SUMMER TRAINING PROJECT REPORT

ON

A STUDY OF RECRUITMENT IN HDFC LIFE

SUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION (2012-2013) OF GAUTAMA BUDDHA TECHNICAL UNIVERSITY, LUCKNOW
UNDER GUIDENCE OF: MR. NIPUN JOHRI SUBMITTED TO: Dr. Ritesh Saxena SUBMITTED BY: KARAN ARORA

Shri Siddhi Vinayak Institute Of Management And Technology

DECLARATION

I hereby declare that the summer training project report (MBA-0) entitled RECRUITMENT OF FINANCIAL CONSULTANT IN HDFC LIFE submitted for partial fulfillment the degree of MASTER OF BUSINESS ADMINISTRATION is my original work and the project report has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles it has not been submitted to any other university or institution for the award of any degree or diploma.

ACKNOWLEDGEMENT
Before write down anything about my project report I would like to thank all those people who helped me in the completion of this project. I am greatly obliged Mr. Nipun Johri (Channel Development Manager) for given me an opportunity to work in the organization. I express my sincere gratitude to who gave me an opportunity to complete my project report on RECRUITMENT PROCESS IN HDFC LIFE for his able guidance, continuous support and cooperation throughout my project, without them completion of project was not possible. I would also like to thank the entire team of HDFC LIFE, for the constant support and help in the successful completion of my project.

Also, I am thankful to my project guide Dr. Anant kumar srivastava for his continued guidance and invaluable

encouragement.

PREFACE

It gives me immense pleasure to present this research project to the readers. Readers will get this report interesting & easy to get true information.

It studies bins management system in depth. It describes the A study of recruitment and selection in HDFC LIFE. It describes the difference between HDFCSLIC. & other insurance companies, which are available in the market.

This report is self-exploratory and every possible effort has been taken to make it to the point informative.

I hope that this report provides sufficient information regarding my work on the project. I would consider my efforts to be fruitful if it proves useful to somebody at some later stage.

CONTENTS
About HDFCSLIC Ltd. About Standard Life Insurance About Standard Life Vision of HDFCSLIC Mission Statement of HDFCSLIC Future plans and values of HDFCSLIC About IRDA Brief overview of Indian Insurance Industry other Insurance Companies in India Board of Directors SWOT Analysis of HDFCSLIC Products Insurance the Basics Plans Research Methodology Research Design Analysis and Interpretation Findings Limitation Suggestion Questionnaire Bibliography

ABOUT HDFCSLIC Ltd.

HDFC Standard Life Insurance Company Ltd. Is one of Indias leading private 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), Indias leading housing finance institution and a group company of the Standard Life, UK The HDFC and Standard Life first together for a possible joint venture, to enter the Life Insurance Market, in January 1995.In October 1995 the companies signed a three year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC further strengthening the relation. In October 1998, the joint venture agreement was renewed and additional resource made available. Towards the end of 1999, the opening of market looked very promising and both companies agreed the time was right to move the operation to the next level. 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. On the 23rd of October 2000 HDFC Standard Life Company Limited was the only life insurance company to be granted a certificate of registration. HDFC are the main shareholder in HDFC Standard Life Company, with 81.4, while Standard Life own 18.6.

HDFCSLICS KEy StrEnGtHS

Financial Expertise Standard Life has the financial expertise required to manage customers long term investments safely and efficiently.

Range of Solutions Company has a range of individual and group solutions, which can be easily customized to specific needs. Companys group solutions have been designed to offer customers complete flexibility combined with a low charging structure.

Track Record so far HDFCSLIC cumulative premium income, including the first year premiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005-2006. Company have covered over 1.6 million individuals out of which over 5,00,000 lives have been covered through companys group business tie-ups.

ABOUT STANDARD LIFE INSURANCE

The Standard Life Insurance Assurance Company Founded in 1825 Mutual Life Insurance Company since 1925 Largest mutual life insurance company in Europe Assets under management over Rs 707836 crores ( 89.2 bn) Total assets under management : Rs. 707836 Crores New premium income 2003 :Rs. 76277 Crores AA2 rated by Standard & Poors and Moodys Financial Strengths of the company Total assets under management: Rs. 5, 81,000 Crores New premium income 2001:Rs. 58,000 Crores AA2 rated by Standard & Poors and Moodys

About Standard Life

Standard Life has been looking after its customers for over 180 years, and currently over 7 million people rely on them for their financial needs. We have assets under management which are worth more than the combined market value of Shell, Reuters, Tesco, Cadbury Schweppes and Marks & Spencer.

Financial Security
Standard Life has the financial strength to remain secure and competitive. We aim to offer products that provide competitive returns to their customers while maintaining an adequate level of financial strength to ensure their security. Like most people, you want to know that your financial future is in good hands. Standard Life places a great deal of importance on getting your money to work hard for you; that's why we believe you can have confidence in us. Standard Life has been awarded the "Raising Standards" quality mark. This shows that we: use clear language to describe their products on key documents, have appropriate products and Provide a quality service for our customers. The quality mark covers products bought by individuals including pensions, long-term savings and protection. We were independently tested against a number of rigorous standards. And we have to continue to pass these tests every year to keep using the quality mark.

