Akancha Gupta Project

8/7/2019 Akancha Gupta Project

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COLLEGE OF SCIENCE &ENGINEERING

AMBABAI, JHANSI (U.P.)

PROJ

ECT REPORTON

“DETAILED STUDY OF PRODUCT

AND RECRUITMENT STRATEGIES OF FCs IN HDFC SLIC”

AT

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

Report Submitted for the Partial Fulfillment of the Master of

Business Administration, Two Year Degree Programme from

gautambudh Technical University, Lucknow

(2008 – 2010)

Under the valuable guidanceMR. ABHISHEK MISHRA(SDM)

Submitted to: Submitted by:

Manoj kumar sharma Akancha gupta

Head Department of Business Administration MBA 3rd SEM

Roll no- 914570002 C.S.E., Jhansi

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DECLARATION

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DECLARATION

I hereby declare that this project report entitled “

DETAILED STUDY OF PRODUCT AND RECRUITMENT

STRATEGIES OF FCs IN HDFC SLIC” held at Jhansi , is the

result of Original work Carried out by me during 42 Days.

(Finance) in intensive study of the field, for the award of the

Degree of MASTER’S OF BUSINESS ADMINISTRATION.

This Report has not been copied from anywhere, up to the

best of my belief and knowledge. It has not been submitted

anywhere else for Award of any other Degree/diploma.

Akancha Gupta

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ACKNOWLEDGME

NT

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ACKNOWLEDGEMNT

It is my proud privilege to express

my sincere gratitude to all those who

helped me directly or indirectly in

completion of this project report.

I am greatly indebted to PROF. manoj

kumar sharma (Head of master of Business

administration) for their support, guidance

and valuable suggestions by which this

work has been completed effectively and

efficiently . These all contributions are of

immense value.

I owe thanks to Mr. Abhishek mishra

(sales develop manager ) for providing

the required data to complete this project.

Without which it is not possible to

complete the project.

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Last but not least we are indebted to

those entire people who indirectly

contributed and whom this work should

not have been possible.Endeavour has

been made to make the project error free

yet I apologies for the mi

Akancha

Gupta

VISION STATEMENT

“The most successful and admired life insurance

company, which means that we are the most trusted

company, the easiest to deal with, offer the vest values for

money, and easiest the standards in the industry, In short, “

Them most obvious choice for all. ”

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EXECUTIVE SUMMARY

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02EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector hasthe maximum growth and potential as compared to the other sectors.

Insurance has the maximum growth rate of 70-80% while as FMCG sector

has maximum 12-15% of growth rate. The growth potential attracts

individuals to enter this sector and HDFC Standard Life Insurance Company

Ltd has given me the opportunity to work and get experience in highly

competitive and enhancing sector.

The success story of good market share of different market organizations

depends upon the availability of the product and services near to the

customer, which can be distributed through a distribution channel. In

insurance sector, distribution channel includes only agents or agency holders

of the company. If companies like LIC, RELIANCE LIFE INSURANCE,

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TATA AIG, MAX etc have adequate agents in the market they can capture

big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which

policies and benefits of the company can be explained to the customers. Anagent is a primary source for procurement of insurance business and as such

his role is the corner stone for building a solid edifice of any life insurance

organization. To effect a good quality of life insurance sale, an agent must

be equipped with technical aspects of insurance knowledge, he must possess

analytical ability to analyze human needs, he must be abreast with up to date

knowledge of merits or demerits of other instruments of investment

available in the financial market, he must be endowed with a burning desire

of social service and over and above all this, he must possess and develop an

undeterred determination to succeed as a Life Insurance Salesman. In short

he must be an agent with professional approach in life insurancesalesmanship

Literature Review10



Literature Review

Prof. T. N. Ramakumar IBS kochiThe main aims of the investor is to minimize the risk involved in investment & maximize

return and today there are number of options available to investor like Post office

investment, bank deposit, Real estate, debentures, Government securities, stock market,insurance & gold etc. Among these, Mutual Fund & ULIP introduced by the insurance

companies are the two options which require less capital & give the benefit of

Professional Management & suitable for all especially to the persons who do not have

time to watch the market regularly.HDFC Mutual Fund is one of India's largest brokerage and securities distribution

house in India. It is considered to be one of the leading investment broking houses

catering to the needs of both institutional and non-institutional investor categories with

presence all over the country through franchisees and co-coordinators.

Kulwinder Singh Punjab Technical University

Risk and uncertainties are part of life’s great adventure; Accidents, Illness, Theft & Natural Calamities they all are pillars of this world. To overcome these risks and mishaps

this describes the policies and schemes of HDFC SLIC and ICICI Pru Life Insurance

Company. The way these companies provide different benefits to the policyholder.Insurances Corporative venture where risk and uncertainties are shared by many. Now

days a lot is being done to create awareness among the Insuring Public about the

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from more than 400 companies, making it the largest such study in India. Andonly 50 companies made it to the Best Companies to Work list!

Fc Recruitment Literature Review

Muratbekova-Touron (2008)Staffing is one of the main functions on Human Resource Management, refer toInternational Human Resource Management perspective, staffing will be more important

on the managing by the headquartered company to their subsidiaries in order to gain

more competitive advantage for them. As a company want to achieve the mind of globalization, they must choose a suitable staffing approach in order to doing business

successfully not only in the domestic also in the international environment. Maral

Muratbekova-Touron (2008) stated that “One of the main issues facing the developmentof the global companies has always been to find the right balance between the local

autonomy between subsidiaries and the control of the corporate headquarters.”, it related

to how the company recruit and select their staffs in their subsidiaries. In the present

paper will concentrate on the international staffing approaches in global companies, andthere has four different approaches to managing and staffing their international

subsidiaries. The following literature reviews will attempt to explain that four approaches

and point out what is the advantage and disadvantage of each approach in theinternationalization process of the company.

In Ms. Marcia D Campbell is currently the Group Operations Director in the

Standard Life group and is responsible for Group Operations

today’s corporate and competitive world, I find that insurance sector has the

maximum growth and potential as compared to the other sectors. Insurance has

the maximum growth rate of 70-80% while as FMCG sector has maximum 12-

15% of growth rate. The growth potential attracts individuals to enter this sector andHDFC Standard Life Insurance Company Ltd has given me the opportunity to work and

get experience in highly competitive and enhancing sector

. The success story of good market share of different market organizations depends upon

the availability of the product and services near to the customer, which can be distributedthrough a distribution channel. In insurance sector, distribution channel includes only

agents or agency holders of the company. If companies like LIC, RELIANCE LIFE

INSURANCE, TATA AIG, MAX etc have adequate agents in the market they cancapture big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies and

benefits of the company can be explained to the customers. An agent is a primary sourcefor procurement of insurance business and as such his role is the corner stone for building

a solid edifice of any life insurance organization. To effect a good quality of life

insurance sale, an agent must be equipped with technical aspects of insurance knowledge,

he must possess analytical ability to analyze human needs, he must be abreast with up todate knowledge of merits or demerits of other instruments.

HDFC Standard Life Insurance Company Ltd. offers a range of individual and groupinsurance solutions. It is a joint venture between Housing Development Finance

Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and one of

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the subsidiaries of Standard Life plc, leading providers of financial services in the UnitedKingdom. The Standard Life group has been looking after the financial needs of

customers for over 180 years. It is a leading pension’s provider in the UK. Both the

promoters are well known in their respective fields of activities.

Mr. Deepak S Parekh is the Chairman of the Company. He is also the ExecutiveChairman of Housing Development Finance Corporation Limited (HDFC Limited). He

joined HDFC Limited in a senior management position in 1978. He was inducted as awhole-time director of HDFC Limited in 1985 and was appointed as its Executive

Chairman in 1993. He is the Chief Executive Officer of HDFC Limited.

Mr. Parekh is a Fellow of the Institute of Chartered Accountants

Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000.

He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in1981 and became an Executive Director in 1993. He was appointed as its Managing

Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered

Accountants of India and a member of the Michigan Association of Certified PublicAccountant.

Mr. Alexander M Crombie joined the Board of Directors of the Company in April,

2002. He has been with the Standard Life Group for 34 years holding various senior

management positions. He was appointed as the Group Chief Executive of the StandardLife Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in

Scotland

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CONTENTS

CONTENTS

1. Introduction

a) Need for study

b) Organization Information

c) Company profile

2. Objective s

3. Product of HDFCSLIC

4. IRDA (Insurance Regulatory and Development Authority

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5. Descriptive work

6. Research Methodology

a) Data Collection

b) Sample Size

c) Research design

7. Process of Recruitment of Financial Consultant

8. Data Analysis

9. Finding & Suggestion10. Limitation

11. Conclusion

12. Bibliography

13. Annexure

a) Questionnaire

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INTRODUCTION

01 INTRODUCTION

During my summer training in the Housing Development

financeCorporation standard life insurance company limited(HDFCSL). I have gotten the work of sale polices, recruitmentof financial consultant or financial advisor, or insuranceagent who becomes the base of any insurance company. Inthe company my department was Channel DevelopmentDepartment whose work is to recruit financial consultant andI was working as a recruitment consultant manager. The

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main focus area of the company is to recruit more and morefinancial consultant who brings business in the company.Indeed the work of financial consultant is very significantand gives more and more distribution of the policy of the

insurance to the company thorough selling the policies. Themain motive of this project is distribution enhancement.HDFCSL is one of India’s leading private insurancecompanies.It offers both individual and group insurance solution. It is a

joint venture between HDFC and a group of company of Standard Life. I have chosen insurance sector as the placefor summer training because in these days this sector is inboom and it will never go down. All people invest theirmoney in insurance and get more benefited. In the sector

the work of marketing is more challenging then the othersector because there is 23 insurance companies in themarket who are giving competition to each other and thework of convince people for investment in respectivecompany is a challenging work and success in the sectorproves that the respective person is a good marketer. Todayinsurance sector India is on boom because all people want toinvest. Those who don’t know about investment in sharemarket and don’t want to invest in mutual funds they invest

in insurance sector. Insurance sector gives them investmentplus risk cover. Those who don’t want to take risk in theinvestment go to insurance sector. It also gives income taxbenefits to the peoples. Insurance company are nowlaunching ULIP plan and gives chance to the investor tochoose their investment pattern according to their fundinvestment table (this table is included in the productinformation of the product of HDFC Standard life). Thisfund investment tells us that how much the investorwant to take risk. Generally in the ULIP plan, the thesisis that “The more you risk the more you have profit..

NEED OF THE STUDY

The project was an attempt to explore the “DistributionEnhancement of insurance policy of HDFCSL” in JHANSI. Theproject was started on 10th June, after knowing all therelevant information about the company insurance product

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and policies and its competitor’s insurance products inaccordance with the prescribed schedule mentioned bymanagement of HDFCSL.

The project started in Noida region covering all the local

market. In this process I meet 90 persons to recruit them asa financial consultant. I have tried to recruit FC fromtelephone calling, and natural market. During my work Ifound the perception of the people about insurance, whatthey desire from it, and if they will work as financialconsultant than what they want from the organization. Whatthe organization should do for the recruitment of more andmore FC and should give more facilities to the,reimbursement, and time to time gift voucher, and weaklytraining or meeting with FC to encourage them.

SCOPE OF STUDY

During the summer training I have done my work throughtelephone calling, natural market, and contact person havinggone to their home. In the entire work I have contactedperson who is student, person who is working in theorganization, visit colleges, study centre Property dealersand lowers.I found that most of person can join insurance company for

saving taxes, unlimited earning, life time earning with littleeffort, which will give him back support as a HEAD of thefamily in the diverse situation.

This project will help to understand the current marketscenario and marketing in stiff competition. Being a studentof management I can draw the relevant conclusion from themarket survey and give the appropriate suggestion to theorganization. The company can take decision according tothe suggestions and it will provide better experience to the

students for their bright carrier. My project will provide helpin these matters which are thus:-Analyze the people perception about HDFCSL. To enhancethe distribution channel in the selling of insurance policies.to find out the competitive edge of the company over thecompetitors.

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OrganizationInformation

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03. Organization Information

ABOUT HDFSLIC

HDFCSLIC stands for Housing Development Financecorporation standard life insurance company. It isincorporated in 1977 as a public limited company with thespecialization in provision of housing finance to individuals’cooperative societies and the corporate sector. Onesignificant matter about the HDFC is that it is first privatesector retail housing finance company and it is listed on bothBSE and NSE. Its market capitalization in June 2002.Standard life insurance is founded in 1825. Standard life wasreincorporated as a mutual assurance company in 1925. It’slargest mutual life insurance company in Europe.For the joint venture between HDFC and SLIC, the discussioncommenced in January 1995 and the agreement signed inOctober 1995.Further joint venture agreement renewed in October 1998.In January 2000 the life insurance project teem establishedin Mumbai. At last the company officially incorporated in14th August 2000. It is the matter of great happiness for

HDFCSLIC is that it is the first private sector life insurancecompany to be granted a certificate of registration in 23rdOctober, 2000. Today 76% shareholding in the hand of HDFCand Standard life has 24% shareholding in this joint venture.

ORGANIZATIONAL GOALS

Develop close relationship with individual households

Maintain its position as a premier housing finance institution

Transform ideas into viable and creative solutions

Provide consistently high returns to share holders

To grow through diversification by leveraging off the existing client

base

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COMPANY PROFILE

When we talk about company profile then HDFC standard lifeinsurance company is targeting insurance sector. It islaunching various type of insurance plan and product whichis enticing people to buy its plan. As a insurance company itfocus mainly in the recruitment of financial consultant andthe whole company based on it because the main aim of company is to get business and sell lots number of policyand this work is done by financial consultant.HDFC Standard Life Vision and Values Vision of HDFCSL

The most successful and admired life insurance company,which mean that we are the most trusted company, theeasiest to deal with, offer the best value for money, and setthe standards in the industry. In short, “The most obviouschoice for all”For retention in the market and highest market share, weneed trust of our customer. The customer should trust onour policies, services, employs and they should be friendlywith us. It wants to live in the eye and heart of the customer.It wants to give them the easiest deal so that they can be

understood the terms and policies. As we know that profit isthe main aim of any business but it think not only about hisprofit but also profit of the customer. It wants to be thechoice of all people on the basis of trust of customer,delivering high value to the customer, and deliver of bestvalue of the money.Value that will be observed while we work with HDFCSL

1. IntegrityHDFCSL believes in honest and trustfulness in every action.

Transparency in dealing with customers. It is stick toprinciples irrespective of outcome.When we work in HDFCSL then we observed that its rulesand activity of every person in the organization is just andfair to every one.Integrity is the bedrock on which the company and theexpectations of the customers and employees are built.Integrity gives inner feeling to both customer and the

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employees to work with it. It establishes the credibility of theperson, defines the character and empowers one to do

justice to the job.It enables confidence and trust, achieving transparency and

laying a strong foundation for a binding relationship. Itguide principle for all walks of life.

2.InnovationIt is the process of building a store house of treasuresthrough experiences.Lots of product is going to be launched by the competitors.So it is very important to look every product and processthrough fresh eyes everyday. It is the significant part of thebusiness that attracts customer. Innovation is essential toexceed customer expectation and maximize customerretention because it is the sector of investment so you needto fulfill the customer expectation which help you to retaincustomer.Innovation helps to achieve competitive advantage. Itpromotes growth and upgrade standards in the industry. Itfosters creativity amongst employees and partners. It opensa world of new possibilities because it brings new conceptwhich helps to entice the customer.

