RECRUITMENT &

SELECTION
OF
FINANCIAL
CONSULTANT
OF

A report submitted to Department of management in the partial fulfillment for the

PGDM
(Post Graduate Diploma in Management)
(Dual specialization in Marketing and Human Resource)

KNS WORLD MANAGEMENT COLLEGE

Approved by AICTE & Ministry of HRD, Govt. of India
Gurgaon, Haryana
Submitted To Submitted By
Mrs: Noopur Batra Abhishek Kumar Keshri

This is to certify that the summer training was done on

“RECRUITMENT AND SELECTION OF FINANCIAL
CONSULTANT OF HDFC STANDARD LIFE INSURANCE ”
submitted to World College of Technology & management, Gurgaon
by Abhishek Kumar Keshri in partial fulfillment of the requirement
for the award of degree of PGDM is a bonafide work carried out by
him under my supervision and guidance. This work has not been
submitted anywhere else for other degree/diploma. The original work
was carried during 15/06/2013to 30/07/2013 in “HDFC STANDARD
LIFE INSURANCE”
 Mr.VISHAL SAWHNEY
Manager
(Channle development)
HDFC STANDARD LIFE
INSURANCE
Date: ---------------------- H.N.-2955 Street N.-12
Ranjeet Nagar New Delhi 110008

ACKNOWLEDGEMENT

At the very outset, I would like to take golden opportunity of thanking those
persons without whose guidance, co-operation, inspiration and suggestion it
would have been impossible for me to accomplish the project successfully.

First of all I would like to thank Mr. Vishal sawhney. Channle development
Manager of HDFC SLI, for his kind guidance and necessary support during the
study.

I also take this opportunity to extend my heartfelt gratitude to others who directly
of indirectly helped me, by providing me necessary information required for
successful completion of the project.
 Abhishek Kumar Keshri
Email: - abhin64@gmail.com

DECLARATION

This project well bred “RECRUITMENT & SELECTION OF

FINANCIAL CONSULTANT OF HDFC STANDARD LIFE INSURANCE ”

presence proposes byme in the preferential discharge of
obligations for the reward of PGDM
Degree from KNS World Management College Gurgaon, affiliated
to AICTE,

I somewhere different for any other degree, credential have not

submitted this effort.
Whole snitches of tidings and assist are genuine and have been
accredited in the report.

Abhishek Kumar Keshri

PGDM 01/KNSWMC/01

Table Of Contents

 Executive Summary

 Objective of the study

Literature review
  Introduction
 The promoters
 The Company and its product line
 Features of the product
 Marketing strategy
 Share market position
 Competitors
 Future prospects
 National international image
 Major problems
 Conclusion

EXECUTIVE SUMMARY:-

Project Title: RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT

Name of the organization: HDFC SLI

Place of the work: New friend’s colony, New Delhi
Organizational Guide: Mr.Vishal Sawhney
Duration: 15th may to 15th July

Major objectives:
• To study of the market .
• To study of the perfect market for HDFC SLI.

• To approach to the interested people towards HDFC SLI.

Research Methodology:
Market research/survey
Area of research
I have done the research in Nehru placce, southwest Delhi, Faridabad, central Delhi
CP and many other places in Delhi.
Major Findings:
• There are more then one people live in Delhi
• Only more then 25% people have the knowledge of investment in HDFC SLI.
• There are many big and first insurance company in Delhi and it’s the heart of
India.

HDFC STANDARD LIFE INSURANCE

1-INTRODUCTION:-
HDFC Standard Life Insurance Company Ltd. offers a range of individual and
group insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance
institution and one of the subsidiaries of Standard Life plc, leading providers of
financial services in the United Kingdom. The Standard Life group has been
looking after the financial needs of customers for over 180 years. It is a leading
pension’s provider in the UK. Both the promoters are well known in their
respective fields of activities. For more details you may log on to
http://www.hdfcinsurance.com
Mr. Deepak S Parekh is the Chairman of the Company. He is also
the Executive Chairman of Housing Development Finance
Corporation Limited (HDFC Limited). He joined HDFC Limited in a
senior management position in 1978. He was inducted as a whole-
time director of HDFC Limited in 1985 and was appointed as its
Executive Chairman in 1993. He is the Chief Executive Officer of
HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants

. Mr. Keki M Mistry joined the Board of Directors of the Company in

December, 2000. He is currently the Managing Director of HDFC
Limited. He joined HDFC Limited in 1981 and became an Executive
Director in 1993. He was appointed as its Managing Director in
November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered
Accountants of India and a member of the Michigan Association of
Certified Public Accountan

Mr. Alexander M Crombie joined the Board of Directors of the

Company in April, 2002. He has been with the Standard Life Group
for 34 years holding various senior management positions. He was
appointed as the Group Chief Executive of the Standard Life Group
in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in
Scotland

Ms. Marcia D Campbell is currently the Group Operations Director in

the Standard Life group and is responsible for Group Operations,
Asia Pacific Development, Strategy & Planning, Corporate
Responsibility and Shared Services Centre. Ms. Campbell joined the
Board of Directors in November 2005

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life

Investments Limited and is responsible for overseeing Investment
Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch
was working with M/s. James Capel & Co. holding the positions of
UK Economist, Chief Economist, Executive Director, Director of
Controls
and Strategy HSBS Securities and Managing Director International
Equities. He was also responsible for Economic and Investment
Strategy research produced on a worldwide basis. Mr. Skeoch joined
the Board of Directors in November 2005

Mr. Gautam R Divan is a practising Chartered Accountant and is a

Fellow of the Institute of Chartered Accountants of India. Mr. Divan
was the Former Chairman and Managing Committee Member of
Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited companies
and also has substantial experience in structuring overseas
investments to and from India

