A PROJECT REPORT

ON

A STUDY ON LIFE INSURANCE PRODUCTS AND DISTRIBUTION

CHANNELS

AT

HDFC STANDARD LIFE INSURANCE COMPANY LTD

SUBMITTED TO
BHARATI VIDYA PEETH UNIVERSITY

FOR THE PARTIAL FULFILMENT OF THE AWARD OF

MBA
SESSION: 2008 – 2010

SUBMITTED BY

YOGITA SONI
 ACKNOWLEDGEMENT

It is a pleasure to record my thanks and gratitude to persons and organizations whose generous help
and support enabled me to complete this study within the stipulated time period.

I would like to thank (BRANCH MANAGER)HDFC STANDARD LIFE INSURANCE GURGAON,

who has given me the opportunity to work on this project. I also take this opportunity to express my
gratitude to Mr. PARMOD KAUSHIK (TRAINING MANAGER). I am greatly indebted to all those persons
who have helped me in some way or other in the completion of the project.

However, I take the responsibility of all my shortcomings.

yogita
MBA – III
 PREFACE

I had undergone a practical training under hdfc standard life insurance, gurgaon region. It was
a good exposure for me to undergo training in such a company to get the knowledge and
experience regarding life insurance recruitment of capable of life insurance advisors.

Summer training one of the major experience components of the knowledge, gain of relevant of
information with respect to marketing and dealing with situations in a professional course like
mba .where a professional person faces a problem in a field. I was able to get familiarized with
the customer relationship and got to know how a company measures to resolve their grievances
and service them to the maximum for future prospect and success. Field component like survey,
generation of questionnaire with respect to marketing helped me a lot and would be a great
support in future.

“It is good to have enthusiasm but it is essential to have training.

Training can be in all way of life.” Thus I would say that this training was beneficial educative
& good exposure to me, which will certainly help in my near future. This project was designed
with respect to this company. The project made me to get the enhanced knowledge regarding life
insurance concept and the process of recruiting of financial consultant.
 INTRODUCTION

With largest number of life insurance policies in force in the world, Insurance happens to be a
mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per
cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds
available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this part of
the population is also subject to weak social security and pension systems with hardly any old
age income security. This is an indicator that growth potential for the insurance sector is
immense.

A well-developed and evolved insurance sector is needed for economic development as it

provides long term funds for infrastructure development and at the same time strengthens the risk
taking ability. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain economic growth of the country.

Insurance is a federal subject in India. There are two legislations that govern the sector- The
Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full
circle from being an open competitive market to nationalization and back to a liberalized market
again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn
witnessed over a period of almost two centuries.
 Historical Perspective

The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company
to charge same premium for both Indian and non-Indian lives. The Oriental

Assurance Company was established in 1880. The General insurance business in India, on the
other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the British. Till the end of
nineteenth century insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied
insurance business in India. By 1938 there were 176 insurance companies. The first
comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict
State Control over insurance business. The insurance business grew at a faster pace after
independence. Indian companies strengthened their hold on this business but despite the growth
that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create much needed funds
for rapid industrialization. This was in conformity with the Government's chosen path of State
lead planning and development.

The (non-life) insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
into four companies- National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC).
Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner, and to promote home
ownership. Another objective is to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic financial markets.

Organisational Goals

HDFC's main goals are to

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the existing client base.

HDFC operates through 75 location throughout the country with its Corporate Headquarters in
Mumbai, India. HDFC also has an international office in Dubai, U.A.E. with service associates
in Kuwait, Oman and Qatar.
INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF HDFC STANDARD LIFE INSURANCE

COMPANY LTD.

ABOUT HDFC STANDARD LIFE INSURANCE

Hdfc standard life insurance company ltd is one of India’s leading private Insurance companies,
which offers a range of individual and group insurance Solution. It is a joint venture between
housing development finance corporation Limited (hdfc ltd.),India’s lead in housing finance
institution and a group company of the standard life uk hdfc as on December 31,2007 holds
72.38 percent of equity in the join venture.

OUR 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. Range of
Solutions: We have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.

Track Record so far:

Our gross premium income, for the year ending March 31, 2007 stood at Rs. 2, 856 crores and
new business premium income at Rs. 1,624 crores. The company has covered over 8, 77,000
lives year ending March 31, 2007. 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 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.
HDFC STANDARD LIFE INSURANCE PARENTAGE

HDFC Limited.
 HDFC is India leading housing finance institution and has helped build more
than 23, 00,000 houses since its incorporation in 1977.

 In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores.
The depositor base now stands at around 1 million depositors.

 Rated AAA by CRISIL and ICRA for the 10th consecutive year.
 Stable and experienced management
 High service standards
 Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
 Presented the Dream Home award for the best housing finance provider in
2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

 Standard Life Group (Standard Life plc and its subsidiaries)
 The Standard Life group has been looking after the financial needs of
customers for over 180 years
 It currently has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care
needs
 Its investment manager currently administers £125 billion in assets
 It is a leading pensions provider in the UK, and is rated by Standard & Poor's
as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
 Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and
2006 at the Money Marketing Awards, and it was voted a 5 star life and
Pension’s provider at the Financial Adviser Service Awards for the last 10
years running.

The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years,
and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best
Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006
 HISTORY
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and UK
based Standard Life Company. Both the joint venture partners being one of the leaders in their
respective areas came together in this 81.4:18.6 joint Venture to form HDFC standard life
insurance company limited.

