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DECLARATION

I, AMIT KUMAR declare that the project report entitled CHILDREN POLICY IN

INSURANCE AND ITS FUTURE PROSPECTUS being submitted to the

U.P.TECHNICAL UNIVERSITY for the partial fulfillment of the requirement for the degree of

Master of Business Administration is my own endeavors and it has not been submitted earlier to

any institution/university for any degree.

Place: LUCKNOW

Date: ( )


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ACKNOWLEDEMENT

The six weeks Summer Training at HDFC Life have been a great learning

experience. It has been one of the most enriching experiences for me to work

along with the employees of one of the best managed organizations, a

company rightly considered as the Navratna among the public sector

undertakings of the India.I am very thankful to Sh.P.K GOEL DGM (Finance) who has given an opportunity to learn

about the procurement procedures followed here by allowing me to undergo training at their

Finance (Concurrence) Department. He gave me full support to learn the crucial things of this

whole exercise. I am thankful to sir for the his kind support in completion of this project

report by guiding me throughout my training, for his support, guidance and providing the

valuable information from his vast experiences which has enabled me in successfully

completing the Summer training which is an essential part of my MBA course curriculum.

NISHANT SAXENA


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TABLE OF CONTENTS

S.N TOPIC PAGE

NUMBER

1 INTRODUCTION OF TOPIC 1

2 NEED AND RELEVANCES OF STUDY 3

3 OBJECTIVE OF STUDY 4

4 INTRODUCTION OF NTPC 5

6 POWER STATION IN INDIA OF NTPC 9

7 RESEARCH METHODOLOGY 12

8 PROCUREMENT STEPS 13

9 TENDERING PROCEDURE 14

10 RATIO ANALYSIS OF NTPC 40

11 FINDINGS 63

12 RECOMMENDATION 64

13 LIMITATION OF STUDY 65

14 CONCLUSION 66

15 APPENDIX 69


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COMPANY PROFILE

HDFC LIMITED

HDFC was incorporated in 1977 with the primary objective of meeting a social

needthat of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in thecountry through the provision of housing finance in a systematic and professional

manner, and to promote home ownership. Another objective is to increase the flow

of resources to the housing sector by integrating the housing finance sector with

the overall domestic financial markets.

Organizational Goals

HDFCs main goals are to

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the

country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders,

e) To grow through diversification by leveraging off the existing client base.


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HDFC STANDARD LIFE

The Partnership:

HDFC is an organization that strives for excellence, with the twin objectives of

enhancing customer satisfaction and shareholder value

HDFC and Standard Life first came together for a possible joint venture, to enter

the Life Insurance market, in January 1995. At the outset it was clear that both

companies shared similar values and beliefs and a strong relationship quickly

formed. In October 1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further

strengthening the relationship. The next three years were filled with uncertainty,

due to changes in government and ongoing delays in getting the IRDA (Insurance

Regulatory and Development authority) Act passed in parliament.

Despite this both companies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource

made available. Around this time Standard Life purchased 2% of Infrastructure

Development Finance Company Ltd. (IDFC). Standard Life also started to use theservices of the HDFC Treasury department to advise them upon their investments

in India.

Towards the end of 1999, the opening of the market looked very promising and

both companies agreed the time was right to move the operation to the next level.

Therefore, in January 2000 an expert team from the UK joined a hand picked team

from HDFC to form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5%

stake in HDFC Bank. In a further development Standard Life agreed to participate

in the Asset Management Company promoted by HDFC to enter the mutual fund

market. The Mutual Fund was launched on 20th July 2000.


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HDFC STANDARD LIFE

MISSION:-

HDFC Standard Life aims to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in themarket, rather it is a combination of several things like:

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standard

Increasing market share


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VALUES:-

1. SECURITY: Providing long term financial security to its policy holders

will be the companys constant endeavor. It will do this by offering life

insurance and pension products.

2. TRUST: HDFC Standard Life appreciates the trust placed by its policy

holders in it. Hence, it will aim to manage their investments very carefully

and live up to this trust.

3. INNOVATION: Recognizing the different needs of its customers, it will be

offering a range of innovative products to meet these needs. The companys

mission is to be the best new life insurance company in India and these are

the values that will guide it in this


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Functions of Insurance

The functions of Insurance can be bifurcated into three parts:

1. Primary Functions

2. Secondary Functions3. Other Functions

Functions

of

insurance

Primary

functions

Secondary

fuction

Other

fuctions


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The primary functions of insurance include the following:

1) Provide Protection - The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check the

happening of the risk, but can certainly provide for the losses of risk. Insurance isactually a protection against economic loss, by sharing the risk with others.

