“A DETAILED STUDY OF RECRUITMENT AND RETNETION

STRATEGIES OF FCs IN LIFE INSURANCE INDUSTRY WITH A

SPECIAL FOCUS TO HDFC SLIC”

[1]
 TABLE OF CONTENTS

Page
Chapter No Title No

A List of Tables
B List of Figures
C List of Abbreviations
1 Executive Summary
1.1 Industry Profile
1.2 Company profile
1.3 Key strength
1.4 Rewards
1.5 Major Players
1.6 Who can be FC ?
1.7 Work of FC
2 Objective
2.1 Limitation
3 Methodology
3.1 Findings
4 Conclusions
4.1 Suggestions
Appendix
Bibliography

[2]
 LIST OF TABLES
Title
Tables
No
Page No
Life Insurers
5.1

5.2 Product list of HDFC SLIC

First Year Premium of Life Insurers for the Period
5.3
Ended JUNE, 2008
5.4
PREMIUM UNDERWRITTEN BY LIFE INSURERS IN
INDIA 2006-07
6.1
Willingness to be FC for HDFC

[3]
 LIST OF FIGURES

figures Title
No Page No

5.1
JOINT VENTURE

LOAN APPROVALS AND DISBURSEMENTS

5.2

[4]
LIST OF ABBREVIATIONS

HDFC Housing Development Finance Corporation.

SLIC Standard Life Insurance Company.

FC Financial Consultant

SDM Sales Development Manager

BDM Business Development Manager

CFC Certified Financial Consultant

LA Life Assured

SA Sum Assured

ADB Accidental Death Benefit

CI Critical Illness

[5]
 Chapter 1

Executive Summary

[6]
 INDUSTRY PROFILE

LIFE INSURANCE

Life is full of risks. Being a social animal and risk averse, man always tries
to reduce risk. An age-old method of sharing of risk through economic
cooperation led to the development of the concept of ‘insurance’. Insurance
may be described as a social device to reduce or eliminate risk of loss to
life and property. Insurance is a collective bearing of risk. Insurance
spreads the risks and losses of few people among a large number of
people, as people prefer small fixed liability instead of big uncertain and
changing liability. Insur-ance is a scheme of economic cooperation by
which members of the community share the unavoidable risks. The risks,
which can be insured against include fire, the perils of sea, death,
accidents, and burglary. The members of the community subscribe to a
common pool or fund, which is collected by the insurer to indemnify the
losses arising out of risks. Insurance cannot prevent the occurrence of risk
but it provides for the losses of risk. It is a scheme, which covers large
risks, by paying small amount of capital. Insurance is also a means of
savings and investment. Insurance can be defined as a legal contract
between two parties whereby one party called insurer under-takes to pay a
fixed amount of money on the happening of a particular event, which may
be certain or uncer-tain. The other party called insured pays in exchange a
fixed sum known as premium. The insurer and the insured are also known
as Assurer, or Underwriter, and Assured, respectively. The document, which
embodies the contract, is called the policy. An insurance contract is based
on some basic principles of insurance.
a. Principle of ‘Uberrima Fides’ or Principle of utmost good faith.
b. Principle of Indemnity.
c. Doctrine of Subrogation.
d. Principle of Causa Proxima.
e. Principle of insurable interest.

a. Principle of utmost good faith:

It means “maximum truth”. All material information regarding the subject
matter of insurance should be disclosed by both the parties-the insurer and
the insured. This duty of full disclosure rests more heavily on the insured

[7]
than the insurer. The insurer has a right to avoid the contract if the insured
fails to make the full disclosure.

b. Principle of indemnity:
This means that if the insured suffers a loss against which the policy has
been made, he shall be fully indemnified only to the extent ofloss. In other
words, the insured is not entitled to make a profit on his loss.

c. Doctrine of subrogation:
This means the insurer has the right to stand in the place of the insured
after settlement of claims in so far as the insured’s right of recovery from an
alternative source is involved. The right may be exercised by the insurer
before the settlement of the claim. In other words, the insurer is entitled to
recover from a negligent third party any loss payments made to the
insured. The purposes of subrogation are to hold the negligent person
responsible for the loss and prevent the insured from collecting twice for
the same loss.

d. Principle of causa proxima:

The cause of loss must be direct and an insured one in order to claim for
compensation.

e. Principle of insurable interest:

The assured must have insurable interest in the life or property insured.
Insurable interest is that interest which considerably alters the position
of the assured in the event of loss taking place and if the event does not
take place, he remains in the same old position. One who has to lose as a
result of loss may be said to have insurable interest in the life or property
insured. If this principle is absent, the insurance contract degenerates
into a wagering contract. It is taken as given that an individual has
insurable interest in his/her own life or property. Cases where no proof of
insurable interest is required are that of a husband’s interest in his wife’s
life and wife’s interest in her husband’s life. In cases of business and family
relationships, proof of insurable interest is required.

[8]
 ORIGIN AND DEVELOPMENT OF INSURANCE

The concept of insurance is believed to have emerged almost 4,500 years

ago in the ancient land of Babylonia where traders used to bear risk of the
caravan by giving loans, which were later repaid with interest when the
goods arrived safely. In order to protect against the risk of loss of goods in
transit, piracy and natural calamities like storms and so on, medieval guilds
(trade associations) formed a common pool of funds, which was used as
support in times of sickness and death and sometimes even offered as
ransom for members held captive by pirates. The first insurance contract
was entered into by European maritime nations in 1347 to accept marine
insurance as a practice.

The concept of insurance as we know today took shape in 1688 at a place

called Lloyd’s Coffee House in London where risk bearers used to meet to
transact business. This coffee house became so popular that Lloyd’s
became the one of the first modem insurance companies by the end of the
eighteenth century.

Marine insurance companies came into existence by the end of the

eighteenth century. These companies were empowered to write fire and life
insurance as well as marine. The Great Fire of London in 1966 caused
huge loss of property and life. With a view to providing fire insurance
facilities, Dr. Nicholas Barbon set up in1967 the first fire insurance
company known as the Fire office.

The oldest life insurance company in existence today is the Society for the
Equitable Assurance of Lives and Survivorship, known as ‘Old Equitable’. It
was established in England in 1756.
The mortality tables were constructed in the seventeenth century. The first
mortality table was constructed by an astronomer Edmund Haley in 1693.
This table provided a link between the life insurance premium and average
life spans based on statistical laws of mortality and compound interest. In
1756, Joseph Dodson re-worked the table, linking insurance premium rate
to age.

[9]
The infamous New York Fire and the great Chicago Fire in 1835 and 1871,
respectively, created an awareness and need for insurance. The concept of
reinsurance emerged to deal specifically for such situations.
Industrialisation and urbanisation popularised the concept of insurance and
growth in insurance led to the development of new insurance products.

[10]
 HISTORY OF INSURANCE IN INDIA

The early history of insurance in India can be traced back to the Vedas.
The Sanskrit term ‘Yogakshema’ (meaning well being), the name of Life
Insurance Corporation of India’s corporate headquarters, is found in the Rig
Veda. Some form of ‘community insurance’ was practiced by the Aryans
around 1000 BC. The joint family system prevalent in India was an
important form of social cooperation.

Life insurance in its modem form came to India from England in 1818. The
Oriental Life Insurance Company was the first insurance company to be set
up in India to help the widows of European community. The insurance
companies, which came into existence between 1818 and 1869, treated
Indian lives as sub-normal and charged an extra premium of 15 to 20 per
cent. The first Indian insurance company, the Bombay Mutual Life
Assurance Society, came into existence in 1870 to cover Indian lives at
normal rates. Moreover, in 1870, the British Government enacted for the
first time the Insurance Act, 1570. Other companies, such as the Oriental
Government Security Life Assurance Company, the Bharat Insurance
Company, and the Empire of India Life Insurance Company Limited, were
set up between 1870 and 1900.