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the
company new directions and has helped the company achieve the status it currently
enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or
individual or NAV services for corporations, they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by
March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC
Standard Life Insurance Corporation is sure to become one of the leaders and the first Preference
for any life insurance customer.

The Banc assurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFC Bank
India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Sarawat Bank and Bajaj
Capital. The premium payment options available to the customers vary from online payment to
direct desk payments at the HDFC Standard Life Branches, by courier services or in drop boxes
provided. You can also pay by ECS or Automatic Debit System or credit cards or standing
instruction mandate. HDFC Standard Life Insurance Company is a customer oriented corporation
and aim at complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly defined on the
official website. Online renewal forms are also available. For any change in personal details like
the contact details or the nominee of the policy or policy benefits, online servicing is also
available. Even the claim procedure has been simplified since affect of the loss life is irreparable
and is thus fully understandable at HDFC Standard Life.

A completely hassle-free process has been formulated to provide maximum convenience. HDFC
Standard Life Insurance Company Limited is one of India's leading private life insurance
companies offering a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd), India's leading
housing finance institution and Standard Life plc, the leading providers of financial services in
the United Kingdom HDFC 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
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 the beginning 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 first 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.

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 companies in India are measured. HDFC Ltd. as on
December 31, 2007 holds 72.38 per cent of equity in the joint venture. HDFC Standard Life's
Product portfolio comprises solutions, which meet various customer needs such as Protection,
Pension, Savings, and Investment. Customers have the added advantage of customizing the
Plans, by adding optional benefits called riders, at a nominal price. The company currently has
21 retail and 6 group products in its portfolio. HDFC Standard Life maintains very high
professional standards during product offerings by providing sound financial advice, efficient
post-sale service, and immaculate financial security. Ongoing training for conventional products,
and specialized training, for unit-linked products, for its financial consultants, has also helped its
customers choose the product, best suited for their needs. HDFC Standard Life operates across
more than 726 cities and towns of the country supported by its strong network of more than
1,45,000 Financial Consultants. HDFC Standard Life also has more than 383 corporate agents
and other sales intermediaries including banks for distribution of insurance products.
BOARD MEMBERS

Brief profile of the Board of Directors

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.

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 Accountant.

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.

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 practicing 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 nationalized 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 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.
Our vision and values

Our vision

The most sues full and admired life insurance company which means that we are the most trusted
company. the easiest to deal with, offer the best value for money, and set the standars in the
industry.

The most obvious choice for all’

Our values

Values that we observed while we work

 Integrity
 Innovation
 Customer centric
 People care one for all and all for one
 Team work
 Joy and simplicity
Awards and Accolades
May, 2008
Received PCQuest Best IT Implementation Award 2008
HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant
Corner, the applications for its financial consultants, providing centralized control over a vast
geographical spread for key business units such as inventory, training, licensing, etc. Read more
about the ‘Consultant Corner’ tool in the ‘HDFC SL in news’ section. HDFC Standard Life has
won the PCQuest Best IT Implementation Award for two years consequently. Last year, the
company received the award for Wonders, its path breaking implementation of an enterprise-
wide workflow system

March, 2008
Silver Abby at Goa fest 2008
HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft
category at the Goa fest 2008 organized by the Advertising Agencies Association of India
(AAAI). The radio commercial ‘Pata nahin chala’ touched several changes in life in the blink of
an eye through an old man’s perspective. The objective was drive awareness and ask people to
invest in a pension plan to live life to the fullest even after retirement, without compromising on
one’s self-respect.

Laadli Media Award 2007

HDFC Standard Life received Laadli Media Award 2007 for its 'Big car' TV commercial. It
showed how a daughter wants to be more responsible towards her family and asks her dad to
upgrade to a bigger car by offering him the extra money required to buy the car. HDFC Standard
Life received this award for two years consecutively. In 2006, it won for the 'Papa' TV
commercial, which challenged the stereotype parents saving only for their son's education or
daughter's wedding. The company took a bold step by showing parents saving for their
daughter's education abroad, demonstrating Progressive thinking. Laadli Media Awards,
instituted in 2007, by Population First, an NGO working on women's rights and social
development, is given to professionals in print and electronic media and ad makers for gender
sensitive news reports, articles, print, TV ads, and films.

March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads Survey
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private
insurance companies in India, has topped Mint’s Top Television Advertisement survey
conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Plan advertisement
was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms
of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were
between 18 and 40 years. Mint’s exclusive report, ‘New voices in a makeover’ outlines the
survey in detail.

February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007
Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the
QIMPRO Gold Standard Award 2007 in the business category at the 18 th annual Qimpro Awards
function. The award celebrates excellence in individual performance and highlights the quality
achievements of extraordinary individuals in an era of global competition and expectations.

January, 2008
Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments HDFC Standard Life’s
advertising slogan honored as one of ‘60 Glorious Advertising & Marketing Moments' over
the last 60 years in India,’ by 4Ps Business and Marketing magazine. The magazine said that
HDFC Standard Life is one of the first private insurers to break the ice using the idea of self
respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then,
followed by others including ICCI Prudential, thus giving HDFC Standard Life the credit of
bringing up one such glorious advertising and marketing moment in the last 60 years.