Mr. Ranjan Pant is a global Management Consultant advising

CEO/Boards on Strategy and Change Management. Mr. Pant, until
2002 was a Partner & Vice-President at Bain & Company, Inc.,
Boston, where he led the worldwide Utility Practice. He was also
Director, Corporate Business Development at General Electric
headquarters in Fairfield, USA. Mr. Pant has an MBA from The
Wharton School and BE (Honours) from Birla Institute of Technology
and Sciences
Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the
core team to set-up the Securities & Exchange Board of India (SEBI)
and is also associated with various committees of SEBI and the
Reserve Bank of India (RBI).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the

Company since November, 2000. Prior to this, he was the Managing
Director of HDFC Limited since 1993. Mr. Satwalekar obtained a
Bachelors Degree in Technology from the Indian Institute of
Technology, Bombay and a Masters Degree in Business
Administration from The American University, Washington DC

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a

graduate in law and holds a Master's degree in economics from Delhi
University. She has been employed with HDFC Limited since 1978
and was appointed as the Executive Director in 2000. She is
responsible for overseeing all aspects of lending operations of HDFC
Limited

2 THE BACKGROUND

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

The primary objective of HDFC is to enhance residential

housing stock in the country through the provision of

housing finance in a systematic and professional manner,

and to promote home ownership. Another objective is to

increase the flow of resources to the housing sector by

integrating the housing finance sector with the overall

domestic financial markets..

Organisational Goals

HDFC's 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, and e)
to grow through diversification by leveraging off the existing
client base.

HDFC operates through 75 location throughout the country

with its Corporate Headquarters in Mumbai,India.HDFC also
has an international office in Dubai, U.A.E.,with service
associates in Kuwait, Oman and Qatar.
STANDARD LIFE GROUP
The Standard Life Assurance Company ("Standard Life") was
established in 1825 and the first Standard Life Assurance
Company Act was passed by Parliament in 1832. Standard
Life was reincorporated as a mutual assurance company in
1925.The Standard Life group originally operated only
through branches or agencies of the mutual company in the
United Kingdom and certain other countries. Its Canadian
branch was founded in 1833 and its Irish operations in
1838. This largely remained the structure of the group until
1996, when it opened a branch in Frankfurt, Germany with
the aim of
exporting its UK life assurance and pensions operating
model to capitalise on the opportunities presented by EC
Directive 92/96/EEC (the “Third Life Directive”) and offer a
product range in that market with features which local
providers were unable to offer. In the 1990s, the group also
sought to diversify its operations into areas which
complemented its core life assurance and pensions business,
with the intention of positioning itself as a broad range
financial services provider.

JOINT VENTURE

HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Co. Ltd was incorporated on
14th august 2000. It is a joint venture between
HousingDevelopment Finance Corporation Limited (HDFC
Ltd.) India And UK based Standard Life Company. Both the
joint venture partners being one of the leaders in their
respective areas came together in this 81.4:18.6 joint
venture to form HDFC Standard Life Insurance Company
Limited. Mr. Deepak Satwalekar is the MD and CEO of the
venture.HDFC Standard Life brings to you a whole range of
insurance Solutions be it group or individual or NAV services
for Corporations, they can be easily customized as per
specific needs.
HDFC Standard Life Insurance India boasts of covering
around 8.7 lakh lives by March'2007. The gross incomes
standing at a whopping Rs. 2, 856 crores, HDFC Standard
Life Insurance Corporation is sure to become one of the
leaders and the first preference for any life insurance
customer.

VISION STATEMENT
“The most successful and admired life insurance company,
which mean that we are the most trusted company, the
easiest to deal with, offer the best value for money, and set
the standards in the industry.In short, “The most obvious
choice for all”.

Admired mean the company should be known for its

standards. Not only customers, but also the competing life
insurance companies should benchmark against HDFC SLI a
nutshell, even the IRDA should give an example of
HDFC SL as a guiding principle.
 2- THE PROMOTERS

Joint ventures and associated undertakings

Country of registration or Share class Name incorporation and

proportion held Year end Nature of business
Heng An Standard Life China Ordinary shares 50.0% 31 Dec Life
assuranceHDFC Standard Life Insurance Company Limited** IndiaOrdinary
shares 18.6% 31 Mar Life assuranceHDFC Asset Management Company
Limited* **
India Ordinary shares 49.9% 31 Mar Investment management*
Owned by a subsidiary undertaking of the Company.**
The Company also has a 14.5% interest in Housing Development Finance
Corporation Limited (“HDFC Limited”). HDFC Limited owns 81.4% and
50.1%of HDFC Standard Life Insurance Company Limited and HDFC Asset
Management Company respectively. This gives theGroup an effective interest in
thesecompanies of 30% and 57% respectively. The Company does not exercise
dominant influence over either of these joint ventures.The current operations of
these companies are not significant in relation to the accounts of the Group.

Strength:-
A wide geographic reach, growing clients, and a diversified
portfolio of products and services.

.
Premium Payment

This section gives you all the details that you may require to pay your premium and
make it a hassle free experience. Along with various premium payment options
currently available to you, we have also drawn up a Checklist of details that you will
need in case you are paying through cheque or demand draft. 7 Easy Ways
to pay your premium:
At any of Our branches

You can deposit Cheque / Demand Draft drawn in favour of “HDFC SLIC”
at any of Our branch during the following business hours

Monday to Friday : 9.30 AM to 4.30 PM (For Cash)

Monday to Friday : 9.30 AM to 5.00 PM (For Cheque)
Saturday : 9.30 AM to 12.00 Noon (For Cash & Cheques)
Closed on Sundays

Postage / Courier
You can send cheques and demand drafts drawn in favour of HDFC SLIC to any of
our branch offices

Online Payment
You can make online payment of premium anytime and from any location, at a
click of the mouse by using the Online payment facility. It is currently offered to all
the policyholders who are registered users of billjunction.com or have net banking
facility with any of the following banks - HDFC Bank, ICICI Bank, Axis Bank,
State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda

Drop Boxes
You can drop cheques and demand drafts drawn in favour of HDFC SLIC into any
of our drop boxes installed at various locations in various cities

