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HDFC STANDARD LIFE

HDFC STANDARD LIFE INSURANCE COMPANY

PROJECT ON

Under:

Mrs. SUDESHNA NAMBIAR

Mr. ARUP KR. BARICK

Prepared by:

ANIRBAN DAS (010104026)

TANMOY MONDAL (010104106)

SUTIRTHA RAY (010104108)

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HDFC STANDARD LIFE

ACKNOWLEDGEMENT

We would like to acknowledge our venerable project guides Mrs. SUDESHNA NAMBIAR

(Branch Manager) and Mr. ARUP KR. BARICK (Sales Development Manager) for giving us

such a good opportunity to prepare our project report on DISTRIBUTION CHANNEL

DEVELOPMENT OF HDFC SLIC that was an excellent learning experience for us.

We take this opportunity to thank them without whose support, guidance & mentorship this

project would not have been possible. We are grateful to them for their incredible co-operation

in this study paper.

We would also like to acknowledge all those persons who directly or indirectly have helped us in

preparing this study paper.

PREFACE

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HDFC STANDARD LIFE

We know that Service Industry has a major share in the GDP. This Industry is booming with a

high growth rate. We have done our training in one of the Sectors of this Industry. The sector

is INSURANCE SECTOR. This has a growth rate of more than fifty percent. This is a

booming sector with many major companies. We had our training inHDFC STANDARD

LIFE. It is one of the tops 5 life insurance company in India.

We are very obliged to complete our training in this organization. It was a good learning

experience in HDFC SLIC. Under supervision ofMrs. SUDESHNA NAMBIAR and

Mr. ARUP KR. BARICKwe have completed our project. They gave us a good opportunityto learn about Insurance and its operations and we are pleased to have a great experience.

The training was on distribution channel and its development. We have prepared a project on

this and the title is DISTRIBUTION CHANNEL DEVELOPMENT OF HDFC

SLIC.

ANIRBAN DAS

TANMOY MONDAL

KOLKATA

14.07.2006

SUTIRTHA RAY

CONTENTS

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HDFC STANDARD LIFE

PAGES

1. Introduction 5

2. Company Details 13

3. Products 16

4. Distribution Channel Of HDFC SLIC 31

5. Training 33

6. Questionnaire And Survey Results 35

7. Solutions 42

8. Conclusion 54

9. Bibliography 55

1. INTRODUCTION

History of Insurance:

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HDFC STANDARD LIFE

The business of insurance started with marine business. Traders who used to gather in the

Lloyds coffee house in London agreed to share the losses to their goods while being carried

by ships .The losses used to occurred because of pirates who robbed on the high seas or

because of bad weather spoiling the goods or sinking the ship The first insurance policy

was issued in 1583 in England.

Insurance in India:

The Insurance sector in India dates back to 1818when the first insurance company was

established-the Oriental Life Insurance Company at Calcutta. This was followed in quick

succession with the establishment of Bombay life assurance Company (1823) & madras

Equitable Life Assurance society (1829). In general insurance business Triton Insurance

Company (1850) was the first to be established.

The first attempt at regulation of the insurance business in India was through the Indian

life Assurance companies act in 1912. This was later board based and the Insurance Act

came into existence from the year 1928 onwards. The insurance act was subsequently

reviewed and a comprehensive legislation was enacted called the Insurance Act, 1938.

The insurance sector essentially consists of the LIC and GIC, given the monopoly that these

corporations enjoy with respect to the life insurance business and non-life insurance

business.

The nationalization of life insurance business took place in 1956 when 245 Indian and

foreign insurance and provident society were first amalgamated and then nationalized. The

Life insurance Corporation of India (LIC) came into existence and has since enjoyed a

monopoly over the insurance business in India.

As of march 31, 1997, the total life fund of LIC was of the order of Rs.87, 759.96 crore, the

total sum assured (including bonus) was more than Rs.350, 000 cr. T The total number of

policies was 7.72 crore. The following tables given idea of the total business in force for lifeinsurance business.

An interesting feature about the growth of the life insurance business in India has been

that much of the growth has come in the decade 1987-97.For an example during this

period the number of policies increased from 2.98 crore to 7.72 crore representing an

annual compounded growth rate at more than 10%.

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HDFC STANDARD LIFE

198.4

112.6

200

250

sSource: Insurance In Asia, The Financial Times, quoted from Tillinghast Study

A monopolistic clout on the market always results in certain inefficiencies creeping in for

which LIC is no exception. The opening up of insurance sector will definitely make this

giant to have an introspection so as to make them ready and fit to face competition. This

will first get reflected in terms of lower premia and new products.

Needs for privatization:

Sum Assured &

Bonus(Individual)

(Rs in crore )

No of policies

(Individual)

(in Lakhs)

Premium Income

(individual)

(Rs. In Cr.)

1992-93 178,120 566.79 7,146.24

1993-94 208,619 608.73 8758.19

1994-95 254,572 655.29 10,384.91

1995-96 295,758 709.60 12,093.631996-97 344,619 777.50 14,499.50

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HDFC STANDARD LIFE

It is an indisputable fact that India is utterly under insured not only when compared to

other countries, but also in relation to its own needs. While only 20% of the population has

any insurance coverage, such covers meet only 25% of their needed and affordable cover.

The gap is even more glaring when we compared India with other developed countries like

the USA ,Japan,etc.The per capita life insurance premium in India is a dismal $4 against

that of $964 for the US and $3817 for Japan. Insurance premium as a percentage of GDP

is only 1.3 for India against those of 7.3 for the US and 10.10 for Japan. It is hoped that

with the privatization Indias total premium could go up to $200 to 4 300 million.

$4,800$5,000

$6,000

PR

EMIUMP

ERC

APITA

Source: Insurance In Asia, The Financial Times, quoted from Tillinghast Study, 1999

Numbers apart, privatization of the insurance sectors is expected to bring in some

competition and with that an improvement in the insurance products and services. With

the increase in number of players it may not be a difficult task to extend the insurance

coverage to a larger section of the society. However will the expansion of this sector lead to

any improvements in the overall savings rate or will it be at the cost of other sectors like

banks and mutual funds? It depends on the kind of products that will be offered and the

kind of marketing strategy that will be determine the speed at which the sector is going todevelop. Product designing is no doubt a major part of the marketing strategy, but even a

good product fails to take off, if it is not marketed properly. The LIC does not lack in the

variety and numbers of products but due to its neglect on the marketing remains grossly

under tapped.

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HDFC STANDARD LIFE

% SHARE OF C

31%

2.30Source: Insurance In Asia, The Financial Times, quoted from Tillinghast Study, 1999

CON

14%

13

14%

16%


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HDFC STANDARD LIFE

52%

50%

60%

% SHARE

CON


Therefore, the insurance sector offers a great opportunity for the private sector. The big

players can set the ball rolling and reap the huge profit.

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HDFC STANDARD LIFE

Insurance Sector Reforms:

Objective:

10

Insurance Sector reforms: 1993-2000

April, 1993 Malhotra Committee on insurance sector reforms and deregulation set up.

January, 1994 Malhotra Committee submits report to Finance Minister.

January, 1996 An interim Insurance Regulatory Authority set up through a resolution.

September, 1996 Insurance Regulatory Authority Bill drafted.

December, 1996 The IRA Bill introduced in parliament and subsequently referred to a standing

Committee.

August, 1997 The IRA Bill is withdrawn following opposition to foreign participation in

Domestic Insurance Sector.

November, 1997 Union Government gives greater autonomy to LIC, GIC and its four

subsidiaries.

June, 1998 Union Budget announces opening up insurance sector.