4th August 2008

HDFC Standard Life Launches Unit Linked Wealth Maxi miser Plus

23rd July 2008

HDFC Standard Life Launches SimpliLife, a Unit Linked Plan in Simplest Way

14th May 2008

HDFC Standard Life Declares Results for FY2007-08; New Business Premium
Income grows by 63%

4th March 2008

HDFC Standard Life Expands its Reach with Inauguration of Mohali Branch
 MICRO ANALYSIS

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the
state owned LIC till the entry of private insurers. The penetration of life insurance products was
19 percent of the total 400 million of the insurable population. The state owned LIC sold
insurance as a tax instrument, not as a product giving protection. Most customers were under-
insured with no flexibility or transparency in the products. With the entry of the private insurers
the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the
market in terms of premium income. The new business premiums of the 12 private players have
tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium
business has fallen.

Innovative products, smart marketing and aggressive distribution that’s the triple whammy
combination has enabled fledgling private insurance companies to sign up Indian customers
faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new innovative
products on offer.

The growing popularity of the private insurers shows in other ways. They are coining money in
new niches that they have introduced. The state owned companies still dominate segments like
endowments and money back policies. But in the annuity or pension products business, the
private insurers have already wrested over 33 percent of the market. And in the popular unit-
linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading people to
take out bigger policies. For instance, the average size of a life insurance policy before
privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers
are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh-
way bigger than the industry average.
IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN
INDIA:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital
contribution of Rs. 5 crore from the Government of India.
INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N.
Malhotra- was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar reforms. In 1994,
the committee submitted the report and some of the key recommendations included:

1) Structure Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries
can act as independent corporations. All the insurance companies should be given greater
freedom to operate.

2) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed
to enter the sector. No Company should deal in both Life and General Insurance through a single
entity. Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies. Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should
be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent

4) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced

from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there
current holdings to be brought down to this level over a period of time)

5) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans. Computerization of
operations and updating of technology to be carried out in the insurance industry.

The committee emphasized that in order to improve the customer services and increase the
coverage of insurance policies, industry should be opened up to competition. But at the same
time, the committee felt the need to exercise caution as any failure on the part of new players
could ruin the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum capital requirement of Rs.100 crores.

The committee felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body- The
Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. The other decision taken simultaneously to
provide the supporting systems to the insurance sector and in particular the life insurance
companies was the launch of the IRDA online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their products.

PRESENT SCENARIO

The Government of India liberalized the insurance sector in March 2000 with the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign
partners in an insurance company. There is a proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in
India and this may also include restructuring and revitalizing of the public sector companies. In
the private sector 12 life insurance and 8 general insurance companies have been registered. A
host of private Insurance companies operating in both life and non-life segments have started
selling their insurance policies since 2001.

QUICK FACTS

 Second largest mobilize of savings after banks

 Rs 400000 crore of assets under management
 Rs 40000 crore invested in infrastructures
 Number of policies in force -20 crores
 Employees – 200000
DISTRIBUTIONAL CHANNEL OF HDFC STANDARD LIFE

Place in terms of distribution channel is very important in marketing insurance products. Volume
of business generated depends on the reach of its distribution channel. The core product of
insurance companies is best sold through personal selling with customized offerings. Financial
consultants do this. A financial consultant is the one who acts on behalf of the company. He/She
represents the company to the clients.

COMPANY

FINANCIAL CONSULTANT

I
I
I
CLIENT

The other distribution channels like Internet, advertising, telemarketing etc. can be used to
provide supplementary services to customers. Nevertheless, some innovative changes have been
taking place in distribution of insurance products.

The established players are already having a deep penetration of distribution channels. New
players have to be innovative in designing their distribution channel in order to sustain
themselves in the competition. Some insurance companies have tied up with NGOs and co-
operatives to promote their products while some have tied up with employers. Work site
marketing promotion involves an understanding between insurance company and the employer,
wherein the employees are insured with the company.

Combination of Distribution Channel

At present HDFC Standard Life mainly utilize a combination of following distribution channels.

 Corporate agents
 Personal selling through financial consultants

Corporate Agents

It is a cross selling type of channel. Insurance companies’ tie-up with business houses in other
industries to sell insurance products either to their employees or to their customers.

During the past few years insurance industry has witnessed a number of such strategic tie-ups
and alliances. Corporate agents have become a major force to reckon with in distributing
insurance products
RECRUITMENT OF FINANCIAL CONSULTANTS (FC) IN
HDFC STANDARD LIFE

This is a good business opportunity offered by HDFC Standard Life to become a business
partner and earn a good amount of money.

Business description

Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial
Consultant and help analyze your customer’s financial needs, provide customized financial
solutions to each one and conduct reviews on a regular basis to keep your customers on track.
Along with being a great career move you get associated with HDFC Standard Life Insurance,
India’s Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer
you unmatched support with various training programmes to help you excel in your endeavor. A
great career move in every way Zero investment, there is no start-up capital. You can work full-
time or part-time, depending on your convenience Sunrise industry Support every step of the
way At HDFC Standard Life, training is an inherent element of our support system - at no extra
cost - for our new Financial Consultants.

EXCELLENT OPPORTUNITY

Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding career.

Flexible work timings – You can work whenever you like. You can work full-time or part-
time, depending on your convenience. However, the time you invest will determine your success.

Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or
Working Professionals.

Zero Investment - There is no start-up capital required. Be your own boss with flexible
working environment, unlimited earning potential and opportunities to be part of a world class
sales team.

