- 1. RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT OF A
report submitted to Department of management in the partial
fulfillment for the PGDM (Post Graduate Diploma in Management)
(Dual specialization in Marketing and Human Resource) KNS WORLD
MANAGEMENT COLLEGE Approved by AICTE & Ministry of HRD, Govt.
of India Gurgaon, Haryana
2. Submitted To Submitted By Mrs: Noopur Batra Abhishek Kumar
Keshri This is to certify that the summer training was done on
RECRUITMENT AND SELECTION OF FINANCIAL CONSULTANT OF HDFC STANDARD
LIFE INSURANCE submitted to World College of Technology &
management, Gurgaon by Abhishek Kumar Keshri in partial fulfillment
of the requirement for the award of degree of PGDM is a bonafide
work carried out by him under my supervision and guidance. This
work has not been submitted anywhere else for other degree/diploma.
The original work was carried during 15/06/2013to 30/07/2013 in
HDFC STANDARD LIFE INSURANCE 3. Mr.VISHAL SAWHNEY Manager (Channle
development) HDFC STANDARD LIFE INSURANCE Date:
---------------------- H.N.-2955 Street N.-12 Ranjeet Nagar New
Delhi 110008 ACKNOWLEDGEMENT At the very outset, I would like to
take golden opportunity of thanking those persons without whose
guidance, co-operation, inspiration and suggestion it would have
been impossible for me to accomplish the project successfully.
First of all I would like to thank Mr. Vishal sawhney. Channle
development Manager of HDFC SLI, for his kind guidance and
necessary support during the study. I also take this opportunity to
extend my heartfelt gratitude to others who directly of indirectly
helped me, by providing me necessary information required for
successful completion of the project. 4. Abhishek Kumar Keshri
Email: - [email protected] DECLARATION This project well bred
RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT OF HDFC
STANDARD LIFE INSURANCE presence proposes byme in the preferential
discharge of obligations for the reward of PGDM Degree from KNS
World Management College Gurgaon, affiliated to AICTE, I somewhere
different for any other degree, credential have not submitted this
effort. 5. Whole snitches of tidings and assist are genuine and
have been accredited in the report. Abhishek Kumar Keshri PGDM
01/KNSWMC/01 Table Of Contents Executive Summary Objective of the
study Literature review 6. Introduction The promoters The Company
and its product line Features of the product Marketing strategy
Share market position Competitors Future prospects National
international image Major problems Conclusion EXECUTIVE SUMMARY:-
Project Title: RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT
Name of the organization: HDFC SLI 7. Place of the work: New
friends colony, New Delhi Organizational Guide: Mr.Vishal Sawhney
Duration: 15th may to 15th July Major objectives: To study of the
market . To study of the perfect market for HDFC SLI. To approach
to the interested people towards HDFC SLI. Research Methodology:
Market research/survey Area of research I have done the research in
Nehru placce, southwest Delhi, Faridabad, central Delhi CP and many
other places in Delhi. Major Findings: There are more then one
people live in Delhi Only more then 25% people have the knowledge
of investment in HDFC SLI. There are many big and first insurance
company in Delhi and its the heart of India. HDFC STANDARD LIFE
INSURANCE 1-INTRODUCTION:- HDFC Standard Life Insurance Company
Ltd. offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), Indias leading housing finance institution and
one of the subsidiaries of Standard Life plc, leading providers of
8. financial services in the United Kingdom. The Standard Life
group has been looking after the financial needs of customers for
over 180 years. It is a leading pensions provider in the UK. Both
the promoters are well known in their respective fields of
activities. For more details you may log on to
http://www.hdfcinsurance.com Mr. Deepak S Parekh is the Chairman of
the Company. He is also the Executive Chairman of Housing
Development Finance Corporation Limited (HDFC Limited). He joined
HDFC Limited in a senior management position in 1978. He was
inducted as a whole- time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the
Institute of Chartered Accountants . Mr. Keki M Mistry joined the
Board of Directors of the Company in December, 2000. He is
currently the Managing Director of HDFC Limited. He joined HDFC
Limited in 1981 and became an Executive Director in 1993. He was
appointed as its Managing Director in November, 2000. Mr. Mistry is
a Fellow of the Institute of Chartered Accountants of India and a
member of the Michigan Association of Certified Public Accountan
Mr. Alexander M Crombie joined the Board of Directors of the
Company in April, 2002. He has been with the Standard Life Group
for 34 years holding various senior management positions. He was
appointed as the Group Chief Executive of the Standard Life Group
in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries
in Scotland Ms. Marcia D Campbell is currently the Group Operations
Director in the Standard Life group and is responsible for Group
Operations, Asia Pacific Development, Strategy & Planning,
Corporate 9. Responsibility and Shared Services Centre. Ms.
Campbell joined the Board of Directors in November 2005 Mr. Keith N
Skeoch is currently the Chief Executive in Standard Life
Investments Limited and is responsible for overseeing Investment
Process & Chief Executive Officer Function. Prior to this, Mr.
Skeoch was working with M/s. James Capel & Co. holding the
positions of UK Economist, Chief Economist, Executive Director,
Director of Controls and Strategy HSBS Securities and Managing
Director International Equities. He was also responsible for
Economic and Investment Strategy research produced on a worldwide
basis. Mr. Skeoch joined the Board of Directors in November 2005
Mr. Gautam R Divan is a practising Chartered Accountant and is a
Fellow of the Institute of Chartered Accountants of India. Mr.
Divan was the Former Chairman and Managing Committee Member of
Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited
companies and also has substantial experience in structuring
overseas investments to and from India Mr. Ranjan Pant is a global
Management Consultant advising CEO/Boards on Strategy 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 was also Director, Corporate Business
Development at General Electric headquarters in Fairfield, USA. Mr.