November, 1998 Union Cabinet decides to allow 40% foreign equity participation. Opposition t

the decision intensifies.

December, 1998 News reports suggest that the Union Cabinet may water down the proposal to

allow 40% FDI.

January, 1999 Notification of IRA as a statutory authority and necessary amendments to LIC

and GIC acts.

March, 1999 IRA to set procedures for filing applications.

April/July, 1999 3-month open window for receipt of applications.

December, 1999 In-principle approvals to be granted.

Year 2000 Private Insurance Companies hit the market.


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HDFC STANDARD LIFE

How to increase penetration level of Insurance in Indian market? We will try to recognize

the problems in the market of Insurance and in the distribution channel through our

project. We will also try to give some feasible solutions on it.

Indian Financial Market:

There are two kind of investments in the financial market one is short-term another islong-term. We will say something about long-term investments only. Various long-term

financial tools are

1. Post Office Savings: It provides an interest rate of 8% per annum, which is paid

monthly. Minimum amount, which can be invested, is Rs.1000/- and additional

investment in multiples of 1000/-. Maximum amount is Rs.30000/- (if single) or

Rs.6,00,000/- (if held jointly) during a year. It has a maturity period of 6 years. A

bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if

deposit is more than one year old. A deduction of 5% is levied from the principle

amount if withdrawn prematurely; the 10% bonus is also denied.

2. Public Provident Fund : A long term savings instrument with a maturity of 15 yearsand interest payable at 8% per annum compounded annually. Tax benefits can be

availed for the amount invested and interest accrued is tax free.

3. Company Fixed Deposit : These are short-term (six months) to medium-term (three

to five years) borrowings by companies at a fixed rate of which is payable monthly,

quarterly, semi annually or annually. They can also be cumulative fixed deposits

where the entire principal along with the interest is paid at the end of loan period.

The rate of interest varies between 6-9% P.A. for company FDs. The interest

received is after deduction of taxes.

4. Bonds : It is issued for a period of more than one year with the purpose of raising

capital. The central or state government, corporations and similar institutions sell

bonds. A bond is generally a promise to repay the principal along with a fixed rateof interest on a specified date, called the maturity date.

5. Mutual Funds : Mutual fund units are issued and redeemed by the Fund

Management Company based on the funds NAV, which is determined at the end of

each trading session. NAV is calculated as the value of all the shares held by the

fund, minus expences, divided by the number of units issued. Mutual Funds are

usually long term investment vehicle though there some categories of Mutual Funds,

such as money market mutual funds which are short term instruments.

6. Insurance : A contract (policies) in which an individual or entity receives financial

protection or reimbursement against losses from an insurance company. The

company pools clients risks to make payments more affordable for the insured. A

protection against the loss of income that would result if the insured passed away.The named beneficiary receives the proceeds and is there by safeguarded from the

financial impact of the death of the insured. The goal of life insurance is to provide a

measure of financial securities for your family after you die. So, before purchasing a

life insurance policy, you should consider your financial situation and the standard

of living you want to maintain for your dependents or survivors.

So insurance is an important financial tool by which one can save now and fulfill future

needs of family dependents even if he/she is not present then.

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HDFC STANDARD LIFE

Different Insurance Companies:

Life Insurers

S.No NAME OF THE COMPANY PARTNERS AND STAKES

1. Aviva Life Insurance Co. India Pvt. Ltd. DABUR (74%) & AVIVA LIFE, UK (26%)

2. Bajaj Allianz Life Insurance CompanyLimited.

BAJAJ (74%) & ALLIANZ LIFE INSURANCE,GERMANY (26%)

3. HDFC Standard Life Insurance Co.Ltd

HDFC (79.44%) & STANDARD LIFE, UK(20.56%)

4. ICICI Prudential Life Insurance Co. Ltd ICICI BANK (74%) & PRUDENTIAL LIFE, UK(26%)

5. Life Insurance Corporation of India LICI (95%) & GOVT. OF INDIA (5%)

6. ING Vysya Life Insurance Company Pvt.

Ltd.

VYSYA BANK (74%) & ING Life (26%)

7. Max New York Life Insurance Co. Ltd MAX GROUP (74%) & NEW YORK LIFE, USA(26%)

8. Met Life India Insurance Company Pvt.Ltd.

MET LIFE

9. Kotak Mahindra Old Mutual Life InsuranceLimited

KOTAK MAHINDRA (74%) & OLD MUTUAL LIFE(26%)

10. SBI Life Insurance Co. Ltd SBI

11. Tata AIG Life Insurance Company Limited TATA (74%) & AIG LIFE (26%)

12 Reliance Life Insurance Company Limited. RELIANCE CAPITAL (100%)

13 Birla Sun Life Insurance Co. Ltd BIRLA (74%) & SUN LIFE (26%)

14 Sahara India Life Insurance Co, Ltd. SAHARA GROUP (100%)

15 Shriram Life Insurance Co, Ltd. SHRIRAM GROUP (100%)

12
http://www.avivaindia.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.licindia.com/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.maxnewyorklife.com/http://www.metlife.co.in/http://www.metlife.co.in/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.sbilife.co.in/http://www.tata-aig.com/http://www.reliancelifeinsurance.co.in/http://www.birlasunlife.com/http://www.saharalife.com/http://d/Documents%20and%20Settings/TOTON/My%20Documents/My%20Pictureshttp://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.licindia.com/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.maxnewyorklife.com/http://www.metlife.co.in/http://www.metlife.co.in/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.sbilife.co.in/http://www.tata-aig.com/http://www.reliancelifeinsurance.co.in/http://www.birlasunlife.com/http://www.saharalife.com/http://d/Documents%20and%20Settings/TOTON/My%20Documents/My%20Pictureshttp://www.avivaindia.com/


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HDFC STANDARD LIFE

2. COMPANY DETAILS

HDFC STANDARD LIFE INSURANCE COMPANY LTD. (HDFC-SL)

Tie up with Standard Life Assurance Company, U.K.

HDFC holds 79.44% of the equity of HDFC-SL.

Offers 13 individual products and 7 group plans along with 5 optional riders.

Premium income of Rs.6.87 bn for FY05 (Previous year Rs.2.98 bn.

FY05 growth in total premium income of 131% over FY04.

Achieved a total sum assured of over Rs.306 bn in respect of over 8, 97,000 lives

covered till March 31, 2005.

Operates out of 104 offices across the country and has a network of 23,671.financial

consultants 204 corporate agents and 69 brokers. HDFC network is used to cross sell by offering packaged products.

HDFC SL had claims amounting to Rs 54.8mn in FY05.

HDFC-SLS INDIAN PARENTAGE

HDFC currently holds 22.22% of equity in HDFC Bank.

Stock also listed on NYSE in the form of American Depository Shares.

Net work of 467 branches in 211 locations & over 1147 ATMs

Customer base of over 6.75 million accounts.

Key business areas Wholesale banking Retail banking Treasury operations.

Financials (as per Indian GAAP) FOR THE YEAR ENDED March 31, 2005.

Total net revenues: Rs 24.29bn increase of 33.6% over previous year.

PAT: Rs 6.66billion,increase of 30.6% over previous year

Return on Equity:20.4%(annualized)

Market capitalization: Rs 160 billion (US$ 3.6billion).

