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8/18/2019 Hdfc Recruitment Akshita
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A
PROJECT REPORT ON
“RECRUITMENT OF FINANCIAL CONSULTANTS”
WITH
HDFC STANDARD LIFE INSURANCE LTD.
SUBMITTED TO:
RAJASYHAN TECHNICAL UNIVERSITY,KOTA
In the partial fulfillment of
Master of Business Administration
(2007-0!
SUBMITED BY:
HARI SIN"H
DEEPSHIKHA COLLE"E OF
TECHNICAL EDUCATION
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ACKNOWLED"EMENT
I take great pleasure to thank and akno!ledgement the permission
and allo!ane "# M#. AJAY SHARMA, CHANNEL
DEVELOPEMENT MANA"ER, HDFC STANDARD LIFE
INSURANCE, JAIPUR RE"ION and his help and inspiration
pro$ided% I e&tend a !hole hearted thanks to M#. SUMER SIN"H
under !hom I !orked and learned a lot and for enlightening me !ith
their kno!ledge and e&periene to gro! !ith the orporate !orking%
Their guidane at e$er# stage of the 'ro(et ena"led me to
suessfull# omplete this pro(et !hih other!ise !ould not ha$e
"een possi"le !ithout their onstant enouragement and moti$ation)
!ithout the support it !as not possi"le for me to omplete the report
!ith fullest endea$our%
I !ould also like to e&tend m# thanks to m# *ollege +ault#Mem"ers Mr% Satish Sharma all m# olleagues in the ompan# !ho
supported me in arr# out m# operation suessfull# and generousl#
and pro$ided me $ital information, training regarding the m# pro(et
o"(eti$e%
HARI SIN"H
M$A % III
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PREFACE
I had undergone a pratial training under HDFC STANDARD
LIFE INSURANCE, JAIPUR RE"ION% It !as a good e&posure
for me to undergo training in suh a ompan# to get the kno!ledge
and e&periene regarding life insurane and reruitment of apa"le
of life insurane ad$isors%
Summer training is one of the ma(or e&periening omponent of the
kno!ledge) gain of rele$ant of information !ith respet to marketing
and dealing !ith situations in a professional ourse like M%B%A%
!here a professional person faes a pro"lem in a field% I !as a"le to
get familiari.ed !ith the ustomer relationship and got to kno! ho!
a ompan# measures to resol$e their grie$anes and ser$ie them to
the ma&imum for future prospet and suess% +ield omponent like
sur$e#) generation of /uestionnaire !ith respet to marketing helped
me a lot and !ould "e a great support in future%
“I& ' )**+ &* / /&1' 31& '& ' //&'4 &* / '').
T#'') 5 3/ ' 44 6 *8 4'8/.” Thus I !ould sa# that this
training !as "enefiial eduati$e 0 good e&posure to me) !hih !ill
ertainl# help in m# near future% This pro(et !as designed !ith
respet to this ompan#% The pro(et made me to get the enhaned
kno!ledge regarding life insurane onept and the proess of
reruiting of finanial onsultant%
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T34/ *8 5*&/&
S. N*. P#&'514# P)/
9. I2T3ODU*TIO2 4516
-% 7I+E I2SU3A2*E 145-8
% 7I+E I2SU3A2*E I2DUST3Y -15-9
6% ABOUT TE *OM'A2Y ; D+* STA2DA3D 7I+E --518>
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INTRODUCTION - INSURANCE
The insurane setor !as opened up in the #ear 1>>> failitating the
entr# of pri$ate pla#ers into the industr#% ith an annual gro!th rate
of -6%1 perent and the largest num"er of life insurane poliies in
fore) the potential of the Indian insurane industr# is huge% The #ear
1>>> sa! a re$olution in the Indian insurane setor) as ma(or
strutural hanges took plae !ith the ending of =o$ernment
monopol# and the passage of the Insurane 3egulator# and
De$elopment Authorit# I3DAF Bill) lifting entr# restritions for
pri$ate pla#ers and allo!ing foreign pla#ers to enter the market !ith
some limits on diret foreign o!nership%
Aording to the *SO) the insurane and "anking ser$iesG
ontri"ution to the ountr#Gs =D' is >85>1% During the
H>8s) it !as "et!een 1 and - perent and from -881 it !as o$er -
perent% In -88586 it !as -%6 perent%
9
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The impetus for inrease is due to the ati$e role pla#ed "# I3DA in
liensing pri$ate pla#ers and taking positi$e steps in inreasing the
insurane a!areness among the people% Besides) the insurane
ompanies in general and pri$ate insurane ompanies in partiular)
are reahing out to untapped potential in rural areas !ith aggressi$e
ampaigns%
Inno$ati$e produts) smart marketing) and aggressi$e distri"ution
ha$e ena"led fledgling pri$ate insurane ompanies to sign up Indian
ustomers faster than an#one e&peted% 7ife insurane is $ie!ed as a
ta& sa$ing de$ie% 'eople are no! turning to the pri$ate setor for
pro$iding them !ith ne! produts and greater $ariet# for their
hoie% The impro$ement in +DI flo!s refleted the impat of reent
initiati$es aimed at reating an ena"ling en$ironment for +DI and for
enouraging infusion of ne! tehnologies and management
praties% The =o$ernmentGs proposal to inrease the +DI ap in the
insurane setor from the present -9 perent to 6> perent has raised
e&petations among the international insurane ompanies%
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I1#5/ % D/8'/+:
Insurance is a contract in which sum of money is paid to the
assured in consideration of insurer’s incurring risk of paying a large
sum upon a given contingency% -- J1&'5/ T'+44
“Insurance is a contract by which one party for a compensation
called in the premium assumes particular risks of the other party
and promises to pay to him or his nominee a certain sum of money
on a specified contingency.” -- E.W.F'&&/#*
Insurance may be described as social device whereby a large group
of individuals, through a system of equitable contribution, may
reduce certain measurable risk of economic loss common to all
members of the group.” 55E554*;/+' $#'&'5
The a"o$e definitions learl# sho!s that insurane is a ooperati$e
de$ie to spread the loss aused "# a partiular risk o$er a mem"er
of persons !ho are e&posed to it and !ho agree to insure themsel$es
against risk% Insurane does not eliminate risk "ut onl# redues the
finanial "urden) !hih ma# "e $er# hea$#%
?
