Summer Training Project Report Karann

8/13/2019 Summer Training Project Report Karann

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SUMMER TRAINING PROJECT REPORT

ON

A STUDY OF RECRUITMENT IN

HDFC LIFE

SUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS

ADMINISTRATION

(2012-2013)

OF

GAUTAMA BUDDHA TECHNICAL UNIVERSITY, LUCKNOW

UNDER GUIDENCE OF: SUBMITTED TO: SUBMITTED BY:

MR. NIPUN JOHRI Dr. Ritesh Saxena KARAN ARORA

Shri Siddhi Vinayak Institute Of Management And

Technology


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DECLARATION

I hereby declare that the summer training project report (MBA-0)

entitled RECRUITMENT OF FINANCIAL CONSULTANT IN

HDFC LIFE submitted for partial fulfillment the degree of

MASTER OF BUSINESS ADMINISTRATION is my original

work and the project report has not formed the basis for the award of

any degree, diploma, associate ship, fellowship or similar other titles

it has not been submitted to any other university or institution for the

award of any degree or diploma.


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ACKNOWLEDGEMENTBefore write down anything about my project report I would like to thank

all those people who helped me in the completion of this project.

I am greatly obliged Mr. Nipun Johri (Channel Development Manager)

for given me an opportunity to work in the organization.

I express my sincere gratitude to who gave me an opportunity to complete

my project report on RECRUITMENT PROCESS IN HDFC LIFE for his

able guidance, continuous support and cooperation throughout my project,

without them completion of project was not possible.

I would also like to thank the entire team of HDFC LIFE, for the constant

support and help in the successful completion of my project.

Also, I am thankful to my project guide Dr. Anant kumar

srivastava for his continued guidance and invaluable

encouragement.


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PREFACE

It gives me immense pleasure to present this research project to the readers.

Readers will get this report interesting & easy to get true information.

It studies bins management system in depth. It describes the A study of recruitment and

selection in HDFC LIFE. It describes the difference between HDFCSLIC. & other insurance

companies, which are available in the market.

This report is self-exploratory and every possible effort has been taken to make it

to the point informative.

I hope that this report provides sufficient information regarding my work on the

project. I would consider my efforts to be fruitful if it proves useful to somebody at somelater stage.


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CONTENTS About HDFCSLIC Ltd. About Standard Life Insurance About Standard Life Vision of HDFCSLIC Mission Statement of HDFCSLIC Future plans and values of HDFCSLIC About IRDA Brief overview of Indian Insurance Industry other Insurance Companies in

India

Board of Directors SWOT Analysis of HDFCSLIC Products Insurance the Basics Plans Research Methodology Research Design Analysis and Interpretation Findings Limitation Suggestion Questionnaire Bibliography


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ABOUT HDFCSLIC LtdHDFC Standard Life Insurance Company Ltd. Is one of Indias 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), Indiasleading housing finance institution and a group company of the Standard Life, UK

The HDFC and Standard Life first together for a possible joint venture, to enter

the Life Insurance Market, in January 1995.In October 1995 the companies signed a

three year joint venture agreement. Around this time Standard Life purchased a 5%

stake in HDFC further strengthening the relation. In October 1998, the joint venture

agreement was renewed and additional resource made available.

Towards the end of 1999, the opening of market looked very promising and

both companies agreed the time was right to move the operation to the next level.

Incorporation of HDFC Standard Life Insurance CompanyLimited: The company was

incorporated on 14th

August 2000 under the name of HDFC Standard Life Insurance

Company Limited.

On the 23rd

of October 2000 HDFC Standard Life Company Limited was the

only life insurance company to be granted a certificate of registration.

HDFC are the main shareholder in HDFC Standard Life Company, with 81.4,

while Standard Life own 18.6.


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HDF SLI S KEy StrEnGtHS

Financial Expertise

Standard Life has the financial expertise required to manage customers long term

investments safely and efficiently.

Range of Solutions

Company has a range of individual and group solutions, which can be easily customized

to specific needs. Companys group solutions have been designed to offer customers

complete flexibility combined with a low charging structure.

Track Record so far

HDFCSLIC cumulative premium income, including the first year premiums and renewal

premiums is Rs. 1532.21 Crores Apr-Mar 2005-2006.

Company have covered over 1.6 million individuals out of which over 5,00,000 lives have

been covered through companys group business tie-ups.


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ABOUT STANDARD LIFE INSURANCEThe Standard Life Insurance Assurance Company

Founded in 1825

Mutual Life Insurance Company since 1925

Largest mutual life insurance company in Europe

Assets under management over Rs 707836 crores ( 89.2 bn) Total assets under management : Rs.

707836 Crores

New premium income 2003 :Rs. 76277 Crores

AA2 rated by Standard & Poors and MoodysFinancial Strengths of the company

Total assets under management: Rs. 5, 81,000 Crores

New premium income 2001:Rs. 58,000 Crores

AA2 rated by Standard & Poors and Moodys

About Standard Life

Standard Life has been looking after its customers for over 180 years, and currently over 7 million people

rely on them for their financial needs. We have assets under management which are worth more than

the combined market value of Shell, Reuters, Tesco, Cadbury Schweppes and Marks & Spencer.

Financial Security

Standard Life has the financial strength to remain secure and competitive. We aim to offer products that

provide competitive returns to their customers while maintaining an adequate level of financialstrength

to ensure their security. Like most people, you want to know that your financial future is in good hands.

Standard Life places a great deal of importance on getting your money to work hard for you; that's why

we believe you can have confidence in us.

Standard Life has been awarded the "Raising Standards" quality mark. This shows that we:

use clear language to describe their products on key documents,have appropriate products and

Provide a quality service for our customers.

The quality mark covers products bought by individuals including pensions, long-term savings and

protection. We were independently tested against a number of rigorous standards. And we have to

continue to pass these tests every year to keep using the quality mark.


