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ON
DEVELOPING A CHAIN OF ADVISOR WITH SPECIAL REFERENCE TO HDFC
STANDARD LIFE INSURANCE COMPANY
Submitted by:
Ms. ABCD
Rasna Sharma
Assistant Professor
FIMT
BBA(GEN)5th semester
CONTENT
Acknowledgment
Certificate
Student Decleration
Chapter 1: Rationale for the study
Chapter 2: objective of the study
Title of the project
Objective of the study
Scope of study
ACKNOWLEDGEMENT
It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise god for all the blessings, which carried me through
all those years. I am thankful to Director R.K.Garg, FIMTfor providing me an opportunity to
gain both theoretical and practical knowledge in the field of Insurance and extending their full
support.
First and foremost, I would like to express my regards to Ms. XYZ for her constant
encouragement and support and for providing the invaluable knowledge, guidance,
encouragement extended during the completion of this project. I would also like to thank my
faculty for sharing with me the valuable inputs. Im also grateful to my college library, computer
facility and all those who I might not have mentioned, though not intentionally, without their
support this project would not have been possible.
Last but not the least,I am grateful to my parents, my sister, my brother, my friends and all wellwishers for their moral support and encouragement during the entire period of time.
CERTIFICATE
3
This is to certify that the project entitled Developing a chain of advisor with special reference
to HDFC STANDARD life insurance company in HDFC is an academic work done by
Rasna Sharma submitted in the partial fulfillment of the requirement for the award of the
Degree of Bachelor of Business Administration from Fairfield Institute of Management
and Technology, New Delhiunder my guidance and direction. To the best of my knowledge
and belief the data and information presented by him/her in the project has not been submitted
earlier.
STUDENT DECLARATION
I hereby declare that the project entitled Developing a chain of advisor with special reference
to HDFC STANDARD life Insurance company under the guidance of Ms. xxxxxxxx,
4
Assistant Professor FIMT submitted in the partial fulfillment of degree of Bachelor of Business
Administration (Banking and Insurance) from Fairfield Institute of Management and
Technology, New Delhi. This is my original work and this project work has not formed the
basis for the award of any Degree to the best of my knowledge.
Rasna Sharma
Roll no: 10990101711
[Signature of student]
Place:Delhi
Date:
Chapter-1
Chapter-2
of the company and to understand how does channel development work for
insurance company.
The following are primary objective of study:
To have complete knowledge of life insurance.
To make a chain of consultant of company.
To understand what channel development is and to understand how does he
work.
To understand the importance of channel development.
To know the role of financial consultant in life insurance industry.
To understand the functioning of life insurance industry.
To know the origin and history of life insurance companies.
To gain experience in different environment with different people.
So, the persons those who could bear this responsibility are constantly searched by
the insurance company. The main purpose of this study was to make a chain of
financial consultants so as to enhance marketing channel.
Secondly, the motive behind this study of mine was to have practical knowledge of
recruitment by adopting various kinds of strategies and to learn new things.
EXECUTIVE SUMMARY
Executive summary
As in current scenario when there are so many players in life insurance sector, each
is having tough competition with other. Each company is opting best possible
strategy to spread its wings and attracting customer towards it by providing
uninterrupted services.
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HDFC Standard Life Insurance is also giving better services to its customers
through the channel of financial consultant. My project was to recruit financial
consultants. First of all I was explained about the importance of a financial
consultant in the company, their functions and then, how and where to find them.
My study included the follow-up of procedures used for the recruitment of an
insurance advisor who can sell the products of the company. For this I performed
market research by using various kinds of activities like meeting persons
individually in the market, convincing people by tele-calling and through canopy
activity to join HDFC as a financial consultant. I had to introduce them with the
benefits of becoming a financial consultant and if they agree for it then doing their
further documentation.
I conducted my research in Gurgaon and Delhi the areas close to it to know the
public response and conducting analysis part. I got questionnaires filled with
various customers to know their opinion and awareness about insurance sector.
This study gave me immense opportunity to enhance my inter-personal skills and
to have practical exposure of dealing with the customer directly. It was a delighting
experience to engage myself in this summer internship because it taught me the
ways of approaching and convincing the customer and finally recruiting them for
the organisation in which I worked.
