School of Management Studies - Copy

8/8/2019 School of Management Studies - Copy

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SCHOOL OF MANAGEMENT STUDIES

SUMMER INTERNSHIP PROJECT

MAY JULY 2010

ANSAL INSTITUTE OF TECHNOLOGY

SECTOR-55

GURGAON


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PROJECT ON

Building a chain marketing team

to enhance marketing channel

Submitted in partial fulfillment of the requirements for award of

Master of Business Administration of

Tilak Maharashtra University, Pune.

SUBMITTED BY:

VIVEK GUPTA

PRN No.

Of

Ansal Institute of Technology

Gurgaon

Guided By Prof._____________________

Tilak Maharashtra University

Gultekdi, Pune 411037


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Tilak Maharashtra University, Pune

(Deemed Under Section 3 of UGC Act 1956 Vide Notification No. F.9

19/85-U3 dated 24th

April 1987 By the Government of India)Vidhyapeeth Bhavan, Gultekdi, Pune-411037

CERTIFICATE

This is to Certify that the project titled __________________________________ is a bonafidework carried our by Mr. VIVEK GUPTA a student of Master of Business Administration Semester

3rd

, Specialization ____________________PRN.__________________ under Tilak MaharashtraUniversity, in the year 2010.

Head of the Department Examiner Examiner

Internal ExternalDate:

Place: University Seal


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Certificate of Internal Guide

This is to certify that the project ti

is a bonafide work carried out by

. a candidate for the award of Master of Business

Administration of Tilak Maharashtra University, Pune under my guidance and

direction.

Signature of Guide

Date: Name:

Designation:

Place: Institute:


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CERTIFICATE

TO WHOMSOVER IT MAY CONCERN

This is to certify that Mr. VIVEK GUPTA MBA Student ofTilak Maharashtra University,

Pune has successfully collected the data for the project report for award ofMaster Degree of

Business Administration.

He has done the project on ___________________________________________

Company Name Company Seal

Designation

Signature


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ACKNOWLEDGEMENT

I would like to express my sincere thanks to the management of HDFC STANDARD LIFEINSURANCE COMPANY LTD. who gave me the opportunity to work and study in such an

esteemed organization.I express my thanks to MR. HIMANSHU SHARMA (Sr. Manager - Channel Development) of

HDFC Standard Life Insurance Company Ltd. Company under whose constant guidance I completedmy project.

I also express my gratitude to Ms. AMITA PASRICHA (Faculty Guide) who has also been myfaculty for marketing. Last but not the least, I would like to thank all the respondents for giving their

precious time and relevant information and experience, I required, without which the project wouldhave been incomplete.

VIVEK GUPTA


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RATIONALE STUDY

The insurance industry India has been progressing at a rapid pace since opening up ofthe industry in 2000. The distribution Landscape is strewn with opportunities and

challenges. Obviously, to make the most of the opportunities insurance companies willfirst have to overcome the challenges. The rationale for this study is to identify the

trends, progress and performance of distribution channel in insurance industry.Deregulations in India has resulted in increased number of players in the market and

hence the competition. This competition has brought about a change in the existingdistribution channels. The new types of distribution channels are wider and are

expected to be more technology oriented for the urban population in future. There alsoexists a vast potential for new types of companies coming into the market that support

the existing structure of the industry such as agency management systems and the

brokerage firms.

There are multiple challenges faced by the insurance companies, of which two are

critical:

y Designing of products suiting the market.y Using the right distribution channel to reach the customer.

While the companies have been quite successful in dealing with the first of these

challenges using the existing product features and leveraging the technical know- how

of their partners, most are still grappling with the right channel mix for reachingpotential customers. In todays scenario, insurance companies must move from sellinginsurance to marketing an essential financial product. The distributors have to become

trusted financial advisors for the clients and trusted business associates for theinsurance companies.


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EXECUTIVE SUMMARY

From a modest beginning of Rs 7.1 cores in home loan approvals in its first year ofoperations to over Rs. 1,00,000 crores in cumulative home loan approvals in 28 years,

HDFC has come a long way. As an institution that introduced an unknown concept inthe late 1970s, it has defined and spearheaded many of the changes that have given

shape to the housing industry through the years and has turned the dream of owning ahome into reality for over 2.7 million families across the country.

The journey began as a thought that took shape in the mind of HDFCs founder

Chairman, Mr. H.T. Parekh, who laid a solid foundation. This thought grew to becomea reality in the form ofHDFC to enable Indian households access housing in their

prime earning days through institutional finance. At the time of its commencement,HDFC was the first private sector housing finance institution in India. Since the early

years, it clearly defined the companys core values - integrity, transparency and trust,ingraining it throughout the organization and in all its activities. It focused on a future

that it needed to make, rather than wait for it to happen and went on to transform theconcept of providing retail finance to middle class families in India into a world-class

institution. Its success encouraged the creation of a number of housing financeinstitutions in India.

The primary objective of the project is to study, understand and analyze various

aspects related to the Investment patterns of Trusts and Societies. The research is

based on the information collected by the help of the questionnaires filled by variousTrusts and Societies visited. The questionnaire was formulated with the aim of findingabout the preferences of the societies when they go in for the investment of surpluses

generated by them. Due to lack of time the survey was limited to South Delhi. I visitedover 250 Trusts and Societies during my survey. An attempt was made to judge on the

basis of the response generated, the scope to expand the services ofHDFC Ltd. in thearea of Trust Deposit. The survey helped to draw a general trend of the investment

pattern of the Trusts and Societies.


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CONTENTS

Sr. No. PARTICULARS.

1) INTRODUCTION.

2) THEORY DISCUSSION.

3) COMPANY PROFILE.

4) THE PARTNERSHIP.

5) S.W.O.T. ANALYSIS.

6) IRDA AND ITS GUIDELINES.

7) RESEARCH DESIGN.

8) CONCLUSIONS.

9) RECOMMENDATIONS.

10) LIMITATIONS.

11) BIBLIOGRAPHY.


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INTRODUCTION

The history of life insurance in India dates back to 1818 when it was conceived as ameans to provide for English Widows. Interestingly in those days a higher premium

was charged for Indian lives than the non-Indian lives, as Indian lives were consideredmore risky for coverage.

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

as it provides long-term funds for infrastructure development and at the same timestrengthens the risk taking ability. It is estimated that over the next ten years India

would require investments of the order of one trillion US dollar. The Insurance sector,to some extent, can enable investments in infrastructure development to sustain

economic growth of the country.

