RECRUITMENT & SELECTION

OF
FINANCIAL CONSULTANT
OF

A report submitted to Delhi Business School, New Delhi

As a part fulfillment of
MBA + Post Graduate Program (Industry Integrated) in
Entrepreneurship & Business.
Submitted to: Submitted By:
Director Academics Name of Student: surendra
kumar
Delhi Business School Roll No: DBS/0810/W223
New Delhi Batch: Winter
Semester: 1ST
University: Punjab technical
university
Internal guide:
Faculty:
Delhi Business School,New Delhi
 B-II/58, M.C.I.E., Mathura Road, New Delhi
Website: www.dbs.edu.in

This is to certify that the summer training was done on

“RECRUITMENT AND SELECTION OF FINANCIAL
CONSULTANT OF HDFC STANDARD LIFE INSURANCE ”
submitted to Delhi Business School, New Delhi by surendra
Kumar in partial fulfillment of the requirement for the award
of degree of MBA & Post Graduate Program in
Entrepreneurship & Business, 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 15/05/2008 to 15/07/2008 in
“HDFC STANDARD LIFE INSURANCE”.

Mr.VISHAL
SAWHNEY
Manager
 (Channle development)
HDFC
Seal/stamp of the organization 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.
 Surendra kumar
Email Id:Surendramehta08@gmail.com

DECLARATION

This project well bred “RECRUITMENT

& SELECTION OF
FINANCIAL CONSULTANT OF HDFC STANDARD LIFE INSURANCE
” presence proposes by me in the preferential discharge of
obligations for the reward of M.B.A degree from Delhi
Business School, affiliated to Punjab Technical University.

I somewhere different for any other degree, credential have

not submitted this effort.

Whole snitches of tidings and assist are genuine and have

been accredited in the report.
 Surendra Kumar
M.B.A-1st SEM
Delhi Business School
New Delhi
Roll no-dbs/0810/W223

Table Of Contents

 Executive Summary

 Objective of the study

Literature review

 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

Place of the work: New friend’s 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 it’s 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.), India’s
leading housing finance 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 pension’s 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 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

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.

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.
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

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.
 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 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:
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 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

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 (PDC’s) 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:-

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 don’t 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 haven’t 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 basis
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.
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 latter’s 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

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

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.

STAGE 1
 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

Just Married

Marriage brings about a significant change. New dreams and new opportunities
also bring in additional responsibilities. While both of you look forward to a
happy and secure life , it is equally important to ensure that eventualities don’t
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
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 child’s 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 children’s education

• Safeguarding family against loan liabilities
• Savings for post-retirement
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

• 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.
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.

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 Assurance 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 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.

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 look at
the Single Premium Bond. In other cases, life insurance is an absolute
necessity. Have a look at other products.

Money Back Plan

 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
5 MARKETING STRATEGIE

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
MARKET SHARE POSITION
Life Insurance Corporation of India’s (LIC’s) 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, LIC’s 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.

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).
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.), India’s
leading housing finance 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 pension’s 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

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.

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 Zone’s 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 creditor’s
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 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

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 India’s 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 UK’s largest and the world’s 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.

The Sahara Pariwar’s 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
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
customer’s 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, India’s 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.

• 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

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.

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

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
Name of the plan 1st year
commission
Endowment Assurance plan 40%
Money Back plan 40%
Children’s plan 40%
Term Assurance plan 25%
Lone cover Term Assurance plan 25%
Personal Pension Plan 7.5%

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%
Children’s 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.Children’s Plan
4.Term Assurance Plan
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 1,00,000 5%
year 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
Status Bronze Silver Glod Centurion
Benefits 1%max 2.5%,max 5%,no upper Graded-
Rs.5999 Rs.37499 limit 4.5%to8.5%
Additional status 0.50% 1.00% 1.50%
retention Bonus

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.

• 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.
4. What Types of Funds do ULIP Offer?
Most insurers offer a wide range of funds to suit one’s 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.
 General Nature of Risk Category
Description Investments
Equity Funds Primarily invested in company stocks Medium to High
with the general aim of capital
appreciation
Income, Fixed Invested in corporate bonds, Medium
Interest and Bond government securities and other fixed
Funds income instruments
Cash Funds Sometimes known as Money Market Low
Funds — invested in cash, bank
deposits and money market
instruments
Balanced Funds Combining equity investment with Medium
fixed interest instruments

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.
  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
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

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.
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.
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.
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
year’s premium. When the fund value
 reaches an amount equivalent to one full year’s premium, the contract
shall be terminated by paying the fund value.

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:
premkunnel@irda.gov.in
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.