Hdfc Final Project

“A DETAILED STUDY OF RECRUITMENT AND RETNETION STRATEGIES OF FCs IN LIFE INSURANCE INDUSTRY WITH A SPECIAL FOCUS TO HDFC SLIC”

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TABLE OF CONTENTS

Chapter No TitlePage No

A List of Tables

B List of Figures

C List of Abbreviations

1 Executive Summary

1.1 Industry Profile

1.2 Company profile

1.3 Key strength

1.4 Rewards

1.5 Major Players

1.6 Who can be FC ?

1.7 Work of FC

2 Objective

2.1 Limitation

3 Methodology

3.1 Findings

4 Conclusions

4.1 Suggestions

Appendix

Bibliography

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LIST OF TABLES

Tables No

Title

Page No

5.1Life Insurers

5.2 Product list of HDFC SLIC

5.3First Year Premium of Life Insurers for the Period Ended JUNE, 2008

5.4PREMIUM UNDERWRITTEN BY LIFE INSURERS IN INDIA 2006-07

6.1 Willingness to be FC for HDFC

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LIST OF FIGURES

figures No

TitlePage No

5.1 JOINT VENTURE

5.2

LOAN APPROVALS AND DISBURSEMENTS

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LIST OF ABBREVIATIONS

HDFC Housing Development Finance Corporation.

SLIC Standard Life Insurance Company.

FC Financial Consultant

SDM Sales Development Manager

BDM Business Development Manager

CFC Certified Financial Consultant

LA Life Assured

SA Sum Assured

ADB Accidental Death Benefit

CI Critical Illness

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Chapter 1

Executive Summary

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INDUSTRY PROFILE

LIFE INSURANCE

Life is full of risks. Being a social animal and risk averse, man always tries to reduce risk. An age-old method of sharing of risk through economic cooperation led to the development of the concept of ‘insurance’. Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance spreads the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big uncertain and changing liability. Insur-ance is a scheme of economic cooperation by which members of the community share the unavoidable risks. The risks, which can be insured against include fire, the perils of sea, death, accidents, and burglary. The members of the community subscribe to a common pool or fund, which is collected by the insurer to indemnify the losses arising out of risks. Insurance cannot prevent the occurrence of risk but it provides for the losses of risk. It is a scheme, which covers large risks, by paying small amount of capital. Insurance is also a means of savings and investment. Insurance can be defined as a legal contract between two parties whereby one party called insurer under-takes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncer-tain. The other party called insured pays in exchange a fixed sum known as premium. The insurer and the insured are also known as Assurer, or Underwriter, and Assured, respectively. The document, which embodies the contract, is called the policy. An insurance contract is based on some basic principles of insurance.a. Principle of ‘Uberrima Fides’ or Principle of utmost good faith.b. Principle of Indemnity.c. Doctrine of Subrogation.d. Principle of Causa Proxima.e. Principle of insurable interest.

a. Principle of utmost good faith: It means “maximum truth”. All material information regarding the subjectmatter of insurance should be disclosed by both the parties-the insurer and the insured. This duty of full disclosure rests more heavily on the insured

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than the insurer. The insurer has a right to avoid the contract if the insured fails to make the full disclosure.

b. Principle of indemnity: This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent ofloss. In otherwords, the insured is not entitled to make a profit on his loss.

c. Doctrine of subrogation: This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insured’s right of recovery from analternative source is involved. The right may be exercised by the insurer before the settlement of the claim. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent personresponsible for the loss and prevent the insured from collecting twice for the same loss.

d. Principle of causa proxima: The cause of loss must be direct and an insured one in order to claim forcompensation.

e. Principle of insurable interest: The assured must have insurable interest in the life or property insured. Insurable interest is that interest which considerably alters the positionof the assured in the event of loss taking place and if the event does not take place, he remains in the same old position. One who has to lose as a result of loss may be said to have insurable interest in the life or property insured. If this principle is absent, the insurance contract degeneratesinto a wagering contract. It is taken as given that an individual has insurable interest in his/her own life or property. Cases where no proof of insurable interest is required are that of a husband’s interest in his wife’s life and wife’s interest in her husband’s life. In cases of business and family relationships, proof of insurable interest is required.

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ORIGIN AND DEVELOPMENT OF INSURANCE

The concept of insurance is believed to have emerged almost 4,500 years ago in the ancient land of Babylonia where traders used to bear risk of the caravan by giving loans, which were later repaid with interest when the goods arrived safely. In order to protect against the risk of loss of goods in transit, piracy and natural calamities like storms and so on, medieval guilds (trade associations) formed a common pool of funds, which was used as support in times of sickness and death and sometimes even offered as ransom for members held captive by pirates. The first insurance contract was entered into by European maritime nations in 1347 to accept marine insurance as a practice.

The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyd’s became the one of the first modem insurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in1967 the first fire insurance company known as the Fire office.

The oldest life insurance company in existence today is the Society for the Equitable Assurance of Lives and Survivorship, known as ‘Old Equitable’. It was established in England in 1756.The mortality tables were constructed in the seventeenth century. The first mortality table was constructed by an astronomer Edmund Haley in 1693. This table provided a link between the life insurance premium and average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson re-worked the table, linking insurance premium rate to age.

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The infamous New York Fire and the great Chicago Fire in 1835 and 1871, respectively, created an awareness and need for insurance. The concept of reinsurance emerged to deal specifically for such situations. Industrialisation and urbanisation popularised the concept of insurance and growth in insurance led to the development of new insurance products.

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HISTORY OF INSURANCE IN INDIA

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term ‘Yogakshema’ (meaning well being), the name of Life Insurance Corporation of India’s corporate headquarters, is found in the Rig Veda. Some form of ‘community insurance’ was practiced by the Aryans around 1000 BC. The joint family system prevalent in India was an important form of social cooperation.

Life insurance in its modem form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as sub-normal and charged an extra premium of 15 to 20 per cent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates. Moreover, in 1870, the British Government enacted for the first time the Insurance Act, 1570. Other companies, such as the Oriental Government Security Life Assurance Company, the Bharat Insurance Company, and the Empire of India Life Insurance Company Limited, were set up between 1870 and 1900.

The Swadeshi movement of 1905-07, the non-cooperation movement of 1919, and Civil Disobedience Movement of 1929 led to an increase in number of insurance companies. In 1912, the first legislation regulat-ing insurance, the Life Insurance Companies Act, 1912, was promulgated. The growth of life insurance was witnessed during the first two decades of thetwentieth century not only in terms of number of companies but also in terms of number of policies and sum assured. Indian Insurance Year Book was published for the first time in 1914.The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance was enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure, and management of these companies. An office of the Controller of Insurance came into existence. The Controller of Insurance had wide-ranging powers, which included directing, cautioning, advising, prohibiting, inspecting, investigating, searching, seizing,

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prosecuting, penalising, authorising, registering, amalgamating, and liquidating insurance companies.By the mid-1950s, there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carry-ing on life insurance business in India. Insurance business flourished and so did scams, irregularities, and dubious investment practices by scores of companies. As a result, the government decided to nationalise the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956 to take over 245 life companies. The nationalisation of life insurance was followed by general insurance in 1972. The General Insurance Corporation of India and its subsidiaries were set up in 1973. Most of the powers of the Controller ofInsurance were taken away and vested in state-owned LIC and GIC for operational conven-ience. These nationalised companies enjoyed monopoly for decades. They did a commendable job in extend-ing the distribution network and successfully handled a large volume of business. But with only 20 per cent of the population insured there was a vast potential untapped. Besides, as a sequel to the reform process and to tap the insurance sector as a source of long-term funds, the government decided to introduce reforms in the insurance sector.

The Government set up, in 1993, a committee under the chairmanship of R N Malhotra, the former insur-ance secretary and RBI governor to evaluate the Indian insurance industry and recommend its future direction. This committee submitted its report in 1994 and suggested the re-opening upof the insurance sector to private players. This sector was finally thrown open to the private sector in 2000. The Insurance Regulatory and Development Authority (IRDA) was set up in 2000 as an autonomous insurance regulator. The government has entrusted IRDA with the responsibility for carrying out the reforms in this sector.

