Date post: | 08-Apr-2018 |
Category: |
Documents |
Upload: | dheerajpagal |
View: | 217 times |
Download: | 0 times |
of 103
8/7/2019 Hdfc Selling Policy
1/103
ON
To Recruit Financial Consultants And To Sell Insurance
Policies of HDFC SLIC.
HDFC STANDARD LIFE
Sar uttha ke jio
Submitted in the partial fulfillment of the requirement of
the award of Master of Business Administration (2008-09).
RKGIT
RAJ KUMAR GOEL INSTITUTE OF TECHNOLOGY, GHAZIABAD
Uttar Pradesh Technical University, Lucknow.
SUBMITTED TO:- SUBMITTED BY:-Dr. ARVIND SINGH MADAN MOHAN BAJPAI
MBAIIISem
(Principal of managmnt deptt.) ROLL NO:-0703370047
8/7/2019 Hdfc Selling Policy
2/103
TABLE OF
CONTENTS
2
8/7/2019 Hdfc Selling Policy
3/103
. Acknowledgment Page no.1
.Preface - 2
.Executive summary - 3
.Company overview - 4
.Swat analysis - 6
.Research methodology - 14
.Products - 29
.Target/Task Set - 52
.Strategy Adopted - 56
.Achievements and learning - 61
. Awards/Rewards received - 65
.Analysis of performance v/s Targets - 66
.Market segmentation - 67
.Market feedback - 70
.Recommendation - 71
Conclusion - 74
17). Bibliography - 81
3
8/7/2019 Hdfc Selling Policy
4/103
Acknowledgement
4
8/7/2019 Hdfc Selling Policy
5/103
Co-ordination, Co-operation and Command of the people at
various levels go into the successful accomplishment of any task
assigned to me. It is impossible to thank each of them individually but
hereby I make a sincere effort to thank some of them.
Nothing in this world can be achieved without the help and
blessing of almighty god. The first boss is the guide to the experience,
which is the first step towards ones success or failure.
I couldnt have better supervisor for the launching pad of
my career. I am deeply indebted to Ms. SWETA SINGH (Unit Manager),
Mr. ABHINAV TYAGI (Channel development Manager) for providing
me with an opportunity to do my Summer Project in HDFC STANDERLIFE.
MY special thanks go to Mr. VISHAL SHRIVASTAV who
has molded me to handle such critical project. I am deeply indebted
for his guidance.
I am grateful to Mr.K.M.UPADHYAYA for giving me the
opportunity to do this project.
Irrespective of all other benefits, it was the unconditional
support and aid of my family, who enabled me to achieve to fullest
extent of my endeavor. It would be unfair of me if I do not thank the
staffs of the HDFC STANDER LIFE of BHEEKHA.JI KAMA,DELHI branch
for creating a congenial atmosphere for my work.
5
8/7/2019 Hdfc Selling Policy
6/103
Preface
6
8/7/2019 Hdfc Selling Policy
7/103
I am the student of MASTER BUSINESS ADMINISTRATION at RAJ
KUMAR GOEL INSTITUTE OF TECHNOLOGY. GHAZIABAD belonging to
2008-2009 Batch. The submission of this project report is the part of
the curriculum of the M.B.A course. Through this project report, I
would like to share our on job experience with HDFC stander life in the
insurance field. The insurance sector in India has come to a full circle
from being an open competitive market to nationalization and back to
a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360-degree turn witnessed over a period
of almost two centuries. The business of life insurance in India in its
existing form started in India in the year 1818 with the establishment
of the Oriental Life Insurance Company in Calcutta.
During the training period I met a lot of people and learnt a lot. There
were instances when I thought what the hell I am doing in this
company but then i thought everybody is doing the same thing some
way or the other and therefore, i decide to sick with the company.
i played my part with complete honesty and now only the result is
awaited in the time to come.
7
8/7/2019 Hdfc Selling Policy
8/103
Executive
Summary
The Indian Insurance Industry is broadly segmented into public and
private insurance companies. Before year 2000, only public sector
insurance companies were allowed to do business in India. But after
8
8/7/2019 Hdfc Selling Policy
9/103
year 2000, insurance sector was thrown open for private insurance
companies as well.
HDFC Bank was incorporated in august 1994 in the name of HDFC
Bank limited, with its registered office in Mumbai, India. The bank
commenced operations as a scheduled commercial bank in January in
1995.
But as of now there now around 15 private life insurance companies
and around 10 private non-life insurance companies doing business in
India.
The objective of the project was to survey the market and convince
the most suitable person from different segments for working as
advisor in HDFC Stander life. Beside this the report is prepared withan aim to provide an overvie
w of present Indian Insurance Industry. Also with LIC, heading the
public life insurance companies and HDFC Stander life heading the
private life insurance players, this report also provides a brief of
products provided by HDFC Stander life and its selling.
9
8/7/2019 Hdfc Selling Policy
10/103
COMPANY
OVERVIEW
COMPANY PROFILE: -
HDFC Standard Life Insurance Co. Ltd. is a joint venture
between HDFC Ltd., India's largest housing finance institution and
Standard Life Insurance Company, Europe's largest mutual life
company. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October 2000.
10
8/7/2019 Hdfc Selling Policy
11/103
Standard Life, UK was founded in 1825 and has experience of over 180
years. The company is rated as "very strong" by Standard & Poor's
(AA) and "excellent" by Moody's (Aa2).
HDFC Standard Life Insurance is a new Indian life insurance company
that operates out of 52 locations. It offers clients a range of insurance
plans to meet their savings, investment and protection needs. In the
financial year 2002-03, the company registered a year-on-year growth
of over 260%. It is also the first new life insurance company to declare
its third successive bonus for participating policy holders.
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th
august 2000. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.) India and UK based Standard
Life Company. Both the joint venture partners being one of the leaders
in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has
given the company new directions and has helped the company
achieve the status it currently enjoys.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh
lives by March'2007. The gross incomes standing at a whopping Rs. 2,
856 crores, HDFC Standard Life Insurance Corporation is sure to
become one of the leaders and the first preference for any life
insurance customer.
11
8/7/2019 Hdfc Selling Policy
12/103
The Bank assurance partners of HDFC Standard Life Insurance
Co Ltd are:-
12
http://www.unionbankofindia.com/http://www.hdfcbank.com/http://www.hdfc.com/8/7/2019 Hdfc Selling Policy
13/103
13
http://www.bankofbaroda.com/http://www.bajajcapital.com/http://www.saraswatbank.in/http://www.indian-bank.com/8/7/2019 Hdfc Selling Policy
14/103
SWOT ANALYSIS
SWOT ANALYSIS OF HDFC SLIC LTD.: -
STRENGTHS: -
1. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October
2000.
2. The company has covered over 15,27,000 lives year
ending March 31, 2008.
3. June, 2007 Received PC Quest Best IT Implementation
Award 2007.
14
8/7/2019 Hdfc Selling Policy
15/103
4. January 2007 HDFC SLIC Ranked 29th Most Trusted Indian
Brand.
5. February, 2008 Deepak M Satwalekar Awarded QIMPRO
Gold Standard Award 2007.
6. HDFC has always been market-oriented and dynamic with
respect to resource mobilization as well as its lending
programmed. This renders it more than capable to meet
the new challenges that have emerged.
7. HDFC SLIC is the first new life insurance company to
declare its third successive bonus for participating policy
holders.
8. Company has an annual turnover of Rs. 3, 865 crores.
9. HDFC SLIC Ltd has a network of 118 officesRated by
'Business world' as 'India's Most Respected Private Life Insurance
Company' in 2004.
10. Rated as the "Best New Insurer - 2003" by Outlook Money
magazine, Indias number 1 personal finance magazine.
11. Company has strong values and beliefs.
WEAKNESSES: -
1. Company is not dealing in Health insurance Plans.
15
8/7/2019 Hdfc Selling Policy
16/103
2. Their allocation charges are greater in comparison of
competitors.
3. Premium payment modes are less in comparison of
competitors.
4. Minimum Lock in period is 5-years where in other
companies its 3-years.
