A PROJECT REPORT ON An Analysis Of Competencies required to manage Recruitment In Life Insurance Sector With Reference At HDFC LIFE INSURANCE

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:
AFTAB ALAM M.B.A 3rd Sem

Submitted To:
Mr. ANSUL MATHUR Assistant Professor M.B.A.Dept.

(Session 2010-2012)
ARYA INSTITUTE OF ENGG. AND TECHNOLOGY, KUKAS, JAIPUR
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PREFACE
In the insurance industry, there are two channels of distribution Alternative distribution and tide agency. Advisor recruitment is the part tide agency. My project is about agency recruitment and channel distribution of HDFC life

insurance Pvt.Ltd. Its means company is recruiting advisor for expanding its business. Company adopt chain marketing as a methodology for expansion. In this project, I have to make a cold call to the target market, get the appointment with them, convince them & close the sale positively. The queries, which asked by the client, should be solved by the discussion with the company guide. For Recruiting advisors, HDFC life insurance hold many activities like they do direct marketing for recruitment of advisors, they also recruit the management trainee for recruitment of advisors, they also do seminar and also include stall activities etc

The Researcher express his sincere gratitude to MR. Satya Prakash, his project guide who was so cooperative and helpful from the first day of his training till its end. He also helped him a lot enhancing his knowledge about the technicalities of Insurance sector. The researcher highly thankful to him for providing him constant support and encouragement throughout the project. The researcher also thankful to his team members for giving him the live experience of market and customers.

ACKNOWLEDGEMENT
Gratitude is the language of heart, when the language is from the heart, emotions prevail and when emotions prevail words fails. This Express my sincere thanks to all those who have directly or indirectly contributed toward the successful completion of this project. I would like to particularly mention my deep gratitude to Dr. Manish Jain and MR. ANSUL MATHUR, Management Studies giving their consent and blessings to undertake this training. I want to thank all the faculty member of MBA department for giving me their valuable guidance in the completion of my report. I feel immense pleasure in conveying my heartiest thanks and deep sense of gratitude to Mr. Satya Prakash Singh, Channel Development Manager HDFC Standard Life Insurance Company Ltd. Jaipur, for giving me an opportunity to work on the project.

(AFTAB ALAM)

EXECUTIVE SUMMARY
HDFC Standard Life insurance is the oldest life insurance company in the world. It is the largest insurer in the UK and is the 28th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. From my research at HDFC Competencies in recruitment, I found that the company has a lot of competition from other private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively HDFC SLIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of years premium is to be paid). The ideal premium would be between Rs. 5000 Rs. 25000 and an ideal policy term would be 10 20 years. HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like Aviva, ICICI, Max, Reliance and LIC use television advertisements to promote their products. The Indian consumer has a false perception about insurance they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance. Family responsibilities and high returns are the two main reasons people invest in insurance. Optimum returns of 16 20 % must be provided to consumers to keep them interested in purchasing insurance. On the whole HDFC standard life insurance is a good place to work at. Every new recruit is provided with extensive training on unit linked funds, financial instruments and the products of HDFC. This training enables an advisor/sales manager to market the policies better. HDFC was ranked 13 in the Best Places to Work survey. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the insurance market in India as it has around the globe.

CONTENTS
1. INTRODUCTION TO THE INDUSTRY 2. INTRODUCTION TO THE ORGANIZATION 3.RESEARCH DESIGN & METHODOLOGY TITLE OF THE STUDY DURATION OF THE PROJECT OBJECTIVE OF THE STUDY SCOP OF THE STUDY LIMITATION OF THE STUDY

4. FACTS AND FINDINGS 5. ANALYSIS AND INTERPRETAION 6. SWOT 7. CONCLUSION 8. RECOMMENDATIONS AND SUGGESTIONS 9. APPENDIX 10. ANNXEURE 11. BIBLIOGRAPHY

1. INTRODUCTION TO THE INDUSTRY

Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. Every asset has normally an expected lifetime. During this period, it is expected to perform and provide income/comfort to the owner. The owner, being aware of this, plans the things in such a way that by the time the expected lifetime of the asset expires, he is ready with the funds required for its replacement. In this way, he ensures that the value or income from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes its expected lifetime! All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset gets actually lost or destroyed by accident or some other unfortunate event before the completion of its expected lifetime. The owner and those deriving benefits from the asset will suffer because the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating such adverse consequences. To sum up, assets are insured, as they are likely to be lost or made non-functional through an accidental occurrence. Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the perils. It only compensates, may not be fully, the economic or financial loss resulting to the asset from such damage or destruction.

History of Insurance
The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses included: Loss of ship by sinking due to bad weather in high seas. Goods in transit by ship robbed by sea pirates. Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583.

Life Insurance in India

In India, insurance started with life Insurance. It was in the early 19 th Century when the Britishers on their postings in India felt the need of life insurance cover. It started with English Companies like... The European and the Albert. The First Indian insurance company was the Bombay Mutual Assurance Society Ltd., formed in 1870. In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of Indian companies were formed in various parts of the country to transact insurance business. To name a few:: Hindustan Co-operative and National Insurance in Kolkata; United India in Chennai; Bombay Life, New India and Jupiter in Mumbai and Lakshmi Insurance in New Delhi.

Nationalization of Life Insurance in India:

In 1956, life insurance business was nationalized and LIC of India came into being on 1.9.1956. The government took over the business of 245 companies (including 75 provident fund societies) who were transacting life insurance business at that time. Thereafter, LIC got the exclusive privilege to transact life insurance business in India

Types of Insurance

1. Non-Life Insurance

2. Life Insurance

Basically Non-Life Insurance Includes: Marine Insurance Fire Insurance Miscellaneous Insurance Vehicles Furniture Building Aircrafts General

Life Insurance Includes: Only Human Life Insurance Human beings sickness, illness Long term concept

Introduction to Competencies:
Competencies are probably most closely related to abilities. However, the term ability normally means either able to do or a special talent; while competencies relate more to expertise and experience. Competencies can be thought of as the state or quality of being well qualified to perform a task. A person gains competency through education, training, experience, or natural abilities.

Klemp (1980, p21) defined competence as an underlying characteristic of a

person which results in effective and/or superior performance on the job. While a more detailed definition is a cluster or related knowledge, skills, and attitudes that reflects a major portion of one's job (a role or responsibility), that correlates with performance on the job, that can be measured with well-accepted standards, and that can be improved with training and and development (Parry, 1996, p50).While there are many definitions of competency, most of them have two common elements:

o o

The competency is an observable and measurable knowledge and skills. The knowledge and skills must distinguish between superior performers (or exemplary performance) and other performers.

David McClelland
The original use of competencies was conceived by David McClelland. He first used it as an alternative for the replacement of intelligence tests with criterion reference testing (McClelland, 1973). He argued that intelligence tests were not valid predictors of intelligence and irrelevant to the workforce. There used to be a joke among Psychologists that intelligence was what the intelligence test measured, but McClelland thought the joke was uncomfortably near the whole truth and nothing but the truth.

Criticisms
The two major complaints about competencies seem to be its lack of a common definition and understanding and the possibility of becoming ethnocentric.While many terms in our craft lack a common definitions and understanding among its members, competencies seem to be about the worst offender. In some cases, the word entirely changes. For example, Behavioral-Based Interviewing looks as if it is mostly based upon the concept of the competency modeling process. Since competencies often encompass attitudes, there is the danger of them becoming so specific that it could promote ethnocentrism, rather than diversity. One has to be quite careful when including attitudes with competencies.

Introduction to Recruitment:
In simple terms, recruitment is understood as the process of searching for and obtaining applications for jobs, from among whom the right people can be selected. Theoretically, recruitment process is said to end with the receipt of applications, in practice the activity extends to the screening of applications so as to eliminate those who are not qualified for the job.

According to Flippo
Recruitment refers to the process of searching for and obtaining applicants for jobs, so that from among them right people can be selected. In reality, the term is used to describe the entire process of employee hiring. There are recruitment boards for railways, banks and other organizations.

Human Resource

Determine Recruitment Needs

Job Analysis

Planningdetermine the number and type of people a firm needs. Job analysis and job design HRP helps
specify the tasks and duties of jobs and the qualifications expected from job holders .

Purpose and Importance

1. Determine the present and future requirements of the firm in conjunction with its personnel-planning and job analysis activities. 2. Increase the pool of job candidates at minimum cost. 3. Help increase the success rate of the selection process by reducing the number of visibly under qualified or over qualified job applicants. 4. Meet the organizations legal and social obligations regarding the composition of its workforce. 5. Begin identifying and preparing potential job applicants who will be appropriate candidates. 6. Increase organizational and individual effectiveness in the short term and long term.

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Factors Governing Recruitment

External Factors: Demand and supply Unemployment Rate Labour Market Political and legal environment Sons of soil Image Internal Factors: Recruitment Policy HRP Size of the firm Cost Growth and expansion

External Factors Supply and demand Unemployment rate Labour market Political-legal Sons of soil image

Recruitment

Internal Factors Recruitment Policy HRP Size of the firm Cost Growth and expansion

Recruitment Process

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Personnel Planning

Job Analysis

Employee Requisition

Job Vacancies

Recruitment Planning -Numbers -Types

Searching Activation Selling -Message -Media

Applicant Pool

Screening

Potential Hires

Strategy Development -Where -How -When Application Population Evaluation And control

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2. INTRODUCTION TO THE ORGANIZATION

COMPANY PROFILE The HDFC Group

HDFC was incorporated in 1977 with two primary objectives - to enhance housing stock in the country through housing finance systematically and professionally and promote home ownership. Today they are the largest residential mortgage finance institution in India, with a net worth of Rs. 2,703 crores as of March 31, 2002 and an asset base of over Rs. 22,000 crores. The World Bank considers us a model private sector housing finance company in developing countries and a provider of technical assistance for new and existing institutions, in India and abroad.Their deposits have been awarded the highest safety credit rating 'FAAA' & MAAA by CRISIL and ICRA respectively for eight consecutive years.While being a household name in India and the undisputed market leader in the fields of housing finance, their social responsibilities have remained in focus.

