“ANALYSIS OF AGENCY DEVELOPMENT& CONSURMER AWARENESS IN LIFE INSURANCE”

7/29/2019 ANALYSIS OF AGENCY DEVELOPMENT& CONSURMER AWARENESS IN LIFE INSURANCE

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APROJECT REPORT

ON

ANALYSIS OF AGENCYDEVELOPMENT&

CONSURMER AWARENESS IN LIFEINSURANCE

Sar Utha Ke Jiyo

For Partial Fulfillment In award degree ofMaster of Business Administration

ACADAMIC YEAR 2007-09

SUBMITTED BYGUIDED BY

Mr. Ravi Kumar Verma Mr. YadvendraLakhan

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INSTITUTE OF CO-OPERATIVE &CORPORATE MANAGEMENT RESEARCH&TRAINING

RING ROAD, INDIRA NAGAR, LUCKNOW

ABSTRACT

PGDM program is one of the most reputed professional course in the field of management.

This course includes both theory and its application contents of curriculum. Summer

training is an integral part of the PGDM program at ACCORD BUSINESS SCHOOL

SHAHJANPUR Each student is required to undergo summer training from an institute of

repute in his or her trimester. As complimentary to that, every trainee has to prepare and

submit a report on the research work conducts by the students.

This report is at continuation of the above tradition. This summer training was done at

HDFC Standard Life Insurance Co. Ltd. Gorakhpur. The topic of the training was

Analysis of Agency Development & Consumer awareness in life Insurance is very

significant for the Life Insurance Company.

This research is an attempt to present a report on account of interviews and

surveys with the customers and consumers.

Sasheysh Tripathi

PGDM 3rd Trimester

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ACKNOWLEDGEMENT

Success of my project depends upon two factors internal & external. External factor

includes sincere efforts, dedication to the work and good potential whereas internal factors

includes cooperation and support of potential customers who patiently hears about the

schemes and plans of insurances plan and then gives response about the product.

Good guidance and cooperation from others are external factors, which affects the

percentage of success. Though in completing this project I tried my level best but it could

not be possible without proper guidance from the staff of HDFC Standard Life

Insurance Co. Ltd.

Im heavily indebted to .. for his valuable guidance and

suggestion, which I sincerely value and appreciate.

I also want to give my thanks to ...

RAVI KUMAR VERMA

M.B.A IIIrd Semester

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CONTENTS

TOPIC PAGE NO

1. INTRODUCTION...8-25

Introduction of Insurance8 Fundamental Principles of Insurance...9-11 History of Insurance.12-13 Why Life Insurance..14-16 Review of Insurance Sector..16 Privatization of Insurance16-17 Libralization of Insurance Sector.17-19 IRDA19 Why Insurance in India20-22 Need of Brand Name in Insurance...22-23 Market Share among Private Companies.24

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Market Potential for Private Co...25

2. COMPANY PROFILE26-31

3. PRODUCT AND SERVICES..33-44

4. CHANNEL DEVELOPMENT45-60

Why to recruit ?...............................................................47 Who to recruit ?...............................................................47-48 How to recruit ?..............................................................48-49 Recruitment Activities ?................................................50-51 What to check while we are recruiting ?.......................51-52 Advisor Role.52-53 Working Environment...53 Your opportunity...53 Benefits of joining HDFC SLIC...54-56 Recognition Programms.56 Career progression & future opportunity...57 Fast trak pinnacle programmes...57-58 Extensive Advisor Training...58-59 Support team the co59 Expectation of team60

5. CONSUMER AWARENESS IN HDFC SLIC61-65

6. PROBLEMS OF INVESTORS.66-68

7. RESEARCH METHODOLOGY.69-71

8. RESEARCH OBJECTIVE72

9. FINDING ABOUT ADVISORS WHO ARE WORKING IN HDFC

SLIC

QUESTIONNARE...74-89

10. FINDING ABOUT THE SELECTION OF NEW ADVISORS

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QUESTIONNARE91-100

11. S.W.O.T ANALYSIS.101-103

12. CONCLUSION .104

13. RECOMMENDATION105-106

14. BIBLIOGRAPHY.107

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INTRODUCTION

The aim of all insurance is to compensate the owner against loss arising from a variety of

risks, which he anticipates, to his life, property and business. Insurance is mainly of two

types: life insurance and general insurance. General insurance means Fire, Marine andMiscellaneous insurance which includes insurance against burglary or theft, fidelity

guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and

crops.

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The Insurance Act, 1972 and the General Insurance Business (Nationalisation) Act, 1972

govern Fire and Marine Insurance, while the Indian Marine Insurance Act, 1963 governs

marine insurance in our country. These laws contain provisions relating to the constitution,

management and winding up of insurance companies and the conduct of insurance business

of all types. All insurance business in India has been nationalised.

A Contract of insurance is a contract by which one party undertakes to make good the loss

of another, in consideration of a sum of money, on the happening of a specified event, e.g.

fire accident or death. Law recognises insurance as a system of sharing risk too great to be

borne by one individual.

FUNDAMENTAL PRINCIPLES OF INSURANCE

Some useful terms in Insurance:

INDEMNITY

A contract of insurance contained in a fire, marine, burglary or any other policy (excepting

life assurance and personal accident and sickness insurance) is a contract of indemnity.

This means that the insured, in case of loss against which the policy has been issued, shallbe paid the actual amount of loss not exceeding the amount of the policy, i.e. he shall be

fully indemnified. The object of every contract of insurance is to place the insured in the

same financial position, as nearly as possible, after the loss, as if he loss had not taken place

at all. It would be against public policy to allow an insured to make a profit out of his loss

or damage.

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UTMOST GOOD FAITH

Since insurance shifts risk from one party to another, it is essential that there must be

utmost good faith and mutual confidence between the insured and the insurer. In a contract

of insurance the insured knows more about the subject matter of the contract than theinsurer. Consequently, he is duty bound to disclose accurately all material facts and nothing

should be withheld or cancealed. Any fact is material, which goes to the root of the contract

of insurance and has a bearing on the risk involved. It is only when the insurer knows the

whole truth that he is in a position to judge (a) whether he should accept the risk and (b)

what premium he should charge.

If that were so, the insured might be tempted to bring about the event insured against in

order to get money.

Insurable Interest- A contract of insurance effected without insurable interest is void. It

means that the insured must have an actual pecuniary interest and not a mere anxiety or

sentimental interest in the subject matter of the insurance. The insured must be so situated

with regard to the thing insured that he would have benefit by its existence and loss from its

destruction. The owner of a ship run a risk of losing his ship, the charterer of the ship runs a

risk of losing his freight and the owner of the cargo incurs the risk of losing his goods and

profit. So, all these persons have something at stake and all of them have insurable interest.It is the existence of insurable interest in a contract of insurance, which distinguishes it

from a mere watering agreement.

Causa Proxima - The rule of causa proxima means that the cause of the loss must be

proximate or immediate and not remote. If the proximate cause of the loss is a peril insured

against, the insured can recover. When a loss has been brought about by two or more

causes, the question arises as to which is the causa proxima, although the result could not

have happened without the remote cause. But if the loss is brought about by any cause

attributable to the misconduct of the insured, the insurer is not liable.

