Hdfc Life Insurance

SUMMER TRAINING REPORT ON “RECRUITMENT OF CERTIFIED FINANCIAL CONSULTANTS” IN

GOMTI NAGAR, LUCKNOW A REPORT SUBMITTED FOR THE PARTIAL FULLFILLMENT OF MBA SESSION 2007-2009 SUBMITTED TO

Mr. Mohit Saxena Assistant Manager-Channel Development SUBMITTED BY

Vivek Verma MBA (III SEMESTER)

INSTITUTE OF CO-OPERATIVE &CORPORATE MANAGEMENT RESEARCH &TRAINING RING ROAD, INDIRA NAGAR, LUCKNOW

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CONTENTS 1 Preface 2 Acknowledgements 3 Declarations

Introduction What is insurance History of Insurance Sector IRDA Life Insurance in India Importance of Life Insurance

Company Profile About HDFC SLIC Board of Directors

Products & Services Individual Products Group Products Social Products Tax Benefits

Research Methodology Profiling of prospects Skim natural market Leads generation Mode of contacting prospects Total no. of people contacted

Channel Development Why to Recruit? Who to recruit? How to Recruit? Recruitment Activities Things to check while recruiting Advisor Role The Support Packages to make a successful advisor SWOT Analysis Research Methodolog

PREFACE 2

Prospect search, fallow up & identifying the different hiring practices performed by different companies for different levels is one of the most important area to any business entity whether it represents public sector or private sector or service sector. Every company needs to hire the right manpower at the right job for that they hire search firms or job portals. And it comes from market research, due to this it is easy to understand the psychology of the candidate so the company gets the best use of the manpower he is recruiting for the job. And compete the competitor, and improve.

The basic objective of this report is to "Recruitment of Consultants at Lucknow city."

ACKNOWLEDGEMENT 3

At the outset, I would like to place on record my gratitude to all those who have been instrumental in shaping up this project with their guidance and inspiration.

express my hearty respect and profound thanks to Mr R. K. Verma(Director) a for their valuable guidance in completing my project.

I am deeply indebted to Mr. Mohit Saxena (Channel Development Manager), HDFC Standard life Insurance), whose sincere cooperation in directing and guiding me enabled the project to assume its systematic shape.

I am also thankful to all the Financial Consultants who guided me on various aspects during the project. I am also grateful to Mr Tarun Singh Gangwar (Assistant Professor, ICCMRT) for his constant inspiration, supervision and guidance for this work has helped me immensely to present the work in a nice way.

Last but not the least I must express my gratitude to my family and various friends who gave moral support for completing this project work.

Ravindra Nath

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INTRODUCTIO N

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WHAT IS INSURANCE? Insurance is not necessarily an investment from which one expects to get ones back. Nor it is gambling a gambler takes risks. While insurance offers protection against risks that already exist “Insurance is a way to share risk with others”.

The Origin of Insurance Insurance has existed for thousand of years a form of credit insurance was included in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of mosses for finance their trading expeditions in ancient times. Ship owners obtained loans from investors, if a ship was lost the owners were not responsible for paying back the loans since many ship returned safely. The interest paid by numerous ship owners’ ship owners covered the risk to the lenders. It was likewise in a maritime setting that later one of the world’s most famous insurance providers. Lloyd’s of London was born By 1688, Edward famous insurance provider accepts in exchange for certain payment, to premium. These insurers came to be known as underwriters. Finally in 1769 Lloyd’s became a formal group of underwriters that in time grew into the foremost market for marine risks.

What if I already have Life Insurance ? As an individual for the extent of financial protection you need is from that a married man which in turn is different from that as a parent. At each life stage, it is necessary to re- evaluate the amount of protection and provision you require and adjust for the same. Below are some of the events in your life for which you should re-evaluate and plan your life insurance needs. 6

Life Stages Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly.

STAGE 1 Young and Single An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early. Our needs Save for a home and wedding Tax Planning Save for Golden years

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STAGE 2 Just Married Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life , it is equally important to ensure that eventualities don’t come in the way of shaping your dreams. Our needs Planning for home / securing your home loan liability Save for vacation Save for your first child STAGE 3 Proud Parents

Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your child’s dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Our needs Provide for children’s education Safeguarding family against loan liabilities Savings for post-retirement

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STAGE 4 Planning for Retirement While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Our needs Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years

How much Insurance do I need ? The main purpose of life insurance is to provide a financial cushion to urn loved ones in the event that something unfortunate should happen to you. One must provide enough, so as to generate a future income stream that will take care of the financial needs of their dependants. How much insurance you need depends on your annual income, your expenses and your existing assets. Concept of Human life value Generally speaking, one can estimate the extent of life insurance by calculating one’s “human Life Value (HLV). This is the net present value of one’s future earnings. Put simply, it is the amount that a person’s family would permanently lose, should any thing unfortunate happen to that person. As a tomb rule, a 30 year old should insure oneself for about 8 times hrs or her 9

annual income. At 35, this is about 6 times. Of course the exact amount must be adjusted according to the number of dependents, existing investments and one’s life stage. For instance, if at 30 a person has two children and parents to provide for, the amount of insurance should also be higher. You can calculate your Human Life Value by multiplying your current annual income with the number of years remaining for your retirement. Let’s assume that you are 30 years old and you earn Rs.4, 00,000 per annum. Now if your retirement age in 55 you have 25 years to go before retirement. So your Human Life Value is (25 x 4, 00,000) = Rs. 100, 00,000 (One Crore rupees). So, your present Human life Value is one crore rupees, provided you stay healthy. You take factors like inflation and increase in income over a period of time to account your Human Life Value is a lot more. The History of Insurance in India : The India Insurance market has a grand history. The development of insurance states back of the 19th century when the Europeans started the Oriental Life Insurance Company, Calcutta in 1888. The first India Insurance Company Bombay Mutual life Insurance came into existing 1870 to cover India lives at normal rates. The year 1870 is also important in the sense at British government for the first time act that year. Four years later Firoz shah Mehta one of the doyens of India Financial Sector, Oriental Government established the Oriental Government Security Life Assurance Company and after that many Insurance companies in surfaced on Indian soil. However the first Indian insurance act was passed on 1912, again in 1938 an amendment in 1950 when it was nationalized however the sector was once again thrown open to the private sector in Dec 10

1999 followed by the establishment of IRDA (Insurance Regulatory and Development Authority in April 2000. The Indian Insurance Industry was dominated by two states Insures the Life Insurance Corporation in Life Insurance and The General Insurance Nationalization of the Life and non Life sector in 1956 and 1972 respectively. In dec 99 the IRDA act was passed which limited foreign investors to a 26% cap on equity participation, and minimum capital requirement of $20 million. At present, more than 20 private players are in the market and some are in the pipeline. The advent of the new kids poses to LIC to some what extent, door which LIC will have to change its current polices regarding marketing and product management.