GROUP COMPANIES OF HDFC

HDFC Bank Limited HDFC Securities Limited HDFC Asset Management Company Limited HDFC Realty Ltd. HDFC Deposits HDFC Standard Life Insurance HDFC Chubb Intelenet

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HDFC Bank Ltd.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive approval from the Reserve Bank of India (RBI) 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 Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Awards
Best Listed Bank of India by Business world. Best Domestic Bank by The Asset Magazines Triple A Country Award. Best Local Cash Management Bank2006 in Large and Medium segments Asia money Awards

Best Bank in India in 2006Euro money Awards

HDFC Asset Management Company Ltd.

HDFC Asset Management Company Ltd. (AMC) was incorporated under the Companies Act, 1956; on December 10, 1999 and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated June 30, 2000.HDFC Asset Management Company Ltd. (AMC) is one of the most growing Mutual Fund Company of India.

Awards
HDFC mutual fund was recently awarded the CNBC Moddys investor service award for the best performing fund house for the one year category. Zurich also received the best performing fund house award for the three year category. 14

HDFC Chubb

Its partnership that leverages the strengths of two financial powerhouses combining the trust and local experience of HDFC, Indias premier financial services company, with the 120 years proven expertise of CHUBB, a global leader in non-life insurance backed by a network of 134 offices in 31 countries. Chubb today provides property and casualty insurance through more than 10,000 employees in 32 countries of North America, South America and Asia.

Intelenet

Intelenet is a leading BPO service provider with the focus on providing solutions to global Organizations seeking to reduce the cost while consistently maintaining superior level of standards two leading global investorsHDFC and Barclays-provide the financial banking Intelenet needs to lead in a global marketplace. Barclays is a venerable financial services group headquartered in the United Kingdom, ranking amongst the services group headquartered in the United Kingdom, ranking among the Top 10 banks in the world based on market capitalization.

Intelenet impacts your business by seeking to reduce costs while consistently maintaining superior levels of service. Our solutions extend across all strata of BPO, technology and consulting.

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Awards Deloitte Technology Fast 50 India 2005 Program

Intelenet Global Services has been ranked first among BPOs while standing third overall in the Technology, Media and Telecommunications (TMT) sectors across India.

Deloitte Technology Fast 50 India 2006 Program

Intelenet Global Services has continued its ranking, second time in a row, as amongst the top 50 fast growing technology companies in India.

Maharashtra Information Technology Awards 2005

Intelenet Global Services came in a close second in the IT Enabled Services category at the Maharashtra Information Technology Awards2005.

HDFC Deposits

DEPOSITS
HDFC has instituted well-defined service standards for both depositors and deposit agents. HDFC has been able to mobilize deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs. 8,741 crores in March 2006. Much of this success can be attributed to its strong brand image, superior services, security and above all, the significant contribution made by HDFCs deposit agents. HDFC has over 50,000 deposit agents and distributes all its retail savings (deposit) products primarily through this channel.

Awards
HDFC has been awarded AAA rating and MAAA rating for its deposits from both CRISIL and ICRA for the twelfth consecutive year, representing highest safety as regards timely payment of principal and interest.

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HDFC Realty Ltd.

Realty Limited
HDFC Realty Ltd. Is a new, organized electronic marketplace for properties, to provide the entire gamut of real estate services, bringing together the click 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 Securities Ltd.

SECURITIES
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 Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life U.K..

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Highlights
First life insurance Company in the private sector to get license from the regulator IRDA. First life insurance Company to come out with Term Assurance Plan. First private life insurance Company to declare bonuses consecutively for 6 years from inception. First life insurance Company to introduce open option to the pension plan policyholders. First life insurance Company to introduce Automatic Allocation Option to all the policyholders under Unit Linked Plans. Only life insurance Company to give 24 free switching option to Unit Linked Policyholders. HDFC is one of the fastest growing Private Life Insurers and today have more than 8 lakhs policyholders. HDFC have one of the widest networks with more than 160 branches and servicing over 440 towns. HDFC Standard Life Insurance Company has one of the highest brand recalls of around 86%. (Source: AC Neilson ORG MARG, September 2005). A high brand recall translates to higher chances of customers buying insurance from them.

Awards
Over a decade of its operations, HDFC Standard Life Insurance Company Ltd. has been recognized, rated and awarded by a number of organizations, which include:

Winner of the Out Look Money Award for two consecutive years. Voted as the Most Respected Life Insurance Company by Business World in 2004.

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Major Insurance Players:

Licenses have been issued for the following companies ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited

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IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language; claims

procedure in both life and non-life; setting up of grievance redressal machinery;

speedy settlement of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to payment of

claims.

It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy.

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HDFCs KEY STRENGTHS

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

Track Record so far Our cumulative premium income, including the first year
premiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06. We have covered over 1.6 million individuals out of which over 5,00,000 lives have been covered through our group business tie-ups.

VISION & VALUES

Our Vision The most successful and admired Life Insurance Company, which means that we are most trusted company, the easiest to deal with, offers the best value for money, and set the standards in the industry. In short, The most obvious choice for all. Values Integrity Innovation Customer Centric People Care Team Work Joy & Simplicity

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ANALYSIS OF COMPETENCIES IN RECRUITMENT

Defination of an agent
Insurance agent is one who acts on behalf of another. The another' on whose behalf the agent acts, is called the Principal. This is the simple definition. The lawyer is the agent of the client, when he argues the case in court. An ambassador is an agent of his country. .According to Section 182 of the Indian Contracts Act, an agent is a person employed to do any act for another or represent another in dealing with a third person. The person for whom such act is done or who is so represented called the 'principal'. In the insurance industry , the term Agent is ordinarily applied to a person engaged by the insurer to procure new business.

AGENT REGULATION
Insurance Regulatory and Development Authority 'II (IRDA), constituted by the IRDA Act of 1999, issued the IRDA (Licensing of Insurance Agents) Regulations, 2000. These Regulations deal with the issue of licenses under "Section 42 of the

Insurance Act, 1938 and other matters

relating to agents.

By another notification in October 2002, these regulations were made ineffective for corporate agents
t

new IRDA (Licensing of Corporate Agents)

Regulations, 2002 were issued. These Regulations deal with the issue of licenses and other matters relating to corporate agents. The essential provisions of these regulations are reproduced at the end of this course and form part of the study material.

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In terms fields of these Regulations, a license will not be given, if the person is :o a minor o found to be of unsound mind o not possessj,ng the requisite qualifications and specified training not passed such Ixuminations as are specified by the Regulations found violating the code of conduct as specified by the Regulations. It is not only an individual who can become an agent. Collectives like companies, firms, banks, cooperative societies, etc., can also become agents. These collectives will designate one or more persons as 'Corporate Insurance Executives', who will be required to obtain licenses. Others who may also work for the corporate agent, will be called specified person and they will be required to obtain certificates.

METHODS OF REMUNERATING AGENTS

A life insurance agent works on commission basis. He is paid a stated percentage of the premium collected through his agency. Section 40 A( 1) of the Insurance Act stipulates that the maximum amount which can be paid to a life insurance agent, by way of commission or remuneration in any form, shall be. 35% of the first year's premium, 7 1/2 % of the second and third year's renewal premium and 5% of subsequent renewal premium. There are some exceptions to this. During the first ten years of the insurer's business, he may pay 40% instead of 35 % of first year's premium. Under certain circumstances, commission of 6% can be paid on the renewal premium even beyond the third year. Within these limits, the manner of remunerating the agent will be determined by to the insurer all the true facts about the prospect and the subject of insurance. He should not mislead either.

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PROCEDURE FOR BECOMING AN AGENT

The Insurance Act, 1938 lays down that an insurance agent must possess a licence under Section 42 of that Act. The licence is to be issued by the IRDA. The IRDA has authorized designated persons, in each insurance company, to issue the licences on behalf of the IRDA. The fee for the licence, the manner of making an application, etc., have been described in the IRDA Regulations. A licence issued by the IRDA will be valid for three years. The licence may be to act as an agent for a life insurer, for a general insurer or as a "composite insurance agent" working for a life insurer as well as a general insurer. No agent is allowed to work for more than one life insurer or more then onr general insurer. The qualifications necessary before a licence can be given are that the person (individual or corporate insurance executive) must be at least 18 years old have passed at least the 12th standard or equivalent examination, if he is to be appointed in a place with Population of 5000 or more, or 10th standard otherwise have

undergone practical training for at" least 100 hours in life or general insurance business, as the case may be, from an institution, approved and notified by the IRDA. In the case 'of a person wanting to become a composite insurance agent, the applicant should have completed at least 150 hours practical training in life ~d general insurance business, which may be spread over six to eight weeks. He has to pass the pre-recruitment examination conducted by the Insurance Institute of India or any other examination any recognized by the IRDA.

