A project report on satisfaction level of the financial consultants at hdfc

The Satisfaction Level of Financial Consultants of HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

APROJECT REPORT ON


UNDERTAKEN AT

Babasabpatilfreepptmba.com Page 1


INDEX

SL. NO.

CONTENTS PAGE NO

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION 4

3 COMPANY PROFILE 18

4 INTRODUCTION TO TOPIC 44

5 RESEARCH DESIGN 52

6 DATA ANALYSIS 55

7 FINDINGS 73

8 RECOMMENDATIONS 75

9 CONCLUSION 77

10 BIBILOGRAPHY 79

11 ANNEXURE 81



EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Today’s scenario of insurance industry is much concentrating over analyzing the

satisfaction level of the financial consultants, which is very essential for the growth

of the company.

Title of the study: “Satisfaction level of the Financial Consultants”.

At

Objectives of Study:

To study the role of financial consultants in HDFC standard life insurance.

To find out the key motivational factors of the financial consultants.

To measure the satisfaction level of the financial consultants towards the

support of the superiors in achieving their target.

To study about the training and guidance provided to the financial consultants.

To study the satisfaction level of the financial consultants towards company.

Scope of the study: The scope of study is limited to Belgaum city.

Research Methodology:

Data Source:

The data is collected through:

Primary: Through survey method by preparing questionnaire

Secondary: Pamphlets, News Papers, journals, company register.



Sample size: 100 Samples

Selection of the sampling method: Convenience sampling.

Data Analysis: Data gathered from the questionnaire are analyzed using coding

sheet tabulation and percentages. Data collected is depicted through pie charts.

Findings:

96% are satisfied with the training & guidance provided by the company.

Financial Consultants get support in selling the products with promotional

activities, this act as motivational factor.

Recommendations:

Company should continue to provide attractive incentives to financial

consultants even after one year as they give more importance for incentives.

Company should give extra benefit to its efficient Agents which will motivate

them to get more business and achieve their larger Sales.

LIMITATIONS:

Project is limited to Financial Consultants of HDFC Standard Life

Belgaum city.

The scope of the study is restricted to the time constraint.



INTRODUCTION



INTRODUCTION TO INSURANCE

The business of insurance is related to the protection of the economic values of the

assets. Every asset has a value the asset would have been created through the efforts

of the owner. The asset is valuable to the owner because he expects to get some

benefit from it. Insurance is a mechanism that helps to reduce the effect of such

adverse situation.

Purpose and Need of Insurance :

Assets are insured; because they are likely to be destroyed through accidental

occurrences such possible occurrences are called perils. Fire floods breakdowns,

lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, the

asset is exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or

may not happen. Insurance is done against the contingency that it may happen. There

has to be an uncertainty about the risk. Insurance is relevant only if there are

uncertainties. In the case of a human being, death is certain, but the time of death is

uncertain. In the case of a person who is terminally ill, the time of death is not

uncertain, though not exactly known.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The

peril can sometimes be avoided, through better safety and damage control

management. Insurance only tries to reduce the impact of the risk on the owner of the



asset and those who depend on that asset. It only compensates the losses- and that too,

not fully. Only economic consequences can be insured. If the loss is not financial,

insurance may not be possible.

The Business of Insurance

The business of insurance is to:

1) Bring together persons with common insurance interests (sharing the same risks),

2) Collect the share or contribution (called premium) from all of them, and

3) Pay out compensations (called claims) to those who suffer.

In India, insurance business is classified primarily as life and non-life or general. Life

insurance includes all risks related to the lives of human beings and general insurance

covers the rest. General insurance has three classifications is; Fire, Marine and

Miscellaneous. Personal accident and sickness insurance, which are related to human

beings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many other

countries.

The business of insurance is nothing but one of sharing. It spreads losses of an

individual over the group of individuals who are exposed to similar risks. People who

suffer loss get relief because their loss is made good. People who do not suffer loss

are relieved because they were spared the loss.

Insurance business is divided into four classes:

1) Life Insurance Business.



2) Fire Insurance Business.

3) Marine Insurance Business.

4) Miscellaneous Insurance Business.

Meaning of Life Insurance Business:

Life insurance, originally conceived to protect a man's family when his death left

them without income, has developed into a variety of policy plans.

Meaning of Fire Insurance Business:

Fire insurance usually includes damage from lightning; other insurance against the

elements includes hail, tornado, flood, and drought.

Meaning of Marine Insurance Business:

Marine insurance protects shipping companies against the loss of a ship or its cargo,

as well as many other items, and so-called inland marine insurance covers a vast

miscellany of items, including tourist baggage, express and parcel-post packages,

truck cargoes, goods in transit, and even bridges and tunnels.

Meaning of Miscellaneous Insurance Business:

Special casualty forms are issued to cover the hazards of sudden explosions from

equipment such as steam boilers, compressors, electric motors, flywheels, air tanks,

furnaces, and engines. Boiler and machinery insurance has several distinctive

features. A substantial portion of the premium collected is used for inspection services

rather than loss protection.

The business of insurance started with marine business. Traders, who used to gather

in the Lloyd’s Coffee house in London, agreed to share the losses to their goods while

being carried by ships. The losses used to occur because of pirates who robbed on the



high seas or because of bad weather spoiling the goods or sinking the ship. The first

insurance policy was issued in 1583 in England. In India, insurance began in 1870.

The business of insurance is the protection of economic values of assets. Every asset

is expected to last for a certain period of time during which it will perform.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.

Insurance is relevant only if there are uncertainties.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.

Insurance is relevant only if there are uncertainties.Life Insurers transact life

insurance business; the rest is transacted by General Insurers. No composites are

permitted as per law.

The business of Insurance essentially means defraying risks attached to any activity

over time (including life) and sharing the risks between various entities, both persons

and organizations. Insurance companies are important players in financial markets as

they collect and invest large amounts of premium.

Insurance products are multi purpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings

3. Channelise savings into sectors needing huge long-term investments.

INSURANCE COMPANIES receives, without much default, a steady cash

stream of premium or contributions to pension plans. Various actuary studies and

models enable them to predict, relatively accurately, their expected cash outflows.

Liabilities of ICs being long-term or contingent in nature, liquidity is excellent and

their investments are also long-term in nature. Since they offer more than the return

on savings in the shape of life-cover to the investors, the rate of return guaranteed in

their insurance policies is relatively low. Consequently, the need to seek high rates of



returns on their investments is also low. The risk-return trade off is heavily tilted in

favor of risk. As a combined result of all this, investments of insurance companies

have been largely in bonds floated by GOI, PSUs.,state governments, local bodies,

corporate bodies and mortgages of long term nature. The last place where Insurance

companies are expected to be over-active is bourses.

Lately ICs have ventured into pension schemes and mutual funds also. However, life

insurance constitutes the major share of insurance business. Life Insurance depends

upon the laws of mortality and there lies the difference between life and general

insurance businesses. Life has to extinguish sooner or later and the claim in respect of

life is certain. In case of general insurance, however, there may never be a claim and

the amount can be ascertained in advance. Hence, Life Insurance includes, besides

covering the risk of early happening of an event, an element of savings also for the

beneficiaries.

Pension business also derives from life insurance in as much as the pension outgo

again depends upon the laws of mortality .The forays made by insurance companies in

this area are, therefore ,natural corollary of their business.

Role of Insurance in Economic Development:

For economic development, investments are necessary. Investments are made out of

savings. A life insurance company is a major instrument for the mobilization of



savings of people, particularly from the middle and lower income groups. These

savings are channeled into investments foe economic growth.