With the radical changes in the new era of Insurance, General Public is becomingmore and more conscious of the services and facilities the different Insurance

Companies are providing. The face of Sales Promotion has also completely changed inorder to position the product accurately and to increase the brand image in the eyes of

the customers. Several methods are being used like day-to-day promotional activitiessuch as employing more agents, offering discounts, trade promotion, other

promotional activities and so on. To face the challenges of a highly dynamic andincreasingly complex competitive environment and to take advantage of emerging

opportunities, firms need to possess unprecedented capabilities in understanding andresponding to competition. In fact, a firms success largely depends on its ability to

quickly identify threats and opportunities, respond rapidly to changes in competitorsstrategies and improve the overall effectiveness of the planning process. For this they

have to develop detailed information about competitors characteristics, activities,costs and strategies.

At the same time, firms have to recognize the fact that every competitor has virtually

the same access to every information because of advanced technology. Therefore, themarketers success depends on his ability to make information work for him- the

conversion of information into actionable intelligence.

My project was about to recruits a lot of financial consultant for the organization andwhole study of HDFCSLIC which gives you lot of knowledge about company.

Because if you have not analyze that which product of HDFC is better for thecustomer and which is not, what is the strength , weakness ,threats and opportunity

than you do better for the company. I used both primary and secondary data to make adatabase of people I had to target.


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In the first month of my summer training I did a survey purely targeting customers forbeing financial consultants.

In the second month of the summer training I included other people as well in thedatabase. I used a semi-structured kind of questionnaire that contained both close-ended and multiple-choice questions in order to have an insight into the needs, family

structure, social contact base and drives of the people I met. I also made cold calls to people to know if they were interested in investing in the plans and policies being

offered by the company, take appointments if they were positive and then meet thempersonally. The response was a combination of affirmative as well as negative answers

due to various reasons.

OBJECTIVE OF THE STUDY

The main objective of this project is to identify the progress and performance of

distribution channel in insurance industry and also to gain firsthand experience of howan organization works and to get familiar with the working and structure of theorganization.

The following are primary objective of study:

y To understand what is distribution channel and to understand how does itwork.

y To understand the importance of distribution channel.y To know the role of distribution channel in life insurance industry.y To understand the functioning of life insurance industry.y To know the origin and history of life insurance companies.y To gain experience in different environment with different people.y At the time to show the integration of the various business process.


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SCOPE OF THE STUDY

Development of industries depends on several factors such as financial, technology,quality of the services and social responsibility. Out of these, marketing aspectsassume a significant role in determining the growth of industries which in turn relate

to distribution channels. All of the organization operation virtually affects its needs forcash that create aims to explore its product. The main purpose of this project is to

identify the trends, progress and performance of marketing channel in insuranceindustry. Deregulation in India has resulted in increased number of players in the

market and hence the competition. This competition has brought about a change in theexisting distribution channels. The new types of distribution channels are wider and

are expected to be more technology oriented for the urban population in future. Therealso exists a vast potential for new types of companies coming into the market that

support the existing structure of the industry such as agency management systems andbrokerage firms.


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THEORY DISCUSSION

SERVICE MARKETING

Services marketing is marketing based on relationship and value.

Marketing a service-based business is different from marketing a product-base business.

There are several major differences, including:

1. The buyer purchases an intangible product.2. The service may be based on the reputation of a single person.3. It's more difficult to compare the quality of similar services.4. The buyer cannot return the service.

When one markets a service business, she or he must keep in mind that reputation, value,

delivery of service and follow-through are keys to a successful venture.

Key attributes

Services are said to have several key attributes:

y Intangibility - They cannot be seen, handled, smelled, etc. There is no need forstorage. Because they are difficult to conceptualize, services marketing require creative

visualizations to effectively make the intangible more concrete. From the customers

point of view, this makes it difficult to evaluate or compare services prior to experiencing

the service.


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y Perishability- Unsold service time is "lost", that is, it cannot be regained. It is a lost

economic opportunity. For example a doctor who is booked for only two hours a day can

never regain that economic opportunity.

y Lack of transportability- Services must be consumed at the point of "production".

y Lack of standardization - Services are typically custom designed for each client oreach new situation. Mass production of services is very difficult. This can be seen as a

problem of inconsistent quality. Both inputs and outputs are highly variable making it

difficult to maintain consistent quality.

y Labour intensity - Services usually involve considerable human activities. Humanresource management is important. The human factor is often the key success factor in

service industries. It is difficult to achieve economies of scale or gain dominant market

share.

y Demand fluctuations - It is very difficult to estimate demand. Demand can vary byseason, time] of day, business cycle, etc.

y

Buyer involvement - Most service provision requires a high degree of interaction

between client and service provider.


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LIFE INSURANCE is one such service product.

y Life insurance provides financial protection to your family against risks and unfortunateevents.

y Life insurance provides for your family exactly when they need it most.

y Life insurance ensures that even if you are not around to save, your goals and aspirations aremet.

y Life insurance forces you to save regularly.y Life insurance provides returns on your savings.

\


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COMPANY PROFILE

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name ofHDFC Standard Life

Insurance Company Limited. Our ambition from as far back as October 1995 was to be the first

private company to re-enter the life insurance market in India. On the 23rd of October 2000, this

ambition was realized when HDFC Standard Life was the only life company to be granted a

certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns

18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum

investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and trust.

The ambition ofHDFC Standard Life is to mirror the success of the parent companies and be the

yardstick by which all other insurance company's in India are measured.

HDFC Standard Life Insurance LTD. Mission and Values

Mission Statement:

We aim to be the top new life insurance company in the market. This does not just mean being

the largest or the most productive company in the market; rather it is a combination of several

things like-

y Customer service of the highest order

y Value for money for customers


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y Professionalism in carrying out business

y Innovative products to cater to different needs of different customers

y Use of technology to improve service standards

y Increasing market share

Values:

y SECURITY: Providing long term financial security to our policyholders will be ourconstant endeavor. We will be doing this by offering life insurance and pension products.

y TRUST: We appreciate the trust placed by our policyholders in us. Hence, we will aim tomanage their investments very carefully and live up to this trust.

y INNOVATION: Recognizing the different needs of our customers, we will be offering arange of innovative products to meet these needs.


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THE PARTNERSHIP

HDFC and Standard Life first came together for a possible joint venture, to enter the Life

Insurance market, in January 1995. It was clear from the outset that both companies shared

similar values and beliefs and a strong relationship quickly formed. In October 1995 the

companies signed a 3-year joint venture agreement. Around this time Standard Life purchased a

5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and ongoing

delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in

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

In October 1998, the joint venture agreement was renewed and additional resource made

available. Around this time Standard Life purchased 2% of Infrastructure Development Finance

Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury

department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies

agreed the time was right to move the operation to the next level. Therefore, in January 2000 an

expert team from the UK joined a hand picked team from HDFC to form the core project team,

based in Mumbai. Around this time Standard Life purchased a further 5% stake in

HDFC and a 5% stake in HDFC Bank.

