A

Project study report

ON

HDFC STANDARD LIFE INSURANCE LTD

“ANALYSIS OF DIFFERENT PRODUCTS AND PLANS OF HDFC

STANDARD LIFE INSURANCE COMPANY LTD.”

Submitted in Partial Fulfillment for the

Award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by:- Submitted to:-

KAPIL DEV Mr. Mukesh Machra

M.B.A. PART-II HOD

2008-2010

Institute of Information & Management Sciences

7-A, RIICO Institutional Complex, Sitapura, Jaipur- 302 022
1
 PREFACE

“One and the only certain thing in this world in uncertainty ”

The above statement correctly depicts the uncertainty prevailing in the environment.
In order to reduce risk due to uncertainty many methods are developed and one such
method is insurance. Insurance is a contract of indemnity where the indemnifier (insurer)
promises indemnified (insured) to protect him. Two main streams of insurance are popular
that is life insurance and general insurance. Rather more specifically saying the project is
an attempt to know the awareness level about Financial Consultant of Life Insurance
Company, whose are the driving forces of such companies.

For the purpose of study a questionnaire was made and it was filled by a sample of
people.

After due analysis of responses from these 221 customer it was found that people
are want to join insurance companies but they are not aware about the Jobs & FC even
they have no proper information about FC.
They don’t have any idea about the private players in this sector.

In the end of the research project certain suggestion regarding for approach & recruit the
desired person as FC in HDFC Standard Life are given so as to increase the awareness
level regarding the FCs.

2
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Mr. Vibhor Jha Branch Head Ajmer HDFC
standard life insurance. For guiding me right for the inception till the successful completion
of the project. I sincerely acknowledge him for extending their valuable guidance .support
for literature, critical review of the project and the report and the above all the morel support
he had provided for me with all the stage of this project

I would also like to thank the supportive staff marketing department for their help &
cooperation throughout our project.

I would also like to thank the supporting Mr. Mukesh Machra (HOD of IIMS) for their help
and cooperation throughout our project.

KAPIL DEV

3
 EXECUTIVE SUMMARY

“One and the only certain thing in this world in uncertainty”

The above statement correctly depicts the uncertainty prevailing in the environment.
In order to reduce risk due to uncertainty many methods are developed and one such
method is insurance. Insurance is a contract of indemnity where the indemnifier (insurer)
promises indemnified (insured) to protect him. Two main streams of insurance are popular
that is life insurance and general insurance. Rather more specifically saying the project is
an attempt to know the awareness level about Financial Consultant of Life Insurance
Company; whose are the driving forces of such companies.

For the purpose of study a questionnaire was made and it was filled by a sample of
people.

After due analysis of responses from these 221 customer it was found that people
are want to join insurance companies but they are not aware about the Jobs & FC even
they have no proper information about FC.
They don’t have any idea about the private players in this sector.

4
INDEX

S. No. Contents Page No.

01. Introduction to the Industry 6

02. Introduction to the organization 20

41
03. Research Methodology
41
3.1 Title of the study
41
3.2 Duration of the project
41
3.3 Objective of study
41
3.4 Type of research
42
3.5 Sample size & method of selecting
sample
44
3.6 Scope of study
45
3.7 Limitation of study 45
04. Fact & finding 46

05. Analysis & Interpretation 48

65
06. SWOT Analysis
07. Conclusion 70

08. Recommendations & suggestion 73

09 Appendix 75

10. Bibliography 79

5
INTRODUCTION TO
THE INDUSTRY

6
INTRODUCTION TO THE INDUSTRY

What is Insurance?

Insurance is a contract between two parties whereby one party called insurer undertakes In
exchange for a fixed sum called premiums, to pay the other party happening of a certain
event.

Insurance business is divided into four classes:

1) Life Insurance
2) Fire Insurance
3) Marine Insurance and
4) Miscellaneous

To get insurance an individual or an organization can approach to an insurance Company

directly, through Insurance Agent of the concerned company or through Intermediaries.

Every asset has a value for its owner and also for those who are benefited with the
existence of that asset. Insurance is concerned with the protection of economic value of
assets.
All of us are interested in the creation of assets because:
i. All assets have values.
ii. They yield income to the owner.
iii. They meet some other needs of the owner.
iv. They may provide satisfaction of some needs and also yield income to the
owner.

Every asset has normally an expected lifetime. During this period, it is expected to perform
and provide income/comfort to the owner. The owner, being aware of this, plans the things
in such a way that by the time the expected lifetime of the asset expires, he is ready with
the funds required for its replacement. In this way, he ensures that the value or income from

7
the asset is not lost. Well, this appears to be a fine arrangement provided the asset
completes its expected lifetime!

All assets carry the risk of being destroyed or damaged. But all assets may not necessarily
get destroyed or damaged. Only in a few instances, the probability turns out to be true and
the asset gets actually lost or destroyed by accident or some other unfortunate event before
the completion of its expected lifetime. The owner and those deriving benefits from the
asset will suffer because the arrangement to make available its substitute is not yet ready.

Insurance is helpful in mitigating such adverse consequences. To sum up, assets are
insured, as they are likely to be lost or made non-functional through an accidental
occurrence.Insurance does not protect the assets. This means that insurance cannot
prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the
perils. It only compensates, may not be fully, the economic or financial loss resulting to the
asset from such damage or destruction.

Brief History of Insurance

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

Life Insurance in India

In India, insurance started with life Insurance. It was in the early 19 th Century when the
Britishers on their postings in India felt the need of life insurance cover.

It started with English Companies like... ‘The European and the Albert’. The First Indian
insurance company was the Bombay Mutual Assurance Society Ltd., formed in 1870.

8
In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of
Indian companies were formed in various parts of the country to transact insurance
business. To name a few:: ‘Hindustan Co-operative’ and ‘National Insurance’ in Kolkata;
‘United India’ in Chennai; ‘Bombay Life’, ‘New India’ and ‘Jupiter’ in Mumbai and ‘Lakshmi
Insurance’ in New Delhi.

Indian Insurance Industry-Introduction

India is the largest democracy in the world having a population more than one million. It is
5th largest in the world in terms of purchasing power parity(PPP). India GDP growth rate is
over 6 percent per year on average for the last decade and saving rate is around 26
percent of GDP.
Through India’s economic development, it becomes the most lucrative insurance
markets in the world. Before the year 1999 there were monopoly of state run Life Insurance
Corporation of India(LIC) in life insurance sector and General Insurance Corporation of
India(GIC) with its four subsidiaries in general sector. In the wake of reform process and
passing Insurance Regulatory Development Act(IRDA) through Indian Parliament in 1999,
Indian Insurance was opened for private companies.
Nationalisation of Life Insurance in India

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

Purpose and Need for Insurance

 Assets are likely to be destroyed or made non-functional due to accidental

occurrences called perils. Assets can, therefore, be insured. A few examples of
perils are: fire, floods, breakdowns, lightning, earthquake etc. Perils are the events.
Risks are the consequential losses or damages.
 Possibility of damage to asset caused by any peril is the risk that asset is exposed
to.
 Risk means uncertainty or unpredictability about future loss or damage, which may
or may not happen. This refers to the losses, which may happen suddenly and
unexpectedly.
 We can say that a human life is also an income-generating asset.