Finally, interesting conclusions were drawn from the collected data.
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Chapter-3
Profile of Company
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INDUSTRY PROFILE
Incorporated in 1977 as a public limited company
To specialize in provision of housing finance to individuals, co-operative
societies & the corporate sector
First private sector retail housing finance company
HDFC is listed on both BSE and NSE
Market capitalization (June 2007) - Rs. 95 billion (US $ 1.6 bn)
COMPANY PROFILE
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Company Name:
Indian Partner:
HDFC Bank
Foreign Partner:
Equity Ratio:
74:26
Life Insurance
Placement Consultancies
COMPANY PROFILE
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Introduction
Helping Indians experience the joy of home ownership.
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).
Background of company
HDFC was incorporated in 1977 with the primary objective of meeting a social
need - that of promoting home ownership by providing long-term finance to
households for their housing needs. HDFC was promoted with an initial share
capital of Rs. 100 million.
Business Objectives
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Organizational Goals
HDFC's main goals are to :
a) Develop close relationships with individual households,
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions,
d) Provide consistently high returns to shareholders, and
e) To grow through diversification by leveraging off the existing client base.
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HDFC Founder
MAN WITH A MISSION
If ever there was a man with a mission it was Hasmukhbhai Parekh, our
Founder and Chairman-Emeritus, who left this earthly abode on November
18, 1994.
Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his
financial career at Harkisandass Lukhmidass - a leading stock broking firm.
The firm closed down in the late seventies, but, long before that, he went on
to become a towering figure on the Indian financial scene.
In 1956 he began his lifelong financial affair with the economic world, as
General Manager of the newly-formed Industrial Credit and Investment
Corporation of India (ICICI). He rose to become Chairman and continued so
till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even
more illustrious than his first. His vision for mortgage finance for housing,
gave birth to the Housing Development Finance Corporation - it was a
trend-setter for housing finance in the whole Asian continent.
He was a true development banker. His building up HDFC without any
government assistance is itself a brilliant chapter in financial history. His
wisdom and warmth drew people from all walks of life to him, for advice,
guidance and inspiration.
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He was also a writer in his own right. There are over 200 published articles
by him, full of incisive comments on finance and economics. In 1953 he
brought out a volume called: The Bombay Money Market. It detailed the
intricate working of the Indian money market. His works in Gujarati Hirane Patro, Hirane Vadhu Patro - occupy pride of place in Gujarati
literature. In 1992, the Government of India honoured him with the Padma
Bhushan Award. The London School of Economics & Political.
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HDFC Bank
HDFC Reality
INTEGRITY
What is it?
Honest and Truthful in every action.
Transparency
Stick to principles irrespective of outcome.
Be just and fair to everyone.
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Why?
Integrity is the bedrock on which the company and the expectations of
the customer and employees are built.
Integrity establishes the creditability of the person defines the
character and empowers one to do justice to the job.
Enables building confidence and trust, achieving transparency and
laying a strong foundation for building relationship.
Guiding principle for all walks of life.
.
CUSTOMER CENTRIC
What is it?
Understand his expectation by keeping him as the centre point.
Listen actively.
Understand customer needs and deliver solution.
Customer interest always supreme.
Why?
Reinforce brand loyalty by complete transparency.
Customer is the source of revenue for the company.
Customer is the reason for our existence.
Ensure that customer chooses our company to do business with.
Customers goodwill alone can bring more business and more
customers.
Will contribute retention.
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PEOPLE CARE
What is it?
Genuinely understanding the people we work with.
Guiding their development trough training and support.
Helping them develop requisite skills to reach their true potential.
TEAM WORK
What is it?
Whole team takes the ownership of the deliverables.
Consult all involved, understand and arrive at a common objective.
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Key Strengths
Financial expertise
As a joint venture of leading financial services groups, HDFC Standard Life
has the financial expertise required to manage your long-term investments
safely and efficiently.
Range of Solutions
HDFC 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.
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HDFCs gross premium income, for the year ending March 31, 2008 stood
at Rs. 4,859 crores and new business premium income stood at Rs. 2,685
crores.
The company has covered over 9, 59,000 lives year ending March 31, 2008.
