ON

“RECRUITMENT
OF
FINANCIAL CONSULTANTS
IN
HDFC SLIC”

MANGALMAY INSTITUTE OF MANAGEMENT &

TECHNOLOGY

A report submitted to MIMT, Greater Noida in the partial fulfillment

of full time Management.

SUMITTED BY SUMITTED TO

VIJETA SINHA Mr. SUNIL DESHPANDEY

UPTU ROLL NO. – (DEAN MIMT)
0915270114

1
TABLE OF CONTENTS

CONTENTS

1. EXECUTIVE SUMMERY.
2. OBJECTIVE OF THE STUDY
3. RESEARCH METHODOLOGY
4. INTRODUCTION ( MAIN REPORT ANALYSIS )
• COMPANY PROFILE.
• CORPORATE PROFILE.
• HDFC Ltd AND GROUP COMPANY
• KEY TERMS.
• COMPETITOR
• PRODUCT OF HDFC SLIC
5. CHANNEL DEVELOPMENT
6. RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT
7. ROLE AND RESPONSIBILITY OF FINANCIAL CONSULTANT
8. SWOT ANALYSIS OF HDFC SL
9. SUGGESTIONS & RECOMMENDATION OF RESEARCH.
10. LIMITATION
11. CONCLUSION
12. BIBLIOGRAPHY.
13. WORD OF THANKS.

2
 DECLARATION

I, VIJETA SINHA declare that the project report entitled “

Recruitment on Financial Consultants in HDFC SLIC” being submitted to the
U.P. Technical University for the fulfillment of the requirement for the degree
of MASTER OF BUSINESS ADMINISTRATION in my own endeavors and it has
not been submitted earlier to any Institution / University for any degree.

Vijeta Sinha

3
PREFACE

There are number of forces that make recruitment a crucial as well an important task. People play a very
important role in the organization. They are the one who build the organization so to make the strong
roots of the organization; one has to take care of the people who are becoming a part of the organization.

This Project Report has been completed in Partial fulfillment of my management Program, MASTER
OF BUSINESS ADMINISTRATION (MBA) in the company HDFC STANDARD LIFE INSURANCE.
The objective of my project was “RECRUITMENT OF FINANCIAL CONSULTANT”

HDFC STANDARD LIFE is the name which is working as one of the best private insurance company in
insurance sector.

With such a large population and the untapped market of population Insurance happens to be a very big
opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually.
Together with banking services, it adds about 7 per Cent to the country’s GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that growth
potential for the insurance sector is immense in India.

4
ACKNOWLEDGMENT

This project has been prepared as a part of an internship required during the completion of MBA
programme at MIMT, Gr. Noida .

I was involved with HDFC STANDARD LIFE INSURRANCE, PACHIMVIHAR,NEW DELHI for
a period of 2 months, and I came across a lot of people who put in their time and effort towards
acclimatizing me to the workings of their organization. I express my thanks to my company guide Mr.
VASU JAIN & Mr. VINAY MALIK, who was there to introduce me to the idea of Insurance
business and what goes behind it. Also under him guidance and leadership I was able to enhance my
human resources and marketing as well as inter-personal skills. I would also like to thank him for him
immense support and guidance in the selection of the project, its study and preparation of the report.

I would also like to wish a special thanks to my seniors without whose guidance this project would have
been a distant dream.

Last, but definitely not the least, I express my gratitude to the entire staff of HDFC Standard Life
Insurance.

These past 2 months were of utmost importance as they added value towards my path of knowledge. I
would like to end this acknowledgement by thanking the customers, distributor people at large with
whom I have interacted during the course of my training.

5
 CHAPTER - 1
EXECUTIVE SUMMARY

6
 EXECUTIVE SUMMARY

HDFC Standard Life is India's premier insurance enabling company. HDFC standard Life is the one-
stop-shop for requirements of services in the areas of insurance, optimum investment, financial coverage
and losses, mortality benefit, and health option etc. This is backed by HDFC Standard Life service
support infrastructure - the widest in the country.

This project report presented contains details of my summer training assignment. This is of my
curriculum of full time Master program (2007-2009). The training was conducted in HDFC
STANDARD LIFE INSURANCE, at Pachim Vihar, New Delhi.

The project assigned for the period of 2 months was “Recruitment of financial consultant” and study the
perception of new financial consultant about the company. The aim of this project was evaluating the
position of HDFC STANDARD LIFE INSURANCE on different parameters, creating awareness about
the various products of the company brand image and generating leads for future business prospects
through new and existing financial consultants.

I went through primary and secondary data. For secondary data I went for the magazines, websites and
books. For primary data I went to various people and tried to explain them the benefits of financial
consultant. .

7
MY EXPERIENCE WITH HDFC STANDARD LIFE

These one and half months with HDFC SL are unforgettable for me. The experience, which I got during
these days, was tremendous. I have made good relation with so many people in frontline division where
I did my project & other division. Everybody over there I found nice & helping. I also made some good
friends of other B-schools who were also management trainee there.

Really, the experience I have got from my project will be very helpful to enrich and nourish my career.

MY LEARNINGS FROM THE PROJECT

This 8 weeks training at HDFC SLIC have taught me a great deal. Since it was my first experience of

working, I initially had my inhabitations but all of them went away very soon. Interacting with people,

knowing their ideas and way of thinking had been quite interesting. I now have a slightly better

understanding about people and how they behave. I met a number of people and each of them was so

different.

I have learnt a lot about the art of communication after interacting with different sets of people.

I also have a better knowledge about the insurance industry and its working. Most of all I learn that the

world out there is tough and you have to work hard to create a niche for yourself.

It was great opportunity for me to do my internship from HDFC SL LIFE. :

 I got a project which gave me the opportunity to meet the various people in the corporate world. I
could understand the working culture of corporate as well as government offices. Before this I never
visited such big organizations.

 Making plan for the next day and finding the concern department and person allowed me to increase
my communication ability, written as well as verbal.

8
 My confidence to meet people has tremendously gone up. Today I have that much confidence that I
can meet to any big person in any organization.

 My boss also helped me very much to learn about corporate world. How to prepare the proposals and
how to give the company offer all I learnt from my boss.

 I also learnt very small-small things in the organization which is very necessary in any flat
organization like photocopying; Fax the document which I never know before.

The time spent with HDFC SLIC provided me insight into corporate world

functioning. This opportunity enabled me to learn basics of marketing skills. Also this has been an

excellent exposure to the corporate world and has helped me sharpen my skills and knowledge of the

business environment. This project report is prepared after a through analysis and in intended to be

conclusive and comprehensive.

The learning of this project would go a long way in my future assignments which I would

undertake.

9
ABOUT THE PROJECT

Life insurance is one of the best ways to make the life secure. Even after death it provides benefits to the

nominees. In private sector HDFC STANDARD LIFE INSURANCE is the most respected company.

This project is concern about the understanding the products of HDFC SLIC and sales promotion

through recruitment of financial consultants.

“Man Power Is Our Asset” the saying goes true if the people are employed taking all aspect in to

consideration. The overall project deals in studying the facts, which should be considered while

recruiting Financial Consultant for the company.

The project work started by understanding the products of the company after getting familiar with the

products of the company the following things has been done:

1. Market segmentation to recruit quality peoples

2. Tele calling
3. Fixing meetings
4. Follow Ups
5. Final documentation

The main objective of this project is to understand the products of the company and to do sales

promotion by recruiting Financial Consultants of the company, as the consultants generate the

overall business. Emphasis was given in selection of quality people having an appropriate profile

those can generate good business for the company.

10
 CHAPTER - 2
OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

11
MANAGEMENT OBJECTIVE

 “ To recommend the most effective means of recruiting, potentially high performing financial
consultants”

RESEARCH OBJECTIVE

 To study approaches followed by competitors.

 To find out various method adopted by BDM’S

 To find out parameters considered while financial consultant recruitment.

 To find out a way to classify financial consultant.

 To study the perception level of existing financial consultant

 To study the perception of new financial consultant about the company.

These objectives were achieved by following a well thought plan and defining the problem for each

objective separately.

12
CHAPTER - 3
SECANDARY DATA

SECANDARY DATA

13
 RESEARCH DESIGN

The efforts were to inculcate a many agent or financial consultant of various companies’

different people so as to evince the deep information and facts regarding the mechanism and

financial consultant perception about HDFC STANDARD LIFE INSURANCE COMPANY

available in the market.

DATA COLLECTION METHOD:

PRIMARY SOURCES

a) Direct integration with different agents.

b) Integration with company distributors and company personnel.

c) Integration with various customers.

SECONDARY DATA

a) From the company web sites, broachers of various products available in the market.

b) From various competitors web sites.

c) From various newspapers and magazines.

SAMPLING

Sampling method is used to know the opinion of the financial consultant regarding company
and

what are the changes they want in the company.

SAMPLE SIZE DETERMINATION

A sample size of 100 individual was determined on a random basis, which existed in the
Delhi.

FIELD WORK

14
1. ROUTE RIDING
I spent the time in market and different insurance company’s office for collecting the information

of the company at different HDFC SLIC offices and knowing the opinion of the financial

consultant.

2. DATA COLLECTION
I covered the different offices in delhi. Interaction with financial consultant provides experience,

knowledge. It also helped me to get information regarding customer and their taste.

It helped me out in making my report regarding the customer perception and satisfaction level

and also about their taste and preferences and what be the steps to overcome those problems.

3. DIRECT INVOLVEMENT
It helped me in knowing the problems of the financial consultant and market the company to

know its strengths and weaknesses.

4. RESEARCH INSTRUMENTS

a) OBSERVATION- Careful observation of all the offices were done where HDFC

STANDARD LIFE INSURANCE COMPANY financial consultant are being taking license

along with other companies and questions were asked from financial consultant why they

prefer to take other companies blicence

b) QUESTIONNAIRE- Structure non disguised questionnaire and structured disguised

questions has been asked from the respondents to collect information about company and their

performance level.

The questions generally asked to achieve the desired objective were:

• Who are the competitors of the company?
• Are products of the company are satisfactory?

15
 • What is the customer perception regarding the products of the company and its brand
image?
• Does company solve their complaints( if any) completely?

FILLING THE QUESTIONNAIRE

Filling of the questionnaire by various individual from age group of 15-55

The commencement of field work included the process of getting questionnaire filled up and also

getting all the relevant information regarding visibility of HDFC STANDARD LIFE

INSURANCE COMPANY for fulfillment of business decisions.

16
17
CHAPTER - 4
INTRODUCTION

18
 INTRODUCTION

HDFC STANDARD LIFE is the name which is working as one of the best private insurance company in
insurance sector. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.It
got the certificate of registration on 23rd October.

LIFE INSURANCE IN INDIA

INTRODUCTION

With such a large population and the untapped market of population Insurance happens to be a very big
opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually.
Together with banking services, it adds about 7 per Cent to the country’s GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that growth
potential for the insurance sector is immense in India.

