Recruitment on Financial Consultants in HDFC SLIC

ON

“RECRUITMENT OF FINANCIAL CONSULTANTS IN HDFC SLIC”

TABLE OF CONTENTS

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CONTENTS 1. EXECUTIVE SUMMERY. 2. OBJECTIVE OF THE STUDY 3. RESEARCH METHODOLOGY 4. INTRODUCTION ( MAIN REPORT ANALYSIS ) •

COMPANY PROFILE.

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CORPORATE PROFILE.

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HDFC Ltd AND GROUP COMPANY

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KEY TERMS.

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COMPETITOR

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PRODUCT OF HDFC SLIC

5. CHANNEL DEVELOPMENT 6. RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT 7. ROLE AND RESPONSIBILITY OF FINANCIAL CONSULTANT 8. SWOT ANALYSIS OF HDFC SL 9. SUGGESTIONS & RECOMMENDATION OF RESEARCH. 10. LIMITATION 11. CONCLUSION 12. BIBLIOGRAPHY. 13. WORD OF THANKS.

DECLARATION 2

I, xyz declare that the project report entitled “ Recruitment on Financial Consultants in HDFC SLIC” being submitted to the xyz University for the fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION in my own endeavors and it has not been submitted earlier to any Institution / University for any degree.

xyz

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PREFACE

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

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

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

With such a large population and the untapped market of population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually.

Together with banking services, it adds about 7 per Cent to the country’s GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India.

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ACKNOWLEDGMENT This project has been prepared as a part of an internship required during the completion of MBA programme at XYZ .

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

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

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

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

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CHAPTER - 1 EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

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

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

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

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

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

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

MY LEARNINGS FROM THE PROJECT This 8 weeks training at HDFC SLIC have taught me a great deal. Since it was my first experience of working, I initially had my inhabitations but all of them went away very soon. Interacting with people, knowing their ideas and way of thinking had been quite interesting. I now have a slightly better understanding about people and how they behave. I met a number of people and each of them was so different.

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

I also have a better knowledge about the insurance industry and its working. Most of all I learn that the world out there is tough and you have to work hard to create a niche for yourself.

It was great opportunity for me to do my internship from HDFC SL LIFE. :  I got a project which gave me the opportunity to meet the various people in the corporate world. I could understand the working culture of corporate as well as government offices. Before this I never visited such big organizations.  Making plan for the next day and finding the concern department and person allowed me to increase my communication ability, written as well as verbal.

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 My confidence to meet people has tremendously gone up. Today I have that much confidence that I can meet to any big person in any organization.  My boss also helped me very much to learn about corporate world. How to prepare the proposals and how to give the company offer all I learnt from my boss.

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

The time spent with HDFC SLIC provided me insight into corporate world functioning. This opportunity enabled me to learn basics of marketing skills. Also this has been an excellent exposure to the corporate world and has helped me sharpen my skills and knowledge of the business environment. This project report is prepared after a through analysis and in intended to be conclusive and comprehensive.

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

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ABOUT THE PROJECT

Life insurance is one of the best ways to make the life secure. Even after death it provides benefits to the nominees. In private sector HDFC STANDARD LIFE INSURANCE is the most respected company.

This project is concern about the understanding the products of HDFC SLIC and sales promotion through recruitment of financial consultants.

“Man Power Is Our Asset” the saying goes true if the people are employed taking all aspect in to consideration. The overall project deals in studying the facts, which should be considered while recruiting Financial Consultant for the company.

The project work started by understanding the products of the company after getting familiar with the products of the company the following things has been done: 1.

2.

3.

4.

5.

Market segmentation to recruit quality peoples Tele calling Fixing meetings Follow Ups Final documentation The main objective of this project is to understand the products of the company and to do sales promotion by recruiting Financial Consultants of the company, as the consultants generate the overall business. Emphasis was given in selection of quality people having an appropriate profile those can generate good business for the company.

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CHAPTER - 2 OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

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MANAGEMENT OBJECTIVE  “ To recommend the most effective means of recruiting, potentially high performing financial consultants” RESEARCH OBJECTIVE  To study approaches followed by competitors.  To find out various method adopted by BDM’S  To find out parameters considered while financial consultant recruitment.  To find out a way to classify financial consultant.  To study the perception level of existing financial consultant  To study the perception of new financial consultant about the company.

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

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CHAPTER - 3 SECANDARY DATA

SECANDARY DATA 13

RESEARCH DESIGN The efforts were to inculcate a many agent or financial consultant of various companies’ different people so as to evince the deep information and facts regarding the mechanism and financial consultant perception about HDFC STANDARD LIFE INSURANCE COMPANY available in the market.

DATA COLLECTION METHOD: PRIMARY SOURCES a) Direct integration with different agents. b) Integration with company distributors and company personnel. c) Integration with various customers.

SECONDARY DATA a) From the company web sites, broachers of various products available in the market. b) From various competitors web sites. c) From various newspapers and magazines.

SAMPLING Sampling method is used to know the opinion of the financial consultant regarding company and what are the changes they want in the company.

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

FIELD WORK 1. ROUTE RIDING 14

I spent the time in market and different insurance company’s office for collecting the information of the company at different HDFC SLIC offices and knowing the opinion of the financial consultant.

2. DATA COLLECTION I covered the different offices in delhi. Interaction with financial consultant provides experience, knowledge. It also helped me to get information regarding customer and their taste.

It helped me out in making my report regarding the customer perception and satisfaction level and also about their taste and preferences and what be the steps to overcome those problems.

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

4. RESEARCH INSTRUMENTS a) OBSERVATION- Careful observation of all the offices were done where HDFC STANDARD LIFE INSURANCE COMPANY financial consultant are being taking license along with other companies and questions were asked from financial consultant why they prefer to take other companies blicence

b) QUESTIONNAIRE- Structure non disguised questionnaire and structured disguised questions has been asked from the respondents to collect information about company and their performance level.

The questions generally asked to achieve the desired objective were: • Who are the competitors of the company?

• Are products of the company are satisfactory?

• What is the customer perception regarding the products of the company and its brand image?

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•

Does company solve their complaints( if any) completely?

FILLING THE QUESTIONNAIRE Filling of the questionnaire by various individual from age group of 15-55 The commencement of field work included the process of getting questionnaire filled up and also getting all the relevant information regarding visibility of HDFC STANDARD LIFE INSURANCE COMPANY for fulfillment of business decisions.

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CHAPTER - 4 INTRODUCTION

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

LIFE INSURANCE IN INDIA INTRODUCTION With such a large population and the untapped market of population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually.

Together with banking services, it adds about 7 per Cent to the country’s GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India.

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

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INSURANCE SECTOR REFORMS Prior to liberalization of Insurance industry, Life insurance was monopoly of LIC. In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor Was formed to evaluate the Indian insurance industry and give its recommendations. The Committee came up with the following major provisions: • Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry.

• Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

• Only one State Level Life Insurance Company should be allowed to operate in each state.

It was after this committee came into effect the regulatory body of insurance sector was formed with the name of IRDA. IRDA: The IRDA since its incorporation as a statutory body has been framing Regulations and registering the private sector insurance companies. IRDA being an independent statutory body has put a framework of globally compatible regulations.

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

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CURRENT SCENARIO OF THE INDUSTRY

NAME OF THE PLAYER

MARKET SHARE (%)

LIC

82.3

ICICI PRUDENTIAL

5.63

BIRLA SUN LIFE

2.56

ING VYSYA

0.37

BAJAJ ALLIANZ

2.03

SBI LIFE

1.80

HDFC STANDARD LIFE

1.36

TATA AIG

1.29

MAX NEW YORK LIFE

0.9

AVIVA

0.79

AMP SANMAR

0.26

MET LIFE

0.21

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

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

CUSTOMER SERVICE Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of Technology has become imperative in the 22

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

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

LIC has already well established and have an extensive distribution channel and Presence. New players may find it expensive and time consuming to bring up a distribution network to such standards.