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A person with the following disqualifications is debarred from holding a license: He has been found to be of unsound mind by a court of competent jurisdiction. He has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or attempt to commit any such offence.

The licence once issued, can be cancelled whenever the person acquires a disqualification. A applications for renewal have to made at least thirty days before the expiry of the licence, along with the renewal fee of Rs. 250. If the application is not made at least thirty days before 'the expiry, but is made before the date of expiry of

licence, an additional fee of Rs.l 00 is payable. If the application is made after the date of expiry, it would be normally be refused. The licence once issued, can be cancelled whenever the person acquires a disqualification.

Applications for renewal have to made at least thirty days bcfore the expiry of the licence, along with the renewal fee of Rs. 250. If the application is not made at least thirty days before 'the expiry, but is made before the date of ( expiry of licence, an additional fee of Rs.l 00 is payable. If (he application is made after the date of expiry, it would be normally be refused.

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ROLE OF INSURANCE AGENT

An insurance agent is defined in the Insurance Act. He requires a licence to be able to function as an agent. He is remunerated by way of commissions on the premium paid under policies procured through his efforts. Insurance designate agents differently like consultants, advisors and so on. The designations do not matter. He is the main component of the distribution channel for the life insurance business.

Contact prospects for life insurance, study their neo and persuade them to buy. Complete all related formalities, including filling proposal forms, collecting premium, arrange medical examination, collecting proofs (of age , income), reports and other information required the underwriter.

After having sold a new insurance policy, the agent has to ensure that the policy continues, without a lapse, till becomes a claim. The conservation of the policy is in interests of all the three persons concerned, the insurer, policyholder and the agent. For this purpose, he 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 according to changing circumstances. Assist in settlement of the claim, by helping the claimants to complete the necessary formalities and requirements. The other function is to be of assistance to the. policyholder in case he needs a loan under the policy or wants to make an assignment. These services strengthen the relationship between the agent and the policyholder

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PREREQUISITES FOR SUCCESS

In order that he may perform all these tasks well, the agent has to be familiar with:

The benefits under the various plans of insurance offered by his insurer. The office procedures .for various matters including the forms and documents. The main documents have been listed out in an earlier chapter. The forms and procedures will vary between one insurer and another.

As stated earlier, the insurance agent is an agent of the prospect as well. He is looked upon as a knowledgeable person, who can be trusted to give the right advice. To be able to match these expectations, the agent must be familiar with the benefits and advantages of other financial instruments suitable for savings and investments and also the laws, particularly on taxation matters, relevant to these instruments. The variety of instruments available for an individual , is very vast and it is difficult for anyone to master the details of all of them. Some agents , who do not have the necessary knowledge give answers on the basis of guesswork or hearsay.

SELLING INSURANCE
PRE-APPROACH APPROACH INTERVIEW OBJECTION CLOSE

PRE-APPROACH
Pre-approach means preparing to approach the prospect. The requires forming some idea as to how the interview could begin and proceed, for which you require basic information regarding his income, his habits, his concerns, his interests, .his saving capacity, his family position, etc .These facts can be had from a variety of sources, and you may even have to make a personal call on the man himself, and get from him the facts you need to persuade him in taking a decision.

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The information collected during pre-approach will provide a reasonable idea of the prospect's financial position and his needs and concerns, and help to make a tentative recommendation of a plan. If you make the sale first in your mind, you will find it easy to make the sale to the prospect. It is advisable to write down the proposal. The advantages o f a written proposal

are
Details are not missed by either the agent or the prospect. The impression is more lasting. The prospect can go back to earlier data on his own. The prospect can understand, at his own pace. It is easy to stop at any point, clarify questions and continue further without losing the trend.

APPROACH
When you knock on the prospect's door and are face to face with him, the dynamic phase of sales begins. You should make known to the prospect, at the very earliest that you are calling on him for life insurance. Then' is no need to hesitate on this or to 'feel apologetic. The agent has to believe that he is calling on the prospect to render him the valuable service of ensuring financial security for him and his family.

The agent should open the talk by explaining the purpose of his call in such a way so as to arouse enough interest Otherwise, he may not pay attention to the proposal. In most of the cases, the situation may arise where the prospect will come out with a 'No'. At this juncture or approach, when the prospect says 'No', the agent should not be in a hurry to convert the 'No' into 'Yes'. The purpose of the approach stage is not to sell insurance, but to sell an interview, which gives him the opportunity 11 talk about what he wants the prospect to think about.

INTERVIEW
The interview should first of all, make the prospect listen. This happens if the agent refers to things which interest him, his needs, or things that matter to him, without making it appear like patronising or flattering. Any hint that the prospect's decisions of the past (relating insurance or investments) were not appropriate or 28

need to be changed, will have the opposite effect. The proposal being made by the agent should be seen as beneficial and complimentary to the existing arrangement. The agent should follow some simple rules like the ones mentioned below Do not talk more than necessary. Ask questions, and make the prospect talk. Make it interactive.

Create doubts and get him to ask questions clarification.

Listen to the prospect's point of view carefully, not interrupt, contradict or argue. People feel when they are listened to and then they listen better. Make your talk interesting. Tell a true story of how life insurance has helped families in various situations and how families have suffered without it. Make the story have a personal appeal. Use names of his children or relatives. That will make the story more appealing. Use pictorial aids, graphics and written presentations. If you have a lap top use Power Point presentation. Let the prospect write down the figures of his needs, of his liabilities, of benefits of the insurance plan and of the premium. This ensures concentrated attention. Let your advice be in the best interest of the prospect, not your interest.

Successful agents prepare their presentations carefully every time. They rehearse in their minds the way the 'interview should proceed. This ensures that they do not fumble for ideas or the right words. The ideas, too, come in the most natural and logical sequence. Lastly, a prepared sales talk conveys more enthusiasm and conviction than a talk without preparation. A well prepared approach ensures a favourable interview.

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OBJECTION
Prospects will raise objections, one after another. Objections are a part of every sale. If prospects did not object, there would be no need for salesmen. People would buy on their own. Also, if the prospect remained , silent, you will not know how his mind is working. The objection is his way of referring to the further information that he needs. The entire selling process is, therefore, interspersed with objections. At the stage of approach itself the prospect may say

'I do not believe in life insurance'. 'I do

not need life insurance', and the like. Such objections are not against life insurance

but rather against the agent whom he wants to put off gracefully, or signs of indecision, or of a fear of being forced in to being forced into buying.

Then, there are objections during the interview, like, 'I pay more than what I get back', 'It is advantageous only if I die', 'Meet me after six months'. Such objections, which come up during the main discussion are real objection. However, their intention is not to put you off. It is quite the contrary. The prospect wants you to convince him. He wants you to give him detailed information that will remove his fears and doubts and to back up his latent or unstated desire to buy. Every objection tells you about the prospect's thinking and gives you an opportunity to remove his mental blocks. Indeed, a prospect who puts forward an objection, is actually asking you to give him one more reason to buy. A true agent should therefore welcome objection. Then there are objections raised at the closing stage, such as I will think it over', 'I will consult my father', I me next month when 1 get my confirmation / increment promotion,' etc. these objections reveal an inability take a major decision. Prospect, I agree that conditions are hard and people have difficulty in saving; but imagine how much more difficult it will be if your family has to carry on without you". The secret of successful selling is to make the prospect feel that he has taken the decision on you only help him in the process by answering his objections. Agents should remember that an objection is a "blessing in disguise". It is also a stepping stone to a sale.

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CLOSING
The 'close' has to be sensed and timed, because very few prospects will, of their own accord, say 'I will insure'. The agent sensing the close , takes the prospect's positive decision for granted by asking for his implied (not direct) consent. "Will you pay the premium by cash or cheque?", "Do you have your school certificate at hand now or can you give it tomorrow?" (affirmative choice). A positive answer to any of these questions is an indication to go ahead. If the interview does not end with a close and is put off to another time, the interview will have to be gone through an over again. In selling life insurance, an appeal to the heart of the prospect is more useful than an appeal to the head. Life insurance is bought for the prime reason of protecting the loved ones, affording a good start in life to the children, duty to aged parents, or perhaps a desire for self preservation in old age. So a sale can be accomplished 'only when an appeal is made to one of these motives; an 'appeal to sentiments of love, of affection and of concern. The agent need not be an expert in psychology to do this.

31

PERSONAL DEVELOPMENT OF AN AGENT

This topic' deals with the development of an agent who is an individual, not a company or firm. In the case of the latter, this topic would be relevant for the director or partner or any other employee who may be performing the functions of meeting prospects, persuading them, etc. Personal development would result in. enhancing one's capabilities to function as an agent. This would be measured partly by the business that is done and the
~

commission that is earned. It is also to be measured in terms of the reputation that the person enjoys in the market. Agents can be spoken of well, as a person 'who knows, who can be trusted to look after the customer's interests, who does not mislead, who is nice to deal with and so on. It is such reputations that help one to collect more and more references from satisfied policyholders and thus expand one's circle of contacts.

PRODECT KNOWLADGE
The primary requirement is to become' quite conversant with the product that one
i

sells. In other words, product knowledge is important.' Product knowledge does not end with knowing the broad terms and conditions of the various plans of insurance. One has to be aware of the possible drawbacks in the policy, the tax implications, the fit with the clients needs, the extent to which the client has to take precautions so that the benefits may not be lost and so on. The agent must have knowledge of all the products offered by the insurer for whom he works, and not merely of the few which are most frequently sold.