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E*41&'* *8 '1#5/
In the da#s of #ore insurane !as in its rude form and !as
ooperati$e and $oluntar# in nature% hen) !here and ho! it
originated is still a matter of researh in one !a# or the other !as
pre$alent in olden da#s% e an trae its histor# from the e$olution
soiet# from hunting stage to the modern industrial age% A !ord
YA=*EMJ ours in the !orldGs most anient indu Sripture
3ig eda%
The !ord YA=*EMJ means insurane% It learl# indiated that
a"out four thousand #ears ago insurane !as pre$alent in its rude
form% It !as ooperati$e and $oluntar# in nature% 'eople formed
different groups of organi.ations to share the loss among themsel$es
inase of a partiular risk% Eah mem"er ontri"uted some amount to
a ommon fund to meet the unforeseen losses% Sometimes the# also
ontri"uted e/uall# to ompensate person as and !hen he suffered a
loss% Traes of insurane in the anient !orld are also found in the
form of marino trade loans or arriers ontrats !hih inluded an
element of insurane%
>
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E$idene is on reords that arrangements em"od#ing the idea of
insurane !ere made in Ba"#lonia and India at /uite an earl# period%
3eferenes !ere made to the onept of insurane in ManuGs ode
Manu Smrit#J% It !as akin to YagakshemoJ of 3ig$eda in !hih
the !ell "eing and seurit# of the ommunit# !as aimed at%
o!e$er) there is no e$idene that insurane in its present farm !as
pratied prior to t!elfth entur#%
T/ N&1#/ O8 I1#5/
The insurane has the follo!ing harateristis !hih are o"ser$ed
in ases of life) marine) fire and general insurane%
1% S#') *8 #'
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-% I& ' 5**;/#&'/ +/'5/: A large num"er of persons agree to
share the loss arising sue to a partiular risk% Thus) insurane is a
ooperati$e de$ie%
% V41/ *8 #'
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F15&'* *8 I1#5/
A! P#'# F15&'*
1% I1#5/ ;#*'+/ 5/#&'&: Insurane pro$ide ertaint# of
pa#ments at the unertaint# of losses% The element of unertaint#
is redued "# "etter planning and administration%
-% I1#5/ ;#*'+/ ;#*&/5&'*. The risk !ill our or not) !hen
!ill our and ho! muh loss !ill "e there% There are
unertainties of happening of time and amount of losses% The
main funtion of the insurane is to pro$ide protetion against the
losses%
% R'< #'): 3isk is unertain and therefore) the loss arising
from the risk is also unertain% All "usiness onern faes the
pro"lem of the risk and if the onern is "ig enough the handling
of risk "eomes a speiali.ed funtion% Insurane) as a de$ie is
the outome of the e&istene of $arious risks in our da# to da#
life% It spreads the !hole losses o$er a large num"er of persons
!ho are e&posed "# a partiular risk%
1-
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$% S/5*+# F15&'*
1% P#//&'* *8 4*: 're$ention is al!a#s "etter than ure%
're$ention is "# far the "est solution to the pro"lem of risk% It is
more effeti$e and heapest method to a$oid the unfortunate
onse/uene% But sometimes pre$ention is not al!a#s possi"le
and Effeti$e%
-% I& ;#*'+/ 5;'&4: It pro$ides the apital to the soiet#% +or plan
de$elopment of ountr# there is a great need for huge amount of
apital% 2o! da#s) the insurane ompanies are rendering
positi$e help in the de$elopment of trade) ommere and industr#
of the ountr#%
% I& ';#*/ /88'5'/5: Ahie$ement of goals) it impro$es not
onl# his effiien# of the masses is also ad$aned% The insurane
eliminates !orries and miseries of losses as death and destrution
of propert# are free person an de$ote his energies for "etter%
1
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6% I& /1#/ &/ 6/48#/ *8 *5'/&: Insurane is a saga of ser$ie
and seurit#J to thee soiet#% Seurit# of the life and propert#
gi$en "# insurane "ring peae of mind to the insured% The
in$estment in 7I* in !elfare shemes like eletriit#) housing)
!ater suppl#) agro industr# estates are a"le to sol$e man#
pro"lems in India%
4% I& /4; ' /5**'5 ;#*)#/: Insurane pro$ides an initiati$e
to !ork hard for the "etterment of the masses% 7ife insurane
in$ol$es the element of sa$ing in$estment through small sa$ings%
And !hih has "een gro!ing in reent #rs at an annual rate of
a"out 3s% 688 rs) life insurane is not a mere "usiness
organi.ation) it has no"ler !elfare responsi"ilities in the
de$elopment of the eonom#%
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14
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LIFE INSURANCE
D/8''&'*
The life insurance contract embodies an agreement in which broadly
stated, the insurer undertakes to pay a stipulated sum upon the death
of the insurer to a designated beneficiary%J 55 J.H.MA"EE
ife insurance contract may be defined whereby the insurer, in
consideration of premium paid either in lumpsum installments,
undertakes to pay an annuity on the death of the insured of a certain
number of years.” 55 R.S.SHARMA
! contract of life assurance is that in which one party agrees to pay
a given sum on the happening of a particular event contingent upon
the duration of human life in consideration of immediate payment of
a smaller sum by another. $UNYON=S LAW OF LIFE INSURANCE
S*/ *1&&+') +&)/ *8 4'8/ '1#5/
1%F It is superior to an ordinar# sa$ing plan: this is so "eause unlike
other sa$ing plans) it offers full protetion against risk of death%
19
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-%F Insurane enourages and enfores thrift : man# people ma# not
ha$e the !ill po!er to ontinue a long term sa$ing plan !hih the#
ma# formulate regular pa#ments in fae of mone# other uses to
!hih their limited inome ould "e put%
%F Eas# installments and protetions against reditors: the proeeds
of a life insurane poli# an "e proteted against the laims of the
reditors of life assured "# affetion a $alid assignment of the
poliies%
6%F Ta& relief: the inome ta& at e&empts from ta& that part of an
indi$iduals inome !hih is de$oted to pa#ment of life insurane
premium%
4%F Estate dut#: life insurane is the most pratia"le !a# to ensure
definite pa#ment on oneGs death !ithout ha$ing resort to on$ersion
of reali.a"le asset at a loss%
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W L'8/ I1#5/
>
7ife Insurane has ome a long !a# from the earlier da#s !hen it
!as originall# onei$ed as a risk o$ering medium for short periods
of time) o$ering temporar# risk situations) suh as sea $o#ages% As
life insurane "eame more esta"lished) it !as reali.ed !hat a useful
tool it !as for a num"er of situations) inluding 5
! T/;*## //+ ? &#/&: The original purpose of life
insurane remains an important element) namel# pro$iding for
replaement of inome on death et%
3! R/)14# S'): 'ro$iding for oneKs famil# and oneself) as a
medium to long term e&erise through a series of regular pa#ment
of premiumsF% This has "eome more rele$ant in reent times as
people seek finanial independene for their famil#%
5! I/&/&: 'ut simpl#) the "uilding up of sa$ings !hile
safeguarding it from the ra$ages of inflation% Unlike regular sa$ing
1?
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produts) in$estment produts are traditionall# lump sum
in$estments) !here the indi$idual makes a one off pa#ment%
+! R/&'#//&: 'ro$ision for later #ears "eomes inreasingl#
neessar#) espeiall# in a hanging ultural and soial en$ironment%
One an "u# a suita"le insurane poli#) !hih !ill pro$ide
periodial pa#ments in oneKs old age%
7et us take an e&le to understand the need for insurane:
Mr% 'rana# is 64 #ears of age and self5emplo#ed% is !ife 2andini)
!ho is a house!ife) looks after their t!o hildren aged and < #ears%
The# sta# in a rented aommodation) !here the rent is 14)888
rupees per month% Mr% Atul has taken up a loan of 3s% - lakh% is
monthl# earnings on a$erage are 68)888 rupees% Mr% Atul passes
a!a# in an unfortunate road aident% hat are some of the finanial
impliations of his death on his famil#L There ma# "e se$eral
finanial impliations on his famil#% Some of these are:
aF The monthl# inome) pre$iousl# pro$ided "# Mr% Atul !ould stop%
1>
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"F is !ife and hildren ma# ha$e to seek finanial assistane from
other relati$es%
F is !ife ma# not ha$e enough mone# to pa# "ak the loan of 3s%
- lakhs%
dF The famil# ma# ha$e to mo$e into a heaper aommodation%
eF is !ido! ma# ha$e to take up !ork to earn mone#%
fF The eduation of his hildren ma# suffer%
This simple e&le illustrates the impat premature death an ha$e
on a famil#) !here the main earner has no life o$er% ad Mr% Atul
taken life o$er) his famil# !ould not ha$e faed suh hardships in
the e$ent of his unfortunate death% A simple life insurane poli#
ould ha$e pro$ided Mr% AtulKs famil# !ith a lump sum that ould
ha$e "een in$ested to pro$ide an inome e/ual to all or part of his
inome%
In simple !ords) insurane protets against untimel# losses%
Insurane has "een found useful in the li$es of persons "oth in the
short term and long term% Short term needs like sudden medial osts
-8
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and long term needs like marriage e&penses et an "e met !ith
using life insurane%
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INSURANCE INDUSTRY
I+' I1#5/ I+1: - N/6 A/1/ F*# "#*6&
ith an annual gro!th rate of 145-8 and the largest num"er of life
insurane poliies in fore) the potential of the Indian insurane
industr# is huge% Total $alue of the Indian insurane market -8865
84F is estimated at 3s%648 "illion USN18 "illionF% Aording to
go$ernment soures) the insurane and "anking ser$iesG
ontri"ution to the ountr#Ks gross domesti produt =D'F is
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The #ear 1>>> sa! a re$olution in the Indian insurane setor) as
ma(or strutural hanges took plae !ith the ending of go$ernment
monopol# and the passage of the Insurane 3egulator# and
De$elopment Authorit# I3DAF Bill) lifting all entr# restritions for
pri$ate pla#ers and allo!ing foreign pla#ers to enter the market !ith
some limits on diret foreign o!nership%
Though) the e&isting rule sa#s that a foreign partner an hold -9
e/uit# in an insurane ompan#) a proposal to inrease this limit to
6> is pending !ith the go$ernment% Sine opening up of the
insurane setor in 1>>>) foreign in$estments of 3s% ?%< "illion ha$e
poured into the Indian market and -1 pri$ate ompanies ha$e "een
granted lienses%
Inno$ati$e produts) smart marketing) and aggressi$e distri"ution
ha$e ena"led fledgling pri$ate insurane ompanies to sign up Indian
ustomers faster than an#one e&peted% Indians) !ho had al!a#s
seen life insurane as a ta& sa$ing de$ie) are no! suddenl# turning
to the pri$ate setor and snapping up the ne! inno$ati$e produts on
offer%
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The life insurane industr# in India gre! "# an impressi$e 9) !ith
premium inome from ne! "usiness at 3s% -4%6 "illion during the
fisal #ear -8865-884) "ra$ing stiff ompetition from pri$ate
insurers% 32*OSGs report) Indian Insurane Industr#: 2e! A$enues
for =ro!th -81-J) finds that the market share of the state "ehemoth)
7I*) has loked -1%?