Protection Plans :
You can protect your family against the loss of your income or the burden of
a loan in the event of your unfortunate demise, disability or sickness. These
plans offer valuable peace of mind at a small price Term Assurance Plan
Loan Cover Term
Assurance Plan
Investment Plans:
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HDFCs plan is well suited to meet your long term investment needs. We
provide you with attractive long term returns through regular bonuses.
Single Premium Whole Life Plan
Pension Plans:
HDFCs Pension Plans help you secure your financial independence even
after retirement.
Savings Plans:
HDFCs Savings Plans offer you flexible options to build savings for your
future needs such as buying a dream home or fulfilling your childrens
immediate and future needs.
Unit Linked Young star Plus
Endowment Assurance Plan
Unit Linked Endowment
Unit Linked Endowment Plus
Money Back Plan
Children's Plan
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GROUP PRODUCTS
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most innovative
employee benefit solutions to their employees. We offer different products
for different needs of employers ranging from term insurance plans for pure
protection to voluntary plans such as superannuation and leave encashment
Group Term Insurance
Group Variable Term Insurance
Group Unit Linked Plan
OTHER PRODUCTS
Rural Products
The premium payment options available to the customers vary from online
payment to direct desk payments at the HDFC Standard Life Branches, by
courier services or in drop boxes provided. You can also pay by ECS or
Automatic Debit System or credit cards or standing instruction mandate.
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Zero investment.
There is no start-up. You have unlimited earning potential.
Sunrise industry.
Only 25% of the insurable population in India is insured. And, those insured
need higher insurance cover.
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IRDA Training
Prepares you for your career as a financial consultant and enables you to
pass the IRDA examination easily.
Disha Training
Hones you selling skills, enables you to understand customer needs and
provide need-based insurance solutions.
Advanced Training
Upgrades your capability and knowledge through sophisticated training programs
customized for the changing world of financial products and markets.
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Decide your own salary amount. Your income is directly proportional to the
effort put in by you. The more you sell, the more you earn. And our commission
structure (as per IRDA guidelines) has the ability to give you the maximum
benefits for every policy you sell.
Regular income
The company pays the commission you earn every 15 days. This ensures
that you get a regular income when you associate with us.
Strengths
Localized branches.
Weaknesses
More individuality in staff than conformity with the companys goal.
Lack of advertising material in some areas of region.
Focusing on bulk orders rather than small ones.
Opportunities
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Threats
Loosing market share due to inefficient workforce.
Decline in the market reputation due to ineffective & delaying.
Heavy investment.
COMPANYS MISSION:
To be the top life insurance company in the Insurance market.
This not only means being the largest or the most productive company
in the market, but a combination of several things like-
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THE PARTNERSHIP:
35
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.
Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship.
In October 1998, the joint venture agreement was renewed and additional
resource made available. Around this time Standard Life purchased 2% of
Infrastructure Development Finance Company Ltd. (IDFC). Standard Life
also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising
and both companies agreed the time was right to move the operation to the
next level.
MARKET POSITION
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COMPETITOR PROFILING
Main competitors of HDFC SLIC
LIFE INSURANCE CORPORATION OF INDIA (LIC)
The Life Insurance Corporation (LIC) was established about 52 years ago
with a view to provide an insurance cover against various risks in life. A
monolith then, the corporation, enjoyed a monopoly status and became
synonymous with life insurance.
Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches
and over six-lakh agency force.
At the industry level, along with the Government and the GIC, it has helped
establish the National Insurance Academy. It presently transacts individual
life insurance businesses, group insurance businesses, social security
schemes and pensions, grants housing loans through its subsidiary; and
markets savings and investment products through its mutual fund. It pays off
about Rs 6,000 crore annually to 5.6 million policyholders.
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Commission Structure:
Depends on the plan or the product / policy which the advisor sells to the
customer. Every policy has a commission amount fixed on it as per
specifications of IRDA.
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40
ICICI PRUDENTIAL
ICICI Limited is a multi-business corporation that has business interests
in telecom services, bulk pharmaceuticals, electronic components and
specialty products. It is also the service-oriented businesses of healthcare,
life insurance and information technology.
Commission Structure:
Minimum - 2%
Maximum 40%.
Varies from product to product- 25%, 7.5%, 10% & 15%.
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statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems
to the insurance sector and in particular the life insurance companies was the
launch of the IRDAs online service for issue and renewal of licenses to
agents. Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations.
