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TABLE OF CONTENTS

INTRODUTION

An Overview of Indian Insurance Sector :-

I. Meaning of Live InsuranceII. What is Live Insurance?III. Why Live Insurance?

IV. Scope of Live InsuranceV. Type of Live InsuranceVI. Benefits Of InsuranceVII. Life Insurance MilestonesVIII. Privatization ObjectivesIX. Potential Of The Insurance Sector

Part A) Brief profile Of The Company

I. About IRDAII. About HDFCIII. About Standard LifeIV. HDFC Standard Life The PartnershipV. Incorporation of HDFC Standard LifeVI. About HDFC Standard LifeVII. Recent Marketing InitiativeVIII. Financial DetailsIX. Product Details

a) Fundsb) Individual Productsc) Group Productsd) Tax Benefits

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Part B) Windows To The Project

a) DESK/OFFICF/FIELD BASED TRAINING:

I. Description Of The Assigned TaskII. Nature Of Work III. Procedure And MethodologyIV. Outcome And ResultsV. Learning And Experience

b) SURVEY/RESEARCH/FIELDWORK BASED TRAINING :

I. Topic Of Research

II. Research objectivesIII. Research MethodologyIV. Analysis And InterpretationsV. SWOT AnalysisVI. Limitations Of StudyVII. Suggestion and RecommendationsVIII. conclusion

Annexure

I. Questionnaire For OrganizationsII. Questionnaire For CustomersIII. Bibliography

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MEANING OF INSURANCE

Insurance or assurance, are devices for indemnifying or guaranteeing an individual against loss.

Reimbursement is made from a fund to which many individuals exposed to the same risk have contributedcertain specified amounts, called premiums. Payment for an individual loss, divided among many, does fallheavily upon the actual loser. The essence of the contract of insurance, called a policy is mutuality. Themajor operations of an insurance company are underwriting, the determination of which risks the insurercan take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter isresponsible for guarding against adverse selection, wherein there is excessive coverage of high riskcandidates in proportion to his coverage of low risk candidates. In preventing adverse selection, theunderwriter must consider physical; psychological, and moral hazards in relation to applicants. Physicalhazards include those dangers which surround the individual or property, jeopardizing the well-being of theinsured. The amount of the premium is determined by the operation of the law of averages as calculated byactuaries by investing premium payments in wide range of capital and the rank among the nations largestintuitional investors.

LIFE INSURANCE

Life insurance is a contract providing for payment of a sum of a sum of money to the person assured or, tothe person entitled to receive the same, on the happening of certain a event. A family is dependent for itsfood, clothing and shelter on the income brought by the familys breadwinner. The family is secured solong as this breadwinner is around

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and is capable of earning. A sudden death (or disability) may leave the family in a financially difficultsituation. Uncertainty of death is inherent in human life and this uncertainty makes it necessary to havesome protection against the financial loss arising form untimely death. Life insurance offers this protection.

Life insurance is all about making sure your family has adequate financial resources to make those plansand dreams come true. It provides financial protection to help your family or business to manage after yourdeath.

The earliest type of life insurance was started by the Greeks and Romans. Contributions were made by allsurviving members for the burial cost of a member. In case of the death of a member the cost of burial wasout the contributed fund.

In the 17 century, the tontine annuity system was introduced where associations of individuals were formedwithout any reference to age, and a fund was created equal contributions from each member. The sumcollected was invested, and at the end of each year the interest was divided among the survivors. The lastremaining survivor received both the years interest and the entire amount of the principal.

The first organized life insurance company was founded in 1759 in Philadelphia, in North America.Subsequently, over the past three centuries, numerous life insurance companies sprung up, making lifeinsurance a popular for protection coupled with investment.

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WHY LIFE INSURANCE?

Life insurance has come a long way from the earlier days when it was originally conceived as a riskcovering medium for short periods of time, covering temporary risk situations, such as sea voyages. As lifeinsurance become more established, it was realized what a useful tool it was for a number of situations,including:-

A) Temporary Needs/Threats:

The original purpose of life insurance remains an important element, namely providing forreplacement of income on death etc.

B) Regular Saving:

Providing for ones family and oneself, as medium to long term exercise (through a series ofregular of premiums). This has become more relevant in recent times as people seek financialindependence for their family.

C) Investment:

Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlikeregular saving products, investment products are traditionally lump sum investment, where theindividual makes a one off payment.

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D) Retirement:

Provision for later years becomes increasingly necessary, especially in a changing cultural and socialenvironment. One can buy a suitable insurance policy, which will provide periodical payments in ones oldage.

Let us take and example to understand the need for insurance:

Mr. Vasan is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two childrenaged 3 and 7 years. They stay in a rented accommodation, where the rent is 15,000 rupees per month. Mr.Vasan has taken up a loan of Rs. 2 lakhs. His monthly earnings on an average are 40,000 rupees. Mr. Vasanpasses away in an unfortunate road accident. What are some of the financial implications of his death on hisfamily?

There may be several financial implications on his family. Some of these are:

a) The monthly income, previously provided by Mr. Vasan would stop.

b) His wife and children may have to seek financial assistance from other relatives.

c) His wife may not have enough money to play back the loan of Rs. 2 lakhs.

d) The family may have to move into a cheaper accommodation.

e) His widow may have to take up work to earn money.

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f) The education of his children will suffer.

This simple example illustrates the impact of premature death can have on a family, where the main earnerhas no life cover.

Had Mr. Vasan taken life cover, his family would not have faced such hardships in the event of hisunfortunate death. A simple life insurance policy could have provided Mr. Vasans family with a lump sumthat could have been invested to provide an income equal to all or part of his income capacity.

In simple words, insurance protects against untimely losses. Insurance has been found useful in the lives ofpersons both in the short term and long term. Short term needs like sudden medical costs and long termneeds like marriage expenses etc can be met with using life insurance.

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Scope of Insurance

Insurance products can be used in various forms according to the needs which vary form person to person.The scope of insurance is immense.

Pure:- Term insurance

Saving :- endowment, money back policy

Investment:- Single premium policies

Income/pension:- annuities

Market/unit linked:- equities

Whole life policies

Cover the insured for life. The insured does not receive money while he is alive; the nomineereceives the sum assured plus the bonus upon death of the insured.

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Endowment policies

Cover the insured for a specific period. The insured receives money on completion of theterm and is not covered thereafter.

Money Back policies

The nominee receives money immediately on the death of the insured. On Survival theinsured receives money at regular intervals during the term. These policies cost more thanendowment with profit policies.

Annuities/children policies

The nominee receives a guaranteed amount of money at a pre-determined time and notimmediately on death of the insured. On survival the insured receives money at he same pre-determined time. These policies are best suited for planning childrens futureeducation and marriage costs.

Pension schemes

These are policies that provide benefits to the insured only upon retirement. If the insureddies during the term of the policy, his nominee would receive the benefits either as alump sum or as a pension every month.

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TYPES OF LIFE INSURANCE:

Of more than 100 different kinds of life insurance products in the market today, all can be grouped into oneof five main categories:

1) TERM INSURANCE

Term insurance is relatively cheap especially if you dont have many assets or emergency reserves, but dohave financial dependents. Many term policies offer a guaranteed renewable clause which means your rightto renew the policy is unrestricted.