OPPORTUNITIES: -
1. Awareness in the minds of customers towards the
importance of Insurance is also providing opportunity for
the company to grow.
2. Company has a lot of customers for different divisions of
business.
3. Extra earning options of company are very helpful for
providing opportunity to build a strong network for the
company to grow.
THREATS: -
16
8/7/2019 Hdfc Selling Policy
17/103
Life Insurance Corporation of India
ICICI Prudential Life Insurance
SBI Life Insurance
ING Vysya Life Insurance
Met Life India Life Insurance
Shriram Life Insurance
Birla Sun Life
Bajaj Allianz Life Insurance
Max New York Life Insurance
Aviva Life Insurance
Bharti AXA Life Insurance Company Limited
Kotak Mahindra Life Insurance
TATA AIG Life Insurance
Reliance Life Insurance Company Limited(formerly known as AMP
Samar LIC)
17
8/7/2019 Hdfc Selling Policy
18/103
Market Share (%)
34%
24%
10%
14%
6%
6%6%
ICICI Prudential
Bajaj Allianz
HDFC Standard
SBI Life*
Birla Sun Life
Reliance LifeInsurance
Max New York
18
8/7/2019 Hdfc Selling Policy
19/103
INTERPRETATION:-
Among the whole insurance sector ICICI Prudential has 34% market share,Bajaj Allianz
has24% mrket share,HDFC has 10%,SBI has 14%,Birla Sun Life has 6%
Reliance Life Insurance has 6% and Max New York also has 6% market share.
THE RANKING OF INSURANCE COMPANY
The Rankings
4545484849525559
MAX NEW YORK
ING VYSA
BAJAJ ALLIANZ
AVIVA LIFE
TATA AIG
HDFC
ICICI-PRU
LIC
CSI Score
Series1
INTERPRETATION:-19
8/7/2019 Hdfc Selling Policy
20/103
LIC on 1st rank, ICICI Prudential on 2nd ,HDFC on 3rd ,TATA AIG on 4th AVIVA LIFE
on 5th ,BAJAJ ALLIANZ on 6th ,ING VYSA on 7th and MAX NEW YORK on 8th rank
according to their SCI Score 59,55,52,49,48,48,45and 45 respectively.
LOYALTY SEGMENTATION
LOYALTY SEGMENTATION
0 20 40 60 80 100 120
Industry Avg
Max New York
ING vysya
TATA AIG
Bajaj Allianz
Aviva Life
HDFC Standard Life
ICICI Prudential
LIC
High risk Trapped Accessible true loyals
20
8/7/2019 Hdfc Selling Policy
21/103
PERFORMANCE MEASURES
LIC ICICI
Prudential
Bajaj
Allianz
TATA
AIG
HDFC
Standard
LifeAppl.approval
process
65 67 61 57 60
Medical exam
process
33 48 52 61 57
Insurance
policies
60 61 58 60 66
Advertising
promotion
53 57 49 53 58
Comm.on new
policies &schems
47 49 43 52 50
Post purchase
exp.
52 65 58 53 60
Ins.agent/advisor 57 64 59 60 60
Call
center/helpline
67 60 69 75 62
Incorporated in 1977 with a share capital of Rs. 10crores .HDFC has
since emerged as the largest residential mortgage finance institute on
21
8/7/2019 Hdfc Selling Policy
22/103
in the country. The net worth of the corporation is Rs.28000 crores,
HDFGFC manages asset. Standard life is Europes largest mutual life
insurance company and specializes in a wise range of other services
like health care, pension and annuities market with aglobal presence.
The company has assets at US $ 119 billion.
TRAINING ACTIVITIES FOR
AGENTS/ADVISORS
As per IRDA guidelines 50 hrs training is compulsory
Both online and classroom training are available.
Training is compulsory with both part time and full time options.
A clear exam is conducted by IRDA, the minimum qualification
required is
12th pass for urban areas
10th pass for rural areas
TRAINING CENTRES
NIS:patel nagar,south extension(Delhi)
School net
COMMISSION STRUCTURES
Depends on the products, like on savings
20-40% IST year premium
On investment 2%
22
8/7/2019 Hdfc Selling Policy
23/103
8/7/2019 Hdfc Selling Policy
24/103
3. Provides fast services to the customers in terms of claim.
4. Best insurer according to outlook.
5. Well supported by foreign partner standard life, UK which was
recently voted company of the decade in UK by the Independent
brokers called IFAs.
24
8/7/2019 Hdfc Selling Policy
25/103
PRODUCT
PROFILE
SAVING PLANS
CHILDREN PLAN
Children plan is designed to provide a lump sum to the child to
25
8/7/2019 Hdfc Selling Policy
26/103
maturity. It also provides financial security to the child in the future;
even in case of insured parents unfortunate death during the policy
term. Childrens plan receives simple reversionary bonuses, which are
usually added annually. This is a flexible plan with three options for
you to choose from depending on your needs.
TAX BENEFITS
The premiums you pay will be eligible under section 88 of the income
tax act ,1961.the benefits received under the policy are eligible for tax
relief under section 100(10D) of the income tax act, 1961.
PAYMENT OPTIONS
You have the choice of paying the premium either in yearly,
half yearly or quarterly modes, depending on your
convenience.
MONEY BACK PLAN
It is participating (with profits) insurance plan that offers the following
features:
Payment of cash lump sums each of which is a proportion of the basic
sum assured, at 5 year intervals during the term policy.
On survival up to maturity, a payment equal to the basic sum assured
plus any bonus additional less the cash lump sums paid either is
provided.
In case of the unfortunate death of the assured within the term of the
policy, the basic sum assured plus any bonus additions are provided.
This is over and the earlier payouts.
26
8/7/2019 Hdfc Selling Policy
27/103
OTHER BENEFITS
You can add the following optional benefits to customize your policy to
suit your needs:
.Critical illness benefits provides an amount, equal to the sum
assured chosen under this optional benefit, a diagnosis of any
assured one of the 6 common critical illness.
.The sum is payable if you survive for 30 days after the date of
claim.
. One such a claim has been met, no further critical illness benefit
payable. However, your basic policy continues even after we pay a
claim on this benefit.
Additional term benefit provides an additional amount, equal to
the sum assured chosen under this optional benefit, in case of
your unfortunate death.
Accidental death benefit provides an additional benefit, in case of
your unfortunate death:
-due to an accident, and
-within 90 days of the accident.
Waiver of premium benefit waives the premium for you in case
you become totally disabled. The waiver is applicable during the
period of total disability.
27
8/7/2019 Hdfc Selling Policy
28/103
TAX BENEFITS
Tax benefits described in section 88, section 80D and section
10 (10D) of the income tax act.
PAYMENT OPTIONS
You have the choice of paying your premium either in yearly,
half yearly or quarterly modes, depending on your
convenience.
ENDOWMENT ASSURANCE PLAN
It is participating insurance plan that offers the followingfeatures:
28
8/7/2019 Hdfc Selling Policy
29/103
.Provides financial support to the family by way of a lump sum
payment in case of the unfortunate death of the life assured within the
term of the policy.
Provides a lump sum payment to the life assured on survival up to
maturity. The lump sum mentioned is the basic sum assured plus any
bonus.
OTHER BENEFITS
You can add the following optional benefits to customize your
Policy to suit your needs:
Critical illness benefits provides an amount, equal to the
Sum assured chosen under this optional benefit, a diagnosis of
any one of the 6 common critical illness. The sum assured
is payable if you survive for 30 days after the date of claim.
One such a claim has been met, no further critical illness
benefit payable.however, your basic policy continues even
after we pay a claim on this benefit.
Additional term benefit provides an additional amount,
equal to the sum assured chosen under this optional benefit,
in case of your unfortunate death.
29
8/7/2019 Hdfc Selling Policy
30/103
Accidental death benefit provides an additional
benefit, in case of your unfortunate death:
-due to an accident, and
-within 90 days of the accident.
Waiver of premium benefit waives the premium for you in case
you become totally disabled. The waiver is applicable during the
period of total disability.
TAX BENEFITS
Tax benefits described in section 88, section 80D and section
10 (10D) of the income tax act.