A BRIEF HISTORY

The insurance came to India from UK; with the establishment of the Oriental Life Insurance Corporation
in 1818.The Indian life insurance company act 1912 was the first statutory body that started to regulate
the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were
been established in India. Then the Central government took over these companies and as a result the
LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide
network across the length and the breath of the country. After the liberalization the entrance of Foreign
players have added to the competition in the market.

19
INSURANCE SECTOR REFORMS

Prior to liberalization of Insurance industry, Life insurance was monopoly of LIC. In 1993, Malhotra
Committee, headed by former Finance Secretary and RBI Governor Was formed to evaluate the Indian
insurance industry and give its recommendations. The Committee came up with the following major
provisions:
• Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry.
• Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.
• Only one State Level Life Insurance Company should be allowed to operate in each state.

It was after this committee came into effect the regulatory body of insurance sector was formed with the
name of IRDA.

IRDA: The IRDA since its incorporation as a statutory body has been framing
Regulations and registering the private sector insurance companies. IRDA being an independent
statutory body has put a framework of globally compatible regulations.

IMPACT OF LIBERALIZATION

The introduction of private players in the industry has added to the colors in the dull Industry. The
initiatives taken by the private players are very competitive and have given immense competition to the
on time monopoly of the market LIC. Since the advent of the private players in the market the industry
has seen new and innovative steps taken by the players in this sector. The new players have improved
the service quality of the Insurance. As a result LIC down the years have seen the declining phase in its
carrer.The market share was distributed among the private players. Though LIC still holds the 75%of the
insurance sector but the upcoming natures of these private players are enough to give more competition
to LIC in the near future.LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The
following companies has the rest of the market share of the insurance industry.

20
CURRENT SCENARIO OF THE INDUSTRY

NAME OF THE PLAYER MARKET SHARE (%)

LIC 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

ING VYSYA 0.37

BAJAJ ALLIANZ 2.03

SBI LIFE 1.80

HDFC STANDARD LIFE 1.36

TATA AIG 1.29

MAX NEW YORK LIFE 0.9

AVIVA 0.79

AMP SANMAR 0.26

MET LIFE 0.21

21
INSURANCE MARKET IN INDIA

India with about 200 million middle class household shows a huge untapped potential for players in the
insurance industry. Saturation of markets in many developed economies has made the Indian market
even more attractive for global insurance majors. The insurance sector in India has come to a position of
very high potential and competitiveness in the market.

Innovative products and aggressive distribution have become the say of the day. Indians, have always
seen life insurance as a tax saving device, are now suddenly turning to the private sector that are
providing them new products and variety for their choice. Life insurance industry is waiting for a big
growth as many Indian and foreign companies are waiting in the line for the green signal to start their
operations. The Indian consumer should be ready now because the market is going to give them an array
of products, Different in price, features and benefits. How the customer is going to make his choice Will
determine the future of the industry.

CUSTOMER SERVICE
Consumers remain the most important centre of the insurance sector. After the entry of the foreign
players the industry is seeing a lot of competition and thus improvement of the customer service in the
industry. Computerization of operations and updating of Technology has become imperative in the

22
current scenario. Foreign players are bringing in international best practices in service through use of
latest technologies. The one time Monopoly of the LIC and its agents are now going through a through
revision and Training programmes to catch up with the other private players. Though lot is being done
for the increased customer service and adding technology to it but there is a long way to go and various
customer surveys indicate that the standards are still below customer expectation levels.

DISTRIBUTION CHANNELS

Till date insurance agents still remain the main source through which insurance products are sold. The
concept is very well established in the country like India but still the Increasing use of other sources is
imperative. It therefore makes sense to look at well- balanced, alternative channels of distribution.

LIC has already well established and have an extensive distribution channel and Presence. New players
may find it expensive and time consuming to bring up a distribution network to such standards.
Therefore they are looking to the diverse areas distribution channel to have an advantage. At present the
distribution channels that are
Available in the market are:

• Direct selling/Retail
• Corporate agents
• Group selling
• Brokers and cooperative societies
• Bancassurance

DIRECT SELLING/RETAIL

Direct selling or retail business is carried out by Agents of the company. This is the main distribution
channel due to the complexity of most insurance products (Endowment, Whole of Life, Unit
Linked). This tends to be the focus of most companies due to its past success as well as its ability to
deliver the right advice. However, this channel can be expensive and it is a time consuming sales
process. However, the channel will remain the largest for many years to come. An agent is the public
face of an Insurance company. Most of the clients of Insurance Company never get to see any one
besides the agent. Hence it is important that this face is always smiling and presentable and the facts and

23
figures at his/ her command are updated and correct. Some of the expectations from the agent by the
Insurer are:
1. Contact prospects for life insurance, study their insurance needs and persuade them to buy.

2. Complete all formalities for proposal of new insurance including filling up proposal forms,
collecting premium, arranging medical examination, collecting proofs (of age or income), reports
and information required by the underwriter.

3. Completing a policy is not the end of the job of an agent but just the beginning of a new relationship.
Having sold a new insurance policy, s/he has to ensure that the Policy continues in the books of the
Insurance Company and its proposed benefits are in no way compromised.

For this purpose an agent has to:

 Keep in touch with the policyholder to make sure that renewal premiums are paid in time.

 ensure that nominations are made or changed, if necessary, as and when it is required.

 assist in collecting the claim amounts as and when they become due by helping the
claimants to complete all documents and evidences.

 Apart from these routine procedures, at times an insured may need a loan against his
policy. The details of various situations for which a loan can be given and its terms have to
be explained to the policyholder. These go a long way in strengthening the bond between
policyholder and the agent.

24
BANCASSURANCE

 Banc assurance is the distribution of insurance products through the bank's distribution channel.
It is a phenomenon wherein insurance products are offered through the distribution channels of the
banking services along with a complete range of banking and investment products and services. To
put it simply, Bancassurance, tries to exploit synergies between both the insurance companies and
banks.

BANCASSURANCE IN INDIA

Bancassurance in India is a very new concept, but is fast gaining ground. In India, the banking and
insurance sectors are regulated by two different entities (banking by RBI and insurance by IRDA) and
bancassurance being the combinations of two sectors comes under the purview of both the regulators.
Each of the regulators has given out detailed guidelines for banks getting into insurance sector.
Highlights of the guidelines are reproduced below:

RBI guideline for banks entering into insurance sector provides three options for banks. They are:

 Joint ventures will be allowed for financially strong banks wishing to undertake insurance
business with risk participation;
 For banks which are not eligible for this joint-venture option, an investment option of up to 10%
of the net worth of the bank or Rs.50 corers, whichever is lower, is available;
 Finally, any commercial bank will be allowed to undertake insurance business as agent of
insurance companies. This will be on a fee basis with no-risk participation.

25
 THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)
GUIDELINES FOR THE BANCASSURANCE ARE:

 Each bank that sells insurance must have a chief insurance executive to handle all the insurance
activities.

 All the people involved in selling should under-go mandatory training at an institute accredited
by IRDA and pass the examination conducted by the authority.

 Commercial banks, including cooperative banks and regional rural banks, may become corporate
agents for one insurance company.

 Banks cannot become insurance brokers

26
 CORPORATE PROFILE

The Joint Venture HDFC Standard Life

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

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the
majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr.
Deepak Satwalekar is the MD and CEO of the venture.

27
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.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and ongoing delays in
getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite
this both companies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource made available.
Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd.
(IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them
upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies agreed
the time was right to move the operation to the next level. Therefore, in January 2000 an expert team
from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

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.

28
 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.

Company’s ambition from as far back as October 1995, 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 and Standard Life have a long and close relationship built upon shared values and trust. The
ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick
by which all other insurance company's in India are measured.

COMPANY’S MISSION:

To be the top new life insurance company in the market. This does not just mean being the largest or the
most productive company in the market; rather it is a combination of several things like-
 Customer service of the highest order
 Value for money for customers
 Professionalism in carrying out business
 Innovative products to cater to different needs of different customers
 Use of technology to improve service standards

 Increasing market share

29
COMPANY’S VALUES:

 SECURITY: Providing long term financial security to our policy holders will be our constant
endeavor. This is done by offering life insurance and pension products.

 TRUST: Company appreciates the trust placed by our policy holders in us. Hence, company will
aim to manage their investments very carefully and live up to this trust.

 INNOVATION: Recognizing the different needs of our customers, company will be offering a
range of innovative products to meet these needs.

Company’s mission is to be the best new life insurance company in India and these are the values that
will guide us in this.

HDFC IS A HIGHLY DIVERSIFIED GROUP. ITS GROUP COMPANIES ARE:

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

HDFC Bank Limited The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive approval from the Reserve Bank of India to set up a bank in the private sector. The
bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in
Mumbai.

HDFC Securities Limited HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the
objective of providing the diverse customer base of the HDFC Group and other investors, a capability to
transact in the Stock Exchanges & other financial market transactions. HDFC securities, provides you

30
with the necessary tools to allocate, select and manage your investments wisely, and also support it with
the highest standards of service, convenience and hassle-free trading tools.

HDFC Asset Management Company Limited

HDFC Fund is a dominant player in the Indian mutual fund space, recognized for its high levels of
ethical and professional conduct and a commitment towards enhancing investor interests.

HDFC Realty Limited

HDFC Realty is a new, organized electronic marketplace for properties. HDFC realty provides the entire
gamut of real estate services, bringing together the "clicks world" and the "bricks world" in a
revolutionary and user-friendly way. Making available the best guidance and the most professional,
transparent, efficient service to the real estate customer.

HDFC STANDARD LIFE INSURANCE HDFC STANDARD LIFE is the name which is working as
one of the best private insurance company in insurance sector. HDFC Standard Life Insurance Company
Ltd was incorporated on 14th August 2000.It got the certificate of registration on 23rd October.

HDFC CHUBB GENERAL INSURANCE COMPANY LIMITED

With over one century of experience in the field of non-life insurance from Chubb and HDFC’s
expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the
consumer insight to make its product range world class and comprehensive.

31
 Standard Life

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

Standard Life currently has assets exceeding over £70 billion under its management and has the
distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

KEY TERMS

Financial planning- It covers the essential elements of a person’s financial affairs and is aimed at
achieving a person’s financial goals.

Fixed deposit- Funds placed on deposit in a bank, company or post office at a fixed rate of interest..

Fixed-income investment- Any investment that provides a stated percentage of value, say 6 per cent, on
the invested amount..

Fixed rate loan- Interest rate charged on a loan that remains fixed during the tenure of the loan.

Floating rate loan- Interest rate charged on a loan benchmarked to a particular lending rate. The rate
gets adjusted during the tenure of the loan as the benchmark interest rate changes.