All good life insurance companies have huge funds, accumulated through the

payments of small amount of premium of individuals. These funds are invested in

ways that contribute substantially for the economic development of the countries in

which they do business.

All good life insurance companies have huge funds, accumulated through the

payments of small amount of premium of individuals. These funds are invested in

ways that contribute substantially for the economic development of the countries in

which they do business.

The private insurers in India are new and had not built up funds in 2002. But, in

course of time, they also would be directly and indirectly contributing to the country’s

economic development.

A life insurance company will have large funds. These amounts are collected by way

of premiums. Every premium represents a risk that is covered by that premium. In

effect, therefore, these vast amounts represent pooling of risks. The funds are

collected and held in trust for the benefit of the policyholders. The management of life

insurance companies are required to keep this aspect in mind and make all its

decisions in ways that benefit the community. This applies also to its investments.

That is why successful insurance companies would not be found investing in

speculative ventures.

Apart from investments, business and trade benefit through insurance. Without

insurance, trade and commerce will find it difficult to face the impact of major perils

like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory,

financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to

financiers, if their debtors default.



INSURANCE INDUSTRY OVERVIEW

Insurance Sector in India

India with about 200 million middle class household shows a huge untapped potential

for players in the insurance industry. Saturation of markets in many developed

economies has made the Indian market even more attractive for global insurance

majors. The insurance sector in India has come to a position of very high potential and

competitiveness in the market.

The insurance industry in India can be broadly classified in two parts. They are:

Life Insurance

Non-life (General) Insurance

Brief History of Insurance



The business of life insurance in India in its existing form started in India in the

year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1818:-The British Introduce to India. With the establishment of the Oriental

Life Insurance Company in Calcutta.

1850:- Non life insurance debuts, with Triton Insurance company.

1870:- Bombay mutual Life Assurance Society is the first India –owned life

insurer.

1907:-Indian Mercantile Insurance is the first Indian non life insurer.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government

to collect statistical information about both life and non-life insurance

businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by

the central government and nationalized. LIC formed by an Act of Parliament,

viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the

Government of India.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st

January 1973.

1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra,

set up to draw up a blue print for insurance sector reforms.



1994:-Malhotra Committee recommends re-entry for private players,

autonomy to PSU insurers.

1997:-Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000:- IRDA starts giving licenses to private insurers, HDFC Standard Life

and ICICI Prudential first private insurers to sell a policy.

2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene,

insurers start selling non-life claims in the cashless mode

.

Insurance Sector Reforms:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor

R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend

its future direction. The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector. The reforms were aimed

at "creating a more efficient and competitive financial system suitable for the

requirements of the economy keeping in mind the structural changes currently

underway and recognizing that insurance is an important part of the overall financial

system where it was necessary to address the need for similar reforms". In 1994, the

committee submitted the report and some of the key recommendations included:

1) Structure:

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



Government should take over the holdings of GIC and its subsidiaries so that

these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

2) Competition:

Private Companies with a minimum paid up capital of Rs.1bn should be

allowed to enter the industry.

No Company should deal in both Life and General Insurance through a single

entity.

Foreign companies may be allowed to enter the industry in collaboration with

the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only One State Level Life Insurance Company should be allowed to operate

in each state.

3) Regulatory Body:

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry) should be

made independent.

4) Investments:

Mandatory Investments of LIC Life Fund in government securities to be

reduced from 75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There

current holdings to be brought down to this level over a period of time)



5) Customer Service:

LIC should pay interest on delays in payments beyond 30 days. Computerization

of operations and updating of technology to be carried out in the insurance

industry The committee emphasized that in order to improve the customer

services and increase the coverage of the insurance industry should be opened up

to competition. But at the same time, the committee felt the need to exercise

caution as any failure on the part of new players could ruin the public confidence

in the industry. Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.100 crores. The committee felt

the need to provide greater autonomy to insurance companies in order to improve

their performance and enable them to act as independent companies with

economic motives. For this purpose, it had proposed setting up an independent

regulatory body.

Bank and Insurance:

Banc assurance symbolizes the convergence of banking and insurance. The term has

its origins in France and involves distribution of insurance products through a bank's

branch network. While banc assurance has developed into a tremendous success story

in Europe, it is a relatively new concept in Australia and Asia.

Most new insurers have entered into memoranda of understanding with banks to use

their branches as outlets for marketing standard products. State Bank of India, Vysya

Bank and J&K Bank already has joint ventures in life insurance. Vijaya Bank and

Punjab National Bank are in the midst of finalizing life and non-life ventures.



The Insurance Act allows only those companies registered under the Companies Act

to become corporate agents. This gives the new generation and old private sector

banks a head start over Public sector banks, which are technically not eligible to sell

risk products.

IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector

banks will play a key role in the distribution of products.

March 2003 Review:

The Insurance Regulatory and Development Authority has said that a bank cannot

enter into a referral arrangement with more than one life insurance company or more

than one general insurance company. Insurance companies can enter into referral

arrangements displaying the insurer’s publicity material in the branch premises.

According to the IRDA, the participation of the bank’s customers in any insurance

scheme shall be purely on a voluntary basis and this fact should appear prominently in

all publicity materials distributed by the bank and the insurer.

According to latest IRDA circular, the total payout under the referral fee has been

capped as a percentage of the circular, the total payout under the referral fee has been

capped as a percentage of the total premium, which varies from 5.5% to 55%

depending on the extent of the business the company generates through the referral

arrangement. IRDA has barred insurers from paying any referral fee for any

promotional campaign. Besides, insurers cannot pay any commission or other

remuneration along with the referral fees.

March 2004 Review:

IRDA has announced new guidelines pertaining to payment of brokerage to insurance

brokers carrying on direct insurance business in the country. As per the new



guidelines on general insurance contracts, insurance brokers cannot charge brokerage

or commission on the business of Government and public sector undertakings

(PSU’s). Business from these classes of customers will be placed directly with the

insurance companies, wherein they will continue to enjoy a five per cent discount on

the basic tariff applicable.

The notification will come into effect from April 1, 2003, and applies to all general

insurance contracts. These guidelines will not apply to reinsurance broking contracts.

Brokerage/commission includes any royalty, license fees, administration charges or

any compensation, which any agreement between the parties provide for

intermediation. IRDA has so far issued broking licenses to 32 entities in the country.

IRDA has laid out stringent norms including cap on exposure in MF investment as

well as investment in stocks and shares for both public and private insurance

companies detailing the guidelines for investments in mutual funds (MFs). According

to this circular, the investment in MFs at any point of time shall not exceed 50% of

investment falling under the ‘other than approved investments’ (OTAI) category for

both life and general insurance companies. IRDA has also stipulated that the MFs in

which the insurers invest should be registered with the SEBI. Besides, the insurer

should always ensure that the investments in MF are diversified among the products

of different companies.

THE ISURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the insurance sector were initiated with the passage of the IRDA bill in

Parliament in December 1999. The insurance Regulatory And Development Authority

(IRDA) since its incorpation as a statutory body in April 2000 has fastidiously tuck to

its schedule of framing regulations and registering the private sector insurance

companies. The other decisions taken simultaneously to provide the supporting

systems to the insurance sector and in particular the life insurance companies were the

launch of the IRDA’s online service for issue and renewal of licenses to agents.