PAYMENT OPTIONS
You have the choice of paying your premium either in yearly,
half yearly or quarterly modes, depending on your
convenience.
PENSION PLAN
The policy is basically a saving contract, which is
designed to provide an income for life from retirement, with
an option to take the lump sum elsewhere to buy the
30
8/7/2019 Hdfc Selling Policy
31/103
annuity, provide it is permitted by the prevailing regulations.
Your commitment .you agree to pay a single premium or
level premiums with installments due every quarter, half year
or year throughout the deferment period of the policy, after
which you will start receiving your pension.
Plan is basically a savings contract, which is designed to provide an
income for life from retirement. It does this by-
accumulating a national lump sum on retirement,
comprising of sum assured plus any attaching bonus.
MODE OF PREMIUM
You can pay either a single premium or pay premiums is
quarterly, half yearly or annual form by cheques, in cash or by
bank drafts.
INVESTMENT PLANS
SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN
Single premium whole of life insurance plan is well suited to meet your
long term investment needs. This participating plan offers you the
following benefits:
31
8/7/2019 Hdfc Selling Policy
32/103
.A sound investment: your money will be invested in our with profits
fund. The fund aims to provide secure and stable longterm growth,
normally; we will declare a compoundreversionary bonus for your
policy every and add it to your policy on its anniversary. In addition,
on death, surrender or on guaranteed dates a terminal bonus might be
payable .you pay a single premium and the policy will pay you a lump
sum.
.flexibility of term: even after choosing your policy, you can decide on
the policy term.
TAX BENEFITS
Tax benefits under section 88 of the income tax act are
applicable on premiums up to 20% of the sum assured.
PAYMENT OPTIONS
A single premium can be paid by cash, cheques or demand
draft.
UNIT LINKED PENSION PLAN
The unit linked pension plan is basically an insurance contract,
which is designed to provide income for life.
Your premiums are invested in units of the investment fund of your
choice, based on the prevailing unit price. On vesting,
32
8/7/2019 Hdfc Selling Policy
33/103
the value of your units will be used to buy your retirement
benefits.
On earlier death, the beneficiary receives the value of your
units plus a cash lump sum of Rs. 10000 each year and fore
single premium it is Rs.25000.to facilitate increased investment,
we allow additional single premiums.
VARIOUS INVESTMENT FUNDS
This policy is fully unitized with a range of funds to match your needs
and approach to risk. Each investment fund is composed of units. All
the units in a fund are identical. You can choose from the following
funds.
1.LIQUID FUND
The liquid fund invests 100% in bank deposits and high quality
short term money market instruments. The fund is designed to
be cash secure and has a very low level of risk. However, unit
prices may occasionally go down due to the use of short term
money market instruments.
33
http://rs.25000.to/http://rs.25000.to/8/7/2019 Hdfc Selling Policy
34/103
2. SECURE MANAGED
The secure managed fund invests 100% in government
securities and bonds issued by companies or other bodies with a
high credit standing. However, a small amount of working capital
may be invested in cash to facilitate the day to day running of
the fund. This fund has a low level of risk but unit prices may go
up or down.
3.DEFENSIVE MANAGED
15 to 30 % of the defensive managed fund will be invested in
high quality Indian equities. The remainder will be invested in
government securities and bonds issued by Companies or other
bodies with high cash credit standing.
In addition, a small amount of working capital may be invested
in cash to facilitate the day to day running of the fund .the fund
has a moderate level or risk with the opportunity to earn higher
returns in the long term from some equity investment. Unit
prices may go down or up.
4.BALANCED MANAGED
30 to 60%of the defensive managed fund will be invested in high
quality Indian equities .the remainder will be invested in
government securities and bonds issued by companies or other
bodies with high cash credit standing. In addition .a small
amount of working capital may be invested in cash to facilitate
the day to day running of the fund.
34
8/7/2019 Hdfc Selling Policy
35/103
BENEFITS
At the chosen vesting date, the unitized fund value will be available to
secure pension benefits. Subject to the prevailing regulations, part of
this value can be taken in the form of cash lump sum and the rest
converted to an annuity at the rate then offered by HDFC standard life.
Alternatively, if it is permitted by the prevailing regulations, the
proceeds net of any cash lump sum can be used to buy an annuity
with any other insurance company who will accept such business.
The current maximum limit for any cash lump sum is one third of the
unitized fund value on vesting .on death, the unitized fund value will
be paid along with a cash lump sum of Rs.1000.
The beneficiary may use the proceeds to purchase pension benefits
may use the proceeds to purchase pension benefits for the surviving
spouse. Your basic benefits will be paid by chequ
HDFC Standard Life brings to you a whole range of insurance solutions
be it group or individual or NAVservices company that operates out of
52 locations. It offers clients a range of insurance plans to meet their
savings, investment and protection needs. In the financial year 2002-
03, the company registered a year-on-year growth of over 260%. Itis
also the first new life insurance company to declare its third successive
bonus for participating policy holders.
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th
35
8/7/2019 Hdfc Selling Policy
36/103
august 2000. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.) India and UK based Standard
Life Company. Both the joint venture partners being one of the leaders
in their respective areas came together in this 81.4:18.6 joint venture
to form HDFC Standard Life Insurance Company Limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has
given the company new directions and has helped the company
achieve the status it currently enjoys.
HDFC Standard Life brings to you a whole range of insurance solutions
be it group or individual or NAV services for corporations; they can be
easily customized as per specific needs.
ALTERATIONS IN THE LEVEL OF PREMIUM
Regular premiums can be increased at any time .if needed,
the policy holder can reduce the regular premium levels
(even to zero, the policy is converted to paid up status)
provided 3 year of regular premiums have been paid .The
monetary value of the unit holding across all funds is at least
Rs.15000.in addition, you can pay single premium to ups at
any point of time.
SURRENDING THE POLICY
The policy holder can surrender the policy at any point of time
36
http://rs.15000.in/http://rs.15000.in/8/7/2019 Hdfc Selling Policy
37/103
during the contract term for regular premium paying policies.
For single premium contracts, the contract needs to remain in
force for a minimum period of six months before you can
surrender. The amount payable will be the unitized fund value
after applying additional surrender charges.
STOPPING PAYMENT OF REGULAR PREMIUM
This product has a grace period of 15 days for the payment of
each premium after the initial premium. If you stop paying
premiums, before you have paid 3 years of annual premiums,
we will cancel your policy and return to you the value of your
unitized fund, less cancellation charges. If after three years
you are unable to pay the premiums, you have the option to
make the policy paid up, provided the policy has
accumulated sufficient policy value .currently this amount will
be Rs.15000.if you make your policy paid up you will continue
to be protected according to the benefits you selected. To
provide this cover; we will continue to collect our usual
charges on each monthly charge date. It is important to note
that if no further premiums are paid, this may reduce the value
37
8/7/2019 Hdfc Selling Policy
38/103
of your fund over time, or even exhaust it completely. A paid
up policy can be reinstated to premium paying status at any
point of time in the future. If the fund value of a paid up policy
and return to you the fund value, less cancellation charge.
TAX BENEFITS
Premiums paid under this plan are eligible for tax benefits
under section 80 CC of the income tax act, 1961.
UNITLINKED ENDOWMENT PLAN
The unit linked endowment plan is an insurance policy that is
designed to pay a lump sum maturity or on earlier death. The
unit linked endowment plan also gives the option of additional
protection against the six common critical illnesses, as well as
additional protection if death is as the result of an accident.
Your premiums are invested in units of the in units of the
investment fund of your choice, based on the prevailing unit
price. On maturity you receive the value of your units. On
death or critical illness if chosen, you receive the greater of
the value of your units and your selected basic sum assured.
The premiums and various investment funds are the same as in
38
8/7/2019 Hdfc Selling Policy
39/103
unit linked pension plan
BENEFITS
There are four different options to choose from:
1. LIFE OPTION
On death within the policy term, the greater of the sum
assured and the value of the unit linked fund will be paid
to your nominee. On survival to the end of the policy
term, the value of the unit linked fund will be paid to you.