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Standard Life won the Money Marketing 'Company of the Year' award in March 2005 for the seventh

year running. Other awards the Standard Life group has received include:

Money Marketing Awards

Company of the Year every year from 1999 to 2005

Best Pension Provider 2004 and 2005

Best Group Pension Provider every year from 1998 to 2003

Best Personal Pension Provider every year since 1998 to 2003

Best Life Investment Product Provider 2003 and 2004

Gold Award in the Poster Campaign Category (Advertising) 2004

Money facts Investment, Life & Pensions Awards

1. Best Pension Product 2003, 2004 and 20052. 2. Best Pension Service 2003, 2004 and 2005

Bank hall Achievement Awards

Pension Provider of the Year 2003 and 2004

Financial Adviser Provider Awards

A. Overall Winner in 1999, 2000, 2001 and 2002

B. Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003

C. Pensions Company of the Year 2004

D. Individual Pensions Company of the Year 2004

E. Group Pensions Provider of the Year 2004

F. Health Insurance Company of the Year 2004

Financial Adviser Service Awards

1. Company of the Year every year from 1997 to 2001

2. 5 Star Life and Pensions Provider every year from 1996 to 2004

3. 5 Star Investment Provider every year from 1996 to 2002 and 2004


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Pensions Management Administration and Service Awards

(a) Overall Winner - Personal Pensions 2003

(b) Overall Winner - Stakeholder Pensions 2002 and 2003

(c) Overall Winner - Group Personal Pensions 2002 and 2004

(d) Member Communications - Personal Pensions, Group Personal Pensions & Stakeholder Pensions

2003

(e) Backup (branch office) - Personal Pensions 2003

(f) Backup (head office technical support) - Personal Pensions & Stakeholder Pensions 2003

Pensions Management Technology Awards

Best extranet accessibility 2004

Guardian & Observer Consumer Finance Awards

(a) Overall Winner in Personal & Stakeholder Pension Provider 2003

Professional Adviser Awards

Best Product Provider Website (adviser zone) 2005

Online Finance Awards

Best online Product Provider (ifazone) 2003

Best online Financial Adviser (ifazone) 2002

Head Office- Edinburgh, Scotland (UK)Presence

United Kingdom: 31 branchesCanada 11 "

Ireland 7 "

Germany 1 "

Austria 1 sales office Spain 31 branch Hong Kong 1 representative office

China 2 representative office


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Year Award

2003 Company of the Year


2001 Best Personal Pension Provider


1999 Company of the Decade

1996-99 Company of the year

1995 4 star service award

1992-94 Overall best company

1991 3 star service award1990 Best mortgage services

About the group Companies of HDFC

HDFC HDFC Bank HDFC Mutual Funds HDFC Securities HDFC Realty.com Intel net Credit Information Bureau (India) Limited


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About Standard Life

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 assets

It is a leading pensions provider in the UK, and is rated by Standard & poors as strong.

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 pension peovider 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.

ABOUT HDFC STANDARD LIFE INSURANCE

HDFC Standard LifeThe Pa rtnershipHDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance

market, in January 1995. It was clear from the outset that both companies shared similar values and

beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3-year jointventure agreement.

In October 1998, the joint venture agreement was renewed and additional resource made available.

Around this time Standard Life purchased 2% of Infrastructure Development Finance


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Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department toadvise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies agreed

the time was right to move the operation to the next level. Therefore, in January 2000 an expert team

from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai.

In a further development Standard Life agreed to participate in the Asset Management Company

promoted by HDFC to enter the mutual fund market. The Mutual fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Com pany 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 19954 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 Lifes existing investment in the HDFC Group, this is the maximum investment allowed

under current regulations.

EthicsSECURITY: Providing long term financial security to our policy holders will be our constantendeavor. We will be doing this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policyholders in US.Hence, we will aim to managetheir investment very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of ourcustomers, we will be offering a range ofinnovative 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 guideus in this.

Individual Products

Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of products

and invites you to choose the one that suits you best


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Saving PlansEndowment Assurance Plan

Unit Linked Endowment Plan

Money Back Plan

Childrens Plan

Unit Linked Young star Plan

Investment PlansSingle Premium Whole of Life Plan

Protection PlansTerm Assurance Plan

Loan Cover Term Assurance Plan

Pension PlanPersonal Pension Plan

Unit Linked Pension Plan


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Vision of HDFCSLIC Ltd

The most successful and admired life insurance company, which means that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set

the standards in the industry.

The most obvious choice for all


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Mission statement of HDFCSLIC Ltd

The company aim to be the top 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 services of the highest order.Value for money for customer.Professionalism in carrying out business. Innovative products to cater to different needs of different customer.Use of technology to improve service standard. Increasing market share.


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Future Plans of HDFCSLIC Ltd

To enhance sales by increasing the number of Financial Consultant and corporateagents.

The company is planning to decentralize its underwriting facility.To increase the branches to 500 across the India in upcoming years.

Values of HDFCSLIC

Integrity Innovation

Customer centric People Care One for all and all for one. Team workJoy and Simplicity


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About IRDAWhat is IRDA?

The IRDA Regulations, 2002 deals with the vast area of rights of the investors starting with the rights to

obtain a copy of the proposal, the free look in period in respect of the life policies, a copy of the

concluded policy to be furnished to the client and also the obligations of the insurance company

regarding servicing and extending of the policy, payment of interest in case of delay settlement of the

policy claims, etc.The regulations also prescribe a procedure for settlement of the grievances including the appointments

of the Insurance Ombudsman at specific centers in India. In addition to this, the IRDA Act empowers the

Authority to look into the settlement of the grievances and in cases where the policyholders approach

the Authority directly; the Authority often intervenes with the insurers for the protection of their rights.

Notification

The Authority has been receiving in no. of letters from the members of the public and also from the client

of insurance companies regarding the protection of the policies under the current regulations. Often

time question are also raised about the credibility of the insurance companies in the private sector as to

whether they will continue to function in India in the future also to discharge liabilities.

The Authority has been taking steps to indicate to the general public that no company can carry on any

business in India without being registered with the IRDA. The process of registration is very long and

strict process where the credibility of he applicants is assessed in regard to their ability of continuing the

business, their commitment to the Indian market and their financial strength. In addition, before the

product is launched in the market by Insurance Companies the proposal of the product along-with the

entire related document is to be filed with the Authority for the period of thirty days. The Authority

makes sure from the proposal of the product filed with it that is the product issuitable for the Indianmarket and fulfills all the requirement of the market.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA, which

was constituted by an act of parliament) specify the composition of Authority


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The Authority is a ten members team consisting of

1. A Chairman;

2. Five whole-time members;3. Four part-time members;

(All appointed by the Government of India)

Duties, Powers and Functions of IRDA

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

(1) Subject to the provisions of this Act and any other law for the time being in force, the authority shall

have the duty to regulate, promote and ensure orderly growth of the insurance business and re-

insurance business.

(2) Without prejudice to the generality of the provision contained on sub-section (1), the powers andfunctions

Authority shall include

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel suchregistration.

Protection of the interests of the policy holders in matters concerning assigning of policy, nomination

by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and otherterms and conditions of contracts of insurance.