Therefore they are looking to the diverse areas distribution channel to have an advantage. At present the distribution channels that are Available in the market are: • Direct selling/Retail • Corporate agents • Group selling • Brokers and cooperative societies • Bancassurance DIRECT SELLING/RETAIL Direct selling or retail business is carried out by Agents of the company. This is the main distribution channel due to the complexity of most insurance products (Endowment, Whole of Life, Unit Linked). This tends to be the focus of most companies due to its past success as well as its ability to deliver the right advice. However, this channel can be expensive and it is a time consuming sales process. However, the channel will remain the largest for many years to come. An agent is the public face of an Insurance company. Most of the clients of Insurance Company never get to see any one besides the agent. Hence it is important that this face is always smiling and presentable and the facts and 23

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

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

3. Completing a policy is not the end of the job of an agent but just the beginning of a new relationship.

Having sold a new insurance policy, s/he has to ensure that the Policy continues in the books of the Insurance Company and its proposed benefits are in no way compromised.

For this purpose an agent has to:  Keep in touch with the policyholder to make sure that renewal premiums are paid in time.  ensure that nominations are made or changed, if necessary, as and when it is required.

 assist in collecting the claim amounts as and when they become due by helping the claimants to complete all documents and evidences.  Apart from these routine procedures, at times an insured may need a loan against his policy.

The details of various situations for which a loan can be given and its terms have to be explained to the policyholder. These go a long way in strengthening the bond between policyholder and the agent.

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

BANCASSURANCE IN INDIA Bancassurance in India is a very new concept, but is fast gaining ground. In India, the banking and insurance sectors are regulated by two different entities (banking by RBI and insurance by IRDA) and bancassurance being the combinations of two sectors comes under the purview of both the regulators.

Each of the regulators has given out detailed guidelines for banks getting into insurance sector.

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

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THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) GUIDELINES FOR THE BANCASSURANCE ARE:  Each bank that sells insurance must have a chief insurance executive to handle all the insurance activities.  All the people involved in selling should under-go mandatory training at an institute accredited by IRDA and pass the examination conducted by the authority.  Commercial banks, including cooperative banks and regional rural banks, may become corporate agents for one insurance company.  Banks cannot become insurance brokers

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CORPORATE PROFILE The Joint Venture HDFC Standard Life

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

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

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

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

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

In October 1998, the joint venture agreement was renewed and additional resource made available.

Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India.

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

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

In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

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INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.

Company’s ambition from as far back as October 1995, was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration.

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

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

 Increasing market share

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COMPANY’S VALUES:  SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. This is done by offering life insurance and pension products.  TRUST: Company appreciates the trust placed by our policy holders in us. Hence, company will aim to manage their investments very carefully and live up to this trust.  INNOVATION: Recognizing the different needs of our customers, company will be offering a range of innovative products to meet these needs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Group Insurance- An insurance policy taken out by employers to provide life cover to their employees.

Usually the cheapest form of insurance.

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

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Hospital cash benefit rider- A rider that provides cover for hospitalization Immediate annuity- An annuity that starts payments immediately after, or soon after, the first premium is paid.

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

Insured- The policyholder Insurer- The insurance company Investments- Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return.

Investment risks- The risks that your investments face. These include the risk of interest rate fluctuations impacting your debt investments or the prices of equities going down.

Level term cover rider- A rider that increases the life cover in non-term plans, up to a maximum of the sum assured on the base policy. The rider offers death benefit along , and serves the need for extra protection for a specified time period.

Liabilities- Monies owed, debt and other financial obligations of a person Life annuity- An annuity that makes regular income payments till the policyholder is alive. On the policyholder’s death, all income payments cease and there are no beneficiary benefits.

Loyalty additions- Additional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment-based insurance plans for staying on through its term. Loyalty additions are paid as a percentage of the sum assured, with the amount depending on the insurer’s financial performance.

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

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withdrawn.

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

Maturity date- The date on which a policy term or fixed-income investment like fixed deposit or bond comes to an end.

Money-back plans- A variant of endowment plans in which survival benefits are disbursed through the policy term, rather than in a lump sum at the end.

Net asset value (NAV)- The simplest measure of how a scheme is performing, it tells how much each unit of it is worth at any point in time. A scheme’s NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued.

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

Participative plans- See ‘with-profit’ policy.

Pension Plan- Investment products offered by insurance companies and mutual funds that required the investor to make defined contributions over regular periods, mostly every year. The contributions are invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through regular pay-out options.

Periodic payment investments- Investment options that have payouts in fixed intervals. For example, money-back life insurance policies.

Permanent partial disability-Permanent loss of any body part, one eye, one limb or one finger or a toe, or injuries that render the insured in capable of earning an income from the date of the accident onwards from any work, occupation or profession. While the loss of the body part may be permanent, its effects on the insured’s life are partial.

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

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sight in either eyes or any other injury that renders the insured incapable of earning an income. Cover this risk to secure your wealth Policy-The legal document issued by an insurance company to a policyholder that states the terms and conditions of an insurance contract.

Policyholder- The person who buys an insurance policy. Also referred to as the ‘insured’ Policy term- The period for which an insurance policy provides cover.

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

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

Recurring deposit-This is offered both in post office and banks where you are required to contribute a fixed amount ever month. It is a great tool for making small and regular savings.

Rest-The frequency at which interest is calculated on the outstanding loan balance. The more regularly the interest is calculated on the outstanding loan amount, the lesser the interest costs and cheaper the loan. For example, monthly rests would make a loan with the same rate cheaper than a quarterly rest.

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

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

Small savings -See post office schemes.

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

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

Survival benefits-The amount payable to a policyholder under an investment-based plan if he survives the policy term. Typically, it is the sum assured plus returns (guaranteed additions / bonus) accrued.

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

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

Terminal bonus-A one-time bonus paid on maturity of a with-profit plan.

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

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

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

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

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

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

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

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COMPETITORS

In presently there are 16 life insurance corporation companies are working and performing in India. So definitely HDFC Standard life has good competition with other. The main competitors are as following.

•

LIFE Insurance Corporation.( Public sector)

•

ICICI Prudential Life Insurance.

•

BAJAJ Allianz.

•

SBI Life Insurance.

•

BIRLA Sun Life.

•

AVIVA.

•

TATA AIG

•

MET LIFE.

•

ING Vysya

•

HDFC SLIC

•

OM KOTAK MAHINDRA

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COMPETITORS

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Insurance Companies Insurance is that covers the insured for a specified period such as one, five, or 10 years, often with an option to renew. Premiums are paid throughout this time, but generally become higher during the course of the term, as the policyholder grows older.

A life insurance policy purchased for a term of years. If the person dies during this term, the beneficiary receives the face amount of the policy. The policy expires at the end of the stated number of years.

Insurance provides coverage for a specific period of time, usually from one to thirty years. Term policies provide a death benefit only if the insured dies during the term. Term insurance is life insurance coverage for a specified period of time. This can be at a guaranteed rate or in some cases a guaranteed rate for a period of time and then a projected rate. Term periods can be for 1 year, 5 years, 10 years, 15, 20 and even 30 years. For example: 30 year level term would guarantee a level premium for 30 years based on a specified death benefit. Term life insurance is usually the least expensive form of life coverage.