The Swadeshi movement of 1905-07, the non-cooperation movement of

1919, and Civil Disobedience Movement of 1929 led to an increase in
number of insurance companies. In 1912, the first legislation regulat-ing
insurance, the Life Insurance Companies Act, 1912, was promulgated. The
growth of life insurance was witnessed during the first two decades of the
twentieth century not only in terms of number of companies but also in
terms of number of policies and sum assured. Indian Insurance Year Book
was published for the first time in 1914.
The Insurance Act, 1938, the first comprehensive legislation governing both
life and non-life branches of insurance was enacted to provide strict state
control over insurance business. This amended insurance Act looked into
investments, expenditure, and management of these companies. An office
of the Controller of Insurance came into existence. The Controller of
Insurance had wide-ranging powers, which included directing, cautioning,
advising, prohibiting, inspecting, investigating, searching, seizing,

[11]
prosecuting, penalising, authorising, registering, amalgamating, and
liquidating insurance companies.
By the mid-1950s, there were 154 Indian insurers, 16 foreign insurers, and
75 provident societies carry-ing on life insurance business in India.
Insurance business flourished and so did scams, irregularities, and dubious
investment practices by scores of companies. As a result, the government
decided to nationalise the life assurance business in India. The Life
Insurance Corporation of India (LIC) was set up in 1956 to take over 245
life companies. The nationalisation of life insurance was followed by
general insurance in 1972. The General Insurance Corporation of India and
its subsidiaries were set up in 1973. Most of the powers of the Controller of
Insurance were taken away and vested in state-owned LIC and GIC for
operational conven-ience. These nationalised companies enjoyed
monopoly for decades. They did a commendable job in extend-ing the
distribution network and successfully handled a large volume of business.
But with only 20 per cent of the population insured there was a vast
potential untapped. Besides, as a sequel to the reform process and to tap
the insurance sector as a source of long-term funds, the government
decided to introduce reforms in the insurance sector.

The Government set up, in 1993, a committee under the chairmanship of R

N Malhotra, the former insur-ance secretary and RBI governor to evaluate
the Indian insurance industry and recommend its future direction. This
committee submitted its report in 1994 and suggested the re-opening up
of the insurance sector to private players. This sector was finally thrown
open to the private sector in 2000. The Insurance Regulatory and
Development Authority (IRDA) was set up in 2000 as an autonomous
insurance regulator. The government has entrusted IRDA with the
responsibility for carrying out the reforms in this sector.

[12]
 OPENING UP OF THE INSURANCE SECTOR

The insurance industry till the nineties had only two nationalised players:
Life Insurance Corporation (LIC) and General Insurance Corporation (GIC)
and its four subsidiaries. These two players had a monopolistic control over
the market. These nationalised insurance companies did a commendable
job in terms of high growth in volume of business and reach. However, they
were not consumer oriented, unwilling to adopt mod-em practices and
technology to upgrade technical skills, and inefficient in operations. The
growth in volume was mainly driven by income-tax considerations and
hence a major portion of the vast rural area was untapped. Moreover, with
a population of more than one billion and savings rate of around 24 per
cent, India has a vast market, which is untapped. The foreign insurance
companies’ external influence and pressure to open up the Indian
insurance sector was high.

In 1993, the committee under the chairmanship of R N Malhotra, set up to

evaluate the Indian Insurance industry and recommend its future direction,
submitted its report in 1994 and its major recommendations revolved
around the structure and regulation of insurance industry. The main
recommendations were:

i. The government should bring down its stake in the insurance companies
to 50 per cent.

ii. Private companies with a minimum paid-up capital of Rs 100 crore

should be allowed to enter the industry.

iii. No single company should be allowed to transact business both life and
general insurance business. The number of entrants should be controlled.

iv. Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies. The committee did not favor foreign
companies operating in India through branches.

[13]
v. Postal Life Insurance should be allowed to operate in the rural markets.

vi. The mandatory investments of LIC Life Fund in government securities

need to be reduced from 75 per cent to 50 per cent.
vii. The GIC and its subsidiaries should not hold more than 5 per cent in
any company.

viii. The promoters’ holding in a private insurance company should not

exceed 40 per cent of the total. However, if the promoters wish to start with
a higher holding, they should be permitted to do so pro-vided their holding
is brought down to 40 per cent within a specified period of time through
public offering. No person other than the promoters should be allowed to
hold more than one per cent of the equity. Promoters should at no time hold
less than 26 per cent of the paid-up capital.

ix. Regulatory and prudential norms as well as conditions for ensuring

level-playing field among insurers should be finalised early so that
intending entrants into the insurance business would be aware of the
stipulations they would have to comply with. These conditions should aim
to ensure that life insurers do not neglect the small man or the rural
business and that the general insurers have balanced portfo-lios.

x. Though nationalised insurance companies are in a position to face

competition, it is essential that they quickly upgrade their technology,
reorganise themselves on more efficient lines, and are enabled to operate
as board-run enterprises.

xi. As an interim measure, the office of Controller of Insurance should be

restored its full functions under the Insurance Act and it should be set up as
a separate office as a matter of high priority.

xii. Legislation and government notifications through which LIC and GIC
were exempted from several provisions of the Insurance Act should be
withdrawn.

xiii. A strong and effective insurance regulatory authority in the form of a

statutory autonomous board on the lines of SEBI should be set up.

[14]
xiv. The state level cooperatives should be allowed to set up cooperative
societies for transacting life insurance business in the state. There will not
be more than one society for each state which will be subject to the
regulations of Insurance Regulatory Authority.

xv. GIC should cease to be the holding company for its subsidiaries and the
exclusive function of GIC should remain that of reinsurer.

xvi. When GIC ceases to be holding company of the four subsidiary

companies, then the government should acquire GIC’s stake, which is Rs
40 crore in every company. This share, then should be raised to Rs 100
crore for every company, the government holding 50 per cent and the rest
being held by the public at large. Recognising the global trend of
competitive, market driven, insurance industry and the recommendations of
the Malhotra Committee, the insurance industry was opened up in August
2000. There are at present 12 life insurance and 11 general insurance
companies operating in India with more players expected to come in. The
Insurance Regulatory and Development Authority (IRDA), constituted in
April 2000 under the IRDA Act, 1999, is vested with the power to regulate
and develop the insurance and reinsurance business.

Most of the foreign insurers have preferred to form joint ventures with
Indian companies. Banks, financial institutions, and non-banking finance
companies are permitted to enter the insurance sector. The Reserve Bank
has issued guidelines regulating the degree of participation of banks,
financial institutions and non-banking finance companies in the insurance
business depending on balance sheet strength. The Reserve Bank
accorded approval to five banks for joint ventures on risk participation basis
while 18 banks and a subsidiary of a bank were given ‘in principle’ approval
for agency business. The Reserve Bank has given permission to

a. five NBFCs to undertake insurance business as joint venture participants

b. one NBFC to engage in insurance agency business as well as to make

strategic investment in equity of an insurance company

c. two NBFCs to make only strategic investments

[15]
d. two NBFCs to undertake only insurance agency business.

The Insurance (Amendment) Act, 2002, has allowed cooperative societies

to carry on insurance business with a view to enhancing coverage in rural
areas. This Act deals in four broad areas, namely, broken regula-tion,
corporate agent regulations, section 64VB that deals in payments to be
made through credit card and internet, and section 49 that deals with the
distribution of actuarial surpluses between the shareholder and
policyholder. Corporate acting as corporate agents will have to surrender
their licence to be brokers, as there is a conflict of interest between two
parties. Banks will continue to be corporate agents and non-brokers. The
designated person, acting on behalf of the corporate agent (like a bank)
after leaving their jobs can be an agent without having to take further
exams mandated by the regulator. The amended insurance act would form
the future legal base for making the regulation on intermediaries.

[16]
 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

The Insurance Regulatory and Development Authority (IRDA) was

constituted as an autonomous body to regulate and develop the business
of insurance and re-insurance in India.The Authority was constituted on
April 19, 2000, vide Government of India’s notification No. 277.

The Insurance Regulatory and Development Authority Act, 1999, was

enacted by Parliament in the fifti-eth year of the Republic of India 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
(Nationalisation) Act, 1972. The Act was approved in the Parliament in
December 1999 and the insurance sector was thrown open for private
licensees on August 15, 2000. IRDA was constituted in terms of the
Insurance Regulatory and Development Authority Act, 1999, as the
regulator of the Indian Insurance industry.

