PROJECT REPORT ON

Recruitment of Financial Consultant HDFC Standard life Insurance

Submitted in partial fulfillment of the requirement of Masters of Business Administration (MBA)

Training Supervisor Mr.Sudarshan Kapoor

Project Supervisor Mrs.Rupa Rathee

Submitted By:
ANSHU LOCHAB SESSION: 2007-2009 HINDU INTSTITUTE OF MANAGEMENT, SONEPAT. AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY, ROHTAK (HARYANA)

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ACKNOWLEDGEMENT
The making of a report does not involve efforts of one single person. It is possible only because of cooperation and contribution of many minds. Several eminent people at HDFC STANDARD life insurance have made valuable contributions to this report through their inputs. I am thankful to each one of them. I am extremely thankful to Mr.SUDARSHAN KAPOOR, (Unit Advisor) for giving me an opportunity to undergo training in HDFC STANDARD LIFE INSURANCE and making my stay at HDFC STANDARD a memorable learning experience. In these two months, I have been given a very valuable insight into the working of industry in general, which will go a long way in shaping my career. I extend my sincere thanks to Mrs. RUPA RATHEE(Faculty, Hindu InstituteOf Management) for the amount of guidance extended to me in the form of continuous feedbacks and what process to follow to make this research work a success. Lastly I would also like to thank the whole HDFC STANDARD LIFE INSURANCE, who treated me like one of them and offered me valuable support and guidance and facilitated this experience of mine for which I am so grateful.

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(ANSHU LOCHAB)

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TABLE OF CONTENTS

CHAPTER NO. CHAPTER 1 CHAPTER 2

CONTENTS INTRODUCTION COMPANYS PROFILE RECRUITMENT PROCESS DATA ANALYSIS CONCLUSION & SUGGESTIONS ANNEXURE

CHAPTER 3

CHAPTER 4 CHAPTER 5

CHAPTER 6

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EXECUTIVE SUMMARY
Insurance in India used to be tightly regulated and monopolized by state-run insurers. Following the move towards economic reform in the early 1990s, various plans to revamp the sector finally resulted in the passage of the Insurance Regulatory and Development Authority (IRDA) Act of 1999. Significantly, the insurance business was opened on two fronts. Firstly, domestic private-sector companies were permitted to enter both life and non-life insurance business. Secondly, foreign companies were allowed to participate, albeit with a cap on shareholding at 26%. With the introduction of the 1999 IRDA Act, the insurance sector joined a set of other economic sectors on the growth march. During the 2003 financial year, life insurance premiums increased by an estimated 12.3% in real terms to INR 650 billion (USD 14 billion) while non-life insurance premiums rose 12.2% to INR 178 billion (USD 3.8 billion). The strong growth in 2003 did not come in isolation. Growth in insurance premiums has been averaging at 11.3% in real terms over the last decade.

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INTRODUCTION TO THE PEOJECT

Not with standing the rapid growth of the sector over the last decade, insurance in India remains at an early stage of development. At the end of 2003, the Indian insurance market (in terms of premium volume) was the 19th largest in the world, only slightly bigger than that of Denmark and comparable to that of Ireland. This was despite India being the second most populous country in the world as well as the 12th largest economy. Yet, there are strong arguments in favors of sustained rapid insurance business growth in the coming years, including Indias robust economic growth prospects and the nations high savings rates. The dynamic growth of insurance buying is partly affected by the (changing) income elasticity of insurance demand. It has been shown that insurance penetration and per capita income have a strong non-linear relationship. Based on this relation and other considerations, it can be postulated that by 2014 the penetration of life insurance in India will increase to 4.4% and that of non-life insurance to 0.9%.

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INDIA IN THE INTERNATIONAL CONTEXT

The Indian insurance market is the 19th largest globally and ranks 5th in Asia, after Japan, South Korea, China and Taiwan. In 2003, total gross premiums collected amount to USD 17.3 billion, representing just under 0.6% of world premiums. Similar to the pattern observed in other regional markets, and reflecting the countrys high savings rate, life insurance business accounted for 78.5% of total gross premiums collected in the year, against 21.5% for non-life insurance business.

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SIGNIFICANCE OF THE STUDY

For the generation of insurance seekers who thrived on insurance policies with assured returns issued by a single public sector enterprise, unit-linked insurance plans are a revelation. Traditionally insurance products have been associated with attractive returns coupled with tax benefits. The returns part was often so

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compelling that insurance products competed with investment products for a place in the investors portfolio. Perhaps insurance policies then were symbolic of the times when high interest rates and the absence of a rational risk-return trade-off were the norms. The subsequent softening of interest rates introduced a degree a muchneeded rationality to insurance products like endowment plans; attractive returns at low risk became a thing of the past. The same period also coincided with an upturn in equity markets and the emergence of a new breed of market-linked insurance products like ULIPs.