3. Customer centric

Customer becomes the main properties of any organization.Whatever work done by the organization runs around theexpectations of the customer.Customer becomes centre point of the organization and themain focus of the organization becomes to understand hisexpectations by keeping him as the centre point. It gives

more focus on customer activity and saying. It tries tounderstand customer needs and deliver solutions. As weknow that the market is changed. Lots of competitors is herewho search chance to increase their market share andentice your customer so customer interest become alwayssupreme.

4. People Care

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Genuinely try to understand those people who are workingwith HDFCSL. It guides their development through trainingand support. It helps them to develop their requisite their

skills so that they can reach their true potential.It tries to know them on a personal front because it works asa performance appraisal. It try to create an environment of trust and openness so that all people who areworking here behave friendly and helps to each otherbecause team work is most important for gettingsuccess and give respect for the time of others.People are the most valuable assets of the company so ittries to motivate individual to give his/her best. It wants toestablish a valuable relationship with them to create a joyfulworking environment. The most important thing is that ittries to provide job satisfaction for their people.

5.Team work “One for all and all for one”

Here whole team takes the ownership of the deliverables. Itconsults all involved in the work and try to understand theiropinion and then arrive ant a common objective. There is acooperation and support across departmental boundaries. It

identifies strengths and weaknesses accordingly allocateresponsibility to achieve common objectives.

Team work helps everyone to achieve more. it adds joy atwork place which add interest in the work and new staminain the work. It generates synergy and provides a focusedapproach. When an idea or activity performed in a group, ithas greater acceptability. “Team work proves one for all andall for one”.

5.Joy and simplicity

It believes in joy and simplicity so that people in theorganization will be more dedicated towards work and theywill give more business to the organization. Work with joyand simplicity brings creativity and new imagination whichalso brings new innovative ideas that promotecompetitive advantage to the organization.

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MISSION OF HDFSLIC

We aim to be the top new life insurance company in the

market. This does not just mean being the largest or the mostproductive company in the market, rather it is a combinationof several things like- Customer service of the highest orderValue for money for customersProfessionalism in carrying out businessInnovative products to cater to different needs of differentcustomersUse of technology to improve service standardsIncreasing market share

HDFC GROUP COMPANIES~

HDFC LimitedHDFC BankHDFC Asset Management Co. LimitedHDFC Securities LimitedHDFC Standard Life Insurance Company

Intel net GlobalCIBIL – Credit Information Bureau Investigation LtdHDFC Chubb General Insuranc

SUBSIDIARY AND ASSOCIATE COMPANIES OF HDFC

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HDFC Bank

HDFC Mutual Fund

HDFC Standard life Insurance company

HDFC Reality

HDFC Chubb General Insurance company ltd.

Intel net Global Services Ltd.

OTHER COMPANIES CO-PROMOTED BY HDFC

HDFC trustee company Ltd.

GRUH Finance Ltd.

HDFC Developers Ltd.

HDFC Venture Capital Ltd.

HDFC Ventures Trustee Company ltd.

HDFC Investments ltd.

HDFC Holdings Ltd.

HDFC Loan services India Pvt. Ltd.

Credit Information Bureau (India) Ltd.

WHAT IS INSURANCE?

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The business of insurance is related to the protection of theeconomic values of assets. Every asset has a value. Theasset would have been created through the efforts of theowner. The asset is valuable to the owner, because he

expects to get some benefit may be an income or in someother form.

It is a benefit because it meets some of his needs. Thebenefit may be an income or in some other form. In the caseof a factory or a cow, the product generated by it is sold andincome is generated. In the case of a motor car, it providescomfort and convenience in transportation. There is nodirect income. Both are assets and provide benefits.Every asset is expected to last for a certain period of time

during which it will period of time during which it will providethe benefits. After that, the benefit may not be available.

There is a life-time for a machine in a factory or a cow or amotor car. None of them will last for ever. The owneris aware of this and he can so manage his affairs thatby the end of that period or lifetime, a substitute ismade available. Thus, he makes sure that the benefit is notlost. However, the asset may get lost earlier. An accident orsome other unfortunate event may destroy it or make it

incapable of giving the benefits.

We can classify insurance in these terms:-

It is a system by which the losses suffered by a few arespread over many, exposed to similar risks.Insurance is a protection against financial loss arising on the

happening of an unexpected event. It is essential that: The calamity is either natural or unexpected The insured person does not gain out of this arrangement

SCOPE OF INSURANCE

We all know that assets are insured, because they are likelyto be destroyed or made nonfunctional before the expected

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When we talk about objective of the insurance sector we candivide it into three categories which are thus.BroadIncreased coverage of the population

SpecificCustomer has a wider choice & range of productsService standards to customerEconomicSavings mobilization

In this objective part the first part deals with its marketshare because it deals with all people who live in India and ithas a broad market potential.So the main motto is to increase and entice more and more

people for insurance.In the second part it deals with innovative plans andschemes for the wider choice of people and different rangeof products of its competitors. It tries to serve its customerwith significant way.HDFCSL invest the investment in the share market throughthe unit link plane and get and give significant return fromthe markets and satisfy their customer.

“We are All at risk"A little mouse living on a farm was looking through a crack inthe wall one day and saw the farmer and his wife opening apackage.

The mouse was intrigued by what food the package maycontain.He was aghast to discover that it was a mousetrap.

The mouse ran to the farmyard warning everyone"there is a mouse trap in the house, there is a mouse trap inthe house."

The chicken raised his head and said "Mr. Mouse, I can tellyou this trap is a grave concern to you, but it has noconsequence to me and I cannot be bothered with it.

"The mouse turned to the pig "I am so very sorry Mr. Mouse,but the trap is no concern of mine either." The mouse thenturned to the goats, "sounds like you have a problem Mr.Mouse, but not one that concerns me."

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The mouse returned to the house, head down and ejectedthat no one would help him or was concerned about hisdilemma. He knew he had to face the trap on his own.

That night the sound of a trap catching its prey was heard

throughout the house. The farmer's wife rushed to see whatwas caught.In the darkness she could not see that it was a venomoussnake who's tail the trap had caught. The snake bit thefarmers wife. The wife caught a bad fever and the farmerknew the best way to treat a fever was with chicken soup.

The farmer took his hatchet to the farmyard to get the soupsmain ingredient. The wife got sicker and friends andneighbors came by to take turns sitting with her round theclock.

The farmer knew he had to feed them, so he butchered thepig.

The farmer's wife did not get better, in fact she died and somany friends and family came to her funeral that the farmerhad to slaughter the goats to feed all of them.So the next time we hear that one of our team-mates isfacing a problem and think it does not concern or affect us,Let us remember that when anyone of us is in trouble, Weare All at risk.

AWARDS AND ACCOLADE OF HDFCSL AWARDSBest Companies to Work for in India in 2010

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HDFC Standard Life has been adjudged one of the Best

Companies to Work for in India in 2010. The company participated inthe Great Places to Work® study for the first time and ranked first inthe insurance category. It ranked 34th on the Top 50 BestCompanies to Work for, in India 2010 list. The company was alsoawarded for its unique employee initiative - Mission –in-Geniusnational quiz. The study has shown that HDFC Standard Lifeconscientiously develops employee talent programmes to keepengaging and motivating its employees. The company provides someunique platforms such as 'Mission in Genius' national quiz. Themanagement is accessible to all at all times and sincerely seeks

feedback from its employees through programmes such as 'Sparsh',the study said.

The Best Companies to Work in India is a study conducted by theGreat Place to Work® Institute, India in partnership with TheEconomic Times. The 2010 edition is the seventh study in India,which received overwhelming response from more than 400companies, making it the largest such study in India. And only 50companies made it to the Best Companies to Work list!

'YoungStar Super' Voted 'Product of the Year 2010'

HDFC Standard Life’s YoungStar Super has been voted ‘Product of the Year 2010’ in the 'Insurance' category by more than 30,000consumers nationwide across 36 markets. YoungStar Super is anunit linked Children Plan with unique benefits such as bumper

additions, double and triple benefits, attractive allocations rates, andseven different funds.

The consumer study on product innovation in India was conducted byA C Nielsen, the leading global research firm. Entries were acceptedfrom products that demonstrate innovation in their productfunction, design, packaging or process or any other specifiedform. Entries were then filtered by a jury of distinguished

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industry professionals to ensure that the products meet theinnovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an InternationallyRecognised Standard that celebrates and rewards the best

innovations in consumer products and services. The Product of theYear is selected through an independent consumer survey across thecountry in 26 countries for the past 20 years.

APRAIL 200ADFEST 2007 – 3 AwardsOur advertising has helped create high awareness for ourbrand and has bagged 2 silver and 1 bronze awards at theADFEST 2007

National Awards organized by Advertising AgenciesAssociation of India (AAAI, the premier advertising body inIndia).

The 3 awards that our ads won are notable for a number of reasons:

The ADFEST 2007 is the biggest national awards festival inthe marketing and advertising field.

The 3 awards are the highest won by any single brand in theFinancial Services business (including Banking, MF,Insurance other Financial Services).

The 2 silvers were won in a category where the gold was notawarded to any brand. Thus the silver was the best that anybrand could have got.Our brand topped radio as a medium across all brands -across all industries.

b. March 20074Ps Power Brand 2007

HDFC Standard Life was selected as '4Ps Power Brand 2007',for being one of ‘India’s 25 Best Startup Companies’ in anexclusive survey conducted byICMR (Indian Council of Market Research) and 4Ps - BusinessandMarketing (a Business and Marketing magazine published byPlan man Media). The list of companies was prepared basedon innovative and new concepts brought about to serve the

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Indian consumers. The research on the 25 best startups wasbased upon the number of years since the company hasbeen established vis-a-vis the growth of the company.

c. August 20064Ps Power Brand 2006HDFC Standard Life has been as '4Ps Power Brand 2006', forbeing one of India's Top 25 5'Most Innovative Companies' inan exclusive survey conducted by ICMR (Indian Council of Market Research) and 4Ps -Business and Marketing (a Business and Marketing magazinepublished by Plan man Media). The survey highlighted 25companies that have made India think differently andradically through their Business and Marketing practices.

HDFC Standard Life was the only company selected from theinsurance domain. Besides us, the list included giants like (inno particular order) HLL, Microsoft, Nokia, LG, Samsung, IBM,HP, ITC Group, HeroHonda, Bajaj Auto, Ranbaxy, ICICI Bank, SBI Bank, Bennett,Coleman & Co. Ltd., Tata Group, Kingfisher Airlines, Bharti

Televentures, Pantaloon, General Electric, HPCL, Maruti, AnilDhirubhai Group, Reliance Industries and CNBC TV 18.

ACCOLADE

a. March, 2008‘Unit Linked Savings Plan’ Advertisement Tops Mint Best TVAdsSurveyMint 24/03/2008

The Unit Linked Savings Plan advertisement of HDFCStandard Life, one of the leading private insurancecompanies in India, has topped Mint’s Top TelevisionAdvertisement survey conducted, for February 2008. HDFCStandard Life’s Unit Linked Savings Plan advertisement wasranked 4th in terms of a combined score of ad awarenessand brand recall and 3rd in terms of ad diagnostic scores(likeability, enjoyment, believability, and claim). Therespondents were between 18 and 40 years. Mint’s exclusivereport, ‘New voices in a makeover’ outlines the survey indetail.

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b. January20084Ps Business and Marketing's recent issue covers '60Glorious Advertising & Marketing Moments' over the last 60years in India.

Issue dated 21/12/2007 to 03/01/2008 The 50's have been named as the era of setting up newinstitutions with Air India Maharaja titled as the first Indianbrand mascot, Surf being India's first detergentpowder. The 60's saw the maturing of brand punchlines and the beginning of jingles, with 'MRFMuscleman', 'Utterly Butterly Delicious Amul'; the 70'sheralded the age of professionalism with the Liril girl at thewaterfall; the 80's saw many iconic Indian brands beinglaunched with

Bombay Dyeing, Maggi Noodles, Lalitaji endorsing Surf andothers; since1991 where the massive inflow of brands into India, initiateda veritable deluge of marketing and positioning strategies,with the famous Ericsson commercial, Cadbury's 'Kya SwadHai Zindagi Mein' and many others.In the new millennium, ideas that created an impact includethe 'Incredible India' campaign, Hutch campaign with thelittle pup 'Chika', Indianised version of coke commercials

featuring Aamir Khan, among many others. In this featurethey have made a special mention on Insurance advertisingbecoming 'happier' as one of those glorious moments.Earlier, insurance advertisements showed signs of negativityand focused on just protection. It mentions HDFC StandardLife to be "....one of the first private insurers to break the iceusing the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition, which was then,followed by others including ICCI Prudential, thus giving usthe credit of bringing up one such glorious advertising andmarketing moment in last 60 years!

c. December 2007A survey of the best ads on television in November in whichHDFCStandard Life pension plans, topped the ad diagnostics andcame in eighth on ad reach - Mint 24/12/2007

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Our pension advertising was ranked first in terms of addiagnostic scores (including likeability, credibility,enjoyment).Especially important as respondents were between 18 and

40 yrs and therefore our target prospects.And was ranked 8th in terms of a combined score of adawareness and brand recall.Our advertising started in the last week of November andtherefore has managed to reach audiences quickly,especially since the study was done in November. Given ourmedia spends, our industry and other brands in the ranking,this score is very encouraging.d. December 2007 Column'AGK SPEAK" in Business Standard by A.G. Krishnamurthy(AGK), an advertising industry veteran, where he has spoken

highly about our pension commercial.Business Standard 21/12/2007d. AGKSPEAK“WHAT I’VE LIKED - Straight to the heart!I have often said that nothing makes an ad work likeempathy. Finda connect and you have done it! That is exactly what theHDFC Pension Plans’ television commercial, airing on mostchannels, currently achieves.Even though the target audience might not have been me

and my wife but rather, a younger couple who should beinvesting their earnings wisely, we both felt an instantbonding with the couple on screen!

The casting has been done so superbly that I am sure thatthe reaction must be common across the country. Althoughthe couple expresses sentiments that might seem alien tothe children of today, they are very much a part of oursyntax. Admittedly, today’s girls are far more independentand wouldn’t dream of total dependence on any one, it wasnot quite so just a generation ago. It was the norm rather,for a husband to be totally responsible for his wife’s comfortand yes, statements like “Did you ask for my hand to put methrough all this” strike a chord. So even if my daughter’sgeneration is reminded of their parents when this ad airs, Iam sure it still does its job by getting them to plan for alight-heated retirement depicted by the ever-so identifiableon screen pair.”e. September 2007

35



JusConsult’s Ad Box Office Monthly Monitor (featured inEconomic

Times)- HDFC Standard Life was ranked 6th amongst ‘The 10most

effective ads’ in September 2007. It moved up from 56th inAugust 2007. JuxtConsult’s Ad Box Office is India’s biggest monthlymonitor of most effective television ads amongst urbanconsumers. The ranking was based on the total effectivenessof the ad in connecting the brand with the consumers.

