A Project Report On RECRUITMENT OF CERTIFIED FINANCIAL CONSULTANTS Submitted In Partial Fulfillment Of Requirement for the Award of Degree Bachelor

r of Business Administration (BBA) Batch: 2009-2012

Submitted By

Under the Guidance

CERTIFICATE FROM COMPANY This is to certify that i have successfully completed Project Report in our organization on the topic titled, RECRUITMENT OF CERTIFIED FINANCIAL CONSULTANTS. During his project tenure in the organization, we found him working, sincere and diligent person and his behavior and conduct was good during the project. We wish him all the best for his future endeavours.

Signature: Name and Designation of the Guide

DECLARATION I, hereby declare that I have undergone the Summer Training at HDFC Standard life Insurance under the supervision of Mr. I also declare that the present project report is based on the above summer internship and is my original work. The content of the project report has not been submitted to any other university or institute either in part or in full for the award on any degree, diploma or fellowship. Further, I assign the right to the university, subject to the permission from the organization concerned, use the information and contents of the project to develop cases, case lets, case leads, and papers for publication and/ or for use in teacher

ACKNOWLEDGEMENT The purpose of compilation of the subject for a project report always involves creation of a huge debt towards innumerable publications, managers, chartered accountants and senior officers. I hereby put my sincere thanks to one and all. A special thanks to Mr., for giving me an opportunity to work as a trainee in there esteemed organization. Special thanks to my faculty guide for his continued guidance and help throughout the project. Vote of thanks to for helping me in the entire training programme and also in enhancing presentation skills. They all have been a constant guiding force throughout the course of this project and without their immense support and cooperation this report would not have been presented as well as it could not been done.

PREFACE:
During Summer Internship Program (SIP) a projects have been assigned:
1.

Financial Marketing.

Consultants

Recruitment-

Mix

of

Human

Resource Planning &

the basic phase of insurance around which this whole insurance roams. The objective of the projects so assigned is to get me in depth knowledge about the insurance terms and policies and to know the customer behavior and the corporate environment of insurance. To get the in depth knowledge about HDFCSLIC that where it is providing better than the market and to have an understanding of the insurance market. Special training has been provided to know the companys products and their features and to know the companys terms and conditions and its policies. During SIP lots of data was given for tele calling so as to get associated with the company and be the companys representative by being its certified financial consultant.

TABLE OF CONTENTS
1. preface PAGE No. 1

2. Introductions Introduction of Insurance

2-17

The Life Insurance Scenario in India

History of insurance sector The Life Insurance Scenario in India Policies available in insurance sector

Vision of the company

3-5 REVIEW OF INSURANCE SECTOR Privatization of Insurance: LIBERALIZATION OF INSURANCE SECTOR:

General introduction about HDFC LTD. Company profile of HDFC SLIC 18-19 20-23 24-44

6-8 9-17

3.Objective and scope of Study 4. Research Methodology 5. Introduction to project topic Financial Planning Financial Consultant (FC) Recruitment

24-29 29-44 45-57 58-59 60

6

6. Analysis and Interpretation 7. Conclusion 8. Limitations

9. Recommendations 10. Bibliography 11. Appendices

a.

61 62 63-65 63 64-65

Brief note on IRDA

b. Questionnaire

WHAT IS INSURANCE?
Insurance is not necessarily an investment from which one expects to get ones back. Nor it is gambling a gambler takes risks. While insurance offers protection against risks that already exist Insurance is a way to share risk with others.

The Origin of Insurance

Insurance has existed for thousand of years a form of credit insurance was included in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of mosses for finance their trading expeditions in ancient times. Ship owners obtained loans from investors, if a ship was lost the owners were not responsible for paying back the loans since many ship returned safely. The interest paid by numerous ship owners ship owners covered the risk to the lenders. It was likewise in a maritime setting that later one of the worlds most famous insurance providers. Lloyds of London was born By 1688, Edward famous insurance provider accepts in exchange for certain payment, to premium. These insurers came to be known as underwriters. Finally in 1769 Lloyds became a formal group of underwriters that in time grew into the foremost market for marine risks.

What if I already have Life Insurance ?

As an individual for the extent of financial protection you need is from that a married man which in turn is different from that as a parent. At each life stage, it is necessary to re- evaluate the amount of protection and provision you require and adjust for the same. Below are some of the events in your life for which you should re evaluate and plan your life insurance needs.

Life Stages
Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly.

STAGE 1 Young and Single

An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early. Our needs Save for a home and wedding Tax Planning Save for Golden years

STAGE 2 Just Married Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life , it is equally important to ensure that eventualities dont come in the way of shaping your dreams. Our needs Planning for home / securing your home loan liability Save for vacation Save for your first child STAGE 3 Proud Parents

Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the
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future cost of securing your childs dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Our needs Provide for childrens education Safeguarding family against loan liabilities Savings for post-retirement

STAGE 4 Planning for Retirement While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Our needs Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years

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How much Insurance do I need? The main purpose of life insurance is to provide a financial cushion to urn loved ones in the event that something unfortunate should happen to you. One must provide enough, so as to generate a future income stream that will take care of the financial needs of their dependants. How much insurance you need depends on your annual income, your expenses and your existing assets.

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Concept of Human life value Generally speaking, one can estimate the extent of life insurance by calculating ones human Life Value (HLV). This is the net present value of ones future earnings. Put simply, it is the amount that a persons family would permanently lose, should any thing unfortunate happen to that person. As a tomb rule, a 30 year old should insure oneself for about 8 times hrs or her annual income. At
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35, this is about 6 times. Of course the exact amount must be adjusted according to the number of dependents, existing investments and ones life stage. For instance, if at 30 a person has two children and parents to provide for, the amount of insurance should also be higher. You can calculate your Human Life Value by multiplying your current annual income with the number of years remaining for your retirement. Lets assume that you are 30 years old and you earn Rs.4, 00,000 per annum. Now if your retirement age in 55 you have 25 years to go before retirement. So your Human Life Value is (25 x 4, 00,000) = Rs. 100, 00,000 (One Crore rupees). So, your present Human life Value is one crore rupees, provided you stay healthy. You take factors like inflation and increase in income over a period of time to account your Human Life Value is a lot more.