The approval of institutions for imparting training to agents has ensured that the

insurance companies would have trained workforce of insurance agents in place to

sell their products, which are expected to be introduced by early next year. Since

being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations.

S.No Registration No Date of Registration Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Co Ltd.

2 104 15.11.2000 Max New York Life Insurance Co Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Co Ltd.

4 107 10.01.2001 Om Kotak Mahindra Life Insurance Co Ltd.

5 109 31.01.2001 Birla Sun Life Insurance Co Ltd.

6 110 12.02.2001 TATA AIG Life Insurance Co Ltd.

7 111 30.03.2001 SBI Life Insurance Co Ltd.

8 114 02.08.2001 ING VYSYA Life Insurance Co Pvt. Ltd.

9 116 03.08.2001 Allianz Bajaj Life Insurance Co Pvt. Ltd.

10 117 06.08.2001 Met Life India Insurance Co Pvt. Ltd.



COMPANY PROFILE

HDFC STANDARD LIFE INSURANCE

Housing Development Financial Corporation Ltd



Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged

as the largest residential mortgage finance institution in the country. The corporation

has had a series of share issues raising its capital to Rs. 119 crores. The net worth of

the Corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates

through 75 locations throughout the country with its Corporate Headquarters in

Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service

associates in Kuwait, Oman and Qatar.

HDFC Standard Life Insurance Company Ltd:

HDFC Standard Life Insurance Company Ltd. is one of India’s private life insurance

company, which offers a range of individual and group insurance solutions. It is a

joint venture between Housing Development Finance Corporation Limited (HDFC

Ltd.), India’s leading housing finance institution and The Standard Life Assurance

Company, a leading provider of financial services from the United Kingdom.

Incorporated on 14th August 2000, it was the first life company to be granted a

certificate of registration by the IRDA on the 23rd of October 2000. HDFC Standard

Life is one of the first companies to be granted license by the IRDA to operate in life

insurance sector. It is a joint venture of HDFC Ltd and Standard Life Europe's largest

mutual life assurance company. HDFC is the majority stakeholder in the insurance JV

with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is

the MD and CEO of the venture.

HDFC Standard Life Insurance is a new Indian life insurance company that operates

out of 52 locations. It offers clients a range of insurance plans to meet their savings,



investment and protection needs. In the financial year 2002-03, the company

registered a year-on-year growth of over 260%. It is also the first new life insurance

company to declare its third successive bonus for participating policy holders.

In order to survive in the insurance segment, HDFC had to introduce new

products. They were looking for a robust and integrated solution to support the new

product. HDFC was also facing numerous problems with their current systems in

terms of performance, reliability and scalability.

HDFC Standard Life Insurance sells a range of individual savings, pension

and group life assurance products and has branch offices in 39 locations throughout

India. It was recently rated as the "Best New Insurer - 2003" by Outlook Money

magazine. Both the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life insurance

industry.

HDFC Standard Life Insurance is one of the leading private life insurance companies.

The company generated premium from new business of Rs. 486 Cr in 2004-05,

registering a year-on-year growth of over 132%. The total premium income (including

renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The company

also achieved a major milestone during the financial year by crossing a Sum Assured

figure of Rs. 30,000 Cr. The company also declared its fifth bonus for participating

policyholders. HDFC operates through 75 locations throughout the country with its

Corporate Headquarters in Mumbai, India. HDFC also has an international office in

Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life Group, UK



Standard Life is Europe's largest mutual life assurance company. Standard Life, which

has been in the life insurance business for the past 175 years, is a modern company

surviving quite a few changes since selling its first policy in 1825. The company

expanded in the 19th century from its original Edinburgh premises, opening offices in

other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management

and has the distinction of being accorded "AAA" rating consequently for the past six

years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to

be granted license by the IRDA to operate in life insurance sector. Each of the JV

player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by

both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and

Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life

manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.



VISION & MISSION

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-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Key Values:

• SECURITY: Providing long term financial security to our policy holders will be our

constant Endeavour. We will be doing this by offering life insurance and pension

products.

• TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will

aim to manage their investments very carefully and live up to this trust.

• INNOVATION: Recognizing the different needs of our customers, we will be

offering a range of innovative products to meet these needs. Our mission is to be the

best new life insurance company in India and these are the values that will guide us in

this.



Board Members

Mr. Deepak S Parikh Chairman of HDFC Limited.

Mr. Keki M Mistry Managing Director of HDFC Limited.

Mr. Alexander M Crombie Group Chief Executive of the Standard Life

Ms. Marcia D Campbell Group Operations Director

Mr. Keith N Skeoch Chief Executive in Standard Life

Mr. Ranjan Pant Global Management Consultant

Ms. Renu S. Karnad Executive director of HDFC Limited



Key strengths:

Financial Expertise:

As a joint venture of leading financial services groups, Standard Life has the

financial expertise required to manage your long-term investments safely and

efficiently.

Range of Solutions :

We have a range of individual and group solutions, which can be easily customized

to specific needs. Our group solutions have been designed to offer you complete

flexibility combined with a low charging structure.

Track Record so far:

Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859

crores and new business premium income stood aRs.2,685crores.The company has

covered over 9,59,000 lives year ending March 31, 2008.We have covered over

11, 00,000 individuals out of which over 3, 40,000 lives have been covered through

our group business tie-ups.



Highlights of Financial Year 2007-08

New Business Premium Income up by 63% to Rs. 2,685 crores.Total Premium

Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores in

FY2006-07

Alternate Channels including banc assurance has recorded an impressive

growth of over 63% to contribute 41% to the Effective Premium Income (EPI)

Group business funds under management have increased to Rs. 959 crores,

registering a growth of 83% over FY2006-07

The average premium has increased to Rs. 33,000

Company products and services are now available in 726 cities and towns

across the country

Strength of Financial Consultants has increased to 1,45,000

HDFC Standard Life tracks its New Business Premium on the basis of Effective

Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single

Premium policy and is an internationally accepted indicator of an insurance

company’s



Performance:

HDFC Standard Life Insurance is the First Private Sector Life Insurance Company to

be granted a license. It has increased its market share from 0.76% to 1.12% by

collecting a premium income of 209bn. in the year ending March 2003-04.It has

registered an premium growth rate of 61.88% over previous year.

Insurance sector has grown not only in size but in maturity as well, in the

sense that from very simple products, which were available earlier on to the present.

What has been done is that Insurance Industry placed the customer in centre &

developed products and services around the customer.

In the past what we had was a bundled product so you get 3 or 4 benefits out of which

it may be possible that you may need just 1 or 2 benefits but in the process you end up

paying for all the four. In fact we were among the first to divide the offering into two

-a core product and the benefits or the riders. And then it is up to the customer to

choose and customize his own scheme according to needs and desires and pay for

such scheme.

I think that is the single largest revolution that has come about. The other

revolution in the Insurance sector is in terms of distribution channels. Earlier we were

having only agents but now we have agents, Banc assurance, corporate brokers and

direct sales people. Retail agents and banc assurance are the 2 biggest insurance

distribution channels.



The insurance penetration levels have considerably increased from 1.6 % to about

2.75%. Now whether that growth is enough in three year period, we can always

counter that. In the last 3 years private insurance companies have grown at 200-300 %

levels. But if you look at a longer time horizon say at 10 years the insurance

companies would grow at 13-14% rate which would make it one of the fastest

growing sector.

If we want an acronym of our products, we call it PIPS, which stands for

Protection, Investment, Pension, & Safety. These are the basic requirements of any

individual & thus our products satisfy each of these needs.