Insurance industry earlier comprised of only two state insurers. Life Insurers ie Life Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC) GIC had four subsidiary companies. With effect from Dec'2000, these subsidiaries have been de-linked from parent company and made as independent insurance companies. Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

The licenses for insurance companies were issued by the Insurance Regulatory and Development Authority (IRDA) in 2001. At present following are the players in the Indian Market:

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Insurance Companies in India Bajaj Allianz Life Insurance

AMP Sanmar Life Insurance

Birla Sun Life Insurance

Aviva Life Insurance

HDFC Life Insurance

ICICI Prudential Life Insurance

Max Newyork Life Insurance

Metlife India Insurance

Reliance Life Insurance

Shiram Life Insurance

Tata AIG Life Insurance

SBI Life Insurance

Bharti AXA Life Insurance

ING Vysya Life Insurance

Sahara Life Insurance

Kotak Mahindra Insurance

General Insurance Corporation India

Royal Sundaram Insurance

Canara HSBC OBC Life Insurance

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The Life Insurance Corporation (LIC) of India founded in 1956 is the largest life insurance company in India owned solely by the Government of India. Headquartered in Mumbai, which is considered the financial capital of India, LIC presently has 7 Zonal Offices and 100 Divisional Offices situated all around the country. In addition to an even distribution of 2048 branches located in different towns and cities of India, LIC also has a network of around one million agents who solicit life insurance policies to the public.

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

The first war of independence in 1857, the World Wars 1 and 2 (1914-1918 and 1939-45) and India's national struggle for freedom in between had adverse effect on the economy. In addition to this the period of world wide economic crisis in between the two World Wars termed as the period of Great Depression led to the high rate of bankruptcies and liquidation of most Life Insurance Companies in India that existed during that time. These occurrences led to loss of faith in insurance of the people of India. The Life Insurance Companies Act and Provident Fund Act both passed in 1912 provided regulatory mechanisms to the Life Insurance Industry in India for the first time. After undergoing several other such reforms in the following decades and nearly a decade after India achieved independence, the Parliament of India passed the Life Insurance of India Act on 19 th June, 1956 following which the Life Insurance Corporation (LIC) of India on 1 st September of the same year.

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

Present Status of LIC of India

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Existing as a towering insurance company for over 50 years, LIC has acquired almost monopoly power in the solicitation and sale of life insurance policies in India. In addition to the summary regarding the present stature provided at the beginning, LIC has extended its activities in 12 countries other than India with the objective of catering to the insurance needs of Non Resident Indians. The enforcement of New Economic Reforms in 1991 coupled with the formation of Insurance Regulatory and Development Authority Act (IRDA) of 2000 (which started issuing licenses to private life insurers) has diluted the monopolistic attitude commanded by LIC.

Life Insurance Corporation of India

Type Government-owned corporation Founded September 1, 1956 Headquarters Headquarters in Mumbai, India (Various other locations in India and abroad) Key people D. K. Malhotra, Thomas Mathew and A. Dasgupta (Managing Directors) Industry Life insurance Products Individual Life Insurance, Group Insurance and Pension Plans

Employees 112,184

ABOUT TATA AIG LIFE INSURANCE COMPANY LTD 43

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s global presence as on of the world’s leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001 Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s global presence as the world’s leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups, providing various types of add-ons and options on basic life.

Products to give consumers flexibility and choice.

Whole Life Policy: Tata MahaLife - The Whole Life Plan MahaLife Gold Special Plan Policy: Assure Money Saver Plan Money Back Policy: Assure 15 years Lifeline (with Returns of Premiums) 44

Assure 21 years money saver Pension Plans or Annuities: Assured Golden Years Plan Nirvana - Pension Plan Nirvana Plus Comprehensive Gratuity Comprehensive Superannuation Endowment Policy: Assure Security and Growth Plan Assure Educare Assure Career Builder

AVIVA LIFE INSURANCE COMPANY

Aviva Life Insurance India is a private insurance company formed from collaboration between the Aviva insurance group of UK and the Dabur group, one of India's oldest and top producers of traditional health care products. Aviva's products are meant to provide customers flexibility, transparency and value for money.

History - Aviva insurance group in UK with a history dating back to 1696, today stands as one of the leading provider of life and pension products to Europe and other parts of the world. The history of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign insurance group in terms of the compensation paid by the Indian Government. In 1995 Aviva was the first foreign insurance company to start its representative office in India. At present in Aviva Life

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

Programme highlights of today • •

Aviva Life Insurance India has 40 Branches in India, including rural branches supporting its distribution network. With over 27,000 Financial Planning Advisers (FPAs) and the Financial Health Check (FHC) programme it has been successful in setting up its position in the Indian market. The FHC is a free service administered by the FPAs which analyses the customer's longterm savings and insurance needs and depending on the life stage and earnings of the customer it selects the proper insurance product for them.

• •

Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Cooperative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. This has helped to distribute Aviva products in nearly 378 towns and cities across India.

•

Aviva Life Insurance India offers more modern Unit Linked and Unitized With Profit money products to the customers. Following the IRDA guidelines, with effect from 1 July 2006, these unit - linked products have been modified. The products of Aviva insurance group of India are:

• • • • • • • • •

Lifelong Lifesaver or Easy Life Plus Young Achiever Life Bond and Life Bond Plus Pension Plus Life Shield Freedom Life Plan LifeBond5 The fund management an operation of Aviva Life Insurance India is controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked fund.

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•

Protector Fund - The fund comprises of debt securities in the range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%.

•

Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%.

•

Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and money market and cash in the range of 0-10%.

•

Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities in the range of 0-85% and money market and cash in the range of 0-20%.

This fund provides investment security to the capital of the customers. Through their association with Basic (a micro financial institution) and other NGOs, Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day. In Aviva Life Insurance India , thus , by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing needs.

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

With a pan India presence and over 950 + towns, Bajaj Allianz Life Insurance has already sold over 5 million policies. Bajaj Allianz Life Insurance has developed insurance solutions that cater to every segment and age-income profiles. For companies it provides comprehensive 'Employee Benefit Solutions' (Group Term Life, EDLI, Gratuity, Super-annuation, Key man Insurance and more); for the individual Invest Gain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Care First, Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return of premium),

47

Saran Visitant (Retirement Plan), Protector (Mortgage term insurance plan), Unit Gain Plus Gold, New Unit Gain Super, New Family Gain, New Unit Gain Plus, New Unit Gain, New Unit Gain Premier, New Unit Gain Easy Pension Plus, New Unit Gain Easy Pension Plus Single premium and Future Secure.

Currently Bajaj Allianz has a product portfolio of over 30 flexible and simple products and more needbased products are in the pipeline

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UNIT LINKED Regular Premium New Unit Gain Unit Gain Plus Gold Single Premium New Unit Gain Plus SP New Unit Gain Premier SP

TRADITIONAL

PENSION Annuity Pension Guarantee

Endowment Life Time Care Super Saver

Retirement Future Income Generator Swarna Vishranti

Money Back Cash Gain

TERM PLANS New Risk Care Term Care

WOMEN INSURANCE Working Women House Wives

CHILDREN PLAN Child Gain

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JUST LAUNCHED Fortune Plus Family Assure

HEALTH Family CareFirst Health Care

SBI LIFE INSURANCE SBI Life Insurance is the 3rd largest private life insurance company in the country, with total premium income exceeding Rs. 1000 crore in 2005-06, and the first to declare a profit after just 5 years in operation. SBI Life is a joint venture of SBI, India's largest and most trusted bank for 200 years, and Cardiff, the insurance arm of BNP Paribas with global expertise.

SBI Life Insurance in •

Insurance Company

•

Life Insurance 50

SBI Life Insurance is a collaboration between the State Bank of India and BNP Paribas Assurance. SBI owns 74% of the capital and BNP Paribas Assurance the rest 26%.

State Bank of India is the biggest Bank in the retail sector. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. , is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the forth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion.