JuxtConsult’s Ad Box Office Monthly Monitor (featured inEconomic

Times)- – HDFC Standard Life’s ad slogan ‘Sar Utha Ke Jiyo’was ranked 10th in the Top 10 Top-of-mind ad slogans in

September, 2007 (The ranking was based on how much ourad slogan recalled ‘top of mind’ in the daily ad clutter.)f. december2006-January 2007HDFC Standard Life was ranked 29th in the most trustedIndian Brands amongst the Top 50 Service Brands of 2006.

This study was conducted by Brand Equity (Economic Timessupplement). HDFC SL moved up 16 places to be positionedat number 29 (was earlier at 45). The highest jumpamongst all service brand

PRODUCT OF HDFCSL

As we know that lots of insurance plan are playing in themarket of different companies. HDCFSL has launchedvarious insurance plans which based on unit link plan. Itinvests the investment of his consumer in bank deposits,Government securities and Bonds, and Equity. The

percentage of these investments in these plans dependsupon the consumer whether he wants to take more risk andmore return or less risk or less return. It has launchedseveral insurance plans which are thus in the table:-

1. Unit link pension plan2. Unit linked pension plus3. Unit linked enhanced life protection II

36



4. Unit linked young star plus II5. Endowment assurance plan6. Children plan7. Money back plan

8. Single premium whole of life plan9. Personal pension plan10. Saving assurance plan11. Assure plan

1. Unit linked Young Star Plus II

As a parent, your priority is your children’s future and beingable to meet their dreams and aspiration. Today, we needmore money for providing a good education, establishing a

professional career or even a modest wedding becausethese are expensive. Costs are increasing fast. Just imaginehow much we need when our children take these importantsteps in life when institute like IIM is increasing their fees foreducation by leaps and bound.

This plan ensures us a bright future for your children. Itmakes your child able to lead a life of respect and dignitywith a secured financial future.

Benefits of this plan

The HDFC unit linked Young star Plus II gives us:Valuable protection to your child in case you are not around.An outstanding investment opportunity by providing achoice of thoroughly researched and selected investments.Regular loyalty units to boost your fund value every year.Flexible benefit combinations and premium paymentoptions.Flexible additional benefit options such as critical illnesscover. Flexible benefit payment preferences- Double and

Triple Benefit.Four steps to your own plan

37



Step1) IN this policy you will continue to pay each year of the policy. You can pay monthly, half-yearly or annually. Theminimum regular premium is Rs. 15,000 per year for annualand half yearly policies. For monthly mode, the minimum

regular premium is Rs 1500 per month.

Step2) we can choose any amount of sum Assured with, aminimum of 5 times your chosen annul regular premium anda maximum of 40 times your chosen annul regular premium.

Step3) it offers a range of valuable protection options tosecure the future for whole family. In this policy thecustomer can choose any one of both which life option(death Benefit) is and life and health option (death benefit +

critical illness benefit). It offers flexible benefit paymentpreference. You can choose one of the following two benefitpayment preferences according to the table.Benefit

TypesBenefitpaymentPreference

Summary of the benefits

DeathBenefit

DoubleBenefit

1.It will pay the sumassured to the beneficiary.

2. Our family need not payany further premiums. itwill pay 100% of all thefuture regular premiums atthe original level towardsthe beneficiary policy as andwhen due, on an annualbasis.3. Any Critical illness cover

38



TripleBenefit

1. It will pay the SumAssured to the beneficiary.2. Our family need not payany further premiums. it

will pay 50% of all thefuture premiums at theoriginal level towards ourpolicy and 50% of thepremiums will be paid to thebeneficiary as and whendue, on an annual basis.3. Any critical illness coverterminates immediately.

CriticalIllnessBenefit

DoubleBenefit

1. We will pay the sum

Assured to the beneficiary.2. our family need not payany further premiums. Itwill pay 100% of all thefuture regular premiums atthe original level towardsyour policy as and whendue, on an annual basis.

TripleBenefit

1. it will pay the sumassured to the beneficiary.2. our family need not payany further premiums it willpay 50% of all the futurepremiums at the original leveltowards your policy as andwhen due, on an annual basis.3. The death benefit cover

terminates immediately.

2. Unit Linked Enhanced Life Protection II

The massage of this policy is “invest in financial security andself respect for you and your family”. In this policy, theinvestment risk in investment portfolio is borne by the

39



policyholder. In our life I try to give the very best to ourfamily and there is no reason why they should not get thevery best in the future too. This plan gives financiallyindependent, even if you are not around.

Benefits of this plan The HDFC Unit Linked Enhanced Life Protection II gives1) Valuable protection to your family in case you are notaround2) Increasing insurance cover every year.3) An outstanding investment opportunity by providing achoice f thoroughly researched and select investment. .4) Flexible premium payment options.Steps regarding this plan

Step1) Choose your regular premium:- this is the premiumyou willcontinue to pay each year of the policy. You can paymonthly, half-yearly or annually. The minimum regularpremium is Rs.15,000 per year or annual and half yearlypolicies. For monthly mode, the minimum regular premiumis Rs 1500 per month.

Step2) Choose your level of protection:- You can choose anyamount of Sum Assured with a. a minimum of term of yourpolicy/2 times your chosen annul regular premium.And b. a maximum of 20 times your chosen annual regularpremium.In this plan in case of your fortunate demise duringthe policy term, we will pay the greater of your currentSum assured (less any withdrawals you had made inthe two years before your claim) and your total fund value toyour family.

3. Unit Linked Pension Plus The massage of this plan is live a life of dignity and self respect. It isdesigned to provide a retirement income for life with thefreedom tomaximize your investment returns. Stride into your goldenyears of

40



retirement with dignity and pride.

Benefits of HDFC Unit Linked Pension Plus This plan is giving you some benefits which will help you inthe oddsituation. The benefits of this plan are thus:-a. an outstanding investment opportunity by providing achoice of thoroughly researched and selected investments.b) Regular loyalty units to boost your fund value every yearc) A post retirement income for lifed) Flexibility to plan your premiums as per your preference.Steps of your own plan

Step1) Choose your retirement age:- In this plan firstly youhave to choose any age you wish to retire at (vesting age),between 50 years and 75 years.

Step2) this is the premium you will continue to pay eachyear to the policy. The minimum regular premium is rs10,000 per year. You can pay monthly (using standinginstructions or ecs mandate), quarterly, half yearly orannually. You may also choose to pay adhoc single premium

Top-up or additional regular premiums depending on thepolicy type you have chosen and your convenience.

4. Unit Linked Pension

The masses of Unit linked Pension is live a life of dignity andself respect. Today we are busy climbing the ladder of success and realizing your dreams.

Today, time is with you. Just take a moment and think. It willmake you able to continue at the same pace.

The HDFC Unit Linked Pension is an insurance policy that isdesigned to provide a retirement income for life with thefreedom tomaximize your investment returns. Stride into yourgolden years of retirement with dignity and pride.Benefits of this plan

The HDFC unit linked pension gives you

41



a) An outstanding investment opportunity by providing achoice of thoroughly researched and selected investments.b) It gives a post retirement income for lifec) Flexibility to plan your retirement date and

d) Freedom to invest premiums as per your preferenceSteps regarding this Plan

Step 1) you can select any age you wish to retire at vestingage, between 50 years and 75 years.

Step2) you can choose either a single premium policy or aregular premium policy For a regular premium policy, youcontinue to pay your chosen premium each year of thepolicy. The minimum regular premium is Rs.15,000 per year.

You can pay monthly (using standing instructions or ecsMandate), quarterly, half yearly or annually.

The minimum premium for a single premium policy isRs.15,000.you may choose to pay adhoc single premium top-up or

additional regularpremiums depending on the policy typeyou have chosen and your convenience.

5.Unit Linked Endowment Plus II

It’s massage is to invest in financial security and self respectfor your and your family in this policy, the investment risk ininvestment portfolio is borne by the policy holder.Benefits of this product

The HDFC unit linked endowment plus II givesa) A valuable protection to your family in case you are notaround.b) An outstanding investment opportunity by providing achoice of the thoroughly Researched and selectedinvestment.c) Flexible additional benefit options such as critical illnesscover.Simple steps for this product

Step1) choose your regular premium:- this is the premiumyou will continue to pay each year of the policy. You can paymonthly, half-yearly or annually.

42



The minimum regular premium is Rs 15,000 per year forannual and half yearly policies. For monthly mode, theminimum regular premium is Rs.1,500 per month.

You may also choose to pay adhoc single premium top-up or

additional regular premiums depending on yourconvenience.

Step2) You can choose any amount of sum Assured with:a minimum of ( the term of your policy/2) times your chosenannual regular premium. A maximum of 40 times yourchosen annual regular premium.

Step3) Choose additional plan benefits:- it offer a range of valuable

protection options to secure the future for your familyLife option - Death BenefitExtra Life option - death benefit + accidental Death benefitLife and health option - Death benefit + critical illnessbenefitExtra life and health option - Death benefit + critical illnessbenefit+ Accidental Death benefit.

Benefit types SummaryBenefit types Summary

Death Benefit

We will pay the greater of yoursumassured (less any withdrawalsyouhave made in the two yearbefore

your claim) and your totalfund valueto your family.

The policy will terminate.

43



Critical illness benefit

We will pay the greater of yoursumassured (less any withdrawalsyou

have made in the two yearbeforeyour claim) and your totalfund valueto your family.


Accidental Death Benefit.

In addition to the deathbenefit, wewill pay a further sum assured

toyour family.


CHOOSE YOUR INVESTMENT FUNDS

The most significant part of the Unit Linked Plan is that

investor can choose the mode of investment. In this plan theinvestment risk in your chosen investment portfolio is borneby the investor. This means that the premiums you pay inthis plan are subject to investment risks associated with thecapital markets. The unit prices of the funds may go up ordown, reflecting changes in the capital markets.So to balance investors level of risk and return, making theright investment choice is very important and you areresponsible for the choices you make.

It has 7 funds that give investor:-a) The potential for higher but more variable returns overthe term of your policy; orb) The more stable returns with lower long-term potential.

Your investment will buy units in any of the following 7 fundsdesigned to meet your risk appetite.

Table of funds are given below:-

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Asset Class

Fund Moneymarket++

BankDeposit+++

Govt.securities Equity Risk &ReturnRating

Fund

Composition

LiquidFund

100% 100% -- - Low

StableManagedFund

0-30% 70-100%

70-100% - Low

SecureManagedFund

0-5% 0-20% 75-100% - Low-Moderate

Defensiv

eManagedFund

0-5% 0-15% 50-85% 15%-

30%

High

BalancedManaged

0-5% 0-15% 20-70% 30%-60%

Veryhigh

EquityManagedFund

0-5% 0-10% 0-40% 60%-100% VeryGrowthFund

0-5% - - 95%-100%

45



+ note on the funds shows will manage the investment ineach fund so that the proportion of each Asset class is

always with the ranges. + + shows Money marketinstruments. It include liquid Mutual Funds, commercialpapers, commercial bills, treasury bills, governmentsecurities having an unexpired maturity up to one year.Bank deposits means deposits issued by any primary dealeror non Banking and banking financial company approved bythe reserve by the reserve bank of India or any other publicFinancial institutions or by Housing Finance Companiesapproved by the National Housing Bank. The pastperformance of any of the funds is not necessarily an

indication of future performance. Unit prices can go up anddown. No fund offers an assured return. The names of thefund it offer under this plan do not, in any way, indicate thequality of the plan, its future prospects or returns.HDFCSL product plan is a Life Stage PlanWe can see its plan is like a LIFE STAGE Plan. According to itthere are four stage of life, young and single stage, JustMarried stage, proud parents and Planning and Retirements.

Stage 1Young and Single stage:-

Figure1It is an important stage where on lays down the foundationof a successful life ahead. It helps in this stage for takingadvantage of the time and power of compounding to ensurethat you build up your dreams. Our needs in this stage ourneeds are save for home and weeding, tax planning andsave for golden years.

46



Stage 2Just Married stage:-

Figure 2Marriage brings about a significant change. New dreams andnew opportunities also bring in additional responsibilities.In this stage our needs are planning for home, save forvacation, and save for our child

Stage 3Proud Parents:-

(Figure 3)Once you have children, your need for life insurance is even

more. In this stage our need will be provide good educationfor children’s, safeguarding family against loan liabilities,and saving for post-retirement.Stage 4Planning for Retirement:-

(Figure 4)In this stage our needs becomes more like as we need moresecure, independent and comfortable life style in ourretirement years.

Life Stage Structure

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HDFCSLIC have divided our whole life into four stages anddescribe above the different needs of our different stage. Itall insurance plan are based upon these states and it tried tofulfill all the requirement of all the need of each stages of lifethrough endowment plan, young star plan , retirement plusplan, and pension plus plan.India's best Ulips (Sunil Dhawan, Outlook Money)January 03,

2008We have toyed with the idea for a long time. Should we rankthe unit-linked insurance plans (Ulips) in the market? Theidea is exciting simply because it has never been done inIndia before.The idea is good because it allows an investor ahandle with which to hold the product. Also, the idea is verydaunting because comparing insurance policies is like tryingto unravel a noodle soup. The more you stir, the morecomplicated it looks After discussing with the

regulator, some industry leaders and those close tothe insurance sector, Outlook Money decided to bite thebullet and get on with the ranking. This is where we realizedwhat an overwhelming task we had taken on. Just comparingthe return figure, as given by net asset value data, would beincorrect since a financial product is a function of cost andreturn.

48



The minute we bring in costs, comparisons became almostimpossible to carry out. Unlike the mutual fund product thathas a very simple cost structure, Ulips carry a greaternumber of costs (administration and mortality), in addition

to the others. To cut through the confusion and yet be relevant to you, wetookillustrations from all 14 life insurance companies for theirUlips for ages 30 and 45. We assumed that a 30-year-oldwas taking a 20-year policy for an SA of Rs 12.5 lakh, payingan annual premium of Rs 50,000. And a 45-yearold wastaking a 10-year policy for an SA of Rs 7.5 lakh with thesame premium (see How We Did It). Premiums are paidthroughout the term. We also assumed that only the growth,

or the fund with up to 100 per cent equity allocation, ischosen. Left with only nine companies, we looked at Type-Iand Type-II policies. A Type-I policy just gives the higher of the sum assured or the fund value, making the policy buyerextremely vulnerable to a small corpus in case of anuntimely death in the early part of the plan. A

Type-II policy gives both the sum assured and the fundvalue, and sure, it costs more too.

RESULT The winner in the Type-I category is Tata AIG Life's InvestAssure II, which has scored primarily because its one-yearreturn, at 72 per cent, was way above the benchmark returnof 53 per cent of the BSE Sensex. This despite the fact that ithas a fund management charge of 1.75 per cent, more thandouble the 0.8 per cent that HDFC Standard Life charges. Infact, HDFC Standard Life has done very well on the costparameter.