We have got conventional products, which are in the conventional structure

i.e. available with profits like Endowment, Money back then you have Unit Linked

plans. Which are for those investors who understand the capital markets, debt markets

& equity markets.

In terms of popularity, little fewer than 50% products are savings products whether it

is endowment, unit-linked or money back which are basically savings oriented. About

20% are investments oriented for e.g. single premium income policies where you pay

in a shot and enjoy the protection & investments returns in future. About 20 % are in

pensions. Pure protection is just about 5%. All these are in terms of premium income.

USP is something that the customer will have to find because life insurance is a long-

term process and it is about stability, being conservative. We don't hear about

aggressive life insurance companies who survive for a longer period.

To be in business when we are talking of an insurance policy for say 30 years, your

perspective is different in comparison to when you are taking a short term loan say a

car loan for 3 years.

Therefore different companies have chosen different models. Some of them have

chosen to be in for the long run while some have chosen to be in for the short run. For

in the short run, you need to have a high valuation of company, for high valuation you



need to have high & rapid sales. Higher the sales higher are the valuation & higher the

valuation higher is the price that you can charge. Insurance sector, you can’t

differentiate on the basis of innovative products. The reason being, if yours is an

excellent product it will not take too much time to be copied by other players. The

thing which they can’t copy is your services and, I think, that would be the

differentiating factor in the insurance arena for eg if you look at the HDFC model.

There are banks that are lending at lower rates but even then HDFC is able to grow at

30% thus if HDFC grows at 30%, it is on that balance sheet, while others might grow

100% but that would be on that small size. Thus it is important that people trust you.

It matters to do the right things even if they are not beneficial in the shorter run. Thus

we know the purpose of our existence in this sector. The main support, which we get

from our foreign partner, is in terms of actuary support. Actuaries are the people who

arrive at the premium rates. It is a monopoly market & there are not too many players

who get into this. There is a shortage of actuaries in India but yes now the people are

pursuing it as a career.

We get a lot of actuarial support from our foreign partner in terms of product

development, valuation processes & it is necessary at each step to know what the

implications are.

PRODUCTS:

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We

Cater to both, individuals as well as to companies looking to provide benefits to their

employees. This section gives you details of all our products.

o Individual Product



o Group Product

o Rural Product

Individual Products:

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping

this in mind, we have a varied range of Products that you can choose from to suit all

your needs. These will help secure your future as well as the future of your family.

Protection Plans

One can protect their family against the loss of your income or the burden of a loan

in the event of your unfortunate demise, disability or sickness. These plans offer

valuable peace of mind at a small price. Protection range includes our Term

Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans

Single Premium Whole of Life plan is well suited to meet your long term investment

needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans

Pension Plans helps one secure their financial independence even after

retirement. Pension range includes Personal Pension Plan and Unit Linked Pension

Plan.

Savings Plans

Savings Plans offers flexible options to build savings for ones future needs

such as buying a dream home or fulfilling your children’s immediate and future


http://www.hdfcinsurance.com/products/indi_tap.asp

http://www.hdfcinsurance.com/products/indi_tap.asp

http://www.hdfcinsurance.com/products/indi_ulpp.asp

http://www.hdfcinsurance.com/products/indi_ulpp.asp

http://www.hdfcinsurance.com/products/indi_ppp.asp

http://www.hdfcinsurance.com/products/indi_spwlp.asp

http://www.hdfcinsurance.com/products/indi_lcta.asp


needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment

Assurance Plan, Money Back Plan, Children’s Plan, Unit Linked Young star Plan.

Term Assurance Plan :

If you have a family that you care for, you should consider what would happen in case

of your unfortunate death. The emotional void cannot be filled, but financial

insecurity can be avoided. By taking this affordable life insurance plan, you can

provide for the well-Being of your family in case of your unfortunate death. This plan

comes to you at a Minimal cost and is well-suited for the value-conscious customer.

Under this plan, a sum assured is payable in case of death of the life assured during

the term of the contract. One can choose the lump sum that would replace the income

lost to one’s family in the unfortunate event of one's death. Since this non-

participating (without Profits) plan is a pure risk cover plan, no benefits are payable

on survival to the end of the term of the policy.

A protection plan to secure higher protection needed for your family at economical

rates Optional riders for enhanced protection unique joint life option to cover your

spouse under the same plan Single / regular premium payment options.

PERSONAL PENSION PLAN

Today, one is busy climbing the ladder of success and realizing their dreams. Today,

time is with you. Just take a moment and think. Will you be able to continue at the

same pace? Will your income be the same forever? Will you be able to live life on

your own terms even after you retire?

HDFC PERSONAL PENSION PLAN:


http://www.hdfcinsurance.com/products/indi_ulysp.asp

http://www.hdfcinsurance.com/products/indi_cp.asp

http://www.hdfcinsurance.com/products/indi_mbp.asp

http://www.hdfcinsurance.com/products/indi_ulep.asp

http://www.hdfcinsurance.com/products/indi_ulep.asp

http://www.hdfcinsurance.com/products/indi_eap.asp


HDFC understands ones need to build a secure future for them self. Hence, the HDFC

Personal Pension Plan is an insurance policy that is designed to provide a post –

retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the Sum Assured and your retirement date. At the end

of the policy term, you will receive the Sum Assured plus any attaching bonus, which

will provide your post - retirement income.

The HDFC Personal Pension Plan is an insurance policy, which can benefit one in the

following ways:

Provides a post retirement income in your golden years

Gives you the flexibility to plan your retirement date

Gives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually added annually. At

the end of the term an additional Terminal Bonus may be paid depending on the

performance of the underlying investment.

Easy steps to get insured are:

Choose your retirement age

Estimate the post – retirement income you require.

Work out the premium payable with your Financial Consultant.



UNITLINKEDPENSIONPLAN:

Lead a life of respect and dignity. Even after retirement today, one is busy climbing

the ladder of success and realizing their dreams. Today, time is with you. Just take a

moment and think. Will you be able to continue at the same pace? Will your income

be the same forever? Will you be able to live life on your own terms even after you

retire?

HDFC UNIT LINKED PENSION PLAN

HDFC understands ones need to build a secure future for themself.The HDFC Unit

Linked Pension Plan is an insurance policy that is designed to provide a retirement

income for life with the freedom to maximize your investment returns by providing a

choice of thoroughly researched and selected investments.

Stride into your golden years of retirement with dignity and pride. You can choose

your premium and the investment fund or funds. We will then invest your premium,

net of charges in your chosen funds in the proportion you specify.

At the end of the policy term, you will receive the accumulated value of your funds,

which will be used to provide your pension income. In the event of your unfortunate



demise during the policy term, your spouse will receive a cash lump sum to help him

or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you

in the following ways:

Provides a post retirement income for life

Gives you the flexibility to plan your retirement date

Gives you the freedom to invest premiums as per your preference

Offers you potentially higher market linked returns

Give you tax benefits on your premiums and on receiving the lump sum.


Choose your retirement age

Choose the premium you wish to invest, based on your retirement

need.

Choose the investment fund or funds you desire

Endowment Assurance Plan:

You have given your family the very best. And there is no reason why they should not

get the very best in the future too. As a judicious family man, your priority is to

secure the well-being of those who depend on you. Not just for today, but also in the



longterm.More importantly, you have to guard your loved ones against any

eventuality. How will they sustain their way of life, so lovingly built by you, in your

absence?