The History of Insurance in India : The India Insurance market has a grand history. The development of insurance states back of the 19th century when the Europeans started the Oriental Life Insurance Company, Calcutta in 1888. The first India Insurance Company Bombay Mutual life Insurance came into existing 1870 to cover India lives at normal rates. The year 1870 is also important in the sense at British government for the first time act that year. Four years later Firoz shah Mehta one of the doyens of
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India Financial Sector, Oriental Government established the Oriental Government Security Life Assurance Company and after that many Insurance companies in surfaced on Indian soil. However the first Indian insurance act was passed on 1912, again in 1938 an amendment in 1950 when it was nationalized however the sector was once again thrown open to the private sector in Dec 1999 followed by the establishment of IRDA (Insurance Regulatory and Development Authority in April 2000. The Indian Insurance Industry was dominated by two states Insures the Life Insurance Corporation in Life Insurance and The General Insurance Nationalization of the Life and non Life sector in 1956 and 1972 respectively. In Dec 99 the IRDA act was passed which limited foreign investors to a 26% cap on equity participation, and minimum capital requirement of $20 million. At present, more than 20 private players are in the market and some are in the pipeline. The advent of the new kids poses to LIC to some what extent, door which LIC will have to change its current polices regarding marketing and product management.

The Life Insurance Scenario in India:

Since 1956, with the nationalization if insurance Industry, the states run Life Insurance Corporation of India has held the monopoly in countrys life insurance sector. General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the casualty sector. Over the time, taking advantages of its monopoly and virtual prerogative in establishing the premiums, LIC has
15

evolved in to a monolith. With around 60000 agents in ever nook and corner of the vast country, it has created an enviable brand name. Particularly among the rural population of the country. It has around $40 billion as its financial sector. However, on the qualitative side, it has every little pride in, and there lies the potential for players to challenge this behemoth. As typical with monopolies, the premiums rates charged LIC are among the highest in the world, and its track record in customer service can at best be called shabby. With a huge unionized, rigid workforce mostly in clerical category. LIC run the risk of high fixed cost, which will be the deciding factor productivity in the competitive scenario. While boasting full scale automations of its operation, the truth is that its technology outdated. The new players. With the state of the art technology under the belt, will be in advantageous position . 80% of LICs business is procured by 20% of its ill trained agent force. The foreign player with the domestic partners string brand value, can test the unconventional distribution channels like brokers, the Internet the banking distribution system etc., although foreign players may be tempted to keep their operations in big cities for the cream layer of the society, the real market lies in rural India, which accounts for the lions share of LICs present business. The foreign players must adapt to Indian realities, the well published failures of the world famous consumer goods companies like Electrolux, whirlpool, Reebok, and Nike etc. to gauge the Indian Psyche and sentiments demonstrate the concept. They failed in the area of realistic pricing, product promotion and reaching to the consumer. The foreign companies know the ground realities to the details.

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Policies available in insurance sector Endowment Policy, India

An endowment policy covers risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy.
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An endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy.Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment. Endowment policy is an instrument of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death.

GROUP INSURANCE, INDIA

Group insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives, weaker sections of society, etc. It also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Group insurance plans have low premiums. Such plans are particularly beneficial to those for whom other regular policies are a costlier proposition. Group insurance plans extend cover to large segments of the population including those who cannot afford individual insurance. A number of group insurance schemes have been designed for various groups. These include employer-employee groups, associations of professionals (such as doctors, lawyers, chartered accountants etc.), and members of cooperative banks, welfare funds, credit societies and weaker sections of society.

JOINT LIFE INSURANCE POLICY, INDIA

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Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders, apart form covering risks like all life insurance policies. But joint life policies are categorized separately as they cover two lives simultaneously, thus offering a unique advantage in some cases, notably, for a married couple or for partners in a business firm. Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date.

LOAN COVER TERM ASSURANCE POLICY, INDIA

Loan cover term assurance policy is an insurance policy, which covers a home loan. Such a policy covers the individual's home loan amount in case of an eventuality. The cover on such a policy keeps reducing with the passage of time as individuals keep paying their EMIs (equated monthly installments) regularly, which reduces the loan amount. This plan provides a lump sum in case of death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. Various insurance companies offering loan repayment protection insurance policy are HDFC Standard Life Insurance
19

Tata AIG ING Vysya LIC

MONEY BACK POLICY, INDIA

Money back policy provides for periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive. They differ from endowment policy in the sense that in endowment policy survival benefits are payable only at the end of the endowment period. An important feature of money back policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money-back components. The bonus is also calculated on the full sum assured.

PENSION PLAN, INDIA

A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years.
20

Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period. Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life.

TERM LIFE INSURANCE POLICY, INDIA

Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy. No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value.

UNIT LINKED INSURANCE PLANS (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.
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ULIP provides multiple benefits to the consumer. The benefits include: Life protection

Investment and Savings Flexibility Adjustable Life Cover Investment Options Transparency Options to take additional cover against Death due to accident Disability Critical Illness Surgeries

WHOLE LIFE INSURANCE POLICY, INDIA

A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life of the policyholder, therefore, such policies are known as whole life policies. A simple whole life policy requires the insurer to pay regular premiums throughout the life. In a
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whole life policy, the insured amount and the bonus is payable only to the nominee of the beneficiary upon the death of the policyholder. There is no survival benefit as the policyholder is not entitled to any money during his / her own lifetime.

WHY LIFE INSURANCE

Life Insurance has come a long way from the earlier days when it was originally conceived medium for short periods of to me. Covering temporary risk situation, such as sea voyages. As life Insurance became more established, it was realized what a useful tool it was for a number of including.

Temporary need / threats :

The original purpose of the life Insurance remains an important elements, namely for replacement of income on death etc.

Regular Saving:
Providing for ones family and oneself, as a medium to long term exercise (through a series of regular payment or premiums) This has become more relevant in recent times as people sect financial independence for their family.

Investment:
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Put simply the building up of saving while safeguarding it forms the ravages of inflation. Unlike regular saving products, investment products are traidanailly lump sum investment, where the individual likes a one off payment.

Retirement
Provisions for later years become increasingly necessary, especially in cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

REVIEW OF INSURANCE SECTOR

India is having population of 1 Billion with a middle class population estimated up to 300 million. It being the 5th largest economy in the world in terms of Purchasing Power Parity (PPP) has a GDP growth rate of over 6%per year on an average for the last decades. The saving rate is estimated to be about 26% of the GDP. In the total population, the insured the population is estimated to be about 70 million.

Privatization of Insurance:
The Indian insurance Sector has finally opened up and it is with much anticipation that new players are awaiting their share of market. License have been issued to both Indian and foreign Players reliance , HDFC standard life , Max India Network , Royal Sundaram Alliance, ICICI prudential , IFFCO Tokyo Marine, Bajaj Allianz , Birla Sun life, Tata AIG, AVIVA life Insurance , SBI life , Om Kotak Mahindra are some of the entrants into the newly liberalized Indian insurance market.
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ICICI Prudential and HDFC Standard life have issued their life policies from the private sector after 45 years. The first move for the liberalization came with the Malhotra Committee Report in 1993 which recommended the privatization of Insurance, setting of an insurance regulatory authority and restructuring the government monopoly LIC and GIC and its subsidiaries IRDA Act passed in November 1999 had set ball rolling for the entry of Private Players in domestic sector.