"illion in -88586%
Though the total $olume of 7I*Ks "usiness inreased in the last fisal
#ear -8865-884F ompared to the pre$ious one) its market share
ame do!n from ?
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There are presentl# 1- general insurane ompanies !ith four pu"li
setor ompanies and eight pri$ate insurers% Aording to estimates)
pri$ate insurane ompanies olleti$el# ha$e a 18 share of the
non5life insurane market%
Though the fous of this market researh report is on the potential
gro!th on the Indian Insurane Setor) it also talks a"out the market
si.e) market segmentation) and ke# de$elopments in the market after
1>>>% The report gi$es an instant o$er$ie! of the Indian non5life
insurane market) and o$ers fire) marine) and other non5life
insurane% The data is supplied in "oth graphial and ta"ular format
for ease of interpretation and anal#sis% This report also pro$ides
ompan# profiles of the ma(or pri$ate insurane ompanies%
R/;*#& H')4')&:
• =ains of 7i"erali.ation in Indian Insurane Setor
• Indian Insurane Market Segmentation B# 'roduts
-4
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• Si.e of the Market and Market Share Of 7ife Insurers) In I23
roreF
• Market Share Of 2on57ife Insurers
• +oreast of 7ife Insurane =ro!th Up to -81-
• +oreast of 2on57ife Insurane =ro!th Up to -81-
• Market 3e$enue of Both 'u"li and 'ri$ate Insurers
• 'oliies and Measures Taken B# I3DA To De$elop The Insurane
Market
• 3esearh and De$elopment Ati$ities
•
3egulation of insurane and reinsurane ompanies
• Ma(or *hallenges That Indian Insurane Setor is +aing
• 'rofiles of the Ma(or 'la#ers
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HDFC STANDARD LIFE INSURANCE
T/ I*+15&'*
Standard 7ife Insurane *ompan# 7td% is one of IndiaKs leading
pri$ate insurane ompanies) !hih offers a range of indi$idual and
group insurane solutions% It is a (oint $enture "et!een ousing
De$elopment +inane *orporation 7imited D+* 7td%F) IndiaKs
leading housing finane institution and a =roup *ompan# of the
Standard 7ife) U@% D+* as on Marh 1) -88< holds ?1%> per ent
of e/uit# in the (oint $enture%
O1#
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T#5< R/5*#+ * 8#: Our gross premium inome) for the #ear
ending Marh 1) -88< stood at 3s% -) ?49 rores and ne! "usiness
premium inome at 3s% 1)9-6 rores% The ompan# has o$ered o$er
?)>4 the
ompanies signed a #ear (oint $enture agreement% Around this time
Standard 7ife purhased a 4 stake in D+*) further strengthening
the relationship%
The ne&t three #ears !ere filled !ith unertaint#) due to hanges in
go$ernment and ongoing dela#s in getting the I3DA Insurane
3egulator# and De$elopment authorit#F At passed in parliament%
Despite this "oth ompanies remained firml# ommitted to the
$enture% In Oto"er 1>>?) the (oint $enture agreement !as rene!ed
and additional resoure made a$aila"le%
->
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Around this time Standard 7ife purhased - of Infrastruture
De$elopment +inane *ompan# 7td% ID+*F% Standard 7ife also
started to use the ser$ies of the D+* Treasur# department to
ad$ise them upon their in$estments in India% To!ards the end of
1>>>) the opening of the market looked $er# promising and "oth
ompanies agreed the time !as right to mo$e the operation to the
ne&t le$el% Therefore) in anuar# -888 an e&pert team from the U@
(oined a hand piked team from D+* to form the ore pro(et team)
"ased in Mum"ai%
Around this time Standard 7ife purhased a further 4 stake in
D+* and a 4 stake in D+* Bank% In a further de$elopment
Standard 7ife agreed to partiipate in the Asset Management
*ompan# promoted "# D+* to enter the mutual fund market%
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P#**&/# *8 HDFC S&+#+ L'8/ I1#5/:
9. HDFC L''&/+
D+* is IndiaGs leading housing finane institution and has helped
"uild more than -)88)888 houses sine its inorporation in 1>
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• 'resented the HDream omeG a!ard for the "est housing finane
pro$ider in -886 at the third Annual Outlook Mone# A!ards%
S&+#+ L'8/ "#*1; (S&+#+ L'8/ ;45 + '& 13'+'#'/!
The Standard 7ife group has "een looking after the finanial needs
of ustomers for o$er 1?8 #ears% It urrentl# has a ustomer "ase of
around < million people !ho rel# on the ompan# for their
insurane) pension) in$estment) "anking and health5are needs%
Its in$estment manager urrentl# administers P1-4 "illion in assets%
It is a leading pensions pro$ider in the U@) and is rated "# Standard
0 'oorKs as KstrongK !ith a rating of AQ and as KgoodK !ith a rating
of A1 "# Mood#Ks Standard 7ife !as a!arded the KBest 'ension
'ro$iderK in -886) -884 and -889 at the Mone# Marketing A!ards)
and it !as $oted a 4 star life and pensions pro$ider at the +inanial
Ad$iser Ser$ie A!ards for the last 18 #ears running%
The K4 StarK aolade has also "een a!arded to Standard 7ife
In$estments for the last 18 #ears) and to Standard 7ife Bank sine its
ineption in 1>>?% Standard 7ife Bank !as a!arded the KBest
-
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+le&i"le Mortgage 7enderK at the Mortgage Maga.ine A!ards in
-889
I5*#;*#&'*: H+85 S&+#+ L'8/ I1#5/ C*; L''&/+
The ompan# !as inorporated on 16th August -888 under the name
of D+* Standard 7ife Insurane *ompan# 7imited%
Our am"ition from as far "ak as Oto"er 1>>4) !as to "e the first
pri$ate ompan# to re5enter the life insurane market in India% On the
-rd of Oto"er -888) this am"ition !as realised !hen D+*
Standard 7ife !as the onl# life ompan# to "e granted a ertifiate
of registration% D+* are the main shareholders in D+* Standard
7ife) !ith ?1%6) !hile Standard 7ife o!ns 1?%9%
=i$en Standard 7ifeKs e&isting in$estment in the D+* =roup) this
is the ma&imum in$estment allo!ed under urrent regulations%
D+* and Standard 7ife ha$e a long and lose relationship "uilt
upon shared $alues and trust% The am"ition of D+* Standard 7ife
is to mirror the suess of the parent ompanies and "e the #ardstik
"# !hih all other insurane ompan#Ks in India are measured%
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O1# M''*
e aim to "e the top ne! life insurane ompan# in the market% This
does not (ust mean "eing the largest or the most produti$e ompan#
in the market) rather it is a om"ination of se$eral things like5
*ustomer ser$ie of the highest order
alue for mone# for ustomers
'rofessionalism in arr#ing out "usiness
Inno$ati$e produts to ater to different needs of different
ustomers
Use of tehnolog# to impro$e ser$ie standards
Inreasing market share
O1# V41/
1% SE*U3ITY: 'ro$iding long term finanial seurit# to our poli#
holders !ill "e our onstant endea$our% e !ill "e do this "#
offering life insurane and pension produts%
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-% T3UST: e appreiate the trust plaed "# our poli# holders in
us% ene) !e !ill aim to manage their in$estments $er#
arefull# and li$e up to this trust%
% I22OATIO2: 3eogni.ing the different needs of our
ustomers) !e !ill "e offering a range of inno$ati$e produts to
meet these needs% Our mission is to "e the "est ne! life insurane
ompan# in India and these are the $alues that !ill guide us in
this%
$*#+ *8 D'#/5&*#:-
1% Mr% Deepak S 'arekh is the *hairman of the *ompan#% e is also
the E&euti$e *hairman of ousing De$elopment +inane
*orporation 7imited D+* 7imitedF%
-% Mr% @eki M Mistr# is urrentl# the Managing Diretor of D+*
7imited% Mr% Ale&ander M *rom"ie is the =roup *hief E&euti$e
of the Standard 7ife =roup in Marh -886%
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% Ms% Maria D *amp"ell is urrentl# the =roup Operations
Diretor in the Standard 7ife group and is responsi"le for =roup
Operations) Asia 'aifi De$elopment) Strateg# 0 'lanning)
*orporate 3esponsi"ilit# and Shared Ser$ies *entre%
6% Mr% @eith 2 Skeoh is urrentl# the *hief E&euti$e in Standard
7ife In$estments 7imited and is responsi"le for o$erseeing
In$estment 'roess 0 *hief E&euti$e Offier +untion%