FOCUS OF STUDY
Insurance companies work on illustrations. They are allowed to show you how much your annual premium will be worth if it grew at 10 per cent per annum. But there are costs, so each company also gives a postcost return at the 10 per cent illustration, calling it the yield.

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For us, the most startling discovery was that some companies were not including the mortality cost while calculating the yield. This amounts to overstating the yield. We have done the calculations ourselves and then calculated the yield for this ranking.

REGULATORY REGIME
After the release of the Malhotra Committee report in 1994, changes in the insurance industry appeared imminent. Unfortunately, changes in the central government slowed down
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the process. The dramatic climax came on 7 December 1999 when the government finally passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation in 1972. The authority created by the Act is called the Insurance Regulatory and Development Authority (IRDA). Table 1.2 below summarizes some of the milestones in Indias insurance regulation.

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FEATURES OF THE 1999 IRDA ACT

The Insurance Regulatory and Development Act of 1999 set out to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalization) Act, 1972. The Act effectively reinstituted the Insurance Act of 1938 with (marginal) modifications. Whatever was not explicitly mentioned in the 1999 Act referred back to the 1938 Act. The salient features of the 1999 IRDA Act are discussed below:

LICENSING
The IRDA Act, 1999, sets out details of registration of an insurance company along with renewal requirements. The minimum capital requirement for direct non-life and life insurance business is 100 crores (i.e. INR 1 billion). The IRDA regulates the entry and exit of players, capital norms, and maintains a strict watch on the equity and solvency situation of insurers. Should an application be rejected, the applicant will
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have to wait for a minimum of two years to make another proposal, which will have to be with a new set of promoters and for a different class of business. For renewal, it stipulates a fee of one-fifth of one percent of total gross premiums written direct by an insurer in India during the financial year proceeding the renewal year. It also seeks to give a detailed background for each of the following key personnel: chief executive, chief marketing officer, appointed actuary, chief investment officer, chief of internal audit and chief finance officer. Details of the sales force, activities in rural business and projected values of each line of business are also required. Further, the Act sets out the reinsurance requirement for (general) insurance business. For all general insurance a compulsory cession of 20%, regardless of the line of business, to the General Insurance Corporation (the designated national reinsurer) is stipulated. Currently, India allows foreign insurers to enter the market in the form of a joint venture with a local partner, while holding no more than 26% of the companys shares. Compared to the other regional markets, India has more stringent restrictions on foreign access.

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Review of literature:
Insurance has always been a politically sensitive subject in India. Within less than 10 years of independence, the Indian government nationalized private insurance companies in 1956 to bring this vital sector under government control to raise much needed development funds. The Indian insurance industry was dominated by LIC in life insurance and GIC in general insurance. But now the insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again tracing the development in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. For recruitment of process of an insurance advisor in HDFC Standard life insurance company there is some qualities that have to fulfill by and prospect candidate.

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I think that people who have ample knowledge about insurance product and have good communication skill are most suitable for the Insurance Advisor.

OBJECTIVE:
The project undertakes was precisely about the development of the channel of the company i.e. Recruitment of the advisors of the organization who further brings in the business to it. The other main objectives of the research done for the company were: 1) To find the perception of the people about the company, 2) To check the job satisfaction level of the financial consultents of the HDFC-SLIC 3) To undertstand the recruitment system used in the selection process. 4) To know the satisfaction of employees about the given commission rate. 5) To rank the training sessions given to employees by HDFCSLIC. 6) To know the work of financial consultents in HDFC-SLIC.
7) To get the suggestions of financial consultants regarding the

improvement of recruitment system.

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RESEARCH METHODOLOGY

SOURCES:
The main source of data can be categorized into the following 2 ways. 1. PRIMARY DATA 2. SECONDARY DATA

Primary data - Primary data is facts and information collected

specifically for the purpose of the investigation at hand. Information that researchers gather first hand. The analyst can obtain primary data through the process of direct observation or by explicit questioning of people.

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Primary data has mainly been collected method by conducting personal visit.

from questionnaire

Secondary data:
Secondary data is mainly collected through internet, magazines and reports of the HDFC Standard Life Insurance. STATISTICAL TOOLS:- pie charts bar representation of data are used in representation of data.

COMPANY PROFILE
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED The Partnership:
HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In

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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 the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai.Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

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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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INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the first life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured.

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THEIR MISSION (AS STATED IN THE COMPANY'S WEBSITE ):

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 the market, 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 Use of technology to improve service standards Increasing market share

customers

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THEIR VALUES

SECURITY: Providing long term financial security to our

policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policy

holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our

customers, we will be offering a range of innovative products to meet these needs. Their mission is to be the best new life insurance company in India and these are the values that will guide them in this.

