ON

To Recruit Financial Consultants And To Sell Insurance

Policies of HDFC SLIC.

HDFC STANDARD LIFE

Sar uttha ke jio

Submitted in the partial fulfillment of the requirement of

the award of Master of Business Administration (2008-09).

RKGIT

RAJ KUMAR GOEL INSTITUTE OF TECHNOLOGY, GHAZIABAD

Uttar Pradesh Technical University, Lucknow.

SUBMITTED TO:- SUBMITTED BY:-
Dr. ARVIND SINGH MADAN MOHAN BAJPAI
MBAIIISem
(Principal of managmnt deptt.) ROLL NO:-0703370047
TABLE OF
CONTENTS

2
.Acknowledgment Page no.1

.Preface - 2

.Executive summary - 3

.Company overview - 4

.Swat analysis - 6

.Research methodology - 14

.Products - 29

.Target/Task Set - 52

.Strategy Adopted - 56

.Achievements and learning - 61

. Awards/Rewards received - 65

.Analysis of performance v/s Targets - 66

.Market segmentation - 67

.Market feedback - 70

.Recommendation - 71

Conclusion - 74

17). Bibliography - 81

3
Acknowledgement

4
 Co-ordination, Co-operation and Command of the people at
various levels go into the successful accomplishment of any task
assigned to me. It is impossible to thank each of them individually but
hereby I make a sincere effort to thank some of them.

Nothing in this world can be achieved without the help and

blessing of almighty god. The first boss is the guide to the experience,
which is the first step towards one’s success or failure.

I couldn’t have better supervisor for the launching pad of

my career. I am deeply indebted to Ms. SWETA SINGH (Unit Manager),
Mr. ABHINAV TYAGI (Channel development Manager) for providing
me with an opportunity to do my Summer Project in HDFC STANDER
LIFE.

MY special thanks go to Mr. VISHAL SHRIVASTAV who

has molded me to handle such critical project. I am deeply indebted
for his guidance.

I am grateful to Mr.K.M.UPADHYAYA for giving me the

opportunity to do this project.

Irrespective of all other benefits, it was the unconditional

support and aid of my family, who enabled me to achieve to fullest
extent of my endeavor. It would be unfair of me if I do not thank the
staffs of the HDFC STANDER LIFE of BHEEKHA.JI KAMA,DELHI branch
for creating a congenial atmosphere for my work.

5
Preface

6
 I am the student of MASTER BUSINESS ADMINISTRATION at RAJ
KUMAR GOEL INSTITUTE OF TECHNOLOGY. GHAZIABAD belonging to
2008-2009 Batch. The submission of this project report is the part of
the curriculum of the M.B.A course. Through this project report, I
would like to share our on job experience with HDFC stander life in the
insurance field. The insurance sector in India has come to a full circle
from being an open competitive market to nationalization and back to
a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360-degree turn witnessed over a period
of almost two centuries. The business of life insurance in India in its
existing form started in India in the year 1818 with the establishment
of the Oriental Life Insurance Company in Calcutta.
During the training period I met a lot of people and learnt a lot. There
were instances when I thought ‘what the hell I am doing in this
company’ but then i thought everybody is doing the same thing some
way or the other and therefore, i decide to sick with the company.
i played my part with complete honesty and now only the result is
awaited in the time to come.

7
 Executive
Summary

The Indian Insurance Industry is broadly segmented into public and

private insurance companies. Before year 2000, only public sector
insurance companies were allowed to do business in India. But after

8
year 2000, insurance sector was thrown open for private insurance
companies as well.

HDFC Bank was incorporated in august 1994 in the name of “HDFC

Bank limited”, with its registered office in Mumbai, India. The bank
commenced operations as a scheduled commercial bank in January in
1995.

But as of now there now around 15 private life insurance companies

and around 10 private non-life insurance companies doing business in
India.

The objective of the project was to survey the market and convince
the most suitable person from different segments for working as
advisor in HDFC Stander life. Beside this the report is prepared with
an aim to provide an overvie

w of present Indian Insurance Industry. Also with LIC, heading the

public life insurance companies and HDFC Stander life heading the
private life insurance players, this report also provides a brief of
products provided by HDFC Stander life and it’s selling.

9
 COMPANY
OVERVIEW

COMPANY PROFILE: -

HDFC Standard Life Insurance Co. Ltd. is a joint venture

between HDFC Ltd., India's largest housing finance institution and
Standard Life Insurance Company, Europe's largest mutual life
company. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October 2000.
10
Standard Life, UK was founded in 1825 and has experience of over 180
years. The company is rated as "very strong" by Standard & Poor's
(AA) and "excellent" by Moody's (Aa2).

HDFC Standard Life Insurance is a new Indian life insurance company

that operates out of 52 locations. It offers clients a range of insurance
plans to meet their savings, investment and protection needs. In the
financial year 2002-03, the company registered a year-on-year growth
of over 260%. It is also the first new life insurance company to declare
its third successive bonus for participating policy holders.

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th

august 2000. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.) India and UK based Standard
Life Company. Both the joint venture partners being one of the leaders
in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited.

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has
given the company new directions and has helped the company
achieve the status it currently enjoys.

HDFC Standard Life Insurance India boasts of covering around 8.7 lakh
lives by March'2007. The gross incomes standing at a whopping Rs. 2,
856 crores, HDFC Standard Life Insurance Corporation is sure to
become one of the leaders and the first preference for any life
insurance customer.

11
The Bank assurance partners of HDFC Standard Life Insurance
Co Ltd are:-

12
13
SWOT ANALYSIS

SWOT ANALYSIS OF HDFC SLIC LTD.: -

STRENGTHS: -

1. It was the first life insurance company to be granted a

certificate of registration by the IRDA on the 23rd of October
2000.

2. The company has covered over 15,27,000 lives year

ending March 31, 2008.

3. June, 2007 Received PC Quest Best IT Implementation

Award 2007.

14
 4. January 2007 HDFC SLIC Ranked 29th Most Trusted Indian
Brand.

5. February, 2008 Deepak M Satwalekar Awarded QIMPRO

Gold Standard Award 2007.

6. HDFC has always been market-oriented and dynamic with

respect to resource mobilization as well as its lending
programmed. This renders it more than capable to meet
the new challenges that have emerged.

7. HDFC SLIC is the first new life insurance company to

declare its third successive bonus for participating policy
holders.

8. Company has an annual turnover of Rs. 3, 865 crores.

9. HDFC SLIC Ltd has a network of 118 officesRated by

'Business world' as 'India's Most Respected Private Life Insurance
Company' in 2004.

10. Rated as the "Best New Insurer - 2003" by Outlook Money

magazine, India’s number 1 personal finance magazine.

11. Company has strong values and beliefs.

WEAKNESSES: -

1. Company is not dealing in Health insurance Plans.

15
2. Their allocation charges are greater in comparison of
competitors.

3. Premium payment modes are less in comparison of

competitors.
4. Minimum Lock in period is 5-years where in other
companies its 3-years.

OPPORTUNITIES: -

1. Awareness in the minds of customers towards the

importance of Insurance is also providing opportunity for
the company to grow.

2. Company has a lot of customers for different divisions of

business.
3. Extra earning options of company are very helpful for
providing opportunity to build a strong network for the
company to grow.