MISSION-IRDA
To protect the interests of the policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters connected
therewith or incidental thereto.
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Insurance
Basically, life insurance is nothing but a contract where the insured party or
the purchaser of insurance pays a premium that protects him against specific
losses. When planning ones life insurance portfolio, one must consider his
family's recurring needs like medical expenses, house rent, provision costs
for instance as well as long-term needs that involve family's set standard of
living and their future such as higher education and marriages.
Throughout our living existence, we are faced by numerous risks - failing
health, financial losses, accidents and even fatalities. Insurance addresses all
these uncertainties on financial terms.
Whatever kind of asset a person posses, remains productive for a certain
period of time. Its life to provide benefits is restricted to a short span and
when this span finishes, its capability to give benefits also ends. The owner
is aware of this fact, he arranges a substitute of it so that in case, if asset gets
damaged the benefits of it do not go futile. For instance, a person gets lost
his car in an accident; he is deprived of the benefits if any substitute of it is
not available. In such cases, insurance is the key to protect the person from
the losses incurred and reduce its ill effects. Insurance promises to pay an
assured sum to the owner to reduce the losses.
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We think twice before taking the plunge into buying insurance. Is buying
insurance a necessity now? Spending an 'extra' amount as premium at
regular intervals where we do not see immediate benefits does not seem a
necessity at the moment. May be later.
Well we could be wrong. Buying Insurance cannot be compared with any
other form of investment. Insurance gives us a life long benefit and the
returns will definitely come but only when we need it the most i.e. at the
right time. Besides buying insurance early in life is one of the wise decisions
we could take. Because the premium we would be paying would be
comparatively lower.
Insurance is not about how much more it can offer us when the stock market
is at its peak. It may not be an attractive investment option. But weigh the
pros and cons and consider how much more it offers at a small price.
Most important of all it provides us with that unique sense of security that
no other form of investment provides. It gives us a sense of financial support
especially during that time of crisis irrespective of the fluctuations in the
stock market. Insurance provides for our career goals right from your
childhood years.
If the earning member of the family is no more our child's educational needs
will not suffer. In fact his higher education too will be provided for. We need
not spend sleepless nights thinking about how to save for our child's
marriage. Life Insurance will take care of that typical once-in-a-life-time
spending on marriages.
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Chapter-4
REVIEW OF LITERATURE
My Contribution in HDFC SLIC as a project trainee
The task of mine was to make a chain of quality insurance advisors for the
company to enhance its marketing channel. It included the use of different kinds of
strategies to convince the persons to join the company. Activities were
a.) cold calling, in this I used to call people on the data provided by my SDM and
telling them the benefits of being a financial advisor.
b.) meeting people face to face and convincing them to be a financial consultant.
c.) taking part in the canopy activity conducted by the company for the extension
of chain of insurance advisors.
For convincing the person I had to provide him the detailed information of the
benefits of becoming an insurance advisor, discussion of the current reputation of
HDFC as a brand and the reasons for joining HDFC only. I used to tell them from
the side of company thatWe are partners in your growth and provides you1. Attractive payments and benefits
2. Strong reputation
3. High quality Management Support
4 Superior Products
5. Excellent customer service
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After giving all this information I used to raise their confidence by saying them
that they have the potential to perform the duty of a financial consultant and make
use of the opportunity to-
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50
Firs year commission for conventional plans (for policies issued on or after 21 st
Name of the plan
plan
Money back plan
Childrens plan
Term assurance plan
Loan
cover
term
25%
25%
20%
20%
20%
20%
15%
15%
7.5%
7.5%
assurance plan
Personal pension plan
march 2007)
25%
7.5%
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Chapter-5
RESEARCH METHODOLOGY
The term methodology refers to the way to systematically solve the research
problem. In this various steps are followed to find the solution of the problem.
Certain steps are :1.) Identification of problem
2.) Analysis of problem
3.) Choosing the method to solve the problem
4.) Collection of data
5.) Analysis of data
6.) Conclusion
Research Objective
To make a chain of financial advisors so that they can work as insurance advisor
for the HDFC Standard Life Insurance Limited.
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Type of Research
Exploratory in natureType of research was exploratory in nature because the study included the tapping
of different areas to find the suitable financial advisor for the company.
