INTRODUCTION

Insurance is commerce. Insurance product is a financial contract entered into by parties with a define consensus of mind. It provides financial protection against unexpected events. When we buy insurance, effectively a portion of risk is transferred to the insurer. This protection comes at a price, but its a function of what we might otherwise find ourselves burdened with. Whatever stage of life we are at, chances are, and we need insurance.

Definition:
Insurance can be define as a contract by which insurance agrees to pay the insured a compensation for specified damage loss or injury suffered in exchange for periodic payment called premium Insurance cannot prevent the happening of the event; it can protect a person from the financial losses he may suffer after the happening of the event. Therefore, insurance if aimed at compensating the financial loss suffered an insured event.

Classification of insurance:
Insurance is basically classified into two categories. (1) (2) Life Insurance General Insurance

LIFE INSURANCE
This is provided for the payment of sum money on the death of the insured person due to natural causes or on the expiry of a certain number of years if the insured person is then alive. Death and life neither of them can be compensated. Life insurance aims to compensate the Income Earning Capacity of the person.

Events covered in Life Insurance:

In Life Insurance, income earning capacity of the person is covered. The loss of the income earning capacity can be on the happening of the following events when the life is assured. 1. 2. 3. 4. Death. Sickness (critical illness). Accident (Death or permanent disability due to accident). Retirement.

Objectives and advantages of life insurance: 1) Protection against Risk of Untimely Death:
o Life insurance is a product, with offers protection against the risk of Death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available.

2) Protection during old age:

o Life insurance can also be used as a means of saving ones future. There are a number of life insurance policies which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for the old age.

3) Forced savings:
o Payment of life insurance premiums is compulsory and becomes a habit. Saving in other scheme can be easily withdrawn and may be used for less worthy purpose. Termination of a life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

4) Educational Requirement and Charity:

o The object of insurance may be to serve as a security to education funds in respect of loans advanced for educational purpose or to provide donations to charitable institution like hospital and school.

5) Nomination and Assignment:

o The life insured can name the person or person whom the policy money would be payable in the event of his death the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect the extent of any interest in the policy retained by the insured.

6) Marketability and Suitability for Borrowing:

o After 3 years, if the policy holder finds that he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life insured policy is accepted as a security for a commercial loan.

7) Loan from the Insurance Company:

o A policy holder can take a loan from his insurance company against the security of his life insurance policy provided the term of the terms of his policy allow such a loan can be taken usually after a period of 3 years from commencement of the policy and is a percentage of its surrender value.

8) Investment Option:
o The unit link products gives comprehensive insurance solution that cater to an individuals need of earning potentially high return as well as stay for life. Thus there is an option to invest money in the products that combine the best of insurance and investment. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio.

9) Tax Benefits:
o The Indian income tax act provides tax concessions to the policy holder both on payment of premium and on the maturity amount. Under sec 88 the benefits on premium paid by an individual for life insurance policy on his own life/on the life of spouse children minor or major, including married daughters.

10) Protection to Wife and Children:

o Under sec 6 of the married womans property act if a married man takes a policy of the life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them, than it shall be deemed to be a trust for the benefit of his wife and children or any of them, according to the interest so expressed and shall not so long as any object of trust remains be subject to the controls of the husband or to his creditors or from part of his estate. An insurance policy taken by a married man in the above manner is ideal way to protect the interest of his wife and children, even after his untimely death.

General Insurance:
Insurance other than life fall under general insurance. It covers loss of every other physical or nonpossession. The loss may be due to fire, theft, accident etc. the general insurance is further classified into-

1) Fire insurance:
o It covers movable and immovable properly having monetary value. It covers the loss or damage to insured property by specific perils o for example: damage of property in manufacturing premises due to fire may result in total or partial stoppage of production process leading to loss of profits. Such loss of profit can be covered under loss insurance policy.

2) Marine Insurance:
o It is of the oldest branches of the insurance. It plays a significant role in both and internal and international trade. The insurers undertake to indemnify the insured against the losses occur during transit by rail, road, sea or air.

3) Miscellaneous Insurance:
o Insurance that takes other fire and marine is known as miscellaneous insurance. It is covered under the several classes of which motor insurance, burglary insurance, cattle and crop insurance are most important.