THREATS: -

16
Life Insurance Corporation of India

ICICI Prudential Life Insurance

SBI Life Insurance

ING Vysya Life Insurance

Met Life India Life Insurance

Shriram Life Insurance

Birla Sun Life

Bajaj Allianz Life Insurance

Max New York Life Insurance

Aviva Life Insurance

Bharti AXA Life Insurance Company Limited

Kotak Mahindra Life Insurance

TATA AIG Life Insurance

Reliance Life Insurance Company Limited(formerly known as AMP

Samar LIC)

17
 Market Share (%)

ICICI Prudential

6%
6% Bajaj Allianz
6%
34% HDFC Standard

SBI Life*
14%
Birla Sun Life

10% Reliance Life

Insurance
24%
Max New York

18
INTERPRETATION:-

Among the whole insurance sector ICICI Prudential has 34% market share,Bajaj Allianz
has24% mrket share,HDFC has 10%,SBI has 14%,Birla Sun Life has 6%
Reliance Life Insurance has 6% and Max New York also has 6% market share.

THE RANKING OF INSURANCE COMPANY

The Rankings

LIC 59
ICICI-PRU 55
HDFC 52
TATA AIG 49
AVIVA LIFE 48 Series1
BAJAJ ALLIANZ 48
ING VYSA 45
MAX NEW YORK 45
CSI Score

INTERPRETATION:-
19
LIC on 1st rank, ICICI Prudential on 2nd ,HDFC on 3rd ,TATA AIG on 4th AVIVA LIFE
on 5th ,BAJAJ ALLIANZ on 6th ,ING VYSA on 7th and MAX NEW YORK on 8th rank
according to their SCI Score 59,55,52,49,48,48,45and 45 respectively.

LOYALTY SEGMENTATION

LOYALTY SEGMENTATION

LIC
ICICI Prudential
HDFC Standard Life
Aviva Life
Bajaj Allianz
TATA AIG
ING vysya
Max New York
Industry Avg

0 20 40 60 80 100 120

High risk Trapped Accessible true loyals

20
 PERFORMANCE MEASURES

LIC ICICI Bajaj TATA HDFC

Prudential Allianz AIG Standard
Life
Appl.approval 65 67 61 57 60
process
Medical exam 33 48 52 61 57
process
Insurance 60 61 58 60 66
policies
Advertising 53 57 49 53 58
promotion
Comm.on new 47 49 43 52 50
policies &schems
Post purchase 52 65 58 53 60
exp.
Ins.agent/advisor 57 64 59 60 60

Call 67 60 69 75 62
center/helpline

Incorporated in 1977 with a share capital of Rs. 10crores .HDFC has

since emerged as the largest residential mortgage finance institute on
21
in the country. The net worth of the corporation is Rs.28000 crores,
HDFGFC manages asset. Standard life is Europe’s largest mutual life
insurance company and specializes in a wise range of other services
like health care, pension and annuities market with aglobal presence.
The company has assets at US $ 119 billion.

TRAINING ACTIVITIES FOR

AGENTS/ADVISORS

• As per IRDA guidelines 50 hrs training is compulsory

• Both online and classroom training are available.
• Training is compulsory with both part time and full time options.

A clear exam is conducted by IRDA, the minimum qualification

required is

12th pass for urban areas

10th pass for rural areas

TRAINING CENTRES

• NIS:patel nagar,south extension(Delhi)

• School net

COMMISSION STRUCTURES

Depends on the products, like on savings

20-40% IST year premium

On investment 2%
22
 On pension 7.5%

DIFFERENT TRAINING PROGRAMS FOR AGENT

IRDA training : 50 hrs training which is compulsory

• Product training :making the agents well aware of the

company’s products

• Communication training: how to communicate more

effectively with your customers.

Behavioral training :how to understand you customers more

properly

Presentation skills

Modes and ways through which the companies recruit agents.

Direct contacts

Newspaper adds

Consultants

Member of the company can introduce a new member

CURRENT AGENT FORCE

200- 300 in Delhi

TOP 5 USP’S (UNIQUE SELLING PROPOSITION)

1. 1st private sector life insurance Company to be granted license

2. Declared bonus every year from the day of incorporation
23
3. Provides fast services to the customers in terms of claim.
4. Best insurer according to outlook.
5. Well supported by foreign partner standard life, UK which was
recently voted company of the decade in UK by the Independent
brokers called IFA’s.

24
 PRODUCT
PROFILE

SAVING PLANS

CHILDREN PLAN

Children plan is designed to provide a lump sum to the child to

25
maturity. It also provides financial security to the child in the future;
even in case of insured parent’s unfortunate death during the policy
term. Children’s plan receives simple reversionary bonuses, which are
usually added annually. This is a flexible plan with three options for
you to choose from depending on your needs.

TAX BENEFITS

The premiums you pay will be eligible under section 88 of the income
tax act ,1961.the benefits received under the policy are eligible for tax
relief under section 100(10D) of the income tax act, 1961.

PAYMENT OPTIONS

You have the choice of paying the premium either in yearly,

half yearly or quarterly modes, depending on your

convenience.

MONEY BACK PLAN

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

features:

Payment of cash lump sums each of which is a proportion of the basic

sum assured, at 5 year intervals during the term policy.

On survival up to maturity, a payment equal to the basic sum assured

plus any bonus additional less the cash lump sums paid either is
provided.

In case of the unfortunate death of the assured within the term of the
policy, the basic sum assured plus any bonus additions are provided.
This is over and the earlier payouts.

26
OTHER BENEFITS

You can add the following optional benefits to customize your policy to
suit your needs:

.Critical illness benefits provides an amount, equal to the sum

assured chosen under this optional benefit, a diagnosis of any
assured one of the 6 common critical illness.
.The sum is payable if you survive for 30 days after the date of
claim.

. One such a claim has been met, no further critical illness benefit
payable. However, your basic policy continues even after we pay a
claim on this benefit.

• Additional term benefit provides an additional amount, equal to

the sum assured chosen under this optional benefit, in case of
your unfortunate death.

Accidental death benefit provides an additional benefit, in case of

your unfortunate death:

-due to an accident, and

-within 90 days of the accident.

• Waiver of premium benefit waives the premium for you in case

you become totally disabled. The waiver is applicable during the
period of total disability.

27
TAX BENEFITS

Tax benefits described in section 88, section 80D and section

10 (10D) of the income tax act.

PAYMENT OPTIONS

You have the choice of paying your premium either in yearly,

half yearly or quarterly modes, depending on your

convenience.

ENDOWMENT ASSURANCE PLAN

It is participating insurance plan that offers the followingfeatures:

28
.Provides financial support to the family by way of a lump sum
payment in case of the unfortunate death of the life assured within the
term of the policy.

Provides a lump sum payment to the life assured on survival up to

maturity. The lump sum mentioned is the basic sum assured plus any
bonus.

OTHER BENEFITS

You can add the following optional benefits to customize your

Policy to suit your needs:

• Critical illness benefits provides an amount, equal to the

Sum assured chosen under this optional benefit, a diagnosis of

any one of the 6 common critical illness. The sum assured

is payable if you survive for 30 days after the date of claim.

One such a claim has been met, no further critical illness

benefit payable.however, your basic policy continues even

after we pay a claim on this benefit.

• Additional term benefit provides an additional amount,

equal to the sum assured chosen under this optional benefit,

in case of your unfortunate death.

29
 Accidental death benefit provides an additional

benefit, in case of your unfortunate death:

-due to an accident, and

-within 90 days of the accident.