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

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

July 2000.


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A brief history of HDFC Limited and Standard Life Assurance Company:

THE HOUSING DEVELOPMENT FINANCE CORPORATION:

Founded in 1977, HDFC is Indias largest housing finance institution. It has helped finance

millions of homes through its extensive branch network covering the length and breadth of the

country. HDFC also maintains an international presence through it various service associates and

an international office. HDFC has received the AAA rating from CRISIL and ICRA. Over the

years, it has won many awards and accolades, and has promoted several group companies to

meet investors and customers needs.

The HDFC umbrella:

HDFC Limited

HDFC Bank Limited

HDFC Asset Management Company Limited

HDFC Securities Limited

HDFC Realty Limited

HDFC Chubb General Insurance Company Limited


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Standard Life Assurance Company (SLAC):

Standard Life is Europes largest mutual life assurance company. Founded in 1825,it has

received high rating from Standard & Poors and Moodys. Standard Life also has the distinction

of being voted the Company of the Decade by independent financial advisors in U.K.

Investment philosophy of HDFCSLIC Ltd.:

Our approach is to be prudent and to generate good investment returns over the long term. E

shall use the expertise of our parent companies to invest in assets that are secure and offer good

prospects for long-term growth. We shall invest at least 50% of our assets in central government

bonds and other approved securities. Including these, at least 85% of our assets will be invested

in approved investments including good quality corporate debt.

Individual Products

Plan Benefits

Savings Plans

Endowment Assurance PlanLife Insurance with Savings

Unit Linked Endowment Plan

Life Insurance & Savings with choice of investment

funds

Childrens PlanFinancial Security for your child

Unit Linked Young Star PlanFinancial security for your child with choice of


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investment funds

Money Back PlanLife Insurance with Savings

Investment Plans

Single Premium Whole Of Life PlanInvestment with Life Insurance

Protection Plans

Term Assurance PlanLife Insurance at an affordable price

Loan Cover Term Assurance PlanLife Insurance customized for home loans

Retirement Plans

Personal Pension Plan Savings for retirement

Unit Linked Pension Plan

Retirement Savings with a choice of investment

funds

An analysis of the benefits and feature of theUnit Linked Young Star Plan:

The future of your child is most important to you. You need to plan today to ensure a bright

future for your child, whether it is education, marriage or establishing a professional career. The

ULYS plan helps you do all this.

The plan is affordable, customised to your needs and above all, enables you to realise your

dreams for your child. This plan is well suited for the value-conscious customer, and above all,

for every loving parent. The plan can also be chosen by grandparents, other relatives or any adult

for the benefit of a child.


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What is the Unit Linked Young Star Plan?

HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity.

It also provides financial security to the child in the future, even in case of the insured parent's

unfortunate death during the policy term. The Unit Linked Young Star Plan also gives the option

of additional protection against the six common critical illnesses.

The premiums are invested in units of the investment funds of your choice, based on the

prevailing unit prices. On maturity the value of the units will be paid. On death (or critical

illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity.

Following a valid death or critical illness claim, we will pay the future premiums (at the level

originally chosen at inception) into your policy, as and when they would have fallen due.

What is the Premium structure?

You agree to pay a level premium regularly, either quarterly, half-yearly or annually, throughout

the term of the policy. The minimum premium amount is Rs. 10,000 each year. To facilitate

increased investment, additional single premium top-ups are allowed at any time. The minimum

single premium top-up is Rs. 5,000 Premiums can be paid by cash, cheque or demand draft.

What investment funds are available?

The policy is fully unitised with a range of funds to match your needs and approach to risk. (By

risk we mean the likely volatility in the value of units in the fund.) Each investment fund is

composed of units. All the units in a fund are identical. You can choose from the following

funds:


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Liquid fund

The Liquid fund invests 100% in bank deposits and high quality short-term money market

instruments. The fund is designed to be cash secure and has a very low level of risk; however

unit prices may occasionally go down due to the use of short-term money market instruments. At

inception, investments up to 20% can be allocated to this fund.

Secure Managed

The Secure Managed fund invests 100% in Government Securities and Bonds issued by

companies or other bodies with a high credit standing, however a small amount of working

capital may be invested in cash to facilitate the day-to-day running of the fund. This fund has a

low level of risk but unit prices may still go up or down.

Defensive Managed

15% to 30% of the Defensive Managed fund will be invested in high quality Indian equities. The

remainder will be invested in Government Securities and Bonds issued by companies or other

bodies with a high credit standing. In addition, a small amount of working capital may be

invested in cash to facilitate the day-to-day running of the fund. The fund has a moderate level of

risk with the opportunity to earn higher returns in the long term from some equity investment.

Unit prices may go up or down.


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Balanced Managed

30% to 60% of the Balanced Managed fund will be invested in high quality Indian equities. The

remainder will be invested in Government Securities and Bonds issued by companies or other

bodies with a high credit standing. In addition a small amount of working capital may be

invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of

risk with the opportunity to earn higher returns in the long term from the higher proportion it

invests in equities. Unit prices may go up or down.

Growth fund

The Growth fund invests 100% in high quality Indian equities. In addition a small amount of

working capital may be invested in cash to facilitate the day-to-day running of the fund. The

fund has a higher level of risk with the opportunity to earn higher returns in the long term from

the investment in equities. Unit prices may go up or down.

The past performance of any of the funds is not necessarily an indication of future performance.

There are no investment guarantees on the returns of unit linked funds. None of the funds

participate in the profits ofHDFC Standard Life Insurance Company Limited or any of its

policyholder funds.

Switching money to any fund is also allowed?

You can switch your existing investments from your any of your unit linked funds, to any other

available unit linked fund. You can also give us a premium redirection instruction to redirect

future premiums to different unit linked funds.


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The Benefits?

There are 2 different options available:

1. Life Option

This option consists of a Maturity Benefit and a Death Benefit.

y The Maturity Benefit will pay the value of the unit-linked fund at the end of the policyterm.

y The Death Benefit will pay the basic Sum Assured on death of the life assured during thepolicy term. Following payment of this benefit, no further premiums are due from the

policyholder.

y Following a valid death claim, we will pay future premiums on your behalf, as and whenthey become due. The level of premium will be that chosen by you at inception of the

policy.