Electronic Clearing Service (ECS) or Auto Debit facility of RBI

You can also pay renewal premiums through Electronic Clearing Service (ECS) of
Reserve Bank of India (RBI) presently available in following 61 cities

Agra, Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore, Bardhaman,

Baroda, Bhilwara, Bhopal, Bhubaneshwar, Calicut, Chandigarh, Chennai, Cochin,
Coimbatore, Dehradun, Delhi, Durgapur, Erode, Gorakhpur, Guwahati, Gwalior,
Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamshedpur,
Jodhpur, Kanpur, Kolhapur, Kolkata, Lucknow, Ludhiana, Mangalore, Mumbai,
Mysore, Nagpur, Nellore, Panjim, Patna, Pune, Raipur, Rajkot, Ranchi, Salem,
Shimla, Sholapur, Siliguri, Surat, Thirupur, Tirupati, Trichur, Trivandrum,
Udaipur, Varanasi, Vijaywada, Vizag

Standing Instructions (SI) Mandate

You can also pay your renewal premium through a Standing Instructions Mandate
if you have an account with HDFC Bank anywhere in India

Credit Card Facility

You can pay your renewal premium through your HDFC Bank credit card.

Checklist while paying your renewal premium through

cheque/ demand draft

• your policy number and name correctly on the reverse side of the cheque/
demand draft

• We do not accept Post Dated Cheques (PDC’s) beyond the next banking day
from date of receipt

• In case of any overwriting on your cheque, please countersign the same

• As per RBI guidelines, Non MICR Cheques may not be acceptable at few
locations. In this scenario, please contact your nearest branch for more
details

• Unit Linked Polices you can pay using Local Cheques/ Demand Drafts

• other policies you can pay using either Local or Outstation cheques or
Demand Drafts

Weaknesses:-
Lapsation & Revival

Your renewal premium should reach us by the due date specified in the premium
reminders. It is always advisable to pay on time so that your valuable policy
benefits can continue.
However we do understand that there may be times when you may not be able to
pay the renewal premium by the due date. Therefore we allow for some additional
number of days from the due date, which is specified in your policy document, to
help you make your premium payment.
In case we still don’t receive your premium payments by the end of the above
mentioned period, we would do either one of the following:

• Lapse” the policy – if you haven’t paid premiums for the first 3 policy
years

• Either of these may mean loss/reduction of valuable benefits of your policy.

refer to your policy document for details.
• We do, however, allow you to restore the original benefits for a Lapsed
or a Paid up policy under certain conditions.

On receipt we will send you the details of amount, that you will have to pay towards
revival. This amount may include all or some of the outstanding premiums, revival
interest and revival processing charges

If your policy is lapsed or paid-up for more than six months or lapsed due to any
reasons like illness, accidents etc. you may need to submit a Personal Health
Statement

we reserve our right to impose some new terms and conditions at the time of revival
decided on a case-to-case basi
 3-THE COMPANY AND ITS PRODUCT LINE:-

COMPETITOR BY PRODUCT

Bancassurance is the selling of insurance

products by a bank. For HDFC Standard Life Insurance, bancassurance and

other alternative channels contribute around 42 per cent of the business.
The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC,
HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of Baroda,
Saraswat Bank and Bajaj Capital.
HDFC BANK

HDFC Bank is the largest insurance distributor of HDFC Standard

Life Insurance.

INDIAN BANK

Indian Bank enters into a strategic tie-up with HDFC Standard Life
Insurance Company Ltd .
INDIAN BANK with over 90 years of standing in the financial market with
the reputation for excellent customer service, has entered into a strategic tie-
up with HDFC Standard Life Insurance Company Ltd., the first in the
private sector to receive the Certificate of Registration for foray into Life
Insurance business for distribution of latter’s insurance products. A
Memorandum of understanding has been signed by the Bank with the
Insurance Company on 8th February 2001 to this effect. The Bank has to its
strength 1377 branches spread across the country with ready built
infrastructure and the expertise in marketing financial products. Initially the
insurance products will be marketed through select branches in the South
where the Bank has strong presence. The insurance products from HDFC
Standard Life, will be competitive and customer friendly. The tie-up would
benefit the Bank's customers, as they will have wider choice of life
insurance policies at competitive premium
FINANCIAL POSITION OF HDFC SLIC IN FY 2007-08

HDFC Standard Life, one of the leading private life insurance

companies in India declared its annual results for the

financial year ending March 31, 2008. The company

generated New Business Premium Income of Rs. 2,685

crores in FY2007-08 registering a year-on-year growth of

63%. The growth was primarily driven by the success of the

company's initiative on structured sales processes based on

customer needs and their assessments.

Highlights of Financial Year 2007-08

New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium
Income is up by 70% at Rs 4,859 crores as against Rs. 2,856 crores in FY2006-07

• Alternate Channels including bancassurance has recorded an impressive

growth of over 63% to contribute 41% to the Effective Premium Income
(EPI).
• Group business funds under management have increased to Rs. 959 crores,
registering a growth of83% over FY2006-07
• The average premium has increased to Rs. 33,000.
• Company products and services are now available in 726 cities and towns
across the country. Strength of Financial Consultants has increased to
1,45,000
 Knowledge Center

Our Knowledge Centre is your personal resource for information that can help you
understand the basics of insurance and help you make an informed decision about
buying a policy. This section includes details on insurance terms and concepts, helps you
analyse plans for your various needs and lends meaning to some of the insurance jargon
that you may encounter

Life Stages

Your insurance need will change as your life does, from starting to work to
enjoying your golden years and all the stages in between. Each one of these
stages may pose a different insurance need/cover for you. In this section, we
have drawn up the basic life stages and help you analyse various insurance
needs accordingly.
STAGE 1
 Young and Single

An important stage where one lays down the foundation of a successful life ahead. Take
advantage of the time and power of compounding to ensure that you build up your
dreams. Start saving early.
Your needs
• Save for a home and wedding

• Tax Planning
• Save for Golden years

STAGE 2
 Just Married

Marriage brings about a significant change. New dreams and new opportunities also
bring in a additional responsibilities. While both of you look forward to a happy and
secure life , it is e q ually important to ensure that eventualities don’t come in the way
of shaping your dreams.

