STUDENTS UNDERTAKING

I hereby certify that this is my original work and it has never been submitted elsewhere

Project Guides:

(By Krishan Lata)Faculty name:

Designation:

ACKNOWLEDGEMENT

I express my deep sense of gratitude to thank HDFC Branch for giving me an opportunity to do my internship in their esteemed organization. My special appreciation extends to MR. ASHISH PRATAP SISODIA, SENIOR MANAGER CHANNEL DEVELOPMENT under whom I worked and learned a lot and for enlightening me with their knowledge and experience to grow with the corporate working.

His guidance at every stage of the Project enabled me to successfully complete this project which otherwise would not have been possible without their constant encouragement and motivation, without his support it was not possible for me to complete the report with fullest endeavor.

I would also like to extend my thanks to my College Faculty and to all my friends at for their constant support and help at all times, without which this project would have remained incomplete.

Finally, I extend my heartfelt thanks to my parents for being a source of constant inspiration and continuous encouragement.

KRISHAN LATA

TABLE OF CONTENTS

Sl.NO.

PARTICULARSPAGE NO.

1.CHAPTER 1 Introduction of the topic6-13

2.CHAPTER 2 Objective of study Scope of study14-18

3.CHAPTER 3 Company profile

19-27

4.CHAPTER 4 Research Methodology

28-30

5.CHAPTER 5 Analysis and interpretation

31-41

6.CHAPTER 6 Findings of the study Limitations of the study Suggestions and recommendations Conclusion

42-49

7.BIBLIOGRAPHY50-51

8.ANNEXURE52-58

EXECUTIVE SUMMARY

This internship report consists of the overall experience of online working as a part of HDFC Standard Life Insurance Co, Ltd. This experience helped me understand the basic functioning of the organization where I was inducted.

My Internship program - Project Title: RECRUITMENT OF FINANCIAL CONSULTANT

The best learning experience was that I started from the very basics of getting to that position and not from the position itself. This helped me get useful insight and understanding of online marketing, the benefits to the members as well as the hdfc.

Training sessions were held to give me insights about How to create markets and write comments on other members markets and to encourage and appreciate them for their nice efforts and creative markets.

I also learnt how to work online for such a nice which enhanced my knowledge, writing skills and communication.

CHAPTER - 1INTRODUCTIONTOTOPIC

1.1 INTRODUCTION - INSURANCEThe insurance sector was opened up in the year 1999 facilitating the entry of private players into the industry. With an annual growth rate of 24.31 percent and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of Government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. According to the CSO, the insurance and banking services contribution to the countrys GDP is 7.1 percent out of which the gross premium collection forms a significant part. Life insurance penetration in India was less than 1 percent till 1990-91. During the 90s, it was between 1 and 2 percent and from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent. The increase in importance is due to the active role played by IRDA in licensing private players and taking positive steps in increasing the insurance awareness among the people. Besides, the insurance companies in general and private insurance companies in particular, are reaching out to untapped potential in rural areas with aggressive campaigns.Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Life insurance is viewed as a tax saving device. People are now turning to the private sector for providing them with new products and greater variety for their choice. The improvement in FDI flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI and for encouraging infusion of new technologies and management practices. The Governments proposal to increase the FDI cap in the insurance sector from the present 26 percent to 49 percent has raised expectations among the international insurance companies.Insurance DefinitionsInsurance is a contract in which sum of money is paid to the assured in consideration of insurers incurring risk of paying a large sum upon a given contingency.-- Justice TindallInsurance is a contract by which one party for a compensation called in the premium assumes particular risks of the other party and promises to pay to him or his nominee a certain sum of money on a specified contingency.-- E.W.FittersonInsurance may be described as social device whereby a large group of individuals, through a system of equitable contribution, may reduce certain measurable risk of economic loss common to all members of the group.--Encyclopedia BritannicaThe above definitions clearly shows that insurance is a cooperative device to spread the loss caused by a particular risk over a member of persons who are exposed to it and who agree to insure themselves against risk. Insurance does not eliminate risk but only reduces the financial burden, which may be very heavy.