LIBERALIZATION OF INSURANCE SECTOR:

Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. When world over insurance market has been opened up. India cannot remain in isolation. History has shown that it is very difficult to proper in isolation. Globalization is the new economic reality, which is here to stay, heralding a new era of Insurance in India. With the opening of the
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insurance industry, Indian stands to gain with the following major advantages. Globalization will provide opportunities to the consumer for the better production. With more reasonable and affordable pricing. The customer will get quicker service. It will enhance the saving rate. Long term funds for infrastructure development will be available to the country. It will secure for India larger inflow of foreign capital need to sustain our GDP growth.

Advantages of Liberalization:
The opening up will enable the country to save more and invest more for the development in infrastructure. With new insurance intermediaries and more distribution channels the market is bound to develop by leaps and bounds. In the next few years it is established that the Indian insurance sector will developed a better understanding of consumer requirement leading to more satisfaction of consumers. Lead to increase in employment.
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 Social and rural obligations will also be served as IRDA has come out with clear regulation in this regard which makes the development in this area mandatory. Global competition will help in building expertise with their global practice.

GENERAL INTRODUCTION OF HDFC LTD.

HDFC Incorpor ated in 1977 with a sha re capital of Rs. 10 Crores, HDFC has since eme rged as the largest residential mortg age finance institution in

the countr y. The corp oration has had a series of sha re issues raising its capital
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to Rs. 119 Crores. The gross premium income for the year endin g March 31,2009 stood at Rs. 5,564.69 Crores. The company has cove red over 8,33,070 lives year ending March 31, 2009. HDFC operates through almost 450 locations throughout the country wi th its corp orate head quarters in Mumbai, India. service HDFC also has an

Inte rnational Office in Dubai, Oman and Qat ar.

UAE with

associ ates in Kuwait,

SNAPSHOT-I

Inco rpora ted in 1977 as the first speciali zed Mortgage Comp any in

India.

Almost 90% of ini tial shareho lding in the hands of domestic institu tes

and retail investo rs. Current 77% of shares held by foreign institu tional investor s.

Besi des the

core bus iness of mortgage te with hold ings In:

HDFC has evol ved into

financial conglomera

HDFC Standa rd Life insurance Compan y- HDFC h olds 78.07 %. HDFC Asset Management Company HDFC h HDFC Bank- HDFC h olds 22.2 5%. Int elen et Glob al (Bus iness Proces s Outsou rcing) HDFC holds 50%. HDFC Chubb General Insuran ce Company HDFC h olds 74%. olds 50. 1%

GROUP COMPANIES
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HDFC Bank: World Class Indian B ank- am ong

the top private ba nks in India.

HDFC AMC: O ne of the top 3 AMCs r.

in India- Preferred

investment manage

Int elen et Glob al: BPO services for inte rnational cus tomers. CIBIL: Credit Info rmation Bu reau India Limit ed. HDFC Chu bb: Upcoming Private c ompanies i n the fiel d of

VISION STATEMENT
General Insuran ce.

The most successful and admired life insurance company, which HDFC Mutual trusted company, the easiest to deal mean that we are the most Fund HDFC reality.com : Helps to sea rch with, offer in all major cities in Ind money, and set the standards in the propert ies the best value for ia industry.In short, The most obvious choice for all.

HDFC securities.

Admired mean the company should be known for its standards. Not only customers, but also the competing life insurance companies should benchmark against HDFC SLI a nutshell, even the IRDA should give an example of HDFC SL as a guiding principle.

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30

Company Profile Of HDFC STA NDAR LIFE INSURANCE D Company Ltd.

Its being pleasure of doing SIP from HDFC Standard Life Insurance company Limited which is one of the first companies to be licensed by IRDA to operate the Insurance sector. It came into existence on 14th August 2000. Both CRISIL and ICRA have honored it with AAA Ratings. Similarly, Moodys and Standard and Poor's have also honored it AAA ratings. HDFC holds 81.4/o share in the joint venture and the remaining l8.6/o stake is with Standard Life. It integrates the strong expertise and stability of Standard Life and HDFC. It is one of the most trusted companies; it is easily accessible and approachable, offering valuable services to its customers.

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STANDARD LIFE

Standa rd Life is Europes largest mutual life assurance company. Standa rd Life, which has been in the life insurance business for the past 175 year s is a mode rn company surviv ing quite a few changes since sellin g its first policy in 1825. The company expan ded in the 19 th century from kits ori ginal Edinbu rgh premises, op enin g offices in other towns and acquit ting other sim ilar businesses. Standa rd Life currently has a s s e t s e x c e e d i n g over 7 0 bill ion under i t s management and has the distinction of being accorded AAA rat ing consequ ently for the six years by Standa rd and Poor.

SNAPSHOT

Foun ded in 1875, company Currently over 5

supporti ng ge nera tion for last Policy hol ders

134 y ears. from the

million

benef iting

services offered.

Europes la rgest mutual li fe i nsu rer.

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JOINT VENTURE

HDFC Standrad Life Insurance Company Limited was one of the first comp any regulated by the IRDA to operate in life insurance secto r. Reach of the JV player is highly rated and been conferred with many awa rds. HDFC is rated AAA by both CRISIL and ICRA. Similarly, Standa rd Life is rated AAA

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both by Moody s and Standa rd and Poor s. These refl ect the effic iency with which HDFC and Standa rd Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 C r. respectiv ely. Ltd was incorpo rated on 14 th

HDFC Standa rd Life Insur ance Company

August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standa rd of as a st aple 18. 6% Mr. Deepak Satwale kar is the MD and CEO of t he ventu re. HDFC Standard Life Insurance Company Ltd. Insuran ce Compan ies, which offers Is one of India s lead ing Private Life a range of indi vidual and group

insuran ce solutions. Finan ce Corpor ation

It is a joint Limited

ventu re betwe en Hous ing Development (HDFC Ltd.) Indias leading housing a lead ing Both the

finance institution

and the Standa rd Life Assurance services from the United

Company, Kingdom.

provi der of financial promoters

are well known for their ethical dealin gs and financial strength and to being a long-te rm player in the life insuran ce

are thus committed

industr y- all impor tant fa cto rs to consider w hen cho osing your insu rer.