Your needs
• Planning for home / securing your home loan liability
• Save for vacation
• Save for
your first
child
STAGE 3

Proud Parents

Once you have children, your need for life insurance is even more. You need to protect
your family from an untoward incident. Ensure your protection umbrella takes into
account the future cost of securing your child’s dream. You will want life to go on for
your loved ones, and having enough life insurance is a way to help ensure that.

Your needs

• Provide for children’s education

• Safeguarding family against loan liabilities
• Savings for post-retirement
STAGE 4

Planning for
Retirement

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

Your needs

• Provide for regular income post retirement

• Immediate Tax benefits
• Lead a secure, independent and comfortable life style in your retirement years

4 FEATURES OF THE PRODUCT & BENIFIT

HDFC Standard Life: A good cover
The opening up of life insurance has given finally given a level-playing field to the
private sector.

A. N. Shanbhag , February 19, 2002

Competition in the market always proves favourable to the consumer. So it is in the

case of life insurance. After what seems like almost an eon, finally the doors of the
life insurance sector were thrown open to the private sector players last year. The
Finance Act, 2001 has thankfully cleared quite a lot of cobwebs giving a level-
playing field to both the sectors. Notable amongst the new entrants is HDFC
Standard Life Insurance, a joint venture between the global experience of Standard
Life of UK and our own HDFC.

Standard Life, founded in 1825 is amongst the forerunners of the insurance

industry worldwide, having a presence not only in the UK but also Ireland, Spain,
Germany, Austria and Canada. Voted as the 'company of the decade', Standard
Life manages assets over US$ 119 billion.

HDFC does not need any formal introduction, so strong is its brand already. After
having a significant presence in the housing finance, banking and MF industries,
this JV marks its foray into the life insurance sector.

Private sector players would only be too aware that this is the proverbial first step
of the thousand-mile journey that lies up ahead. Contending for a piece of market
share with a Goliath that LIC is, will not be an easy task unless they offer
qualitative and innovative products at an affordable price. That they would be
pulling out all the stops to attract customers is not in doubt. Hence, this is as good a
time as any to pay attention and see what is on display.
The strategy
Too many options simply confuse the users whereas too few will surely turn them
away. HDFC Standard Life has thankfully introduced products with basic
premiums serving specific needs of all. Most products have some additional optional
value adding benefits at marginal additional premiums. The proponent is free to
choose any of the basic products along with none or some of the options as per his
needs.

Before examining the base products, let us see the options.

Accidental Death Benefit (ADB)

ADB provides an additional amount equal to the basic sum assured (SA) in case of
the death of the policyholder due to an accident, within 90 days of the accident.

Critical Illness (CI) Benefit

CI provides an additional amount equal to the SA on diagnosis of the any one of the
6 specified critical illnesses --- cancer, coronary artery bypass graft surgery, heart
attack, kidney/renal failure, major organ transplant (as recipient) and stroke. The
sum assured is payable if the policy holder survives for 30 days after the date of the
claim.

Double Sum Assured (DSA) Benefit

DSA provides an additional amount equivalent to the basic SA in case of the death
of the policyholder.

Waiver of Premium (WOP) Benefit

WOP basically waives the premium in case the policyholder becomes totally
disabled. However, the waiver is applicable only during the period of the disability.
Accelerated Sum Assured (ASA)
Upon diagnosis of any of the specified six critical illnesses, ASA provides an amount
equal to the amount payable on death.

These options must be selected at the outset while choosing the product.

Now the base.

Single Premium Bond This is basically a hybrid of insurance and investment. The
life cover is quite low and therefore it functions almost like a deep discount bond.
For a single upfront premium (read investment), the policy pays a lump sum (read
maturity value) and its tenure of 10, 15, 20 years or more at 5-year intervals. A
compound revisionary bonus is declared every year, which would be added to the
policy upon its anniversary. The future bonuses though are not guaranteed and are
dependent upon the company's experience and the conditions prevalent in the
economy.

The minimum age for buying the policy is 18 years, the maximum being 70. The
minimum SA is fixed at Rs. 25,000, the maximum being Rs. 5,00,000.

Normally, a policy acquires a paid up value (and the related surrender value) after
premiums for 3 years are paid but in this case the holding period is specified to be
just 6 months --- Excellent liquidity indeed!

Term Assuranc plan

The SA is payable in the case of the death of the policyholder during the term but
on survival, there are no maturity benefits. Consequently, the premium rates are
absolutely the lowest. This is insurance in its purest form --- highest cover at lowest
cost. There was a crying need for easy availability of this product. HDFC Standard
Life deserves kudos to have catered to this need.

Amongst the optional benefits listed above, ADB, CI and ASA are available for this
plan.

Money Back Plan

This plan pays periodic cash lump sums during the tenure of the policy. The lump
sums, essentially a proportion of the basic SA are paid at 5-year intervals. On
survival, the basic SA plus bonus less the cash lump sums paid earlier are provided.
However, in the case of the demise of the policyholder, the basic SA plus any bonus
is provided to the family. This would be over and above any earlier payouts.

The schedule of cash lump sums as a percentage of the basic SA is detailed in the
table. Moreover, CI, DSA, ADB and WOP can be opted for if so desired.

Endowment Assurance Plan

As is normal with all endowments, on the death of the life assured during the term,
the beneficiary will get the SA. On survival, the policyholder gets the SA.

From amongst the optional benefits, CI, DSA, ADB and the WOP benefit are
available along with this plan. The indicative premiums for an SA of Rs. 1 lakh for
a male life assured for a period of 20 years are detailed in the table.

Loan Cover Term Assurance

This is a unique product meant as a safety net in case one has taken a loan to buy a
house. It is designed to help the family repay the outstanding loan in the case of the
death of the breadwinner.