The Life Insurance Scenario in India : Since 1956, with the nationalization if insurance Industry, the states run Life Insurance Corporation of India has held the monopoly in country’s life insurance sector. General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the casualty sector. Over the time, taking advantages of its monopoly and virtual prerogative in establishing the premiums, LIC has evolved in to a monolith. With around 60000 agents in ever nook and corner of the vast country, it has created an enviable brand name. Particularly among the rural population of the country. It has around $40 billion as its financial sector. However, on the qualitative side, it has every little pride in, and there lies the potential for players to challenge this behemoth. As typical with monopolies, the premiums rates charged LIC are among the highest in the world, and its track record in customer service can at best be called shabby. With a huge unionized, rigid workforce mostly in clerical category. LIC run the risk of high fixed cost, which will be the deciding factor productivity in the competitive scenario. While boasting full scale automations 11

of its operation, the truth is that its technology outdated. The new players. With the state of the art technology under the belt, will be in advantageous position . 80% of LIC’s business is procured by 20% of its ill trained agent force. The foreign player with the domestic partner’s string brand value, can test the unconventional distribution channels like brokers, the Internet the banking distribution system etc., although foreign players may be tempted to keep their operations in big cities for the ‘cream layer’ of the society, the real market lies in rural India, which accounts for the lions share of LIC‘s present business. The foreign players must adapt to Indian realities, the well published failures of the world famous consumer goods companies like Electrolux, whirlpool, Reebok, and Nike etc. to gauge the Indian Psyche and sentiments demonstrate the concept. They failed in the area of realistic pricing, product promotion and reaching to the consumer. The foreign companies know the ground realities to the details.

Endowment Policy, India An endowment policy covers risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy. An endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy.Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment. Endowment policy is an instrument of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death.

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GROUP INSURANCE, INDIA roup insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives, weaker sections of society, etc. It also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Group insurance plans have low premiums. Such plans are particularly beneficial to those for whom other regular policies are a costlier proposition. Group insurance plans extend cover to large segments of the population including those who cannot afford individual insurance. A number of group insurance schemes have been designed for various groups. These include employer-employee groups, associations of professionals (such as doctors, lawyers, chartered accountants etc.), and members of cooperative banks, welfare funds, credit societies and weaker sections of society.

JOINT LIFE INSURANCE POLICY, INDIA Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders, apart form covering risks like all life insurance policies. But joint life policies are categorized separately as they cover two lives simultaneously, thus offering a unique advantage in some cases, notably, for a married couple or for partners in a business firm. Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date.

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LOAN COVER TERM ASSURANCE POLICY, INDIA Loan cover term assurance policy is an insurance policy, which covers a home loan. Such a policy covers the individual's home loan amount in case of an eventuality. The cover on such a policy keeps reducing with the passage of time as individuals keep paying their EMIs (equated monthly installments) regularly, which reduces the loan amount. This plan provides a lump sum in case of death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. Various insurance companies offering loan repayment protection insurance policy are 

HDFC Standard Life Insurance

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Tata AIG

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ING Vysya

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LIC

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MONEY BACK POLICY, INDIA Money back policy provides for periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive. They differ from endowment policy in the sense that in endowment policy survival benefits are payable only at the end of the endowment period. An important feature of money back policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money-back components. The bonus is also calculated on the full sum assured.

PENSION PLAN, INDIA A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years. Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period. Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. 15

TERM LIFE INSURANCE POLICY, INDIA Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy. No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value.

UNIT LINKED INSURANCE PLANS (ULIP) Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time. ULIP provides multiple benefits to the consumer. The benefits include: 

Life protection

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Investment and Savings

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Flexibility

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Adjustable Life Cover

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Investment Options

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Transparency

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Options to take additional cover against

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Death due to accident

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Disability

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Critical Illness

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Surgeries

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Liquidity

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Tax planning

WHOLE LIFE INSURANCE POLICY, INDIA A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life of the policyholder, therefore, such policies are known as whole life policies. A simple whole life policy requires the insurer to pay regular premiums throughout the life. In a whole life policy, the insured amount and the bonus is payable only to the nominee of the beneficiary upon the death of the policyholder. There is no survival benefit as the policyholder is not entitled to any money during his / her own lifetime.

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WHY LIFE INSURANCE Life Insurance has come a long way from the earlier days when it was originally conceived medium for short periods of to me. Covering temporary risk situation, such as sea voyages. As life Insurance became more established, it was realized what a useful tool it was for a number of including.

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Temporary need / threats : The original purpose of the life Insurance remains an important elements, namely for replacement of income on death etc.

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Regular Saving: Providing for one’s family and oneself, as a medium to long term exercise (through a series of regular payment or premiums) This has become more relevant in recent times as people sect financial independence for their family.

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Investment: Put simply the building up of saving while safeguarding it forms the ravages of inflation. Unlike regular saving products, investment products are traidanailly lump sum investment, where the individual likes a one off payment.

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Retirement Provisions for later years become increasingly necessary, especially in cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age.

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REVIEW OF INSURANCE SECTOR India is having population of 1 Billion with a middle class population estimated up to 300 million. It being the 5th largest economy in the world in terms of Purchasing Power Parity (PPP) has a GDP growth rate of over 6%per year on an average for the last decades. The saving rate is estimated to be about 26% of the GDP. In the total population, the insured the population is estimated to be about 70 million.