CUSTOMER ORIENTATION
An agent is a professional, in the sense that there is a body of specialized knowledge that has to be studied an mastered. He is also a businessman. As a professional he has to keep his client's interests in mind and not hi personal gains from a transaction. As a businessman, he is concerned with the money that he makes from the transaction. The experience of highly successful agents i that if the 32

client's interests are taken care of and they al1 satisfied, one's business tends to grow steadily. There is no conflict between the two. Both go hand in hand. Customers are entitled to full information from those who provide services. This requirement, the right information is enshrined in the Consumer Protection Act The law is only stating a principle which every successful salesman practices. In the case of life insurance the person representing the insurer and having the responsibility inform the consumer, is the agent. Before the agent can inform the consumer, he has to be informed himself. "That is why it is repeatedly pointed out that product know It'" is important.

PERSONAL GROWTH
Agents may have personal goals, like wanting to rise in the hierarchy of the company. Some companies do provide opportunities for agents to accept higher responsibilities. One might like to become a senior agent, helping newcomers in the field. Some senior agents make it a point to attend seminars, workshops and conferences. They meet others in the profession. The benefit is mutual. They receive as well as .give, as experiences differ and are unique. Professional agents set aside both funds as well as time for such purposes. The pay-off is high, although not immediately visible.

RECORD AND REVIEW

Every individual has to manage himself well. Salesmanship, which the agent will master in course of time, is different from management. One does not have to be appointed as a manager in a company to learn management. Management' is nothing more than using one's resources well, in order to achieve the desired results. This implies that one has to always look al whether one is getting or not getting what one is trying to get (goals) and also whether one is utilizing ones resources properly.

A good manager continuously' finds ways to improve the utilisation of his resources. The resources include skills, knowledge, materials, money and time. If one is able to get at one's goal with lesser expenditure of resources, there is improvement. If the distances travelled per call reduce, as a result of better scheduling of the movements, there is improvement. 33

TIME MANAGEMENT
One of the resources of any professional is 'Time'. Time is an input in work. The time taken to do anything is an indicator of the skill of the doer. Novices take more time than an expert to do the same job. One of the indicators of the professional development of an agent would be the time he takes to do various activities as an agent, to get an appointment, to explain a point, to conclude a sale. Time is necessary also for personal development, to read book and journals, to do physical exercises, to unwind and relax, to attend spiritual discourses, to reflect on one' , behavior to introspect.

Some of the ways in which people waste time are: Having to do a job again because it was done wrongly. Correcting mistakes in a job wrongly done takes more time than doing it right the first time. This is so in arithmetic and in cooking.

After embarking on a job, we find that the available information is either

not adequate or not relevant and the job has to wait till that information is obtained.

Searching for things that have been misplaced or not kept in its proper place. Indecisiveness- inability to make up one's mind and keeping on changing
one's plan.

Attempts to be perfect. This leads to doing and redoing. It is not necessary to be perfect. Improper prioritization (important work gets neglected and has to be rushed through).

34

TARGET MARKET
A good agent has to be clear about the market he is working in. For an insurance

agent, the whole world is potential market. But no one agent can insure the whole world. While the whole world is the total potential market it is in fact several markets with distinctly different need, and characteristics. The very rich have different need, compared to the middle class salary earner. The young have different needs compared to the elderly. Working women with dependents have different needs compared hi housewives. Thus, when the total market is viewed in terms of needs, it will break up into a number of smaller segments. .

TRUSTWORTHYNESS
An agent sells himself before he sells his product. This may be true in the many cases but is particularly true in the case of life insurance, because of the very intangible nature of the product as well as the long-term commitment. The customer buys mainly because he believes the statements and promises made by the agent. He believes them as if they are promises made on behalf of the insurance company. He is buying the promise. Whether he bought the right thing or not , will be known only in the future, when the promises are to be redeemed. That is the time of the claim. If an agent has to succeed professionally, he has to continue to enjoy the trust of the, policyholder. This alone will lead to repeat business and to referrals.

LONG TERM RELATIONSHIP

An agent has to strive towards building long term relationships with the policyholders. Many techniques can be suggested, but all of them depend on one simple principle. The other person has to feel important and not slighted. He has to feel that his concerns are uppermost in the agent's mind. The essential requirement is sensitivity to the other person's feelings and genuine concern for his needs. If there is no genuine concern, the relationship cannot become strong.

35

The following may help to build relationships: An attitude that seeks to help. A voiding the slightest hint that the customer is ignorant or is at fault. Trying to understand the customer. The slogan 'The customer is always right' does not mean that his contention or behavior is always right. It means that always, there is a justification for his behavior or contention. If that is understood, it helps a lot to keep him satisfied.

MOTIVATION
An agent is an independent professional. He can not wait for someone else to come along and persuade him action. Others will demand that he perform. He has to feel the urge and drive to perform. Otherwise he will not do. When a person feels the urge and drive to do, he is said be motivated.

Why should an agent want to perform? Why should he be motivated? What are his needs to be fulfilled? None of these answers would be the same for all agents. Even the need for money may not be the first need for all agents. The need for money will lead one to complete more and more business. Some agents may want to be counted among the top agents of the branch or the insurer or the entire country. That may also lead them to do more and more business. Some may want to be known as the most knowledgeable. That will lead them to invest time and money in learning, attending lectures and seminars, etc. That same motivation may also lead some to help and train newcomers into the profession, to write books and articles based on one's experience. Some may want to build long-term relationships with the customers. That will lead them to find justifications to call on the customers as frequently as possible. Some agents may want to be known as financial consultants providing total financial services to their clients. This may lead. them to link up, through networks or otherwise, with stock brokers, security analysts and tax experts, offering mutual funds, new issues, portfolio management, etc.

36

MORAL
Customer buys because he trusts the agent and his promises. It implies that the behavior of the agent has to be one that exudes confidence and positive thoughts about the insurance company and its offerings. This is possible only if the agent feels good about his profession and his business.

If he does not feel good, his disappointments and frustrations will be sensed in his voice and manners and that will harm the process of sales. Feeling good or not good about one's work is a question of morale or enthusiasm about work. If an agent is convinced that he is in a noble profession that looks after the welfare of people and their families as nothing else can do, he cannot but feel good about his work. To keep up his morale, he has only to say to himself that his is a job that brings cheer. An others at a time, when a whole lot of circumstances have conspired to take away that cheer. An eminently successful life insurance agent had said that his commitment to the job became firm when one of his policyholders died young and he saw that the widow was surrounded by people - erstwhile friends demanding payment of outstanding bills and mortgages. He was the only one offering to pay her. How can such an experience of joy in the widow's face, be anything but uplifting?

Apart from the nature of the business of insurance, the agent must also feel confident that he is in a position I render effective service to his policyholders. It is possible that sometimes something may go wrong in the insurance office.

37

COMMUNICATION SKILL
Communication is normally understood to refer to the information that one has to send to another, through words or symbols or pictures, in writing or verbally. Because of its importance in commercial and private life the process of communication has been studied and written about extensively. An agent's main tool at work is his communication skills. He has to explain and to persuade. Any misunderstanding might become evident only much later. It will then be attributed to the failure of the agent to inform, alleging even deliberate cheating or suppression of material facts. Good effective agents make written presentations about their recommendations for insurance, pointing out both benefits and pitfalls. The written matter is explained during the sales interview. A further explanation will take place when the policy delivered to the policy holder.

SEVEN CS OF GOOD COMMUNICATION SKILL: Completeness:- Stating all essential facts, anticipating and answering all possible doubt . Courtesy:- Pleasantly worded , meant to gain goodwill , requesting instead of commanding. Consideration:- Keeping in mind the readers interest and level of understanding. Clarity:- Using simple familiars words short sentences , avoiding technical jargon and uncommon abbreviations. Conciseness:- Avoiding superfluous and redundant expression. Concreteness:- Avoiding complicated imagery and saying directly , leaving no room for imagination. Correctness:- Particularly with number , dates and references.

38

Life Insurance Product

Life insurance products are usually referred to as 'plans' insurance. These plans have two basic elements. One is only Death cover' providing for the benefit being paid on the death of the insured person within a specified period.Other is the 'Survival Benefit' providing for the benefit being paid on survival of a specified period. Plans of insurance that provide only death cover are called Term Assurance'

plans. Those that provide only survival Benefits are called 'Pure Endowment' plans. If the insured Does not die within the specified period, no payment is Made under a term assurance plan. Similarly, if the Insured dies within the specified period, no payment is made under a Pure Endowment plan. Both these are like Insurance policies. If the specified contingency does happen, the policyholder does not get anything from insurer.

A plan of assurance will have the following features. by: making changes in
these features or adding and combining; some, of them, any number of plans can be developed.

Who can be insured? The various possibilities are Individual adults (ii) .

children (minors) (iii) two or more persons jointly under one policy

2. What can be the S.A? Some plans stipulate a minimum S.A. There are maximum
limits also for certain benefits, like Accident benefits.

3. In what contingency would the S.A be payable

survival.

Could be on death or on

4. When would the SA be payable? On the contingency happening or some other dates 5. How would the SA be payable? Could be in one lump-sum or in installments.
'

6.

What would be the term (duration) of the policy? This determine the period during

which the specified event should occur for the SA to be payable. Some plans provide for benefits even beyond the term.

39

SOME POPULAR INSURANCE PLAN

All insurers do not offer all plans. The same plan may be called by different name by insurers. The variations between insurers are plenty. It is not possible to give details of all the plans offered by all the insurers, mainly because insurers make change in their offers or practices from time to time. if a reference is made to a plan of any particular insurer the accuracy of the information is not to be taken granted.