2. Life and Health Option: This option consists of a Maturity Benefit, a Death Benefitand an Extra Health Benefit.

y The Maturity Benefit will pay the value of the unit-linked fund at the end of the policyterm.


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y The Death Benefit will pay the basic Sum Assured on death of the life assured during the

policy term. Following payment of this benefit, no further premiums are due from the

policyholder and the Extra Health Benefit will lapse without value.

y The Extra Health Benefit will pay the basic sum assured on diagnosis of any one of sixcritical illnesses during the policy term. Following payment of this benefit, no further

premiums are due from the policyholder and the Death Benefit will lapse without value.

The illnesses covered under thisbenefit are cancer, coronary artery by pass graft

surgery, heart attack, kidney failure, major organ transplant (as recipient) and

stroke.

y Following a valid death or critical illness claim, we will pay future premiums on yourbehalf, as and when they become due. The level of premium will be that chosen by you at

inception of the policy.

What levels of protection are available?Depending on your age at entry, you may choose between 3 levels cover Low, Medium orHigh. For each level the Sum Assured is based on the annual amount of premium you choose at

inception.

Age at

Entry

Levels of Cover

Low Medium High

18 to 40 5 x Premium 10 x Premium 20 x Premium

41 to 50 5 x Premium 10 x Premium

Over 51 5 x Premium


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The level of sum assured can be reduced during the life of the contract but restricted to the

available multiples of annual premium chosen at the inception of the policy and using the age of

the life assured at entry.

The child is the beneficiary under the policy. In case the child is a minor, the proceeds should go

to the appointee. Once the child attains 18 years of age, he will be the sole person entitled to the

policy proceeds.

The benefits will be paid by cheque.

Eligibility criteria?The age and term limits for taking out a Unit Linked Young Star Plan are: (years)

Minimum

Term

Maximum

Term

Minimum

Age at

Entry

Maximum

Age at

Entry

Maximum

Age at

Expiry

Life Option 10 25 18 60 75

Life and

Health

Option

10 25 18 55 65

Altering the level of my premiums?Regular premiums can be increased at any time.

If needed, the policyholder can reduce the regular premium levels (even to zero i.e. the policy is

converted to pay up status) provided:

y 3 years of regular premiums have been paidy The monetary value of the unit holding across all funds is at least Rs 15,000.

You can pay additional single premium top-up(s) at any point of time.


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What happens in case of surrender of the policy?The policyholder can surrender the policy at any point of time during the contract term. The

amount payable will be the unitised fund value after applying additional surrender charges

mentioned below.

When can a person access his money?One can make lump sum withdrawals from his funds provided the fund balance after withdrawaland charges does not fall below Rs. 15,000. The minimum withdrawal amount is Rs.10, 000.

In case of stopping the premium amount.

This product has a grace period of 15 days for the payment of each premium after the initial

premium. If you stop paying premiums, before you have paid 3 years of annual premiums, we

will cancel your policy and return to you the value of your unitised fund, less cancellation

charges.

If, after three years, you are unable to pay the premiums, you have the option to make the policy

paid-up, provided the policy has accumulated sufficient policy value. Currently, this amount will

be Rs. 15,000.

If you make your policy paid up you will continue to be protected according to the benefits you

selected. To provide this cover, we will continue to collect our usual charges on each monthly

charge date. It is important to note that if no further premiums are paid, this may reduce the value

of your fund over time, or even exhaust it completely. A paid-up policy can be reinstated to

premium paying status at any point of time in the future.

If the fund value of a paid-up policy falls below Rs. 15,000 we will cancel the policy and return

to you the fund value, less cancellation charges.


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Tax Benefits?

Tax benefits under Section 88 and Section 10 (10D) of the Income Tax Act, 1961 are applicable.

ChargesThe following charges will be deducted from the policy to cover costs.

A percentage of each premium is invested to buy units; this percentage is called the Investment

Content Rate.

The rates are as follows:

Premium paid Investment Content Rate (ICR)

Regular - Year 1 73%

Regular - Year 2 73%

Regular - Year 3+ 99%

Regular Premium Increases 99%

Single Premium Top-Up 99%

The unit price each day will include a fund management charge. This charge is 0.80% of the

fund value per annum taken on a daily basis.

A flat fee of Rs.15 per month will be deducted by cancellation of units on each monthly charge

date. This will be proportioned across funds according to the fund holdings at the time of

cancellation of units.

Risk benefits will be charged for by cancelling units on each monthly charge date, based on the

person's age at that time.


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On cancellation or surrender of the policy before 3 years of regular premiums have been paid,

25% of the outstanding premiums due during this 3-year period will be charged.

Exclusions

No benefit will be paid if the death has occurred directly or indirectly as a result of suicide within

one year from the date of first being covered under the policy.

No Extra Health Benefits if the critical illness has occurred within 6 months of the start of the

contract.

No Extra Health Benefits will be given if they do not receive a duly completed claim form within

26 weeks of the illness, disability, operation or other circumstances giving rise to the claim.

no Extra Health Benefits if the critical illness is caused directly or indirectly by any of the

following:

y Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.

y Alcohol or solvent abuse, or the taking of drugs except under the direction of a registeredmedical practitioner.

y War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolutionor taking part in a riot or civil commotion.


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y Taking part in any flying activity, other than as a passenger in a commercially licensed

aircraft.

y Taking part in any act of a criminal nature.

y Pregnancy or childbirth or complications arising there from.

General Information:

Unit Prices: The unit price of a fund will be set by dividing the value of the assets in the fund at

the valuation time by the number of units in existence for the fund. The resulting price will be

rounded to the nearest Rs.0.0001. The value of the assets will be calculated as the Market or Fair

Value of the funds Investments plus Current Assets (including accrued income) less Current

Liabilities and Provisions (including accrued expenses). This price will be published on our

company's website.

Alteration to Charges

No changes can be made to our current charges without prior approval from

the Insurance Regulatory and Development Authority.

The following are the maximum caps on each of the different type of charges: The fund

management charge will not exceed 2% per annum; the flat fee can be altered from the value at

inception increased in line with inflation subject to a maximum of 5% per annum over the period

since inception; up to 5 switches will be free in a year, any additional switch can be charged up

to 2% of the switched amount; premium redirection and other ad hoc policy servicing requests

can be charged up to Rs. 250 per request increased in line with inflation subject to a maximum of


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5% per annum over the period since inception; the surrender charge can vary upto 100% of

outstanding regular premiums due in the first 3 years. The mortality charge rates are guaranteed

for the term of the policy.