Differences between life insurance and Non life insurance (General Insurance)
Risk is certain in life insurance and non life insurance: Every person who is insured is likely to die, and the income earning capacity will be stopped by death. In non life insurance the risk is uncertain and the insured event may or may not result in the loss to the policy holder Life insurance is a long term contract while non life insurance contracts are one year contracts. Difficulty in determining value of human life in insurance. In non life insurance the value can be determined with much ease. Life insurance is not a strict contract of indemnity. Non life insurance contracts are in indemnity contracts.

Insurance as investment
Endowment plans are the best selling life insurance product in the country. This single fact says a lot about how most Indians who get investment plans to get their lives insured, save on tax build a retirement corpus and fund their childrens education, among other things. Endowment plans offers good value to novice investment and those with a low appetite for risk. They force the habit of regular saving and help to create funds for lives, many financial goals; and unlike with mutual funds on stocks, there is no risk of capital erosion. But there is a price you pay for such certainty; low returns.

Tax- benefits
One of the several reasons given to buy life insurance is to save on tax. Its true that there are extremely generous tax breaks to be avoided of life insurance,

Premiums
For the salaries, the rebate under section 88 of the income tax act is an effective way to lower tax rebates under this section, along with investments with other instruments like PPF and NSC. Note: if you claim a rebate on investment in insurance but withdraw from it within 2 years, the rebate claims will be deemed as tax payable, the amount of tax rebate that can claim under section 88 in a year on the income that year.

INDUSTRY PROFILE
History of insurance:
Insurance began as a way of reducing the risk of traders, as early as 5000 BC and 4500 BC in. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous. The first insurance company was formed in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Synods in and created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. Prior to, many insurance companies in the United States for their owners, in response to bills passed in 2001 and in 2003, the companies have been required to search their records for such policies.

General information:
Human have always sought securities. This quest for security was an important motivating force in the earliest formation of families, clans, tribes, and other groups. Indeed, groups have been the primary source both emotional and physical security since the beginning of humankind. They ensured a less volatile source of life necessities then that which ensures isolated human & families could provide and help their less fortunate members in the time of crises. Human today continue their quest to achieve security and reduce risk uncertainty. We still rely on group for financial stability. The group may be our employer, the government, or an insurance company, but concept is the same. In some ways however, we today are more vulnerable that our ancestors. The physical and economical securities formerly provided by the tribes or extended family diminished with industrialization. Our income dependent, wealth acquiring lifestyle renders and our families more vulnerable to environment and societal changes over which we have no control. Humans are exposed to many serious perils, such as property loss from fire or windstorm, and personal losses from incapacity and death. All through individual cannot predict or completely prevent such occurrences, they can provide for their financial effects.

 Encyclopedia of finance and banking defines insurance as the elimination of or protection against risk amenable to actual calculation, voidance or reduction of losses occurring through misfortunes such as death, fire, accident, tornado, shipwreck, etc. insurance is a contact between an insurer and insured where by the insurer identifies the insured against loss due to specific risks such as from fire, storm and death. Insurance contracts require an agreement, considerations, capacity, legality, compliance with the status of frauds and delivery. Insurance is an integral part of most enterprises, risk management program. Insurance does not prevent losses, it substitutes a small certain loss (premium) for a possible or contingent large loss. The insured is indemnified for the amount of loss, for the insured amount, or for the face of his policy, in return for payment of periodic premiums.

The principle kinds of insurance are as follows:

Life-term, ordinary, endowment, limited payment, group industrial and annuities, with a variety of combinations of the four basic forms. Fire & marine-fire, ocean marine, motor vehicle, inland navigation, and transportation, tornado and windstorm, earthquake, riot and civil commotion, explosion rain, hale, flood, aircraft, etc. Causality and surety -automobile liability, liability other than automobile workers, compensation, fidelity and surety, burglary and theft, automobile property damage, accident in health, steam boiler, machinery, plate glass, etc. o All mutual and legal reserves life insurance companies provide for a participation in dividends by all policy holders. In this way the cost of insurance to the insured is reduced.