Pant has an MBA from The Wharton School and BE (Honours) from Birla
Institute of Technology and Sciences 10. Mr. Ravi Narain is the
Managing Director & CEO of National Stock Exchange of India
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 of SEBI and the Reserve Bank of
India (RBI). Mr. Deepak M Satwalekar is the Managing Director and
CEO of the Company since November, 2000. Prior to this, he was the
Managing Director of HDFC Limited since 1993. Mr. Satwalekar
obtained a Bachelors Degree in Technology from the Indian Institute
of Technology, Bombay and a Masters Degree in Business
Administration from The American University, Washington DC Ms. Renu
S. Karnad is the Executive director of HDFC Limited, is a graduate
in law and holds a Master's degree in economics from Delhi
University. She has been employed 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 HDFC Limited 2
THE BACKGROUND HDFC LIMITED HDFC was incorporated in 1977 with the
primary objective of meeting a social need - that of promoting home
ownership by providing long-term finance to households for their
housing needs. HDFC was promoted with an initial share capital of
Rs. 100 million. 11. Business Objectives The primary objective of
HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional
manner, and to promote home ownership. Another objective is to
increase the flow of resources to the housing sector by integrating
the housing finance sector with the overall domestic financial
markets.. Organisational Goals HDFC's main goals are to a) develop
close relationships with individual households, b) maintain its
position as the premier housing finance institution in the country,
c) transform ideas into viable and creative solutions, d) provide
consistently high returns to shareholders, and e) to grow through
diversification by leveraging off the existing client base. HDFC
operates through 75 location throughout the country with its
Corporate Headquarters in Mumbai,India.HDFC also has an
international office in Dubai, U.A.E.,with service associates in
Kuwait, Oman and Qatar. 12. STANDARD LIFE GROUP The Standard Life
Assurance Company ("Standard Life") was established in 1825 and the
first Standard Life Assurance Company Act was passed by Parliament
in 1832. Standard Life was reincorporated as a mutual assurance
company in 1925.The Standard Life group originally operated only
through branches or agencies of the mutual company in the United
Kingdom and certain other countries. Its Canadian branch was
founded in 1833 and its Irish operations in 1838. This largely
remained the structure of the group until 1996, when it opened a
branch in Frankfurt, Germany with the aim of exporting its UK life
assurance and pensions operating model to capitalise on the
opportunities presented by EC Directive 92/96/EEC (the Third Life
Directive) and offer a product range in that market with features
which local providers were unable to offer. In the 1990s, the group
also sought to diversify its operations into areas which
complemented its core life assurance and pensions business, with
the intention of positioning itself as a broad range financial
services provider. JOINT VENTURE HDFC Standard Life Insurance
Company Ltd 13. HDFC Standard Life Insurance Co. Ltd was
incorporated on 14th august 2000. It is a joint venture between
HousingDevelopment Finance Corporation Limited (HDFC Ltd.) India
And UK based Standard Life Company. Both the joint venture partners
being one of the leaders in their respective areas came together in
this 81.4:18.6 joint venture to form HDFC Standard Life Insurance
Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the
venture.HDFC Standard Life brings to you a whole range of insurance
Solutions be it group or individual or NAV services for
Corporations, they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7
lakh lives by March'2007. The gross incomes standing at a whopping
Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure
to become one of the leaders and the first preference for any life
insurance customer. VISION STATEMENT The most successful and
admired life insurance company, which mean that we are the most
trusted company, the easiest to deal with, offer the best value for
money, and set the standards in the industry.In short, The most
obvious choice for all. Admired mean the company should be known
for its standards. Not only customers, but also the competing life
insurance companies should benchmark against HDFC SLI a nutshell,
even the IRDA should give an example of HDFC SL as a guiding
principle. 14. 2- THE PROMOTERS Joint ventures and associated
undertakings Country of registration or Share class Name
incorporation and proportion held Year end Nature of business Heng
An Standard Life China Ordinary shares 50.0% 31 Dec Life
assuranceHDFC Standard Life Insurance Company Limited**
IndiaOrdinary shares 18.6% 31 Mar Life assuranceHDFC Asset
Management Company Limited* ** India Ordinary shares 49.9% 31 Mar
Investment management* Owned by a subsidiary undertaking of the
Company.** The Company also has a 14.5% interest in Housing
Development Finance Corporation Limited (HDFC Limited). HDFC
Limited owns 81.4% and 50.1%of HDFC Standard Life Insurance Company
Limited and HDFC Asset Management Company respectively. This gives
theGroup an effective interest in 15. thesecompanies of 30% and 57%
respectively. The Company does not exercise dominant influence over
either of these joint ventures.The current operations of these
companies are not significant in relation to the accounts of the
Group. Strength:- A wide geographic reach, growing clients, and a
diversified portfolio of products and services. . Premium Payment
This section gives you all the details that you may require to pay
your premium and make it a hassle free experience. Along with
various premium payment options currently available to you, we have
also drawn up a Checklist of details that you will need in case you
are paying through cheque or demand draft. 7 Easy Ways to pay your
premium: 16. At any of Our branches You can deposit Cheque / Demand
Draft drawn in favour of HDFC SLIC at any of Our branch during the
following business hours Monday to Friday : 9.30 AM to 4.30 PM (For
Cash) Monday to Friday : 9.30 AM to 5.00 PM (For Cheque) Saturday :
9.30 AM to 12.00 Noon (For Cash & Cheques) Closed on Sundays
Postage / Courier You can send cheques and demand drafts drawn in
favour of HDFC SLIC to any of our branch offices Online Payment You
can make online payment of premium anytime and from any location,
at a click of the mouse by using the Online payment facility. It is
currently offered to all 17. the policyholders who are registered
users of billjunction.com or have net banking facility with any of
the following banks - HDFC Bank, ICICI Bank, Axis Bank, State Bank
of India, Punjab National Bank, Union Bank of India, Bank of Baroda
Drop Boxes You can drop cheques and demand drafts drawn in favour
of HDFC SLIC into any of our drop boxes installed at various
locations in various cities Electronic Clearing Service (ECS) or
Auto Debit facility of RBI You can also pay renewal premiums
through Electronic Clearing Service (ECS) of Reserve Bank of India
(RBI) presently available in following 61 cities Agra, Ahmedabad,
Allahabad, Amritsar, Aurangabad, Bangalore, Bardhaman, Baroda,
Bhilwara, Bhopal, Bhubaneshwar, Calicut, Chandigarh, Chennai,
Cochin, Coimbatore, Dehradun, Delhi, Durgapur, Erode, Gorakhpur,
Guwahati, Gwalior, Hubli, Hyderabad, Indore, Jabalpur, Jaipur,
Jalandhar, Jammu, Jamshedpur, Jodhpur, Kanpur, Kolhapur, Kolkata,
Lucknow, Ludhiana, Mangalore, Mumbai, Mysore, Nagpur, Nellore,
Panjim, Patna, Pune, Raipur, Rajkot, Ranchi, Salem, Shimla,
Sholapur, Siliguri, Surat, Thirupur, Tirupati, Trichur, Trivandrum,
Udaipur, Varanasi, Vijaywada, Vizag Standing Instructions (SI)
Mandate You can also pay your renewal premium through a Standing
Instructions Mandate if you have an account with HDFC Bank anywhere
in India Credit Card Facility 18. You can pay your renewal premium
through your HDFC Bank credit card. Checklist while paying your
renewal premium through cheque/ demand draft your policy number and
name correctly on the reverse side of the cheque/ demand draft We
do not accept Post Dated Cheques (PDCs) beyond the next banking day
from date of receipt In case of any overwriting on your cheque,
please countersign the same As per RBI guidelines, Non MICR Cheques
may not be acceptable at few locations. In this scenario, please
contact your nearest branch for more details Unit Linked Polices
you can pay using Local Cheques/ Demand Drafts other policies you
can pay using either Local or Outstation cheques or Demand Drafts
Weaknesses:- 19. Lapsation & Revival Your renewal premium
should reach us by the due date specified in the premium reminders.