1.1.1 The Nature Of InsuranceThe insurance has the following characteristics which are observed in cases of life, marine, fire and general insurance. 1) Sharing of risks: Insurance is a cooperative device to share the financial losses which might befall on an individual or his facility on the occurrence of specified event such as sudden death of the bread winner, marine perils in marine insurance, fire in the fire insurance and theft insurance etc. in the case of general insurance. 2) It is a cooperative device: A large number of persons agree to share the loss arising due to a particular risk. Thus, insurance is a cooperative device.3) Value of risk: The risk is evaluated before insuring to charge the amount of share called premium.4) Payment made at contingency: The payment is made at a certain contingency insured. The Contingency may be death, fire, marine perils etc.5) Amount of payment: The amount of payment depends upon policy insured.

1.1.2 Functions of Insurance1. Primary Functions1. Insurance provides certainty: Insurance provides certainty of payments at the uncertainty of losses. The element of uncertainty is reduced by better planning and administration.1. Insurance provides protection. The risk will occur or not, when will occur and how much loss will be there. There are uncertainties of happening of time and amount of losses. The main function of the insurance is to provide protection against the losses.1. Risk sharing: Risk is uncertain and therefore, the loss arising from the risk is also uncertain. All business concern faces the problem of the risk and if the concern is big enough the handling of risk becomes a specialized function. Insurance, as a device is the outcome of the existence of various risks in our day to day life. It spreads the whole losses over a large number of persons who are exposed by a particular risk.

B. Secondary Functions1) Prevention of loss: Prevention is always better than cure. Prevention is by far the best solution to the problem of risk. It is more effective and cheapest method to avoid the unfortunate consequence. But sometimes prevention is not always possible and Effective.2) It provides capital: It provides the capital to the society. For plan development of country there is a great need for huge amount of capital. Now days, the insurance companies are rendering positive help in the development of trade, commerce and industry of the country.3) It improves efficiency: Achievement of goals, it improves not only his efficiency of the masses is also advanced. The insurance eliminates worries and miseries of losses as death and destruction of property care free person can devote his energies for better.4) It ensures the welfare of society: Insurance is a saga of service and security to thee society. Security of the life and property given by insurance bring peace of mind to the insured. The investment in LIC in welfare schemes like electricity, housing, water supply, agro industry estates are able to solve many problems in India.5) It helps in economic progress: Insurance provides an initiative to work hard for the betterment of the masses. Life insurance involves the element of saving investment through small savings.

1.2 LIFE INSURANCEDefinition The life insurance contract embodies an agreement in which broadly stated, the insurer undertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary. -- J.H.MAGEE

Life insurance contract may be defined whereby the insurer, in consideration of premium paid either in lumpsum installments, undertakes to pay an annuity on the death of the insured of a certain number of years.-- R.S.SHARMA

A contract of life assurance is that in which one party agrees to pay a given sum on the happening of a particular event contingent upon the duration of human life in consideration of immediate payment of a smaller sum by another. 1.2.1 Some Advantages of Life Insurance1.) It is superior to an ordinary saving plan: this is so because unlike other saving plans, it offers full protection against risk of death.2.) Insurance encourages and enforces thrift : many people may not have the will power to continue a long term saving plan which they may formulate regular payments in face of money other uses to which their limited income could be put.3.) Easy installments and protections against creditors: the proceeds of a life insurance policy can be protected against the claims of the creditors of life assured by affection a valid assignment of the policies.4.) Tax relief: the income tax act exempts from tax that part of an individuals income which is devoted to payment of life insurance premium.5.) Estate duty: life insurance is the most practicable way to ensure definite payment on ones death without having resort to conversion of realizable asset at a loss.

1.2.2 Why Life Insurance6) ?Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations, including - a) Temporary needs / threats: The original purpose of life insurance remains an important element, namely providing income on death etc.b) Regular Savings: Providing for one's family and oneself, as a medium to long term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence for their family.c) Investment: Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes a one off payment.d) Retirement: Provision for later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one's old age.

1.3 LIFE INSURANCE IN INDIA With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 percent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance.This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.1.3.1 A Brief HistoryThe origin of insurance is very old .The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK; with the establishment of the Oriental Life insurance Corporation in 1818.The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market.The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. In 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. It was after this that 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.1.3.2 Present ScenarioThe government of India liberalized the insurance sector in march 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) bill. Lifting all entry restrictions for private players to enter the market with some limits on direct foreign ownership. Premium rate of most general insurance. Policies come under the purview of the government appointed Tariff Agency Committee. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also restructuring and revitalizing of the public sector companies. A host of private insurance companies operating in both life and non life segments have started selling their insurance policies since 2001.Non life insurance market, In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into national re-insurer. In July2002, Parliament passed a bill, delinking the four subsidiaries from GIC.Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premium worth 6.34 billion. Most of the new entrants reported losses in first yr of their operation in 2001.Insurance costs constitute roughly around 1.2 2 % of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass through costs for tariff calculations. For projects costing up to Rs.1 billion, the tariff Agent committee sets the premium rates, for projects between 1 billion and 15 billion, the rates are set in keeping with committees guidelines; and projects above 15 billion are subjected to reinsurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50% of the risk and receiving proportionate percentage of the premium.