Four classes of insurance business:

Life insurance Fire insurance Marine insurance Miscellaneous insurance.

Brief history of insurance sector in India:

The insurance sector in India has come full circle from being open competitive market to nationalization and back to liberalized market again. Tracing the developments in India, insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. 1818 Oriental insurance company was established. 1870 Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912 Indian life insurance companies act 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 business. 1938 Earlier legislation consol dated and amended to by the insurance act with the objective of protecting the interest of insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government were nationalized.

India at glance
Economy: India is 5th largest economy in the world in terms of purchase. GDP Growth rate: over 6% per year on an average for the last decade. Savings rate: around 26% of GDP Estimated middle class population: 300 million Insured population: 70 million

India has an enormous middle class that can afford to buy life, health and disability and pens on plan products. The level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per capita life premium.

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 recommended its future direct on. The Malhotra committee was set up with the objective of complimenting the reforms initiated in the financial sector. Recommendation included in the report submitted by the committee.

Structure
Government stake in the insurance companies to brought down to 50% Government should take over the wordings of GIC and its subsidiaries, so that these subsidiaries can act as independent companies. All the insurance companies should be given greater freedom to operate.

Competition
Private companies with minimum paid up capital of Rs. 1 billion should be allowed to enter the industry; no company should deal in both life and general insurance through single entity. Foreign companies may be allowed to enter the industry collaboration with domestic companies. Postal life insurance should be allowed to operate in rural areas Only one state level life insurance company should be allowed to operate in each state.

Regulatory body
The insurance act should be changed An insurance regulatory body should be set up. Life insurers transact life insurance business; general insurers transact the rest. No companies are permitted as per law.

Legislation (as on 1-4-2000)

Insurance is a federal subject in India; the primary legislation that deals with insurance business in India is; Insurance Act, 1938 and Insurance Regulatory & Development Authority Act, 1999

 Fire and miscellaneous insurance business are predominant motor and vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products.

Customer Protection
Insurance industry has ombudsmen in 12 cities. Each ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insurance amount is less than 20 Lakhs, in accordance with the ombudsmen scheme. Address can be obtained from the officers of LIC and other insurers.

LIFE INSURANCE COMPANIES IN INDIA

1. HDFC Standard Life Insurance Co. Ltd 2. Bajaj Allianz Life Insurance Company Limited 3. Birla Sun Life Insurance Co. Ltd 4. ICICI Prudential Life Insurance Co. Ltd. 5. ING Vysya Life Insurance Company Ltd. 6. Life Insurance Corporation of India 7. Max New York Life Insurance Co. Ltd 8. Met Life India Insurance Company Ltd. 9. Kotak Mahindra Old Mutual Life Insurance Limited 10. SBI Life Insurance Co. Ltd 11. Tata AIG Life Insurance Company Limited 12. Reliance Life Insurance Company Limited. 13. Aviva Life Insurance Co. India Pvt. Ltd. 14. Sahara India Life Insurance Co, Ltd. 15. Shriram Life Insurance Co, Ltd. 16. Bharti AXA Life Insurance Company Ltd. 17. Future Generali Life Insurance Company Ltd. 18. IDBI Fortis Life Insurance Company Ltd. 19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd 20. AEGON Religare Life Insurance Company Limited. 21. DLF Pramerica Life Insurance Co. Ltd. 22. Star Union Dai-ichi Life Insurance Comp. Ltd.

Joint venture
INDIAN COMPANY
Bajaj Birla HDFC ICICI ING Max Tata Bharti Future IDBI AEGON DLF Star Union Canara

FOREIGN COMPANY
Allianz Life Sun Life Standard Life Prudential Life Vysya Life New York Life AIG Life AXA Life Generali Life Fortis Life Religare Life Pramerica Life Dai-ichi Life HSBC Oriental Bank of Commerce Life

COMPANYS PROFILE
HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to increasing value to shareholders. HDFC is Indias 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. It entered into various sectors and offering services like banking, mutual funds etc, and with the privatization in insurance sector, it also entered into insurance mark.

Family companies:

About standard life:

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 Its business operates within six areas: UK Life & pensions, Bank, Healthcare, Investments, Canada and International.