51

They have more than 40000 agents to sell there products:

Products Unit Linked Products SBI Life - Horizon II SBI Life - Unit Plus II SBI Life - Unit Plus Child Plan SBI Life - Unit Plus Elite Plan Pension Products SBI Life - Horizon II Pension SBI Life - Unit Plus II Pension SBI Life - Lifelong Pensions SBI Life - Immediate Annuity Pure Protection Products SBI Life - Swadhan SBI Life - Shield "SBI Life - Shield" used as Keyman Protection cum Savings SBI Life - Sudarshan SBI Life - Scholar II Money back Scheme

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ICICI PRUDENTIAL LIFE INSURANCE ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company.in.the.UK. ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

ICICI Prudential Life Insurance Company instigated in December 2000 is one of the leading private life insurers in India. A product of a highly lucrative joint venture between ICICI Bank India and Prudential PLC of UK, ICICI Prudential is most commonly known as ICICI Prulife. Spanning the country with over 100 offices and 2.6 lakh advisors, ICICI PruLife is one of the most trusted private firms in life insurance.services.in.India.

The various services by ICICI Prudential include life insurance plans, retirement solutions and health insurance plans. Under the ICICI Prudential Life Insurance or ICICI PruLife, the company offers education insurance, wealth creation, guaranteed premium and protection plans as customized services.

For life stage pension plans we have specialized retirement plans and life time gold services available with ICICI Prudential. Health insurance services include crisis cover and major and chronic disease coverage plans that include cancer, diabetes and other health problems.

For any information about the available policies and the plan most appropriate for you, ICICI employs specially trained advisors and customer care executives. They guide you about the tax savings and tax 53

plans available, the various funds launched - mutual fund, ELSS equity funds, discovery funds, infrastructure fund etc. and about ongoing ICICI Prudential fund value. For any information on ICICI prudential l branches, customer login, online services, and info about the ICICI prudential annual growth report, login to the ICICI prudential official website. You will also find info on ICICI prudential asset management co., their AMC and NAV management facilities and contact info about their branches and corporate office on the website of ICICI Prulife.

METLIFE INSURANCE Metlife Insurance is a prime mover in the India's insurance market. MetLife India Insurance Company Limited is affiliated to the MetLife, Inc. Metlife offers its customers a wide array of value added, innovative financial products. The company operates in over 600 locations in India, via its own offices and its bank partners.

Metlife Insurance's client base comprises individual entities as well as customer groups. Over 32,00 financial advisors work under Metlife Insurance. These personnel are engaged in the provision of quality financial advice to customers through out India.

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

Services of MetLife companies involve the following areas.

• Life insurance • Retail banking • Annuities • Home insurance • Automobile insurance Financial services provided by the company include individual insurance, reinsurance and group insurance. Savings and retirement product services are offered to corporations and various types of other institutions. MetLife India Insurance Company Ltd offer the following services.

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• • •

Individual plans Micro Finance Employee Benefits

The company provides its customers with a premier Financial Advisor Zone. A new offering from MetLife India Insurance Company Ltd has come in the form of introduction of 'drop box facilities' for premium collection. At present this facility is available at the following metros.

• Bangalore, Mumbai , Chennai, Kolkata, Delhi

BIRLA SUNLIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Group and Sun Life Financial Inc. BSLI started functioning in March 2001 after getting the certificate of registration from IRDA. Birla Sun Life Insurance Company Limited introduced unit Linked Life Insurance Solutions in India. Within a short span of time it was able to establish itself as a leading player in the Private Life Insurance Industry. It has been innovative and come up with customer-centric products to provide safety and services. The company has web-enabled IT systems for better customer services and a strong distribution channel which is easily approachable. The company shows corporate governance and a high degree of business practices It has professional knowledge and global expertise of Aditya Birla Group. Birla Sunlife Insurance has been providing first class financial solutions to its customers and has been amongst the top three private sector.life.insurance.companies. Its mission is to be amongst the top players in the eyes of customers and the first choice of insurance and retirement solutions to individuals and groups. These innovative solutions are linked with global and technical expertise and are deployed by a multi channel distribution network.and.enhanced.technology.

The company aims at keeping all people associated with it - customers, clients, stakeholders and 55

employees- happy and fully satisfied. It wants to provide value added products and services to the customers, job satisfaction to employees and highest returns to.the.shareholders.

Qualities like integrity, commitment, passion, and speed are the core values of the company. The products offered by the company are: Individual-Life Protection Premium Back Term Plan BirlaSunLifeTermPlan

Saving Simply Life Flexi Save Plus Supreme Life Life Companion Prime Life FlexiSavePlus Flexi Cash Flow Accidental Death and Dismemberment Rider

56

Children Children's.Dream.Plan Retirement Flexi.Secure.Life.Retirement.Plan-II Riders Critical Illness Plus Rider Term Rider Waiver of Premium Critical Illness Rider Critical Illness - Woman Rider

MAX NEW YORK LIFE INSURANCE Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multibusiness corporate, and New York Life International, a global expert in life insurance.

New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India.

Max New York Life brings to you specially customized products and services that are flexible and can e customized to suit your needs. It now has 30 life insurance products and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy or plan that best fits their need. These include: 57

INDIVIDUAL-INSURANCE Protection Plans: • Whole Life • Level Term • Five Year Term R & C • Life Partner Plus Savings: o Life Gain Endowment o Life Pay Money Back o Life Gain Plus 20 o Life Gain Plus 25

20-Year Endowment Unit Linked: o Life Maker Premium o Life Maker Gold o Life Maker Platinum o Life Maker Pension o Life Invest GROUP INSURANCE o Group Term Life o Group Gratuity o Employee Deposit Linked Insurance o Credit Shield o Unit Linked Group Gratuity o Unit Linked Group Superannuation RURAL INSURANCE o Max Suraksha o Easy Term o Max Mangal Endowment o Max Vriksha Money Back MAX AMSURE o Max Amsure Bonus Builder o Max Amsure Business Builder o Max Amsure Money Back o Max Amsure Future Builder 58

o

Max Amsure Secure Returns Builder

NAV • • • • • • •

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

OTHER PRODUCTS • Bancassurance Super Saver Bond • Mutual Fund Besides the above-mentioned products and services also find insurance calculator, retirement calculator, premium calculator and a plan finder that helps you decide the product best suited to your needs on the Max New York Life Insurance India Website. For long term care insurance, come to Max New York Life India and rest assured.

ING Vysya Life Insurance ING Vysya Life Insurance Company Limited established its foothold in the private life insurance industry in India in September 2001. In a branch network of over 140 branches with head office in Bangalore, ING Vysya Life Insurance Co employees around 3000 employees with a sales force of over 21,000 insurance agents and brokers. ING Vysya Life enjoys a customer base of 4.5 lakh and a total income of Rs. 400 crore. ING Vysya Life Insurance Co Ltd is the result of a joint venture between the world's second largest life insurance company - ING Insurance and one of the largest private sector banks in India - Vysya Bank. Another stakeholder in the JV is GMR Group.

59

ING Vysya Life Insurance brings to you an opportunity to help you fulfill a very important responsibility of yours towards your family. The ING Vysya Life protection plans help you in providing financial security to your family in your absence. Specially formulated policies include children's plans; retirement plans and investment and savings products that help you realize the dream of securing your future financially. The various insurance products and policies on offer by ING Vysya.Insurance.Company.include: Protection Plans • Conquering Life Savings Plans o Reassuring Life o Creating Life o Safal Jeevan o Creating Life Money Back o Safal Jeevan Money Back o ING LifePlus o ING PositiveLife o ING Creating Star Investment • Rewarding Life • Powering Life • New Freedom Plan • New One Life • New Fulfilling Life • High Life • High Life Plus

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Retirement • Best Years • New Future Perfect Riders • • • • •

Term Rider Waiver Of Premium Rider Accidental Death Rider Accidental Death, Disability And Dismemberment Rider Platinum life

The life insurance, medical insurance, general

insurance,

long-term

care

insurance,

group insurance, company insurance and financial services insurance products and mutual fund by ING Vysya Insurance are available with the ING Vysya Insurance Company branches, insurance agents and brokers and an insurance agency near you.