Group Insurance- An insurance policy taken out by employers to provide life cover to their employees.
Usually the cheapest form of insurance.

Guaranteed additions- The amount paid as returns in assured-return insurance plans. Guaranteed
additions are expressed as a percentage of the sum assured, with the amount payable being stated by the
insurer at the outset.

32
Hospital cash benefit rider- A rider that provides cover for hospitalization

Immediate annuity- An annuity that starts payments immediately after, or soon after, the first premium
is paid.

Index fund- A scheme whose portfolio mirrors the progress of a particular index, both in terms of
composition and individual stock weight ages. It’s a passive investment option, as a fund’s performance
will mimic the index concerned, barring a minor tracking error.

Insured- The policyholder

Insurer- The insurance company

Investments- Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the

purpose of earning a return.

Investment risks- The risks that your investments face. These include the risk of interest rate

fluctuations impacting your debt investments or the prices of equities going down.

Level term cover rider- A rider that increases the life cover in non-term plans, up to a maximum of the

sum assured on the base policy. The rider offers death benefit along , and serves the need for extra

protection for a specified time period.

Liabilities- Monies owed, debt and other financial obligations of a person

Life annuity- An annuity that makes regular income payments till the policyholder is alive. On the

policyholder’s death, all income payments cease and there are no beneficiary benefits.

Loyalty additions- Additional benefits (other than guaranteed additions/bonus) paid to policyholders on
maturity of certain investment-based insurance plans for staying on through its term. Loyalty additions

are paid as a percentage of the sum assured, with the amount depending on the insurer’s financial

performance.

Lock-in period- The period of time for which investments made in an investment option cannot be

33
withdrawn.

Market value- The monetary value an asset will fetch if sold in the market today.

Maturity date- The date on which a policy term or fixed-income investment like fixed deposit or bond

comes to an end.

Money-back plans- A variant of endowment plans in which survival benefits are disbursed through the

policy term, rather than in a lump sum at the end.

Net asset value (NAV)- The simplest measure of how a scheme is performing, it tells how much each

unit of it is worth at any point in time. A scheme’s NAV is its net assets (the market value of the

financial securities it owns minus whatever it owes) divided by the number of units it has issued.

Nominee- The person(s) nominated by the policyholder to receive the policy benefits in the event of his

death.

Participative plans- See ‘with-profit’ policy.

Pension Plan- Investment products offered by insurance companies and mutual funds that required the

investor to make defined contributions over regular periods, mostly every year. The contributions are

invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through

regular pay-out options.

Periodic payment investments- Investment options that have payouts in fixed intervals. For example,

money-back life insurance policies.

Permanent partial disability-Permanent loss of any body part, one eye, one limb or one finger or a toe,

or injuries that render the insured in capable of earning an income from the date of the accident onwards

from any work, occupation or profession. While the loss of the body part may be permanent, its effects

on the insured’s life are partial.

Permanent total disability-Permanent loss of use of any two limbs, or permanent and complete loss of

34
sight in either eyes or any other injury that renders the insured incapable of earning an income. Cover

this risk to secure your wealth

Policy-The legal document issued by an insurance company to a policyholder that states the terms and
conditions of an insurance contract.

Policyholder- The person who buys an insurance policy. Also referred to as the ‘insured’

Policy term- The period for which an insurance policy provides cover.

Post office schemes-Also known as Small Savings schemes, they are offered at post offices and carry
the highest returns among fixed income instruments. Government backing makes these instruments like
Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post
Office Monthly Income Scheme (POMIS) risk-free.

Premium-The amount paid by the insured to the insurer to buy cover.

Recurring deposit-This is offered both in post office and banks where you are required to contribute a
fixed amount ever month. It is a great tool for making small and regular savings.
Rest-The frequency at which interest is calculated on the outstanding loan balance. The more regularly
the interest is calculated on the outstanding loan amount, the lesser the interest costs and cheaper the
loan. For example, monthly rests would make a loan with the same rate cheaper than a quarterly rest.

Revolving credit-A pre-established credit line, typically in a credit card, against which a person may
borrow to make purchases.

Riders- Additional covers that can be added to a life policy, for a cost.

Small savings -See post office schemes.

35
Sum assured-The amount of cover taken under a life insurance policy, it is the minimum amount that
will be paid on death of the policyholder during the policy term.

Surrender value-The amount payable by the insurer to the owner of an investment based plan in case
he opts to terminate the policy after three years (the mandatory
lock-in period) but before its maturity date. The surrender value will be the premia paid till date minus
surrender charges and any outstanding loans due.

Survival benefits-The amount payable to a policyholder under an investment-based plan if he survives

the policy term. Typically, it is the sum assured plus returns (guaranteed additions / bonus) accrued.

Temporary total disability-An injury that results from an accident and renders a person immobile or
affects his earning capacity temporarily. For instance, a fracture in the arm or leg that keeps you from
work: you may be mobile but the injury may prevent you from working.

Term plans-A plan that provides life cover for a specified period of time, but no return on the premia
paid.
Terminal bonus-A one-time bonus paid on maturity of a with-profit plan.

Vesting date-Generally used in the context of pension plans and children’s plans offered by life
insurance companies. It is a date signifying a milestone in a policy. In pension plans, it is the date from
which the policyholder starts receiving pension. In children’s plans, it is the date from which a child
becomes the owner of a policy taken out in his name (generally, around his 18th birthday).

Waiver of premium rider- A rider that waives the premium payable on the base policy and other riders
in certain circumstances mostly related to death, disability or injury. An important feature especially for
investment products such as children’s policies.

Wealth-The difference between the value of what you own (assets) and what you owe (liabilities).

36
Will-A document that designates the assets of a person-both financial and physical- to various family
members and other heirs.

With-profit policy-An insurance plan in which the policyholder gets a share of the insurer’s profits (in
the form of guaranteed additions / bonus). Along with the sum assured.

Without-profit policy-An insurance plan in which the policyholder does not get any share of the
insurer’s profits.

Whole-life plans- Class of life insurance policies that provide cover through your lifetime.

37
 COMPETITORS

In presently there are 16 life insurance corporation companies are working and performing in India. So

definitely HDFC Standard life has good competition with other. The main competitors are as following.

• LIFE Insurance Corporation.( Public sector)

• ICICI Prudential Life Insurance.

• BAJAJ Allianz.

• SBI Life Insurance.

• BIRLA Sun Life.

• AVIVA.

• TATA AIG

• MET LIFE.

• ING Vysya

• HDFC SLIC

• OM KOTAK MAHINDRA

38
COMPETITORS

39
 Insurance Companies

Insurance is that covers the insured for a specified period such as one, five, or 10 years, often with an

option to renew. Premiums are paid throughout this time, but generally become higher during the course

of the term, as the policyholder grows older.

A life insurance policy purchased for a term of years. If the person dies during this term, the beneficiary

receives the face amount of the policy. The policy expires at the end of the stated number of years.

Insurance provides coverage for a specific period of time, usually from one to thirty years. Term policies

provide a death benefit only if the insured dies during the term. Term insurance is life insurance

coverage for a specified period of time. This can be at a guaranteed rate or in some cases a guaranteed

rate for a period of time and then a projected rate. Term periods can be for 1 year, 5 years, 10 years, 15,

20 and even 30 years. For example: 30 year level term would guarantee a level premium for 30 years

based on a specified death benefit. Term life insurance is usually the least expensive form of life

coverage.

Insurance industry earlier comprised of only two state insurers. Life Insurers ie Life Insurance

Corporation of India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC) GIC

had four subsidiary companies. With effect from Dec'2000, these subsidiaries have been de-linked from

parent company and made as independent insurance companies. Oriental Insurance Company Limited,

New India Assurance Company Limited, National Insurance Company Limited and United India

Insurance Company Limited.

The licenses for insurance companies were issued by the Insurance Regulatory and Development

Authority (IRDA) in 2001. At present following are the players in the Indian Market:

40
 Insurance Companies in India

Bajaj Allianz Life Insurance AMP Sanmar Life Insurance Birla Sun Life Insurance

Aviva Life Insurance HDFC Life Insurance ICICI Prudential Life Insurance

Max Newyork Life Insurance Metlife India Insurance Reliance Life Insurance

Shiram Life Insurance Tata AIG Life Insurance SBI Life Insurance

Bharti AXA Life Insurance ING Vysya Life Insurance Sahara Life Insurance

Kotak Mahindra Insurance General Insurance Corporation India Royal Sundaram Insurance

Canara HSBC OBC Life

Insurance

41
The Life Insurance Corporation (LIC) of India founded in 1956 is the largest life insurance company

in India owned solely by the Government of India. Headquartered in Mumbai, which is considered the

financial capital of India, LIC presently has 7 Zonal Offices and 100 Divisional Offices situated all

around the country. In addition to an even distribution of 2048 branches located in different towns and

cities of India, LIC also has a network of around one million agents who solicit life insurance policies

to the public.

History of LIC of India

The first 150 years of the British Rule in India were characterized by turbulent economic conditions.

The first war of independence in 1857, the World Wars 1 and 2 (1914-1918 and 1939-45) and India's

national struggle for freedom in between had adverse effect on the economy. In addition to this the

period of world wide economic crisis in between the two World Wars termed as the period of Great

Depression led to the high rate of bankruptcies and liquidation of most Life Insurance Companies in

India that existed during that time. These occurrences led to loss of faith in insurance of the people of

India. The Life Insurance Companies Act and Provident Fund Act both passed in 1912 provided

regulatory mechanisms to the Life Insurance Industry in India for the first time. After undergoing

several other such reforms in the following decades and nearly a decade after India achieved

independence, the Parliament of India passed the Life Insurance of India Act on 19 th June, 1956

following which the Life Insurance Corporation (LIC) of India on 1 st September of the same year.

The Company began its operations with 5 Zonal Offices, 33 Divisional Offices and 212 Branch

Offices.

Present Status of LIC of India

42
Existing as a towering insurance company for over 50 years, LIC has acquired almost monopoly

power in the solicitation and sale of life insurance policies in India. In addition to the summary

regarding the present stature provided at the beginning, LIC has extended its activities in 12 countries

other than India with the objective of catering to the insurance needs of Non Resident Indians. The

enforcement of New Economic Reforms in 1991 coupled with the formation of Insurance Regulatory

and Development Authority Act (IRDA) of 2000 (which started issuing licenses to private life

insurers) has diluted the monopolistic attitude commanded by LIC.