CONSOLIDATED EARNINGS (As at March 31, 2005)

HDFC HDFC Consolidated

Return on Equity 28.5% 28.3%Return on Average Assets 2.9% 2.9%

Capital Adequacy 13.4% 13.7%

Earning per Share (Rs) 41.7 45.1

PAT(Rs in billion) 10.37 11.24

Total Assets (Rs. In billion) 405.30 427.90

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HDFC STANDARD LIFE

AWARDS & ACCOLADES

CII-EXIM Bank Commendation for commitment to Total Quality Management-

2000

Euro money identified HDFC as one of the Asias top 10 best managed companies

in the financial sectors-2001

Rated as the best Non Banking Financial Company in Asia by Institutional

Investor Research Group-2002. HDFC won the International Financing Review- Asias India Capital Markets

Deal of the year for2002 Award for its FRN issue in the international market

-2002

HDFC was identified as the best managed financial institution in the India in the

Fox- Pitt Keltons survey of Asias best managed banks and financial institutions-

2002.

Among the Top 10 Most Respected Companies in India-Business World.

Indias second Best Managed Company-Finance asia-2003.

National Award for Excellence in Corporate Governance by the Institute of

Company Secretaries of India.

HDFC-SLS UK HERITAGE

The Standard Life Insurance Assurance Company

Founded in 1825.

Mutual Life Insurance Company since 1925.

Largest Mutual life Insurance Company in Europe.

AAA rated by Moodys and Standard & Poors.

Assets under management over Rs.581000 cr. (83.2 billion pound)

Table Showcasing Financial Results:

ParametersApr-Mar2004-05

(Rs. Cr.)

Apr-Mar2005-06

(Rs. Cr.)

% Growth

Total received premium 668.40 1532.21 129.23

i. New Business 486.15 1028.94 111.65

ii. Renewal 182.25 503.27 176.14

Effective Premium

Income (Total)

436.08 887.30 103.47

Group Business Premium

(EPI)

49.40 135.15 173.58

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HDFC STANDARD LIFE

Head Office- Edinburgh, Scotland (UK)

PresenceCOUNTRY BRANCHES

UNITED KINGDOM 31

CANADA 11

IRELAND 7

GERMANY 1

AUSTRIA 1 SALES OFFICE

SPAIN 31

HONG KONG 1 REPRESENTATIVE OFFICE

CHINA 2 REPRESENTATIVE OFFICE

TOTAL ASSETS UNDER MANAGEMENT: - Rs.650000 Cr.New premium income in 2001-Rs. 58000 Cr.

Triple AAA rated by Standard & Poors and Moodys

AWARDS & ACCOLADES

YEAR AWARDS

1999 COMPANY OF THE DECADE

1998 COMPANY OF THE YEAR



1995 4 STAR SERVICE AWARD

1994 OVERALL BEST COMPANY



1991 3 STAR SERVICE AWARD

1990 BEST MORTGAGE SERVICES

EXPERIENCE IN THE INDIAN MARKET

First market entry -1847

Innovative products & processes

Last claim settled in 1997

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HDFC STANDARD LIFE

3. PRODUCTS

HDFC SLIC has two types of products mainly. One is conventional and another is unitlinked.

Under conventional the products are

1. Endowment Assurance:

This policy provides a combination of savings and life insurance. The sum assured plus any

bonuses will be payable at the end of the term or on death if earlier. The commitment is to

pay a level premium regularly throughout the life of the policy. The Endowment Assurance

can be customized to meet the needs by adding any combination of up to 4 rider benefits.

An endowment policy covers risk for a specified period, at the end of which the sum

assured is paid back to the policyholder, along with the bonus accumulated during the term

of the policy. It is this feature - the payment of endowment to the policyholder when the

policy's term is complete - that rightly accounts for the popularity of endowment policies.

Typically, as your children grow up and get independently settled, your responsibility to

protect the family financially reduces significantly. The focus now shifts to managing a

smaller family - perhaps only yourself and your spouse - after retirement. This is where the

endowment - the original sum assured and the accumulated bonus - received come in

handy. You can either use the endowment amount to buy an annuity policy to generate a

monthly pension for the rest of your life, or put it into any other suitable investment ofyour choice. This is the major benefit that an endowment policy offers over a whole life

one.

Policy Feature:

Min Join Age 12

Max Join Age 60

Min Amtinsured

25000

Max Amtinsured

No upper limits

Max age at maturity 75

Min premium payingterm

10

Max premium payingterm

30

Premium paymentoptions

Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

2. Term Assurance Plan:

Under the Term Assurance Plan, a sum assured is payable in case of death of the life

assured during the term of the contract. One can choose a lump sum that would replace the

income lost ones family in the unfortunate event of life assureds death. It is a very low

premium policy. The Term Assurance Plan can be customized to meet the needs by adding

optional rider benefits.

Term life policies cover risk only during the selected term period. If the policyholder

survives the term, the risk cover comes to an end. A term plan is designed to meet the needs

of people who are initially unable to pay the larger premium required for a whole life or an

endowment assurance policy, but hope to be able to pay for such a policy in the nearfuture. Hence, they may leave the final decision regarding the plan to a later date, when a

better choice can be made. No surrender, loan or paid-up values are granted under these

policies because reserves are not accumulated. If the premium is not paid within the grace

period, the policy will lapse without acquiring any paid-up value.

However, a lapsed policy may be revived during the lifetime of the life assured but before

the expiry of the period of two years from the due date of the first unpaid premium, on the

usual terms. Accident and/or disability benefits are not granted on policies under the term

plan.

Policy Feature:

Min Join Age 18

Max Join Age 60

Min Amtinsured

N/A

Max Amtinsured

No upper limits



5

Max premium payingterm 30


Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

3. Personal Pension Plan:

It is basically a savings contract, which is designed to provide an income for life from

retirement, with an open option to take the lump sum elsewhere to buy the annuity,

provided it is permitted by prevailing regulations. The commitment is to pay a single

premium or level premiums with installments due every quarter, half-year or year

throughout the deferment period of the policy, after which you will start receiving your

pension.

An annuity is an investment that you make, either in a single lump sum or through

installments paid over a certain number of years, in return for which you receive a specificsum every year, every half-year or every month, either for life or for a fixed number of

years. After the death of the annuitant or after the fixed annuity period expires for annuity

payments, the invested annuity fund is refunded, perhaps along with a small addition,

calculated at that time. Annuities differ from all the other forms of life insurance discussed

so far in one fundamental way - an annuity does not provide any life insurance cover but,

instead, offers a guaranteed income either for life or a certain period. Typically, annuities

are bought to generate income during one's retired life, which is why they are also called

pension plans. Annuity premiums and payments are fixed with reference to the duration of

human life. Annuities are an investment, which can offer an income you cannot outlive and

provide a solution to one of the biggest financial insecurities of old age; namely, of outliving

one's income.

Policy Feature:

Min Join Age 18

Max Join Age 60

Min Amtinsured

N/A

Max Amtinsured

No upper limits


Min premium paying

term10


40


Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

4. Childrens Plan:

Under this plan, childs future needs whether it is education, marriage or establishing a

professional career can be taken care of. The plan is affordable and can be customized.

This plan can also be chosen by grandparents, other relatives or any adult for the benefit of

a child.

Children's insurance policies include those through which parents or legal guardians can

provide for life insurance for their child from birth. The risk cover commences from the

child attaining the age of 12 / 17 / 18 / 21 (known as the Date of Risk), and will vest itself on

the child upon his or her attaining majority on completion of age 21, if the case demandsso. Until the child attains majority, the parents are the owners of the policy and have to

pay the premium periodically. It is important that these policies are considered only after

the insurance portfolios of the parents have been completed. The family's insurance budget

should primarily buy as much life insurance as possible on the lives of the breadwinner and

should not be frittered away on the children's lives as their insurance is useless in the event

of any premature death of the breadwinner. In fact, those lives should be insured that have

maximum economic benefits. Quite often, policies lapse if and when the premium-paying

breadwinner of the family dies before the vesting age. After all, the child may not be in a

position to continue paying the premiums.