Standard Life won the Money Marketing 'Company of the Year' award in March 2005 for the seventh year running. Other awards the Standard Life group has received include:

Money Marketing Awards

Company of the Year every year from 1999 to 2005 Best Pension Provider 2004 and 2005 Best Group Pension Provider every year from 1998 to 2003 Best Personal Pension Provider every year since 1998 to 2003 Best Life Investment Product Provider 2003 and 2004 Gold Award in the Poster Campaign Category (Advertising) 2004

Money facts Investment, Life & Pensions Awards

1. Best Pension Product 2003, 2004 and 2005 2. 2. Best Pension Service 2003, 2004 and 2005

Bank hall Achievement Awards

Pension Provider of the Year 2003 and 2004

Financial Adviser Provider Awards

A. Overall Winner in 1999, 2000, 2001 and 2002 B. Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003 C. Pensions Company of the Year 2004 D. Individual Pensions Company of the Year 2004 E. Group Pensions Provider of the Year 2004 F. Health Insurance Company of the Year 2004

Financial Adviser Service Awards

1. Company of the Year every year from 1997 to 2001 2. 5 Star Life and Pensions Provider every year from 1996 to 2004 3. 5 Star Investment Provider every year from 1996 to 2002 and 2004

Pensions Management Administration and Service Awards

(a) Overall Winner - Personal Pensions 2003 (b) Overall Winner - Stakeholder Pensions 2002 and 2003 (c) Overall Winner - Group Personal Pensions 2002 and 2004 (d) Member Communications - Personal Pensions, Group Personal Pensions & Stakeholder Pensions 2003 (e) Backup (branch office) - Personal Pensions 2003 (f) Backup (head office technical support) - Personal Pensions & Stakeholder Pensions 2003

Pensions Management Technology Awards

Best extranet accessibility 2004

Guardian & Observer Consumer Finance Awards

(a) Overall Winner in Personal & Stakeholder Pension Provider 2003

Professional Adviser Awards

Best Product Provider Website (adviser zone) 2005 Online Finance Awards Best online Product Provider (ifazone) 2003 Best online Financial Adviser (ifazone) 2002

Head Office - Edinburgh, Scotland (UK)

Presence

United Kingdom: 31 branches

Canada 11 " Ireland 7 " Germany 1 " Austria 1 sales office Spain 31 branch Hong Kong 1 representative office China 2 representative office

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Year Award
2003 Company of the Year

2002 Company of the Year 2001 Best Personal Pension Provider 2000 Company of the Year 1999 Company of the Decade 1996-99 Company of the year 1995 4 star service award 1992-94 Overall best company 1991 3 star service award 1990 Best mortgage services

About the group Companies of HDFC

HDFC HDFC Bank HDFC Mutual Funds HDFC Securities HDFC Realty.com Intel net Credit Information Bureau (India) Limited

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About Standard Life

The standard life group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health care needs. Its investment manager currently administers 125 billion assets It is a leading pensions provider in the UK, and is rated by Standard & poors as strong. Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pension peovider at the Financial Adviser Service Awards for the last 10 years running. The 5 Star accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the Best Flexible Mortgage Lender at the Mortgage Magazine Awards in 2006.

ABOUT HDFC STANDARD LIFE INSURANCE

HDFC Standard Life The Partnership:

HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3-year joint venture agreement. 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

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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. 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.

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. Our ambition from as far back as October 19954 was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this is the maximum investment allowed under current regulations.

Ethics SECURITY: Providing long term financial security to our policy holders will be our constant
endeavor. We will be doing this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policyholders in US. Hence, we will aim to manage
their investment 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. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this. Individual Products Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of products and invites you to choose the one that suits you best

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Saving Plans
Endowment Assurance Plan Unit Linked Endowment Plan Money Back Plan Childrens Plan Unit Linked Young star Plan

Investment Plans
Single Premium Whole of Life Plan

Protection Plans
Term Assurance Plan Loan Cover Term Assurance Plan

Pension Plan
Personal Pension Plan

Unit Linked Pension Plan

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Vision of HDFCSLIC Ltd.

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.

The most obvious choice for all.

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Mission statement of HDFCSLIC Ltd.

The company aim to be the top 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 services of the highest order. Value for money for customer. Professionalism in carrying out business. Innovative products to cater to different needs of different customer. Use of technology to improve service standard. Increasing market share.

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Future Plans of HDFCSLIC Ltd.

To enhance sales by increasing the number of Financial Consultant and corporate agents. The company is planning to decentralize its underwriting facility. To increase the branches to 500 across the India in upcoming years.

Values of HDFCSLIC

Integrity Innovation Customer centric People Care One for all and all for one. Team work Joy and Simplicity

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About IRDA
What is IRDA?
The IRDA Regulations, 2002 deals with the vast area of rights of the investors starting with the rights to obtain a copy of the proposal, the free look in period in respect of the life policies, a copy of the concluded policy to be furnished to the client and also the obligations of the insurance company regarding servicing and extending of the policy, payment of interest in case of delay settlement of the policy claims, etc. The regulations also prescribe a procedure for settlement of the grievances including the appointments of the Insurance Ombudsman at specific centers in India. In addition to this, the IRDA Act empowers the Authority to look into the settlement of the grievances and in cases where the poli cyholders approach the Authority directly; the Authority often intervenes with the insurers for the protection of their rights.