Specifying requisite qualifications, code of conduct and practical training for intermediary of insurance

intermediaries and agents.

Specifying the code of conduct for surveyors and loss assessors.

Promoting efficiency in the conduct of insurance business.

Promoting and regulating professional organizations connected with the insurance and re-insurance

business.

Levying fees and other charges for carrying out the purposes of this Act.

Calling for information from, undertaking inspection of, conducting enquiries and investigations

including audit of the insurers, intermediaries, insurance intermediaries and other


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organizations connected with the insurance business.

Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers

in respect of general insurance business but so controlled and regulated by the Tariff Advisory

Committee under section 64U of the Insurance Act, 1938 (4 of 1938).

Specifying the form and manner in which books of account shall be maintained and statement of

accounts shall be rendered by insurers and other insurance intermediaries.

Regulating investment of funds by insurance companies.

Regulating maintenance of margin of solvency.

Adjudication of disputes between insurers and intermediaries or insurance intermediaries.

Supervising the functioning of the Tariff Advisory Committee.

Specifying the percentage of premium income of the insurer to finance schemes for promoting and

regulating professional organizations referred to in clause (f).

Specifying the percentage of life insurance business and general insurance business to be undertakenby the insurer in the rural of social sector

Exercising such other powers as may be prescribed.


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Brief overview of Indian Insurance Industry OtherInsurance Companies in India

Aviva Bajaj Allianz Birla Sun Life ICICI Prudential Ing Vysya Life Insurance Corporation Max New York Life Melife India Om Kotak Mahindra Reliance Life Insurance SBI Life Insurance Tata AIG

AVIVAAviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of

India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint

venture and the Dabur group holds the balance 74 per cent share.

Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of

life and pensions products to Europe and has substantial businesses elsewhere around the world.

Aviva pioneered the concept of Banc assurance in India. Currently, Aviva has Banc assurance tie-ups withABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas

Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and

Maharashtra and one regional Bankin Sikkim. Aviva has 40 Branches in India (including rural branches)supporting its distribution network. Through its Banc assurance partner locations, Aviva products are

available in 378 towns and cities across India.


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Bajaj AllianzBajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance companies, and

Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life

insurance and general insurance.

Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in

Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the

largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has

presence in more than 550 locations with over 60,000 Insurance Consultants.

Birla Sun Life Insurance Company LimitedBirla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life

Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India,

Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun

Life Financials primary insurance business, is one of the leading insurance

companies of the world and ranks amongst the largest international financial services organizations in

the world.

The Group has presence in several countries such as Canada, United States, Philippines, Japan,

Indonesia, India and Bermuda.

ICICI Prudential Life InsuranceICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial

powerhouse and prudential plc, a leading international financial services group headquartered in the

United

Kingdom.ICICI was established in 1955 to lend money for industrial development.Today, it has diversified intoretail banking and is the largest private bank in the country. Prudential plc was established in 1848 and

is presently the largest life insurance company in the UK


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ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended

March 31, 2005, the company garnered Rs1584 crore of new business premium for a total sum assured

of Rs 13,780 crore and wrote nearly 615,000 policies.

ING VysyaING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of

Holland, the world's 4th largest financial services group, with presence across 50 countries, and a

heritage of over 150 years.

ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in

September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive

growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities)

across the country and over 2300 employees.

MAX NEW YORK LIFEMax New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-

business corporate, and New York Life International, a global expert in life insurance.

New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance

business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom

Services, and Specialty Plastic Products businesses.Max New York Life Insurance started its operations in India in 2000. It is the first life insurance company

in India to be awarded the IS0 9001:2000 certifications. Max New York offers customized products

tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product

combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread

over 37 cities all over India.

METLIFE INDIAMetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The

Indian pars include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities,

Way2Wealth, and Mini Muthoothutner.

Met Life Group has presence in America and Asia and has an experience of over 137 years in providing

financial services. The MetLife companies are the number one life insurer in the U.S.


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with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred

FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001.

Life Insurance Corporation of IndiaLife Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance

business in India with its Head Office at Mumbai. It has been established by an act of the Parliament andstarted functioning from 1/9/1956.LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated

by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051

crore.

In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC hasshown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market

share in number of individuals covered and number of policies stands at 77% and 81%, respectively.

Om Kotak Mahindra Life InsuranceKotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank

Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers

a range of financial services such as commercial banking, stock broking, mutual funds, life insurance,

and investment banking.Old Mutual was established more than 150 years ago and offers a diverse range of financial services in

South Africa, the United States and the United Kingdom. The company is listed on the London Stock

Exchange with a market capitalization and has its headquarters in London.

Reliance Life InsuranceReliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai

Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life InsuranceCompany in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade

infrastructure and a portfolio.

AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group.

Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more

than 900 employees.


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SBI Life InsuranceSBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life

Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 350 crores.

State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group

has a network of over 14,000 branches across the country, the largest in the world.

Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of

the oldest foreign banks with a presence in India dating back to 1860.

TATA AIGTata AIG Life Insurance Company Limited is a joint venture between Tata Group and American

International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India.

Tata Group has had a long association with India's insurance sector having been the largest insurance

company in India prior to the nationalization of insurance. The Late Sir Dorab Tata, was the founder

Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919.

American International Group, Inc is the leading U.S. based international insurance and financial services

organization and the largest underwriter of commercial and industrial insurance in the United States.

AIG has one of the most extensive life insurance networks in the world.

HDFC Standard Life InsuranceHDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing

finance institution and Standard Life Assurance 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.

Standard Life, UK was founded in 1825 and has experience of over 180 years Companies. The company is

rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2).

HDFC Standard Life's cumulative premium income, including the first year premiums and renewal

premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far the company has covered over

11, 00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with profit'

policyholders.


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BOARD OF DIRECTORSBoard of d i rectors

Brief prof i le of the 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). He joined HDFC Limited in a senior

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

was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr.

Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the

Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director

in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the

Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public

Accountants.

Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with

the Standard Life Group for 34 years holding various senior management positions. He was appointed as

the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the

Faculty of Actuaries in Scotland.

Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is

responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate

Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November

2005.

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is

responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr.

Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief

Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing DirectorInternational Equities. He was also responsible for Economic and Investment Strategy research produced

on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered

Accountants of India. Mr. Divan was the Former Chairman and Managing Committee .