Disadvantages of term insurance include the fact that premiums increase at the end of each renewal termbecause as you get older the chances of your dying increase. Consequently, term insurance may be the bestoption includes:

You just want life insurance protection but at he lowest rate possible.You have other assets investments of retirement and do no plan to use life insurance to cover that need.In face, you do not plan to need any life insurance protection after age 60.

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2) WHOLE LIFE INSURANCE

Sometimes called Straight Life Insurance, whole life gives you lifelong protection. Your premiums at hebeginning are higher to help cover the costs of providing youre that protection later in life when termpremiums get costly. The company averages out the cost of giving you life insurance protection for yourentire life, then, overcharges you when youre young and undercharges you when youre older. Whole livespolicies build cash value which you can borrow form the company or redeem by cashing in the policy.

Advantages of whole life include the tax-deferred interest you earn on your cash value (which becomes tax-free if you never take the cash value out of the policy).Loans on the cash value of the whole life are generally less than that charged for loans available elsewhere.Regular premium payments must be made on whole life or the policy will lapse. Outstanding loans whenyou die will be subtracted from the amount paid to your beneficiaries. He interest rate credited to his cashvalue of the policy is usually far below what your funds could elsewhere. Cash value grows relatively

slowly during the early years of the policy. This means than if you cash in a whole life policy after onlyfive years, you get relatively little back fort he relatively higher premiums youve paid.

Whole life is best if you have no self-discipline or tolerance for risk when you save or invest.

3) UNIVERSAL LIFE

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First issued in 1980, the universal life insurance policy is a combination of term insurance and a currentlytax-deferred saving plan. You are guaranteed a minimum rate of return, but the actual interest rate paid onthe saving portion is flexible. After you make the initial premium ailments at any time and for anyamount. If you dont regularly pay premiums, what is in the savings part will cover the cost of regular terminsurance. Universal life allows youre to increase or decrease the amount of term coverage you have at anytime.

Advantages of universal life include that he savings part of the policy usually grows at a faster, higher ratethan the cash value of whole life. You protection under universal remains level while you saving doincrease. Earned interest on savings is tax deferred. For a service charge, you can make partialwithdrawals from the saving, and interest paid to borrow form you sanding is minimal.

The flexible premium and flexible death benefit in universal life allows you to change your policy as yourfinancial needs change.

The target premium and flexible death benefit in universal life allows you to change your policy as yourfinancial needs change.

The target premiums which you must deposit to realize saving growth and to cover the cost of the terminsurance are based not on a minimum guaranteed rate, but on projected interest return. So if interest ratesdrop, you may have to pay more in premiums to maintain your policy than what you had originally thought.Initial fee and charges mean your saving grow very slowly fort the first 10 years of the policy. Always lookat him policys surrender value rather than the stated account value. Term insurance costs more whenincluded in a universal life policy than if purchased alone.

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4. VARIABLE LIFE

A guaranteed minimum death benefit is sated but it may increase if the cash value of the policy goes up.The cash value of variable life is invested in your choice f stocks, bonds, money market funds, and anycombination. If you investment choice performs well, the cash value of your variable life policy increases,but a minimum cash value may be guaranteed. Premiums are fixed and level; they are roughly the same aswhat you would pay for whole life. Many variable life policies also include as annuity feature. Sales probefor variable for variable life must be registered with the National association of Securities Dealers.

A disadvantage of variable life is that you may forfeit the entire cash value of the policy if your choseninvestment mix performs poorly. Your contract is effectively rewritten if you make partial withdrawals.You receive investment performance reports but no reporting of how your total life insurance premium isspent. In the early years of the policy , the cash surrender value is small because much of the premium youpay goes to cover company expenses and fees. Variable life is best considered a long-term, big-ticket

financial commitment.

If your need a tax shelter and are an experienced, risk-tolerant investor, variable life may be the best lifeinsurance option for you.

5) VARIABLE UNIVERSAL LIFE INSURANCE

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This policy is a combination of variable and universal life insurance. You can choose where to invest yourpremium dollar and assume all the investment risks associated with that choice like variable life insurance.Like universal life, you can very your premium payments and change the death benefits of the policy.

BENEFITS OF INSURANCE:

Safeguards oneself and ones family for future requirements

Peace of mind in case of financial loss

Encourage savings

Tax rebate

Protection from the claim made by creditors

Security against personal loans, housing loans, or other type of loans

Provide a protection cover to industries, agriculture, women and child

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Life Insurance Milestones:

181 Oriental insurance company set up in Calcutta

1912 The Indian Life Assurance Companies Act enacted - 1 Statute

1928 The Indian Insurance Companies Act enacted to enable to the government to collectstatistical information about both life and non-life insurance companies

1938 Passing of the insurance Act

1956 Nationalization of life insurance companies and formation of LIC

1956-99 Monopoly of LIC for nearly 44 years

19999 Privatization initiated

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Privatization Objectives:

Broad

Increased coverage of the population

Specific

Customers have a wider choice and range of products

Improved service standards to customers

Economic

Mobilization of savings

Today there are 26 direct insurance business companies 13 each in life and non-life insurance.

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Potential of the Insurance Sector

Only one out of five insurance population in India have insurance Coverage.

In term of a Insurance premium Per Capital and premium per GDP, India ranks as one of thelowest in the world.

Life Insurance premium constitute only 9 percent of Domestic Saving.

By 2010 100 millions elderly look to planning for old age pension and annuities.

More then 325 millions labour forces have no social securities.

Premiums per capita 9US$) for the years 2006

Country Life Non-Life Total

United States 1611.4 1540.4 3152.1

Canada 757.2 759.6 1561.8

Switzerland 2583.3 1570.6 4153.9

United kingdom 3028.5 730.7 3759.2

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Japan 3165.1 808.2 3973.3

South Korea 935.6 298.5 1234.1

Hong Kong 892.9 269.1 1162.0

Malaysia 86.4 64.6 150.9

India 7.6 2.3 9.9

Insurance Penetration in India (Premium as a % of GDP)

Year Life Non-Life Total

2003 1.29 0.55 1.84

2004 1.39 0.56 1.97

2005 1.39 0.53 1.93

2006 1.77 0.55 3.32

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IRDA (INSURANCE REGULATORY AND DEVELOPMENTAUTHORITY)

IRDA was constituted by an act of parliament. The authority is a ten member team consisting of:

a) a chairman

b) five whole-time members

c) four part-time members

1) Subject to the provisions of section 14 of IRDA Act, 1999 and other law for the time being in force, theauthority shall have the duty to regulate, promote and ensure orderly growth of the insurance business andre-insurance business.