2) Collective bearing of risk - Insurance is a device to share the financial loss of

few among many others. Insurance is a mean by which few losses are shared

among larger number of people. All the insured contribute the premiums towards a

fund and out of which the persons exposed to a particular risk is paid.

3) Assessment of risk - Insurance determines the probable volume of risk by

evaluating various factors that give rise to risk. Risk is the basis for determining

the premium rate also

4) Provide Certainty - Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is device whereby the uncertain risks may be

made more certain.


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The secondary functions of insurance include the following:

1) Prevention of Losses - Insurance cautions individuals and businessmen to adopt

suitable device to prevent unfortunate consequences of risk by observing safetyinstructions; installation of automatic sparkler or alarm systems, etc. Prevention of

losses causes lesser payment to the assured by the insurer and this will encourage

for more savings by way of premium. Reduced rate of premiums stimulate for

more business and better protection to the insured.

2) Small capital to cover larger risks - Insurance relieves the businessmen from

security investments, by paying small amount of premium against larger risks and

uncertainty.

3) Contributes towards the development of larger industries - Insurance

provides development opportunity to those larger industries having more risks in

their setting up. Even the financial institutions may be prepared to give credit to

sick industrial units which have insured their assets including plant and machinery.

The other functions of insurance include the following:

1) Means of savings and investment - Insurance serves as savings and

investment, insurance is a compulsory way of savings and it restricts the

unnecessary expenses by the insured's For the purpose of availing income-tax

exemptions also, people invest in insurance.


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2) Source of earning foreign exchange - Insurance is an international business.

The country can earn foreign exchange by way of issue of marine insurance

policies and various other ways.

3) Risk Free trade - Insurance promotes exports insurance, which makes theforeign trade risk free with the help of different types of policies under marine

insurance cover.


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Why do I need Childrens Plans?

Children's Plans helps you save so that you can fulfill your child's dreams and

aspirations. These plans go a long way in securing your child's future by financing

the key milestones in their lives even if you are no longer around to oversee them.

As a parent, you wish to provide your child with the very best that life offers, the

best possible education, marriage and life style.Most of these goals have a price tag attached and unless you plan your finances

carefully, you may not be able to provide the required economic support to your

child when you need it the most. For example, with the high and rising costs of

education, if you are not financially prepared, your child may miss an opportunity

of a lifetime.

Today, a 2-year MBA course at a premiere management institute would cost you

nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later,

you would need almost Rs. 9,07,680/- to finance your child's MBA degree.

An illustration of how education expenses could rise with passing time due to

inflation.

Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a.

So, how can you cope with these costs? Children's Plans help you save steadily

over the long term so that you can secure your child's future needs, be it higher

education, marriage or anything else. A small sum invested by you regularly can

help you build a decent corpus over a period of time and go a long way in

providing your child a secured financial future along with.


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HDFC SL YoungStar Super Premium

With HDFC SL YoungStar Super Premium you can fulfil your child's immediate

and future needs- all on your own. Start saving now with this unit linked insurance

planand be assured that savings for your child will continue, even in your absence.

This plan offers you choice of cover options and benefit payment preferences- all

designed to suit your needs.

Features

Please roll over your mouse over circles for explanation.;

Advantages

The Triple Insurance Benefit helps you secure your child's immediate and future

needs. In case of your unfortunate demise or critical illness, we will pay the Sum

Assured to your child (Beneficiary). Your family need not pay any furtherpremiums. With Save -n- Gain benefit ,we will pay 50% of all the original regular

premiums towards your policy and 50% of the premiums will be paid to the

Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical

Illness cover terminates immediately.

You can customize the ideal plan for your child by choosing the premium you wish

to invest along with the Sum Assured, depending on the level of protection

required and Benefit payment preference.

This plan can be taken by filling Short Medical Questionnaire, which may not

require you to go for medicals. Kindly refer to the product brochure for details.

You can change your investment fund choices in two ways:

o Switching: You can move your accumulated funds from one fund to another

anytime

o Premium Redirection: You can pay your future premiums into a different

selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act,

1961.
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HDFC SL YoungStar Super II

There is no bigger joy than being able to fulfil your child's dream on your own.

