%)
Endowment 32 16.0
Young star 16 8.0
Children plans 112 56.0
Money back 20 10.0Others 20 10.0
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Total 200 100.0
Source : Primary data
INFERENCE:
From the above table it could be inferred that 16% of rural Customers
are preferred Endowment plans, 8% of rural Customers are preferred in Young
star plans, 56% of rural Customers are preferred childrens plans,10% of rural
Customers are preferred Money back plans,and10% of rural Customers are
preferred other plans.
CHART 19
PREFERENCE OF ULIP PRODUCTS
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1010
56
8
16
0
10
20
30
40
50
60
Endowment Young star Children plans Money back Others
Preference of ULIP products
Percentage
TABLE 20
SATISFACTION LEVEL TOWARDS SERVICES PROVIDED
BY HDFC AND SLIC
Opinion No.of respondents Percentage (%)
Highly Satisfied 48 24.0
Satisfied 124 62.0
Dissatisfied 28 14.0Total 200 100.0
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Source : Primary data
INFERENCE:
From the above table it could be inferred that 24% of rural customers
are highly satisfaction level, 62% of rural customers are satisfied, but 14% of
rural customers are dissatisfied.
CHART 20
SATISFACTION LEVEL TOWARDS SERVICES PROVIDED
BY HDFC AND SLIC
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14
62
24
0
10
20
30
40
50
60
70
Highly Satisfied Satisfied Dissatisfied
Opinion
Percentage
TABLE 21
PLANS AVAILABLE IN HDFC
Satisfaction No.of respondents Percentage (%)
Yes 86 43
No 114 57
Total 200 100.0
Source : Primary data
INFERENCE:
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43% of the customers like to suggest others to invest in HDFC SLIC.
57% of the customers are not interested to suggest others to invest in HFDC
SLIC.
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CHART 21
PLANS AVAILABLE IN HDFC
57
43
0
10
20
30
40
50
60
Yes No
Opinion
Percentage
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TABLE 22
LEVELS OF CUSTOMER SATISFACTION
Satisfaction No.of respondents Percentage (%)
Highly satisfied 54 27
Satisfied 88 44
Neither satisfied 28 14
Dissatisfied 10 5
Total 200 100.0
Source : Primary data
INFERENCE:
27% of the respondents are satisfied with HDFC SLIC. 44% of the
respondents are highly satisfied. 108% of the respondents are neither satisfied
nor dissatisfied. 5% of the respondents are dissatisfied.
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CHART 22
LEVELS OF CUSTOMER SATISFACTION
5
14
44
27
0
5
10
15
20
25
30
35
40
45
50
Highly satisfied Satisfied Neither satisfied Dissatisfied
Opinion
Perc
entage
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TABLE 23
AWARENESS ABOUT PROMOTIONAL TOOLS
Awareness No.of respondents Percentage (%)
Aware 60 30
Unaware 140 70
Total 200 100.0
Source : Primary data
INFERENCE:
70% of the respondents are aware of unit link insurance plan plus
offered by the insurance company. 30% of the respondents not aware of unit
link insurance plan plus offered by the insurance companies.
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CHART 23
AWARENESS ABOUT PROMOTIONAL TOOLS
70
30
0
10
20
30
40
50
60
70
80
Aware Unaware
Opinion
Perc
entage
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TABLE 24
RATING OF THE PROMOTIONAL TOOLS
Opinion No.of respondents Percentage (%)
Excellent 76 38
Good 36 18
Fair 84 42
Poor 4 2
Total 200 100
Source : Primary data
INFERENCE:
38% of the customers have stated that the promotional activities are
good. 18% of the customers have stated that the promotional activities are
excellent. 42% of the customers have stated that the promotional activities are
fair. 02% of customers have stated that the promotional activities are poor.
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CHART 24
RATING OF THE PROMOTIONAL TOOLS
2
42
18
38
0
5
10
15
20
25
30
35
40
45
Excellent Good Fair Poor
Opinion
Percentage
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HYPOTHESIS YESTING
CHI SQUARE TEST
Hypothesis:
Null hypothesis: Ho There is no relationship between age and variables
Alternative Hypothesis: There is relationship between age and variables
TABLE 25
AGE OF RESPONDENTS - VARIABLES
Value Df
Aware of life insurance 3.203E2 16
Private life insurance 4.290E2 16
Special life insurance 1.768E2 4
Aware of HDFC SLIC 2.866E2 12
Sources of awareness 1.346E2 4
Purchasing insurance products 3.667E2 12
Type of plan prefer 1.200E2 4
ULIP products 4.333E2 16
Satisfaction level 2.507E2 8
INFERENCE:
The null hypothesis is rejected so that alternative hypothesis is accepted.
So there is significant relationship between the age and variables.
Hypothesis:
Null hypothesis: Ho There is no relationship between savings and variables
Alternative Hypothesis: There is relationship between savings and variables
TABLE 26
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SAVINGS - VARIABLES
Value df
Aware of life insurance 47.430a 1
Private life insurance 1.808E2 4
Special life insurance 1.955E2 4
Aware of HDFC SLIC 56.555a 1
Sources of awareness 1.868E2 3
Purchasing insurance products 16.993a 1
Type of plan prefer 1.330E2 3
ULIP products 32.099a 1
Satisfaction level 81.665a 2
INFERENCE:
The null hypothesis is rejected so that alternative hypothesis is accepted.