2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers andfunctions of the authority shall include:-

a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel suchregistration;

b) protection of the interests of the policy holders in matters concerning assigning of policy,nomination by policy holders, insurable interest, settlement of insurance claim, surrender value ofpolicy and other terms and conditions of contracts of insurance;

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c) specifying requisite qualifications, code of conduct and practical training for intermediary orinsurance intermediaries and agents:

d) specifying the code of conduct for surveyors and loss assessors;

e) promoting efficiency in the conduct of insurance business;

f) promoting and regulating professional organizations connected with the insurance and re-insurance business;

g) levying fees and other charges for carrying out the purpose of this act;

h) calling for information from, undertaking inspection of, conduction enquiries and investigationsincluding audit of the insurers. Intermediaries, insurance intermediaries and other organizationsconnected with the insurance business;

i) control and regulation of the rates, advantages, terms and conditions that may be offered byinsurers in respect of general insurance business not so controlled and regulated by the tariffadvisory committee under section 64u-of the insurance act, 1938 (4 of 1938);

j) specifying the form and manner in which books of account shall be maintained and statement ofaccounts shall be rendered by insurers and other insurance intermediaries;

k) regulating investment of funds by insurance companies;

l) regulating maintenance o margin of solvency;

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m) adjudication of disputes between insurers and intermediaries or insurance intermediaries;

n) supervising the functioning of the tariff advisory committee;

o) specifying the percentage of premium income of the insurer to finance schemes for promoting andregulating professional organizations referred to in clause(f);

p) specifying the percentage of life insurance business and general insurance business to beundertaken by the insurer in the rural or social sector; and

q) exercising such other powers as may be prescribed.

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Housing Development Finance Corporation Limited

A gainst the milieu o rapid urbanization and a changing socio-economic scenario, the demand for housinghas grown explosively. The importance of the housing sector in the economy can be illustrated by a fewkey statistics. According to the national Building Organization(NBO), the total demand for housing isestimated at 2 million units per years and the total housing shortfall is estimated to be 19.4 million units, ofwhich 12.79 million units is from rural areas and 6.64 million units from urban areas. The housing industryis the second largest employment generator in the country. It is estimated that the budget 2 million unitswould lead to the creation of an additional 10 million man-years of direct employment and another 15million man-years of indirect employment.

Having identified housing as a priority area in the ninth five years plan (1997-2002, the national housingpolicy has envisaged an investment target of Rs. 1,500 billion for this sector. In order to achieve thisinvestment target, the government needs to make low cast funds easily available and enforce legal andregulatory reforms.

BACKGROUD

Incorporated in 1977 as a public limited company

To specialize in provision of housing finance to individuals, co-operative societies and the corporate sector

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First private sector retail housing finance company

HDFC is listed on both BSE and NSE

Market capitalization (June 2002) Rs 79 billion US $1.6 bn

HDFCs Strengths-Home Loans

Low average loan to value ratio

Debt averse nature of borrowers

Steady level of prepayments

Growth in urban market/salaried class

Quality of underwriting

Geo graphically dispersed

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HDFC Deposits

Major source of funding 45%

Increase in deposit base from:-Rs.14.58 billion in FY02 of Rs. 12.41 billion

Retail deposits constitute 82% of total deposits

Over 52,000 Deposits Agents and over 1.3 million Depositors

A verage term at origination-4 years

AAArated by CRISIL AND ICRAfor eight consecutive years

Gross mobilization of retail deposits

-FY03- Rs.91.22 bn; FY02-Rs.32.21 bn; FY01-RS. 27.17 bn

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Corporate Strengths of HDFC

Strong Brand

Customer base of over 2 million

Stable and experienced management

High quality loan portfolio

Provision for contingencies

Constant technological upgradation of systems

One of the best capital adequacy ratio

Awards and Accolades

Indias best managed company by Asiamoney magazine 1995 and 1996

Most competitive Indian company by Euromoney-1997

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One of the 5 best Indian Boards by Business Today-1997

Best presented accounts 1994-95 and 1996-97 3rdplace-in the SAARC region by the South Asian federationof Accounts in the financial sector category

Rated as one of the best companies in India for strategy and management and investor relations byAsiamoney-1998Excellence in service industry by the Indian Institute of Marketing Management and Top ManagementClub, Pune 1998

Shield for the presented accounts for banks and financial institutions- over 11 time 8 years in a row

1999 IMC Ramakrishna Bajaj National Quality Award in the service category

CII-EXIM Bank Commendation Certificate for the commitment to Total Quality Management-2000

Asiamoney declared HDFC as the second best managed company I n India-2001

Euromoney identified HDFC as one of Asias top 10 best managed companies in the finance sector-2001

Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor Research Group-2002

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The Standard Life Insurance Assurance Company

Background

Foundation in 1825

Mutual Life Insurance Company in Europe

Assets under management over Rs. 5,81,000 crores 83.2 bn

Presence

Head Office- Edinburgh, Scotland UK

United Kingdom 31 branches

Canada 11 branches

Ireland 7 branch

Germany 1 branch

Austria 1 branch and sales office

Spain 31 branches

Hong Kong 1 representative office

China 2 representative office

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Financial Strengths of Standard Life:

Total assets under management: Rs.5,81,000 Crores

New premium income 2001: Rs.58,000 Crores

AA2 rated by Standard and Poors and Moodys

Unrivaled Reputation For Quality

Years Award

2002 Company of the Year

2001 Best Personal Pension Provider

2000 Company of the Years

1999 Company of the Years

1996-96 Company of the years

1995 4 star service award

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1992-94 Overall best company

1991 3 star service award

1990 Best mortgage services

Experience In The Indian Market

First market entry-1847

Innovative products and processes

Last claim settled in 1997

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HDFC STANDARD LIFE THE PARTNERSHIP

HDFC Standard Life Insurance is a joint venture between Indias largest housing finance provider,HDFC and Europes largest Mutual Life Assurance company the Standard Life Assurance Company(U.K).

The Standard Life Assurance Co. is one of the very few insurance companies in the world to have receivedAAA ratingfrom two of the leading international credit rating agencies, Moodys and Standard & Poors.Standard Life was recently voted Company of the Decade in U.K. by the Independent Brokers calledIFAs.

HDFC is a well-known & trusted name in India. Since its inception in 1977 they have maintained theirposition as the premier Housing Finance Institution in the country. They value integrity, commitment,teamwork and excellence in customer service.

HDFC and Standard Life first came together for a possible joint venture, to enter the life insurance market,in January 1995. it was clear from the outset that both companies shared similar values and beliefs and astrong relationship quickly formed. In October 1995 the companies signed a 3 years joint venture

agreement.

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

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The next three years were filled with uncertainty, due to changes in government and ongoing delays ingetting the IRDA (Insurance Regulatory Development Authority) act passed in parliament. Despite thiscompanies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource made available. Aroundthis time standard life purchased 2% of Infrastructure Development Finance Company Ltd. Standard Lifealso started to use the services of the HDFC treasury department to advise them upon their investments inIndia.

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

Around this time Standard Life purchased a further 55 stake in HDFC and a 5% stake in HDFC bank.

In a further development standard Life agreed to participate in the asset management company promoted byHDFC to enter the mutual fund market. The mutual fund was launched on 20 th July, 2000.

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INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANYLIMITED

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life InsuranceCompany Limited.

Out ambi6t5ion from as far back as October 1995 was to be the first private company to re-enter the life

insurance market in India. On 23rd

of October 2000, this ambition was realized when HDFC Standard Lifewas the only company to be granted a certificate of registration.

Stake Composition

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HDFC are the main shareholders in HDFC Standard Life, with 81.4% stake while Standard Life owns stakeof 18.6% given Standard Lifes existing investment in the HDFC group, this is the maximum investmentallowed under current regulations.

HDFC Standard Life has a log and close relationship built upon the shared values and trust. The ambitionof HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which allother insurance companies in India are measured.