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OPENING UP OF THE INSURANCE SECTOR

The insurance industry till the nineties had only two nationalised players: Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) and its four subsidiaries. These two players had a monopolistic control over the market. These nationalised insurance companies did a commendablejob in terms of high growth in volume of business and reach. However, they were not consumer oriented, unwilling to adopt mod-em practices and technology to upgrade technical skills, and inefficient in operations. The growth in volume was mainly driven by income-tax considerations and hence a major portion of the vast rural area was untapped. Moreover, with a population of more than one billion and savings rate of around 24 per cent, India has a vast market, which is untapped. The foreign insurance companies’ external influence and pressure to open up the Indian insurance sector was high.

In 1993, the committee under the chairmanship of R N Malhotra, set up to evaluate the Indian Insurance industry and recommend its future direction, submitted its report in 1994 and its major recommendations revolved around the structure and regulation of insurance industry. The main recommendations were:

i. The government should bring down its stake in the insurance companies to 50 per cent.

ii. Private companies with a minimum paid-up capital of Rs 100 crore should be allowed to enter the industry.

iii. No single company should be allowed to transact business both life and general insurance business. The number of entrants should be controlled.

iv. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. The committee did not favor foreign companies operating in India through branches.

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

vi. The mandatory investments of LIC Life Fund in government securities need to be reduced from 75 per cent to 50 per cent.vii. The GIC and its subsidiaries should not hold more than 5 per cent in any company.

viii. The promoters’ holding in a private insurance company should not exceed 40 per cent of the total. However, if the promoters wish to start with a higher holding, they should be permitted to do so pro-vided their holding is brought down to 40 per cent within a specified period of time through public offering. No person other than the promoters should be allowed to hold more than one per cent of the equity. Promoters should at no time hold less than 26 per cent of the paid-up capital.

ix. Regulatory and prudential norms as well as conditions for ensuring level-playing field among insurers should be finalised early so that intending entrants into the insurance business would be aware of the stipulations they would have to comply with. These conditions should aim to ensure that life insurers do not neglect the small man or the rural business and that the general insurers have balanced portfo-lios.

x. Though nationalised insurance companies are in a position to face competition, it is essential that they quickly upgrade their technology, reorganise themselves on more efficient lines, and are enabled to operate as board-run enterprises.

xi. As an interim measure, the office of Controller of Insurance should be restored its full functions under the Insurance Act and it should be set up as a separate office as a matter of high priority.

xii. Legislation and government notifications through which LIC and GIC were exempted from several provisions of the Insurance Act should be withdrawn.

xiii. A strong and effective insurance regulatory authority in the form of a statutory autonomous board on the lines of SEBI should be set up.

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xiv. The state level cooperatives should be allowed to set up cooperative societies for transacting life insurance business in the state. There will not be more than one society for each state which will be subject to the regulations of Insurance Regulatory Authority.

xv. GIC should cease to be the holding company for its subsidiaries and the exclusive function of GIC should remain that of reinsurer.

xvi. When GIC ceases to be holding company of the four subsidiary companies, then the government should acquire GIC’s stake, which is Rs 40 crore in every company. This share, then should be raised to Rs 100 crore for every company, the government holding 50 per cent and the restbeing held by the public at large. Recognising the global trend of competitive, market driven, insurance industry and the recommendations of the Malhotra Committee, the insurance industry was opened up in August2000. There are at present 12 life insurance and 11 general insurance companies operating in India with more players expected to come in. The Insurance Regulatory and Development Authority (IRDA), constituted in April 2000 under the IRDA Act, 1999, is vested with the power to regulate and develop the insurance and reinsurance business.

Most of the foreign insurers have preferred to form joint ventures with Indian companies. Banks, financial institutions, and non-banking finance companies are permitted to enter the insurance sector. The Reserve Bank has issued guidelines regulating the degree of participation of banks, financial institutions and non-banking finance companies in the insurance business depending on balance sheet strength. The Reserve Bank accorded approval to five banks for joint ventures on risk participation basis while 18 banks and a subsidiary of a bank were given ‘in principle’ approval for agency business. The Reserve Bank has given permission to

a. five NBFCs to undertake insurance business as joint venture participants

b. one NBFC to engage in insurance agency business as well as to make strategic investment in equity of an insurance company

c. two NBFCs to make only strategic investments

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d. two NBFCs to undertake only insurance agency business.

The Insurance (Amendment) Act, 2002, has allowed cooperative societies to carry on insurance business with a view to enhancing coverage in rural areas. This Act deals in four broad areas, namely, broken regula-tion, corporate agent regulations, section 64VB that deals in payments to be made through credit card and internet, and section 49 that deals with the distribution of actuarial surpluses between the shareholder and policyholder. Corporate acting as corporate agents will have to surrender their licence to be brokers, as there is a conflict of interest between two parties. Banks will continue to be corporate agents and non-brokers. The designated person, acting on behalf of the corporate agent (like a bank) after leaving their jobs can be an agent without having to take further exams mandated by the regulator. The amended insurance act would form the future legal base for making the regulation on intermediaries.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the business of insurance and re-insurance in India.The Authority was constituted on April 19, 2000, vide Government of India’s notification No. 277.

The Insurance Regulatory and Development Authority Act, 1999, was enacted by Parliament in the fifti-eth year of the Republic of India to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of theinsurance industry, and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General Insurance Business (Nationalisation) Act, 1972. The Act was approved in the Parliament in December 1999 and the insurance sector was thrown open for private licensees on August 15, 2000. IRDA was constituted in terms of the Insurance Regulatory and Development Authority Act, 1999, as the regulator of the Indian Insurance industry.

IRDA was set up in 1996 but it was formally constituted as a regulator of the insurance industry in April 2000. The regulator was initially known as the Insurance Regulatory Authority but was subsequently rechristened as Insurance Regulatory and Development Authority as it was provided that it had a broader role to perform in the Indian insurance market. It has not only to frame and issue statutory and regulatory stipulations, guidelines, and clarification but it has also to perform a developmental and promotional role. The developmental and promotional role of the regulator include facilitating the growth of the market by attracting large number of players, integrating of the insurance market with the domestic financial servicesmarket, and synchronising the Indian Insurance market with that of global insurance market. Thus, the objectives of IRDA are two fold: policyholder protection and healthy growth of the insurance market.

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KEY MARKET INDICATORS

Size of Market, Life and Non- Life:$8 Billion a year

Rate of Annual Growth :Average of 20% for Life and 12% for Non-Life (1990-99)

Geographical Restriction for New Players: None. Players can operate all over the country.

Equity Restriction in a New Indian Insurance Company :Foreign promoter can hold up to 26%.

Registration Restriction:Composite Registration not available.

Market Opening:August 2000 with invitation for application for registration.

Number of Registered Companies:

Type of Business Public Sector Private Sector Total

Life Insurance 01 12 13General Insurance 04 09 13Reinsurance 01 0 01Total 06 21 27

New Registration Awarded: Twenty-one New Registrations issued:

Life Insurance:

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1. Allianz Bajaj Life Insurance Company Limited.2. *Birla Sun-Life Insurance Company Limited.3. *HDFC Standard Life Insurance Company Limited.4. *ICICI Prudential Life Insurance Company Limited.5. ING Vysya Life Insurance Company Limited.6. *Max New York Life Insurance Company Limited.7. Metlife Insurance Company Limited.8. Om Kotak Mahindra Life Insurance Company Ltd.9. *SBI Life Insurance Company Limited.10. *TATA AIG Life Insurance Company Limited.11. AMP SAN MAR Insurance Company Limited.12. Dabur CGU Life Insurance Company Private Ltd.

General Insurance

1. Bajaj Allianz General Insurance Company Limited.2. ICICI Lombard General Insurance Company Ltd.3. *IFFCO-Tokio General Insurance Company Ltd.4. *Reliance General Insurance Company Limited.5. *Royal Sundaram Alliance Insurance Company Ltd.6. *TATA AIG General Insurance Company Limited.7. Cholamandalam General Insurance Company Ltd.8. Export Credit Guarantee Corporation Limited.9. HDFC-Chubb General Insurance Company Limited.

Business of New Players: Expected to take up a market share of 4-5% in three years.