9
  Human life may be lost due to unexpected early death or become non-functional
following sickness or disabilities cause by accidents.
 If this happens by the time one is on the verge of retirement when his income is
about to cease, he might have made alternative arrangements to meet his needs.

But if this happens at a younger age when he is not expected to have made adequate
alternative arrangement, those who are dependent on his income, will suffer. Insurance is
necessary to help those dependent on his income.

Types of Insurance

Basically there are two types of Insurances:

 Non-Life Insurance
 Life Insurance

INSURANCE

NON-LIFE LIFE
INSURANCE INSURANCE

--MARINE --ONLY HUMAN LIFE

INSURANCE INSURANCE
INCLUDES IN THIS
--FIRE CATEGORY
INSURANCE
--HUMAN BEING’S
--MISCELLANEOUS SICKNESS, ILLNESS
INSURANCE AND OTHER
 VEHICLES ASSURANCE GIVEN
 FURNITURE IN THIS CATEGORY
 BUILDING
 AIRCRAFTS --LONG TERM
 GENERAL CONCEPT
 INTANGIBLES

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PURPOSE &NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed or made non-functional
before the expected life time, through accidental occurrence. Such possible occurrences
are called perils. Fire, floods, breakdowns, lighting, earthquakes, etc., are perils. If such
perils can cause damage to the asset, we say that asset is exposed to that risk. Perils are
the events. Risks are the consequential losses or damages. The risk to a owner of a
building, because of the peril of an earthquake, may be a few lakhs or a few crores of
rupees, depending on the cost of building, the contents in it and the extent of damage. The
significance or need of insurance can be categorized into the following four groups:

INDIVIDUAL/FAMILY POINT OF VIEW

 Security & safety

 Investment
 Conservation of health
 Increase efficientcy
 Fosters economic independence
 Security of the property mortgaged
 Mental peace
 Planning for future
 Exemption from tax liability
 Safety against decree
 Provision for future needs
 Increases goodwill
 Capitalization of earning capacity
 Creates awareness amongst insureds
 Availability of credit against insurance policy

BUSINESS POINT OF VIEW :

 Safety against risk

 Source of credit
 Safety against perils
 Protection against the loss of key-man
 Determination of cost of accidents
 Encourages loss prevention measures
 Protects employee interests
 Promotes foreign trade
 Aid to small business
 Stability of partnership business
 Business stability
11
  Makes cost of accidents certain

SOCIAL POINT OF VIEW :

 Economic security
 Provides employment
 Promoted education
 Distribution of risks
 Prevention of social evils
 Awareness towards health
 Prevention of losses
 Contributes towards the development if utility services
 Security to public & private property

NATIONAL POINT OF VIEW

 Increases national savings

 Contributes towards investment
 Promotes capital formation in the country
 Increase the employment opportunities
 Contributes towards national income
 Contributes to the function of public welfare

12
Insurance Regulatory Development Authority:
On the recommendation of Malhotra Committee, an Insurance Regulatory
Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an
insurance regulatory apparatus essential for proper monitoring and control of the Insurance
Industry. Due to this Act several Indian private companies have entered into the insurance
market, and some companies have joined with foreign partners.
In this economic reform process the Insurance Companies will boost the
socioeconomic development process. The huge amount of funds that will be at the disposal
of Insurance Companies will be directed as desired avenues like housing, safe drinking
water, electricity, primary education and infrastructure. The growth of the debt market will
also get a boost. Above all the policyholders will get better pricing of products from
competitive insurance companies.
Life Insurance is universally acknowledged to be an institution, which eliminates ‘risk’
and provides the timely aid to the family in the unfortunate event of death of the
breadwinner.
Life Insurance is a contract for payment of a sum of money to the person assured (or
nominee) on the happening of the event insured against. The contract provides for the
payment of premium periodically to the Insurance Company by the assured. The contract
provides for the payment of an amount on the date of maturity or at specified dates at
periodic intervals or at unfortunate death, if it occurs earlier.

What Is Life Insurance?

Insurance companies help take the financial sting out of a loss of life by collecting
money from the subscribers to the program, investing the amount, and distributing a sum of
money back to the subscriber or to the subscriber's estate after death.

13
 Financially, most people can justify the cost of having some life insurance. Life
insurance is one means of adding to or building an estate. Life insurance also acts as a
protection against loss of the insured's income or assets.

Why Life Insurance

Life Insurance has come a long way from the earlier days when it was originally
conceived as a risk-covering medium for short periods of time, covering temporary risk
situations, such as sea voyages. As life insurance became 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 for replacement of income on death etc.

b) Regular Savings:
Providing for one's family and oneself, as a medium to long term exercise (through a series
of regular payment of premiums). This has become more relevant in recent times as people
seek financial independence for their family.

c) Investment:
Put simply, the building up of savings while safeguarding it from the ravages of
inflation. Unlike regular saving products, investment products are traditionally lump sum
investments, where the individual makes a one off payment.

d) Retirement:
Provision for later years becomes increasingly necessary, especially in a changing
cultural and social environment. One can buy a suitable insurance policy, which will provide
periodical payments in one's old age.

14
 In simple words, insurance protects against untimely losses. Insurance has been
found useful in the lives of persons both in the short term and long term. Short term needs
like sudden medical costs and long-term needs like marriage expenses etc can be met with
using life insurance.

List of well-known Life Insurance Companies

Company Foreign Major local Business of

Shareholder Shareholder Local
Shareholder
1. Allianz Bajaj Allianz Bajaj Auto Auto Manufacture
Life
2. AMP Sanmar AMP Sanmar Divesified
Conglomerate
3. Birla Sun Life Sun life of Birla Global Diversified
Canada Finance Conglomerate
Medical &
Consumer
4. Dabur CGU CGNU Dabur Products
5. HDFC Standard Life HDFC Investment &
Standard Life Finance
6. ICICI Prudential(UK) ICICI Investment &
Prudential Finance
Life
7. ING Vysya ING Vysys bank Bank & other
Life investors
8. Max New New York Life Max India Jammu Bank & Diversified
York Life & Kashmir
9. MetLife India MetLife Bank; Pallonji Conglomerate
Group
10. OM Kotak Old Mutual Kotak Mahindra Investment &
Mahindra Finance
11. SBI Life Cardiff SBI Bank
12. TATA-AIG AIG TATA Diversified
Life conglomerate

15
Yr: 2000-2001 : ( From 2nd April '2000 to 31st December'2001)
Insurance Industry in the year 2000-2001 had 16 new entrants, namely:
Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private

Limited

16
 9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Pvt. Ltd.