2. LIFE AND HEALTH OPTION
On death or earlier diagnosis of any one of six common
critical illness covered within the policy term, the
greater of the sum assured and the value of the unit
linked fund will be paid to your nominee. On survival to
the end of the policy term, the value of the unit linked
fund will be paid to you. The illness covered under this
option is cancer, coronary artery bypass graft surgery,
heart attack, kidney failure, major organ transplant and
stroke.
39
8/7/2019 Hdfc Selling Policy
40/103
3. EXTRA LIFE OPTION
This option pays the same as the life option but should
death occur within the policy term as the result of an
accident, an extra benefit equal to the sum assured will
be paid
4. EXTRA LIFE AND HEALTH OPTION
This option pays the same benefit as the life and health
option but should death occur within the policy term as
the result of an accident, an extra benefit equal to the
sum assured will be paid.
TAX BENEFITS
Tax benefits under section 88 and section 10 (10D) of the
income tax act are applicable.
SOME MORE ABOUT ULIPS
Unit linked policies are life insurance policies characterized by
their high financial content. They are a logical combination of
an investment fund and a life insurance policy. They are
different from traditional policies because they allow the
customer to define the underlying type of investment by
choosing from a vast range of asset classes differentiated by
40
8/7/2019 Hdfc Selling Policy
41/103
the type of investment. This could range from the conservative
to the aggressive depending up on each individuals risk
appetite. The investment can also be modified over time .unit
linked business has its roots in unit trusts which were introduced
in the UK apparently in the year 1957 and its investments were
linked to an external unit trust. There are different types unit
linked life insurance contract that can be designed starting
from endowment, money back, whole of life policy, deferred
annuity scheme and the managed pension fund .the
available products are characterized by their transparency,
yield, convenience, flexibility and price/performance
equilibrium. I would try to dwell up on this last product more
and try to highlight the challenges and opportunities available
for an insurance company in the Indian context. The two most
popular schemes among the corporate in the pension fund
categories are the group gratuity and group super annuation scheme.
GROUP GRATUITY
Under the payment of gratuity act 1972 most employers with
more than 10 employees must provided minimum level of
41
8/7/2019 Hdfc Selling Policy
42/103
lump sum gratuity benefit to staff when they leave service. The
amount of benefit is defined in terms of service and salary.
Employers often pre fund the liability to pay gratuity by setting
up a separate fund under the trust.Pre funded arrangements
enjoy special tax privileges. Employers are obliged under the
payment of gratuity act 1972 to provide for the payment of
gratuity to their eligible employees. The act applies to most
companies which employ 10 or more employees. The board
terms of the benefit are:
Section 4(1) states that a gratuity shall be payable to an
employee on termination of his employment.
On his super annuation ,provided five years or more of
continuous service has been completed, or
On his retirement or resignation, provided five years or
more of continuous service has been completed, or
On his death or disablement due to accident or
disease (payable irrespective of length of service).
GROUP SUPERANNUATION
42
8/7/2019 Hdfc Selling Policy
43/103
The group superannuation scheme allows an employer /trust
to build up retirement funds for the members of the scheme.
This scheme is usually provided to a particular class of
employees of the company. A separate fund exists for each
individual and the contribution in respect of each individual is
applied to their own fund. The amount of the fund is equal to
the contribution plus investment returns less expense.
Investment returns are applied to the fund using the unit linked
method. At retirement the accumulated fund is then used to
buy an annuity for the member to provide an income in
retirement (plus a tax free lump sum payment).the super
annuation scheme can either defined contribution plan or a
defined benefit plan, it is increasingly popular to have a
defined contribution plan rather than a defined benefit plan.
The important decision point that needs to be made at the
time developing the product is as follows:
Acceptability of unit linked approach
Fund management
43
8/7/2019 Hdfc Selling Policy
44/103
Charges and expenses
Administration
Products offered by other market players
System support
Training and education
Regulatory constraints
Till now, the companies (Indian corporate) in India were not
exposed to this type of a scheme where the entire investment
risk and hence the reward being borne by the
company/trustees. It is hence extremely difficult to predict
how the Indian corporate would react to this. Also; there is a
great deal of education that needs to be done at the time of
selling this concept and hence setting the right expectation in
the mind of the employers. An essential element for the
44
8/7/2019 Hdfc Selling Policy
45/103
development of investment linked products is the existence or
development of a stable securities market. Insurance
companies, like pension funds, are important catalysts for
change in this regard but change will not come
overnight. although, the fact that Indian corporate invest in
mutual funds cannot be totally neglected and hence can
give a certain degree of comfort to the insurance companies.
The fact remains that in case of gratuity and super annuation
it is employees money and hence the company may not
want to take the downward risk.
FUND MANAGEMENT
The crux of the entire product is the returns that this product
can generate and this is dictated by the management of the
fund. There is no great value in doing well in all other aspects
of the product delivery if the fund does not perform well. The
insurance company has two options with regards to the
management of the fund i.e. external and internal. External
funds usually have a proven track record that could be used
as a significant marketing too. In India many of the insurance
45
8/7/2019 Hdfc Selling Policy
46/103
companies, which are apart of the larger financial services
groups, already have a sister fund Management Company
and they could bank on their performance .for others, they
would usually be having an in house investment team and this
could be extended to management of the funds too. The
expenses and hence the cost should be kept in mind as by
nature the unit linked insurance product is a very transparent
product and hence this would become a significant selling
point in the long run.
CHARGES AND EXPENSES
There are different charges that can be levied by the
insurance companies, some of the more common ones are:
1. Initial charges
Annual charges
Investment charges
Morality charges
46
8/7/2019 Hdfc Selling Policy
47/103
Surrender charges
INITIAL CHARGES
Initial charges are applied at the time of setting up the policy;
this could be in the form of a bind offer spread and also in the
form of units known as the allocation of units known as the
allocation factor. It is also possible to be levying a per
member level charge.
ANNUAL CHARGES
The annual charges can either be fixed or can be linked to the
size of the fund. It could also be linked to the number of
members in the scheme. This charge is usually taken to cover
the maintenance expenses of the insurer.
INVESTMENT CHARGES
A fund management charge is levied to take care of the fund
management expenses depending upon whether the fund is
managed internally or externally.
MORTALITY CHARGES47
8/7/2019 Hdfc Selling Policy
48/103
It is possible to have an insurance element built into the super
annuation contract and in case of a gratuity there would be
an element of insurance the degree and the form could differ
from company to company.
The insurance premium can be taken as a part of the gratuity
contract of it can be administered outside this but packaged
to as if it is a whole some product offering and insurance to
the employees of the organization.
SURRENDER CHARGES
The surrender charges can be used in multiple ways .It could
be used as a way of recouping the initial outlay of the insurer
in case the company decides to withdraw in the early years of
the contract or it could be used as a deterrent for the
company to shift the service provider at any point of the
contract. Usually the surrender charges/penalty would
decrease over a period of time and would be expressed as a
percentage of the fund.
The biggest start up expenditure for linked unit linked policies is
the unit linked administration system and this has to be
48
8/7/2019 Hdfc Selling Policy
49/103
recouped over a period of time by the charges that are levied
and the business volumes that the product would generate.
They key thing to all this is that the Indian corporate till now
have been exposed to the explicit from of charges and hence
they would have to be sensitized to the different charges and
hierarchies on which they operate. This could be a point
where significant negotiations at the time of pre sales can
happen hence; at the time of product development the
insurance company should design the product making
provisions to accommodate such contingencies.
ADMINISTRATION
The unit linked policies are significantly complex to administer
and also would need a very highly technically trained
customer service department to handle enquiries. Much of the
administer the policy .as the allocation of the units would be
time dependent it is extremely important to have a very robust
system that can take care of allocations, de allocation and
reallocation of units .it is essential to have a system that would
be able to talk/interact with other systems to capture the unit
49
8/7/2019 Hdfc Selling Policy
50/103
price details, to give outputs to accounting package, report
generators etc.
PRODUCTS OFFERED BY OTHER MARKET PLAYERS
The domain of competition does not stop with the insurance
companies but also extends to products offered by the unit
trusts. There could be a strong tendency to compare the
returns of this product with those available with the unit trusts
although the investment philosophy and the asset class on
which both of them would be operating could be entirely
different.