Risk - In a contract of insurance the insurer undertakes to protect the insured from a

specified loss and the insurer receive a premium for running the risk of such loss. Thus, risk

must attach to a policy.

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Mitigation of Loss- In the event of some mishap to the insured property, the insured must

take all necessary steps to mitigate or minimize the loss, just as any prudent person would

do in those circumstances. If he does not do so, the insurer can avoid the payment of loss

attributable to his negligence. But it must be remembered that though the insured is bound

to do his best for his insurer, he is, not bound to do so at the risk of his life.

Subrogation - The doctrine of subrogation is a corollary to the principle of indemnity and

applies only to fire and marine insurance. According to it, when an insured has received full

indemnity in respect of his loss, all rights and remedies which he has against third person

will pass on to the insurer and will be exercised for his benefit until he (the insurer) recoups

the amount he has paid under the policy. It must be clarified here that the insurer's right of

subrogation arises only when he has paid for the loss for which he is liable under the policyand this right extend only to the rights and remedies available to the insured in respect of

the thing to which the contract of insurance relates.

Contribution - Where there are two or more insurance on one risk, the principle of

contribution comes into play. The aim of contribution is to distribute the actual amount of

loss among the different insurers who are liable for the same risk under different policies in

respect of the same subject matter. Any one insurer may pay to the insured the full amount

of the loss covered by the policy and then become entitled to contribution from his co-

insurers in proportion to the amount which each has undertaken to pay in case of loss of the

same subject-matter.

In other words, the right of contribution arises when (I) there are different policies which

relate to the same subject-matter (ii) the policies cover the same peril which caused the

loss, and (iii) all the policies are in force at the time of the loss, and (iv) one of the insurers

has paid to the insured more than his share of the loss.

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THE HISTORY OF INSURANCE IN INDIA:

( Insurance Regulatory and Development Authori ty ) in Apr il 2000.

The Indian Insurance Industry was dominated by two states Insures

i.e. The Life Insurance Corporation in Life Insurance and The General

Insurance Corporation in general insurance before 2000 which were

created after the nationalizat ion of the Life and non Life sector in 1956and

1972 respectively. In Dec99, the IRDA Act was passed which l imi ted

foreign investor s to a 26% cap on equi ty part ic ipa tion , and minimum

capital requirement of $20 Mill ion. At present, more than 12 pr ivate

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players are in the market and some are in the pipel ine. The advent of the

new kids poses to LIC to somewhat extent , for which LIC wil l have to

change its current policies regarding marketing and product management.

Insurance is not necessarily an investment from which one expects

THE LIFE INSURANCE SCENARIO IN INDIA:

Since 1956, wi th the nat ional izat ion i f Insurance Indust ry, the s tates run

Lif e I ns ur ance Cor pora ti on o f I nd ia ( LI C) has hel d t he monopol y i n

countrys l i fe insurance sector . General Insurance Corporation of India

(GIC), with i ts four subsidiaries , was i ts counterpart in the casualty sector .

Over the t ime, taking advantages of i ts monopoly and vir tual prerogative in

establishing the premiums, LIC has evolved into a monoli th. With around

60,000 agents in every nook and corner of the vast country, i t has created

an enviable brand name, par ticular ly among the rural population of the

country. It has around $40 billion as its financial sector. However, on the

quali tat ive side, i t has every l i t t le pride in, And there l ies the potential for

playe rs to challenge this behemoth.

As typical with monopolies, the premiums rates charged LIC are among the highest in the

world, and its track record in customer service can at best be called shabby. With a huge

unionized, rigid workforce mostly in clerical category. LIC run the risk of high fixed cost,

which will be the deciding factor productivity in the competitive scenario. While boasting

full-scale automations of its operation, the truth is that its technology outdated. The newplayers, with the state- of-the- art technology under the belt, will be in advantageous

position. 80% of LICs business is procured by 20% of its ill-trained agent force. The

foreign player, with the domestic partners string brand value, can test the unconventional

distribution channels like brokers, the Internet, the banking distribution system etc.,

although foreign players may be tempted to keep their operations in big cities for the

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cream layer of the society, the real market lies in rural India, which accounts for the lions

share of LICs present business. The foreign players must adapt to Indian realities, the well

published failures of the world famous consumer goods companies like Electrolux,

Whirlpool, Reebok, Nike etc. to gauge the Indian psyche and sentiments demonstrate the

concept. They failed in the area of realistic pricing, product promotion and reaching to the

consumer. The foreign companies know the ground realities to the details.

WHY LIFE INSURANCE:

Life Insurance has come a long way f rom the ear l ier days when i t was

originally conceived medium for short periods of tome. covering temporary

r is k s it ua ti on , s uch a s s ea voyages. As L if e I ns ur ance became mor e

establi shed, i t was r ea li zed what a usefu l tool i t was for a number of

including

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TEMPORARY NEED / THREATS:

The original purpose of the Life Insurance remains an important elements,

namely for replacement of income on death etc.

REGULAR SAVING:

Providing for ones family and onesel f , as a medium to long term

exerci se ( through a ser ies of r egular payment or premiums). This has

become more relevant in recent times as people sect financial independence

for their family.

INVESMENT:

Put simply, the building up of saving while safeguarding it from the ravages

of infl a tion . Unlike r egular saving products , investment product s a re

t raidonai l ly lump sum inves tment , where the individual makes a one off

payment.

RETIREMENT:

Provision for later years becomes increasingly necessary, especially in a cultural and social

environment. One can buy a suitable insurance policy, which will provide periodical

payments in ones old age.

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Let us take an example to understand the need for Insurance:

Mr. VINOD is 45 and self-employed. His wife VENEETA, who is a housewife, looks after

their two children aged 3 and 7 years. They stayed in a rented accommodation, where the

rent is Rs.15000/- per month. Mr. VINOD, has taken a loan of Rs. 2 Lakh. His monthly

earnings on average are Rs.40,000/-. Mr. Amit passes away in an unfortunate road accident.

What are some of the financial implications of his death on his family?

There may be several financial implications on his family. Some of these

are:

The monthly income, previously provided would stop.

His wife and children may have to seek financial assistance from other relatives.

His wife may not have enough money to pay back the loan of Rs.2 lakhs.

The families have to move into a cheaper accommodation.

The widow may have to take up work to earn money.

The education of their children may suffer.

This simple example illustrates the impact premature death can have on a family, where the

main earner has no life cover.

Had Mr. VINOD, taken a life cover, his family would not have faced such

hardships in the event of his unfortunate death. A simple life insurance policy could have

provided Mr. VINODs family with a lump sum that could have been invested to provide

an income equal to all or part of his income.

In simple words, insurance protects against untimely losses. Insurance has been

found useful in the lives of persons both in the short-term and long-term. Short term needs

like sudden medical costs and long-term needs like marriage expenses etc. can be met with

using life insurance.

REVIEW OF INSURANCE SECTOR :

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India is having population of 1 Billion with a middle class population estimated up to 300

million. It being the 5 th largest economy in the world in terms of Purchasing Power Parity

(PPP) has a GDP growth rate of over 6% per year on an average for the last decade. The

saving rate is estimated to be about 26% of the GDP. In the total population, the insured the

population is estimated to be about 70 million.