Yr: 2001-2002 : ( From 1st Jan 2002 to Dec. 2002)

Insurance Industry in this year, so far  has 5new entrants; namely
Life Insurers:

S.No Registration Date of Name of the Company

Number Reg.
1 121 03.01.2002 AMP Sanmar Life Insurance Company
Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

Yr: 2003-2004 : ( From 1st Jan 2003 till Date)

Insurance Industry in this year, so far  has 1new entrants; namely
Life Insurers:

S.No. Registration Date of Name of the Company

Number Reg.
1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :

Insurance Industry in this year, so far  has 1new entrants; namely

Life Insurers:

17
S.No. Registration Date of Name of the Company
Number Reg.
1 128 17.11.2005 Shriram Life Insurance Company Ltd.

Yr: 2008-2009 :

Insurance Industry in this year, so far  has 2 new entrants in Life and 1 new
entry in General ; namely

Life Insurers:

S.No. Registratio Date of Name of the Company

n Reg.
Number
1 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

2 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.

General Insurers:

S.No. Registratio Date of Name of the Company

n Reg.
Number
1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.

Key Challenges faced by private insurers

The key challenges, which all private insurers will face in the coming months, are in
the areas of product innovation, managing investment, distribution, customer’s service and
expense control. Some of these are briefly discussed here:
Life Insurance in India has traditionally been distributed through the agency channel.
The limiting factor for private insurances will be the extensive and expensive distribution
structure required for reaching through the segment. Distribution will be a key determinant
success for all insurance companies. The new entrants cannot expect to match the
extensive distribution network of LIC (of over 7 lakh agents). Of these only a small
proportion is meaningfully productive. Since there were no requirements relating to training
18
and passing of examination. Both of which are now required, requirement was in
inexpensive and rather casual. The LIC did not mind even if a large part of its agency force
remained inactive and/or unproductive. This is not the case now.
Agents have to be trained for 100 hours and they have to pass an examination. It is
estimated that by the time an agent is licensed and becomes productive, about Rs. 15000
to Rs. 20000 would have been incurred by the insurer. Because of this insurers cannot
afford to have many non-productive and this will strengthen the market.

Role of Technology

In the present competitive environment technology will play a definite role in

achieving a competitive edge. Technology will play an increasing role in aiding design and
administering of insurance products, as well as in building and maintaining long term
customer relationships. Internet & Intranet is the main factor for existing in competitive
market.

Future Opportunities

Opening up of the pensions sector: Considerable discussions have taken place on

thissubject, only some form of retirement benefits protects 11 percent of the working
population. It is learnt that a detailed proposal is before the Government to open up the
pension sector. Providing coverage through a national pension scheme is challenging; but it
is necessary, particularly for the non-salaried or self-employed workforce and those
engaged in agriculture. The life insurance industry has come alive, Awareness has
increased and it is being expected that the market will grow fast. In five years one will be
looking at an annual premium income of Rs. 100,000 crores in the life insurance sector. Life
insurance will, at long last attain its rightful place in the economy.

19
INTRODUCTION TO
THE ORGANISATION

20
INTRODUCTION TO THE ORGANISATION

Background: Promoters

Housing Development Finance Corporation

 27 Year track record

 Strong Public and market acceptance
 Market leader in mortgage finance – 18 Lakh homes financed in over 2400 towns
 11 Lakh retail deposit customer base
 Asset base of More than Rs. 15000 Crores
 Deposits and bonds rated FAAA and MAAA by CRISIL and ICRA for last 10 years.

Standard Life Assurance Company

 Over 175 years experience in Life Insurance

 Assets of US $ 110 Billion
 Voted Life Insurance Company of the decade by IFAs in UKs

Market Potential

 Only 25% of “insurable population” has been covered till this date
 Much smaller ratio of the population is adequately covered(less than 23%)
 Life premiums expected to increase from 6% to 18% of gross Domestic Savings by
2010
 Premiums expected to rise from Rs. 26,000 Crores to Rs. 5,12,000 Crores by 2010
 Policies in forces expected to go from 10 Crores to over 18 Crores by 2010.

21
Why Life Insurance from HDFC Standard Life

 Strong parentage & long term commitment to this business.

 Ability to inject additional equity capital
 Can support long gestation business
 Renowned for transparency and high corporate governance standards
 Track record in personal financial sector.
 Realistic promises and need based selling
 Customized solutions
 Commitment to customer
 Superior service levels
 Quality of advice

22
Market leader in Serving 250 Branches
the Housing customers for
Finance Sector over 180 years 11,00,000
Customers
Over 2 million Currently
satisfied administers £125 Multiple
customers billion in assets Products
- Protection
Voted 5 Star Life - Unit Linked
Over 1,00,000 & Pensions - With Profit
Crores in Loan provider for last
Approvals 10 years More than
8 lakh
policyholders
Ranked as India’s
3rd Best Managed Servicing over
Company by 440 towns in
Finance Asia- India
2005

23
HDFC’s KEY STRENGTHS

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

HDFC Standard Life

”Respect Yourself”

HDFC Standard Life Insurance Co. Ltd. Is a joint venture between, HDFC, India’s largest
housing finance institution and Standard Life Assurance Company, Europe’s largest mutual
life company. HDFC manages over Rs. 28,000 crore in assets and Standard Life manages
over US $ 100 billion in assets. Both the promoters are well-known for their ethical dealings,
their financial strength and their commitment to be a long-term player in the life insurance
industry- all important factors to consider when choosing your insurer.

The Partnership:

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

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

The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act

24
passed in parliament. Despite this both companies remained firmly committed to the
venture.

In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC
Treasury department to advise them upon their investments in India.

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

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

In a further development Standard Life agreed to participate in the Asset Management

Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was
launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited:

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

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

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life
owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations.

25
HDFC and Standard Life have a long and close relationship built upon shared values and
trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies
and be the yardstick by which all other insurance company's in India are measured.

Mission:

Their 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 a combination of
several things like-

 Customer service of the highest order

 Value for money for customers
 Professionalism in carrying out business Innovative products to cater to different
needs of different customer
 Use of technology to improve service standards
 Increasing market share

Core Values:

 SECURITY: Providing long term financial security to our policyholders will be our
constant endeavor. They will be doing this by offering life insurance and pension
products.
 TRUST: They appreciate the trust placed by their policyholders in them. Hence, they
will aim to manage their investments very carefully and live up to this trust.
 INNOVATION: Recognizing the different needs of their customers, be offering a
range of innovative products to meet these needs.
HDFC Standard Life’s mission is to be the best new life insurance company in India and the
values that will guide HDFC Standard life in this.