Life Insurance Corporation of India

Type Government-owned corporation

Founded September 1, 1956

Headquarters Headquarters in Mumbai, India (Various other locations in India and abroad)

Key people D. K. Malhotra, Thomas Mathew and A. Dasgupta (Managing Directors)

Industry Life insurance

Products Individual Life Insurance, Group Insurance and Pension Plans

Employees 112,184

ABOUT TATA AIG LIFE INSURANCE COMPANY LTD

43
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the

Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s

pre-eminent leadership position in India and AIG’s global presence as on of the world’s leading

international insurance and financial services organization. The Tata Group holds 74 per cent stake in

the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance

solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in

India on February 12, 2001 and started operations on April 1, 2001 Tata AIG Life Insurance Company

Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American

International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s pre-eminent leadership

position in India and AIG’s global presence as the world’s leading international insurance and financial

services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding

the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata

AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started

operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage to both

individuals and groups, providing various types of add-ons and options on basic life.

Products to give consumers flexibility and choice.

Whole Life Policy:

Tata MahaLife - The Whole Life Plan

MahaLife Gold

Special Plan Policy:

Assure Money Saver Plan

Money Back Policy:

Assure 15 years Lifeline (with Returns of Premiums)

44
Assure 21 years money saver

Pension Plans or Annuities:

Assured Golden Years Plan

Nirvana - Pension Plan

Nirvana Plus

Comprehensive Gratuity

Comprehensive Superannuation

Endowment Policy:

Assure Security and Growth Plan

Assure Educare

Assure Career Builder

AVIVA LIFE INSURANCE COMPANY

Aviva Life Insurance India is a private insurance company formed from collaboration between the

Aviva insurance group of UK and the Dabur group, one of India's oldest and top producers of

traditional health care products. Aviva's products are meant to provide customers flexibility,

transparency and value for money.

History - Aviva insurance group in UK with a history dating back to 1696, today stands as one of the

leading provider of life and pension products to Europe and other parts of the world. The history of

Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign

insurance group in terms of the compensation paid by the Indian Government. In 1995 Aviva was the

first foreign insurance company to start its representative office in India. At present in Aviva Life

45
Insurance India, the Aviva group is a 26% share holder and the Dabur group holds 74% shares in the

joint venture.

Programme highlights of today -

• Aviva Life Insurance India has 40 Branches in India, including rural branches supporting its
• distribution network. With over 27,000 Financial Planning Advisers (FPAs) and the Financial

Health Check (FHC) programme it has been successful in setting up its position in the Indian

market. The FHC is a free service administered by the FPAs which analyses the customer's long-

term savings and insurance needs and depending on the life stage and earnings of the customer it

selects the proper insurance product for them.

• Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it
• has Bancassurance 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, Bihar, West Bengal, Andhra Pradesh

and Maharashtra and one regional Bank in Sikkim. This has helped to distribute Aviva products

in nearly 378 towns and cities across India.

• Aviva Life Insurance India offers more modern Unit Linked and Unitized With Profit money

products to the customers. Following the IRDA guidelines, with effect from 1 July 2006, these

unit - linked products have been modified. The products of Aviva insurance group of India are:

• Lifelong
• Lifesaver or Easy Life Plus
• Young Achiever
• Life Bond and Life Bond Plus
• Pension Plus
• Life Shield
• Freedom Life Plan
• LifeBond5
• The fund management an operation of Aviva Life Insurance India is controlled from Mumbai

and the fund options includes Unitized With-Profits Fund and four Unit Linked fund.

46
 • Protector Fund - The fund comprises of debt securities in the range of 60-100%, equities in the

range of 0-20% and money market and cash in the range of 0-20%.

• Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in the

range of 0-20% and money market and cash in the range of 0-20%.

• Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities in the

range of 0-45% and money market and cash in the range of 0-10%.

• Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities in the

range of 0-85% and money market and cash in the range of 0-20%.

This fund provides investment security to the capital of the customers. Through their association with

Basic (a micro financial institution) and other NGOs, Aviva Life Insurance India have been able to

reach out to those underprivileged who had no access to insurances till day. In Aviva Life Insurance

India , thus , by combining protection and long term savings the customers can safeguard and provide

life products for their family with their changing needs.

About Bajaj Allianz Life Insurance:

Bajaj Allianz Life Insurance Company is the leading Private Sector life insurance Company in India.

With a pan India presence and over 950 + towns, Bajaj Allianz Life Insurance has already sold over 5

million policies. Bajaj Allianz Life Insurance has developed insurance solutions that cater to every

segment and age-income profiles. For companies it provides comprehensive 'Employee Benefit

Solutions' (Group Term Life, EDLI, Gratuity, Super-annuation, Key man Insurance and more); for the

individual Invest Gain (a unique life insurance plan where sustenance of income is combined in the

same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Care

First, Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return of premium),

47
 Saran Visitant (Retirement Plan), Protector (Mortgage term insurance plan), Unit Gain Plus Gold, New

Unit Gain Super, New Family Gain, New Unit Gain Plus, New Unit Gain, New Unit Gain Premier, New

Unit Gain Easy Pension Plus, New Unit Gain Easy Pension Plus Single premium and Future Secure.

Currently Bajaj Allianz has a product portfolio of over 30 flexible and simple products and more need-

based products are in the pipeline

UNIT LINKED
PENSION TRADITIONAL
Regular Premium TERM PLANS
New Unit Gain Annuity Endowment
Unit Gain Plus Pension Life Time Care New Risk Care
Gold Guarantee Super Saver Term Care

Single Premium Retirement Money Back

New Unit Gain FutureCHILDREN
Income Cash Gain
Plus SP PLAN
Generator
New Unit Gain Swarna Child Gain
Premier SP JUST LAUNCHED
Vishranti
Fortune Plus
WOMEN INSURANCE Family Assure
HEALTH
Working Women
Family CareFirst
House Wives
Health Care

48
 SBI LIFE INSURANCE

SBI Life Insurance is the 3rd largest private life insurance company in the country, with total premium

income exceeding Rs. 1000 crore in 2005-06, and the first to declare a profit after just 5 years in

operation. SBI Life is a joint venture of SBI, India's largest and most trusted bank for 200 years, and

Cardiff, the insurance arm of BNP Paribas with global expertise.

SBI Life Insurance in

• Insurance Company
• Life Insurance

SBI Life Insurance is a collaboration between the State Bank of India and BNP Paribas Assurance. SBI

owns 74% of the capital and BNP Paribas Assurance the rest 26%.

State Bank of India is the biggest Bank in the retail sector. Along with its 7 Associate Banks, SBI Group

has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. , is one of the

oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the forth

largest life insurance company in France, and a worldwide leader in Creditor insurance products offering

protection to over 50 million clients. SBI Life extensively leverages the SBI Group as a platform for

cross-selling insurance products along with its numerous banking product packages such as housing
loans and personal loans. SBI’s access to over 100 million accounts across the country provides a

vibrant base for insurance penetration across every region and economic strata in the country ensuring

true financial inclusion.

49
50
They have more than 40000 agents to sell there products:

Products

Unit Linked Products

SBI Life - Horizon II

SBI Life - Unit Plus II
SBI Life - Unit Plus Child Plan
SBI Life - Unit Plus Elite Plan

Pension Products

SBI Life - Horizon II Pension

SBI Life - Unit Plus II Pension
SBI Life - Lifelong Pensions
SBI Life - Immediate Annuity

Pure Protection Products

SBI Life - Swadhan

SBI Life - Shield
"SBI Life - Shield" used as
Keyman

Protection cum Savings

SBI Life - Sudarshan

SBI Life - Scholar II
Money back Scheme

51
 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.

ICICI Prudential is curently 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.

ICICI Prudential Life Insurance Company instigated in December 2000 is one of the leading private life

insurers in India. A product of a highly lucrative joint venture between ICICI Bank India and Prudential

PLC of UK, ICICI Prudential is most commonly known as ICICI Prulife. Spanning the country with

over 100 offices and 2.6 lakh advisors, ICICI PruLife is one of the most trusted private firms in life

insurance.services.in.India.

The various services by ICICI Prudential include life insurance plans, retirement solutions and health

insurance plans. Under the ICICI Prudential Life Insurance or ICICI PruLife, the company offers

education insurance, wealth creation, guaranteed premium and protection plans as customized services.

For life stage pension plans we have specialized retirement plans and life time gold services available

with ICICI Prudential. Health insurance services include crisis cover and major and chronic disease

coverage plans that include cancer, diabetes and other health problems.

For any information about the available policies and the plan most appropriate for you, ICICI employs

specially trained advisors and customer care executives. They guide you about the tax savings and tax

52
plans available, the various funds launched - mutual fund, ELSS equity funds, discovery funds,

infrastructure fund etc. and about ongoing ICICI Prudential fund value. For any information on ICICI

prudential l branches, customer login, online services, and info about the ICICI prudential annual growth

report, login to the ICICI prudential official website. You will also find info on ICICI prudential asset

management co., their AMC and NAV management facilities and contact info about their branches and

corporate office on the website of ICICI Prulife.

METLIFE INSURANCE

Metlife Insurance is a prime mover in the India's insurance market. MetLife India Insurance Company

Limited is affiliated to the MetLife, Inc. Metlife offers its customers a wide array of value added,

innovative financial products. The company operates in over 600 locations in India, via its own offices

and its bank partners.

Metlife Insurance's client base comprises individual entities as well as customer groups. Over 32,00

financial advisors work under Metlife Insurance. These personnel are engaged in the provision of quality

financial advice to customers through out India.

It may be noted that MetLife, Inc. serves over 70 million customers around the world, via its affiliates.

Services of MetLife companies involve the following areas.

• Life insurance
• Retail banking
• Annuities
• Home insurance
• Automobile insurance

Financial services provided by the company include individual insurance, reinsurance and group

insurance. Savings and retirement product services are offered to corporations and various types of other

53
institutions. MetLife India Insurance Company Ltd offer the following services.

• Individual plans
• Micro Finance
• Employee Benefits

The company provides its customers with a premier Financial Advisor Zone. A new offering from

MetLife India Insurance Company Ltd has come in the form of introduction of 'drop box facilities' for

premium collection. At present this facility is available at the following metros.

• Bangalore, Mumbai , Chennai, Kolkata, Delhi

BIRLA SUNLIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Group and

Sun Life Financial Inc. BSLI started functioning in March 2001 after getting the certificate of

registration from IRDA. Birla Sun Life Insurance Company Limited introduced unit Linked Life

Insurance Solutions in India. Within a short span of time it was able to establish itself as a leading player

in the Private Life Insurance Industry. It has been innovative and come up with customer-centric

products to provide safety and services. The company has web-enabled IT systems for better customer

services and a strong distribution channel which is easily approachable. The company shows corporate

governance and a high degree of business practices

It has professional knowledge and global expertise of Aditya Birla Group. Birla Sunlife Insurance has
been providing first class financial solutions to its customers and has been amongst the top three private
sector.life.insurance.companies. Its mission is to be amongst the top players in the eyes of customers and
the first choice of insurance and retirement solutions to individuals and groups. These innovative
solutions are linked with global and technical expertise and are deployed by a multi channel distribution
network.and.enhanced.technology.