CHAPTER 2OBJECTIVES

LIFE INSURANCE FINANCIAL CONSULTANT

1.4 LIFE INSURANCE FINANCIAL CONSULTANT1.4.1 Eligibility for an Insurance AgentEvery person who has cleared higher secondary examination can become an Agent other than a minor or the person who is convicted in any court for crime or any legal proceedings. Men and women both can work as an Agent. A single person can be associated with other life insurance companies.A training program is there to train a person who wants to become an Agent. There is 100 Hrs. training program which can be done either with the physical appearance in the class room or the interest basis. In the classroom training the trainee has to be physically present in the training session. There are difference sessions of training program. A trainee can attend any session according to his comfort. The training period is of 25 days approx. If the trainee does not have enough time to devote in the classroom training, then there is another option left that is training on Internet. On the basis of Internet the trainee has provided a login number along with the password through which he operated his login and completed his training hrs. as convenient. Each and every hour pass on the net under his login head will be count on his account. The test for the training program is also on line. This is only procedure to be an Insurance Agent.1.4.2 Scope of Insurance AgentIn the present scenario the living standard is becoming higher and higher every day. Every person who has a family to survive wants to provide his family each and every possible comfortable thing. He wants his children to be a well dressed, to be higher qualified in a well recognized school, colleges, institutes and wants his children to go abroad for higher education. He wants to live a luxury life full of pleasure. To fulfill all of his needs he has to earn more and more. Any person can be on a job at a time or can be on a business cant fulfill his pleasure requirement. There is a source through which he can make money in a legal way that is insurance sector. Becoming an insurance Agent provides him the legal source by which he can earn money with his current status. It is the business in which you deal with you personal contacts and can gain extra income. This business needs low investment an not of much effort. Its all depend on your social contacts and your skills to convince people by helping them to suggest the product which suited them the most.As due to critical diseases, growing percentage of accident and fear of financial crisis everyone wants to secure his or her future. Insurance sector plays a vital role in assuring people about their future. As the scope of insurance enhancing, the need of an insurance Agent who can guide the potential customers is growing.Being an Insurance Agent of HDFC-STANDARD LIFE INSURANCE provides a legal mean to earn money which protects a person from earning through a illegal source which is harmful for society as well as himself. For the youngsters it provides great platform to prove them. On the basis of their performance they can be recruited as unit manager. Its recruitment procedure is very easy. A person with high educating and well experience can be recruited after a personal interview and group discussion. After the training program is completed the Insurance Agent has to appear for the pre-examination conducted by IRDA. As he clear the exam he provides a license, which is the proof of a legalized insurance Agent, which permits him to deal in his insurance business.1.4.3 RECRUITMENT PROCESS:Steps in recruitment of Insurance Agents Approach to the likely person Appointment as per condition Discuss the topic Give the documents which includes:- Prospectus of the company Brochure Companys plan Questionnaire Collect the document after its completion Forward it to project manager Feed it in the computer as the database Follow up as per conditions

Modes of Contact Personal Contacts References Phone Calls Guidance as per Unit Manager

CHAPTER 3COMPANY PROFILE

3.1 HDFC STANDARD LIFE INSURANCE3.1.1 The IntroductionStandard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity in the joint venture.3.1.2 Our key strengthsFinancial Expertise: As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.Range of Solutions: We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

3.1.3 Promoters of HDFC Standard Life Insurance: 1. HDFC LimitedHDFC is Indias leading housing finance institution and has helped build more than 23,00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. 1. Rated AAA by CRISIL and ICRA for the 10th consecutive year 1. Stable and experienced management1. High service standards1. Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.1. Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.

3.1.4 Standard Life Group (Standard Life plc and its subsidiaries)The Standard Life group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment manager currently administers 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006.3.1.5 Incorporation: Hdfc Standard Life Insurance Company LimitedThe company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.Our ambition from as far back as October 1995, was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance company's in India are measured.

3.2 Our MissionWe aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like- Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share 3.3 Our Values SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this. 3.4 Board of Directors:- Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited).