IRDA has a Chairman and four whole-time and four part-time members. IRDA has constituted the insurance Advisory Committee and in

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consultation with this committee has brought out seventeen regulations. A leading consumer activist has also been inducted into the Insurance Advisory Committee. In addition, representatives of consumers, industry, insurance agents, women’s organisations, and other interest groups are apart of this committee. It has also formed a Consumer Advisory Committee and a Surveyor and Loss Assessors Committee. It has a panel of eligible Chartered Accountants to carry out investigation, inspection, and so on.

IRDA has till 2001 issued seventeen regulations in the areas of registration of insurers, their conduct of business, solvency margins, conduct of reinsurance business, licensing, and code of conduct intermediaries. It follows the practice of prior consultation and discussion with various interest groups before issuing regulations and guidelines.’”

Mission Statement of IRDA

To protect the interest of and secure fair treatment to policyholders.

To bring about speedy and orderly growth of’ the insurance industry (including annuity and superannuation payments) for the benefit of the common man, and to provide long term funds for accelerating growth of the economy.

To set, promote, monitor, and enforce high standards of integrity, financial soundness, fair dealing, and competence of those it regulates.

To ensure that insurance customers receive precise, clear, and correct information about products and services and make them aware of their responsibilities and duties in this regard.

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To ensure speedy settlement of genuine claims, to prevent insurance frauds, and other malpractices and put in place effective grievance redressal machinery.

To promote fairness, transparency, and orderly conduct in financial markets dealing with insurance and to build a reliable management information system to enforce high standards of financial soundness amongst market players.

To take action where such standards are inadequate or ineffectively enforced.

To bring about optimum amount of self-regulation in day to day working of the industry, consistent with the requirements of prudential regulation.

Duties, Powers and Functions of IRDA

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

(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include,

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

(b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;

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

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

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

(f) promoting and regulating professional organisations connected with the insurance and re-insurance business;

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

(h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business;

(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

(j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

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

(n) supervising the functioning of the Tariff Advisory Committee;

(o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f);

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(p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

(q) exercising such other powers as may be prescribed

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Life Insurers

S.NoNAME OF THE COMPANY NAME OF PRINCIPAL OFFICER

NAME OF APPOINTED ACTUARY

TELEPHONE NO./FAX No./E-MAIL & WEB

ADDRESS

1. Bajaj Allianz Life Insurance Company Limited .GE Plaza, Airport Road , YerawadaPune 411 006

Mr.Kamesh Goyal Mr. Anil Kumar Singh

Tel : 020-4026666 Fax : 020-4026789.

2. Birla Sun Life Insurance Co. Ltd 6th Floor, Vaman Centre, Makhwana Road,off Andheri-Kurla Road, Andheri(E), MUMBAI-400 059.

Mr. Vikram J. Mahmi

Mr. Fabien Jeudy

Tel : 022 5678 3333Fax: 022 5678 3232

3. HDFC Standard Life Insurance Co. Ltd 2nd Floor, Trade StarKondivita JunctionAndheri Kurla RoadAndheri EastMumbai 400059.

Mr.D.M. Satwalekar

Mr. William John Martin

Tel : 022-67516666Fax: 022-2822 8844

4. ICICI Prudential Life Insurance Co. Ltd ICICI Prulife Towers , 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025.

Ms. Shikha Sharma

Mr. Avijit Chatterjee

Tel :022-56621996Fax: 022-56622031

5. ING Vysya Life Insurance Company Ltd.ING Vysya Home, 5th Floor, #22 Mahatma gandhi Road Bangalore-560 001.

Mr.Kshitij Jain Ms. Hemamalini Ramakrishnan

Tel : 080-25328000Fax: 080-25559764

6. Life Insurance Corporation of India Yogakshema, Jeeva Bima Marg, Post Box No. 19953 MUMBAI 400 021

Shri T S. Vijayan Mr. T Bhargava Tel 56598701;56598702Fax: 22824386E-Mail ; [email protected]

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http://www.bajajallianzlife.co.in/

http://www.bajajallianzlife.co.in/

mailto:[email protected]

http://www.licindia.com/

http://www.licindia.com/


http://www.ingvysyalife.com/

http://www.ingvysyalife.com/



http://www.iciciprulife.com/

http://www.iciciprulife.com/



http://www.hdfcinsurance.com/

http://www.hdfcinsurance.com/

http://www.birlasunlife.com/

http://www.birlasunlife.com/

7. Max New York Life Insurance Co. Ltd 11th Floor, DLF Square , Jacaranda Marg, DLF City , Phase-II, GURGAON 122 002.

Mr. Gary R. Benett

Mr.John Charles Poole

Tel : 0124-2561717Fax: 0124-2561764

8. Met Life India Insurance Company Ltd.Brigade Seshamahal, No. 5, Vani Vilas Road , Basavanagudi, BANGALORE-560 004.

Mr. Rajesh Relan Mr. M S V S Phanesh

Tel : 080-26438638Fax: 080-26521970Toll Free No. 1-600-44-6969

9. Kotak Mahindra Old Mutual Life Insurance Limited 9th Floor, Godrej Coliseum,Behind Everard Nagar,Sion (East),MUMBAI-400 022..

Mr. Gaurang Shah

Mr. Bryce Leslie Johns

Tel : 022-6621 5999Fax:022-6621 5757, 6621 5858

10. SBI Life Insurance Co. Ltd Turner Morrison Building, 2nd Floor, 16, Bank Street, Fort Mumbai-400 023.

Mr.Uday Sankar Roy

Mr. Sanjeev Kumar Pujari

Tel : 022-56392000Fax: 022-56621471

11. Tata AIG Life Insurance Company Limited 5th 7 6th Floor, Peninsula Tower, Peninsula Corporate ParkGanpatrao Kadam Marg, Lower Parel, MUMBAI 400 013.

Mr.Trevor Bull Mr. Heerak Basu Tel : 022-66516000 Fax : 022-66550711

12 Reliance Life Insurance Company Limited.1st Floor, Mdas, Sahar Plaza,Andheri Kurla Road, Andheri East, Mumbai 400059.

Mr. P Nandagopal Ms. Pournima Gupte

Tel : 022-30479600/30479784Fax: 022-30479650

13 Aviva Life Insurance Company India LimitedAviva Tower, Sector Road, Opposit Golf Course, DLF-Phase V, Sector-43,

Mr. Albert Paterson

Mr. Chandan Khasnobis

Tel: 0124-270 9000/01,Fax: 0124-270 9007.

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http://www.avivaindia.com/

http://www.avivaindia.com/

http://www.reliancelife.com/

http://www.reliancelife.com/

http://www.tata-aig-life.com/

http://www.tata-aig-life.com/

http://www.sbilife.co.in/

http://www.kotaklifeinsurance.com/

http://www.kotaklifeinsurance.com/

http://www.metlife.co.in/

http://www.metlife.co.in/

http://www.maxnewyorklife.com/

http://www.maxnewyorklife.com/

Gurgaon - 122 003

14 Sahara India Life Insurance Co, Ltd. Sahara India Bhawan, Kopoorthala Complex,Lucknow 226024

Mr. N.C. Sharma

Mr. K K Dharni Tel: 0522-2337777Fax: 0522-2378200

15 Shriram Life Insurance Co, Ltd. Regd. Office : 3-6-478, 3rd Floor, Anand Estate, Liberty Road, Himayat Nagar, Hyderabad - 500029

Mr R Duruvasan Mr N S Sastry Tel: 040-23434466-72Fax: 040-23434488

16 Bharti AXA Life Insurance Company Ltd. 61/62, Kalpataru Synergy, Vakola, Opp. Grand Hyatt Hotel, Santacruz (E) Mumbai – 400 055

Mr. Nitin Chopra Mr. G L N Sarma Tel: 022 – 40306300/6301Fax: 022 - 40306347

17 Future Generali India Life Insurance Company Limited

001, Trade Plaza, Ground Floor, 414, Veer Sarvarkar Marg,Prabhadevi, Mumbai 400 025

Dr. Kim Chai Ooi

Mr. Gorakhnath Agarwal

Tel No.: 022-40976688

Fax No.: 022-40976868

18 IDBI Fortis Life Insurance Company Ltd.,

Tradeview, Oasis Complex, Kamala City, P.B. Marg, Lower Panel (W),Mumbai-400 013

Mr. G.V. Nageswara Rao

Mr. Michael J Wood

Tel No.: 022-24908109/10

Fax No.: 022-24941016

19 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

Mr. Harpal S. Karlcut

Mr. Paul Beresford

Tel: 0124– 44215706Fax: 0124- 4201109

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mailto:%[email protected]





http://www.irdaindia.org/[email protected]


http://www.shriramlife.com/

http://www.shriramlife.com/

http://www.saharalife.com/

http://www.saharalife.com/

C/o. HSBC at Amsoft Systems, Unitech Trade Centre,Sector-43, Sushant Lok-1,Opp. Park Plaza Hotel,Gurgaon-122 001

20 Aegon Religare Life Insurance Company Limited.

Mr. K.S. Gopalakrishnan

21 DLF Pramerica Life Insurance Co. Ltd.

Mr. Pradeep Kumar Thapliyal

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COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country The corporation has had a series of share issues raising its capital to Rs. 119 crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8,77,000 lives year ending March 31, 2007.

HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE, with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing Company in India for the last 27 years.

SNAPSHOT-I

Incorporated in 1977 as the first specialized mortgage company in India.

Almost 90% of initial shareholding in the hands of domestic intuitions and

retail investors. Current 77% of shares held by foreign institutional

investors.

Besides the core business of mortgage HDFC has evolved into a financial

conglomerate with holdings In:

HDFC Standard Life insurance Company- HDFC holds 78.07 %.

HDFC Asset Management Company – HDFC holds 50.1%

HDFC Bank- HDFC holds 22.25%.

Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.

HDFC Chubb General Insurance Company – HDFC holds 74%.

[28]

SNAPSHOT-II

Loan Approvals Rs. 805 billion.

(up to Dec 2004) (US $ 18.30 bn.)

Loan Disbursements Rs.669 billion

(up to Dec. 2004) (US $ 15.20 bn)

Housing Units Financed 2.5 million.

Distribution

Offices 181

Outreach Programs 90

[29]

KEY PLAYERS

Mr. Deepak S Parekh is the Chairman of the Company. He is also the

Executive Chairman of Housing Development Finance Corporation Limited

(HDFC Limited). He joined HDFC Limited in a senior management position

in 1978. He was inducted as a whole-time director of HDFC Limited in 1985

and was appointed as its Executive Chairman in 1993. He is the Chief

Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of

Chartered Accountants (England & Wales).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the

Company since November, 2000. Prior to this, he was the Managing

Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors

Degree in Technology from the Indian Institute of Technology, Bombay and

a Masters Degree in Business Administration from The American

University, Washington DC.

[30]

HDFC Group Companies

1. HDFC Limited2. HDFC Bank3. HDFC Asset Management Co. Limited4. HDFC Securities Limited5. HDFC Standard Life Insurance Company6. Intelenet Global7. CIBIL – Credit Information Bureau Investigation Ltd 8. HDFC Chubb General Insurance

[31]

About HDFC, Standard Life & Joint Venture

STANDARD LIFE

Standard Life is Europe’s largest mutual life assurance company. Standard

Life, which has been in the life insurance business for the past 175 years is

a modern company surviving quite a few changes since selling its first

policy in 1825. The company expanded in the 19th century from kits original

Edinburgh premises, opening offices in other towns and acquitting other

similar businesses.

Standard Life Currently has assets exceeding over £ 70 billion under its

management and has the distinction of being accorded “AAA” rating

consequently for the six years by Standard and Poor.

SNAPSHOT

Founded in 1875, company supporting generation for last 179 years.

Currently over 5 m. Policy holders benefiting from the services

offered.

Europe’s largest mutual life insurer

[32]

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first

companies to be granted license by the IRDA to operate in life insurance

sector. Reach of the JV player is highly rated and been conferred with

many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly,

Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.

These reflect the efficiency with which HDFC and Standard Life manage

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

HDFC Standard Life Insurance Company Ltd was incorporated on 14th

August 2000. HDFC is the majority stakeholder in the insurance JV with

81.4 %stale and Standard :of as a staple pf 18.6% Mr. Deepak Satwalekar

is the MD and CEO of the venture.

[33]

HDFC Standard Life Insurance Company Ltd. Is one of India’s leading

Private Life Insurance Companies., which offers a range of individual and

group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Ltd.) India’s leading

housing finance institution and the Standard Life Assurance Company, a

leading provider of financial services from the United Kingdom. Both the

promoters are will known for their ethical dealings and financial strength

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

industry- all important factors to consider when choosing your insurer.

BUSINESS GROWTH

Track Record so far

The gross premium income of HDFC, for the year ending March 31, 2007

[34]

stood at Rs. 2, 856 crores and new business premium income at

Rs. 1,624 crores.

The company has covered over 8,77,000 lives year ending March 31,

2007. Company also declared our 5th consecutive bonus in as many years

for our ‘with profit’ policyholders.

KEY STRENGTH

Financial Expertise

[35]

LOAN APPROVALS AND DISBURSEMENTS

TotalTotalGrowth –FY 05Growth –FY 05Approvals Approvals 30%30%Disbursements Disbursements 28%28%

As a joint venture of leading financial services groups. HDFC standard Life

has the financial expertise required to manage your long-term investments

safely and efficiently.

Range of Solutions

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

customized to specific needs. Our group solutions have been designed to

offer you complete flexibility combined with a low charging structure.

Strong Ethical Values:

HDFC is an ethical and Cultural Organization. False selling or false

commitment with the customers is not allowed.

Most respected Private Insurance Company

HDFC was awarded No-1 Private Insurance Company In 2004 by the

World Class Magazine Business World. Integrity, Innovation and

Customer Care.

HDFC Standard Life – Achievements

[36]

Inaugurated on 14th Aug 2000

First Private Life Insurance Co. to get license from IRDA

Customer Base of more than 10,00,000 customers

“Best New Insurer” Award from Outlook Money - 2003

“Most Respected Private Insurance Company” Award fromBusiness Word – 2004

“Intelligent Enterprise” Award from Technology Senate

First Private Life Insurance Co. to declare bonuses

Bonus Declaration for 6 consecutive years from inception

First Private Life Insurance Co. to introduce certification to sell Unit Linked Policies

First to implement Need Based Selling in insurance

First Life Insurance Co. to introduce Fund with 100 % exposure to Equities

First Life Insurance Co. to offer 24 free switches to their Unit Linked Policyholders

VISION of HDFCSL

The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short, “The most obvious choice for all”

Values of HDFCSL

[37]

- Integrity - Innovation- Customer Centric - People Care- Team Work - Joy & Simplicity

KEY STRENGTHS

As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. The company has a range of individual and group solutions, which can be easily customised to specific needs. The group solutions have been designed to offer complete flexibility combined with a low charging structure.

HDFC Standard Life Insurance Company Limited is one of India's leading private life insurance companies offering a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd), India's leading housing finance institution and Standard Life plc, the leading providers of financial services in the United Kingdom. HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC Standard Life's Product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, and Investment. Customers have the added advantage of customizing the Plans, by adding optional benefits called riders, at a nominal price. The company currently has 21 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 maintains very high professional standards during product offerings by providing sound financial advice, efficient post-sale service, and immaculate financial security. Ongoing training for conventional products, and specialized training, for unit-linked products, for its financial consultants, has also helped its customers choose the product, best suited for their needs.

[38]

HDFC Standard Life operates across more than 726 cities and towns of the country supported by its strong network of more than 1,45,000 Financial Consultants. HDFC Standard Life also has more than 383 corporate agents and other sales intermediaries including banks for distribution of insurance products.

HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company strengthened its number of offices from 103 to 572 across the country in less than 3 years. Through these offices, the company today services customer needs in over 730 cities and towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 74,000 as on March 31, 2007 to 1,44,000 as on March 31, 2008.

TRACK RECORD SO FAR

The cumulative premium income, including the first year premiums and renewal premiums is Rs. 1532.21 Crores in FY 2005 - 06. The company has covered over 1.6 million individuals, out of which over 5,00,000 lives have been covered through their group business tie-ups. The company also declared their 5th consecutive bonus in as many years for their policyholders.

HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. Thegrowth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments.

Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this growth to the quality of life insurance solutions offered by the company and its increased geographical reach. He also emphasised, 'We believe that our success is a result of our efforts in giving customers, the best long-term solutions to take care of their insurance needs. Our endeavour to provide high quality insurance and pension solutions to customers through quality

[39]

pre-sales advice, based on a sound need-based solutions approach, and post-sales service has started to pay off.' Highlights of Financial Year 2007-08New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07Alternate Channels including bancassurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI) Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07The average premium has increased to Rs. 33,000 Company products and services are now available in 726 cities and towns across the countryStrength of Financial Consultants has increased to 1,45,000.

HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally accepted indicator of an insurance company's performance. The total premiumincome (including renewal premium) grew by 70% to touch a figure of Rs. 4,859 crores. High levels of persistency have resulted in higher level of renewal premiums. Although there has been a slight dip from 89% to 86%, we continue to have the highest persistency level in the industry. Thecumulative sum assured for all policies issued upto March 31, 2008 crossed Rs. 87,000 crores.

In offering unit linked products, the structured sales process adopted by the company has paid rich dividends. 'We believe that we should be able to lengthen the maturity profile of our policy portfolio, now that the regulatory disincentive has been removed with effect from April 1, 2008,' added Mr.Satwalekar. HDFC Standard Life offers, both, life insurance policies as well as pension products on a unit linked platform as also the conventional 'with profits' platform.

Over 50% of the sum assured as on March 31, 2008, is in respect of non unit-linked policies. Over30% of funds under management are in respect of non-linked business, which reflects the balanced book between conventional and unit-linked business in the total portfolio of the company.The company's national relationships with large public and private sector banks have also helped it

[40]

reach out to a larger number of customers across the country. The company plans to further strengthen these relationships through the introduction of products specially designed for this channel.

HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company strengthened its number of offices from 103 to 572 across the country in less than 3 years. Through these offices, the company today services customer needs in over 726 cities and towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the last 3 years in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT) Club. The strength of MDRT qualified members has gone up to 496 as on December 31, 2007.

As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC Standard Life has issued over 217,000 policies accounting for 23% of all policies issued during 2007-08. Additionally, during 2007-08, HDFC Standard Life has covered 51,326 lives under the social sectorcategory, as against the requirement of 25,000 lives. Overall, the company has covered over 9,59,000 lives during the year ending March 31, 2008.

To meet the demands arising from the company's rapid growth, shareholders have contributed additional Rs. 470 crores of equity to take the paid-up share capital as on March 2008 to Rs. 1,271 crores.

MAJOR PLAYERS IN INSURANCE INDUSTRY

[41]

LIFE INSURANCE CORPORATION

Life insurance made its debut in India well ob4er 100 years ago. Its salient

features are not as widely understood in our county, as they ought to be.

What follows is an attempt to acquaint readers with some of the concept of

life insurance, with special reference to LIC. It should, however, be clearly

understood that the following narration is by no means an exhaustive

description of terms and conditions of LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office. An LIC it

will be glad to help you choose the life insurance plan to meet your needs

and render policy servicing.

ICICI PRUDENTIAL

ICICI Prudential life insurance company is a joint venture between ICICI

bank, a premier financial powerhouse and prudential plc. A leading

international financial service group headquartered in the United Kingdom.

ICICI prudential was amongst the first private sector insurance company to

being operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA) . ICICI Prudential

equity base 74% and 26% stake respectively. In the period April-

December 2004, the company garnered Rs. Billion of new business

premium for a total sum assured of over Rs 73.6 billion and wrote nearly

345000 policies.

The company has a network of over 50000 advisor; as well as 7

bank assurance tie-ups. Today, ICICI Prudential has emerged as the No -1

[42]

Private Life insured in the country. With a wide range of flexible products

that meet the needs of the customer at every step in life.

BAJAJ ALLIANZ: SHARED VISION

A household name in India teams up with a global conglomerate… Bajaj

Auto Ltd, the flagship company of the Rs. 8000 corers Bajaj group is the

largest manufactured of two- wheelers and three-wheelers in Indian and

one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image and

locality synonymous with quality and customer focus. With over 15000

employees, the company is a Rs. 4000 crores auto giant. It is the largest

2/3 wheelers manufactured in India and the 4th in the world .AAA rated by

crises, Bajaj auto has in a operation for over 55 years. It has joined hands

with Allianz to provide the Indian consumer with a distance option in term

of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co.

Ltd. Bajaj auto has following to offer-

Financial strength and stability to support the Insurance Business.

A Strong brand-equity.

A good market reputation as a world class organization.

Adequate experience of r4unning a large organization.

A 10 million strong base of retail customers using Bajaj Products.

Product list of HDFC SLIC

[43]

List of Products/Riders with UIN's:

Financial Year Name of Insurer

Name of the Product/Rider

Product/Rider UIN In operation

Remarks, if

any, by IRDA

From (opening

date)

To (closing

date) Products

2000-01HDFC Standard Life Insurance Co. Ltd.

HDFC Endowment Assurance 101N001V01 12-Dec-00

13-Mar-02


HDFC Endowment Assurance 101N001V02 13-Mar-02

2000-01HDFC Standard Life Insurance Co. Ltd. HDFC Money Back 101N002V01 12-Dec-00


HDFC Development Insurance Plan 101N003V01 30-Mar-01

16-Feb-06


HDFC Development Insurance Plan 101N003V02 16-Feb-06


HDFC Single premium Whole of Life Insurance 101N004V01 30-Mar-01


HDFC Group Term Insurance 101N005V01 7-Jun-01 6-Dec-06


HDFC Group Term Insurance 101N005V02 6-Dec-06

2001-02HDFC Standard Life Insurance Co. Ltd. HDFC Protection Series 101N006V01 13-Sep-01

15-Mar-02

2001-02HDFC Standard Life Insurance Co. Ltd. HDFC Protection Series 101N006V02 15-Mar-02

2001-02HDFC Standard Life Insurance Co. Ltd. HDFC Immediate Annuity 101N007V01 31-Jan-02

21-Feb-07

2004-05HDFC Standard Life Insurance Co. Ltd. HDFC Immediate Annuity 101N007V02 21-Feb-07


HDFC Personal Pension Plan 101N008V01 8-Feb-02


HDFC Bima Bachat Yojana 101N009V01 27-Nov-02

2002-03HDFC Standard Life Insurance Co. Ltd. HDFC Children's Plan 101N010V01 14-Feb-03

[44]


HDFC Group Unit Linked Plan 101L011V01 31-May-03

28-Mar-06


HDFC Group Unit Linked Plan Option A 101L011V02 28-Mar-06


HDFC Deposit Insurance Plan 101N012V01 19-Sep-03

28-Mar-05

Withdrawn


HDFC Home Loan Protection Plan 101N013V01 6-Oct-03 5-Aug-04


HDFC Home Loan Protection Plan 101N013V02 5-Aug-04


HDFC Savings Assurance Plan 101N014V01 23-Dec-03


HDFC Unit Linked Endowment Plan 101L015V01 30-Dec-03 23-Jun-06


HDFC Unit Linked Endowment 101L015V02 23-Jun-06 1-Mar-08


HDFC Unit Linked Pension Plan 101L016V01 30-Dec-03 26-Jun-06


HDFC Unit Linked Pension 101L016V02 26-Jun-06


HDFC Leave Encashment Plan 101L017V01 29-Jan-04 1-Jul-06

2004-05HDFC Standard Life Insurance Co. Ltd. HDFC Assurance Plan 101N018V01 7-May-04


HDFC Unit Linked Young Star Plan 101L019V01 21-Jun-04 22-Jun-06


HDFC Unit Linked Young Star 101L019V02 22-Jun-06 1-Mar-08


HDFC Group Flexible Term Insurance 101N020V01 23-Jun-05


HDFC Group Variable Term Insurance 101N021V01 26-Dec-05


HDFC Group Unit Linked Plan Option B 101L022V01 28-Mar-06


HDFC Unit Linked Young Star Plus 101L023V01 22-Jun-06 1-Mar-08


HDFC Unit Linked Endowment Plus 101L024V01 23-Jun-06 1-Mar-08


HDFC Unit Linked Young Star Suvidha 101L025V01 23-Jun-06


HDFC Unit Linked Young Star Suvidha Plus 101L026V01 23-Jun-06

[45]