Notification
The Authority has been receiving in no. of letters from the members of the public and also from the client of insurance companies regarding the protection of the policies under the current regulations. Often time question are also raised about the credibility of the insurance companies in the private sector as to whether they will continue to function in India in the future also to discharge liabilities. The Authority has been taking steps to indicate to the general public that no company can carry on any business in India without being registered with the IRDA. The process of registration is very long and strict process where the credibility of he applicants is assessed in regard to their ability of continuing the business, their commitment to the Indian market and their financial strength. In addition, before the product is launched in the market by Insurance Companies the proposal of the product along-with the entire related document is to be filed with the Authority for the period of thirty days. The Authority makes sure from the proposal of the product filed with it that is the product is suitable for the Indian market and fulfills all the requirement of the market.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority

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The Authority is a ten members team consisting of 1. A Chairman; 2. Five whole-time members; 3. Four part-time members; (All appointed by the Government of India)

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 reinsurance business. (2) Without prejudice to the generality of the provision contained on sub-section (1), the powers and functions

Authority shall include

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such
registration. 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. Specifying requisite qualifications, code of conduct and practical training for intermediary of insurance intermediaries and agents. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Promoting and regulating professional organizations connected with the insurance and re-insurance business. Levying fees and other charges for carrying out the purposes of this Act. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other

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organizations connected with the insurance business. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business but so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938). 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. Regulating investment of funds by insurance companies. Regulating maintenance of margin of solvency. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. Supervising the functioning of the Tariff Advisory Committee. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f). Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural of social sector Exercising such other powers as may be prescribed.

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Brief overview of Indian Insurance Industry Other Insurance Companies in India

Aviva Bajaj Allianz Birla Sun Life ICICI Prudential Ing Vysya Life Insurance Corporation Max New York Life Melife India Om Kotak Mahindra Reliance Life Insurance SBI Life Insurance Tata AIG

AVIVA
Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva pioneered the concept of Banc assurance in India. Currently, Aviva has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank in Sikkim. Aviva has 40 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Aviva products are available in 378 towns and cities across India.

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Bajaj Allianz
Bajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.

Birla Sun Life Insurance Company Limited

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun Life Financials primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services organizations in the world. The Group has presence in several countries such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda.

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in the UK

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ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

ING Vysya
ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years. ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities) across the country and over 2300 employees.

MAX NEW YORK LIFE

Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multibusiness corporate, and New York Life International, a global expert in life insurance. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses. Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certifications. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India.

METLIFE INDIA
MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The Indian pars include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothutner. Met Life Group has presence in America and Asia and has an experience of over 137 years in providing financial services. The MetLife companies are the number one life insurer in the U.S.

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with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001.

Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956. LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore. In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and number of policies stands at 77% and 81%, respectively.

Om Kotak Mahindra Life Insurance

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. Old Mutual was established more than 150 years ago and offers a diverse range of financial services in South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization and has its headquarters in London.

Reliance Life Insurance

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more than 900 employees.

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SBI Life Insurance

SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 350 crores. State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860.

TATA AIG
Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.

HDFC Standard Life Insurance

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing finance institution and Standard Life Assurance Company, Europe's largest mutual life company. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. Standard Life, UK was founded in 1825 and has experience of over 180 years Companies. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2). HDFC Standard Life's cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far the company has covered over 11, 00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with profit' policyholders.

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BOARD OF DIRECTORS
Board of directors Brief profile of the Board of Directors
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. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee .

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Environmental Scan

Internal Analysis

External Analysis

Strength

Weakness

Opportunities

Threats

SWOT Matrix

SWOT Analysis of HDFCSLIC

Strength
Covered vast area High grade product Efficiency and effective Management Information On-line program control Improve customer orientation

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Weakness
Not optimum utilization of available resources Product promotion is not good The company cannot cash the opportunities

Opportunities
Available of lives and resource is sound The literacy regarding life insurance is increase by the government campaign.

Threats
Current per capital consumption of policies in India is far less than other countries High power tariff, increasing prices of administrating products have added to the woes of domestic industry competing with abroad enjoying advantage of economies of scale, advanced technology, low cost of finance, cheaper power tariff etc.

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Checklist for Performing Strengths/Weakness Analysis

Performance Major Minor streng streng th Th Marketing Company reputation Market share Customer satisfaction Customer retention Product quality Service quality Distribution effectiveness Promotion effectiveness Sales force effectiveness Geographical coverage Neu tral Major weak ness Minor weak ness

Importance High Medi um Low

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The products of HDFCSLIC

HDFC realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of products that you can choose from to suit all your needs. These will help secure your future of your family.

Protection plans: Term Assurance Plan Loan Cover Term Assurance Plan

Investment Plans:Single Premium Whole Life Plan

Pension Plan: Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus Plan

Saving Plans: Endowment Assurance Plan Unit Linked Endowment Plan Unit Linked Endowment Plus Plan Money Back Plan Childrens Plan Unit Linked Youngster Plan Unit Linked Youngster Plus Plan

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What is life Insurance?

Life insurance is a contract for payment of money to the person assured on the occurrence of the event insured against. Usually the contract provides forPayment of an amount on the date of maturity or at specified periodic intervals or at the death, if it occurs earlier, periodical payment of insurance premium by the assured, to the corporation who provides the insurance.

Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a valid contract, Subject to certain conditions, a policy can be taken on the life of a spouse or children.

What is a Whole Life Policy?