The partnership:

HDFC and standard life insurance first came together for a possible joint venture, to enter life insurance market, in January 1995. It was clear from the outset both companies shared 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 HDF, 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 investment in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to moves the operation to the next level. Therefore in January 2000 an export team from the UK joined pocked team from HDFC to r\from the core project team, based in Mumbai. Around this time standard life purchased a further 5% stake in HDFC and 5% stake in HDFC Bank. In a further development standard life agreed to participates 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. Companys ambition from as far back as October 1995, was to be first private company to re-enter the life insurance market in India. On the 23 rd of October 2000, this ambition was realized when HDFC Standard Life Insurance was the only life company to be granted a certificate of registration. HDFC are the main shareholders HDFC Standard Life, with 74%while standard Life owns 26% Given Standard Lifes existing investment in the HDFC Group, this is the maximum investment under current regulations. HDFC and standard life have a long and 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 SLIC ORGANIZATION CHART:

Organization Structure

Chair Man

MD
Zonal Officer Regional Manager

RM

Alternative Chanel

Operation Channel

HR

TM
BM

TM
BM

Team Manager
Operation Manager

HR Executive

Assit B.M SDM

Chanel Executive

Existence in India

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 solution:
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, 2008 stood at Rs. 4,859cr and new business premium income stood at Rs. 2,685cr. The company has covered over 9,59,000 lives year ending March 31, 2008.

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

'The most obvious choice for all' Values

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be done this by offering life insurance and pension products. TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. INTEGRITY CUSTOMER CENTRIC PEOPLE CARE ONE FOR ALL AND ALL FOR ONE

TEAM WORK JOY AND SIMPLICITY

Accolades and Recognition

Best New Insurer Award from Outlook Money 2006. Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004 Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1 personal finance magazine.

Future:
HDFC has always been market-oriented and dynamic with respect to resource mobilization as wall its lending programmed. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, it hopes of capitalize on this loyal and satisfied client base for future growth. Internal systems have been development to be robust and agile, to account changes in the volatile external environment. HDFC has developed a network of institutional through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine and service.

OTHER MAJOR PLAYERS IN INSURANCE INDUSTRY

LIFE INSURANCE CORPORATION
Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our county, as they ought to be. What follows is an attempt to acquaint readers with some of the concept of life insurance, with special reference to LIC. It should, however, be clearly understood that the following narration is by no means an exhaustive description of terms and conditions of LIC policy or its benefits or privileges. For more details, please contact our branch or divisional office. An LIC it will be glad to help you choose the life insurance plan to meet your needs and render policy servicing.

ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture between ICICI bank, a premier financial powerhouse and prudential plc. A leading international financial service group headquartered in the United Kingdom. ICICI prudential was amongst the first private sector insurance company to being operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential equity base 74% and 26% stake respectively. In the period AprilDecember 2004, the company garnered Rs. Billion of new business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 345000 policies. The company has a network of over 50000 advisor; as well as 7 bank assurance tie-ups. Today, ICICI Prudential has emerged as the No -1 Private Life insured in the country. With a wide range of flexible products that meet the needs of the customer at every step in life.

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.

BAJAJ ALLIANZ: SHARED VISION

A household name in India teams up with a global conglomerate Bajaj Auto Ltd, the flagship company of the Rs. 8000 corers Bajaj group is the largest manufacturer of two- wheelers and three-wheelers in Indian and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image and locality identical with quality and customer focus. With over 15000 employees, the company is a Rs. 4000 crores auto giant. It is the largest 2/3 wheelers manufactured in India and the 4th in the world .AAA rated by crises, Bajaj auto has in a operation for over 55 years. It has joined hands with Allianz to provide the Indian consumer with a distance option in term of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd. Bajaj auto has following to offer Financial strength and stability to support the Insurance Business. A Strong brand-equity. A good market reputation as a world class organization. Adequate experience of running a large organization. A 10 million strong base of retail customers using Bajaj Products.

Why HDFC is better .?

1. Investment returns: investment returns and business growth provided by HDFC is validated by bajaj Capital report. HDFC pacify the need of invertors up to healthy level and make the strong relationship with them.