LIFE INSURANCE CORPORATION.

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LIC INSURANCE CORPORATION HAS BEEN ESTABLISHED AFTER THE MERGE OF 256 PRIVATE INSURANCE COMPANIES AFTER INDEPENDANCY. ICICI Prudential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

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

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

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

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

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

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

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

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

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

Savings Plans

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Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades.

ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment.

These solutions are developed to ensure your peace of mind for the years to come. For further information on our Retirement Solutions, the brochure.

Choose from amongst 6 retirement plans: A flexible unit-linked retirement solution that offers flexibilities during the accumulation as well as payout phase.

A regular premium unit-linked pension plan with an assurance of Capital Guarantee* A regular premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.

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

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

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

Choose from 5 Annuity options at the time of vesting 1. Life Annuity

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2. Life Annuity with return of purchase price 3. Life Annuity guaranteed for 5, 10, 15 years 4. Joint Life, Last Survivor without return of purchase price 5. Joint Life, Last Survivor with return of purchase price.

BAJAJ ALLIANZ LIFE INSURANCE

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself.

Bajaj auto limited is the largest manufacturing of two and three- wheelers in India and also of the largest manufacturers in the world. Baja Auto has been in operation for over 55 years. Allianz AG is in the business of general ( property & causality) Insurance

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CHAPTER - 5 PRODUCT OF HDFC SLIC

65

66

67

UNIT LINKED YOUNG STAR PLAN Invest in your child’s dreams, and secure your self-respect: As a parent, your priority is your children’s future and being able to meet their dreams and aspirations.

Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life.

Plan today to ensure a bright future for your children. Start building savings today with the HDFC Unit Linked Young Star Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

HDFC UNIT LINKED YOUNG STAR PLAN The HDFC Unit Linked Young Star Plan gives you: • • • •

An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments.

Valuable protection in case of the insured parent’s unfortunate demise.

Very flexible benefit combinations and payment options.

Flexible additional benefit options such as critical illness cover.

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

In case of your unfortunate demise during the policy term, HDFC Standard Life will continue the policy AND continue to pay the original premiums you had chosen. Your family will receive the Sum Assured you had chosen* plus the fund built up by your and HDFC Standard Life’s contributions. *** Payable at the time of death **Payable at the end of the policy term Use HDFC Standard Life’s excellent investment options to maximise your savings and maximize your child’s achievements. We will provide security for your child and make those savings on your behalf, in your absence.

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EASY STEPS TO YOUR OWN PLAN Step 1 Step 2 Step 3 Step 4

Choose the premium you wish to invest.

Choose the amount of Protection (Sum Assured) you desire.

Choose the additional benefit options you desire.

Choose the investment fund or funds you desire.

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70

MONEY BACK PLAN Secure your financial independence. Live life on your own terms.

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

The table below will help you identify and classify some of your financial goals. You can prioritize these goals and set your objectives accordingly (see indicative table given below).

LONG-TERM GOALS Provide adequate cover for Life,

SHORT TERM GOALS Buying a car

Critical Illness or disability.

Saving for big-ticket assets like your

Saving for your marriage

house.

Saving for your children’s education Having a regular system for savings

Vacation abroad

HDFC MONEY BACK PLAN The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you: •

A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the policy term (see the table given below) – an ideal way to secure your long- term as well as short-

• •

term financial goals.

A lump sum payment on survival up to maturity date.

Valuable protection to your family by way of lump sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payouts.

Making the right kind of investment will enable you to achieve your objectives – be it your immediate expenses or else securing your future financial needs. Our Money Back Plan gives you a wide range of terms and cash benefit schedule to choose from. A summary of Key Benefits including the cash lump sum payments, expressed as a percentage of Sum Assured is shown below: 71

KEY BENEFITS Total Term

Policy

Death

Survival Benefit

5 Yrs.

Benefit Within 10 Yrs.

15 Yrs.

20 Yrs.

25 Yrs.

30 Yrs.

Policy Term

60% 10

40%

+

Attaching -

-

-

-

Bonuses

Sum 40%

15

30%

30%

+

Assured

Attaching -

-

-

Bonuses 25% 20

25%

25%

25%

Attaching 20%

20%

20%

20%

20%

-

Attaching -

15%

15%

15%

15%

(Over above the

25% 15%

bonuses and

+

Bonuses 30

+ attaching

+

Bonuses 25

100%

+ earlier

Attaching payouts).

Bonuses

MATURITY VALUE On maturity you receive survival benefit due at that point of time along with attaching bonuses for the full Sum Assured calculated for the full term.

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

EASY STEPS TO YOUR OWN PLAN

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Step 1 Step 2 Step 3

Choose the amount of targeted savings and policy term using our Financial Planning Tool.

Choose from any one of the 4 additional optional benefits as per your requirement.

Work out the premium payable and Sum Assured with our Financial Consultant.

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

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

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

•

Single premium investment plan.

•

Predetermined exit options occurring throughout your life time.

•

In case of unfortunate demise during the policy term, this participating (‘With Profits’) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments.

•

On exercising exit option we will pay the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments.

UNIT LINKED ENDOWMENT

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

You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Unit Linked Endowment, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity.

The HDFC Unit Linked Endowment Plan gives you: • An outstanding investment opportunity by providing a choice of thoroughly researched and 73

• • • •

selected investments.

Valuable protection to your family in case you are not around.

Flexible benefit combinations and payment options.

Flexible additional benefit options such as critical illness cover.

Access to your accumulated fund before maturity.

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

In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

Use HDFC Standard Life’s excellent investment options to maximise your savings & secure your and your family’s future. We will provide financial security for your family in your absence.

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

HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Endowment is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.

EASY STEPS TO YOUR OWN PLAN Step 1 Step 2 Step 3 Step 4

Choose the premium you wish to invest.

Choose the amount of protection (Sum Assured) you desire.

Choose the additional plan benefits you desire.

Choose the investment fund or funds you desire.

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CHAPTER - 6 CHANNAL DEVELOPMENT

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

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

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

Internal sources used by these organizations: 1. By giving promotions.

2. By asking their existing sales persons for contacts.

External sources used are as follows: 1. By recruiting former employees of their own organization, 2. Through employment agencies.

3. Sales force of other sales organizations.

4. Through educational institutions.

5. Through advertisements.

The financial consultant in HDFC SLIC An FC at HDFC SLIC is one of the main strengths of the company. It’s a partnership that results in unlimited growth opportunity with the company.

ROLE: To identify prospective customers provide tailor-made solutions to cater to their individual needs conducts, regular reviews to keep customer on tract and last but not least achieve target.

THE BENEFIT: A premium product portfolio that cater to a wide range of financial needs, excellent back end support, attractive returns and benefits round the clock customer service and extensive training 77

for that edge over the competition.

THE ADVANTAGES: no start up capital, any supervision, flexible working environment and unlimited earning potential.

BE A FINANCIAL CONSULTANT: Being an HDFC SLIC FC can be enriching and exciting career option. It’s an opportunity to associate with an industry leader. Be in touch with a latest and finest insurance practice from around the globe and grow both personally and professionally. Here are some of the benefits of being a part of HDFC SLIC  Unlimited earning potential.  A clear career path.  All round support through advertising, you’re in home consultant’s world class training.  A comprehensive benefit package.

Being a financial consultant over HDFC SLIC, you will go through a training, career, reward and recognition and remain well-informed and knowledgeable about the company’s product in the market.