HDFC Unit Linked Endowment Suvidha 101L027V01 26-Jun-06


HDFC Unit Linked Endowment Suvidha Plus 101L028V01 26-Jun-06


HDFC Unit Linked Pension Plus 101L029V01 26-Jun-06


HDFC Unit Linked Enhanced Life Protection II 101L030V01 4-Feb-08


HDFC Unit Linked Endowment Plus II 101L031V01 4-Feb-08


HDFC Unit Linked YoungStar Plus II 101L032V01 5-Feb-08

Riders

2000-01HDFC Standard Life Insurance Co. Ltd. Accidental Death Benefit 101B001V01 12-Dec-00

13-Sep-01

2001-02HDFC Standard Life Insurance Co. Ltd. Accidental Death Benefit 101B001V02 13-Sep-01


Double Sum Assured Benefit 101B002V01 12-Dec-00

13-Sep-01

2001-02HDFC Standard Life Insurance Co. Ltd. Additional Term Benefit 101B002V02 13-Sep-01


Waiver of Premium Benefit 101B003V01 12-Dec-00

2000-01HDFC Standard Life Insurance Co. Ltd. Critical Illness Benefit 101B004V01 12-Dec-00

13-Sep-01

2001-02HDFC Standard Life Insurance Co. Ltd. Critical Illness Benefit 101B004V02 13-Sep-01


Total and Partial Permanent Disability Benefit 101B005V01 27-Aug-01 6-Dec-06

Group Rider


Total and Partial Permanent Disability Benefit 101B005V02 6-Dec-06

Group Rider


Total Permanent Disability Benefit 101B006V01 27-Aug-01 6-Dec-06

Group Rider


Total Permanent Disability Benefit 101B006V02 6-Dec-06

Group Rider

2001-02HDFC Standard Life Insurance Co. Ltd. Critical Illness Benefit 101B007V01 27-Aug-01 6-Dec-06

Group Rider

2006-07HDFC Standard Life Insurance Co. Ltd. Critical Illness Benefit 101B007V02 6-Dec-06

Group Rider

[46]

2001-02HDFC Standard Life Insurance Co. Ltd. Accidental Death Benefit 101B008V01 27-Aug-01 6-Dec-06

Group Rider

2006-07HDFC Standard Life Insurance Co. Ltd. Accident Death Benefit 101B008V02 6-Dec-06

Group Rider

2001-02HDFC Standard Life Insurance Co. Ltd. Terminal Illness Benefit 101B009V01 27-Aug-01

19-Aug-03

Group Rider

2003-04HDFC Standard Life Insurance Co. Ltd. Terminal Illness Benefit 101B009V02 19-Aug-03 6-Dec-06

Rider has

been integrate

d into the main product


Accelerated Sum Assured Benefit 101B010V01 13-Sep-01

First Year Premium of Life Insurers for

[47]

the Period Ended JUNE, 2008

Sl No.

Insurer

Premium No. of

Policies / Schemes

No. of lives covered under Group Schemes

JUNE,08

Upto JUNE,

08

Upto JUNE,

07

JUNE, 08

Upto JUNE,

08

Upto JUNE,

07

JUNE, 08

Upto JUNE,

08

Upto JUNE, 07

1 Bajaj Allianz

Individual Single Premium

34.75

71.55 76.84 7662

16939

15367

Individual Non-Single Premium

299.99

735.98

648.74

187817

480898

521272

Group Single Premium 0.14 0.51 2.15 0 0 0 227 856 1719

Group Non-Single Premium 8.54

21.20 4.12 40 120 64

324070

758734 130877

2 ING Vysya

Individual Single Premium 4.32

10.41 4.13 451 1227 318


70.61

146.41

111.36

41136

82007

64926


Group Non-Single Premium 0.60 0.93 0.95 15 30 4 3039 6723 30657

3 Reliance Life


35.48

125.47 20.87 9058

32511 4417


162.52

401.27

150.38

107863

255915

101309

Group Single Premium 3.98

26.81 29.48 1 4 14 125

14536 36587

Group Non-Single Premium 1.04 3.78 3.37 31 86 76

35463

143024 85276

4 SBI Life


51.25

146.33

115.58 7625

20703

16699


175.40

457.64

231.43

50563

132990

82458

[48]

Group Single Premium

19.01

49.02 41.30 0 0 0 9326

25722 22665

Group Non-Single Premium

356.68

495.68 38.08 5 17 11

220443

441928 83818

5 Tata AIG


13.32 5.72 749 2856 660


62.57

212.24

124.28

45105

146588

102617


12.77 16.87 0 1 0 9711

44019 105601


22.30 7.23 4 21 7

16779

52228 50208

6 HDFC Standard


13.01

33.32 22.41 3436

16369

20110


187.63

428.82

299.30

62141

144161

107148


20.07 9.08 4 36 27

23906

76562 29316

Group Non-Single Premium 1.53 8.18 25.14 1 2 9 470

12641 12811

7 ICICI Prudential


25.37

71.30 77.42 4394

12706

12379


467.75

1166.51

802.19

199147

601624

438453


16.93

76.90 54.43 20 101 52

102476

189471 81187


128.46

275.56

122.41 36 249 146

53608

373560 176552

8 Birla Sunlife

Individual Single Premium 3.54 9.42 7.20 9289

30111

11018


231.83

479.64

143.63

66170

139174

62086



11.13 23.04 21 36 32

24400

38622 26230

9 Aviva

[49]

Individual Single Premium 1.44 4.56 5.10 189 659 753


55.95

155.88

147.02

31653

75887

65539



121376

175178 122107

10Kotak Mahindra Old Mutual



88.31

211.29 96.51

44784

107075

37219

Group Single Premium 4.24 7.09 3.96 1 2 0

15483

33953 28936


36282

148632 103967

11 Max New York


23.20

67.09 46.84 1819 5124 2684


163.97

418.61

240.51

109086

293763

160609


185815

187072 0

Group Non-Single Premium -2.17

10.84 2.39 80 181 116

-1405

001891

20 8994412 Met Life



53.46

175.13 79.34

16394

44348

27596


13466

50223 56769


13 Sahara Life


Individual Non-Single 6.03 14.3 8.07 6274 1617 1354

[50]

Premium 5 5 4



14 Shriram Life


14.63

48.09 18.23 2322 7750 3683

Individual Non-Single Premium 7.68

29.44 22.78 3906

14546

12229



15 Bharti Axa Life



18.15

41.21 5.16

13097

28375 4569



16Future Generali Life

Individual Single Premium 0.01 0.02 3 4

Individual Non-Single Premium 0.40 1.09 1445 3323

Group Single Premium 0.00 0.00 0 0 0 0

Group Non-Single Premium 0.57 1.56 5 12 4213

19208

17 IDBI FORTIS


14.39 913 2118

Individual Non-Single Premium 5.37

11.23 2249 4795


Group Non-Single 0.00 0.00 0 0 0 0

[51]

Premium18 Canara HSBC OBC

Individual Single Premium 0.00 0.00 0 0

Individual Non-Single Premium 0.20 0.20 19 19


Group Non-Single Premium 0.00 0.00 0 0 0 0

Private Total


224.23

633.24

413.74

49514.00

152756.0

09045

9 0 0


2057.82

5086.95

3110.72

988849.0

0

2571663.

001801

574 0 0


59.47

209.97

162.56

39.00

174.00 126

368276

632532 364609


506.10

865.48

243.93

267.00

875.00 536

699643

2359625 912447

19 LIC


1040.80

2139.96

2723.61

279293

519837

744524


1237.75

3135.75

4520.67

1800427

4296967

5540270


1075.14

2248.85

1336.56 1097 2742 4110

1032269

2620798

3895830


Grand Total


1265.03

2773.21

3137.35

328807

672593

834983


3295.57

8222.70

7631.39

2789276

6868630

7341844


1134.62

2458.82

1499.13 1136 2916 4236

1400545

3253330

4260439


506.10

865.48

243.93 267 875 536

699643

2359625 912447

Note: 1.Cumulative premium upto the month is net of cancellations which July occur during the free look period.