It is always advisable to pay on time so that your valuable policy
benefits can continue. However we do understand that there may be
times when you may not be able to pay the renewal premium by the
due date. Therefore we allow for some additional number of days
from the due date, which is specified in your policy document, to
help you make your premium payment. In case we still dont receive
your premium payments by the end of the above mentioned period, we
would do either one of the following: Lapse the policy if you
havent paid premiums for the first 3 policy years Either of these
may mean loss/reduction of valuable benefits of your policy. refer
to your policy document for details. We do, however, allow you to
restore the original benefits for a Lapsed or a Paid up policy
under certain conditions. On receipt we will send you the details
of amount, that you will have to pay towards revival. This amount
may include all or some of the outstanding premiums, revival
interest and revival processing charges If your policy is lapsed or
paid-up for more than six months or lapsed due to any reasons like
illness, accidents etc. you may need to submit a Personal Health
Statement we reserve our right to impose some new terms and
conditions at the time of revival decided on a case-to-case basi
20. 3-THE COMPANY AND ITS PRODUCT LINE:- COMPETITOR BY PRODUCT
Bancassurance is the selling of insurance products by a bank. For
HDFC Standard Life Insurance, bancassurance and other alternative
channels contribute around 42 per cent of the business. The
Bancassurance partners of HDFC Standard Life Insurance Co Ltd are
HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank,
Bank of Baroda, Saraswat Bank and Bajaj Capital. 21. HDFC BANK HDFC
Bank is the largest insurance distributor of HDFC Standard Life
Insurance. INDIAN BANK Indian Bank enters into a strategic tie-up
with HDFC Standard Life Insurance Company Ltd . INDIAN BANK with
over 90 years of standing in the financial market with the
reputation for excellent customer service, has entered into a
strategic tie- up with HDFC Standard Life Insurance Company Ltd.,
the first in the private sector to receive the Certificate of
Registration for foray into Life Insurance business for
distribution of latters insurance products. A Memorandum of
understanding has been signed by the Bank with the Insurance
Company on 8th February 2001 to this effect. The Bank has to its
strength 1377 branches spread across the country with ready built
infrastructure and the expertise in marketing financial products.
Initially the insurance products will be marketed through select
branches in the South where the Bank has strong presence. The
insurance products from HDFC Standard Life, will be competitive and
customer friendly. The tie-up would benefit the Bank's customers,
as they will have wider choice of life insurance policies at
competitive premium 22. FINANCIAL POSITION OF HDFC SLIC IN FY
2007-08 HDFC Standard Life, one of the leading private life
insurance companies in India declared its annual results for the
financial year ending March 31, 2008. The company generated New
Business Premium Income of Rs. 2,685 crores in FY2007-08
registering a year-on-year growth of 63%. The growth was primarily
driven by the success of the company's initiative on structured
sales processes based on customer needs and their assessments.
Highlights of Financial Year 2007-08 New Business Premium Income up
by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs
4,859 crores as against Rs. 2,856 crores in FY2006-07 Alternate
Channels including bancassurance has recorded an impressive growth
of over 63% to contribute 41% to the Effective Premium Income
(EPI). Group business funds under management have increased to Rs.
959 crores, registering a growth of83% over FY2006-07 The average
premium has increased to Rs. 33,000. Company products and services
are now available in 726 cities and towns across the country.
Strength of Financial Consultants has increased to 1,45,000 23.
Knowledge Center Our Knowledge Centre is your personal resource for
information that can help you understand the basics of insurance
and help you make an informed decision about buying a policy. This
section includes details on insurance terms and concepts, helps you
analyse plans for your various needs and lends meaning to some of
the insurance jargon that you may encounter Life Stages Your
insurance need will change as your life does, from starting to work
to enjoying your golden years and all the stages in between. Each
one of these stages may pose a different insurance need/cover for
you. In this section, we have drawn up the basic life stages and
help you analyse various insurance needs accordingly. 24. STAGE 1
25. Young and Single An important stage where one lays down the
foundation of a successful life ahead. Take advantage of the time
and power of compounding to ensure that you build up your dreams.