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BUSINESS GROWTH
Track Record so far The gross premium income of HDFC, for the y ear endin g Ma rch 31, 2009 stood

at R s. 5,564.69 c rores .The comp any has cove red over 8,33,070 lives year ending March 31, 2009.

KEY STRENGTH
Financial Expertise As a joint vent ure of leading financial services groups. HDFC standa rd

Life has the financial expertise required to manage long-te rm investments safely and effic ientl y. Range of Solutions HDFC SLIC has a ran ge of individual and group solutions, easily custo mized to specific desig ned structu re. Strong Ethical Values: HDFC SLIC is an ethical and Cul tural Organization. s is not allowed. False sel ling or needs. These group which can be have been

solu tions

to offer comple te fl exibi lity co mbined w ith a low cha rging

false commitment with the customer

Most respected Private Insurance Company HDFC SLIC was awa rded No-1 Private Insurance Company in 2004 by

the World Class Magaz ine Business World for Integrity, Cust omer Care.

Innov ation and

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COR POR ATE O BJECTIVE Visi on

'The most succes sful and admi red li fe ins urance c ompany, w hich means that we a re the most trusted co mpany, the eas iest to deal wi th, offer the b est

val ue for money, and set t he st anda rds in the i ndustry' .

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Valu es

Integrity Innovation Cust omer centric Peop le Ca re On e for all Teamwo rk Joy and Simp licity

BOARD MEMBERS
Brief profile of the Board of Directors

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants.
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Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland.

Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant
38

has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

PRODUCTS & SERVICES

The right investment strateg ies won't just help plan for a mo re

comfort able tomo rrow -- they will help you get Sar Utha ke Jiyo. At HDFC SLIC, life insuran ce plans are created keeping in mi nd the

changi ng needs of fam ily. Its life insurance plans are des igned to provi de you with flexible options that meet both protec tion and savings needs. It offers a full range of transpa rent, flexible and value for money product s. HDFC SLIC products are mode rn and contempor ary
39

unitiz ed product s that

offer uniqu e custo mer cover levels,

benefits

like flexibil ity to choo se and partial wit hdrawals. (Sou rce:

indexation

ww w.hdfcslic.com )

PRODUCTSAND SERVICES
INDIVIDUAL PRODUCTS We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Protection Plans

You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at
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a small price. Our Protection range includes

Term Assurance Plan Loan Cover Term Assurance Plan Home Loan Protection Plan Investment Plans HDFC Standard Life provides you with attractive long term returns through regular bonuses. Our Investment range includes Single Premium Whole Of Life plan

Pension Plans

Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes Personal Pension Plan Unit Linked Pension, Unit Linked Pension Plus Our Immediate Annuity plan will aid you in receiving income post retirement and securing you financial independence. Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan Assurance Plan Savings Assurance Plan Childrens Plan Money Back Unit Linked Endowment

41

Unit Linked Endowment Plus Unit Linked Endowment Suvidha Unit Linked Endowment Suvidha Plus Unit Linked Endowment Plus II Unit Linked Young Star Unit Linked Young Star Plus Unit Linked Young Star Suvidha Unit Linked Young Star Suvidha Plus Unit Linked Young Star Plus II Unit Linked Enhanced Life Protection II

GROUP PRODUCTS One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

Social Product Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to that member beneficiary to help meet some of the immediate financial needs following their loss.

42

Eligibility Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.

The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims
Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.
43

Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer

Tax Benefits INCOME TAX SECTION GROSS ANNUAL SALARY Across All income Slabs. Across all income slabs. HOW MUCH TAX CAN YOU SAVE? HDFC STANDARD LIFE PLANS

Sec. 80C

Upto Rs. 33,990 saved on investment of All the life insurance plans. Rs. 1, 00,000.

Sec. 80 CCC

Sec. 80 D* TOTAL SAVINGS POSSIBLE ** Sec. 10 (10)D

Upto Rs. 33,990 saved on Investment of Rs.1, All the pension plans. 00,000. Upto Rs. 3,399 saved All the health insurance riders Across all on Investment of available with the income slabs. Rs. 10,000. conventional plans. Rs. 37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC, Rs.3, 399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10, 00,000. Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit. ** These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change. Please contact your tax consultant for exact calculation of your tax liabilities.

44

ELIGIBILITY

IRDA MANDATORY

PREFERED SLIC

BY

HDFC

18+ YEARS OF AGE/10+2 CANDIDATE PREFERED PASS SHOULD SCORE HIGH INVALUES AND ETHICS AND SHOULD BE A MATCH WITH HDFC SLIC VALUE WILLING TO UNDERGO AMBITIOUS, SELF 100 HRS IRDA MOTIVATED SHOULD MANDATORY TRAINING BE ABLE TO BE COMMITMENT WITH TIME AND WANTS TO MAKE SERIOUS MONEY
45

HAS NO AGENCY WITH ANY LIFE INSURANCE COMPANY

1.Profiling of prospect

Random observation, personal contacts and individual approach has been used in data collection The target areas for the FCs are CAs, Dr, housewives, student,selfemployed,graduates and retired people. These people are contacted through references given by our colleagues,seniors,family members and so on. The first target areas was housewifes because the are educated and have the potential to engage in such activities.Also,they want to invest their free time in part time working for better growth These are explained as follows:-

CA/CS
CAs being quite active in this field & have knowledge of each & and every aspects of this field. They were being contacted with the data base provided by SDMs
46

RETIRED PEOPLE
Retired people from government jobs were been approaches as their enthusiasm for working did not fade up. The main objective for targeting retired people is their experience, market knowledge, contacts with people, & their readymade image in society.

GRADUATES
Graduates have the ability to work in any situations. The have zeal, power, enthusiasm, & urge to do something. The graduates were been approached as they can flourish their career by being FCs

DOCTORS
Doctors are one of the essential target areas of recruiting FCs Doctors meet hundreds of people from every sphere of society everyday. Moreover doctors are hard working people & will be easy to convince to earn an additional income.

SELF-EMPLOYED
Self employed can also proved to be a major group for recruiting FCs. Self employed people have the opportunity to take the FC ownership in their own name. Also, they do not have fixed hours of working &moreover as is the case with the doctors, their social sphere is not limited
47

HOW DO WE MAKE YOU A FINANCIAL CONSULTANT?

1. The company would support you by providing the required training and regular coaching 2. We also provide information in the form if sales at, so that you are able to provide the best service to costumers. 3. One of the principle responsibilities of our business development manager is to insure that each FC is supported at all times.