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OUR KEY STRENGTHS

FINANCIAL EXPERTISE:
As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

RANGE OF SOLUTIONS:
We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

TRACK RECORD SO FAR

Our gross premium income, for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2007.

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HDFC Standard Life is one of the leading life insurance companies having a track record of declaring bonuses every year since inception. We attribute this success to our people, who are our most important asset. We believe they are a key facet of the company and it is their contribution that has enabled us to achieve our current status. Since they deserve the best, our efforts have been to provide them with the best environment, best culture and best development opportunities possible.

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PRODUCT PROFILE 1. Protection Plans

2. Savings Plans 3. Child Plans 4. Investment Plans 5. Retirement Plans 6. Group Plans 7. Rural Plans 8. Plans for NRIs 9. Key man Plans 10. Riders

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HDFC GROUP PLANS

This group coverage plan is for a specified group of people, providing insurance for one year. In case of death of a member the amount is paid to the beneficiary of the member.

Eligibility & Payment Of Premiums :

Members of a development agency (together with their spouses), between the ages 18-50 yrs are eligible. The development agency must have at least 500 members. But the employees of the agency group are not eligible for coverage. Premiums will be same (per member) for the entire group. The premiums will have to be paid by the agency for all the members in a specified format. In case of death of the group member the sum assured will be paid to the beneficiary. In case of death due to accident, additional sum of 50% of sum assured is also paid. Nothing is payable in case of survival of the member at the end of the year. HDFC insurance gives mortality rebate (at its discretion), which is calculated separately for groups. This rebate will be a proportion of excess (if any) premiums paid over the claims (after deducting administrative costs).in case of deficit, HDFC bears the gap& no rebate will be given. The development agency is
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expected to perform certain tasks like collecting data, noting down changes, paying the premiums, disbursement of claims etc. The agency will be trained and also will be paid a premium rebate.(subject to fulfillment of criterion laid down by HDFC insurance).

HDFC PLANS 1) Endowment Assurance Plans:

HDFC ins. offers various types of endowment assurance plans. Under endowment assurance the amount (sum assured) is paid with bonus (if any) when the policy matures or in case of premature death of the policyholder during the term of the policy.

Types of Endowment Assurance Plans:

A) Classic plan: here only basic sum assured with bonus (if any) alone is paid.
B) Value plan A: in this case double the sum assured is paid in case of death of the policyholder.

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C) Value plan B: under this plan, apart from double the sum assured coverage in case of natural death, accidental death benefit is also provided. In case of death due to accident, double the sum assured is paid. D) Value plan C: this type provides basic sum assured assurance and also waiver of premium facility. Premiums are waived in case of total disability & for the period of total disability. E) Value plan D: three benefits basic sum assured protection, waiver of premium in case of total disability and accidental death benefit are offered under plan D. F) Value plan E: apart from basic sum assured and waiver of premiums in case of total disability, this plan also covers specified critical illnesses (for basic sum assured).

Flexi- Plan:
A choice is given to design ones own policy, in consultation with a financial consultant where one can add any of the 4 additional benefits double sum assured, accident death benefit, waiver of premiums, critical illness. Age groups covered:
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For classic plan: 12-60 yrs (max. age at maturity 75 yrs.) Value plan a: 18-60 yrs (max. age at maturity 75 yrs.) Value plan b: 18-55 yrs (max. age at maturity 65 yrs.) Value plans c, d, e: 18-50 yrs. (max. age at maturity 60 yrs.)

Term for all endowment plans:

Min term: 10 years. Max term: 30 yrs.

Payment OptionsYearly, half yearly or quarterly for all plans.

HDFC Money back Plans:

HDFC Money back plans pay cash lump sum in proportion to the basic sum assured. This cash lump sum is paid once in every 5yrs.on maturity the basic sum assured minus the cash lump sum amounts paid in between is paid together with bonus if any. If a policyholder expires during the term of the policy, full sum
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assured (without deducting) any paid lump sum amounts is paid (with bonus if any).

Schedule of Lump sum Amounts:

The schedule of lump sum amounts depends on the term of the policy. A choice of 5 terms is available --- 10, 15, 20, 25, 30 yrs

10 yr policy: 40% of sum assured is paid after 5 years. The

balance 60% is paid at the time of maturity (with bonus).

15 yr policy: two installments of 30% is paid at the end of 10

yrs and 15 yrs respectively. The balance 60% is paid at the time of maturity (with bonus any).

20 yr policy: 3 installments of 20% of sum assured are paid at

the end of 5,10 and 15 yrs. The balance sum assured of 40% is paid at the time of maturity (with bonus if any)

25 yr policy: 4 installments of 20% of sum assured, lump sum

amounts are paid at the end of 5,10,15,20 yrs. The balance 20% is paid at the time of maturity (with bonus, if any).