Term Assurance
The Cheapest form of assurance is the Term Assurance Under this, the SA is payable on the death of the insured during the specified period. If death does not occur there is no payment from the insurer. The SA may kept constant throughout the period, or be made. to increase or decrease during the period

Limited Payment Policy

In both Whole Life and Endowment plans, the premiums would normally be payable till the SA becomes payable, that is, till a claim arises. Premium can also be made payable for a shorter period. Such policies would be called Limited Payment policies. If the limited period is only' one year, a 'single' premium would be payable at the beginning of the policy. Single premium policies for Whole Life and Endowment plans are rare, but arc offered. Persons, who expect that their professional earnings may not continue for a long time like regular office workers, may prefer limited payment policies. Performing artistes and even professional working abroad, run this risk.Somtimes officers servings in the armed force may have to retire before they reach the normal retirement age of 55 or more. Both. Whole Life and Endowment policies can be mad. Participating in profits at the option of the policyholder. If that is done, the benefits of bonuses declared after every valuation, will be available under the policy.

Anticipated Endowment Plan/Money Back Or Money Saver Plan

The amounts payable on death and on survival need not be the same in Endowment policies. A number of variation. are possible. Survival benefits can be more than death benefits or vice versa. Survival benefits may be paid at intervals during the term, without affecting the SA payable on death. These are the 40

Anticipated Endowment.plan also called money back or money saver plan. There are some endowment plans under which a death benefits is paid at the end of the term of the policy. Insurers give fancy names to their plans. They do not always suggest the exact nature of the plan. Some companies offer 'Whole life' plans and offer the payment of SA at the end of the term. It would be advisable to avoid forming conclusionsabout the benefits offered by any plan from the name given to it. The terms and conditions must be read carefully to understand the benefits offered and whether it benefits the proposer's needs.

Marriage Endowment Plan

Marriage Endowment Plan has nothing to do with the contingency of marriage. It only stipulates the date on which the SA will be paid, even if the, life insured dies ear ly. That date can be chosen to coincide with the age of a son or daughter, for whose marriage the SA would come in handy. The same policy can be taken to meet any other ,ability expected to arise on a future date. Similarly, the educational Annuity plan is not an Annuity. It is an ordinary Endowment plan, which states that the SA would be paid in installments, commencing from a date, which be chosen as

the likely date when the child may be old enough for higher education.

Convertible Plan
Convertible' plans of assurance are plans, which provid in its terms and conditions, that it can be changed to another plan after, or within, a certain period after commencement. For example, a Convertible Term Assurance plan can be converted into a Whole Life police or an Endowment policy, within a period specified in the original plan. This period may be 'not later than two yen before the expiry of the original term'. In other words, if the original term insurance cover is for 6 years, the option to convert should be exercised before the end of the fourth year. In some plans, the option can be exercised' at any time, but before age 60. A Convertible Whole Life plan can be converted into an Endowment plan. If the clause says that the option has to be exercised at the end of say,5years, it will have to be done during the fifth year, but before the sixth year begins. If the option to convert is not exercised, the policy will continue on the original terms. 41

WITH PROFIT AND WITHOUT PROFIT

Without profit' or 'Non-participating' policies are not entitled to bonuses declared after
valuations. 'With profit' or 'Participating' policies pay a slightly higher premium for the right to participate in the progress of the insurer. 'With profit' policies are popular because the bonuses are expected to be more than the extra premium paid. 'With Profit' policies, where the premium is payable for a limited period, will continue to participate even after the Premiums have ceased.

CHILDRENS PLAN
Insurance can be taken on the lives of children, who are not majors. The proposal will have to be made by a parent or a guardian. In these plans,risk on the life of the insured child with begin only when the child attains a specified age. Practices vary widely. The time gap between the date or commencement of the policy and the commencement of risk is called the 'Deferment Period'. If the child is 6 years old when the policy is taken and insurance is to begin when the child is 15 years old, the deferment period is 9 year.The date on which the risk will commence, at the end of the deferment period, is called the 'Deferred Date', The deferred date will be a policy anniversary. Ages are reckoned as next birthday, nearest birthday or last birthday, as per the practice of the insurer. There is no insurance cover during the deferment period. If the child dies during the deferment period, the premiums will be returned. Risk will commence automatically on the deferred date, without any medical examination. The main advantage of these plans is that the premium would be relatively low (age of the child at commencement) and cover will be obtained irrespective child. After vesting, the policy becomes contract between the insurer and the insured person. The vesting age cannot be earlier than 18. This is because there cannot be a valid contract with a minor.
01

the state of health of the

42

INDUSTRY ASSURANCE PLAN

Industrial assurance plans are designed for workers with low incomes. The policies are issued for small SAs, with weekly premiums. The arrangement is that the agents will visit the house or place of work of the policyholder every week to collect the premium. The administrative costs are high. Agents have to be remunerated differently because they are expected to visit every policyholder every week, to collect the premium.

1. Protection plan
Term assurance plan Loan cover term assurance plan

2. Investment plan Single premium whole of life plan

3. Pension plan Personal pension plan Unit linked pension Unit linked pension plus

4. Saving plan Endowment assurance plan Unit linked endowment Unit linked endowment plus Money back plan Childrens plan

43

SEVEN Ps OF INSURANCE SECTOR:

1 PRODUCT 2 PRICE 3 PLACE 4 PROMOTION 5 PEOPLE 6 PROCESS 7 PHYSICAL EVIDENCE

RIDERS
A rider is a clause or condition that is added on to a bas policy providing an additional benefit, at the choice of the proposer. For example, a provision that in the event death of the life assured by accident, the SA would. double, can be a rider on an Endowment policy. This rider can be added on to a policy under any plan. The option I participate in valuation surplus can also be offered as rider. The additional premium for the rider of Double Accident Benefit is a constant figure, not depending c age or the underwriter's decision. But that is not so with regard to all rider.

44

PREMIUM AND BONUS

What is premium ?
Premium is the consideration that the policyholder has to pay

in order to secure

the benefits offered by the insurance company. It can be looked upon as the
price of the insurance .It may be a one-time payment. That is not in million. Often, it has to be paid regularly over a period. A default in premium can endanger the continuance of the policy. If that happen the policy will be lapsed and the expected benefits will not be Insurable.

Risk and Pure Premium

Other risk premium would be adequate to pay the claims, if all the policies were term assurance policies for one year', In the case of Endowment policies, claims have to be paid on survival after some years. Therefore, the actual premium collected would have to be more than the risk premium; to the extent of being able to pay the survival benefits, whenever falling due. Here also, the mortality tables would be used to estimate the number of person!! who may survive the terms. The balance premium remaining with the insurer will be invested and will earn some interest. To the extent of the expected interest earnings, the premium charged can be reduced. The premium worked out after taking into the account .the interest, is called the net premium or pure premium.

45

LOADINGS
The administrative expenses of the insurer have to be met out of the premiums paid by the policyholders. To this extent, the premium to be collected will be higher. Such additions to the pure premium are called 'loadings'. One of the loadings is due to administrative expenses. Loadings may be made for other reasons as well. One of them would be for unexpected contingencies and fluctuations. A major catastrophe like an earthquake or accident or riots or epidemic, can raise the number of deaths to a much higher level than normal. The risk premium based on mortality tables would be found to be Inadequate to meet catastrophic claims. Insurers, therefore, as a matter of safety, provide for such negligences and fluctuations, by 'loading' the premium suitably.

LEVEL PREMIUMS
If it is expected that out of 10,000 persons at a specified age is likely to die
within one year, the mortality rate that age is said to be 0.01%. The risk premium Chargeable for persons at that age would be Rs.O.1O per 1,000 sum assured. If a 'policy has a. term of 20 years, I risk premium and' therefore the premium charged would vary for each of the 20 years. Apart from being difficult to administer, the premium at later ages; towards, the end of the policy term, would be very high. People would find this beyond their ability to pay. That means they will be without the protection of insurance at times when they need it most. To offset this problem, insurers spread the risk premium on a uniform basis, throughout the term of the policy. Thus, the premium remains constant for 20 years. Such uniform premium is called Level Premium. This implies that the premium collected in the early years of the policy would be more than necessary for the risk, and less than necessary towards the latter part of the policy.

46

OFFICE PRIMIUM
The premium figure arrived at after loading the net premium or pure premium, is called the Office premium. They are now ready for use. The premium figures printed in the promotional literature and brochures are the office premiums. The actual premium to be charged in any one case would require further adjustments, depending on the practice of the insurer. For example, the administrative costs are more if the premium is paid every quarter or month, instead of once in a year.. The number of renewal notices and receipts to be issued and consequential accounting entries would vary according to the mode. If the mode is yearly, the probability of default in the subsequent renewal premium, to complete the year, does not arise. The insurer can utilize this amount for the entire year and earn more interest than if the premium were paid in installments. Therefore, the premium rates would have to be slightly increased or decreased depending on the preferred mode of payment.

EXTRA PRIMIUM
Extra premiums may be charged on any particular policy. This may happen because of the grant of some benefit in additional to the basic benefits under the plan, like accident benifits or premium waiver benefit. Riders provide adadditional supplementary

benefits. Extra premium may become chargeable because of underwriting decisions. If the risk of the life to be insured is assessed as more than normal because of health or because of nature of jobs or habits, underwriters may charge extra premiums. These are usually stated as say, Rs. 2 per thousand, and will be added to the premium otherwise chargeable.