54
The company aims at keeping all people associated with it - customers, clients, stakeholders and
employees- happy and fully satisfied. It wants to provide value added products and services to the
customers, job satisfaction to employees and highest returns to.the.shareholders.

Qualities like integrity, commitment, passion, and speed are the core values of the company. The
products offered by the company are:

Individual-Life Protection

Premium Back Term Plan

BirlaSunLifeTermPlan

Saving

Simply Life
Flexi Save Plus
Supreme Life
Life Companion
Prime Life
Children FlexiSavePlus
Children's.Dream.Plan Flexi Cash Flow
Accidental Death and Dismemberment Rider
Retirement
Flexi.Secure.Life.Retirement.Plan-II

Riders MAX NEW YORK LIFE INSURANCE

Critical Illness Plus Rider
Term Rider
55
Waiver of Premium
Critical Illness Rider
Critical Illness - Woman Rider
Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-
business 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 certification. 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.

Max New York Life brings to you specially customized products and services that are flexible and can e

customized to suit your needs. It now has 30 life insurance products and 8 riders that can be customized

to over 800 combinations enabling customers to choose the policy or plan that best fits their need. These

include:

INDIVIDUAL-INSURANCE

Protection Plans:

• Whole Life
• Level Term
• Five Year Term R & C
• Life Partner Plus

Savings:

o Life Gain Endowment

o Life Pay Money Back
o Life Gain Plus 20
o Life Gain Plus 25

20-Year Endowment

56
Unit Linked:

o Life Maker Premium

o Life Maker Gold
o Life Maker Platinum
o Life Maker Pension
o Life Invest

GROUP INSURANCE

o Group Term Life

o Group Gratuity
o Employee Deposit Linked Insurance
o Credit Shield
o Unit Linked Group Gratuity
o Unit Linked Group Superannuation

RURAL INSURANCE

o Max Suraksha
o Easy Term
o Max Mangal Endowment
o Max Vriksha Money Back

MAX AMSURE

o Max Amsure Bonus Builder

o Max Amsure Business Builder
o Max Amsure Money Back
o Max Amsure Future Builder
o Max Amsure Secure Returns Builder

NAV

• Life Maker Investment Plan

• Life Maker Pension Plan
• Life Maker Premium
• Smart Steps
• Group Gratuity
• Group Superannuation
• Max Amsure Secure Returns Builder

OTHER PRODUCTS

• Bancassurance Super Saver Bond

57
 • Mutual Fund

Besides the above-mentioned products and services also find insurance calculator, retirement

calculator, premium calculator and a plan finder that helps you decide the product best suited to your

needs on the Max New York Life Insurance India Website. For long term care insurance, come to

Max New York Life India and rest assured.

ING Vysya Life Insurance

ING Vysya Life Insurance Company Limited established its foothold in the private life insurance

industry in India in September 2001. In a branch network of over 140 branches with head office in

Bangalore, ING Vysya Life Insurance Co employees around 3000 employees with a sales force of over
21,000 insurance agents and brokers. ING Vysya Life enjoys a customer base of 4.5 lakh and a total

income of Rs. 400 crore. ING Vysya Life Insurance Co Ltd is the result of a joint venture between the

world's second largest life insurance company - ING Insurance and one of the largest private sector

banks in India - Vysya Bank. Another stakeholder in the JV is GMR Group.

ING Vysya Life Insurance brings to you an opportunity to help you fulfill a very important

responsibility of yours towards your family. The ING Vysya Life protection plans help you in providing

financial security to your family in your absence. Specially formulated policies include children's plans;

retirement plans and investment and savings products that help you realize the dream of securing your

future financially. The various insurance products and policies on offer by ING

Vysya.Insurance.Company.include:

Protection Plans

58
 • Conquering Life

Savings Plans

o Reassuring Life
o Creating Life
o Safal Jeevan
o Creating Life Money Back
o Safal Jeevan Money Back
o ING LifePlus
o ING PositiveLife
o ING Creating Star

Investment

• Rewarding Life
• Powering Life
• New Freedom Plan
• New One Life
• New Fulfilling Life
• High Life
• High Life Plus

Retirement
The life insurance, medical insurance,
• Best Years
• New Future Perfect general insurance, long-term care
insurance,
Riders
group insurance, company insurance and
• Term Rider financial services insurance products and
• Waiver Of Premium Rider mutual fund by ING Vysya Insurance are
• Accidental Death Rider
available with the ING Vysya Insurance
• Accidental Death, Disability And Dismemberment
Rider Company branches, insurance agents and
• Platinum life brokers and an insurance agency near
you.

59
 LIFE INSURANCE CORPORATION.

LIC INSURANCE CORPORATION HAS BEEN ESTABLISHED AFTER THE MERGE OF 256
PRIVATE INSURANCE COMPANIES AFTER INDEPENDANCY.

ICICI Prudential offers a variety of policies that give you the benefits of protection and the opportunity
to save for important assets or events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* and the facility
of extended insurance cover.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* along with
flexible liquidity options.

A unit-linked insurance plan with an assurance of Capital Guarantee*, which offers you the benefit of a
limited premium payment and coverage term

A market linked insurance plans that meet your Investment and Protection needs.

60
Complete market-linked insurance plans that adapt itself to your changing protection and investment
needs, throughout a lifetime.

An insurance plan that gives added protection savings and multiple options, all in one!

An insurance plan that gives added protection savings, multiple options, plus the power of liquidity.

A traditional endowment savings plan that offers both high returns and protection.

An endowment savings plan that allows you to get back substantial survival benefits without having to
wait till the maturity date.The capital guarantee is applicable only on the invested premium and the
declared bonus interests.
Savings Plans

Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier
generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades.
ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment.
These solutions are developed to ensure your peace of mind for the years to come. For further
information on our Retirement Solutions, the brochure.

Choose from amongst 6 retirement plans:

A flexible unit-linked retirement solution that offers flexibilities during the accumulation as well as
payout phase.

A regular premium unit-linked pension plan with an assurance of Capital Guarantee*

A regular premium linked pension plan that gives you the freedom to choose the amount of premium,
and invest in market-linked funds, to generate potentially higher returns.

61
A single premium linked pension plan that gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns.

A regular premium pension plan that gives you the flexibility to choose between 3 levels of sum assured
for the same level of total annual contribution.

A regular premium pension plan that helps you save for your retirement while providing you with life
insurance protection.
*The capital guarantee is applicable only on the invested premium and the declared bonus interests.

Choose from 5 Annuity options at the time of vesting

1. Life Annuity

2. Life Annuity with return of purchase price

3. Life Annuity guaranteed for 5, 10, 15 years

4. Joint Life, Last Survivor without return of purchase price

5. Joint Life, Last Survivor with return of purchase price.

BAJAJ ALLIANZ LIFE INSURANCE

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55

years in the Indian market, together are committed to offering you financial solutions that provide all the

security you need for your family and yourself.

62
Bajaj auto limited is the largest manufacturing of two and three- wheelers in India and also of the largest

manufacturers in the world. Baja Auto has been in operation for over 55 years. Allianz AG is in the

business of general ( property & causality) Insurance

CHAPTER - 5
PRODUCT OF HDFC SLIC

63
64
65
 UNIT LINKED YOUNG STAR PLAN

Invest in your child’s dreams, and secure your self-respect:

As a parent, your priority is your children’s future and being able to meet their dreams and aspirations.

Today, providing a good education, establishing a professional career or even a modest wedding is

expensive. Costs are increasing fast. Just imagine how much you will need when your children take

these important steps in life.

Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit

Linked Young Star Plan. So that your child is able to lead a life of respect and dignity with a secured

financial future.

HDFC UNIT LINKED YOUNG STAR PLAN

The HDFC Unit Linked Young Star Plan gives you:

• An outstanding investment opportunity by providing a choice of thoroughly researched and

selected investments.
• Valuable protection in case of the insured parent’s unfortunate demise.
• Very flexible benefit combinations and payment options.
• Flexible additional benefit options such as critical illness cover.

You can choose your premium and the investment fund or funds. We will then invest your premium, net
of charges in your chosen funds in the proportion you specify. At the end of the policy term, you will
receive the accumulated value of your funds.
In case of your unfortunate demise during the policy term, HDFC Standard Life will continue the policy

AND continue to pay the original premiums you had chosen. Your family will receive the Sum Assured

you had chosen* plus the fund built up by your and HDFC Standard Life’s contributions.

*** Payable at the time of death

**Payable at the end of the policy term

Use HDFC Standard Life’s excellent investment options to maximise your savings and maximize your

child’s achievements. We will provide security for your child and make those savings on your behalf, in

your absence.

66
EASY STEPS TO YOUR OWN PLAN

Step 1 Choose the premium you wish to invest.

Step 2 Choose the amount of Protection (Sum Assured) you desire.
Step 3 Choose the additional benefit options you desire.
Step 4 Choose the investment fund or funds you desire.

67
68
 MONEY BACK PLAN

Secure your financial independence. Live life on your own terms.

You have always believed in living life on your own terms. So why let the changing realities of
everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure
that you have the necessary funds to meet your future financial needs.

69
The table below will help you identify and classify some of your financial goals. You can prioritize

these goals and set your objectives accordingly (see indicative table given below).

LONG-TERM GOALS SHORT TERM GOALS

Provide adequate cover for Life, Buying a car
Critical Illness or disability.
Saving for big-ticket assets like your Saving for your marriage
house.
Saving for your children’s education Vacation abroad
Having a regular system for savings

HDFC MONEY BACK PLAN

The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:

• A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the

policy term (see the table given below) – an ideal way to secure your long- term as well as short-

term financial goals.

• A lump sum payment on survival up to maturity date.
• Valuable protection to your family by way of lump sum payment in case of your unfortunate

death within the policy term. This is over and above any earlier payouts.

Making the right kind of investment will enable you to achieve your objectives – be it your

immediate expenses or else securing your future financial needs. Our Money Back Plan gives you a

wide range of terms and cash benefit schedule to choose from. A summary of Key Benefits

including the cash lump sum payments, expressed as a percentage of Sum Assured is shown below:

KEY BENEFITS

Total Policy Term

Survival Benefit Death Benefit
Within
5 Yrs. 10 Yrs. 15 Yrs. 20 Yrs. 25 Yrs. 30 Yrs. Policy
Term
10 40% 60% +- - - - 100%

70
 Attaching
Bonuses Sum
40% +
Assured
15 30% 30% Attaching - - -
+
Bonuses
attaching
25% +
bonuses
20 25% 25% 25% Attaching - -
(Over
Bonuses
and
20% +
above
25 20% 20% 20% 20% Attaching -
the
Bonuses
25% + earlier
30 15% 15% 15% 15% 15% Attaching payouts).
Bonuses

MATURITY VALUE

On maturity you receive survival benefit due at that point of time along with attaching bonuses for the

full Sum Assured calculated for the full term.