When most people think of life insurance, they think of a traditional whole life policy. These are the simplest policies to understand: you pay a fixed premium every year based on your age and other factors, you earn interest on the policys cash value as the y ears roll by, and your beneficiaries get a fixed benefit after you die. The policy takes you into old age for the same premium you started out with. Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. The surrender value gives you an extra source of retirement money if you need it.

What is an Endowment policy?

Unlike whole life, an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy. Endowment life insurance pays the face value of the policy either at the insureds death or at a certain age or after a number of years of premium payment. Endowment life insurance is a method of accumulating capital for a specific purpose and protecting this savings program against the servers premature death. Many investors use endowment life insurance to fund anticipated financial needs, such as college education or retirement.

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What is a Money Back Policy?

This is basically an endowment policy for which a part of the sum assured is paid to the policy holder in the form of survival benefits, at fixed intervals, before the maturity date. The risk cover on the life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum assured. If the policy holder survives till the end of the policy term, the survival benefits are deducted from the maturity value.

WHat IS LIFE InSuranCE?

Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during your contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased.

The primary purpose of life insurance is therefore protection of the family in the event of death. Today insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your childrens future needs. Today, the market offers insurance plans that not just cover your life and but at the same time grow your wealth too.

SCOPE OF INSURANCE

Why does Person need Life Insurance?

Life Insurance is designed to protect person and his family against financial uncertainties that may result due to unfortunate demise or illness. Person can also view it as a

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comprehensive financial instrument as a part of person financial planning offering you savings & investment facilities along with cover against financial loss. By choosing the right policy as per for persons self and there loved ones. Persons needs i.e. customized solutions; people will be able to plan for a secure future.

Choosing the right plan

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

Need for Life Insurance

Risks and uncertainties part of lifes great adventureaccident, illness, theft, natural disaster- they are all built into the working of the Universe, waiting to happen. Insurance then is mans answer to the vagaries of life. If you cannot beat man-made and natural calamities, well, at least be prepared for them and their aftermath. Insurance is a contract between two parties the insurer and the insured. Wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of premium. These unforeseen events are defined as risk and that is why insurance is called a risk cover. Hence, insurance is essentially the means to financially compensate for losses that life throws at people corporate and otherwise.

Analyzing Needs :-

Protection- Need for a sound income protection in case of persons unfortunate demise. Investment- Need to ensure long term real growth of persons money. Saving- Save for the milestones and protect persons savings too.

33

Pension- Need to save for a comfortable life post retirement.

Once person have analyzed their needs as per above classification, person need to then ascertain important factors such as type of cover, insurance amount as per ones income, life stage and dependents.

Roles of Life Insurance

Role 1: Life Insurance as Investment
Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantage as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy will come back to you with added returns. In the unfortunate events of death within the tenure of the policy, the family of the deceased will receive the sum assured. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

Role 2: Life insurance as Risk cover

Insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of policy.

34

Role 3: Life insurance as Tax planning

Insurance serves an excellent tax saving mechanism too. You will be eligible for tax benefits under section 80C and Section 10(10D) of the Income Tax Act 1961. Under Section 80C, you can save up to Rs. 33,600 from your tax each year as premiums up to Rs. 100,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits you receive from this policy are completely tax-free subject to the exclusions.

WHat IS tHE CHILDrEns Plan?

Childrens Plan is designed to provide a lump sum to the child as maturity. It also provides beneficial security to the child in the future, even in the case of insured parents unfortunate death during the policy term. Childrens Plan receives simple reversionary bonuses, which are usually added annually. This is the flexible plan with three options for consumer to choose from, depending on customer requirements. The details of these options are explained in the next section.

Exclusions:No benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. HDFC SLIC will not pay health benefits if the critical illness has occurred within 6 months of the start of the contract. HDFC SLIC may not pay health benefits if HDFC SLIC does not receive a duly completed claim from within 26 weeks of the illness, disability, operation or other circumstances giving rise to the claim. HDFC SLIC will not pay health benefits if the critical illness is caused directly or indirectly.

EXCLUSIONS
The following exclusions applies. HDFC SLIC will not pay any benefit if the death of the life assured has occurred directly or indirectly as a result of suicide within one year of the date of commencement or the date of issue, if later and the policy will lapse without any value.

35

What is Unit Linked Young Plan?

HDFC SLIC future of customer child is most important to him/her. Customer need to plan today to ensure a bright future for customer child, whenever it is education, marriage or establishing a professional career. To help customer save for customer child, HDFC SLIC at HDFC Standard Life, present the HDFC Unit Linked Young Star Plan. The plan is affordable, customized to customer needs and above all, enables customer to realize its dreams for customer child. This plan is HDFC SLIC well suited for the value conscious customer, and above all, for every loving parent. The plan can also be chosen by grandparents, other relatives or any adult for the benefit of the child.

What is Unit Linked Young Star Plan?

HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parents unfortunate death during the policy term. The Unit Linked Young Star Plan also gives the option of additional protection against the six common critical illness. Customer premiums are invested in units of the investment funds of customer choice, based on prevailing unit prices. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity. Minimum Age at Entry Maximum Age at Entry Maximum Age at Maturity 18 years 60 years 75 years

What are customers premiums?

Minimum Term: 10 years Maximum Term: 25 years

Customers agree to pay a level premium regularly, either quarterly, half-yearly or annually, throughout the term of the policy.

36

What are the payment options?