47

CALCULATION OF AGE
The premium to be charged will vary according to the ag! of the life assured.

Premium rates for each plan 0 assurance are calculated for each age. If, after the
policy II issued, the age is found to be different from the age state,in the proposal, the premium mentioned in the policy will be changed from inception. Either the shortfall will be collected as arrears or the excess will be refunded Insurers prefer to admit the age at the commencement of the policy.

Age has to be determined as on the date 01 commencement of the policy. As

the date of Commencement of the policy would not be the date of birth of the life insured, and age has to be reckoned only in complete years, not months and days, three different methods are followed by insurers. These are age next birthday, age fast birthday or age nearest birthday. If a person is born on 20th August 1976, the age next birthday on 10'h July 2002 would be 26, the age last birthday would be 25 and the age nearest birthday would be 26.

PREMIUM CALCULATION
. The following illustrations are based on certain assumptions with regard to practices of insurers. These assumptions are specified at the appropriate places. Whilo making calculations for any policy, the practices of that insurer must be conformed to. Step:-1 Find out tabular premium i.e. Premium quoted in published premium rates for given age (nearer, next or last birthday as the case may be) for the relevant plan and
'1st term. This premium is per thousand sum assured. Assume the figure is Rs.

45.60. Step:-2 : Deduct adjustment for large sum assured, if applicable. Assuming that the insurer allows rebates .

48

What is BONUS ?
The distribution of the valuation surplus to policyholder. is done through the declaration of 'Bonus'. Only policyholders who opt for 'Participating' or 'With profit' policies would be entitled to bonus. Other policyholder .who have 'Nonparticipating' or 'Without Profit policies would be paying a slightly lesser amount of premium for the same kind of' insurance cover, because of the factor of 'bonus loading' . Bonus is declared in various ways. The most common method is the 'simple reversionary bonus'. The amount or bonus, is added to the S.A. If the SA under the policy is Rs. 50000, and. the bonus declared is Rs 60 per thousand SA or 6% of S.A., the SA under the policy would become (' Rs. 53000 straightaway. If a similar bonus is declared the subsequent year, the SA would become Rs. 56000. A variety of practices are followed with regard to bonus.Some make the vesting of bonus conditional on the policy , continuing to be in force throughout. In other words, it be payable only on a claim arising, but not if the policy is terminated earlier for other reasons. Sometimes, the bonus is made payable only on maturity. All policies do not contribute equally to the generation of surplus . In the early years of a policy, there would be very costs. The Contribution would depend on how the premium adds to fund and that would differ according to the plan, according to the age of the life insured or according to the term of the policy. The actuary, makes an analysis of the elements that have generated the surplus in the fund and to declare bonuses in such ways that compensate policyholders, according to the contributions made by the different kind of policies. The attempt to be fair, however,limitations, because the policies have necessarily to be grouped, for practical reasons. margin in the premium, after meeting the

49

INTERIM BONUS
Bonus is usually declared on policies, which are in fori on the date of valuation. For example, the bonus after 2nd valuation as on 31.3.2003 will be declared sometime I September 2003 and will benefit holders of policies which were in force on 31.3.2003. Policies which become claim after 31.3.2003 before the next results are announced I September 2003, would not get the benefit of bonus although they have the right to participate till the date claim. In order to overcome such anomalies ,actuaries usually declare 'Interim Bonuses' payable on sue policies, which become claims between two valuations.

CLAIMS
A claim is the demand that the insurer should redeem the promise made in the contract. The insurer has then to perform his part of the contract i.e. settle the claim, after atisfying himself that all the conditions and requirements for settlement of claim have been complied. In particular he should check 1. Whether insured event has taken place?

2.

What are the obligations assumed under the contract, which are required to be performed ? These may be payment of bonus, payment of sum assured in installments, waiver of future premiums, etc.

3.

Whether the policyholder has performed his part?, The policy status with regard to premium position, age admission, outstanding loan & interest, survival benefits, if, any, legal requirements such as under MWP Act, Foreign Exchange Regulations, report of investigation, police reports, if any.

5.

Who.are the persons en'fitl0d to demand performance? Nomination / assignments/ income tax notice / prohibitory orders / official assignee's notice are all relevant .

50

MATURITY CLAIMS
Under endowment type of policies, the SA is to be paid when. the term of the policy is over. The date on which the term is complete, is the date of maturity and the settlement of the SA on that date, is the maturity claim. The amount payable on maturity is the SA, less any debts like loan and interest or outstanding premiums. To this bonuses, if any, would be added, if it is a with-profit policy. Action on maturity claims is initiated by the insurer, based on the records showing the policies that will mature every month. The insurer normally sends advance intimations to the insured. The insurer has to satisfy that:1. There are no assignments 2. The identity of the policyholder is proved. 3. The age stands admitted. 4. The premiums are all paid (this is not required for a paid-up policy) 5. The original policy is handed in The insurer is expected to make payment on the maturity date. Post-dated cheques are normally sent a few days in advance of the maturity date, provided the discharge form is received duly signed. Sometimes, the original policy is reported to be lost. Caution is to be exercised to ensure that there is no attempt to defraud. It could have been pledged elsewhere for a loan. But if the loss seems to be genuine, it is possible to settle the claim on the basis of an indemnity and also, an advertisement in the newspaper, as a precaution Under MWP Act policies" the proceeds of the policy will be paid to the trustees. If there is no trustee, the official trustees will step in. But if the beneficiaries are major and competent to contract, payment can be made directly to them without the' intervention of trustees. The policyholder is not expected to sign the discharge voucher. In case of absolute assignment, the payment will be made to the assignee. If the assignment is conditional, reverting to the life assured on maturity, payment can be made to the assured himself. It will be prudent however, to check that the assignee has no outstanding claims. 51

DATH CLAIM
The procedures in settling a death claim are more complex than. in the case
of maturity claims. This is mainly' because, the facts relating to death have to be studied and the identities of the claimants have to be established. The death claim action begins with an intimation being received in the insurer's office. The intimation may be sent by the nominee, assignee, a relative of the life assured, the employer, agent or development officer. These intimations may have very little information, other than the policy number, the name of the life assured and the date of death. The office need not wait till the intimation of the claim is received. Obituary columns, or newspaper reports in case; of accidents or air crashes, may give information and the claim action can be initiated. However, care has to be taken to ensure that the identity of the deceased is established. A name is not enough to establish identity.

The following will be necessary before a death claim can settled:1. Policy document 2. Deeds of assignments / reassignments 3. Proof of age, if age is not already admitted. 4. Certificate of death 5. Legal evidence of title, if the policy is not assigned or nominated. 6. Form of discharge executed and witnessed. If the claim has occurred within 3 years from the commencement of policy, or from a revival, following additional requirements may be called for in order to verify the possibility of suppression of material facts at the time of proposal.

1. Statement from the last medical attendant giving, details of last illness and treatment. 2. Statement from the hospital , if the deceased had been admitted to a hospital. 3. Statement from the person , who had attended last rites and had seen the dead body. 52

Benefits:
a) Death Benefits: In the event of death of the life assured during the term of the contract, and provided all the premiums are paid till the time of the death of the life assured, the sum assured, together with reversionary bonus and the terminal bonuses (if any) would be paid to the beneficiary. The policy would terminate on payment of the death benefit. b) Maturity Benefits: On survival of the life assured till the date of maturity, and subject payment of all premiums, the policyholder would be paid the sum assured, together with the reversionary bonuses and terminal bonus (if any). The policy would terminate on payment of the maturity benefit.

c) ZPaid-up Benefits:
In case the policyholder discontinues payment of premium after the premiums are paid for at least three years, the policy would be reduced to a paid-up policy. The reduced paid-up benefits are payable on death of the life assured during the term, or survival of he life assured till the date of maturity, whichever is earlier. d) Surrender Benefits: The policyholder can surrender the policy at any time. In case the policyholder chooses to surrender the policy before the payment of three years premium the surrender value would be equal to zero and nothing would be payable. In case the policyholder chooses to surrender after three years, he would be entitled for a surrender value.

2. Frequency of premium payment:

The policyholder can choose yearly, half-yearly or quarterly mode of payment, as he desire. The frequency of premium payment can be altered during the term of the contract.

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3. Days of grace:
The premium is payable in advance and should be paid within the days of grace. The days of grace allowed under the plan are 15 days from the due date of premium. In case the days of grace end on a holiday then the premium has to be paid on the next working day.

4. Lapsation:
In the event the premium is not paid within the days of grace the policy lapses. The policy would be automatically reduced to a paid up policy in case premiums have been paid for at least three years. In case premiums are not paid for three years the policy would lapse without value. A lapsed policy can be reinstated within one year from the date of lapse only.

5. Minimum premium:
The following are the minimum premium conditions under the Endowment Assurance Plan. Annual mode Half yearly mode Quarterly mode Rs. 1800 Rs. 1000 Rs. 550

There is no condition of maximum premium.

6. Other conditions:
Minimum Term Maximum Term Minimum Age at Entry Maximum Age at Entry Maximum Maturity Age 10 years 30 years 12 years 60 years 75 years

The policyholder has the choice to choose any term between 10 to 30 years, subject to the maximum maturity age. In case the policy is taken on the life of a minor then the legal guardian of the minor would have to propose the insurance on behalf of the minor. 54

7. Policy loans:
Policy loans would be available under the plan once the policy acquires a surrender value. The policy loans would be to the extent of 90% of the surrender value. The company would quote the terms and conditions of the policy loans at the time of granting the loans and the same would vary from time to time.