Privatization of Insurance: The Indian insurance Sector has finally opened up and it is with much anticipation that new players are awaiting their share of market. License have been issued to both Indian and foreign Players reliance , HDFC standard –life , Max India – Network , Royal Sundaram Alliance, ICICI prudential , IFFCO Tokyo Marine, Bajaj Allianz , Birla Sun life, Tata AIG, AVIVA life Insurance , SBI life , Om Kotak Mahindra are some of the entrants into the newly liberalized Indian insurance market. ICICI Prudential and HDFC Standard life have issued their life policies from the private sector after 45 years. The first move for the liberalization came with the Malhotra Committee Report in 1993 which recommended the privatization of Insurance, setting of an insurance regulatory authority and restructuring the government monopoly LIC and GIC and its subsidiaries IRDA Act passed in November 1999 had set ball rolling for the entry of Private Players in domestic sector.

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LIBERALIZATION OF INSURANCE SECTOR: Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. When world over insurance market has been opened up. India cannot remain in isolation. History has shown that it is very difficult to proper in isolation. Globalization is the new economic reality, which is here to stay, heralding a new era of Insurance in India. With the opening of the insurance industry, Indian stands to gain with the following major advantages.  Globalization will provide opportunities to the consumer for the better production. With more reasonable and affordable pricing.  The customer will get quicker service.  It will enhance the saving rate.  Long term funds for infrastructure development will be available to the country.  It will secure for India larger inflow of foreign capital need to sustain our GDP growth.

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Advantages of Liberalization:  The opening up will enable the country to save more and invest more for the development in infrastructure.  With new insurance intermediaries and more distribution channels the market is bound to develop by leaps and bounds.  In the next few years it is established that the Indian insurance sector will developed a better understanding of consumer requirement leading to more satisfaction of consumers.  Lead to increase in employment.  Social and rural obligations will also be served as IRDA has come out with clear regulation in this regard which makes the development in this area mandatory.  Global competition will help in building expertise with their global practice.

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IRDA The Insurance sector has been opened up in India, as there was an urgent need. The international experience indicates those country with a liberalized insurance sector have witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This happened in China, Malaysia and Singapore where a competitive market has led to improvement in Services and Quicker settlement of claims. It is also important to note that competition will bring about advancement in information, communication and technology. And rightly there force a decision was taken by the Government of India to open up Insurance sector. The establishment of IRDA in the month of April 2000 has been important development in this direction, making the end of monopoly in the insurance sector.

Why Insurance in India  Only 22% of the insurance population has been extended cover. Market penetration is low and the potential to exploit is high.  Insurance premium per capital is very low.  Lack of comprehensive social system benefit and welfare means that demand for pension products is high.  Huge middle class of approximately 300 million.  Existing insurance company score low on customer service front.

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Need of brand name in Insurance: Branding is the new key challenge in the financial services industry. Life in the 21st century will be longer with more choice in more field of activity. The financial consequence of the increased life span is particularly likely to be tough. Inevitably, this will lead to more complexity, which in turn necessities greater clarity and appeal from the service providers. Branding is more important in the financial services market which not only faces the problem of securing and retaining customers in an increasing competitive market place but also experience the need for heightened relevance of the brand positioning in world where brand has been termed as new religion. Life Insurance Company LIC ICICI Prudential HDFC Standard Life Birla Sun life Bajaj Allianz

Focus and strategies are essential for development of brand in any sector but the less tangible world of financial products historically has escaped the branding issues that have governed development and culture in other industries. If there was an industry, which is least, considered as an essentiality it would be the insurance industry. It was always felt as abstract services or a fall back, more likely a safety net. But it is more of shifting through competitive products to select most appropriate one, but with liberalization of the industry, players have to realize the need for branding in competitive environment. Insurance companies need to strive for a greater

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customer focus regardless the customer is the end or the intermediary.

Market Share Among Private Companies:

18% 40%

12% 6% 24%

ICICI Plife HDFC Standard Bajaj Allianz Birla Sunlife Others

Market Prudential for Private Life Insurance Companies in India It has been found out that:  85 percent of the Indians prefer LIC than any other insurance companies.  ‘Prevention of Loose’ ‘Assured Returns’ and ‘Long term Investment’ are the important factors influencing Indians in opting for life Insurance  Only few of the Indians are aware of private life insurance companies.  Most of the Indians are of the opinion that private insurance companies would be able to perform well in the long run.  Most of the Indian are interested in ‘Money Back’ Policies than other

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

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Most to them are interested in insuring for an amount of rs.1-2 lakhs. There is significant relationship existing between monthly house hold income and amount insured

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ABOUT HDFC SLIC HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, 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 a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture. Our key strengths Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record so far Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores. The company has covered over 9, 59,000 lives year ending March 31, 2008.

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 FACT SHEET

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing finance institution and Standard Life Assurance Company, Europe's largest mutual life company. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. Standard Life, UK was founded in 1825 and has experience of over 180 years. Companies. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2). HDFC Standard Life's cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far the company has covered over 11,00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with profit' policyholders.

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BOARD MEMBERS Brief profile of the Board of Directors Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.

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Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & 29

Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

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Group Companies

Bancassurance Parteners Some of our valued bancassurance partners.

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PRODUCTS AND SERVICES

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INDIVIDUAL PRODUCTS We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes Term Assurance Plan Loan Cover Term Assurance Plan Home Loan Protection Plan Investment Plans HDFC Standard Life provides you with attractive long term returns through regular bonuses. Our Investment range includes Single Premium Whole Of Life plan Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes Personal Pension Plan Unit Linked Pension, Unit Linked Pension Plus

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Our Immediate Annuity plan will aid you in receiving income post retirement and securing you financial independence. Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs. Our Savings range includes Endowment Assurance Plan Assurance Plan Savings Assurance Plan Children’s Plan Money Back Unit Linked Endowment Unit Linked Endowment Plus Unit Linked Endowment Suvidha Unit Linked Endowment Suvidha Plus Unit Linked Endowment Plus II Unit Linked Young Star Unit Linked Young Star Plus Unit Linked Young Star Suvidha Unit Linked Young Star Suvidha Plus Unit Linked Young Star Plus II Unit Linked Enhanced Life Protection II

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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. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

Social Product Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to that member beneficiary to help meet some of the immediate financial needs following their loss.