There is a future focuses on soft skill such as communication, managing long term relationship and selling skills, which are very relevant in service-drive industry like life insurance. State of art infrastructure training facilities coupled with an excellent faculty guarantee and exceptional learning environment. For FC who might be occupied with their daily business/ professional routine. HDFC SLIC also offer commercial training options such as online and self –learning are also provided by the organization. A 2 days training schedule covers the mandatory IRDA training requirement and HDFC SLIC product training module revision session ensures that the candidates thoroughly understand the course contents and the well prepared for the licensing examination. Theoretical training is inter shared with practical appointment settings with potential customer, giving FC a feel of how their business will work from the very first day. All through the sales development managers who provide continues 78

support to FC in achieving independence towards growing business. After the training they have to undergo online or a manual examination conducted by IRDA after qualifying the examinations, they get a certificate from RNIS{ Ritu nanda institute of insurance}.

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

At HDFC SLIC , we believe that our FC are our ambassadors to the customer. They are a key source of business for the organization and are the continuing link with our clients that’s why we take a lot of care in recruiting and developing our advisor force, so that we continue to set higher standards of quality in service and salesmanship. To cater the need of the knowledge- oriented market place, we look for 12th pass, good communication and enjoy meeting new people . Prior sales experience is an added benefit.

Some of the qualities we seek are: -self motivation.

-A master communicator.

-A go getter.

- A 12th pass.

TRANNING: At HDFC SLIC, we understand the importance of training in dynamic business environment. Our FC go through both generic and specific professional programmes that helps them.

CAREER: At HDFC SLIC career development is emphasized upon from the very day the FC join the office. Though individual meetings with his/her manager , the FC can discuss various issues related top business development and career enhancement and expectation from the organization in terms of challenging career in insurance sector.

THE JOB PROFILE OF FINANCIAL CONSULTANT INCLUDES : SEARCH FOR POTENTIAL CUSTOMERS Data base  Questionnaire 79

 Cold calls LIST OUT PROSPECTIVE CLIENTS Prospecting  Study of customer profile  Personal visits  Telephonic follow up  Maintain data base

CLOSURE OF SALES Gaining access  Relating skills  Need discovery skill

SEARCH FOR POTENTIAL CUSTOMER:  DATA BASE: the first step to get prospective clients through generation of database. We at the HDFCSLIC followed three types of data base.

WORKSITES: Upcoming BPO’S, shopping malls, government offices etc provided an excellent store house of excellent storehouse for prospective clients. They are mainly set up in NCR. OLD CUSTOMER: According to parito theory 80% of business come from 30% of old customers so we got all the names and addresses of all existing customers of the specified area.

The concept gave as a large business as the requirement of there customers has changed and they were aware about the bank and its working.

REFERENCE BASED: Reference gave us a good amount of data base which was capitalized 80

upon. There database were collected from the people who already the customers of the bank and whose database were with us. We requested each existing client to give us two or three names of such people who might be interested in knowing about the products of HDFC SLIC.  COLD CALLS: A part from the help of database and questionnaire we also got some  prospective client through cold calls. There are calls made to unknown person at a random manner and then making a brief enquiry about their perception about the bank and its products.

But one things which is important here is that the area to which we call has a major impact to the result. E.g. Defence colony DEFINITION OF AGENT The Indian contract act of 1872 defines an agent as “a person employed to do any act for another or to represent another in dealing with third person”.

WHY WE HAVE CHOSEN THE TITLE ‘CONSULTANT’?

Typically people associate agent with product providers, who merely act as middlemen, between the customer and the company. HDFC SLIC looks at its representatives much more than just agents.

Our representatives are professional and skilled advisors who are able to recommend the best solutions based upon the customer’s needs.

Furthermore , with the imminent entry of new players in to market, we believe product will become more complex, and customer expectations of financial advisors will increase.

Given this environment we believe that the successful advisor will have to assume the responsibility of a financial ‘Consultant’.

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

FUNCTION OF AN AGENT: The duties and functions of an agent are as follows: 81

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

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

3. To summit paper accounts in the company.

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

5. To perform his/her duties personally.

CRETRIA FOR BECOMING AN AGENT It is required that a person making an application for license to act as on insurance agent.  Is a citizen of India  Is at least 18 years of age as on the date of application.  Possesses the minimum educational qualification of a 12 th standard of equivalent examination n conducted by any recognized board/institute of education.  Has not been found to of unsound mind by a court of completed jurisdication.  Has not been found guilty of criminal misappropriation or criminal breach of trust or of cheating or of forgery or of an attempt to commit any such offence.  Has not been found guilty of, or has not knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.  Has not been found violated the code of conduct as may be specified by the IRDA regulations.

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

•

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

LICENCING PRCOSESS The licensing process would start with the insurer sponsoring a candidate for practical training. On completion of the mandated training, the applicant has to make an application in specified forms for 82

undergoing written exams. On clearing of both his written and oral exam, the applicant will make an application to the ‘designated person’ of the sponsoring licence. Based on meeting, all the above requirement and submission of application fee, the designated person will issue the license along with the identity card.The license is valid for a period of 3 years unless terminated or surrendered. For any renewal of license, the agent needs to undergo additional 25 hours of training in either life or general form as approved institution. If the designated person refuses to grant or renew license under this regulation, he shall given the reasons therefore to the applicant.

CODE OF CONDUCT FOR INSURANCE AGENT Every person licensed to act, as an insurance agent shall be subject to code of conduct specified below: Every agent shall Identify himself and the insurance company of which he is an insurance agent, disclosing his certified of licence to the prospect on demand for the purpose of soliciting or procuring insurance business.  Disseminate the requisite information in respect of insurance products offered for sale by his insurer, and also by other insures in the market, taking into account the needs of the prospect for insurance before offering any insurance product.  Disclose the commission offered to him in respect of the insurance product offered for sale.  Determine the premium to be charged by the insurer for the insurance product offered for sale.  Explain to the prospect in regard to information required in the proposal form by the insurer, and also the importance of disclosure of material information to the insurer.  Bring to the notice of the insurer any habits of income of the prospect, in the form of a 83

report ( may be called as Insurance Agents confidential report) along with every proposal submitted to the insurer, any material fact that may adversely affect the underwriting at reasonable enquires about the prospect.  Inform the prospect regarding the acceptance of the proposal by the insurer promptly.  Ensure that all possible steps foe delivery of the policy bond from the insurer to the prospect within 45 days of the date of proposal.  Obtain the requisite documents ( initially medical reports in case of life insurance business) at the time of filling the proposal form with the insurer, and the other document asked by the insurer for completion of the proposal.  File with the designated person, the certified copy of his agreement with the insurer (copy of the agreement shall be certified by any officer of the insurer authorized by the designated person) within fifteen days the date of his appointment as insurance agent as mentioned in regulation 4 above .  Hand over a copy of the proposal form or any other form to the propment before submitting such form to the insurer for purchase of insurance contract.  Abide by any matter that has been notified by the authority in its notification

EVERY AGENT SHALL NOT  Solicit or procure insurance business without holding a certificate of valid licence.  Advice or include the prospect i.e. omit to disclose the material information in the proposal form.  Submit wrong information in the proposal form or in the documents submitted to the insurer for acceptance of the proposal.  Utilize has handwriting in respect of answer to the questions in the proposal form, which contains the signature of the prospect.  Provided that if the prospect is an illiterate, the handwriting in the proposal form shall be form 84

another person who is not an insurance agent, and such proposal shall be countersigned by him ( the insurance agent) as a witness.  Utilize his handwriting in respect of answers to the questions in the medical reports.  Behave in discourteous manner with the prospect.  Interfere with any prospect introduced by any other insurance agent.  Offer better term and conditions than offered by his insurer.  Part to or share his agency commission with any prospect or any other person.  Receive a share of the benefit payment payable to the policyholder or the clamant or the beneficiary.  Give advice to any policyholder for termination of the insurance contract with any insurer in order to effect a new proposal within one hundred eighty days from date of such termination.  Indulge in any action which is against the agreement between him and his insurer.  Apply for fresh license to act as an insurer agent , if his earlier one has been terminated by the authority within five from the date of termination.  Remain or become a director of an insurer carrying on insurance business in india.  Obtain the signature of the proposal, or the signature of yhe life assured, or the signature of any other relevant person, in any form which remains unanswered or blank to the questions therein all theof such signature.  Every insurance agent shall, with a view to conserve the insurance business already procured from all persons who have become policyholders of the insurer through him.  Advice every policyholder to effect nomination or assignment or change of address or exercise of options, as the cause may be, offering necessary assistance in this behalf wherever necessary.  Make every attempt to ensuring to prevent the lapsation of policy to enable the policy to remain in force for the full benefits under the policy.  Render necessary assistance to the policyholder or claimants or beneficiaries in filling and filling 85

claim form and in complying with the requirement laid down in relation to settlement of claims by the insurer.  An insurance agent shall comply with section 40, 40-A, 41, 42, 48-A , 102 and 103 of the act, or regulation or notification of the said act or of any relevant act, or of any notifications regarding code of conduct, or any direction by authority.  Explanation in this regulation ‘any other for’ means such form, which shall be supplementary to the proposal form, which is furnished to the insurer by the proponent at to request of the insurer.