Prohibition of rebates: Section 41 of the Insurance Act, 1938 states:

1. No person shall allow or offer to allow, either directly or indirectly, as an inducement toany person to take out or renew or continue an insurance in respect of any kind of risk

relating to lives or property in India, any rebate of the whole or part of the commission

payable or any rebate of the premium shown on the policy, nor shall any person taking

out or renewing or continuing a policy accept any rebate, except such rebate as may be

allowed in accordance with the published prospectuses or tables of the insurer.

2. Any person making default in complying with the provisions of this section shall bepunishable with fine, which may extend to five hundred rupees.

THE TAX BENEFITS at a glance:

INCOME TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

HDFC STANDARD LIFE

PLANS

Sec. 80CAcross All

income Slabs.

Upto Rs. 33,660 saved on

investment of Rs.

1,00,000.

All the life insurance plans.

Sec. 80 CCCAcross all income

slabs.


Investment of Rs. 10,000.All the pension plans.


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Sec. 80 D*Across all income

slabs.


Investment of Rs. 10,000.

All the health insurance

riders available with the

plans.

TOTAL

SAVINGS

POSSIBLE **

Rs. 37,026

Rs. 33,660 under Sec. 80C and under Sec. 80 CCC, Rs.3, 366 under Sec. 80

D, calculated for a male with gross annual income exceeding Rs. 10,00,000.

* Applicable to premiums paid for CI, ASA and WOP.

** These calculations are illustrative and based on our understanding of current legislations and

Income Tax rules.

Please contact your tax consultant for exact calculation of your tax liabilities.


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OBSERVATIONS

COMPETITIVE ADVANTAGE

S.W.O.T ANALYSIS

Environmental Scan

Internal Analysis External Analysis

Strength Weaknesses Opportunities Threats

SWOT Matrix

Strengths

y Strong brand name.y Customer loyalty.y Product Quality.y Good reputation among customers.Weaknesses

y Insufficient product promotion.y Unawareness about the product.Opportunity

yAn unfilled customer need.

Threat

y Emergence of substitute products.y Resistance to change.


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y Non- response from the target customers.Checklist for Performing Strengths /Weaknesses Analysis:

MarketingPerformance Importance

Major

strenth

Minor

Strenth

Neutral

Major

weakness

Minor

weakness

High

Medium

Low

1. Companyreputation

2. Market share 3. Customer

satisfaction

4. Customerretention

5. Product quality 6. Service quality 7. Distribution

effectiveness

8. Promotioneffectiveness

9. Sales forceeffectiveness

10.Geographicalcoverage


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IRDA AND ITS GUIDELINES

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority

(IRDA, which was constituted by an act of

parliament) specify the composition of Authority

The Authority is a ten member team consisting of

(a) a Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..

(1) Subject to the provisions of this Act and any other law for the time being in force, the

Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance

business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers

and functions of the Authority shall include, -

(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel

such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of policy,

nomination by policy holders, insurable interest, settlement of insurance claim, surrender value

of policy and other terms and conditions of contracts of insurance;


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(c) specifying requisite qualifications, code of conduct and practical training for intermediary or

insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors;

(e) promoting efficiency in the conduct of insurance business;

(f) promoting and regulating professional organizations connected with the insurance and re-

insurance business;

(g) levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries and other

organizations connected with the insurance business;

(i) control and regulation of the rates, advantages, terms and conditions that may be offered by

insurers in respect of general insurance business not so controlled and regulated by the Tariff

Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

(j) specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries;

.

Insurance Agents/Financial consultants An insurance agent is a person who sells

insurance policies after training and certification. They sell three basic types of insurance, life

insurance, property-liability and health insurance.


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The tasks:

y Helping individuals or companies select the right policy for their needs.y Planning for the financial security of individuals, families, and businesses, advise about

insurance protection for an automobile, home, business, or other property

y Preparing reports and maintain recordsy Helping a policy holder obtain settlement of an insurance claim.

Insurance agents have to undergo training. Initial stipends and pocket expenses form part of the

initial packet to the agent in addition to the commission.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,

NEW DELHI.

NOTIFICATION

New Delhi, the 14th July, 2000

Insurance Regulatory and Development Authority (Licensing of Insurance Agents)

Regulations, 2000

F.No.IRDA/Reg./7/2000.--

In exercise of the powers conferred by sub-section (6) of section 42 and clauses (k), (l),

(m), (n), (o) and (p) of sub-section (2) of section 114A of the Insurance Act, 1938 (4 of 1938),

the Authority, in consultation with the Insurance Advisory Committee, hereby makes the

following regulations, namely:-


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1. Short title and commencement.--(1) These regulations may be called Insurance

Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.-In these regulations,unless the context otherwise requires, -

(a) Act means the Insurance Act, 1938 (4 of 1938);

(b) Approved Institution means an Institution engaged in education and/or trainingparticularly in the area of insurance sales, service and marketing, approved and notified by

the Authority;

(c) Authority means the Insurance Regulatory and Development Authority established underthe provisions of Section 3 of the Insurance Regulatory and Development Authority Act,

1999 (41 of 1999);

(d) Composite insurance agent means an insurance agent who holds a licence to act as aninsurance agent for a life insurer and a general insurer;

(e) Corporate Agent means a person other than an individual as specified in clause (i);

(f) Designated person means an officer normally in charge of marketing operations, asspecified by an insurer, and authorised by the Authority to issue or renew licences under

these regulations;


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(g) Examination Body means an Institution, which conducts pre-recruitment tests for

insurance agents and which is duly recognised by the Authority;

(h) Licence means a certificate of licence to act as an insurance agent issued under theseregulations;

(i) Person means ---(i) an individual;(ii) a firm; or(iii)a company formed under the Companies Act, 1956 (1 of 1956), and includes abanking company as defined in clause (4A) of section 2 of the Act;

(j) Practical Training includes orientation, particularly in the area of insurance sales, serviceand marketing, through training modules as approved by the Authority;

(k) Proposal form means an application for purchase of an insurance product which shall bethe basis of insurance contract;

(l) Prospect means a potential purchaser of an insurance product;

(m)Recognised Board or Institution means such board or institution as may be recognised by

any State Government or the Central Government.


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(2) All words and expressions used herein and not defined but defined in the Insurance Act,

1938(4 of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of

1999), shall have the meanings respectively assigned to them in those Acts.

3. Issue or renewal of licence. ---(1) A person desiring to obtain or renew a licence

(hereinafter referred to as the applicant) to act as an insurance agent or a composite insurance

agent shall proceed as follows:-

(a)the applicant shall make an application to a designated person---(i) in Form IRDA-Agents-VA, if the applicant is an individual;(ii) in Form IRDA-Agents-VC, if the applicant is a firm or a company:

Provided that the applicant, who desires to be a composite insurance agent, shall make two

separate applications.