PRIVATIZATION OF INSURANCE :

The Indian Insurance Sector has finally opened up and it is with much anticipation that new

players are awaiting their share of market. License have been issued to both Indian and

Foreign Players- Reliance, HDFC Standard-Life, Max India-New York, Royal Sundaram

Alliance, ICICI Prudential, IFFCO-Tokyo Marine, Bajaj Allianz, Birla Sunlife, Tata AIG,

AVIVA Life Insurance, SBI Life, Om Kotak Mahindra are some of the entrants into the

newly liberalized Indian Insurance market .

The first move for the liberalization came with the Malhotra Committee Report

in 1993 which recommended the privatization of Insurance, setting of an insurance

regulatory authority and restructuring the government monopoly LIC and GIC and its

subsidiaries IRDA Act passed in November 1999 had set ball rolling for the entry of

Private Players in domestic sector.

LIBERALIZATION OF INSURANCE SECTOR:

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Liberalization commitment of the country to help in disciplining future economic policies

will include the insurance reforms. When world over insurance market has been opened up.

India cannot remain in isolation. History has shown that it is very difficult to proper in

isolation.

Globalization is the new economic reality, which is here to stay, heralding a new

era of Insurance in India. With the opening of the insurance industry, Indian stands to gain

with the following major advantages.

Globalization will provide opportunities to the consumer for the better production.

With more reasonable and affordable pricing.

The customer will get quicker service

It will enhance the saving rate.

Long-term funds for infrastructure development will be available to the country.

It will secure for India larger inflow of foreign capital need to sustain our GDP

growth

ADVANTAGES OF LIBERLIZATION:

The opening up will enable the country to save more and invest more for the

development in infrastructure.

With new insurance intermediaries and more distribution channels the market is

bound to develop by leaps and bounds

In the next few years it is established that the Indian insurance sector will develop a

better understanding of consumer requirement leading to more satisfaction of

consumers.

Lead to increase in employment.

Social and rural obligations will also be served as IRDA has come out with clear

regulation in this regard, which makes the development in this area mandatory.

Global competition will help in building expertise with their global practice.

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Unlike west, in India, insurance is sold as the instrument of saving. About 18% of the

policies are sold as death risk consideration. Impression about LIC is that they are not

meant for the market requirements. They are only intended to find customers. Insurance

awareness is therefore low. Unit linked insurance products are not available. Insurance

covers are expensive and returns are low. Turn over the agent is high. The choice available

to the insuring public is inadequate in terms of services, products and prices. These are the

areas of weakness, which may act as opportunities for new players who may work to offer

policies to the customer with the value additions at a competitive premium with much

improved servicing.

The IRDA Governs the critical aspect of Insurance Sector Including:

The number and role of Private Sector operates including-Roman area

intermediaries.

Regulate covering investment, solvency norms

Product Range

Accounting Practices

Consumer Protection Norms Ensuring the Rural and Health Insurance are

developed.

Fixing of License fee

Perhaps all the most critical regulation is the 26% equity Capital for Foreign Insurers. This

regulation bring in issues regarding management control and one of the reasons for joint

venture breaking up Cubb-Kotak, Liberty-Dabur, AllState-Dabur, Manu Life-UTI are some

of the broken up alliances.

IRDA(Insurance Regulatory Development Authority):

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The insurance sector has been opened up in India, as there was an urgent need. The

international experience indicates those country with a liberalized insurance sector have

witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This

happened in China, Malaysia and Singapore where a competitive market has led to

improvement in Services and quicker settlement of claims. It is also important to note that

competition will bring about advancement in information, communication and technology.

And rightly therefore a decision was taken by the Government of India to open up

Insurance sector. The establishment ofIRDA in the month of April 2000 has been

important development in this direction, making the end of monopoly in the insurance

sector.

WHY INSURANCE IN INDIA:

Only 22% of the insurance population has been extended cover. Market penetration is

low and the potential to exploit is high.

Insurance premium per capita is very low.

Lack of comprehensive social system benefit and welfare means that demand for

pension products is high.

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Huge middle class of approximately 300 Million.

Existing insurance company score low on customer service front.

The insurance market registered growth in the Asian region even though Indias share in

global insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%).

Studies have reveled that in an emerging market, as disposable income rises, Insurance

premiums as a ratio of GDP shoots up. The confederation of Indian Industry projected a

growth of Life Insurance premiums from Rs. 350 Billion at present to Rs.140 Billion. The

growth of non-life insurance premium is expected to increase from 75 billion to 375 billion.

Out of which, only 10% is tapped by the existing insurer.

Insurance even more than banking is a volume game. A very exclusive approach in view is

unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of

tax-benefits. A higher percentage of business is in the rural market. The share of rural new

business insurance total new business is 55% in terms of policies and 47% in terms of sum

assured. However, this needs to be viewed in the light of some recent issues that have been

raised regarding as to what constitutes the rural market. Therefore, private insurers will be

best served by middle market approach, targeting the customer segments that are presently

unexploited.

How many Indians are aware that LIC has more than 60Products and GIC has more than

180Products? Not only there is a reduction in the premiums of Life Insurance products

have long overdue since Indian morality rate has decreased three folds in the last 50years.

There is also scope to increase the yield on life insurance policies (presently 6%) with

proper risk management in place.

It is been debated that insurance business does not produce profit in the first five

years cross subsidization is a feature of Indian market. Even the first portfolio vote that is

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considered profitable, cross subsidizes other departments. Tariffs reduction is likely to

reduce profits; further insurers have to institute proper claims management progress in

order to extract efficiencies. At present life insurance business in the country is taxed at

12.5% of the profit in financial year. The government is soon to present a new model of

taxing life insurance companies at international rates.

New entrants should be well advised to look ahead to the stage where brand strength will

be a competitive advantage and sketch their alliances accordingly. In fact, we believe that

alliance related to distribution rather than to produce or technology will prove most

valuable in the long run.

Banks and financial companies will emerge, as attractive distribution channel for this

insurance trend will be led by two factors, which already apply in other world market. First

Banking food insurance, fund management and other financial services companies are

being to increase their profitability and provide maximum value to their customers.

Therefore, they are themselves looking for a range of products to distribute.

In other market notably Europe; this has resulted in bank assurance. Bank entering into the

insurance business in India to bank hope to maximize expensive existing network by selling

a range of products more of a loss alliance between insurance and bank than a formal

ownership. Some Indian entrants like Reliance, ICICI and HDFC and hope to ride their

existing network and customer bases.

NEED OF BRAND NAME IN INSURANCE:

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Branding is the new key challenge in the financial services industry. Life in the 21st century

will be longer with more choice in more field of activity. The financial consequence of the

increased life span is particularly likely to be tough. Inevitably, this will lead to more

complexity, which in turn necessities greater clarity and appeal from the service providers.

Branding is more important in the financial services market which not only

faces the problem of securing and retaining customers in an increasing competitive market

place but also experience the need for heightened relevance of the brand positioning in a

world where brand has been termed as new religion.