So there is significant relationship between the savings and variables.
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ANOVA
Sum of
Squares df
Mean
Square F
Which type of plan you
prefer
Between
Groups5.026 1 5.026 68.379
WithinGroups
14.554 198 .074
Total 19.580 199
Annual income of thefamily
BetweenGroups
54.278 1 54.278 294.906
WithinGroups
36.442 198 .184
Total 90.720 199
Are you aware of Lifeinsurance
BetweenGroups
10.487 1 10.487 61.552
WithinGroups
33.733 198 .170
Total 44.220 199
In ULIP productswhich plan you prefer
BetweenGroups
100.792 1 100.792 141.329
WithinGroups
141.208 198 .713
Total 242.000 199
What is yoursatisfaction leveltowards services
provided by HDFCSLIC
BetweenGroups
27.128 1 27.128 114.597
WithinGroups
46.872 198 .237
Total 74.000 199
INFERENCE:
The null hypothesis is rejected so that alternative hypothesis is accepted.
So, there is significant relationship between the awareness and variables.
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CHAPTER 5
FINDINGS
33% of respondent have awareness about insurance
24% of respondent only know about HDFC SLIC.
49% of respondent have stated savings of risk as the special feature of
life insurance.
63% of respondent dont have additional income.
42% of respondent know about HDFC Standard Life Insurance through
Advertisement.
15% of respondents are having HDFC SLIC products.
Majority (43%) of respondents have stated that they are not aware of
plans available in HDFC.
Majority (44%) of respondents have stated that they are moderately
satisfied with the plans offered by HDFC.
Majority 70% of respondents are not aware of promotional strategies
adopted by HDFC.
Majority of the respondents have stated that the promotional tools used
is not upto the mark.
42% of respondents are having savings plans.
25% of respondents are having ULIP product.
56% of respondent are the customer of HDFC SLIC preferred childrens
plans only.
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24% of respondents are highly satisfied.
CHAPTER 6
SUGGESTIONS
As the customer felt that there is no adequate sales promotion so the
researchers suggest that more advertisement regarding HDFC SLIC to
the rural customers will help to reach them.
The executive are low in order to cover the entire customers around the
sales the company should focus on to the human resource
Due to the high premium the company could not able to cover the entire
rural area so the company should try to reduce the premium.
Awareness of the ULIP products is low so the company should increase
the awareness of the product to promote the sales.
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CHAPTER 7
CONCLUSION
This study is being alone for performance of HDFC SLIC products
among the rural Customers. Most of the rural Customers have not the aware
about the HDFC SLIC. So they have to advertise their product more among
rural Customers.
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REFERENCES
BOOKS
1. Bhattacharya., International marketing Management, Sultan Chand
& Sons, 2000
2. Philip kotler (2000 Millennium Edition), Marketing Management,
Printice Hall of India, New Delhi.
3. G C Beri (2nd Edition), Marketing Research, Tata McGraw Hill
Publishers Company Ltd.,
4. Kothari C.R., Research Methodology, Second Edition May 1990.
WEB SITES
1. www.chandraauto.com
3. www.marketing research.com
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ANNEXURE
QUESTIONNAIRE:
1) Gender? :
Male Female
2. Age?
Below 25 25-35
35-45 Above 45
3. Occupation:
Farmers Business
Employee Students
4. Educational Qualification?
School level College level
Pharmacy No formal education
5. Marital Status?
Married Unmarried
6. Size of your family?
Up to 2 members 3-4 members
5-6 members Above 6
7. Which income group (annual) do you belong to?
Less than Rs.50000 Rs.50000-Rs.100000
Rs.100000 & Above
8. Do you have additional income?
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Yes No
9. Do you have savings?
Yes No
If yes which one you can prefer?
Bank Stock Market
Mutual funds Postal Govt.Bonds
10. Are you aware of Life Insurance Brands?
Yes No
11. What are the private life insurance Brands you are aware of?
HDFC SLIC ICICI Bajaj Allianz
Reliance Others
12. What are the special features of life insurance that you know?
Preventive of loss Investment
Sharing of Risk Tax Benefit Others
13. Are you aware of HDFC Standard Life Insurance?
Yes No
14. If Yes sources of awareness?
Insurance agent Advertisement
Friends/Relatives Others
15. Are you purchase any insurance product from HDFC SLIC?
Yes No
16. Which type of plan you prefer?
Production plans Investment plans
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Pension plans Savings plans
17. Do you have ULIP products?
Yes No
18. In ULIP products which plan you prefer?
Endowment Young star
Children plans Money back others specify
19. What is your satisfaction level towards services provided by HDFC SLIC?
Highly Satisfied Satisfied
Dissatisfied
20. Are you satisfied with the plants available in HDFC?
Yes No
21. If you express your level of satisfaction
Highly Satisfied Satisfied Dissatisfied
Highly Dissatisfied
22. Are your aware of promotional strategies adopted by HDFC?
Yes No
23. Express your level of satisfaction towards the promotional strategy adopted
by HDFC
Highly Satisfied Satisfied Dissatisfied
Highly Dissatisfied
24. Any suggestions,
...
...
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Thank you for your kind cooperations.