Start saving early. Your needs Save for a home and wedding Tax
Planning Save for Golden years STAGE 2 26. Just Married Marriage
brings about a significant change. New dreams and new opportunities
also bring in a additional responsibilities. While both of you look
forward to a happy and secure life , it is e q ually important to
ensure that eventualities dont come in the way of shaping your
dreams. Your needs Planning for home / securing your home loan
liability Save for vacation Save for your first child 27. STAGE 3
Proud Parents Once you have children, your need for life insurance
is even more. You need to protect your family from an untoward
incident. Ensure your protection umbrella takes into account the
future cost of securing your childs dream. You will want life to go
on for your loved ones, and having enough life insurance is a way
to help ensure that. Your needs Provide for childrens education
Safeguarding family against loan liabilities Savings for
post-retirement 28. STAGE 4 Planning for Retirement While you are
busy climbing the ladder of success today, it is important for you
to take time and plan for your life after retirement. Having an
early start for retirement planning can make a significant
difference to your savings. Think about your golden years even
before you have reached them. The key is to think ahead and plan
well using your time and money. Your needs Provide for regular
income post retirement 29. Immediate Tax benefits Lead a secure,
independent and comfortable life style in your retirement years 4
FEATURES OF THE PRODUCT & BENIFIT HDFC Standard Life: A good
cover The opening up of life insurance has given finally given a
level-playing field to the private sector. A. N. Shanbhag ,
February 19, 2002 Competition in the market always proves
favourable to the consumer. So it is in the case of life insurance.
After what seems like almost an eon, finally the doors of the life
insurance sector were thrown open to the private sector players
last year. The Finance Act, 2001 has thankfully cleared quite a lot
of cobwebs giving a level- playing field to both the sectors.
Notable amongst the new entrants is HDFC Standard Life Insurance, a
joint venture between the global experience of Standard Life of UK
and our own HDFC. Standard Life, founded in 1825 is amongst the
forerunners of the insurance industry worldwide, having a presence
not only in the UK but also Ireland, Spain, Germany, Austria and
Canada. Voted as the 'company of the decade', Standard Life manages
assets over US$ 119 billion. HDFC does not need any formal
introduction, so strong is its brand already. After having a
significant presence in the housing finance, banking and MF
industries, this JV marks its foray into the life insurance sector.
Private sector players would only be too aware that this is the
proverbial first step of the thousand-mile journey that lies up
ahead. Contending for a piece of market share with a Goliath that
LIC is, will not be an easy task unless they offer qualitative and
innovative products at an affordable price. That they would be
pulling out all the stops to attract customers is not in doubt.
Hence, this is as good a time as any to pay attention and see what
is on display. 30. The strategy Too many options simply confuse the
users whereas too few will surely turn them away. HDFC Standard
Life has thankfully introduced products with basic premiums serving
specific needs of all. Most products have some additional optional
value adding benefits at marginal additional premiums. The
proponent is free to choose any of the basic products along with
none or some of the options as per his needs. Before examining the
base products, let us see the options. Accidental Death Benefit
(ADB) ADB provides an additional amount equal to the basic sum
assured (SA) in case of the death of the policyholder due to an
accident, within 90 days of the accident. Critical Illness (CI)
Benefit CI provides an additional amount equal to the SA on
diagnosis of the any one of the 6 specified critical illnesses ---
cancer, coronary artery bypass graft surgery, heart attack,
kidney/renal failure, major organ transplant (as recipient) and
stroke. The sum assured is payable if the policy holder survives
for 30 days after the date of the claim. Double Sum Assured (DSA)
Benefit DSA provides an additional amount equivalent to the basic
SA in case of the death of the policyholder. Waiver of Premium
(WOP) Benefit WOP basically waives the premium in case the
policyholder becomes totally disabled. However, the waiver is
applicable only during the period of the disability. 31.
Accelerated Sum Assured (ASA) Upon diagnosis of any of the
specified six critical illnesses, ASA provides an amount equal to
the amount payable on death. These options must be selected at the
outset while choosing the product. Now the base. Single Premium
Bond This is basically a hybrid of insurance and investment. The
life cover is quite low and therefore it functions almost like a
deep discount bond. For a single upfront premium (read investment),
the policy pays a lump sum (read maturity value) and its tenure of
10, 15, 20 years or more at 5-year intervals. A compound
revisionary bonus is declared every year, which would be added to
the policy upon its anniversary. The future bonuses though are not
guaranteed and are dependent upon the company's experience and the
conditions prevalent in the economy. The minimum age for buying the
policy is 18 years, the maximum being 70. The minimum SA is fixed
at Rs. 25,000, the maximum being Rs. 5,00,000. Normally, a policy
acquires a paid up value (and the related surrender value) after
premiums for 3 years are paid but in this case the holding period
is specified to be just 6 months --- Excellent liquidity indeed!
Term Assuranc plan The SA is payable in the case of the death of
the policyholder during the term but on survival, there are no
maturity benefits. Consequently, the premium rates are absolutely
the lowest. This is insurance in its purest form --- highest cover
at lowest 32. cost. There was a crying need for easy availability
of this product. HDFC Standard Life deserves kudos to have catered
to this need. Amongst the optional benefits listed above, ADB, CI
and ASA are available for this plan. Money Back Plan This plan pays
periodic cash lump sums during the tenure of the policy. The lump
sums, essentially a proportion of the basic SA are paid at 5-year
intervals. On survival, the basic SA plus bonus less the cash lump
sums paid earlier are provided. However, in the case of the demise
of the policyholder, the basic SA plus any bonus is provided to the
family. This would be over and above any earlier payouts. The
schedule of cash lump sums as a percentage of the basic SA is
detailed in the table. Moreover, CI, DSA, ADB and WOP can be opted
for if so desired. Endowment Assurance Plan As is normal with all
endowments, on the death of the life assured during the term, the
beneficiary will get the SA. On survival, the policyholder gets the
SA. From amongst the optional benefits, CI, DSA, ADB and the WOP
benefit are available along with this plan. The indicative premiums
for an SA of Rs. 1 lakh for a male life assured for a period of 20
years are detailed in the table. Loan Cover Term Assurance This is
a unique product meant as a safety net in case one has taken a loan
to buy a house. It is designed to help the family repay the
outstanding loan in the case of the death of the breadwinner. For
starters, it provides a lump sum on the death of the life assured
during the term of the plan. The difference in this case is that
the lump sum is a decreasing percentage of the initial SA. As the
loan decreases, as per its payment schedule, the cover under the
policy decreases as per its own schedule. 33. There is a choice of
paying the premium in yearly, half-yearly or quarterly modes or
even a single one time premium is payable. Amongst the optional
benefits, ASA is available along with this plan. Group Term
Insurance (GTI) HDFC Standard Life also offers GTI, meant
essentially for employees of an organisation. GTI is extremely
convenient for an employer as he can take insurance for all or
certain categories of employees. All members of a group, subject to
some basic conditions are eligible. GTI is used basically to
provide life insurance as part of the employee benefits. It can
also cover any housing or vehicle loan given by the employer to the
employee.To sum A wise man had said that the time to mend the roof
is when the sun is shining. This is applicable to life insurance
too. Today as the breadwinner you are able to maintain a decent
standard of living for yourself and your family. If you want enough
bread for the family even after the death of the breadwinner, you
should 34. look at the Single Premium Bond. In other cases, life
insurance is an absolute necessity. Have a look at other products.