With our HDFC Endowment Assurance Plan, you can ensure that your family

remains financially independent, even if you are not around. You can ensure that they

live a life of respect and dignity. Always

The HDFCSLIC Endowment Assurance Plan gives:

An ideal way to secure your long-term financial goals

Valuable protection to your family by way of lump sum payment in case of

your unfortunate death within policy term

Provides lump sum payment (basic Sum Assured plus any bonus additions) on

survival up to maturity date

Very flexible benefit options and payment options

In case of your unfortunate demise during the policy term, this participating

(‘With Profits’) insurance plan will pay your family the Sum Assured

(together with the attached bonuses) you had chosen.

The plan receives simple Reversionary Bonuses, which are usually added

annually. At the end of the term an additional Terminal Bonus may be paid

depending on the performance of the underlying investment




Choose the amount of targeted savings and policy term using our financial

planning tool.

Choose from any one of the 4 additional benefit options as per your

requirement.

Work out the premium payable and Sum Assured with our Financial

Consultant.

CHILDREN'S PLAN:

As a parent, your priority is your child’s future and being able to meet your child’s

dreams and aspirations. Today, providing a good education, establishing a

professional career or even a modest wedding is expensive. Costs are increasing fast.

Just imagine how much you’ll need when your child takes these important steps in

life! Plan today to ensure a bright future for your child. Start building savings today

with our HDFC Children’s Plan. So that your child is able to lead a life of respect and

dignity with a secured financial future.

The HDFC Children's Plan gives:

Invaluable financial support to your child

Helps you customize an ideal plan for your child

Provides you multiple options for multiple benefit


http://www.hdfcinsurance.com/singlepgs/contact_finan.asp



The HDFC Children’s Plan is designed to secure your child’s future by giving your

child (the beneficiary) a guaranteed lump sum, on maturity or in case of your

unfortunate demise, early in the policy term. The premiums, paid by you, are invested

by the company to give you good long-term returns.

The plan receives simple Reversionary Bonuses, which are usually added annually. At

the end of the term an additional Terminal Bonus may be paid depending on the

performance of the underlying investment (See ‘Bonuses’ for more details).

Easy steps to follow:

Choose the amount of targeted savings and policy term using our Financial

Planning Tool.

Choose any one of the 3 plan options as per your child's requirement.


Consultant

UNIT LINKED YOUNG STAR PLAN:





As a parent, your priority is your children’s future and being able to meet their dreams

and aspirations. Today, providing a good education, establishing a professional career

or even a modest wedding is expensive. Costs are increasing fast. Just imagine how

much you will need when your children take these important steps in life. Plan today

to ensure a bright future for your children. Start building savings today with the

HDFC Unit Linked Young Star Plan. So that your child is able to lead a life of respect

and dignity with a secured financial future.

The HDFC Unit Linked Young Star Plan gives you:

An outstanding investment opportunity by providing a choice of thoroughly

researched and selected investments.

Valuable protection in case of the insured parent’s unfortunate demise

Very flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

You can choose your premium and the investment fund or funds

We will then invest your premium, net of charges in your chosen funds in the

proportion you specify. At the end of the policy term, you will receive the

accumulated value of your funds In case of your unfortunate demise during the

policy term; HDFC Standard Life will continue the policy AND continue to pay

the original premiums you had chosen. Your family will receive the Sum Assured

you had chosen* plus the fund built up by your and HDFC Standard Life’s

contributions.



Use HDFC Standard Life’s excellent investment options to maximize your savings

and maximize your child’s achievements. We will provide security for your child

and make those savings on your behalf, in your absence

Easy steps to follow:

Choose the premium you wish to invest.

Choose the amount of Protection (Sum Assured) you desire.

Choose the additional benefit options you desire.

Choose the investment fund or funds you desire.

Money Back Plan:

You have always believed in living life on your own terms. So why let the changing

realities of everyday life overwhelm you and make your aspirations take a back seat?

You can plan now to ensure that you have the necessary funds to meet your future

financial needs.

The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:

A proportion of the basic Sum Assured as cash lump sums at regular 5-year

intervals within the policy term (see the table given below) – an ideal way to

secure your long-term as well as short-term financial goals. A lump sum

payment on survival up to maturity date Valuable protection to your family by

way of lump sum payment in case of your unfortunate death within the policy

term. This is over and above any earlier payouts Making the right kind of

investment will enable you to achieve your objectives – be it your immediate



expenses or else securing your future financial needs. Our Money Back Plan

gives you a wide range of terms and cash benefit schedule to choose from. A

summary of Key Benefits including the cash lump sum payments, expressed as a

percentage of Sum Assured is shown below.

Maturity Value:

On maturity you receive survival benefit due at that point of time along with attaching

bonuses for the full Sum Assured calculated for the full term. You can ensure your

financial independence. And be able to live life on your own terms.

Steps to be followed:

Choose the amount of targeted savings and policy term using our Financial

Planning Tool.

Choose from any one of the 4 additional optional benefits as per your

requirement.


Consultant

Group Products:

One-stop shop for employee-benefit solutions



HDFC Standard Life has the most comprehensive list of products for

progressive Employers who wish to provide the best and most innovative employee

benefit solutions to their employees. We offer different products for different needs of

employers ranging from term insurance plans for pure protection to voluntary plans

such as superannuation and leave encashment.

HDFC offer the following group products to their esteemed corporate clients:

Group Term Insurance with Riders

Group Term Insurance with Profit-Share

Group Unit-Linked Plan

For Gratuity :

For Defined Benefit Superannuation

For Defined Contribution Superannuation

GROUP TERM INSURANCE


http://www.hdfcinsurance.com/products/group.asp#%23

http://www.hdfcinsurance.com/products/group.asp#%23

http://www.hdfcinsurance.com/products/grp_gulpgg.asp

http://www.hdfcinsurance.com/products/grp_gtistdprop.asp

http://www.hdfcinsurance.com/products/grp_gtistdprop.asp


Whatever the business - it’s the people who make it a success. Everybody requires

some type of life insurance, especially when others depend on them financially. The

Group Term Insurance plan meets precisely this need and serves as an ideal way for

companies to reinforce their bond with their employees. The sort of needs you, as an

employer might have can be: An employee benefit:

A cover for housing loan or vehicle loan given by you to your employees.

A cover for future service gratuity liability to be taken along with the HDFC

SL Group Unit Linked Plan.

The Group Term Insurance (GTI) is a cost-effective plan that addresses these

needs. In Addition you have the choice to opt for a GTI with an experience discount

feature, wherein a discount is given on future premiums in case of favorable claim

experience

The Group Term Insurance plan will have the following structure:

One year renewable term insurance plan

One master policy issued covering all members of the group

Sum assured is payable on death (either due to natural causes or accidents)

Key features of the plan:

Our product has been designed to offer innovative features and a high degree of

Customization. These are

Convenient medical procedures:

The members do not need to undergo any medical examination up to the “Free Cover

Limit”. This limit is dependant upon the sum assured and the size of the group.



Awards and Accolades

March, 2008

Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the

leading Private insurance companies in India, has topped Mint’s Top Television

Advertisement Survey conducted, for February 2008. HDFC Standard Life’s Unit

Linked Savings Plan Advertisement was ranked 4th in terms of a combined score of

ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability,

enjoyment, believability, and Claim). The respondents were between 18 and 40 years.

Mint’s exclusive report, ‘New voices in a makeover’ outlines the survey in detail.

February, 2008

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life,

received the QIMPRO Gold Standard Award 2007 in the business category at the 18th

annual Qimpro Awards function. The award celebrates excellence in individual

performance and highlights the quality achievements of extraordinary individuals in

an era of global competition and expectations.