With HDFC SL YoungStar Super II you can fulfil your child's immediate and

future needs. So tomorrow when your child needs your support you don't have to

depend on anyone else.

Features

Please roll over your mouse over circles for explanation.

Advantages

In case of your unfortunate demise or critical illness, we will pay the greater of

Sum Assured (less partial withdrawals) or Fund Value to your child (Beneficiary).

The policy will terminate. We will pay 100% of all the future regular premiums to

the Beneficiary as and when due, on an annual basis. Please refer to the sales

brochure for details. You can customize the ideal plan for your child by choosing the premium you wish

to invest along with the Sum Assured, depending on the level of protection

required.

This plan can be taken by filling Short Medical Questionnaire, which may not

require you to go for medicals. Kindly refer to the product brochure for details.

You can change your investment fund choices in two ways:

o Switching: You can move your accumulated funds from one fund to another

anytime

o Premium Redirection: You can pay your future premiums into a different

selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act,

1961.


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BSLI Classic Child Plan

A plan that gives you a joint life cover for you and your child and the freedom to

choose how your money is invested to fulfill your childs dreams

How Plan works

When it comes to planning for your child's future, you wish for a plan that securesyour their future and also gives you the flexibility to manage your savings.

Presenting the BSLI Classic Child Plan - a plan that secures your child's future, and

gives you the freedom to direct your savings to our range of 10 Investment Funds.

This plan offers you:

Joint life cover for you and your child

Flexibility of growing your savings through 10 Investment Funds, as per your risk

appetite

Enhanced financial security for your loved ones

How BSLI Classic Child Plan works:

1. You choose the Savings Date that suits your financial goals for your child.

2. Your Policy Term will be the Savings Date + 20 years.

3. You choose the Basic Premium you want to pay every year.

4. You will receive Basic Sum Assured which is the minimum death benefit

payable on the demise of the primary life insured. The Basic Sum Assured is

automatically determined as your Basic Premium multiplied by: The higher of 10 or the number of years to maturity divided by 2, for entry ages

below 45; or

The higher of 7 or the number of years to maturity divided by 4, for entry ages

45 and above

5. You have an option to choose an Enhanced Sum Assured and increase the

financial security for your child's future. With this option you can choose any

amount of additional life cover over and above the Basic Sum Assured at a nominal

cost.
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6. You have an option to choose from our range of riders and customise your

family's future financial security.

Plan Summary

Entry AgeGrand/Parent

Child

1865 years, provided age on Savings Date is75 or less

30 days17 years

Savings DateChilds age 1827, subject to minimum of 10

policy years

Policy Term Savings Date + 20 years

Basic Premium

Minimum Rs. 25,000 p.a. if paid annually

Minimum Rs. 30,000 p.a. if paid monthly,quarterly or semi-annually

Pay Term Years to Savings Date

Top-up Premium Minimum Rs. 5,000

Enhanced Sum AssuredMinimum Rs. 50,000

Not exceeding Basic Sum Assured

Insurance Dictionary

Premium: The periodic payments made to acquire the insurance and maturity

benefits

Policy Term: Total benefit tenure of the policy

Policy Surrender; Voluntary closure of policy before completion of policy

term/td>

Maturity Benefit; The final amount which the customer receives at the end of

policy term

Rider: Additional protection for an extra premium on the base policy

Disclaimer

Birla Sun Life Insurance - BSLI Classic Child Plan - are only the names of the

Company and Policy respectively and do not in any way indicate their quality,

future prospects or returns. The premium paid in unit linked life insurance policies

are subject to investment risk associated with capital markets and the unit price of

the units may go up or down based on the performance of investment fund and

factors influencing the capital market and the policyholder is responsible for his/her

decisions. Tax benefits are subject to changes in the tax laws. Insurance is the

subject matter of solicitation. Investment risk in the investment portfolio is borne by


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the policy holder. For more details refer to product brochure.

Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill

Compound, 841, Senapati Bapat Marg,

Benefits

Based on your choices you will receive a host of benefits as below:

1. Maturity Benefit: You will receive the Fund Value at maturity.

2. Death Benefit: In case of the unfortunate demise of the primary life insured

the policy is in effect, we will pay to the beneficiary the Basic Sum Assured. The

will continue as long as the secondary life insured is alive.