You can ensure your financial independence. And be able to live life on your own terms.

EASY STEPS TO YOUR OWN PLAN

Step 1 Choose the amount of targeted savings and policy term using our Financial Planning Tool.
Step 2 Choose from any one of the 4 additional optional benefits as per your requirement.
Step 3 Work out the premium payable and Sum Assured with our Financial Consultant.

Single Premium Whole of Life Plan

Single Premium Whole of Life Insurance Plan is well suited to meet your long term investment needs.

This participating (with profits) plan offers you the following benefits:

• Whole of life plan aimed at providing long term real growth of your money.

71
• Single premium investment plan.

• Predetermined exit options occurring throughout your life time.

• In case of unfortunate demise during the policy term, this participating (‘With Profits’) insurance

plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are

usually added annually. An additional Terminal Bonus may be paid depending on the

performance of the underlying investments.

• On exercising exit option we will pay the Sum Assured and compound Reversionary Bonuses,

which are usually added annually. An additional Terminal Bonus may be paid depending on the
performance of the underlying investments.

UNIT LINKED ENDOWMENT

Invest in financial security and self-respect for you and your family.

You have given your family the very best. And there is no reason why they should not get the very

best in the future too. With HDFC Unit Linked Endowment, you can ensure that your family remains

financially independent, even if you are not around. You can ensure that they live a life of respect

and dignity.

The HDFC Unit Linked Endowment Plan gives you:

• An outstanding investment opportunity by providing a choice of thoroughly researched and

selected investments.
• Valuable protection to your family in case you are not around.
• Flexible benefit combinations and payment options.
• Flexible additional benefit options such as critical illness cover.
• Access to your accumulated fund before maturity.

72
You can choose your premium and the investment fund or funds. We will then invest your premium, net
of premium allocation charges in your chosen funds in the proportion you specify. At the end of the
policy term, you will receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured
(less any withdrawals you have made in the two years before your claim) and your total fund value to
your family.
Use HDFC Standard Life’s excellent investment options to maximise your savings & secure your and

your family’s future. We will provide financial security for your family in your absence.

All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to
different risk factors.

HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Endowment is the

name of this plan. The name of our company and the name of our plan do not, in any way, indicate the

quality of the plan, its future prospects or returns.

EASY STEPS TO YOUR OWN PLAN

Step 1 Choose the premium you wish to invest.

Step 2 Choose the amount of protection (Sum Assured) you desire.
Step 3 Choose the additional plan benefits you desire.
Step 4 Choose the investment fund or funds you desire.

73
74
 CHAPTER - 6
CHANNAL DEVELOPMENT

CHANNEL DEVELOPMENT

Recruiting and selecting sales personnel is an important part of personal selling strategy and also
important for sales organizations. But after selecting sales personnel/ initial sales training is required to
bring new sales personnel up to expected productivity level and continuing sales training is needed to
maintain more experienced safes personnel to a high level of efficiency it also requires motivational and
supervisory efforts.

Corporate and direct sale associates recruit and select salesman or field executive on the basis of job
specification as desired by them considering the nature of job. These organizations set forth in the job
description a set of the qualifications that a person should posses in order to perform the job
satisfactorily.

75
RECRUITMENT:

These organizations also have done the recruitment by using both the methods i.e. internal sources and
external sources. Internal sources imply recruitment from within the organization while external sources
imply recruitment from outside the organization.
Internal sources used by these organizations:

1. By giving promotions.
2. By asking their existing sales persons for contacts.

External sources used are as follows:

1. By recruiting former employees of their own organization,
2. Through employment agencies.
3. Sales force of other sales organizations.
4. Through educational institutions.
5. Through advertisements.

The financial consultant in HDFC SLIC

An FC at HDFC SLIC is one of the main strengths of the company. It’s a partnership that results in

unlimited growth opportunity with the company.

ROLE: To identify prospective customers provide tailor-made solutions to cater to their individual

needs conducts, regular reviews to keep customer on tract and last but not least achieve target.

THE BENEFIT: A premium product portfolio that cater to a wide range of financial needs, excellent

back end support, attractive returns and benefits round the clock customer service and extensive training

for that edge over the competition.

THE ADVANTAGES: no start up capital, any supervision, flexible working environment and

unlimited earning potential.

76
BE A FINANCIAL CONSULTANT: Being an HDFC SLIC FC can be enriching and exciting career

option. It’s an opportunity to associate with an industry leader. Be in touch with a latest and finest

insurance practice from around the globe and grow both personally and professionally. Here are some of

the benefits of being a part of HDFC SLIC -

 Unlimited earning potential.

 A clear career path.

 All round support through advertising, you’re in home consultant’s world class training.

 A comprehensive benefit package.

Being a financial consultant over HDFC SLIC, you will go through a training, career, reward and

recognition and remain well-informed and knowledgeable about the company’s product in the market.

There is a future focuses on soft skill such as communication, managing long term relationship and

selling skills, which are very relevant in service-drive industry like life insurance. State of art

infrastructure training facilities coupled with an excellent faculty guarantee and exceptional learning

environment. For FC who might be occupied with their daily business/ professional routine. HDFC

SLIC also offer commercial training options such as online and self –learning are also provided by the

organization. A 2 days training schedule covers the mandatory IRDA training requirement and HDFC

SLIC product training module revision session ensures that the candidates thoroughly understand the

course contents and the well prepared for the licensing examination. Theoretical training is inter shared

with practical appointment settings with potential customer, giving FC a feel of how their business will

work from the very first day. All through the sales development managers who provide continues

support to FC in achieving independence towards growing business. After the training they have to

undergo online or a manual examination conducted by IRDA after qualifying the examinations, they get

a certificate from RNIS{ Ritu nanda institute of insurance}.

77
What does it take to be an HDFC SLIC financial consultant?

At HDFC SLIC , we believe that our FC are our ambassadors to the customer. They are a key source of

business for the organization and are the continuing link with our clients that’s why we take a lot of care

in recruiting and developing our advisor force, so that we continue to set higher standards of quality in

service and salesmanship. To cater the need of the knowledge- oriented market place, we look for 12th

pass, good communication and enjoy meeting new people . Prior sales experience is an added benefit.

Some of the qualities we seek are:

-self motivation.
-A master communicator.
-A go getter.
- A 12th pass.

TRANNING: At HDFC SLIC, we understand the importance of training in dynamic business

environment. Our FC go through both generic and specific professional programmes that helps them.

CAREER: At HDFC SLIC career development is emphasized upon from the very day the FC join the

office. Though individual meetings with his/her manager , the FC can discuss various issues related top

business development and career enhancement and expectation from the organization in terms of

challenging career in insurance sector.

THE JOB PROFILE OF FINANCIAL CONSULTANT INCLUDES :

SEARCH FOR POTENTIAL CUSTOMERS-

 Data base

 Questionnaire

 Cold calls

LIST OUT PROSPECTIVE CLIENTS-

 Prospecting

78
  Study of customer profile

 Personal visits

 Telephonic follow up

 Maintain data base

CLOSURE OF SALES-

 Gaining access

 Relating skills

 Need discovery skill

SEARCH FOR POTENTIAL CUSTOMER:

 DATA BASE: the first step to get prospective clients through generation of database. We at the

HDFCSLIC followed three types of data base.

WORKSITES: Upcoming BPO’S, shopping malls, government offices etc provided an

excellent store house of excellent storehouse for prospective clients. They are mainly set up in

NCR.

OLD CUSTOMER: According to parito theory 80% of business come from 30% of old

customers so we got all the names and addresses of all existing customers of the specified area.

The concept gave as a large business as the requirement of there customers has changed and they

were aware about the bank and its working.

REFERENCE BASED: Reference gave us a good amount of data base which was capitalized

upon. There database were collected from the people who already the customers of the bank and

whose database were with us. We requested each existing client to give us two or three names of

such people who might be interested in knowing about the products of HDFC SLIC.

79
  COLD CALLS: A part from the help of database and questionnaire we also got some

 prospective client through cold calls. There are calls made to unknown person at a random

manner and then making a brief enquiry about their perception about the bank and its products.

But one things which is important here is that the area to which we call has a major impact to the

result. E.g. Defence colony

DEFINITION OF AGENT

The Indian contract act of 1872 defines an agent as “a person employed to do any act for another or to

represent another in dealing with third person”.

WHY WE HAVE CHOSEN THE TITLE ‘CONSULTANT’?

Typically people associate agent with product providers, who merely act as middlemen, between the

customer and the company. HDFC SLIC looks at its representatives much more than just agents.

Our representatives are professional and skilled advisors who are able to recommend the best solutions

based upon the customer’s needs.

Furthermore , with the imminent entry of new players in to market, we believe product will become

more complex, and customer expectations of financial advisors will increase.

Given this environment we believe that the successful advisor will have to assume the responsibility of a

financial ‘Consultant’.

The title consultant therefore reflects the image we wish to develop in the market.

FUNCTION OF AN AGENT:

The duties and functions of an agent are as follows:

1. To contact business according to the directions given by the person/company they represent.

2. To exercise reasonable and diligence and skill while conducting business.

3. To summit paper accounts in the company.

80
 4. To act in good faith towards the person/company.

5. To perform his/her duties personally.

CRETRIA FOR BECOMING AN AGENT

It is required that a person making an application for license to act as on insurance agent.
 Is a citizen of India

 Is at least 18 years of age as on the date of application.

 Possesses the minimum educational qualification of a 12th standard of equivalent examination n

conducted by any recognized board/institute of education.

 Has not been found to of unsound mind by a court of completed jurisdication.

 Has not been found guilty of criminal misappropriation or criminal breach of trust or of cheating
or of forgery or of an attempt to commit any such offence.

 Has not been found guilty of, or has not knowingly participated in or connived at any fraud,
dishonesty or misrepresentation against an insurer or an insured.

 Has not been found violated the code of conduct as may be specified by the IRDA regulations.

TRAINING OF INSURANCE AGENT

The IRDA have specified that each persons aspiring to be an agent has to undergo practical training. The
training has-
• To be 100 hours in life insurance business.

• To be conducted by an institute approved and certified by IRDA.

LICENCING PRCOSESS

The licensing process would start with the insurer sponsoring a candidate for practical training. On

completion of the mandated training, the applicant has to make an application in specified forms for

undergoing written exams. On clearing of both his written and oral exam, the applicant will make an

application to the ‘designated person’ of the sponsoring licence. Based on meeting, all the above

81
requirement and submission of application fee, the designated person will issue the license along with

the identity card.The license is valid for a period of 3 years unless terminated or surrendered. For any

renewal of license, the agent needs to undergo additional 25 hours of training in either life or general

form as approved institution. If the designated person refuses to grant or renew license under this

regulation, he shall given the reasons therefore to the applicant.