4% Mr% =autam 3 Di$an is a pratising *hartered Aountant and is a
+ello! of the Institute of *hartered Aountants of India%
9% Mr% 3an(an 'ant is a glo"al Management *onsultant ad$ising
*EO,Boards on Strateg# and *hange Management%
% Ms% 3enu S% @arnad is the E&euti$e diretor of D+* 7imited%
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PRODUCTS
At D+* Standard 7ife) !e offer a "ou/uet of insurane solutions to
meet e$er# need% e ater to "oth) indi$iduals as !ell as to
ompanies looking to pro$ide "enefits to their emplo#ees% This
setion gi$es #ou details of all our produts% e ha$e inorporated
$arious do!nloada"le forms and produt details so that #ou an
make an informed hoie a"out "u#ing a poli#%
+or indi$iduals) !e ha$e a range of protetion) in$estment) pension
and sa$ings plans that assist and nurture dreams apart from
pro$iding protetion% You an hoose from a range of produts to
suit #our life5stage and needs%
+or organisations !e ha$e a host of ustomised solutions that range
from =roup Term Insurane) =ratuit#) 7ea$e Enashment and
Superannuation 'roduts% These afforda"le plans apart from
pro$iding long term $alue to the emplo#ees help in enhaning
good!ill of the ompan#%
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I+''+14 P#*+15&
e at D+* Standard 7ife realise that not e$er#one has the same
kind of needs% @eeping this in mind) !e ha$e a $aried range of
'roduts that #ou an hoose from to suit all #our needs% These !ill
help seure #our future as !ell as the future of #our famil#%
P#*&/5&'* P4
You an protet #our famil# against the loss of #our inome or the
"urden of a loan in the e$ent of #our unfortunate demise) disa"ilit#
or sikness% These plans offer $alua"le peae of mind at a small
prie% Our 'rotetion range inludes our Term Assurane 'lan 0
7oan *o$er Term Assurane 'lan%
I/&/& P4
Our Single 'remium hole Of 7ife plan is !ell suited to meet #our
long term in$estment needs% e pro$ide #ou !ith attrati$e long
term returns through regular "onuses%
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P/'* P4
Our 'ension 'lans help #ou seure #our finanial independene e$en
after retirement% Our 'ension range inludes our 'ersonal 'ension
'lan) Unit 7inked 'ension) Unit 7inked 'ension 'lus
S') P4
Our Sa$ings 'lans offer #ou fle&i"le options to "uild sa$ings for
#our future needs suh as "u#ing a dream home or fulfilling #our
hildrenGs immediate and future needs% Our Sa$ings range inludes
Endo!ment Assurane 'lan) Unit 7inked Endo!ment) Unit 7inked
Endo!ment 'lus) Mone# Bak 'lan) *hildrenGs 'lan) Unit 7inked
Youngstar) Unit 7inked Youngstar 'lus %
"#*1; P#*+15&
One5stop shop for emplo#ee5"enefit solutions
D+* Standard 7ife has the most omprehensi$e list of produts for
progressi$e emplo#ers !ho !ish to pro$ide the "est and most
inno$ati$e emplo#ee "enefit solutions to their emplo#ees%
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S*5'4 P#*+15&
D//4*;/& I1#5/ P4
De$elopment Insurane plan is an insurane plan !hih pro$ides life
o$er to mem"ers of a De$elopment Agen# for a term of one #ear%
On the death of an# mem"er of the group insured during the #ear of
o$er) a lump sum is paid to that mem"erGs "enefiiaries to help
meet some of the immediate finanial needs follo!ing their loss%
Eligi"ilit#
Mem"ers of the de$elopment agen# and their spouses !ith:
5 Minimum age at the start of the poli# 1? #ears last "irthda#
5 Ma&imum age at the start of poli# 48 #ears last "irthda#
Emplo#ees of the De$elopment Agen# are not eligi"le to (oin the
group% The group to "e o$ered is onl# eligi"le if it ontains more
than 488 mem"ers%
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P#/'1 P/&
The premium to "e paid !ill "e /uoted per mem"er in the group and
!ill "e the same for all mem"ers of the group% The premium an
onl# "e paid "# the De$elopment Agen# as a single lump sum that
inludes all premiums for the group to "e o$ered% *o$er !ill not
start until the premium and all the mem"er information in our
speified format has "een reei$ed% The premium rate is 3s% -4 per
3s% 18)888 of lump sum) per mem"er%
$//8'&
On the death of eah mem"er o$ered "# the poli# during the #ear
of o$er a lump sum e/ual to the sum assured !ill "e paid to their
"enefiiaries or legal heirs% here the death is as a result of an
aident) an additional lump sum !ill "e paid e/ual to half the sum
assured% There are no "enefits paid at the end of the #ear of o$er
and there is no surrender $alue a$aila"le at an# time%
The role of the (evelopment !gency
Due to the nature of the groups o$ered) D+* Standard 7ife !ill "e
passing ertain administrati$e tasks onto the De$elopment Agen#%
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B# passing on these tasks the premium harged an "e lo!er% These
tasks !ould inlude:
• Su"mission of mem"er data in a speified omputer format
• *olletion of premiums from group mem"ers
• 3eording hanges in the details of group mem"ers
• Dis"ursement of laim pa#ments and the mortalit# re"ate if
an#F to group mem"ers
These tasks !ould "e in addition to the usual duties of a poli#holder
suh as:
• 'a#ment of premiums
• 3eporting of laims
• @eeping poli# holder information up to date
Training and support !ill "e a$aila"le to gi$e guidane on ho! to
omplete the tasks appropriatel#% Sine these additional tasks !ill
impose a "urden on the De$elopment Agen#) the De$elopment
Agen# ma# harge a 3s% 18 administration fee to their mem"ers%
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Se% ?8 *** Aross all inome sla"s% Upto 3s% )>>8 sa$ed on
In$estment of 3s%1)88)888% All the pension plans%
Se% ?8 D Aross all inome sla"s% Upto 3s% )>> sa$ed on
In$estment of 3s% 18)888% All the health insurane riders a$aila"le
!ith the on$entional plans%
TOTA7 SAI2=S 'OSSIB7E 3s%
3s% )>>8 under Se% ?8* and under Se% ?8 *** ) 3s%)>> under
Se% ?8 D) alulated for a male !ith gross annual inome e&eeding
3s% 18)88)888%
Se% 18 18FD Under Se% 1818DF) the "enefits #ou reei$e are
ompletel# ta&5free) su"(et to the onditions laid do!n therein%
Applia"le to premiums paid for *ritial Illness Benefit)
Aelerated Sum Assured and ai$er of 'remium Benefit%
These alulations are illustrati$e and "ased on our understanding
of urrent ta& legislations) !hih are su"(et to hange%
'lease ontat #our ta& onsultant for e&at alulation of #our ta&
lia"ilities%
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LIFE INSURANCE IN INDIA
ith suh a large population and the untapped market area of this
population Insurane happens to "e a $er# "ig opportunit# in India%
Toda# it stands as a "usiness gro!ing at the rate of 145-8 per ent
annuall#% Together !ith "anking ser$ies) it adds a"out < perent to
the ountr#Gs =D' %In spite of all this gro!th the statistis of the
penetration of the insurane in the ountr# is $er# poor% 2earl# ?8
of Indian populations are !ithout 7ife insurane o$er and the
ealth insurane%
This is an indiator that gro!th potential for the insurane setor is
immense in India% It !as due to this immense gro!th that the
regulations !ere introdued in the insurane setor and in
ontinuation Malhotra *ommitteeJ !as onstituted "# the
go$ernment in 1>> to e&amine the $arious aspets of the industr#%
The ke# element of the reform proess !as 'artiipation of o$erseas
insurane ompanies !ith -9 apital% *reating a more effiient and
ompetiti$e finanial s#stem suita"le for the re/uirements of the
eonom# !as the main idea "ehind this reform%
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Sine then the insurane industr# has gone through man# sea
hanges %The ompetition 7I* started faing from these ompanies
!ere threatening to the e&istene of 7I*% Sine the li"erali.ation of
the industr# the insurane industr# has ne$er looked "ak and toda#
stand as the one of the most ompetiti$e and e&ploring industr# in
India% The entr# of the pri$ate pla#ers and the inreased use of the
ne! distri"ution are in the limelight toda#% The use of ne!