8. Life cover basis:

The endowment assurance plan can be offered on a single life basis or as joint life first claim basis. When the policy is offered on a joint life basis the death claim would be paid on the death of any one of the lives assured and the policy would terminate.

9. Tax benefits:
The premium paid under the plan qualifies for tax rebate under section 88 of the Income Tax Act 1961. The claim benefits would also not be taxable as per section 1010 D of the Income Tax Act 1961. The plan is also approved under the provisions of section 80 DD of the Income Tax Act 1961.

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3. RESEARCH DESIGN AND METHODOLOGY:

RESEARCH DESIGN:
The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as research design. A research design is the arrangements of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design is as follows.

Sampling Plan
1. Sample Unit

- Sales Development Manager 2. Sampling Techniques - Convenient Sampling 3. Sample Size - 15 Respondents.

3.2 SOURCE OF DATA COLLECTION:

1. Primary Data:
The primary data are those which are collected a fresh and for the first time, and thus happens to be original in character.

TOOL USED : QUESTIONNAIRE

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DESIGN OF QUESTIONNAIRE:

COMPETENCIES:
1) Achievement Orientation 2) Initiative 3) Interpersonal Understanding 4) Customer Service Orientation 5) Influence and Impact 6) Organization Awareness 7) Networking 8) Directiveness 9) Teamwork and Cooperation 10) Developing Others 11) Team Leadership 12) Technical Expertise 13) Information Seeking 14) Analytical Thinking 15) Conceptual Thinking 16) Self Control 17) Self Confidence 18) Business Orientation 19) Flexibility 20) Concern Of Quality

Meaning of Competencies:
1. Achievement Orientation:
The fact of being driven to achieve something either by a desire for a success or by a fear of failure.

2. Initiative:
The right or procedure by which legislation may be introduced or enacted directly by the people. 57

3. Interpersonal Understanding:
Extent to which and individual gets along and interacts positively with co-workers.

4. Customer Service Orientation: Customer service orientation is the

psychological manifestation of the belief that customers and their perspectives are of the highest value and consequence in the organization.

5. Influence and Impact:

INFLUENCE: A determining factor believed by some to affect individual tendencies

and characteristics.

IMPACT: The affect or impression of one thing on another.

6. Organizational Awareness:
Knowledge and awareness about the organizations mission, functions, policies and procedures.

7. Networking:
Networking is typically refers to getting together with peers, associates etc. to keep up to date, get information etc.

8. Directiveness:
The quality of being directive.

9. Teamwork and Cooperation:

TEAMWORK: The process of working collaboratively with a group of
people in order to achieve a goal

COOPERATION: The act of cooperating or of operating together to one end.

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10.

Developing Others:
To give a chance to develop co-workers or identifying developmental needs of others or otherwise helping others to improve their knowledge of skills.

11.

Team Leadership:
Represent the team to the next higher reporting level.

12.

Technical Expertise:
Having special skill or practical knowledge especially in a mechanical or scientific fields or belonging or relation to a particular subject.

13.

Information Seeking:
Process in which humans purposefully engage in order to change their state of knowledge.

14.

Analytical Thinking:
Analytical thinking is a powerful thinking tool for understanding the parts of situation or developing the capacity to think in a thoughtful discerning way to solve problems, analyze data, and recall use information.

15.

Conceptual Thinking:
The ability to perceive and imagine, predict and hypothesis, and to conclude and reflect.

16.

Self Control:

Self control is the ability to control ones emotions, behavior and desires in order to obtain some reward later.

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17.

Self Confidence:
The quality or state of being self confident, self reliance.

18.

Business Orientation:
Concerned with the business capabilities and impact rather than having a technical focus.

19.

Flexibility:
Capable of being bent or flexed without injury or damage.

20.

Concern Of Quality:
To relate or belong to, on quality

Design of Questionnaire:
These all are the competencies (given above). We have designed the statement (questionnaire) on each of competencies. the

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2. SECONDARY DATA:- HR Department

Data Of Employees
S. No. 1 2 3 4 Name AMIT KHANNA SAMIKSHA PAREEK ROHIT KHANNA IMRAN KHAN NARENDR A SINGH RATHORE NEERAJ WALIA CHANCHA L SONI HIMANSH U KHATORE JAVED QUERESHI YUVRAJ SHARMA PANKAJ SHARMA RAJESH YADAV ANUJ SINGH HARISH CHHIPA DINESH SINGH Designatio n/Team/Ar ea SDM ASM SM SM Place in organizati on hierarchy Front Line Front Line Front Line Front Line Target Given 12 Lac 50 Lac 70 Lac 70 Lac

(Table 1.1)
Target Achieve d 15 Lac 12 Lac 40 lac 34 Lac Tenure in present job 9 Month 17 Month 52 Month 46 Month Frequency promotion organisation 9 Month 8 month 8 Month 10 month of in

BDM

Front Line

26 Lac

12 Lac

15 Month

13 Month

6 7 8

BDM BDM SDM

Front Line Front Line Front Line

26 Lac 26 Lac 12 Lac

18 Lac 14 Lac 10 Lac

22 Month 18 Month 11 Month

10 month 12 Month 12 Month

9 10 11 12 13 14 15

SDM ASM SDM BDM BDM BDM BDM

Front Line Front Line Front Line Front Line Front Line Front Line Front Line

12 Lac 50 Lac 12 Lac 26 Lac 26 Lac 26 Lac 26 Lac

8 lac 41 Lac 14 Lac 26 Lac 20 Lac 10 Lac 15 Lac

7 Month 50 Month 13 Month 19 Month 19 Month 12 Month 23 Month

12 Month 8 Month 11 Month 8 Month 9 Month 8 Month 12 Month

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TITLE OF THE STUDY

An Analysis Of Competencies required to manage Recruitment In Life Insurance Sector With Reference DURATION OF THE PROJECT 45 DAYS

OBJECTIVE OF THE STUDY

The present paper carries out a comparative study of the ULIPs of different life insurers in terms of their focus, different types of charges charged by them from the insured, fund options available, and other important aspects affecting the interest of the policyholders.

The study was carried with the following objectives:

To obtain general awareness about the insurance sector . To do the market awareness about the Unit link Insurance Plan. To identify the improvement opportunities and make appropriate suggestion. To compare the different types of charges charged by insurers from the insured. To know the fund option available to the insured.

To know other important aspects affecting the interest of the policy holder.

LIMITATIONS OF THE STUDY:

1. Period of the study being 16th May, 2011 to 16th July, 2011, the results of the findings of the study refer to this period of the training activity. The study does not take into consideration any effect of extraneous factors affecting overall behavior of respondents. Hence, constitutes basic limitation of the study. 2. The underlying assumptions of the sampling method & chosen non-parametric test for the data evaluation may also pose as the limitation of this study. 3. Researchers maiden effort may pose as a limitation to derive perfect results during data collection process.

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4. Facts and findings

1. In HDFC SL I feel that Insurance sector is one of the most growing sectors among all sectors in India. 2. I also find that HDFC Standard Lifes Traditional Plans are very useful for a normal person. 3. Jaipur is one of the most growing city and there is lot of scope of insurance. 4. Most of the people are aware of traditional plans. 5. Electronic media has proved to be very beneficial for people to understand about the insurance. 6. There is lot of opportunities for young and energetic people in HDFC SL to build there sound career. 7. HDFC Standard Lifes traditional plans like children plan, one of the most popular products of the company. 8. Around 60% like to invest in private life insurance companies. 9. Even though majority of the people have a good awareness but still they have a negative attitude towards investing in insurance and related securities. 10. 25% of sample populations are not satisfied with their High Returns from the existing Insurance. 11. 24% of sample population is satisfied with Tax Benefits provided by the existing insurance companies. 12. About 29% of sample population is not satisfied with the insurer regarding Insurance Coverage. 13. 31% of sample population is Below Average in their satisfaction level regarding Partial and Full Withdrawal facilities provided by the existing insurance 14. Investments in insurance related options are given the least priority than ever before. 15. 60% of sample population insure their life with different insurance companies.

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5. DATA ANALYSIS AND INTERPRETATION:

ANALYSIS OF DATA: QUESTIONNAIRE 1. Is, high achievement motivation an attribute of employees?
OPTION Present Partially To Some Rarely Extent 5 0 Never

RESPONDENTS 8 Total 16

9 8 7 6 5 4 3 2 1 0 present Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted that high achievement motivation as an attribute is present in 8 of the employees surveyed and he feels it is partially present in 3 and it is present, to some extent in 5 of the employees surveyed.

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2. Do the employees take initiative in the organization?

OPTION Present Totally Partially To Some Rarely Extent 4 0 Never

RESPONDENTS 7 Total 14

8 7 6 5 4 3 2 1 0 Present Totally Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted that interpretation of taking initiative is present in 7 employees and it partially present in 3 employees and it is present, to some extent in 4 employees.

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3. Interpersonal understanding is present among the employees?

OPTION Present Totally Partially To Some Rarely Extent 5 0 Never

RESPONDENTS 9 Total 18

10 9 8 7 6 5 4 3 2 1 0 Present Totally Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted that interpersonal understanding is present in 9 employees and it is partially present in 4 employees and it is present, to some extent in 6 employees and it rarely present in 0 employee.

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4. Orientation of employees towards the customer service is?