PRODUCTS

26
HDFC Standard life Insurance offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its 16 products can be enhanced with up
to 4 riders, to create a customized solution for each policyholder .

Individual Products

Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range
of products and invites you to choose the one that suits you best.

27
 Plan Benefits

Savings Plans

Endowment Assurance Plan

Unit Linked Endowment Plan
Children’s Plan
Unit Linked Young Star Plan
Money Back Plan
Life Insurance with Savings
Life Insurance & Savings with
choice of investment funds
Financial Security for your child
Financial security for your child with
choice of investment funds
Life Insurance with Savings

Investment Plans

Single Premium Whole Of Life

Investment with Life Insurance
Plan

Protection Plans

Term Assurance Plan Life Insurance at an affordable price

Loan Cover Term Assurance Life Insurance customized for home
Plan loans

Retirement Plans

Personal Pension Plan Savings for retirement

Retirement Savings with a choice of
Unit Linked Pension Plan
investment funds
Group Products

Group Term Insurance:

HDFC Standard Life Insurance offers a Group Insurance scheme for companies
called 'Group Term Insurance.This product has been designed to offer innovative features
and a high degree of customization.

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Gratuity Plan

The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer
and gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The
contributions that you decide to invest in this policy will assist you in meeting your gratuity
obligations in a systematic manner.

Leave Encashment Plan

The HDFC Leave Encashment Plan is a flexible insurance policy, which helps
employers, and leave encashment scheme trustees in funding leave encashment
obligations without the employer’s profit and loss account being unexpectedly impacted.

Development Insurance Plan:

This product is well suited for the economically weaker sections of society and
caters specifically to their needs. It makes available life cover at affordable rates.

FLEXIBLE RIDER OPTIONS

HDFC Standard Life offers 4 flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1. Accident & Disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount equal to
the sum assured under the policy. If the death occurs while traveling in an authorized
mass transport vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.

2. Level Term cover: This rider provides the option to increase the risk cover. The
cover may be increased for an additional amount up to a maximum of the existing
basic sum assured on your policy.

3. Critical Illness Benefit: protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death.
29
 4. Major Surgical Assistance Benefit : provides financial support in the event of
medical emergencies, ensuring that benefits are payable to the life assured for
medical expenses incurred for surgical procedures. Cover is offered against 43
different surgical procedures.

ORGANISATION STRUCTURE

The organizational pattern of the life Insurance companies are broadly similar each
company has a board of director president by a full time chairman cum managing
director. Each company operates to out the country through regional/area offices,
divisional office and branches. These would be clearer by diagram-

Organizational Pattern Diagram

Chairman-Cum-Managing Director

REGIONAL MANAGER

30
DEVELOPMENT
DIVISIONAL
BRANCHAGENTS
MANAGER
MANAGER
OFFICER
Organ gram of the Branch:

Branch
Sales
Direct Manager Insurance 31
Sales Unit
Sales (RM) Advisors
Manager Manager
Our group Companies:

 HDFC Limited

 HDFC Bank Limited

32
  HDFC Asset Management Company Limited

 HDFC Securities Limited

 HDFC Realty Limited

 HDFC Chubb General Insurance Company Limited

INSURANCE AGENTS

An insurance agent is a person who sells insurance policies after training and certification.
They sell three basic types of insurance, life insurance, property-liability and health
insurance.

The tasks:

33
Helping individuals or companies select the right policy for their needs.

 Planning for the financial security of individuals, families, and businesses, advise
about insurance protection for an automobile, home, business, or other property
 Preparing reports and maintain records
 Helping a policyholder obtain settlement of an insurance claim.

Insurance agents have to undergo training. Initial stipends and pocket expenses form part
of the initial packet to the agent in addition to the commission.

Surveyors of Insurance

Insurance surveyors are technically qualified professionals deputed for the assessment of
losses according to their qualifications and experience. A surveyor with a background in
Mechanical Engineering does the assessment in the case of an industrial accident. The
surveyor doesn't just survey – he/she investigates, evaluates, assesses, adjusts,
determines liability, negotiates and finally reports. He is the only specialized link between
the insurers and the insured. He helps insurers by minimizing and

avoiding false, exaggerated claims and on the other hand helps the insured that have
suffered a genuine loss by indemnification of their loss.

For this purpose a professional insurance surveyor is needed. The work of an insurance
surveyor is not always a pleasant exercise. There are irregular timings, traveling and hard
work. A surveyor needs to have the eye of a detective and the balance and tact of a
diplomat.

ROLE OF AN INSURANCE AGENT

Insurance companies may designate their insurance agents as consultants, advisors
or by any other name. A person requires license under Insurance Act to be able to function
as an insurance agent.

An insurance agent is an important component of distribution channel for life

insurance business. He is required to solicit and procure new insurance business in a
34
manner consistent with the interests of the policyholders and his insurance company. To
achieve this, he is required to
 Meet prospects, analyze their financial needs, and persuade them to buy a product,
which provides solution.
 Arrange completion of all essential requirements for the underwriter viz. filling of
proposal form, collection of premium, medical examination, age proof, proof of
income (if required) or other medical reports.

After a proposal results into a policy, it is in the interest of the life assured, the agent
and the insurer that the business is conserved and it continues, without a lapse, till it results
into a claim. Therefore, the agent has to –
Remain in contact with the policyholders and ensure that renewal premiums are paid on
time.
Take care that nomination is made under the policy and is changed under the changed
circumstances.
Provide help to the claimants to complete necessary forms and comply with other
requirements relating to claim settlement.

PREREQUISITES FOR SUCCESS

An agent has to be familiar with the following so that he may perform his role well
 Various plans offered by his insurer, their benefits and restrictions.
 Office procedures for various matter as also the forms and documents required.
 Other financial instruments, suitable for savings and investment, available in the
market and their benefits and advantages.
 Law, particularly, the taxation aspects relating to these instruments.
SELECTING RIGHT CANDIDATES AS FC’S
 Prospect: First step is to prepare a regularly growing list of prospects. A prospect
is a person who can be approached for insurance. ‘Prospecting’ is the process of
finding more and more potential customers.
Sources or prospecting are: -
a) Friends, acquaintances, neighbors etc.
b) Newspapers, bulletins, directories etc.
35
 c) Social, official and religious meetings etc.

Qualify: A qualified “PROSPECT” is one who

d) Has a need for insurance
e) Has a capacity to pay
f) Is approachable and
g) Is acceptable to insurer

Getting the information is called “Qualifying”. A qualified prospect is the target person for
insurance sales.
 Inventory Of Prospects: It is necessary to keep a record of this information. It is
called inventory of prospects. Prospect’s interests, income, friends, social needs etc.
information collect as possible.
 Time: Take Appointments from the prospects.
 Recall: Time to time recall them.