30 yr policy: 5 installments of 15% of sum assured are paid as

lump sum amounts at the end of 5,10,15,20,25 yrs .the balance 25% is paid at the time of maturity (with bonus, if any.)

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DIFFERENT PRODUCTS OF MONEYBACK PLANS

After choosing the term (no. Of yrs), a person can also choose from several variants of money back plans. They are

1) Classic plan: only basic sum assured is paid at the time of

pre mature death of the policyholder.

2) Value plan A: in case of premature death of the policy holder

additional sum assured equivalent to basic sum assured is paid. For calculating lump sum amounts, only the basic sum assured is considered.

3) Value Plan B: under this plan double the sum assured is paid
in case of premature ordinary death, and also premature death due to accident. Lump sum amounts are calculated for basic sum assured only.

4) Value plan c: the risk is covered for basic premiums.

Additionally, in case of total disablement, further premiums are waived during the period of total disablement.
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5) Value plan d: double the sum assured protection in case of

premature death is provided. Also waiver of premiums in case of total disablement, for the period of disablement facility is given. But lump sum payments are calculated for basic sum assured only.

6) Value plan e: certain critical illnesses are covered under this

plan. The risk is covered for basic sum assured. But waiver of premiums facility is given (in case of total disablement, during the period of disablement).

Flexi Plan
A choice is given to design a plan of ones own choice, in consultation with a financial consultant. Where one can add any of the additional benefits (4) - double sum assured, accidental death benefit, waiver of premiums and critical illness.

AGE GROUPS COVERED:

Classic plan: 12 60 yrs.

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Value plan a: 18-60 yrs. Value plan b: 18-55 yrs. Value plans c, d, e: 18-50 yrs. TERM FOR MONEY BACK PLANS: Min term for all polices: 10 yrs. Max term for all polices: 30 yrs.

Payment Options:
Yearly, half yearly or quarterly for all the plans.

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THE INVESTMENT FUNDS AVAILABLE

HDFC Stand.. Market Return Fund unit-linked insurance plan offers four tailored investment funds.

Working:
The premium made net of Premium Allocation Charges by the Individual is invested in fund/funds of choice and units are allocated depending on the price of units for the fund/funds. The value of Unit Account is the total value of units that hold in the fund/funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the unit value Capital Secure Fund : This fund offers steady returns for very little risk. Your funds are invested 100% in bank deposits, government bonds and debt instruments that offer financial security. Balanced Fund :

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In this fund, a major portion of your funds are invested in fixed securities while a small percentage is invested in the equity market which is exposed to market movements. Growth Fund: This fund offers a greater portion of investment in the equity market. The greater exposure to the equity market means that returns will be higher, but with the attendant higher level of risk. Equity Fund : This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of thequity.The higher risk of this portfolio means that expected returns will also be higher.

The allocation of assets and the risk and return levels for each investment fund are given in the table below:
Asset Allocation Fund Type Time Horizon Risk Level Level of Returns Fixed Interest Securities Not less than Capital Secure Short Low Low 100% Equities Not more than

0%

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Balanced

Medium

LowMedium

Medium

80%

20%

Growth

Long

Mediumhigh High

Medium

60%

40%

Equity

Long

Hign

0%

100%

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What are units?

The premiums you pay are invested into the funds according to your choice. Your investment is expressed in terms of units, the value of which varies according to the performance of the funds. Unit prices are calculated regularly for each fund using the following formula: Total market value of assets plus current assets less current liabilities less provisions Total number of units on issue When you pay premiums, we will allocate your units using the next following unit price that we determine. When we pay you benefits, we will cancel units at the next available unit price. The market value of assets is arrived at based on the information from stock exchanges, financial institutions and market makers.

Unit Price

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Premium Payment Options Single Premium Minimum Rs 25,000

Regular Premium Minimum Installments Annual Half Yearly Quarterly Monthly Rs 10,000 Rs 5,000 Rs 2,500 Rs 1,250 (for salary deduction only) Rs 2,500 (standing order/credit card)

Top-up Premium Minimum Rs 2,500

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Regular Premium
You can select a regular payment mode of your choice to build up your unit account. Such regular payments continue till the maturity date of the policy. We will invest your premiums in the investment funds of your choice in the proportions that you specify subject to regulatory norms. Under current regulations, you may invest up to a maximum of 20% of your premiums into the Capital Secure Fund at the commencement of your policy.

Single Premium:
Account with a single premium payment of Rs 25,000 or more. The invest premiums in the investment funds choice in the proportions that specify subject to regulatory norms. Under current regulations, we may invest up to a maximum of 20% of the premium into the Capital Secure Fund at the commencement of policy.