CODE OF CONDUCT FOR INSURANCE AGENT

Every person licensed to act, as an insurance agent shall be subject to code of conduct specified below:

Every agent shall-

 Identify himself and the insurance company of which he is an insurance agent, disclosing

his certified of licence to the prospect on demand for the purpose of soliciting or

procuring insurance business.

 Disseminate the requisite information in respect of insurance products offered for sale by

his insurer, and also by other insures in the market, taking into account the needs of the

prospect for insurance before offering any insurance product.

 Disclose the commission offered to him in respect of the insurance product offered for

sale.

 Determine the premium to be charged by the insurer for the insurance product offered for

sale.

 Explain to the prospect in regard to information required in the proposal form by the

insurer, and also the importance of disclosure of material information to the insurer.

 Bring to the notice of the insurer any habits of income of the prospect, in the form of a

report ( may be called as Insurance Agents confidential report) along with every proposal

submitted to the insurer, any material fact that may adversely affect the underwriting at

reasonable enquires about the prospect.

82
  Inform the prospect regarding the acceptance of the proposal by the insurer promptly.

 Ensure that all possible steps foe delivery of the policy bond from the insurer to the

prospect within 45 days of the date of proposal.

 Obtain the requisite documents ( initially medical reports in case of life insurance

business) at the time of filling the proposal form with the insurer, and the other document

asked by the insurer for completion of the proposal.

 File with the designated person, the certified copy of his agreement with the insurer (copy

of the agreement shall be certified by any officer of the insurer authorized by the

designated person) within fifteen days the date of his appointment as insurance agent as

mentioned in regulation 4 above .

 Hand over a copy of the proposal form or any other form to the propment before

submitting such form to the insurer for purchase of insurance contract.

 Abide by any matter that has been notified by the authority in its notification

EVERY AGENT SHALL NOT

 Solicit or procure insurance business without holding a certificate of valid licence.

 Advice or include the prospect i.e. omit to disclose the material information in the proposal form.

 Submit wrong information in the proposal form or in the documents submitted to the insurer for

acceptance of the proposal.

 Utilize has handwriting in respect of answer to the questions in the proposal form, which
contains the signature of the prospect.

 Provided that if the prospect is an illiterate, the handwriting in the proposal form shall be form

another person who is not an insurance agent, and such proposal shall be countersigned by him (

the insurance agent) as a witness.

83
 Utilize his handwriting in respect of answers to the questions in the medical reports.

 Behave in discourteous manner with the prospect.

 Interfere with any prospect introduced by any other insurance agent.

 Offer better term and conditions than offered by his insurer.

 Part to or share his agency commission with any prospect or any other person.

 Receive a share of the benefit payment payable to the policyholder or the clamant or the

beneficiary.

 Give advice to any policyholder for termination of the insurance contract with any insurer in

order to effect a new proposal within one hundred eighty days from date of such termination.

 Indulge in any action which is against the agreement between him and his insurer.

 Apply for fresh license to act as an insurer agent , if his earlier one has been terminated by the

authority within five from the date of termination.

 Remain or become a director of an insurer carrying on insurance business in india.

 Obtain the signature of the proposal, or the signature of yhe life assured, or the signature of any

other relevant person, in any form which remains unanswered or blank to the questions therein

all theof such signature.

 Every insurance agent shall, with a view to conserve the insurance business already procured

from all persons who have become policyholders of the insurer through him.

 Advice every policyholder to effect nomination or assignment or change of address or exercise

of options, as the cause may be, offering necessary assistance in this behalf wherever necessary.

 Make every attempt to ensuring to prevent the lapsation of policy to enable the policy to remain

in force for the full benefits under the policy.

 Render necessary assistance to the policyholder or claimants or beneficiaries in filling and filling

claim form and in complying with the requirement laid down in relation to settlement of claims

84
 by the insurer.

 An insurance agent shall comply with section 40, 40-A, 41, 42, 48-A , 102 and 103 of the act, or

regulation or notification of the said act or of any relevant act, or of any notifications regarding

code of conduct, or any direction by authority.

 Explanation in this regulation ‘any other for’ means such form, which shall be supplementary to

the proposal form, which is furnished to the insurer by the proponent at to request of the insurer.

For example, the proponent may inform in a form to the insurer to reduce the sum assured or the

plan of assurance or the mode of payment of premium, after the proposal form has been

furnished to the insurer before the acceptance of insurance contract.

SALES PROMOTION THOUGH RECRUITMENT OF

FINANCIAL CONSULTANTS

STARTING THE PROJECT:

The project was started by understanding the products and the selection criteria specified by IRDA to

become a Agent of the company, after getting familiar with the products of the company and all the

norms of IRDA, the task was to recruit the Financial Consultant for the company with a desired profile.

MARKET SEGMENTATION

Market if full of people but every candidate taken from market is not a promising candidate hence

85
market segmentation is essential to enjoy quality people results. Selling require a good understanding

about the policies hence following profile were chosen to give the agency, they are
1. Charted Accountants

2. Mutual Fund Advisors

3. Tax Consultants

4. High Income Group

TELECALLING- After market segmentation Tele calling was the medium to interact with the

people on phone line and then fix the appointment for the further conversation. Tele calling was

done on the data provided by management of the company and some data was collected from the

sources like just dial service, internet, display boards and references. While tele calling a proper

pitch was developed to talk to people because it is a job to perform as the best offering which a

person can think of, while offering the same thing a different way was developed to talk to

people having different background.

COLD CALLING- Cold calling was also tried as a tool for sales promotion but it has given

results in few cases, the reason behind less success of this source was unavailability of the people

at their office or they are busy and few of them take cold calling casually. The profile that was

targeted requires proper channel to contact them and move forward.

FIXING APPOINTMENT AND MEETING PEOPLE-While tele calling a proper pitch is

maintained to meet the persons required by offering them the best what they want, when a person

is convinced on phone, a appointment was fixed to have further discussion about the products.

After fixing the appointment it is very important so that one should not miss an appointment in

confusion.

Supporting documents really help a lot while meeting peoples, as people belives in the proofs.

86
While talking to people it was observed that with the information about the industry sometime

making a relationship with them by any means helps a lot in doing a job.

FOLLOW UPS- Follow up was instrumental in the entire project this is the thing to which I will

like to give utmost importance. As selling insurance and appointing Financial consultants require

two or more than two meetings hence proper follow up is required to have good results. The

reason behind giving so much importance to follow up is any person who is targeted to offer the

agency not in a position to take the agency at that point of time or he wants to weigh the entire

alternative available in the market. In such casae follow up becomes the key to success.

AND FINAL DOCUMENTATION-Final documentation is done when a person gets ready to

make the agency. This step requires all the basic formalities to be completed. After the

documentation the training starts and after taking of 100 hours specified by IRDA a candidate

has to appear for the test and once he/she passed they become liable to sell insurance. Following

things are required for filling the form, they are:

 Identity proof

 Qualification certificate ( 12th result)

 7 photograph

 Pan card

 Draft amounted Rs825 on behalf of HDFC SLIC, payable at Mumbai.

 Age proof

 Residential proof

All these should be self attested.

REASONS WHY SHOULD A PERSON JOIN HDFC SLIC

87
1. SATISFACTION: The employee of the HDFC SLIC will always be satisfied with the work,

employer, organization and most important thing ‘self satisfaction’.

2. FREEDOM: The financial consultant will get the complete freedom in regards of way of doing the

work as well flexible timing.

3. EARNING: The financial consultant can earn a high income as commission depends upon the

performance, as more you perform more you get.

4. ATTRACTIVE ADDITIONAL BENEFIT FOR HIGH PERFORMER: Other attractive benefits

are given to the outstanding performer.

5. REWARDING CAREER: Being as an FC in HDFC SLIC is a rewarding career for the individual.

6. A SUCESSFUL TEAM: The organization work as a successful team with its FCs.

7. WORLD CLASS TRAINING: Proper training is imparted to the FC so as to enhance their

capabilities.

8. INFRASTRUCTURE SUPPORT: World class infrastructure is provided to the employee of the

organization.

9. COMPLETE AND DIVERSIFIED PRODUCT PORTFOLIO: HDFC SLIC has a attractive

products with give ease to the FC in selling.

10. COMMITMENT TO CREER AGENCY SYSTEM: The financial consultant will get the

complete commitment from the agency system.

11. SALES & MARKETING SUPPORT: Full support will be given by the sales and marketing in

order to support the work of the employee.

88
12. FINANCIAL STRENGH. Full financial strength will be with the employee to have a smooth

working in the organization.

RECRUITMENT OF FINANCIAL CONSULTANTS (FC) IN HDFC

STANDARD LIFE

This is a good business opportunity offered by HDFC standard life to become a

business partner and earn a good amount of money.

1.BUSINESS DESCRIPTION
Be our certified financial consultants join HDFC standard life insurance

as a Financial consultant and help analyze your costomer’s financial needs, provide customized financial

solutions to each one and conduct reviews on a regular basis to keep your customers on track.

Along with being a great career move you get associated with HDFC standard

Life Insurance, India’s most respected private Life Insurance company. We at HDFC standard life also

offer you unmatched support with various training programmes to help you excel in your endeavour.

Financial Consultants are those sources of a company who have their own relations and personal

contacts among common public that they use to generate business through. Company has certain criteria

to recruit these Financial Consultants.the steps are as follows.

1.He should be at least 12th passed

2.He should complete IRDA training.

3.He should clear the IRDA exam.

4.He should through successfully the exam and training.

2.EXCELLENT OPPORTUNITY

Join HDFC standard Life Insurance as a Financial Consultant and earn a rewarding career

Flexible work timings- you can work whenever you like. You can work full-time or part-

time,depending on your convenience.

89
Any one can join – Young graduates,housewives,Retired Personnel,Self-employed or working

Professionals.

Zero investment – there is no start-up capital required.Be your own boss with flexible working

environment,unlimited earning potential and opportunities to be part of a world class sales team.

Attractive Remuneration- company offers excellent commissions, award and rewards for the

performers. You have unlimited earning potential. Commission structure is pretty handsome and is 15-

40% and renewal commission of 5% second year onwards till the policy is in force.

Certificate by IRDA- you will get world class training free of cost and certification by insurance

regulatory development authority.

Documents required

8 Photograph

Age proof (Passport, Birth certificate, college leaving certificate,Driving License)

Address proof

Education proof

Copy of PAN Card duely singed

Cancelled Cheque of self

A candidate needs to bring a DD of 925/- in case of offline training and Rs.825/- in

case of online training towards HDFC SLIC LID payable at Mumbai.

3.RECRUITMENT PROCESS OF FCs

90
4.Benefits to FCs

Financial Benefits

Commission on insurance of every policy. Commission directly credited to

bank account of FCs within 15 days. These commission varies from 7.5-40/- according to plan .