IRDA was set up in 1996 but it was formally constituted as a regulator of

the insurance industry in April 2000. The regulator was initially known as
the Insurance Regulatory Authority but was subsequently rechristened as
Insurance Regulatory and Development Authority as it was provided that it
had a broader role to perform in the Indian insurance market. It has not
only to frame and issue statutory and regulatory stipulations, guidelines,
and clarification but it has also to perform a developmental and promotional
role. The developmental and promotional role of the regulator include
facilitating the growth of the market by attracting large number of players,
integrating of the insurance market with the domestic financial services
market, and synchronising the Indian Insurance market with that of global
insurance market. Thus, the objectives of IRDA are two fold: policyholder
protection and healthy growth of the insurance market.

[17]
 KEY MARKET INDICATORS

• Size of Market, Life and Non- Life:

$8 Billion a year

• Rate of Annual Growth :

Average of 20% for Life and 12% for Non-Life (1990-99)

• Geographical Restriction for New Players:

None. Players can operate all over the country.

• Equity Restriction in a New Indian Insurance Company :

Foreign promoter can hold up to 26%.

• Registration Restriction:
Composite Registration not available.

• Market Opening:
August 2000 with invitation for application for registration.

• Number of Registered Companies:

Type of Business Public Sector Private Sector Total

Life Insurance 01 12 13
General Insurance 04 09 13
Reinsurance 01 0 01
Total 06 21 27

• New Registration Awarded:

Twenty-one New Registrations issued:

[18]
• Life Insurance:

1. Allianz Bajaj Life Insurance Company Limited.

2. *Birla Sun-Life Insurance Company Limited.
3. *HDFC Standard Life Insurance Company Limited.
4. *ICICI Prudential Life Insurance Company Limited.
5. ING Vysya Life Insurance Company Limited.
6. *Max New York Life Insurance Company Limited.
7. Metlife Insurance Company Limited.
8. Om Kotak Mahindra Life Insurance Company Ltd.
9. *SBI Life Insurance Company Limited.
10. *TATA AIG Life Insurance Company Limited.
11. AMP SAN MAR Insurance Company Limited.
12. Dabur CGU Life Insurance Company Private Ltd.

• General Insurance

1. Bajaj Allianz General Insurance Company Limited.

2. ICICI Lombard General Insurance Company Ltd.
3. *IFFCO-Tokio General Insurance Company Ltd.
4. *Reliance General Insurance Company Limited.
5. *Royal Sundaram Alliance Insurance Company Ltd.
6. *TATA AIG General Insurance Company Limited.
7. Cholamandalam General Insurance Company Ltd.
8. Export Credit Guarantee Corporation Limited.
9. HDFC-Chubb General Insurance Company Limited.

• Business of New Players:

Expected to take up a market share of 4-5% in three years.

[19]
IRDA has a Chairman and four whole-time and four part-time members.
IRDA has constituted the insurance Advisory Committee and in consultation
with this committee has brought out seventeen regulations. A leading
consumer activist has also been inducted into the Insurance Advisory
Committee. In addition, representatives of consumers, industry, insurance
agents, women’s organisations, and other interest groups are a
part of this committee. It has also formed a Consumer Advisory Committee
and a Surveyor and Loss Assessors Committee. It has a panel of eligible
Chartered Accountants to carry out investigation, inspection, and so on.

IRDA has till 2001 issued seventeen regulations in the areas of registration
of insurers, their conduct of business, solvency margins, conduct of
reinsurance business, licensing, and code of conduct intermediaries. It
follows the practice of prior consultation and discussion with various
interest groups before issuing regulations and guidelines.’”

Mission Statement of IRDA

• To protect the interest of and secure fair treatment to policyholders.

• To bring about speedy and orderly growth of’ the insurance industry
(including annuity and superannuation payments) for the benefit of
the common man, and to provide long term funds for accelerating
growth of the economy.

• To set, promote, monitor, and enforce high standards of integrity,

financial soundness, fair dealing, and competence of those it
regulates.

• To ensure that insurance customers receive precise, clear, and

correct information about products and services and make them
aware of their responsibilities and duties in this regard.

[20]
 • To ensure speedy settlement of genuine claims, to prevent insurance
frauds, and other malpractices and put in place effective grievance
redressal machinery.

• To promote fairness, transparency, and orderly conduct in financial

markets dealing with insurance and to build a reliable management
information system to enforce high standards of financial soundness
amongst market players.

• To take action where such standards are inadequate or ineffectively

enforced.

• To bring about optimum amount of self-regulation in day to day

working of the industry, consistent with the requirements of prudential
regulation.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999, lays down the duties, powers, and functions
of IRDA

(1) Subject to the provisions of this Act and any other law for the time being
in force, the Authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-

section (1), the powers and functions of the Authority shall include,

(a) issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance;

[21]
(c) specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors;

(e) promoting efficiency in the conduct of insurance business;

(f) promoting and regulating professional organisations connected with the

insurance and re-insurance business;

(g) levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting

enquiries and investigations including audit of the insurers, intermediaries,
insurance intermediaries and other organisations connected with the
insurance business;

(i) control and regulation of the rates, advantages, terms and conditions
that may be offered by insurers in respect of general insurance business
not so controlled and regulated by the Tariff Advisory Committee under
section 64U of the Insurance Act, 1938 (4 of 1938);

(j) specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and
other insurance intermediaries;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and intermediaries or

insurance intermediaries;

(n) supervising the functioning of the Tariff Advisory Committee;

(o) specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organisations referred
to in clause (f);

[22]
(p) specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or social
sector; and

(q) exercising such other powers as may be prescribed

[23]
 Life Insurers

S.No NAME OF THE COMPANY NAME NAME TELEPHONE NO./FAX

OF PRINCIPAL OF APPOINTED No./E-MAIL & WEB
OFFICER ACTUARY ADDRESS

1. Bajaj Allianz Life Insurance Mr.Kamesh Mr. Anil Kumar Tel : 020-4026666
Company Limited . Goyal Singh Fax : 020-4026789
GE Plaza, Airport Road , .
YerawadaPune 411 006
2. Birla Sun Life Insurance Co. Mr. Vikram J. Mr. Fabien Jeudy Tel : 022 5678 3333
Ltd Mahmi Fax: 022 5678 3232
6th Floor, Vaman Centre,
Makhwana Road,
off Andheri-Kurla Road
, Andheri(E), MUMBAI-400
059.
3. HDFC Standard Life Mr.D.M. Mr. William John Tel : 022-67516666
Insurance Co. Ltd Satwalekar Martin Fax: 022-2822 8844
2nd Floor, Trade Star
Kondivita Junction
Andheri Kurla Road
Andheri East
Mumbai 400059
.
4. ICICI Prudential Life Ms. Shikha Mr. Avijit Tel :022-56621996
Insurance Co. Ltd Sharma Chatterjee Fax: 022-56622031
ICICI Prulife Towers , 1089,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400
025.
5. ING Vysya Life Insurance Mr.Kshitij Jain Ms. Hemamalini Tel : 080-25328000
Company Ltd. Ramakrishnan Fax: 080-25559764
ING Vysya Home, 5th Floor,
#22 Mahatma gandhi Road
Bangalore-560 001.
6. Life Insurance Corporation of Shri T S. Mr. T Bhargava Tel
India Yogakshema, Jeeva Vijayan 56598701;56598702
Bima Marg, Post Box No. Fax: 22824386

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 19953 MUMBAI 400 021 E-Mail ;
chairman@licindia.com
7. Max New York Life Insurance Mr. Gary R. Mr.John Charles Tel : 0124-2561717
Co. Ltd Benett Poole Fax: 0124-2561764
11th Floor, DLF Square ,
Jacaranda Marg, DLF City ,
Phase-II, GURGAON 122
002.
8. Met Life India Insurance Mr. Rajesh Mr. M S V S Tel : 080-26438638
Company Ltd. Relan Phanesh Fax: 080-26521970
Brigade Seshamahal, No. 5, Toll Free No. 1-600-44-
Vani Vilas Road , 6969
Basavanagudi, BANGALOR
E-560 004.
9. Kotak Mahindra Old Mutual Mr. Gaurang Mr. Bryce Leslie Tel : 022-6621 5999
Life Insurance Limited Shah Johns Fax:022-6621 5757,
6621 5858
9th Floor, Godrej Coliseum,
Behind Everard Nagar,
Sion (East),
MUMBAI-400 022..
10. SBI Life Insurance Co. Ltd Mr.Uday Sankar Mr. Sanjeev Tel : 022-56392000
Turner Morrison Building, 2nd Roy Kumar Pujari Fax: 022-56621471
Floor, 16, Bank Street, Fort
Mumbai-400 023.
11. Tata AIG Life Insurance Mr.Trevor Bull Mr. Heerak Basu Tel : 022-66516000
Company Limited Fax : 022-66550711
5th 7 6th Floor, Peninsula
Tower,
Peninsula Corporate Park
Ganpatrao Kadam Marg,
Lower Parel,
MUMBAI 400 013.
12 Reliance Life Insurance Mr. P Ms. Pournima Tel : 022-
Company Limited. Nandagopal Gupte 30479600/30479784
1st Floor, Mdas, Sahar Fax: 022-30479650
Plaza,Andheri Kurla Road,
Andheri East,
Mumbai 400059.