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Top-up Premiums:
When you have additional funds, you can enhance your unit account with top-up premiums of Rs 2,500 or more. You may make top-ups on your regular or single premium policy at any time to further build your portfolio. These top-ups do not affect your sum insured; they simply increase your investment in the funds.

Redirections are free of cost: At any point you can redirect your premiums to other investment funds. Once your requisition reaches us, your future premium payments will be redirected to the investment fund/s of your choice.

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Withdrawls:

No. of partial withdrawals per year for regular/single premium options

Minimum period the policy should be in force for partial withdrawals

1 year

Minimum unit account balance after each withdrawal

Rs 10,000

The withdrawal option provides you with the right amount of liquidity such that you can draw from your unit account without disturbing the insurance cover you enjoy. Once the policy is in force for at least a year, you can make partial

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Regular Premium:

Up Minimum Sum Insured Above age 12 Up Maximum Sum Insured age 12 Above age 12 age 12

to

times

annualized

premium or Rs 5,00,000, whichever is lower

5 to

times

annualized

premium Rs 5,00,000 None

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Single Premium :

Up Minimum Sum Insured Above age 12 Up Maximum Sum Insured age 12 Above age 12 age 12

to

110% of single premium or Rs 5,00,000, whichever is lower

110% of single premium to

Rs 5,00,000

None

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Death benefits available:

If the life insured dies before the maturity date, the policy holder/beneficiary will receive the full value of the unit account or the sum insured whichever is higher. The advantage in this policy is that we recalculate your insurance charge each month, so as your unit account grows in value, your insurance charge reduces. That is, you only pay insurance charges for the decreasing sum at risk as is shown in the graph below.

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Suicide Clause: If the life insured, whether sane or insane, commits suicide within 12 months from the date of commencement of this policy we will limit the death benefit to the value of your unit account. Insured benefits are not paid in this case. Can you change the sum insured:

Reducing the sum insured Increasing the sum insured

Minimum as specified in table below Subject to underwriting Requirements

5 times annualized Minimum Sum Insured ---Regular Premium Up to premium or Rs 5,00,000, age 12 Above age 12 whichever is lower 5 times annualized premium

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You may increase your sum insured on the basis of continued good health and our terms and conditions applicable at that time. What are the additional benefit options? If you wish to enjoy additional insurance benefits, You may select the Accidental Death and Total and Permanent Disablement Benefit rider that this policy offers, for regular premium payment option. ACCIDENTAL DEATH AND TOTAL AND PERMANENT DISABLEMENT BENEFIT This benefit doubles the life coverage in case of death or permanent total disability due to an accident at a very nominal additional cost. The maximum cover offered is Rs 50,00,000. In case of total and permanent disability, 1/10th of the sum insured will be paid at the end of each year for ten years. If the total and permanent disability benefit has commenced, then the accident cover will cease. In case of maturity or on death of the life assured, after the payment of any installments of the permanent and total disability benefit, the remaining unpaid installments, if any, will be paid in one lump sum. Total and permanent disability means disability caused by bodily injury which causes permanent inability to perform any occupation or to engage in any activities for remuneration or
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profits. This disability should last for at least 6 months before being eligible for total and permanent disability benefits. Total and permanent disability also includes the loss of both arms and both legs or one arm and one leg, or of both eyes. By loss of arms or legs we mean dismemberment by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.

Exclusions:
HDFC Standard Life Insurance will not be liable to pay any accidental death benefit claim or total and permanent disability benefit claim which results directly or indirectly from any one or more or the following: An act or attempted act of self-injury. Participation in any criminal or illegal acts. Being under the influence of alcohol or drugs. Racing or practicing racing of any kind other than on foot. Flying or attempting to fly in, or using or attempting to use,

an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service. Participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service, War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism.
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Your Unit Account

The following diagram shows that your premiums and investment earnings are used to purchase units, which are directed to your unit account. Any charges or benefits are paid out by converting your units into cash once again.

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Charges applied: Allocation fee

Term of Policy (years) Year Regul ar Premi um First Year T 5-9 10% 10-14 15% 15+ 20% 5%

5% 5% hereafter These are applied to the premiums

Singl e Premium & topups

The allocation fee is 2% of the premium/contribution amount.

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Insurance Charges your deducted

This is based on attained age and is

at the beginning of each month. Investme nt charges Fund Capital Secure Balanced Growth Equity

Unit-Linked Rate*

Annual

1.50% 1.50% 1.75% 1.75%

The investment charges are

deducted on a daily basis.

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Tax benefits:
Premium, net of health related benefit (eg. Critical Illness) premium paid, up to a maximum of 20% of the sum assured will be eligible for income tax rebate under section 80C. Provided, the premium in any of the years during the policy term does not exceed 20% of the sum assured, your death, maturity and withdrawal benefits are eligible for tax relief under section 10 (10D). Please consult your tax consultant for further details. Also remember that if the policy lapses or you terminate the policy before you have paid premium for two years in case of a regular premium plan or two years have elapsed in case of a single premium plan, the tax benefits availed shall be deemed to be tax payable. To take advantage of the current tax benefits, we recommend the following sums assured. Please remember that these limits are not binding and you may choose other alternatives.