Life Insurance

Company Premiums Sum Assured

LIC 0.32 5.52

Reliance life insurance 0.56 25.50

ICICI Prudential 0.67 30.15

HDFC Standard-Life 5.97 100

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Birla Sunlife 14099.66 2,03,085.28

Focus and strategies are essential for development of brand in any sector but the less

tangible world of financial products historically has escaped the branding issues that have

governed development and culture in other industries.

If there was an industry, which is least, considered as an essentiality it would be the

insurance industry. It was always felt as abstract services or a fall back, more likely a safety

net. But it is more of shifting through competitive products to select most appropriate one,

but with liberalization of the industry, players have to realize the need for branding in a

competitive environment. Insurance companies need to strive for a greater customer focus

regardless the customer is the end or the intermediary.

Market Share Among Private Companies:

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Pie Chart of market share of private life insurancecompanies

Market Potential for Private Life Insurance Companies in

India:It has been found that:

85 percent of t he I nd ians p re fe r L IC t han any o ther i ns ur ance

companies.

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Market Share of

private players

8% 3%

7%

5%

1%

12%

2%15%

32%

7%

5%

3% 0%

TATA AIG

OMKOTAK MAHINDRA

BIRLA SUNLIFE

MAX NEW YORK

ING VYSYA

HDFC STANDARD

MET LIFE

BAJAJ ALLIANZ

ICICI PRUDENTIAL

SBI

AVIVA

RELIANCE LIFE

SAHARA LIFE


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Prevention of Loss, Assured Returns and Long term Investment

are the important f ac tor s influencing Indians in opting for Life

Insurance

O nly f ew o f th e I nd ia ns a re aw ar e o f p ri va te l ife in su ra nc e

companies.

Mos t o f t he I nd ians a re o f t he opi ni on t ha t p ri va te i ns ur ance

companies would be able to perform well in the long run.

Most of the Indians are interested in Money back policies than

others

Most of them are in teres ted in insur ing for an amount of Rs . 1- 2

lakhs

There is s ignif icant relat ionship exist ing between monthly household

income and amount insured

Based on the monthly household income, Indians prefer to the ir

investment needs l ike bank deposit , post off ice schemes, real estate,

i ns ur ance , gol d, chi t f unds , s ha res e tc . * Agent s a re mos tl y

responsible for selling insurance products in India.

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ABOUT HDFC SLIC

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance

company, 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 December 31, 2007 holds 72.38 % of equity in the joint venture.

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Our key strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has thefinancial expertise required to manage your long-term investments safely and efficiently.

Range ofSolutions

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 flexibilitycombined with a low charging structure.

Track Record so far

Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores

and new business premium income stood at Rs. 2,685 crores.

The company has covered over 9, 59,000 lives year ending March 31, 2008.

FACT SHEET

HDFC 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

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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.

Board Members

Brief profile of the Board of Directors

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Mr. Deepak S Parekh is the Chairman of the Company. He is also the ExecutiveChairman of Housing Development Finance Corporation Limited (HDFC Limited). Hejoined HDFC Limited in a senior management position in 1978. He was inducted as awhole-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 aFellow 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 in1981 and became an Executive Director in 1993. He was appointed as its ManagingDirector in November, 2000. Mr. Mistry is a Fellow of the Institute of CharteredAccountants of India and a member of the Michigan Association of Certified PublicAccountants.

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 seniormanagement positions. He was appointed as the Group Chief Executive of the StandardLife Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries inScotland.

Ms. Marcia D Campbell is currently the Group Operations Director in the StandardLife 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 InvestmentsLimited and is responsible for overseeing Investment Process & Chief ExecutiveOfficer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co.holding the positions of UK Economist, Chief Economist, Executive Director, Directorof Controls and Strategy HSBS Securities and Managing Director InternationalEquities. He was also responsible for Economic and Investment Strategy researchproduced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of theInstitute of Chartered Accountants of India. Mr. Divan was the Former Chairman andManaging Committee Member of Midsnell Group International, an InternationalAssociation of Independent Accounting Firms and has authored several papers ofprofessional interest. Mr. Divan has wide experience in auditing accounts of largepublic limited companies and nationalised banks, financial and taxation planning ofindividuals and limited companies and also has substantial experience in structuring

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overseas investments to and from India.

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards onStrategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President

at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He wasalso Director, Corporate Business Development at General Electric headquarters inFairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours)from Birla Institute of Technology and Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange ofIndia Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities& Exchange Board of India (SEBI) and is also associated with various committees ofSEBI and the Reserve Bank of India (RBI).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company sinceNovember, 2000. Prior to this, he was the Managing Director of HDFC Limited since1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the IndianInstitute of Technology, Bombay and a Masters Degree in Business Administrationfrom The American University, Washington DC.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in lawand holds a Master's degree in economics from Delhi University. She has beenemployed with HDFC Limited since 1978 and was appointed as the Executive Director

in 2000. She is responsible for overseeing all aspects of lending operations of HDFCLimited.

Group Companies

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http://www.hdfcfund.com/http://www.hdfcbank.com/http://www.hdfc.com/


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Bancassurance Parteners

Some of our valued bancassurance partners.

31
http://www.bankofbaroda.com/http://www.bajajcapital.com/http://www.saraswatbank.in/http://www.indian-bank.com/http://www.unionbankofindia.com/http://www.hdfcbank.com/http://www.hdfc.com/http://www.hdfcgi.com/http://www.hdfcrealty.com/http://www.hdfcsec.com/


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Individual Products

We at HDFC Standard Life realize that not everyone has the same kind of needs. Keepingthis in mind, we have a varied range of Products that you can choose from to suit all yourneeds. 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 theevent of your unfortunate demise, disability or sickness. These plans offer valuable peaceof mind at a small price.

Our Protection range includes

Term Assurance PlanLoan Cover Term Assurance PlanHome Loan Protection Plan

Investment Plans

HDFC Standard Life provide you with attractive long term returns through regularbonuses.

Our Investment range includes

Single Premium Whole Of Life plan

Pension Plans

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http://www.hdfcinsurance.com/products/indi_tap.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_hlpp.aspxhttp://www.hdfcinsurance.com/products/indi_spwlp.aspxhttp://www.hdfcinsurance.com/products/indi_tap.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_hlpp.aspxhttp://www.hdfcinsurance.com/products/indi_spwlp.aspx


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Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes

Personal Pension PlanUnit Linked Pension,Unit Linked Pension Plus

OurImmediate Annuity plan will aid you in receiving income post retirement andsecuring you financial independence.

Savings Plans

Our Savings Plans offer you flexible options to build savings for your future needs suchas buying a dream home or fulfilling your childrens immediate and future needs.

