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A SUMMER TRAINING REPORT
IN
HDFC STANDARD LIFE
INSURANCE
ON
CCOOMMPPAARRIISSIIOONN BBEETTWWEEEENN HHDDFFCC SSTTAANNDDAARRDD LLIIFFEE
IINNSSUURRAANNCCEE AANNDD MMAAXX NNEEWW YYOORRKKLLIIFFEE
IINNSSUURRAANNCCEE CCOO.. LLTTDD..
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TABLE OF CONTENT
ACKNOWLEDGEMENT Page No.
PREFACE
EXECUTIVE SUMMARY
INTRODUCTION TO THE INDUSTRY
INTRODUCTION TO THE COMPANY
RESEARCH METHODOLOGY
a) Title
b) Objective of the Study
c) Scope of the Study
d) Significance of the Industry
e) Significance of the Research
f) Research Technique
g) Sampling Methodology
h) Sampling unit
i) Sampling Area
j) Sample Size
k) Limitations
FACTS AND FINDINGS
DATA AND INTERPRETATION
CONCLUSION & RECOMMENDATIONS
BIBLIOGRAPHY
ANNEXURE
Questionnaire
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PREFACE
In the present scenario customers are too much aware of their needs & they express it boldly.
Now they want value for money. Now they are more concerned about what they are purchasingand what the core benefit of the product is.
While we are talking about the tangible products people have direct experience of these products
but the case is not same for service sector.
In insurance sector company has to understand all the requirements of a customer and take care
of their interest and satisfaction. And a good product needs good selling process. Satisfaction
highly depends upon the selling practices and after sale practices.
In this summer internship program I have done the comparative study between HDFC and Max
New York life. During this project I came across with new experiences of industry, and this
nurtured me in a dynamic manner.
This project however is an attempt to share as best as possible my experience in corporate world
with all my colleagues and my faculty.
I would be delighted to receive readers comments which maybe valuable lessons for my future
projects.
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EXECUTIVE SUMMARY
In todays environment there are too much risk is attach to an individual like accidental,
property, death risk. To cover all these risk insurance is provided by different insurance
companies these companies include public as well as private sector.
India is a growing market and a large share of this market is untouched. So the companies are
trying to get a good customer base to grow and reap a good profit. For a company to grow it is
necessary that its product should sell at larger scale. And for this selling process, sales force
should equip with good knowledge about the products.
Among the private players HDFC faces very high competition from MNYL, although both have
almost same product line same market but the selling process of HDFC is more effective than
MNYL. But if we take the market share of private sector in life insurance, HDFC has a higher
share in it. But there are many other parameters on the basis of which this comparison is done.
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INTRODUCTION TO THE INDUSTRY
Insurance mainly deals with covering of risk. The risk can be of any type that is risk related to
health, childrens future, accidental risk etc. So it includes each & every aspect of future which if
not taken care of now may become a serious problem in future.
The business of insurance is related to the protection of the economic values of 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 out of it. The benefit may be an
income or in some other form. Every asset comes with a expiry date i.e. it will be lost after a
certain period of time & the benefits which we are getting from it will also be lost. The owner is
aware of this & so he can manage his affairs that by the end of that period, a substitute is made
available. The asset may get lost earlier also by an accident or some other unfortunate event &
the planned substitute may not be ready at that time. Then the owner will be depriving of the
benefits. Insurance is a mechanism that helps to reduce the effects if such adverse situations. It
promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.
Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in
exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large,
possibly devastating loss. An insurer is a company selling the insurance; an insured or
policyholder is the person or entity buying the insurance. The insurance rate is a factor used to
determine the amount to be charged for a certain amount of insurance coverage, called the
premium
History of insurance
Early methods of transferring or distributing risk were practiced by Chinese and Babylonian
traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants traveling
treacherous river rapids would redistribute their wares across many vessels to limit the loss due
to any single vessel's capsizing. The Babylonians developed a system which was recorded in the
famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing
merchants. If a merchant received a loan to fund his shipment, he would pay the lender an
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additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be
stolen.
A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'.
Merchants whose goods were being shipped together would pay a proportionally divided
premium which would be used to reimburse any merchant whose goods were jettisoned during
storm or sinkage.
Insurance as we know it today can be traced to the Great Fire of London, which in 1666
devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to
insure buildings. In 1680, he established England's first fire insurance company, "The Fire
Office," to insure brick and frame homes.
The first insurance company in the United States underwrote fire insurance and was formed in
Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to
popularize and make standard the practice of insurance, particularly against fire in the form of
perpetual insurance. In 1752, he founded the Philadelphia Contribution ship for the Insurance of
Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire
prevention. Not only did his company warn against certain fire hazards, it refused to insure
certain buildings where the risk of fire was too great, such as all wooden houses. In the United
States, regulation of the insurance industry is highly Balkanized, with primary responsibility
assumed by individual state insurance departments. Whereas insurance markets have become
centralized nationally and internationally, state insurance commissioners operate individually,
though at times in concert through a national insurance commissioners' organization. In recent
years, some have called for a dual state and federal regulatory system (commonly referred to as
the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and
national banks.
Types of insurance
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give
rise to claims are known as "perils". An insurance policy will set out in detail which perils are
covered by the policy and which is not. Below are (non-exhaustive) lists of the many different
types of insurance that exist. A single policy may cover risks in one or more of the categories set
out below. For example, auto insurance would typically cover both property risk (covering the
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risk of theft or damage to the car) and liability risk (covering legal claims from causing an
accident). A homeowner's insurance policy in the U.S. typically includes property insurance
covering damage to the home and the owner's belongings, liability insurance covering certain
legal claims against the owner, and even a small amount of coverage for medical expenses of
guests who are injured on the owner's property.
Auto insurance -Auto insurance protects you against financial loss if you have an accident. It is
a contract between you and the insurance company. You agree to pay the premium and the
insurance company agrees to pay your losses as defined in your policy. Auto insurance provides
property, liability and medical coverage:
Home insurance -Home insurance provides compensation for damage or destruction of a home
from disasters. In some geographical areas, the standard insurances exclude certain types of
disasters, such as flood and earthquakes that require additional coverage. Maintenance-related
problems are the homeowners' responsibility. The policy may include inventory, or this can be
bought as a separate policy, especially for people who rent housing. In some countries, insurers
offer a package which may include liability and legal responsibility for injuries and property
damage caused by members of the household, including pets.
Health insurance -Health insurance policies by the National Health Service in the United
Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical
treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them
against dental costs. In the U.S., dental insurance is often part of an employer's benefits package,
along with health insurance.
Disability -Disability insurance policies provide financial support in the event the policyholder is
unable to work because of disabling illness or injury. It provides monthly support to help pay
such obligations as mortgages and credit cards.
Disability overhead insurance allows business owners to cover the overhead expenses of their
business while they are unable to work. Total permanent disability insurance provides benefits
when a person is permanently disabled and can no longer work in their profession, often taken as
an adjunct to life insurance. Workers' compensation insurance replaces all or part of a worker's
wages lost and accompanying medical expenses incurred because of a job-related injury.