The insurer is clearly the lowest cost one in our examples,but has lost out due to underperformance over the timeperiod. At returns of 42.7 per cent, HDFC Standard Life hasunderperformed the benchmark by about 10 percentagepoints. In fact, Tata and Bharti have outperformed the indexby 10 percentage points or more. Four companies wereunable to beat the benchmark over a one-year period. In

Type-II policies, there is much less competition, with just six companies in the fray. Kotak Life's Platinum

49



Advantage is the winner and has a nice mix of lower costsand decent returns. It has consistently outperformed thebenchmark.Early exit options-

The Ulip product works over the long term. The earlier theexit, the worse off is the investor since he ends upredeeming a high-front-load product and is then encouragedto move into another higher cost product at that stage. Anearly exit also takes away the benefit of compounding fromhim. An early exit option in a unit-linked plan shows how theproduct is structured. We found many products that clearlyencouraged product churn by giving too many zero costoptions to get out of the policy after the mandatory holdingperiod was over. There are others, like the plans from

MetLife, which encourage a longer holding term.Creeping costs-

Since the investors are now more aware than before andhave begunto ask for costs, some companies have found a way toanswer that without disclosing too much. People are nowasking how much of the premium will go to work. There are

plans that are able to say 92 per cent will be invested, thatis, will have a front load of just 8 per cent. What they do notsay is the much higher policy administration cost that istucked away inside (adjusted from the fund value). Whilemost insurance companies charge an annual fee of about Rs600 as administration costs, that stay fixed over time, thereare plans that charge this amount, but it grows by as muchas 5 per cent a yearover time. There are others that charge a multiple of thisamount and that too grows.

50



IRDA (Insurance Regulatory and Development

Authority )

The Government of India has enacted the Right toInformation Act, 2005 which has come into effect fromOctober 13, 2005. The Right to Information under this Act ismeant to give to the citizens of India access to informationunder control of public authorities to promote transparencyand accountability in these organizations. The Act, underSections 8 and 9, provides for certain categories of information to be exempt from disclosure.

The Insurance Regulatory and Development Authority (IRDA)is a public authority as defined in the Right to InformationAct, 2005. As such, the Insurance Regulatory andDevelopment Authority is obliged to provide information tomembers of public in accordance with the provisions of thesaid Act.Access to the Information held by IRDA

The right to information includes access to the informationwhich is held by or under the control of any public authorityand includes the right to inspect the work, document,records, taking notes, extracts or certified copies of documents / records and certified samples of the materialsand obtaining information which is also stored in electronicform. IRDAWebsite The IRDA maintains an active website.

The site is updated regularly and all the information releasedby the IRDA is also simultaneously made available on the

website. The information published in public domain includethe following:1.Acts/Regulations2. Information relating to Insurers/Reinsures, Agents TrainingInstitutes, Appointed Actuaries.3. Information relating to Surveyors, Third PartyAdministrators, Insurance Brokers, CorporateAgents

51



4. Information relating to Insurance Councils, InsuranceOmbudsmen5.Annual Report/IRDA Journal6.Press Releases.

Complaints against Insurance CompaniesIRDA has provided for a separate channel for lodgingcomplaints against deficiency of services rendered byInsurance Companies. If you have a complaint/grievanceagainst an insurance company for poor quality of servicerendered by any of its offices/branches, please approach theNodal Officer of the Insurance Company concerned. In caseyou are not satisfied with the Insurance Company’sresponse you may also file a complaint with theInsurance Ombudsman in your State. The Insurance

Ombudsman is an independent office to providespeedy and cost effective resolution of grievances to thecustomers. For more details on Insurance OmbudsmanScheme and their contact numbers, please visit.Complaints from PolicyholdersPolicyholders who have complaints against insurers arerequired to first approach the Grievance/CustomerComplaints Cell of the concerned insurer.If they do not receive a response from insurer(s) within a

reasonable period of time or are dissatisfied with theresponse of the company, they may approach the GrievanceCell of the IRDA.Functions Of IRDAAs it is the regulatory body of insurance so it has to donecertain work for the shake of insurance holder. The functionswhich are done by it are thus:-

1) Procedure for registration.---(1) An applicant desiring tocarry oninsurance business in India shall make a requisition forregistrationapplication in Form .An applicant, whose requisition for registration application

has been accepted by the Authority, shall make anapplication in Form for grant of a certificate of registration.

2) Classes of insurance business for which requisition for52



registration application may be made.—(1) An applicantshall make aseparate requisition for registration application underregulation 3 for each class of business of insurance.

The classes of business of insurance for which requisition forregistration application may be made are :(a) Life insurance business consisting of linked business,non-linkedbusiness or both; or,(b) general insurance business including health insurancebusiness (or health cover).

3) Requisition for Registration Application.—An applicantshall beeligible to apply for requisition if such applicant uponregistration will be an Indian insurance company.

4) Furnishing of further information and clarification, etc.--- The Authority may require the applicant, which makes arequisition, to furnish further information orclarification regarding the matters relevant to considerthe requisition for registration application.

5) Consideration of requisition for registration application.--- TheAuthority on being satisfied that---

(6) The requisition in Form is complete in all respects and isaccompanied by all documents required therein; allinformation given in the Form should correct;The applicant will carry on all functions in respect of theinsurance business including management of investments

within its ownorganization;

7) Rejection of requisition for registration application- The application can be rejected on the basis of the half filledapplication or not eligibility of the applicant.

53



8) Action upon rejection of application for requisition.—Anapplicant,requisition for registration application has been rejected,may approach the Authority with a fresh request for

registration application after a period of two years from thedate of rejection, with a new set of promoters and or for aclass of insurance business other than the originallyproposed one.

9) Manner of calculation of twenty six per cent. equitycapital held by a foreign company.—For the purposes of the Act and these Regulations, thecalculation of the holding of equity shares by a foreigncompany either by itself or through its subsidiary companiesor its nominees (hereafter referredto as foreign investor) in the applicant company, shall bemade as under and shall be aggregate of:-(a) The quantum of paid up equity share capital held by theforeigncompany either by itself or through its subsidiary companiesor nominees in the applicant company;(b) the quantum of paid up equity share capital held byother foreign investors, non-resident Indians, overseas

corporate bodies and multinational agencies in the applicantcompany; and

10) Consideration of Application.- The Authority shall takeinto account for considering the grant of certificate, allmatters relating to carrying on the business of insurance by the applicant.

11) Effect of rejection of application for registration.—An

applicant, whose application for registration has beenrejected shall not be entitled to a certificate:An applicant may approach the Authority with a freshrequest for registration after a period of two years from thedate of rejection, with a new set of promoters and or for aclass of insurance business other than the originallyproposed one.

54



12) Manner of payment of fee for registration.- The fee of rupees fiftythousand for each class of business for registration shall beremitted by a bank draft issued by any scheduled bank in

favour of the Insurance Regulatory and DevelopmentAuthority payable at New Delhi.

13) Grant of certificate of registration.— The Authority, aftermaking such inquiry as it deems fit and on being satisfiedthat –(a) The applicant is eligible, and in its opinion, is likely tomeet effectively its obligations imposed under the Act;(b) The financial condition and the general character of management of the applicant are sound;

14) An applicant granted a certificate of registration undertheRegulations shall commence insurance business for which hehas been authorized within 12 months of the date of registration.Provided, however, that if the company feels that it will notbe able tocommence the insurance business within the specifiedperiod of 12 months, it can before the time limit expires,

seek an extension, by a proper written application, to theAuthority.

15) The Authority on receipt of the request referred to inRegulation 17 will examine it and communicate its decisionin writing either rejecting the request or granting it.

16). No extension of time shall be granted by the Authoritybeyond

24 months from the date of grant of registration

17) Manner of renewal of certificate. – (1) An insurer, whohas beengranted a certificate under section 3 of the Act, shall makean application in Form IRDA/R5 for the renewal of thecertificate to the Authority before the 31st day of December each year, and such an application shall be

55



accompanied by evidence of the payment of the fee whichshall be the higher of,---a. fifty thousand rupees for each class of insurance business,and

b one-fifth of one per cent. of total gross premium writtendirect byan insurer in India during the financial year preceding theyear in which the application for renewal of certificate isrequired to be made, or rupees five crores, whichever is less;(and in the case of an insurer carrying on solely re-insurancebusiness, instead of the total gross premium written direct inIndia, the total premium in respect of facultative reinsuranceaccepted by him in India shall be taken into account)

18) Manner of payment of fee for renewal of certificate.- The fee forrenewal of certificate shall be paid to the account of Insurance Regulatory and Development Authority with theReserve Bank of India.

19) Issue of duplicate certificate.--The Authority may, onreceipt of fee of rupees five thousand, issue a duplicate certificate toan insurer, if the insurer makes an application to theAuthority.

20) Suspension of certificate.— Without prejudice to anypenalty which may be imposed or any action taken underthe provisions of the Act, the registration of an Indianinsurance company or insurer who conducts its business in amanner prejudicial to the interests of the policyholders

21) Manner of making order of suspension or cancellation of certificate.—No order of suspension or cancellation shall be

imposed except after holding an enquiry in accordance withthe procedure specified in these regulations.

22) Manner of holding enquiry before suspension orcancellation.—For the purpose of holding an enquiry under regulation 24,the Authority may appoint an enquiry officer.

56



23) Show-cause notice and order.---On receipt of the reportfromthe enquiry officer, the Authority shall consider the sameand if considered necessary by it, issue a show-cause notice

as to why a penalty as it considers appropriate should not beimposed.

24) Effect of suspension or cancellation of certificate.--- On andfrom the date of suspension or cancellation of thecertificate, the insurer shall cease to transact new insurancebusiness:

25) Publication of order.--- The order of the Authority shallbepublished in at least two daily newspapers in the area wherethe insurer has his principal place of business.

26) Registration of existing insurers.—(1) Every insurercarrying oninsurance business in India before the commencement of the Insurance Regulatory and Development Authority Act,1999 (41 of 1999) and requiring registration under the Act,

shall make an application, in Form IRDA/R2 for grant of certificate of registration, within three months from thecommencement of the Insurance Regulatory andDevelopment Authority Act, 1999 (41 of 1999).

27) Transitory Provisions.--- Every existing insurer shall berequired to comply with all the Regulations made by theAuthority from the date of their notice Provided that theRegulations made by the Authority on the following subjects

viz:-Accounts;Assets, liabilities and solvency margin;

Reinsurance; The insurance Regulatory and Development Authority, IRDAfor short, has laid down that those who wish to becomeinsurance agents will be given licenses only after they

57



complete a course of study and pass an examinationprescribed was to last 100 hours. The course, IC 33, wasprepared keeping in mind that requirement. In 2007, theperiod of compulsory study has been reduced to 50 hours.

Press Release regarding IRDA (18/8/07)In the last two- three years the unit linked product havebecome very popular among customers and the share of thisproduct in the total portfolio of the life insurance companieshas increased significantly. The IRDA is keen to ensure thatall unit linked products are transparent and that customerform every walk of life can compare features and chargesacross products and cross companies. The tulip guidelinesissued over the last year are the steps initiated by theauthority towards achieving this. As a continuation of the

process we have decided that actuarial fundedproducts be phased out so that products acrosscompanies could be compared and understood easilyby the customers.

Technically there is nothing wrong with the actuarial fundedproductsand they are not determined to the interests of thepolicyholder. Further they have been approved by the IRDA.Companies having actuarial funded products have been

asked to withdraw them over a period of time. They can continue to sellthe products till then and customers and both existing andnew, can continue to enjoy the benefits of these productsand have no reason to fell concerned.

To reiterate, our objective is to remove complexity in all unitlinkedproducts and ensure comparison across Tulips’ of allcompanies. Theexisting or new customer who have purchased theseproducts need not worry under any circumstances as policyholder interests will Protected by the insurance and theauthority.

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Descriptive work

59



04 . Descriptive work

Life Insurance Sector: Fact SheetIndia is emerging as one of the two of the largest markets inthe world for life insurance products, the other being China.In the case of India, the three key drivers of growth are alarge insurable population, a high savings rate, roughly atabout 25 per cent and a low penetration, at a mere 2.3 percent. In the 11 months of fiscal year 2004-05, life insurancecompanies collected premium worth Rs 172 billion and themarket grew by a whopping 32.4 percent during the year. Of

this, the public sector Life Insurance Corporation(LIC) had the lion's share of the market with premiumtotaling Rs 134billion. Private sector players recorded a spectacular growthof 129 per cent over the last year, compared to LIC's growthof 18 per cent. India's GDP growth rate of 6 per cent perannum holds great potential for the sector.

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According to one estimate real life premium are expected togrow at acompounded annual rate of 15 per cent over the next tenyears.

How does India's life insurance market compare withChina's? While India's market is currently the fifth largest,China's is the third largest in Asia after Japan and Korea. Lowpenetration rate of insurance products is common to Indiaand China - at just about 2.3 per cent. In China, the savingsrate is at 35 per cent while for India it is a little lower at 25per cent. A large part of the growth of the life insurancemarket in China was driven by the conversion of bankdeposits into endowment products. Demographically,

China's population is ageing faster than India's. FDI inInsurance Sector The government of India is planning toincrease the equity limit for foreign direct investment fromthe current 26 per cent to 49 per cent in the insurancesector. Liberalizations of the FDI policy, including the Budgetproposals for raising the sect oral caps in insurance is one of the main factors for the higher FDI inflows during the currentyear. In 2003-04 the total FDI inflows in the country touched$3.4 billion. Indian insurance companies have been pushing

for the FDI limit to be raised. The current paid-uprequirement of Rs 1 billion for general insurance and Rs 2 billion for lifeinsurance have become difficult targets to achieve for thecompanies. The companies feel that injection of additional foreign equity would reduce their costs. Thesector was liberalized for private players towards theend of 1999. Currently,there are 14 insurance companies, including the key publicsector company Life Insurance Corporation, in the lifeinsurance sector and 13 general insurance companies.Changing DemographicsIn 1999, according to KSA-Techno park, savings andinvestments comprised 14 per cent of an Indian consumer’sexpenditure. The other items included grocery (44 per cent),personal care items (6 per cent), consumer durables (6.6 percent), clothing and books and music (5 per cent each),eating out (8 per cent), movies (1 per cent). By 2003,

61



expenditure on savings and investments had declined to just4.1 per cent. The other items included grocery (41 per cent),personal care items (7.6 per cent) , consumer durables (6.6per cent), clothing (6.9 per cent), eating out (10.8 per cent),

movies andtheatres (4.6 per cent), books and music (7.6 per cent),vacations (3.9 per cent). Clearly, the increased spending onother items have had a huge impact on the amount peopleare spending on savings and investment products.(Source: Business World’s Marketing White book 2005).Composition of Household FinancialSavings

1991 1996-97

2002-03

Currency 10.6

%

8.6% 8.5%

Deposits 33.3%

48.2%

41.5%

Of which Deposits with non bankingcompanies

2.2% 16.4%

1.6%

Shares and debentures 14.3%

6.6% 2.7%

Small savings (central govt. schemes) 13.2

%

7% 14.3

%Life insurance 9.5% 10.1

%15.5%

Provident and pension funds 16.9%

19.1%

14.3%

Source: RBI Annual Reports.