Customers have the choice of paying the premium either in yearly, half yearly or quarterly modes, depending on consumers convenience. The minimum premium amount is Rs. 10,000 each year.

Can consumer switch my monies to any fund?

Customer can switch customer existing investments from customer any of customer unit linked funds, to any other available unit linked fund. The death benefit will pay the basic sum assured on death of the life assured during the policy term. Following payment of this benefit, no further premiums are due from the policy holder. Premium redirection instruction to redirect future premiums to different unit linked funds.

Life and health option

This option consists of a Maturity benefit, a Death Benefit and an extra Health Benefit.

What are the Benefits?

The Maturity Benefit will pay the value of the unit linked fund at the end of the policy term. The Death Benefit will pay the basic Sum Assured on death of the life assured during the policy term. Following payment of this benefit, no further premiums are due from the policyholder and the Extra Health Benefit will lapse without value. The Extra Health Benefit will pay the basic sum assured on diagnosis of anyone of six critical illnesses during the policy term. Following payment of this benefit, no further premiums are due from the policyholder and Death Benefit will lapse without value. The illness covered under this benefit are cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke.

37

What levels of protection are available?

Depending on customer age at entry, customer may choose between 3 levels cover low, medium or high. For each level the Sum Assured is based on the annual amount of premium customer choose at inception. The level of sum assured can be reduced during the life of the contract but restricted to the available multiples of annual premium chosen at the inception of the policy and using the age of the life assured at entry. Here are 2 different options available:

Life Option
This option consists of a Maturity Benefit and a Death Benefit. The Maturity Benefit will pay the value of the unit-linked fund at the end of the policy term.

Is customer eligible? Minimum Term Life Option Life and Health Option 10 Maximum Term 25 Minimum Maximum Maximum Age at Age at Age at Entry Expiry Entry 18 60 75

10

25

18

55

65

Can customer alter the level of premiums?

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Regular premiums can be increased at any time. If needed, the policy holder can reduce the regular premium levels (even to zero i.e. the policy is converted to pay up status) provided: 3 years of regular premiums have been paid. The monetary value of the unit holding across all funds is at least Rs 15,000. Customer can pay additional single premium top-up at any point of time.

What happens if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund have after applying additional surrender charges mentioned below.

What happens if customer stops paying premiums?

This product has a grace period of 15 days for the payment of each premium after the initial premium. If customer stop paying premiums, before customer have paid 3 years of annual premiums, HDFC SLIC will cancel customer policy and return to customer the value of customer unitized fund, less cancellation charges.

Who is entitled for the benefits?

The child is beneficiary under the policy in case the child is a minor, the proceeds should go to the appointee. Once the child attains 18 years of age, he will be the sole person entitled to the policy proceeds.

Challenges
HDFC SLIC will deduct charges from the policy to cover HDFC SLIC costs. The unit price each day will include a fund management charge. This charge is 0.80% of the fund value per annum taken on a daily basis. A flat fee of Rs 15 per month will be deducted by cancellation of units on each monthly charge date. This will be proportioned across funds according to the fund holdings at the time of cancelation of units.

39

Alteration to Challenges
No changes can be made to HDFC SLIC current charges without prior approval from the Insurance Registery and Development Authority. The following are the maximum caps on each of the different type of charges: The fund management charge will not exceed 2% per annum. The flat fee can be altered from the value at inception increased in line with inflation subject to a maximum of 5% per annum over the period since inception.

Exclusions
No benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. HDFC SLIC will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the start of the contract. HDFC SLIC may not pay Extra Health Benefits if HDFC SLIC do not receive a dully completed claim from within 26 weeks of the illness, disability, operation or other circumstances giving rise to the claim.

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What is Money Back Plan?

It is a participating (with profits) insurance plan that offers the following features: 0 payment of cash lump sums, each of which is a population of the basic sum assured, at 5-year intervals during the term of the policy. On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions the cash lump sums paid earlier is provided. less

In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided.

Why should customer buy this product?

This plan helps customer plan for future anticipated expenses by paying periodic cash lump sums to customer at regular intervals. This plan also helps provide for the needs of customer family in its absence by paying them the basic sum assured plus any bonus additions in the event of its unfortunate death during the term of the policy.

What optional benefits are available with this plan?

The sum assured is payable if customer survive for 30 days after the date of claim. Once such a claim has been met, no further critical illness benefit is payable. However, customer basic policy continues even after HDFC SLIC pays a claim on this benefit. Accidental Death Benefit (ADB) provides an additional amount equal to the basic sum assured in case customer die: Due to an accident, and Within 90 days of the accident.

Is consumer eligible?
This plan can be taken on a single life basis or a joint life (first claim) basis.

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What are the payment options?

Customers have the choice of paying customer premium either in yearly or quarterly modes, depending on customer convenience.

Who is HDFC SLIC?

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC, Indias largest ho using finance institution and Standard Life Assurance Company, Europes largest mutual life company. HDFC manages Rs.28,000 crore in assets and Standard Life manages US $ 100 billion in assets. Both the promoters are HDFC SLIC known for their ethical dealings, their financial strength and their commitment to be a long ten player in the life insurance industry all important factors to consider when choosing customer insurer.

Whom should customer contact?

HDFC SLIC has appointed Certified Financial Consultants who have successfully appeared in the examination held by the Insurance Institute of India and have now been duly licensed by IRDA. They will explain HDFC SLIC palns to customer and advise customer on the correct insurance solution that will meet customer needs.