Casualty insurance -Casualty insurance insures against accidents, not necessarily tied to any
specific property. Crime insurance is a form of casualty insurance that covers the policyholder
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against losses arising from the criminal acts of third parties. For example, a company can obtain
crime insurance to cover losses arising from theft or embezzlement.
Political risk insurance is a form of casualty insurance that can be taken out by businesses with
operations in countries in which there is a risk that revolution or other political conditions will
result in a loss.
Life insurance -Life insurance provides a monetary benefit to a decedent's family or other
designated beneficiary, and may specifically provide for income to an insured person's family,
burial, funeral and other final expenses. Life insurance policies often allow the option of having
the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
Certain life insurance contracts accumulate cash values, which may be taken by the insured if the
policy is surrendered or which may be borrowed against. Some policies, such as annuities and
endowment policies, are financial instruments to accumulate or
Property insurance -Property insurance provides protection against risks to property, such as
fire, theft or weather damage. This includes specialized forms of insurance such as fire
insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or
boiler insurance.
Liability insurance -Liability insurance is a very broad superset that covers legal claims against
the insured. Many types of insurance include an aspect of liability coverage. For example, a
homeowner's insurance policy will normally include liability coverage which protects the insured
in the event of a claim brought by someone who slips and falls on the property; automobile
insurance also includes an aspect of liability insurance that indemnifies against the harm that a
crashing car can cause to others' lives, health, or property. The protection offered by a liability
insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the
policyholder and indemnification (payment on behalf of the insured) with respect to a settlement
or court verdict. Liability policies typically cover only the negligence of the insured, and will not
apply to results of willful or intentional acts by the insured.
Credit insurance -Credit insurance repays some or all of a loan when certain things happen to
the borrower such as unemployment, disability, or death.Mortgage insurance insures the lender
against default by the borrower. Mortgage insurance is a form of credit insurance, although the
name credit insurance more often is used to refer to policies that cover other kinds of debt.
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Insurance companies -
Insurance companies may be classified into two groups:
a) Life insurance companies, which sell life insurance, annuities and pensions products.
b) Non-life, General, or Property/Casualty insurance companies, which sell other types of
insurance.
In most countries, life and non-life insurers are subject to different regulatory regimes and
different tax and accounting rules. The main reason for the distinction between the two types of
company is that life, annuity, and pension business is very long-term in nature coverage for
life assurance or a pension can cover risks over many decades. By contrast, non-life insurance
cover usually covers a shorter period, such as one year.
In the United States, standard line insurance companies are "mainstream" insurers. These are the
companies that typically insure autos, homes or businesses. They use pattern or "cookie-cutter"
policies without variation from one person to the next. They usually have lower premiums than
excess lines and can sell directly to individuals. They are regulated by state laws that can restrict
the amount they can charge for insurance policies.
Excess line insurance companies (Excess and Surplus) typically insure risks not covered by the
standard lines market. They are broadly referred as being all insurance placed with non-admitted
insurers. Non-admitted insurers are not licensed in the states where the risks are located. These
companies have more flexibility and can react faster than standard insurance companies becausethey are not required to file rates and forms as the "admitted" carriers do. However, they still
have substantial regulatory requirements placed upon them. State laws generally require
insurance placed with surplus line agents and brokers not to be available through standard
licensed insurers.
Insurance companies are generally classified as either mutual or stock companies. Mutual
companies are owned by the policyholders, while stockholders (who may or may not own
policies) own stock insurance companies. Demutualization of mutual insurers to form stock
companies, as well as the formation of a hybrid known as a mutual holding company, became
common in some countries, such as the United States, in the late 20th century. Other possible
forms for an insurance company include reciprocals, in which policyholders 'reciprocate' in
sharing risks and Lloyds organizations.
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Insurance companies are rated by various agencies such as A. M. Best. The ratings include the
company's financial strength, which measures its ability to pay claims. It also rates financial
instruments issued by the insurance company, such as bonds, notes, and securitization products.
Global insurance industry
Global insurance premiums grew by 11% in 2007 (or 3.3% in real terms) to reach $4.1 trillion.
The macro-economic environment was characterized by slower economic growth in 2007 and
rising inflation. Profitability improved in life insurance and fell slightly in the non-life sector
during the year. Life insurance premiums grew by 12.6%, accelerating in the advanced
economies with the exception of Japan and Continental Europe. Non-life insurance premiums
grew by 7.6% during the year. Figures for premium income are not yet available for 2008, but
the insurance industry is likely to see a slowdown in new business and falling investment
revenue.
Advanced economies account for the bulk of global insurance. With premium income of
$1,681bn, Europe was the most important region, followed by North America ($1,330bn) and
Asia ($814bn). The top four countries accounted for nearly 60% of premiums in 2007. The US
and UK alone accounted for 42% of world insurance, much higher than their 7% share of the
global population. Emerging markets accounted for over 85% of the worlds population butgenerated only around 10% of premiums
Insurance Industry in India
With an annual growth rate of 15-20% and the largest number of life insurance policies in force,
the potential of the Indian insurance industry is huge. Total value of the Indian insurance market
(2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the
insurance and banking services' contribution to the country's gross domestic product (GDP) is
7% out of which the gross premium collection forms a significant part. The funds available with
the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.
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Till date, only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in India is also
well below the international level. These facts indicate the of immense growth potential of the
insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took
place with the ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in an insurance
company, a proposal to increase this limit to 49% is pending with the government. Since opening
up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the
Indian market and 21 private companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income from new
business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from
private insurers. This report "Indian Insurance Industry: New Avenues for Growth 2012", finds
that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at
Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to
arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in
2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year (2004-2005)
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compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private
insurers increased their market share from about 13% to about 22% in a year's time. The figures
for the first two months of the fiscal year 2005-06 also speak of the growing share of the private
insurers. The share of LIC for this period has further come down to 75 percent, while the private
players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector companies and eight
private insurers. According to estimates, private insurance companies collectively have a 10%
share of the non-life insurance market.
Though the focus of this market research report is on the potential growth on the Indian
Insurance Sector, it also talks about the market size, market segmentation, and key developments
in the market after 1999. The report gives an instant overview of the Indian non-life insurance
market, and covers fire, marine, and other non-life insurance. The data is supplied in both
graphical and tabular format for ease of interpretation and analysis. This report also provides
company profiles of the major private insurance companies.
Growth of Indian Insurance Industry
With an annual growth rate of 15-20% and the largest number of life insurance policies in force,
the potential of the Indian insurance industry is huge. Total value of the Indian insurance market
(2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the
insurance and banking services contribution to the country's gross domestic product (GDP) is
7% out of which the gross premium collection forms a significant part. The funds available with
the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in India is also
well below the international level. These facts indicate the of immense growth potential of the
insurance sector.