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About HFDFC Standard Life

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 best value for money, and set the standards in the industry. In

short, The most obvious choice for all.

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Mission Statement

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

This does not just mean being the largest or the most productive company in the market, rather it is acombination of several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

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Values of HDFC standard Life:

Integrity

Innovation

Customer Centric

People Care

Team Work-One for all and all for one

Joy and Simplicity

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Organization Structure Of HDFC Standard Life

Managing Director

General Manager

Zonal Manager

Regional Manager

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Sales Manager

Assistant Sales ManagerSales/Branch Development Manager

Financial Advisors

Financial Consultants

Why HDFC Standard Life?

Brand Value and Recognition of the partners

First Private Life Insurance Company of India

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First Company to Declare Bonus

Robust operation and distribution back ups

Presence in 163 locations-one of the largest branch network

Market Share of 13.5%

Insures one life every 3 minutes

Total Premium Income:232 Crores in FY 2005-2006

Winner of Outlook Money 2003 and 2004 award as best New Insurer

Regarded as Indias Most Respected Private Life Insurance Company of India by Outlook December 05edition.

Performance glimpse:

HDFC Standard Life Insurance is the First Private Sector Life Insurance Company to be granted a licence.It has increased its market share from 0.76% to 1.12% by collecting a premium income of 209bn.in theyears ending March 2003-04.It has registered an premium growth rate of 61.88% over previous year.

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Unique Selling Proposition

According to Mr. Deepak M. Satwalekar, the MD and CEO of HDFC Standard Life Insurance CompanyLtd., USP is something that the customer will have to find because life insurance is a long-term processand it is about stability, being conservative. We dont hear about aggressive life insurance companies whosurvive for a longer period.

To be in business when we are talking of an insurance policy for say 30 years, your perspective is differentin comparison to when you are taking a short term loan say a car loan for 3 years. Therefore differentcompanies have chosen different models. Some of them have chosen to be in for the long run while some

have chosen to be in for the short run. For in the short run, you need to have a high valuation of company,for high valuation you need to have high & rapid sales. Higher the sales higher are the valuation & higherthe valuation higher is the price that you can charge.

We would like to be a company at which the people look with trust. They should have faith in us and theyshould believe that we are working for their interest. For e.g. we have recently launched Unit linkedproducts and though there are around 17,000 financial consultants we do not allow all of them to sell theunit linked plans. Only the top 1500 that were trained and appeared for an examination were licensed to sellthe unit linked products. Every month more and more people are trained and assessment is done on thatbasis. Thus, it shows the cautious nature of the company because we do not want any

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mis-selling to be done. The people should understand the risk involved in unit linked products, Thus, wehave trained consultants to help them. That is why reputation and integrity matters a lot in insurance

company. Rampant practice are there in the market to achieve sales but we have made it clear that if wecatch you in such malpractices, which are not in the long term interest of the customer., we will sack thatindividual despite being best salesperson. Thus anything which hurts the long-term interest of the companyis not allowed in HDFC and that is our USP.

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RECENT MARKETING INITIATIVES UNDERTAKENBY THE COMPANY

Head-marketing Mr. Sanjay Tripathy, HDFC Standard Life, Speaks on a TV release

The game for leadership has just begun and the game to reach the top is just beginning to heat up. We aretaking rapid strides in arming ourselves through different initiatives, which will help us to remain ahead ofthe pack.

A new television commercial on Childrens Plan bas been unveiled to build brand awareness of HDFCSL

childrens plan as the best way to secure a childs future.

The research findings indicate that some of the key concerns of parents for their child is not just the dreamsfor their child but he support needed today and their self respect stems form having performed their duty asa good parent. Hence, the key message of our new commercial with our childrens plan , you canindependently support your child in his/her growing years and thereby maintain your self respect.

The new TV commercial has been created for HDFCSL by Dentsu Marcom and has been directed by Prahlad Kakkar, who directed loads of Pepsi commercials. It has been shot at the famous St. Xaviers

College auditorium, Mumbai and has Shreya a famous child

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artist and nationals award winner and other characters from our previous TV advertisements.

It will be followed by a huge campaign across all popular channels across India. The TV campaign will besupported by other media like press, outdoor, radio, sms, internet, cinema, multiplexes and on-groundactivities, promotion in schools, malls etc.

HDFC Standard Life has decided to go for a record investment for promotion, advertisements andpublicity, now. No insurance company in India has invested such a huge amount in promotion till now.

We have to start moving ahead of our competitors. This can happen only if we work as a team aim toSOAR FOR MORE together, we will succeed in achieving our dream.

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HDFC Standard life declares results for the quarter ending June 2006

Premium grew by 132%

HDFC Standard Life Insurance company limited declares its annual result for the financial years endingmarch 31st 200.the company generated new business premium income of rs.486Rs in 2005-2006 registeringa years growth of 132%.the growth was primarily driven by the success of the companys initiative onstructured sales processes based needs and their assessments.

Mr. Deepak Sarwalekar, managing Director & CEO, HDFC Standard life attributed this growth to thequality of life insurance solutions offered by the company. Speaking on the occasion he said, We areequipped to offer some of the best solutions to out customers given our wide range of products and thequality of advice offered by our financial consultants and corporate consultants. Training was of the biggest

initiatives we have undertaken last years. Clearly, this initiative has started giving us good results?

Highlight of financial year 2005-2006

New business premium income up by 132% to Rs. 486 crores. Total premium income of Rs. 687crores as against Rs.298 crores in fy 05-06

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Alternate channel including bancassurance have recorded an impressive growth of over 400% to

contribute 37% to the effective premium income(EPI)

Group business increased to Rs. 32 crores on EPI basis

The average premium doubled to Rs. 17,000

Company products and services available in 444 locations across the country

Over 220% increase in MDRT number over the previous year

HDFC Standard Life tracks its new business premium on the basis of effective premium income (EPI). EPIis calculated by giving only 10% value to a single premium policy and is an internationally acceptedindicators of an insurance companys performance. While the company recorded new business premiumincome of Rs. 486 crores, the EPI figure was lower at Rs. 436 crores. The total premium income (includingrenewal Premium) grew by 130% to touch a figure of Rs. 687 crores. High level of persistency has resultedin a higher level of renewal premiums. High persistency is an important contributor to future profitability.The cumulative sum assured for all policies issued up to March 31, 2005 crossed Rs. 30,000 crores.

In the first full years of offering unit linked products, the structured sales process adopted by the companyhas paid rich dividends. HDFC Standard Life offers, both life insurance polices as well as pension productson a unit linked platform. Unit

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Liked products accounted for over 50% of the new business premium. Given the nature of the unit linkedproducts, the company provided specialized training to a limited number of its financial consultants whowere then tested for their understanding of the products and separately licensed. HDFC Standard Life is

unique in stipulating this requirement for its sales force.

The companys national relationships with HDFC limited, HDFC bank, Union bank of India, Indian bankand Saraswat bank have also helped it reach it reach out to larger number of customers across the country.The alternate channel business grew by over 400% to contribute 37% of the premium income. Thecompany plans to further strengthen relationships through the introduction of products specially designedfor this channel.

HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The

company doubled the number of offices to 104 across the country. Through these offices, the companytoday services customer needs in over 440 towns. The company also increased its depth in existing marketsby increasing its financial consultants who have qualified to become members of the prestigious milliondollar round table (MDRT).From 38 members as on 31st December, 2003 the number has increased t o 124members as on 31st December , 2004.