January, 2008

Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments

HDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious

Advertising & Marketing Moments' over the last 60 years in India,’ by 4Ps

Business and Marketing magazine. The magazine said that HDFC Standard Life is

one of the first private insurers to break the ice using the idea of self respect (Sar Utha

Ke Jiyo) instead of 'death' to convey its brand proposition. This was then, followed by

others including ICCI Prudential, thus giving HDFC Standard Life the credit of

bringing up one such glorious advertising and marketing moment in the last 60 years.

December, 2007

Pension Plan Tops Mint’s Survey of Best TV Ads

HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth

on ad reach in a survey of new television advertisements in November, 2007,

conducted by Mint, the leading business newspaper of the Hindustan Times Group.

Our pension advertising was ranked first in terms of ad diagnostic scores

(likeability, credibility, enjoyment). The respondents were between 18 and 40 years.

We were ranked 8th in terms of a combined score of ad awareness and brand

recall.



September, 2007

Ranked Sixth Most Effective Advertisement

HDFC Standard Life was ranked 6th amongst ‘The 10 most effective ads’ in

September 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor. We

have moved up from 56 th position in August 2007. JuxtConsult’s Ad Box Office is

India’s biggest monthly monitor of most effective television ads amongst urban

consumers. The ranking was based on the total effectiveness of the ad in connecting

the Sar Utha Ke Jiyo ranked 10 th in the Top 10 Top-of-mind ad slogans in

September, 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor.

The ranking was based on how much our ad slogan recalled ‘top of mind’ in the daily

ad clutter.

June, 2007

Received PCQuest Best IT Implementation Award 2007

HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 for

Wonders, its path-breaking implementation of an enterprise-wide workflow system.

PCQuest, the leading IT publication from the CyberMedia Group identified six most

innovative IT implementation projects deployed successfully across India for the

award. The winners of the 4th PCQuest Best IT Implementation Awards were chosen

from 250 nominations across 22 industries and 23 projects ranging from government,

banking finance and insurance, manufacturing, petroleum, and IT/ITES to poultry,

travel and tourism, real estate, construction, power and utilities.



INTRODUCTION TO THE TOPIC



Meaning of Employee Satisfaction:

Employee Satisfaction refers to a person’s feeling on the job, which acts as a

motivation to work. It is not self satisfaction, happiness or self-contentment but

satisfaction on the job. The term refers to the total relationship between an individual

and the employer for which he is paid.

Definition of Employee Satisfaction

Employee Satisfaction is defined as “a pleasurable emotional state resulting

from the appraisal of one’s job as achieving or facilitating the achievement of one’s

job values”.

In contrast, employee dissatisfaction is defined as “the unpleasurable emotional state

resulting from the appraisal of one’s job as frustrating or blocking the attainment of

one’s job values or as entailing disvalues”.

Why do we need to study “Employee Satisfaction”?

"Employee satisfaction" helps a Company to maintain certain standards &

increase productivity by motivating the employees. This study helps to show how

much the employees are capable & their interests at the work place, what are the

things still needed to be satisfied for the employees. Although "Human Resources"

are the most important resources for any organization, to study employee satisfaction

helps to understand the working conditions & those factors that affect employees and



their working capabilities. It is seen that in the recent times most of the work are

carried out by machines/equipments but without any Manual moments nothing can be

done to its full extent. Hence the study on Employee Satisfaction has gained high

importance in today’s business world.

Why Is Employee Satisfaction So Important?

If articles were published in the 1940’s or 1950’s regarding employee satisfaction,

some senior managers might question its importance or, possibly, even its relevance

to the business community. Many in senior management feel that their employees are

satisfied because they have a job to go to and their payroll checks cleared every week.

Other experienced executives are heard of saying, “Of course, our staff is satisfied.

They show up and continue working for us for years.”

As most companies are now aware, the choices, information, communication, and

mindset of most employees are quite different in the new millennium. Employees are

more focused on their career development and work/life balance. If their current

employer cannot or will not provide the environment they desire, they will simply surf

the Internet, viewing job boards, dealing with respected professional placement firms,

or visit other career websites to seek new opportunities. The playing field, once

weighted in favor of the employer, is much more equal now.

Improving and maintaining employee satisfaction results in better staff retention,

since there are fewer reasons to look elsewhere. To improve one’s report card, were it

to be completed by the staff, should be a goal of the Company and their Management.

The cost of employee dissatisfaction and high turnover can, by itself, severely damage

a company’s bottom line.



Factors of Employee Satisfaction :

There are different factors on which employee satisfaction depends. Some of

the important factors are further discussed-

Personal Factors:

They include an employee’s sex, education, age, marital status and their

personal characteristics, family background, socio-economic background, etc.

Factors inherent in the Job:

These factors have recently been studied and found to be important in the

selection of employees. Instead of being guided by their co-workers and supervisors,

the skilled workers would rather like to be guided by their own inclination to choose

jobs in consideration of ‘what they have to do’.

These factors include:

The work itself

Conditions

Influence of internal and external environment on the job which are controlled



by the management.

Factors controlled by the Management

They include the nature of supervision, job security, kind of work group, wage

rate, promotional opportunities, and transfer policy, duration of work and sense of

responsibilities.

All these factors greatly influence the workers to large extents. Their presence

in the organization motivates the workers and provides a sense of employee

satisfaction.

Benefits of Employee Satisfaction

1. Employee Satisfaction contributes to sound superior-subordinate relations.

2. Employee Satisfaction reduces employee grievances. Further satisfied

employees will follow the company rules and regulations as it will reduce

employee indiscipline.

3. Employee Satisfaction leads to employee commitment to industrial peace by

avoiding the occurrence of industrial disputes.

4. Employee Satisfaction helps the employees to build teams easily so as to

maximize their contribution. Further more modern techniques of human

resource management like empowerment can easily be practiced.

5. Further implementation of enterprise resource planning and business process

reengineering can be possible with employee satisfaction.

Importance of Employee Satisfaction



Employee satisfaction plays a vital role in the success of the organization.

High employee satisfaction keeps employees loyal to the job, profession and

organization. This leads to employee commitment and sincerity. The committed and

sincere employees not only plan out their individual work but also the work of the

group ant ht entire department. Further, the committed employees contribute their

human resources to the maximum extent of their job.

Financial consultant

Financial Consultant are nothing but the company’s representatives who sell

insurance policy to the customers .Their appeal towards the customer should be very

polite , and they should also have a clear idea about their competitor’s products in the

same space to be an effective salesman who can sell company ‘s product to his level

best.

The company is having many channels of distribution to sell their products. Financial

consultants are one of the channels of distribution of the company who actually plays

the role of guiding the customers to invest their earnings and savings in insurance,

from which they can get commission. And their customers also benefit in the form of

returns and also get monetary refunds in the cases of any miscomfort regarding their

health and life, it is also like a property which can also be used to get loans from

banks.

The new companies are looking for educated, aware individuals with marketing flair,

an elite group who can be attracted only with high remuneration and the lure of a

fashionable job, all of which may not be possible in this business with its price

pressures and the complexity of selling insurance. Unable to attract this segment, they



have started easing recruitment conditions as against the stringent norms they had

earlier, there by diluting the process.

The challenge here is the lack of knowledge of the competitive market and the

inability to do intelligent comparisons with the competitor’s products. Educating and

training these agents is a serious challenge for the insurance company.