Our Savings range includes

Endowment Assurance PlanAssurance PlanSavings Assurance PlanChildrens PlanMoney BackUnit Linked EndowmentUnit Linked Endowment PlusUnit Linked Endowment SuvidhaUnit Linked Endowment Suvidha PlusUnit Linked Endowment Plus IIUnit Linked Young StarUnit Linked Young Star PlusUnit Linked Young Star SuvidhaUnit Linked Young Star Suvidha Plus

Unit Linked Young Star Plus IIUnit Linked Enhanced Life Protection II

Group Products

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One-stop shop for employee-benefit solutions HDFC Standard Life has the mostcomprehensive list of products for progressive employers who wish to provide the best and

most innovative employee benefit solutions to their employees. We offer different productsfor different needs of employers ranging from term insurance plans for pure protection tovoluntary plans such as superannuation and leave encashment. We now offer the followinggroup products to our esteemed corporate clients:

Group Term InsuranceGroup Variable Term InsuranceGroup Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with

Gratuity, Defined Benefit or Defined Contribution Superannuation orLeaveEncashment schemes of your companyAlso suitable for other employee benefit schemes such as salary saving schemes andwealth management schemes

Social Product

Development Insurance Plan Development Insurance plan is an insurance plan whichprovides life cover to members of a Development Agency for a term of one year. On thedeath of any member of the group insured during the year of cover, a lump sum is paid tothat member beneficiary to help meet some of the immediate financial needs followingtheir loss.

Eligibility:

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http://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspx


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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 forall members of the group.The premium can only be paid by the Development Agency as a single lump sum thatincludes all premiums for the group to be covered. Cover will not start until the premiumand 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 sumequal to the sum assured will be paid to their beneficiaries or legal heirs. Where thedeath is as a result of an accident, an additional lump sum will be paid equal to half thesum assured. There are no benefits paid at the end of the year of cover and there is nosurrender value available at any time.

The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be passing certainadministrative tasks onto the Development Agency. By passing on these tasks thepremium 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

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Reporting of claims

Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasksappropriately.

Since these additional tasks will impose a burden on the Development Agency, theDevelopment 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 inducementto any person to take out or renew or continue an insurance in respect of any kind ofrisk relating to lives or property in India, any rebate of the whole or part of thecommission payable or any rebate of the premium shown on the policy, nor shall anyperson taking out or renewing or continuing a policy accept any rebate, except suchrebate as may be allowed in accordance with the published prospectus or tables of theinsurer

If any person fails to comply with sub regulation (previous point) above, he shall beliable to payment of a fine which may extend to rupees five hundred

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Tax Benefits:

INCOME TAX

SECTION

GROSS

ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

HDFC STANDARD LIFE

PLANS

Sec. 80CAcross Allincome Slabs.

Upto Rs. 33,990 savedon investment ofRs. 1, 00,000.

All the life insurance plans.

Sec. 80 CCCAcross allincome slabs.

Upto Rs. 33,990 savedon Investment of Rs.1,

00,000.

All the pension plans.

Sec. 80 D*Across allincome slabs.

Upto Rs. 3,399 savedon Investment ofRs. 10,000.

All the health insurance ridersavailable with theconventional plans.

TOTALSAVINGSPOSSIBLE **

Rs. 37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC, Rs.3, 399 underSec. 80 D, calculated for a male with gross annual income

exceeding Rs. 10, 00,000.

Sec. 10 (10)DUnder 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 SumAssured and Waiver of Premium Benefit.** These calculations are illustrative and based on our understanding of currenttax legislations, which are subject to change.Please contact your tax consultant for exact calculation of your tax liabilities.

Benefits:

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Life Cover Benefit: You can choose the basic Sum Assured within the minimum and

maximum levels mentioned below

Minimum Sum Assured:

Regular Premium: Annualized Premium for 5 years or for half the Policy term

Single Premium: 125% of the single premium

Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)

In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account

Value whichever is higher.

Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid

out.

Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent

Disablement Benefit Rider (available only with regular premium option).

What are the different fund options?

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HDFC Standard Life Insurance co. understands the value of your hard earned money and in

our endeavour to help you grow your wealth, we offer you 4 different tailor-made

investment funds. You have the option to allocate your premium in these funds as you

wish.

Thefourdifferent funds offered are:

1.Capital Secure Fund:The investment objective of this fund is to maintain the

value of all contributions (net of charges) and all interest additions. This Fund offers

steady return for very little risk. The risk profile of this fund is low. Your funds are

invested 100% in Bank Deposits, Government Bonds and debt instruments that

offer financial security.

Further, allocation in Capital Secure Funds for a policy is a subject to a

maximum limit of 20% at any time.

2.Balanced Fund: The investment objective of this Fund is to provide you

with investment returns which exceed the rate of inflation in the long term while

maintaining a low probability of negative investment returns. In this fund, a major

portion of your funds are invested in fixed securities while a small percentage is

invested in the equity market, which is exposed to market movements. The risk

profile of this fund is low to medium.Investment would be at least 80% in fixed

interest securities and maximum 20% in equities.

3.Growth Fund: The investment objective of this Fund is to provide you with

investment returns which exceed the rate of inflation in the long term while

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maintaining a moderate probability of negative investment returns. This fund offers

a greater portion of your funds are invested in fixed securities while a small

percentage is invested in the equity market, which is exposed to market movements.

The risk profile of this fund is medium to high.

Investment would be at least 60% in fixed interest securities and maximum 40% in

equities.

4.Equity Fund: The investment objective of this fund is to provide Policyholders

with high exposure to equities and the possibility of investment recognizing that

there is a significant probability of negative investment returns in the short term.

This fund offers a totally equity based investment option. Your returns depend

entirely upon the performance of the equity market. The risk profile of this fund is

high. The higher risk of this portfolio means that expected returns would also be

higher. Investments would not exceed 30% in Bank Deposits and may be 100% in

equities.

Value of Units:

The unit price of each Fund will be the unit value calculated on a daily basis.

Unit Price =

Total Market Value of assets plus/less expenses incurred in the

purchase/sale of assets plus Current Assets plus any accrued income

net of fund management charges less Current Liabilities less

ProvisionTotal Number of units on issue (before any new units are

allocated/redeemed)

Flexibility:

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Pay top-ups

If you have received a bonus or some lumpsum money you can use that as a top-up to

increase the investments component in your Policy. Top-ups are allowed only if all

premiums due till date are paid.

There is no restriction on the maximum amount of top-ups. However top-ups made over

and above 25% of the basic regular premium paid till date will lead to an increase in Sum

Assured to the extent of 125% of the excess top up premiums. The minimum top-up

amount is Rs. 2,500. 98% of any amount paid as top-up is allocated to your funds.

Make partial withdrawals

After three years,

If your Unit Account Value is less than the Sum Assured, then the maximum partial

withdrawal can be Rs 5,000 per partial withdrawal.

If your Unit Account Value is more than the Sum Assured, then the maximum

partial withdrawal is the difference between the Unit Account Value and the Sum

Assured plus Rs 5000.

Higher amounts of partial withdrawals are allowed subject to underwriting.

Two partial withdrawals are allowed every year. Minimum Fund Value after each

partial withdrawal should be Rs 10,000.

For the purpose of partial withdrawals, top-ups would have a lock-in of three years from

the date the top-ups are made until then no partial withdrawals areallowed. This condition

is not applicable if the top-ups premiums are paid during the last three years of the Policy

term.

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Assured is minor, - partial withdrawals are allowed on or after attainment of age 18

returns which generate a high real rate of return in the long term while

Where the Life years or after 3 years if later.

the maturity date instead of a lump sum on the maturity date. You can choose to redeem

the units in his/her Unit Fund anytime up to 5 years from the date of maturity.