Mr. Keki M Mistry is currently the Managing Director of HDFC Limited. Mr. Alexander M Crombie is the Group Chief Executive of the Standard Life Group in March 2004. Ms. Renu S. Karnad is the Executive director of HDFC Limited.3.5 PRODUCTS:At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy.For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs.For organizations we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.Individual Products We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.Investment Plans Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses. Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked YoungstarPlus .Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes Social Products Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to that members beneficiaries to help meet some of the immediate financial needs following their loss. Eligibility Members of the development agency and their spouses with: Minimum age at the start of the policy 18 years last birthday Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members. Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time. 3.5.1 The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members.

Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred

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

CHAPTER - 6RESEARCH METHODOLOGY

6.1 RESEARCH METHODOLOGYResearch: - It is a process of collecting, analyzing, interpreting and summarizing in a significant manner for the purpose of framing out necessary conclusion. To carry research necessary telephonic calls has been done, suitable appointments has been fixed.Objective of training: - To understand life insurance and recruitment of capable life insurance advisors for growth prospects. Process: Methodology or process involving in the Research followed during the course of summer training is as follows: - Collection of data: - This is an important aspect in formulating the objective of research process where the data is collected via two process: - i) Primary Sources and ii) Secondary sources Primary sources: The data is collected primarily by interviewing and questionnaire. Secondary sources: The data is obtained from newspaper, magazines , books and websites Analyzing of collected data: - The data collected through market survey and published sources are then processed to obtained necessary inferences and findings for the purpose of achieving the objective as well as to derive necessary conclusion. Interpreting of data: - It is the significant step where the data collected and analyzed is interpreted in the forms of graphs and figures is depicted in the report. Summarizing of data: - Thereby necessary summary is prepared which is essential in the project report of the summer training being done under an organization. 6.2 Helpful Arms of Research Methodology: - 6.2.1 Questionnaire: - Questionnaire is a set or group of questions being framed for the purpose of obtaining market perspective about a particular aspect or topic.There is two types questionnaire- Open ended Questionnaire: - where the respondents are required freedom to present their views and suggestions for the benefits and success of the organization. Close ended questionnaire: - where the respondents is limited to the choice of answer being delivered by the interviewer itself so that quick and fast means of responses be derived out without wasting much time. Here close ended questionnaire being followed by me during the course of the summer training market survey. 6.2.2 Sampling: - Sampling is a process of obtaining a number of individuals taken a base for the entire population. Random sampling: - Random sampling is a process of selecting the sample size randomly and no choice or preference to be made about the selection of respondents for the market survey and questionnaire to be put forth against him. Here, Random sampling being adopted by me.Sample Size: - 105 respondents.

CHAPTER-7ANALYSIS AND INTERPRETATION

7.1 ANALYSIS AND INTERPRETATION

Fig. 1.1From the survey it was drawn that life insurance is more a protection of human asset value against uncertainty (conferred by 51 respondents) where it is a tax saving option (being accepted by 38 respondents). Life insurance is a service involving both these prerequisites as depicted by remaining 16 respondents. The following depicted this:Table 1.1Protection of human asset value against uncertainty 51

Tax benefit device38

Both16

Fig 1.2It has been observed and applied as a Life insurance is an essential service and should be applicable to everyone, as favored by considerable 78 respondents where it is not essential to an extent by 27 respondents from the summer training project survey by putting forth the set questionnaire.

Fig 1.3When further enquired about the qualification of respondents, it was found that 57% of the respondents were graduates, 33% were post graduates and remaining 10% were of higher secondary out of total 105 respondents. Further depicted in the following tabular representation: - Table 1.2Post graduate 35

Graduate59

Senior secondary11

Fig 1.4Further, the age qualification for agency recruitment, it was found that 39% respondents were belonging to 18 25 age group, 35% were belonging to 25 35 age group where as 20% to 35 -45 age group and remaining 6% to above 45 age group. Also depicted in the following tale mentioned below: - Table 1.318-25 age group41

25 35 age group37

35 45 age group21

Above 45 age group6

Fig 1.5Respondents had different views about the dissatisfaction from the present status of working or occupation. Dissatisfaction has been depicted in a table below and graphically above: Table 1.4Low Employment23

Low Earning34

Low status17

Huge capital Investment16

Fig 1.6When asked about whether they would like to know about a glorified career in life insurance agency where they can fulfill any and every desire of their life, 59 respondents agreed while 46 respondents said No and will see later sometime in future. It has been depicted that life insurance sector should be promoted at the wide extent as it contribute to the economy as a useful source beneficial for both nation as well as is citizens.