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The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took
place with the ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in an insurance
company, a proposal to increase this limit to 49% is pending with the government. Since opening
up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the
Indian market and 21 private companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income from new
business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from
private insurers. This report, Indian Insurance Industry: New Avenues for Growth 2012, finds
that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at
Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to
arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in
2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year (2004-2005)
compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private
insurers increased their market share from about 13% to about 22% in a year's time. The figures
for the first two months of the fiscal year 2005-06 also speak of the growing share of the private
insurers. The share of LIC for this period has further come down to 75 percent, while the private
players have grabbed over 24 percent.
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There are presently 12 general insurance companies with four public sector companies and eight
private insurers. According to estimates, private insurance companies collectively have a 10%
share of the non-life insurance market.
Though the focus of this market research report is on the potential growth on the Indian
Insurance Sector, it also talks about the market size, market segmentation, and key developments
in the market after 1999. The report gives an instant overview of the Indian non-life insurance
market, and covers fire, marine, and other non-life insurance.
In this graph public sector is shown by a constant line while the private sector is showing a
steady growth. From this graph we can interpret that before the entrance of private players; only
public players were in highlight & if at that time insurance means LIC. So people do not have
any option other than LIC so they go for it & because of this reason only the business of LIC is
remain as it is. Then private players entered in the market. In beginning people dont go for
private players because they find it risky. As they are private players so people always have
question on there authenticity. But slowly market gets change. Private companies start providingmore benefits over public companies & people also start believing them & start investing in
these companies. So private companies shows a steady growth from none to many customers.
While the market for LIC remain constant as it is before. The customers who want to go for LIC
they always go for it only. It is like jobs in private sector & public sector.
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Market share of private life insurance companies
According to the latest data released by the Insurance Regulatory and Development Authority
(IRDA), the annualized premium equivalent (APE) for the life insurance industry fell (for the
third consecutive month) by 19.6% year on year (yoy) in January 2009. The decline in the APE
was more pronounced in case of the private players at 22.5% yoy.
Birla Sunlife and Reliance Life posted an increase of 33.2% yoy and 18.2% yoy respectively in
their APE. ICICI Prudential lost significant market share YoY from 27.3% to 21.6% [Don't you
think this was expected with the brand ICICI taking a reputation knock] Bajaj Allianz has also
lost market share YoY from 20.5% to 13.2%.
Reliance Life and SBI Life have emerged as the new leaders with market share of 9.9% and
14.8% at the end of Jan 2009. The following Pie-Chart shows market share of all the private Life
Insurance Companies operating in India.
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INTRODUCTION TO THE COMPANY
HDFC STANDARD LIFE INSURANCE CO.
The Partnership :
HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995 the
companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing
delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development Finance
Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury
department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both companies
agreed the time was right to move the operation to the next level. Therefore, in January 2000 an
expert team from the UK joined a hand picked team from HDFC to form the core project team,
based in Mumbai.
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Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC
Bank.
In a further development Standard Life agreed to participate in the Asset Management Company
promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th
July 2000. HDFC is also financially very strong and for the last six years has enjoyed the highest
financial strength ratings from Indias two leading rating agencies.
THE HDFC GROUP INCLUDES:
HDFC BANK
HDFC ASSET MANAGEMENT
HDFC REALTY LTD.HDFC SECURITIES LTD.
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of HDFC Standard Life
Insurance Company Limited.
Our ambition from as far back as October 1995, was to be the first private company to re-enter
the life insurance market in India. On the 23rd of October 2000, this ambition was realised when
HDFC Standard Life was the only life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns
18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum
investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values and trust.
The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the
yardstick by which all other insurance company's in India are measured.
Their Mission:
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They 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
Their Values:
SECURITY: Providing long term financial security to our policy holders will be our
constant endeavour. We will be do 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: Recognising the different needs of our customers, we will be offering a
range of innovative products to meet these needs.
Their mission is to be the best new life insurance company in India and these are the values that
will guide us in this.
Why Life Insurance
Life Insurance has come a long way from the earlier days when it was originally conceived as a
risk covering medium for short periods of time, covering temporary risk situations, such as sea
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voyages. As life insurance became more established, it was realized what a useful tool it was for
a number of situations, including -
a) Temporary needs / threats:
The original purpose of life insurance remains an important element, namely providing for
replacement of income on death etc.
b) Regular Savings:
Providing for one's family and oneself, as a medium to long term exercise (through a series of
regular payment of premiums). This has become more relevant in recent times as people seek
financial independence for their family.
c) Investment:
Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike
regular saving products, investment products are traditionally lump sum investments, where the
individual makes a one off payment.
d) Retirement:
Provision for later years becomes increasingly necessary, especially in a changing cultural and
social environment. One can buy a suitable insurance policy, which will provide periodical
payments in one's old age.
Let us take an example to understand the need for insurance:
Mr. Atul is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two
children aged 3 and 7 years. They stay in a rented accommodation, where the rent is 15,000
rupees per month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on average
are 40,000 rupees. Mr. Atul passes away in an unfortunate road accident. What are some of the
financial implications of his death on his family.
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There may be several financial implications on his family. Some of these are:
a) The monthly income, previously provided by Mr. Atul would stop.
b) His wife and children may have to seek financial assistance from other relatives.
c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.
d) The family may have to move into a cheaper accommodation.
e) His widow may have to take up work to earn money.
f) The education of his children may suffer.
This simple example illustrates the impact premature death can have on a family, where the main
earner has no life cover.
Had Mr. Atul taken life cover, his family would not have faced such hardships in the event of his
unfortunate death. A simple life insurance policy could have provided Mr. Atul's family with a
lump sum that could have been invested to provide an income equal to all or part of his income.
In simple words, insurance protects against untimely losses. Insurance has been found useful in
the lives of persons both in the short term and long term. Short term needs like sudden medical
costs and long term needs like marriage expenses etc can be met with using life insurance.
Individual Products
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of
products and invites you to choose the one that suits you best.
Plan
Benefits
Savings Plans
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Retirement Plans
Personal Pension Plan
Savings for retirement
Unit Linked Pension Plan
Retirement Savings with a choice of investment funds
For details on the plans please click on the plan names.
What is an Endowment Assurance Plan ?
It is a participating (with profits) insurance plan that offers the following features:
Provides financial support to the family by way of a lumpsum payment in case of the
unfortunate death of the life assured within the term of the policy.
Provides a lumpsum payment to the life assured on survival up to maturity.
The lumpsum mentioned is the basic sum assured plus any bonus additions.
Why should you buy this product?
This plan is a with profits saving plan and is well suited for saving money for your long term
financial goals. This plan also helps provide for the needs of your family in your absence by
paying out a lump sum in the event of your unfortunate death during the term of the policy.
What optional benefits are available with this plan?