The relevance of this kind of agent continues even today as agents are sought or

contracted by families by word of mouth. Insurance companies are advised not to

follow the path of FMCG’s /credit card companies, believing that a suited and booted

customer care consultant or financial consultant will necessarily appeal to the average

Indian customer.

For Becoming Consultant rules and regulation as follows:

1) What exactly they Need to Do?

As an HDFC Standard Life Insurance Consultants, they have to work with

individuals, families and business to understand their protection and

investment needs, and identify solutions that best fit their requirements. To

help make their task easier, they are having companies access over vast

support system of over branches at locations.

2) What Qualification they Need?



Their age should be atleast 18 years old.

The Candidate has passed at least 12th from a recognized State or

Central Board if he/she is from urban area.

The Candidate has passed at least 10th from a recognized State or

Central Board if he/she is from rural area.

They all need to sell policies is a Consultants Certification by training

at recognized institute.

The IRDA also conducts examination, which every candidate must

pass, as to become a Financial Consultant.

3) Do they NEED Selling or Financial Experience?

No, this not necessary. HDFC Standard Life will equip with all the

information and knowledge you need, through training programs entirely

sponsored by the company.

4) Can they Work Part-Time?

Yes, they can. Several consultants have started with the company as a part

time basis and then, as their business grew, become full time consultants.

5) Can they keep Their Current Job?



Of Course! The only limitation is that as an individual, you may not take up a

job as a consultant with any other life insurance company. While most of the

training costs are borne by HDFC Standard Life, you need to pay for a small

component as a joining fee, which covers your examination charges and your

licensing charges, among other expenses.

RESEARCH DESIGN



Problem statement: To analyze the satisfaction level of the Financial

Consultants with HDFC standard life.

Approach to the problem:

1. Research Methodology:

In order to achieve the below objectives following research design was adopted.

Objectives of Study:

To study the role of financial consultants in HDFC standard life insurance.



To find out the key motivational factors of the financial consultants.

To measure the satisfaction level of the financial consultants towards the

support of the superiors in achieving their target.

To study about the training and guidance provided to the financial consultants.

To study the satisfaction level of the financial consultants towards company

2. Sample profile:

Sample Size: 100 respondents

3. Sources of Data:

For the purpose of research study the data from two sources has been collected

mainly,

Primary Data

Secondary Data

1) Primary Data :

Primary data was collected by conducting a survey in the company, with

the help of questionnaire and by interviewing the financial consultants in the

company. Data of the financial consultants have taken from the company.

2) Secondary Data :

Pamphlets, News Papers, journal, Company register.

MEASUREMENT TECHNIQUE:



Sampling Method : Convenience sampling

Sample size : 100

Sampling Technique : Personal Interview

Sampling Unit : Financial Consultant

Area : Belgaum

Duration : 16th June2008 to 14th Aug2008

LIMITATIONS:

Project is limited to Financial Consultants of HDFC Standard Life

Belgaum city.

The scope of the study is restricted to the time constraint.

DATA ANALYSIS



FINANCIAL CONSULTANTS PROFILE:


Age

53 53.0 53.0 53.0

31 31.0 31.0 84.0

12 12.0 12.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

20 - 30

30 - 40

40 - 50

50 - 60

Total

ValidFrequency Percent Valid Percent

CumulativePercent


Interpretation : The above pie chart gives the breakup of financial consultants

(FC’s) lying between different age groups of which it is being observed that

maximum percentage of FC’s lie between the age 20 -30.


Sex

70 70.0 70.0 70.0

30 30.0 30.0 100.0

100 100.0 100.0

Male

Female

Total


CumulativePercent


Sex

30.0%

70.0%

Female

Male

Interpretation: From the above pie chart it can be observed that the major portion

of FC’s is being dominated by male since the work involves lot of travel.


Martial Status

48 48.0 48.0 48.0

52 52.0 52.0 100.0

100 100.0 100.0

Married

Unmarried

Total


CumulativePercent


Interpretation: From the above pie chart it is being observed that a major part of

FC’s is among the unmarried personals.



Education Qualification

7 7.0 7.0 7.0

24 24.0 24.0 31.0

34 34.0 34.0 65.0

15 15.0 15.0 80.0

20 20.0 20.0 100.0

100 100.0 100.0

SSLC

12th

Graduate

Post Graduate

Others

Total


CumulativePercent

Education Qualification

20.0%

15.0%

34.0%

24.0%

7.0%Others

Post Graduate

Graduate

12th

SSLC

Interpretation: According to the pie chart most of the FC’s are Graduate & 24% of

them are 12th pass & 20% of them belong to other qualification, 15% of the FC’s are

post graduate & 7% of FC’s are 10th pass.



Employed

81 81.0 81.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

Part Time

Full TIme

Total


CumulativePercent

Employed

19.0%

81.0%

Full TIme

Part Time

Interpretation: From the above pie chart it is observed that out of 100 respondents

81% of financial consultants are working for part time as to earn more.



Since how many years you have been working as Financial Consultant for HDFCSLIC.

24 24.0 24.0 24.0

43 43.0 43.0 67.0

25 25.0 25.0 92.0

8 8.0 8.0 100.0

100 100.0 100.0

6months & above

1year -- 3year

3year--4year

4year & above

Total


CumulativePercent

Since how many years you have been working as FC for HDFC SLIC

8.0%

25.0%

43.0%

24.0%

4year & above

3year--4year

1year -- 3year

6months & above

Interpretation: It seems that most of the FC’s are working from 3 years and below

followed by those working below 4 years.



What made you to choose career in HDFC?

10 10.0 10.0 10.0

39 39.0 39.0 49.0

20 20.0 20.0 69.0

16 16.0 16.0 85.0

15 15.0 15.0 100.0

100 100.0 100.0

Brand Name

Incentives

Opportunities

Growth

Others

Total


CumulativePercent

What made you to choose career in HDFC?

15.0%

16.0%

20.0%

39.0%

10.0%Others

Growth

Opportunities

Incentives

Brand Name



Interpretation: It is being observed that 39% of the total FC’s join HDFC because

of the attractive incentives offered by the company followed by the exciting

opportunities they get by HDFC.

Are you happy with the training and guidance that is being provided bythe company ?

96 96.0 96.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Yes

No

Total


CumulativePercent



Interpretation: 4% FC’s say that they are not happy with the training & guidance

because language becomes a problem & 96 %FC’s are happy with training &

guidance provided by the company.

How do you rate the satisfaction level with respect to training and guidance givenby the company ?

15 15.0 15.0 15.0

73 73.0 73.0 88.0

9 9.0 9.0 97.0

3 3.0 3.0 100.0

100 100.0 100.0

Highly Statisfied

Satisfied

Neither\Nor

Dissatisfied

Total


CumulativePercent



Interpretation: 88% of them are satisfied with training & guidance that is being

provided, 3% of them are dissatisfied with respect to training & guidance.

Do superiors provide their assistance & support in achieving target?

96 96.0 96.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Yes

No

Total


CumulativePercent



Interpretation: Most of superiors extend their assistance for achieving the target .



Your job satisfaction level towards the company ?

4 4.0 4.0 4.0

82 82.0 82.0 86.0

11 11.0 11.0 97.0

2 2.0 2.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

Highly Satisfied

Satisfied

Average

Disatisfied

Highly Dissatisfied

Total


CumulativePercent

Interpretation: From the above pie chart it is observed that 82% of the Fc’s are

satisfied with their job in the company, 4% of the FC’s are highly satisfied ,11% of

the FC’s are unable to say anything about the satisfaction level, 2% are dissatisfied

and 1% are highly dissatisfied.