Policy Feature:

5. Unit Linked Plans:

Unit Linked policies are investment policies. There are three kinds of unit linked products;

they are Endowment, Pension and Young star. These policies are market related. Basically

there are 6 funds in which the money will be rotated. Within these 3 funds are safe (no

Min Join Age 18

Max Join Age 60

Min Amtinsured

50000

Max Amtinsured

No upper limits



10


25


Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

market risk) and others are NAV related (market risk). The facilities are same as

conventional, but chance of return is very high.

ICICI PRUDENTIAL PRODUCTS:


ICICI Pru Forever Life

Persons who are not in any pension schemes and those who are not members of any

medical scheme can have this policy. A Deferred annuity plan, offering life cover during

the premium payment period. Plan provides for regular income for life after a stipulated

date. Annuity amount depends on the amount of premium paid and the type of annuity

opted. It is a two phased plan. Regular income starts at the vesting age Based on the option,the amount is determined There is an option to take 25% of SA + GA + VB as lump sum.

Remaining 75% provides future income. Under such plan life annuity is paid to the insured

and then to the spouse with return of purchase price to the beneficiary on death of last

survivor. It may be noted that one of these options can be chosen before six months of the

vesting date. Additional SA is payable if death is due to an accident.

Policy Feature:

ICICI Pru Save n Protect

It is an ideal plan for persons who wish to accumulate savings on a regular basis, while

having insurance protection. It is basically an Endowment Assurance Plan with deferred

participation in profits and extended life cover. It is a fixed term plan - combination of both

savings & life cover. 9 medical conditions are covered. On admission of a claim, full SA +

GA + VB are paid and policy contract terminates with all riders ceased. Claim under this

rider is not admissible during first six months of the policy. Major Surgical Assistance is

available. Full SA plus GA plus vested bonuses during the full term additionally, one gets a

Min Join Age 18

Max Join Age 55

Min Amtinsured 50000

Max Amtinsured

No upper limits



N/A


N/A


Yearly

Half yearly

Quarterly

Monthly

20


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HDFC STANDARD LIFE

free life cover for 5 years for 50% of original. No Evidence of health is required and no

premium need to be paid for this additionally, one gets a free life cover. Full SA plus GA &

vested bonuses are payable Death Benefits (Accidental) Waiver of future premiums 10% of

SA each year for 10 years. Additional SA, if death is due to an accident while traveling as a

passenger in train or bus can be availed under the policy and loan interest is chargeable.

Policy Feature:


Life Guard

The Pru Life guard or Term Level Assurance plan protects your family in the event of your

death. On death, the sum assured is paid to the beneficiary. There are no maturity benefitsin case of the Single Premium Level Term policy. The Pru Life guard or Term Level

Assurance plan protects your family in the event of your death. On death, the sum assured

is paid to the beneficiary. There are no maturity benefits in case of the Single Premium

Level Term policy. There are no maturity benefits in case of the Single Premium Level

Term policy. If the life assured is totally and permanently disabled as a result of an

accident the following additional benefits paid: 10% of the sum assured every year for 10

years commencing from the first anniversary of the Disability Date.

Policy Feature:

Min Join Age 15

Max Join Age 60

Min Amtinsured

20000

Max Amtinsured

No upper limits


Min premium paying term N/A

Max premium paying term N/A

Premium payment options

Yearly

Half yearly

Quarterly

Monthly

Min Join Age 18

Max Join Age 50

Min Amtinsured

100000

Max Amtinsured

1000000


Min premium paying term N/A

Max premium paying term N/A


Yearly

Half yearly

Quarterly

Monthly 21


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HDFC STANDARD LIFE


ICICI Pru Forever Pension Life

The plan provides regular income for life, after a stipulated date. The amount you receive

depends on the premium you pay till the stipulated date and the option you choose. It also

offers life cover during the deferment phase. The Forever Life plan provides regular

income for life, after a prescribed date. The amount you receive depends on the premium

you pay till the stipulated date and the option you choose. Besides it also offers life cover

during the deferment phase. Regular premiums are paid under this stage. If death occurs

during this phase, a regular income stream is provided to the insureds spouse. The amount

payable is determined on the basis of the sum assured plus guaranteed additions and vestedbonuses. This benefit is payable in case of disability that occurs as a result of an accident. If

the life assured is totally and permanently disabled as a result of an accident the following

additional benefits paid: 10% of the sum assured every year for 10 year.

Policy Feature:

Min Join Age 18

Max Join Age 55

Min Amtinsured

50000

Max Amt

insured No upper limits



N/A


N/A


Yearly

Half yearly

Quarterly

Monthly

4. Childrens Plan:

Smart Kid

Under this plan, childs future needs whether it is education, marriage or establishing a

professional career can be taken care of. The plan is affordable and can be customized.

This plan can also be chosen by grandparents, other relatives or any adult for the benefit of

a child.

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HDFC STANDARD LIFE

It has the maturity benefit, death benefit. In this case the beneficiary is the child and life

assured is policy holder and if policy holder dies the beneficiary will get all the benefits.

Policy Feature:




there are 6 funds in which the money will be rotated. Within these 3 funds are safe (nomarket risk) and others are NAV related (market risk). The facility is same as


Min Join Age N/A

Max Join Age 12

Min Amtinsured

100000

Max Amtinsured

3000000


Min premium paying term 10

Max premium paying term 22


Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

TATA AIG PRODUCTS:


ASSURE Security & Growth Plans

This policy provides a combination of savings and life insurance. The sum assured plus any

bonuses will be payable at the end of the term or on death if earlier. The commitment is to

pay a level premium regularly throughout the life of the policy. The Endowment Assurancecan be customized to meet the needs by adding any combination of up to 4 rider benefits.

Policy Feature:

Min Join Age N/A

Max Join Age N/A

Min Amtinsured

N/A

Max Amtinsured

N/A

Max age at maturity N/A

Min premium paying

term 10


30


Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE


ASSURE Lifeline Policy

Individuals who want only risk cover.

1) Option to add any of the Accident Benefits riders.

2) Each of these policies can also be converted to any of our select savings plans

MATURITY BENEFIT: Full sum assured is paid to policy holder.

DEATH BENEFIT: Full sum assured is paid to the nominee. The Accidental Death Benefit

sum assured is paid to the nominee.

Policy Feature:


ASSURE Golden Years Plan

Individuals who want Risk cover for whole life to help surviving dependants and are

looking for a policy that matures when the policyholder reaches the ripe age of 60.

1) Guaranteed Addition after 10 years of the policy. This amount will be added to the

maturity amount at the end of the term.

2) Riders available: Accidental Benefits, Disability Benefits etc. to this product.

MATURITY BENEFIT: Full sum assured is paid to policy holder.

DEATH BENEFIT: Full sum assured is paid to the nominee. The Accidental Death Benefit

sum assured is paid to the nominee.

Min Join Age N/A

Max Join Age N/A

Min Amtinsured

N/A

Max Amtinsured

N/A





Yearly

Half yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

Policy Feature:

Min Join Age N/A

Max Join Age N/A

Min Amtinsured

N/A

Max Amtinsured

N/A



N/A


N/A


Yearly

Half yearly

Quarterly

Monthly





market risk) and others are NAV related (market risk). The facility is same as


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HDFC STANDARD LIFE

ALLIANZ BAJAJ PRODUCTS:


Save Care Protect

The Allianz Bajaj Save Care Protect Plan, while covering your life also ensures that your

savings grow as well. The benefit available under this plan includes:

1. Your contributions grow by way of compounded annual bonuses. In addition, a terminal

bonus may be paid on maturity for in-force policies. In case of death after 15 full policy

years also, the company may pay terminal bonus for in-force policies.2. You have the option to choose from four types of cover on death; Basic Cover, Double

Cover, Triple Cover or Quadruple Cover.