2. Financial Background and Experience: HDFC existing in the market since 1977. It has a very handsome experience in the field of finance because it completely involved in finance Sector only where as the others are running in many other field also like Reliance (Petroleum, Textile, Telecom etc.)

3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false selling and prohibits the false commitment to the customer.

4. Sales Force: Properly trend licensed and Educated People are the strength of the company. So that they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility: It makes the process faster and makes the customer delighted.

Work of financial consultant

The FC is the interface between the customer and insurance company. The agent should be able to accomplish the following service. Assessing and analyzing the clients risk profile. Finding the best product or products available in the market. Negotiating the best deal available. Continuity of service throughout the period of insurance.

PRODUCT PROFILE
Individual product:
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. In individual product, 5 plans are available. 1) Protection plans 2) Investment plans 3) Pension plans 4) Saving plans 5) Health plans

1) Protection Plans
o 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 a small price. Term Assurance Plan Loan Cover Term Assurance Plan

2) Investment Plans
o Our investment products are well suited to meet your long-term needs. Single Premium Whole Life Plan

3) Pension Plans
o Our Pension Plans help you secure your financial independence even after retirement. Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus

o Our Immediate Annuity plan will aid you in receiving income post retirement and securing you financial independence.

4) Savings Plans
o 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 Unit Linked Endowment Unit Linked Endowment Plus Money Back Plan Children's Plan Unit Linked Young star Unit Linked Young star Plus

5) Health Plans
o Our health plans provides you with timely support in case of any health related emergencies and helps you and your family to remain financially independent in difficult times Critical care plan Surqi care plan

Group Products:
1) 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

2) Social Product
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 members beneficiaries to help meet some of the immediate financial needs following their loss.

Other product:
Rural products Tax benefits

PRODUCT ANALYSIS:
Endowment Assurance Plan:
You have given your family the very best. And there is no reason why they shouldn't get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly built by you, in your absence? With our HDFC Endowment Assurance Plan, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity always. The HDFC Endowment Assurance Plan gives you: An ideal way to secure your long-term financial goals Valuable protection to your family by way of lump sum payment in case of your unfortunate demise within policy term Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date

Very flexible benefit options and payment options

Unit linked endowment assurance:

In this policy, the investment risk in investment portfolio is borne by the policy holder. You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Unit Linked Endowment plus II, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity, Always. The HDFC Unit Linked Endowment plus II gives: Valuable protection to your family in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fund value every year Flexible benefit combinations and premium payment options Flexible additional benefit options such as critical illness cover

Childrens plan:
As a parent, your priority is your child's future and being able to meet your child's dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you'll need when your child takes these important steps in life! Plan today to ensure a bright future for your child. Start building savings today with our HDFC Children's Plan. So that your child is able to lead a life of respect and dignity with a secured financial future The HDFC Children's Plan gives you: Invaluable financial support to your child A choice to customize an ideal plan for your child Multiple options for multiple benefits

Unit linked young star plan:

As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start building savings today with our HDFC Unit Linked Young Star Champion so that your child is able to lead a life of respect and dignity with a secured financial future. The HDFC Unit Linked Young Star Champion gives: Valuable protection to your child in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Bumper Addition to the fund value at maturity Flexible premium payment options No need to go for medicals. Just filling a Short Medical Questionnaire will do!

Money Back Plan:

You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? You can plan now to ensure that you have the necessary funds to meet your future financial needs. The HDFC Money Back Plan is a With Profit Plan that gives you: A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your long- term as well as shortterm financial goals. A lump sum payment on survival up to maturity date.

Valuable protection to your family by way of lump sum payment in case of your unfortunate
death within the policy term

Single premium whole life insurance plan:

The well-informed rightly said and proves how important investments are in todays date and age. The question that we all fear is What about the risks attached? HDFC Standard Life Insurance brings to you a safe investment plan that would take care of your savings and nurture your earnings HDFC Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited to meet your longterm investment needs. This participating plan offers you the following benefits: Whole of life plan aimed at providing long-term real growth of your money Single premium investment plan In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender

Term assurance plan:

The HDFC Term Assurance Plan is an insurance policy that is designed to help secure your family's financial needs. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death

Loan Cover Term Assurance Plan:

This Plan provides a lump sum on the unfortunate death of the life assured within the policy term. If you are taking a loan to buy a house for your family, this plan can help you ensure that life's uncertainties do not affect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death.