• Waiver of premium benefit waives the premium for you in case

you become totally disabled. The waiver is applicable during the
period of total disability.

TAX BENEFITS

Tax benefits described in section 88, section 80D and section

10 (10D) of the income tax act.

PAYMENT OPTIONS

You have the choice of paying your premium either in yearly,

half yearly or quarterly modes, depending on your

convenience.

PENSION PLAN

The policy is basically a saving contract, which is

designed to provide an income for life from retirement, with

an option to take the lump sum elsewhere to buy the

30
 annuity, provide it is permitted by the prevailing regulations.

• Your commitment .you agree to pay a single premium or

level premiums with installments due every quarter, half year

or year throughout the deferment period of the policy, after

which you will start receiving your pension.

Plan is basically a savings contract, which is designed to provide an

income for life from retirement. It does this by-

accumulating a national lump sum on retirement,

comprising of sum assured plus any attaching bonus.

MODE OF PREMIUM

You can pay either a single premium or pay premiums is

quarterly, half yearly or annual form by cheques, in cash or by

bank drafts.

INVESTMENT PLANS

SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN

Single premium whole of life insurance plan is well suited to meet your
long term investment needs. This participating plan offers you the
following benefits:

31
.A sound investment: your money will be invested in our with profits
fund. The fund aims to provide secure and stable longterm growth,
normally; we will declare a compoundreversionary bonus for your
policy every and add it to your policy on its anniversary. In addition,
on death, surrender or on guaranteed dates a terminal bonus might be
payable .you pay a single premium and the policy will pay you a lump
sum.

.flexibility of term: even after choosing your policy, you can decide on
the policy term.

TAX BENEFITS

Tax benefits under section 88 of the income tax act are

applicable on premiums up to 20% of the sum assured.

PAYMENT OPTIONS

A single premium can be paid by cash, cheques or demand

draft.

UNIT LINKED PENSION PLAN

The unit linked pension plan is basically an insurance contract,

which is designed to provide income for life.

Your premiums are invested in units of the investment fund of your

choice, based on the prevailing unit price. On vesting,
32
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. 10000 each year and fore

single premium it is Rs.25000.to facilitate increased investment,

we allow additional single premiums.

VARIOUS INVESTMENT FUNDS

This policy is fully unitized with a range of funds to match your needs
and approach to risk. Each investment fund is composed of units. All
the units in a fund are identical. You can choose from the following
funds.

1.LIQUID FUND

The liquid fund invests 100% in bank deposits and high quality
short term money market instruments. The fund is designed to
be cash secure and has a very low level of risk. However, unit
prices may occasionally go down due to the use of short term
money market instruments.

33
2. SECURE MANAGED

The secure managed fund invests 100% in government

securities and bonds issued by companies or other bodies with a

high credit standing. However, a small amount of working capital
may be invested in cash to facilitate the day to day running of
the fund. This fund has a low level of risk but unit prices may go
up or down.

3.DEFENSIVE MANAGED

15 to 30 % of the defensive managed fund will be invested in

high quality Indian equities. The remainder will be invested in
government securities and bonds issued by Companies or other
bodies with high cash credit standing.

In addition, a small amount of working capital may be invested

in cash to facilitate the day to day running of the fund .the fund
has a moderate level or risk with the opportunity to earn higher
returns in the long term from some equity investment. Unit
prices may go down or up.

4.BALANCED MANAGED

30 to 60%of the defensive managed fund will be invested in high

quality Indian equities .the remainder will be invested in
government securities and bonds issued by companies or other
bodies with high cash credit standing. In addition .a small
amount of working capital may be invested in cash to facilitate
the day to day running of the fund.

34
BENEFITS

At the chosen vesting date, the unitized fund value will be available to
secure pension benefits. Subject to the prevailing regulations, part of
this value can be taken in the form of cash lump sum and the rest
converted to an annuity at the rate then offered by HDFC standard life.
Alternatively, if it is permitted by the prevailing regulations, the
proceeds net of any cash lump sum can be used to buy an annuity
with any other insurance company who will accept such business.

The current maximum limit for any cash lump sum is one third of the
unitized fund value on vesting .on death, the unitized fund value will
be paid along with a cash lump sum of Rs.1000.

The beneficiary may use the proceeds to purchase pension benefits

may use the proceeds to purchase pension benefits for the surviving
spouse. Your basic benefits will be paid by chequ
HDFC Standard Life brings to you a whole range of insurance solutions
be it group or individual or NAVservices company that operates out of
52 locations. It offers clients a range of insurance plans to meet their
savings, investment and protection needs. In the financial year 2002-
03, the company registered a year-on-year growth of over 260%. Itis
also the first new life insurance company to declare its third successive
bonus for participating policy holders.

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th

35
august 2000. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.) India and UK based Standard
Life Company. Both the joint venture partners being one of the leaders
in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited.

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has
given the company new directions and has helped the company
achieve the status it currently enjoys.

HDFC Standard Life brings to you a whole range of insurance solutions

be it group or individual or NAV services for corporations; they can be
easily customized as per specific needs.

ALTERATIONS IN THE LEVEL OF PREMIUM

Regular premiums can be increased at any time .if needed,

the policy holder can reduce the regular premium levels

(even to zero, the policy is converted to paid up status)

provided 3 year of regular premiums have been paid .The

monetary value of the unit holding across all funds is at least

Rs.15000.in addition, you can pay single premium to ups at

any point of time.

SURRENDING THE POLICY

The policy holder can surrender the policy at any point of time

36
during the contract term for regular premium paying policies.

For single premium contracts, the contract needs to remain in

force for a minimum period of six months before you can

surrender. The amount payable will be the unitized fund value

after applying additional surrender charges.

STOPPING PAYMENT OF REGULAR PREMIUM

This product has a grace period of 15 days for the payment of

each premium after the initial premium. If you stop paying

premiums, before you have paid 3 years of annual premiums,

we will cancel your policy and return to you the value of your

unitized fund, less cancellation charges. If after three years

you are unable to pay the premiums, you have the option to

make the policy paid up, provided the policy has

accumulated sufficient policy value .currently this amount will

be Rs.15000.if you make your policy paid up you will continue

to be protected according to the benefits you selected. To

provide this cover; we will continue to collect our usual

charges on each monthly charge date. It is important to note

that if no further premiums are paid, this may reduce the value

37
of your fund over time, or even exhaust it completely. A paid

up policy can be reinstated to premium paying status at any

point of time in the future. If the fund value of a paid up policy

and return to you the fund value, less cancellation charge.

TAX BENEFITS

Premiums paid under this plan are eligible for tax benefits

under section 80 CC of the income tax act, 1961.

UNITLINKED ENDOWMENT PLAN

The unit linked endowment plan is an insurance policy that is

designed to pay a lump sum maturity or on earlier death. The

unit linked endowment plan also gives the option of additional

protection against the six common critical illnesses, as well as

additional protection if death is as the result of an accident.

Your premiums are invested in units of the 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 chosen, you receive the greater of

the value of your units and your selected basic sum assured.

The premiums and various investment funds are the same as in

38
unit linked pension plan

BENEFITS

There are four different options to choose from:

1. LIFE OPTION

On death within the policy term, the greater of the sum

assured and the value of the unit linked fund will be paid

to your nominee. On survival to the end of the policy

term, the value of the unit linked fund will be paid to you.