distri"ution tehni/ues and the IT tools has inreased the sope of
the industr# in the longer run%
A $#'/8 H'&*#
The origin of insurane is $er# old %The time !hen !e !ere not e$en
"orn man has sought some sort of protetion from the unpredita"le
alamities of the nature% The "asi urge in man to seure himself
against an# form of risk and unertaint# led to the origin of
insurane% The insurane ame to India from U@ !ith the
esta"lishment of the Oriental 7ife insurane *orporation in 1?1?%
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The Indian life insurane ompan# at 1>1- !as the first statutor#
"od# that started to regulate the life insurane "usiness in India% B#
1>49 a"out 146 Indian) 19 foreign and 4< =eneral Insurane *ounil) a !ing of the Insurane
Assoiation of India) frames a ode of ondut for ensuring fair
ondut and sound "usiness praties% In 1>
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It !as after this that 18< insurers amalgamated and grouped into four
ompanies $i.% the 2ational Insurane *ompan# 7td%) the 2e! India
Assurane *ompan# 7td%) the Oriental Insurane *ompan# 7td% and
the United India Insurane *ompan# 7td% =I* inorporated as a
ompan#%
P#//& S5/#'*
The go$ernment of India li"erali.ed the insurane setor in marh
-888 !ith the passage of the Insurane 3egulator# and De$elopment
Authorit# I3DAF "ill% 7ifting all entr# restritions for pri$ate
pla#ers to enter the market !ith some limits on diret foreign
o!nership% premium rate of most general insurane% 'oliies ome
under the pur$ie! of the go$ernment appointed Tariff Agent#
*ommittee% The opening up of the setor is likel# to lead to greater
spread and deepening of insurane in India and this ma# also
restruturing and re$itali.ing of the pu"li setor ompanies% A host
of pri$ate insurane ompanies operating in "oth life and non life
segments ha$e started selling their insurane poliies sine -881%
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2on life insurane market) In Deem"er -888) the =I* su"sidiaries
!ere restrutured as independent insurane ompanies% At the same
time) =I* !as on$erted into national re5insurer% In ul#-88-)
'arliament passed a "ill) delinking the four su"sidiaries from =I*%
'resentl# there are 1- general insurane ompanies !ith 6 pu"li
setor ompanies and ? pri$ate insures% Although the pu"li setor
ompanies still dominate the general insurane "usiness) the pri$ate
insurane ompanies ha$e a 18 perent share of the market) up from
6 perent in -881% In the first half of -88-) the pri$ate ompanies
"ooked premium !orth 9%6 "illion% Most of the ne! entrants
reported losses in first #r of their operation in -881%
Insurane osts onstitute roughl# around 1%- ; - of the total
pro(et osts% Under the e&isting norms) insurane premium
pa#ments are treated as part of the fi&ed osts% *onse/uentl# the# are
treated as pass through osts for tariff alulations%
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+or pro(ets osting up to 3s%1 "illion) the tariff Agent ommittee
sets the premium rates) for pro(ets "et!een 1 "illion and 14 "illion)
the rates are set in keeping !ith ommitteeGs guidelines and pro(ets
a"o$e 14 "illion are su"(eted to reinsurane priing% It is the last
segment that has a num"er of additional produts and ompetiti$e
priing% Insurane) like pro(et finane) is e&tended "# a onsortium%
2ormall# one insurer takes the lead) shouldering a"out 68548 of
the risk and reei$ing proportionate perentage of the premium%
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LIFE INSURANCE FINANCIAL CONSULTANT
E4')'3'4'& 8*# I1#5/ A)/&
E$er# person !ho has leared higher seondar# e&amination an
"eome an Agent other than a minor or the person !ho is on$ited
in an# ourt for rime or an# legal proeedings% Men and !omen
"oth an !ork as an Agent% A single person an "e assoiated !ith
other life insurane ompanies%
A training program is there to train a person !ho !ants to "eome an
Agent% There is 188 rs% training program !hih an "e done either
!ith the ph#sial appearane in the lass room or the interest "asis%
In the lassroom training the trainee has to "e ph#siall# present in
the training session% There are differene sessions of training
program% A trainee an attend an# session aording to his omfort%
The training period is of -4 da#s appro&% If the trainee does not ha$e
enough time to de$ote in the lassroom training) then there is another
option left that is training on Internet%
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On the "asis of Internet the trainee has pro$ided a login num"er
along !ith the pass!ord through !hih he operated his login and
ompleted his training hrs% as on$enient% Eah and e$er# hour pass
on the net under his login head !ill "e ount on his aount% The test
for the training program is also on line% This is onl# proedure to "e
an Insurane Agent%
S5*;/ *8 I1#5/ A)/&
In the present senario the li$ing standard is "eoming higher and
higher e$er#da#% E$er# person !ho has a famil# to sur$i$e !ants to
pro$ide his famil# eah and e$er# possi"le omforta"le thing% e
!ants his hildren to "e a !ell dressed) to "e higher /ualified in a
!ell reogni.ed shool) olleges) institutes and !ants his hildren to
go a"road for higher eduation% e !ants to li$e a lu&ur# life full of
pleasure%
To fulfill all of his needs he has to earn more and more% An# person
an "e on a (o" at a time or an "e on a "usiness anGt fulfill his
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pleasure re/uirement% There is a soure through !hih he an make
mone# in a legal !a# that is insurane setor%
Beoming an insurane Agent pro$ides him the legal soure "#
!hih he an earn mone# !ith his urrent status% It is the "usiness in
!hih #ou deal !ith #ou personal ontats and an gain e&tra
inome% This "usiness needs lo! in$estment an not of muh effort%
Its all depend on #our soial ontats and #our skills to on$ine
people "# helping them to suggest the produt !hih suited them the
most%
As due to ritial diseases) gro!ing perentage of aident and fear
of finanial risis e$er# one !ants to seure his or her future%
Insurane setor pla#s a $ital role in assuring people a"out their
future% As the sope of insurane enhaning) the need of an insurane
Agent !ho an guide the potential ustomers is gro!ing%
Being an Insurane Agent of D+*5STA2DA3D 7I+E
I2SU3A2*E pro$ides a legal mean to earn mone# !hih protets a
person from earning through a illegal soure !hih is harmful for
soiet# as !ell as himself% +or the #oungsters it pro$ides great
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platform to pro$e them% On the "asis of their performane the# an
"e reruited as unit manager%
Its reruitment proedure is $er# eas#% A person !ith high eduating
and !ell e&periene an "e reruited after a personal inter$ie! and
group disussion% After the training program is ompleted the
Insurane Agent has to appear for the pre5e&amination onduted "#
I3DA% As he lear the e&am he pro$ides a liense) !hih is the proof
of a legali.ed insurane Agent) !hih permits him to deal in his
insurane "usiness%
RECRUITMENT PROCESS:
S&/; ' #/5#1'&/& *8 I1#5/ A)/&
Approah to the likel# person
Appointment as per ondition
Disuss the topi
=i$e the douments !hih inludes:5
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1% 'rospetus of the ompan#
-% Brohure
% *ompan#Gs plan
6% Cuestionnaire
*ollet the doument after itGs ompletion
+or!ard it to pro(et manager
+eed it in the omputer as the data"ase
+ollo! up as per onditions
M*+/ *8 C*&5&
'ersonal *ontats
3eferenes
'hone *alls
=uidane as per Unit Manager
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RESEARCH METHODOLO"Y
R//#5: 5 is a proess of olleting) anal#.ing) interpreting and
summari.ing in a signifiant manner for the purpose of framing out
neessar# onlusion and findings of data perei$ed and formulated
for deri$ing out the meaningful information% To arr# our researh
neessar# telephoni alls needed to "e done) suita"le appointments
!ere to "e fi&ed and therefore market sur$e# is to "e follo!ed%
O3/5&'/ *8 ''): 5 To understand life insurane and
reruitment of apa"le life insurane ad$isors for gro!th prospets%
P#*5/: Methodolog# or proess in$ol$ing in the 3esearh follo!ed
during the ourse of summer training is as follo!s: 5
aF *olletion of data: 5 This is an important aspet in formulating
the o"(eti$e of researh proess !here the data is olleted $ia
t!o proess: 5 iF 'rimar# Soures and iiF Seondar# soures
iF )rimary sources: 5 here the data is olleted primaril# "#
inter$ie!ing and personal o"ser$ation and is original in nature
and aurate to the onsidera"le e&tent%
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iiF 'econdary sources: 5here the data is o"tained from some
pu"lished and printed soures suh as ne!spaper) maga.ines)
!e"sites and so on%
"F Anal#.ing of olleted data: 5 The data olleted through market
sur$e# and pu"lished soures is then proessed to o"tained
neessar# inferenes and findings for the purpose of ahie$ing the
o"(eti$e as !ell as to deri$e neessar# onlusion% A
onsidera"le skill and kno!ledge is in$ol$ed in anal#.ing the
data for the purpose of interpreting thereof%
F Interpreting of data: 5 it is the signifiant step !here the data
olleted and anal#.ed is interpreted in the forms of graphs and
figures is depited in the report alled 'ro(et report%
dF Summari.ing of data: 5 There"# neessar# summar# is prepared
!hih is essential in the pro(et report of the summer training
"eing done under an organi.ation%
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H/4;814 A# *8 R//#5 M/&*+*4*): -
B1/&'*'#/: 5 Cuestionnaire is a set or group of /uestions "eing
framed for the purpose of o"taining market perspeti$e a"out a
partiular aspet or topi%
There are t!o t#pes /uestionnaire "ing arried neessar# for the
market sur$e# of the summer training "eing undertaken and put for
the "# the trainee to the sample people taken as a "ase for entire
population:
aF *pen ended +uestionnaire: 5 !here the people also alled
respondentsF are re/uired freedom to present their $ie!s and
suggestions for the "enefits and suess of the organi.ation%
"F lose ended questionnaire: 5 !here the respondents is limited to
the hoie of ans!er "eing deli$ered "# the inter$ie!er itself so
that /uik and fast means of responses "e deri$ed out !ithout
!asting muh time% ere lose ended /uestionnaire "eing
follo!ed "# me during the ourse of the summer training market
sur$e#%
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S;4'): 5 Sampling is a proess of o"taining a num"er of
indi$iduals taken a "ase for the entire population sine entire
population an not "e asked a"out the neessar# o"(eti$e upon
!hih a /uestionnaire is put forth needed for the responses to "e
deri$ed for the purpose of generation of fats and ustomer $ie!