WHY RECRUTMENT OF FINANCIAL CONSULTANT

These are two aspects of employment in the insurance sector today, one is permanent employment, for sales, operation, it support, back office service and so on. We are also offering the other kind of employment for people to sell Life insurance they are called life financial advisors. This is a big area of employment
48

 Because we are supposed to. That the way to do this business More recruits, more active advisors

THINGS TO CHECK WHILE RECRUITING

His past/present occupation gives tremendous insight into his energy levels. 1. Show him the path in his current environment how insurance selling can fit in lowers the resistance of time availability. 2. Check his environment, his family locality 3. Find out if he is looking for money or career as can have both here 4. Energy energy always check the persons energy level, as career is all about meeting new people, finding new prospect and more so handling rejections. 5. Always try to meet the person at his residence check for the locality, his household standards of living, try to involve the spouse in the presentation so that they know what they are getting into. 6. Always check on need for money and a drive to do well in life if he has been doing well in life he will make efforts to do well with us. 7. Keep checking on the pointers and do mental checks list of the acceptable points 8. Be convinced about the profile and only go ahead
49

BENEFIT OF RECRUITMENT:
1. High probability of success 2. Tax and financial consultant 3. Bond/and mutual fund agent 4. LIC agent- surrogate 5. Small business owners

ROLE OF FINANCIAL CONSULTANT:

TO PROVIDE ON GOING FINANCIAL ADVICE FOR HIS/HER CLIENTS: Identify future client Making appointment Conduct financial review meetings with prospects/clients Close sale Get referrals Provide services to clients

WORKING ENVIRONMENT
50

 To be part of a world class sales team Work from your own office or residence Work full time or part time Earn commissions, bonus and incentives No upper limits of earning Flexible career

YOUR OPPORTUNITY
No stamp capital required Flexible working environment Be your own boss Unlimited earning potential

51

EXTENSIVE TRAINING TO MAKE YOU A PROFESSIONAL ADVISOR STATE OF THE ART TRAINING ON:
Selling skills Product knowledge Relationship skills

TRAINING DELIVREY THROUGH SEVERAL CONVINIENT OPTIONS:

Face to face Online Self learning

Easy way to start on your own: Zero investment:

There is no start up capital. Be ones own boss with a flexible working hour, unlimited earning potential and the opportunity to be part of a world class sales team.
52

 Flexible work timing, part time or full time:

One can work whenever one likes and wherever one likes. One can work fulltime or part time, depending upon ones convenience its like no other job. However, time one invests will determine ones success.

Sunrise industry:

Life insurance in India has a huge potential for growth. Statistics reveal that only 25% of the insurable population in India is not insured and those insured are in need of still higher insurance cover. The over 100% growth displayed by private life insurers indicating this huge untapped potential.

Professional training programs

At HDFC standard life, training is an inherent element of our support system (at no cost) for our new financial consultants. Some of our training & support imitative are as follows:-

IRDA Training
Online training of 100 hours prepare One for One career as FC and enables one to pass the IRDA examination. After the IRDA license, one takes ones first step towards a successful career as a FC

Basic Training & Induction

53

Independent of ones working experience; this training will perfect ones knowledge about the insurance industry along with comprehensive knowledge about HDFC SLIC

Disha Training
This is a professional sales skill program devised by us to hone ones selling skills. This program enables one to understand customer needs and provide need based insurance solutions. A huge step from an amateur to a true finance professional.

Advanced Training:Once one have settled down as a FC professional HDFC will continuously upgrade ones capability and knowledge through sophisticated training program, fit for this dynamic world of finance product and market.

Unmatched support: Market activity support to make our task easier. Advertising & communication support throughout the year. Customer friendly Brochures and sales aid to help one in selling insurance solutions to customers. 24 hours information support,to help one track ones support and income.

High Potential income:-

Attractive commission structure & rewards:

54

As a FC one have the opportunity to earn high commission & time to time one also can get rewards according to ones performance.

Decide ones own pay cheque:

Ones income earning potential is directly proportional to the effort put in by one. Its a simple formula the more people one meet, the more one sell & the more one earn. Our commission structure has the liability to give one the maximum benefits for every policy one sells. Its as easy as writing ones own pay ceque.

Long term earning potential:

The policies sold by one will give one a reward income income every year. So every year ones income keeps increasing steadly, even if one sells the same no. of policies every year.

Regular income:
The commission one earn is paid by the company every 15 days. This ensures that one get a regular income.

Ones Reward:
We have several reward programs to inspire good performance & create a positive spirit amongst our FC. These reward programs include foreign trips, seminars, prizes & special club memberships to the silver club, Gold club & platinum club. We also sponsor our top performing FCs for international training programs & seminars. This year HDFC SLIC are sponsoring 124 FCs for such events.
55

PROCES OF RECRUITMENT
1. No. of prospects contacted:

The no. of prospects being contacted were 100 including CAs, Doctors, Housewives, Retired persons, Students, Businessmen, among all the people contacted the percentage of housewives were maximum, it was approximately 30% of the total, the percentage of retired persons, businessmen, were 20%, the remaining 50% included students, salaried people, self employed graduates.

2.

No. of appointments generated:

Among all the people contacted 50 persons were ready to give appointment via following modes like telecommunication, personal visits.

3.

No. of FCs recruited:

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The no of FC recruited were 6 which include businessmen, professionals, students ,etc.

4.

Critical ratio:

Out of 100 people the no. of people were converted as FC were 1 which is 1% of the total contacte

RESULT:

Out of 100 people contacted through different modes only 1 were converted as a financial consultant resulting in low critical ratio.

Hence the project named as RECRUITMENT OF CERTIFIED FINANCIAL CONSULTANT was successfully completed.

SCOPE OF STUDY:

CHANNEL DEVELOPMENT
57

CHANNEL DEVELOPMENT:

Why to RECRUIT? Who to RECRUIT? How to RECRUIT? Recruitment Activities What to Check while we are Recruiting Role of consultant Working Environment Support Package for successful Advisor. Extensive trading for successful Advisor. Payment and benefit commission Structure Recognition Program Why to RECRUIT?

These are two aspect of employment in the insurance sector today. One in Permanent Employment for sales operation, it support back office services and so on. We are also offering the other kind of employment fee people to sell life insurance they are called Life Advisor or Financial Advisor . This is a big area of employment which is very successful. However they have not been sustainable on long period. Who to RECRUIT? Quality department has given some indicator in terms of what are the commonalities (Q score) of one successful advisor--The commonalities were Age between 30 45 Education graduate Family income above Rs. 2 lacs. P. a.
58

The most important fact to remember in that 61% of our red category advisors do not fall into any of their category. This is a broad pointer for us to remember what are the /her profile. Some other pointer from Quality Income Profile Apron Rs. 1 lacs p.a. People who do not own their transport

How to RECRUIT?