Pre- Approach Interview

approach

Recruitment- Motivation Objections

Process

FUNCTIONS OF AN AGENT

A life insurance agent has the unique role of such person, who enjoys the trust of two
parties, the prospect and the insurer – simultaneously in the same transaction.

Expectations from an Agent:

 A life insurance Agent is expected to procure life insurance business in a manner
consistent with the interest of the policyholder and of the insurance company.
 To simplify, functions of a life insurance agent could be divided into two parts, via

36
 a) ‘Pre-sale functions’; and
b) ‘Post-sale functions’
Keeping Customer Happy

Before Sale After Sale

 Contact prospects  Ensure payment of renewal

premiums.

 Study their insurance needs  Assist policyholder for

nomination or change
thereof.

 Persuade them to buy  Assist the policy holder in

case he wants to get loan
against the policy

 Completion of formalities for  Assist the policyholder or

proposal of new insurance viz. the claimant to the comply
with the requirement for
o Filling of Forms getting timely settlement of
o Arranging for Medical claim.
Examination
o Collecting proofs of age
and income etc.
o Any other information
required by the
underwriter.
 Collection of First Premium
Deposit  Keep regular touch with the
customer.

The factors that make customer happy are-

 Recognition and respect
 Responsiveness
 Ease of access
 Reinforce the impression that the agent is trustworthy and dependable.
 Enhance the insurer’s image.

37
OBJECTIVE 

Recruitment of Financial consultant (FCs) of a excellent profile and their retention strategies
and what are their benefit that company going to provide for retention of their FCs.

A. What type of people are we looking for ?

 Committed people who have the drive, determination and ability to

become professional financial consultants.

 Ability to sell a range of financial products.

B. What do We Expect from  financial Consultant ?

 Devote a time and energy during training.

 Sell at least 5 policies each month once after licensed with company.

 We look forward to a long term mutually beneficial relationship .

C. Why should financial consultant choose HDFC SLIC?

 Brand value and the reputation of the partners  ( HDFC Limited) Market leader in
housing finance:

 23 lakhs home financed.

 11 lakhs retail deposits customer base.  

 Reputation for providing the higher standards of customer service.

 Financial Strength of the partners.

 Brand value and the reputation of the partners STANDARD LIFE

 175 years experience In life insurance.

 Largest mutual life insurer in Europe.

 Product innovation.
 

Strategies:

38
Strategies Employed to achieve the target are as follows:-

 Telecalling

 Contacting the person directly (interview)

 Collect references.

Some important steps to make effective telecalling:-

 Open the call in a friendly and positive way.

 State the name, position and company name.

 Check the prospect has time to speak.

 State the reason for the call.

 Clearly succinctly explain how   the meeting will be benefiting the prospect.  

Achievements

1. Recruited eight financial consultants for company.

2. Increase in confidence level.

3. Got the knowledge about the difficulties and conveniences in insurance sector

working as FC (agent)

4. Made more and more people aware about my companies Products (Policies)

5. Sold the policies (products) and brought business of Rs. 720000 as premium.

Limitations:-

39
So though the study aim to achieve the above mentioned Objective in full earnest and
accuracy, it may be hampered due to certain limitation. Some of the limitations are as
follows: 
 To cover the various section for the society.

 Respondents may not be at home and may have to re-contacted or replaced by

others.

 Getting accurate response from the respondents due to their inherent problem is

difficult.

 Limited response from client.

 There is a time limitation it is not possible to study whole thing I covered some

special aspect as well as some topics.

What would a career with HDFC SL offer as a Certified Financial

Consultant?

 Choose their own timings for working.

 Choose the customers they wishes to serve
 Unlimited opportunity to earn
 ONLY profession where there are definite benefits derived for today’s work for the
next 10-20 years.
 This is the ONLY profession, which gives up to 40% gross margin without ANY
capital investment in the business.
 BDM/SDM support at all times.
 Non-monetary benefits.
Who is Certified Financial Consultant (CFC)?

Why don’t HDFC call them agents?

 “Certified Financial Consultant”. The title Consultant therefore reflects the image we
wish to develop and advocate in the market.
 People associate agents as middlemen.

40
  The need for a consultant who will provide a customer-centric solution in insurance is
inevitable.

Earnings Potential

Commission Structure

 Endowment Plan 40%

 Money Back Plan 40%
 Personal/UL Pension plan 7.5%
 SPWOL 2%
 Children Plan 40%
 Term Assurance 20%
 LCTAP 20%
 ULYSS/ULEP 12.5%

ELIGIBILITY (IRDA MANDATORY)

18 + years of age / 10+2 passed/

Willing to undergo 100 hrs. IRDA mandatory
Training.Concept of tied agency.

41
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It is a

science of studying how research is done scientifically.
When we take of research method. We not only talk of the research methods but
also consider the logic behind the methods we use in the context of our research study and
explain why we are using a particular method or technique and why we are not using
others.

42
Title of the study:-

My project title was “Analysis of different products and plans” of HDFC standard life

INSURANCE COMPANY LTD.

Duration of the project:-

My project duration was 40 days with the HDFC LIFE INSURANCE and meanwhile these
days I got some practical knowledge not just about HDFC but I also got the opportunity to
analysis the little part of other insurance players those dealing with this growing industry.

Research Objectives

Primary Objective:

 To study about the awareness among the people for joining as agent in Life
Insurance Companies.
 To know the Role & Scope of Financial Consultant in Life Insurance Companies.
 To have a complete understanding of Recruitment & Selection Process of FC’s in
HDFC Standard Life.

Secondary Objective:

 Future scope and prospects of “Financial Consultant” in India.

 To do SWOT analysis of HDFC Standard Life.
 To know about different service providers of HDFC Standard Life .

Type of research

Quantitative as well as Qualitative

Sample Size
25% Respondents means 57 in numbers of the total 221 people, selected from the
population as sample.

43
Method of selecting sample

The Sampling technique used is “Stratified Purposive” sampling method. Strata’s were
made of different fields and respondents were purposely chosen as per the convenience of
researcher.

Tools/techniques of Data Collection:

The task of data collection begins after a research problem has been defined and
research design chalked out. While deciding about the method of data collection to be
used for the study, 2 types of data should be kept in mind-

 Primary Data: are those, which are collected afresh and for the first time, and
thus happen to be original in character.

Collection of primary data:

 Personal Interviews
In the personal interview method, there was a predetermined set of
questions, which were asked from the respondents in a prescribed form and order. The
respondent gave the answer to these questions and the responses were carefully recorded.
 Schedules
A schedule is a Performa containing a set of questions. In this method, I went
with the schedule to the respondent, put to them the questions form the Performa in
order the questions were listed and recorded the replies in the space meant for the
same is the Performa. Thus through this method, the aims and objectives of the
research would be explained to the respondents and also the difficulties, which any
respondent could feel in understanding the implication of a particular question, could be
removed.
 Secondary data: On the other hand, are here which someone else has
already collected and which have already been passed through the statistical
process.