Fig 1.7Indeed Life insurance is a noble business as it provides a needful financial support in the situation of fatal calamity where the family is deprived by the fact to live in future and sustains their living. When surveyed about life insurance as a noble service. 89 respondents agreed and believe that insurance is a bettering service to human life and society as a whole where as 19 respondents show disagreement.

Fig 1.8From the 59 respondents who agreed to know about the life insurance as a career, 18 of them agreed to join HDFC Standard life insurance for agency and come to the company for more information whereas 41 still took time to think and postponed to some future date. People are highly dissatisfied from the earning, status and living standard they are sustaining at present and would definitely like to make some additional source of earning and for this agency for life insurance would prove a boon.

Fig 1.9From all 105 respondents, 92 agreed that life insurance sector is a growing concern and will grow at a rapid pace in future where as 13 took as a mere stagnant industry. Financial services are growing at a tremendous pace as people are urging to make their investment in lucrative opportunities and therefore life insurance sector is playing a vital role in educating the people to make their investment which could secure their future, needs and living despite some fatal calamity that might or might not occur.

Fig 1.10Among 74 respondents from 105 respondents favored the privatization of the life insurance and perceive that the people of India will know be more aware and knowledgeable with respect to life insurance than that in the past 50 years with the working of LIC. The myth of LIC since it is a Government concern is still continue to prevail even though people have become more advanced and they can invest their hard earned money after undertaking their pros and cons and company position in the market.

CHAPTER - 8FINDINGSANDINFERENCES

8.1 FINDINGS AND INFERENCESIt has been found that life insurance is an essential service and should be applicable to everyone, as favored by majority of respondents.Majority of respondents agreed and believed that insurance is a bettering service to human life and society as a whole.When asked about whether they would like to know about the glorified career in life insurance agency, majority of respondents agreed.Majority of respondents agreed to opt the life insurance as a career, some of them agreed to join HDFC STANDARD LIFE INSURACE FOR AGENCY.From all respondents, majority of respondents agreed that life insurance sector is a growing concern and will grow at a rapid pace in future.

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CHAPTER 9LIMITATIONS

Limitations

1. The study is limited to HDFC Standard life insurance..

2. Study is limited to selected group from the main stream of the organization.

3. Sample size is limited to 105 respondents, Problems with confidential information.

4. The responses would have also been affected by the amount of work and working conditions.

5. Study includes both collections of data from primary as well as secondary sources.

6. There is a high chance of sampling error.

CHAPTER 10RECOMMENDATIONS

10.1 RECOMMENDATIONSFollowing are suggestions made for the benefits and augmentation of the sound working of the company HDFC Standard life insurance: 1. Need to train and develop life insurance agents with more comprehensive knowledge and skills to counter every queries of the customer. 2. It is suggested that company should not left any stone unturned towards sound advertisement and promotional measures on every section whether it is printed, media or or air via radio. 3. It is also suggested that skilled management graduates need to be places on sales and marketing of financial servies who can render their best ideas for the accomplishment of the company goals and objectives to the best extent. 4. Also, care need to be taken that every customers grievance should be met with delight whether before purchase or after sales.5. There should be an expansion measure for more offices and 6. Location of more centers for offices of the company be established sop that company may grow its network. 7. there should more advanced measures are required to develop to capture the needs of customer so that they can be inspire and motivated to invest in the life insurance products being provided by the HDFC Standard life insurance.8. Life insurance Products should be made flexible so as to suit every section of society.

CHAPTER 11CONCLUSION

11.1 CONCLUSIONSummer training is a best example for a trainee to learn about the company working, corporate culture under which is operating the functions. HDFC standard life insurance is a life insurance company under which I gained a significant knowledge with respect to life insurance, its importance and applicability as well as undertook the task to recruit capable life insurance advisors which is conducive for the company to grow with more prosperity. What I taught in the management institute utilized them fruitfully leading to the best advantage to the company and to the best experience for mine.At far I can conclude that life insurance is a noble service which is very important for every citizen to learn and realize its importance because this is the only source which can remain the status where one is with the family bread earner and ever when he is not.With the growing financial sector I would like to opt this industry for my future career advancement and as an opportunity to service this industry.