SYSTEM SUPPORT
The success of a market player especially in this unit linked
market would be dictated by the service that he could
provide. It is imperative that the insurance company is to
either build an in house system or to buy it from a vendor
developing an in house system would require substantial
amount of expertise and skilled IT resource .there are a few
systems that are available but would require some amount of
50
8/7/2019 Hdfc Selling Policy
51/103
customization depending upon the scope of the product.
TRAINING AND EDUCATION
This product by its very nature is very transparent and hence
very complex. Also the intended target market are the
corporate hence the necessary skill set that would be required
to sell this product would vastly different in comparison to the
traditional products. Some of the distribution channels like the
bank assurance may not be the ideal way to canalize the
product. Also by the very nature of the product it is open for
abuse and hence the insurance company should properly
train the sales force and also should educate the potential
policy holders through its communication about the
investment risk that the policy holder through its
communication about the investment risk that the policy
holder is taking as opposed to traditional policies.
TERM ASSURANCE PLAN
Under this plan, a sum assured is payable in case of death of
51
8/7/2019 Hdfc Selling Policy
52/103
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 of ones death. Since this
Non participating plan is a pure risk cover plan, no benefits are
payable on survival to the end of the term of the policy.
Optional benefits are available with this plan. You can
add the following optional benefits to customize your policy to
suit your needs.
Critical illness benefits provides an amount, equal to the
sum assured chosen under this optional benefit, a diagnosis
of any one of the 6 common critical illness. The sum assured
is payable if you survive for 30 days after the date of claim.
One such a claim has been met, no further critical illness
benefit payable. However, your basic policy continues even
after we pay a claim on this benefit.
Additional term benefit provides an additional amount,
equal to the sum assured chosen under this optional
52
8/7/2019 Hdfc Selling Policy
53/103
benefit, in case of your unfortunate death.
Accidental death benefit provides an additional
benefit,in case of your unfortunate death:
-due to an accident, and
-within 90 days of the accident.
TAX BENEFITS
Tax benefits described in section 88, section 80 D and
section 10(10D) of the income tax act are applicable.
PAYMENT OPTIONS
You have the choice of paying your premium either in
yearly, half yearly or quarterly models, or paying a single
One-time premium, depending on your convenience.
53
8/7/2019 Hdfc Selling Policy
54/103
RESEARCH
METHODOLOGY
54
8/7/2019 Hdfc Selling Policy
55/103
It is of studying how the research problem is being solved significantly.
The term methodology answers in which of the available method or
Tchniques are relevant and which are not, regarding the problem in
hand. Hence, methodology should be systematic. The methodology
should be clear in the mind of researcher because this is the only thing
on which the whole project is based. It provides the guideline in the
mind of researcher to carry out the project .It provides the right
approach precede the research program.
Methodology provides the way to systematically the problem in hand.
It may be considered as science
MEANING OF RESEARCH
Research in common parlance refers to a search for Knowle. te
advance learners dictionary of current English lays down the meaning
of research as a careful investigation or enquiry especially through
each for new facts in any branch of knowledge. According to Clifford
Woody research comprises defining and redefining problems,
55
8/7/2019 Hdfc Selling Policy
56/103
formulating hypothesis or suggested solutions; collecting, organizing
and evaluating data; making deductions and reaching conclusions; to
determine whether they fit formulating hypothesis.
SCIENTIFIC RESEARCH
The scientific method of research encourages a rigorous, impersonal
mode of procedure dedicated by the demands of logic and objective
procedure. Accordingly scientific research implies an objective, logical
and systematic method i.e. a method free from personal bias or
prejudice, a method to ascertain demonstrable qualities of a
phenomenon capable of being verified, a method wherein the
investigation proceeds in an orderly manner and a method that implies
international consistency.
CRITERIA OF GOOD RESEARCH
It is important that the research is to be performed should be
systematic and should be based on a common ground. The research
should be objective oriented i.e. always moves towards the solution of
the problem or according to the project assigned. One expects the
scientific research to satisfy the following
Criteria:-
1. The purpose of the research should be clearly defined and
common concepts are used.
2. The research procedure should be described in sufficient
details to permit another researcher to repeat the research
for further advancement.
56
8/7/2019 Hdfc Selling Policy
57/103
3. The procedural design of the research should be carefully
planned to yield results those are as objective as possible.
4. The researcher should report with complete frankness,
flaws in procedural design and estimate their effects upon
the findings.
5. The analysis of the data should be sufficiency adequate to
reveal the significance and the methods of analysis used
should be appropriate.
6. The validity and the reliability of the data should be
checked carefully.
7. Conclusions should be confirmed to those justified by the
data of the research and limited to those for which the
data provide an adequate basis.
TYPES OF RESEARCH
57
8/7/2019 Hdfc Selling Policy
58/103
There are various types of research for the suit of researcher
These are as follows:-
1. DESCRIPTIVE Vs ANALYTICAL
Descriptive research includes surveys and fact findings enquiries
of different kinds .the major purpose of descriptive research is
description of the state of affairs, as it exits at present. In social
sciences and business research we often use the term Ex post
Facto research for descriptive research studies in which
researcher seeks to measure such items as, for example,
frequency of shopping etc.in analytical research, on the other
hand, the researcher has to use facts or information already
available, and analyze these to make evaluation of the material.
2. APPLIED Vs FUNDAMENTAL
Research can either be applied research or fundamental
research. Applied research aims at finding a solution for
immediate problem facing a society or an industrial business
organization. Fundamental research is mainly concerned with
generalization and with the formulation of the theory, Gathering
knowledge for knowledges sake is termed pure or basic
research.
3. QUANTITATIVE Vs QUALITATIVE
Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomenon that can be expressed
58
http://etc.in/http://etc.in/8/7/2019 Hdfc Selling Policy
59/103
in terms of quantity. Qualitative research on the other hand, is
concerned with qualitative phenomenon. This type of research
aims at discovering the purpose .other type of research is
especially important in the behavioral science where the aim is
to discover the underlying motives of human behavior.
4. CONCEPTUAL Vs EMPERICAL
Conceptual research is that related to some abstract ideas or
theory. Philosopher and thinkers to develop new concepts or to
reinterpret existing ones generally use it. The empirical researchon the other hand relies on experiences or observation alone,
often without due regard for system and are capable of being
verified by observation or experiment.Emperical research is
appropriate when proof is sought that certain variables affect
other variables in some way.
RESEARCH DESIGN
A research design is the specification of the Methods and
procedure to be adopted for acquiring the information required
for solving the Problem .there is two types of marketing
research design
Exploratory research
conclusive research
DATA COLLECTION METHOD
There are two types of data:
59
8/7/2019 Hdfc Selling Policy
60/103
A.primary data
B. secondary data
PRIMARY DATA
Primary data are generated by a study specifically designed to
accommodate the data needs of the problem at hand.
SECONDARY DATA
Secondary data is any data originally generated for some purpose
other than the present research objectives. The sources of secondary
data are:
I. Internal data available from the company profile etc.
II. External data to facility research information was obtained from
magazines, journals, newspapers and Published books.
CHALLENGES BEFORE THE INDUSTRY
The new as well as the old insurers will have to face the number of
challenges in the liberalized market.
NEW INSURERS
60
8/7/2019 Hdfc Selling Policy
61/103
The new insurers will have to invest a minimum capital of Rs. 100
Crores. The normal gestation period is of five years .the generation of
profit normally starts in the sixth year. Hence the new insurers will
have to be ready for locking up their capital for at least five years
before earning any profit. Besides they will face problem of shortage of
trained manpower for the insurance industry. The setting up of various
offices and distribution network is a time consuming process. Further
the new insurers will have to compete with established insurance
companies like LIC and GIC which have a corporate image and market
presence for several years.
EXPECTATION OF THE CONSUMERS
Today LIC has more than 60 products and GIC has more than 180
products to offer in the market. But most of them are outdated, as
they are not suitable to the needs of the consumers. Hence old as well
as new insurers will have to offer innovative products to the
consumers. The consumers are particularly expecting good pension
plans, health insurance, term insurance and investment products like
unit linked insurance from life Insurers .similarly the consumers
expect innovative products from the general insurers for managing
healthcare, property, insurance, accident insurance and other products
related to the personal line of insurance. The consumers also expect
reduction in the insurance products as the morality rate in India has
come down by three times in the last 50 years.