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Eligibility Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.

The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the 36

Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members. Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any 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 prospectus or tables of the insurer

Tax Benefits 37

INCOME TAX SECTION

GROSS HOW MUCH HDFC ANNUAL TAX CAN STANDARD SALARY YOU SAVE? LIFE PLANS Upto Rs. Across All 33,990 saved All the life Sec. 80C income on investment insurance plans. Slabs. of Rs. 1, 00,000. Upto Rs. Across all 33,990 saved All the pension Sec. 80 CCC income on Investment plans. slabs. of Rs.1, 00,000. Upto Rs. 3,399 All the health Across all saved on insurance riders Sec. 80 D* income Investment of available with the slabs. Rs. 10,000. conventional plans. Rs. 37,389 TOTAL Rs. 33,990 under Sec. 80C and under Sec. 80 SAVINGS CCC, Rs.3, 399 under Sec. 80 D, calculated for a POSSIBLE male with gross annual income ** exceeding Rs. 10, 00,000. Under Sec. 10(10D), the benefits you receive are Sec. 10 (10)D completely tax-free, subject to the conditions laid down therein. * Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit. ** These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change. Please contact your tax consultant for exact calculation of your tax liabilities.

38

RESEARCH METHODOLOGY

39

OBJECTIVE OF RESEARCH METHODOLOGY To recruit certified financial consultant for HDFC STANDARD LIFE INSURANCE COMPANY • To aware the customer or people about the product of HDFC STANDARD LIFE INSURANCE COMPANY

• To encourage the people for being certified financial consultant in HDFC STANDARD LIFE INSURANCE COMPANY

• To aware the people or customer that if he/she becomes financial

consultant

in

HDFC

STANDARD

LIFE

INSURANCE COMPANY. Then he/she has good chance to fulfill his/her aims in a positive way with lots of benefits.

40

ELIGIBILITY

RANDOM IRDA MANDATORY

PREFERED BY HDFC SLIC 18+ YEARS OF CANDIDATE PREFERED AGE/10+2 PASS SHOULD SCORE HIGH INVALUES AND ETHICS AND SHOULD BE A MATCH WITH HDFC SLIC VALUE WILLING TO UNDERGO AMBITIOUS, SELF 100 HRS IRDA MOTIVATED SHOULD MANDATORY BE ABLE TO BE TRAINING COMMITMENT WITH TIME AND WANTS TO MAKE SERIOUS MONEY HAS NO AGENCY WITH ANY LIFE INSURANCE COMPANY

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1. Profiling of prospect Random observation, personal contacts and individual approach has been used in data collection The target areas for the FCs are CAs, Dr, housewives, student,selfemployed,graduates and retired people. These people are contacted through references given by our colleagues,seniors,family members and so on. The first target areas was housewife’s because the are educated and have the potential to engage in such activities.Also,they want to invest their free time in part time working for better growth These are explained as follows:-

CA/CS CAs being quite active in this field & have knowledge of each & and every aspects of this field. They were being contacted with the data base provided by SDMs

RETIRED PEOPLE Retired people from government jobs were been approaches as their enthusiasm for working did not fade up. The main objective for targeting retired people is their experience, market knowledge, contacts with people, & their readymade image in society.

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GRADUATES Graduates have the ability to work in any situations. The have zeal, power, enthusiasm, & urge to do something. The graduates were been approached as they can flourish their career by being FCs

DOCTORS Doctors are one of the essential target areas of recruiting FCs Doctors meet hundreds of people from every sphere of society everyday. Moreover doctors are hard working people & will be easy to convince to earn an additional income.

SELF-EMPLOYED Self –employed can also proved to be a major group for recruiting FCs. Self – employed people have the opportunity to take the FC ownership in their own name. Also, they do not have fixed hours of working &moreover as is the case with the doctors, their social sphere is not limited

43

HOW DO WE MAKE YOU A FINANCIAL CONSULTANT? 1. The company would support you by providing the required training and regular coaching 2. We also provide information in the form if sales at, so that you are able to provide the best service to costumers. 3. One of the principle responsibilities of our business development manager is to insure that each FC is supported at all times.

WHY RECRUTMENT OF FINANCIAL CONSULTANT These are two aspects of employment in the insurance sector today, one is permanent employment, for sales, operation, it support, back office service and so on. We are also offering the other kind of employment for people to sell Life insurance they are called life financial advisors. This is a big area of employment • Because we are supposed to. • That the way to do this business • More recruits, more active advisors

THINGS TO CHECK WHILE RECRUITING His past/present occupation gives tremendous insight into his energy levels. 1. Show him the path in his current environment how insurance selling can fit in lowers the resistance of time availability. 2. Check his environment, his family locality 3. Find out if he is looking for money or career as can have both here

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4. Energy energy always check the person’s energy level, as career is all about meeting new people, finding new prospect and more so handling rejections. 5. Always try to meet the person at his residence check for the locality, his household standards of living, try to involve the spouse in the presentation so that they know what they are getting into. 6. Always check on need for money and a drive to do well in life if he has been doing well in life he will make efforts to do well with us. 7. Keep checking on the pointers and do mental checks list of the acceptable points 8. Be convinced about the profile and only go ahead

BENEFIT OF RECRUITMENT: 1. High probability of success 2. Tax and financial consultant 3. Bond/and mutual fund agent 4. LIC agent- surrogate 5. Small business owners

ROLE OF FINANCIAL CONSULTANT: TO PROVIDE ON GOING FINANCIAL ADVICE FOR HIS/HER CLIENTS:  Identify future client  Making appointment  Conduct financial review meetings with prospects/clients

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 Close sale  Get referrals  Provide services to clients

FOLLOWS INTERNAL SALES AND REPORTING SYSTEMS: WORKING ENVIRONMENT  To be part of a world class sales team  Work from your own office or residence  Work full time or part time  Earn commissions, bonus and incentives  No upper limits of earning  Flexible career

YOUR OPPORTUNITY:  No stamp capital required  Flexible working environment

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 Be your own boss  Unlimited earning potential

EXTENSIVE TRAINING TO MAKE YOU A PROFESSIONAL ADVISOR STATE OF THE ART TRAINING ON:  Selling skills  Product knowledge  Relationship skills

TRAINING DELIVREY THROUGH SEVERAL CONVINIENT OPTIONS:  Face to face  Online  Self learning

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2-SKIM NATURAL MARKET: The start was made first by the leveraging the natural market i.e. our family, friends, relatives & personal contacts. This helps to list down approximately 50 names and addresses to whom a direct approach is to be made. This skimming of natural market is done first to get handful of addresses and references with who further approach could be made. This approach further turns out to cover the target areas.