BIBLIOGRAPHYFollowing are sources which helped me during my summer training: 1) BOOKS:KOTHARI C.R.: Research Methodology Management, 3rd Edition KOTLER PHILIP: Marketing Management 11th Revised edition, 2002GUPTA S.P.: Statistical Methods Thirteen revised edition, 20012) MAGAZINES:India TodayBusiness World3) WEBSITES: www.hdfcinsurance.comwww.irdaindia.orgwww.liccouncil.orgwww.businessconnect.com

ANNEXURE

QUESTIONNAIREName: -Age:-Location: - Occupation: -

Q.1. What do you mean by life insurance?a) Protection of human asset value against uncertainty b) A sum received after death c) Both Q.2. Do you think life insurance is essential for every one?a) Yesb) No

Q.3. What is your qualification?a) Post graduate b) Graduate c) Senior secondary Q.4. Do you come under:a) 18-25 age group b) 25 35 age group c) 35 45 age group d) Above 45 age group Q.5. What dissatisfied you most in your occupationa) Low employmentb) Low earning / income c) Low status d) Huge capital investment e) All of the above

Q.6. Would you like to know about a career in life insurance advisor ship where you can fulfill every desire of your life?a) Yesb) NoQ.7 Do you perceive that life insurance business is a noble service oriented business?a) Yesb) NoQ.8. Would you like to become or opt for life insurance advisor under esteemed and prospering organization HDFC Standard Life insurance?a) Yesb) No

Q.9. Do you agree that the life insurance business is a growing industry and will grow and rapid pace in future?a) Yesb) NoQ.10. Do you favor the privatization of life insurance by the Government where a significant number of companies now in the market for life insurance to the customers with the alliance of multinationals?a) Yesb) NoSuggestions: - 1. 2. 3. 4. 5. HDFC STANDARD LIFE INSURANCE

GLOSSARYApplication for insurance: This is the form on where you state information and answer questions from the insurance company about yourself and your history. This application along with information from a medical examination, if taken, from your physicians, any hospitals you may have visited and investigation are what's used by the insurance company to decide whether or not to offer you life insurance and at what rate.Accident Benefit: A rider or an add-on with a life policy. It compensates a policyholder in the event of death or injury by accident Annuity: An investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premium. Appreciate: To grow in value Asset: Everything owned or due to a person Asset allocation: How your investments are spread across various asset classesBeneficiary: The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.Bond: It is like an IOU. By buying a bond you loan money to a company, a municipality, state or the Central Government Bonus: The amount paid as return in a with-profit policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared Budget: It is a tool used to monitor and control expenditures and purchases. Cash (Surrender) Value: The amount that is available in cash for loans and that may be available for withdrawals in a whole life insurance, universal life insurance or survivorship life insurance policy. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse.Contestability, Contestable Clause: In insurance there is a clause, which explains the conditions under which the insurer may contest or void the life insurance policy. This contestability is for a limited period of time, which in most states is two years. After that period of time the insurance company cannot contest the policy.Convertible Term Insurance: Term insurance which can be exchanged (converted), at the option of the policy owner and without evidence of insurability, for a whole life insurance policy or universal life insurance policy. Capital gains: Profit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year. Compound Interest: Interest computed on principal plus interest accrued during the previous periods of the investment Critical illness rider: A rider that provides a policyholder financial protection in the event of a critical illness Death benefit: The amount payable to the nominee on death of the policyholder. The amount paid is the sum assured plus benefits applicable (if any) less outstanding loans. Declining term cover: A type of pure life protection insurance policy where the premium remain the same while the life coverage keeps declining. Disability / dismemberment benefit rider: A rider that provides for additional cover in the event of disability, or dismemberment, of the policy holder due to an accident Dividends: Payments made by companies and mutual funds to shareholders and unit-holders, respectively, from the income generated by it. Dividend yield: The percentage of dividend paid on a share to the value of the share. Emergency fund: The money, in the form of liquid investments in bank savings accounts, 2-in-1 accounts and liquid funds to take care of emergencies like a job loss not covered by insurance policies.Endowment plans: An insurance plan that provides a policyholder risk cover and some return on investment. Effective rate of interest: The true rate as against the nominal rate, which may be incorrect. Equity: The actual ownership interest in a specific asset or group of assets Financial planning: It covers the essential elements of a persons financial affairs and is aimed at achieving a persons financial goals. Fixed deposit: Funds placed on deposit in a bank, company or post office at a fixed rate of interest. Face Amount: The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.Fixed-income investment: Any investment that provides a stated percentage of value, say 6 per cent, on the invested amount. Group Insurance: An insurance policy taken out by employers to provide life cover to their employees. Cheapest form of insuranceGuaranteed additions: The amount paid as returns in assured-return insurance plans. Guaranteed additions are expressed as a percentage of the sum assured, with the amount payable being stated by the insurer at the outset. Grace Period: Life insurance premiums are due on a certain date, if you are late in paying, policies allow a period of time where you can still pay your premium and not lose your policy. This is the grace period. Most policies allow a grace period of 30 days from the due date. After the grace period, if the premium is not paid, the policy can lapse i.e. be terminated by the insurance company.Insurability: Acceptability to the company of an applicant for insurance. Where Insured or Insured Life: The person on whose life the policy is issued.Immediate annuity: An annuity that starts payments immediately after, or soon after, the first premium is paid Index fund: A scheme whose portfolio mirrors the progress of a particular index, both in terms of composition and individual stock weight ages. Its a passive investment option, as a funds performance will mimic the index concerned, barring a minor tracking error. Insured: The policyholder Insurer: The insurance company Investments: Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return Investment risks: The risks that your investments face. These include the risk of interest rate fluctuations impacting your debt investments or the prices of equities going down.Key person life insurance: When one has a key person in a business without whom the business would suffer financially, key person life insurance is often purchased which helps to reimburse the company for the business loss incurred by the death of this person.Level Premium (Life Insurance):Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a reserve is a natural result of level premiums. The payments in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.Level term cover rider: A rider that increases the life cover in non-term plans, up to a maximum of the sum assured on the base policy. The rider offers death benefit along, and serves the need for extra protection for a specified time period. Life annuity: An annuity that makes regular income payments till the policyholder is alive. On the policyholders death, all income payments cease and there are no beneficiary benefits. Liquidity: The quality of assets that can be easily and quickly converted into cash without any, or significant, loss in value. Loyalty additions: Additional benefits (other than guaranteed additions/bonus) paid to policyholders on maturity of certain investment-based insurance plans for staying on through its term. Lock-in period: The period of time for which investments made in an investment option cannot be withdrawn.