During the year, the company expanded its portfolio of products by launching plans to coversuperannuation and leave encashment needs, thereby offering a wide range of employee benefit solutions toits corporate clients. Consequently, HDFC Standard Lifes group business saw a hung growth over theprevious financial year. The new

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HDFC Standard Life Insurance Company Limited

COMPANY PROFILE

Incorporate in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residentialmortgage finance institutional in the country. The corporation has had a series of share issues raising itscapital to Rs. 119 crores. The net worth of the corporation as on March 31, 2001 stood at Rs. 2,372 crores.HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai,India. HDFC also has an international office in Dubai, U.S.A with service associates in Kuwait, Oman andQatar.

Standard Life is Europes largest mutual life assurance company. Standard Life, which has been in the lifeinsurance business for the past 175 years, is a modern company expanded in the 19 th century forms its firstpolicy in 1825 the company expanded in the century from its original towns and acquiring other similarbusinesses.

Standard Life currently has assets exceeding over 70 billion under its management and has the distinctionof being accorded AAA rating consequently for the past six years by Standard & Poor,

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license bythe IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred withmany awards. HDFC is rated AAA by CRISIL and ICRA. Similarly, Standard Life is rated AAA both

by Moodys and Standard and Poors. These reflect the efficiency with which HDFC and Standard Lifemanage their asset base of Rs. 15,000Cr. And Rs. 600,000 Cr respectively.

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

Satwalekar is the MD and CEO of the venture.

PRODUCT PROFILE

Before discussing the various products, it is necessary to be familiar with the term premium and also thefunds where this premium is invested.

What are premiums?

Premiums are the periodic payments (usually monthly or quarterly) that the policyholder pays to theinsurance company to purchase and keep a policy enforced.

Flexibility of investment through a range of funds

The policy is fully unitized a range of funds to match your needs and approach to risk. (By risk we meanthe likely volatility in the value of units in the fund.)

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Each investment fund is composed of units. All the units in a fund are identical. You can choose form the

following funds:

Liquid fund:

The Liquid fund invests 100% in bank deposits and high quality short-term money market instruments. Thefund is designed to be cash secure and has a very low level of risk; however unit prices may occasionallygo down due to the use of short-term money market instruments.

Secure Managed:

The Secure Managed fund invests 105 in government Securities and Bonds issued by companies or otherbodies with a high credit standing, however a small amount o working capital may be invested in cash tofacilitate the day-to-day running of the fund.This fund has a low level of risk but unit prices may still go up or down.

Defensive Managed:

15% to 30% o the Defensive Managed fund will be invested in high quality Indian equities. The remainderwill be a high credit standing. In addition, a small amount of working capital may be invested in cash tofacilitate the day-today running of the fund. The fund has a moderate level of risk with opportunity to earnhigher returns in the long term form some equity investment. Unit prices may go up or down.

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Balanced Managed:

30% to 60% of the Balanced managed fund will be invested in high quality Indian equities. The remainderwill be invested in Govemmrnt Securities and Bonds issued by companies or other bodies with a high creditstanding. In addition a small amount of working capital may be invested in cash to facilitate the day-to-dayrunning of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in thelong term from the higher proportion it invests in equities. Unit price may go up or down.

Growth fund:

The Growth fund invests 100% in high quality Indian equities. In addition a small amount o workingcapital may be invested in cash to facilitate the day to day running of the fund. Has a higher level of riskwith the opportunity to earn higher return in the long term from the investment in equities. Unit prices maygo up or down.

The are no investment guarantees on the returns of unit linked funds.

None of the funds participate in the profits of HDFC Standard Life Insurance company Limited or and ofits policyholder funds.

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INDIVIDUAL PRODUCTS

What is personal pension plan?

Before you enter into a financial contract, it is important that you understand what the products is, how itworks, the risk involved and what a decision to buy could mean for you. We recommend that you read thisdocument before you purchase a policy from HDFC Standard Life Insurance Company.

Purpose: the policy is basically a saving contract, which is designed to provide an income for life fromretirement, with an option to take the lump sun elsewhere to buy the annuity, provided it is permitted by theprevailing regulations.

Your commitment: You agree to pay a single premium or level premiums with installments due everyquarter, half-years or years throughout the deferment period of the policy, after which you will startreceiving your pension.

Risk factors: If you cease top pay premiums we may pay a surrender value. This will be determined at ourdiscretion. If any of the informations which you is incorrect, we reserve the right to vary the benefits which

may be payable and, further, if there has been non-disclosure of a material fact then we may treat yourpolicy as void. We will not pay out if a claim arises form an excluded cause of death. Future bonuses arenot guaranteed. They are dependent on our future experience. The principal elements of experience are ourinvestment performance and expenses.

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What is unit linked pension plan?

The unit linked pension plan is basically an insurance contract, which is designed to provide a retirementincome for life.

Your premiums are invested in units of the investment fund of your choice, based on the prevailing unitprice. One vesting the value of your units will be used to buy your retirement benefits.

On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000.

What is a Loan Cover Term Assurance Plan?

This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. Thelump sum will be decreasing percentage of he initial sum assured. As the outstanding loan decreases as perthe loan schedule, the cover under the policy decreases ads per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of theterm of the policy.

What is a Term Assurance Plan?

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Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract.One can choose the lump sum that would replace the income lost to ones family in the unfortunate event ofones death. Since this non-participating (without profit) plan is a pure risk cover plan, no benefits arepayable on survival to the end of the term of the policy.

What is a Single premium Whole Life Plan?

Since premium whole of life insurance plan is well suited to meet your long term investment needs. Thisparticipating (with profits) plan offers you the following benefits:

A sound investment: Your money will be invested in our with profits fund. The fund aims to provide asecure and stable long term growth. Normally, we will declare a compound reversionary bonus for yourpolicy every year and add it to your policy on its anniversary. In addition, on death, surrender or on theguaranteed dates, a terminal bonus might be payable. You pay a single premium and the policy will payyou a lump sum.

Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks afterany one of the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the sumassured plus any attaching bonuses, in full. Once the money has been received, your policy will cease.

Surrender value: You can terminate the policy any time, after it has been in force for at least 6 months, andreceive a surrender value.

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In case o unfortunate death: Your nominee get the sum assured secured by your premium, plus anyattaching bonuses.No medical requirements: We do not require you to undergo any medical test for this plan.

What is Money back Plan?

It is a participating (with profits) insurance plan that offers the following features:

1) Payment of cash lump sums, each of which is a proportion of the basic sum assured, at 5-yearsintervals during the term of the policy. (Please refer to the table given below.

2) On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions lessthe cash lump sums paid earlier is provide.

In case of the unfortunate death of the life assured within the term of the policy, the basic sum assuredplus any bonus additions is provided.

Time(Years)

10 40%

15 30% 30%

20 25% 25% 25%

25 20% 20% 20% 20%

30 15% 15% 15% 15% 15%

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What is Unit Linked Young start Plan?

HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It alsoprovides financial security to the child in the future in the future, even in case of the insured parentsunfortunate death during the policy term. The Unit Linked Young Star Plan is designed to provide a lumpsum to the child at maturity. It also provides financial security to the child in the future, even in case of theinsured parents unfortunate death during the policy term. The Unit Linked Young Star Plan also given theoption of additional protection against the six common critical illnesses.