Collection of Secondary data:

44
 The Secondary data was collected through-
 News Collected from local as well as other newspaper regarding different
scheme of insurance in Udaipur.
 Journal Published by National Insurance Company and other providers of
General Insurance in Udaipur.
 People and publications of HDFC
 Website related to insurance
 Broachers of HDFC Standard Life & different companies
 Books related to insurance
 Magazines published by insurance like insurance watch and insurance plus
(monthly magazines)

Scope of the study

Population
For study, first assignment was the collection of primary data. As it known, primary
data is the data, which is collected afresh and for the first time. So to get the primary data,
the foremost task was to choose the respondents who would provide the same. Since the
research was being carried out in ajmer city only, so obviously all XII pass adults of the city
could constitute to be the respondents.

Sampling Design
Since a study involving all the adults of Ajmer city is far from possible due to
limitations of time, money and energy so it was decided that a sample survey would be
carried out. Selection of only a few items (respondents) from the universe is called a
sample survey.

Limitations of the study:

 Will have to rely on the collected data.
 Some People might not express their feelings freely because they might think this
may have effect on their impression/position.
 It is assumed that samples selected will truly represent the population/universe.

45
46
 FACTS &
FINDINGS

Fact & finding

Objectives:-

 Familiarity with insurance policy in people

 To make aware about HDFC Insurance policies

 Requirements and quarries of clients

From the over all research and survey that has been done to get the perception of

47
Business class towards private life insurance company (HDFC Standard life Insurance)

These Finding has been come into study that.

Among the sample of hundred people more then two third mass has already

Been insured and one third mass is still to be insured, close to two third insured

Mass pay premium in five figures on yearly basis and one third mass pay in four

Figures and among all policy holder maximum 90% people had already been taken

The policy from Bhartiya Jeevan Bima Nigam and there where too much

Awareness about private life insurance sector in Business class and Ratio is as high

As 96%.

The head reason behind the publicity of private life insurance company was

Friends and Relatives. Near about three, four people got information about

Company from his relative and rest of although company’s cold call, News

Paper/Magazines and TV/Radio Respectively.

48
 ANALYSIS &
INTERPRETATION

Analysis & interpretation

Que.1 Have you heard about HDFC ?

Response Percentage of
Respondents

49
 Yes 90%

No 10%

Have you heard about HDFC

10%

Yes
NO

90%

Interpretation:

During the data collection phase, the first question asked during personal interviews
and in schedule was whether the respondents had ever heard about HDFC. As was
expected majority of the respondents had heard about HDFC in one way or other.

As is known that HDFC stands for “Housing Development Finance Corporation.”

HDFC not only operates as a housing finance company but it also has many
subsidiaries like-HDFC bank, HDFC Mutual funds, HDFC Life insurance although not being
very old players in the game have been performing quite well. Thus when the respondents
were asked whether they had ever heard about HDFC almost all of them came up with
50
positive responses. But as my research was concerned only with HDFC Standard life & not
subsidiaries so the positive responses only gave a slight indication of the extent of
awareness of HDFC among the people.

But what turned out to be and utter surprise was that there were still 10% of the
respondents who had not even heard about HDFC regardless of whether it is Life insurance
company or any of its subsidiaries. This shows the effect to the low promotional efforts of
HDFC, though HDFC being the pioneer of housing finance in India, still quite a few people
are unaware of even its existence.

Que. 2 If you have heard about HDFC, kindly share your information
about the same?

Response Percentage of
Respondents

HDFC is a bank 25%

HDFC is a housing finance company 60%
HDFC operates in mutual funds 10%
HDFC provides life Insurance 5%
51
 Percentage of Respondents

HDFC is a bank
10% 5% 25%
HDFC is a housing
finance company
HDFC operates in
mutual funds
60% HDFC provides life
Insurance

Interpretation:

When the respondents were asked to share the information they had about HDFC,
majority as high as 60% of then knew of HDFC only as a housing finance company. ‘HDFC
housing Finance company’ seemed to be only what they meant by HDFC. A very few
percentage of the respondent i.e. nearly only 25% of them were aware that HDFC’s sole
existence was not only as a housing corporation but as a bank also. An extremely low ratio
of the population (nearly 10%) were aware of the fact that HDFC provides life insurance
also, while on the extreme, almost negligible percentage of the respondent (approx. 5%)
knew that HDFC operates in the field of mutual funds also.

52
 Thus the general interpretation which can be drawn from the responses of the
respondents was that most of them knew of HDFC only as a finance company while a few
had the knowledge that the company provided housing loans as well. Thus it can be said
that the image of HDFC as a housing finance company has almost overshadowed its image
as bank as well.

Que. 3. Are you aware about?

Response Percentage of
Respondents

Life Insurance 25%

General Insurance 25%
Both 50%

53
 Percentage of Respondents

Life
25% Insurance
General
50% Insurance
25% Both

Interpretation:

The above graph shows that there were many people know about insurance (approx.
50%). There were an equal number of respondent who get knowledge about life insurance
as well as general insurance.

The above data presents a picture of the level of awareness of the insurance & this
indicates that company have great opportunity in their products of life insurance. HDFC
Company should use adequate promotional efforts so it forced the customers to knock on
doors of other life insurance companies.

Que. 4 Do you like to join a prestigious company ?

Response Percentage of
Respondents
Yes 90%

NO 10%

54
 Percentage of Respondents

10%

Yes
NO

90%

Interpretation:

The above chart shows that most of the people (approx. 90%) like to join the
prestigious company and only few persons (approx. 10%) don’t like to join a prestigious
company because of their personal reasons.
HDFC is also renowned company so quite understood that people take interest in
the opportunity of HDFC.

Que. 5 Do you want to –

Response Percentage of
Respondents
1. Earn extra 50%

2. Part time job cum 40%

business

55
 3. Awards & Recognition 5%

4. Status symbol, brand 5%

name & growth

Earn extra

5% 5% Part time job

cum business
50%
40% Awards &
Recognition

Status symbol,
brand name &
growth
Interpretation:

The above graph shows that most of the people approx. 50% wants extra income &
part time job 40%. Rest people wants to joint HDFC Standard Life for award Recognition &
status symbol.
HDFC Standard Life is a prestigious company, providing good infrastructure and facilities
so the person who know about it take interest in it and the awareness about HDFC
Standard Life must be created by more advertisement publicity through different medias.

Que. 6 Have you seen the advertisement of HDFC Standard Life?

