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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.

    http://freepress.in/wp-content/uploads/2009/02/life-insurance-india-share.png
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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


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