For starters, it provides a lump sum on the death of the life assured during the term
of the plan. The difference in this case is that the lump sum is a decreasing
percentage of the initial SA. As the loan decreases, as per its payment schedule, the
cover under the policy decreases as per its own schedule.
There is a choice of paying the premium in yearly, half-yearly or quarterly modes
or even a single one time premium is payable. Amongst the optional benefits, ASA is
available along with this plan.

Group Term Insurance (GTI)

HDFC Standard Life also offers GTI, meant essentially for employees of an
organisation. GTI is extremely convenient for an employer as he can take insurance
for all or certain categories of employees. All members of a group, subject to some
basic conditions are eligible.

GTI is used basically to provide life insurance as part of the employee benefits. It
can also cover any housing or vehicle loan given by the employer to the employee.To
sum A wise man had said that the time to mend the roof is when the sun is shining.
This is applicable to life insurance too. Today as the breadwinner you are able to
maintain a decent standard of living for yourself and your family. If you want
enough bread for the family even after the death of the breadwinner, you should
look at the Single Premium Bond. In other cases, life insurance is an absolute
necessity. Have a look at other products.

Money Back Plan

 Money Back Plan
Total Policy Number of years from policy date
Term 5 10 15 20 25
10
40%
15 30% 30%
20 25% 25% 25%
25
20% 20% 20% 20%
30 15% 15% 15% 15% 15%
Endowment Assurance Plan

Age Basic Policy Additional Premium

Years Premium (Rs.) For Optional benefits (Rs.)
CI DSA ADB WOP
20 4771 304 322 136 236
30 4835 442 388 144 300
40 5098 925 641 156 475
50
5813 1890 1357 -

5 MARKETING STRATEGIE
MARKET CONDITION OF PRODUCT IN DELHI & NCR REGION

When it comes to study the market condition of HDFC

Standard Life Insurance, it is quite easy to see that there is
good demand for products, but the sale of Ulip products are
very good. The market share is about 65% with compare to their competitor.

REASON FOR THEIR GOOD CONDITION:

1. Consultants hold on the market

When it comes for the case of market, there is a clear and complete hold of HDFC
SLIC Consultants.
2.Quality
HDFC SLIC provides good quality of products, which is praised by most of the
consumers. The reason for 65% of the market cover by HDFC Standard Life
Insurance is because of quality of products.
3.Demand
Demand for the product of HDFC Standard life is very high in the societies.
4.Supply
Supply of product is also good, but in capturing whole market it take some
time.

5 COMPETITORS

COMPETITORS BY COMPANY
MARKET SHARE POSITION
Life Insurance Corporation of India’s (LIC’s) market share has slipped by
almost 4% to 83.3% from 87% market share last fiscal. However, in terms of
number of policies sold, LIC continues to dominate the Indian life
insurance market with about 91% market share.

In terms of group insurance schemes, LIC’s market share was at 72.2%

after it covered 4.9 lakh lives. Private players had 27.9% of the market
covering 1.9 lakh lives.
The 12 private players in the country together mopped up Rs 385 crore in
premium in the first two months selling over 2 lakh policies. ICICI
Prudential Life leads with market share of 5.9% It is followed by Birla
Sunlife with a market share of 2.6%, Allianz Bajaj (1.6%), Tata AIG (1.5%),
HDFC Standard Life (1.4%) and SBI Life (1.2%).

Each of the other private players like Aviva, Max New York Life, OM Kotak
Life, ING Vysya, AMP Sanmar and MetLife had less than 1% market share
but posted high growth in business. In terms of premium collection, ICICI
Prudential mopped up Rs 136 crore followed by Birla Sunlife (Rs 60 crore),
Allianz Bajaj (Rs 37 crore), Tata AIG (Rs 35 crore), HDFC Standard Life (Rs
33 crore), SBI Life (Rs 27 crore).
Life Insurance Corporation Of India(LIC)

About 154 Indian insurance companies, 16 non-Indian companies and 75 provident

were operating in India at the time of nationalization of Life Insurance Industry.
Nationalization was accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the ownership too
by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with
a view to reach all insurable persons in the country, providing them adequate
financial cover at a reasonable cost. 245 Indian and foreign insurers and provident
societies are taken over by the central government and nationalized. LIC continues
to be the dominant life insurer even in the liberalized scenario of Indian insurance
and is moving fast on a new growth trajectory surpassing its own past records. LIC
has issued over one crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year. For
more details you may log on to http://www.licindia.com/history.htm

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. offers a range of individual and
group insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance
institution and one of the subsidiaries of Standard Life plc, leading providers of
financial services in the United Kingdom. The Standard Life group has been
looking after the financial needs of customers for over 180 years. It is a leading
pension’s provider in the UK. Both the promoters are well known in their
respective fields of activities. For more details you may log on to
http://www.hdfcinsurance.com

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Ltd. is a joint venture between New York
Life, a Fortune 100 company and Max India Limited, one of India's leading multi-
business corporations. The Company's paid up capital is Rs. 587 crore, which is
more than the norm laid down by IRDA. . For more details you may log on to
http://www.maxnewyorklife.com

ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-
one of India's foremost financial services companies-and Prudential plc- a leading
international financial services group headquartered in the United Kingdom. Total
capital infusion stands at Rs. 15.85 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%. ICICI Prudential commenced operations in
December 2000. For more details you may log on to http://www.iciciprulife.com.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of
India's leading financial institutions, offering complete financial solutions that
encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates. Old Mutual plc is an international
financial services group, whose activities are focused on asset gathering and asset
management. For more details you may log on to
http://www.kotaklifeinsurance.com

Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance is a joint venture between the Aditya Birla Group and Sun
Life Financial, Birla Sun Life foraying into the life insurance and retirement
planning business. The Aditya Birla Group has a turnover close to Rs. 38000 crores
(as on March 31, 2006) and is one of the largest business houses in India. Additional
information is available at www.adityabirla.com.Sun Life Financial Inc. is a leading
international financial services organization providing a diverse range of wealth
accumulation and protection products and services to individuals and corporate
customers. Tracing its roots back to 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United States, the
United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and
Bermuda. As of March 31, 2006, the Sun Life Financial group of companies had
total assets under management of USD 343 billion. For more details you may log on
to http://www.birlasunlife.com/BirlaSunLife/Insurance/

Tata AIG Life Insurance Company Ltd.