Prior to the Savings Date:

In case of the unfortunate demise of the primary life insured (grand / paren

will pay the Basic Sum Assured plus Enhanced Sum Assured, if any, and all futur

Premiums in monthly installments starting from the next policy month

In case of the unfortunate demise of the secondary life insured (child), we

terminate the policy on the Savings Date and pay the Fund Value as on that date

In case of the unfortunate demise of the secondary life insured (child), we

terminate the policy on the Savings Date and pay the Fund Value as on that date

Starting from the Savings Date:

In case of the unfortunate demise of the primary life insured (child), we wi

the Basic Sum Assured

In case of the last unfortunate demise of the primary or secondary life insu

will terminate the policy and pay the Fund Value

Enhanced Sum Assured: Based on your needs you can increase the life cover o

above the Basic sum Assured by opting for the Enhanced Sum Assured at incepti

can choose any amount of Enhanced Sum Assured, subject to a minimum of Rs. 5

BSLI Classic Child PlanA plan that gives you a joint life cover for you and your child and the

freedom to choose how your money is invested to fulfill your childs dreams


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and not exceeding Basic Sum Assured.

Joint Life Benefit: This is a joint life insurance policy where the grand/parent is the

primary life insured and the child is the secondary life insured. On the Savings Date, the

child becomes the primary life insured and the grand / parent becomes the secondary life

insured.

Surrender Benefit: In case of emergency fund requirements, you can surrender your

policy after the completion of five policy years, and receive the Fund Value at that time.

Prior to Savings Date, in situations where the primary life insured (grand / parent) is

dead, the secondary life insured (child) can surrender the policy anytime after attaining

age 18.

Top-up Premium: If you wish to increase your investment in the policy, you have the

freedom to invest additional amounts to your premium as top-up premiums, anytime

during the policy term, except in the five years prior to maturity and as long as all due

policy premiums have been paid. The minimum top-up premium is Rs. 5,000 and your

Basic Sum Assured will be automatically increased. For more details please refer to our

brochure.

Guaranteed Additions: Your policy enjoys a boost in form of additional units. For mor

details on the guaranteed additions, please contact your financial advisors or refer to our

brochure.

Partial Withdrawals: You can make unlimited partial withdrawals to meet any financia

emergencies any time after (a) five complete policy years or (b) secondary life insuredattaining the age of 18, whichever is later.

Policy Loans: You can also avail loans on your policy.

Self-Managed Option - The flexibility to direct your savings in our range of 10 fund

The Self-Managed Option gives you complete access to invest your premiums in our we

established suite of 10 investment funds, ranging from 100% debt to 100% equity. You

also enjoy full freedom to switch from one investment fund to another, as per your

changing requirements.

Choose from our range of 10 Investment Funds, to suit your risk appetite Allocate your savings the proportion of your choice

Change your allocations as per your changing requirements


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Disclaimer

Birla Sun Life Insurance - BSLI Classic Child Plan - are only the names of the


future prospects or returns. The premium paid in unit linked life insurancepolicies are subject to investment risk associated with capital markets and the unit

price of the units may go up or down based on the performance of investment

fund and factors influencing the capital market and the policyholder is

responsible for his/her decisions. Tax benefits are subject to changes in the tax

laws. Insurance is the subject matter of solicitation. Investment risk in the

investment portfolio is borne by the policy holder. For more details refer to

product brochure. Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th

floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road,

Mumbai - 400 013. Reg No. 109

BSLI Dream Child Plan

A plan that gives you a joint life cover for you and your child and a

guaranteed amount when you require

How Plan works

The best education, a successful career, a business start-up or weddingplans wh

comes to planning for your child's future; you want to ensure that these dreams are


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fulfilled under all circumstances. Presenting the BSLI Dream Child Plan - a plan that

gives you a Guaranteed Savings Amount on the date of your choice to fulfill your child's

dreams and a range of options to enhance the financial security of your loved ones.

This plan offers you:

Guaranteed Savings Amount on date of your choice Joint life cover for you and your child

Enhanced financial security for your loved ones

How BSLI Dream Child Plan works:

1. You choose the Guaranteed Savings Date that suits your objectives. Your Guaranteed

Savings Date is the policy anniversary when your child's attained age is from 18 to 27

years, subject to a minimum of 10 policy years.