Who can buy this product?

Minimum Age at entry 30 days

Maximum Age at entry 65 years

Maximum Age at maturity 80 years

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CHANNEL DEVELOPEMENT

Why to recruit ?...............................................................47

Who to recruit ?...............................................................47-48

How to recruit ?..............................................................48-49

Recruitment Activities ?.................................................50-51

What to check while we are recruiting ?........................51-52

Advisor Role..52-53

Working Environment....53

Your opportunity....53

Benefits of joining HDFC SLIC....54-56

Recognition Programms.56

Career progression & future opportunity...57

Fast trak pinnacle programmes...57-58

Extensive Advisor Training...58-59

Support team the co59

Expectation of team60

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WHY TO RECRUIT

There are two aspects of employment in the insurance sector today. One is

Permanent Employment , for sales , operat ion , IT support , back off ice

services and So on. We are also offering the other kind of employment for

people to sell Life Insurance they are called Life Advisors. Or

Certifide Financial Consultant . This is a big area of employment.

Because we are supposed to !!

That the way to do this business.

More recruits, more active advisors, more BDM

WHO TO RECRUIT

Quali ty Deptt . has given some indicators in terms of what are the common

traits(Q-SCORE) of our successful advisors-

The commonalities were

Age : between 30 -45

Education : graduate

Family Income : above Rs. 2 lacs p.a.

The important fact to remember is that 61% of our RED

category advisors do not fall into any of this category-

This is a broad pointer for us to remember what are the his/her profile

Some other pointer from Quality

Most of the RED category advisors FAILED in the DISC profile

which means that DISC is good indicator of chanced of

success or failure

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Successful advisors usually have 2 years of work exp. In their

current profession

Small time businessmen / entrepreneurs v. successful profile

Women/Housewives are very successful- however they have notbeen sustainable over long periods. They usually have become

inactive after 6 7 months of joining. But till the time they are

working , thei r average WAPI & Productivi ty i s very h igh

compared to others.

People who are new to the city are least probable to do well.

How to Recruit?

Things which you should have while meeting the prospect.

BOP Presenter.

Reward points booklet OR take a copy of the catalog from the

website show the gifts, a prospect wouldnt understand

points, but will value the gifts.

Advisor Manual - can show how the manual can answer many

procedural issues.

Talk about email id & tech support the prospect would like to

know what all ill the company give

My Market show 100 show the booklet and stress its

importance.

Copy of any certificate MDRT certificates, Sales Champion

certificate etc to show recognition.

Insist on doing the BOP presentation it gives a complete

picture of what yo u have to present & answers a lot of

questions.

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Stress on di f ferent things to di f ferent prof i les change your

proposition as per the customer.

Women Rewards, - gift items, household goods, gold .

Young marketing background career Pinnacle.

Tax/ MF/ LIC Agents Rewards & Recognit ion, Star Clubs. As

foreign trips, preferential treatment in all aspects, dont talk

about commissions, stress on the extras.

Smal l bus inessman / Entrepreneurs show ROE Return on

Energy , t o t he ear n t he s ame amoun t o f money f rom your

business; you would be spending much more time & energy a

lot of capital from your pocket.

THE P OWER R EN EWA L C OMMISION S :Always , a lways ,

always stress on the fact that renewal commissions ARE THE

differentiator from every other sort of business

Spend lot of t ime on the Commiss ions s t ructure given in the

BOP

Try to do an example in f ront of them t ry ing to por t r ay the

commiss ions payable for the same amount of bus iness done

every year

THE EARNI NG CALCULATOR W ILL BE OF THE HELP

HERE

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Recruitment Activities

Each of us should have a mix of

Activities which have done well with us in the recent past:

49

Mass Media Activities - Spray & Pray Lead Generation activities

Ads, Classified, paper Inserts,

Pamphlets, Banners

Database cal l ing, cold cal l ing, te le-

cal ling , mai le rs , mass BOPs , f ish

bowl activity, Yellow Pages, Trade

Directories etc.

Over the last one year, the response

f rom thi s basket of ac tivi t ies has

gone down drast ical ly, thus forcing

us t o be c reat ive t o c reat e o ther

avenues

We need to develop lead generat ion

act iv i ti es more so as to have more

people to touch upon and tell about

this career opportunity


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Joggers Park

Summer Trainees

Mass BOPs

Database Calling

Lead Generation Activities

Tele Calling set ups

Some more ways on how to recruit:

Database Attack can be done through a trainee.

Cold Cal l ing helps a lot as the respondent does not waste

your time by dilly dallying.

RWA Activi t ies Tambola or children painting competi t ion-

gives real time leads, cost effective per lead.

Look at level MBA colleges for Pinnacle probable.

Source local databases Cable TV Service providers , home

delivery caterers.

Fish Bowl Activity- in high football places.

What to check while recruiting:

ENERGY, ENERGY always check the persons energy

levels , as this career i s al l about meet ing new people, f inding

new prospects and more so handling rejections

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His past / present occupation gives tremendous insight into his

energy levels

Show him the path in his current environment how insurance

selling can fit in lowers the resistance of time availability

Check his environment his family locality

Check whether he can work on his own

Find out i f he i s looking for money or career as he can have

both here

Things to check while recruiting:

Always t ry to meet the person at his res idence- check for the

local i ty, his household, s tandard of l iving, t ry to involve the

spouse in the presenta t ion so tha t they know what they are

getting into

Always check on need for money & a drive to do well in life if

he has been doing wel l in l i fe , he wi ll make ef for ts to do wel l

with us

Ask questions about his past, find instances of accomplishments

Keep checking on the pointers & do a mental check l i s t of the

acceptable points

Be convinced about the profile and then only go ahead

Advisor Role

To provide ongoing financial advice for his/her client:

Identify future client

Making appointments

Conduct financial review meetings with prospects/clients

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Close sale

Get referrals

Provide service to clients

Follows internal sales & reporting systems:

Working environment:

To be part of a world class sales team.

Work from your own office or residence.

Work full time or part time.

Earn commission, bonus $ incentives.

No upper limits in earnings .

Flexible career.

Your opportunity:

No startup capital required.

Flexible working environment.

Be your own boss.

Unlimited earning potential.

To be part of world - class team.

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BENEFITS OF JOINING HDFC SLIC:

Commission & Renewals: As insurance advisor you can earn handsome commission,which varies from 5% to 40% depending upon product to product and in addition 1st yearcommission entitled to renewal commission also.

Star on debut: If our new advisor sources RENP 2,00,000 in 30 days licensing thenhe/she is entitled to Silver Medal(Approxvalue Rs. 5,000) + certificate (signed by ZM& Reg. Mgr).

Rising Star on Debut: If our new advisors sources RENP of Rs.5,00,000 in 30 days

of licensing then he/she is entitled to Gold Medal(Approx value Rs.13000) + certificate(signed by ZM & Reg. Mgr).

Millionaire Star on Debut: If our new advisors sources RENP of Rs.10,00,000 in 30days of licensing then he/she is entitled to Gold Medal(Approx value Rs.25000) +certificate (signed by ZM & Reg. Mgr).