Life Expectancy: The average number of years remaining for an individual to live shown at each age based on long term studies by insurance companies. These statistics as shown on charts called mortality tables..Life Insurance: A contract between an owner (often the insured person) and a life insurance company that guarantees the payment of a stated amount of money on the death of the insured.Loan (Policy Loan): A loan made by a life insurance company from its general funds to a policy owner on the security of the cash value of a policy.Market value: The monetary value an asset will fetch if sold in the market today. Maturity date: The date on which a policy term or fixed-income investment like fixed deposit or bond comes to an end. Money-back plans: A variant of endowment plans where survival benefits are disbursed through the policy term, than paid lump sum. Net asset value (NAV): A schemes NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued. Nominee: The person(s) nominated by the policyholder to receive the policy benefits in the event of his death.Participative plans: with-profit policy Pension Plan: Investment products offered by insurance companies and mutual funds that required the investor to make defined contributions over regular periods, mostly every year. The contributions are invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through regular pay-out options. Periodic payment investments: Investment options that have payouts in fixed intervals. For example, money-back life insurance policies.Permanent partial disability: Permanent loss of any body part, one eye, one limb or one finger or a toe, or injuries that render the insured in capable of earning an income from the date of the accident onwards from any work, occupation or profession. Permanent total disability: Permanent loss of use of any two limbs, or permanent and complete loss of sight in both eyes or any other injury that renders the insured incapable of earning an income. Policy: The legal document issued by an insurance company to a policyholder that states the terms and conditions of an insurance contract. Policyholder: The person who buys an insurance policy as insured. Policy term: period for which an insurance policy provides cover Post office schemes: Also known as Small Savings schemes, they are offered at post offices and carry the highest returns among fixed income instruments. Government backing makes these instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme (POMIS) risk-free Premium: The amount paid by the insured to the insurer to buy cover Recurring deposit: This is offered both in post office and banks where you are required to contribute a fixed amount ever month. It is a great tool for making small and regular savings. Revolving credit: A pre-established credit line, typically in a credit card, against which a person may borrow to make purchases. Riders: Additional covers that can be added to a life policy, for a cost Sum assured: The amount of cover taken under a life insurance policy, it is the minimum amount that will be paid on death of the policyholder during the policy term. Surrender value: The amount payable by the insurer to the owner of an investment-based plan in case he opts to terminate the policy after three years (the mandatory lock-in period) but before its maturity date. Survival benefits: The amount payable to a policyholder under an investment-based plan if he survives the policy term. Temporary total disability: An injury that results from an accident and renders a person immobile or affects his earning capacity temporarily. Term plans: A plan that provides life cover for a specified period of time, but no return on the premium paid Terminal bonus: one-time bonus paid on maturity via with-profit plan Vesting date: It is a date signifying a milestone in a policy. In pension plans, it is the date from which the policyholder starts receiving pension. In childrens plans, it is the date from which a child becomes the owner of a policy taken out in his name (generally, around his 18th birthday). Waiver of premium rider: A rider that waives the premium payable on the base policy and other riders in certain circumstances mostly related to death, disability or injury. An important feature especially for investment products such as childrens policies.Wealth: The difference between the values of what you own (assets) and what you owe (liabilities). With-profit policy: An insurance plan in which the policyholder gets a share of the insurers profits (in the form of guaranteed additions / bonus). Along with the sum assured.Without-profit policy: An insurance plan in which the policyholder does not