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Environmental Scan

Internal Analysis External Analysis

Strength Weakness Opportunities Threats

SWOT Matrix

SWOT A nalysis of HDFCSLIC

Strength

Covered vast area High grade product Efficiency and effective Management Information On-line program control Improve customer orientation


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Weakness

Not optimum utilization of available resources Product promotion is not good The company cannot cash the opportunities

Opportunities

Available of lives and resource is sound The literacy regarding life insurance is increase by the government campaign.

Threats

Current per capital consumption of policies in India is far less than other countries High power tariff, increasing prices of administrating products have added to the woes of

domestic industry competing with abroad enjoying advantage of economies of scale, advanced

technology, low cost of finance, cheaper power tariff etc.


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Checklist for Performing Strengths/Wea kness Analysis

Performance Importance

Major

streng

th

Minor

streng

Th

Neu

tral

Major

weak

ness

Minor

weak

ness

High Medi

um

Low

Marketing

Company

reputation

Market share Customer

satisfaction

Customer

retention

Product

quality

Service

quality

Distribution

effectiveness

Promotion

effectiveness

Sales force

effectiveness

Geographical

coverage


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The products of HDFCSLICHDFC 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 of

your family.

Protection plans:-

Term Assurance Plan Loan Cover Term Assurance Plan

Investment Plans:-

Single Premium Whole Life PlanPension Plan:-

Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus Plan

Saving Plans:-

Endowment Assurance Plan Unit Linked Endowment Plan Unit Linked Endowment Plus Plan

Money Back Plan Childrens Plan Unit Linked Youngster Plan Unit Linked Youngster Plus Plan


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What is life Insurance?Life insurance is a contract for payment of money to the person assured on the occurrence of theevent insured against.

Usually the contract provides for-

Payment of an amount on the date of maturity or at specified periodic intervals or at the death, if

it occurs earlier, periodical payment of insurance premium by the assured, to the corporation

who provides the insurance.

Who can buy a life insurance policy?Any person above 18 years of age, who is eligible to enter into a valid contract, Subject to certain

conditions, a policy can be taken on the life of a spouse or children.

What is a Whole Life Policy?When most people think of life insurance, they think of a traditional whole life policy. These are

the simplest policies to understand: you pay a fixed premium every year based on your age and

other factors, you earn interest on the policys cash value as the years roll by, and your

beneficiaries get a fixed benefit after you die. The policy takes you into old age for the same

premium you started out with. Whole life insurance policies are valuable because they provide

permanent protection and accumulate cash values that can be used for emergencies or to meetspecific objectives. The surrender value gives you an extra source of retirement money if you

need it.

What is an Endowm ent policy?Unlike whole life, an endowment life insurance policy is designed primarily to provide a living

benefit and only secondarily to provide life insurance protection. Therefore, it is more of an

investment than a whole life policy. Endowment life insurance pays the face value of the policy

either at the insureds death or at a certain age or after a number of years of premium payment.

Endowment life insurance is a method of accumulating capital for a specific purpose and

protecting this savings program against the servers premature death. Many investors use

endowment life insurance to fund anticipated financial needs, such as college education or

retirement.


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What is a Money Back Policy?This is basically an endowment policy for which a part of the sum assured is paid to the policy

holder in the form of survival benefits, at fixed intervals, before the maturity date. The risk cover

on the life continues for the full sum assured even after payment of survival benefits and bonus is

also calculated on the full sum assured. If the policy holder survives till the end of the policy term,

the survival benefits are deducted from the maturity value.

WHat IS LIFE InSuranCE Life Insurance is a contract between you and a life insurance company, which provides your

beneficiary with a pre-determined amount in case of your death during your contract term.

Buying insurance is extremely useful if you are the principal earning member in the family. In

case of your unfortunate premature demise, your family can remain financially secure because of

the life insurance policy that you have purchased.

The primary purpose of life insurance is therefore protection of the family in the event of death.

Today insurance is also seen as a tool to plan effectively for your future years, your retirement,

and for your childrens future needs. Today, the market offers insurance plans that not just cover

your life and but at the same time grow your wealth too.

SCOPE OF INSURANCE

Why does Person need Life Insurance?

Life Insurance is designed to protect person and his family against financial uncertainties that

may result due to unfortunate demise or illness. Person can also view it as a


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comprehensive financial instrument as a part of person financial planning offering you savings &

investment facilities along with cover against financial loss. By choosing the right policy as per

for persons self and there loved ones. Persons needs i.e. customized solutions; people will be

able to plan for a secure future.

Choosing the right plan

Identifying the right plan basis persons needs is the first step towards insurance planning.

At HDFCSLIC help person through this decision by identifying your various needs and offering

plans that are customized for you. You may also choose a plan for yourself by identifying the life

stage you are at.

Need for Life Insurance

Risks and uncertainties part of lifes great adventureaccident, illness, theft, natural disaster- they are

all built into the working of the Universe, waiting to happen.

Insurance then is mans answer to the vagaries of life. If you cannot beat man -made and natural

calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties the insurer and the insured. Wherein the insurer agrees to

pay the insured for financial losses arising out of any unforeseen events in return for a regular payment

of premium. These unforeseen events are defined as risk and that is why insurance is called a risk

cover.

Hence, insurance is essentially the means to financially compensate for losses that life throws at people

corporate and otherwise.

Analyzing Needs :-

Protection-Need for a sound income protection in case of persons unfortunate demise.

Investment-Need to ensure long term real growth of persons money.

Saving-Save for the milestones and protect persons savings too.


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Pension- Need to save for a comfortable life post retirement.

Once person have analyzed their needs as per above classification, person need to then ascertainimportant factors such as type of cover, insurance amount as per ones income, life stage and

dependents.

Roles of Life InsuranceRole :Life Insurance as InvestmentInsurance is an attractive option for investment. While most people recognize the risk hedging and tax

saving potential of insurance, many are not aware of its advantage as an investment option as well.

Insurance products yield more compared to regular investment options, and this is besides the added

incentives offered by insurers.

You cannot compare an insurance product with other investment schemes for the simple reason that it

offers financial protection from risks, something that is missing in non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk.

Thus, before comparing with other schemes, you must accept that a part of the total amount invested in

life insurance goes towards providing for the risk cover, while the rest is used for savings.In life insurance, unlike non-life products, you get maturity benefits onsurvival at the end of the term. Inother words, if you take a life insurance policy will come back to you with added returns. In the

unfortunate events of death within the tenure of the policy, the family of the deceased will receive the

sum assured.

Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

Role 2:Life insurance as Risk coverInsurance provides you with that unique sense of security that no other form of investment provides. By

buying life insurance, you buy peace of mind and are prepared to face any financial demand that would

hit the family in case ofan untimely demise.Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. Anaccident or disability can be devastating, and an insurance policy can lend timely support to the family in

such times.