Money Back Plan 35. Money Back Plan Total Policy Number of years
from policy date Term 5 10 15 20 25 10 40% 15 30% 30% 20 25% 25%
25% 25 20% 20% 20% 20% 30 15% 15% 15% 15% 15% Endowment Assurance
Plan Age Basic Policy Additional Premium Years Premium (Rs.) For
Optional benefits (Rs.) CI DSA ADB WOP 20 4771 304 322 136 236 30
4835 442 388 144 300 40 5098 925 641 156 475 50 5813 1890 1357 - 5
MARKETING STRATEGIE 36. MARKET CONDITION OF PRODUCT IN DELHI &
NCR REGION When it comes to study the market condition of HDFC
Standard Life Insurance, it is quite easy to see that there is good
demand for products, but the sale of Ulip products are very good.
The market share is about 65% with compare to their competitor.
REASON FOR THEIR GOOD CONDITION: 1. Consultants hold on the market
When it comes for the case of market, there is a clear and complete
hold of HDFC SLIC Consultants. 2.Quality HDFC SLIC provides good
quality of products, which is praised by most of the consumers. The
reason for 65% of the market cover by HDFC Standard Life Insurance
is because of quality of products. 3.Demand Demand for the product
of HDFC Standard life is very high in the societies. 4.Supply
Supply of product is also good, but in capturing whole market it
take some time. 5 COMPETITORS COMPETITORS BY COMPANY 37. MARKET
SHARE POSITION Life Insurance Corporation of Indias (LICs) market
share has slipped by almost 4% to 83.3% from 87% market share last
fiscal. However, in terms of number of policies sold, LIC continues
to dominate the Indian life insurance market with about 91% market
share. In terms of group insurance schemes, LICs market share was
at 72.2% after it covered 4.9 lakh lives. Private players had 27.9%
of the market covering 1.9 lakh lives. 38. The 12 private players
in the country together mopped up Rs 385 crore in premium in the
first two months selling over 2 lakh policies. ICICI Prudential
Life leads with market share of 5.9% It is followed by Birla
Sunlife with a market share of 2.6%, Allianz Bajaj (1.6%), Tata AIG
(1.5%), HDFC Standard Life (1.4%) and SBI Life (1.2%). Each of the
other private players like Aviva, Max New York Life, OM Kotak Life,
ING Vysya, AMP Sanmar and MetLife had less than 1% market share but
posted high growth in business. In terms of premium collection,
ICICI Prudential mopped up Rs 136 crore followed by Birla Sunlife
(Rs 60 crore), Allianz Bajaj (Rs 37 crore), Tata AIG (Rs 35 crore),
HDFC Standard Life (Rs 33 crore), SBI Life (Rs 27 crore). 39. Life
Insurance Corporation Of India(LIC) About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were operating
in India at the time of nationalization of Life Insurance Industry.
Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive
bill. The Parliament of India passed the Life Insurance Corporation
Act on the 19th of June 1956, and the Life Insurance Corporation of
India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the
rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable
cost. 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalized. LIC
continues to be the dominant life insurer even in the liberalized
scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. LIC has issued over one
crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding
period of the previous year. For more details you may log on to
http://www.licindia.com/history.htm HDFC Standard Life Insurance
Company Ltd. HDFC Standard Life Insurance Company Ltd. offers a
range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), Indias leading housing finance 40. institution and one
of the subsidiaries of Standard Life plc, leading providers of
financial services in the United Kingdom. The Standard Life group
has been looking after the financial needs of customers for over
180 years. It is a leading pensions provider in the UK. Both the
promoters are well known in their respective fields of activities.
For more details you may log on to http://www.hdfcinsurance.com Max
New York Life Insurance Co. Ltd. Max New York Life Insurance
Company Ltd. is a joint venture between New York Life, a Fortune
100 company and Max India Limited, one of India's leading multi-
business corporations. The Company's paid up capital is Rs. 587
crore, which is more than the norm laid down by IRDA. . For more
details you may log on to http://www.maxnewyorklife.com ICICI
Prudential Life Insurance Company Ltd. ICICI Prudential Life
Insurance Company is a joint venture between ICICI Bank- one of
India's foremost financial services companies-and Prudential plc- a
leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 15.85 billion,
with ICICI Bank holding a stake of 74% and Prudential plc holding
26%. ICICI Prudential commenced operations in December 2000. For
more details you may log on to http://www.iciciprulife.com. Kotak
Mahindra Old Mutual Life Insurance Limited 41. Kotak Mahindra Old
Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is
one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking, the group caters to the financial
needs of individuals and corporates. Old Mutual plc is an
international financial services group, whose activities are
focused on asset gathering and asset management. For more details
you may log on to http://www.kotaklifeinsurance.com Birla Sun Life
Insurance Company Ltd. Birla Sun Life Insurance is a joint venture
between the Aditya Birla Group and Sun Life Financial, Birla Sun
Life foraying into the life insurance and retirement planning
business. The Aditya Birla Group has a turnover close to Rs. 38000
crores (as on March 31, 2006) and is one of the largest business
houses in India. Additional information is available at
www.adityabirla.com.Sun Life Financial Inc. is a leading
international financial services organization providing a diverse
range of wealth accumulation and protection products and services
to individuals and corporate customers. Tracing its roots back to
1865, Sun Life Financial and its partners today have operations in
key markets worldwide, including Canada, the United States, the
United Kingdom, Hong Kong, the Philippines, Japan, Indonesia,
India, China and Bermuda. As of March 31, 2006, the Sun Life
Financial group of companies had total assets under management of
USD 343 billion. For more details you may log on to
http://www.birlasunlife.com/BirlaSunLife/Insurance/ Tata AIG Life
Insurance Company Ltd. 42. Tata AIG Life Insurance Company Limited
and Tata AIG General Insurance Company Limited (collectively 'Tata
AIG') are joint ventures of the Tata Group and American
International Group, Inc. (AIG). Tata AIG combines the strength of
the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the insurance
venture with AIG holding the balance 26 percent. Tata AIG Life
provides insurance solutions to individuals and corporates. Tata
AIG Life Insurance Company was licensed to operate in India on