2. Your Policy Term will be your Guaranteed Savings Date + 20 years.

3. You decide the Basic Premium you want to pay every year.

4. You will receive Basic Sum Assured which is the minimum death benefit payable on

the demise of the primary life insured. The Basic Sum Assured is automatically

determined as your Basic Premium multiplied by:

The higher of 10 or the number of years to maturity divided by 2, for entry ages below

45; or

The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 and

above

5. You have an option to choose an Enhanced Sum Assured to increase the financial

security for your loved ones. With this option you can choose any amount of additionallife cover over and above the Basic Sum Assured at a nominal cost.

6. You have an option to choose from our range of riders to further customize the

financial security of your loved ones.

Plan Summary

Entry Age - Grand/Parent-

Child

18 - 65 years, provided age on Guaranteed Savings

Date is 75 or less

30 days - 17 years

Guaranteed Savings DateChild's age 18 - 27, subject to minimum of 10 policy

years

Policy Term Guaranteed Savings Date + 20 years


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Basic Premium Minimum Rs. 12,000 p.a. if paid annually

Minimum Rs. 15,000 p.a. if paid semi-annually

Minimum Rs. 20,000 p.a. if paid quarterly

Minimum Rs. 24,000 p.a. if paid monthly

Pay Term Years to Guaranteed Savings Date

Enhanced Sum Assured Minimum Rs. 50,000

Not exceeding Basic Sum Assured

Disclaimer

Birla Sun Life Insurance - BSLI Dream Child Plan - are only the names of the


future prospects or returns. The premium paid in unit linked life insurance policies

are subject to investment risk associated with capital markets and the unit price ofthe units may go up or down based on the performance of investment fund and

factors influencing the capital market and the policyholder is responsible for

his/her decisions. Tax benefits are subject to changes in the tax laws. Insurance is

the subject matter of solicitation. Investment risk in the investment portfolio is

borne by the policy holder. For more details refer to product brochure. Regd.

Office: One Indiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill

Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg

No. 109

BSLI Dream Child PlanA plan that gives you a joint life cover for you and your child and a guaranteed

amount when you require

Benefits

Based on your choices, you will receive a host of benefits as below:

1. Maturity Benefit: You will receive the Fund Value at maturity.

2. Death Benefit: In case of the unfortunate demise of the primary life insured during

the policy term, the beneficiary will receive the Basic Sum Assured. The policy will


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continue as long as the secondary life insured is alive.

Prior to the Guaranteed Savings Date:

In case of the unfortunate demise of the primary life insured (grand / parent), we

will pay the Basic Sum Assured plus Enhanced Sum Assured, if any and all future

Basic Premiums, in monthly installments starting from the next policy month

In case of the unfortunate demise of the secondary life insured (child), we willterminate the policy on the Guaranteed Savings Date and pay the Fund Value as on

that date

In case of the last unfortunate demise of either the primary or secondary life

insured, we will terminate the policy and pay the Fund Value plus the commuted

value of all future Basic Premiums that are being paid by us

Starting from the Guaranteed Savings Date:

In case of the unfortunate demise of the primary life insured (child), we will pay theBasic Sum Assured

In case of the last unfortunate demise of the primary or secondary life insured, we

will terminate the policy and pay the Fund Value

3. Enhanced Sum Assured: Based on your needs you can increase the life cover over

and above the Basic Sum Assured by opting for the Enhanced Sum Assured at

inception. You can choose any amount of Enhanced Sum Assured, subject to a

minimum of Rs. 50,000 and not exceeding Basic Sum Assured.

4. Joint Life Benefit: This is a joint life insurance policy where the grand / parent is

the primary life insured and the child is the secondary life insured. On the Guaranteed

Savings Date, the child becomes the primary life insured and the grand / parent

becomes the secondary life insured.

5. Surrender Benefit: In case of emergency fund requirements, you can surrender your

policy after the completion of five policy years, and receive the Fund Value at that

time.

6. Guaranteed Additions: Your policy enjoys a boost in the form of additional units.

For more details on the guaranteed additions, please contact your financial advisors or

refer to our brochure.

7. Partial Withdrawals: You can make unlimited partial withdrawals to meet anyfinancial emergencies any time after (a) five complete policy years or (b) secondary

life insured attaining the age of 18, whichever is later.