It also comes as a great help when you retire, in case no untoward incident happens during the term of

policy.


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Role 3:Life insurance as Tax planningInsurance serves an excellent tax saving mechanism too. You will be eligible for tax benefits undersection 80C and Section 10(10D) of the Income Tax Act 1961.

Under Section 80C, you can save up to Rs. 33,600 from your tax each year as premiums up to Rs.

100,000 are allowed as a deduction from your taxable income.

Under Section 10 (10D), the benefits you receive from this policy are completely tax-free subject to the

exclusions.

WHat IS tHE CHILDrEns Plan?Childrens Plan is designed to provide a lump sum to the child as maturity. It also provides beneficialsecurity to the child in the future, even in the case of insured parents unfortunate death during the

policy term. Childrens Plan receives simple reversionary bonuses, which are usually added annually. This

is the flexible plan with three options for consumer to choose from, depending on customer

requirements. The details of these options are explained in the next section.

Exclusions:-

No benefit will be paid if the death has occurred directly or indirectly as a result of suicide

within one year from the date of first being covered under the policy.

HDFC SLIC will not pay health benefits if the critical illness has occurred within 6 months of the

start of the contract.

HDFC SLIC may not pay health benefits if HDFC SLIC does not receive a duly completed claim from within

26 weeks of the illness, disability, operation or other circumstances giving rise to the claim.

HDFC SLIC will not pay health benefits if the critical illness is caused directly or indirectly.

EXCLUSIONS

The following exclusions applies.

HDFC SLIC will not pay any benefit if the death of the life assured has occurred directly or indirectly as a

result of suicide within one year of the date of commencement or the date of issue, if later and the policy

will lapse without any value.


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What is Unit Linked Young Plan?HDFC SLIC future of customer child is most important to him/her. Customer need to plan today to ensure

a bright future for customer child, whenever it is education, marriage or establishing a professional

career. To help customer save for customer child, HDFC SLIC at HDFC Standard Life, present the HDFC

Unit Linked Young Star Plan.

The plan is affordable, customized to customer needs and above all, enables customer to realize its

dreams for customer child. This plan is HDFC SLIC well suited for the value conscious customer, and

above all, for every loving parent. The plan can also be chosen by grandparents, other relatives or any

adult for the benefit of the child.

What is Unit Linked Young Star Plan?

HDFC Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It also

provides financial security to the child in the future, even in case of the insured parents unfortunate

death during the policy term. The Unit Linked Young Star Plan also gives the option of additional

protection against the six common critical illness.

Customer premiums are invested in units of the investment funds of customer choice, based on

prevailing unit prices. On maturity the value of the units will be paid. On death (or critical illness, if

chosen) the selected basic sum assured is paid, and the policy continues until maturity.

Minimum Age at Entry 18 years

Maximum Age at Entry 60 years

Maximum Age at Maturity 75 years

What are customers premiums?

Minimum Term: 10 years Maximum Term: 25 years

Customers agree to pay a level premium regularly, either quarterly, half-yearly or annually, throughout

the term of the policy.


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What are the payment options?

Customers have the choice of paying the premium either in yearly, half yearly or quarterly modes,

depending on consumers convenience.

The minimum premium amount is Rs. 10,000 each year.

Can consumer switch my monies to any fund?

Customer can switch customer existing investments from customer any of customer unit linked funds, to

any other available unit linked fund.

The death benefit will pay the basic sum assured on death of the life assured during the policy term.Following payment of this benefit, no further premiums are due from the policy holder.

Premium redirection instruction to redirect future premiums to different unit linked funds.

Life and health option

This option consists of a Maturity benefit, a Death Benefit and an extra Health Benefit.

What are the Benefits?

The Maturity Benefit will pay the value of the unit linked fund at the end of the policy term.

The Death Benefit will pay the basic Sum Assured on death of the life assured during the policy term.

Following payment of this benefit, no further premiums are due from the policyholder and the Extra

Health Benefit will lapse without value.

The Extra Health Benefit will pay the basic sum assured on diagnosis of anyone of six critical illnesses

during the policy term. Following payment of this benefit, no further premiums are due from the

policyholder and Death Benefit will lapse without value. The illness covered under this benefit are

cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as

recipient) and stroke.


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What levels of protection are available?

Depending on customer age at entry, customer may choose between 3 levels cover low, medium or high.

For each level the Sum Assured is based on the annual amount of premium customer choose at

inception.

The level of sum assured can be reduced during the life of the contract but restricted to the available

multiples of annual premium chosen at the inception of the policy and using the age of the life assured

at entry.

Here are 2 different options available:

Life Option

This option consists of a Maturity Benefit and a Death Benefit.

The Maturity Benefit will pay the value of the unit-linked fund at the end of the policy term.

Is customer eligible?

Minimum

Term

Maximum

Term

Minimum

Age at

Entry

Maximum

Age at Entry

Maximum Age at

Expiry

Life

Option

Life and

HealthOption

10

10

25

25

18

18

60

55

75

65

Can customer alter the level of premiums?


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Regular premiums can be increased at any time.

If needed, the policy holder can reduce the regular premium levels (even to zero i.e. the policy is

converted to pay up status) provided:

3 years of regular premiums have been paid.

The monetary value of the unit holding across all funds is at least Rs 15,000.

Customer can pay additional single premium top-up at any point of time.

What happens if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract term. The amount

payable will be the unitized fund have after applying additional surrender charges mentioned below.

What happens if customer stops paying premiums?

This product has a grace period of 15 days for the payment of each premium after the initial premium.

If customer stop paying premiums, before customer have paid 3 years of annual premiums, HDFC SLIC

will cancel customer policy and return to customer the value of customer unitized fund, less cancellation

charges.

Who is entitled for the benefits?

The child is beneficiary under the policy in case the child is a minor, the proceeds should go to the

appointee. Once the child attains 18 years of age, he will be the sole person entitled to the policy

proceeds.

Challenges

HDFC SLIC will deduct charges from the policy to cover HDFC SLIC costs.

The unit price each day will include a fund management charge. This charge is 0.80% of the fund value

per annum taken on a daily basis.

A flat fee of Rs 15 per month will be deducted by cancellation of units on each monthly charge date. This

will be proportioned across funds according to the fund holdings at the time of cancelation of units.


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Alteration to Challenges

No changes can be made to HDFC SLIC current charges without prior approval from the Insurance

Registery and Development Authority.