February 12, 2001 and started operations on April 1, 2001. For more
details you may log on to http://www.tata-aig.com. SBI Life
Insurance Company Limited . SBI Life Insurance is a joint venture
between the State Bank of India and Cardif SA of France. SBI Life
Insurance is registered with an authorized capital of Rs 500 crore
and a paid up capital of Rs 500 crores. SBI owns 74% of the total
capital and Cardif the remaining 26%. State Bank of India enjoys
the largest banking franchise in India. Along with its 7 Associate
Banks, SBI Group has the unrivalled strength of over 14,500
branches across the country, the largest in the world. Cardif is a
wholly owned subsidiary of BNP Paribas, which is The Euro Zones
leading Bank. BNP Paribas is one of the oldest foreign banks with a
presence in India dating back to 1860. Cardif is ranked 2nd
worldwide in creditors insurance offering protection to over 35
million policyholders and net income in excess of Euro 1 billion
mark. Cardif has also been a pioneer in the art of selling
insurance products through commercial banks in France and 34 more
countries. For more details you may log on http://www.sbilife.co.in
ING Vysya Life Insurance Company Private Limited ING Vysya Life
Insurance Company Private Limited (the Company) entered the private
life insurance industry in India in September 2001.It has an
advisor sales 43. force of over 21,000 people, working from 140
branches located in 74 major cities across the country and over
3,000 employees. It also distributes products in close cooperation
with the ING Vysya Bank network. ING is a global financial
institution of Dutch origin. It has 150 years of experience, and
provides a wide array of banking, insurance and asset management
services in over 50 countries The Company has a is headquartered at
Bangalore. For more details you may log on
http://www.ingvysyalife.com Bajaj Allianz Life Insurance Company
Limited Bajaj Allianz Life Insurance Co. Ltd. is a joint venture
between two leading conglomerates- Allianz AG, one of the world's
largest insurance companies, and Bajaj Auto, one of the biggest 2
and 3 wheeler manufacturers in the world. Characterized by global
presence with a local focus and driven by customer orientation to
establish high earnings potential and financial strength, Bajaj
Allianz Life Insurance Co. Ltd. was incorporated on 12th March
2001. For more details you may log on to
http://www.bajajallianzlife.co.in Metlife India Insurance Company
Pvt. Ltd. With over 137 years of experience, the MetLife companies
are a leader in group benefits that serve 88 of the top one hundred
FORTUNE 500* companies, and provide benefits to 37 million
employees and family members through its plans sponsors in the U.S.
The MetLife companies are also ranked #1 in group life and #1 in
commercial dental in the U.S. The MetLife companies are the number
one life insurer in the U.S. with approximately US $2.8 trillion of
life insurance in force. In India, MetLife was incorporated in
2001, and aims to differentiate itself through customized need
based selling, simple and innovative products, and technology-
backed service experience, to tread its path to build financial
freedom for everyone. For more details you may log on to
http://www.metlife.co.in/MetIndia 44. Reliance Life Insurance
Company Limited Reliance Life Insurance Company Limited is a part
of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani
Group. Reliance Capital is one of Indias leading private sector
financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net
worth. Reliance Capital has interests in asset management and
mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in
financial services. Reliance Capital Limited (RCL) is a Non-Banking
Financial Company (NBFC) registered with the Reserve Bank of India
under section 45-IA of the Reserve Bank of India Act, 1934. For
more details you may log on to http://www.reliancelife.co.in Aviva
Life Insurance Co. India Pvt. Ltd. Aviva is UKs largest and the
worlds fifth largest insurance Group. It is one of the leading
providers of life and pensions products to Europe and has
substantial businesses elsewhere around the world. In India, Aviva
has a long history dating back to 1834. At the time of
nationalization it was the largest foreign insurer in India in
terms of the compensation paid by the Government of India. Aviva
was also the first foreign insurance company in India to set up its
representative office in 1995.In India, Aviva has a joint venture
with Dabur, one of India's oldest, and largest Group of companies.
A professionally managed company, Dabur is the country's leading
producer of traditional healthcare products. In accordance with the
government regulations Aviva holds a 26 per cent stake in the joint
venture and the Dabur group holds the balance 74 per cent share.
For more details you may log on to http://www.avivaindia.com Sahara
India Insurance Company Ltd. 45. The Sahara Pariwars life insurance
company Sahara India Life Insurance Company Ltd.- has been granted
license by the insurance regulator the IRDA on 6th February 2004.
With this approval Sahara India Life Insurance Company Ltd. becomes
the first wholly and purely Indian company, without any foreign
collaboration to enter the Indian Life insurance market. The launch
is with an initial paid up capital of 157 crores. The Chairman of
the company is Shri Subrata Roy Sahara who is also the Chairman of
Sahara Pariwar. For more details you may log on to
http://www.saharalife.com Recruitment of Financial Consultants (FC)
in HDFC Standard Life 46. This is a good business opportunity
offered by HDFC Standard Life to become a business partner and earn
a good amount of money. Business description Be our Certified
Financial Consultant Join HDFC Standard Life Insurance as a
Financial Consultant and help analyze your customers financial
needs, provide customized financial solutions to each one and
conduct reviews on a regular basis to keep your customers on track.
Along with being a great career move you get associated with HDFC
Standard Life Insurance, Indias Most Respected Private Life
Insurance Company. We at HDFC Standard Life also offer you
unmatched support with various training programmes to help you
excel in your endeavour. A great career move in every way Zero
investment, there is no start-up capital. You can work full-time or
part-time, depending on your convenience Sunrise industry Support
every step of the way At HDFC Standard Life, training is an
inherent element of our support system - at no extra cost - for our
new Financial Consultants EXCELLENT OPPORTUNITY Join HDFC Standard
Life Insurance as a Financial Consultant and earn a rewarding
career Flexible work timings You can work whenever you like. You
can work full-time or part-time, depending on your convenience.