Key Players in the Indian MarketWhile the public sector LIC dominates the Indian lifeinsurance market with nearly 80 per cent of themarket share. It has 248 branches, 115,000employees and over 1 million agents. It has also beenimproving internal processes and systems, upgradingskills of its agency force and managers and developinginnovative products. LIC sold 1.69 corers policies during the

62



year compared to 18 lakh policies sold by all the privateplayers.ICICI Prudential is the leader among the private players witha market share of 6.69 per cent after its premium collection

totaled Rs 11.54 billion. BajajAllianz with sales of Rs 4.9 billion had a market share of 2.86per cent. Birla Sun Life with sales of Rs 4.8 billion had amarket share of 2.81 per cent andSBI Life with premium collection of Rs 3.9 billion, a marketshare of 2.29 per cent. With its combination of aggressivemarketing through an agency force and the use of thebanking channel, ICICI has emerged as a key player.Initially, the company drove new business by openingbranches in new locations. The focus has now shifted to

penetrating these locations for increasing market share. Thecompany is also trying to get higher penetration in the HighNet Worth segment. The company has seven bankassurance partners and this is the largest contributor to non-agency business.It also has 15 key non-bank partners and 800 financial salesconsultants. As of September 2004, it had 90 branches in60+ locations. It took the initiative in launching non-traditional products such as life-stage products, retirement

solutions and child plans. It also focused on Unit Linked Plans(ULIPs) to target new consumer segments. It has a presencein 15 states through partnership arrangements and as of 2003-04, it sold 64,764 policies in ruralareas.HDFC Standard Life has established its branches in 110locations and is targeting non-metro towns. It is hoping toleverage its “pedigree/parentage” to gain more customeracceptance. As a result, it is focusing on quality – not justvolume growth. It has developed some innovative productslike the Loan Cover Term Assurance Plan which provides alump sum in case of death of the assured life during theterm plan. Aimed at the growing segment of home loantakers, the plan helps the family to repay the outstandingloan.Given that HDFC has a huge database of home-loancustomers; it can easily tap into this resource to acquire newbusiness. The company is leveraging its large customer

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database of home loan and banking clients to cross-sellinsurance products.

Birla Sun Life

Birla Sun Life was the first to offer ULIPs in the Indianinsurance market. And this has been the primary driver of itsgrowth over the last one year. The company has beeninvesting in customer education and feels that as a resultcustomers don't view ULIPs as mutual funds but long terminsurance.As of 2004, the company had 33 branches, 10,274 agents,79 corporate relationships and 10 bank assurance partners.Bajaj Allianz has been focusing on second tier towns and

cities which are yet to witness the entry of other lifeinsurance players apart from LIC. It is using first moveradvantage by opening an office in the most prominentlocation in a non-metro town. It hires local people who aretrained. Its mantra is to develop only the indispensableinfrastructure so that it can match the pricing of LIC. Apartfrom that it claims that it is the only private player toprovide policy servicing at the branch level. StandardChartered is currently its biggest partner followed by

Syndicate Bank and Centurion Bank. The biggest challengethat the company faces is the weak infrastructure –particularly transport and communications – in the smallercities. It is also facing a challenge in terms of bankingchannels, particularly for customers who bank withcooperative banks, where delays in clearing cheques areinevitable. Tied agencies comprise the biggest channel(68%) of new business acquisitions for Bajaj Allianz. Bancainsurance (27%) is the other significant channel of growthfor the company.

Product Preferences among Consumers

Pension policies are becoming popular as people arepreferring to opt for solutions that can offer them a regularincome after retirement rather than a lump sum onretirement. Maturable policies for a bulk sum are beingbought only for limited single use such as purchase of a

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house, children’s higher education, marriage, etc. Thisconsumer trend is likely to help companies that offerpension schemes. Term policies are finding favor withyoungsters: Term insurance policies are also finding more

and more takers among the younger generation of consumers. Because they offer protection at extremely lowcosts.It is assumed that life insurance is purchased only to avail of tax-breaks. But the fact remains that while the tax payingpopulation in the country is just about 20 million, there is ahuge population that has not been tapped. Only theurban salaried class who fall in the tax net has beentargeted for life insurance policies for tax-savingpurposes. The other income-earning classes such as

businessmen, professionals, farmers, provide a greatopportunity for life insurance marketers. There is a need totap these customer segments effectively. Currently all theirdisposable income is going into purchase of consumerdurables such as washing machines, TV, refrigerators andmobile phones (as is evident from the fact that spending onsavings/investment products has declined from 14 per centto 4 per cent in the past decade).Mutual Funds (MF) have benefited the most during the last

two years. Take the example of the Systematic InvestmentPlans (SIP) of mutual funds. In just one quarter ICICI PRU MFsold 20,000 SIPs and it has the potential of selling about100,000 new SIPs in a year. There are 33 Mutual Fundcompanies in the country and based on this trend one couldsay that the estimated fund inflow in MFs through this routealone could touch the Rs 20 billion per month. Due to thegood performance of MF during the past 2 years, lifeinsurance companies have lost out to mutual funds.

PROFILING PROSPECT

For the recruitment of financial there are certain criteria fortheir selection.

These criteria differ form different insurance company. Wecan divide the profiling prospect of HDFCSLIC in two ways.Which are thus:-1. EDUCATION (HIGHEST QUALIFICATION EARNED)

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2. PROFESSIONAL QUALIFICATION1. EDUCATION (HIGHEST QUALIFICATION EARNED) Inthis profile the minimum eligibility for the financialconsultant is

intermediate and for the rural area its minimum qualificationismatriculation. Graduate, post graduate and above havewarm welcome inthis company for financial consultant.

2. PROFESSIONAL QUALIFICATION:-Every company want more and more business and marketshare and we all know that the work in insurance sector istotally based upon the contact. The more you have contact

the more you can give business. So HDFCSL gives morepressure on professionals. In this criteria we canselect those person who is CA, ICWA/CFC /CS(1),MBA, DOCTOR, ENGINEER, LLB, and the otherprofessional like computer engineer, software engineer, etc.Quality score of Financial Consultant Professional personhave more contact than only educated people and can givemore business. HDFCSL has launch qscore. Those financialconsultant who fulfill this qscore then he will be and ideal

financial consultant. These qscore are thus:-Age:- minimum age for the financial consultant should be 25and maximumage is 60 years.Financial consultant should me married. The reason behindit is that person who is married does his work sincerely andhonestly because he has lots of responsibility for theirfamily.Income: - The income of financial consultant should be moreor equal to 3lacks per year.FC should be graduate or higher because it shows maturityof the respective person.FC should spend minimum 3 year in the city of currentresidence.Quality score is showing the quality of the financialconsultant. Thefinancial consultants of HDFC STANDARD LIFE insurancecompany

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should these criteria. The all criteria is showing that onlythose personshould do work as a financial consultant who are graduatebecause a

graduate people have becomes sincere about his work andfuture. The person whose age becomes more than or equalto 25 years have liability to earn to his respect and thefuture. Married person will work properly and married peoplehave more contact than the unmarried people. More peoplewill faith on that married people then the other. The personwho is living inDelhi from more than 3 years obviously that person will havegood contacts.The person whose income will be more or equal to 3 lacks per year

that person will have contact of potential customer who will givequalitative selling of the policy. These are the points of Ideal FinancialConsultant. In order to determine the willingness of the people tobecome FC for HDFC SLIC in jhansi, data collected by surveying istreated as analysis. Response to the parameter like professional,unemployed students, housewives, investment consultant, post officeagent.

Willingness to be FC for HDFC

Yes No Total

Professional 2 18 20

Working employees 2 13 15

House wives 2 18 20

Students 1 9 10

Investment consultants 2 8 10

Post office agents 3 12 15

Others - 10 10

Total 12 88 100

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yes

No

Student

yes

No

Post Office Agent

SKIM NATURAL MARKET You can be more successful in the insurance sector whenyou have more contact and ability to show the dreams to thecustomer. In this sector unlimited earning and greatchallenge is present. You have to set you mind howmuch you want to earn. Here need of marketing skilland dream formation ability. Through my naturalmarket I have made six financial consultants. BasicallyI have shown him dream to him of unlimited earning,

improving personality and presentation skill. I have behavedhim as a good friend of him and try to show his dreams andshow him the future in insurance sector.

LEADS GENERATIONFor making financial consultant I have divided my work inthree parts. I have given presentation in the study centre,arrange party and small meeting with the customer and try

69



to convince them. I can divide my work in three parts whichare thus:-Phone calling:- For the recruitment of financial consultant Ihave used phone calling and try to convince them. most of

the call has been disconnected having heard the nameinsurance but I tried my best and show him tell him how hecan save the taxes and unlimited earning in an hour per day.Set meeting time with my friends, relative, and contactperson for thispurpose. I have gotten that there is need of less effort formaking FC in terms of those who are unknown for me.In the time of traveling, walking in the park, I tried to contactperson in this regard. Some times people abuse me andthreat if I call him again.

MODE OF CONTACTING PROSPECTSI can divide it in three parts. For the purpose of contactingFC I have done certain things which are thus:-Presentation: - I have given presentation in the Ignou studycentre, Sikkim Manipal university study centre Patel Chestarea Majnu ka tilla area. Firstly I had met to the classcoordinator after that director and set the presentation time.I have given proper presentation in this study centre. I have

gotten positive attitude of the student. . And still more 15are in the que because of exam. Arrange meeting point inthe restaurant. I fix meeting point of my friend’s friends inthe restaurant because it gives more effect in their in theirmind and set positive view of insurance agent. I gave themtea party and snacks.

Through phone calling whatever appointment I have gotten,I had gone to his home or his office and tell him the benefitsof a financial consultant.

Through these I have gotten various contacts and personwho wants to be financial consultants. As the ratio of makingfinancial consultant is very low. When we talk to 100persons for financial consultant then only 5 to 8people gives response and rest deny form it. Out of 5-8 people only 1-2 people join the organization as a financialconsultant.

TOTAL NO. OF PEOPLE CONTACTED70



During the work of making financial consultant I havecontacted 100 people including phone calling, skim naturalmarket, and the other efforts. In these 100 people I havegotten appointment of 35 people. In the 35 person I have

converted 19 people into Financial Consultants. Thepercentage of making FC is 12%. The ratio of convertingpeople into Financial Consultant is 1:5.During the meeting time with the customer these questionsare generallyasked by them which are thus:-Which type of policy your company is providing?Our payment will base on commission or pay roll?How your policy is different from other?How can I believe on you and your company?

Mostly person have still faith in LIC so I have to convincethem against the LIC.For the joining insurance sector as a financial consultantthey need to pay rs.825 for online training and rs.925 forregular training. This training is given by the IRDA which isInsurance Regulatory and Development Authority. Itprovides license to the agent for the selling of the policy.

This amount differs from company to company. Differentcompany charges different fee for making FC. Generally the

amount approx 500 in all the insurance company but inHDFCSL charges 925 or 825.

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ResearchMethodology

05. Research Methodology

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Objective of study

Marketing Research provides information that assists andorganization to define opportunities for product developmentand market strategy. Works by assessing whether marketingstrategies are accurately targeted, and by identifying marketopportunities or changes that are required by customers.Market research tends to confirm issues that are well-knownin a market initially, but if planned well and effectively it willalso identify new opportunities, market niches, or ways bywhich to improve sales, marketing and communications

activities. The role of market research, therefore, is to reduceuncertainty indecision making, to monitor the effects of decisions taken,and identify the performance of a company or a product inthe market. During internship I my market survey wasrelated with the distribution enhancement of the insurancepolicies of HDFCSL. To be more specific, we can list five keyuses for market research, namely to:a. Identify the size, shape, and nature of a market, so as to

understand the market and marketing opportunities.b. Investigate the strengths and weaknesses of competitiveproducts and the level of trade support a company enjoy.c. Test out strategic and product ideas which help to definethe mosteffective customer-led strategies.d. Monitor the effectiveness of strategiese. It will define when marketing expenditure, promotions andtargeting

need to be adjusted or improved. The variety of purposeslisted above makes it clear that market research is notsimply a “first check.” It is useful ahead of any action, but italso provides a means of checking and refining views asoperations proceed. Companies, especially those for whichbudgets always seem tight, who have selected one of theseuses for market research are always concerned to make theresearch a worthwhile investment. Best results come when

73



their marketing and sales planning is influenced by theresults of research. In other words, when research pays foritself by providing a basis for change and improvement inoperational matters.

Objective of project

My project is being undertaken in HDFCSL in which FCrecruitmentprogram and distribution enhancement of insurance policiesof HDFCSL has been implemented as a marketing strategy.HDFCSL tied up with worldclass insurance product.Primary Objective

The primary objective of my project is to make or recruitFinancialConsultant and to increase market share of HDFCSL. In theinsurance sector the main work is done by the financialconsultant who brings selling for the organization. Itimproves the services of the organization.Secondary ObjectiveIn this point we can conclude the company objective which isto increase the market share in the insurance sector and this

will happens it becomes more beneficiary and reliable to thecustomer. Customer should have faith on it. It is trying to doit. Today it comes under top 5 insurance companies. It wantsto reach on the top.

Working Procedure

In my summer training I have targeted jhansi & Some partsof near Jhansi . I have collected my data from jhansi & some

parts of near Jhansi . Here I have to approach various detailof insurance product of HDFCSL and the other competitor of it, suggestions, its marketing strategy and its advertisement.As a part of marketing research I also have to collect data inorder to find out market share of HDFCSL from our samplespace. During the period I was in constant touch with mysenior and area sales manager and I have to submit daily

74



report of my work and full information about phone calls andcollect the information.

Sample Area

My working area was jhansi & some parts of internet. I havecollected my data in these areas. As we know that thoseperson will invest in insurance sector who is salaries orprofessional. I have targeted those person who age is equalor more than 25. Instrument UsedI have collected my data form field survey andthrough phone calling. As I was doing the work of recruitment officer so whenever I called for financialconsultant then I tried to fulfill my questioners.

Methods of data Collection

Data is the significant part of the research. Your all researchdepends upon your data. Whatever data is collected by meduring the internship in the HDFCSL, I can divide the methodthe collection of my data into two parts which are thus:-a. Primary dataPrimary data are those which are collected fresh and for the

first time and thus happen to be original in chapters. I havecollected my data through phone calling and through directcommunication with respondents in one form or another orthrough personal interviews. Through observation method Iwas able to record the natural behavior of the group.Sometimes I verify the truth of statements made byinformants in the context of a questionnaire or a schedule.b. Secondary data

Secondary data are those data which are being alreadycollected by someone else and which have already beenpassed through the statistical process. I have collected mypublished date form Internet and the books, magazines andnewspaper.

Research Design

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In this project conclusive research is used. In conclusiveresearch data was collected by descriptive research method.

The method applied in descriptive research is cross sectionalstudies field work and survey. My study concerned with the

specific prediction of distribution of insurance policy. Itassimilates the narration of facts and characteristicsconcerning individual, group or situation. The objective of my research is to enhance the distribution of insurancepolicy of HDFCSL in the market. In the market there are lotsof insurance industry is playing and trying to achieve more andmore market share. In this situation is very important tosustain in the market and increase share. For this purpose Ihave done a research on it. For this objective I have used

telephone calling and field survey and go to the institutearea and try to find out the response of the publicabout HDFCSL and Insurance.I have done phone calling and try to get their viewabout it. As I wasworking in this organization as a recruitment officer butregarding project I talk about the reliability of the company,trust, its insurance plan like are you aware about its plan ornot and some other question like if you are investing your

money in the other insurance company, so would you pleasetell me reason behind it. I had prepared 100 questioners forthe collecting data and did 100 phone calls in jhansi Region.As my research area was jhansi & some parts of near jhansi.