The following are the maximum caps on each of the different type of charges:

The fund management charge will not exceed 2% per annum.

The flat fee can be altered from the value at inception increased in line with inflation subject to a

maximum of 5% per annum over the period since inception.

Exclusions

No benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one

year from the date of first being covered under the policy.

HDFC SLIC will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the

start of the contract. HDFC SLIC may not pay Extra Health Benefits if HDFC SLIC do not receive a dully

completed claim from within 26 weeks of the illness, disability, operation or other circumstances giving

rise to the claim.


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What is Money Back Plan?It is a participating (with profits) insurance plan that offers the following features: 0 payment of cash

lump sums, each of which is a population of the basic sum assured, at 5-year intervals during the term of

the policy.

On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less

the cash lump sums paid earlier is provided.

In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured

plus any bonus additions is provided.

Why should customer buy this product?

This plan helps customer plan for future anticipated expenses by paying periodic cash lump sums to

customer at regular intervals. This plan also helps provide for the needs of customer family in its absence

by paying them the basic sum assured plus any bonus additions in the event of its unfortunate death

during the term of the policy.

What optional benefits are available with this plan?

The sum assured is payable if customer survive for 30 days after the date of claim. Once such a claim has

been met, no further critical illness benefit is payable.

However, customer basic policy continues even after HDFC SLIC pays a claim on this benefit.

Accidental Death Benefit (ADB) provides an additional amount equal to the basic sum assured in case

customer die:

- Due to an accident, and- Within 90 days of the accident.

Is consumer eligible?

This plan can be taken on a single life basis or a joint life (first claim) basis.


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Customers have the choice of paying customer premium either in yearly or quarterly modes, dependingon customer convenience.

Who is HDFC SLIC?

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC, Indias largest housing finance

institution and Standard Life Assurance Company, Europes largest mutual life company. HDFC manages

Rs.28,000 crore in assets and Standard Life manages US $ 100 billion in assets. Both the promoters are

HDFC SLIC known for their ethical dealings, their financial strength and their commitment to be a longten player in the life insurance industry all important factors to consider when choosing customer

insurer.

Whom should customer contact?

HDFC SLIC has appointed Certified Financial Consultants who have successfully appeared in the

examination held by the Insurance Institute of India and have now been duly licensed by IRDA. They will

explain HDFC SLIC palns to customer and advise customer on the correct insurance solution that willmeet customer needs.

Exclusions

The following exclusions applies:

Critical illness benefit

HDFC SLIC will not pay critical illness benefit if it is caused directly or indirectly from any of the following:

1. Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered

medical practice holder.


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Accidental Death Benefit

HDFC SLIC will not pay Accidental Death Benefit if death is caused directly or indirectly from any of the

following:

1. Suicide within one year of the date of commencement or the date of issue of the policy, iflater.2. Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered


3. Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to byus in writing.

4. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution ortaking part in a riot or civil commotion.

5. Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft.

What is a Single Premium Whole of Life Insurance Plan?

Single Premium Whole of Life Insurance Plan is HDFC SLIC well suited to meet Customer long term

investment needs. This participating (with profits) plan offers Customer the following benefits:

A sound investment: Customer money will be invested in HDFC SLIC with profits fund. The fund aims to

provide secure and stable long term growth. Normally, HDFC SLIC will declare a compound reversionary

bonus for customer policy every year and add it to customer policy on its anniversary. In addition, on

death, surrender or on the guaranteed dates, a terminal bonus might be payable. Customers pay a

single premium and the policy will pay customer a lump sum.

Flexibility of term: Even after choosing customer policy, customer can decide on the policy term. For 4

weeks after anyone of the 10th

, 15th

, 20th

, and subsequent five-year anniversaries, customer can choose

to receive the sum assured plus any attaching bonuses, in full. Once the money has been received.

Customer policy will cease.

Surrender value:Customer can terminate the policy any time, after it has been in force for at least 6months, and receive a surrender value.


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In case of unfortunate death: Customer nominee gets the sum assured secured by customer

premium, plus any attaching bonuses.

No medical requirements:HDFC SLIC do not require customer to undergo any medical test for this

plan.

Is Customer eligible?

The eligibility ages are as follows:

Minimum age at entry 18 years

Maximum age at entry 70 years

Customer can buy the product on a single life basis.


A single premium can be paid by cash, cheque or demand draft.

What are the risk factors?

Any surrender value payable is at HDFC SLIC discretion. It will reflect HDFC SLIC performance over the

term of customer policy. It may go up or down. Future bonuses are dependent on HDFC SLIC future

experience. If any of the information provided by customer is incorrect, HDFC SLIC reserve the right to

vary any benefits which may be payable. Further, if there has been non-disclosure of a material fact,then HDFC SLIC may treat customer policy as void.


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What is a Term Assurance Plan?Under this plan a sum assured is payable in case of death of the life assured during the term of the

contract. One can choose the lump sum that would replace the income lost to ones family in the

unfortunate event of ones death. Since this nonparticipating (without profits) plan is pure risk cover

plan, no benefits are payable no survival to the end of the term of the policy.

Why should customer buy this product?

If customers have a family that he/she care for, it should consider what would happen in case of its

unfortunate death. The imotional void can not be filled , but financial insecurity can be avoided. By

taking this affordable life insurance plan, customer can provide for the HDFC SLIC well-being of customer

family in case of its unfortunate death. This plan comes to customer at a minimal cost and is HDFC SLICwell-suited for the value conscious customer.

What optional benefits are available with this plan?

Customer can add the following optional benefit to customize customer policy to suit customer needs:

Critical illness Benefit provides an amount, equal to the sum assured chosen under this optional benefit,

on diagnosis of any one of the 6 common critical illness. The sum assured is payable if customer survive

for 30 days after the date of the claim. once such a claim has been met, no further Critical Illness Benefit

is payable. However, customer basic policy continues even after HDFC SLIC pays a claim on this benefit.

Accidental Death Benefit provides an additional amount, equal to the sum assured chosen under this

optional benefit, in case of customer unfortunate death:

- Due to an accident, and- Within 90 days of the accident.


This plan can be taken on a single life basis or a joint life basis .


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Customer have the choice of paying customer premium either in yearly, half-yearly or quarterly modes,

or of paying a single one-time premium, depending on customer convenience.

EXCLUSIONSThe following exclusions apply:

Term assurance plan: HDFC SLIC shall not be liable to pay the benefit amount indicated in customer

policy schedule if the death of life assured or the death of the first to die of the lives assured is caused

directly or indirectly by suicide within one year of the date of commencement, or the date of issue of the

policy, if later.