2. LIFE AND HEALTH OPTION

On death or earlier diagnosis of any one of six common

critical illness covered within the policy term, the

greater of the sum assured and the value of the unit

linked fund will be paid to your nominee. On survival to

the end of the policy term, the value of the unit linked

fund will be paid to you. The illness covered under this

option is cancer, coronary artery bypass graft surgery,

heart attack, kidney failure, major organ transplant and

stroke.

39
 3. EXTRA LIFE OPTION

This option pays the same as the life option but should

death occur within the policy term as the result of an

accident, an extra benefit equal to the sum assured will

be paid

4. EXTRA LIFE AND HEALTH OPTION

This option pays the same benefit as the life and health

option but should death occur within the policy term as

the result of an accident, an extra benefit equal to the

sum assured will be paid.

TAX BENEFITS

Tax benefits under section 88 and section 10 (10D) of the

income tax act are applicable.

SOME MORE ABOUT ULIPS

Unit linked policies are life insurance policies characterized by

their high financial content. They are a logical combination of

an investment fund and a life insurance policy. They are

different from traditional policies because they allow the

customer to define the underlying type of investment by

choosing from a vast range of asset classes differentiated by

40
the type of investment. This could range from the conservative

to the aggressive depending up on each individuals risk

appetite. The investment can also be modified over time .unit

linked business has its roots in unit trusts which were introduced

in the UK apparently in the year 1957 and its investments were

linked to an external unit trust. There are different types unit

linked life insurance contract that can be designed starting

from endowment, money back, whole of life policy, deferred

annuity scheme and the managed pension fund .the

available products are characterized by their transparency,

yield, convenience, flexibility and price/performance

equilibrium. I would try to dwell up on this last product more

and try to highlight the challenges and opportunities available

for an insurance company in the Indian context. The two most

popular schemes among the corporate in the pension fund

categories are the group gratuity and group super annuation scheme.

GROUP GRATUITY

Under the payment of gratuity act 1972 most employers with

more than 10 employees must provided minimum level of

41
lump sum gratuity benefit to staff when they leave service. The

amount of benefit is defined in terms of service and salary.

Employers often pre fund the liability to pay gratuity by setting

up a separate fund under the trust.Pre funded arrangements

enjoy special tax privileges. Employers are obliged under the

payment of gratuity act 1972 to provide for the payment of

gratuity to their eligible employees. The act applies to most

companies which employ 10 or more employees. The board

terms of the benefit are:

Section 4(1) states that a gratuity shall be payable to an

employee on termination of his employment.

• On his super annuation ,provided five years or more of

continuous service has been completed, or

On his retirement or resignation, provided five years or

more of continuous service has been completed, or

On his death or disablement due to accident or

disease (payable irrespective of length of service).

GROUP SUPERANNUATION

42
The group superannuation scheme allows an employer /trust

to build up retirement funds for the members of the scheme.

This scheme is usually provided to a particular class of

employees of the company. A separate fund exists for each

individual and the contribution in respect of each individual is

applied to their own fund. The amount of the fund is equal to

the contribution plus investment returns less expense.

Investment returns are applied to the fund using the unit linked

method. At retirement the accumulated fund is then used to

buy an annuity for the member to provide an income in

retirement (plus a tax free lump sum payment).the super

annuation scheme can either defined contribution plan or a

defined benefit plan, it is increasingly popular to have a

defined contribution plan rather than a defined benefit plan.

The important decision point that needs to be made at the

time developing the product is as follows:

Acceptability of unit linked approach

Fund management

43
 Charges and expenses

Administration

Products offered by other market players

System support

Training and education

Regulatory constraints

Till now, the companies (Indian corporate) in India were not

exposed to this type of a scheme where the entire investment

risk and hence the reward being borne by the

company/trustees. It is hence extremely difficult to predict

how the Indian corporate would react to this. Also; there is a

great deal of education that needs to be done at the time of

selling this concept and hence setting the right expectation in

the mind of the employers. An essential element for the

44
development of investment linked products is the existence or

development of a stable securities market. Insurance

companies, like pension funds, are important catalysts for

change in this regard but change will not come

overnight. although, the fact that Indian corporate invest in

mutual funds cannot be totally neglected and hence can

give a certain degree of comfort to the insurance companies.

The fact remains that in case of gratuity and super annuation

it is employee’s money and hence the company may not

want to take the downward risk.

FUND MANAGEMENT

The crux of the entire product is the returns that this product

can generate and this is dictated by the management of the

fund. There is no great value in doing well in all other aspects

of the product delivery if the fund does not perform well. The

insurance company has two options with regards to the

management of the fund i.e. external and internal. External

funds usually have a proven track record that could be used

as a significant marketing too. In India many of the insurance

45
companies, which are apart of the larger financial services

groups, already have a sister fund Management Company

and they could bank on their performance .for others, they

would usually be having an in house investment team and this

could be extended to management of the funds too. The

expenses and hence the cost should be kept in mind as by

nature the unit linked insurance product is a very transparent

product and hence this would become a significant selling

point in the long run.

CHARGES AND EXPENSES

There are different charges that can be levied by the

insurance companies, some of the more common ones are:

1. Initial charges

Annual charges

Investment charges

Morality charges

46
 Surrender charges

INITIAL CHARGES

Initial charges are applied at the time of setting up the policy;

this could be in the form of a bind offer spread and also in the

form of units known as the allocation of units known as the

allocation factor. It is also possible to be levying a per

member level charge.

ANNUAL CHARGES

The annual charges can either be fixed or can be linked to the

size of the fund. It could also be linked to the number of

members in the scheme. This charge is usually taken to cover

the maintenance expenses of the insurer.

INVESTMENT CHARGES

A fund management charge is levied to take care of the fund

management expenses depending upon whether the fund is

managed internally or externally.

MORTALITY CHARGES
47
It is possible to have an insurance element built into the super

annuation contract and in case of a gratuity there would be

an element of insurance the degree and the form could differ

from company to company.

The insurance premium can be taken as a part of the gratuity

contract of it can be administered outside this but packaged

to as if it is a whole some product offering and insurance to

the employees of the organization.

SURRENDER CHARGES

The surrender charges can be used in multiple ways .It could

be used as a way of recouping the initial outlay of the insurer

in case the company decides to withdraw in the early years of

the contract or it could be used as a deterrent for the

company to shift the service provider at any point of the

contract. Usually the surrender charges/penalty would

decrease over a period of time and would be expressed as a

percentage of the fund.

The biggest start up expenditure for linked unit linked policies is

the unit linked administration system and this has to be

48
recouped over a period of time by the charges that are levied

and the business volumes that the product would generate.

They key thing to all this is that the Indian corporate till now

have been exposed to the explicit from of charges and hence

they would have to be sensitized to the different charges and

hierarchies on which they operate. This could be a point

where significant negotiations at the time of pre sales can

happen hence; at the time of product development the

insurance company should design the product making

provisions to accommodate such contingencies.

ADMINISTRATION

The unit linked policies are significantly complex to administer

and also would need a very highly technically trained

customer service department to handle enquiries. Much of the

administer the policy .as the allocation of the units would be

time dependent it is extremely important to have a very robust

system that can take care of allocations, de allocation and

reallocation of unit’s .it is essential to have a system that would

be able to talk/interact with other systems to capture the unit

49
price details, to give outputs to accounting package, report

generators etc.