8. Policy Loans: You can also avail loans on your policy.

Disclaimer

Birla Sun Life Insurance - BSLI Dream Child Plan - are only the names of the

Company and Policy respectively and do not in any way indicate their quality, future


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prospects or returns. The premium paid in unit linked life insurance policies are

subject to investment risk associated with capital markets and the unit price of the

units may go up or down based on the performance of investment fund and factors

influencing the capital market and the policyholder is responsible for his/her

decisions. Tax benefits are subject to changes in the tax laws. Insurance is the subject

matter of solicitation. Investment risk in the investment portfolio is borne by the

policy holder. For more details refer to product brochure. Regd. Office: OneIndiabulls Centre, Tower 1, 15th & 16th floor, Jupiter Mill Compound, 841, Senapati

Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg No. 109

Unique No.: 109L065V01


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Why Bajaj Allianz Life Insurance?

Bajaj Allianz Life Insurance Company Limited is a union between Allianz SE, the

worlds leading insurer and Bajaj Finserv, one of Indias most respected names.

Allianz SE is a leading insurance conglomerate globally and one of the largest

asset managers in the world, managing assets worth over a Trillion Euros (over

Rs. 55,00,000 crores). At Bajaj Allianz, we realize that you seek an insurer you can

Trust your hard earned money with. Allianz SE has more than 110 years of

Financial experience in over 70 countries and Bajaj Finserv, trusted for over 55

Years in the Indian market, are committed to offering you financial solutions that

provide all the security you need for your family and yourself.

At Bajaj Allianz , customer delight is our guiding principle. Ensuring world class

solutions by offering you customized products with transparent benefits supported

by the best technology is our business philosophy.


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3. You are eligible for Tax Benefits under Section 80C and Section 10(10)D of the

Income Tax Act.

4. Assuring Your Childs Future: In an uncertain world, the prime interest of your

child cannot be jeopardized in any way. Which is why we have built in some

added benefits in all our plans to protect the interests of your childs future, by

counter insuring you - the policyholder.


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Inbuilt Benefits

Premium Waiver Benefit: In case of death or accidental total permanent

disability

of the policyholder during the premium payment term, all future premium

payments are waived. This benefit will not be available in the event of accidental

permanent total disability after age 65 of the policyholder.

Family Income Benefit: In case of death or accidental total permanent disability

of the policyholder during the term of the policy, a monthly income benefit of

1% of the sum assured (12% per annum) subject to a maximum of Rs.10,000

p.m. becomes payable till the end of the policy term. This benefit will not be

available in the event of accidental permanent total disability after age 65 of the

policyholder.

Option to Purchase further Insurance at Maturity: For ensuring continuity of the

valuable insurance protection that the child was enjoying, we offer the child an

option to purchase a with profits endowment or an equivalent plan from Bajaj

Allianz Life Insurance Company for twice the amount of face value of this

policy, without any medical examination, on the premium rates prevailing at

that time (The application must be made at least 6 months prior to maturity of

this policy)


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Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states:

1) 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 prospectuses or tables of the insurer.

2) Any person making default in complying with the provisions of this section

shall be punishable with fine which may extend to five hundred rupees.


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MARKET SURVEY

OF

CONSUMER PREFERENCES


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.Q-1 Gender ratio of the respondents

Table Number - 1

PARTICULARS %AGE

MALE 55

FEMALE 45

The graphical representation of the table shows that out of the100 Respondents, 55% were maleand 45% were female.

55%

45%

%age

male female


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Q.2- Occupation of the Respondents

Table Number 2

PARTICULARS %AGE

Service 45

Professional 13

Business 30

Others 12

Total 100

Interpretation

The graphical representation of the table shows that out of the 100 respondents, 45% respondents were

in service , 30% were from business, 13% were from the professional and 12% were from the others

working background

45%

13%

30%

12%

%age

service professional business others


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Q-3 Income level(per month) of the respondents.

Table Number- 3

PARTICULARS %AGE

Less than 15,000 40

15,001-25,000 24

25,001-35,000 21

35001 & above 15

Total 100

The graphical representation of the table shows that out of the 100 respondents, 40% respondents

were from the family whose income is less than 15,000, 24% respondents were from the family

whose income is between the 15,001 25,000, 21% respondents were from the family whose

income is between 25,001- 35,000 and rest were from the family whose income is above 35,001.