Response Percentage of
Respondents

Yes 50%

No 50%

56
 Percentage of respondents

Yes
50% 50% No

Interpretation:

The above graph clearly shows that there were an equal number of respondents who
had seen the advertisement of HDFC Standard Life as the number of respondents who had
not seen the same. This indicates that the advertisement campaign currently being
undertaken by the company is not competent enough to stand in the market competition. It
is a pity to learn that almost half of the respondents had never seen the advertisement of
the company, which is the pioneer of HDFC life insurance in India.

Que. 7 Awareness about the career in Insurance Sector –

Response Percentage of Respondents

Yes 30%

No 70%

57
 Percentage of Respondents

30%
Yes
No
70%

Interpretation:

The above graph shows that 70% of people are aware about the carrier in insurance
sector, but they don’t aware about the process of recruitment they know that there are
agents and financial consultants in insurance sector but they don’t know the process of
recruitment and the educational qualification required for it.

Proper information is not given about FC by advertisement or Media, So HDFC

Standard Life should advertise about it properly by carrier fair & Media.

Que. 8 Interest in pursuing career as a “Financial Consultant” with

HDFC Standard Life –

Response Percentage of Respondents

Yes 10%

58
 No 40%

Will think 50%

Percentage of Respondents

10%
Yes
No
50%
40% Will think

Interpretation:

HDFC is renowned and prestigious company, it has good brand image & prudent
company so many people wants to join a company in many ways among them 10% surely
wants to join the company as FC.

The FC’s does not get fixed income; they get the monetary benefits in the form of
incentives. So it appeals less to those who want fixed income.

Que. 9 As a joining FC’s among the following influences you the

most?

Response Percentage of
Respondents

59
 1. ICICI Prudential Life 20%

2. Allianz Bajaj Life 12%

3. HDFC Standard Life 18%

4. LIC 50%

Percentage of Respondents
1.     ICICI
Prudential Life
20% 2.     Allianz
Bajaj Life
50% 12% 3.     HDFC
Standard Life
18%
4.     LIC

Interpretation:

The above Graph shows that most of the people joined LIC as FC & then 20% wants to join
ICICI Prudential Life and 18% people wants to join HDFC Standard Life.

The reason behind this –

60
 LIC is a Recognized by Govt. & the trust level of people for LIC is higher then with
above private companies.
 A promotional activity of ICICI is more then HDFC.
 Due to more promotional activities, a person gets aware about ICICI & wants to join
it.

Que. 10 In case you joined as FC’s from life insurance company other
then HDFC , which of the following factors led you to this decision ?

Response Percentage of
Respondents

61
 1. Lack of adequate information 30%
about HDFC

2. Better services of other 10%

companies

3. Brand image of other companies 20%

4. Mouth publicity of other

companies 40%

Percentage of Respondents

Lack of adequate
information about
HDFC
Better services of
30%
40% other companies

Brand image of
10% other companies
20%
Mouth publicity of
other companies

Interpretation:

It can be understood from the above table and figure that the greatest factor, which
attracted people towards other companies, is the Mouth publicity. But another major factor,
which attracted people to, joined, as FC’s from HDFC, while the Lack of adequate
information about HDFC & brand image of other companies had little role to play in
attracting customers towards them.
62
 Here once again the same fact is reflected that inadequate promotional efforts by
HDFC Standard Life forced the customers to knock on doors of other Life Insurance
companies. It is quite natural that people would joined as FC’s from HDFC Standard Life
only if they are well aware of it & its product & all their queries are satisfied, but without
sufficient promotional efforts both of the above objectives cannot be satisfied and hence
customers would be reluctant to approach the company.

Que.11 What is your opinion about the difference services like

Product, services provided by personal by the HDFC Standard
Life?

Response Percentage of
Respondents

63
 Very Good 30%

10%
Poor
40%

Fair 20%

Don’t Know

Percentage of Respondents

20% Very Good

30%
Poor
Fair
10% Don’t Know
40%

Interpretation:

The Services provided by the HDFC Standard Life are fair. Services like the pre & post sell
of product services are good & fair. The environment of working is good and pressure free.

There is provision of award & recognition according to their club, which are made up to two
teams i.e. “LAKSHYA” & “VIJAY”, Systems to motivate SDM to provide good services.

64
65
 SWOT ANALYSIS

SWOT ANALYSIS OF THE COMPANY

STRENGHTS

 Good brand name

66
 HDFC and Standard life are one of the market leaders in their respective
sectors. HDFC deposits and bonds enjoyed the FAAA and MAAA credit rating consistently
by CRISIL and ICRA for last 10 years & it have track record in personal Financial Sector
while standard life is no.1 company of UK & it has over 175 years experience in Life
Insurance.
HDFC Standard Life is in the top 5 quoted insurance companies and is the
only company to declare bonuses in the last 4 consecutive years.

 Handsome deposit with IRDA

HDFC Standard Life has a deposit of total 800 crores
with IRDA (Insurance Regulatory Development Authority) as against the minimum capital of
Rs. 100 Crore. This will assure that the claimants will get their money back on time without
any delay.

 Latest Technology
All the branches and the offices of the company are connected through
Intranet and all the modern means in the technology that helps in giving its customers
prompt services. All the information about the company and its products is available on its
site(hdfcstandrdlife.com) in detail. For recruiting the FC’s there is also a provision of Online
Training for those FC’s who are not able to join the Class room session.

 A Complete and Diversified Product Portfolio

The company has a total number of 6 products on offer to the general
public, keeping in mind the requirements of the public at different age levels. This is one of
the vital strengths of the company.

 Fast and Accurate Services to the Customer

The mission statement of the company promises to provide superior
products and services to the customer by understanding their needs. The use of latest
technology helps the company to give to its customer fast and accurate service.

 Highly Trained and Professional Sales Development Manager

67
 All the employees who are associated with HDFC Standard Life are
highly trained and professional in attitude. This quality staff ensures high quality pre and
post sales services.

 Better Position in terms of Premium Collected

The company was the good in terms of collection of premium.
Premiums expected to rise from Rs. 26000 Crores to Rs. 5,12,000 Crores by 2010 and
Life premiums expected to increase from 6% to 8% of Gross Domestic Saving by 2010.

 Investment in Secured Sector

Of the total premium collected in the last financial year, company has
invested 85% of that amount in Government Security and has kept the remaining 15%
as a reserve for pre claim settlements.

 Market Leader in mortgage Finance

HDFC Company is Market Leader in mortgage finance. 18 Lakh home

financed in over 2400 towns.

 Branch Network
HDFC currently have 52 branches but are expanding this to 103 which
is more than any other private life insurance provider in India.

WEAKNESS

 Low Reach

Since the company has started in Rajasthan its operations recently its reach
is very limited while its rival LIC has ha reach in almost every part of the Rajasthan. The
company will have to think over expanding its operations as soon as possible.

68
  Less Products On Offer

As compared to LIC the company does not have a Joint Life Policy and Group
insurance policy on offer to the public.