PRODUCTS OFFERED BY OTHER MARKET PLAYERS

The domain of competition does not stop with the insurance

companies but also extends to products offered by the unit

trusts. There could be a strong tendency to compare the

returns of this product with those available with the unit trusts

although the investment philosophy and the asset class on

which both of them would be operating could be entirely

different.

SYSTEM SUPPORT

The success of a market player especially in this unit linked

market would be dictated by the service that he could

provide. It is imperative that the insurance company is to

either build an in house system or to buy it from a vendor

developing an in house system would require substantial

amount of expertise and skilled IT resource .there are a few

systems that are available but would require some amount of

50
customization depending upon the scope of the product.

TRAINING AND EDUCATION

This product by its very nature is very transparent and hence

very complex. Also the intended target market are the

corporate hence the necessary skill set that would be required

to sell this product would vastly different in comparison to the

traditional products. Some of the distribution channels like the

bank assurance may not be the ideal way to canalize the

product. Also by the very nature of the product it is open for

abuse and hence the insurance company should properly

train the sales force and also should educate the potential

policy holders through its communication about the

investment risk that the policy holder through its

communication about the investment risk that the policy

holder is taking as opposed to traditional policies.

TERM ASSURANCE PLAN

Under this plan, a sum assured is payable in case of death of

51
the life assured during the term of the contract .one can

choose the lump sum that would replace the income lost to

one’s family in the unfortunate event of one’s death. Since this

Non participating plan is a pure risk cover plan, no benefits are

payable on survival to the end of the term of the policy.

Optional benefits are available with this plan. You can

add the following optional benefits to customize your policy to

suit your needs.

Critical illness benefits provides an amount, equal to the

sum assured chosen under this optional benefit, a diagnosis

of any one of the 6 common critical illness. The sum assured

is payable if you survive for 30 days after the date of claim.

One such a claim has been met, no further critical illness

benefit payable. However, your basic policy continues even

after we pay a claim on this benefit.

Additional term benefit provides an additional amount,

• equal to the sum assured chosen under this optional

52
 benefit, in case of your unfortunate death.

Accidental death benefit provides an additional

benefit,in case of your unfortunate death:

-due to an accident, and

-within 90 days of the accident.

TAX BENEFITS

Tax benefits described in section 88, section 80 D and

section 10(10D) of the income tax act are applicable.

PAYMENT OPTIONS

You have the choice of paying your premium either in

yearly, half yearly or quarterly models, or paying a single

One-time premium, depending on your convenience.

53
 RESEARCH
METHODOLOGY

54
It is of studying how the research problem is being solved significantly.
The term methodology answers in which of the available method or
Tchniques are relevant and which are not, regarding the problem in
hand. Hence, methodology should be systematic. The methodology
should be clear in the mind of researcher because this is the only thing
on which the whole project is based. It provides the guideline in the
mind of researcher to carry out the project .It provides the right
approach precede the research program.

Methodology provides the way to systematically the problem in hand.

It may be considered as science

MEANING OF RESEARCH

Research in common parlance refers to a search for Knowle. te

advance learner’s dictionary of current English lays down the meaning
of research as a careful investigation or enquiry especially through
each for new facts in any branch of knowledge.” According to Clifford
Woody research comprises defining and redefining problems,

55
formulating hypothesis or suggested solutions; collecting, organizing
and evaluating data; making deductions and reaching conclusions; to
determine whether they fit formulating hypothesis.

SCIENTIFIC RESEARCH

The scientific method of research encourages a rigorous, impersonal

mode of procedure dedicated by the demands of logic and objective
procedure. Accordingly scientific research implies an objective, logical
and systematic method i.e. a method free from personal bias or
prejudice, a method to ascertain demonstrable qualities of a
phenomenon capable of being verified, a method wherein the
investigation proceeds in an orderly manner and a method that implies
international consistency.

CRITERIA OF GOOD RESEARCH

It is important that the research is to be performed should be

systematic and should be based on a common ground. The research
should be objective oriented i.e. always moves towards the solution of
the problem or according to the project assigned. One expects the
scientific research to satisfy the following

Criteria:-

1. The purpose of the research should be clearly defined and

common concepts are used.

2. The research procedure should be described in sufficient

details to permit another researcher to repeat the research
for further advancement.

56
 3. The procedural design of the research should be carefully
planned to yield results those are as objective as possible.

4. The researcher should report with complete frankness,

flaws in procedural design and estimate their effects upon
the findings.

5. The analysis of the data should be sufficiency adequate to

reveal the significance and the methods of analysis used
should be appropriate.

6. The validity and the reliability of the data should be

checked carefully.

7. Conclusions should be confirmed to those justified by the

data of the research and limited to those for which the

data provide an adequate basis.

TYPES OF RESEARCH

57
 There are various types of research for the suit of researcher
These are as follows:-

1. DESCRIPTIVE Vs ANALYTICAL

Descriptive research includes surveys and fact findings enquiries

of different kind’s .the major purpose of descriptive research is
description of the state of affairs, as it exits at present. In social
sciences and business research we often use the term Ex post
Facto research for descriptive research studies in which
researcher seeks to measure such items as, for example,
frequency of shopping etc.in analytical research, on the other
hand, the researcher has to use facts or information already
available, and analyze these to make evaluation of the material.

2. APPLIED Vs FUNDAMENTAL

Research can either be applied research or fundamental

research. Applied research aims at finding a solution for
immediate problem facing a society or an industrial business
organization. Fundamental research is mainly concerned with
generalization and with the formulation of the theory,” Gathering
knowledge for knowledge’s sake is termed ‘pure’ or basic
research.

3. QUANTITATIVE Vs QUALITATIVE

Quantitative research is based on the measurement of quantity

or amount. It is applicable to phenomenon that can be expressed
58
 in terms of quantity. Qualitative research on the other hand, is
concerned with qualitative phenomenon. This type of research

aims at discovering the purpose .other type of research is

especially important in the behavioral science where the aim is
to discover the underlying motives of human behavior.

4. CONCEPTUAL Vs EMPERICAL

Conceptual research is that related to some abstract ideas or

theory. Philosopher and thinkers to develop new concepts or to
reinterpret existing ones generally use it. The empirical research
on the other hand relies on experiences or observation alone,
often without due regard for system and are capable of being
verified by observation or experiment.Emperical research is
appropriate when proof is sought that certain variables affect
other variables in some way.

RESEARCH DESIGN

A research design is the specification of the Methods and

procedure to be adopted for acquiring the information required
for solving the Problem .there is two types of marketing
research design

Exploratory research

conclusive research

DATA COLLECTION METHOD

There are two types of data:

59
 A.primary data

B. secondary data

PRIMARY DATA

Primary data are generated by a study specifically designed to

accommodate the data needs of the problem at hand.

SECONDARY DATA

Secondary data is any data originally generated for some purpose

other than the present research objectives. The sources of secondary
data are:

I. Internal data available from the company profile etc.

II. External data to facility research information was obtained from

magazines, journals, newspapers and Published books.

CHALLENGES BEFORE THE INDUSTRY

The new as well as the old insurers will have to face the number of
challenges in the liberalized market.