13 Aviva Life Insurance Mr. Albert Mr. Chandan Tel: 0124-270

Company India Limited Paterson Khasnobis 9000/01,

[25]
 Aviva Tower, Sector Road, Fax: 0124-270 9007.
Opposit Golf Course,
DLF-Phase V, Sector-43,
Gurgaon - 122 003

14 Sahara India Life Insurance Mr. N.C. Mr. K K Dharni Tel: 0522-2337777
Co, Ltd. Sharma Fax: 0522-2378200
Sahara India Bhawan,
Kopoorthala Complex,
Lucknow 226024

15 Shriram Life Insurance Co, Mr R Duruvasan Mr N S Sastry Tel: 040-23434466-72

Ltd. Fax: 040-23434488
Regd. Office : 3-6-478, 3rd
Floor, Anand Estate, Liberty
Road, Himayat Nagar,
Hyderabad - 500029

16 Bharti AXA Life Insurance Mr. Nitin Chopra Mr. G L N Sarma Tel: 022 –
Company Ltd. 40306300/6301
61/62, Kalpataru Synergy, Fax: 022 - 40306347
Vakola, Opp. Grand Hyatt
Hotel, Santacruz (E)
Mumbai – 400 055

17 Future Generali India Life Dr. Kim Chai Mr. Gorakhnath Tel No.:
Insurance Company Limited Ooi Agarwal 022-40976688

001, Trade Plaza, Ground Fax No.:

Floor, 022-40976868
414, Veer Sarvarkar Marg,
Prabhadevi, Mumbai 400
025

18 IDBI Fortis Life Insurance Mr. G.V. Mr. Michael J Tel No.:
Company Ltd., Nageswara Rao Wood 022-24908109/10

Tradeview, Fax No.:

Oasis Complex, Kamala City, 022-24941016

P.B. Marg, Lower Panel (W),

Mumbai-400 013
19 Canara HSBC Oriental Bank Mr. Harpal S. Mr. Paul Tel: 0124– 44215706

[26]
 of Commerce Life Insurance Karlcut Beresford Fax: 0124- 4201109
Company Ltd.

C/o. HSBC at Amsoft

Systems, Unitech Trade
Centre,
Sector-43, Sushant Lok-1,
Opp. Park Plaza Hotel,
Gurgaon-122 001

20 Aegon Religare Life Mr. K.S.

Insurance Company Limited. Gopalakrishnan
21 DLF Pramerica Life Mr. Pradeep
Insurance Co. Ltd. Kumar Thapliyal

[27]
 COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC

has since emerged as the largest residential mortgage finance institution in
the country The corporation has had a series of share issues raising its
capital to Rs. 119 crores. The 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.

HDFC operates through almost 450 locations throughout the country with
its corporate head quarters in Mumbai, India. HDFC also has an
International Office in Dubai, UAE, with service associates in Kuwait, Oman
and Qatar.
HDFC is the largest housing Company in India for the last 27 years.

SNAPSHOT-I

• Incorporated in 1977 as the first specialized mortgage company in India.

• Almost 90% of initial shareholding in the hands of domestic intuitions and
retail investors. Current 77% of shares held by foreign institutional
investors.
• Besides the core business of mortgage HDFC has evolved into a financial
conglomerate with holdings In:
• HDFC Standard Life insurance Company- HDFC holds 78.07 %.
• HDFC Asset Management Company – HDFC holds 50.1%

[28]
• HDFC Bank- HDFC holds 22.25%.
• Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.
• HDFC Chubb General Insurance Company – HDFC holds 74%.

SNAPSHOT-II

• Loan Approvals Rs. 805 billion.

(up to Dec 2004) (US $ 18.30 bn.)
• Loan Disbursements Rs.669 billion
(up to Dec. 2004) (US $ 15.20 bn)
• Housing Units Financed 2.5 million.
• Distribution
 Offices 181
 Outreach Programs 90

[29]
 KEY PLAYERS

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 (England & Wales).

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.

[30]
HDFC Group Companies

1. HDFC Limited
2. HDFC Bank
3. HDFC Asset Management Co. Limited
4. HDFC Securities Limited
5. HDFC Standard Life Insurance Company
6. Intelenet Global
7. CIBIL – Credit Information Bureau Investigation Ltd
8. HDFC Chubb General Insurance

[31]
 About HDFC, Standard Life & Joint Venture

STANDARD LIFE
Standard Life is Europe’s largest mutual life assurance company. Standard
Life, which has been in the life insurance business for the past 175 years is
a modern company surviving quite a few changes since selling its first
policy in 1825. The company expanded in the 19th century from kits original
Edinburgh premises, opening offices in other towns and acquitting other
similar businesses.

Standard Life Currently has assets exceeding over £ 70 billion under its
management and has the distinction of being accorded “AAA” rating
consequently for the six years by Standard and Poor.

SNAPSHOT

[32]
 • Founded in 1875, company supporting generation for last 179 years.
• Currently over 5 m. Policy holders benefiting from the services
offered.
• Europe’s largest mutual life insurer

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first
companies to be granted license by the IRDA to operate in life insurance
sector. Reach of the JV player is highly rated and been conferred with
many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly,
Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.
These reflect the efficiency with which HDFC and Standard Life manage
their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. Respectively.

[33]
HDFC Standard Life Insurance Company Ltd was incorporated on 14th
August 2000. HDFC is the majority stakeholder in the insurance JV with
81.4 %stale and Standard :of as a staple pf 18.6% Mr. Deepak Satwalekar
is the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of India’s leading
Private Life Insurance Companies., which offers a range of individual and
group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.) India’s leading
housing finance institution and the Standard Life Assurance Company, a
leading provider of financial services from the United Kingdom. Both the
promoters are will known for their ethical dealings and financial strength
and are thus committed to being a long-term player in the life insurance
industry- all important factors to consider when choosing your insurer.

[34]
 BUSINESS GROWTH
Track Record so far
The gross premium income of HDFC, 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. Company also declared our 5th consecutive bonus in as many years
for our ‘with profit’ policyholders.

Total
Growth –FY 05
250.00 Approvals
30%
197.15 Disbursements
28%
200.00
162.07
152.16
150.00 117.32 126.97
99.51
100.00

50.00
KEY STRENGTH
0.00
FY 03 FY 04 FY 05

LOANS APPROVED LOANS DISBURSED

LOAN APPROVALS AND DISBURSEMENTS

[35]
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.

Strong Ethical Values:

HDFC is an ethical and Cultural Organization. False selling or false
commitment with the customers is not allowed.

Most respected Private Insurance Company

HDFC was awarded No-1 Private Insurance Company In 2004 by the
World Class Magazine Business World. Integrity, Innovation and
Customer Care.

[36]
 HDFC Standard Life – Achievements
Inaugurated on 14th Aug 2000

First Private Life Insurance Co. to get license from IRDA

Customer Base of more than 10,00,000 customers

“Best New Insurer” Award from Outlook Money - 2003

“Most Respected Private Insurance Company” Award from

Business Word – 2004

“Intelligent Enterprise” Award from Technology Senate

First Private Life Insurance Co. to declare bonuses

Bonus Declaration for 6 consecutive years from inception

First Private Life Insurance Co. to introduce certification to sell Unit Linked
Policies

First to implement Need Based Selling in insurance

First Life Insurance Co. to introduce Fund with 100 % exposure to Equities

First Life Insurance Co. to offer 24 free switches to their Unit Linked
Policyholders

VISION of HDFCSL

The most successful and admired life insurance company, which means
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”

[37]
Values of HDFCSL

- Integrity - Innovation
- Customer Centric - People Care
- Team Work - Joy & Simplicity

KEY STRENGTHS

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. The company has a range of individual and group
solutions, which can be easily customised to specific needs. The group
solutions have been designed to offer complete flexibility combined with a
low charging structure.