Attractive Remuneration - Company offers excellent commissions, award and rewards for
the performers. You have unlimited earning potential. Commission structure is pretty handsome
and is 15-40% and renewal commission of 5% second year onwards till the policy is in force.

Certificate by IRDA- You will get world class training free of cost and certification by
Insurance Regulatory Development Authority.

TRAINING
Perfects your knowledge about the insurance industry as well as our products.

IRDA Training
Prepares you for your career as a Financial Consultant and enables you to pass the IRDA
examination easily.

Disha Training
Hones your selling skills, enables you to understand customer needs and provide need-based
insurance solutions.

Advanced Training
Upgrades your capability and knowledge through sophisticated training programs customised for
the changing world of financial products and markets.

Desired Profile:
 Age: 18 Yrs to 65 Yrs
 Education: Intermediate or more
 Experience: Not Mandatory

Documents Required:
 8 photograph
 Age proof (passport, Birth certificate, College Leaving Certificate, Driving License)
 Address proof
 Education proof
 Copy of PAN Card
 Dually Signed Cancelled Cheque of self
 A candidate needs to bring a DD of Rs. 925/- in case of offline
training and Rs.825 in case of online training towards HDFC SLIC
 Type of Job: Full Time or Part Time

Job Description for Financial consultants

Pre sales role

 Identifying prospective clients.

 Meeting prospective clients.
 Understanding the need of the client.
 Presenting solutions to client.
 Closing sales.

Post sales role

 Taking 1-2 references from the client
 Providing timely updates to the client for maintaining lifelong relationship.

Benefits to FCs
Financial Benefits:
Commission on issuance of every policy. Commission directly credited to bank account of FCs
within 15 days. These commission varies from 7.5-40% according to plan.

BASIC COMMISSION
First year Commission payable on regular premium conventional policies issued on or after 21st
march 2007

RENEWAL COMMISSION:
Name of the plan 1st year
commission
Endowment Assurance plan 40%
Money Back plan 40%
Children’s plan 40%
Term Assurance plan 25% Renewal commission would be paid from the 2nd year onwards
on regular premium policies. Renewal commission is not payable on single premium plans.
Name of the plan Renewal commission 2nd
year onwards
Endowment Assurance plan 5%
Money Back Plan 5%
Children’s plan 5%
Lone cover Term Assurance Plan 5%
Term Assurance plan 5%
Personal Pension Plan 2%

BONUS COMMISSION
Bonus commission would be payable on the first year premium received and adjusted on the
regular premium policies Lone cover Term Assurance plan 25%
Personal Pension Plan 7.5%
following plans,
1.Endowment Assurance Plan
2.Money Back Plan
3.Children’s Plan
4.Term Assurance Plan
5.Lone Cover Term Assurance Plan

Bonus commission is not payable on the single premium plans and on the policies issued under
the Personal Pension Plan and all Unit Linked Plans. Bonus commission rate would depend on
financial consultant crossing the minimum RNEP(Received Net Effective Premium) within one
year. Period RNEP Bonus commission % of the 1st year
Premium received In one year
1,00,000 5%
1,50,000 10%
2,25,000 15%

REWARDS & RECOGNITION

  STAR – Converted premium 2 Lacs
 Silver Medal-Worth Rs 5200(approx)
 RISING STAR – Converted premium of 5 Lacs
 Gold Medal-Worth Rs 13,000(approx)
 MILLIONAIRE STAR – Converted premium of 10 Lacs
 Gold Medal-Worth Rs 25,000(approx)
 GLOBAL STAR – Converted premium of 24 Lacs
 Gold Medal-Worth Rs 60,000(approx)

Extra Payouts for STAR Performers

Within 30 days of Licensing Consultant can become Star Performers Club Status Bronze Silver
Gold Centurion Benefits 1%max Rs.5999
2.5%,max
Rs.37499
5%,no upper
limit
Graded-
4.5%to8.5%
Additional status
retention Bonus
0.50% 1.00% 1.50%

MONTHLY & QUARTERLY CONTESTS

There are various Sales linked monthly & quarterly contests occur in which FCs has opportunity
to gain something. Like:

 Gift Vouchers
 Home Appliances
 Two-Wheelers
 Gold/Diamonds Jewelry
 Foreign Trips
 Mobile Phones
 Laptops
 Cars etc.

OTHER BENEFITS

 On field support- Joint fieldwork with respective SDM/BDM.

 Training support – Various training modules to enhance your sales skills, interpersonal
skills etc.
  Marketing support – Consumer Contact Programs. Availability of office infrastructure for
tele calling, quotations, benefits illustration etc. Consultant corner to access illustration,
sales done and contest updates etc.
 Personal email id.

MARKETING STRATEGIE
 MARKET CONDITION OF PRODUCT IN DELHI & NCR
REGION
When it comes to study the market condition of HDFC Standard Life Insurance, it is quite easy
to see that there is good demand for products, but the sale of Ulip products are very good. The
market share is about 65% with compare to their competitor.

REASON FOR THEIR GOOD CONDITION:

1. Consultants hold on the market

When it comes for the case of market, there is a clear and complete hold of HDFC SLIC
Consultants.

2.Quality
HDFC SLIC provides good quality of products, which is praised by most of the consumers. The
reason for 65% of the market cover by HDFC Standard Life Insurance is because of quality of
products.

3.Demand
Demand for the product of HDFC Standard life is very high in the societies.