48

DIAGRAM SHOWING NATURAL MARKET

3- LEAD GENERATION: Skimming through natural market, generated contacts to various people. This creates an opportunity to categorize people’s interested in HDFC. This generates a lead towards the organizational interest. Getting aware prospects financial position and creating their interest towards HDFC. Short term is the basic criteria of the approaching. It is better described as follows:

Easy way to start on your own: 

Zero investment:

There is no start up capital. Be one’s own boss with a flexible working hour, unlimited earning potential and the opportunity to be part of a world class sales team.

 Flexible work timing, part time or full time: 49

One can work whenever one likes and wherever one likes. One can work fulltime or part time, depending upon ones convenience it’s like no other job. However, time one invests will determine ones success.



Sunrise industry:

Life insurance in India has a huge potential for growth. Statistics reveal that only 25% of the insurable population in India is not insured and those insured are in need of still higher insurance cover. The over 100% growth displayed by private life insurer’s indicating this huge untapped potential.

Professional training programs At HDFC standard life, training is an inherent element of our support system (at no cost) for our new financial consultants. Some of our training & support imitative are as follows:-

•IRDA Training Online training of 100 hours prepare One for One career as FC and enables one to pass the IRDA examination. After the IRDA license, one takes one’s first step towards a successful career as a FC

Basic Training & Induction Independent of one’s working experience; this training will perfect one’s knowledge about the insurance industry along with comprehensive knowledge about HDFC SLIC

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•Disha Training This is a professional sales skill program devised by us to hone one’s selling skills. This program enables one to understand customer needs and provide need based insurance solutions. A huge step from an amateur to a true finance professional.

•Advanced Training:Once one have settled down as a FC professional HDFC will continuously upgrade one’s capability and knowledge through sophisticated training program, fit for this dynamic world of finance product and market.

•Unmatched support:• Market activity support to make our task easier. • Advertising & communication support throughout the year. • Customer friendly Brochures and sales aid to help one in selling insurance solutions to customers. • 24 hours information support,to help one track one’s support and income.



High Potential income:-

•Attractive commission structure & rewards: As a FC one have the opportunity to earn high commission & time to time one also can get rewards according to one’s performance.

•Decide one’s own pay cheque: 51

One’s income earning potential is directly proportional to the effort put in by one. It’s a simple formula the more people one meet, the more one sell & the more one earn. Our commission structure has the liability to give one the maximum benefits for every policy one sells. It’s as easy as writing one’s own pay ceque.

•Long term earning potential: The policies sold by one will give one a reward income income every year. So every year one’s income keeps increasing steadly, even if one sells the same no. of policies every year.

•Regular income: The commission one earn is paid by the company every 15 days. This ensures that one get a regular income.

•One’s Reward: We have several reward programs to inspire good performance & create a positive spirit amongst our FC. These reward programs include foreign trips, seminars, prizes & special club memberships to the silver club, Gold club & platinum club. We also sponsor our top performing FCs for international training programs & seminars. This year HDFC SLIC are sponsoring 124 FCs for such events.

4. Mode of contacting prospects:

52

Prospects were contacted according to their profile. Different approaches were made in the mode of contacts according to their profile. Prospects like C.A.s Graduates retired people, salaried, self employed were personally contacted. By taking their appointments or directly dealing in office, talecalling is also one of the modes of contact which was used to approach basically for every prospect along with prospects like housewives, retired people businessman.

5. Total number of people contacted : The no. of people contacted were 125 including CAs, doctors, housewives, retired people, students, businessmen etc.

PROCESS 53

1. No. of prospects contacted: The no. of prospects being contacted were 100 including CAs, Doctors, Housewives, Retired persons, Students, Businessmen, among all the people contacted the percentage of housewives were maximum, it was approximately 30% of the total, the percentage of retired persons, businessmen, were 20%, the remaining 50% included students, salaried people, self employed graduates.

2. No. of appointments generated: Among all the people contacted 50 persons were ready to give appointment via following modes like telecommunication, personal visits.

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3. No. of FCs recruited: The no of FC recruited were 6 which include businessmen, professionals, students ,etc.

4. Critical ratio: Out of 100 people the no. of people were converted as FC were 1 which is 1% of the total contacted.

RESULT: Out of 100 people contacted through different modes only 1 were converted as a financial consultant resulting in low critical ratio. Hence the project named as RECRUITMENT OF CERTIFIED FINANCIAL CONSULTANT was successfully completed.

55

GROUP COMPANIES 56

Aviva Life Insurance, India

Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva pioneered the concept of Banc assurance in India. Currently, Aviva has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & 57

Kashmir and Maharashtra and one regional Bank in Sikkim. Aviva has 40 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Aviva products are available in 378 towns and cities across India. Contact Address: Registered Office:2nd Floor Prakashdeep Building 7 Tolstoy Marg New Delhi 110 001

Bajaj Allianz

Bajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of twowheelers and three-wheelers in India and one of the largest in the world. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.