You can add the following optional benefits to customise your policy to suit your needs:
Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under
this optional benefit, on diagnosis of any one of the 6 common critical illnesses(1). The sum
assured is payable if you survive for 30 days after the date of the claim.Once such a claim has
been met, no further Critical Illness Benefit is payable. However, your basic policy continues
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even after we pay a claim on this benefit.
Additional Term Benefit (ATB)provides an additional amount equal to the sum assured
chosen under this optional benefit, in case of your unfortunate death.
Accidental Death Benefit (ADB)provides an additional amount, equal to the sum assured
chosen under this optional benefit, in case of your unfortunate death:
- due to an accident, and
- within 90 days of the accident..
Waiver Of Premium (WOP) Benefit waives the premium for you in case you become
totally disabled. The waiver is applicable during the period of total disability.
All optional benefits must be selected at the outset of your plan..
(1) Cancer, coronary artery bypass graft surgery, heart attack, kidney / renal failure, major organ
transplant (as recipient) and stroke.
Growth of HDFC Life Insurance
HDFC Standard Life, one of Indias leading private life insurance companies, declared its annualresults for the financial year ending March 31, 2009. The company generated Total Premium
Income of Rs. 5564.69 crores in FY2008-09 registering a year-on-year growth of 15%. The
growth was primarily driven by the companys structured sales processes based on customer
needs and their assessments, wide range of product portfolio and diverse distribution network.
In line with overall market conditions, growth in Effective Premium Income (EPI) in respect of
retail business increased by 5%, growing from Rs. 2,425 crores in 2007-08 to Rs. 2,552 crores in
2008-09. 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 companys performance.
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HDFC Standard Life maintained its healthy pipeline of products last year by launching 11
products apart from slashing the premium rates of its Term Assurance Plan premium rates by
about 25% across different age bands. Our entry into the health insurance market last year with
the launch of two productsSurgiCare and Critical Care was a significant move in line with our
business objective. The low penetration of health insurance in India gives us a tremendous
opportunity to provide quality health insurance. Our health products along our complete range of
life insurance and pensions portfolio meet almost every aspect of an individuals requirements,
Mr. Parasnis added.
Highlights of Financial Year 2008-09
Total Premium Income is up by 15% at Rs. 5564.69 crores as against Rs. 4858.56 crores in
FY2007-08.Renewal premium collected increased to Rs. 2913.58 crores from Rs. 2173.19 crores
in the previous year, registering a growth of 34%.Effective Premium Income (EPI) in respect of
retail business increased by 5%, growing from Rs 2,425 crores in 2007-08 to 2,552 crores in
2008-09. Alternate Channels, including bancassurance, contributed about 45% to the Effective
Premium Income (EPI). A well balanced product portfolio with pension comprising over 40%
children plans around 25% and the remaining constituting protection and savings plans,Total
assets under management increased to Rs. 10,595 crores, registering a growth of 24% over
FY2007-08. Assets under management for the Group business have increased to Rs. 1075 crores,
registering a growth of 12% over FY2007-08.
Company products and services are now available through a network of 595 offices serving over
700 cities and towns across the country. This is further complemented by corporate agency
relationships with public, private and cooperative banks.
Strength of Financial Consultants reported year-on-year growth of 43% to over 2,07,000 in
FY2008-09 compared to 1,45,000 last financial year.
The sum assured in-force for 2008-09 was Rs. 57,158 crores as compared to Rs. 45,743 crores
for the pervious year.
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Towards improving the quality of training imparted, the company started an in-house training
facility to cater to the mandatory training required to be given as well as for other sales training
requirements. The company has received accreditation from the Insurance Regulatory and
Development Authority (IRDA) for 149 training centers housed in its branches. During the year,
HDFC Standard Life also launched a three-month insurance and management programme in
collaboration with Manipal Education to select, train, and groom talent from across the country
and ensures a ready pool of insurance-trained sales professionals for the company.
HDFC Standard Life has revamped its corporate website (www.hdfcinsurance.com) in line with
its communication philosophy. The new improved, interactive, and user-friendly website is in
sync with its need-based communication strategy of helping individuals through their decision of
selecting the right life insurance plans that fit their needs.
To meet the demands arising from the companys rapid growth, the promoters contributed an
additional Rs. 525 crores of equity to take the paid-up share capital as on March 2009 to Rs.
1796 crores.
HDFC Standard Life, one of India's leading private life insurance companies, offers a range of
individual and group insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC), Indias leading housing finance institution and Standard
Life plc, the leading provider of financial services in the United Kingdom.
HDFC Standard Life's Product portfolio comprises solutions, which meet various customer
needs such as Protection, Pension, Savings, Investment, and Health. Customers have the added
advantage of customizing the Plans, by adding optional benefits called riders, at a nominal price.
The company currently has 25 retail and 6 group products in its portfolio, along with five
optional rider benefits catering to the savings, investment, protection and retirement needs of
customers. HDFC Standard Life continues to have one of the widest reaches among new
insurance companies through a network of 595 offices serving over 700 cities and towns across
the country. The company has also increased its depth in existing markets with a strong base of
more than 2, 07,000 Financial Consultants
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CORPORATE OFFICE:
IL&FS Financial Center,
Plot C22G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai 400 051
Telephone No. 6932666
Website: www.hdfcinsurance.com
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Max New York Life Insurance Co.
MAX is a joint venture between New York Life, a Fortune 100 company and Max India Limited,
one of India's leading multi-business corporations. The company has positioned itself on the
quality platform. In line with its vision to be the most admired life insurance company in India, it
has developed a strong corporate governance model based on the core values of excellence,
honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted
life insurance specialist through a quality approach to business. In line with its values of financial
responsibility, Max New York Life has adopted prudent financial practices to ensure safety of
policyholder's funds. The Company's paid up capital is Rs. 657 crore, which is more than the
norm laid down by IRDA.
Max New York Life has identified individual agents as its primary channel of distribution. The
Company places a lot of emphasis on its selection process, which comprises four stages -
screening, psychometric test, career seminar and final interview. The agent advisors are trained
in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training programme and each agent is trained for
152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to
sell in the marketplace. Training is a continuous process for agents at Max New York Life and
ensures development of skills and knowledge through a structured programme spread over 500
hours in two years. This focus on continuous quality training has resulted in the company having
amongst the highest agent pass rate in IRDA examinations and the agents have the highest
productivity among private life insurers.
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201 agent advisors have qualified for the Million Dollar Round Table membership in 2005.
MDRT is an exclusive congregation of the worlds top selling insurance agents and is
internationally recognized as the standard of excellence in the life insurance business.
Having set a best in class agency distribution model in place, the company is spearheading a
major thrust into additional distribution channels to further grow its business. The company is
using a five-pronged strategy to pursue alternative channels of distribution. These include the
franchisee model, rural business, direct sales force involving group insurance and telemarketing
opportunities, banc assurance and corporate alliances.