HDFC Standard Life Insurance Company Limited is one of India's

leading private life insurance companies offering 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 Standard Life plc, the leading providers of
financial services in the United Kingdom. HDFC Ltd. as on December 31,
2007 holds 72.38 per cent of equity in the joint venture.

HDFC Standard Life's Product portfolio comprises solutions, which meet

various customer needs such as Protection, Pension, Savings, and
Investment. Customers have the added advantage of customizing the
Plans, by adding optional benefits called riders, at a nominal price. The
company currently has 21 retail and 6 group products in its portfolio. along
with five optional rider benefits catering to the savings, investment,
protection and retirement needs of customers.

HDFC Standard Life maintains very high professional standards during

product offerings by providing sound financial advice, efficient post-sale
service, and immaculate financial security. Ongoing training for
conventional products, and specialized training, for unit-linked products, for

[38]
its financial consultants, has also helped its customers choose the product,
best suited for their needs.

HDFC Standard Life operates across more than 726 cities and towns of
the country supported by its strong network of more than 1,45,000
Financial Consultants. HDFC Standard Life also has more than 383
corporate agents and other sales intermediaries including banks for
distribution of insurance products.

HDFC Standard Life continues to have one of the widest reaches among
new insurance companies. The company strengthened its number of
offices from 103 to 572 across the country in less than 3 years. Through
these offices, the company today services customer needs in over 730
cities and towns. The company also increased its depth in existing markets
by increasing its Financial Consultant strength from 74,000 as on March
31, 2007 to 1,44,000 as on March 31, 2008.

TRACK RECORD SO FAR

The cumulative premium income, including the first year premiums and
renewal premiums is Rs. 1532.21 Crores in FY 2005 - 06. The company
has covered over 1.6 million individuals, out of which over 5,00,000 lives
have been covered through their group business tie-ups. The company
also declared their 5th consecutive bonus in as many years for their
policyholders.

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.

Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this
growth to the quality of life insurance solutions offered by the company and
its increased geographical reach. He also emphasised, 'We believe that our
success is a result of our efforts in giving customers, the best long-term

[39]
solutions to take care of their insurance needs. Our endeavour to provide
high quality insurance and pension solutions to customers through quality
pre-sales advice, based on a sound need-based solutions approach, and
post-sales service has started to pay off.' Highlights of Financial Year 2007-
08New 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 FY2006-07Alternate 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 of 83% over
FY2006-07The average premium has increased to Rs. 33,000 Company
products and services are now available in 726 cities and towns across the
countryStrength of Financial Consultants has increased to 1,45,000.

HDFC Standard Life tracks its New Business Premium on the basis of
Effective Premium Income (EPI). EPI is calculated by giving only a 10%
value to a Single Premium policy and is an internationally accepted
indicator of an insurance company's performance. The total premium
income (including renewal premium) grew by 70% to touch a figure of Rs.
4,859 crores. High levels of persistency have resulted in higher level of
renewal premiums. Although there has been a slight dip from 89% to 86%,
we continue to have the highest persistency level in the industry. The
cumulative sum assured for all policies issued upto March 31, 2008
crossed Rs. 87,000 crores.

In offering unit linked products, the structured sales process adopted by the
company has paid rich dividends. 'We believe that we should be able to
lengthen the maturity profile of our policy portfolio, now that the regulatory
disincentive has been removed with effect from April 1, 2008,' added Mr.
Satwalekar. HDFC Standard Life offers, both, life insurance policies as well
as pension products on a unit linked platform as also the conventional 'with
profits' platform.

Over 50% of the sum assured as on March 31, 2008, is in respect of non
unit-linked policies. Over
30% of funds under management are in respect of non-linked business,
which reflects the balanced book between conventional and unit-linked

[40]
business in the total portfolio of the company.The company's national
relationships with large public and private sector banks have also helped it
reach out to a larger number of customers across the country. The
company plans to further strengthen these relationships through the
introduction of products specially designed for this channel.

HDFC Standard Life continues to have one of the widest reaches among
new insurance companies. The company strengthened its number of
offices from 103 to 572 across the country in less than 3 years. Through
these offices, the company today services customer needs in over 726
cities and towns. The company also increased its depth in existing markets
by increasing its Financial Consultant strength from 74,000 as on March
31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump
of 300% over the last 3 years in the number of its Financial Consultants
who have qualified to become members of the prestigious Million Dollar
Round Table (MDRT) Club. The strength of MDRT qualified members has
gone up to 496 as on December 31, 2007.

As against the regulatory requirement of writing 18% of all policies in rural

areas, HDFC Standard Life has issued over 217,000 policies accounting for
23% of all policies issued during 2007-08. Additionally, during 2007-08,
HDFC Standard Life has covered 51,326 lives under the social sector
category, as against the requirement of 25,000 lives. Overall, the company
has covered over 9,59,000 lives during the year ending March 31, 2008.

To meet the demands arising from the company's rapid growth,

shareholders have contributed additional Rs. 470 crores of equity to take
the paid-up share capital as on March 2008 to Rs. 1,271 crores.

[41]
 MAJOR PLAYERS IN INSURANCE INDUSTRY
LIFE INSURANCE CORPORATION

Life insurance made its debut in India well ob4er 100 years ago. Its salient
features are not as widely understood in our county, as they ought to be.
What follows is an attempt to acquaint readers with some of the concept of
life insurance, with special reference to LIC. It should, however, be clearly
understood that the following narration is by no means an exhaustive
description of terms and conditions of LIC policy or its benefits or privileges.
For more details, please contact our branch or divisional office. An LIC it
will be glad to help you choose the life insurance plan to meet your needs
and render policy servicing.

ICICI PRUDENTIAL

ICICI Prudential life insurance company is a joint venture between ICICI

bank, a premier financial powerhouse and prudential plc. A leading
international financial service group headquartered in the United Kingdom.
ICICI prudential was amongst the first private sector insurance company to
being operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA) . ICICI Prudential
equity base 74% and 26% stake respectively. In the period April-December
2004, the company garnered Rs. Billion of new business premium for a
total sum assured of over Rs 73.6 billion and wrote nearly 345000 policies.
The company has a network of over 50000 advisor; as well as 7
bank assurance tie-ups. Today, ICICI Prudential has emerged as the No -1

[42]
 Private Life insured in the country. With a wide range of flexible products
that meet the needs of the customer at every step in life.

BAJAJ ALLIANZ: SHARED VISION

A household name in India teams up with a global conglomerate… Bajaj
Auto Ltd, the flagship company of the Rs. 8000 corers Bajaj group is the
largest manufactured of two- wheelers and three-wheelers in Indian and
one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image and
locality synonymous with quality and customer focus. With over 15000
employees, the company is a Rs. 4000 crores auto giant. It is the largest
2/3 wheelers manufactured in India and the 4th in the world .AAA rated by
crises, Bajaj auto has in a operation for over 55 years. It has joined hands
with Allianz to provide the Indian consumer with a distance option in term
of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co.
Ltd. Bajaj auto has following to offer-
Financial strength and stability to support the Insurance Business.
A Strong brand-equity.
A good market reputation as a world class organization.
Adequate experience of r4unning a large organization.
A 10 million strong base of retail customers using Bajaj Products.