PRODUCT PORTFOLIO
HDFC offers products as per the life stages of the customers and their respective needs.

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.

LIFE STAGES & NEEDS IN THAT STAGES

STAGE 1: YOUNG & 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. NEEDS: o Save for Home & Wedding o Tax Planning o 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. NEEDS: o Planning for home / securing your home loan liability. o Save for vacation. o 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 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.

NEEDS: o Provide for children's education o Safeguarding family against loan liabilities o 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. NEEDS: o Provide for regular income post retirement o Immediate Tax benefits o Lead a secure, independent and comfortable life style in your retirement years.

Policies At A Glance

COMPARITIVE ADVANTAGE OVER COMPETITORS PRODUCT

I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies parent is insured and child in nominee or beneficiary, Both the policies contains same features, only additional rider is available in smart kid is income benefit rider (IBR), how this rider works? this rider comes in the picture when the parent expires or becomes permanent disable at that time this rider pay 10% of sum assurance to nominee, HDFC Youngster offers Insurance Cover up to 20 Times of Annual Premium. You may Pay Rs. 30000 per year & take Insurance Cover of Rs. 6 Lacs. You may take Critical Illness Rider in HDFC Youngster up to 65 years Age (as it Cheaper than other ULIPS). The returns from HDFC TaxSaver, HDFC LT Advantage fund are better than the returns from HDFC Standard Life Equity Fund. HDFC Standard ULIP Returns are over 70% in last 1 year. HDFC Youngster with Maximum Insurance Cover of Rs.3.6 Lacs

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 decent 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.

OPPORTUNTIIES
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 number 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.

LIFE INSURANCE FINANCIAL CONSULTANT

Eligibility for an Insurance Agent
Every person who has cleared higher secondary examination can become an Agent other than a minor or the person who is convicted in any court for crime or any legal proceedings. Men and women both can work as an Agent. A single person can be associated with other life insurance companies. A training program is there to train a person who wants to become an Agent. There is 50 Hrs. training program which can be done either with the physical appearance in the class room or the internet basis. In the classroom training the trainee has to be physically present in the training session. There are difference sessions of training program. A trainee can attend any session according to his comfort. The training period is of 7 days approx. If the trainee does not have enough time to devote in the classroom training, then there is another option left that is training on Internet. On the basis of Internet the trainee has provided a login number along with the password through which he/she operated his/her login and completed his/her training hours as convenient. Each and every hour pass on the net under his/her login head will be count on his account. The test for the training program is also on line. This is only procedure to be an Insurance Agent.

Scope of Insurance Agent

In the present scenario the living standard is becoming higher and higher every day. Every person who has a family to survive wants to provide his/her family each and every possible comfortable thing. He/ She wants his/her children to be a well dressed, to be higher qualified in a well recognized school, colleges, institutes and wants his/her children to go abroad for higher education. He wants to live a luxury life full of pleasure. To fulfill all of his/her needs he/she has to earn more and more. Any person can be on a job at a time or can be on a business cant fulfill his/her pleasure requirement. There is a source through which he/she can make money in a legal way that is insurance sector.

 Becoming an insurance Agent provides him/her the legal source by which he/she can earn money with his/her current status. It is the business in which you deal with you personal contacts and can gain extra income. This business needs low investment and not of much effort. Its all depend on your social contacts and your skills to convince people by helping them to suggest the product which suited them the most. As due to critical diseases, growing percentage of accident and fear of financial crisis everyone wants to secure his/her future. 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 an illegal source which is harmful for society as well as him/her. For the youngsters it provides great platform to prove them. On the basis of their performance they can be recruited as unit manager. Its recruitment procedure is very easy. A person with high educating and well experience can be recruited after a personal interview and group discussion. After the training program is completed the Insurance Agent has to appear for the pre-examination conducted by IRDA. As he/she clear the exam he provides a license, which is the proof of a legalized insurance Agent, which permits him/her to deal in his/her insurance business.

BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS FOLLOWS

Financial consultant, the right way to start career:
As a financial consultant the role will be to identify prospective customer. You will makes presentation, as to how you can help analyses their financial needs, provide customize financial solution to cater to their respective needs and conduct reviews on regular basis to keep customers on thank.

Easy way to start on career:

Zero investment: There is no start-up capital. Be an own boss with a flexible working environment, unlimited earning potential and the opportunity to be part of world class sales team.

Flexible work timings, part time or full time:

FCs can work whenever he\she likes and from wherever he\she likes, FCs can work full time depending on their convenience its like no other job however, the time.

Sunrise industry:
Life insurance in India has a huge potential for growth Statistics reveal that only 25% of the insurable population in India is insured and those insured are in need of still higher insurance cover. The over 100% growth displayed by private life insurers indicates this huge untapped potential.

Strong Partnership:
A powerful brand HDFC Standard Life Insurance. We were the first private life insurance company to be granted a license by IRDA. We have been rated by business world magazine. As Indians most respected private life insurance company 2004. We have grown over 130% in the last and more than 8 Lacs policy holder. HDFC standard life insurance has one of the highest brand recalls of around 80%.

PROFESSIONAL TRAINING PROGRAMS AND CONTINUOUS GUIDANCE

At HDFC standard training is an inherent element of our support system for FCs. Some of our training and support initiative are as follow.

IRDA Training:
o Online training of 50 hrs. Prepares for career as FCs and enables to pass the IRDA examination. After the IRDA license, first step towards a successful career as a FC.

Basic Training and Induction:

o Independence of work experience, this training will give perfect knowledge about the insurance industry along with comprehensive knowledge about the insurance along with comprehensive knowledge about HDFC SLIC Product.

Disha training:
o This is a professional sales skill program eased by us to one selling skills. Those programs enable to understand customer need and provide need based insurance solution. A huge step from an amateur to a true finance professional.

Advance Training:
o Once FC have settled down as a FC professional we will continuously upgrade capability and knowledge through sophisticated training program, fit for this dynamic world of financial products and markets.

UNMATCHED SUPPORT
Marketing activity support to make task easier. o Advertising and communication support throughout the year. o Customer friendly broachers and sales aid to help in selling insurance solutions to customers. o 24- Hours information support, to help track the performance and income.

ELIGIBILITY CRITERIA TO BECOME A FINANCIAL CONSULTANT

Minimum Eligibility Criteria (Any 3/5 Criteria required, first criteria being mandatory) o Age : 30 and Above o Married. o Education: Graduate or higher. o Has spent > 5 years in the city of current residence. o Income > 2 Lacs per annum. Pre-requisites required to become a Financial Consultant o Should undergo IRDA Training for 50 hrs. o Should pass the pre-recruitment exam conducted by Insurance Institute of India.

LICENSING PROCESS
Step 1: Registration Step 2: IRDA Training Step 3: IRDA Examination Step 1 - Registration Documentation Required for Acquiring a License Forms o Agency Application form o Form VA o Exam Form o Agreement Copy (All pages to be signed by the FC) o Know Your Customer ( KYC ) Addendum Supporting Personal Documents required o 9 Passport size photographs o Age Proof o Proof of Education o Proof of Identity o Proof of Residence o Cancellation cheque o PAN Card or PAN Application

o Fee : Rs. 925 /- ( Off Line ) o Fee : Rs. 825 /- ( On Line )

Step 2 IRDA Training All Candidates have to undergo and complete 50 hours of IRDA Training. Types of Training 1. Off Line (Class Room) Training 2. On Line Training IRDA Refresher Classes are conducted for the FC before the IRDA Exam.

Step 3 IRDA Examination Pre Recruitment Examination can be done by 2 Modes, 1. On line 2. Off line Exams are conducted by Insurance Institute of India (III)

RECRUITMENT PROCESS
Steps in recruitment of Insurance Agents o Approach to the likely person o Appointment as per condition o Discuss the topic o Give the documents which includes:1. Prospectus of the company 2. Brochure 3. Companys plan 4. Questionnaire o Collect the document after its completion o Forward it to project manager o Feed it in the computer as the database o Follow up as per conditions