Max New York Life offers a variety of flexible products covering both life and health insurance
including 8 riders that can be customized to over 800 combinations which enable the customers
to choose the policy that suits their needs. Max New York Life also offers 6 products and 7
riders in group insurance business. The company has a plan for every need, designed as to meet
your long term financial goals & aspirations. They help you fulfilling your dreams &
commitments. The list of few plans provided by Max New York Life Insurance Company
Limited is given below:
Protection Plans
Five Yr Renewable & Convertible Plan
Level Term Policy
Children Plans
Children's Endowment to 18 (Par) Plan
Children's Endowment to 24 (Par) Plan
SMART Steps
SMART Steps Plus
Investment PlansLife Maker Premium
Life Maker Gold
Life Maker Platinum
Life Invest
Retirement Plans
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SMART Invest Pension
Easy Life Retirement (Par) Plan
Health Plans
Lifeline Medicash
Lifeline Wellness Plus
Lifeline Medicash Plus
Lifeline Safety Net
Savings Plans
Whole Life Participating
Life Gain Plus 25 Participating Plan
20 year Endowment (Par) Plan
Life Pay Money Back Plan
Group Plans
Group Credit Life
Unit Linked Group Superannuation Plan
Group Gratuity cum Term Assurance
Group Term Life
Unit Linked Group Gratuity Plan
Employee Deposit Linked Insurance
Max Super Life
AACCHHIIEEVVEEMMEENNTTSS
1. Max New York Life was among the top 25 companies to work with in India, according to
2003 Business World magazine, "Great Workplaces In India", Max New York Life was
ranked at the 20th position. This survey is the local version of the "Great Places To
Work" survey carried out every year in 22 countries.
2. Max New York Life is the first life insurance company in India to be awarded the IS0
9001:2000 certification.
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3. They were among top five most respected private life insurance companies in India
according to a 2004 Business World survey.
4. They have truly built an enviable sales force. With 201 agents becoming members of the
MDRT in 2005 , Max New York Life has moved up in the Top 50 MDRT global list.
VISION
1. To become the most admired life insurance Company in India.
MISSION
Become one of the top quartile life insurance companies in India
Be a national player
Be the brand of first choice
Be the employer of choice
Become principal of choice for agents
VALUES
KNOWLEDGE
Knowledge leads to expertise; and our expertise is in helping people protect themselves.
Perfectly combining global expertise with local knowledge, we are India's life insurance
specialists. Max New York Life believes that for knowledge to be of value it must be focused,
current, tested and shared.
CARING
Max New York Life is redefining the life insurance paradigm by focusing on customers first.
The service process is responsive, personalized, humane and empathetic. Every individual who
represents the company is for us our brand champion.
HONESTY
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Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity
and dependability form the cornerstones of the Max New York Life experience. The
company ensures that everyone who represents the brand carries a promise: we care in word
as well as deed.
EXCELLENCE
Excellence at Max New York Life implies the ability to perform at a consistently high level.
Focused on the value of continuous improvement in people, processes and the organization, the
company strives for the highest standards of quality in every aspect of its business.
Growth of Max New York Life
Max New York Life (MNYL) is looking at maintaining a double digit growth rate both in terms
of premium collection and number of policy holders this year, despite volatile market conditions
with more tailor made products.
The company launched its new unit linked insurance product Unit Builder in Kolkata today.
Speaking at the launch of the product, Debashis Sarkar, senior director & chief marketing
officer, Max New York Life said, We want to outperform the industry growth rate, maintain
double digit growth rate both in terms of number of policy holders and premium collection and
gain increased market share this year, despite the meltdown with increased focus on customer
service and newer products.
The company collected Rs 3,654 crore as total premium collection in January-December last
year, almost a 60 per cent rise compared to the previous year.
While insurance industry witnessed a negative eight per cent growth, MNYL achieved a 41 per
cent growth in first year premium collection with a single premium adjusted at 10 per cent and in
terms of number policy holders MNYL grew by 59 per cent, while the industry grew by only one
per cent, informed Sarkar.
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Kolkata-based, The Peerless General Finance & Investment Company Limited will be the sole
corporate agent and third party distributor of this product across India, for now. The company
plans to rope in Yes Bank and other corporate agents later on. The product was specially
designed for partnership distribution, and right now our first priority was to use the network of
third party distribution channels, said Sarkar.
The soft launch of Unit builder was one month back. The response was good, Peerless was able
to collect Rs 4.56 crore as first year premium for this product alone, said P P Ray, vice president,
compliances and legal, The Peerless. We hope to achieve a total business of Rs 800 crore from
MNYL's products alone by March 2011. Of which, till date we have achieved Rs 250 crore.
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RESEARCH METHODOLOGY
Title: Comparative Study between HDFC Standard Life Insurance Co. Ltd.
and Max New York Life Insurance Co.
Title Justification : HDFC Standard Life Insurance has identified individual agents as its
primary channel of distribution. The Company places a lot of emphasis on its selection process,
which comprises four stages - screening, psychometric test, career seminar and final interview.
MAX New York Life Insurance Co. have a long and close relationship built upon shared values
and trust. The ambition of MAX New York Life Insurance Co. is to mirror the success of the
parent companies and be the yardstick by which all other insurance company's in India aremeasured.
Objectives of the study
For doing this project I have taken up some of the objectives. These objectives will determine the
direction in which I have to precede my study as well as report further. After the end of this
study I will be in a condition to justify these objectives.
The objectives which I have taken are-
1-To study and compare the sales process of HDFC & MNYL.
2-To study the policies & the products of HDFC & MNYL.
3- To compare the customer satisfaction of both companies.
Rationale of the study
This study will help us in determining the sales process, products, and policies of the HDFC &
MNYL. I am also going to study the impact of advertisement on the sales of the insurance
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companies. So as to know how much buying decision of the customer is affected by
advertisement.
It will help us to compare the two companies and from this comparison we will come to know
which one is doing well in the market and satisfying its customers.
From this project we came to know about following
1. Sales process of the HDFC & MNYL.
2. What are the product &policies of the two companies?
3. Comparison of customer satisfaction &expectation from respective companies
STUDYING & COMPARING THE SELLING PROCESS OF
HDFC & MNYL
Selling process of HDFC
Selling in insurance sector is quite difficult from all other sectors as you have to sell a intangible
product as well as an insurance product where people don't want to invest in because they think
they do not require any type of insurance. So to penetrate in such type of market it is very
necessary that your selling process should be more effective to attract the customers & make
them to buy your product as well as refer it to their friends also.
The selling process of HDFC is describe in to 4 steps which are as follows-
1. Pre-approach /Prospecting
2. Approach
3. Description of customer
4. Solution
Pre-approach /Prospecting This is the first step of selling process of HDFC.In this process
firstly the agent advisors fix a meeting with the prospect (the person whom they are going to sell
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the product i.e. the customer).They do this through many ways like cold calls, personal
introductions, referrals, direct mail etc.In HDFC database are provided to the agents & from this
database they call the people & fix meeting with them.
ApproachIn this step the agent meet the customer first time & introduce the customer with the
company & himself & then he try to make the customer comfortable & ask him to say something
about himself.