3. In addition to covering the risk of natural death, you also have additional risk cover

against accidental death and total permanent & partial disability as a result of accident. In

addition, you have waiver of premium benefit in case an accident results in permanent

disability.

4. On maturity, you receive the basic Sum Assured plus Accrued Bonuses.

5. Hospital Cash Benefit is a unique feature of this product.

6. On maturity, you receive the Basic Sum Assured plus Accrued Bonuses.

At Allianz Bajaj, we believe in offering benefits and not just products. We realize that youare unique and your needs for insurance vary with time. We therefore offer you the

flexibility of excluding the following benefit combinations at each policy anniversary.

Combination

1: Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit, Waiver

of Premium Benefit Combination.

2: Critical Illness Benefit, Hospital Cash Benefit.

Every added responsibility in your life calls for increase in your risk cover. We provide you

the option to include additional death coverage of 50% of the Sum Assured on each of the

following happy moments in your life:

1. Your marriage.

2. The birth of your first child.

3. The birth of your second child there will be a premium discount for female policyholders

in the package. Basic premium payable will be equivalent to the premium for a two-year

younger male policyholder.

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HDFC STANDARD LIFE

Accidents are always sudden and sometimes fatal. You cant lessen the emotional shock,

but you can certainly soften the financial one. Allianz Bajaj accidental death benefit gives

your loved ones something to start with after the permanent loss of your income by paying

an amount (#) as shown below: Option A Option B Option C Option D Benefit payable in

case of death due to accident (#) Basic Cover Double Cover Triple Cover Quadruple Cover

Double Sum assured + Accrued Bonuses Triple Sum Assured + Accrued Bonuses

Quadruple Sum Assured + Accrued Bonuses Fives times Sum Assured + Accrued Bonuses

(#) Accidental Death Cover is subject to a maximum of Rs. 10,00,000/- under all policies

taken together. You can avail of Loans under your policy provided 3 full years premiums

have been duly paid. The loan amount shall be within 90% of the surrender value.

Policy Feature:


Term Care Plan

This plan not only offers you life insurance cover at a low cost, but also provides for return

of premiums on maturity. The premiums returned at maturity will be equal to the single

premium or the sum total of equivalent annual premiums of the Economy Pack (excludingextra premiums charged, if any). In case of pre-mature death during the policy term, the

full Sum Assured will be paid to the nominee. The Allianz Bajaj Term Care Plan offers you

the convenience of choosing between two premium payment options. Regular Premium

Payment: Premium payment throughout the selected term. Single Premium Payment: One

time premium payment for the selected term at commencement. Apart from covering the

risk of natural death, this plan also provides you the option to choose up to 5 additional

benefits. You can select a specific combination of additional benefits best suited to your

needs, available in 4 attractive packages to choose from.

Min Join Age 18

Max Join Age 50

Min Amtinsured

50000

Max Amtinsured

1000000





YearlyHalf yearly

Quarterly

Monthly

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HDFC STANDARD LIFE

i. Economy: This is the basic plan, which is available for both the regular and

single premium payment options.

ii. Protect: This pack comes with the following 3 in- built additional benefits:

a. Accidental Death Benefit.

b. Accidental Permanent Total / Partial Disability Benefit.

c. Waiver of Premium Benefit (in case of accidental permanent total disability). The

Protect Pack is available with the regular premium payment option only.

iii. Health: This pack comes with the following 2 in-built additional benefits:

a. Critical Illness Benefit.

b. Hospital Cash Benefit. The Health Pack is available with the regular premium

payment option only.

iv. Total: This pack comes with the following 5 in-built additional benefits:

a. Accidental Death Benefit.

b. Accidental Permanent Total / Partial Disability Benefit.

c. Waiver of Premium Benefit (in case of accidental permanent total disability).

d. Critical Illness Benefit.

e. Hospital Cash Benefit. The Total Pack is available with the regular premium

payment option only.

Premiums paid will be returned at maturity. In case of pre-mature death during the policy

term, the full Sum Assured will be paid to the nominee. Accidents are always sudden and

sometimes fatal. You cant lessen the emotional shock, but you can certainly soften thefinancial one. Allianz Bajaj Accidental Death Benefit gives your loved ones something to

start with after the permanent loss of your income by paying double the basic Sum

Assured.

Policy Feature:

Min Join Age 18

Max Join Age 50

Min Amtinsured

100000

Max Amtinsured 1000000





Yearly

Halfyearly

Quarterly

Monthly

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HDFC STANDARD LIFE


It is basically a savings contract, which is designed to provide an income for life from

retirement, with an open option to take the lump sum elsewhere to buy the annuity,

provided it is permitted by prevailing regulations. The commitment is to pay a single

premium or level premiums with installments due every quarter, half-year or year

throughout the deferment period of the policy, after which you will start receiving your

pension.

Policy Feature:





market risk) and others are NAV related (market risk). The facility is same as


Analyzing the above companies insurance products features we can see that HDFC

SLICs products have some comparative advantage over the other companies. ICICI

PRUDENTIAL is a close competitor of HDFC SLIC. The products of other companies are

based on single premiums. HDFC has single and regular premium products separately. As

insurance products are savings tools not an investment tool. So the HDFC has the best

products available in the market.

Min Join Age 18

Max Join Age 50

Min Amtinsured

100000

Max Amtinsured

1000000





Yearly

Halfyearly

QuarterlyMonthly

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HDFC STANDARD LIFE

4. DISTRIBUTION CHANNEL OF HDFC SLIC

The distribution channel of HDFC SLIC consists of the following components,-

1. Financial consultants(Agents)

2. Corporate Agents

3. Banc Assurance

4. Managers

1.AGENT & HIS ROLE:

Insurance agent represents an insurance company and authorized to sell insurance

to general public.

The agent is entitled to commission for the business procured by him. Hence he

must take care to conserve the business by controlling the lapse of the policies.

The primary responsibility to provide services rests on the insurance company and

an agent can help in providing better services by liaising between the policy holder

and insurer.

The IRDA has prescribed a code of conduct for agents and has powers to cancel theagents license if the latter indulges in gross misconduct and fraud.

Each insurance company has its own set of regulations prescribed for the agents

working for it, and it is obligatory for the agent to follow them.

2. CORPORATE AGENT:

Corporate agent is a person who acts on the authority office principal and obtains business

at the best possible terms. Corporate agents operate in a manner similar to local agents,

although legally they represent the consumer, not the insurer. They can work for various

insurers. Their commission is higher than Agents.

3. BANCASSURANCE:

Banc assurance is a word coined in the western world, when banks began to get involve in

the marketing of insurance business. In one word we can say that bancassuarance is

marketing of insurance business by different banks. In HDFC SLIC banks who are

participate for promoting insurance products are SBI, UBI, ICICI, PNB, HDFC & UTI.

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HDFC STANDARD LIFE

4. MANAGER:

Managers (including Sales Development Manager, Asst. Sales Manager, and Sales

Manager) who are part of the companys management team are generally entrusted with

full responsibility of developing the sales organization, strengthening credibility of the

organization and sales in the areas under their jurisdiction including arranging for

training of the sakes force. Their duties and responsibilities also include:

Recruitment of new agent

Meeting prospective agents Recommending them to the management for appointment as agent

Providing them with initial training (IRDA AND PRODUCT TRAINING)

Providing guidance to the agents in promoting the business

Fixation of business target and discussing strategies to achieve the business targets

Motivating the agents to realize the objectives

Supervising the activities of the agents

Helping the agents in post sales service

Distribution of the targets allocated by their head office to the sales units under

their jurisdiction

Segregating the targets between the development officers and the agents Guiding , supervising and controlling the sales activities

Review and design of plans and targets

Motivating the sales force to realize the targets

Administration of the office to deliver the policies, issuing receipts for the premium

received, granting of loans against the assigned policies, etc

As an agent is the main way to reach house holds. So we are more concerned about agents.