Which products do you feel, sell easily in the market?

5 5.0 5.0 5.0

5 5.0 5.0 10.0

14 14.0 14.0 24.0

14 14.0 14.0 38.0

62 62.0 62.0 100.0

100 100.0 100.0

Protection Plan

Investment Plan

Pension Plan

Savings Plan

Unit Linked Plan

Total


CumulativePercent

Interpretation: From the above pie chart it is depicted that, 62% FC’s say that unit

linked plans are easily movable in the market, as compared to other plans.



What difficulties arise in selling the products?

18 18.0 18.0 18.0

47 47.0 47.0 65.0

18 18.0 18.0 83.0

17 17.0 17.0 100.0

100 100.0 100.0

Brand Image

Price Range

Returns

Security

Total


CumulativePercent

Interpretation: From the above pie chart it is observed that 47% FC’s say that price

range is a difficulty to sell their product, , 18% of the FC’s say that returns and brand

image is a difficulty to sell , 17% FC’s say that security is a difficulty to sell.



Do the promotional activities help the financial consultants to sell the productseasily in the market.

7 7.0 7.0 7.0

78 78.0 78.0 85.0

12 12.0 12.0 97.0

3 3.0 3.0 100.0

100 100.0 100.0

Highly AGREE

Agree

Neither\Nor

Disagree

Total


CumulativePercent

Interpretation: From the above pie chart it is observed that out of 100 respondents,

78% FC’s say that promotional activities help them to sell their products,



Performance of company's available product in terms of sales.

2 2.0 2.0 2.0

48 48.0 48.0 50.0

45 45.0 45.0 95.0

3 3.0 3.0 98.0

2 2.0 2.0 100.0

100 100.0 100.0

Very Good

Good

Average

Bad

Very Bad

Total


CumulativePercent

Performance of company's available product in terms of sales.

2.0%

3.0%

45.0%48.0%

2.0%

Very Bad

Bad

AverageGood

Very Good

Interpretation: From the above pie chart it is observed that, 48% FC’s say that

performance of company’s is good in terms of sales, 45% FC’s say that performance



of companies is average, 3% FC’s say that performance of companies is bad and 2%

FC’s say that companies performance is very good .

Are you satisfied with the commission structure given by the company?

14 14.0 14.0 14.0

57 57.0 57.0 71.0

22 22.0 22.0 93.0

6 6.0 6.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

Highly Satisfied

Satisfied

Average

Dissatisfied

Highly Dissatisfied

Total


CumulativePercent



Interpretation: from the above chart we can say that 57% of them are satisfied with

the commission structure offered by HDFC and 7% are dissatisfied with commission

structure.

Do you wish to continue with HDFC standard life insurance?

91 91.0 91.0 91.0

9 9.0 9.0 100.0

100 100.0 100.0

Yes

No

Total


CumulativePercent



Interpretation: From the above pie chart it is observed that out of 100 respondents,

91% FC’s say that they would like to continue with the company HDFC and 9% FC’s

say that they wouldn’t like to discontinue with the company.

FINDINGS



FINDINGS:

1 According to survey most of the Financial Consultants (FC”s) are working since

1- 3 years.



2 Incentive is the major factor which makes the financial consultant to choose career

in HDFC.

3 96% are satisfied with the training & guidance provided by the company.

4 Financial Consultants get support in selling the products with promotional activities,

this acts as motivational factor.

5 57% of the FC’s are satisfied with the commission structure.



RECOMMENDATIONS

RECOMMENDATIONS:



Company should continue to provide attractive incentives to financial

consultants even after one year as they give more importance for incentives.

Company should give extra benefit to its efficient Agents which will motivate

them to get more business and achieve their larger Sales.

The target given to the FC’s should be realistic, So that it does not demotivate

them.

The procedure of getting insurance policy is hectic and time consuming, which

should be simplified so that the FC’s work more efficiently.



CONCLUSION





CONCULSION :

HDFC Standard Life Insurance is one of the private life insurance company in

Indian insurance industry. There is training and guidance to financial consultants to

explain about the products.. Superiors take keen interest in providing assistance and

support to their sub ordinates to achieve their above said target.

Whenever company launches a new product, company conducts some

functions or training program to educate their financial consultants, which ensures

direct interaction with existing costumers. There is a ‘NEW AGENT DAY’ to

boost the new agents in their work.



BIBLIOGRAPHY



BIBLIOGRAPHY

Website:

www.hdfcstdlife.com

www.irda.com

Documents: Pamphlets of different products of HDFC,

A sample of questionnaire which is surveyed

Books: Human Resource Development by Subba Rao,

Marketing research by Tull & Hawkins


http://www.irda.com/

http://www.hdfcstdlife.com/


ANNEXURE



Dear Sir / Madam

FINANCIAL CONSULTANTS PROFILE

Name : ...................................... .......... . Contact

No:......................................

Address: ..………………………………………. Age : ………….

…………………………………….

Sex: Male ( ) Female ( ) Marital Status: Married ( ) Unmarried ( )

Education Qualification: a) SSLC ( ) b) 12th ( ) c) Graduate ( )

d) Post Graduate ( ) e) Others ( )

Employed: a) Part time ( ) b) Full time ( )

1 Since how many years you have been working as Financial Consultant for

HDFC standard life Insurance.

a) 6months & below ( ) b) 1 year -- 3 year ( )

c) 3year -- 4 year ( ) d) 4year -- above ( )

2 What made you to choose career in HDFC?

a) Brand name ( ) b) Incentives ( )

c) Opportunities ( ) d) Growth ( )

e) Others …………………………………..

3 Are you happy with the training and guidance that is being provided by the

Company?

a) Yes ( ) b) No ( )

4 How do you rate the satisfaction level with respect to training and guidance given

by the company?



a) Highly satisfied ( ) b) Satisfied ( ) c) Neither\Nor ( )

d) Dissatisfied ( ) e) Highly dissatisfied ( )

5 Do you think your superiors provide their assistance and support in achieving

your required target?

a) Yes ( ) b) No ( )

6 Your job satisfaction level towards the company?

a) Highly satisfied ( ) b) Satisfied ( ) c) Average ( )


7 Which products do you feel, sell easily in the market?

a) Protection plan ( ) b) Investment plan( ) c) Pension plan ( )

d) Saving plan ( ) e) Unit linked plan ( )

8 What difficulties arise in selling our products?

a) Brand image ( ) b) Price range ( ) c) Past records ( )

d) Returns ( ) e) Security ( )

9 Do the promotional activities help the financial consultants to sell the products

. easily in the market.

a) Highly Agree ( ) b) Agree ( ) c) Neither/Nor ( )

d) Disagree ( ) e) Highly Disagree ( )

10 How do you rate the performance of companies’ available product in terms of

sales?

a) Very good ( ) b) Good ( ) c) Average ( ) d) Bad ( ) e) Very bad ( )

11 Are you satisfied with the commission structure given by the company?

a) Highly satisfied ( ) b) Satisfied ( ) c) Average ( )


12. Do you wish to continue with HDFC standard life insurance?

a) Yes ( ) b) No ( )

13. What recommendations would you like to give us in order to improve upon

the Performance?

…………………………………………………………………………..

…………………………………………………………………………..



Thank For Your Valuable Response


Economy & Finance

A project report on satisfaction level of the financial consultants at hdfc