Data Collection
Primary data
Secondary data
PRIMARY DATA
Sample unit: The research process was done by interacting with number of customers during the
activities performed, which included, markets, cold calling, canopies, etc. Sample
Design consists of Simple Random Sampling.
Sample size: - 100 people
Method of collection: Field procedure for gathering primary data included interview schedule in which
the questionnaires were filed by the interviewer.
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Research Instrument:
Questionnaire
The questionnaire was formulated by keep in mind the following Points: Giving the respondents clear comprehension of the question.
Inducing the respondents to co-operate.
Giving instructions as to what is wanted.
Identifying the needs to be known.
Limitations:
The following were the limitations that were there during the course of the study:
1. Limited time period.
2. Less number of respondents.
3. Biasness of the respondents.
SECONDARY DATA
Method of collection data:Secondary data was collected from the various second hand data collection
sources like, magazines provided by HDFC Standard Life Insurance Company,
Secondary data was also provided by company executives, from Internet,
Companies annual report etc.
Sources of secondary data:Magazines,
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Newspapers,
www.google.com (Internet search engines)
And the data provided by the external guide.
56
Chapter-6
Data analysis and Interpretation
Data Analysis is done by taking sample size of 100 respondents who were
approached for being financial advisor for the company. It has been shown
with the help of following graphical presentation.
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1. Occupation
Occupation
Govt.
Private
Student
Other
Total
No. of people
%
25
30
25
20
100
25
30
25
20
Error:
Reference
source not
found
Interpretation:25% people are in govt. job.
30% people are in private job.
The percentage of students is 25%.
20% people are engaged in other kinds of jobs.
2. Marital status
No. of
Married people %
Yes
65
65
No
35
35
Interpretation:-
58
No. of
Card
Yes
No
persons %
60
60
40
40
4. Household income
Household
income
No. of respondents
.>2 lakhs
2 to 4 lakhs
< 4 lakhs
48%
30%
22%
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5. Job satisfaction
Job
satisfaction %
yes
55%
No
45%
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Interpretation:Out of 100 people, 10% people know persons between0 to 40, 27% says that
they know 40 to 80 persons and 63 % are familiar with more than 80 persons.
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No. of
Chance to earn extra income respondents %
Yes
88
88
No
12
12
Interpretation:88% respondents would like to earn extra while rest 12 % were not bothered to
earn extra income.
Income
No. of
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people
> 50,000
50,000 to
45
45
2lakhs
< 2 lakhs
36
19
36
19
Interpretation:The percentage of people is 45, those who would like to earn more than
50,0000.
36% people would like to earn between 50,000 to 2 lakhs and the intensity to
earn more than 2 lakhs is possessed by 19 % people.
63
No. of
extra income
< 4 hours
2 to 4 hours
> 2 hours
respondents %
36
36
52
52
12
12
Interpretation:36 % respondents could devote more than 2 hours, 52% could give their 2 to 4
hours and the capacity to give more than 4 hours is possessed by 36%.
Chapter-7
FINDINGS
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INSURANCE SECTOR:-
65
HFDC SLIC :-
66
Chapter-8
Limitation of project
marketing
aspects
of
the
Financial
67
Chapter-9
Suggestions
Try to make them aware as much as possible regarding product profile
which is best in the market like life time, life time pension and smart kids.
Convince them by saying that we also have an evening class or on
line training program so that; that person can easily afford this time.
If the person will make one policy he/she will be able to earn that
much of money by means of commission.
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BIBLOGRAPHY
The various source from where I collected datas are as follows.
Internet Sites:
www.hometrade.com
www.hdfcslic.com
www.indiahousing.com
News paper:
The Economic Times
Times of India
Business standard.
Magazines:
Business Today
Insurance World
Money
Books:
Marketing Management (Philip Kotler)
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Research Methodology,
(C.R.KOTHARI)
70
Questionnaire
______________________________________
Qualification-
________________________________
OccupationMarried-
Govt.
Yes
Pvt.
Student
other
No
Address- __________________________________________
__________________________________________
Contact No. - Mobile ________________________
Land line ______________________
Pan card-
Yes
NO
Yes
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No
Yes
No
__________________________________________________________________
____________
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