NEW INSURERS

60
The new insurers will have to invest a minimum capital of Rs. 100
Crores. The normal gestation period is of five years .the generation of
profit normally starts in the sixth year. Hence the new insurers will
have to be ready for locking up their capital for at least five years
before earning any profit. Besides they will face problem of shortage of
trained manpower for the insurance industry. The setting up of various
offices and distribution network is a time consuming process. Further
the new insurers will have to compete with established insurance
companies like LIC and GIC which have a corporate image and market
presence for several years.

EXPECTATION OF THE CONSUMERS

Today LIC has more than 60 products and GIC has more than 180
products to offer in the market. But most of them are outdated, as
they are not suitable to the needs of the consumers. Hence old as well
as new insurers will have to offer innovative products to the
consumers. The consumers are particularly expecting good pension
plans, health insurance, term insurance and investment products like
unit linked insurance from life Insurer’s .similarly the consumers
expect innovative products from the general insurers for managing
healthcare, property, insurance, accident insurance and other products
related to the personal line of insurance. The consumers also expect
reduction in the insurance products as the morality rate in India has
come down by three times in the last 50 years.

DISTRIBUTION CHANNELS
61
In the liberalized insurance market, there will be multiple distribution
channels, which will include agents, brokers, corporate intermediaries,
bank branches, affinity group and direct marketing through telesales
and internet. Some channels will be cheaper than others. Hence there
will be competition among the channels. The new insurers will operate
with help of multiple distribution channels but the existing insurers
may be forced to operate only with the help of agents. Hence, intense
competition will grow among the old and new insurers in the market to
insurers in the liberalized insurance market.

CONSUMER EDUCATION

Very soon the market will be flooded by a large number of products by

a fairly large number of insurers operating in the Indian market. Even
with limited range of products offered by LIC and GIC, the consumers
are confused in the market. Their confusion will further increase in the
face of a large number of products in the market. The existing level of
awareness of the consumers for insurance products is very low, it is so
because only 62% of the population of India is literate and less than
10% well educated. Even the educated consumers are ignorant about
the various products of insurance. Hence it is necessary that all the
insurers should undertake the extensive plan for education of
consumer’s .the consumer organization and the media also can play
very important role in education of consumers’ .this will result in
expansion of the insurance market and also will result in expansion of
the insurance market and will also enable the needy consumer to
purchase appropriate products.

CONSUMER GRIEVANCE REDRESSAL

62
The insurers will have to face an acute problem of the redressal of the
consumers, grievances for deficiency in products and services. The
Insurance Regulatory Development Authority (IRDA), the regulatory
body has already appointed Ombudsman for looking into the
grievances of the policy holders; his judgment will be binding on
insurer’s .further, under consumer protection act 1986, the consumer
court are operating at district, state and national level. In the
competitive market, awareness level of the consumers will increase
and it will help consumers to fight for their legal right for deficiency in
services .hence the number of legal cases filed by the consumers
against an insurer is likely to increase substantially in future. This will
be a challenge to the insurers.

ROLE OF FOREIGN COMPANIES IN INDIA

Government has allowed 26% foreign equity participation in the

insurance sector. This has its limitations .while most foreign insurers
planning to start their services in India were not pleased by this
condition, they reluctantly agreed that this was expected in an opening
economy and this will not change their outlook for India. After all no

63
insurance company can afford to ignore a market of 1 bn people. But
the fact remains those they:

• cannot appoint majority directors on the company board;

• cannot have say in the day to day workings of the company;Can

affect only special resolutions.

This cap, however will have a great impact on the Indian counter part
to raise 74%of the funds in their joint venture. To add to this if Indian
partners like State Bank of India, with over 9000 branches
nationwide, will demand premium for their existing distribution
network, we will see the foreign insurance companies demand hefty
premiums for bringing in their global expertise and brand.Mr.Vaidya,
chairman of SBI, has recently stated that all it is looking for is a good
and reliable partner and the question of a hefty premium to be
charged to its foreign partner is not significant. the monolith has finally
come to business senses foreign companies are unhappy even about
laws pertaining to repatriation of funds .the stipulated investment
criteria also something that all players in the sector, be it Indian or
foreign, are closing watching. The foreign players are essentially
looking to tap their global expertise in the variety markets and use
that know how to work in the Indian scenario. Designing of products,
information systems .technical expertise, manpower planning etc is
what one expects the foreign players to have a say in any venture of
the joint needs to be between equals. If this is not there then there is
every chance that partner in the venture will feel increasingly
uncomfortable and would be looking to call the joint venture off.

64
TARGET/TASK SET
65
 WEEKLY TARGETS: -

In the very first week of SIP my company guide assigned

me to conduct a market survey of 100 peoples and to find the positive
and negative perception in the minds of the customers regarding HDFC
SLIC and to prepare a report on the comparative study of HDFC SLIC
and Its competitors for that I prepared a questionnaire and in one
week I surveyed 118 customers out of which 27% are in favor of HDFC
SLIC policies because they are already having their Bank accounts in
HDFC and they don’t want to shift towards any other company and
then 30% customers are go with both companies HDFC SLIC & LIC
and 10% are not interested to take any insurance policy of any
company, then the rest 33% are those who only go with Life Insurance
Corporation i.e. LIC policies.

66
After it the target was same for every week i.e. to recruit one financial
consultant and to sell one policy of HDFC SLIC.
Time allotted for weekly target: - For the above survey my
company guide gave me four days i.e. 24/03/08 - 27/03/08 to
complete it and then on the fifth day i.e. on 28/03/08 I have to submit
the report but I completed it on 26/03/08 and on the 27/03/08 I
submitted my report to my company guide.
Time duration for weekly Target- There is a time limit of five days
to accomplish our weekly targets i.e. we have to complete the weekly
targets on fifth day positively i.e. If our weekly targets is to sell one
policy and to recruit one financial consultant then we have to complete
it in between Monday to Friday of the given week.

MONTHLY TARGET: -

Our monthly target is to recruit 6 financial consultants and

to collect a premium of Rs. 23,600 per annum in a month.

Time Duration for Monthly Target- There is time duration for

monthly target also like as per our monthly targets we have to collect
a premium of Rs. 23,600 per annum and to recruit six financial
consultants for HDFC SLIC in a month.

TARGET/TASK: -

Week No. Targets per Task Task completed

week started on on

67
1. To conduct a 24-03-2008 27-03-2008
market survey of
(completed before
100 people and to
time)
find the positive
and negative
perception in the
minds of the
customers
regarding HDFC
SLIC and to
prepare a report
on the
comparative study
of HDFC SLIC and
Its competitors.
2. (i).To Perform a 31-03-2008 04-04-2008
canopy activity
(Completed target
and Interact with
on time)
different
customers.

(ii). To sell one

policy and To
recruit one
Financial
consultant.
3. (i).To attends 7-04-2008 11-04-2008
IRDA training at
(Attended IRDA
Bhikaji Cama
training and training
branch.
on new product
(ii). To attends refresher)
training on new
68
 product refresher
in the same
branch.