get any share of the insurers profits Whole-life plans: Class of life insurance policies that provide cover through your lifetime.Mutual life insurance Company: A life insurance company owned by the policyholders. Policyholders of a mutual life insurance company may participate in the "divisible surplus of the life insurance company as owners. They can receive dividends, most commonly on whole life policies, which can enhance the cash value, increase the insurance amount or lower premiums. Owner of a life insurance policy: A life insurance policy can be owned by the insured person or an individual, a company or a trust with an insurable interest in the insured person. Insurable interest means there would be a financial loss by the owner in the event of the death of the insured person.Paid-up Insurance: Insurance that will remain in force with no need to pay additional premiums.Participating Policy: A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)Permanent Life Insurance: Any form of life insurance except term; generally insurance that builds up a cash value, such as whole life. Universal life and whole life are types of permanent life insurance.Policy Owner: The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.Premiums: Payments to the insurance company to buy a policy and to keep it in force.Renewable Term Insurance: Term insurance which can be renewed at the end of the term, at the option of the policy owner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.Return of premium life insurance: Also known as return of premium term life insurance, this is term life insurance for a period of time where one receives a guaranteed return of premiums paid if you keep the policy for the term period. For example, 20 year return of premium term would guarantee a return of premium paid after you paid 20 years of premium. Most of these policies also give a partial return of premium if you keep the policy for a great part of the years. Second to die life insurance: Life insurance that pays the benefit after two people die. See survivorship life insurance in this glossary.Stock life insurance company: A stock life insurance company is owned by stockholders. Contrast this with mutual life insurance company.Survivorship life insurance: Life insurance purchased on two individuals, usually man and wife, where the life insurance benefit is paid after both individuals have died. This type of life insurance became popular as a solution to paying estate taxes. The estate tax law allowed a couple to delay paying estate taxes until both had died. Thus, survivorship life insurance became popular as a less expensive way for heirs to pay estate taxes. The premiums are less than buying life insurance on one life. By paying premiums now the theory is that one can "pre-pay" the estate taxes because of the lump sum that comes in after the second death. .Term life Insurance: Term insurance is life insurance coverage for a specified period of time. This can be at a guaranteed rate or in some cases a guaranteed rate for a period of time and then a projected rate. Term periods can be for 1 year, 5 years, 10 years, 15, 20 and even 30 years. For example: 30 year level term would guarantee a level premium for 30 years based on a specified death benefit. Term life insurance is usually the least expensive form of life coverage, at least initially. After the initial term period of years, 5,10,15, 20, 30 etc. the policy could terminate or it can renew at a higher premium. If you are allowed to renew it at a higher premium (based on your then attained age), it is called renewable term life insurance. Universal life insurance: Universal life insurance is permanent life insurance with premiums that are not guaranteed. To a certain degree one can "design" a premium on this type of policy. Universal life insurance often can be set up with a lower premium initially than whole life insurance. Premiums and values are based on projections of assumed interest rates, the cost of insurance (also known as mortality cost) and the insurance company's expenses. The actual premium paid may increase because interest rates may go lower or the projected cost of insurance may increase. Waiver of premium: This is an extra or add-in (called a rider in insurance lingo) that can be added to most individual life insurance policies which waives (allows you to stop paying) the payment after the insured person has been disabled (as described and defined in the insurance policy) for a specified period of time, usually six months. At that time, the six months premium paid along with future premium payments are waived.

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