(b) The fees payable by the applicant to the Authority shall be as specified in Regulation 7.

(2) The designated person may, on receipt of the application along with the evidence of payment

of fees to the Authority, and on being satisfied that the applicant, ---

(i) possesses the qualifications as specified under Regulation 4;

(ii) possesses the practical training as specified under Regulation 5;

(iii) has passed the examination as specified under Regulation 6;

(iv) has furnished the application complete in all respects;

(v) is capable of providing the necessary service to the policyholders;


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grant or renew, as the case may be, a licence in Form IRDA-Agents-VB, along with identity card

in Form IRDA-Agents-VZ:

Provided that in the case of a corporate agent, the identity card shall be in Form IRDA-Agent-

VY.

Provided further that such identity card from one life insurer and such identity card from one

general insurer shall be provided to the applicant seeking licence to act as a composite insurance

agent.

Provided further that in the case of a firm or a company, all of its partners or directors, as the

case may be, shall fulfil the requirements of sub-clauses (i) to (iii).Provided further a licence

issued in accordance with this regulation shall entitle the applicant to act as insurance agent for

one life insurer or one general insurer or both, as the case may be.

(3) If the designated person refuses to grant or renew a licence under this regulation, he shall

give the reasons therefore to the applicant.

4. Qualifications of the applicant. ---The applicant shall possess the minimum

qualification of a pass in 12th Standard or equivalent examination conducted by any recognised

Board/Institution, where the applicant resides in a place with a population of five thousand or

more as per the last census, and a pass in 10th Standard or equivalent examination from a

recognised Board/ Institution if the applicant resides in any other place.

5. Practical Training. --- (1) The applicant shall have completed from an approved

institution, at least, one hundred hours practical training in life or general insurance business, as

the case may be, which may be spread over three to four weeks, where such applicant is seeking

licence for the first time to act as insurance agent.


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Provided that the applicant shall have completed from an approved institution, at least, one

hundred fifty hours practical training in life and general insurance business, which may be

spread over six to eight weeks, where such applicant is seeking licence for the first time to act as

a composite insurance agent.

(2) Where the applicant, referred to under sub-regulation (1), is---

(a) an Associate/Fellow of the Insurance Institute of India, Mumbai;

(b) an Associate/Fellow of the Institute of Chartered Accountants of India, New Delhi;

(c) an Associate/Fellow of the Institute of Costs and Works Accountants of India, Calcutta;

(d) an Associate/Fellow of the Institute of Company Secretaries of India, New Delhi;

(e) an Associate/Fellow of the Actuarial Society of India, Mumbai;

(f) a Master of Business Administration of any Institution / University recognised by any StateGovernment or the Central Government; or

(g)possessing any professional qualification in marketing from any Institution / Universityrecognised by any State Government or the Central Government

(h)he shall have completed, at least, fifty hours practical training from an approved institution.


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(i) Provided that such applicant shall have completed from an approved institution, at least,

seventy hours practical training in life and general insurance business, where such applicant

is seeking licence for the first time to act as a composite insurance agent.

(3) An applicant, who has been granted a licence after the commencement of these regulations,

before seeking renewal of licence to act as an insurance agent, shall have completed, at least

twenty-five hours practical training in life or general insurance business, as the case may be,

from an approved institution.

Provided that such applicant before seeking renewal of licence to act as a composite insurance

agent shall have completed from an approved institution, at least, fifty hours practical training in

life and general insurance business.

6. Examination.The Applicant shall have passed the pre-recruitment examination in life or

general insurance business, or both, as the case may be, conducted by the Insurance Institute of

India, Mumbai, or any other examination body.

7. Fees payable.-- (1) The fees payable to the Authority for issue or renewal of licence to act

as insurance agent or a composite insurance agent shall be rupees two hundred and fifty.

(2) The additional fees payable to the Authority, under the circumstances mentioned in sub-

section (3) of section 42 of the Act, shall be rupees one hundred.

8. Code of Conduct.----(1) Every person holding a licence, shall adhere to the code of

conduct specified below:-

(i)Every insurance agent shall,---

(a) identify himself and the insurance company of whom he is an insurance agent;


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(b)disclose his licence to the prospect on demand;

(c)disseminate the requisite information in respect of insurance products offered for sale by hisinsurer and take into account the needs of the prospect while recommending a specific

insurance plan;

(d)disclose the scales of commission in respect of the insurance product offered for sale, ifasked by the prospect;

(e) indicate the premium to be charged by the insurer for the insurance product offered for sale;

(f) explain to the prospect the nature of information required in the proposal form by the insurer,and also the importance of disclosure of material information in the purchase of an insurance

contract;

(g)bring to the notice of the insurer any adverse habits or income inconsistency of the prospect,in the form of a report (called Insurance Agents Confidential Report) along with every

proposal submitted to the insurer, and any material fact that may adversely affect the

underwriting decision of the insurer as regards acceptance of the proposal, by making all

reasonable enquiries about the prospect;

(h)inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;

(i) obtain the requisite documents at the time of filing the proposal form with the insurer; andother documents subsequently asked for by the insurer for completion of the proposal;


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(j) render necessary assistance to the policyholders or claimants or beneficiaries in complying

with the requirements for settlement of claims by the insurer;

(k)advise every individual policyholder to effect nomination or assignment or change of addressor exercise of options, as the case may be, and offer necessary assistance in this behalf,

wherever necessary;

(ii) No insurance agent shall,----

(a)solicit or procure insurance business without holding a valid licence;

(b)induce the prospect to omit any material information in the proposal form;

(c) induce the prospect to submit wrong information in the proposal form or documentssubmitted to the insurer for acceptance of the proposal;

(d)behave in a discourteous manner with the prospect;

(e) interfere with any proposal introduced by any other insurance agent;

(f) offer different rates, advantages, terms and conditions other than those offered by his insurer;

(g)demand or receive a share of proceeds from the beneficiary under an insurance contract;

(h)force a policyholder to terminate the existing policy and to effect a new proposal from himwithin three years from the date of such termination;


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(i) have, in case of a corporate agent, a portfolio of insurance business under which the premium

is in excess of fifty percent of total premium procured, in any year, from one person (who is

not an individual) or one organisation or one group of organisations;

(j) apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by thedesignated person, and a period of five years has not elapsed from the date of such

cancellation;

(k)become or remain a director of any insurance company;

(iii) Every insurance agent shall, with a view to conserve the insurance business already procured

through him, make every attempt to ensure remittance of the premiums by the policyholders

within the stipulated time, by giving notice to the policyholder orally and in writing;

9. Cancellation of licence. --- The designated person may cancel a licence of an insurance

agent, if the insurance agent suffers, at any time during the currency of the licence, from any of

the disqualifications mentioned in sub-section (4) of section 42 of the Act, and recover from him

the licence and the identity card issued earlier.