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Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun Life Financial's primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services organisations in the world. The Group has presence in several countries such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda. Contact Information Birla Sun Life Insurance Company Limited Registered Office:2nd floor, B Wing Ahura Centre, Mahakali Caves Rd, Andheri (E), Mumbai - 400 093

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Visit Birla Sun Life on: www.birlasunlife.com

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in the UK. ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. Registered Office : ICICI Towers 9th floor, Bandra-Kurla Complex Mumbai - 400 051. Tel: 494 3232 Delhi office : 3rd floor 60

Videocon Towers E-1, Rani Jhansi Road New Delhi - 110055. Tel: 601 3232 Email: [email protected] Web site: www.iciciprulife.com

ING Vysya Life Insurance

ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years. ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities) across the country and over 2300 employees. Contact Address : ING Vysya House, 5th Floor 22, M.G. Road Bangalore 560001 Phone : 91-80-25328000 Fax : 91-80-25559764 E mail: [email protected] Visit ING Vysya Life Insurance on: www.ingvysyalife.com

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Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joi nt venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. Old Mutual was established more than 150 years ago and offers a diverse range of financial services in South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization and has its headquarters in London. Contact Address: 6th floor, Peninsula Chambers, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013. Phone: 1800 22 8081 Visit Kotak Life Mahindra Old Mutual Life Insurance at: www.kotaklifeinsurance.com

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Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956. LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore.

In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and number of policies stands at 77% and 81%, respectively.

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Max New York Life Insurance

Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-business corporate, and New York Life International, a global expert in life insurance. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses. Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company in India to be awarded the IS0 9001:2000 certifications. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India.

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MetLife India Insurance

India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu. Met Life Group has presence in America and Asia and has an experience of over 137 years in providing financial services. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001. Contact Address: MetLife India Insurance Co. Pvt Ltd., 'Brigade Seshamahal', 5 Vani Vilas Road, Basavanagudi, Bangalore - 560004 Email: [email protected] Phone: 1800 425 6969 Visit MetLife India Insurance at: www.metlife.co 65

Reliance Life Insurance

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more than 900 employees.

Contact Address: Reliance Life Insurance Company Limited, Regd. Office: 9 Cathedral Road, Chennai 600 086, India. Ph: 2811 8400 Fax: 2811 7669. Email : [email protected]

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SBI Life Insurance

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid up capital of Rs 350 crores. State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. Contact Address : Regd Office State Bank Bhavan, Madam Cama Road, Nariman Point, Mumbai - 400 021 Mailing Address SBI Life Insurance Co. Ltd., 2nd Floor, Turner Morrison Bldg, G. N. Vaidya Marg, Fort, Mumbai 400 023 Phone: 1800 22 9090 E-mail: [email protected] Visit SBI Life Insurance on: www.sbilife.co.in

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Shriram Life Insurance

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based Shriram Group and the South African insurance major Sanlam. The company launched its operations in India in December 2005. Shriram Life has set a target of achieving a premium income of Rs 110 crore during the first year of operations. While focussing largely on the strong network of over 65,000 agents and distribution network of more than 550 branches, Shriram Life is also contemplating bancassurance alliances with couple of banks

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Tata AIG Life Insurance

Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.

Contact Address: Tata AIG Life Insurance Company Limited Peninsula Towers, 6th floor, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013. India Tel: 1800-119966 Email: [email protected] Visit Tata AIG Life Insurance on: www.tata-aig-life.com

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CHANNEL DEVELOPMENT

70

CHANNEL DEVELOPMENT:           



Why to RECRUIT? Who to RECRUIT? How to RECRUIT? Recruitment Activities What to Check while we are Recruiting Role of consultant Working Environment Support Package for successful Advisor. Extensive trading for successful Advisor. Payment and benefit commission Structure Recognition Program Why to RECRUIT?

These are two aspect of employment in the insurance sector today. One in Permanent Employment for sales operation, it support back office services and so on. We are also offering the other kind of employment fee people to sell life insurance they are called “ Life Advisor” or Financial Advisor “. This is a big area of employment which is very successful. However they have not been sustainable on long period.



Who to RECRUIT? Quality department has given some indicator in terms of what are the commonalities (Q score) of one successful advisor--The commonalities were—  Age between 30 –45  Education graduate  Family income above Rs. 2 lacs. P. a.

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

   



The most important fact to remember in that 61% of our red category advisors do not fall into any of their category. This is a broad pointer for us to remember what are the /her profile. Some other pointer from Quality Income Profile Apron Rs. 1 lacs p.a. People who do not own their transport

How to RECRUIT?     



Things which you should have while meeting the prospect BOP presenter Reward points booklet or take a copy of the catalog from the website Advisor manual can show how the manual can answer many procedural Talk about email id and tech support the prospect would like to know

Recruitment Activities  

Many market shows too show the booklet its importance. Copy of any certificate MDRT certificates, sales champion certificate etc. to show recognition.

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

Things to check while recruiting Energy , energy …… always check the persons energy levels , as this career is all about meeting new people finding new prospects and more so handling rejections  His past present occupation gives tremendous insight into his energy levels  Show him the path in his current environment how insurance selling can fit in lowers the resistance of time availability  Check his environment his family locality  Check whether he can work on his own  Find out if he is looking for money or career as he can have both here 



Things to check while recruiting Always try to meet the person at his residence check for the locality his household standard of living try to involve the spouse in the presentation so that they know what they are getting into.  Always check on need for money and a drive to do well In life if he has been doing well in life , he will make efforts to do well with us  Ask questions about his past , find instances of accomplishments  Keep checking on the pointers & do a mental check list of the acceptable pointer  Be confined about the profile and then only go ahead 

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

     

Advisor Role To provide on going financial advice for his/her client Identify future client Marking appointments Conduct financial review meeting with prospects/ clients Close sale Get referrals Provide service to clients Following internal sales and reporting system



Working environment To be part of a world class sales team.  Work from your own office or residence  Work full time or part time  Earn commission bonus ,incentives  No upper limits in earnings  Flexible career

Your Opportunity: No startup capital required.  Flexible working environment  Be your own boss  Unlimited earning potential  To be part of world class team

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BENEFITS OF JOINING HDFC SLIC Commission & Renewals: As insurance advisor you can earn handsome commission, which varies from 5% to 40% depending upon product to product and in addition 1st year commission entitled to renewal commission also. Star on debut: If our new advisor sources RENP 2,00,000 in 30 days licensing then he/she is entitled to Silver Medal(Approx value Rs. 5,000) + certificate (signed by ZM & Reg. Mgr). Rising Star on Debut: If our new advisors sources RENP of Rs. 5,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.13000) + certificate (signed by ZM & Reg. Mgr). Millionaire Star on Debut: If our new advisors sources RENP of Rs. 10,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.25000) + certificate (signed by ZM & Reg. Mgr). Global Star on Debut: If our new advisors sources RENP of Rs. 24,00,000 in 30 days of licensing then he/she is entitled to Gold Medal(Approx value Rs.60000) + certificate (signed by ZM & Reg. Mgr). Star of the Month: Top 3 FCs, 1st Rank: Trophy + Certificate recognizing the performance signed by ZM & Reg. Mgr., 2nd &3rd Reg. Mgr.