4. To generate 20 14-04-2008 18-04-2008

fresh leads for the
(Completed target
recruitments
on time and
Financial
generated 30 leads)
consultants in
HDFC SLIC.
5. To sell one policy 21-04-2008 25-04-2008
and To recruit one
(Completed target
Financial
on time)
consultant.
6. To sell one policy 28-04-2008 01-05-2008
and To recruit one
(Completed target
Financial
before time and
consultant.
over achieved the
target by recruiting
three Financial
consultants)
7. To sell one policy 05-05-2008 09-05-2008
and To recruit one
(Completed target
Financial
on time)
consultant.
8. To sell one policy 12-05-2008 16-05-2008
and To recruit one
(Completed target
Financial
on time)
consultant.
9. To sell one policy 19-05-2008 23-05-2008
and To recruit one
(Completed target
Financial
69
 consultant.
on time)
10. To sell one policy 26-05-2008 30-05-2008
and To recruit one
(Completed target
Financial
before time and
consultant.
over achieved the
target by recruiting
three Financial
consultants)
11. To recruit five 02-06-2008 06-06-2008
Financial
(Completed target
consultants.
before time and
over achieved the
target by recruiting
six Financial
consultants)
12. To recruit three 09-06-2008 11-05-2008
Financial
(Completed before
consultants.
time)

70
STRATEGY
ADOPTED
71
Firstly I reached to those customers who have already using the
banking facilities of HDFC and having their saving banks account,
current account, credit cards and EDC for this I visited to different
branches of HDFC Banks and met with the customers directly in branch
and then I visited peoples working in different industries, retail shops
to gather information regarding their interest in HDFC SLIC policies
and continuously trying to convince them for HDFC SLIC products and
to join HDFC SLIC as a Financial Consultants.

Methods Adopted for Marketing HDFC SLIC products: -

I adopted different methods to approach customers such as-

Personal selling

72
 Telephoning

Questionnaire

Market research

Kiosk marketing

Personal selling- It involves communication between a seller and one or more

potential buyer, through it I have personally contacted different customers
belonging to industries to sell the different products of HDFC Standard Life
Insurance and to convince the people to join HDFC as a Financial
Consultant I also visited some colleges and convince some
students to join HDFC SLIC as a Financial Consultant and earn
part time.

Telephoning- In the second week of SIP I used my survey database for cold calling
and then I took an appointment from different customers and finally met them for
my financial dealing of HDFC SLIC
products. ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss
sssssssss

Questionnaire- I also used questionnaire technique to create my own customer

database so that I can call them and create their interest towards HDFC SLIC
products the questionnaire which I used for my survey was very useful for
me because from that only I generated 2 policies and recruited 3
Financial consultants.

Market research- I conducted a market research in the first week of my SIP and met
with different peoples some of them are working, some are self employed and
owing their business and some of them are students after this survey I came to
know that peoples are less aware about HDFC SLIC they only have some
knowledge about HDFC Bank that time I took their contact
numbers and revertedthem back through telephoning technique.
73
 Kiosk marketing- In second week of my SIP my company guide divided some teams
and gave us a task in which we two have to perform a canopy activity in the
compound of escort’s securities office Connaught place new Delhi it was our
first opportunity to interact with the different customers group at
a same place and face their queries and provide them an
appropriate solution for it. It was such a great experience in
which we generate a new customer’s data base which we will use
in the next month.

STRATEGY ADOPTED IN ACHIEVING THE TARGETS: -

Firstly I created my own database of customers through market survey.

 Then I used that customer’s database for cold calling and some of
them gave me appointments.

After meeting them I took some other references from them and to
follow up those references.

I took some data from the different branches of HDFC banks and
ATMs and create a new Customer’s database.

I performed a canopy activity and from that activity I interacted with

different people at a same place.

I focused towards the students group from different institutions and

colleges and tried to convince them to join HDFC SLIC as
financial consultants.

I and my team pasted some posters in the different locations near

colleges, bus stops and metro stations because of this we get a
favorable response and generate customer’s database.

74
METHODOLOGY: -

Market Survey.

Collection of Customers Database.

Attended Training on Product Knowledge and on

Recruitment Policies of Financial Consultants.

Cold Calling.

Take an appointment from the responding

customers.

Face to Face Interaction with costumers.

Meet them and convince them to take HDFC SLIC

products or to join HDFC SLIC as a Financial
Consultants.

Canopy activity to reach towards large customers

group.

Promotional marketing by distribution of

information broachers and pasting of posters in
different locations.

75
ACHIEVMENTS
&
LEARNING

Targets Achievements Learning

76
week
No.
1. To conduct a Conducted a Learnt how
market market survey to
survey of of 118 interact
100 people customers and with
and to find submitted a customer
the positive final report to s.
and negative my company
Learnt how
perception guide before a
to facing
in the minds last due date
the
of the i.e. on
different
customers 27/03/08 which
queries of
regarding is appreciated
customer
HDFC SLIC by our
s.
and to company
prepare a guide.
report on
the
comparative
study of
HDFC SLIC
and Its
competitors.
2. (i).To Performed a Learnt how
Perform a canopy activity to deal
canopy with my team with the
activity and in the customer
Interact with compound of s in
different Escorts

77
 customers. securities office market.
Connaught
(ii). To sell Learnt how
place new Delhi
one policy to sell
and created a
and To insurance
new customer
recruit one policies in
database.
Financial market.
consultant.
Came to
know
about the
competito
rs
products.
3. (i).To Attended IRDA Learnt about
attends training and a some
IRDA training on new
training at product product
Bhikaji knowledge i.e. of HDFC
Cama new product SLIC.
branch. refresher
Learnt the
conducted in
(ii). To importan
our own branch
attends ce of
and got a
training on training.
certificate from
new product
RINS college of
refresher in
insurance.
the same
branch.

78
4. To generate Generated 30 Learnt to
20 fresh fresh leads for make a
leads for the Financial network
recruitments consultants and of people
of FC. remarked for by
my excellent communi
field work by cating
our company and
guide in my SIP convincin
log book. g them.
5. To sell one Sold one policy Learnt how
policy and and recruited to sell
To recruit one Financial insurance
one consultant. policy
Financial from a
consultant. reference
.
6. To sell one Sold one policy Learnt about
policy and and recruited the
To recruit three Financial recruitme
one consultants and nt
Financial remarked for processor
consultant. my good of
team work by Financial
our company consultan
guide in my SIP t in brief.
log book.
7. To sell one Sold one policy Learnt the
policy and and recruited importan
To recruit one Financial ce of
one consultant and communi

79
 Financial remarked for cation in
consultant. my excellent corporate
performance .
and
responsible
towards work
by our
company guide
in my SIP log
book.
8. To sell one Sold one policy Learnt how
policy and and recruited to make
To recruit one Financial friendly
one consultant and relations
Financial remarked for with
consultant. my good field customer
work by our s and its
company guide importan
in my SIP log ce.
book.
09. To sell one Sold one policy Learnt the
policy and and recruited importan
To recruit one Financial ce of
one consultant and being
Financial remarked as confident
consultant. a capable one of the
who knows work u
how to deal in do.
sales by our
Learnt the
company guide
importan
in my SIP log
ce of
book.

80
 being
trustwort
hy at
work.
10. To sell one Sold one policy Learnt how
policy and and recruited to
To recruit three Financial understa
one consultants and nd
Financial remarked as customer’
consultant. focused, s
dedicated and requirem
hard worker ents in
by our insurance
company guide policies.
in my SIP log
book.
11. To recruit Overachieved Learnt how
five the given to work
Financial weekly target & for
consultants. Recruited six corporate
financial and their
consultants. working
environm
ent.
12. To recruit Recruited three Learnt how
three financial to
Financial consultants. motivate
consultants. a team
for work.