Global Star on Debut: If our new advisors sources RENP of Rs.24,00,000 in 30 days

of licensing then he/she is entitled to Gold Medal(Approx value Rs.60000) + certificate(signed by ZM & Reg. Mgr).

Star of the Month: Top 3 FCs, 1st Rank: Trophy + Certificate recognizing theperformance signed by ZM & Reg. Mgr., 2nd &3rdReg. Mgr.

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To recognize best talent our company has following clubs:

Bronze Club: Non Monetary Benefit 1%. Minimum RENP Rs. 3, 00,000 (contestperiod 5th July-30th Jun)

Silver Club: Non Monetary Benefit 3% and Retention Bonus Rs.5,000. MinimumRENP Rs. 6, 00,000 (contest period 5th July-30th Jun)

Gold Club: Non Monetary Benefit 5% and Retention Bonus Rs.10,000. MinimumRENP Rs. 15, 00,000 (contest period 5th July-30th Jun)

Toppers Club: Top 101st to 225th ranked CFCs on RENP Minimum RENP Rs.40,

00,000 Non Monetary Benefit 5% and Retention Bonus 1% Total 6%. (Contest Period5th July-30th Jun)

Centurion Club: Top 100 ranked CFCs on RENP Minimum RENP Rs.40,00,000 NonMonetary Benefit 5% and Retention Bonus 1.25% Total 6.25% up to 10% (ContestPeriod 5th July-30th Jun)

Other Schemes & Incentives:

Our Company announces from time to time different incentive schemes in which gifts varyfrom small item like Leather bag to luxury car for example Skoda Octavia.

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Career Opportunity for Certified FCs

Branch Manager

Assistant Sales Manager

Branch Development Manager

Sales Development Manager

Certified Financial Consultants

CFC Welcome Kit:

Welcome letter Laminated Identity Card

Copy of agency agreement

IRDA License

Bank account

100 visiting card from the branch

Commission booklet

Reward& recognition booklet

Pin to access HDFCSLIC website

Recognition programs :

Foreign trips & seminars.

Select club m emberships:

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o Presidents club.

o DHFC SLIC star club.

MDRT Membership.

Career progression & future opportunities:

Exclusive program for high potential achievers.

Hand picked advisors.

A fast track career path.

Recognition as Tiger

Continue doing your business.

Criteria.

-Age 25 40 years

-At least 1 year in system

-Case count 2 per month

Part time career as a Trainer.

Conduct foundation programs.

Share best flied practices.

Replicate your business.

Continue doing your business.

Criteria.

-Age 25-45 years

-At least 6 months s in s ystem

- 2 case count per month

Fast track pinnacle programmes:

A full time career as audit manager

Growth within HDFC SLIC.

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Greater earning potential

Personal Development

Performance criteria

-Age 25-45 years-At least 6month in system

-30 issuance within 6 months

Agency champion:

Take your business to the next level

Entrepreneurs ,develop your own business

Recruit new advisor and make your own team

Increased reach and earning potential

Criteria

-At least 1 year in system

-Minimum 60 policies and 9.0 lacs premium

-Selection process (assessment center)

Extensive training to make you a professionaladvisor:

Selling skills Product knowledge

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Relationship skills

Training delivery through several convenient options Face to face Online Self learning

Next steps

Confirmation of mutual interest

Selection interview

Profiling test dates

Draft payment favoring

Reliance life insurance co.Ltd

paya ble in Channai

Finalize Training Dates,venue

Support team the Company :

Field visits

Training on products

& selling skills

regular business reviews

be a coach & mentor

recognize high performers

help you become financially indipendent

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Expectations of team

Achieve sales targets

Participate in all meetings

Attend all training programs

Weekly reviews at the office

Follow the sales process

Follow weekly reporting process

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CONSUMER AWARENESS : INSURANCE SECTOR

IRDA's regulatory initiatives have set the stage for a new era in functioning of the

Insurance Companies.

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The theme for this conference organized by FORTE & IRDA: "Consumer Awareness :

Insurance Sector" is another major step which hopefully leads to meaningful discussions.

For the purpose of this conference, I rather use a different nomenclature to facilitate

recognizing the issues and aspects relevant to the theme:

Life insurance always involves two beneficiaries (consumers), namely, those who are

designated to benefit in the event of death of the 'insured', and also, and this is highly

important, the premium payer himself while he is living. The protective influence of life

insurance extends to the insured himself enabling him to live more efficiently and fully

than otherwise be the case.

When we start with the 'beneficiary' in the modern life insurance as the center of thinking,

the line of thought moves out in the direction of an ever widening circle. The thought

process gives rise to a host of economic, social, psychological, legal, actuarial and financial

implications of great magnitude.

Only by emphasizing the potential needs of "beneficiaries", by fostering a keen sense of

responsibility on the part of the family heads for the welfare of their dependents, by

developing effective procedures for translating family love and affection into practical

financial plans, and by using motivation techniques built on beneficiary relationships could

the institution of life insurance ever attain the stature and achievement required to make life

insurance a more effective instrument for safeguarding the interest of beneficiaries.

Legislators and regulators all over have evidenced their concern for the beneficiaries and

the latter's confidence in life insurance as a practical means of furthering the social welfare.

Courts have evidenced similar beliefs in their numerous decisions.

Every life insurance policy must some day be measured against the job that it must perform

for "beneficiaries". THE trouble is that if it is not measured until it becomes a claim and

then falls short of doing the job, there is nothing that can be done to remedy the situation.

Therefore, the important role of the intermediaries (Agents, Brokers etc). A skilled and

competent intermediary must be able to take men in their imagination into the future to be

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able to foresee the risk and by proper planning lessen the impact of financial consequences.

The primary service they offer should be prescriptive through recommending suitable

plans.

Product and Service Combined :

Because life insurance should be purchased to meet 'beneficiaries' financial needs, it is

essential to look beyond the policy as a product and consider their personal situation.

Service includes selling the right policy to fill the policy owner's need, making sure the

policy owner understands the transaction fully, arranging ownership and beneficiary

designation as required. Thus the product and the service are very much interwoven. In the

light of these factors, it is understandable that a number of life insurance industry

organizations abroad, specially in USA and Canada are continuously engaged in special

research projects with a view to understanding better the service function. Improvements in

the nature and quality of service to beneficiaries/policy owners should follow when the

industry has a clearer understanding of what services policy owners require and how they

are best rendered.

Important as life insurance is today, its real progress is yet to come, largely through the

national education system - collegiate level education as well as public education. Our

time-honoured professions use colleges and universities as allies for the effective initial

preparation of their practitioners and to provide opportunity for continued study. It has to

be so with insurance subject as well which is a relative newcomer on our socio-economic

scene. Insurance and financial counseling as a vocation and profession could advance and

acquire stature and dignity in direct proportion to the education received and success

achieved by those in the business and with the public.

Also Public education in insurance represents a "great selling / teaching movement" to

spread the beneficial influence of the concept of life insurance into millions of our homes

and business enterprises. Public education should be designed to prepare the buying public

for ready and willing acceptance of the professional service of the intermediaries. In fact,

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this should be the first and most important step taken in the process of developing

marketing methodology and marketing orientation.