Premiums are invested in units of the investment funds of your choice, based on the prevailing unit prices.On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basiccum assured is paid, and the policy continues unit maturity. Following a valid death or critical illness claimwe will pay the future premiums (at the level originally chosen at inception) into your policy, as and whenthey would have fallen due.

CHILDRENS PLAN

Children Plan is designed to provide a lump sum to the child at maturity. It also provides financial security

to the child in the future, even in case of the insured parents unfortunate death during the policy term.Childrens Plan receives simple reversionary bonuses, which are usually added annually. This is a flexibleplan with three options for you to choose from, depending on your requirements.

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OPTIONS:

You will have the choice of 3 options at the start of the policy.

Option On the death of the Insured

parent during The policy term

On maturity

Maturity Benefit Plan:- Future premiums waived and thepolicy continues till maturity.

Sum assured + bonuses paid

Accelerated Benefit Plan:- Sum assured + bonuses paid and

the policy stops

On the survival of the insured

parent to the maturity data, sumassured + bonuses paid.

Double Benefit Plan:- Sum assured paid, futurepremiums waive, and the policycontinues till maturity

Sum assured + bonuses paid

What is Endowment Assurance Plan?

It ids a participating (with profit) insurance plan that offers the following features:

Provides financial support to the family by way of a lump sum payment in case of the unfortunate death ofthe life assured within the term of the policy.

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Provides a lump sum payment to the life assured plus any bonus additions.The lump sum mentioned is the basic sum assured plus any bonus additions.

Why should anybody buy this product?

This plan is a with profits saving plan and is well suited for saving money for long term financial goals.This plan also helps also helps provide of the needs of family in absence by paying out a lump sum on theevent of unfortunate death during the term of the policy.

This plan can be taken on a single life basis or a joint life (first claim) basis. The eligibility ages are asfollows:

WHAT IS AN ENDOWMENT ASSURANCE PLAN?

Provides financial support to the family by way of a lump sum payment in case of the unfortunate death ofthe life assured within the term of the policy. Provides a lump sum payment to the life assured plus anybonus additions. The lump sum mentioned is the basic sum assured plus any bonus additions.

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WHAT IS UNIT LINKED ENDOWMENT ASSURANCE ?

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity oron earlier death. The Unit Linked endowment Plan also gives the option of additional protection against thesix common critical illnesses, as well as additional protection if death is as the result of an accident.

Your premium is invested in units of the investment fund of your choice, based on the prevailing unit price.On maturity you receive the value of your units. On death (or critical illness, if chosen0 you receive thegreater of the value of your units and your selected basic sum assured.

Gratuity plan

The gratuity plan is an insurance policy, which offers you, as an employer and gratuity acheme trustee, anew and flexibly way to fund your gratuity liability. The contributions that you decide to invest in thispolicy will assist you in meeting your gratuity obligations in a systematic manner. The greater the amountregularly invested in the policy, the less the likelihood of your companys profit and loss account being

unexpectedly impacted by gratuity payments.

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Group Products

Leave Encashment Plan

The HDFC Leave Encashment Plan is an insurance policy which offers employers and leave encashmentscheme trustees a new and flexible way to fund their leave encashment liability. The contributions that theemployers/trustees decide to invest in this policy will assist them in meeting their leave encashmentobligation in a systematic manner. The greater the amount regularly invested in the policy, The less thelikelihood of an employers profit and loss account being unexpectedly impacted by leave encashmentpayments.

Group term insurance

Whatever the business its people who make it a success. Everybody requires some type of life insurance,

especially when others depend on them financially keeping this in mind, we have developed a group terminsurance plan with the following structure.

One years renewable term plan

One master policy issued covering all members of the group

Sum assured is payable on death (either due to natural causes or accidents)

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This plan can be taken to:

Provide life insurance over as a part of employee benefits

Cover the housing or vehicle loan gives by employer to employee (conditions apply)

Development Insurance Plan

It is an insurance plan which provides life cover to a specified group of people for a term of one year. Onthe death of any member of the group insured during the years of cover, a lump sum is paid to thatmembers beneficiaries to help meet some of the immediate financial needs following their loss.

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Tax Benefits

INCOME TAX

SECTION

GROSS ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

HDFC STANDARD

LIFE PLANS

Section 80 C Across al income slabs Upto Rs. 33,660 savedon investment of Rs.1,00,000

All the life insuranceplans.

Section 80 CC Across all income slabs Upto Rs. 3,660 saved oninvestment of Rs.10,000

All the life Insuranceplans.

Section 80 d* Across all income slabs Upto Rs. 3,366 saved oninvestment of Rs.10,000

All the health insuranceriders available with theplans

Total saving possible ** Rs. 37,026

Rs. 33,660 under Sec. 80 C and under Sec. 80 CCC, Rs. 3,366 under Sec. 80 D, calculated for a male withgross annual income exceeding Rs. 10,00,000.

Applicable to premiums paid for Cl, ASA and WOP.

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**these calculations are illustrative and based on our understanding of current legislations and income taxrules.

WINDOWS TO THE PROJECT

A COMPARATIVE STUDY OF HDFC SLIC VS ICIC PRU ON MARKETING MIX

A) Desk/Office/Field Base Training

B) Survey/Research/Fieldwork Based Training

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A) DESK/OFFICE/FIELD BASED TRAINING

Description of the assigned task and responsibility

The task assigned to me was divided into two parts:-

Research Report

The research report comprised of an analysis of two important major competitors of private sector in Life

Insurance business insurance products viz. HDFC Standard Life and ICIV PRU on marketing mix.

Under this project I designed a questionnaire and collected the data from the various branches of these twoinsurance companies under the guidance of my supervisor. The resource persons were generally the salesdevelopment managers or sales managers in these insurance companies and people from marketingdepartment.

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Team building and/or business generation

Team building comprised of recruiting financial consultants for the company who are responsible forgenerating sales for the company.

Business generation comprised of selling the products of he company to prospective clients.

The responsibility given was to generate business as well as to build up team of financial consultants forthe sales development manger under whom I was working as a summer trainee. We were also requiredleads for our supervisor for generating business in future.

Nature of work, working hours and work expectations

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The first part of the project comprised of a research report where I was supposed to do a survey of variousbranches of HDFC SLIC and ICIC PRU with the help of questionnaire.

To accomplish the second part of the assigned task I had to meet with people tells them the details about

the work profile for team building and about he financial solutions provided by the company for businessgeneration.

As both the works were field based jobs. There were no fixed working days and hours.

However, all the trainees were expected to achieve the target assigned to them during the tenure of theirtraining.

There were three clubs set up by the company which are:-

Name of club Business generation Team building

Silver club Rs. 30,000 Three financial consultants

Gold club Rs. 50,000 Five financial consultants

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Platinum club Rs. 70,000 Seven financial consultants

All the trainees were expected to qualify for the membership of at least the silver club.The photographs of the club members are displayed on the notice board along with their name and institutename.