OPTION Present Totally Partially To Some Rarely Extent 4 1 Never

RESPONDENTS 8 Total 16

9 8 7 6 5 4 3 2 1 0 Present Totally Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted that orientation of employees towards the customer service is present in 8 employees and it is partially present in 3 employees and it is present, to some extent in 4 employee and it is rarely present in 1 employees.

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5. How much is the awareness of organizational objective in employees?

OPTION Present Totally Partially To Some Rarely Extent 4 0 Never

RESPONDENTS 11 Total 22

12

10

0 Present Totally Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted that awareness of organizational objectives is present in 11 employees and it is partially present in 6 employees and it is present, to some extent in 4 employee.it is neverly present 1.

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6. The need to follow orders and instructions, is present in the employee?

OPTION Present Totally Partially To Some Rarely Extent 3 1 Never

RESPONDENTS 9 Total 18

10 9 8 7 6 5 4 3 2 1 0 Present Totally Partially To Some Extent Rarely Never

INTERPRETATION
It can be interpreted need to follow orders and instructions are totally present in 9 employees and it is partially present in 5 employees and it is to some extent present in 3 employee and it is rarely present is 1.

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Compiled Data For Studying Correlation:

Responde nt No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Respondent Name Amit Khanna Chanchal Soni Imaran Khan Pankaj Sharma Yuvraj Sharma Dinesh Singh Javed Quereshi Rajesh Yadav Harish Chhipa Narendra Singh Rohit Khanna Anuj Singh Himanshu Khatore Neeraj Waliya Sameeksha Pareek

Designatio n SDM BDM SM BDM ASM BDM SDM BDM BDM BDM SM BDM SDM BDM ASM

Tota l 49 49 54 40 57 52 65 63 58 65 53 56 67 73 51

Tenur Targe e in t month s 3 9 1 18 1 46 3 13 1 50 1 23 1 7 2 20 1 12 1 15 1 52 1 19 1 1 1 11 22 17

Frequenc No. Of y Of Promotio Promotio n n 0 9 Month 1 12 Month 3 10 Month 1 11 Month 2 8 Month 1 12 Month 0 12 Month 1 8 Month 1 8 Month 1 13 Month 3 8 Month 1 9 Month 0 1 2 12 Month 10 Month 8 Month

TABLE 1.2 Source of Data:

Respondent Name: Designation: Total: Target:

From TABLE 1.1 From TABLE 1.1 From TABLE 1.4 IF, Target Given = Target Achieved Then 2 Target Given > Target Achieved Then 1 Target Given < Target Achieved Then 3

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4.3 Table Of Correlation Between Total, Target, Tenure and Promotion:

Correlation Between Total and Target

-0.496115685

Correlation Between Total and Tenure

-0.102926826

Correlation Between Total and Promotion

-0.260856524

Correlation Between Target and Tenure

-0.316032226

TABLE 1.5

Interpretation:
In this table I have calculated the correlation between the Total, Target, Tenure and Promotion with the help of Correlation Formula. Correlation between total and target: It means when the competencies are increasing the target of the employees are decreasing. And it gives maximum negative conclusion. Correlation between total and tenure: It means when the competencies are increasing the tenure of the employees are decreasing. As result, employees are leaving the company, even when they have high competencies. Correlation between total and promotion: It means the employees have a high competencies even then they are not get promoted.

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6. SWOT ANALYSIS
STRENGTHS
The strengths are: HDFC SLIC is the third largest player in the insurance industry in India It is the largest home loan financing institution in India Standard Life is a 100 years old company (founded in UK) HDFC enjoys the highest AAA credit rating, which ensures highest safety of money Mutual Fund Personal Loan

WEAKNESSES The weaknesses are: Some customers are not satisfied with the service of HDFC SLIC Only 24 branches all over India High insurance-period duration High premium Low awareness of HDFC SLIC in rural areas

OPPORTUNITY The opportunities are: Huge opportunity in insurance market Better products as compared to other industries Due to increase in literacy rates, literate people prefer HDFC SLIC HDFC SLIC gives opportunity to other businesses to grow in the market

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THREATS The threats are: Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and BIRLA SUN LIFE Due to low premium, rural markets prefer LIC Threat for HDFC SLIC because over 21 new companies are entering the market Currently, HDFC SLIC is the 3rd player in the market, and the major threat is to sustain that position in the face of competition

7. CONCLUSION
HDFC is the leading insurance service providers to public and private sector. HDFC Standard Life is the first private insurance company which got license in 2000 from IRDA. Life Insurance in India has a huge potential for growth. Statistics reveal that only 25% of the insurable population in India is insured. And those insured are in need of still higher insurance cover. The cover 100% growth displayed by private life insurers indicates this huge untapped potential. Traditional plans like children plan gives invaluable support to your child, Term Assurance Plan gives help secure your family financial needs, Money Back Plan gives a wide range of terms and cash benefit schedules to choose from, Personal Pension Plan is designed to provide a post retirement income for life with the freedom to choose the retirement date, Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs, Endowment Assurance Plan. At last we can conclude that HDFC SL provides best solutions to its customers by giving them best value of their money.

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8. RECOMMEDATIONS / SUGGESTION
In order to survive in this era of cutthroat competition, it is very important for an organization to give the best to its customers and the most reasonable price. After going through the study on my project, I would like to come up with following recommendations to the customers : As of now insurance has limited awareness and only sells because of the Tax benefits available to the customer not for the insurance. Thus, the companies should widen their horizons at a very brisk pace and should aware the customers about the benefits of insurance. 1. All the company should come out of a Unit Linked product that should aid every section of the society. 2. The advisors should be made aware and educated so that they can extend their services not only in terms of collection of premium cheques from the policy holders but also to educate them about the insurance and the latest Non Traditional products. The company has invested 85% of the premium received with Government. In order to give eye-catching returns to the public, it should diversify its portfolio and invest in places where the returns are high.

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9. APENDICES
Table Of Individual Scores Of Employees:

N O .

Respond antName

Questions
1 1 1 1 1 1 1 1 1 1 2 TO 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0

TA L
49 49 54 40 57 52 65 63 58 65 53 56 67 73 51

1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5

Amit Khanna Chanchal Soni Imaran Khan Pankaj Sharma Yuvraj Sharma Dinesh Singh Javed Quereshi Rajesh Yadav Harish Chhipa Narendra Singh Rohit Khanna Anuj Singh Himanshu Khatore Neeraj Waliya Sameeksh a Pareek

2 3 3 1 2 3 3 3 4 2 4 3 2 4 4 3 3 2 4 1 3 2 1 2 3 4 3 4 2 2 4 2 3 1 3 1 4 1 0 2 4 3 3 4 4 4 4 2 3 3 2 3 2 1 4 4 2 4 1 3 4 4 2 3 4 4 2 3 4 3 2 3 3 4 4 4 3 2 3 4 2 2 4 4 4 3 2 4 3 1 3 2 4 4 4 4 4 4 2 4 3 4 2 1 4 4 1 2 1 4 4 3 2 4 3 3 2 4 3 2 4 3 2 3 4 4 2 3 4 3 4 4 2 4 4 4 4 3 3 4 2 3 2 3 4 3 3 3 4 2

2 2 1 0 2 0 3 2 3 4 3 1 3 4 2

4 1 4 3 1 2 4 4 2 2 2 3 4 4 4

3 1 3 1 1 3 3 4 4 3 4 1 3 4 3

2 2 4 1 3 4 4 4 4 2 4 4 4 3 2

2 3 2 2 3 2 3 3 3 3 3 2 3 4 2

2 2 4 3 4 4 3 4 3 4 1 3 3 4 2

3 2 3 0 2 4 4 3 3 4 1 4 4 4 2

3 3 1 3 3 1 3 2 2 2 3 2 3 3 3

1 2 4 4 3 4 4 4 2 4 4 4 4 4 1

1 1 2 2 1 2 1 1 3 2 2 2 4 3 1

TABLE 1.4 Interpretation: In this table I have calculated individual scores of the employees.

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10. ANNXEURE

QUESTIONNAIRE
Name: Age: Mob No: Qualification: Designation: Gender:

1. Is, high achievement motivation an attribute of employees? Totally Partially To Some Extent Rarely Never 2. Do the employees take initiative in the organization? Totally Partially To Some Extent Rarely Never 3. Interpersonal understanding is present among the employees? Totally Partially To Some Extent Rarely Never

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4. Orientation of employees towards the customer service is? Present Totally Partially To Some Extent Rarely Never

5. How much is the awareness of organizational objective in employees? Totally Partially To Some Extent Rarely Never

6. The need to follow orders and instructions, is present in the employee? Present Totally Partially To Some Extent Rarely Never

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11. Bibliography
BOOKS Kothari Dr. C.R. Research Methodology (Methods & Technique), New Age International (P) Ltd, 2nd Edition Agarwal M.R. Financial Management, Garima Publication, 2nd Edition Khan M Y & Jain P.K., Financial Management, Tata McGraw-Hill publishing Company Limited, 5th Edition LEADING NEWSPAPER The Times Of India(May-June, 2011) The Times Of India, May 3, 2011 Economic Times (May-June, 2011) Economic Times (Corporate Dossier), June 10, 2011 JOURNALS Insurance Journals: IRDA (2010-11) MAGAZINES Financial Chronicle, May 3, 2011 Mint, June 29, 2011 WEBSITE http://www.hdfclife.com http://www.hdfclife.com/AboutUs/AboutUs.aspx http://www.hdfclife.com/Products/ProtectionPlans/ProtectionPlans.aspx http://www.hdfclife.com/Products/Children'sPlans/ChildrensPlansLP.aspx

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