How they can improve on their selling and what may be their qualities?

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HDFC STANDARD LIFE

5. TRAINING

On 17th of April 2006 was the first day of our training and we started with IRDA tranning,

which was essential for selling insurance products. We were sponsored by HDFC SLIC.

Our job was mainly of two types, - Recruiting Financial Consultants (commission basis),

Selling HDFC SLICs products.

A) Recruiting Financial Consultants (commission basis)

B) Selling HDFC SLICs products.

C) Survey on Distribution Channel Development.

A)Recruiting Financial Consultants (commission basis):

Who are these Financial Consultants?

They are the persons who will be an intermediate between customer and company. They

are a part of the distribution channel, very important part. They are the main sales force of

the company. They will sell the Policies to the customers by convincing them. They alsoshould plan their time and potential customers. Mainly they will work on their own

contacts. HDFC is providing leads of customers. It is a business for Financial Consultants.

They will work as insurance agents for the company in common people term.

This work is basically done by the Sales Development Manager (SDM) of HDFC SLIC.

Our work was same as SDM.

Recruiting educated people as Pro Rata based FCs is a hard job need to be well managed.

Company had also another option of salaried FCs with a target given by the company. We

have generated leads of potential FCs and tried to convince them to work as FC in the

organization. We learned that recruiting FCs is not enough but we have to ensure thatthey must bring business. Lastly FCs must choose this as a career. As SDMs are in

pressure to meet their target so they sometimes recruits FCs of bellow qualities which is

not at all benefiting the company but creates more liabilities for the company. Recruitment

of FCs is a commissionable job.

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HDFC STANDARD LIFE

B) Selling HDFC SLICs products:

To sell Insurance products FCs must have potential contacts. As the penetration level

(1.39%) and the awareness of insurance is very low in India. So it is very difficult to sale

insurance products in certain segments of the Indian market. We faced this problem in the

market. So the best way is to increase the sale is to increase awareness in the market.

With this vision we have done our job. We had organized many promotional camps, in

KASBA INDUSTRIAL ESTATE, SALTLAKE SECTOR-V and in various PRIVATE

HOUSING COMPLEXES. There we surveyed to find the awareness level and what acustomer wants from Company, Agents and what are their preferences on needs. We have

generated the database for the company.

C) Survey on Distribution Channel Development:

We have framed questionnaire and went for survey. Our main survey results are given

below. From where we found the preferred needs, qualities of agents and company. There

after we framed probable proper approach to the customer from agents.

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HDFC STANDARD LIFE

1. Customers have least knowledge about tax savings. This is because of the lacking of

knowledge due to agent.

2. In India there most of the people dont have the taxable income. But they need the

insurance also. So private insurers must think on their products and redesign the

product for these people.

52

36

12

250

PREFERENCES

7. DO YOU THINK POLICIES ARE NECESSARY?

a. YES

b. NO

8. DO YOU KNOW ABOUT INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

(IRDA)?

a. YES

b. NO

SAMPLES: 204

This is an example of lacking of knowledge of the customers due to agents. So agent must

give full information to the customers about any controlling authority.

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HDFC STANDARD LIFE

71.57%

9. DO YOU KNOW ABOUT HDFC STANDARD LIFE?

a. YES

b. NO

SAMPLES: 204

We can see that HDFC as a brand is known by every body and because of their

advertisement they are gaining the popularity.

19.60%

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HDFC STANDARD LIFE

10. RANK THESE FACTORIES FOR THE FOLLOWING COMPANIES

1(LOWEST) -5(HIGHEST)

COMPANY

FACTORS

LICI ICICI

PRU.

BAJAJ

ALLIANZ

HDFC

SLIC

AVIVA

LIFE

OTHERS

PREMIUMSAWARENESS

TRUSTWORTHYNESS

SERVICE

REPUTATION

ACCESSIBILITY OF

AGENTS/ FCs

TRANSPERANCY

BENEFITS

CLAIM SETTLEMENT

SAMPLES: 204

After the survey we found that the ACCESSIBILITY OF AGENTS/ FCs is the major

factor. The private insurance companies dont have sufficient number of agents. So they

have to increase their agent force because it is the best way to reach house holds of India.

The problem for LICI is they have excess of agents but inefficient in terms of giving proper

knowledge to customers. So the customers of LICI dont have proper knowledge about

their own policies. They feel that LICI is not transparent.

90

100

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HDFC STANDARD LIFE

11. DO YOU KNOW ABOUT THE POLICIES AVAILABLE UNDER THE

COMPANIES?

a. YES

b. NO

SAMPLES: 204

This is an example of lacking of knowledge of the customers due to agents. So agent must

give full information to the customers about products available under the company. So that

customer can analyze which policy/policies he/she is needed.

62.75%

12. DO YOU KNOW GOVT. HAS 5% SHARE IN LICI WHICH IS GOING TO

DISSOLVE IN OCTOBER 2006?

a. YESb. NO

SAMPLES: 204

Customers have a misconception that LICI is Government firm, but real fact is that Govt.

has only 5% share in LICI and which will dissolve in October. The LICI agents are not

giving proper knowledge or information to the customers. Because they thought that they

will lose their customers.

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HDFC STANDARD LIFE

74.50%

13. HAVE YOU SEEN ADVERTISEMENT OF HDFC SLIC?

a. YES

b. NOSAMPLES: 204

As HDFC SLIC is co-sponsor of World Cup Football with ESPN STAR, so they got

popularity within last 2 months.

1

14. DO YOU KNOW ABOUT THESE POLICIES?a. ENDOWMENT PLAN

b. PENSION PLAN

c. CHILDREN PLAN

d. TERM ASSURANCES PLAN

e. UNIT LINKED PLANS

Very less number of people knows about these products. Awareness is very low.

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HDFC STANDARD LIFE

15. EXPECTED QUALITIES OF AGENTS (RANK THE QUALITIES)

a. HONESTY -

b. KNOWLEDGE -

c. AVAILABILITY -

d. STABILITY -

e. BEHAVIOUR -

f. COMMUNICATION -g. EXPERIENCE -

SAMPLES: 204

Private insurers have less number of agents in comparison with LICI. So they need to

increase number of potential agents. Because people have more preference on Availability,

Honesty, Knowledge. They want the knowledge about the insurance and proper financial

management.

68

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250

16. SUGGESTIONS TO HDFC SLIC ---

Most of the people suggested increasing the number of agents and door to door promotion

and selling of insurance.

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HDFC STANDARD LIFE

7. SOLUTIONS

After the promotional camps and analyzing the survey we got the above written

informations. From these we came to the conclusions. We have formed some solutions for

Financial Consultants (The proper approaches to the customers from FC). We have

answered some FAQs below. These questions were asked by people when we were inpromotional camps. We are trying to give some feasible solutions and proper fact finding

sheet for Financial Consultants. By using those selling will be easier they can carry these

formats in hard copies or in Laptop so that customer will get impressed.

FREQUENTLY ASKED QUESTIONS:

1. How Much Life Insurance is needed?

"Life Insurance Needs", means the amount of life insurance death benefits (pure life

insurance protection) that is needs upon a person's death. There are a range of life

insurance products to choose from, such as term life insurance, whole life insurance,variable life insurance, universal life insurance, and variable universal life insurance.