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance
Company Limited (collectively 'Tata AIG') are joint ventures of the Tata Group
and American International Group, Inc. (AIG). Tata AIG combines the strength of
the Tata Group with AIG's international expertise and financial strength. The Tata
Group holds 74 per cent stake in the insurance venture with AIG holding the
balance 26 percent. Tata AIG Life provides insurance solutions to individuals and
corporates. Tata AIG Life Insurance Company was licensed to operate in India on
February 12, 2001 and started operations on April 1, 2001. For more details you
may log on to http://www.tata-aig.com.

SBI Life Insurance Company Limited .

SBI Life Insurance is a joint venture between the State Bank of India and Cardif
SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500
crore and a paid up capital of Rs 500 crores. SBI owns 74% of the total capital and
Cardif the remaining 26%. State Bank of India enjoys the largest banking franchise
in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of
over 14,500 branches across the country, the largest in the world. Cardif is a wholly
owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP
Paribas is one of the oldest foreign banks with a presence in India dating back to
1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering protection to
over 35 million policyholders and net income in excess of Euro 1 billion mark.
Cardif has also been a pioneer in the art of selling insurance products through
commercial banks in France and 34 more countries. For more details you may log
on http://www.sbilife.co.in

ING Vysya Life Insurance Company Private Limited

ING Vysya Life Insurance Company Private Limited (the Company) entered the
private life insurance industry in India in September 2001.It has an advisor sales
force of over 21,000 people, working from 140 branches located in 74 major cities
across the country and over 3,000 employees. It also distributes products in close
cooperation with the ING Vysya Bank network. ING is a global financial institution
of Dutch origin. It has 150 years of experience, and provides a wide array of
banking, insurance and asset management services in over 50 countries The
Company has a is headquartered at Bangalore. For more details you may log on
http://www.ingvysyalife.com

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates- Allianz AG, one of the world's largest insurance companies, and
Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.
Characterized by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial strength, Bajaj Allianz
Life Insurance Co. Ltd. was incorporated on 12th March 2001. For more details
you may log on to http://www.bajajallianzlife.co.in

Metlife India Insurance Company Pvt. Ltd.

With over 137 years of experience, the MetLife companies are a leader in group
benefits that serve 88 of the top one hundred FORTUNE 500®* companies, and
provide benefits to 37 million employees and family members through its plans
sponsors in the U.S. The MetLife companies are also ranked #1 in group life and #1
in commercial dental in the U.S. The MetLife companies are the number one life
insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. In
India, MetLife was incorporated in 2001, and aims to differentiate itself through
customized need based selling, simple and innovative products, and technology-
backed service experience, to tread its path to build financial freedom for everyone.
For more details you may log on to http://www.metlife.co.in/MetIndia
Reliance Life Insurance Company Limited

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance
Capital has interests in asset management and mutual funds, stock broking, life and
general insurance, proprietary investments, private equity and other activities in
financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India under section 45-IA of
the Reserve Bank of India Act, 1934. For more details you may log on to
http://www.reliancelife.co.in

Aviva Life Insurance Co. India Pvt. Ltd.

Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world. In India, Aviva has a long history dating
back to 1834. At the time of nationalization it was the largest foreign insurer in
India in terms of the compensation paid by the Government of India. Aviva was
also the first foreign insurance company in India to set up its representative office
in 1995.In India, Aviva has a joint venture with Dabur, one of India's oldest, and
largest Group of companies. A professionally managed company, Dabur is the
country's leading producer of traditional healthcare products. In accordance with
the government regulations Aviva holds a 26 per cent stake in the joint venture and
the Dabur group holds the balance 74 per cent share. For more details you may log
on to http://www.avivaindia.com

Sahara India Insurance Company Ltd.

The Sahara Pariwar’s life insurance company – Sahara India Life Insurance
Company Ltd.- has been granted license by the insurance regulator – the IRDA on
6th February 2004. With this approval Sahara India Life Insurance Company Ltd.
becomes the first wholly and purely Indian company, without any foreign
collaboration to enter the Indian Life insurance market. The launch is with an
initial paid up capital of 157 crores. The Chairman of the company is Shri Subrata
Roy Sahara who is also the Chairman of Sahara Pariwar. For more details you may
log on to http://www.saharalife.com

Recruitment of Financial Consultants (FC) in HDFC

Standard Life
This is a good business opportunity offered by HDFC Standard
Life to become a business partner and earn a good amount of
money.

Business description
Be our Certified Financial Consultant Join HDFC Standard Life Insurance
as a Financial Consultant and help analyze your customer’s financial
needs, provide customized financial solutions to each one and conduct
reviews on a regular basis to keep your customers on track.

Along with being a great career move you get associated with HDFC
Standard Life Insurance, India’s Most Respected Private Life Insurance
Company. We at HDFC Standard Life also offer you unmatched support
with various training programmes to help you excel in your endeavour.

A great career move in every way Zero investment, there is no start-up

capital. You can work full-time or part-time, depending on your
convenience Sunrise industry Support every step of the way At HDFC
Standard Life, training is an inherent element of our support system - at no
extra cost - for our new Financial Consultants

EXCELLENT OPPORTUNITY
 Join HDFC Standard Life Insurance as a Financial Consultant
and earn a rewarding career

 Flexible work timings – You can work whenever you like. You can
work full-time or part-time, depending on your convenience. However,
the time you invest will determine your success

 Any one can join - Young graduates, Housewives, Retired

Personnel, Self-employed or Working Professionals.

 Zero Investment - There is no start-up capital required. Be your

own boss with flexible working environment, unlimited earning
potential and opportunities to be part of a world class sales team.
 • Attractive Remuneration - Company offers excellent
commissions, award and rewards for the performers.
You have unlimited earning potential. Commission structure is pretty
handsome and is 15-40% and renewal commission of 5% second
year onwards till the policy is in force.