Exclusions
The following exclusions applies:

Critical illness benefit

HDFC SLIC will not pay critical illness benefit if it is caused directly or indirectly from any of the following: 1. Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition. 2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practice holder.

42

Accidental Death Benefit

HDFC SLIC will not pay Accidental Death Benefit if death is caused directly or indirectly from any of the following: 1. Suicide within one year of the date of commencement or the date of issue of the policy, iflater. 2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practice holder. 3. Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to by us in writing. 4. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. 5. Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft.

What is a Single Premium Whole of Life Insurance Plan?

Single Premium Whole of Life Insurance Plan is HDFC SLIC well suited to meet Customer long term investment needs. This participating (with profits) plan offers Customer the following benefits: A sound investment: Customer money will be invested in HDFC SLIC with profits fund. The fund aims to provide secure and stable long term growth. Normally, HDFC SLIC will declare a compound reversionary bonus for customer policy every year and add it to customer policy on its anniversary. In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. Customers pay a single premium and the policy will pay customer a lump sum. Flexibility of term: Even after choosing customer policy, customer can decide on the policy term. For 4 weeks after anyone of the 10th , 15th , 20th , and subsequent five-year anniversaries, customer can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received. Customer policy will cease.

Surrender value: Customer can terminate the policy any time, after it has been in force for at least 6
months, and receive a surrender value.

43

In case of unfortunate death: Customer nominee gets the sum assured secured by customer
premium, plus any attaching bonuses.

No medical requirements: HDFC SLIC do not require customer to undergo any medical test for this
plan.

Is Customer eligible?
The eligibility ages are as follows: Minimum age at entry Maximum age at entry 18 years 70 years

Customer can buy the product on a single life basis.

What are the payment options?

A single premium can be paid by cash, cheque or demand draft.

What are the risk factors?

Any surrender value payable is at HDFC SLIC discretion. It will reflect HDFC SLIC performance over the term of customer policy. It may go up or down. Future bonuses are dependent on HDFC SLIC future experience. If any of the information provided by customer is incorrect, HDFC SLIC reserve the right to vary any benefits which may be payable. Further, if there has been non-disclosure of a material fact, then HDFC SLIC may treat customer policy as void.

44

What is a Term Assurance Plan?

Under this plan a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. Since this nonparticipating (without profits) plan is pure risk cover plan, no benefits are payable no survival to the end of the term of the policy.

Why should customer buy this product?

If customers have a family that he/she care for, it should consider what would happen in case of its unfortunate death. The imotional void can not be filled , but financial insecurity can be avoided. By taking this affordable life insurance plan, customer can provide for the HDFC SLIC well-being of customer family in case of its unfortunate death. This plan comes to customer at a minimal cost and is HDFC SLIC well-suited for the value conscious customer.

What optional benefits are available with this plan?

Customer can add the following optional benefit to customize customer policy to suit customer needs: Critical illness Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illness. The sum assured is payable if customer survive for 30 days after the date of the claim. once such a claim has been met, no further Critical Illness Benefit is payable. However, customer basic policy continues even after HDFC SLIC pays a claim on this benefit. Accidental Death Benefit provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of customer unfortunate death: Due to an accident, and Within 90 days of the accident.

Is customer eligible?
This plan can be taken on a single life basis or a joint life basis .

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What are the payment options?

Customer have the choice of paying customer premium either in yearly, half-yearly or quarterly modes, or of paying a single one-time premium, depending on customer convenience.

EXCLUSIONS:
The following exclusions apply: Term assurance plan: HDFC SLIC shall not be liable to pay the benefit amount indicated in customer policy schedule if the death of life assured or the death of the first to die of the lives assured is caused directly or indirectly by suicide within one year of the date of commencement, or the date of issue of the policy, if later. Critical Illness Benefit: HDFC SLIC will not pay Critical Illness Benefit if it is caused directly or indirectly from any of the following: 1. Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition. 2. Alcohol or solvent abuse, or the taking of the drugs except under the direction of a registered medical practice holder. 3. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion. 4. Taking part in any flying activity, other than as a pasenger in a commercially licensed aircraft. 5. Taking part in any act of a criminal nature. 6. Pregnancy or child birth or complications arising there form. Accidental Death Benefit: HDFC SLIC will not pay Accidental Death Benefit if death is caused directly or indirectly from any of the following: 1. Suicide within one year of the date of commencement or the date of issue of the policy, if later. 2. Alcohol or solvent abuse, or taking of drugs except under the direction of a registered medical practice holder. 3. Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to by us in writing.

46

What is a Loan Cover Term Assurance Plan?

This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

Why should the customer buy this product?

If customers are taking a loan to buy a house for his/her family, this plan can help him to ensure that lifes uncertainties do not affect their shelter. It is an affordable plan that has been designed to help customer family repay the outstanding loan in case of customer unfortunate death.

Is customer eligible?
This plan can be taken on a single life basis or a joint life basis.

What are the payment options?

Customer have the choice of paying customer premium either in yearly, half-yearly or quarterly modes, or of paying a single one-time premium, depending on customer convenience.

47

What is Personal Pension Plan?