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To recognize best talent our company has following clubs: Bronze Club: Non Monetary Benefit 1%. Minimum RENP Rs. 3, 00,000 (contest period 5th July-30th Jun) Silver Club: Non Monetary Benefit 3% and Retention Bonus Rs.5,000. Minimum RENP Rs. 6, 00,000 (contest period 5th July-30th Jun) Gold Club: Non Monetary Benefit 5% and Retention Bonus Rs.10,000. Minimum RENP Rs. 15, 00,000 (contest period 5th July-30th Jun) Toppers Club: Top 101st to 225th ranked CFCs on RENP Minimum RENP Rs.40, 00,000 Non Monetary Benefit 5% and Retention Bonus 1% Total 6%. (Contest Period 5th July30th Jun) Centurion Club: Top 100 ranked CFCs on RENP Minimum RENP Rs.40,00,000 Non Monetary Benefit 5% and Retention Bonus 1.25% Total 6.25% up to 10% (Contest Period 5th July-30th Jun)

Other Schemes & Incentives: Our Company announces from time to time different incentive schemes in which gifts vary from small item like Leather bag to luxury car for example Skoda Octavia.

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Career Opportunity for Certified FCs Branch Manager ↑ Assistant Sales Manager ↑

Branch Development Manager ↑ Sales Development Manager ↑ Certified Financial Consultants

CFC Welcome Kit: 1. Welcome letter 2. Laminated Identity Card 3. Copy of agency agreement 4. IRDA License 5. Bank account 6. 100 visiting card from the branch 7. Commission booklet 8. Reward& recognition booklet 9. Pin to access HDFCSLIC website

Extensive training to make you a professional advisor 77

   

Selling skills Product knowledge Relationship skills

Training delivery through several convenient options  Face to face  Online  Self learning

Next steps  Confirmation of mutual interest  Selection interview  Profiling test dates  Draft payment favoring  ICICI prudential life insurance co . Ltd  Payable at Mumbai  Finalize Training Date, venue Support team the Company  Field visits  Training on products  And selling skills  Regular business reviews  Be a coach and mentor  Recognize high performers  Help you become financially independent Expectations of team  Achieve sales targets  Participate in all meetings  Attend all training program  Weekly reviews at the office  Follow the sales process  Follow weekly reporting process

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Findings About The Advisors Who Are Working In HDFC SLIC

Reasons of being Financial Advisor with ICICI Prudential

Findings 1 EXTRA INCOME 14% RECOGNITION 5% ALL THE ABOVE 64% CAREER PROGRESSION 14% 79 FLEXIBILITY 3%

Analysis Since the above finding shows that most of the CFC’s with HDFCSLIC have a mix reason for being a CFC’s so the dominating feature will be that one which forms the major portion of the mix reaction extra income and career progression . Thus HDFCSLIC is able to satisfy the two major desires of its financial advisors those are money and growth.

Findings 2 80

ANNUAL BUSINESS PRIVIDED BY ADVISORS

0 - 35000 81% MORE THEN 70000

35000 - 70000 14%

Analysis A majority of CFC’s are able to deliver a good result and giving good figures. About 81% are giving business more than Rs 70000 a year but it is not last it needs some proper attention to develop it more.

Findings 3 81

SATISFACTION LEVEL OF FINANCIAL ADVISOR

HIGHLY SATISFIED 19%

SATISFIED 43%

DISSATISFIED 22%

HIGHLY DISSATISFIED 8%

CAN NOT SAY 8%

Analysis The finding is able to tell that satisfaction is higher than REASONSOFLINKING dissatisfaction but the real achievement will be to convert that HDFCSLIC. dissatisfaction into satisfaction too. In this direction the first step should be to think and make a proper action plan to increase the level of satisfaction.

Findings 4

INTEG RITY27% G O O DW O RKINGENVIRO NM ENT11% CUSTO M ERFRIENDLYPO LICIES32% CANW O RKA LLO V ERTHECO UNTRY30%

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Analysis The finding is able to tell that the CFC’s liking HDFCSLIC WORKING ENVIRO NMENT OF and can work because in HDFCSLIC Customer friendly policy COM PAthe NYCFC’s and for the all over the country. ItsTHE benefit of company.

Findings 5 VERY GOOD 39% AVERAGE 24% 83

GOOD 32% POOR 5%

Analysis The finding shows the most consultants Perceptions for the HDFC SLIC. Good working environment and some body are says very good environment. It is benefits for the company then they can provide the better facility for the consultants

Findings 6

84

T o ta l H o u se h o l d I n c o m e o f A d v i so r ( p e r a n n u m ) 14%

14%

32%

40%

L e s s t h a n 1 0 0 0 10 0 0 0 0 0 -2 0 0 0 0 0 2 0 0 0 0 0 -3 0 0 0 0 0 M o re t h a n 3 0 0 0 0 0

Analysis It is the shows the maximums advisors earn more than 2lakhs to 3laks rupees per annum so, advisor earn sufficient income through HDFC SLIC.

Findings 7

85

Main Profession of Advisors 8%

3% 22%

50% 3% 11%

0% 3%

Engineer

Doctor

CA/ICWA/CFA/CS

Lawyer

Teacher

MBA

Businessman

Others

Analysis It is the show that different professional person involve as a financial consultants so, consultant is the better option for the extra earning of different professional group.

Findings 8

86

Edcational Qualification of Advisors

19%

32%

8%

Post Graduate & Above

41%

Graduate

Diploma

12th

Analysis It is the show the maximums consultants are graduate. For graduate person consultants is good job.