Process of Recruitment of FinancialConsultant

During summer training I had to recruit financial consultant.

For therecruitment OF Financial consultant I had tried phone calls,and my natural market. Through it I had recruited 12financial consultants. As my target was to give 12 financialconsultant to the company within two months.During the making the financial consultant when I talk to himabout it

76



firstly they don’t want to talk with the name of insurancebecause they think it is a very challenging job and becauseof business of the life they don’t want to come in theprofession.

CRITICAL RATIOSIn the insurance sector the ratio of making FC is generallybecomes 1:20 or may be more than that. During therecruitment of financial consultant I have contacted 100people. In these 100 people I have converted 12 people intoFC. So the critical ratio becomes 1:5. This ratio is relativelygood in the sense matter which generally happens,according to my external and area manager of the HDFCSL

jhansi branch.

NO. OF PROSPECTS CONTACTED

As I have written above I have contacted 100 people. Inthese 100 people 45 people gives me appointment to meethim. In these fifty people 20 people are still in process forbeing financial consultant and 6 people denied for becomeFC. At last I have recruited 12people as financial consultant.

NO. OF APPOINTMENT GENERATED

In the prospect of getting appointment generated throughphone calling I had contacted 80 people and gotten 35appointments. In these appointments 20 people are stillgiving me new date of appointment. Rest of them 10 personcancelled the appointment and rest 5people meet me andfinally they are now FC.

Through natural market I contacted 4 people and recruitedhim as afinancial consultant for HDFCSL.Through the meeting withfriend’s relative and other medium I have contacted 18people in these 6 people are recruited as FC and rest are inthe process.

77



NO. OF FC RECRUITEDI have tried to give good result and try to use my marketingskill for the recruitment of FC. After contact of 100 people Ihave recruited 3 people through phone calling, 6 through

natural market, and 3 through the friend’s relatives and theother contacts. In the nutshell I have recruited 12 people asa Financial Consultant.In the process of recruitment of financial consultant 20people are still in process because 5 person who are studentand pursuing BCA, MA, MBA and TOUR and TRAVEL havefinancial problem, are rest are giving me new dates. Rest 15person are giving me new date for meeting with thedifferentdifferent types of excuses but finally I will recruithim.

INDIA -THE NEXT INSURANCE GAINTIndian economy is the 12th largest in the world, with a GDPof $1.25 trillion and 3rd largest in terms of purchasing powerparity. With factors like a stable 8-9 percent annual growth,rising foreign exchange reserves, a booming capital marketand a rapidly expanding FDI inflows, it is on the fulcrum of an ever increasing growth curve.Insurance is one major sector which has been on a

continuous growth curve since the revival of Indianeconomy. Taking into account the huge population andgrowing per capita income besides several other drivingfactors, a huge opportunity is in store for the insurancecompanies in India.According to the latest research findings, nearly 80% of Indian population is without life insurance cover while healthinsurance and non-life insurance continues to bebelow international standards. And this part of thepopulation is also subjected to weak social securityand pension systems with hardly any old age incomesecurity. As per our findings, insurance in India is primarilyused as a means to improve personal finances and forincome tax planning; Indians have a tendency to invest inproperties and gold followed by bank deposits. Theyselectively invest in shares also but the percentage is verysmall--4-5%. This in itself is an indicator that growthpotential for the insurance sector is immense. It’s a business

78



growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.India is a vast market for life insurance that is directlyproportional to the growth in premiums and an increase in

life density. With the entry of private sector players backedby foreign expertise, Indian insurance market has becomemore vibrant. Competition in this market is increasing withcompany’s continuous effort to lure the customers with newproduct offerings. However, the market share of privateinsurance companies remains very low -- in the 10-15%range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy hand of government still dominates the market, with price controls,limits on ownership, and other restraints.

Major Driving Factors=> Growing demand from semi-urban population=> Entry of private players following the deregulation=> Rising demand for retirement provision in the ageingpopulation

=> The opening of the pension sector and the establishmentof the new pension regulator

=> Rising per capita incomes among the strong middleclass, and spreading affluence=> Growing consumer class and increase in spending &saving capacity=> Public private partnerships infrastructure development=> Dearth of innovative & buyer-friendly insurance products=> Success of Auto insurance sector

Emerging Areas=> Healthcare Insurance & Pension Plans=> Mutual fund linked insurance products=> Multiple Distribution Networks .i.e. Banc assurance

The upward growth trend started from 2000 wasmainly due to economic policies adopted by the thenIndian government. This year saw initiation of an era of economic liberalization and globalization in the Indianeconomy followed by several reforms and long-term policiesthat created a perfect roadmap for the success of Indian

79



financial markets. On the basis of several macroeconomicfactors like increase in literacy rate & per capita income,decrease in death rate and unemployment, better taxrebates, growing GDP etc., we estimate that the Indian

insurance sector will grow by $28.65 billionand reach $76.54 billion by 2011 with a CAGR of 12.44% anda growth of 59.82%.

The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus representing a compound annualgrowth rate (CAGR) of 11.84% for the period spanning 2000-2007. Life insurance market had a growth of $22.46 billionwithin a period of 7 years with a growth rate of 118.24%.Estimated life premiums rose from INR 1, 470,800 million($36.77 billion) in 2006 to INR 1, 301,540 million

($32.54billion) in 2005.We envisage that life premiums in 2011 will be $65.96billion, a growth larger than they were in 2007. Theperformance of the market is forecast to accelerate, with ananticipated CAGR of 9.78% for the four-year period 2007-2011 expected to drive the market to a value of $65.96billion by the end of 2011. There would be a growth of $24.6billion i.e. 59.48% in the next 4 years.Non-life premiums in India were $6.53 billion in 2007. Gross

writtenpremium (GWP) in the Indian non-life insurance marketreached a value of $5.75 billion in 2006, this representing anannual growth of 13.55% for the period spanning 2006-2007. Estimated non-life premiums rose from INR230 billion($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in2007. We anticipate that non-life premiums will grow by aCAGR of 9.40% “between” 2007-2011. We are looking fornon-life premiums to rise by $405 million over the five yearsto the end of 2011 with a growth rate of 62.02%

COMPETITOR OF HDFCSLIC

AS we know that this time insurance sector in on boom.Reason is that it gives more profit not only to the companybut also to the investor. Today company invest money notonly in government securities and bonds but also in theequity which gives more return than the government

80



securities and bonds, and bank deposits. In the market lotsof insurance company who are trying to capture more andmore market share. There are seventeen insurancecompanies in the market which are launching plans after

plans for capturing market share. These insurancecompanies are thus:- No. Name of Insurance company1. Life Insurance Corporation2. ICICI Prudential3. State Bank Of India Life Insurance4. Bajaj Allianz5. Reliance retail limited6. Met Life Insurance7. Aviva Life insurance8. Sahara Life Insurance

9. Birla Sunlife Insurance10. canara HSBC Oriental bank Life Insurance11. india First Life insurance12. Ing vysya Life insurance13. Max Newyork Life insurance14. kotak Mahindra old mutual Life insurance15. Bharti Axa Life insurance

AMP Sanmar Life

AMP Sanmar Life Insurance Company Limited InsuranceCompany Limited was a 26:74 joint venture between AMPAustralia and Sanmar Group. The initial paid up capital of the

joint venture was Rs. 125 crores and an initial target of selling around 30,000 policies in the first year of itscommencement.In 2005, Reliance Life Insurance Company Limited, asubsidiary of Reliance Capital Limited under Anil Dhirubhi Ambaniacquired AMP Life Assurance Co. Ltd. this made Reliance LifeInsurance the very first private sector life insurancecompany to start business in India without any foreigncollaborator.AMP Sanmar handed over 90 branches, 900 staff and 9000agents toReliance Life. This gave Reliance Life Insurance the

jumpstart it needed to get IRDA (Insurance Regulatory andDevelopment Authority) approval. The other industry suitors

81



for the bid of AMP Assurance Co. Ltd were Aviva, ICICIPrudential Life Insurance Company etc. But Reliance outbidthem with the bidding amount ranging between Rs. 225 -400 crores.

AMP Sanmar has two names brought together. Onebeing AMP Limited that is one of the world's leadingfinancial services provider with a customer base of over 9 million and the other is Sanmar Group that isamong the largest industrial groups in South India. Theturnover of Sanmar Group is around Rs. 10 billion withbusinesses in PVC/ Chloro chemicals, specialty chemicals,shipping and engineering.

ICICI Prudential Life Insurance Company

ICICI Insurance has two faces - ICICI Prudential Life InsuranceCompany and ICICI Lombard General Insurance CompanyLimited. ICICI Prudential Life Insurance is a 74:26 jointventure between ICICI Bank India Ltd. And Prudential PLCbased in UK. Established in 2000, today ICICI Prudential has735 offices, 22 Banc assurance partners and over 2.4 lakhadvisors.Having won public accolade as the most trusted private lifeinsurer in India, ICICI Prudential Life Insurance Co Ltd brings

a wide array of life insurance products to the customers.In addition to these insurance policies, ICICI Prudential bringto you easy premium payment solutions by cheque or cashat the branches, cheque payments at the drop boxes, ECS,credit card payment and online payment options. Login tothe ICICI Prudential website and on the homepage findonline premium payment option. You also get an onlineasset allocator, inflation index calculator, human life valuecalculator and life stage profiler. ICICI Prudential offers youan opportunity to buy the desired insurance policy online orget full details from an insurance agent or broker send toyou or even get first hand direct information at thehelpdesks in the ICICI Prudential branches.ICICI Lombard General Insurance Company Limited is a74:26 JVbetween ICICI Bank India ltd. - the second largest privatesector bank in India and Lombard Canada Ltd. - a Fairfax

82



Financial Holdings Ltd group company that is a 26 billionUSD Company.ICICI Lombard started their general insurance businesses inAugust

2001. It is India's No.1 private general insurance company. Itis also the first general insurance company to be awardedISO 9001:2000 certification. They bring to you express fastpolicy issuance and claims settlements.

Life Insurance Corporation of IndiaEvery day we wake up to the fact that more than 220 millionlives are part of our family called LIC. We are humbled bythe magnitude of theresponsibility we carry and realise that the lives that

are associated with us are very valuable indeed.Although this journey started five decades ago, we are stillconscious of the fact that, while insurance may be abusiness for us, being part of millions of lives every day forthe past 50 years has been a process called TRUST.

Birla sun life insuranceBirla Sun Life under the management of Mr. Nani B. Javeri asthe CEO is a Rs. 180 crore equity capital company. Birla Sun

Life Insurance Co. Ltd is a 26:74 joint venture between SunLife Financial Services Canada and Aditya Birla Group. Justfour years down the industry pipeline, Birla Sun LifeInsurance or BSLI has secured a lead in private life insurancemarket. The distribution channels by BSLI include direstsales force, alternate channels, IT systems and groups toensure convenience of the potential customers.Highly professional dealing, corporate governance andcompletetransparency have earned Birla Sun Life Insurance Co Ltdthe trust of its customers.

The many pioneering activities by Birla Sunlife include UnitLinkedLife Insurance Solutions, Investment Linked InsuranceProducts and Web-Based Insurance Policies sale. Birla Sun Life InsuranceCompany Limited also offers MF (Mutual Fund), international

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equity funds and dream plans in insurance products thatgive you complete transparency and value-formoney.

Kotak Mahindra Insurance Company Limited

Kotak Mahindra Insurance Company or Om Kotak MahindraLife Insurance is a 74:26 joint venture between KotakMahindra Bank Limited India andOld Mutual PLC- a leading global financial services provider.KotakMahindra Bank Limited (KMBL) is the flagship venture of Kotak Mahindra Group. The group is a full-services financialgroup providing a wide array of services and products toinstitutions, banks, corporates and individuals.Kotak Mahindra has overseas offices in New York, London

and Dubai. Along with a joint venture for life insurance andgeneral insurance services with Old Mutual PLC, KotakMahindra also has joint ventures with leading internationalplayers Goldman Sachs for Investment Banking & Brokerage,and Ford Credit International for Automobile Finance.

Reliance General Life Insurance CompanyReliance General Life Insurance Company is a RelianceCapital Ltd.

product. Under the guidance of Anil Dhirubhi Ambani Group,relianceinsurance company has secured the position of the topinsurers in India. Reliance General insurance is one of thefirst non-life companies to get the license from the IRDA. Therisks covered under general insurance include property,marine, casualty and liability. Wide ranges of products areavailable at Reliance Standard Insurance for both group andindividual customers. Each insurance policy is customized soas the customers feel as if it was made for their needs. Thedistribution channels include branch network, individual andspecially trained insurance agents and insurance brokersand online purchases of the insurance policies.A completely customer centric company, Reliance InsuranceCo Ltdaims at making insurance affordable and accessible to all.

The interests of the policyholders are protected to the bestof their capabilities and complete cooperation is provided in

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insurance claims. a pan India presence of Reliance StandardInsurance brings the insurance policy best suited to yourrequirements right to a branch near you.

SBI Life InsuranceSBI Life Insurance offers Personal Insurance and relatedservices in order to enable us plan our life for contingenciesand unforeseen events. SBI Life Insurance operates on thebasic premise that life is uncertain and the best way totackle this uncertainty is to be prepared emotionally as wellas monetarily. SBI Life Insurance is a product of thecollaboration of the State Bank of India and the FrenchInsurance company, the Cardiff SA. SBI Life Insurance offersInsurance Benefits and pension services based on the case

and the portfolio of the clients. For instance, The State Bankof India offers Insurance Policies that are designed inaccordance to our needs and liabilities.

The advantage of availing SBI Insurance Policies is that weget theentire financial guidance package offered by SBI India inregards to its various programs, like the SBI Mutual Funds,Medical Insurance, Personal Banking, Corporate Banking,etc. The experts with SBI Life Insurance offer investment life

insurance but what distinguishes The State Bank of Indiafrom other Insurance Companies is the availability of Mortgage Life Insurance policies in which we can availSBI Housing Loans/Home Loans and SBI Life Insuranceand then consolidate the insurance premium and themonthly installments. The main hallmark of SBI LifeInsurance is to offer Insurances Policies and Long-Term CareInsurance at affordable prices and without much hassle.Metlife Insurance Company LimitedMetLife India Insurance Company Private Limited wasincorporated in April 2001 as a joint venture betweenMetLife International Holdings, Inc., The Jammu and KashmirBank, M. Pallonji and Co. Private Limited and other privateinvestors. Metlife India insurance company is a subsidiary of US based metropolitan life insurance company. Metlifebrings to you over 135 years of experience in insuranceproducts - life insurance, automobile and home insurance,annuities, retail banking and other financial services to

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individuals, as well as group insurance. They also providereinsurance to corporations and other institutions and alsoretirement and savings productsand services. Metlife reaches out to their customers in India

through a network of 9 branches with head office atBangalore and around 1000 customer reach points throughits distribution channels including online premium insurancesales on Metlife insurance.com. Quotes on various insuranceproducts arealso conveyed through the insurance agents and brokers.General Insurance Corporation of IndiaGeneral Insurance Corporation of India or GIC of India wasincorporated in 1972 to supervise and control the generalinsurance business in India. All the general insurance

companies were merged into four main subsidiaries of GICnamely:National Insurance Company, New India Assurance CompanyLtd, Oriental Insurance Company Ltd, United India InsuranceCompany Ltd.