4.Supply
Supply of product is also good, but in capturing whole market it take some time.

SUPERIOR HIGH QUALITY

PRODUCT MANAGEMENT
 GROWTH &
EXTENSIVE PROSPERITYOF STRONG
TRAINING THE FCS AT REPUTATION
HDFCSL

EXCELLENT ATTRACTIVE
CUSTOMER PAYMENTS &
BENEFITS

Diagram showing the prospect for growth and prosperity of financial

consultants (FCS) at HDFC Standard Life
THE COMPANY AND ITS PRODUCT LINE:-

COMPETITOR BY PRODUCT

FINANCIAL POSITION OF HDFC SLIC IN FY 2007-08

HDFC Standard Life, one of the leading private life insurance Companies in India declared its
annual results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-
on-year growth of 63%. The growth was primarily driven by the success of the
company's initiative on structured sales processes based on customer needs and their
assessments.

Highlights of Financial Year 2007-08

New Business Premium Income up by 63% to Rs. 2,685 crores. Total
Premium Income is up by 70% at Rs 4,859 crores as against Rs. 2,856
crores in FY2006-07
Alternate Channels including banc assurance has recorded an
impressive growth of over 63% to contribute 41% to the Effective
Premium Income (EPI).
Group business funds under management have increased to Rs.
959 crores, registering a growth of83% over FY2006-07
The average premium has increased to Rs. 33,000.
Company products and services are now available in 726 cities and
towns across the country. Strength of Financial Consultants has
increased to 1,45,000

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 analyse
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.
Your needs
Save for a home and wedding
Tax Planning
Save for Golden years

STAGE 2
Just Married

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 don’t come in the way of shaping your dreams.

Your 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 future
cost of securing your child’s dream. You will want life to go on for your loved ones, and having
enough life insurance is a way to help ensure that.

Your needs
Provide for children’s education
Safeguarding family against loan liabilities
Savings for post-retirement

STAGE 4

Married With Grown Up Children

This is a stage when you have a well established career and draw a decent income. As your
children are growing, so are your expenses. You may also have to spend on maintaining the
house, for instance renovating the house, replacing old furniture, etc.
Your Needs

 Child’s higher education / marriage – Your main goal, at this stage, is to fund your
child’s higher education. With your children’s marriages around the corner, you may
want to rearrange your investment plan to fund these joyous events.
 Retirement planning – Retirement seems to be on the horizon, so planning for your
golden years is a priority.
 Health contingencies –Old age brings with itself a wide range of health issues. You
would surely like to be well equipped to face any eventuality

STAGE 5

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.

Your needs
Provide for regular income post retirement
Immediate Tax benefits
Lead a secure, independent and comfortable life style in your retirement
years
FEATURES OF THE PRODUCT & BENIFIT
HDFC Standard Life: A good cover
The opening up of life insurance has given finally given a level-playing field
to the private sector.
A. N. Shan hag, February 19, 2002
Competition in the market always proves favorable to the consumer. So it is in the case of life
insurance. After what seems like almost an eon, finally the doors of the life insurance sector were
thrown open to the private sector players last year. The Finance Act, 2001 has thankfully cleared
quite a lot of cobwebs giving a level-playing field to both the sectors. Notable amongst the new
entrants is HDFC Standard Life Insurance, a joint venture between the global experience of
Standard Life of UK and our own HDFC.
Standard Life, founded in 1825 is amongst the forerunners of the insurance industry worldwide,
having a presence not only in the UK but also Ireland, Spain, Germany, Austria and Canada.
Voted as the 'company of the decade', Standard Life manages assets over US$ 119 billion.

Standard Life, founded in 1825 is amongst the forerunners of the insurance industry worldwide,
having a presence not only in the UK but also Ireland, Spain, Germany, Austria and Canada.
Voted as the 'company of the decade', Standard Life manages assets over US$ 119 billion. HDFC
does not need any formal introduction, so strong is its brand already. After having a significant
presence in the housing finance, banking and MF industries, this JV marks its foray into the life
insurance sector. Private sector players would only be too aware that this is the proverbial first
step of the thousand-mile journey that lies up ahead. Contending for a piece of market share with
a Goliath that LIC is, will not be an easy task unless they offer qualitative and innovative
products at an affordable price. That they would be pulling out all the stops to attract customers
is not in doubt. Hence, this is as good a time as any to pay attention and see what is on display.

The strategy
Too many options simply confuse the users whereas too few will surely turn them away. HDFC
Standard Life has thankfully introduced products with basic premiums serving specific needs of
all. Most products have some additional optional value adding benefits at marginal additional
premiums. The proponent is free to choose any of the basic products along with none or some of
the options as per his needs. Before examining the base products, let us see the options

Accidental Death Benefit (ADB)

ADB provides an additional amount equal to the basic sum assured (SA) in case of the death of
the policyholder due to an accident, within 90 days of the accident.

Critical Illness (CI) Benefit

CI provides an additional amount equal to the SA on diagnosis of the any one of the 6 specified
critical illnesses --- cancer, coronary artery bypass graft surgery, heart attack, kidney/renal
failure, major organ transplant (as recipient) and stroke. The sum assured is payable if the policy
holder survives for 30 days after the date of the claim.

Double Sum Assured (DSA) Benefit

DSA provides an additional amount equivalent to the basic SA in case of the death of the
policyholder.