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Prohibition of rebates:
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 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 Insurance is the subject matter of solicitation

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COLLABORATION OF INDIAN COMPANIES WITH FOREIGN COMPANIES AND THEIR MARKET SHARE

Bajaj Allianz Life Insurance Aviva Life Insurance Birla Sun Life Insurance Max New York Life Insurance Reliance Life Insurance Tata AIG Life Insurance Bharti AXA Life Insurance Sahara Life Insurance General Insurance Corporation Of India Canara HSBC OBC Life Insurance

AMP Sanmar Life Insurance HDFC Standard Life Insurance ICICI Prudential Life Insurance Metlife Indian Insurance Shiram Life Insurance SBI Life Insurance ING Vysya Life Insurance Kotak Mahindra Insurance Royal Sundaram Insurance

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MARKET SHARE OF MAJOR PLAYERS

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FINDINGS ON THE BASIS OF SWOT ANALSIS

STRENGTH:

HDFC Standard life Insurance is the largest private player in the insurance industry in India Excellent services. Customization of products as per customers needs. Brand image. Business experience. Strong financial base. Innovative products, Technology, Organization culture & climate. The company has a large network of branches, which is helpful to customer for the payment.

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WEAKNESSES : Lot of competitors are in the market offer same product offered by the difference in the premium & offering. Target only higher income group where as other companies are trying to catch middle-class people. Higher premium as compared to other companies. Clients face problems to get insured due to large number of formalities. High targets for financial advisors & for the sale department.

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OPPORTUNITIES:

Huge market is literally untapped. Out of estimated 320 insurable markets only 20% of the population is insured.

million

In a conservative society of India where people are most

inclined towards risk free investments such as Bank FDs & savings rather than equity & high risk investment insurance offers the best of both words The security with high returns. In the pension field where people want good life after their

retirement. Indian people are more emotional towards their child thats

why children plans are selling like hot cakes. Health insurance & pension schemes as estimated market

potential of approximately $15.

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THREATS: Weak perceptions of private players in the mind of Indian Large number of insurance players. Existing wrong business practices of companies like their

people due to frequent financial scams.

agents pay LIC first premium where as IRDA suggests that even forms to be filled by the clients themselves. Players like Bajaj Allianz & Birla Sun Life with low Entry of many other private companies with equally strong premiums for the similar plans. experience & financial strength of foreign partners making the competition difficult & saturating the urban markets. LIC has woken up from sleep & is following competitive strategies. Its huge surplus in the life fund gives a capability to lodge price war. For the insurance sector Govt. set the authority that is IRDA which is undertaken to track record of all the companies &
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change the rules day by day more rigid, which is very difficult for the companies.

IRDA

CONDUCT

THE

TRAINING

OF

INSURANCE

ADVISOR. As far as licensing an individual is concerned, the following documents would be required : Checklist Age proof Education proof Address proof Agency application Form VA 8 photograph- all one kind- recent, clear colored only with

name written behind each photo

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FINANCIAL CONSULTANT AND THEIR JOB RESPONSIBILITY Financial Consultant:

Financial consultant provides analysis and guidance to businesses and individuals to help them with their investment decisions. They act as an representative for the company so as to develop the channel & bring business for the company. They sell different types of insurance policies, for a single insurance company, in return for a commission. Depending on the type of work they perform they are paid a salary, a salary plus commission, or only commission. He is also called an insurance broker in some

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instances and may work with different companies depending on their area of expertise and coverage.

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Job Responsibility:
His / her job his is to find local doable customers to

determine their needs and help them in getting insured. Delivering the insurance policy to the respective customers

upon approval and collect the premium amount; in return for which they get a certain amount of commission by the insurance company. He may sell individual policies for home, life, car and

medical insurance. Negotiate the new terms with the insurance company. Help the insured customers to get their insurance claim in

case of any natural disaster occurs.

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ELIGIBILITY & CRITERIA TO BECOME A FINANCIAL CONSULTANT:

IRDA Regulations for becoming an agent: The three prerequisites laid down by IRDA to qualify as an agent under the licensing regulations are:

Educational Qualification: Possess a minimum educational

qualification of 12th standard or equivalent.(if population >5000) and 10th standard or equivalent (if population < 5000).

Practical Training: Complete one hundred hours (100) of

practical training in life insurance business.

Pre-recruitment Test: Pass the pre-recruitment test, based on

an examination conducted by the Insurance Institute of India or another approved body. (Agents licensed before the regulations were notified i.e. on July 14, 2000 will be exempt from the above requirements.)