Choosing amongst different products is not the main concern here. The main concern is the

amount of life insurance death benefits you needs, regardless of the type of product you

choose.

2. Is it the rule of thumb that you need life insurance coverage equaling 4 to 6 times your

income?

Yes. However, needs vary based on family status, savings and lifestyle. You should review

your coverage on those terms.

3. What about buying life insurance for a spouse or children?

Generally, that should not be done in lieu of buying appropriate amounts of life insurance

on the family breadwinner(s). It is extremely important that you protect the earning

capacity of the primary breadwinner, if possible, with the right amount of life insurance

before considering life insurance on children or spouse. In a dual-income household, it is

important to protect the earning capacity of both spouses. Life insurance for a non-wage

earning spouse is often recommended for help in paying for household services lost if that

spouse dies.

4. Should I buy term insurance or cash value life insurance?

Term life insurance pays out in the event of death. Cash value, which is more costly, has a

cash amount you can withdraw before death. Which one is for you will depend on your

circumstances. First answer an insurance question - how much life insurance should you

buy? Then look at the financial aspect - what type of policy should you buy? The amount of

life insurance you need may be so large that the only way you can afford it is by buying

term insurance, which carries a lower premium than cash value policies.

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HDFC STANDARD LIFE

If your ability (and willingness) to pay life insurance premiums is such that you can afford

the desired amount of life insurance under either type of policy, you can consider the

financial decision - which type of policy to buy. If you view life insurance as an investment,

you'll want to study rates of returns. If its protection, then your purchase is a matter of

what you can afford and want to spend.

5. Does term insurance provide protection for temporary needs?

Yes. Term insurance is ordinarily purchased to provide temporary coverage for a known

period of time. Term insurance generally provides a lower initial cost.

6. Are there advantages to buying life insurance at an early age rather that waiting until

after marriage or children?

Yes. The premiums are lower when you are younger.

7. Is permanent insurance initially more expensive than term insurance?

Yes. While it is true that the initial premium can be higher than that of term insurance,

there are additional features and benefits built into permanent life insurance that make it a

greater value for the money spent.

8. What is an annuity?

Annuities are tax-deferred investments that guarantee you regular payments at some

future time, usually retirement.

9. Why Do People Typically Choose Annuities?

1. To accumulate long term savings.

2. To provide guaranteed life-long income.

3. To supplement other retirement savings.

4. To increase income in retirement.

5. To take advantage of tax deferral options.

10. If I decide to take out life cover will I need to go for a medical?

Once your application has been submitted to the insurer it will be assessed by a medical

underwriter. The life insurance provider will either accept your application immediately,

or they could request a medical report from your General Practitioner. You may also be

asked to attend a medical examination, which will be paid for by the insurer.

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HDFC STANDARD LIFE

11. What are my different options for paying premiums?

Depending on which prudential product you own, you may be able to pay your premiums

on a monthly, quarterly, semi-annual or annual basis. You may also be able to have your

premiums deducted directly from your paycheck.

12. What do I need in order to file a death claim?

In order to file a death claim on a Prudential policy, you will need the following

information:

1. Policy number and, if available, the policy itself or Certificate of Insurance

2. Date of insured's death

3. Certified copy of the insured's death certificate

4. Date of insured's birth

5. Insured's mailing address

6. Beneficiary's name7. Beneficiary's relationship to the insured

8. Beneficiary's date of birth

9. If the beneficiary is also deceased, you will need:

10. Certified copy of the beneficiary's death certificate

13. How may I reinstate a lapsed policy?

Determine how long it has been since your policy has lapsed. The lapse notice will indicate

the amount of premiums missed and the date(s) on which they were due. It will indicate the

amount of premium you will need to pay in order to have your policy reinstated.

14. What do I do if I've lost my policy?

If you have lost your policy, you can request your policy number from the insurance

Company.

15. What is the utility of a proposal form?

A proposal form contains information for the preparation of policy which is a contract

document between the insured and the insurer.

16. What role does an insurance agent play?

The contract of insurance is between insurer and the insured. The role of an agent who is

an intermediary is only for facilitating the process.

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HDFC STANDARD LIFE

17. What is guaranteed additions?

The LIC provides its policy holders with the bonus declared as a certain amount per

thousand of the assured sum. This bonus is declared irrespective of the performance of LIC

and that is why its called guaranteed bonus.

18. What are Loyalty Additions?

For certain policies in addition to the guaranteed additions the LIC declares further

additions depending on its performance which is called loyalty additions.

19. What is surrender value?

This is the entitled amount which policy holder receives back after he returns back the

policy to the insurer.

20. When does a policy lapse?

If a policy holder fails to pay off his premium within grace period after the due date of

payment, the policy lapses.

21. How do I revive my lapsed policy?

The policy holder can revive a policy during his lifetime only but within a period of 5 years

from the due date of first unpaid premium and before the date of maturity.

22. What are the tax benefits I get by taking an insurance policy?

Other than the risk cover, you receive an Income Tax Relief under Section 88 of the

Income Tax Act.

23. What are the policies that qualify for the bonus?

Bonus is paid on all the policies of LIC. The newer entrants have yet to declare their

bonuses.

24. What is double accident benefit?

You get double accident benefits just by paying an additional premium of Rs. 1 / - PAagainst a sum assured of Rs. 1000 / -

The benefit provides for the payment of an additional amount equal to the sum assured in

the case of death of a policyholder owing to any accident. The death claim under Double

Accident Benefit becomes double of the normal claim.

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HDFC STANDARD LIFE

25. What is nominee?

A nominee is a rightful heir to your policy appointed by you. After your death, the nominee

who did not have any right under the policy while you were alive becomes the rightful

recipient who will receive the sum assured by the policy.

26. What is a paid up policy?

According to LICs regulations, if you pay up your premiums for continuously for 3 years,

the policy does not become void and null even if no subsequent policies are paid. Such

policies are called paid-up policies.

27. How is the paid-up value calculated?

Paid-up Value= (No of premiums paid/Total no of premiums payable) x Sum Assured

28. Should one allow his policy to become paid-up?

No, you should never because the sum assured is reduced to a very low figure that it cannot

provide any cover to the policyholder or his dependants.

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47

MENTAL PEACE

LIFE INSURANCE

KEEPS SECURED

RESOURCES

HOUSE

LAND

SAVINGS

ORNAMENTS

OTHERS

FINANCIAL

RESOURCES

DREAMS (AFTER

THE DEATH

ALSO)