Waiver of Premium (WOP) Benefit

WOP basically waives the premium in case the policyholder becomes totally disabled. However,
the waiver is applicable only during the period of the disability.

Accelerated Sum Assured (ASA)

Upon diagnosis of any of the specified six critical illnesses, ASA provides an amount equal to
the amount payable on death.These options must be selected at the outset while choosing the
product.

Now the base.

Single Premium Bond This is basically a hybrid of insurance and investment. The life cover is
quite low and therefore it functions almost like a deep discount bond. For a single upfront
premium (read investment), the policy pays a lump sum (read maturity value) and its tenure of
10, 15, 20 years or more at 5-year intervals. A compound revisionary bonus is declared every
year, which would be added to the policy upon its anniversary. The future bonuses though are
not guaranteed and are dependent upon the company's experience and the conditions prevalent in
the economy. The minimum age for buying the policy is 18 years, the maximum being 70. The
minimum SA is fixed at Rs. 25,000, the maximum being Rs. 5,00,000. Normally, a policy
acquires a paid up value (and the related surrender value) after premiums for 3 years are paid but
in this case the holding period is specified to be just 6 months --- Excellent liquidity indeed!

Term Assurance Plan

The SA is payable in the case of the death of the policyholder during the term but on survival,
there are no maturity benefits. Consequently, the premium rates are absolutely the lowest. This is
insurance in its purest form --- highest cover at lowest cost. There was a crying need for easy
availability of this product. HDFC Standard Life deserves kudos to have catered to this need.
Amongst the optional benefits listed above, ADB, CI and ASA are available for this plan.

Money Back Plan

This plan pays periodic cash lump sums during the tenure of the policy. The lump sums,
essentially a proportion of the basic SA are paid at 5-year intervals. On survival, the basic SA
plus bonus less the cash lump sums paid earlier are provided. However, in the case of the demise
of the policyholder, the basic SA plus any bonus is provided to the family. This would be over
and above any earlier payouts. The schedule of cash lump sums as a percentage of the basic SA
is detailed in the table. Moreover, CI, DSA, ADB and WOP can be opted for if so desired.
Endowment Assurance Plan
As is normal with all endowments, on the death of the life assured during the term, the
beneficiary will get the SA. On survival, the policyholder gets the SA. From amongst the
optional benefits, CI, DSA, ADB and the WOP benefit are available along with this plan. The
indicative premiums for an SA of Rs. 1 lakh for a male life assured for a period of 20 years are
detailed in the table.

Loan Cover Term Assurance

This is a unique product meant as a safety net in case one has taken a loan to buy a house. It is
designed to help the family repay the outstanding loan in the case of the death of the
breadwinner. For starters, it provides a lump sum on the death of the life assured during the term
of the plan. The difference in this case is that the lump sum is a decreasing percentage of the
initial SA. As the loan decreases, as per its payment schedule, the cover under the policy
decreases as per its own schedule. There is a choice of paying the premium in yearly, half-yearly
or quarterly modes or even a single one time premium is payable. Amongst the optional benefits,
ASA is available along with this plan.

Group Term Insurance (GTI)

HDFC Standard Life also offers GTI, meant essentially for employees of an organisation. GTI is
extremely convenient for an employer as he can take insurance for all or certain categories of
employees. All members of a group, subject to some basic conditions are eligible

PRODUCTS

GTI is used basically to provide life insurance as part of the employee benefits. It can also cover
any housing or vehicle loan given by the employer to the employee. To sum a wise man had said
that the time to mend the roof is when the sun is shining. This is applicable to life insurance too.
Today as the breadwinner you are able to maintain a decent standard of living for yourself and
your family. If you want enough bread for the family even after the death of the breadwinner,
you should look at the Single Premium Bond. In other cases, life insurance is an absolute
necessity. Have a look at other products
SOCIAL PRODUCTS:

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’s beneficiaries to help meet some of
the immediate financial needs following their loss.

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.

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
ADVERTISEMENT AND SALES PROMOTION
”
Film opens in the compound of a
house. Father is checking something
inside the bonnet of an old small car.
His daughter, around 27-28 years old,
Daughter: “Dad”. Father: “Bolo”
Daughter: “Nayi car lene mein hee
bhalaai hai.”
Dad nods in agreement without
is working on a lap top next to him looking up. Dad: “Hmmm…”

Father looks at her and says . Dad doesn’t know what to say as
emotionally. he looks at the cheque.
Dad: “Car badi ho gayi, aur beti Daughter pleads: “Please…dad”
bhi.”
Daughter smiles with pride

Mother enters with tea. She

senses something serious and Super: Unit Linked savings plans
questions them. MVO: Unit Linked Savings Plans
Mother: “Aree Kya hua?” from HDFC Standard Life
zimmedari nibhao, Aaj bhi kal bhi ”

RESEARCH METHODOLOGY

Research: - is a process of collecting, analyzing, interpreting and summarizing in a significant

manner for the purpose of framing out necessary conclusion and findings of data perceived and
formulated for deriving out the meaningful information. To carry our research necessary
telephonic calls needed to be done, suitable appointments were to be fixed and therefore market
survey is to be followed.
Objective of training: - To understand life insurance and recruitment of capable life
insurance advisors for growth prospects.