Before customer enter into any financial contract, it is important that customer understand what the product is, how it works, the risks involved and what a decision to buy could mean for customer. HDFC SLIC recommends that customer read this document before purchasing a policy from HDFC Standard Life Insurance Company.

Purpose: The policy is basically a savings contract, which is designed to provide an income for life from
retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is permitted by the prevailing regulations.

Customer commitment: Customer agree to pay a single premium or level premiums with
installments due every quarter, half-year or year throughout the deferment period of the policy, after which customer will start receiving its pension.

Risk Factors: If customer ceases to pay premiums HDFC SLIC may pay a surrender value. This will be
determined at company discreation. If any of the information which customer provide is incorrect, company reserve the right to vary the benefits which may be payable and, further, if there has been nondisclosure of a material fact then HDFC SLIC may treat customer policy as void. HDFC SLIC WILL not pay out if a claim arises from the excluded cause of death. Future bonuses are not guaranteed. They are dependent on HDFC SLIC future experience. The principal elements of experience are HDFC SLIC investment performance and expenses.

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Plans Savings Plans:Endowment Assurance Plan Unit Linked Endowment Plan Childrens Plan Unit Linked Young Star Plan Money Back Plan

Benefits
Life Insurance with Savings Life Insurance and Savings with choice of Investment Funds. Financial Security for your child. Financial Security for your child with choice of investment funds. Life Insurance with Savings. Investment with Life Insurance.

Investment Plans:Single Premium Whole Life Plan

Protection Plans:Term Assurance Plan Lone Cover Term Assurance Plan Life insurance at an affordable price. Life Insurance customized for home loans.

Retirement Plans:Personal Pension Plan Unit Linked Pension Plan Savings for Retirement Retirement savings investment funds. with a choice of

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Commission Structure for the Financial Consultants:

Type of plan Endowment assurance plan Money back plan Term assurance plan Loan cover term assurance plan Personal pension plan Unit linked endowment assurance plan Unit linked pension plan

First policy year

25% 25% 20% 20% 7.5% 12.5%

Subsequent policy years

5% 5% 5% 5% 2% 4%

7.5%

1%

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51

RESEARCH METHODOLOGY
The topic of this project is

RECRUITMENT OF FINANCIAL CONSULTANTS

FOR HDFC STANDARD LIFE INSURANCE L.T.D.

Research in common parlance refers to a search for knowledge. The success of any formal financial research

project is sound research methodology. A research design purely and simply the framework or plan for a study that guides the collection and analysis of the data. In the research methodology we evaluate that why we have chosen the particular method.

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

52

Step 1: -To decide the objective of the study Research Objective

Provide better Financial Consultants in HDFC. Study the recruitment process of Financial Consultants in HDFC and provide some suggestion for betterment.

Step 2:- To design the Research Design Research Design

An advance planning of the method to be adopted for collecting the relevant data and the technique to be used in their analysis, keeping in view the objective of the research and the availability of the staff, time and money. Some collection and analysis of data. Research Design is some statement or specification of procedures for collecting and analyzing the information required for the solution of some specific problems. It provides scientific framework for conducting research investigation. Anticipating and specification are the main characteristics in a research design. It provides the information for decision making. Decision regarding what, where, when, and how much and by what means concerning an enquiry as a research study constitutes in research design.

Descriptive Research
A descriptive study determinates who, what, when, where and how of a topic. Descriptive study may employ any of the methods of data collection such as interview, questionnaire , observation etc.in the descriptive study the researcher must be careful to make a note that may creep in at every stage of the study formulating the objective of the study, designing the methods of data collection, selecting the sample, collecting processing and analyzing the data and reporting the findings

53

Data Source Research Approach Sampling Technique Research Instrumet Contact Method

Primary Data, Survey Method Random Sampling Questionnaire Technique Personal Interviews done through questionnaire.

Step 3:- To determine the source of the dataData Collection

Research entails the use of immediate data in determining the survival of the market. The popular ways to collect primary data consist of surveys, interviews and focus groups, which shows that direct relationship between potential customers and the companies. . Whereas secondary data is to reprocess and reuse collected information as an indication for betterments of the service or product.

Data Collection Method

My project was to approach people who had the ambition and will to be effective financial consultants. I used both primary as well as secondary data.

Primary Data:Primary data may be described as those data that have been observed and recorded by the researchers for the first time to their knowledge. The primary data was obtained through direct communication with the prospects and filling up of questionnaires.

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Secondary Data:Secondary data are those data which have been already collected and analyzed by some earlier agency
for its own use, and later the same data are used by a different agency. The secondary data was collected through the : Internet

Step 4:- To design the data collection methodFor this project I have chosen survey method, in which my concentration was on Personal Interview Questionnaire technique

Data Collection Instrument Questionnaire:Questionnaire is a list of questions to be asked from the respondents. It also contains a suitable space where the answers can be recorded. A semi-structured kind of questionnaire was designed which contains open ended, close-ended and multiple-choice questions.

Procedure
I have been given complete freedom to operate. I have done personal interviews through questionnaire technique. The aim of the present study was to know about recruitment process in HDFCSLIC Ltd.