Product list of HDFC SLIC

[43]
List of Products/Riders with UIN's:

Remark
Financi Name of the Product/Rider s, if any,
al Year Name of Insurer Product/Rider UIN In operation by IRDA
From To
(opening (closing
date) date)
Products
HDFC Standard Life HDFC Endowment
2000-01 Insurance Co. Ltd. Assurance 101N001V01 12-Dec-00 13-Mar-02
HDFC Standard Life HDFC Endowment
2001-02 Insurance Co. Ltd. Assurance 101N001V02 13-Mar-02
HDFC Standard Life
2000-01 Insurance Co. Ltd. HDFC Money Back 101N002V01 12-Dec-00
HDFC Standard Life HDFC Development
2000-01 Insurance Co. Ltd. Insurance Plan 101N003V01 30-Mar-01 16-Feb-06
HDFC Standard Life HDFC Development
2005-06 Insurance Co. Ltd. Insurance Plan 101N003V02 16-Feb-06
HDFC Standard Life HDFC Single premium
2000-01 Insurance Co. Ltd. Whole of Life Insurance 101N004V01 30-Mar-01
HDFC Standard Life HDFC Group Term
2001-02 Insurance Co. Ltd. Insurance 101N005V01 7-Jun-01 6-Dec-06
HDFC Standard Life HDFC Group Term
2006-07 Insurance Co. Ltd. Insurance 101N005V02 6-Dec-06
HDFC Standard Life
2001-02 Insurance Co. Ltd. HDFC Protection Series 101N006V01 13-Sep-01 15-Mar-02
HDFC Standard Life
2001-02 Insurance Co. Ltd. HDFC Protection Series 101N006V02 15-Mar-02
HDFC Standard Life
2001-02 Insurance Co. Ltd. HDFC Immediate Annuity 101N007V01 31-Jan-02 21-Feb-07
HDFC Standard Life
2004-05 Insurance Co. Ltd. HDFC Immediate Annuity 101N007V02 21-Feb-07
HDFC Standard Life HDFC Personal Pension
2001-02 Insurance Co. Ltd. Plan 101N008V01 8-Feb-02
HDFC Standard Life HDFC Bima Bachat
2002-03 Insurance Co. Ltd. Yojana 101N009V01 27-Nov-02
HDFC Standard Life
2002-03 Insurance Co. Ltd. HDFC Children's Plan 101N010V01 14-Feb-03
HDFC Standard Life HDFC Group Unit Linked
2003-04 Insurance Co. Ltd. Plan 101L011V01 31-May-03 28-Mar-06

[44]
 HDFC Standard Life HDFC Group Unit Linked
2005-06 Insurance Co. Ltd. Plan Option A 101L011V02 28-Mar-06
HDFC Standard Life HDFC Deposit Insurance Withdraw
2003-04 Insurance Co. Ltd. Plan 101N012V01 19-Sep-03 28-Mar-05 n
HDFC Standard Life HDFC Home Loan
2003-04 Insurance Co. Ltd. Protection Plan 101N013V01 6-Oct-03 5-Aug-04
HDFC Standard Life HDFC Home Loan
2004-05 Insurance Co. Ltd. Protection Plan 101N013V02 5-Aug-04
HDFC Standard Life HDFC Savings Assurance
2003-04 Insurance Co. Ltd. Plan 101N014V01 23-Dec-03
HDFC Standard Life HDFC Unit Linked
2003-04 Insurance Co. Ltd. Endowment Plan 101L015V01 30-Dec-03 23-Jun-06
HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Endowment 101L015V02 23-Jun-06 1-Mar-08
HDFC Standard Life HDFC Unit Linked
2003-04 Insurance Co. Ltd. Pension Plan 101L016V01 30-Dec-03 26-Jun-06
HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Pension 101L016V02 26-Jun-06
HDFC Standard Life HDFC Leave Encashment
2003-04 Insurance Co. Ltd. Plan 101L017V01 29-Jan-04 1-Jul-06
HDFC Standard Life
2004-05 Insurance Co. Ltd. HDFC Assurance Plan 101N018V01 7-May-04
HDFC Standard Life HDFC Unit Linked Young
2004-05 Insurance Co. Ltd. Star Plan 101L019V01 21-Jun-04 22-Jun-06
HDFC Standard Life HDFC Unit Linked Young
2006-07 Insurance Co. Ltd. Star 101L019V02 22-Jun-06 1-Mar-08
HDFC Standard Life HDFC Group Flexible
2005-06 Insurance Co. Ltd. Term Insurance 101N020V01 23-Jun-05
HDFC Standard Life HDFC Group Variable
2005-06 Insurance Co. Ltd. Term Insurance 101N021V01 26-Dec-05
HDFC Standard Life HDFC Group Unit Linked
2005-06 Insurance Co. Ltd. Plan Option B 101L022V01 28-Mar-06
HDFC Standard Life HDFC Unit Linked Young
2006-07 Insurance Co. Ltd. Star Plus 101L023V01 22-Jun-06 1-Mar-08
HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Endowment Plus 101L024V01 23-Jun-06 1-Mar-08
HDFC Standard Life HDFC Unit Linked Young
2006-07 Insurance Co. Ltd. Star Suvidha 101L025V01 23-Jun-06
HDFC Standard Life HDFC Unit Linked Young
2006-07 Insurance Co. Ltd. Star Suvidha Plus 101L026V01 23-Jun-06
HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Endowment Suvidha 101L027V01 26-Jun-06

[45]
 HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Endowment Suvidha Plus 101L028V01 26-Jun-06
HDFC Standard Life HDFC Unit Linked
2006-07 Insurance Co. Ltd. Pension Plus 101L029V01 26-Jun-06
HDFC Unit Linked
HDFC Standard Life Enhanced Life Protection
2007-08 Insurance Co. Ltd. II 101L030V01 4-Feb-08
HDFC Standard Life HDFC Unit Linked
2007-08 Insurance Co. Ltd. Endowment Plus II 101L031V01 4-Feb-08
HDFC Standard Life HDFC Unit Linked
2007-08 Insurance Co. Ltd. YoungStar Plus II 101L032V01 5-Feb-08
Riders
HDFC Standard Life
2000-01 Insurance Co. Ltd. Accidental Death Benefit 101B001V01 12-Dec-0013-Sep-01
HDFC Standard Life
2001-02 Insurance Co. Ltd. Accidental Death Benefit 101B001V02 13-Sep-01
HDFC Standard Life Double Sum Assured
2000-01 Insurance Co. Ltd. Benefit 101B002V01 12-Dec-0013-Sep-01
HDFC Standard Life
2001-02 Insurance Co. Ltd. Additional Term Benefit 101B002V02 13-Sep-01
HDFC Standard Life Waiver of Premium
2000-01 Insurance Co. Ltd. Benefit 101B003V01 12-Dec-00
HDFC Standard Life
2000-01 Insurance Co. Ltd. Critical Illness Benefit 101B004V01 12-Dec-0013-Sep-01
HDFC Standard Life
2001-02 Insurance Co. Ltd. Critical Illness Benefit 101B004V02 13-Sep-01
Total and Partial
HDFC Standard Life Permanent Disability Group
2001-02 Insurance Co. Ltd. Benefit 101B005V01 27-Aug-01 6-Dec-06 Rider
Total and Partial
HDFC Standard Life Permanent Disability Group
2006-07 Insurance Co. Ltd. Benefit 101B005V02 6-Dec-06 Rider
HDFC Standard Life Total Permanent Disability Group
2001-02 Insurance Co. Ltd. Benefit 101B006V01 27-Aug-01 6-Dec-06 Rider
HDFC Standard Life Total Permanent Disability Group
2006-07 Insurance Co. Ltd. Benefit 101B006V02 6-Dec-06 Rider
HDFC Standard Life Group
2001-02 Insurance Co. Ltd. Critical Illness Benefit 101B007V01 27-Aug-01 6-Dec-06 Rider
HDFC Standard Life Group
2006-07 Insurance Co. Ltd. Critical Illness Benefit 101B007V02 6-Dec-06 Rider
HDFC Standard Life Group
2001-02 Insurance Co. Ltd. Accidental Death Benefit 101B008V01 27-Aug-01 6-Dec-06 Rider

[46]
 HDFC Standard Life Group
2006-07 Insurance Co. Ltd. Accident Death Benefit 101B008V02 6-Dec-06 Rider
HDFC Standard Life Group
2001-02 Insurance Co. Ltd. Terminal Illness Benefit 101B009V01 27-Aug-0119-Aug-03 Rider
Rider
has been
integrate
d into the
HDFC Standard Life main
2003-04 Insurance Co. Ltd. Terminal Illness Benefit 101B009V02 19-Aug-03 6-Dec-06 product
HDFC Standard Life Accelerated Sum Assured
2001-02 Insurance Co. Ltd. Benefit 101B010V01 13-Sep-01