Process: Methodology or process involving in the Research followed during the course of
summer training is as follows: -

a) Collection of data: - This is an important aspect in formulating the objective of research

process where the data is collected via two process: -
i) Primary Sources and ii) Secondary sources

i) Primary sources: - Where the data is collected primarily by interviewing and personal
observation and is original in nature and accurate to the considerable extent

ii) Secondary sources: -

Where the data is obtained from some published and printed sources such as newspaper,
magazines, websites and so on.

b) Analyzing of collected data : -

The data collected through market survey and published sources is then processed to obtained
necessary inferences and findings for the purpose of achieving the objective as well as to derive
necessary conclusion. A considerable skill and knowledge is involved in analyzing the data for
the purpose of interpreting thereof.

c) Interpreting of data : -
It is the significant step where the data collected and analyzed is interpreted in the forms of
graphs and figures is depicted in the report called Project report.

d) Summarizing of data : -
Thereby necessary summary is prepared which is essential in the project report of the summer
training being done under an organization.
 SWOT ANALYSIS

STRENGTHS
1. HDFC Standard life insurance offers a range of individual and group insurance solutions.
2. HDFC Standard Life has the financial expertise required to manage your long-term
investments safely and efficiently.

3. The company has covered over 8,77,000 lives year ending March 31, 2007
4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year for High service standards

5. Life insurance industry is a rapid growing and a nobler service

industry.

WEAKNESSES
1. LIC is prevalent and sustains even today a major source of Population

2. Low number of offices and network and number of life insurance agents.

3. Lack of knowledge and expertise

 OPPORTUNITIES
1. Life insurance has captured its mere15 – 20% growth therefore a wide open untapped market
is open to the company to develop, grow and measure its success.

2. Still the numbers of companies are few and company has every capabilities to grow and
forward its performance areas to the widest

THREATS

1. People are hesitant to invest and put their hard earned money to the private life insurance
company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to surmount the

people of India despite lots of flaws and development and liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and securities also
pose problems and threats to the working of the life insurance sector.

4. Illiteracy and unemployment also pose threat

5. Rising real estate industry also pose threat as people are investing a bulk of their money over
to that industry
AREAS OF OPERATION

Helping Indians experience the joy of home ownership. The road to success is a tough and
challenging journey in the dark where only obstacles light the path. However, success on a
terrain like this is not without a solution. As we found out nearly three decades ago, in 1977, the
solution for success is customer satisfaction. All you need is the courage to innovate, the skill to
understand your clientele and the desire to give them your best. Today, nearly three million
satisfied customers whose dream we helped realize, stand testimony to our success. Our
objective, from the beginning, has been to enhance residential housing stock and promote home
ownership. Now, our offerings range from hassle-free home loans and deposit products, to
property related services and a training facility. We also offer specialized financial services to
our customer base through partnerships with some of the best financial institutions worldwide.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to setup a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995. HDFC Mutual Fund has been one of the best performing mutual funds in the
last few years. HDFC Asset Management Company Limited (AMC) functions as an Asset
Management company for the HDFC mutual fund.

AMC is a joint venture between housing finance giant HDFC and British investment firm
Standard Life Investments Limited. It conducts the operations of the Mutual Fund and manages
assets of the schemes, including the schemes launched from time to time. As of Aug 2006, the
fund has assets of Rs.25,892 crores under management. IN 2003, following a decision by the
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, to divest its asset
management business in India, AMC had entered into an agreement with ZIC to acquire the asset
management business. Consequently, all the schemes of Zurich Mutual Fund in India had been
transferred to HDFC mutual fund and renamed as HDFC schemes. Here is a list of mutual funds
of HDFC which includes Equity Funds, Balanced Funds and Debt Funds.

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan
Partners and their associates, is a leading stock broking company in the country, serving a
diverse customer base of institutional and retail investors.
HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and
derivatives in NSE. Our website will support you with the highest standards of service,
convenience and hassle-free trading tools. Our research team tracks the economy, industries and
companies to provide you the latest information and analysis. Our content offers financial
information, analysis, investment guidance, news & views, and is designed to meet the
requirements of everyone from a beginner to a savvy and well-informed trader. HDFC Realty is
a wholly owned subsidiary of HDFC. We have assisted individuals in acquiring homes valued at
5000 million rupees. HDFC is a pioneer housing finance institution in India and with over 30
years in operations has provided finance to over a million families in India. We are a team of real
estate professionals facilitating Buying, Selling or Leasing of Residential / Commercial property.
At HDFC Realty, we provide personalized attention to the individuals and corporate in their
process of identifying properties. From understanding the requirement to organizing the site
visits to completion of transaction, we make every effort to make the process of acquiring a
property, hassle free and convenient.
MARKET SHARE

HDFC Limited.
 HDFC is India’s leading housing finance institution and has helped build more
than 23,00,000 houses since its incorporation in 1977.
 In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
 As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
 Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
 Stable and experienced management
 High service standards
 Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
 Presented the ‘Dream Home’ award for the best housing finance provider in
 2004 at the third Annual Outlook Money Awards.