Findings 9

87

Marital Status of Advisors

41% 59%

Unmarried

Married

Analysis It is the show the maximums consultants are unmarried.

Findings 10 Male vs. Female of Advisors

19%

81%

MALE

FEMALE

Analysis It is the show the maximums consultants are Male.

Findings 11 88

Age of Advisors

5%0% 49% 46%

Beloe 25

25-40

40-55

Above 55

Analysis It is the show the maximums consultants are below 25 year age group. consultants is better job for youngsters.

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SWOT ANALYSIS

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SWOT ANALYSIS STRENGTH:         

Multi channel distribution and one of the largest distribution networks in India Implementing six – sigma process Customer centric products and services Superior investment and risk management frame work 1Million policies sold within 3 and half years company has maximum number of MDRT as well as good number of HNI advisors training process of the company is very strong different plan for different peoples According to the change in surrounding environment like change in customer requirement.

WEAKNESS:   

Company does not penetrate on the rural market at a time There is no plan for the low income group. Fees for the advisor is high than the other company.

OPPORTUNITY:    

Insurance market is very big. Where company can expand its horizon in insurance industry. Through good investment and insurance it is easy to top Indian customers The huge insurance market is left so company has opportunity to expand our products To associate with the more number of HNI 91

THREATS:   

“Sold habits die hard”: its still difficult task to win the confidence of public towards private company. The company is facing major threats from LIC which is an only government company. Plans for all income groups are not available which can create adverse effect later on the market share of the company.

CONCLUSION: The market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediate steps in appointing more number of agents and / or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on the factors like ‘Prevention of Loss’. ‘Assured Returns’ and ‘Long tern Investment’ they can also focus on an insurance amount of Rest 1- 2lakh with money back policies’ Hence the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily and rapidly.

92

RECOMMENDATIONS

93

My suggested recommendation for this project are as follows: •

Increasing awareness:-

One of the major problems in recruiting FCs was that they were not aware of the prospects and profit of becoming an FC. So, it was really hard to convince them which could have been easier if they had been aware. •

Increment of target areas:-

The potential areas which are generally targeted by the company should be increased. This will give the opportunity to many people of society those who want to work in the insurance sector & they also have the zeal to achieve something, can proved themselves in this field. And these areas include government employees etc. •

Providing incentives to hard working FCs:-

The extra incentives in the form of additional rewards should be provided to the hard working FCs. This will increase their will power to achieve highest target & this will also boost-up their morale & loyalty towards company. And because of this strategy of company many people will be attracted towards us. •

Promotion areas should be extended:-

Advertisement plays a very important role in promoting something in the market. So major emphasis should be laid on the advertisement, strategy. Today, net advertisements also have a very strong approach in the general public. So there are many methods which can help achieve our target

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CONCLUSION Today marketing must be understand not in the old sense of making a sale “telling and selling”-but in the new sense of satisfying customer needs. While selling life insurance one does not sell any tangible product That’s why it becomes very essential to understand customer needs, which will help to distribute and promote the product effectively and it will be easy to sell the products. Life Insurance is all about selling life, for which one should be very realistic and practical because it’s a matter of a person’s life. Selling of insurance policies is not an easy job it is all about convincing people, winning their confidence and assuring them for a safe future. HDFC Standard life Insurance is most respected private life insurance company. In very short time it has won the confidence of people because of its unique features like good services and promising future in insurance sector. While working on this project I came to know facts about insurance business, that there is a cutthroat competition and every company is trying its best to sell the products. Hence it is required to strengthen the selling chain so as to compete in the market, as a part of my project I have tried to strengthen the chain by employing few people for the company with a desired profile. I have discussed various issues in the project, which should be taken care of while recruiting the financial consultants for the company. Lastly I would like to conclude by saying quoting the following quote, which signifies the importance of Life insurance in ones, Life.

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REFERENCE 1. ‘RESEARCH METHODOLOGY’:- Deepak Bhattacharya 2. ‘ECONOMIC ENVIRONMENT OF BUSINESS; Francis Cherunillam 3. www.hdfcinsurance.com 4. AVAILABLE COMPANY BROCHURES.

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SAMPLE QUESTIONNAIRE (GENERAL PUBLIC) Name:

________________________________________

Address: ________________________________________ Age:

________________________________________

Contact No:

________________________________________

1. Are you aware of Life Insurance Policies and its benefits? Yes

No

2. Are you insured? Yes

No

3. Which Pvt. Insurance Co. you rate as the best in the insurance sector? ICICI Prudential Max New York Life

LIC

HDFC Standard Life

Oth Insurer

1. If HDFC Standard Life Insurance, then which distribution channel you prefer? And why? Bank assurance Direct Marketing Tied Agency/ Financial Advisors --------------------------------------------------------------------------------------------2. Are you satisfied with the services of the HDFC STANDARD Life Insurance Company? Yes

No

6. Any suggestions? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Signture)

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SAMPLE QUESTIONNAIRE (PROSPECT ADVISORS) Name:

________________________________________

Address: ________________________________________ Age:

________________________________________

Contact No:

________________________________________

1. Gender a) Male b) Female 2. Marital Status a) Married b) Unmarried 3. Educational Qualification a) Any professional degree (MBA/CA) b) Post Graduate c) Graduate d) Under Graduate/XII or equivalent 4. Occupational background a) Govt/ state services b) Pvt. Job c) Professional – C.A/M.B.A d) Others (Specify) 5. Annual household income a) 5 – 8 lacs b) 3 – 5 lacs c) 1 – 3 lacs d) < 1 lac

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6. Are you interested in making extra income? a. Yes b. No 7. Will you be interested in getting into a business with zero investment and high returns? a)

Yes

b) No 8. Are you aware of Life Insurance Policies and its benefits? Yes

No

9-Which company would you like to work with? LIC

ICICI Prudential

HDFC Standard Life

Max New York Life

Others 10. HDFC Standard life Insurance Company caters to a attractive payments, instant recognition and career progression of advisors. Will you be interested in joining HDFC Standard life Insurance Company? a)

Certainly

b) Probably c) Definitely Not 11. Which mode of training would you like opt for? a) Class Room training b) Manual Training c) Online Training 99

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