However, the time you invest will determine your success Any one
can join - Young graduates, Housewives, Retired Personnel,
Self-employed or Working Professionals. Zero Investment - There is
no start-up capital required. Be your own boss with flexible
working environment, unlimited earning potential and opportunities
to be part of a world class sales team. 47. Attractive Remuneration
- Company offers excellent commissions, award and rewards for the
performers. You have unlimited earning potential. Commission
structure is pretty handsome and is 15-40% and renewal commission
of 5% second year onwards till the policy is in force. Certificate
by IRDA- You will get world class training free of cost and
certification by Insurance Regulatory Development Authority.
TRAINING Perfects your knowledge about the insurance industry as
well as our products IRDA Training Prepares you for your career as
a Financial Consultant and enables you to pass the IRDA examination
easily Disha Training Hones your selling skills, enables you to
understand customer needs and provide need-based insurance
solutions Advanced Training Upgrades your capability and knowledge
through sophisticated training programs customised for the changing
world of financial products and markets Desired Profile: Age: 18
Yrs to 65 Yrs Education: Intermediate or more Experience: Not
Mandatory Type of Job: Full Time or Part Time 48. Documents
Required: 8 photograph Age proof (passport, Birthcertificate,
College Leaving Certificate, Driving License) Address proof
Education proof Copy of PAN Card Duely Signed Cancelled Cheque of
self A candidate needs to bring a DD of Rs. 925/- in case of
offline training and Rs.825 in case of online training towards HDFC
SLIC LTD payable at Mumbai. 49. Recruitment process of FCs Fill up
of Agency form IRDA Training (100 hrs) IRDA Exam Fail Pass Exit
Product Training Traditional Pr. ULIP Product Internal Assessment
50. Fail Pass Exit Certification Job Description for Financial
consultants Pre sales role Identifying prospective clients. Meeting
prospective clients. Understanding the need of the client.
Presenting solutions to client. Closing sales. Post sales role
Taking 1-2 references from the client Providing timely updates to
the client for maintaining Lifelong relationship. Benefits to FCs
Financial Benefits: Commission on issuance of every policy.
Commission directly credited to bank account of FCs within 15 days.
These commission varies from 7.5-40% according to plan. BASIC
COMMISSION First year Commission payable on regular premium
conventional policies issued on or after 21st march 2007 51.
RENEWAL COMMISSION: Renewal commission would be paid from the 2nd
year onwards on regular premium policies. Renewal commission is not
payable on single premium plans. Name of the plan Renewal
commission 2nd year onwards Endowment Assurance plan 5% Money Back
Plan 5% Childrens plan 5% Lone cover Term Assurance Plan 5% Term
Assurance plan 5% Personal Pension Plan 2% BONUS COMMISSION Bonus
commission would be payable on the first year premium received and
adjusted on the regular premium policies under the following plans,
1.Endowment Assurance Plan 2.Money Back Plan 3.Childrens Plan
4.Term Assurance Plan Name of the plan 1st year commission
Endowment Assurance plan 40% Money Back plan 40% Childrens plan 40%
Term Assurance plan 25% Lone cover Term Assurance plan 25% Personal
Pension Plan 7.5% 52. 5.Lone Cover Term Assurance Plan Bonus
commission is not payable on the single premium plans and on the
policies issued under the Personal Pension Plan and all Unit Linked
Plans. Bonus commission rate would depend on financial consultant
crossing the minimum RNEP(Received Net Effective Premium) within
one year. Period RNEP Bonus commission % of the 1st year Premium
received In one year 1,00,000 5% 1,50,000 10% 2,25,000 15% REWARDS
& RECOGNITION Within 30 days of Licensing Consultant can become
STAR Converted premium 2 Lacs Silver Medal-Worth Rs 5200(approx)
RISING STAR Converted premium of 5 Lacs Gold Medal-Worth Rs
13,000(approx) MILLIONAIRE STAR Converted premium of 10 Lacs Gold
Medal-Worth Rs 25,000(approx) GLOBAL STAR Converted premium of 24
Lacs Gold Medal-Worth Rs 60,000(approx) Extra Payouts for STAR
Performers Star Performers Club 53. Status Bronze Silver Glod
Centurion Benefits 1%max Rs.5999 2.5%,max Rs.37499 5%,no upper
limit Graded- 4.5%to8.5% Additional status retention Bonus 0.50%
1.00% 1.50% MONTHLY & QUARTERLY CONTESTS There are various
Sales linked monthly & quarterly contests occur in which FCs
has opportunity to gain something. Like Gift Vouchers Home
Appliances Two-Wheelers Gold/Diamonds Jewelry Foreign Trips Mobile
Phones Laptops Cars etc. OTHER BENEFITS On field support- Joint
fieldwork with respective SDM/BDM. Training support Various
training modules to enhance your sales skills, interpersonal skills
etc. Marketing support Consumer Contact Programs. Availability of
office infrastructure for telecalling, quotations, benefits
illustration etc. Consultant corner to access illustration, sales
done, and contest updates etc. 54. Personal email id. Unit Linked
Insurance Polices (ULIPS) Unit linked guidelines were notified by
IRDA on 21st December 2005. The main intent of the guidelines was
to ensure that they lead to greater transparency and understanding
of these products among the insured, especially since the
investment risk is borne by the policyholder. It is the endeavor of
IRDA to enable the buyer to make the most informed decision
possible when planning for financial security. We hope the
following FAQs will enable a better insight to all buyers about the
character and features of Unit linked Products. 1. What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is
a life insurance policy which provides a combination of risk cover
and investment. The dynamics of the capital market have a direct
bearing on the performance of the ULIPs. REMEMBER THAT IN A UNIT
LINKED POLICY, THE INVESTMENT RISK IS GENERALLY BORNE BY THE
INVESTOR. 2. What is a Unit Fund? The allocated (invested) portions
of the premiums after deducting for all the charges and premium for
risk cover under all policies in a particular fund as chosen by the
policy holders are pooled together to form a Unit fund. 3. What is
a Unit? It is a component of the Fund in a Unit Linked Policy. 55.