It is true that the life insurance business has tended to describe as a duality, a combination

of protection and savings account, what is really the unity of permanent life insurance. We

have not communicated with sufficient clarity that the savings like features of life insurance

are a by-product of the reserves necessary for long term or life time protection, and that

without them the protection runs out when the need might be greatest.

Need for regulatory mechanism is recognized as Insurance is effected with public interest

in view of the large numbers involved. As a contract necessarily embodying a host of legal

details, and specially imbalance of bargaining power of the insured (Asymmetrical

information) insurance invites regulatory oversight to adequately protect the insurance

consuming public. (beneficiaries)

No element of insurance business deals more closely with the insurance consuming public

than insurance intermediaries(Agents, brokers and others)

Most of the major problems and issues confronting the life insurance business are market

oriented. Questionable market conduct and misleading sales practices on a widespread

basis could emerge as a major issue.

Related closely to these issues are:

1. How should industry foster thinking on risk with a view to building up a body of

thinkers and a body of literature, which shall be the beginning of more adequate

recognition of the subject influencing our actions?

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2. What kind of men and women should be selected to solicit etc., insurance? What

kind of persons to direct the life insurance marketing programme? It is true we have

not perfected the techniques of selecting and recruiting, and managing retention of

agents to keep turnover within limits that would be optimum for the economics of

the business and for the satisfaction of all the individuals involved.

Insurance industry is in transition and passing through an era of discontinuity.

Competitiveness demands a commitment to truth and willingness to confront brutal facts of

reality. We need to cultivate and use "truth tellers" - people on whom we can rely to "call

them the way they see them". We need "unfiltered feedback".

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Changing Consumer Perceptions aboutInsurance HDFC SLIC

Abstract

The caselet details the well-designed marketing communications initiatives developed by

HDFC Standerd Life Insurance (HDFC SLIC) that helped it gain leadership position in the

Indian life insurance market. During its initial years HDFC SLIC focused on creating a

strong brand identity and awareness and designed the marketing communication strategy

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accordingly. However, in 2002 it completely changed the communications strategy and

began to promote specific products from its product portfolio based on the consumer

research study. One of the promotional objectives designed was to create a feel good factor

around retirement and change customers perception of retirement as a mark of old age and

loss of financial independence

Issues:

Role of marketing communications in financial services sector

Corporate advertising and its role in financial services

Product specific advertising and its significance

Importance of post advertising tests

Introduction

In the year 2000, the Government of India opened up the life insurance market to private

players. Till then, the Indian life insurance industry had been dominated by Life Insurance

Corporation of India (LIC), the only player in the insurance market. This monopoly had

created such a strong brand identity and awareness for LIC that LIC became a generic word

for life insurance in India.-

After deregulation, many domestic and international players entered the life insurance

market.However, the Indian insurance industry continued to face various problems such as

low penetration (only 22% of the insurable population were insured) and low premium to

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GDP ratio (of 1.3). Growth was also hampered by the existing customer perception that life

insurance was a tax saving tool. Another problem was that the entry of many players had

cluttered up the market.

Questions for Discussion:

1. HDFC SLIC deviated from the usual advertising strategy that other insurance providers

adopt of promoting the product line. Instead, it launched an ad campaign Sar Utha Ke

Jiyo, that highlighted the HDFC SLIC brand. Explain the motives of the co. in launching

this ad campaign?

2. Though HDFC SLIC corporate advertising campaign reaped rich dividends, the companychose to adopt a product specific advertising strategy in later years. What customer

demographics did the company identify, that led it to adopt a change in the existing

advertising strategy?

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RESEARCH METHODOLOGY

The Research specifies the following information required to address needed issues,

designs the methods for collecting information, manages and implements the data

collection process, analyzes and communicates the findings and their implications.

The research methodology implemented in this project primarily consists of personal

interviews with the Public ofGORAKHPUR. To understand and evaluate the Interest of

earned extra income and the perception of financial Advisors in HDFC STANDARD

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LIFE INSURANCE, I had conducted interviews to get the general overview about the

company policies, system of working and employee psychology.

Information Sources:

PRIMARY DATA was collected with the help of interviews with the employees of

different cadre and a structured questionnaire has been floated in different places to get

inside knowledge of the research topic.

SECONDARY DATA was collected through the Internet, Magazines, Newspapers and

Corporate Profile

Data Collection Tools:

The main methodology used was Descriptive Design with its main tools being

Discussion Guidelines

Questionnaire

Personal Interviews

Sample size:

It could be very difficult and more time consuming to collect data from whole population,

so accordingly the sample size of 100 has been taken through careful design and analysis,

for this study purpose.

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RESEARCH OBJECTIVES

In any research the objective or purpose for which the research has been conducted lies on

the focal point around which whole project revolves.

It is the foundation on which the project is build

The objective of my project was-

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To find out the perceptions of Respondent for the interest of the extra

income and join as financial advisor in HDFC STANDARD LIFE INSURANCE CO.

To find out the perceptions of Financial Advisor who are working as a

financial Advisor in HDFC STANDARD LIFE INSURANCE CO.

The sub objectives of my project are-

To find out the percentage of respondent for the interest of extra income

To find out the percentage of financial advisor who are working in HDFC

STANDARD LIFEINSURANCE CO.

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QUESTIONNAIRE

1:- Name ..

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2:- Age

A) less than 25 B) 25-35 C) 35-50 D) 50 Above

3:- Address

4:- Contact No.5:-Annual Business Provided by Advisors?

A) 0-35000 B) 35000-70000 C) More than 70000

6:-Satisfaction Level of Financial Advisor?

A) Highly Satisfied B) Satisfied C) Dissatisfied D) Highly Dissatisfied

E) Cant Say

7:- Reasons of Liking HDFC SLIC?

A) Integrity B) Good Working EnvironmentC) Customer- friendly D) Can work all over the country

8:-Working Environment of the Company?

A) Very Good B) Good C) Average D) Poor

9) Pattern of Working ?

A) Part Time B) Full Time

10) Duration of Working with HDFC SLIC?

A) 0-1 yrs. B) 1-2 yrs. C) 2-3 yrs. D) More than 3 yrs.

11) Previous Sales Experience Sales of Advisors?

A) Nill B) Less than 1 yrs. C) 1-3 yrs. D) More than 3 yrs.

12) Duration of Advisor Residence in Gorakhpur?

A) By Birth B) less than 5 yrs. C) More than 5 yrs.

13) Total Household Income of Advisor (per annum)?

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A) Less than 1 lakh B) 1 lakh - 2 lakh C) 2 lakh 3 lakh D) More than 3 lakh

14) Main Profession of Advisors?

A) Engineer B) Doctor C) CA/CWA/CFA/ CS D) Lawyer

E) Teacher F) MBA G) Businessman H) others

15) Educational Qualification of Advisors?

A) Post Graduate B) Graduate C) Diploma D) 12th

16) Marital Status of Advisor?

A) Unmarried B) Ma

“ANALYSIS OF AGENCY DEVELOPMENT& CONSURMER AWARENESS IN LIFE INSURANCE”

Documents