These four companies were renotified independent businessactivities in November 2000 after the implementation of IRDA (Insurance Regulatory and development Authority) Act.In 2002, the General Insurance Corporation of India

ownership was ceased and the holding was vested to theGovernment of India.Bharti AXA Life Insurance company Ltd.Bharti AXA Life Insurance Company Limited is a 74:26 jointventurebetween Bharti Group - one of India's leading Multi-businessgroups and AXA - a world leader in financial protection andwealth management services. Bharti AXA was established inend 2006 with head office at Mumbai. Today theBharti AXA Life Insurance Company expanse extendsto 12 states and 3000 employees. Bharti AXAInsurance products and policies are designed keeping inmind the financial needs of their customers.A fact that is kept in mind is the impact these insurancepolicies have on your life and the peace they provide. Eachlife insurance or general insurance product of Bharti AXA Lifeis named confident as they believe in making each customer'Life Confident' giving them the assurance that the

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future of their loved ones is financially secure even in theirabsence.ING Vysya Life Insurance Company LimitedING Vysya Life Insurance Company Limited established its

foothold in the private life insurance industry in India inSeptember 2001. In a branch network of over 140 brancheswith head office in Bangalore, ING VysyaLife Insurance Co employees around 3000 employees with asales force of over 21,000 insurance agents and brokers. INGVysya Life enjoys a customer base of 4.5 lakh and a totalincome of Rs. 400 crore.Life Insurance Co Ltd is the result of a joint venture betweenthe world's second largest life insurance company - INGInsurance and one of the largest private sector banks in

India - Vysya Bank. Another stakeholder in the JV is GMRGroup.Sahara India Life Insurance CompanySahara India Life Insurance Company Ltd (SILICL)benchmarked the start of life insurance services by SaharaIndia on 30th October 2004. Sahara India Life InsuranceCompany Ltd is the first wholly Indian-owned privatesectorlife insurance company. It is also capturing market at fastrate.

Royal Sundaram InsuranceRoyal Sundaram Alliance Insurance Company Limited is theoutcome of a 74:26 joint venture between SundaramFinance Ltd India and Royal & Sun Alliance PLC London.Royal Sundaram Alliance Insurance Co Ltd was the firstforeign joint venture to obtain a license for operating non-lifeinsurance businesses in India.Royal Sundaram began their official operations on 12thmarch'2001with their head office in Chennai. Today they have fourregional offices in Chennai, Mumbai, Gurgaon and Kolkataalong with 35 branch offices. The Royal Sundaram teamincludes in-house trained insurance agents, brokers anddirect sales office staff. Customer care and peace of mind isa priority for every Royal Sundaram Alliance employeeand care is taken to ensure complete assistance to thecusomers in getting the insurance product best suited

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to their requirements and easy and transparent insuranceclaims settlements.

These companies are giving tough competition to each otherin acquiring market share and adopting new marketing

strategy for it. The main competitor of HDFCSL is LIC,Reliance life insurance ltd, and ICICI Prudential. Today LIC Insurance product likes “JIVAN ANAND”, ReliancelifeInsurance product like “Alternate Investment plan andinvestment and medic lame plan” and HDFC Standard lifeProduct like “Young Star Plan and pension Plus Plan” isrunning in the market and helping to the industry to capturemore market share. In this stuff market HDFCSL need toadopt new marketing strategy, new innovative

policy, and new idea of policy, and advertisement so that itcan get the potential market share.All seventeen insurance companies are investing theirmoney forlaunching new innovative plan of insurance, adopting newmarketingstrategy. So HDFCSL need to maintain its position in themarket and should try to give better competition to theircompetitor and do more and more advertisement and adopt

new marketing strategy because we buy only that thingwhatever we see generally. Each advertisement andmarketing strategy will born new faith against HDFCSLIC.Market Share of the top five insurance sectors

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0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

lic birla

sun

tata

alg

sbi

life

3-D Column 1

In terms of group insurance schemes, LIC’s marketshare was at 72.2% after it covered 4.9 lakh lives.Private players had 27.9% of the market covering 1.9lakh lives. Till today LIC is covering more market share thanthe other private players.

The 12 private players in the country together mopped upRs 385crore in premium in the first two months selling over 2 lakhpolicies. ICICI Prudential Life leads with market share of 5.9% It is followed by BIRLA SUNLIFE with a market share of 2.6%, BAJAJ ALLIANZ (1.6%), TATA AIG (1.5%), HDFCStandard Life (1.4%) and SBI Life (1.2%).Each of the otherprivate players like AVIVA , Max New York Life, OM KOTAK Life,ING VYSYA AMP Sanmar and MetLife had less than 1%market share but posted high growth in business.

Market share in terms of premium collectionnote:- these values are in crore.In terms of premium collection, ICICI Prudential mopped upRs 136 crore followed by Birla Sunlife (Rs 60 crore), AllianzBajaj (Rs 37 crore), Tata AIG (Rs 35 crore), HDFC StandardLife (Rs 33 crore), and SBI Life (Rs 27 crore). In the privatesector ICICI prudential have more market share in terms of premium collection. Last fiscal HDFCSL is on the fifth rank.

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Marketing strategy of HDFCSL

Marketing is process of analyzing the consumer need and

serve the need of consumer which satisfy the consumer andsolve the consumer problem. In this sector the marketing ispay main role in brand formation and policy awareness tothe public. As we know that LIC is covering more than 75%market share. So marketing helps in increasing the marketshare. Marketers have to analyze the market share and findout the market. We can divide its marketing process in twoparts:-1) Marketing for Financial Consultant:- Work part-time, earnfull-time is the punch line of the its marketing strategy. It

says just work for 5 hours a week and earn more than Rs.20,000 per month. If you will be financial consultant of HDFCSL then you can have high earning potential, zeroinvestment, and you will not have pressure for work. You canwork as whatever you make your target or you can work asa part-time as per your convenience. There arecertain facilities for FC:-Flexible work timings:-you can work whenever youlike and from whenever you like. You can work full time or

part-time, depending on your convenience. It’s like no other job. However, the time you invest will determine yousuccess.Zero investment:- There is no star-up capital. Be your ownboss; with a flexible working environment, unlimited earningpotential and otheropportunity to be part of a world class team. The advantageis all yours. Sunrise industry:- Life insurance in India has ahuge potential for growth. Statistics reveal that only 25% of the insurable population in India is insured. And thoseinsured are in need of still higher insurance cover. The over100% growth displayed by private life insurers indicates thishuge untapped potential.Strong partnership:- It is on of the fastest growing lifeinsurance companies. It was the first private life insurancecompany to be granted a license by IRDA. It have been ratedby business world class magazine as India’s most respected

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Private life Insurance Company in 2004. HDFC Standard lifeInsurance has one of he highest brand recall of around 86%.2) Marketing for the potential market:- In our general life webuy those

things which we see. For consumer awareness printmarketing and electronic marketing both are mostimportant. In the market 17 insurance players is trying toconvince people with the advertising in television, radio,newspaper and magazines. HDFC Standard Life is alsoadopting these electronic marketing. The punch line of HDFCStandard Life is “Sar Utha Ke Jiyo”. Today it has more than 8lack policyholder. It is also targeting cinema halls like PVRwhere it will get more potential market, for marketing.3) For insurance sector the main marketer becomes its

FinancialConsultant. So it is trying to recruit more and more financialconsultant for the purpose of sale of the policy of HDFCStandard life and people will be more aware through itbecause it is a work of contact. Which have more contact thethat person can get more business.

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ANALYSIS AND

INTERPRETATION OF THE DATA

Data analysis

After collection the data the most important part comeswhich is data

analysis. It is the most significant part of the research.Whole workregarding data depends upon the data collection. During theperiod of summer training I have collected my data in the area of

jhansi & some parts of near Jhansi . For the collection of dataI had gone to the market, gathered places like market, funCinema halls, and the other gathered places where I can get

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the potential customer. As the plans of HDFC STANDARDLIFE target medium income level in the urban area. Theminimum premium of the policy is 15,000 yearly, and 15,00monthly. So had to target those places where I can get

person who is salaried and their salary most be more than10,000.For the collection of data various phone call done by me andI havegotten certain result form it. These question and results arethus:-

Analysis for insurance sector and produtQ1. Are you currently insured?

Particulars No. of Respondents Percentage

Yes 31 62%

No 19 38%

Total 50 100%

ANALYSIS:

From the survey it was found that amongst 50 respondentsa) 62% of the respondents are already insured.

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b) 38% of the respondents are not insured.

Q2. Are you satisfied with your current insurer?


Yes 41 82%

No 9 18%

Total 50 100%

ANALYSIS:

From the survey it was found that amongst 50 respondentsa) 82% of the respondents are satisfied.b) 18% of the respondents are not satisfied.

Q3. Which one is your favored insurance company?


LIC 24 48%

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HDFC 7 14%

ICICI 5 10%

Birla Sun Life 4 8%

Bajaj Allianz 4 8%

Others 6 12%Total 50 100%

ANALYSIS: From the survey it was found that amongst 50respondentsa) 48% of the respondents like LIC.

b) 14% of the respondents like HDFC.c) 10% of the respondents like ICICI.d) 8% of the respondents like Birla Sun Life.e) 8% of the respondents like Bajaj Allianz.F) 12% of the respondents like other companies

Q4. Are you interested in the products offered by HDFC SLIC?


Yes 30 60%

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No 12 24%

Can’t Say 8 16%

Total 50 100%

ANALYSIS:From the survey it was found that amongst 50 respondentsa) 60% of the respondents are attracted towards HDFCPRODUCT.b) 24% of the respondents are not attracted towards HDFC

PRODUCT.c) 16% of the respondents can’t Say about it.

Q5. What is your main concern while taking an insurance policy?


Tax Benefit 20 40%

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Rating No. of Respondents Percentage

1 9 18%

2 9 18%

3 8 16%4 10 20%

5 14 28%

Total 50 100%

ANALYSIS;-From the survey it was found that amongst 50respondents

a) 18% of the respondents are highly unsatisfied.b) 18% of the respondents are Unsatisfied.c) 16% of the respondents are Moderate.d) 20% of the respondents are satisfied.e) 28% of the respondents are highly satisfied.

Q7. Please express your opinion for the premiums paid for the

above policy?


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Very High 14 28%

High 11 22%

Moderate 13 26%

Low 8 16%

Very Low 4 8%Total 50 100%

ANALYSIS: From the survey it was found that amongst 50respondents

a) 28% of the respondents think that Premium is Very High.

b) 22% of the respondents think that Premium is high.c) 23% of the respondents think that Premium is Moderate.d) 15% of the respondents think that Premium is Low.e) 12% of the respondents think that Premium is Very Low.

Q8. How do you come to know about this policy?


Advertisements 10 20%

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Highly satisfied 9 18%

Satisfied 12 24%

Moderate 10 20%

Unsatisfied 11 22%

Highly Unsatisfied 8 16%Total 50 100%

ANALYSIS: From the survey it was found that amongst 50respondents

a) 18% of the respondents are Highly Satisfied.b) 24% of the respondents are Satisfied.c) 20% of the respondents are Moderate.d) 22% of the respondents are Unsatisfied.e) 16% of the respondents are Highly Unsatisfied.

Q10. According to you, in what areas should the insurance

companies work upon?


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Easy Procedures 14 28%

Fewer premiums 10 20%

More Returns 9 18%

Transparency 17 34%

Total 50 100%

ANALYSIS: From the survey it was found that amongst 50respondent

a) 28% of the respondents want Easy procedures.b) 20% of the respondents want Fewer premiums.c) 18% of the respondents want More returns.d) 34% of the respondents want Transparency.

Q11. Do you think that services have improved after allowing

private players in insurance sector?


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then 18 % people say about ICICI and then 17% peoplerecall HDFC Standard life and rest people recall other.

Q2. How many times you have invested your money ininsurance sector without consulting to any FinancialConsultant.Ans- consulting with FC Self

In this survey I have analyses that mostly people dependentupon financial consultant for the investment of their moneyin the insurance sector.Financial Consultant pays main role in the insurance sectorregarding sales of policies. For the distribution enhancementof the policy of HDFC Standard Life it is most important thatit should give more preference to its financial consultant. It

should offer attractive commission to the financialconsultant so that they work for the organization by heart. Itis financial consultant who consults with the people andconvinces them for investing their money in the respectiveinsurance company. In the market there is certainly ICICIprudential have more financial consultant than HDFCStandard Life insurance. There are 17 insurance companiesin the market and they are trying to increase their marketshare and for this purpose they will definitely give more

benefit to public so that they may agree to become financialconsultant.

Q3. Are you aware of the advertisement of “Sar Utha Ke Jiyo”? if yesthen are you able to understand what it actually want tosay?

Ans :-when I talked to the people in this regard then hereplied that they are aware about the this Policy and I amtalking about HDFC Standard Life Insurance. It shows ouradvertisement is making place in the mind of the customer.

They are aware of our insurance company. It will developfaith on the industry and help to the financial consultant of the HDFC Standard Life to convince them becauseadvertisement have maid their work to tell them it is arenounce company and they will not cheated by thiscompany.

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Q4) For the investment in insurance sector you choosecompany or your investment based upon the financialconsultant.

Ans:- Through this question I will be able to know thatrole of the financial consultant.

Through the graph I can analyze that most of theinvestment is done through financial consultant. 32 personsout of 100 people choose their investment companythemselves. For the purpose of selling policy FinancialConsultant will give more effective work. Generally in thissector mostly work are done through contact and financialconsultant use their contacts for the purpose of selling

policies. Generally what happens that a specific area iscovered by financial consultant who helps in improving inmarket share of insurance company.

5) When I was doing phone calling for the recruitment of

financial

consultant then most of person was denying for the job of financial

consultant because HDFC Standard Life gives onlycommission to the financial consultant on each policy.Mostly person don’t want to work on commission basis. Weall know that insurance sector have lots of money and hereyou can earn enough money but it is a challenging job. If company will give fix salary to the financial consultant thenit will get more financial consultant. A financial consultantgets minimum 8% and maximum 40% commission on thepremium. Fix salary will entice more public for the financialconsultant.

Q6) Have you ever invested your money in HDFC StandardLife?Ans:- From 100 person ten person said they have investedtheir money in this company.Certainly the market share of this company is notcomparable to the

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LIC but when we talk about private sector companies; allcompanies are moving around this minimum value. Tilltoday mostly people want to invest in public sector bank likeLIC. Customer is loyal for LIC. But HDFC Standard Life is also

trying to increase its market share.

Q7) Have you gotten calls for the investment in HDFCStandard Life forinsurance?Ans:-yesNoOut of hundred people only 32 people have gotten callsfor investment in HDFC STANDARE LIFE. This data

showing that people is getting call for investment butonly few invest their money. It shows that It has to improveits marketing system and the recruit more financialConsultant for providing better service so that more persontake interest in it.Analysis of the recruitment of Financial ConsultantIn the recruitment of financial consultant I have recruited 12financialconsultants. In the process of recruitment of financial

consultant I found that most of the person generally doesn’twant to work on commission basis. I have recruited himhaving shown the dream like this:-I have divide market on two parts. In the first part I havedivided people into two parts 1st who are businessman and2nd employ or student.1st Business man:-

There are certain benefits if any businessman joinsinsurance sector like HDFCSL as a financial consultant. Thetable is given below.