81
AWARDS
&REWARDS
82
 RECEIVED

TOTAL BUSINESS GIVEN TILL DATE: -

Number of policies Sold : Seven

Amount of premium collected : Rs. 94,000

Number of Recruitments given : 19 (FC)

Number of leads generated : Two Hundred

Total Business Given : Rs. 94,000 (IP)

Rs. 13,650 (FC)

----------------------

Rs. 1, 07, 650

83
-----------------------

84
 ANALYSIS OF
PERFORMANCE
V\S TARGETS

HDFS SLIC REQUIRES BUSINESS FROM MANAGEMENT

TRAINEES DURING 3.5 MONTHS OF SUMMER INTERNSHIP
PROGRAM

BUSINESS REQUIRES BUSINESS GIVEN

(RS.)
(RS.)
POLICIES 82,600 94,000
F.C 17,850 13,650
TOTAL 1,00,450 1,07,650

85
 OVERACHIEVEMENT BY 7%

IN MONETARY TERMS

MARKET
SEGMENTATION
86
 As
a part of field activity, I was asked to market the

products of HDFC SLIC.The decision to adopt a way to

market the products was left to me. First of all, I was

asked to segment the market into various strata’s or

groups make two segments of the market as follows:

Middle income level people

High net worth individuals

87
The reasoning behind these grouping was that these

people would be easily accessible and easy to talk

to. My mentors gave me permission to go by this way of

segmentation .I decided to go around DELHI and

collect data. This data involved names of people and

their address then I would have got the phone numbers

of these people from the directory. But this was a very

hectic job, especially given the summer heat out. Then

I got the data of around 300 people. This data

comprised of names of people, their phone numbers

and address.

Contacting these people involved making cold calls to

them from the office of HDFCSLIC in DELHI .i would

introduce myself as a student doing project in

HDFCSLIC and that I wanted to meet the person

regarding the study of investment patterns of people

of DELHI and their perception of insurance, some

people gave appointment and asked me to meet

them.

At later stages of the project, I directly introduced

88
myself as an HDFCSLIC employee and that HDFCSLIC

had come with interesting plans of saving, protection,

pension and investment. I would ask them

if they were interested in any of the plan and could

spare 15 min of their schedule. I could come to their

place and tell and explain them those plans in detail. If

I got an appointment .I would go to their places and

meet them. I would ask them where they had invested

previously and what were the parameters that they

considered for investing .then I would explain them the

various investment plans of HDFCSLIC.After all the talk, I

would ask them for their difficulties and doubts. I would

tell them that I would call them later at a fixed date for

their interest in the plans of HDFCSLIC and any kind of

doubts or difficulties that they would have in

understanding the plans.

89
 M
ARKET FEEDBACK

90
I have noted down the responses of people an the

data sheets I had maintained to make calls to people

and meet them. These responses involved direct refusal

for interest in HDFCSLIC plans of giving an

appointment. Most of the people enquired about the

plans on the phone itself. After sufficient introduction to

the plans, they gave an appointment and asked me to

meet them.

91
Recommendations

92
 The insurance companies should now try to identify the gap
between current level of customer service and customer
expectations. Some
of the strategies being recommended are as follows:

 Product Differentiation: Offering a product that is distinctly

different from other products available in the market.

 Innovativeness: Identifying means of a delightful customer

experience.

 Riders: These are additional offerings along with the main

product.

 Flexibility: The companies should make their products

flexible for the convenience of their customer.

 Hassle Free Service: All bureaucracy in customer

interactions should be eliminated.

 Proper Policy Documentation: Wrong interpretations/ non-

awareness of policy document by the customer may have
93
serious implications in the long term and the possibility of the
same should be alleviated by the insurance companies.

CONCLUSION

94
Here I am going to explore my experience that I have gained
during my summer training period on the market field under
the visualization of some senior active members of the HDFC
Standard life insurance co. ltd.

I worked on the field for two months. During the first few days
I surveyed the market and tried to understand the thinking of
the people whether they are interested to join HDFC Standard
life career option. I approached a lot of respected persons and
convinced them about the beneficial features of the work if
they join & work with HDFC Standard life.

I met many persons and convinced them to join the HDFC

Standard life insurance co. ltd. Care Consultant for setting a
brilliant career. Many of the prospects know about the HDFC
Standard life is a international organization. they are very
much interested to join HDFC Standard an insurance care
consultant, as they are very awaked and determined towards
their career.
It is also surveyed that the only about 10% people has their
life insurance in this country so it may be a great career option
for the public who want to bring their life from an ordinary to
extra ordinary life.

surance Co. Ltd. is giving the opportunity to the public that not
only giving a great career but also a chance to enhance their
personality as a gentle human.
I want to give thanks to all those esteemed active members of
the HDFC Standard life for giving me the opportunity to work
with them.
95
ANNEXURE

96
 QUESTIONNAIRE

1)
NAME: -------------------------------------------------------------

AGE: -- above18 ( ), 25-30( ), 30-40( ), 40-50( ), above 50( ).

SEX: - Male ( ), Female ( ). Address:

------------------------------

2) What is your occupation?

Ans: -Business ( ), service ( ), student ( ), House wife ()

Any other ( ), Specify-----------------------

3) What is your qualification?

Ans:-Inter or equivalent ( ), Graduate ( ), Post graduate ( ),

Other specify--------------------

4) Why did you join as consultant?

Ans:-(a) Earn money (b) social status (c) time engagement

(d) Growth (e) other specify ---------------------

5) How many dependent in your family?

---------------------------------------------

6) How did you get knowledge about this insurance firm?

97
Ans: -a) Advertisement b) Magazines c) relatives d) other
consultants

e) Other employee of the firm

f) Others specify --------------------

7) What specific feature do you want in your insurance

company?

Ans:-
---------------------------------------------------------------------------
--------

---------------------------------------------------------------------------
---------

---------------------------------------------------------------------------
---

8) Do you want basic salary as an advisor?

Ans: Yes/No\) Will you invest your own money in ICICI

Prudential?

Ans: Yes/NO

10) Is 100 hours training is suitable for you?

Ans: Yes/NO

DATE: -
--------------------------------------

SIGNATURE OF
INTERVIEWER

98
 DATA ANALYSIS
PE
RSON KNOW ABOUT LIFE INSURANCE

YES 83%

NO 17%

100%

80%

60% YES
NO
40%

20%

0%

PERSONS KNOW ABOUT LIFE INSURANCE THROUGH

Through Agents 22
Through friends 17
Through advertise 52
Others 11

99
FOR PERSON HAS TAKEN POLICY

For Business 25%

For Family 70%

For Other Purpose 5%

For Business
For Family
For Other Purpose

100
 PERSON RANKED THE BENEFITS OF LIFE INSURANCE:

Not
Benefits Important Less important important
Saving income tax 45% 40% 15%
Financial planning 52% 31% 17%
Family security 75% 18% 7%
High rate of nature 65% 25% 10%
capacity of taking loan
in future 25% 30% 45%

Not important
capicity of taking loan in
future
High rate of nature
Less important
Family security

Financial planning
Important
Saving income tax

0 0.2 0.4 0.6 0.8

101
 BIBLIOGRAPHY

Magazines: -

The Insurance Journal

102
 Intelligent Investor

Business Today

News Papers: -

Economic Times

Hindu Business Line

Web Sites Visited: -

www.hdfcInsurance.com

www.Irdaonline.com

www.bimaonline.com

www.Indiainfoline.cosm

103