This step plays a vital role in the selling process as if the advisor has made the customer to be
interested in his company & product then half the work is done & we can proceed further.
Description of customer This is the more critical step because in this step you realize the
customer that he requires insurance & offer him the product according to his need. In this step
the agent ask the customer about his earning, monthly expenditures, investments, his assets &
liabilities now as well as future liabilities. So that he can foresee his future more clearly .Then he
will himself realize his needs & ask for the product.
Solution Now you tell him about the products according to his needs & he will choose the
product which he like & satisfy his needs. Then the agents tell him about the premiums & also
about the timings he has to give this premium, about the bonuses, benefit i.e. the full product
history.
Selling process of MNYL
Selling in insurance sector is quite difficult from all other sectors as you have to sell a intangible
product as well as an insurance product where people don't want to invest in because they think
they do not require any type of insurance. So to penetrate in such type of market it is very
necessary that your selling process should be more effective to attract the customers & make
them to buy your product as well as refer it to their friends also.
The selling process of MNYL is describe in to 4 steps which are as follows-
1. Pre-approach /Prospecting
2. Approach
3. Fact finding
4. Solution
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Pre-approach /Prospecting This is the first step of selling process of MNYL.In this process
firstly the agent advisors fix a meeting with the prospect (the person whom they are going to sell
the product i.e. the customer).They do this through many ways like cold calls, personal
introductions, referrals, direct mail etc. In MNYL it is recommended to do the prospecting
through referrals because through references there is more chances that the customer may be get
involved with the advisor more firmly & like to listen to him more patiently as his friend has
referred him.
ApproachIn this step the agent meet the customer first time & introduce the customer with the
company & himself & then he try to make the customer comfortable & ask him to say something
about himself.
This step plays a vital role in the selling process as if the advisor has made the customer to be
interested in his company & product then half the work is done & we can proceed further.
Fact findingThis is the more critical step because in this step you realize the customer that he
requires insurance & offer him the product according to his need. In this step the agent ask the
customer about his earning, monthly expenditures, investments, his assets & liabilities now as
well as future liabilities. So that he can foresee his future more clearly .Then he will himself
realize his needs & ask for the product.
Solution Now you tell him about the products according to his needs & he will choose the
product which he like & satisfy his needs. Then the agents tell him about the premiums & also
about the timings he has to give this premium, about the bonuses, benefit i.e. the full product
history.
FINDINGS AFTER COMPARING THE TWO PROCESS
By studying the selling process of HDFC & MNYL I found that the two process are almost same
if we talk about the procedure of the selling but there are some differences in this also.
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As we can see that HDFC mostly focus on referrals when it comes to call or fix a
meeting with the customer while MNYL focus on the database provided by the company & call
the people to fix meeting with them. HDFCs agent do fact finding of the customer in which they
tell the customer about there liabilities & assets of them & realize the customer why he needs
insurance. While MNYLS agent just ask the customer about there basic expenditure their salary
& then offer them the plan according to their need. They do not do thorough study of the
customer So, in my opinion the selling process of HDFC is more effective than MNYL although
its a long process but people dont think that because they are investing for long term & also a
large amount thats why they can take out time for it.
STUDYING & COMPARING THE PRODUCTS OF HDFC &
MNYL
PROTECTION PLANS
Five Year Renewable and Convertible Plan (Non - Par)
Life with its fascinating moments also has its share of uncertainties and planning ahead is
extremely important to face all these uncertainties that may arise from time to time. That's the
reason you need a protection plan, which would serve your protection needs and safeguard your
family from any financial insecurity at times of crisis or at the unfortunate event of your demise.
Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-Participating)
plan not only provide you with a low cost insurance cover during its tenure of five years, it also
helps you plan in advance for various future needs and your family's financial security, should
anything unfortunate happen to you. Offering a guaranteed Death Benefit, this plan is
particularly useful as a short-term protection plan. An important feature of this policy is that it
allows the insured to convert the policy to a regular policy during the tenure of the policy.
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Level Term Policy (Non - Par/Non - Con)
In the exciting journey of life, there will be uncertainties, and there will be various occasions
when you have to play or assume added responsibilities being the head of the family. The much-
anticipated arrival of a new member in the family, the purchase of your dream house, the
wonderful event of your marriage, your children's higher education or their marriage may all be
described as planned life events, but they bring their own share of uncertainties. It is important to
be financially secured and prepared to meet these uncertainties and make your family feel fully
protected, should something unfortunate happen to you.
Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a
very low cost and reduces the consequent hardship your family may have to bear in the
unfortunate event of your death. Incase of the unfortunate death of the policy holder during the
term of the plan, an amount equal to the sum assured is paid to the nominee.
HDFC Term Assurance Plan
This plan is designed to help secure your familys financial needs in case of uncertainties. The
plan does this by providing a lump sum to the family of the life assured in case of death or
critical illness (if option is chosen) of the life assured during the term of the contract. One can
choose the lump sum that would replace the income lost to ones family in the unfortunate event
0 10 20 30 40 50 60 70
Five yr renewal &
convertible plan
Level term policy
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of ones death. This helps your family to maintain their financial independence, even when you
are not around.
High cover at a very nominal cost.
Flexibility to choose the Sum Assured.
Additional benefit options can be availed at marginal costs.
Premium amount remains the same over the term of the policy in case of regular
premium
Option of paying single premium or regular premium.
Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961
HDFC Loan Cover Term Assurance Plan
This plan aims to protect your family from your loan liabilities in case of your unfortunate
demise within the policy term. It provides the beneficiary with a lump sum amount, which is a
decreasing percentage of the initial Sum Assured. This means that as the outstanding loan
decreases as per the loan schedule, the cover under the policy also decreases as per the policy
schedule.
Flexibility to choose the Sum Assured.
Decreasing Sum Assurance as the outstanding loan decreases ensures that you do not payfor the protection you dont need.
Additional Optional Benefit is available at a nominal cost.
Option of paying single premium or regular premium.
Tax benefits are offered under section 80C, 80 D and 10(10D) of the Income Tax Act,
1961
HDFC Home Loan Protection Plan
This plan aims to protect your family from your loan liabilities in case of your unfortunate
demise within the policy term. It ensures that your family does not lose the dream house that you
have purchased for them, in case you are not around to repay the outstanding monthly
installments on your housing loan. This provides you with the comfort of knowing that in your
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absence, a sum of money will be available towards repaying your housing loan, making sure that
your family will be secure in your family home.
A decreasing Sum Assured payable if you die during the term of the contract. This sum assured
is intended to help pay-off your outstanding home loan
Policy can be availed by paying a single premium in advance
The premium amount can be included in the housing loan and repaid as part of the loan
repayment installments
Decreasing Sum Assured makes sure that you do not pay for protection you dont need
Whole Life Participating Plan
With an insurance cover till age 100, Whole Life Participating Plan is designed to provide you a
lifetime of security. The good times that you and your family lead should last a lifetime.