• Certificate by IRDA- You will get world class training free of cost
and certification by Insurance Regulatory Development Authority.

• TRAINING

Perfects your knowledge about the insurance industry as well

as our products

IRDA Training

Prepares you for your career as a Financial Consultant and

enables you to pass the IRDA examination easily

Disha Training

Hones your selling skills, enables you to understand customer

needs and provide need-based insurance solutions

Advanced Training

Upgrades your capability and knowledge through sophisticated

training programs customised for the changing world of
financial products and markets

Desired Profile:
Age: 18 Yrs to 65 Yrs
Education: Intermediate or more
Experience: Not Mandatory
Type of Job: Full Time or Part Time
Documents Required:
8 photograph
Age proof (passport, Birthcertificate, College Leaving Certificate, Driving
License)
Address proof
Education proof
Copy of PAN Card
Duely Signed Cancelled Cheque of self
A candidate needs to bring a DD of Rs. 925/- in case of offline training and
Rs.825 in case of online training towards HDFC SLIC LTD payable at
Mumbai.
Recruitment process of FCs

Fill up of Agency form

IRDA Training (100 hrs)

IRDA Exam

Fail Pass

Exit Product Training

Traditional Pr. ULIP Product

Internal Assessment
 Fail Pass

Exit Certification
Job Description for Financial consultants

Pre sales role

• Identifying prospective clients.
• Meeting prospective clients.
• Understanding the need of the client.
• Presenting solutions to client.
• Closing sales.

Post sales role

• Taking 1-2 references from the client
• Providing timely updates to the client for maintaining Lifelong
relationship.

Benefits to FCs
Financial Benefits:
Commission on issuance of every policy.
Commission directly credited to bank account of FCs within 15 days. These
commission varies from 7.5-40% according to plan.

BASIC COMMISSION
First year Commission payable on regular premium conventional policies
issued on or after 21st march 2007
Name of the plan 1st year
commission
Endowment Assurance plan 40%
Money Back plan 40%
Children’s plan 40%
Term Assurance plan 25%
Lone cover Term Assurance plan 25%
Personal Pension Plan 7.5%

RENEWAL COMMISSION:
Renewal commission would be paid from the 2nd year onwards on regular
premium policies. Renewal commission is not payable on single
premium plans.

Name of the plan Renewal commission 2nd

year onwards
Endowment Assurance plan 5%
Money Back Plan 5%
Children’s plan 5%
Lone cover Term Assurance Plan 5%
Term Assurance plan 5%
Personal Pension Plan 2%

BONUS COMMISSION
Bonus commission would be payable on the first year premium received
and adjusted on the regular premium policies under the following plans,
1.Endowment Assurance Plan
2.Money Back Plan
3.Children’s Plan
4.Term Assurance Plan
 5.Lone Cover Term Assurance Plan

Bonus commission is not payable on the single premium plans and on the
policies issued under the Personal Pension Plan and all Unit Linked
Plans.

Bonus commission rate would depend on financial consultant crossing

the minimum RNEP(Received Net Effective Premium) within one year.

Period RNEP Bonus commission % of the 1st year

Premium received
In one year 1,00,000 5%
1,50,000 10%
2,25,000 15%

REWARDS & RECOGNITION

Within 30 days of Licensing Consultant can become
STAR – Converted premium 2 Lacs
Silver Medal-Worth Rs 5200(approx)
RISING STAR – Converted premium of 5 Lacs
Gold Medal-Worth Rs 13,000(approx)
MILLIONAIRE STAR – Converted premium of 10 Lacs
Gold Medal-Worth Rs 25,000(approx)
GLOBAL STAR – Converted premium of 24 Lacs
Gold Medal-Worth Rs 60,000(approx)

Extra Payouts for STAR Performers

Star Performers Club
Status Bronze Silver Glod Centurion
Benefits 1%max 2.5%,max 5%,no upper Graded-
Rs.5999 Rs.37499 limit 4.5%to8.5%
Additional status 0.50% 1.00% 1.50%
retention Bonus

MONTHLY & QUARTERLY CONTESTS

There are various Sales linked monthly & quarterly contests occur in which
FCs has opportunity to gain something. Like
• Gift Vouchers
• Home Appliances
• Two-Wheelers
• Gold/Diamonds Jewelry
• Foreign Trips
• Mobile Phones
• Laptops
• Cars etc.

OTHER BENEFITS
• On field support- Joint fieldwork with respective SDM/BDM.
• Training support – Various training modules to enhance your sales
skills, interpersonal skills etc.

• Marketing support – Consumer Contact Programs.

• Availability of office infrastructure for telecalling, quotations,
benefits illustration etc.

• Consultant corner to access illustration, sales done, and contest

updates etc.
 • Personal email id.

Unit Linked Insurance Polices (ULIPS)

Unit linked guidelines were notified by IRDA on 21st December 2005. The main
intent of the guidelines was to ensure that they lead to greater transparency and
understanding of these products among the insured, especially since the investment
risk is borne by the policyholder. It is the endeavor of IRDA to enable the buyer to
make the most informed decision possible when planning for financial security. We
hope the following FAQs will enable a better insight to all buyers about the
character and features of Unit linked Products.
1. What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life
insurance policy which provides a combination of risk cover and investment. The
dynamics of the capital market have a direct bearing on the performance of the
ULIPs. REMEMBER THAT IN A UNIT LINKED POLICY, THE INVESTMENT
RISK IS GENERALLY BORNE BY THE INVESTOR.

2. What is a Unit Fund?

The allocated (invested) portions of the premiums after deducting for all the
charges and premium for risk cover under all policies in a particular fund as chosen
by the policy holders are pooled together to form a Unit fund.