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Training process:
Training hours: 100 Two modes of training (a) class room (b) online Class training has two options (a) Full time: -- 9.30 to 5.30 Monday to Saturday for 18 days + 3 days of product training. (b) Part time: -- 6.30 pm to 9 pm Monday to Saturday for 34 days (c) Online: -- on computer and 100 hrs must be completed within 30 days (In case of professionals like CAs, ICWAs and MBA {from premier institutes} Training is for 50 Hrs and must be completed in 9 days) 5. After the prospect have undergone the training process, he have to appear for an online test, which is about the training he has done, and he gets the result on the spot, and if he clears the examination then he gets a license for 3 years and also, HDFC

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STANDARD LIFE INSURANCE gives free zero balance accounts to the ADVISORS.

NEED AND STAGES FOR LIFE INSURANCE Why do I need Life Insurance?
Life insurance is designed to protect you and your family against financial uncertainties that may result due to unfortunate demise or illness. You can also view it as a comprehensive financial instrument as a part of your financial planning offering you savings & investment facilities along with cover against financial loss. By choosing the right policy as per your needs i.e. customized solutions, you will be able to plan for a secure future for yourself and your loved ones.

Choosing the right plan . Identifying the right plan basis your
needs is the first crucial step towards insurance planning. At HDFC SL they help you through this decision by identifying your various needs and offering plans that are customized for you.
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You may also choose a plan for yourself by identifying the life stage you are at.

Analyzing Needs:
Protection Need for a sound income protection in case of your unfortunate demise. Investment Need to ensure long-term real growth of your money. Saving Save for the milestones and protect your savings too. Pension Need to save for a comfortable life post retirement. Once you have analyzed your needs as per above classification, you need to then ascertain important factors such as type of cover, insurance amount as per one's income, life stage and dependents.

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It is difficult to arrive at all these figures yourself. Our financial consultants can help you with all the analysis to offer a customized solution by doing a thorough need analysis.

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Life Stages for life insurance:

Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyzes various insurance needs accordingly. Please get in touch with our financial consultant to know more about our products.

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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 additional responsibilities. While both of you look forward to a happy and secure life , it is equally important to ensure that eventualities dont come in the way of shaping your dreams.
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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 childs dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Your needs: Provide for childrens education Safeguarding family against loan liabilities Savings for post-retirement
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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

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DATA ANALYSIS
1)Why did you opt for HDFC SLIC ?
sources of information %age

a) b) c) d)
70 60 50 40 30 20 10 0 %age

Reference Advertisement Ex-members Others

a) Reference
b) Advertisem ent

60 20 10 10

c) Exmembers d) Others

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Interpretation About 60% of the people they come by reference , 20% by advertisement and other 10% ex-members and rest 10% come by other sources.

2)Out of five how would you rank various salary packages incentives?
parameter 1 2 3 4 5 %age 70 10 8 7 5

and

%age 80 %age 60 40 20 0 1 2 3 parameter 4 5 %age

Interpretation
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70% of the people said that their incentives are Excellent and 10% says that its fair enough other 8% says its good and another 7% says that its poor and rest 5% said that it is very poor.

3)Do you feel that recruitment system in HDFC SLIC is fair enough?

Response

%age

Yes

85

No

15

%age 100 50 0 Yes No %age

Interpretation
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85% said that its excellent and there is no process apart from it which can be recommended for recruitment but 50% said that its not upto the mark.

4) How would you grade the facilities provided under this system?

Excellent good average fair poor

50 25 10 10 5
60 50 40 30 20 10 0
go od av er ag e fa ir Ex ce lle nt po or

Series1

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Interpretation

50% of the people said that that facility provided by the system are Excellent and 25% says that facilities are good 10% says average and 10 say that its fair other 5% say that facilities provided are poor.

5)Are you satisfied with the commission rate given by HDFC SLIC ?
Response Yes No %age 70 30

%age 80 60 40 20 0 Yes No %age

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Interpretation

70 % people are satisfied with the commission rate given by HDFC SLIC and 30% people are not satisfied with the commission rate given by HDFC SLIC.

6)To what extent do you feel that HDFC SLIC provides job satisfaction ?
Excellent good average fair poor 25 50 10 10 5

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60 50 40 30 20 10 0
av er ag e go od fa ir Ex ce lle nt po or

Series1

Interpretation 25% respondents give excellent response about this and 50% say that it is good 10% says that it is average and other 10% says that it is fair and other are not satisfied by it.

7) Is the commission given by HDFC SLIC compatable with other companies?

Response Yes No %age 75 25

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%age 80 60 40 20 0 Yes No %age

Interpretation 75% of the people says that the commission given by HDFC SLIC compatable with other companies and other says that it is compatable with other companies

8) Rate your satisfaction level of training undergone by you?