However one cannot avoid unpleasant surprises and misfortunes in life. The Whole Life Plan
provides you with the comfort that your near and dear ones will continue to live their lives in
comfort without financial worries even when you are not around.
The Whole Life Plan provides an insurance cover that is guaranteed for life. The policy alsobuilds cash value, which you can use to fund any unforeseen needs. In addition, the policy is also
eligible for bonuses. Max New York Lifes savings plans are designed to provide the customer
the dual benefits of protection along with the potentially higher returns. This plan also allows
you to purchase additional benefits in the form of bonuses that will be paid on maturity of the
HDFC Term Assurance Plan
HDFC Loan Cover Term
Assurance Plan
HDFC Home Loan
Protection Plan
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Base policy or in the unfortunate event of the death of the Life Insured. Additionally, you can
also continue to invest more funds without having to provide any further evidence of insurability
Life Pay Money Back Plan
Life Pay Money Back (Participating Plan) will keep paying you a part of the Sum Assured at
regular intervals, to take care of your periodic foreseen needs, and the balance keeps growing to
take care of your long term saving needs, as well as provides insurance coverage till maturity.
And in case of any unforeseen event also, this plan helps you provide for your family's protection
needs by paying an amount equal to the sum assured plus bonuses, if any.
In addition this policy is also eligible for bonuses. The Company may declare bonuses, from time
to time, and these will be paid out to you, based on your choice of bonus options. This plan also
provides various benefits on death of the life insured, where sum assured plus sum assured of
paid up additions, bought out of your bonuses, will paid out immediately to the beneficiary.
Further, with the customized options, you can enhance the value of your plan or customize it to
suit your individual needs by adding various rider options available under this plan.
CHILDREN PLANS
Children's Endowment to 18 (Par) Plan
Life has innumerable surprises stored for us. Parenthood is wonderful and it is one such stage,
when you experience various emotions you never thought you had. But parenthood also brings
its own set of apprehensions and worries. What will your child grow up to be in the future? Will
his/her future be as secure as you want it to be? Or more importantly what can you do to make
sure his/her future is hassle-free and secure? So, planning ahead for your childs future needs
such as higher education is extremely important and ensuring that you have the ability to fulfill
those needs is even more critical.
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Max New York Life presents Children's Endowment Participating Insurance to age 18 with an
option to buy a permanent life insurance policy without medical underwriting (irrespective of
his/her health at that time). This policy which is especially designed to enable you to provide for
higher education of your child and take care of your childs future needs in case of spiraling
costs.
Maturity Benefit: Face Amount plus Accrued bonus (if any) on life insured's survival to
maturity
Death Benefit (Life Insured): Refund of Premiums plus Interests plus Accrue bonus (if any)
On Surrender of Policy: Cash value as built in the policy will be paid at the time of surrender
of policy. There is no cash value till 3 years premiums have been paid in full. Bonus Options:
Bonus is not declared for the first 3 years of the policy.
At the time of Bonus declaration the following Bonus Option is available:
Paid in Cash - Bonus declared by the company will be paid out to the policy holder
Non-Forfeiture Options:
Reduced Paid Up: A lower Sum Assured for the remaining term of your policy. In case you do
not want the above, you can choose to take cash value by cheque.
Children's Endowment to 24 (Par) Plan
Parenthood is wonderful. However, this is a phase in life when you are expected to fulfill various
responsibilities, which grows as your child gets older. Its important that you plan in advance to
meet your childs future needs and be financially prepared. Its important that you plan in
advance to meet your childs future needs and be financially prepared.
Max New York Lifes Children's Endowment Participating Insurance to age 24 provides an
option to buy a permanent life insurance policy without medical underwriting (irrespective of
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his/her health at that time). This policy enables you to provide for various events in your childs
life such as a grand wedding of your child. This excellent plan is a participating plan, which is
also eligible for bonuses and Max New York Life may declare these bonuses from time to time
and from the third policy year. An important feature of this plan is that the entire sum assured is
paid out on maturity and the plan automatically vests when the child turns 18.
SMART Steps Plan
As a responsible parent, it is your responsibility to ensure that your child has a safe and a bright
future. Higher education, marriage, and financial security for your child are just some of the most
important things that you would want to save your money for. However, with ever-rising cost of
living in todays world, simple savings would not be enough. As a good planner, you need to
look ahead and plan accordingly. As you work hard to ensure that your child receives quality
education and has a secured future, you need a plan, which would provide you the helping hand
and the desired financial support at times of unavoidable crisis in the future.
Introducing Max New York Lifes regular premium unit linked life insurance childrens plan
SMART Steps, which will help you plan for your child's future in a SMART way and takes
your worries away. This plan offers the required financial protection for your loved ones if you
are not alive and provides an unmatched investment opportunity by way of well managed
investment funds. This policy also entitles you to make partial withdrawals for various
unplanned expenses in the future.
SMART Steps Plus
It is your responsibility to ensure that your child has a safe and a bright future. Higher education,
marriage, and financial security for your child are just some of the most important things that
you would want to save your money for. However, with ever-rising cost of living in todays
world, simple savings would not be enough. As you work hard to ensure that your child receives
quality education and has a secured future, you need a plan, which would provide you the
helping hand and the desired financial support at times of unavoidable crisis in the future.
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Children plans ensure that money is made available at the crucial junctures in a child's education
and to fund crucial commitments for the child's future.
A regular premium unit linked life insurance plan, Max New York Lifes SMART Steps Plus
will help you plan for your child's higher education, marriage, and financial security. This plan
offers no-compromise 360 degree protection to your children even if you are not alive and
provides an unmatched investment opportunity by way of well managed investment funds. This
policy also entitles you to make partial withdrawals for various unplanned expenses in the future.
.
SMART Steps Single Premium Plan
Higher education, marriage, and financial security for your child are some of the most important
things that you would want to save your money for. It is your responsibility to ensure that your
child has a safe and a bright future. However, with ever-rising cost of living in todays world,
simple savings would not be enough for all your childs future needs. Your support and financial
security for your child is of utmost importance and thats the reason you need a plan, which
would provide you the helping hand and the desired financial support at times of unavoidable
crisis. Children plans ensure that money is made available at the crucial junctures in a child's
education and to fund crucial commitments for the child's future.
Max New York Lifes SMART Steps Single Premium policy will help you plan for your child's
future in a SMART and organized manner. Apart from offering 360 degree protection to your
child if you are not alive, this plan also provides an unmatched investment opportunity by way of
well managed investment funds. This policy also entitles you to make partial withdrawals for
various unplanned expenses in the future.
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HDFC Childrens Plan
As a parent, your priority is your childs future and being able to meet your childs dreams and
aspirations. With our HDFC Childrens Plan, you can start building your savings today and
ensure a bright future for your child. This With Profitsplan is designed to secure your childs
future by giving your child (Beneficiary) a guaranteed lump sum on maturity or in case of your
unfortunate demise, early into the policy term.