 Low emphasis on Promotional efforts

An extremely low emphasis on its promotional effort while its rival ICICI
Prudential Life uses the Mouth Publicity.

 Too Much Dependent On Government

The main reason behind the general public to buy insurance is the tax
benefits that assesses gets. If the government reduces the exemption given under different
sections the Life Insurance public may think it otherwise to buy the policy. Though the
company aims to change the mindset of the public but still it is the biggest weakness in all-
insurance companies.

OPPURTUNITIES

 Majority of the Market still Untapped

69
 Under the survey that was carried out it was discovered that only 25% of the
total insurable public has been covered till this date. Thus, its is a great opportunity for the
company to capture a good market share.

 Capping in RBI bonds

The Reserve Bank of India offers a medium return tax saving bonds. But from
2002 financial year in the recent amendments there has been a capping on maximum
amount i.e. 2 lacks that a person can invest. This is good opportunity for the company to
sell its investment products that also promises insurance with tax benefits.

THREATS

 Coming Up of many Private Players

After opening of this sector, there are many companies who have aligned with
some or the other foreign partner. Many banks are also coming up in this sector with a plan
of giving the risk cover to the account holders at a very cheap price.

 Government

As discussed earlier, if the government comes up with an amendment where in it

plans to reduce the exemption under different sections, the company may find it difficult to
sell its products. This as of now is the biggest threat to the company.

70
 CONCLUSION

CONCLUSION

 HDFC Standard Life has strong parentage & long-term commitment to this business.
It is trust worthy company.

71
  Company has a commercial tie-up with Standard Life, which is a number one
company of UK.

 HDFC Standard Life is renowned for transparency and high corporate governance
standards.

 In HDFC SL the Certified Financial Consultant have free environment of working.

There is no time boundation.

 FCs of HDFC SL have unlimited opportunity to earn. FC profession gives up to 40%

gross margin without ANY capital investment in the business.

 The facility provided by the company to the FC’s is very good.

 All the Fc’s were satisfied with the staff-co-operation and co-operation of their SDM’s

 Besides Monetary benefits non-monetary benefits are also there, which encourage
the FC for better performance. Non-monetary benefits like Club Membership benefits
& MDRT Benefits.

 HDFC Standard Life Company doesn’t have a good network and comparatively less
number of FC’s as compare to other companies but it has a good hold over market
as the services given by FC and development officer is very good.

 Most of the people have heard about HDFC but not necessarily about the HDFC
Standard Life Among those who have heard about HDFC, most of them only know of
its existence as a Bank & Housing Finance Company, while a few are aware of the
fact that HDFC is also a Life Insurance Company. Only negligible ratio of the people
knows that the company operates in the field of Life Insurance.

Most of the people are also aware only about the public players Like LIC in life insurance,
names of private sector companies in Life Insurance Like HDFC Standard Life are not
known by people in Jaipur.

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 HDFC Standard Life Company covers good market share but now its company in the
market has increased to great extent it has to compete both with other companies’
public as well as companies of private sector.

 The FC’s don’t join the product training proper manner so they don’t get the product
knowledge properly that’s why they are not covering the insurance market properly.

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 RECOMMENDATION
AND
SUGGESTIONS

Recommendation & SUGGESTION

 The persons, who had come across the advertisement of the company, had seen it
on television while only few people had known about the company from newspapers

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 and hoarding. This means that the company can use television as a powerful
medium to promote itself and its products. This indicates that the company has very
low promotional efforts & its must promote itself by other media.

 One of the major factors for the drift of FC towards other Life insurance companies is
the lake of adequate information about HDFC. Even though the company offers
better services & the brand in image of its competition is also no threat, but still due
to its poor promotional activities it is loosing its market to the competitors.

 They should give better package to the FC.

 The staff of HDFC has good working potential.

 Some of the FC’s should recruit on the payment bases on the fixed target.

 The company should simplify the procedure & provide flexible time for training &
recruiting the FC’s

The company must identify its target if it wants to make its advertisement campaign
effective and fruitful. The audience may be potential FC, Customers of the company,
current users, Deciders or

 influences. The target audience will critically influence the company’s decision on its
advertisemement.

 Special Development Manager should be appointed for highlighting the organization

in the market.

 The company can sponsor sports events, educational camps, cultural events etc.
and thus earn publicity.

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 APPENDIX

APPENDIX
QUESTIONNAIRE

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1. Personal Details

Name : ………………………………….

Age : ………………………………….

Occupation : ………………………………….

Designation : ………………………………….

Current Residential Address : ………………………………….

Phone No.(Mobile) : ………………………………….

(Office) : ………………………………….

(Personal) : ………………………………….

2. Have you heard about HDFC?

i. Yes
ii. No

3. If you have heard about HDFC, kindly share your information about the same?
……………………………………………………………………
4. Are you aware about?

i. Life Insurance
ii. General Insurance
iii. Both

5. Do you like to join a prestigious company ?

i. Yes
ii. No

6. Do you want to –

i. Earn extra
ii. Part time job cum business
iii. Awards & Recognition
iv. Status symbol, brand name & growth

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7. Have you seen the advertisement of HDFC Standard Life?

i. Yes
ii. No

8. Awareness about the career in Insurance Sector –

i. Yes
ii. No

9. Interest in pursuing career as a “Financial Consultant” with HDFC Standard Life –

i. Yes
ii. No
iii. Will think

10. As a joining FC’s among the following influence you the most?

i. ICICI Prudential Life

ii. Allianz Bajaj Life
iii. HDFC Standard Life
iv. ATA-AIG Life

11. In case you joined as FC’s from life insurance company other then HDFC, which of
the following factors led you to this decision?
i. Lack of adequate information about HDFC
ii. Better services of other companies
iii. Brand image of other companies
iv. Mouth publicity of other companies

12. What is your opinion about the different services like product, services provided by
personal by the HDFC Standard Life?

i. Very Good
ii. Poor
iii. Fair
iv. Don’t Know

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13. References of two persons-

1) Name …………………………………………………….

Address …………………………………………………….

Phone No. …………………………………………………….

2) Name ……………………………………………………

Address ……………………………………………………

Phone No. ……………………………………………………

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 BIBLIOGRAPHY

BIBLIOGRAPHY

 ESCOLIFE Solution For the Insurance Industry-Ritu Nanada

 Agent’s Hand Book – HDFC Standard Life

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 Kothari C.R. Research Methodology & Techniques, Wiley Eastern Ltd., New
Delhi,1999

 Sharma DD Marketing Research, Sultan Chand and Sons,New Delhi,1999

 Principles and Practice of Insurance – G.S. Panda

 Insurance Times (Insurance Monthly Magazine)

 Company Reports & Broachers

 Monthly Progress report

 www.apnabima.com

 www.hdfcinsurance.com

 www.indiastat.com

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