DISTRIBUTION CHANNELS
61
8/7/2019 Hdfc Selling Policy
62/103
In the liberalized insurance market, there will be multiple distribution
channels, which will include agents, brokers, corporate intermediaries,
bank branches, affinity group and direct marketing through telesales
and internet. Some channels will be cheaper than others. Hence there
will be competition among the channels. The new insurers will operate
with help of multiple distribution channels but the existing insurers
may be forced to operate only with the help of agents. Hence, intense
competition will grow among the old and new insurers in the market to
insurers in the liberalized insurance market.
CONSUMER EDUCATION
Very soon the market will be flooded by a large number of products by
a fairly large number of insurers operating in the Indian market. Even
with limited range of products offered by LIC and GIC, the consumers
are confused in the market. Their confusion will further increase in the
face of a large number of products in the market. The existing level of
awareness of the consumers for insurance products is very low, it is so
because only 62% of the population of India is literate and less than
10% well educated. Even the educated consumers are ignorant about
the various products of insurance. Hence it is necessary that all the
insurers should undertake the extensive plan for education of
consumers .the consumer organization and the media also can play
very important role in education of consumers .this will result in
expansion of the insurance market and also will result in expansion of
the insurance market and will also enable the needy consumer to
purchase appropriate products.
CONSUMER GRIEVANCE REDRESSAL
62
8/7/2019 Hdfc Selling Policy
63/103
The insurers will have to face an acute problem of the redressal of the
consumers, grievances for deficiency in products and services. The
Insurance Regulatory Development Authority (IRDA), the regulatory
body has already appointed Ombudsman for looking into the
grievances of the policy holders; his judgment will be binding on
insurers .further, under consumer protection act 1986, the consumer
court are operating at district, state and national level. In the
competitive market, awareness level of the consumers will increase
and it will help consumers to fight for their legal right for deficiency in
services .hence the number of legal cases filed by the consumers
against an insurer is likely to increase substantially in future. This will
be a challenge to the insurers.
ROLE OF FOREIGN COMPANIES IN INDIA
Government has allowed 26% foreign equity participation in the
insurance sector. This has its limitations .while most foreign insurers
planning to start their services in India were not pleased by this
condition, they reluctantly agreed that this was expected in an opening
economy and this will not change their outlook for India. After all no
63
8/7/2019 Hdfc Selling Policy
64/103
insurance company can afford to ignore a market of 1 bn people. But
the fact remains those they:
cannot appoint majority directors on the company board;
cannot have say in the day to day workings of the company;Can
affect only special resolutions.
This cap, however will have a great impact on the Indian counter part
to raise 74%of the funds in their joint venture. To add to this if Indian
partners like State Bank of India, with over 9000 branches
nationwide, will demand premium for their existing distribution
network, we will see the foreign insurance companies demand hefty
premiums for bringing in their global expertise and brand.Mr.Vaidya,
chairman of SBI, has recently stated that all it is looking for is a good
and reliable partner and the question of a hefty premium to be
charged to its foreign partner is not significant. the monolith has finally
come to business senses foreign companies are unhappy even about
laws pertaining to repatriation of funds .the stipulated investment
criteria also something that all players in the sector, be it Indian or
foreign, are closing watching. The foreign players are essentially
looking to tap their global expertise in the variety markets and use
that know how to work in the Indian scenario. Designing of products,
information systems .technical expertise, manpower planning etc is
what one expects the foreign players to have a say in any venture of
the joint needs to be between equals. If this is not there then there is
every chance that partner in the venture will feel increasingly
uncomfortable and would be looking to call the joint venture off.
64
8/7/2019 Hdfc Selling Policy
65/103
TARGET/TASK SET
65
8/7/2019 Hdfc Selling Policy
66/103
WEEKLY TARGETS: -
In the very first week of SIP my company guide assigned
me to conduct a market survey of 100 peoples and to find the positive
and negative perception in the minds of the customers regarding HDFC
SLIC and to prepare a report on the comparative study of HDFC SLIC
and Its competitors for that I prepared a questionnaire and in one
week I surveyed 118 customers out of which 27% are in favor of HDFC
SLIC policies because they are already having their Bank accounts in
HDFC and they dont want to shift towards any other company and
then 30% customers are go with both companies HDFC SLIC & LIC
and 10% are not interested to take any insurance policy of any
company, then the rest 33% are those who only go with Life Insurance
Corporation i.e. LIC policies.
66
8/7/2019 Hdfc Selling Policy
67/103
After it the target was same for every week i.e. to recruit one financial
consultant and to sell one policy of HDFC SLIC.
Time allotted for weekly target: - For the above survey my
company guide gave me four days i.e. 24/03/08 - 27/03/08 to
complete it and then on the fifth day i.e. on 28/03/08 I have to submit
the report but I completed it on 26/03/08 and on the 27/03/08 I
submitted my report to my company guide.
Time duration for weekly Target- There is a time limit of five days
to accomplish our weekly targets i.e. we have to complete the weekly
targets on fifth day positively i.e. If our weekly targets is to sell one
policy and to recruit one financial consultant then we have to complete
it in between Monday to Friday of the given week.
MONTHLY TARGET: -
Our monthly target is to recruit 6 financial consultants and
to collect a premium of Rs. 23,600 per annum in a month.
Time Duration for Monthly Target- There is time duration for
monthly target also like as per our monthly targets we have to collect
a premium of Rs. 23,600 per annum and to recruit six financial
consultants for HDFC SLIC in a month.
TARGET/TASK: -
Week No. Targets per
week
Task
started on
Task completed
on
67
8/7/2019 Hdfc Selling Policy
68/103
1. To conduct a
market survey of
100 people and to
find the positive
and negative
perception in the
minds of the
customers
regarding HDFC
SLIC and to
prepare a report
on the
comparative study
of HDFC SLIC and
Its competitors.
24-03-2008 27-03-2008
(completed before
time)
2. (i).To Perform a
canopy activity
and Interact with
different
customers.
(ii). To sell one
policy and To
recruit one
Financial
consultant.
31-03-2008 04-04-2008
(Completed target
on time)
3. (i).To attends
IRDA training at
Bhikaji Cama
branch.
(ii). To attends
training on new
7-04-2008 11-04-2008
(Attended IRDA
training and training
on new product
refresher)
68
8/7/2019 Hdfc Selling Policy
69/103
product refresher
in the same
branch.
4. To generate 20
fresh leads for the
recruitments
Financial
consultants in
HDFC SLIC.
14-04-2008 18-04-2008
(Completed target
on time and
generated 30 leads)
5. To sell one policy
and To recruit one
Financial
consultant.
21-04-2008 25-04-2008
(Completed target
on time)
6. To sell one policy
and To recruit one
Financial
consultant.
28-04-2008 01-05-2008
(Completed target
before time and
over achieved the
target by recruitingthree Financial
consultants)
7. To sell one policy
and To recruit one
Financial
consultant.
05-05-2008 09-05-2008
(Completed target
on time)
8. To sell one policy
and To recruit one
Financial
consultant.
12-05-2008 16-05-2008
(Completed target
on time)
9. To sell one policy
and To recruit one
Financial
19-05-2008 23-05-2008
(Completed target
69
8/7/2019 Hdfc Selling Policy
70/103
consultant.on time)
10. To sell one policy
and To recruit one
Financial
consultant.
26-05-2008 30-05-2008
(Completed target
before time and
over achieved the
target by recruiting
three Financial
consultants)
11. To recruit five
Financial
consultants.
02-06-2008 06-06-2008
(Completed target
before time andover achieved the
target by recruiting
six Financial
consultants)
12. To recruit three
Financial
consultants.