point regarding their pereption of partiular produt or ser$ies%
There are t!o t#pe of sampling ; iF 3andom Sampling and iiF
S#stemati sampling%
iF &andom sampling : 5 3andom sampling is a proess of
seleting the sample si.e randoml# and no hoie or
preferene to "e made a"out the seletion of respondents for
the market sur$e# and /uestionnaire to "e put forth against
him% ere) 3andom sampling "eing adopted "# me%
iiF 'ystematic sampling : 5 it is a sampling !here the limited
num"er of seleted respondents is figured out "ased on some
riteria so that onl# those respondents an "e asked for the
purpose of filing /uestionnaire%
S;4/ S'/: 5 184 respondents%
96
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94
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MARKET SURVEY
+rom the sur$e# it !as dra!n that life insurane is more a protetion
of human asset $alue against unertaint# onferred "# 41
respondentsF !here it is a ta& sa$ing option "eing aepted "# ?
respondentsF% 7ife insurane is a ser$ie in$ol$ing "oth these
prere/uisites as depited "# remaining 19 respondents% The
follo!ing depited this:
'rotetion of human asset $alue against unertaint# 41
Ta& "enefit de$ie ?
Both 19
99
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It has "een o"ser$ed and applied as a 7ife insurane is an essential
ser$ie and should "e applia"le to e$er# one) as fa$ored "#
onsidera"le
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hen further en/uired a"out the /ualifiation of respondents) it !as
found that 4
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+urther) the age /ualifiation for agen# reruitment) it !as found
that > respondents !ere "elonging to 1? ; -4 age group) 4
!ere "elonging to -4 ; 4 age group !here as -8 to 4 564 age
group and remaining 9 to a"o$e 64 age group% Also depited in the
follo!ing tale mentioned "elo!: 5
1?5-4 age group 61
-4 ; 4 age group <
4 ; 64 age group -1
A"o$e 64 age group 9
9>
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3espondents had different $ie!s a"out the dissatisfation from the
present status of !orking or oupation% Dissatisfation has "een
depited in a ta"le "elo! and graphiall# a"o$e:
7o! emplo#ment -6 7o! earning 9 uge apital in$estment 1<
7o! status 1? All of the a"o$e 18
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hen asked a"out !hether the# !ould like to kno! a"out a glorified
areer in life insurane agen# !here the# an fulfill an# and e$er#
desire of their life) 4> respondents agreed !hile 69 respondents said
2o and !ill see later sometime in future% It has "een depited that
life insurane setor should "e promoted at the !ide e&tent as it
ontri"ute to the eonom# as a useful soure "enefiial for "oth
nation as !ell as is iti.ens%
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Indeed 7ife insurane is a no"le "usiness as it pro$ides a needful
finanial support in the situation of fatal alamit# !here the famil# is
depri$ed "# the fat to li$e in future and sustains their li$ing% hen
sur$e#ed a"out life insurane as a no"le ser$ie% ?> respodents
agreed and "elie$e that insurane is a "ettering ser$ie to human life
and soiet# as a !hole !here as 1> respondents sho! disagreement%
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+rom the 4> respondents !ho agreed to kno! a"out the life
insurane as a areer) 1? of them agreed to (oin D+* Standard life
insurane for agen# and ome to the ompan# fore more
information !hereas 61 still took time to think and postponed to
some future date% 'eople are highl# dissatisfied from the earning)
status and li$ing standard the# are sustaining at present and !ould
definitel# like to make some additional soure of earning and for this
agen# for life insurane !ould pro$e a "oon%
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+rom all 184 respondents) >- agreed that life insurane setor is a
gro!ing onern and !ill gro! at a rapid pae in future !here as 1
took as a mere stagnant industr#% +inanial ser$ies are gro!ing at a
tremendous pae as people are urging to make their in$estment in
lurati$e opportunities and therefore life insurane setor is pla#ing a
$ital role in eduating the people to make their in$estment !hih
ould seure their future) needs and li$ing despite some fatal
alamit# that might or might not our%
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Among
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SWOT ANALYSIS
STREN"THS
1% D+* Standard life insurane offers a range of indi$idual and
group insurane solutions%
-% D+* Standard 7ife has the finanial e&pertise re/uired to
manage #our long5term in$estments safel# and effiientl#%
% The ompan# has o$ered o$er ?)
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-% Belief to!ards 7I* as it is a go$ernment orporation pho"ia is
ontinue to surmount the people of India despite lots of fla!s
and de$elopment and li"erali.ation of life insurane%
% Alternati$e finanial ser$ies suh as mutual fund) "anking
ser$ies) share and seurities also pose pro"lems and threats to
the !orking of the life insurane setor%
6% Illitera# and unemplo#ment also pose threat%
4% 3ising real estate industr# also pose threat as people are
in$esting a "ulk of their mone# o$er to that industr#%
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?8
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CONCLUSION
Summer training is a "est e&le for a trainee to learn a"out the
ompan# !orking) orporate ulture under !hih is operating the
funtions% D+* standard life insurane is a life insurane ompan#
under !hih I gained a signifiant kno!ledge !ith respet to life
insurane) its importane and applia"ilit# as !ell as undertook the task
to reruit apa"le life insurane ad$isors !hih is ondui$e for the
ompan# to gro! !ith more prosperit#% hat I taught in the
management institute utili.ed them fruitfull# leading to the "est
ad$antage to the ompan# and to the "est e&periene for mine%
At far I an onlude that life insurane is a no"le ser$ie !hih is
$er# important for e$er# iti.en to learn and reali.e its importane
"eause this is the onl# soure !hih an remain the status !here
one is !ith the famil# "read earner and e$er !hen he is not%
ith the gro!ing finanial setor I !ould like to opt this industr# for
m# future areer ad$anement and as an opportunit# to ser$ie this
industr#%
?1
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?-
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RECOMMENDATIONS
+ollo!ing are suggestions made for the "enefits and augmentation of
the sound !orking of the ompan# ; D+* Standard life insurane:
1% 2eed to train and de$elop life insurane agents !ith more
omprehensi$e kno!ledge and skills to ounter e$er# /ueries
of the ustomer%
-% It is suggested that ompan# should not left an# stone unturned
to!ards sound ad$ertisement and promotional measures on
e$er# setion !hether it is printed) media or or air $ia radio%
% It is also suggested that skilled management graduates need to
"e plaes on sales and marketing of finanial ser$ies !ho an
render their "est ideas for the aomplishment of the ompan#
goals and o"(eti$es to the "est e&tent%
6% Also) are need to "e taken that e$er# ustomerGs grie$ane
should "e met !ith delight !hether "efore purhase or after
sales%
?
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4% There should "e an e&pansion measure for more offies and
9% loation of more entres for offies of the ompan# "e
esta"lished sop that ompan# ma# gro! its net!ork%
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$I$LIO"RAPHY
+ollo!ing are soures !hih helped me during m# summer training:
$OOKS:
@OTA3I *%3%: &esearch -ethodology -anagement ) #+ E+'&'*
@OT7E3 'I7I': -arketing -anagement J 11th R/'/+ /+'&'* )-88-
"UPTA S.P%: 'tatistical -ethods Thirteen re$ised edition) -881
MA"AINES:
India Toda#
Business orld
REFERENCES
W/3'&/: 5
!!!%hdfinsurane%om
!!!%irdaindia%org
!!!%liounil%org
!!!%"usinessonnet%om
?9
http://www.hdfcinsurance.com/http://www.irdaindia.org/http://www.liccouncil.org/http://www.businessconnect.com/http://www.hdfcinsurance.com/http://www.irdaindia.org/http://www.liccouncil.org/http://www.businessconnect.com/
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?
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BUESTIONNAIRE
N/: -
A)/:-
L*5&'*: -
O551;&'*: -
B.9. W& +* *1 / 3 4'8/ '1#5/>
aF 'rotetion of human asset $alue against unertaint#
"F A sum reei$ed after death
F Both
B.2. D* *1 &'< 4'8/ '1#5/ ' //&'4 8*# //# */>
aF Yes
"F 2o
??