A Business man

a. Performance appraisal of the employb. Tax savingc. 150% saving of incomed. Better opportunity forgrowing fasterBusiness mane. It will give back support

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f. Build your confidence in thediversesituation

g. Fill power and energy

because it willgive uh. support of both employ andfinancialcondition.

2nd Employ or Student:-For the recruitment of employ and student I havemade dreams which suitthem. The benefits regarding FC if they will be a FC aregiven below.

Student or employee

a. Better opportunity to earn extraor if youare a student then you can earn ordrawyour pocket expenses through FC.b. You will learn that how topresent your

view to other.c. You will get better opportunityto learnmarketing skill.d. You will get better stand tounderstandStudent or employee Organizationbehavior.e. In the adverse situation it will

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help youfinancially.f. In a hour per day you can earn20thousand

per month.g. You will meet with differentpersonalitythis may help you in the future.

In the analysis part of the recruitment of financial consultantI can saythat the work of financial consultant is very beneficial for the

people and if we give them better presentation and try tounderstand him how it will help you then they will definitely join it. In the market there are 17 insurance companies. Allthese company are recruiting financial consultant butHDCFSL is giving a normal target to their financial to their FCwhich can be easily achieved by FC. That’s why taking moreinterest in this HDFCSL while the charges formaking FC is Rs.925 and Rs.825.

During the recruitment of financial consultant I haverecruited 12financial consultants. In these consultants 4 people is doingMBA, 1 people is doing MA. and 9 are the employ of differentorganization while the other are doing 1 are doing BCA.I have tried to fulfill q score of FC. During the recruitment of financial consultant I have recruited 12 FC while 08 are inthe process. In this twenty 8 person are doing their studyand because of their exam they don’t agree to join it thistime but after exam they will consider one more time about

it. Rest people are providing time of meeting again andagain but I’ll make them FC.

The main competitor of HDFCSLIC is ICICI PRUDENCIAL andLIC. Today HDFCSLIC is no. one position in insurance. It hasalso gotten most trusted company award of 2007. Still todaypeople give more priority to LIC then the other insurancecompany but they don’t know it gives 40% commission tothis FC on the first premium but LIC gives only 15 %

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premium to their FC. HDFCSLIC gives priority to quality only.Quantity doesn’t matter for it, but other company like ICICIgives priority to quantity then quality. I can say that thecriteria, view, vision, mission of HDFCSLIC is not comparable

to the other company and because of these it gives morereliability, and benefits to their employ and their customer.In Delhi and MP region is spreading their branch for moreand more market share andhelp in getting business.

FINDINGS

Customers are less aware about the private insurance company inmarket. Some customer are like to join HDFC as FCs because it is aPart-time. Many professions like CA, tax planner want a corporate

agency rather than to be a financial consultant.HDFC is too selective in making a FC rather than to appoint anyone like LIC.

1).Customer don’t want to join as financial consultant because it’s oncommission basis they want job on salary basis.

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2)Educated customers are now vending towards private insuranceCompanies, due to the attractive packages and services provided byvarious new insurance companies.

3)LIC has created a branded image in 3-4 decades, due to whichnew insurance companies are facing trouble in capturing marketshare.

4)If the customers are joining HDFC the segment is more of taxconsultant, investment for consultant and other people who areengaged in investment business that is because they want todiversity their portfolio.5)HDFC SLIC is having good retention strategies for their financial

consultant. Reason for not joining HDFC SLIC. 6)Associated with an other company. Do not have time Low sales.Private Player. Lack of awareness.

7)Only 72% 0f the people have insurance out of the sample size of

100

8)LIC has the largest market share(40%) in Jhansi

9)Most of the people invested in Unit Linked Insurance Plans in

comparasion to traditional ones

10) .“Money back” is the most preferred policy among all the age

groups

11) People who have invested in traditional insurances plans of Bajaj

Allianz are not satisfied with the quality of service provided by the

company

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12) The customers of HDFC Standard Life are more satisfied with the

service provided by the company in comparasion to Bajaj Allianz.

13) The maximum number of people who have taken insurance

comes under the age group “35-50”

14). The public sector insurance company(LIC) is performing well in

Jhansi in comparasion to private ones

Why HDFC is better …?

Investment returns: investment returns and business growth providedby HDFC is validated by bajaj Capital report. HDFC pacify the needof invertors up to healthy level and make the strong relationship withthem.Financial Background and Experience: HDFC existing in the marketsince 1977. It has a very handsome experience in the field of financebecause it completely involved in finance Sector only where as the

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others are running in many other field also like Reliance (Petroleum,Textile, Telecom etc.)Ethics and Values: HDFC is an ethical and cultural organizationwhich prevents the false selling and prohibit the false commitment to

the customer.Sales Force: Properly trend licensed and Educated People are thestrength of the company. So that they could give the best customer service.Huge branch network HDFC is having 450 branches in allover the country.Online accessibility : It makes the process faster and make thecustomer delighted.Who can be the financial consultant: ?Section 42(4) of the amended Insurance Act, 1938 states an agent tobe one who is not: A minor.

Found to be sound mind by a court of competition jurisdiction.Found guilty of criminal background.Found guilty of having knowingly participated in or connived at anyfraud /dishonesty or misrepresentation against an insured.

SUGGESTION

When we talk about suggestion I think I have smallexperience of this sector but whatever I have pointedout which are thus.In the recruitment of financial consultant I found thatmostly persondon’t want to give rs.925 or rs.825. I have faced somedifficulties

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when they don’t agree to give this much amount. If thecompany willless this charge then it will get more FC.It should organize weakly meeting with FC for the business

and giveappraisal training to FC. It works as a performance appraisalof theFC. It should give monthly party to the FC for the attachmentwith theindustry. It should give canopy facility to CDM or RC for therecruitment of FC and if it will give canopy facility to FC then they can give

morefacility. Generally we buy only that thing whatever we see. Itmeans that itshould spend more on advertisement. Other insuranceindustry likeLIC and ICICI advertise mostly through banner on metrostation, onroad and advertise in the cinema hall. Add more and more

movie hallfor the advertisement. The role of recruitment is not easy so it should increasecommissionor give salary instead of commission so that RC will takemoreinterest in the recruitment on financial consultant. Regular canopy should be established such areas likemetro Stations,

college campus, and malls, supermarket, and hypermarketfor thepurpose of recruitment FC and getting business form FC.

It should launch new innovative insurance policy whichwill entice people for insurance in HDFCSLIC.

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• Since the organization has strict control, it acts as another barrier for getting data.

• Another difficulty was very limited time-span of the project.

• Respondents do not want to give their details and identity.

CONCLUSION

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CONCLUSION

HDFCSLIC is the renounce industry in the insurance sector. Itbelieves in quality not in quantity. HDFC have total 12 groupcompanies. It is the first insurance company who has gottenthe license of insurance in firstly. It has started its insuranceindustry with the joint venture of U.K. based standard lifeinsurance company.In the insurance sector main work is done by the financialconsultant who brings business to the industry. It gives morepriority for the recruitment of financial consultant that’s whyit has setup 5-qscore. It gives priority that is professional likeas MBA, CA, ENGINEERS, DOCTORS,LAYERS AND OTHER PROFESSIONAL.During summer training I have given presentation in study

centre of IGNOU and SIKKIM MANIPAL and phone call, and try tocontact those person to whom I know and contact them forthe purpose of financial consultant. In this process I haverecruited 12 people who are either CA, MBA, SOFTWAREENGINEER, STUDENT, OR EMPLOY OF THE ORGANISATION.It gives more facilities to their employ and provides betteropportunity to their employ for promotion because it hasminimum target for fulfillment. FC have to give 36 policy or

360 lack premium with in six months which less incomparison to the other insurance industry and for MPregion where the transaction of money is too high. FC haschances to become sales development manager with in sixmonth months when he fulfills the target. The post of SDM isbased on payroll. He will get packageof 2.75 lack per year.

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India is one of the most lucrative financial services market inthe world. The insurance market in India is estimated to bearound 400Bn growing at an astounding rate of 30% p.a. Stillthe experts believe that the potential is largely untapped.

The insurance market is dominated by the public sectorgiant LIC with a market share of around 71.4%. With theprivate players leading the growth story, this sector iswitnessing more marketing actions than even the FMCGsector.

Traditionally insurance are sold through direct selling Thereasonbeing purely the nature of product warrants directcommunication with the consumer. Kilter categorizesInsurance as an "Unsought" product. Unsought

products are those which are ranked lowest in termsof consumer interest.Consumers may not be even aware of either the needor existence of this product. Historically, Indian insuranceproducts are sold for wrong reasons.People buy insurance to avail the tax benefit and not toensure protection and LIC was happy to oblige. Hence mostof the sales talks start with the question " How much do youpay tax?" . Little money was spent on brand building

because there was no competition for LIC. Things have now changed. With the increasing financialliteracy, volatile economy and uncertain future areprompting Indians to look seriously at insurance as a meansfor protection rather than tax saving instrument. With moreprivate players entering the domain, the issues of differentiation and branding became important.HDFC Standard Life Insurance (HDFCSL) is one of the majorplayers in the insurance market. One of the first privateinsurers to enter the market, HDFC SL entered the scene in2000. It is a joint venture between the housing finance majorHDFC and the UK insurance giant Standard Life.Now a days we are seeing a lot of media action from thiscompany.Although a slow starter HDFC SL was having a small share of the pie. It was eclipsed by ICICI prudential with its media andsales blitz making it second largest player in the Insurancemarket. 2006 saw a shake up in this market with Bajaj

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Allianz edging out ICICI from the second spot . Bajaj have amarket share of around 8% and HDFC SL and ICICI fightingat 3rd place with around 7.5%.HDFC is currently focusing on The Pension Plan and the Child

Plan aiming to cash in on the potential of these segments. The pension market in India is estimated to be around 1000crore with a huge potential for growth in the future.

The change in the demographics is going to drive thepension market in India. Traditionally in a Joint family, therewas an inherent protection for elders. With the urbanizationand the evolution of Nuclear Urban Family ( NUF) , elders areoften forgotten. Out of the 314 men workers in India only11% has some sort of old age security. People earlierdepend on social security products like EPF and PPF to build

a corpus for their golden years.It is this potential that has encouraged HDFC to promote itspension plans.Introduced in 2002, this product has been well received bythe consumers. The ads are well executed and revolvearound the positioning of "Respect Yourself" Thetarget segment being the 30 year old family man. Thebasic theme of the campaign is to appeal to the self respect of these men who are in their prime of their career.

"Even after retirement let your hands give rather thanreceive" is one of the best themes for a pension plan. Since Iam in that category, these ads strike a chord in me andremind me of the need to plan for my retirement. The sametheme is carried to the Child plan also.Although these campaigns will help to invoke an interest in

TG, the market is in its nascent stage and lot of convincinghas to be done to crack this huge market. One of thestumbling block being the expensive annuity plans. Forexample, it takes a 2 lakh corpus to generate Rs 1000 permonth pension.Also if you put 10000 per month in a pension plan if you are30 yrs old, what you will get after 20 years is a monthlypension of 10000. (Correct me if I am wrong). So it looksunattractive in the first look compared to MFs. HDFCStandard Life has correctly identified the pulse of the targetmarket and is all set to reap the benefits.

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ABREVIATIONS

1- HDFC- Housing Development Finance Corporation.

2- SLIC- Standard Life Insurance Company.

3- FC- Financial Consultant.

4- SDM- Sales Development Manager.

5- BDM- Business Development Manager.

6- CFC- Certified Financial Consultant.

7- LA- Life Assured.8- SA- Sum Assured.

9- TERM- No. of Years.

10- ADB- Accidental Death Benefit.

11- CI- Critical Illness.

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BIBILIOGRAPHY

BIBILIOGRAPHY

BooksOne authorPhilip Kotler’s marketing management, identifying marketsegment and targets. Page201.Connecting with customer value page 116Magazines

Browser given by HDFCSLMagazine related with HDFCInternetName of sight on net:- hdfcstandard life insurance. comhttp://www.IRDA .com(http://www.persmin.nic.in/)http://www.irdaindia.org/ins_ombusman.htm(URL: http://www.irdaindia.org/)

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[email protected])http://www.icfdc.com 29May 2010http://www .sebi.gov.inhttp://www.valuenotes.com

http://www.moneycontrol.comhttp://www.centraldepository.comhttp://www.hdfcinsurance.com

http://www.hdfcbank.com

http://www.insurance.com

http://www.amfiindia.com/

http://www.dspml.com

http://www.economictimes.comhttp://www.investopedia.com/university/mutualfunds/default.asp

http://news.moneycontrol.com/mf/glossary.php

http://www.mutualfundsindia.com/resourcecentre.asp

http://www.valueresearch.com

Reference: To obtain more information regarding present study

and to subordinate it with theoretical proof following references

were made.

Books Referred:

Personal management.

Book of license training programme for insurance

advisers.

Insurance Principles and Practice- By Noorul HasanAmbar Prakashan Kendra, Lucknow,2009 Edition

Marketing Management, Rajan Saxena

Kothari C R, ‘Research and Methodology- Methods &

Techniques’, New Age International (P) Ltd., 2004

Journals and Magazines etc.

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http://www.hdfcinsurance.com/

http://www.insurance.com/


http://www.dspml.com/

http://www.economictimes.com/


http://www.valueresearch.com/

http://www.hdfcinsurance.com/

http://www.insurance.com/


http://www.dspml.com/

http://www.economictimes.com/


http://www.valueresearch.com/



- No

Q3. Which is your favored insurance company?

LIC

ICICIHDFC

Birla sun life

Bajaj Allianz

Others

Q4 Are you interested in the products offered by HDFC SLIC?

Yes

No

Cant say

Q5. What is your main concern while taking an insurance policy?

Tax benefit

Security

Investment/Savings

Q.6 Does this policy satisfy your financial needs? (Please rate on

the scale of 1 to 10 with 1 being least satisfied)

Q.7 Please express your opinion for the premiums paid for the

above policy?

-Very high [ ]

-High [ ]

-Moderate [ ]

-Low [ ]

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-Very Low [ ]

Q.8 how do you come to know about this policy? (Please tick).

-Advertisements [ ]-Friends and relatives [ ]

-Direct selling agents [ ].

- Others (please specify) _____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated

with this policy? (Please give appropriate details about it).

_______________________________________________________

_______________________________________________________

____________

10. Are you satisfied with the incentives associated with your

policy?

-Highly satisfied [ ].

-Satisfied [ ]

-Moderate [ ]

-Unsatisfied [ ]

-Highly Unsatisfied [ ].

Q11. According to you, in what areas should the insurance companies

work upon?

Less complicated procedures

Fewer premiums

More returns

Transparency

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Q12. Do you think that services have improved after allowing private

players in insurance sector?

- Yes

- NoYour comments on HDFC SLIC

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