STANDARD LIFE GROUP (STANDARD LIFE PLC AND ITS SUBSIDIARIES)

 The Standard Life group has been looking after the financial needs of customers for over
180 years
 It currently has a customer base of around 7 million people who rely on the company for
their insurance, pension, investment, banking and health-care needs
 Its investment manager currently administers £125 billion in assets
 It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong'
with a rating of A+ and as 'good' with a rating of A1 by Moody's
 Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the
Money Marketing Awards, and it was voted a 5 star life and pensions provider at the
Financial Adviser Service Awards for the last 10 years running . The '5 Star' accolade has
also been awarded to Standard Life Investments for the last 10 years, and to Standard
Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible
Mortgage Lender' at the Mortgage Magazine Awards in 2006

OBJECTIVE
 Focus on the productivity of each consultant, corporate or individual,
while stressing on the quality of proposals
 Quick roll out of Products
 Efficiency of Operations
 Meet Social & Rural sector obligations
MAJOR COMPETITORS OF HDFC STANDARD LIFE

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the
message of life insurance in the country and mobilise people’s savings for nation-building
activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,
Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United
Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-
India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,
Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC
recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy
average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per
cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to five million
people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC's claims
settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of
40 per cent. Compounded annual growth rate for Life insurance business has been 19.22 per cent
per annum.
General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known as
General Insurance Corporation of India (GIC) was formed by the Central Government in
November 1972. With effect from 1 January 1973 the erstwhile Indian and foreign insurers
which were operating in the country prior to nationalization, were grouped into four operating
companies, namely, (i) National Insurance Company Limited; (ii) New India Assurance
Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited. (However, with effect from Dec'2000, these subsidiaries have been delinked
from the parent company and made as independent insurance companies). All the above four
subsidiaries of GIC operate all over the country competing with one another and underwriting
various classes of general insurance business except for aviation insurance of national airlines
and crop insurance which is handled by the GIC. Besides the domestic market, the industry is
presently operating in 17 countries directly through branches or agencies and in 14 countries
through subsidiary and associate companies.

LIFE INSURANCE COMPANIES

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together two large
forces - Max India Limited, a multi-business corporate, together with New York Life
International, a global expert in life insurance. With their various Products and Riders, there are
more than 400 product combinations to choose from. They have a national presence with a
network of 57 offices in 37 cities across India.

+
ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The company has a network of about
56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra
Bank Ltd. (KMBL) and Old Mutual plc.

Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.
 Tata AIG Life Insurance Company Ltd.
 SBI Life Insurance Company Limited
 ING Vysya Life Insurance Company Private Limited
 Allianz Bajaj Life Insurance Company Ltd.
 MetLife India Insurance Company Pvt. Ltd.
 AMP SANMAR Assurance Company Ltd.
 Dabur CGU Life Insurance Company Pvt. Ltd.
GENERAL INSURANCE

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance
Limited started its operations from March 2001. The company is Head Quartered at Chennai, and
has two Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited
and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj
Allianz General Insurance received the Insurance Regulatory and Development Authority
(IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business
(including Health Insurance business) in India. The Company has an authorized and paid up
capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG
and Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank
Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's
second largest bank, while Fairfax Financial Holdings is a diversified financial corporate
engaged in general insurance, reinsurance, insurance claims management and investment
management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is
one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in August
2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the
Murugappa Group & Mitsui Sumitomo. Chola-MS commenced operations in October 2002 and
has issued more than 1.4 lakh policies in its first calendar year of operations. The company has a
pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore,
Mumbai, Pune, Indore, Ahmadabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata
Group and American International Group, Inc. (AIG). Tata AIG combines the strength and
integrity of the Tata Group with AIG's international expertise and financial strength. The Tata
Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per
cent stake. Tata AIG General Insurance Company, which started its operations in India on
January 22, 2001, offers the complete range of insurance for automobile, home, personal
accident, travel, energy, marine, property and casualty, as well as several specialized financial
lines.

6. Reliance General Insurance Company Limited.

7. IFFCO Tokyo General Insurance Co. Ltd
8. Export Credit Guarantee Corporation Ltd.
9. HDFC-Chubb General Insurance Co. Ltd.
 CONCLUSION

Summer training is a best example for a trainee to learn about the company working, corporate
culture under which is operating the functions. HDFC standard life insurance is a life insurance
company under which I gained a significant knowledge with respect to life insurance, its
importance and applicability as well as undertook the task to recruit capable life insurance
advisors which is conducive for the company to grow with more prosperity. What I taught in the
management institute utilized them fruitfully leading to the best advantage to the company and to
the best experience for mine. At far I can conclude that life insurance is a noble service which is
very important for every citizen to learn and realize its importance At far I can conclude that life
insurance is a noble service which is very important for every citizen to learn and realize its
importance because this is the only source which can remain the status where one is with the
family bread earner and ever when he is not. With the growing financial sector I would like to
opt this industry for my future career advancement and as an opportunity to service this
industry.
 RECOMMENDATIONS

Following are suggestions made for the benefits and augmentation of the sound working of the
company – HDFC Standard life insurance:

1. Need to train and develop life insurance agents with more comprehensive knowledge and
skills to counter every queries of the customer.

2. It is suggested that company should not left any stone unturned towards sound advertisement
and promotional measures on every section whether it is printed, media or air via radio.

3. It is also suggested that skilled management graduates need to be places on sales and
marketing of financial services who can render their best ideas for the accomplishment of the
company goals and objectives to the best extent

4. Also, care need to be taken that every customer’s grievance should be met with delight
whether before purchase or after sales.

5. There should be an expansion measure for more offices and location of more centre for
offices of the company be established sop that company may grow its network.

6. there should more advanced measures are required to develop to capture the needs of customer
so that they can be inspire and motivated to invest in the life insurance products being provided
by the HDFC Standard life insurance.

7. Life insurance Products should be made flexible so as to suit every section of society.