PROCEDURE AND METHODOLOGY

STUDY :

The present investigation is an exploratory and a descriptive type of study undertaken to estimate thecomparative study of marketing mix of HDFC SLIC & ICIC PRU. The present study identifies views ofcustomers & analysis of ICICI Pru, HDFC SLICs biggest competitor along with the self-analysis.

SAMPLE SIZE:

For the purpose of analysis a sample size of 60 respondents was selected. The target group of respondentswas above 20 years. The respondents belong to NCR.

SAMPLING METHOD:

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The sampling method chosen for the project was Random Sampling. This type of sampling is also knownas chance sampling or probability sampling where each and every item in the population has an equalchance of inclusion in the sample and each one of the possible samples. This procedure give each item anequal probability of being selected.

TOOLS ADOPTED:

DATA COLLECTION PRIMARY DATA

The primary data to be collected was based upon the response of the respondents to the questionnairedesigned. After a lot of discussion with the seniors and projects guide, the self-designed questionnaire wasdeveloped for Primary Data Collection. The questionnaire consists mostly closed questions.

A part of questionnaire was targeted to know the personal details of the respondents. Another partcomprised of the self-designed questionnaire and will consist of closed ended questions with every questionhaving its own importance and meaning.

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SECONDARY DATA:

The secondary data was collected by referring through web sites, and the final data was analyzedsystematically to achieve the desired result.

DATA ANALYSIS:

For analyzing the data obtained after conducting the survey percentage method was used All the views anddata obtained were also interpreted as clearly as possible.

Business generation and team building

For the purpose of business generation and team building. We were supposed to take appointments formpeople interested in above. The database wads provided by the company as well as generated by us.

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Telecalling was widely used as a medium for the above described job. Through telecalling appointmentswere taken n by giving a brief outline of the purpose which would be business generation or team buildingvarying according to the profile of the client.

A sample of telephonic conversation for the purpose is as follows:

A telephonic conversation for business generation

Speaker: Good Morning/ Afternoon/ Sir/Maam

Client: Good Morning/ Afternoon. Who is this?

Speaker: Sir/maam this is maqbool Iqbal from HDFC Standard Life. Is this

Mr./Ms./Mrs. ?

Client: Yes, what is it regarding?

Speaker: Sir/Maam, this is regarding some investment products that our company was offering toour customers. If you can kindly spare a couple of minutes I would like to tell you some details.

Client: Alright, carry on.

Speaker: Sir/Maam these products are called unit linked investments plans i.e. ULIPS which arebasically meant for investment propose yielding high returns but at the same time provide risk cover as wellas tax benefits. Sir/Maam if you feel interested we can fix up an appointment and have a detaileddiscussion.

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Client: (if the person is interested) OK, we can meet on (date and time is decided).

(if the person is not interested) I am sorry but I am not interested, thank you anyway.

Client: Thank You Sir/Maam. Have a good day.

A telephonic conversation for team building

Speaker: Good Morning/ Afternoon/ Sir/Maam

Client: Good Morning/ Afternoon. Who is this?

Speaker: Sir/maam this is Maqbool Iqbal from HDFC standard Life. Is thisMr./Ms./Mrs. ?

Client: Yes, what is it regarding?

Speaker: Sir/Maam our company HDFC Standard Life recruits consultants who work for thecompany to generate business. By spending a very little time you can generate very handsome revenue foryourself we are looking for people who have good social contacts and have a desire to do somethinginnovative and open to learn new things.

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The procedure is such that first you have to undergo a 100 hours training sponsored by ourcompany which can be online or classroom whatever is suitable to you.

After that you have to appear for an online exam. Once you clear that you get a license issued from theIRDA as well as from the company and you can start working after that. There are no fixed working hoursyou have access to all the resources o f he company like telephone, Xerox machine, courier, etc, Weprovide you excellent training, strong customer support system, attractive commission package and more.So if you are interested to know more details we can fix up a meeting whenever it is comfortable to you.

Client: (if the person is interested) OK, we can meet on (date and time isdecided).

(if the person is not interested) I am sorry but I am not interested, thank you anyway.

Client: Thank You Sir/Maam. Have a good day.

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A) FIELDWORK

Field based training comprised basically of pitching in the products for business generation because Idirected my efforts towards business generation to achieve the target of qualifying for the silver club.

I have followed the following major steps of effective selling for the purpose of business generation.

PROSPECTING

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PREAPPROACH

APPROCH

PRESENTATION AND DEMONSTRATION

OOVERCOMING OBJECTIONS

CLOSING SALES

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PROSPECTING AND QUALIFYING

I examined the data sources (directories, internet) in search of names and contacts details and themqualified the leads by contacting them by mail or phone to access heir level of interest and financialcapacity.

I also cultivated other referral sources with the help of current customers.

PREAPPROACH

After qualifying the prospect the best contact approach was decided which could be mail call or personalvisit depending on the level of the prospect after the first conversation.

The timing has also to be considered because many prospects are busy certain times like the period beforelunch and this was one of the major problems faced while fixing up an appointment for personal visit.

APPROACH

This was the first lesson taught to us on the first day on our training.

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It is always good to understand the buyers need so that product can be positioned according to the need ofthe customer and this requires an active listening of the buyers need.

PRESENTATION AND DEMONSTRATION

I told the product story to the buyer using the AIDA formula of gaining attention by being polite and softspoken while greeting he client. The opening line was generally hello sir, I am maqbool Iqbal. Mycompany and I appreciate your willingness to see me. I will do my best to make this visit profitable andworthwhile for both of us.

Next was holding interest of the client by telling them the details using facts and figures of the last fiveyears for analyzing the performance.

After this I tried to arouse the desire in the client to know the details about the product and feel interested inlistening whatever I was telling. Effective use of presenter, brochures and pamphlets was very helpful forthis purpose.

The last step was to obtain action from the client i.e. to get his/her consent for investing in the company.

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To generate interest and desire the FABV (Features, Advantage, Benefit and Value) approach wasfollowed.

I. Features:

Pull back, withdrawing facility, top ups, installment payment etc.

II. Advantage:

Money in safe hands and invested through a proper channel to yield highreturns.

III. Benefit:

A life cover provided and tax benefit on the effective premium at year end andon the maturity value at the end of the term.

IV. Value:

The summative value if calculated at 20% returns as shown by the trend for pastfive years, the money received is almost 2.5 times of the total investment mode.

Demonstration aids such as booklets, brochures, illustrations, etc. were used which all the details haswritten in them.

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OBJECTION HANDLING

As the product marketed was intangible requiring a minimum investment of Rs. 10,000, it was very

important to clarify about all the details because even a even a small mistake could result in loss ofbusiness.

People generally feel reluctant in giving up something and there is generally a dislike of making a financialdecision. Secondly, they like to seek advice of experts before making a decision. It is thus necessary todeny the validity of their objections and to turn them into a reason to buy by building a rapport with yourclient so that they can have full confidence in you and feel hat their money is safe with the company.

CLOSING THE SALE

Once the client is satisfied and all this apprehensions are met with, gets converted by agreeing to take upthe investment. All the queries of the client are met before closing the deal.

A proposal form has to be filled up by the client and a document for age proof has to be submitted.

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The life assured (the person taking up the policy) has to get medical cheek up done at the expense of thecompany according to their ease and convenience.

Once all the formalities are completed, the policy is enforced.

Outcome and Results

I am glad to state that I was able to achieve the target give to me by bringing in a business worth Rs. 70,000and recruiting 3 Financial Consultants.