Critical Illness Benefit: HDFC SLIC will not pay Critical Illness Benefit if it is caused directly or indirectly

from any of the following:

1. Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.2. Alcohol or solvent abuse, or the taking of the drugs except under the direction of a registered


3. War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution ortaking part in a riot or civil commotion.

4. Taking part in any flying activity, other than as a pasenger in a commercially licensed aircraft.5. Taking part in any act of a criminal nature.6. Pregnancy or child birth or complications arising there form.

Accidental Death Benefit: HDFC SLIC will not pay Accidental Death Benefit if death is caused directly or

indirectly from any of the following:

1. Suicide within one year of the date of commencement or the date of issue of the policy, if later.2. Alcohol or solvent abuse, or taking of drugs except under the direction of a registered medical

practice holder.

3. Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to byus in writing.


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What is a Loan Cover Term Assurance Plan?This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan.

The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan

decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since

this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to

the end of the term of the policy.

Why should the customer buy this product?

If customers are taking a loan to buy a house for his/her family, this plan can help him to ensure that

lifes uncertainties do not affect their shelter. It is an affordable plan that has been designed to help

customer family repay the outstanding loan in case of customer unfortunate death.


This plan can be taken on a single life basis or a joint life basis.


Customer have the choice of paying customer premium either in yearly, half-yearly or quarterly modes,

or of paying a single one-time premium, depending on customer convenience.


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What is Personal Pension Plan?Before customer enter into any financial contract, it is important that customer understand what the

product is, how it works, the risks involved and what a decision to buy could mean for customer. HDFC

SLIC recommends that customer read this document before purchasing a policy from HDFC Standard Life

Insurance Company.

Purpose:The policy is basically a savings contract, which is designed to provide an income for life fromretirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is permitted

by the prevailing regulations.

Customer commitment: Customer agree to pay a single premium or level premiums withinstallments due every quarter, half-year or year throughout the deferment period of the policy, after

which customer will start receiving its pension.

Risk Factors: If customer ceases to pay premiums HDFC SLIC may pay a surrender value. This will be

determined at company discreation. If any of the information which customer provide is incorrect,

company reserve the right to vary the benefits which may be payable and, further, if there has been non-

disclosure of a material fact then HDFC SLIC may treat customer policy as void. HDFC SLIC WILL not pay

out if a claim arises from the excluded cause of death. Future bonuses are not guaranteed. They are

dependent on HDFC SLIC future experience. The principal elements of experience are HDFC SLIC

investment performance and expenses.


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Plans Benefits

Savings Plans:-Endowment Assurance Plan Life Insurance with Savings

Unit Linked Endowment Plan Life Insurance and Savings with choice of

Investment Funds.

Childrens Plan Financial Security for your child.

Unit Linked Young Star Plan Financial Security for your child with choice of

investment funds.

Money Back Plan Life Insurance with Savings.

Investment Plans:-

Single Premium Whole Life Plan Investment with Life Insurance.

Protection Plans:-

Term Assurance Plan Life insurance at an affordable price.

Lone Cover Term Assurance Plan Life Insurance customized for home loans.

Retirement Plans:-

Personal Pension Plan Savings for RetirementUnit Linked Pension Plan Retirement savings with a choice of

investment funds.


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Commission Structure for the Financial Consultants:

Type of plan First policy year Subsequent policy years

Endowment

assurance plan

25% 5%

Money back plan 25% 5%

Term assurance plan 20% 5%

Loan cover term

assurance plan

20% 5%

Personal pension

plan

7.5% 2%

Unit linked

endowment

assurance plan

12.5% 4%

Unit linked pension

plan

7.5% 1%


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RESEARCH METHODOLOGYThe topic of this project is RECRUITMENT OF FINANCIAL CONSULTANTS

FOR HDFC STANDARD LIFE INSURANCE L.T.D.

Research in common parlance refers to a search for knowledge.The success of any formal financial researcproject is sound research methodology. A research design purely and simply the framework or plan for

study that guides the collection and analysis of the data.

In the research methodology we evaluate that why we have chosen the particular method.

Research M ethodology has fol lowing steps: -

Step 1. To decide the objective of the study.

Step 2. To design the research design.

Step 3. To determine the source of data.

Step 4. To design data collection methods.

Step 5. To design sample size and sample design.

Step 6. To process and analyze the data collection form.

Step 7. To prepare research report.


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Step 1: -To decide the objective of the study

Research Objective

Provide better Financial Consultants in HDFC.

Study the recruitment process of Financial Consultants in HDFC and provide some suggestion for betterment.

Step 2:- To design the Research Design

Research Design

An advance planning of the method to be adopted for collecting the relevant data and the technique to

be used in their analysis, keeping in view the objective of the research and the availability of the staff,

time and money.

Some collection and analysis of data. Research Design is some statement or specification of procedures

for collecting and analyzing the information required for the solution of some specific problems. It

provides scientific framework for conducting research investigation. Anticipating and specification are

the main characteristics in a research design. It provides the information for decision making.

Decision regarding what, where, when, and how much and by what means concerning an enquiry as a

research study constitutes in research design.

Descriptive Research

A descriptive study determinates who, what, when, where and how of a topic. Descriptive study may

employ any of the methods of data collection such as interview, questionnaire , observation etc.in the

descriptive study the researcher must be careful to make a note that may creep in at every stage of the

study formulating the objective of the study, designing the methods of data collection, selecting thesample, collecting processing and analyzing the data and reporting the findings


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Data Source Primary Data,

Research Approach Survey Method

Sampling Technique Random Sampling

Research Instrumet Questionnaire Technique

Contact Method Personal Interviews done through questionnaire.

Step 3:- To determine the source of the data-

Data Collection

Research entails the use of immediate data in determining the survival of the market. The popular ways

to collect primary data consist of surveys, interviews and focus groups, which shows that direct

relationship between potential customers and the companies. . Whereas secondary data is to

reprocess and reuse collected information as an indication for betterments of the service or product.

Data Collection Method

My project was to approach people who had the ambition and will to be effective financial consultants. I

used both primary as well as secondary data.

Primary Data:-

Primary data may be described as those data that have been observed and recorded by the researchers

for the first time to their knowledge.

The primary data was obtained through direct communication with the prospects and filling up of

questionnaires.


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Secondary Data:-

Secondary data are those data which have been already collected and analyzed by some earlier agency

for its own use, and later the same data are used by a different agency.