09-06-2008 11-05-2008
(Completed before
time)
70
8/7/2019 Hdfc Selling Policy
71/103
STRATEGY
ADOPTED
71
8/7/2019 Hdfc Selling Policy
72/103
Firstly I reached to those customers who have already using the
banking facilities of HDFC and having their saving banks account,
current account, credit cards and EDC for this I visited to different
branches of HDFC Banks and met with the customers directly in branch
and then I visited peoples working in different industries, retail shops
to gather information regarding their interest in HDFC SLIC policies
and continuously trying to convince them for HDFC SLIC products and
to join HDFC SLIC as a Financial Consultants.
Methods Adopted for Marketing HDFC SLIC products: -
I adopted different methods to approach customers such as-
Personal selling
72
8/7/2019 Hdfc Selling Policy
73/103
Telephoning
Questionnaire
Market research
Kiosk marketing
Personal selling- It involves communication between a seller and one or more
potential buyer, through it I have personally contacted different customers
belonging to industries to sell the different products of HDFC Standard Life
Insurance and to convince the people to join HDFC as a Financial
Consultant I also visited some colleges and convince some
students to join HDFC SLIC as a Financial Consultant and earn
part time.
Telephoning- In the second week of SIP I used my survey database for cold calling
and then I took an appointment from different customers and finally met them for
my financial dealing of HDFC SLIC
products. ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss
sssssssss
Questionnaire- I also used questionnaire technique to create my own customer
database so that I can call them and create their interest towards HDFC SLIC
products the questionnaire which I used for my survey was very useful for
me because from that only I generated 2 policies and recruited 3
Financial consultants.
Market research- I conducted a market research in the first week of my SIP and met
with different peoples some of them are working, some are self employed and
owing their business and some of them are students after this survey I came to
know that peoples are less aware about HDFC SLIC they only have some
knowledge about HDFC Bank that time I took their contact
numbers and revertedthem back through telephoning technique.73
8/7/2019 Hdfc Selling Policy
74/103
Kiosk marketing- In second week of my SIP my company guide divided some teams
and gave us a task in which we two have to perform a canopy activity in the
compound of escorts securities office Connaught place new Delhi it was our
first opportunity to interact with the different customers group at
a same place and face their queries and provide them an
appropriate solution for it. It was such a great experience in
which we generate a new customers data base which we will use
in the next month.
STRATEGY ADOPTED IN ACHIEVING THE TARGETS: -
Firstly I created my own database of customers through market survey.
Then I used that customers database for cold calling and some of
them gave me appointments.
After meeting them I took some other references from them and to
follow up those references.
I took some data from the different branches of HDFC banks and
ATMs and create a new Customers database.
I performed a canopy activity and from that activity I interacted with
different people at a same place.
I focused towards the students group from different institutions and
colleges and tried to convince them to join HDFC SLIC asfinancial consultants.
I and my team pasted some posters in the different locations near
colleges, bus stops and metro stations because of this we get a
favorable response and generate customers database.
74
8/7/2019 Hdfc Selling Policy
75/103
METHODOLOGY: -
Market Survey.
Collection of Customers Database.
Attended Training on Product Knowledge and on
Recruitment Policies of Financial Consultants.
Cold Calling.
Take an appointment from the responding
customers.
Face to Face Interaction with costumers.
Meet them and convince them to take HDFC SLIC
products or to join HDFC SLIC as a Financial
Consultants.
Canopy activity to reach towards large customers
group.
Promotional marketing by distribution of
information broachers and pasting of posters in
different locations.
75
8/7/2019 Hdfc Selling Policy
76/103
ACHIEVMENTS
&
LEARNING
Targets Achievements Learning
76
8/7/2019 Hdfc Selling Policy
77/103
week
No.
1. To conduct a
market
survey of
100 people
and to find
the positive
and negative
perception
in the minds
of the
customers
regarding
HDFC SLIC
and to
prepare a
report on
the
comparative
study of
HDFC SLIC
and Its
competitors.
Conducted a
market survey
of 118
customers and
submitted a
final report to
my company
guide before a
last due date
i.e. on
27/03/08 which
is appreciated
by our
company
guide.
Learnt how
to
interact
with
customer
s.
Learnt how
to facing
the
different
queries of
customer
s.
2. (i).To
Perform a
canopy
activity and
Interact with
different
Performed a
canopy activity
with my team
in the
compound of
Escorts
Learnt how
to deal
with the
customer
s in
77
8/7/2019 Hdfc Selling Policy
78/103
customers.
(ii). To sell
one policy
and To
recruit oneFinancial
consultant.
securities office
Connaught
place new Delhi
and created a
new customer
database.
market.
Learnt how
to sell
insurance
policies inmarket.
Came to
know
about the
competito
rs
products.
3. (i).To
attends
IRDA
training at
Bhikaji
Cama
branch.
(ii). To
attends
training on
new product
refresher in
the same
branch.
Attended IRDA
training and a
training on
product
knowledge i.e.
new product
refresher
conducted in
our own branch
and got a
certificate from
RINS college of
insurance.
Learnt about
some
new
product
of HDFC
SLIC.
Learnt the
importan
ce of
training.
78
8/7/2019 Hdfc Selling Policy
79/103
4. To generate
20 fresh
leads for the
recruitments
of FC.
Generated 30
fresh leads for
Financial
consultants and
remarked for
my excellent
field work by
our company
guide in my SIP
log book.
Learnt to
make a
network
of people
by
communi
cating
and
convincin
g them.
5. To sell one
policy and
To recruit
one
Financial
consultant.
Sold one policy
and recruited
one Financial
consultant.
Learnt how
to sell
insurance
policy
from a
reference
.
6. To sell one
policy andTo recruit
one
Financial
consultant.
Sold one policy
and recruitedthree Financial
consultants and
remarked for
my good
team work by
our company
guide in my SIPlog book.
Learnt about
therecruitme
nt
processor
of
Financial
consultan
t in brief.
7. To sell one
policy and
To recruit
one
Sold one policy
and recruited
one Financial
consultant and
Learnt the
importan
ce of
communi
79
8/7/2019 Hdfc Selling Policy
80/103
Financial
consultant.
remarked for
my excellent
performance
and
responsible
towards work
by our
company guide
in my SIP log
book.
cation in
corporate
.
8. To sell one
policy and
To recruit
one
Financial
consultant.
Sold one policy
and recruited
one Financial
consultant and
remarked for
my good field
work by our
company guide
in my SIP log
book.
Learnt how
to make
friendly
relations
with
customer
s and its
importan
ce.
09. To sell one
policy and
To recruit
one
Financial
consultant.
Sold one policy
and recruited
one Financial
consultant and
remarked as
a capable one
who knows
how to deal in
sales by our
company guide
in my SIP log
book.
Learnt the
importan
ce of
being
confident
of the
work u
do.
Learnt the
importan
ce of
80
8/7/2019 Hdfc Selling Policy
81/103
being
trustwort
hy at
work.
10. To sell one
policy and
To recruit
one
Financial
consultant.
Sold one policy
and recruited
three Financial
consultants and
remarked as
focused,
dedicated and
hard worker
by our
company guide
in my SIP log
book.
Learnt how
to
understa
nd
customer
s
requirem
ents in
insurance
policies.
11. To recruit
five
Financial
consultants.
Overachieved
the given
weekly target &
Recruited six
financial
consultants.
Learnt how
to work
for
corporate
and their
working
environm
ent.
12. To recruit
three
Financial
consultants.
Recruited three
financial
consultants.
Learnt how
to
motivate
a team
for work.
81
8/7/2019 Hdfc Selling Policy
82/103
AWARDS&REWARDS
82
8/7/2019 Hdfc Selling Policy
83/103
RECEIVED
TOTAL BUSINESS GIVEN TILL DATE: -
Number of policies Sold : Seven
Amount of premium collected : Rs. 94,000
Number of Recruitments given : 19 (FC)
Number of leads generated : Two Hundred
Total Business Given : Rs. 94,000 (IP)
Rs. 13,650 (FC)
----------------------
Rs. 1, 07, 650
83
8/7/2019 Hdfc Selling Policy
84/103
-----------------------
84
8/7/2019 Hdfc Selling Policy
85/103
ANALYSIS OF
PERFORMANCE
V\S TARGETS
HDFS SLIC REQUIRES BUSINESS FROM MANAGEMENT
TRAINEES DURING 3.5 MONTHS OF SUMMER INTERNSHIP
PROGRAM
BUSINESS REQUIRES
(RS.)