By reaching the above target I was able to enter into the Platinum club of the summer trainees. Aphotograph along with my name and university name was displayed on the notice board of the company.

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Learning and Experience

Doing hard core sales for a company providing long term financial solutions proved to be a challengingjob. During the two months I was able to learn various ins and outs of the insurance industry and the

working of the insurance sector. At the same time I also gained insight about the areas to focus forgenerating sales.

I was able to build up a strong network with people whom I met business purpose. The experience had beengreat and helped me to develop an insight about the working of the corporates.

PRODUCT COMPARISON OF HDFC SLIC AND ICICI PRU

HDFC SLIC ICICI PRU

SAVINGS PLAN

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ENDOWMENT ASSURANCE PLAN INVESTSHIELD LIFE

UNIT LINKED ENDOWMENT PLAN INVESTSHIELD CASH

CHILDRENS PLAN INVESTSHIELD GOLD

UNIT LINKED YOUNG STAR PLAN PREMIER LIFE

MONEY BACK PLAN LIFE TIME

SECURE PLUS

CASH PLUSSAVE AND PROTECT

CASHBACK

INVESTMENT PLAN

SINGLE PREMIUM WHOLE OF LIFE PLAN LIFE LINK II

PROTECTIONPLQANS

TERM ASSURANCE PLAN LIFE GUARD

LOAN COVER TERM ASSURANCE PLAN

RETIREMENT PLANS

PERSONAL PENSION PLAN INVEST SHIELD PENSION

UNIT LINKED PERSONAL PENSION PLAN LIFE TIME PENSION II

LIFE LINK PENSION II

SECURE PLUS PENSION

FOREVER LIFE

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Organization Structure Of HDFC Standard Life

HDFC SLIC ICICI PRU

Managing Director Managing Director

General Manager General Manager

Zonal Manager Zonal manager

Regional Manager Regional manager

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Sales Manager Sales Manager

Assistant Sales manager Branch Manager

Sales/Branch Development manager Area Sales Manager

Financial Advisors Unit Manager

Financial Consultants ` Advisors

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Poor communication between agents and staff, so customer usually fail to get the complete information atright time.

Lack of aggression in developing marketing strategies.

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Oppurtunities:

HDFC SLIC has started focusing on rural areas which will give it a new market.

SLIC is increasing its share in HDFC; that will help the company.

Insurance market is changing into investment market so the company has great opportunities.

Can capitalize on the most respected and ethical company aspect by proper marketing strategies.

Can highlight its lowest administrative and fund management charges.

Threats:

LIC is the major threat.

HDFC SLIC is facing a very tough competition with ICICI Prudential.

LIMITATIONS

Time period for our research was only 60 days which was limited.

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The study was done in a limited geographical area of Delhi and NCR thus the result cannot beapplied everywhere.

Convenient sampling is used which makes the research less reliable.

Sample size was small after considering the database of existing customers.

Suggestions and Recommendations

The company is having second position in private insurance sector so its main motive is to become numberone insurance company. The company can reach its motive by following measures:-

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HDFC SLIC should strive to increase multi-channel distribution strategy.

HDFC SLIC should emphasize on need based selling which will ultimately increase customers

satisfaction and goodwill of the company.

Appropriateness, simplicity and transparency of products products should be which are tailormade to suit individuals needs.

HDFC SLIC should recruit well qualified professional as advisors and managers who havedeveloped and insight in marketing arenas.

HDFC SLIC should recruit more and more financial consultants and train them thoroughly whichwill in more business generation.

HDFC SLIC should start investing more in advertisements and other promotional activities toincrease the awareness and visibility.

HDFC SLIC should always try to capitalize on its uniqueness, and customer centric essence.

HDFC SLIC needs to indulge more and more in social activities to win public confidence and

loyalty.

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ANNEXURE

I. QUESTIONNAIR FOR ORGANISAION

II. QUESTIONNAIRE FOR CUSTOMERS

III. BIBLIOGRAPHY

QUESTIONNAIRE

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This is to inform you that I am a student of B.B.S. Jamia Millia Islamia and am pursuing my summer

training. Every aspect of the information will b used for academic purpose only It must be in confidential

form so kindly cooperate while filling the questionnaire.

1) How many employees are working in your branch?

2) What is the hierarch of your branch?

3) What is the market share of your company?

4) Whom do you consider as your major competitor?

5) Which is the best selling product of your company?

6) Who are your target customers?

QUESTIONNAIRE

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This is to inform you that I am a student of B.B.S. Jamia Millia Islamia and am pursuing my summer

training. Every aspect of the information will b used for academic purpose only It must be in confidential

form so kindly cooperate while filling the questionnaire.

1) Form which insurance company are you more familiar?

1.1) HDFC Standard Life1.2) ICICI Prudential

2) How you come to know about the company you mentioned as the response question no.1?

2.1) Television/Radio advertisements2.2) Print media2.3) Agent2.4) Friends

3) Whom advertisement impact is more on your mind?

3.1) HDFC standard life3.2) ICICI prudential

4) Which will be your first choice for taking an insurance policy?

4.1) HDFC Standard life4.2) ICICI Prudential

Reason for your answer to question no.4

5) Do you have any insurance policy? If yes it is taken from

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5.1) HDFC Standard Life5.2) ICICI Prudential5.3) Other

6) Which is the best service provider?


7) Who is providing better product/schemes?

7.1) HDFC Standard Life7.2) ICIC Prudential

8) Whose branch is nearest to your residence?

8.1) HDFC Standard Life

8.2) ICICI Prudential

9) Which company is having a better infrastructure/


10) Which company has better marketing strategies/


11) If you get a chance for employment which company will you choose?

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NAME:

ADDRESS:

GENDER:

OCCUPATION:

AGE:

CONTACT NO.:

BIBLIOGRAPHY:

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BOOKS:-

Kotler, Philip (2005), Eleventh Edition, Marketing Management, Person Education, New Delhi.

Malhotra, N.K. (2004), Fourth Edition, Marketing Research, Person Education, New Delhi.

Gupta, P.K. (2004), First Edition, Insurance And Risk Management, Himalaya Publishers,Mumbai.

INTERNET LINKS:-

www.hdfcinsurance.comwww.iciciprulife.comwww.irdaindia.orgwww.economictimes.comwww.businesstandard.com

www.surveyofindia.comwww.investopedia.comwww.businessworld.com

SEARCH ENGINE USED:-

http://www.about.comhttp://www.askjeeves.comhttp://www.google.com

http://www.yahoo.comhttp://www.hotbot.comhttp://www.dogpile.com

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http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.irdaindia.org/http://www.economictimes.com/http://www.businesstandard.com/http://www.surveyofindia.com/http://www.investopedia.com/http://www.businessworld.com/http://www.about.com/http://www.askjeeves.com/http://www.google.com/http://www.yahoo.com/http://www.hotbot.com/http://www.dogpile.com/http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.irdaindia.org/http://www.economictimes.com/http://www.businesstandard.com/http://www.surveyofindia.com/http://www.investopedia.com/http://www.businessworld.com/http://www.about.com/http://www.askjeeves.com/http://www.google.com/http://www.yahoo.com/http://www.hotbot.com/http://www.dogpile.com/


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