5 4 40 30

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3 2 1

15 10 5

50 40 %age 30 20 10 0 1 2 3 4 5 parameter Series1 Series2

Interpretation
40% of the people rate at 5th position on likert scale, 30% rate on the 4th position, 15% on the 3rd position, 10% on 2nd and other 5% on one.

9) How would you rank the behaviour of your top authority in solving your problem out of 5?
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Parameter 5 4 3 2 1
%age 80 %age 60 40 20 0 1 2 3 parameter 4 5

%age 8 7 10 15 60

%age

Interpretation 8% of the people give 5th rank to their top authorities, 7% give the 4th rank to them, 3% people give 3rd rank, 15% give 2nd rank and other 60% people give them 1st rank.

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10) Do you think that companys atmosphere is fair enough for your future growth, rate on the scale of 5?
Parameter 5 4 3 2 1 %age 8 60 15 10 7

%age 80 60 40 20 0 1 2 3 4 5 %age

Interpretation 8% people think that the companys atmosphere is fair and they give it the rank on 5th position, 60% give it the 4th position, 15% give the 3rd position and 10% give the 2nd position and 7% iof the people give it the 1st position

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11) Will you recommend HDFC SLIC to others for being a financial consultant?
Response Yes No %age 80 20

%age 100 80 60 40 20 0 Yes No %age

Interpretation 80% of the people recommend that HDFC SLIC is good for being a financial consultant but the rest 20% are not in its favour.

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12) Do you think that people get ahead primarily on the merit of this work, rate on scale of 5?
Parameter 5 4 3 2 1
%age 60 50 40 30 20 10 0 1 2 3 4 5

%age 5 20 15 10 50

%age

Interpretation 5% respondents give 5th position to it 20% respondents give it 4th position 15% respondents give 3rd position 10% people give it 2nd rank and rest 50% give it 1st position

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13) Do you satisfied with the amount and frequency of informal praise and application you received from your boss, rate on scale of 5?
5 4 3 2 1
50 40 %age 30 20 10 0 1 2 3 4 5 parameter Series1 Series2

40 30 15 10 5

Interpretation 40% respondents give it the 5th position, 30% respondents give it 4th position, 15% give 3rd position and 10% give it 2nd position and rest 5% give it the 1st position.

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14)Any suggestion for improvement of the recruitment system? ..

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CONCLUSION AND SUGGESTIONS

The company should spread its advertisements so that it can increase in the quantity of financial consultants because most of the financial consultants come through references. The job satisfaction provided by the company is good but it should take more step to makes it excellent The training procedure of the company is excellent. The recruitment system is fair enough to recruit the people as a financial consultant of the company The company is providing good commission to its members and it is more as compare to other company. The facilities providing during the training session is good.

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QUESTIONAIRE
Name: Age: Department: Qualification: Licence no: 1)Why did you opt for HDFC SLIC ? a) Reference b) Advertisement c) Ex-members d) Others 2)Out of five how would you rank various salary packages and incentives? a)1 b)2 c)3 d)4 e)5

3)Do you feel that recruitment system in HDFC SLIC is fair enough? a) Yes B)No

4) How would you grade the facilities provided under this system? a) Excellent b)good c)average d)fair e)poor

5)Are you satisfied with the commission rate given by HDFC SLIC ? a)Yes b)no
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6)To what extent do you feel that HDFC SLIC provides job satisfaction ? a)Excellent b)Good c)Average d)Fair e)Poor

7)Is the commission given by HDFC SLIC compatable with other companies? a) Yes b) No

8)Rate your satisfaction level of training gone by you? a)5 b)4 c)3 d)2 e)1

9)How would you rank the behaviour of your top authority in solving your problem out of 5? a)1 b)2 c)3 d)4 e)5

10)Do you think that companys atmosphere is fair enough for your future growth, rate on the scale of 5? a)1 b)2 c)3 d)4 e)5

11)Will you recommend HDFC SLIC to others for being a financial consultant? a)Yes b)No

12)Do you think that people get ahead primarily on the merit of this work, rate on scale of 5?
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a)1

b)2

c)3

d)4

e)5

13)Do you satisfied with the amount and frequency of informal praise and application you received from your boss, rate on scale of 5? a)1 b)2 c)3 d)4 e)5

14)Any suggestion for improvement of the recruitment system? ..

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BIBLIOGRAPHY
1. 2. 3. 4. 1. 2. 3.

News Papers:The Economic Times. Times of India. Business standard. Financial Express. Magazines:Business world. Business Today Outlook. Internet Sites:www.hdfcinsueance.com www.researchandmarket.com www.insure2bsecure.com www.google.com www.insuremagic.com

1. 2. 3. 4. 5.

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