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B.. W& ' *1# 14'8'5&'*>
aF 'ost graduate
"F =raduate
F Senior seondar#
B.G. D* *1 5*/ 1+/#:
aF 1?5-4 age group
"F -4 ; 4 age group
F 4 ; 64 age group
dF A"o$e 64 age group
B.. W& +'&'8'/+ *1 *& ' *1# *551;&'*
aF 7o! emplo#ment
"F 7o! earning , inome
F 7o! status
dF uge apital in$estment
?>
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eF All of the a"o$e
B.. W*14+ *1 4'
aF Yes
"F 2o
B.7 D* *1 ;/#5/'/ && 4'8/ '1#5/ 31'/ ' *34/
/#'5/ *#'/&/+ 31'/>
aF Yes
"F 2o
B.. W*14+ *1 4'
aF Yes
"F 2o
>8
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B.. D* *1 )#// && &/ 4'8/ '1#5/ 31'/ ' )#*6')
'+1 + 6'44 )#*6 + #;'+ ;5/ ' 81&1#/>
aF Yes
"F 2o
B.90. D* *1 8*# &/ ;#'&'&'* *8 4'8/ '1#5/ 3 &/
"*/#/& 6/#/ ')'8'5& 13/# *8 5*;'/ *6 '
&/ #
aF Yes
"F 2o
Suggestions: 5
/.
0.
1.
2.
3.
VISHAL KUMAR SHRIVAISHNAV
>1
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HDFC STANDARD LIFE INSURANCE
"LOSSARY
Appliation for insurane: This is the form on !here #ou state
information and ans!er /uestions from the insurane ompan# a"out
#ourself and #our histor#% This appliation along !ith information
from a medial e&amination) if taken) from #our ph#siians) an#
hospitals #ou ma# ha$e $isited and in$estigation are !hatKs used "#
the insurane ompan# to deide !hether or not to offer #ou life
insurane and at !hat rate%
Aident Benefit: A rider or An add5on !ith a life poli#% It
ompensates a poli#holder in the e$ent of death or in(ur# "#
aident
Annuit#: An in$estment option that makes a series of regular
pa#ments to an indi$idual in e&hange for a premium or a series of
premia%
Appreiate: To gro! in $alue
Asset: E$er#thing o!ned or due to a person
>-
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Asset alloation: o! #our in$estments are spread aross $arious
asset lasses
Benefiiar#: The personsF named in the poli# to reei$e the life
insurane proeeds upon the death of the insured%
Bond: It is like an IOU% B# "u#ing a "ond #ou loan mone# to a
ompan#) a muniipalit#) state or the *entral =o$ernment
Bonus: The amount paid as return in a H!ith5profitG poli#% The
"onus) e&pressed as a perentage of the sum assured) is generall#
delared e$er# #ear% The amount is linked to the profits earned "# the
insurer% Depending on the time of !ithdra!al) there are t!o kinds of
"onuses ; re$ersionar# and ash% A re$ersionar# "onus an "e
enashed onl# on maturit# of the poli# a ash "onus an "e
!ithdra!n !hen delared
Budget: It is a tool used to monitor and ontrol e&penditures and
purhases%
*ash SurrenderF alue: The amount that is a$aila"le in ash for
loans and that ma# "e a$aila"le for !ithdra!als in a !hole life
insurane) uni$ersal life insurane or sur$i$orship life insurane
>
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poli#% Aessing *ash Surrender alue ma# redue the death
"enefit and ma# inrease the risk of lapse%
*ontesta"ilit#) *ontesta"le *lause: In insurane there is a lause)
!hih e&plains the onditions under !hih the insurer ma# ontest
or $oid the life insurane poli#% This ontesta"ilit# is for a limited
period of time) !hih in most states is t!o #ears% After that period
of time the insurane ompan# annot ontest the poli#%
*on$erti"le Term Insurane: Term insurane !hih an "e
e&hanged on$ertedF) at the option of the poli#o!ner and !ithout
e$idene of insura"ilit#) for a !hole life insurane poli# or
uni$ersal life insurane poli#%
*apital gains: 'rofit earned from the sale of stoks) mutual fund
units and real estate% 7ong5term apital gains arise from assets
o!ned for more than a #ear !hile short5term apital gains are made
from assets o!ned for less than a #ear%
*ompound Interest: Interest omputed on prinipal plus interest
arued during the pre$ious periods of the in$estment
*ritial illness rider: A rider that pro$ides a poli#holder finanial
protetion in the e$ent of a ritial illness
>6
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Endo!ment plans: An insurane plan that pro$ides a poli#holder
risk o$er and some return on in$estment%
Effeti$e rate of interest: The true rate as against the nominal rate)
!hih ma# "e inorret%
E/uit#: The atual o!nership interest in a speifi asset or group of
assets
+inanial planning: It o$ers the essential elements of a personGs
finanial affairs and is aimed at ahie$ing a personGs finanial goals%
+i&ed deposit: +unds plaed on deposit in a "ank) ompan# or post
offie at a fi&ed rate of interest%
+ae Amount: The amount stated on the fae of the poli# that !ill
"e paid in ase of death% It does not inlude additional amounts
pa#a"le under aidental death or other speial pro$isions) or
a/uired through the appliation of poli# di$idends%
+i&ed5inome in$estment: An# in$estment that pro$ides a stated
perentage of $alue) sa# 9 per ent) on the in$ested amount%
=roup Insurane: An insurane poli# taken out "# emplo#ers to
pro$ide life o$er to their emplo#ees% *heapest form of insurane
>9
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=uaranteed additions: The amount paid as returns in assured5return
insurane plans% =uaranteed additions are e&pressed as a perentage
of the sum assured) !ith the amount pa#a"le "eing stated "# the
insurer at the outset%
=rae 'eriod: 7ife insurane premiums are due on a ertain date) if
#ou are late in pa#ing) poliies allo! a period of time !here #ou an
still pa# #our premium and not lose #our pol#% This is the grae
period% Most poliies allo! a grae period of 8 da#s from the due
date% After the grae period) if the premium is not paid) the poli#
an lapse i%e% "e terminated "# the insurane ompan#%
Insura"ilit#: Aepta"ilit# to the ompan# of an appliant for
insurane% here Insured or Insured 7ife: The person on !hose life
the poli# is issued%
Immediate annuit#: An annuit# that starts pa#ments immediatel#
after) or soon after) the first premium is paid
Inde& fund: A sheme !hose portfolio mirrors the progress of a
partiular inde&) "oth in terms of omposition and indi$idual stok
!eight ages% ItGs a passi$e in$estment option) as a fundGs
>
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performane !ill mimi the inde& onerned) "arring a minor
traking error%
Insured: The poli#holder
Insurer: The insurane ompan#
In$estments: Assets like fi&ed deposits) post offie sa$ings) "onds
and stoks that are a/uired for the purpose of earning a return
In$estment risks: The risks that #our in$estments fae% These inlude
the risk of interest rate flutuations impating #our de"t in$estments
or the pries of e/uities going do!n%
@e# person life insurane: hen one has a ke# person in a "usiness
!ithout !hom the "usiness !ould suffer finaniall#) ke# person life
insurane is often purhased !hih helps to reim"urse the ompan#
for the "usiness loss inurred "# the death of this person%
7e$el 'remium 7ife InsuraneF: 7ife insurane for !hih the
premium remains the same from #ear to #ear% The premium is
normall# more than the atual ost of protetion during the earlier
#ears of the poli# and less than the atual ost in the later #ears% The
"uilding of a reser$e is a natural result of le$el premiums% The
>?