For example, the proponent may inform in a form to the insurer to reduce the sum assured or the plan of assurance or the mode of payment of premium, after the proposal form has been furnished to the insurer before the acceptance of insurance contract.

SALES PROMOTION THOUGH RECRUITMENT OF FINANCIAL CONSULTANTS STARTING THE PROJECT: The project was started by understanding the products and the selection criteria specified by IRDA to become a Agent of the company, after getting familiar with the products of the company and all the norms of IRDA, the task was to recruit the Financial Consultant for the company with a desired profile.

MARKET SEGMENTATION 86

Market if full of people but every candidate taken from market is not a promising candidate hence market segmentation is essential to enjoy quality people results. Selling require a good understanding about the policies hence following profile were chosen to give the agency, they are 1. Charted Accountants 2. Mutual Fund Advisors 3. Tax Consultants 4. High Income Group

TELECALLING- After market segmentation Tele calling was the medium to interact with the people on phone line and then fix the appointment for the further conversation. Tele calling was done on the data provided by management of the company and some data was collected from the sources like just dial service, internet, display boards and references. While tele calling a proper pitch was developed to talk to people because it is a job to perform as the best offering which a person can think of, while offering the same thing a different way was developed to talk to people having different background.

COLD CALLING- Cold calling was also tried as a tool for sales promotion but it has given results in few cases, the reason behind less success of this source was unavailability of the people at their office or they are busy and few of them take cold calling casually. The profile that was targeted requires proper channel to contact them and move forward.

FIXING APPOINTMENT AND MEETING PEOPLE-While tele calling a proper pitch is maintained to meet the persons required by offering them the best what they want, when a person is convinced on phone, a appointment was fixed to have further discussion about the products.

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

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

While talking to people it was observed that with the information about the industry sometime making a relationship with them by any means helps a lot in doing a job.

FOLLOW UPS- Follow up was instrumental in the entire project this is the thing to which I will like to give utmost importance. As selling insurance and appointing Financial consultants require two or more than two meetings hence proper follow up is required to have good results. The reason behind giving so much importance to follow up is any person who is targeted to offer the agency not in a position to take the agency at that point of time or he wants to weigh the entire alternative available in the market. In such casae follow up becomes the key to success.

AND FINAL DOCUMENTATION-Final documentation is done when a person gets ready to make the agency. This step requires all the basic formalities to be completed. After the documentation the training starts and after taking of 100 hours specified by IRDA a candidate has to appear for the test and once he/she passed they become liable to sell insurance. Following things are required for filling the form, they are:  Identity proof  Qualification certificate ( 12th result)  7 photograph  Pan card  Draft amounted Rs825 on behalf of HDFC SLIC, payable at Mumbai.  Age proof  Residential proof All these should be self attested.

REASONS WHY SHOULD A PERSON JOIN HDFC SLIC 88

1. SATISFACTION: The employee of the HDFC SLIC will always be satisfied with the work, employer, organization and most important thing ‘self satisfaction’.

2. FREEDOM: The financial consultant will get the complete freedom in regards of way of doing the work as well flexible timing.

3. EARNING: The financial consultant can earn a high income as commission depends upon the performance, as more you perform more you get.

4. ATTRACTIVE ADDITIONAL BENEFIT FOR HIGH PERFORMER: Other attractive benefits are given to the outstanding performer.

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

6. A SUCESSFUL TEAM: The organization work as a successful team with its FCs. 7. WORLD CLASS TRAINING: Proper training is imparted to the FC so as to enhance their capabilities.

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

9. COMPLETE AND DIVERSIFIED PRODUCT PORTFOLIO: HDFC SLIC has a attractive products with give ease to the FC in selling.

10. COMMITMENT TO CREER AGENCY SYSTEM: The financial consultant will get the complete commitment from the agency system.

11. SALES & MARKETING SUPPORT: Full support will be given by the sales and marketing in order to support the work of the employee.

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

RECRUITMENT OF FINANCIAL CONSULTANTS (FC) IN HDFC STANDARD LIFE This is a good business opportunity offered by HDFC standard life to become a business partner and earn a good amount of money.

1.BUSINESS DESCRIPTION Be our certified financial consultants join HDFC standard life insurance as a Financial consultant and help analyze your costomer’s financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customers on track.

Along with being a great career move you get associated with HDFC standard Life Insurance, India’s most respected private Life Insurance company. We at HDFC standard life also offer you unmatched support with various training programmes to help you excel in your endeavour.

Financial Consultants are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Company has certain criteria to recruit these Financial Consultants.the steps are as follows.

1.He should be at least 12th passed 2.He should complete IRDA training.

3.He should clear the IRDA exam.

4.He should through successfully the exam and training.

2.EXCELLENT OPPORTUNITY Join HDFC standard Life Insurance as a Financial Consultant and earn a rewarding career Flexible work timings- you can work whenever you like. You can work full-time or parttime,depending on your convenience.

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

Zero investment – there is no start-up capital required.Be your own boss with flexible working environment,unlimited earning potential and opportunities to be part of a world class sales team.

Attractive Remuneration- company offers excellent commissions, award and rewards for the performers. You have unlimited earning potential. Commission structure is pretty handsome and is 1540% and renewal commission of 5% second year onwards till the policy is in force.

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

Documents required 8 Photograph Age proof (Passport, Birth certificate, college leaving certificate,Driving License) Address proof Education proof Copy of PAN Card duely singed Cancelled Cheque of self A candidate needs to bring a DD of 925/- in case of offline training and Rs.825/- in case of online training towards HDFC SLIC LID payable at Mumbai.

3.RECRUITMENT PROCESS OF FCs

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4.Benefits to FCs Financial Benefits Commission on insurance of every policy. Commission directly credited to bank account of FCs within 15 days. These commission varies from 7.5-40/- according to plan .

BASIC COMMISSION 92

First year commission payable on regular premium conventional issued on or after 21st march 2007 1st year commission 40% 40% 40% 25% 25% 7.5%

Name of the Plan Endowment Assurance Plan Money Back Plan Children’s Plan Term Assurance Plan Lone Cover Term Assurance Plan Personal Pension Plan RENEWAL COMMISSION

Renewal commission would be paid from the 2nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans.

Name of the Plan Endowment Assurance Plan Money Back Plan Children’s Plan Lone Cover Term Assurance Plan Term Assurance Plan Personal Pension Plan

Renewal commission 2nd year onwards 5% 5% 5% 5% 5% 2%

BOUNS COMMISSION Bonus commission would be payable on the first year premium received and adjusted on the regular premium policies under the following plans, 1.Endowment Assurance Plan 2.Money Back Plan 3.Children’s Plan 4.Term Assurance Plan 5.Lone Cover Term Assurance Plan

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Bouns commission is not payable on the single premium plans and on the policies issued under the personal pension plan and all Unit linked plan. Bouns commission rate would depend on financial consultants crossing the minimum RNEP (Received Net Effective Premium) within one year.