The secondary data was collected through the :-

Internet

Step 4:- To design the data collection method-

For this project I have chosen survey method, in which my concentration was on

Personal Interview Questionnaire technique

Data Collection Instrument

Questionnaire:-

Questionnaire is a list of questions to be asked from the respondents. It also contains a suitable space

where the answers can be recorded.

A semi-structured kind of questionnaire was designed which contains open ended, close-ended and

multiple-choice questions.

Procedure

I have been given complete freedom to operate. I have done personal interviews through questionnaire

technique.

The aim of the present study was to know about recruitment process in HDFCSLIC Ltd.


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DATA ANALYSIS

TABULATION SHEET (SAMPLE SIZE-100)

Marital

Status

Married Unmarried

47 5

Type ofOccupation

Student unemployed Services Other29 2 34 35

Gender Male Female

80 20

Qualification Intermediate Graduate Post-

graduate

13 53 34

Age 18-25 years 25-35 years 35-45 years Above 45

37 42 13 8


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RESPOND NTsG E N D E R

FEMALE 20

MALE 80

20

80

PERCENTAGE RATIO OF GENDER

female

male


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RESPOND NTsM RIT L ST TUS

MARRIED 47

UNMARRIED 53

4753

PERCENTAGE RATIO OF MARITAL

STATUS

MARRIED

UNMARRIED


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R E S P O N D NTsG E

18 - 25

37

25 - 35

42

35 - 45

13

45 ABOVE

8

37

42

13

8

PERCENTAGE RATIO OF AGE

18 - 25

25 - 35

35 - 45

45 ABOVE


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RESPOND NTs OCCUP TION

STUDENTS

29

SERVICE

34

UNEMPLOYED

2

OTHERS

35

29

34

2

35

PERCENTAGE RATIO OF OCCUPATION

STUDENTSSERVICEUNEMPLOYEDOTHERS


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RESPOND NTsQU LIFIC TION

INTERMEDIATE 13

GRADUATE 53POST GRADUATE 34

13%

34%

53%

PERCENTAGE RATIO OFQUALIFICATION

INTERMEDIATE

GRADUATE

POST GRADUATE


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FINDINGS

Some persons are ready for the job of Financial Consultant. Some persons refuses because of he could not pay the I.R.D.A. training

fees.

The image of selling policies is very bad in the mind of peoples. No body wants to do a commission based job. Persons who are doing their jobs they have no time to do I.R.D.A.

training.

Most of the villagers do not have pan cards. 2 persons came to the bank but they are not satisfied with the

information provided to them.

Recruiting a financial consultant is more of marketing rather than HR jobbecause like a marketer you have to convince him to do this job by

showing them profits and benefits working in the organization.


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LIMITATIONS

The research was carried out in a short span of time where theresearcher could not study wider. Hence 100% accuracy cannot be

assured.

Respondents are less knowledgeable. Not focusing or not listen carefully our questions, they just reply or give

answer in a hypothetical bases.

The image of selling policies in the minds of the respondents. Respondents in students are more. Some people dont want to participate in the survey.


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SUGGESTIONS

It should not be only a commission based job. It should be a salary based job. Training fees should be affordable to the pocket of peoples. Documents for registration should be only :-

4 Passport Size Photograph

Statement of bank passbook

ID can be Ration Card and

For qualification should be the last qualified examination proof.

Pan card should not be necessary.

Some people who are from village they have not enough documents.

There should be some more facilities for higher degree eligible persons.


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QUESTIONNAIRE

Sir,

I am MANVI MISHRA student of M.B.A. 3rd

semester at SHRI SIDDHIVINAYAK INSTITUTE OF MANAGEMENT Bareilly. I am working on a project

with the topic ofA STUDY OF RECRUITMENT IN HDFC SLIC under the guidance

of Mr. Nipun Johri (Channel Development Manager). I want to know your

kind option in this regard.

RESPONDENT PERSONAL INFORMATION

Question.1 Name of the respondent................

Question.2 Gender -

Male ( ) Female ( )


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Question.3 Qualification-

High school ( ) Intermediate ( )

Graduate ( ) Post Graduate ( )

Question.4 Age -

18-25 ( ) 25-35 ( )

35-45 ( ) Above 45 ( )

Question.5 Occupation-

Student ( ) Service ( )

Business ( ) Other ( )

Question.6 Mobile No. ............................................

QUESTIONS FOR RECRUITMENT

Question.1:

Do you know about INSURANCE?

a). yes b). No


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Question.2:

Do you know about IRDA?

a). yes b). No

Question.3:

Do you know about HDFC standard life insurance corporation?

a). yes b). No

Question.4:

Do you know about FINANCIAL CONSULTANT?

a). yes b). No

Question.5:

In which category do you belong?

a). Student b). Unemployed

c). Serviceman d). Others(specify)

Question.6:

Do you want to earn part time along with your profession?


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a). yes b). No

Question.7:

Are you satisfied with the above description?a). yes b). No

Question.8:

Would you like to join HDFC standard life as financial consultant?

a). yes b). No

Question.9:

Do you think that insurance is necessary for any individual?

a). yes b). No

Question.10:

Other reference:-


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CONCLUSIONSThis presents the summary of the study and survey done in relation to the recruitment of

Fcs in HDFC Standard life insurance. The conclusion is drawn from the study and survey

of the company regarding the Recruitment process carried out there.

Financial consultant is bound by the terms of appointment of the insurer and is expected

to procure business for the insurer. it is not a job that he has to do at fixed hours, in

prescribed ways and under close supervision. He is an independent professional. He is

the master of his time. Fcs see the agency as a means to supplement their earnings.

They work as a part time on insurance, being busy on other work the rest of the time.

Some try to study and understand the business in great details and to improve their

skills. They would be recognized as experts in the field. There are many agents, who

started as part-time and then became whole-time agents, leaving their other secure jobs.

As a financial consultant of the insurer, the life insurance consultant is expected to

obtain life insurance business and contribute to the revenues of the insurer. He is also


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depended upon to bring in business that would be profitable. He is in touch with the

person is insured .

The life insurance agent, has to think about the interests of the prospect which may be

met by schemes other than life insurance. To be able to advise the prospect on the best

financial arrangements appropriate to his situation, the agent needs to be familiar with

the alternatives available in the market.

BIBLOGRAPHY

www.hdfclife.com

www.google.comwww.irda.org
http://www.hdfclife.com/http://www.hdfclife.com/http://www.hdfclife.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.hdfclife.com/


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