BUSINESS GIVEN
(RS.)
POLICIES 82,600 94,000
F.C 17,850 13,650
TOTAL 1,00,450 1,07,650
85
8/7/2019 Hdfc Selling Policy
86/103
OVERACHIEVEMENT BY 7%
IN MONETARY TERMS
MARKET
SEGMENTATION86
8/7/2019 Hdfc Selling Policy
87/103
As
a part of field activity, I was asked to market the
products of HDFC SLIC.The decision to adopt a way to
market the products was left to me. First of all, I was
asked to segment the market into various stratas or
groups make two segments of the market as follows:
Middle income level people
High net worth individuals
87
8/7/2019 Hdfc Selling Policy
88/103
The reasoning behind these grouping was that these
people would be easily accessible and easy to talk
to. My mentors gave me permission to go by this way of
segmentation .I decided to go around DELHI and
collect data. This data involved names of people and
their address then I would have got the phone numbers
of these people from the directory. But this was a very
hectic job, especially given the summer heat out. Then
I got the data of around 300 people. This data
comprised of names of people, their phone numbers
and address.
Contacting these people involved making cold calls to
them from the office of HDFCSLIC in DELHI .i would
introduce myself as a student doing project in
HDFCSLIC and that I wanted to meet the person
regarding the study of investment patterns of people
of DELHI and their perception of insurance, some
people gave appointment and asked me to meet
them.
At later stages of the project, I directly introduced
88
8/7/2019 Hdfc Selling Policy
89/103
myself as an HDFCSLIC employee and that HDFCSLIC
had come with interesting plans of saving, protection,
pension and investment. I would ask them
if they were interested in any of the plan and could
spare 15 min of their schedule. I could come to their
place and tell and explain them those plans in detail. If
I got an appointment .I would go to their places and
meet them. I would ask them where they had invested
previously and what were the parameters that they
considered for investing .then I would explain them the
various investment plans of HDFCSLIC.After all the talk, I
would ask them for their difficulties and doubts. I would
tell them that I would call them later at a fixed date for
their interest in the plans of HDFCSLIC and any kind of
doubts or difficulties that they would have in
understanding the plans.
89
8/7/2019 Hdfc Selling Policy
90/103
M
ARKET FEEDBACK
90
8/7/2019 Hdfc Selling Policy
91/103
I have noted down the responses of people an the
data sheets I had maintained to make calls to people
and meet them. These responses involved direct refusal
for interest in HDFCSLIC plans of giving an
appointment. Most of the people enquired about the
plans on the phone itself. After sufficient introduction to
the plans, they gave an appointment and asked me to
meet them.
91
8/7/2019 Hdfc Selling Policy
92/103
Recommendations
92
8/7/2019 Hdfc Selling Policy
93/103
The insurance companies should now try to identify the gap
between current level of customer service and customer
expectations. Some
of the strategies being recommended are as follows:
Product Differentiation : Offering a product that is distinctly
different from other products available in the market.
Innovativeness : Identifying means of a delightful customer
experience.
Riders : These are additional offerings along with the main
product.
Flexibility: The companies should make their products
flexible for the convenience of their customer.
Hassle Free Service: All bureaucracy in customer
interactions should be eliminated.
Proper Policy Documentation: Wrong interpretations/ non-
awareness of policy document by the customer may have
93
8/7/2019 Hdfc Selling Policy
94/103
serious implications in the long term and the possibility of the
same should be alleviated by the insurance companies.
CONCLUSION
94
8/7/2019 Hdfc Selling Policy
95/103
Here I am going to explore my experience that I have gained
during my summer training period on the market field under
the visualization of some senior active members of the HDFC
Standard life insurance co. ltd.
I worked on the field for two months. During the first few days
I surveyed the market and tried to understand the thinking of
the people whether they are interested to join HDFC Standard
life career option. I approached a lot of respected persons and
convinced them about the beneficial features of the work if
they join & work with HDFC Standard life.
I met many persons and convinced them to join the HDFC
Standard life insurance co. ltd. Care Consultant for setting a
brilliant career. Many of the prospects know about the HDFC
Standard life is a international organization. they are very
much interested to join HDFC Standard an insurance care
consultant, as they are very awaked and determined towards
their career.
It is also surveyed that the only about 10% people has their
life insurance in this country so it may be a great career option
for the public who want to bring their life from an ordinary to
extra ordinary life.
surance Co. Ltd. is giving the opportunity to the public that not
only giving a great career but also a chance to enhance their
personality as a gentle human.
I want to give thanks to all those esteemed active members of
the HDFC Standard life for giving me the opportunity to work
with them.
95
8/7/2019 Hdfc Selling Policy
96/103
ANNEXURE
96
8/7/2019 Hdfc Selling Policy
97/103
QUESTIONNAIRE
1)
NAME: -------------------------------------------------------------
AGE: -- above18 ( ), 25-30( ), 30-40( ), 40-50( ), above 50( ).
SEX: - Male ( ), Female ( ). Address:
------------------------------
2) What is your occupation?
Ans: -Business ( ), service ( ), student ( ), House wife ()
Any other ( ), Specify-----------------------
3) What is your qualification?
Ans:-Inter or equivalent ( ), Graduate ( ), Post graduate ( ),
Other specify--------------------
4) Why did you join as consultant?
Ans:-(a) Earn money (b) social status (c) time engagement
(d) Growth (e) other specify ---------------------
5) How many dependent in your family?
---------------------------------------------
6) How did you get knowledge about this insurance firm?
97
8/7/2019 Hdfc Selling Policy
98/103
Ans: -a) Advertisement b) Magazines c) relatives d) other
consultants
e) Other employee of the firm
f) Others specify --------------------
7) What specific feature do you want in your insurance
company?
Ans:-
---------------------------------------------------------------------------
--------
------------------------------------------------------------------------------------
---------------------------------------------------------------------------
---
8) Do you want basic salary as an advisor?
Ans: Yes/No\) Will you invest your own money in ICICI
Prudential?
Ans: Yes/NO
10) Is 100 hours training is suitable for you?
Ans: Yes/NO
DATE: -
--------------------------------------
SIGNATURE OF
INTERVIEWER
98
8/7/2019 Hdfc Selling Policy
99/103
DATA ANALYSIS
PE
RSON KNOW ABOUT LIFE INSURANCE
YES 83%
NO 17%
0%
20%
40%
60%
80%
100%
YES
NO
PERSONS KNOW ABOUT LIFE INSURANCE THROUGH
Through Agents 22
Through friends 17
Through advertise 52
Others 11
99
8/7/2019 Hdfc Selling Policy
100/103
FOR PERSON HAS TAKEN POLICY
For Business 25%
For Family 70%
For Other Purpose 5%
100
For Business
For Family
For Other Purpose
8/7/2019 Hdfc Selling Policy
101/103
PERSON RANKED THE BENEFITS OF LIFE INSURANCE:
Benefits Important Less important
Not
important
Saving income tax 45% 40% 15%
Financial planning 52% 31% 17%
Family security 75% 18% 7%
High rate of nature 65% 25% 10%
capacity of taking loan
in future 25% 30% 45%
101
0 0.2 0.4 0.6 0.8
Important
Less important
Not important
capicity of taking loan infuture
High rate of nature
Family security
Financial planning
Saving income tax
8/7/2019 Hdfc Selling Policy
102/103
BIBLIOGRAPHY
Magazines: -
The Insurance Journal
102
8/7/2019 Hdfc Selling Policy
103/103
Intelligent Investor
Business Today
News Papers: -
Economic Times
Hindu Business Line
Web Sites Visited: -
www.hdfcInsurance.com
www.Irdaonline.com
www.bimaonline.com
www.Indiainfoline.cosm
http://www.hdfcinsurance.com/http://www.irdaonline.com/http://www.bimaonline.com/http://www.indiainfoline.com/http://www.hdfcinsurance.com/http://www.irdaonline.com/http://www.bimaonline.com/http://www.indiainfoline.com/