[47]
PREMIUM UNDERWRITTEN BY LIFE INSURERS IN INDIA
2006-07
(Rs.In Crores)

First Year Renewal Single

Sl.No.Insurer Premium Premium Premium Total Premium
1 LIC 29886.35 71599.28 26337.22 127822.84
2 ING Vysya 440.30 239.54 27.36 707.20
3 HDFC Std.Lif 1316.44 1207.01 332.41 2855.87
4 Birla Sunlife 832.31 893.98 50.42 1776.71
5 ICICI Prulife 4370.61 2750.86 791.52 7912.99
6 Kotak Mahin 553.05 356.58 61.89 971.51
7 Tata AIG 567.84 722.36 76.98 1367.18
8 SBI Life 1717.57 364.64 846.27 2928.49
9 Bajaj Allianz 3084.67 1040.20 1185.12 5310.00
10 Max Newyork 750.51 588.17 161.60 1500.28
11 Metlife 329.04 152.27 11.40 492.71
12 Reliance Life 700.37 72.55 231.74 1004.66
13 Aviva 692.11 425.88 29.23 1147.23
14 Sahara 20.47 8.01 22.53 51.00
15 Shriram Life 89.53 3.00 92.62 185.15
16 Bharti AXA 7.77 - 0.01 7.78
Private Tota 15472.59 8825.06 3921.11 28218.75
Total 45358.93 80424.34 30258.32 156041.59

[48]
 Why HDFC is better …?
1. Investment returns: investment returns and business growth provided by

HDFC is validated by bajaj Capital report. HDFC pacify the need of

invertors up to healthy level and make the strong relationship with them.
2. Financial Background and Experience: HDFC existing in the market

since 1977. It has a very handsome experience in the field of finance

because it completely involved in finance Sector only where as the others
are running in many other field also like Reliance (Petroleum, Textile,
Telecom etc.)
3. Ethics and Values: HDFC is an ethical and cultural organization which

prevents the false selling and prohibit the false commitment to the
customer.
4. Sales Force: Properly trend licensed and Educated People are the
strength of the company. So that they could give the best customer service.
5. Huge branch network HDFC is having 450 branches in all over the country.
6. Online accessibility : It makes the process faster and make the customer

delighted.

[49]
7. HDFC Standard Life Insurance is the first private life insurance company

to be granted a license by IRDA

8. Rated by ‘Businessworld’ as ‘India’s Most Respected Private Life Insurance
Company’ in 2004
9. Has grown over 130% in the last year, with more than 8 lakh policyholders
10.Has one of the widest branch networks with offices in over 100 cities
servicing over 440 towns

Financial Consultant

Who can be the financial consultant?

Section 42(4) of the amended Insurance Act, 1938 states an agent to be
one who is not: A minor.
• Found to be sound mind by a court of competition jurisdiction.
• Found guilty of criminal background.
• Found guilty of having knowingly participated in or connived at any fraud
/dishonesty or misrepresentation against an insured.

Work of financial consultant:

The FC is the interface between the customer and insurance company. l

The agent should be able to accomplish the following service.
• Assessing and analyzing the clients risk profile.
• Finding the best product or products available in the market.

[50]
• Negotiating the best deal available.
• Continuity of service throughout the period of insurance.

Role of a Financial Consultant

1. Meet people and present service

2. Understand their financial need
3. Customizes life insurance plans
4. Provide efficient after- sales support
5. Helps customers protect their lifestyle, realize their dreams and enjoy their
lives

Opportunity to a Financial Consultant

â Realize their dream.

â Flexible work hours.
â 100% self -decide income.
â Financial Independence to live with self respect.
â Be your Boss.

Business Opportunity to a Financial Consultant

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Ensuring peace of mind and quality of life for the millions of people around
you.

Offers to a Financial Consultant

An exciting career that can change your life.

OBJECTIVE

Recruitment of Financial consultant (FCs) of a excellent profile and their

retention strategies and what are their benefit that company going to
provided for retention of their FCs.
(A) What type of people are we looking for ?
1- Committed people who have the drive, determination and ability to
become professional financial consultants.
2- Ability to sell a range of financial products.
(B) What do We Expect from financial Consultant ?
1- Devote a time and energy during training.
2- Sell at least 5 policies each month once after licensed with company.
3- We look forward to a long term mutually beneficial relationship.
(C) Why should financial consultant choose HDFC standard life ?
Brand value and the reputation of the partners (HDFC Limited) Market
leader in housing finance:

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 15 lakhs home financed.
11 lakhs retail deposits customer base.

 Reputation for providing the higher standards of customer service.

 Financial Strength of the partners.
 Brand value and the reputation of the partners standard life:
 175 years experience in life insurance.
 Largest mutual life insurer in Europe.
 Product innovation.

Strategies: Strategies Employed to achieve the target are as follows:-

 Telecalling
 Contacting the person directly (interview)
 Collect references.

Some important steps to make effective telecalling:-

Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.
State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the prospect.

Achievements:
Recruited eight financial consultants for company.

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Increase in confidence level.
Got the knowledge about, how to differentiate our product form that of LIC.
Made more and more people aware about my companies Products
(Policies)
Taken some appointments for policies and got positive response from 8
persons with the help of my BDM.

Limitations:-
So though the study aim to achieve the above mentioned Objective in full
earnest and accuracy, it may be hampered due to certain limitation. Some
of the limitations are as follows:

• To cover the various section for the society.

• Respondents may not be at home and may have to re-contacted or
replaced by others.
• Getting accurate response form the respondents due to their inherent
problem is difficult.
• Limited response from client.
• There is a time limitation it is not possible to study whole thing I
covered some special aspect as well as some topics.

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 RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain knowledge. A

research is carried out by different methodology, which has their own pros
and cons.
Research methodology is a way to solve research problem along with the
logic behind them. Thus when we talk of the research methodology we not
only take of research method but also context of our research study and
explain why we are using a particular method or techniques and why we
are not using other so that research result are capable of being evaluated
either by the researchers himself or by others.

Research methodology means the method carried out to study the problem
. It shows the type of the sample design used, its size and the procedure
used to dew sample. The extent of precision achieved and the method
used for handling any special problem during the course of the study.

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Research methodology has following steps:
Step: 1 To decide the objective of the study.
Step: 2 To design research design.
Step: 3 To determine the source of data.
Step: 4 To design data collection form.
Step: 5 To determine sample size and sample design.
Step: 6 To organize and conduct fieldwork.
Step: 7 To process and analyze the collected data.
Step: 8 To prepare the research report.

Explanation
Step: 1 To decide the objective of the study to be carried out.
 To study about HDFC Standard life.
 To find the prospective financial consultant for thee
company.
 To find retention strategies which provide to financial
consultant.
Step: 2 To decided the research design.
What is research design ?
Research design is a plan, structure, strategy of
investigation conceived so as to obtain answer to research question and
control variance. There are three types of research design system.
 Explanatory Research.
 Descriptive Research
 Casual Research.

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Among the above mentioned types descriptive research design has been
chosen. Descriptive research is to find ad efficient sales force, of FC. In
order the study the characteristics and variables, cross sectional analysis
was conducted by using field survey method . In the process of field
survey, a questionnaire was developed and circulated to the respondents,
which formed the basis for entire research.

Step: 3 To determine the source of data.

Data source are the data resources or collection of fresh and
data to obtain results. There are two types of data sources: thus happen to
be original in character.

Primary Data: Primary data is that which is collected fresh and thus
happen to be original in character.

Secondary data: Secondary data is any data, which have been

gathered earlier for some other purpose.
Among the above mentioned types of data was used for the study and
analysis of the objective of this project, Also the secondary to data proved
to be helping hand in framing up the industry scenario and also the relevant
topics in the entire project report.

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Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview
the professional, unemployed students, housewives, investment consultant,
post office agent and other in Bilaspur location. Analysis clearly reflected
the views and preference regarding the perception of the people towards
joining HDFC standard life.

Step 4: To design data collection.

There are two types of mode to collect the data:-
• Observation method.
• Survey method.
As for as the data collection method for this project is concerned, designing
the data collection forms or survey forms is applicable to the project. The
method selected survey method.
A survey can be conducted by:-
• Personal interview.
• Telephonic interview.
Amongst the above method personal interview method was conducted to
gather information in detail . this method was chosen because along with
the study of projects primary objective i.e. study of people and convince
them to join as FC for HDFC standard life.
Step 5 To determine sample design sample size.