Things which you should have while meeting the prospect BOP presenter Reward points booklet or take a copy of the catalog from the website Advisor manual can show how the manual can answer many procedural Talk about email id and tech support the prospect would like to know

Recruitment Activities

Many market shows too show the booklet its importance. Copy of any certificate MDRT certificates, sales champion certificate etc. to show recognition

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Things to check while recruiting Energy , energy always check the persons energy levels , as this career is all about meeting new people finding new prospects and more so handling rejections His past present occupation gives tremendous insight into his energy levels Show him the path in his current environment how insurance selling can fit in lowers the resistance of time availability Check his environment his family locality Check whether he can work on his own Find out if he is looking for money or career as he can have both here

Things to check while recruiting Always try to meet the person at his residence check for the locality his household standard of living try to involve the spouse in the presentation so that they know what they are getting into.

60

Always check on need for money and a drive to do well In life if he has been doing well in life , he will make efforts to do well with us Ask questions about his past , find instances of accomplishments Keep checking on the pointers & do a mental check list of the acceptable pointer Be confined about the profile and then only go ahead

Advisor Role To provide on going financial advice for his/her client Identify future client Marking appointments Conduct financial review meeting with prospects/ clients Close sale Get referrals Provide service to clients Following internal sales and reporting system

Working environment To be part of a world class sales team. Work from your own office or residence Work full time or part time Earn commission bonus ,incentives No upper limits in earnings
Flexible career

Your Opportunity:
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No startup capital required. Flexible working environment Be your own boss Unlimited earning potential To be part of world class team

BENEFITS OF JOINING HDFC SLIC

Commission & Renewals: As insurance advisor you can earn handsome commission, which varies from 5% to 40% depending upon product to product and in addition 1st year commission entitled to renewal commission also. Star on debut: If our new advisor sources RENP 2,00,000 in 30 days licensing then he/she is entitled to Silver Medal(Approx value Rs. 5,000) + certificate (signed by ZM & Reg. Mgr). Rising Star on Debut: If our new advisors sources RENP of Rs. 5,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.13000) + certificate (signed by ZM & Reg. Mgr). Millionaire Star on Debut: If our new advisors sources RENP of Rs. 10,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.25000) + certificate (signed by ZM & Reg. Mgr). Global Star on Debut: If our new advisors sources RENP of Rs. 24,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.60000) + certificate (signed by ZM & Reg. Mgr).

62

Star of the Month: Top 3 FCs, 1st Rank: Trophy + Certificate recognizing the performance signed by ZM & Reg. Mgr., 2nd &3rd Reg. Mgr.

To recognize best talent our company has following clubs:

Bronze Club: Non Monetary Benefit 1%. Minimum RENP Rs. 3, 00,000 (contest period 5th July-30th Jun) Silver Club: Non Monetary Benefit 3% and Retention Bonus Rs.5,000. Minimum RENP Rs. 6, 00,000 (contest period 5th July30th Jun) Gold Club: Non Monetary Benefit 5% and Retention Bonus Rs.10,000. Minimum RENP Rs. 15, 00,000 (contest period 5th July30th Jun) Toppers Club: Top 101st to 225th ranked CFCs on RENP Minimum RENP Rs.40, 00,000 Non Monetary Benefit 5% and Retention Bonus 1% Total 6%. (Contest Period 5th July-30th Jun) Centurion Club: Top 100 ranked CFCs on RENP Minimum RENP Rs.40,00,000 Non Monetary Benefit 5% and Retention Bonus 1.25% Total 6.25% up to 10% (Contest Period 5th July-30th Jun)

Other Schemes & Incentives: Our Company announces from time to time different incentive schemes in which gifts vary from small
63

item like Leather bag to luxury car for example Skoda Octavia.

Career Opportunity for Certified FCs

Branch Manager Assistant Sales Manager

Branch Development Manager Sales Development Manager Certified Financial Consultants

CFC Welcome Kit:

64

1. 2. 3. 4. 5. 6. 7. 8. 9.

Welcome letter Laminated Identity Card Copy of agency agreement IRDA License Bank account 100 visiting card from the branch Commission booklet Reward& recognition booklet Pin to access HDFCSLIC website

Extensive training to make you a professional advisor

Selling skills Product knowledge Relationship skills

Training delivery through several convenient options Face to face Online Self learning

Next steps Confirmation of mutual interest Selection interview Profiling test dates Draft payment favoring ICICI prudential life insurance co . Ltd Payable at Mumbai Finalize Training Date, venue Support team the Company Field visits Training on products
65

And selling skills Regular business reviews Be a coach and mentor Recognize high performers Help you become financially independent Expectations of team Achieve sales targets Participate in all meetings Attend all training program Weekly reviews at the office Follow the sales process Follow weekly reporting process

Financial Consultants are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Insurance sector plays a vital role in assuring people about their future. As the scope of insurance enhancing, the need of an insurance Agent who can guide the potential customers is growing. Being an Insurance Agent of HDFC-STANDARD LIFE INSURANCE provides a legal mean to earn money which protects a person from earning through a illegal source which is harmful for society as well as himself. For the youngsters it provides great platform to prove them. On the basis of their performance they can be recruited as unit

66

67

RE SEARCH DESIGN
A Resea rch Design is the framework or plan for a study which is used as

a guide in col lecting and analyzi ng the data collected. It is the blue print that is followed in comp leting without the stud y. The basic a proper for objective of resea rch the to

cannot be attained methods conduct

resea rch des ign. the

It spec ifies needed

and proced ures

acquir ing

info rmation operational

the resea rch effectiv ely. It is the overall

patte rn of from

the project that stip ulates what info rma tion needs to be collected,

which sources and by what methods. The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answe

METHODS OF COLLECTING DATA: The method of data collected was personal interaction, telephonic interview, observations of the existing appraisal system of HDFC SLIC. The data so far collected or provided is secondary as total tele-calling was done on an already existing data for financial planning and to become companys certified financial consultant. But telephone directories are also used to find out the contacts. TYPE OF DATA COLLECTED
68

There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. (Source: Research Methodology, By R. Kothari) PRIMARY SOURCES These include the survey or direct communication with employees and questionnaire method, telephonic interview as well as the personal interview methods of data collection. SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, official records of the company newspaper articles etc. Websites covered are: www.google.com www.hdfcinsurance.com HDFCSLIC s Green Page.

SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.

Sampling Units: Business Man, Professionals ,Service persons, Students and House Wives .

Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire.

69

Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents.

DATA COLLECTION INSTRUMENT: The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will based on personal interview. I have prepared the questionnaire according to the necessity of the data to be collecteD

70

71

Ques 1. Your Age ? Sr. No. 1. 2. 3. 4. Category 18-23 Years 24-29 Years 30-35 Years Above 35 Total No. of Respondents 25 14 40 21 100 Percentage 25% 14% 40% 21% 100%

A eo R s o d n s g f ep n e t

2% 1

2% 5 1 - 3 Y e rs 82 a 2 - 9 Y e rs 42 a 3 - 5 Y e rs 03 a A o ve 3 Y e rs b 5 a

1% 4 4% 0

Objective: To Find out the average age of the Sample size . Findings: Most of the people were from age group of 30-35 years followed by age group
72

of 18-23 years. Sr. No. 1. 2. 3. Category 12th Graduate Post graduate Total No. of Respondents 25 40 35 100 Percentage 25% 40% 35% 100%

Ques 2. Your Educational Qualification?

E u a i n l Q a f c to o d c t o a u li i a i n f R s o d ns ep n e t

2% 5 3% 5 1t 2h G aut r d ae Po t G s r au t t ae

4% 0

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Objective: To find out Qualification level of the respondents. Findings: graduate. Most of the people out of respondents were graduate followed by post

Ques 3. Your current occupation ? Sr.No. 1. 2. 3. 4. Category Student Business Professional Service Total No. of Respondents 23 35 20 22 100 Percentage 23% 35% 20% 22% 100%

Occupation of Respondents

22%

23%

Student Business Professional Service 20% 35%

Objective: To find out Occpation so that the natural networking of the respondents can be used. Findings: Most of the people were from business class and after this majority was of
74

Students.

Ques 4. Your Annual Household income ? Sr. No. 1. 2. 3. 4. Categoy Less than 2 lacs Between 2 to 5 lacs Between 5 to 8 lacs More than 8 lacs Total No. of Respondents 52 22 11 15 100 Percentage 52% 22% 11% 15% 100%

A n a h u e o in o eo R s o d n s n u l o s h ld c m f e p n e t

1% 5

1% 1

5% 2

L s th n 2 la s es a c B tw e 2 t 5 la s e en o c B tw e 5 t 8 la s e en o c M re th n 8 la s o a c

2% 2

Objective: To find out the financial soundness of the Respondents . Findings: Most of the people out of respondents were having the income of less than 2 lacs followed by people having income of 2 to 5 lacs.
75

Ques 5. Do you know about HDFC Standard Life Insurance ? Sr. No. 1. 2. Category Yes No Total No. of Respondents 64 36 100 Percentage 64% 36% 100%

A w aren ess abou t H D FCSL I C

36%

Yes No

64%

Objective: To know the awareness of the Company among people. Findings: Out of Respondents 64% people are aware of the companys existence.

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Ques 6. Do you have any insurance policy ? Sr. No. 1. 2. Category Yes No Total No. of Respondents 70 30 100 Percentage 70% 30% 100%

No. of insured people

30%

Yes No

70%

Objective: To find out the no. of existing customers and the potential customers. Findings: Most of the people out of respondents ie. 70% are already insured and rest 30% people are still not insured so this 30% market is the potential Customer for the company.
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Ques 7. Name of the Insurance Company ? Sr. No. 1. 2. 3. 4. Insurance Company LIC ICICI HDFCSLIC Others Total No. of Respondents 52 10 7 31 100 Percentage 52% 10% 7% 31% 100%

Policy Distribution

31% LIC ICICI 52% HDFCSLIC Others

7% 10%

Objective: To find out the Market leader among several insurance companies. Findings: Most of the people out of Respondents are insured by LIC followed by ICICI . Most of the people even now have a great faith in LIC because its a Govt. organization, Here market leader is LIC .
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Ques 8. Do you know about HDFCSLIC recruitment policies related to Financial Consultants ? Sr. No. 1. 2. Category Yes No Total No. of Respondents 18 46 64 Percentage 28% 72% 100%

Awareness about FC

28%

Yes No

72%

Objective: To find out the awareness about HDFCSLICs Financial Consultants among people. Findings: Most of the people out of Respondents are unaware about the HDFCSLICs Financial Consultants Recruitment policy, only few people are aware, so there is a great need of creating awareness through promotional activities.
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Ques 9. Will you be interested to become a Financial HDFCSLIC ? Sr.No. 1. 2. 3. Category Yes No May be in future Total No. of Respondents 3 11 4 18

Consultant For

Percentage 17% 61% 22% 100%

I nterested to be a Financial Consultant

22%

17%

Yes No May be in future

61%

Objective: To find out the readiness and the interest level of the Respondents. Findings: Out of 18 people who are aware of Financial consultant recruitment only 3 people ie. 17% are ready to be a financial consultant for the HDFCSLIC, despite of being aware most of the the people are not ready to be a financial consultant.

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Ques 10. If yes then, what attract you most out of all these benefits given to a Financial Consultant ? a) Financial Independence b) Flexible working hrs. c) Zero investment d) No control over you e) Rewards and Recognition Sr. No. 1. 2. Category A&D A&B Total No. of respondents 2 1 3 Percentage 67% 33% 100%

prioritization of benefits

33%

A&D A&B

67%

Objective:To find out the parameters on which their interest of becoming financial consultant depends.

Findings: Out of these 3 people , 67% means 2 are interested towards Financial independence and no control over them, rest 33% means 1 is interested in financial
81

independence and Flexibility of working hrs.

So here every one is looking to be financially independent and after that what comes is that they dont want any type of control over them, they want to be their own boss, after these two then comes flexibility of working hrs.

Ques 11. If no, then what are the reason of not opting this Carrer opportunity of becoming a Financial Consultant ? a) b) c) d) Not interested in Financial Sector Targets are high Perceive insurance as inauspicious Convince people to take policy is very tough

Reason of dissatisfaction Tow ards FC

27%

A B & E 55% B & F

18%

e) f)

Time constraint Selling insurance policy is still considered inrespectible

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Objective: What are the parameters or reasons which stop them from becoming the financial consultants. Findings : Out of 18 people who are aware of Financial consultant recruitment most of them ie. 11 people are not ready to accept it as a career option. Most of the people among these dont want to be a financial consultant because they think that selling insurance is not respectable and a lot of target is given to these financial consultant. Some people are not at all interested in doing any kind of job in financial sector because of some hidden reasons, and rest of them think that they dont have enough time for this.