3. What is a Unit?
It is a component of the Fund in a Unit Linked Policy.
4. What Types of Funds do ULIP Offer?
Most insurers offer a wide range of funds to suit one’s investment objectives, risk
profile and time horizons. Different funds have different risk profiles. The potential
for returns also varies from fund to fund.
The following are some of the common types of funds available along with an
indication of their risk characteristics.
 General Nature of Risk Category
Description Investments
Equity Funds Primarily invested in company stocks Medium to High
with the general aim of capital
appreciation
Income, Fixed Invested in corporate bonds, Medium
Interest and Bond government securities and other fixed
Funds income instruments
Cash Funds Sometimes known as Money Market Low
Funds — invested in cash, bank
deposits and money market
instruments
Balanced Funds Combining equity investment with Medium
fixed interest instruments

5. Are Investment Returns Guaranteed in a ULIP?

Investment returns from ULIP may not be guaranteed.” In unit linked

products/policies, the investment risk in investment portfolio is borne by the policy
holder”. Depending upon the performance of the unit linked fund(s) chosen; the
policy holder may achieve gains or losses on his/her investments. It should also be
noted that the past returns of a fund are not necessarily indicative of the future
performance of the fund.

6. What are the Charges, fees and deductions in a ULIP?

ULIPs offered by different insurers have varying charge structures. Broadly, the
different types of fees and charges are given below. However it may be noted that
insurers have the right to revise fees and charges over a period of
time.
  Premium Allocation Charge
This is a percentage of the premium appropriated towards charges before allocating
the units under the policy. This charge normally includes initial and renewal
expenses apart from commission expenses.

 Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan.
Mortality charges depend on number of factors such as age, amount of coverage,
state of health etc
Fund Management Fees
These are fees levied for management of the fund(s) and are deducted before
arriving at the Net Asset Value (NAV) .

 Policy/ Administration Charges

These are the fees for administration of the plan and levied by cancellation of units.
This could be flat throughout the policy term or vary at a pre-determined rate.

 Surrender Charges
A surrender charge may be deducted for premature partial or full encashment of
units wherever applicable, as mentioned in the policy conditions.

 Fund Switching Charge

Generally a limited number of fund switches may be allowed each year without
charge, with subsequent switches, subject to a charge.

 Service Tax Deductions

Before allotment of the units the applicable service tax is deducted from the risk
portion of the premium.
Investors may note, that the portion of the premium after deducting for all charges
and premium for risk cover is utilized for purchasing units
 7. What should one verify before signing the proposal?

One has to verify the approved sales brochure for

 all the charges deductible under the policy

 payment on premature surrender

 features and benefits

 limitations and exclusions

 lapsation and its consequences

 other disclosures

 Illustration projecting benefits payable in two scenarios of 6% and 10%

returns as prescribed by the life insurance council.
8. How much of the premium is used to purchase units?
The full amount of premium paid is not allocated to purchase units. Insurers allot
units on the portion of the premium remaining after providing for various charges,
fees and deductions. However the quantum of premium used to purchase units
varies from product to product.
The total monetary value of the units allocated is invariably less than the amount of
premium paid because the charges are first deducted from the premium collected
and the remaining amount is used for allocating units.

9. Can one seek refund of premiums if not satisfied with the policy, after purchasing
it?
The policyholder can seek refund of premiums if he disagrees with the terms and
conditions of the policy, within 15 days of receipt of the policy document (Free Look
period). The policyholder shall be refunded the fund value including charges levied
through cancellation of units subject to deduction of expenses towards medical
examination, stamp duty and proportionate risk premium for the period of cover.

10. What is Net Asset Value (NAV)?

NAV is the value of each unit of the fund on a given day. The NAV of each fund is
displayed on the website of the respective insurers.

11. What is the benefit payable in the event of risk occurring during the term of the
policy?
The Sum Assured and/or value of the fund units is normally payable to the
beneficiaries in the event of risk to the life assured during the term as per the policy
conditions.
12. What is the benefit payable on the maturity of the policy?
The value of the fund units with bonuses, if any is payable on maturity of the policy.

13. Is it possible to invest additional contribution above the regular premium?

Yes, one can invest additional contribution over and above the regular premiums as
per their choice subject to the feature being available in the product. This facility is
known as “TOP UP” facility.

14. Whether one can switch the investment fund after taking a ULIP policy?
Yes. “SWITCH” option provides for shifting the investments in a policy from one
fund to another provided the feature is available in the product. While a specified
number of switches are generally effected free of cost, a fee is charged for switches
made beyond the specified number.

15. Can a partial encashment/withdrawal be made?

Yes, Products may have the “Partial Withdrawal” option which facilitates
withdrawal of a portion of the investment in the policy. This is done through
cancellation of a part of units.
16. What happens if payment of premiums is discontinued?

a) Discontinuance within three years of commencement – If all the premiums

have not been paid for at least three consecutive years from inception, the
insurance cover shall cease immediately. Insurers may give an opportunity
for revival within the period allowed; if the policy is not revived within that
period, surrender value shall be paid at the end of third policy anniversary
or at the end of the period allowed for revival, whichever is later.

b) Discontinuance after three years of commencement -- At the end of the period

allowed for revival, the contract shall be terminated by paying the surrender
value. The insurer may offer to continue the insurance cover, if so opted for
by the policy holder, levying appropriate charges until the fund value is not
less than one full year’s premium. When the fund value reaches an amount
equivalent to one full year’s premium, the contract shall be terminated by
paying the fund value.
17. What information related to investments is provided by the Insurer to the
policyholder?
The Insurers are obliged to send an annual report, covering the fund performance
during previous financial year in relation to the economic scenario, market
developments etc. which should include fund performance analysis, investment
portfolio of the fund, investment strategies and risk control measures adopted.
In case, you need any clarification, you may address your query to the following e-
mail id:
premkunnel@irda.gov.in

Disclaimer:
The above material is provided for general information only and do not constitute
legal or other professional advice. This information is current at the date of
publication but may be subject to change without notice and accordingly, may not
be up to date at the time of viewing. Information specific to a product may be
obtained from the concerned Insurer.
THANK YOU