BASIC COMMISSION

91
 First year commission payable on regular premium conventional issued on

or after 21st march 2007

Name of the Plan 1st year commission

Endowment Assurance Plan 40%
Money Back Plan 40%
Children’s Plan 40%
Term Assurance Plan 25%
Lone Cover Term Assurance Plan 25%
Personal Pension Plan 7.5%

RENEWAL COMMISSION

Renewal commission would be paid from the 2nd year onwards on regular premium

policies. Renewal commission is not payable on single premium plans.

Name of the Plan Renewal commission 2nd year onwards

Endowment Assurance Plan 5%
Money Back Plan 5%
Children’s Plan 5%
Lone Cover Term Assurance Plan 5%
Term Assurance Plan 5%
Personal Pension Plan 2%

BOUNS COMMISSION

Bonus commission would be payable on the first year premium received and

adjusted on the regular premium policies under the following plans,

1.Endowment Assurance Plan

2.Money Back Plan

3.Children’s Plan

4.Term Assurance Plan

5.Lone Cover Term Assurance Plan

92
 Bouns commission is not payable on the single premium plans and on the

policies issued under the personal pension plan and all Unit linked plan. Bouns commission rate

would depend on financial consultants crossing the minimum RNEP (Received Net Effective

Premium) within one year.

QUALITIES THAT HDFC SLIC DESIRED IN A FINANCIAL CONSULTANT

1. PERSONAL INTEGRITY

2. A CLEAR LIABILITY AND RESPONSIBILITY TO LEAD

3. A STRONG DRIVE TO ACHIEVE AND TO EXCEL

4. A ABILITY TO COMMUNICATE EFFECTIVELY

WHY FINANCIAL CONSULTANT: REASONS BEHIND THE SUCCESS:

Being an HDFC SLIC financial consultant can be one of the most rewarding careers one will find. It

is also hard because as an FC you contribute in the beginning to new business for the company, offer

world- class pre and post sales services to the clients with the support of the organization. An FC means

much more than a salesman or saleswomen, HDFC SLIC recognizes its FC as the ambassadors of the

organization in the market place and consider the FC force will be the biggest differentiating factor in

the coming years. That is why, they take a lot of care in recruiting and developing their FC force so that

they can maintain their standard of quality in service and salesmanship.

The competition and the customer awareness have forced the times to be knowledge oriented market

place. Appreciating the same. HDFC SLIC strive to get people with a reasonably good graduation

background as their FC. They also acknowledge and recognize prior sales experience of the person at

the time of recruitment at HDFC SLIC , your hard work pays off in the form of commission and

recognition. At HDFC SLIC , mentor provide scientific , methodical , and world class training in all

aspects of insurance sales, product information as well as selling skills programs. After the initial 100

93
hrs of pre – licensing training there is regular and structured tranning at all levels across the sales force.

The success that HDFC SLIC celebrates with pride in the organization and the culture that grooms as

well as its demands. It is a culture that:

 Gives you room to achieve, to grow and to seek new opportunities.

 Believes opportunities will come from clients needs. All that is needed to do is be alert as people

first and professional later. One good man says “the people make the company. The company is

people. All we are delivering is a piece of paper and promise. It is the people who have to

believe in it deeply”

 Seeks to be most innovative, the most tenacious in opening new markets and the most creative in

developing new products and offering state-of-the-art service to clients, brokers and agents

around the world.

 In the new millennium takes on e-commerce and technology as high priority with intensified

resource devoted to “the new technology” and internet based technology.

 If you are looking for a profession that allows you to value your independence turn to HDFC

SLIC. Being an FC allows to stay independent, financially as well as in term of working hours.

It gives a unique opportunity to positively change people’s lives by ensuring that they secure

their own as well as their family future.

94
 SWOT ANALYSIS OF HDFC SLIC

STRENGTHS:
HDFC SL’s strengths are many, to mention a few:

a) Global Presence:
Its collaborations and joint ventures with international companies such as Standard life, and
partnership with chub, enable it to bring the best service available world wide to its consumers.

b) Fast paced and flexible work culture which provides its employees autonomy to accomplish the
task without much pressure from the higher authorities. Thus, employees are motivated to give
their best to the organization. The core strength of Hdfc sl is the talent and innovativeness of its
people which enables it to provide the “right solution at the right time.”

c) The mass markets handled through a chain of financial consultants usage closer to the individual.
It has very strong distribution network.

d) Its pool of competencies : mutual funds, sum assured,etc

e) Ability to understand customer's business and offer right technology.

f) Long standing relationship with customers.

g)Pan India support & service infrastructure.

h)Best-value-for-money offerings.

95
WEAKNESSES:

a) HDFC SL Could not able to match LIC in remote area services.

b) Always emphasizes on numbers and fast results.

c) After sales service.

d) Less promotional campaigns.

OPPORTUNITIES:

a) Insurance industry booming at a rate of 45% every year.

b) Increasing consumer awareness about Insurance and its use.

c) Tremendous untapped potential of Insurance products in India.

d) Increasing competition.

e) Tie ups with various MNCs enable to extract their core competencies.

THREATS:

a)Local
a) assemblers are biggest menace for the company.
b)Entry of MNCs giving direct competition.
c)Govt. instability has a long term repercussions affecting company’s policies & its growth.

96
 CHAPTER - 7
SUGGESTION &
RECOMMENDATION

97
 SUGGESTION & RECOMMENDATION

MARKETING SUPPORT: More marketing support is required to create awareness in the market

about the policies of the company as done by the close competitors. It was observes that people are

really very conscious about the advertisement run by the company , and it can affect the sales of the

company. While appointing agent this problem was faces as they questioned about the less marketing

support by the company.

GOOD ATTRACTVE BROCHURES: Good attractive brochures are required to have a good impact

on the customer because once the policy is communicated by the agent to the customer the broacher

remains the key representative of the company. Hence agents requires good more attractive broachers.

MORE NUMBER OF POLICIES: It .was observed that if a company have more number of policies

designed to cater the specific need of people then it will have a different impact on people. HDFC SLIC

has lot of options available to cater the needs of different segments but if they can provide the policies

under the specific name it would be very beneficial in sales promotion. Company also needs to

concentrate on the competitors to have some good policies to beat the close competitors.

SERVICE SATISFACTION: Service satisfaction is very important in the service industry and HDFC

as a group has a good name in rendering quality services but due to some loopholes in some branches

the services gets affected and hence has have wrong impact on customer mind about the whole group

hence service has to be given the utmost importance to create goodwill in the market.

CONTINUOUS UP GRADATION: A financial consultant wants a continuous up gradation about the

policies of the company. They should be continuously upgraded as HDFC SLIC does and this point

should be highlighted while offering the agency.

• Positioning insurance as a means to fulfilling one’s duties during one’s lifetime.

• Fears relating to thefts, ailments, death could be addressed through ‘sensitive’ communication

98
 • Products designed to appeal women to improve her “self worth”.
• Money getting blocked: Promote it as a long- term commitment.
• Fears relating to claims: Need to promote “trust”. Demonstrating claim testimonials,
positioning as “worry free”.
• Low returns: Reposition insurance as a risk cover, security instrument rather than a financial
investment.
• Lack of understanding: Training of Channels
• To provide quality advice on products best suited
• Lack of Knowledge: Ease of Process, simplifying the product, procedural aspects
• Need to promote the quality of awareness
• The benefits: Leverage on Risk Protection or Returns oriented or both!
• The product: catering to life stages

Need for Branding in Insurance: Branding is more relevant in the Insurance market which not only faces
the problem of securing and retaining customers in an increasingly competitive marketplace but also
experiences the need for heightened relevance of the brand proposition in a world where brand has been
termed the new religion. In rural India, the LIC is especially synonymous with insurance. But in the
wake of competition insurance companies have to do a considerable brand building exercise at least in
urban India. Adequate time, investment and longer-term management of the brand are essential, not only
for success but also survival.

99
CHAPTER - 8
LIMITATION

100
 LIMITATION

 Many respondents had to be visited more than once to contact as the person in concern was busy

or was some time available.

 The reluctance on the part of respondent to give information was yet another limitation faced

during the course of study.

 Many respondents are unavailable with the given phone number for calling.

 Many phone numbers are wrong number which make inconvenient to complete the study.

 Many respondents are already attached with different insurance companies, so they not want to

talk with us.

 Satisfaction level of existing financial consultant is very much less.

 Products of the company are less flexible, company have to be more concentrate to make

attractive policies or schemes.

 Branches of the company are very less in Delhi NCR region as well different region of the

country.

101
CHAPTER - 9
CONCLUSION

102
 CONCLUSION

Life insurance sector is highly growing finance sector. HDFC SLIC is the private insurance orgnisation

Which is developing and growing at fast rate.Because of less advertisement, people are not aware of

HDFC-SLIC insurance plans. HDFC Standard life is renowned for transparency and high corporate

Governance standards.

Today marketing must be understood not in the old sense of market a

sale “telling and selling”- but in the new sense of satisfying customer needs. While selling life insurance

one does not sell any tangible product. That’s why it becomes very essential to understand customer

needs, which will help to distribute and promote the product effectively and it ill be easy to sell the

products. Life insurance is all about selling life, for which one should be very realistic and practical

because it’s a matter of a person’s life. Selling of insurance policies is not an easy job it is all about

convincing people, winning their confidence and assuring them for a safe future.

HDFC SLIC is most respected private life insurance company. In very short time it won the confidence

of people because of its unique features like good services and promising future insurance sector. While

working on this project I came to know facts about insurance business, that there is a cut throat

competition and every company is trying its best to sell the products. Hence it is required to strengthen

the selling chain by employing few people for the company with a desired profile. I have discussed

various issued in the project, which should be taken care of while recruiting the financial

consultants for the company.

Lastly I would like to conclude by saying quoting the following quote, which signifies the importance of

life insurance in ones, life.

103
 “Iron is strong but fire melts it,
Man is strong but death is stronger,
So survive death through life Insurance”

CHAPTER - 10
BIBLIOGRAPHY

104
 BIBLIOGRAPHY

THE DATA HAS BEEN COLLECTED FROM THE FOLLOWING SOURCES

SEARCH ENGINES:

WWW.GOOGLE.COM

WED SITES:

WWW.HDFCINSURANCE.COM

WWW.IRDAINDIA.ORG

VARIOUSE BOOKS/ BROUCHERS

PRODUCT MANUAL

DATA FROM COMPANY

105
 WORD OF THANKS

I take the opportunity to pay hearty regards to MIMT, Gr.Noida for lending me their kind support for
completion of my project.

I thank all those who directly or indirectly supported me morally, financially and through providing
knowledge by which I could complete my Research.

Last but not the least I am thankful to the management of HDFC STANDARD LIFE. & especially to my
guide Mr. Basu Jain and Vinay Malik whose Co-operation and guidance was a milestone in completion
of my project.

106
107