4. What Types of Funds do ULIP Offer? Most insurers offer a wide
range of funds to suit ones investment objectives, risk profile and
time horizons. Different funds have different risk profiles. The
potential for returns also varies from fund to fund. The following
are some of the common types of funds available along with an
indication of their risk characteristics. 56. General Description
Nature of Investments Risk Category Equity Funds Primarily invested
in company stocks with the general aim of capital appreciation
Medium to High Income, Fixed Interest and Bond Funds Invested in
corporate bonds, government securities and other fixed income
instruments Medium Cash Funds Sometimes known as Money Market Funds
invested in cash, bank deposits and money market instruments Low
Balanced Funds Combining equity investment with fixed interest
instruments Medium 5. Are Investment Returns Guaranteed in a ULIP?
Investment returns from ULIP may not be guaranteed. In unit linked
products/policies, the investment risk in investment portfolio is
borne by the policy holder. Depending upon the performance of the
unit linked fund(s) chosen; the policy holder may achieve gains or
losses on his/her investments. It should also be noted that the
past returns of a fund are not necessarily indicative of the future
performance of the fund. 6. What are the Charges, fees and
deductions in a ULIP? ULIPs offered by different insurers have
varying charge structures. Broadly, the different types of fees and
charges are given below. However it may be noted that insurers have
the right to revise fees and charges over a period of time. 57.
Premium Allocation Charge This is a percentage of the premium
appropriated towards charges before allocating the units under the
policy. This charge normally includes initial and renewal expenses
apart from commission expenses. Mortality Charges These are charges
to provide for the cost of insurance coverage under the plan.
Mortality charges depend on number of factors such as age, amount
of coverage, state of health etc 58. Fund Management Fees These are
fees levied for management of the fund(s) and are deducted before
arriving at the Net Asset Value (NAV) . Policy/ Administration
Charges These are the fees for administration of the plan and
levied by cancellation of units. This could be flat throughout the
policy term or vary at a pre-determined rate. Surrender Charges A
surrender charge may be deducted for premature partial or full
encashment of units wherever applicable, as mentioned in the policy
conditions. Fund Switching Charge Generally a limited number of
fund switches may be allowed each year without charge, with
subsequent switches, subject to a charge. Service Tax Deductions
Before allotment of the units the applicable service tax is
deducted from the risk portion of the premium. Investors may note,
that the portion of the premium after deducting for all charges and
premium for risk cover is utilized for purchasing units 59. 7. What
should one verify before signing the proposal? One has to verify
the approved sales brochure for all the charges deductible under
the policy payment on premature surrender features and benefits
limitations and exclusions lapsation and its consequences other
disclosures Illustration projecting benefits payable in two
scenarios of 6% and 10% returns as prescribed by the life insurance
council. 60. 8. How much of the premium is used to purchase units?
The full amount of premium paid is not allocated to purchase units.
Insurers allot units on the portion of the premium remaining after
providing for various charges, fees and deductions. However the
quantum of premium used to purchase units varies from product to
product. The total monetary value of the units allocated is
invariably less than the amount of premium paid because the charges
are first deducted from the premium collected and the remaining
amount is used for allocating units. 9. Can one seek refund of
premiums if not satisfied with the policy, after purchasing it? The
policyholder can seek refund of premiums if he disagrees with the
terms and conditions of the policy, within 15 days of receipt of
the policy document (Free Look period). The policyholder shall be
refunded the fund value including charges levied through
cancellation of units subject to deduction of expenses towards
medical examination, stamp duty and proportionate risk premium for
the period of cover. 10. What is Net Asset Value (NAV)? NAV is the
value of each unit of the fund on a given day. The NAV of each fund
is displayed on the website of the respective insurers. 11. What is
the benefit payable in the event of risk occurring during the term
of the policy? The Sum Assured and/or value of the fund units is
normally payable to the beneficiaries in the event of risk to the
life assured during the term as per the policy conditions. 61. 12.
What is the benefit payable on the maturity of the policy? The
value of the fund units with bonuses, if any is payable on maturity
of the policy. 13. Is it possible to invest additional contribution
above the regular premium? Yes, one can invest additional
contribution over and above the regular premiums as per their
choice subject to the feature being available in the product. This
facility is known as TOP UP facility. 14. Whether one can switch
the investment fund after taking a ULIP policy? Yes. SWITCH option
provides for shifting the investments in a policy from one fund to
another provided the feature is available in the product. While a
specified number of switches are generally effected free of cost, a
fee is charged for switches made beyond the specified number. 15.
Can a partial encashment/withdrawal be made? Yes, Products may have
the Partial Withdrawal option which facilitates withdrawal of a
portion of the investment in the policy. This is done through
cancellation of a part of units. 62. 16. What happens if payment of
premiums is discontinued? a) Discontinuance within three years of
commencement If all the premiums have not been paid for at least
three consecutive years from inception, the insurance cover shall
cease immediately. Insurers may give an opportunity for revival
within the period allowed; if the policy is not revived within that
period, surrender value shall be paid at the end of third policy
anniversary or at the end of the period allowed for revival,
whichever is later. b) Discontinuance after three years of
commencement -- At the end of the period allowed for revival, the
contract shall be terminated by paying the surrender value. The
insurer may offer to continue the insurance cover, if so opted for
by the policy holder, levying appropriate charges until the fund
value is not less than one full years premium. When the fund value
reaches an amount equivalent to one full years premium, the
contract shall be terminated by paying the fund value. 63. 17. What
information related to investments is provided by the Insurer to
the policyholder? The Insurers are obliged to send an annual
report, covering the fund performance during previous financial
year in relation to the economic scenario, market developments etc.
which should include fund performance analysis, investment
portfolio of the fund, investment strategies and risk control
measures adopted. In case, you need any clarification, you may
address your query to the following e- mail id:
[email protected] Disclaimer: The above material is provided
for general information only and do not constitute legal or other
professional advice. This information is current at the date of
publication but may be subject to change without notice and
accordingly, may not be up to date at the time of viewing.
Information specific to a product may be obtained from the
concerned Insurer. 64. THANK YOU