Lets you customize an ideal plan for your child and provide invaluable financial support
The Double Benefit Plan Option helps you secure your childs immediate and future needs. In
case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your
family need not pay any further premiums and the policy continues. And on maturity of the plan,
we will pay you the Sum Assured plus Bonuses Declared
You can choose to pay your premium as either Annually, Half-Yearly or Quarterly depending on
your convenience. You also have a range of convenient auto premium payment options
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
HDFC Unit Linked Young Star II
As a parent, your priority is your childs future and being able to meet your childs dreams and
aspirations. With our HDFC Unit Linked Young Star II, you can start building your savings
0
510
15
2025
30
35
4045
50
Children's
Endowment
to
18(par)plan
Children's
Endowment
to
24(par)plan
Smart Steps Smart Steps
plus
Smart Steps
Single
Premium
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today and ensure a bright future for your child. This plan provides valuable protection to your
child in case you are not around. This Unit Linked Plan also gives you with an outstanding
investment opportunity to maximize your savings by providing you a choice of thoroughly
researched and selected investments.
You can customize the ideal plan for your child by choosing the premium you wish to invest
along with the Sum Assured, depending on the level of protection required
The Triple Benefit payment preference helps you secure your childs immediate and future
needs. In case of your unfortunate demise or critical illness, we will pay the Sum Assured to your
child (Beneficiary). Your family need not pay any further premiums. We will pay 50% of all the
future premiums at the original level towards your policy and 50% of the premiums will be paid
to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness
cover terminates immediately
In the long term, the key to building great maturity values is a low Fund Management Charge
(FMC). We have a low FMC of only 1.25% per annum (of the funds value)
You can choose to pay your premium as either Annually, Half-Yearly or Monthly depending on
your convenience. You also have a range of convenient auto premium payment options
You can change your investment fund choices in two ways:
Switching: You can move your accumulated funds from one fund to another anytime
Premium Redirection: You can pay your future premiums into a different selection of funds, as
per your need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
HDFC Unit Linked Young Star Plus II
As a parent, your priority is your childs future and being able to meet your childs dreams and
aspirations. With our HDFC Unit Linked Young Star II, you can start building your savings
today and ensure a bright future for your child. This Unit Linked Plan provides valuable
protection to your child in case you are not around and gives you with an outstanding investment
opportunity to maximize your savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives regularLoyalty Units to boost your fund value each
year.
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This plan gives you regular Loyalty Units to boost your fund value every year. At the end of
every policy year, we will increase the number of units (Loyalty Units) in each of your funds by
0.10% as long as your policy is in force (premium paying or paid up). The compounding effect
of these regular additions is expected to boost your final maturity value
You can change your investment fund choices in two ways:
Switching: You can move your accumulated funds from one fund to another anytime
Premium Redirection: You can pay your future premiums into a different selection of funds, as
per your need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
HDFC Unit Linked Young Star Champion
As a parent, your priority is your childs future and being able to meet your childs dreams and
aspirations. With our HDFC Unit Linked Young Champion, you can start building your savings
today an ensure a bright future for your child. It is a convenient plan, which saves you from the
need of going for Medicals. This Unit Linked Plan provides valuable protection to your child in
case you are not around and gives you with an outstanding investment opportunity to maximize
your savings by providing you a choice of thoroughly researched and selected investments. This
plan also gives Bumper Addition to the fund value at Maturity.No need to go for medicals. Just filling a Short Medical Questionnaire will do
This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be
augmented by addition of Bumper Addition, which is a percentage of your original annualized
premium
You can change your investment fund choices in two ways:
Switching: You can move your accumulated funds from one fund to another anytime
Premium Redirection: You can pay your future premiums into a different selection of funds, as
per your need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
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INVESTMENT PLANS
Life Maker Premium Investment Plan
All of us desire a lavish and comfortable life. Max New York Life wants you to think beyond
basic necessities of life i.e. Food, Clothes and Shelter. The latest Life Maker Premium
Investment Plan gives you a lot of choices - especially when you are looking for Great life style,
Big Home, your own well established Business and top of all - Protection for your family. Our
Unit linked Life Insurance plan can be the financial cornerstone for your objectives. Max New
York Life Insurance provides you a powerful investment-cum-insurance plan where you can
direct your investments in the customized unit linked funds such as equities, money market
instruments, investment grade corporate bonds, and government securities. These funds offer a
wide range of returns basis market returns. You can choose to invest your premiums in one or
more of these funds, basis your risk taking ability.
The switching feature of this policy provides you the facility to change the investment pattern by
moving from one fund to other fund(s) amongst the funds offered under this contract and in case
of unforeseen urgent needs; the plan ensures easy liquidity to you by accessing your fund
through surrender benefit.
0 5 10 15 20 25 30 35 40 45
HDFC Children's Plan
HDFC Unit Linked Young Star II
HDFC Unit Linked Young Star Plus II
HDFC Unit Linked YoungStar
Champion
Series1
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Life Maker Platinum Plan
This journey of life is full of wonderful dreams and all the dreams are worth fulfilling. Max New
York Life makes tedious efforts to have fruitful results in the form of protection, high-return
investment, and financial liquidity for you. With the Life Maker Platinum - a Unit Linked
Investment Plan, you can meet all your financial needs, without the tedium of managing
multiple products. In this plan, you can direct your investments in the customized unit linked
funds such as equities, money market instruments, investment grade corporate bonds, and
government securities. These funds offer a wide range of returns basis market returns. You can
also choose to invest your premiums in one or more of these funds, basis your risk taking ability.
In addition to free loyalty units and tax benefits on premiums and maturity value, you can also
avail Persistency Units benefit on paying regular premiums, which will allocate Persistency
Units to your unit account on payment of last premium of your policy. Life Maker Platinum Plan
also provides you insurance cover, in which, your nominee will get the Sum Assured plus the
Fund Value to your nominee(s), in case of unfortunate event of your death. Our Plan also offers
you the flexible investment feature, where you can choose one out of four attractive funds
options and also change your risk return profile of your existing investments by switching across
funds with our high customization feature.
Choice of attractive investment funds
Flexibility to manage investments through switching and redirection
Additional protection against disease and disability through riders
Flexibility to invest a lump sum amount through top ups
Free Loyalty Units
Tax benefit on premiums and maturity value
Life Maker Gold Plan
The journey of life is full of wonderful dreams. To make them come true, you need a plan which
would provide protection, investment, and financial liquidity. This calls for managing multiple
financial products. However with the Life Maker Gold - a Unit Linked Investment Plan, you
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can meet all your financial needs, without the tedium of managing multiple products. In this
plan, you can direct your investments in the customized unit linked funds such as equities,
money market instruments, investment grade corporate bonds, and government securities. These
funds offer a wide range of returns basis market returns. You can also choose to invest your
premiums in one or more of these funds, basis your risk taking ability.
This plan enables you to choose an attractive investment fund, enjoy free loyalty units a