Conclusions:
Sr.No. 1. 2. 3. Category A B&E B&F Total No. of Respondents 3 2 6 11 Percentage 27% 18% 55% 100%

After doing a research study on a sample size of 100 people It has been seen

that only 3 people get converted to the financial consultant, here rate of conversion is very low so its a very tough job of searching such people who are interested to be a
83

financial consultant and have all requisite a financial consultant should have like age and qualification criteria.

People who are having income of less than 2 lacs and of age group 30-35 are

the most interested people towards becoming financial consultant, and those who are having their small business are most enthusiastic to be a financial consultant, these people want to grab this opportunity of becoming a financial consultant and want to earn money by investing nothing and selling insurance policies for the company.

LIC being a Govt. organization is the market leader in this sector of

insurance, most of people are insured by LIC , after LIC , people are having insurance policies ICICI, and after this people are having insurance policies of HDFCSLIC. It has been found about the awareness of HDFCSLIC, about 64% people are aware of the company and its products, rest 36% people are unaware, so various awareness and promotion activities need to be conducted.

Out of people who are aware of HDFCSLIC and its policies only few are

aware of recruitment policies of HDFCSLIC as financial consultant and out of aware people only few people wants to be a financial consultant.

The parameters any person looks on which their interest of becoming

84

financial consultant depends then it has been found that most of the people prefer

financial consultants job just because they want to be financially independent and they dont want any kind of control over them from the organizations side, after these two features any one look for this as a career option because of flexibility of working hours.

Most of the people among those who dont want to be a financial consultant,

think that selling insurance is not respectable and a lot of target is given to these financial consultant. Some people are not at all interested in doing any kind of job in financial sector because of some hidden reasons, and rest of them think that they dont have enough time for this

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SWOT ANALYSIS

SWOT ANALYSIS STRENGTH:

Multi channel distribution and one of the largest distribution networks in India Implementing six sigma process
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Customer centric products and services Superior investment and risk management frame work 1Million policies sold within 3 and half years company has maximum number of MDRT as well as good number of HNI advisors training process of the company is very strong different plan for different peoples According to the change in surrounding environment like change in customer requirement.

WEAKNESS:

Company does not penetrate on the rural market at a time There is no plan for the low income group. Fees for the advisor is high than the other company.

OPPORTUNITY:

Insurance market is very big. Where company can expand its horizon in insurance industry. Through good investment and insurance it is easy to top Indian customers The huge insurance market is left so company has opportunity to expand our products To associate with the more number of HNI

THREATS:

Sold habits die hard: its still difficult task to win the confidence of public towards private company. The company is facing major threats from LIC which is an only government company.
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Plans for all income groups are not available which can create adverse effect later on the market share of the company.

CONCLUSION: The market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediate steps in appointing more number of agents and / or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on the factors like Prevention of Loss. Assured Returns and Long tern Investment they can also focus on an insurance amount of Rest 1- 2lakh with money back policies Hence the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily and rapidly.

Limitations: As per my experience at HDFC Standard Life Insurance Company what

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I got to know is: Out of l00% tele-calling only l0% agrees and 2% gets converted that

too by approaching the customers again and again and time allotted to us was limited as it even takes three to four months or may be more to get one call converted.

I was given a limited geographical coverage area i.e. confined to only Jaipur because clients are also there from other cities.

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 form the respondents due to their inherent problem is difficult.

Limited response from client.

My suggested recommendation for this project are as follows: Increasing awareness:One of the major problems in recruiting FCs was that they were not aware of the prospects and profit of becoming an FC. So, it was
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really hard to convince them which could have been easier if they had been aware.

Increment of target areas:The potential areas which are generally targeted by the company should be increased. This will give the opportunity to many people of society those who want to work in the insurance sector & they also have the zeal to achieve something, can proved themselves in this field. And these areas include government employees etc.

Providing incentives to hard working FCs:The extra incentives in the form of additional rewards should be provided to the hard working FCs. This will increase their will power to achieve highest target & this will also boost-up their morale & loyalty towards company. And because of this strategy of company many people will be attracted towards us. Promotion areas should be extended:Advertisement plays a very important role in promoting something in the market. So major emphasis should be laid on the advertisement, strategy. Today, net advertisements also have a very strong approach in the general public. So there are many methods which can help achieve our target

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Bibliography:
www.h dfc slic.c om www.ir dai ndia .com

Magazi ne Insur an ce World The Ou tlook Mo ney

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Appendix:
BRIEF NOTE ON IRDA The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto." Just like RBI is the bank of banks the IRDA is the authority which handles insurance companies. The IRDA has prescribed both qualifications & the

disqualification for a person to be given a license to be the

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financial consultant of the company. As per the IRDA guidelines every advisor must be trained & licensed to sell life insurance. The responsibilities & obligations of the advisors have been clearly defined there. Section 145 of IRDA Act, 1999 lay down the duties, powers & functions of IRDA. IRDA has a Chairman and some permanent and some part time members but the regulations are enacted under the guidance of a statutory advisory committee which consists of some individuals and ex-officio authorities. IRDA journal is also available as soft copy in its website.

Questionaire:
Ques 1. Your Age ? a) 18-23 Years d) above 35 Ques 2. Your Educational Qualification ? a) 12th b) Graduate c) Post graduate b) 24-29 Years c) 30-35 Years

Ques 3. Your current occupation ? a) Student b)Business c)Professional Service Ques 4. Your Annual Household income ? a) Less than 2 lacs b) Between 2-5 lacs c) Between 5-8 lacs d) Above 8 lacs
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d)

Ques 5. Do you know about HDFC Standard Life Insurance ? a) Yes b) No Ques 6. Do you have any insurance policy ? a) Yes b) No Ques 7. If yes then, Name of the Insurance Company ? a) LIC b) ICICI c) HDFCSLIC

Ques 8. Do you know about HDFCSLIC recruitment policies related to Financial Consultants ? a) Yes b) No Ques 9. Will you be interested to become a Financial Consultant For HDFCSLIC ? a) Yes b) No

Ques 10. If yes then, what attract you most out of all these benefits given to a Financial Consultant ? a) Financial Independence b) Flexible working hrs. c) Zero investment d) No control over you e) Rewards and Recognition Ques 11. If no, then what are the reason of not opting this Carrer opportunity of becoming a Financial Consultant ? a) Not interested in Financial Sector
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b) Targets are high c) d) very tough e) f) Time constraint Selling insurance policy is still Perceive insurance as inauspicious Convince people to take policy is

considered inrespectible

Personal details: Name: Address: Date:

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