[52]

2. Compiled on the basis of data submitted by the Insurance companies

PREMIUM UNDERWRITTEN BY LIFE INSURERS IN INDIA 2006-07

(Rs.In Crores)

Sl.No. InsurerFirst Year Premium

Renewal Premium

Single Premium Total Premium

1 LIC 29886.35 71599.28 26337.22 127822.842 ING Vysya 440.30 239.54 27.36 707.203 HDFC Std.Lif 1316.44 1207.01 332.41 2855.874 Birla Sunlife 832.31 893.98 50.42 1776.715 ICICI Prulife 4370.61 2750.86 791.52 7912.996 Kotak Mahin 553.05 356.58 61.89 971.517 Tata AIG 567.84 722.36 76.98 1367.188 SBI Life 1717.57 364.64 846.27 2928.499 Bajaj Allianz 3084.67 1040.20 1185.12 5310.00

10 Max Newyork 750.51 588.17 161.60 1500.2811 Metlife 329.04 152.27 11.40 492.7112 Reliance Life 700.37 72.55 231.74 1004.6613 Aviva 692.11 425.88 29.23 1147.2314 Sahara 20.47 8.01 22.53 51.0015 Shriram Life 89.53 3.00 92.62 185.1516 Bharti AXA 7.77 - 0.01 7.78

Private Tota 15472.59 8825.06 3921.11 28218.75 Total 45358.93 80424.34 30258.32 156041.59

[53]

Why HDFC is better …?

1. Investment returns: investment returns and business growth provided by

HDFC is validated by bajaj Capital report. HDFC pacify the need of

invertors up to healthy level and make the strong relationship with them.

2. Financial Background and Experience: HDFC existing in the market

since 1977. It has a very handsome experience in the field of finance

because it completely involved in finance Sector only where as the others

are running in many other field also like Reliance (Petroleum, Textile,

Telecom etc.)

3. Ethics and Values: HDFC is an ethical and cultural organization which

prevents the false selling and prohibit the false commitment to the

customer.

4. Sales Force: Properly trend licensed and Educated People are the

strength of the company. So that they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility : It makes the process faster and make the customer

delighted.

7. HDFC Standard Life Insurance is the first private life insurance company

to be granted a license by IRDA

[54]

8. Rated by ‘Businessworld’ as ‘India’s Most Respected Private Life Insurance

Company’ in 2004

9. Has grown over 130% in the last year, with more than 8 lakh policyholders

10. Has one of the widest branch networks with offices in over 100 cities

servicing over 440 towns

Financial Consultant

Who can be the financial consultant?

Section 42(4) of the amended Insurance Act, 1938 states an agent to be

one who is not: A minor.

Found to be sound mind by a court of competition jurisdiction.

Found guilty of criminal background.

Found guilty of having knowingly participated in or connived at any fraud

/dishonesty or misrepresentation against an insured.

Work of financial consultant:

The FC is the interface between the customer and insurance company. l

The agent should be able to accomplish the following service.

Assessing and analyzing the clients risk profile.

Finding the best product or products available in the market.

Negotiating the best deal available.

Continuity of service throughout the period of insurance.

[55]

Role of a Financial Consultant

1. Meet people and present service

2. Understand their financial need

3. Customizes life insurance plans

4. Provide efficient after- sales support

5. Helps customers protect their lifestyle, realize their dreams and enjoy their lives

Opportunity to a Financial Consultant

â Realize their dream.

â Flexible work hours.

â 100% self -decide income.

â Financial Independence to live with self respect.

â Be your Boss.

Business Opportunity to a Financial Consultant

Ensuring peace of mind and quality of life for the millions of people around you.

[56]

Offers to a Financial Consultant

An exciting career that can change your life.

OBJECTIVE

Recruitment of Financial consultant (FCs) of a excellent profile and their

retention strategies and what are their benefit that company going to

provided for retention of their FCs.

(A) What type of people are we looking for ?

1- Committed people who have the drive, determination and ability to

become professional financial consultants.

2- Ability to sell a range of financial products.

(B) What do We Expect from financial Consultant ?

1- Devote a time and energy during training.

2- Sell at least 5 policies each month once after licensed with company.

3- We look forward to a long term mutually beneficial relationship.

(C) Why should financial consultant choose HDFC standard life ?

Brand value and the reputation of the partners (HDFC Limited) Market

leader in housing finance:

15 lakhs home financed.

11 lakhs retail deposits customer base.

[57]

Reputation for providing the higher standards of customer service.

Financial Strength of the partners.

Brand value and the reputation of the partners standard life:

175 years experience in life insurance.

Largest mutual life insurer in Europe.

Product innovation.

Strategies: Strategies Employed to achieve the target are as follows:-

Telecalling

Contacting the person directly (interview)

Collect references.

Some important steps to make effective telecalling:-

Open the call in a friendly and positive way.

State the name, position and company name.

Check the prospect has time to speak.

State the reason for the call.

Clearly succinctly explain how the meeting will be benefiting the prospect.

Achievements:

Recruited eight financial consultants for company.

Increase in confidence level.

Got the knowledge about, how to differentiate our product form that of LIC.

[58]

Made more and more people aware about my companies Products

(Policies)

Taken some appointments for policies and got positive response from 8

persons with the help of my BDM.

Limitations:-

So though the study aim to achieve the above mentioned Objective in full

earnest and accuracy, it may be hampered due to certain limitation. Some

of the limitations are as follows:

To cover the various section for the society.

Respondents may not be at home and may have to re-contacted or

replaced by others.

Getting accurate response form the respondents due to their inherent

problem is difficult.

Limited response from client.

There is a time limitation it is not possible to study whole thing I

covered some special aspect as well as some topics.

[59]

RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain knowledge. A

research is carried out by different methodology, which has their own pros

and cons.

Research methodology is a way to solve research problem along with the

logic behind them. Thus when we talk of the research methodology we not

only take of research method but also context of our research study and

explain why we are using a particular method or techniques and why we

are not using other so that research result are capable of being evaluated

either by the researchers himself or by others.

Research methodology means the method carried out to study the problem

. It shows the type of the sample design used, its size and the procedure

used to dew sample. The extent of precision achieved and the method

used for handling any special problem during the course of the study.

Research methodology has following steps:

[60]

Step: 1 To decide the objective of the study.

Step: 2 To design research design.

Step: 3 To determine the source of data.

Step: 4 To design data collection form.

Step: 5 To determine sample size and sample design.

Step: 6 To organize and conduct fieldwork.

Step: 7 To process and analyze the collected data.

Step: 8 To prepare the research report.

Explanation

Step: 1 To decide the objective of the study to be carried out.

To study about HDFC Standard life.

To find the prospective financial consultant for thee

company.

To find retention strategies which provide to financial

consultant.

Step: 2 To decided the research design.

What is research design ?

Research design is a plan, structure, strategy of

investigation conceived so as to obtain answer to research question and

control variance. There are three types of research design system.

Explanatory Research.

Descriptive Research

Casual Research.

[61]

Among the above mentioned types descriptive research design has been

chosen. Descriptive research is to find ad efficient sales force, of FC. In

order the study the characteristics and variables, cross sectional analysis

was conducted by using field survey method . In the process of field

survey, a questionnaire was developed and circulated to the respondents,

which formed the basis for entire research.

Step: 3 To determine the source of data.

Data source are the data resources or collection of fresh and

data to obtain results. There are two types of data sources: thus happen to

be original in character.

Primary Data: Primary data is that which is collected fresh and thus

happen to be original in character.

Secondary data: Secondary data is any data, which have been

gathered earlier for some other purpose.

Among the above mentioned types of data was used for the study and

analysis of the objective of this project, Also the secondary to data proved

to be helping hand in framing up the industry scenario and also the relevant

topics in the entire project report.

[62]

Reason for selecting primary data:

In terms of primary data structure questionnaire was prepared to interview

the professional, unemployed students, housewives, investment consultant,

post office agent and other in Bilaspur location. Analysis clearly reflected

the views and preference regarding the perception of the people towards

joining HDFC standard life.

Step 4: To design data collection.

There are two types of mode to collect the data:-

Observation method.

Survey method.

As for as the data collection method for this project is concerned, designing

the data collection forms or survey forms is applicable to the project. The

method selected survey method.