40%

24%

21%

15%

% age

less than 15000 15001 - 25000 25001 -35000 35000 & above


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Q-4. Educational Background

Table Number- 4

PARTICULARS %AGE

High school 14

Intermediate 9

Graduate 36

Post graduate 40

Other 1

Total 100

14%

9%

36%

41%

% age

high school intermediate graduate post graduate


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The graphical representation shows that out of the 100 respondents, 40 respondent are post

graduate, 36 respondent are graduate, 14 respondent are high school, 9 are intermediate and resthave others educational background.

Q. Marital status of the respondents?

Table no.

Particulars %age

Married 90

Unmarried 10

90%

10%

%age

married unmarried


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The graphical representation of the table shows that out of the100 Respondents, 90% were

married and 10% were unmarried.

Q.5 How many children you have?

PARTICULARS %AGE

ZERO 10

ONE 15

TWO 45

MORE THAN TWO 30

10%

15%

45%

30%

%age

zero one two more than two


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Q.6 - How long you are taken the children policy?

Table No.- 6

S.NO Time Period of taking

the children policy

Percentage of

Respondents1 Less than 1 year 34

2 1-5 years 37

3 5-10 years 20

4 Above 10 years 9

Total 100.0

33

Out of the 100 respondents 19 are using for less than year, 30 are using for 1-2years, 23 are usingfor 2-4 years, 28 are using for above 4 years.

34%

37%

20%

9%

%age

less than 1 year 1-5 year 5-10year above than 10year


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Q. Which children policy you have taken adopted?

Table no.

Particulars %Age

Life insurance corporation of India 35

HDFC Life Insurance 29Max Life Insurance 7

Reliance Life Insurance 9

SBI Life Insurance 5

ICICI Life Insurance 7

Birla Sun Life 8

Total 100

InterpretationThe graphical representation shows that out of the 100 respondents, 35 respondent has taken LIC

Children policy, 35 respondent has taken HDFC Life Insurance, 7 respondent has taken Max

Life, 9 Reliance Life, 5 respondents has taken SBI LIFE, 7respondents has taken ICICI Life,8Respondents has taken Birla Sun Life, and rest have others Life Insurance.

35%

29%

7%

9%

5%

7%

8%

%age

LIC

HDFC LIFE

MAX LIFE

RELIANCE LIFE

SBI LIFE

ICICI LIFE

BIRLA SUN LIFE


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Q. How long you taken the Children policy?

Table no.

Particulars %Age

Less than one year 34

1-5 year 37

5-10 year 20

More than 10 year 9

InterpretationThe graphical representation shows that out of the 100 respondents, 34 respondents has takenChildren policy less than 1 year, 37 respondent has taken children policy between 1 to 5 years,

20 respondent has taken Children policy between 5-10 years, 9 respondents has taken above the

10 years.

34%

37%

20%

9%

%AGE

less than one year 1-5 years 5-10 year more than 10 year


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Q. What are the reasons for taking Children policy?

Table no.Particulars %Age

For higher education 55

For risk cover 8

For marriage 20

For making business person 10

For other purpose 7

Total 100

InterpretationThe graphical representation shows that out of the 100 respondents, 55 respondents has takenChildren policy for Higher Education ,8 respondent has taken children policy between for Risk

cover, 20 respondent has taken Children policy for Marriage , 10 respondents has taken Children

policy for making Business person, 20 respondent has taken Children policy for other purpose.

55%

8%

20%

10%7%

%age

higher education

risk cover

marriage

making business person

other purpose


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Q. Level of satisfaction from existing Children policy?


Highly Satisfy 20

Satisfy only 50

Less satisfy 20

Not satisfy 10

Total 100

20%

50%

20%

10%

%age

highely satisfy

satisfy only

less satisfy

not satisfy


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Q. in future if you want to purchase children policy for new child which one you prefer


Life insurance corporation of India 21

HDFC Life Insurance 43Max Life Insurance 8

Reliance Life Insurance 7

SBI Life Insurance 5

ICICI Life Insurance 6

Birla Sun Life 10

Total 100

InterpretationThe graphical representation shows that out of the 100 respondents, 21 respondent want to takeLIC Children policy, 43 respondent want to take HDFC Life Insurance, 8 respondent want to

take Max Life, 7 respondents wants to take Reliance Life, 5 respondents want to take SBI LIFE,

6respondents wants to take ICICI Life, 10 Respondents wants to take Birla Sun Life.

21%

43%

8%

7%

5% 6%10%

%age

LIC

HDFC LIFE

MAX LIFE

RELIANCE LIFE

SBI LIFE

ICICI LIFE

BIRLA SUN LIFE


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Q. How do you get to know about Children policy though?