55

56

DATA ANALYSIS
TABULATION SHEET (SAMPLE SIZE-100)

Marital Status Type of Occupation Gender

Married
47

Unmarried
5

Student
29

unemployed Services
2 34

Other
35

Male
80

Female
20

Qualification Intermediate Graduate 13 18-25 years

37

Age

53 25-35 years
42

Postgraduate 34 35-45 years Above 45

13 8

57

RESPONDANTs GENDER
FEMALE

20
MALE

80

PERCENTAGE RATIO OF GENDER

20%

female male

80%

58

RESPONDANTs MARITAL STATUS

MARRIED

47
UNMARRIED

53

PERCENTAGE RATIO OF MARITAL STATUS

MARRIED

47% 53%
UNMARRIED

59

RESPONDANTs AGE
18 - 25

37
25 - 35 42 35 - 45 13

45 ABOVE
8

PERCENTAGE RATIO OF AGE

8% 13% 37% 18 - 25 25 - 35 35 - 45 45 ABOVE 42%

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RESPONDANTs OCCUPATION
STUDENTS

29
SERVICE

34
UNEMPLOYED

2
OTHERS

35

PERCENTAGE RATIO OF OCCUPATION

35%

29% STUDENTS SERVICE UNEMPLOYED OTHERS

2% 34%

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RESPONDANTs QUALIFICATION
INTERMEDIATE

13
GRADUATE

53
POST GRADUATE

34

PERCENTAGE RATIO OF QUALIFICATION

13% INTERMEDIATE 53% GRADUATE POST GRADUATE

34%

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FINDINGS
Some persons are ready for the job of Financial Consultant. Some persons refuses because of he could not pay the I.R.D.A. training fees. The image of selling policies is very bad in the mind of peoples. No body wants to do a commission based job. Persons who are doing their jobs they have no time to do I.R.D.A. training. Most of the villagers do not have pan cards. 2 persons came to the bank but they are not satisfied with the information provided to them. Recruiting a financial consultant is more of marketing rather than HR job because like a marketer you have to convince him to do this job by showing them profits and benefits working in the organization.

63

LIMITATIONS
The research was carried out in a short span of time where the researcher could not study wider. Hence 100% accuracy cannot be assured. Respondents are less knowledgeable. Not focusing or not listen carefully our questions, they just reply or give answer in a hypothetical bases. The image of selling policies in the minds of the respondents. Respondents in students are more. Some people dont want to participate in the survey.

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SUGGESTIONS
It should not be only a commission based job. It should be a salary based job. Training fees should be affordable to the pocket of peoples. Documents for registration should be only :4 Passport Size Photograph Statement of bank passbook ID can be Ration Card and For qualification should be the last qualified examination proof. Pan card should not be necessary.

Some people who are from village they have not enough documents. There should be some more facilities for higher degree eligible persons.

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QUESTIONNAIRE
Sir, I am MANVI MISHRA student of M.B.A. 3rd semester at SHRI SIDDHI VINAYAK INSTITUTE OF MANAGEMENT Bareilly. I am working on a project with the topic of A STUDY OF RECRUITMENT IN HDFC SLIC under the guidance of Mr. Nipun Johri (Channel Development Manager). I want to know your kind option in this regard.

RESPONDENT PERSONAL INFORMATION

Question.1 Name of the respondent ................

Question .2 Gender Male ( ) Female ( )

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Question.3 QualificationHigh school ( Graduate ( ) ) Intermediate ( Post Graduate ( )

)

Question.4 Age 18-25 35-45 ( ( ) ) 25-35 ( Above 45 ( ) )

Question.5 OccupationStudent ( Business ( ) ) Service ( Other ( ) )

Question.6 Mobile No. ............................................

QUESTIONS FOR RECRUITMENT

Question.1: Do you know about INSURANCE? a). yes b). No

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Question.2: Do you know about IRDA? a). yes b). No

Question.3: Do you know about HDFC standard life insurance corporation? a). yes b). No

Question.4: Do you know about FINANCIAL CONSULTANT? a). yes b). No

Question.5: In which category do you belong? a). Student b). Unemployed

c). Serviceman

d). Others(specify)

Question.6: Do you want to earn part time along with your profession?

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a). yes

b). No

Question.7: Are you satisfied with the above description? a). yes b). No

Question.8: Would you like to join HDFC standard life as financial consultant? a). yes b). No

Question.9: Do you think that insurance is necessary for any individual? a). yes b). No

Question.10: Other reference:-

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CONCLUSIONS
This presents the summary of the study and survey done in relation to the recruitment of Fcs in HDFC Standard life insurance. The conclusion is drawn from the study and survey of the company regarding the Recruitment process carried out there. Financial consultant is bound by the terms of appointment of the insurer and is expected to procure business for the insurer. it is not a job that he has to do at fixed hours, in prescribed ways and under close supervision. He is an independent professional. He is the master of his time. Fcs see the agency as a means to supplement their earnings. They work as a part time on insurance, being busy on other work the rest of the time. Some try to study and understand the business in great details and to improve their skills. They would be recognized as experts in the field. There are many agents, who started as part-time and then became whole-time agents, leaving their other secure jobs. As a financial consultant of the insurer, the life insurance consultant is expected to obtain life insurance business and contribute to the revenues of the insurer. He is also

70

depended upon to bring in business that would be profitable. He is in touch with the person is insured . The life insurance agent, has to think about the interests of the prospect which may be met by schemes other than life insurance. To be able to advise the prospect on the best financial arrangements appropriate to his situation, the agent needs to be familiar with the alternatives available in the market.

BIBLOGRAPHY

www.hdfclife.com www.google.com www.irda.org

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72