QUALITIES THAT HDFC SLIC DESIRED IN A FINANCIAL CONSULTANT 1. PERSONAL INTEGRITY 2. A CLEAR LIABILITY AND RESPONSIBILITY TO LEAD 3. A STRONG DRIVE TO ACHIEVE AND TO EXCEL 4. A ABILITY TO COMMUNICATE EFFECTIVELY WHY FINANCIAL CONSULTANT: REASONS BEHIND THE SUCCESS: Being an HDFC SLIC financial consultant can be one of the most rewarding careers one will find. It is also hard because as an FC you contribute in the beginning to new business for the company, offer world- class pre and post sales services to the clients with the support of the organization. An FC means much more than a salesman or saleswomen, HDFC SLIC recognizes its FC as the ambassadors of the organization in the market place and consider the FC force will be the biggest differentiating factor in the coming years. That is why, they take a lot of care in recruiting and developing their FC force so that they can maintain their standard of quality in service and salesmanship.

The competition and the customer awareness have forced the times to be knowledge oriented market place. Appreciating the same. HDFC SLIC strive to get people with a reasonably good graduation background as their FC. They also acknowledge and recognize prior sales experience of the person at the time of recruitment at HDFC SLIC , your hard work pays off in the form of commission and recognition. At HDFC SLIC , mentor provide scientific , methodical , and world class training in all aspects of insurance sales, product information as well as selling skills programs. After the initial 100 94

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

The success that HDFC SLIC celebrates with pride in the organization and the culture that grooms as well as its demands. It is a culture that:  Gives you room to achieve, to grow and to seek new opportunities.  Believes opportunities will come from clients needs. All that is needed to do is be alert as people first and professional later. One good man says “the people make the company. The company is people. All we are delivering is a piece of paper and promise. It is the people who have to believe in it deeply”  Seeks to be most innovative, the most tenacious in opening new markets and the most creative in developing new products and offering state-of-the-art service to clients, brokers and agents around the world.  In the new millennium takes on e-commerce and technology as high priority with intensified resource devoted to “the new technology” and internet based technology.  If you are looking for a profession that allows you to value your independence turn to HDFC SLIC. Being an FC allows to stay independent, financially as well as in term of working hours.

It gives a unique opportunity to positively change people’s lives by ensuring that they secure their own as well as their family future.

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SWOT ANALYSIS OF HDFC SLIC STRENGTHS: HDFC SL’s strengths are many, to mention a few:

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

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

c) The mass markets handled through a chain of financial consultants usage closer to the individual.

It has very strong distribution network.

d) Its pool of competencies : mutual funds, sum assured,etc e) Ability to understand customer's business and offer right technology. f) Long standing relationship with customers. g)Pan India support & service infrastructure. h)Best-value-for-money offerings.

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WEAKNESSES:

a)

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

b)

Always emphasizes on numbers and fast results.

c)

After sales service.

d)

Less promotional campaigns.

OPPORTUNITIES:

a)

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

b)

Increasing consumer awareness about Insurance and its use.

c)

Tremendous untapped potential of Insurance products in India.

d)

Increasing competition.

e)

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

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

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CHAPTER - 7 SUGGESTION & RECOMMENDATION

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SUGGESTION & RECOMMENDATION MARKETING SUPPORT: More marketing support is required to create awareness in the market about the policies of the company as done by the close competitors. It was observes that people are really very conscious about the advertisement run by the company , and it can affect the sales of the company. While appointing agent this problem was faces as they questioned about the less marketing support by the company.

GOOD ATTRACTVE BROCHURES: Good attractive brochures are required to have a good impact on the customer because once the policy is communicated by the agent to the customer the broacher remains the key representative of the company. Hence agents requires good more attractive broachers.

MORE NUMBER OF POLICIES: It .was observed that if a company have more number of policies designed to cater the specific need of people then it will have a different impact on people. HDFC SLIC has lot of options available to cater the needs of different segments but if they can provide the policies under the specific name it would be very beneficial in sales promotion. Company also needs to concentrate on the competitors to have some good policies to beat the close competitors.

SERVICE SATISFACTION: Service satisfaction is very important in the service industry and HDFC as a group has a good name in rendering quality services but due to some loopholes in some branches the services gets affected and hence has have wrong impact on customer mind about the whole group hence service has to be given the utmost importance to create goodwill in the market.

CONTINUOUS UP GRADATION: A financial consultant wants a continuous up gradation about the policies of the company. They should be continuously upgraded as HDFC SLIC does and this point should be highlighted while offering the agency.

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

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Fears relating to thefts, ailments, death could be addressed through ‘sensitive’ communication 99

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Products designed to appeal women to improve her “self worth”.

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Money getting blocked:

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Fears relating to claims:

Promote it as a long- term commitment.

Need to promote “trust”. Demonstrating claim testimonials,

positioning as “worry free”.

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Low returns: Reposition insurance as a risk cover, security instrument rather than a financial investment.

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Lack of understanding: Training of Channels

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To provide quality advice on products best suited

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Lack of Knowledge: Ease of Process, simplifying the product, procedural aspects

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Need to promote the quality of awareness

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The benefits: Leverage on Risk Protection or Returns oriented or both!

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The product: catering to life stages

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

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CHAPTER - 8 LIMITATION

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LIMITATION  Many respondents had to be visited more than once to contact as the person in concern was busy or was some time available.  The reluctance on the part of respondent to give information was yet another limitation faced during the course of study.  Many respondents are unavailable with the given phone number for calling.  Many phone numbers are wrong number which make inconvenient to complete the study.  Many respondents are already attached with different insurance companies, so they not want to talk with us.  Satisfaction level of existing financial consultant is very much less.  Products of the company are less flexible, company have to be more concentrate to make attractive policies or schemes.  Branches of the company are very less in Delhi NCR region as well different region of the country.

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CHAPTER - 9 CONCLUSION

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CONCLUSION Life insurance sector is highly growing finance sector. HDFC SLIC is the private insurance orgnisation Which is developing and growing at fast rate.Because of less advertisement, people are not aware of HDFC-SLIC insurance plans. HDFC Standard life is renowned for transparency and high corporate Governance standards.

Today marketing must be understood not in the old sense of market a sale “telling and selling”- but in the new sense of satisfying customer needs. While selling life insurance one does not sell any tangible product. That’s why it becomes very essential to understand customer needs, which will help to distribute and promote the product effectively and it ill be easy to sell the products. Life insurance is all about selling life, for which one should be very realistic and practical because it’s a matter of a person’s life. Selling of insurance policies is not an easy job it is all about convincing people, winning their confidence and assuring them for a safe future.

HDFC SLIC is most respected private life insurance company. In very short time it won the confidence of people because of its unique features like good services and promising future insurance sector. While working on this project I came to know facts about insurance business, that there is a cut throat competition and every company is trying its best to sell the products. Hence it is required to strengthen the selling chain by employing few people for the company with a desired profile. I have discussed various issued in the project, which should be taken care of while recruiting the financial consultants for the company.

Lastly I would like to conclude by saying quoting the following quote, which signifies the importance of life insurance in ones, life.

“Iron is strong but fire melts it, Man is strong but death is stronger, 104

So survive death through life Insurance”

CHAPTER - 10 BIBLIOGRAPHY

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BIBLIOGRAPHY THE DATA HAS BEEN COLLECTED FROM THE FOLLOWING SOURCES SEARCH ENGINES: WWW.GOOGLE.COM WED SITES: WWW.HDFCINSURANCE.COM WWW.IRDAINDIA.ORG VARIOUSE BOOKS/ BROUCHERS PRODUCT MANUAL DATA FROM COMPANY

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WORD OF THANKS

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

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

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

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