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Sample size specification
155 which include professionals, unemployed student, Housewives,
investment consultant, post office agent.

FIELD METHODOLOGY
The methodology adopted in the field to collect the data represented
diagrammatically below:

Segmentation of People

Meeting with People

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Filling up questionnaire
and Schedule
 TABULATION AND ANALYSIS
In order to determine the willingness of the people to become FC for HDFC
SLIC in Bilaspur, data collected by surveying is treated as analysis.
Response to the parameter like professional, unemployed students,
housewives, investment consultant, post office agent.

Willingness to be FC for HDFC

Yes No Total
Professional 2 28 30
Working employees 2 33 35
House wives 2 18 20
Students 3 22 25
Investment 2 18 20
consultants
Post office agents 3 12 15
Others - - 10
Total 14 131 155

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 PROFESSIONALS

yes
No

Working Employees

yes
No

House wives

yes
No

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 Student

yes
No

Investment Consultant

yes
No

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Post Office Agent

yes
No

Total

yes
No

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 FINDINGS

1- Customers are less aware about the private insurance company in

market.
2- Some customer are like to join HDFC as FCs because it is a Part-
time.
3- Many professions like CA, tax planner want a corporate age3ncy
rather than to be a financial consultant.
4- HDFC is too selective in making a FC rather than to appoint any one
like LIC.
5- Customer don’t want to join as financial consultant because it’s on
commission basis the4y want job on salary basis.
6- Educated customers are now vending towards private insurance
Companies, due to the attractive packages and services provided by
various new insurance companies.
7- LIC has created a branded image in 3-4 decades, due to which new
insurance companies are facing trouble in capturing market share.
8- If the customers are joining HDFC the segment is more of tax
consultant, investment for consultant and other people who are
engaged in investment business that is because they want to
diversify their portfolio.
9- HDFC SLIC is having good retention strategies for their financial
consultant.
 Reason for not joining HDFC SLIC.
 Associated with an other company.

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 Do not have time
 Low sales.
 Private Player.
 Lack of awareness.

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 CONCLUSION
After collection of data interpretation is done on that basis conclusion is
drawn. The conclusion drawn.
Conclusion prefer government insurance company other than private
insurance companies due to its reliability.
Customers are more brand oriented rather than product oriented.
Customers are less aware about the private insurance companies.
Private Players in order to encase maximum number of customers are
introducing new and innovative scheme for their FC.
Customers like to invest in other investment zones due to the hectic rules
and regulations associated with, entering into a contract with insurance
companies.
Customers do not feel secure with private insurance companies.
Customers don’t want commission base job.
The central problem with the insurance companies is having that they are
trying to convince customers for a product which do not have any present
relevance, i.e. each policy which the customer is going to purchase will
have a future set of action and benefits. Due to which most of the people
like to invest in those securities or investment, which will give them a fruitful
return in short period of time ?
Life insurance Corporation has completed more than three
decades and that’s where counts, inters of brand name, different number of
policies for differed class and age group of customers.

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The Private players are on the way, but they need a lot of time investment
for creating a favorable brand image.

SUGGESTIONS

 Customers should be made aware of the brand name of Insurance

company through advertisement.

 The fear in the customer mind should be removed by company.

 The insurance companies should try to nurture their brand name

timely and attractive facility provide to customer.

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BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS FOLLOWS:

Financial consultant, the right way to start career:

As a financial consultant the role will be to identify prospective customer.
You will makes presentation, as to how you can help analyses their
financial needs, provide customize financial solution to cater to their
respective needs and conduct reviews on regular basis to keep customers
on thank.

Easy way to start on career:

Zero investment: There is no start-up capital. Be an own boss with a
flexible working environment, unlimited earning potential and the
opportunity to be part of world class sales team.

Flexible work timings, part time or full time: FCs can work
whenever he likes and from whereeve4r he like, FCs can work full time
depending on their convenience its like no other job however, the time.

Sunrise industry: Life insurance in India has a huge potential for

growth Statistics reveal that only 25% of the insurable population in India is
insured and those insured are in need of still higher insurance cover. The

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over 100% growth displayed by private life insurers indicates this hu7ge
untapped potential.

Strong Partnership:
A powerful brand – HDFC Standard Life Insurance:
We were the first private life insurance company to be granted a license by
IRDA.
We have been rated by business world magazine. As Indies most
respected private life insurance company 2004.
We have grown over 130% in the last and more than 8 Lakhs policy holder.
HDFC standard life insurance has one of the highest brand recall of around
80%
PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:
At HDFC standard training is an inherent element of our support system for
FCs. Some of our training and support initiative are as:
IRDA Training: Online training of 100 hrs. prepares for career as FCs and
enables to pass the IRDA examination. After the IRDA license, first step
towards a successful career as a FC.
Basic Training and Induction: Independence of work experience, this
training will give perfect knowledge about the insurance industry along with
comprehensive knowledge about the insurance along with comprehensive
knowledge abut HDFC SLIC Product.
Disha training: This is a professional sales skill program eased by us to
one selling skills. Those program enable to understand customer need and

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provide need based insurance solution.. A huge step from an amateur to a
true finance professional.
Advance Training: Once Fc have settled down as a FC professional we
will continuously upgrade capability and knowledge through sophisticated
training program, fit for this dynamic world of financial products and
markets.

UNMATCHED SUPPORT:
Marketing activity support to make task easier.
 Advertising and communication support throughout the year.
 Customer friendly broachers and sales aid to help in selling insurance
solutions to customers.
 24- hours information support, to help track the performance and
income.

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 QUESIONNARIRES:

Dear Respondent,
I am an MBA student doing a “HDFC standard life insurance
company”. I am carrying a study on “prospecting, Identifying, and
Recruiting certified financial consultant for HDFC SLIC-A ” study in Nerul,
Belapur, and Vashi City” in this regard I will like to spare some time to
answer few adjustment, This study is conducted for just academic purpose
having no commercial relevance.
Information provided by you will be confidential.

…………..

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 QUESTIONNAIRE
Q.1: Do you know about HDFC SLIC ?
Ans: (a) Yes (b) No
Q.2: Do you know about the working of financial Consultant of “HDFC
SLIC” ?
Ans: (a) Yes (b) No (c) Insufficient Information.
Q.3 Do you currently have an agency of any life insurance Company ?
Ans: (a) Yes (b) No
Q.4 What would be the size of your social contact base who knows you
on first name basis ?
(E.g : Friendly, family, relative, colleagues if any ………etc.)
Ans: Mention in appropriate nos.
Q.5 How many members of your family are dependent on the income
earner of the family ?
Q.6 Do you have an idea about financial market ?
Ans: (a) Yes (b) No
Q. 7 Do you have any sales experience ? If yes, how many years ?
Ans: (a) Yes (b) No
Q.8 Do you have experience in selling financial product ? e.g. credit card,
insurance etc ? If yes how many years ? (If yes to question 6)
Ans: (a) Yes ( ) (b) No ( )
Q. 9 What do you think ? in today’s scenario life insurance Is NEED,
WANT AND DEMAND ?

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Ans:

Q.10 In which of the financial market you have invested your money ?
Ans: (a) Share (b) Mutual fund (c) Insurance.
Q. 11 Are you interested in getting the opportunity of earning some
additional income as being financial consultant of “HDFC SLIC” and
why ?
Ans: (a) Yes (b) No

Your
Signature.

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 ABBREVIATIONS

1- HDFC- Housing Development Finance Corporation.

2- SLIC- Standard Life Insurance Company.
3- FC- Financial Consultant.
4- SDM- Sales Development Manager.
5- BDM- Business Development Manager.
6- CFC- Certified Financial Consultant.
7- LA- Life Assured.
8- SA- Sum Assured.
9- TERM- No. of Years.
10- ADB- Accidental Death Benefit.
11- CI- Critical Illness.

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 BIBLIOGRAPHY

Reference: To obtain more information regarding present study

and to subordinate it with theoretical proof following references
were made.

Books Referred:
 Personal management.
 Book of license training programmer for
insurance advisers.

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