HUMAN

RESOURCES

CHILDREN

SPOUSE

PARENT

OTHER FAMILY

MEMBERS

NEEDS

FAMILY EXPENDITURE

EDUCATION

MEDICINE

REPAYMENT OF LOANS

CHILDRENS FUTURE

ENTERTAINMENT

PENSION

Example Of A Presentation At The Time Of Interview


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HDFC STANDARD LIFE

48

EXPENSES

PARTIAL

SACRIFICE

PENSION

TAX SAVINGS

OTHERS

EXPENSIVE TREATMENTS

DEATH OR ACCIDENTS

HOUSE LOAN

MENTAL SECURITY

Financial Planning & Fulfillment of Dream

INCOME

PRESENT NEED

SAVINGS

FUTURE SECURITY

PRESENT NEED

CHILDRENS FUTURE

PARTIAL

SACRIFICE

LIFE INSURANCE

MONTHLY SAVINGS

FIXED DEPOSITE

SAVINGS

SAVINGS IN LIFE INSURANC

POLICIES

PURCHASING OF

ORNAMENTS

PURCHASING OF

PROPERTIES

INTEREST/DIVIDENT

TOTAL INVESTMENT

OTHERS

FAMILY EXPENDITURE

MEDICINE

EDUCATION

LIFE INSURANCE

PREMIUM

PAYMENT OF

MONTHLY

INSTALMENTS

REPAYMENTS OF

HOME LOAN

REPAYMENTS OF

OTHER LOANS

PAYMENT OF INCOME

TAX

PURCHASE OF

DIFFERENT ASSETS

ENTERTAINMENT

DONATION

OTHERS


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49

CRISIS MOMENTS

Need Of Insurance To Cope Up With Crisis Moments

SOLUTION

LIFE INSURANCELIFE

SURVIVAL OF THE FAMILY AFTER THE

DEATH OF THE BREAD EARNER DEATH BENEFIT

CHILDRENS HIGHER EDUCATION IN

ABROAD

EXPENSIVE TREATMENT

HIGHER EDUCATION FOR CHILDREN

DAUGHTERS MARRAIGE

PENSION

RECEIVED POLICY LOAN

EPDB

(MONTHLY INCOME)

LOAN TERM ASSURANCE

MATURITY BENEFIT

MONEY BACK

CRITICAL ILLNESS

REIMBURSMENT

HOUSE BUILDING LOAN

HOUSE BUILDING

ACCIDENTS

UNEMPLOYMENT

CHILDRENS ESTABLISHMENT LIKE-

EDUCATION, BUSINESS ETC.

REGULAR EXPENSES AFTER RETIREMENT

DISABILITY

LOAN FOR IMMEDIATE NEEDS

REGULAR EXPENSES AFTER DEATH OF

THE BREAD EARNER

MORTGAGE LOAN FOR EXPENSES


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50

REGULAR INCOME

DREAMFULFILLMENT

DAUGHTERS

MARRIAGE

CHILDRENS

ESTABLISHMENT

HIGHER EDUCATION

EXPENSES OF

CHILDREN

RECEIVED MONEY

AFTER THEMATURITY OF A

POLICY

FEELING OF MENTAL

SECURITY

Need Of Life Insurance After Death

REGULAR INCOME

DREAMFULFILLMENT

DAUGHTERS

MARRIAGE

CHILDRENS

ESTABLISHMENT

HIGHER EDUCATION

EXPENSES OF

CHILDREN

RECEIVED MONEY


POLICY

FEELING OF MENTAL

SECURITY

REGULAR INCOME

DREAMFULFILLMENT

DAUGHTERS

MARRIAGE

CHILDRENS

ESTABLISHMENT

HIGHER EDUCATION

EXPENSES OF

CHILDREN

RECEIVED MONEY


POLICY

FEELING OF MENTAL

SECURITY

IF ALIVE

NO LIFE INSURANCE

DEATH IS CERTAIN

LIFE INSURANCE

TIME IS UNCERTAIN

REGULAR INCOME

DREAMFULFILLMENT

DAUGHTERS

MARRIAGE

CHILDRENS

ESTABLISHMENT

HIGHER EDUCATION

EXPENSES OF

CHILDREN

RECEIVED MONEYAFTER THE

MATURITY OF A

POLICY

FEELING OF MENTAL

SECURITY

DEATHIF ALIVEDEATH

.


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51

PRESENTATION

OF A SALESMAN

FEELINGS OF

THE PROSPECT

SUBCONSCIOUS

MIND

CURIOSITY

WORRIED

PREPARED

SALES TALK

LATENT

NEED

PROMINENT

NEED CONSICOUS

MIND

ACCENTUATED

WANT

IRRITATED

MIND

HESITATIONPRESENTNEED

PERSUADING

IDEAS

FUTURE

NEED

MOTIVATION

PROCRASTINATION

SATISFIED MINDPURCHASESATISFACTION

Persuasion To Prospect At The Time Of Interview


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NAME: _______________________________________________________________

ADDRESS: ________________________________________________________________

PHONE NO.: __________________________ E-mail address________________________

OCCUPATION ______________________________ DOB ______________ AGE _______

A. INCOME (P.A.) B. SAVINGS C. EXPENCE (APPROX)

SALARY/ PROFIT/ COMMISSION

DIVIDEND

INCOME FROM INTEREST

OTHERS

INSURANCE

P.F.

NSC

BANK A/COTHERS

FAMILY EXPENDITURE

MEDICLE

TRAVEL

OTHERS

TOTAL (A) TOTAL (B) TOTAL (C)

HOW MUCH HE/SHE CAN SAVE: [A- (B+C)] = ___________________________

POLICIES RUNNING RIGHT NOW:

POLICY

NO.

RISK

DATE

PLAN/

TERM

DATE OF

MATURITY

SUM

ASSURED

PREMIUM MODE BRANCH

RECOMMENDATION FOR NEW POLICY:

TABLE/ TERM SUM ASSURED MODE PREMIUM

52

Financial Status Of Customer & Customer Need Analysis (C. N. A)


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NAME: _______________________________________________

If Financial Consultants of HDFC SLIC follow the above written charts and forms it will

be easier to sell any types of insurance products.

NEEDED

FUTURE

REQUIREMENTS

NEED ANALYSIS AGENT

RECOMENDA

NFOR

WHOME

IT IS

NEEDED

HOW

MUCH

AMOUNT

NEEDED

HOW

MUCH

MONEY

HAS AT

PRESENT

A

G

E

IN

WHICH

YEAR

NEEDED

RANK OF

NEEDS AS PER

IMPORTANCE

HOW

MUCH

MORE

NEEDED

S.A.

T

E

R

M

M

O

D

E

P

1. FAMILY FUND

2. LOAN

REPAYMENT

3. UNEMPLOYMENT/

DEATH

4. CHILDRENS

MARRIAGE

5. CHILDRENS

EDUCATION

6. WIFE &

DEPENDABLES

7. PENSION

8. ACCIDENTS/ FUND

FOR WIDOW

9. PAYMENT OF TAX

10. OTHER NEEDS

53

CNA CHART


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HDFC STANDARD LIFE

8. CONCLUTION

1. As we have seen that in HDFC SLIC distribution channel has four parts, Agents,

Corporate Agents, Bancassurance, Managers. As we know penetration level of insurance is

very low (1.39%), awareness and knowledge about insurance product is very poor to thecommon people. Even an educated and employed people dont know about the Tax

Benefits received from insurance. So selling of insurance product is very difficult for the

Private Insurers.

2. This problem can be solved if the common people are more conscious and aware about

the Insurance. This awareness and proper knowledge can be given by the Financial

Consultants (Agents). These agents should pass IRDA Exam not only for Licensing also for

knowledge (through sponsorship of a company) and he/she should take the product

training of a company.

3. There are some responsibilities on companies regarding the career path of these agentsand the benefits. The companies should take care of the low income group of India

regarding their products.

4. There are huge opportunities in Indian market. But Insurers has to take careful steps

regarding their marketing strategies. Because 11 new insurers are ready to set an opening

in the market. By these data one can easily imagine how much huge is the Indian market?

____________________________________________________

54


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9. BIBLIOGRAPHY

BOOKS:

HDFC TRAININING MATERIALS

IRDA JOURNALS

WEB SITES:

www.hdfcstandardlife.com

www.irda.org

www.myiris.com

www.icicidirect.com

www.lici.com
http://www.hdfcstandardlife.com/http://www.irda.org/http://www.myiris.com/http://www.icicidirect.com/http://www.lici.com/http://www.hdfcstandardlife.com/http://www.irda.org/http://www.myiris.com/http://www.icicidirect.com/http://www.lici.com/