10. Issue of duplicate licence.---The Authority may issue a duplicate licence replace a

licence lost, destroyed, or mutilated on payment a fee of rupees fifty.

11. Non-application to existing insurance agents.--- Nothing contained in

Regulations 4 to 6 of these Regulations shall apply to the existing agents before the

commencement of these Regulations.


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Role of the HDFC Standard Life Agent- The ConsultantThe companys agent would be a professional salesperson and would be given the designation of

a consultant by the company.

The consultant would acts as a financial advisor to the customer. He/She would:

Analyze the customers financial requirements Help them plan their goals and Recommend appropriate solutions, so that the customer is able to meet is/her financial

objectives in the most optimum manner. He/she shall provide support to customers on an

ongoing basis.

The company would also support the consultant by providing the required training and

information so that he/she is able to provide the best service to customers.

Thus, the companys consultant would have a far wider role to play than the typical insurance

agent

WHY should you be a consultant with HDFC Standard Life Insurance

Company Ltd.?HDFC and Standard Life are companies with tremendous financial strength

as endorsed by credit rating agencies. Both enjoy an excellent reputation in terms of goodwill

and efficient customer service.

Sales training imparted to our consultants will be based on the finest internationalpractices.

Prompt and effective communication on marketing campaigns, new product launches,taxation regulations etc.


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The customer service processes will be highly leveraged on technology, whether it is

getting a new policy on the books, paying your commission or setting a claim.

A range of competitive products backed by quick and efficient service, supported by ahighly trained and customer focused administration team. The idea is to design all our

processes around the customers needs and deliver what customers want, when they want

it and where they want it.

Additional recognition for top performers. Published service turnaround times, which will be used to measure our performance. Customer satisfaction surveys will be conducted proactively and the company will act on

the results.

Commission structure for the financial consultants:

Type of plan First policy yearSubsequent policy years

Endowment assurance plan 25% 5%

Money back plan 25% 5%

Term assurance plan 20% 5%

Loan cover term assurance

plan

20% 5%

Personal pension plan 7.5% 2%

Unit linked endowment

assurance plan

12.5% 4%

Unit linked pension plan 7.5% 1%

Also a bonus commission of 15% is available on the first four plans mentioned above.


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Promotional activities for the financial consultants:

Periodic branch level contests. National level contests-NEW LIFE Rural level contests. Monthly quizzes-IN TOUCH WITH LIFE

Apart from the above there are the following:-

STAR PERFORMERS CLUB.

Level one: Star centurion club (6-10% extra commission.)

Level two: Gold Star performers club (5% extra commission.)

Level three: Silver Star performers club (2.5% extra commission.)


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RESEARCH DESIGN

The research will be analytical in nature as it will analyze the demography of people who want to

invest in life insurance policies and its correlation to the investment pattern of people, various

criteria adopted by people and its behavior while they go for investing in the life insurance

policies.

The research design will mainly consist of five parts;

a. Hypothesesb. Data Collectionc. Sample Designd. Survey Designe. Data Analysis

Hypotheses:

The following hypotheses were undertaken:

HYPOTHESIS 1: All people of Gurgaon have life insurance policy.

HYPOTHESIS 2: All people of Gurgaon need another new life insurance policy.

HYPOTHESIS 3: People want the policy of Rs. 50000 & Rs.100000 in the ratio of 5:3

HYPOTHESIS 4: People want Life Insurance policy especially for kids education.

HYPOTHESIS 5: Half of the people want only the policies of LIC corp.

HYPOTHESIS 6: People look for reputation and trustworthiness of companies.


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Data Collection:

Data will be primary as well as secondary in nature. The primary data has been taken through the

people who invest in life insurance policies in Gurgaon. This data is necessary to know about the

respondents demography, their view and their various considerations while investing.

The secondary data has been collected for getting the knowledge of various theories prevailed in

the market and for various developments in the life insurance market etc. The secondary data

will be collected mainly through internet, books, journals, newspaper etc.

Sample Design:

Sample unit: The people in Gurgaon above 20 years old, HR

Sample size: 54

For the collection of primary data, all the people in Gurgaon who are above 20 years old will be

taken as sample unit since their demography, ideas, consideration and various criteria will berequired.

Survey Design:

Instrument: A structured questionnaire consisting 8 questions

Scaling: Nominal, interval and attitude scale

For survey of all the people who are above 20 years old in Gurgaon, a structured questionnaire

consisting 8 questions was prepared where each question measures the specific attribute

associated with people. The questionnaire was consisting some objective questions and open


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ended response questions. The questionnaire is given in the annexure. The data were collected

mainly at the life insurance companies as HDFC, ICICI, Kotak Life, Aviva and Birla sunlife.

These offices are situated at sector 14 and JMD tower near Sahara Mall in Gurgaon which is

quite a prominent landmark in Gurgaon, HR India.

Data Analysis:

Gender wise Distribution of Respondents:

According to the survey of people in Gurgaon, Following data were obtained:

Table: Gender wise Distribution of Respondents

Gender Male Female

Respondents 74 26


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This figure can also be visualized through the pie chart as given below

Figure: Gender wise Distribution of Respondents

y Interpretation

It is found that 74% of the respondents are male. Female just constituted 26% of the total sample

size. It showed that life insurance market decision is very much influenced by the males in

Gurgaon.

Age wise Distribution of Respondents:

Table: Age wise Distribution of Respondents

Age (Yr) Below 20 20-30 30-40 40-50 50-60 Above 60

Respondents 10 58 22 4 4 2

74%

26%

Gender wise Distribution of Investors

Male

Female


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It will be worth to mention that during travelling for the survey; many people who aged between

20 to 30 years old. Most of the respondents are found in the trading shops as ICICI, Kotak Life,

Aviva and Birla Sunlife etc. which are located in sector-14 and JMD tower near Sahara Mall in

Gurgaon. Selection of respondents was based upon the availability and completely randomness

without any biases.

Figure: Age wise Distribution of Respondents

y Interpretation

From the pie chart given above, it showed that 58% of the peoples fall between 20-30 years of

age. It is found that most of the respondents in Gurgaon are youth. According to previous data,

most of these youth found male.