A survey can be conducted by:-

Personal interview.

Telephonic interview.

Amongst the above method personal interview method was conducted to

gather information in detail . this method was chosen because along with

the study of projects primary objective i.e. study of people and convince

them to join as FC for HDFC standard life.

Step 5 To determine sample design sample size.

[63]

Sample size specification

155 which include professionals, unemployed student, Housewives,

investment consultant, post office agent.

FIELD METHODOLOGY

The methodology adopted in the field to collect the data represented

diagrammatically below:

[64]

Segmentation of People

Meeting with People

Filling up questionnaire and Schedule

TABULATION AND ANALYSIS

In order to determine the willingness of the people to become FC for HDFC

SLIC in Bilaspur, data collected by surveying is treated as analysis.

Response to the parameter like professional, unemployed students,

housewives, investment consultant, post office agent.

Willingness to be FC for HDFC

Yes No Total

Professional 2 28 30

Working employees 2 33 35

House wives 2 18 20

Students 3 22 25

Investment

consultants

2 18 20

Post office agents 3 12 15

Others - - 10

Total 14 131 155

[65]

[66]

[67]

[68]

FINDINGS

1- Customers are less aware about the private insurance company in

market.

2- Some customer are like to join HDFC as FCs because it is a Part-

time.

3- Many professions like CA, tax planner want a corporate age3ncy

rather than to be a financial consultant.

4- HDFC is too selective in making a FC rather than to appoint any one

like LIC.

[69]

5- Customer don’t want to join as financial consultant because it’s on

commission basis the4y want job on salary basis.

6- Educated customers are now vending towards private insurance

Companies, due to the attractive packages and services provided by

various new insurance companies.

7- LIC has created a branded image in 3-4 decades, due to which new

insurance companies are facing trouble in capturing market share.

8- If the customers are joining HDFC the segment is more of tax

consultant, investment for consultant and other people who are

engaged in investment business that is because they want to

diversify their portfolio.

9- HDFC SLIC is having good retention strategies for their financial

consultant.

Reason for not joining HDFC SLIC.

Associated with an other company.

Do not have time

Low sales.

Private Player.

Lack of awareness.

[70]

CONCLUSION

After collection of data interpretation is done on that basis conclusion is

drawn. The conclusion drawn.

Conclusion prefer government insurance company other than private

insurance companies due to its reliability.

Customers are more brand oriented rather than product oriented.

Customers are less aware about the private insurance companies.

Private Players in order to encase maximum number of customers are

introducing new and innovative scheme for their FC.

[71]

Customers like to invest in other investment zones due to the hectic rules

and regulations associated with, entering into a contract with insurance

companies.

Customers do not feel secure with private insurance companies.

Customers don’t want commission base job.

The central problem with the insurance companies is having that they are

trying to convince customers for a product which do not have any present

relevance, i.e. each policy which the customer is going to purchase will

have a future set of action and benefits. Due to which most of the people

like to invest in those securities or investment, which will give them a fruitful

return in short period of time ?

Life insurance Corporation has completed more than three

decades and that’s where counts, inters of brand name, different number of

policies for differed class and age group of customers.

The Private players are on the way, but they need a lot of time investment

for creating a favorable brand image.

SUGGESTIONS

Customers should be made aware of the brand name of Insurance

company through advertisement.

The fear in the customer mind should be removed by company.

[72]

The insurance companies should try to nurture their brand name

timely and attractive facility provide to customer.

BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS

FOLLOWS:

Financial consultant, the right way to start career:

As a financial consultant the role will be to identify prospective customer.

You will makes presentation, as to how you can help analyses their

financial needs, provide customize financial solution to cater to their

[73]

respective needs and conduct reviews on regular basis to keep customers

on thank.

Easy way to start on career:

Zero investment: There is no start-up capital. Be an own boss with a

flexible working environment, unlimited earning potential and the

opportunity to be part of world class sales team.

Flexible work timings, part time or full time: FCs can work

whenever he likes and from whereeve4r he like, FCs can work full time

depending on their convenience its like no other job however, the time.

Sunrise industry: Life insurance in India has a huge potential for

growth Statistics reveal that only 25% of the insurable population in India is

insured and those insured are in need of still higher insurance cover. The

over 100% growth displayed by private life insurers indicates this hu7ge

untapped potential.

Strong Partnership:

A powerful brand – HDFC Standard Life Insurance:

We were the first private life insurance company to be granted a license by

IRDA.

We have been rated by business world magazine. As Indies most

respected private life insurance company 2004.

[74]

We have grown over 130% in the last and more than 8 Lakhs policy holder.

HDFC standard life insurance has one of the highest brand recall of around

80%

PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:

At HDFC standard training is an inherent element of our support system for

FCs. Some of our training and support initiative are as:

IRDA Training: Online training of 100 hrs. prepares for career as FCs and

enables to pass the IRDA examination. After the IRDA license, first step

towards a successful career as a FC.

Basic Training and Induction: Independence of work experience, this

training will give perfect knowledge about the insurance industry along with

comprehensive knowledge about the insurance along with comprehensive

knowledge abut HDFC SLIC Product.

Disha training: This is a professional sales skill program eased by us to

one selling skills. Those program enable to understand customer need and

provide need based insurance solution.. A huge step from an amateur to a

true finance professional.

Advance Training: Once Fc have settled down as a FC professional we

will continuously upgrade capability and knowledge through sophisticated

training program, fit for this dynamic world of financial products and

markets.

[75]

UNMATCHED SUPPORT:

Marketing activity support to make task easier.

Advertising and communication support throughout the year.

Customer friendly broachers and sales aid to help in selling insurance

solutions to customers.

24- hours information support, to help track the performance and

income.

QUESIONNARIRES:

Dear Respondent,

I am an MBA student doing a “HDFC standard life insurance

company”. I am carrying a study on “prospecting, Identifying, and

Recruiting certified financial consultant for HDFC SLIC-A ” study in Nerul,

Belapur, and Vashi City” in this regard I will like to spare some time to

[76]

answer few adjustment, This study is conducted for just academic purpose

having no commercial relevance.

Information provided by you will be confidential.

…………..

QUESTIONNAIRE

Q.1: Do you know about HDFC SLIC ?

Ans: (a) Yes (b) No

Q.2: Do you know about the working of financial Consultant of “HDFC

SLIC” ?

Ans: (a) Yes (b) No (c) Insufficient Information.

Q.3 Do you currently have an agency of any life insurance Company ?

[77]

Ans: (a) Yes (b) No

Q.4 What would be the size of your social contact base who knows you

on first name basis ?

(E.g : Friendly, family, relative, colleagues if any ………etc.)

Ans: Mention in appropriate nos.

Q.5 How many members of your family are dependent on the income

earner of the family ?

Q.6 Do you have an idea about financial market ?

Ans: (a) Yes (b) No

Q. 7 Do you have any sales experience ? If yes, how many years ?

Ans: (a) Yes (b) No

Q.8 Do you have experience in selling financial product ? e.g. credit card,

insurance etc ? If yes how many years ? (If yes to question 6)

Ans: (a) Yes ( ) (b) No ( )

Q. 9 What do you think ? in today’s scenario life insurance Is NEED,

WANT AND DEMAND ?

Ans:

Q.10 In which of the financial market you have invested your money ?

Ans: (a) Share (b) Mutual fund (c) Insurance.

Q. 11 Are you interested in getting the opportunity of earning some

additional income as being financial consultant of “HDFC SLIC” and

why ?

Ans: (a) Yes (b) No

[78]

Your

Signature.

ABBREVIATIONS

1- HDFC- Housing Development Finance Corporation.

[79]

2- SLIC- Standard Life Insurance Company.

3- FC- Financial Consultant.

4- SDM- Sales Development Manager.

5- BDM- Business Development Manager.

6- CFC- Certified Financial Consultant.

7- LA- Life Assured.

8- SA- Sum Assured.

9- TERM- No. of Years.

10- ADB- Accidental Death Benefit.

11- CI- Critical Illness.

BIBLIOGRAPHY

Reference: To obtain more information regarding present study

and to subordinate it with theoretical proof following references

were made.

[80]

Books Referred:

Personal management.

Book of license training programmer for

insurance advisers.

[81]

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