Friends 10

Relatives 20

Natives 7

Financial consultants 34

Advertisement 19

Total 100

InterpretationThe graphical representation shows that out of the 100 respondents, 35 respondent get to knowabout Children policy through Friends, 35 respondent get to know about children policy through

Relatives, 7 respondent get to know about Children policy through Natives. Respondents haveget to know about Children policy through Financial consultants, 7respondents get to know about

Children policy through Advertisement.

11%

22%

8%38%

21%

Sales

Friends

Relatives

natives

Financial consultants

Advertisement


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METHODOLOGY OF THE PROJECT

Research Methodology is a way to systematically solve the research problem.

When we talk to research methodology we not only talk of research methods but

also consider the logic behind the methods we use in the context of our research

results are capable of being evaluated either by the researchers himself or by

others. The purpose of this section is to describe the methodology carried out to

complete the work. The methodology plays a dominant role in any research work.

The effectiveness of any research work depends upon the correctness and

effectiveness of the research methodology.

RESEARCH DESIGN

To accomplish the predefined objectives of the research, Descriptive Research

Design is used to collect the require information from the sources. Descriptive

research design is helpful in collecting in depth information, the demographic

characteristics of the customers as well as to get their feedback.

RESPONDENTS

Since the research objectives demand the feedback from the customers,

the respondents are customers user and non users of Children policy.

.

SAMPLING METHOD

It is not possible to get the information from each and every customer of

Lucknow under the limited time and limited resources. Therefore a

relevant and sizeable sample is drawn from the total number of

customers.

DATA COLLECTION


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INTRODUCTION


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SWOT ANALYSIS OF HDFC LIFE

There are various tools which can be employed to understand the effectiveness of a

companys strategies. SWOT Analysis outlines the Strengths, Weaknesses,Opportunities and Threats facing the operating strategy of a company.

Analyzing the effectiveness of strategies, strength and weaknesses can be defined

as internal to an organization. The businesses do not necessarily have to correct all

its weaknesses however; it should be able to retain its strengths. The key success

factor for operating in the targeted market depends on the external factor. ie.

Opportunity. HDFC Life has numerable opportunities to enlarge its market share,

however, they could be faced with a threat which could be challenge posed by an

unfavorable trend or development that may lead into absence of defensive

marketing action and thus diminish sales and profit.


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STRENGTH:

Multi channel distribution and one of the largest distribution networks in India

Implementing sixsigma process Customer centric products and services Superior investment and risk management frame work 1Million policies sold within 3 and half years company has maximum number of MDRT as well as good number of HNI advisors training process of the company is very strong different plan for different peoples According to the change in surrounding environment like change in customer

requirement.

WEAKNESS:

Company does not penetrate on the rural market at a time There is no plan for the low income group. Fees for the advisor is high than the other company.


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OPPORTUNITY:

Insurance market is very big. Where company can expand its horizon in insuranceindustry.

Through good investment and insurance it is easy to top Indian customers The huge insurance market is left so company has opportunity to expand our products To associate with the more number of HNI

THREATS:

Sold habits die hard: its still difficult task to win the confidence of public towardsprivate company.

The company is facing major threats from LIC which is an only government company. Plans for all income groups are not available which can create adverse effect later on the

market share of the company.

FINDINGS

The findings of the research I found that HDFC Life is the market leader inthe life insurance industry in India.

HDFC Life has strong brand image to influence and create large customerbase.

HDFC Life should launch new children policies that are in optimum balancebetween premium price and time.


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HDFC Life concern on its enterprise culture, in the company the relationshipbetween individuals is mutual trust, fair and openness.

HDFC Life makes courses to train its employees regularly which will assistHDFC Life in achieving its goals.

Conclusion

The Children polices of HDFC Life are very competitive and have an edgeover the plans of other companies as they provide higher return to their

customers.

Children policies are beneficial from the long term perspective such as timevarying from 11years to 25years.


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Most of the market is unaware about the HDFC Life Children policies andhence by making proper promotional strategies company can increase their

sales.

LIMITATIONS

Details provided by respondents may vary from actual information.

Sample size may not sufficient.

Being a student lack of time and money is one of the limitations for datacollection.


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Data collected can be differed from actual official facts and figures of therelated organization.

The information collected from the 100 respondents is assumed asinformation of whole.

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Amit Iccmrt