10%

58%

22%

4%4% 2%

Age wise Distribution of Investors

Below 20

20-30

30-40

40-50

50-60

Above 60


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Profession wise Distribution of Respondents:

To get the information about the profession of the peoples, six options has been given in the

questionnaire which are following.

y Studenty Salaried without familyy Salaried with familyy Businessmany Retiredy HW

This information was required to know about the responsibility over the respondents as it was

assumed that an respondent with family is suppose to have more responsible prior to investing as

compared to those respondents who are salaried without family. Student are found to be least

responsible while people between 20 to 30 years old were found to be more responsible as they

were more interested.

Following is the table to show the actual picture of the various respondents

Table: Professions wise Distribution of Respondents

Profession Student Salaried

without family

Salaried

with family

Businessman Retired HW

Respondents 6 22 56 18 4 14


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Now it can be seen that respondents salaried without family are bit more than salary with family.

But according to the data, salaried people are dominating over the figures. It can be clearly seen

that according to the sample data, out of 100 respondents, 76 are salaried. It can also be reviewed

through the statistics in following graph.

Figure: Professions wise Distribution of Respondents

y Interpretation

It can be seen from the chart that 76% of the respondents are salaried. Salaried without family

found more than salaried with family but together they found to have the big chunk of the pie.

Next came to student with 12% which found to be youth again.

5%

18%

47%

15%

3%12%

Professions of Investors Student

Salaried without

family

Salaried with family

Businessman

Retired

HW


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Qualification wise Distribution of Respondents:

To get the information about the qualification of the respondents, four options has been given in

the questionnaire which are following.

y 10+2y Graduatey Post-Graduatey Other

Table: Qualification wise Distribution of Respondents

Options 10+2 Graduate Post-Graduate Other

Respondents 6 22 66 6


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Figure 3.4: Qualification wise Distribution of Respondents

y Interpretation

It can be seen from the chart that 66% of the respondents are post-graduate. It shows that most of

the respondents are well qualified. It is a good thing so that people can easily understand the

various sort of policies and their benefit.

6%

22%

66%

6%

Qualification wise Distribution of

Respondents

10+2

Graduate

Post-Graduate

Other


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Conclusions

HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity.

HDFC have total 12 group companies. It is the first insurance company who has gotten thelicense of insurance in firstly. It has started its insurance industry with the joint venture of U.K.

based standard life insurance company.

In the insurance sector main work is done by the financial consultant who brings business to theindustry. It gives more priority for the recruitment of financial consultant thats why it has setup

5-qscore. It gives priority that is professional like as MBA, CA, ENGINEERS, DOCTORS,LAYERS, AND OTHER PROFESSIONAL.

Historically, Indian insurance products are sold for wrong reasons. People buy insurance to avail

the tax benefit and not to ensure protection and LIC was happy to oblige. Hence most of the sales

talks start with the question "How much do you pay tax?. Little money was spent on brandbuilding because there was no competition for LIC.Things have now changed. With the increasing financial literacy, volatile economy and uncertain

future are prompting Indians to look seriously at insurance as a means for protection rather thantax saving instrument. With more private players entering the domain, the issues of

differentiation and branding became important.

It is this potential that has encouraged HDFC to promote its pension plans. Introduced in 2002,this product has been well received by the consumers. The ads are well executed and revolve

around the positioning of "Respect Yourself" The target segment being the 30 year old familyman. The basic theme of the campaign is to appeal to the self respect of these men who are in

their prime of their career. "Even after retirement let your hands give rather than receive" is oneof the best themes for a pension plan. Since I am in that category, these ads strike a chord in meand remind me of the need to plan for my retirement. The same theme is carried to the Child plan

also.

Although these campaigns will help to invoke an interest in TG, the market is in its nascent stageand lot of convincing has to be done to crack this huge market. One of the stumbling block being

the expensive annuity plans. For example, it takes a 2 lakh corpus to generate Rs 1000 per monthpension. Also if you put 10000 per month in a pension plan if you are 30 yrs old, what you will

get after 20 years is a monthly pension of 10000. (Correct me if I am wrong). So it looksunattractive in the first look compared to MFs.

HDFC Standard Life has correctly identified the pulse of the target market and is all set to reap

the benefits.


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RECOMMENDATIONS

y Transparency is an important factor. Life insurance policies should be transparent andeasily understandable so that investor would not face any problem in future.

y Life Insurance Companies should go for good marketing technique so that their brandimage could be established and people can trust.

y Services are very important thing while marketing the various policies. It should be good.Policy amount should be less so that more people can invest and risk could be minimize

further.


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LIMITATIONS OF STUDY

y Unresponsiveness of some respondents was main limitation, which may be due to the fearof leakage of data or losing competitiveness in the industry.

y Transportation and time constraint were other limitations, which resorted us to constraintour study in a particular location.


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BIBLIOGRAPHY

www.Google.com http://en.wikipedia.org/ www.marketresearch.com www.hdfcinsurance.com/ finance.indiamart.com/investment_in_india/hdfc_bank.html www.hdfcbank.com/NRI/investments/insurance.htm US Life Office Management Association Inc.(LOMA)

Insurance Regulatory and Development Authority (IRDA) www.irdaindia.org


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QUESTIONNAIRE

DEAR SIR,W e a r e t h e s t u d e n t s o f m a n a g e m e n t . W e a r e c o n d u c t i n g a s u r v e y t o u n d e r s t a n d t h e

j o b a n d b u s i n e s s m a r k e t a n d t h e s a t i s f a c t i o n w i t h t h e s a m e . K i n d l y c o o p e r a t e u s a n d

g i v e d e t a i l s .

Q 1 . W h a t i s y o u r s o u r c e o f e a r n i n g ?

( a ) P r i v a t e j o b (b ) B u s i n e s s . . .( c ) G o v e r n m e n t j o b . .

Q 2 . Ho w l o n g y o u a r e i n v o l v e d i n t h i s j o b ?

. .

Q 3 . A r e y o u s a t i s f i e d w i t h t h e e a r n i n g s ?

( a ) Y e s . .(b ) No . .

Q4. Woul d you l i ke to in vol ve in som e ot he r part time work?

(a) Yes

(b) No

Q 5 . I n w h i c h i n d u s t r y w o u l d y o u l i k e t o i n v o l v e y o u r s e l f ?( a ) I n s u r a n c e

( c ) B a n k i n g & F i n a n c e

(d ) E d u c a t i o n

( e ) O t h e r s .

Name -

Qualification-.

Address - ....

Documents

School of Management Studies - Copy