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7ife E&petan#: The a$erage num"er of #ears remaining for an
indi$idual to li$e sho!n at eah age "ased on long term studies "#
insurane ompanies% These statistis as sho!n on harts alled
mortalit# ta"les%%
7ife Insurane: A ontrat "et!een an o!ner often the insured
personF and a life insurane ompan# that guarantees the pa#ment of
a stated amount of mone# on the death of the insured%
7oan 'oli# 7oanF: A loan made "# a life insurane ompan# from
its general funds to a poli# o!ner on the seurit# of the ash $alue
of a poli#%
Market $alue: The monetar# $alue an asset !ill feth if sold in the
market toda#%
Maturit# date: The date on !hih a poli# term or fi&ed5inome
in$estment like fi&ed deposit or "ond omes to an end%
Mone#5"ak plans: A $ariant of endo!ment plans !here sur$i$al
"enefits are dis"ursed through the poli# term) than paid lump sum%
188
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2et asset $alue 2AF: A shemeGs 2A is its net assets the market
$alue of the finanial seurities it o!ns minus !hate$er it o!esF
di$ided "# the num"er of units it has issued%
2ominee: The personsF nominated "# the poli#holder to reei$e
the poli# "enefits in the e$ent of his death%
'artiipati$e plans: H!ith5profitG poli#
'ension 'lan: In$estment produts offered "# insurane ompanies
and mutual funds that re/uired the in$estor to make defined
ontri"utions o$er regular periods) mostl# e$er# #ear% The
ontri"utions are in$ested aording to a pre5deided in$estment
plan% At retirement) the aumulation is paid out through regular
pa#5out options%
'eriodi pa#ment in$estments: In$estment options that ha$e pa#outs
in fi&ed inter$als% +or e&le) mone#5"ak life insurane poliies%
'ermanent partial disa"ilit#: 'ermanent loss of an# "od# part) one
e#e) one lim" or one finger or a toe) or in(uries that render the
insured in apa"le of earning an inome from the date of the aident
on!ards from an# !ork) oupation or profession%
181
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'ermanent total disa"ilit#: 'ermanent loss of use of an# t!o lim"s)
or permanent and omplete loss of sight in "oth e#es or an# other
in(ur# that renders the insured inapa"le of earning an inome%
'oli#: The legal doument issued "# an insurane ompan# to a
poli#holder that states the terms and onditions of an insurane
ontrat%
'oli#holder: The person !ho "u#s an insurane poli# as insured%
'oli# term: period for !hih an insurane poli# pro$ides o$er
'ost offie shemes: Also kno!n as Small Sa$ings shemes) the# are
offered at post offies and arr# the highest returns among fi&ed
inome instruments% =o$ernment "aking makes these instruments
like 'u"li 'ro$ident +und ''+F) 2ational Sa$ings *ertifiate
2S*F) @isan ikas 'atra @'F and 'ost Offie Monthl# Inome
Sheme 'OMISF risk5free
'remium: The amount paid "# the insured to the insurer to "u# o$er
3eurring deposit: This is offered "oth in post offie and "anks
!here #ou are re/uired to ontri"ute a fi&ed amount e$er month% It is
a great tool for making small and regular sa$ings%
18-
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3e$ol$ing redit: A pre5esta"lished redit line) t#piall# in a redit
ard) against !hih a person ma# "orro! to make purhases%
3iders: Additional o$ers that an "e added to a life poli#) for a ost
Sum assured: The amount of o$er taken under a life insurane
poli#) it is the minimum amount that !ill "e paid on death of the
poli#holder during the poli# term%
Surrender $alue: The amount pa#a"le "# the insurer to the o!ner of
an in$estment5"ased plan in ase he opts to terminate the poli# after
three #ears the mandator# lok5in periodF "ut "efore its maturit#
date%
Sur$i$al "enefits: The amount pa#a"le to a poli#holder under an
in$estment5"ased plan if he sur$i$es the poli# term%
Temporar# total disa"ilit#: An in(ur# that results from an aident
and renders a person immo"ile or affets his earning apait#
temporaril#%
Term plans: A plan that pro$ides life o$er for a speified period of
time) "ut no return on the premia paid
Terminal "onus: one5time "onus paid on maturit# $ia!ith5profit plan
18
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esting date: It is a date signif#ing a milestone in a poli#% In
pension plans) it is the date from !hih the poli#holder starts
reei$ing pension% In hildrenGs plans) it is the date from !hih a
hild "eomes the o!ner of a poli# taken out in his name
generall#) around his 1?th "irthda#F%
ai$er of premium rider: A rider that !ai$es the premia pa#a"le on
the "ase poli# and other riders in ertain irumstanes mostl#
related to death) disa"ilit# or in(ur#% An important feature espeiall#
for in$estment produts suh as hildrenGs poliies%
ealth: The differene "et!een the $alue of !hat #ou o!n assetsF
and !hat #ou o!e lia"ilitiesF%
ith5profit poli#: An insurane plan in !hih the poli#holder gets
a share of the insurerGs profits in the form of guaranteed additions ,
"onusF% Along !ith the sum assured%
ithout5profit poli#: An insurane plan in !hih the poli#holder
does not get an# share of the insurerGs profits
hole5life plans: *lass of life insurane poliies that pro$ide o$er
through #our lifetime%
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Mutual life insurane ompan#: A life insurane ompan# o!ned "#
the poli#holders% 'oli#holders of a mutual life insurane ompan#
ma# partiipate in the di$isi"le surplus of the life insurane
ompan# as o!ners% The# an reei$e di$idends) most ommonl#
on !hole life poliies) !hih an enhane the ash $alue) inrease
the insurane amount or lo!er premiums%
O!ner of a life insurane poli#: A life insurane poli# an "e
o!ned "# the insured person or an indi$idual) a ompan# or a trust
!ith an insura"le interest in the insured person% Insura"le interest
means there !ould "e a finanial loss "# the o!ner in the e$ent of
the death of the insured person%
'aid5up Insurane: Insurane that !ill remain in fore !ith no need
to pa# additional premiums%
'artiipating 'oli#: A life insurane poli# that is eligi"le for the
pa#ment of di$idends "# the insurer see also Di$idend%F
'ermanent 7ife Insurane: An# form of life insurane e&ept term
generall# insurane that "uilds up a ash $alue) suh as !hole life%
Uni$ersal life and !hole life are t#pes of permanent life insurane%
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'oli# O!ner: The person !ho o!ns a life insurane poli#% This is
usuall# the insured person) "ut it ma# also "e a relati$e of the
insured) a partnership or a orporation%
'remiums: 'a#ments to the insurane ompan# to "u# a poli# and
to keep it in fore%
3ene!a"le Term Insurane: Term insurane !hih an "e rene!ed at
the end of the term) at the option of the poli# o!ner and !ithout
e$idene of insura"ilit#) for a limited num"er of suessi$e terms%
The rates generall# inrease at eah rene!al as the age of the insured
inreases%
3eturn of premium life insurane: Also kno!n as return of premium
term life insurane) this is term life insurane for a period of time
!here one reei$es a guaranteed return of premiums paid if #ou keep
the poli# for the term period% +or e&le) -8 #ear return of
premium term !ould guarantee a return of premium paid after #ou
paid -8 #ears of premium% Most of these poliies also gi$e a partial
return of premium if #ou keep the poli# for a great part of the #ears%
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Seond to die life insurane: 7ife insurane that pa#s the "enefit
after t!o people die% See sur$i$orship life insurane in this glossar#%
Stok life insurane ompan#: A stok life insurane ompan# is
o!ned "# stokholders% *ontrast this !ith mutual life insurane
ompan#%
Sur$i$orship life insurane: 7ife insurane purhased on t!o
indi$iduals) usuall# man and !ife) !here the life insurane "enefit is
paid after "oth indi$iduals ha$e died% This t#pe of life insurane
"eame popular as a solution to pa#ing estate ta&es% The estate ta&
la! allo!ed a ouple to dela# pa#ing estate ta&es until "oth had died%
Thus) sur$i$orship life insurane "eame popular as a less e&pensi$e
!a# for heirs to pa# estate ta&es% The premiums are less than "u#ing
life insurane on one life% B# pa#ing premiums no! the theor# is
that one an pre5pa# the estate ta&es "eause of the lump sum that
omes in after the seond death% %
Term life Insurane: Term insurane is life insurane o$erage for a
speified period of time% This an "e at a guaranteed rate or in some
ases a guaranteed rate for a period of time and then a pro(eted rate%
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Term periods an "e for 1 #ear) 4 #ears) 18 #ears) 14) -8 and e$en 8
#ears% +or e&le: 8 #ear le$el term !ould guarantee a le$el
premium for 8 #ears "ased on a speified death "enefit% Term life
insurane is usuall# the least e&pensi$e form of life o$erage) at least
initiall#% After the initial term period of #ears) 4)18)14) -8) 8 et% the
poli# ould terminate or it an rene! at a higher premium%
If #ou are allo!ed to rene! it at a higher premium "ased on #our
then attained ageF) it is alled rene!a"le term life insurane%
Uni$ersal life insurane: Uni$ersal life insurane is permanent life
insurane !ith premiums that are not guaranteed% To a ertain
degree one an design a premium on this t#pe of poli#%
Uni$ersal life insurane often an "e set up !ith a lo!er premium
initiall# than !hole life insurane%
'remiums and $alues are "ased on pro(etions of assumed interest
rates) the ost of insurane also kno!n as mortalit# ostF and the
insurane ompan#Ks e&penses% The atual premium paid ma#
inrease "eause interest rates ma# go lo!er or the pro(eted ost of
insurane ma# inrease%
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ai$er of premium: This is an e&tra or add5in alled a rider in
insurane lingoF that an "e added to most indi$idual life insurane
poliies !hih !ai$es allo!s #ou to stop pa#ingF the pa#ment after
the insured person has "een disa"led as desri"ed and defined in the
insurane poli#F for a speified period of time) usuall# si& months%
At that time) the si& months premium paid along !ith future
premium pa#ments are !ai$ed%
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