A STUDY OF PRODUCT PROFILE OF HDFC STANDARD LIFE INSURANCE & SALES PROMOTION THROUGH ENHANCEMENT OF DISTRIBUTION CHANNEL LIST & RECRUITMENT OF THE FINANCIAL CONSULTANT
Submitted for the partial fulfillment of the requirement for the
award of POST GARUDUATE DIPLOMA IN MANAGEMENT SUBMITTED TO: BY:
Nidhi Arora Kumar Lecturer
Rudra Pratap Singh Enroll No:-1156521727
BLS INSTITUTE OF MANAGEMENT MOHAN NAGAR GAZIABAD
I take this opportunity to thanks HDFC STANDARD LIFE INSURANCE COMPANY for proving me the platform to undertake my summer training and on the successful completion of this project, I would like to express my gratitude to all the people who have helped me throughout the project. I am extremely grateful to my senior Sales Development Manager Mr. Arun Kumar Singh, for assigning this project to me. The project helped me to gain useful insides about the working of the corporate world and exposed me to the challenged involved in the marketing field while doing the fieldwork. He navigated me throughout the course of this project and under his guidance; I was able to carry out my project successfully.
I also pay my sincere thanks to Dr. R.K Mithal (Director BLSIM ) and Prof. Nidhi Arora Kumar and other faculty members for their valuable guidance to carry out the project and prepare the report.
At last I would like to acknowledge my parents, family members and friends who have been acting as a ceaseless source of inspiration at every movement.
RUDRA PRATAP SINGH PGDM IIIrd Semester BLS Institute of Management Mohan Nagar Ghaziabad
BLS Institute Of Management Mohan Nagar, Ghaziabad
This is to certify that the project repot entitled “A STUDY OF PRODUCT PROFILE OF HDFC STANDARD LIFE INSURANCE & SALES PROMOTION THROUGH ENHANCEMENT OF DISTRIBUTION CHANNEL LIST & RECRUITMENT OF THE FINANCIAL CONSULTANT’’ submitted by Rudra Pratap Singh for the partial fulfillment of the requirements of PGDM (Batch 2007-2009), embodies the bonafide work done by him under my supervision.
Signature of the Guide
The insurance sector in the India is going very fast and in the market lots of player is selling their policy and many of the big international insurance players are in the pipeline. Government is also going to increase the FDI value from 26% to 49% in the coming days. Insurance plays a major role in different perspective. For economic development investment are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are changed in to the investment for economic growth. In order to amenable to statistical predictions. Insurance risk must be handling on a large scale. During the first part of the training, I trained for the various ULIP and traditional planes and this classroom training helped me to convince to customers effectively. We were also equipped with the essential aspects required in a professional to be recruited as an insurance advisor. Later market research was conducted through various activities i.e. canopies, market-survey and tale calling. Activities led to practical exposure of how to deal with the consumer and convince them to join the organization to work as an effective advisor and be rewarded with a handful amount of commission. It was great experience because recruiting an insurance advisor and selling the plans of the company, demands a great deal of convincing power.
The project covered the NCR (National Capital Region) as the geographical area for my research. The research highlighted the general public perception with respect to the Insurance Sector and its upcoming stratum. Observation, research methodology, research design, fieldwork, limitation and analysis are used to understand the public opinion project, which is narrated also in the form of summary note, conclusion, suggestion etc. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it meets some of his needs. The benefits may an income or in some other form.
1-INTRODUCTION:1.1- Industry profile and company profile. 1.2- About the summer training department of company. 1.3- Need of the study. 9 10 11 12
2- AN INTRODUCTION TO ORGANISATION:2.1- HDFC Founder. 2.2- Objectives and background. 2.3- Organisation and management. 2.4- Board of directors. 2.5- Subsidiaries and associate companies. 2.6- The standard life insurance company limited. 2.7- The joint venture. 2.8- The partnership.
14 14 15 16 17 19 20 22 23
3- AN INRODUCTION TO HDFCSLIC LTD:3.1- Vision and values. 3.2- Product range. 3.3- SWOT Analysis of HDFCSLIC Ltd. 3.4- Market position of HDFC. 3.5- Awards and accolades. 3.6- Social initiatives of HDFC. 3.7- Highlight of the financial year 2007-08. 3.8- Main competitors of HDFCSLIC Ltd. 3.9- HDFC Future.
24 24 29 32 34 35 36 37 38 38
4- AN INTRODUCTION TO THE INSURANCE:4.1- What is insurance? 4.2- Purpose and need of insurance 4.3- Why life insurance? 4.4- Role of insurance sector in economic development. 4.5- Reforms of insurance sector. 4.6- Governance of Indian insurance sector. 5- INTRODUCTION TO THE TOPIC:5.1- My contribution to the HDFCSLIC as a project trainee. 5.2- Functions of advisors. 5.3- Opportunities in front of financial consultants. 5.4- Benefits of being a financial consultant. 5.5- Company rates for financial consultant. 5.6- Career progression and future opportunities. 5.7- How do a consultant / agent work? 5.8- Most preferred profiles to recruit advisors/ consultants. 5.9- Problem. 5.10-Procedure. 6- RESEARCH METHODOLOGY 6.1- Introduction. 6.2- Research objective. 6.3- Types of research. 6.4- Data collection. 6.5- Sample unit.
42 42 43 44 45 47 49 50 50 52 53 53 54 56 56 57 58 59 60 60 60 60 60 62
7- DATA ANALYSIS AND INTERPRETATAION:8- LIMITATATIONS:9- SUGGESTIONS AND RECOMMENDATIONS:10-RESULTS:11-APPENDICES:12-CHECKLIST:-
63 75 76 77 78 82
1.1- INDUSTRY PROFILE AND COMPANY PROFILE
The insurance came to India from UK, with the establishment of the Oriental Life insurance Corporation in 1818. The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country.
The insurance industry provides protection against financial losses resulting from a variety of perils. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, fire and storm damage, medical expenses and loss of income due to disability or death.
Incorporated in 1977 as a public limited company To specialize in provision of housing finance operative societies & the corporate sector First private sector retail housing finance company HDFC is listed on both BSE and NSE
to individuals, co-
Market capitalization (June 2007) - Rs. 95 billion (US $ 1.6 bn)
Company Name: Indian Partner: Foreign Partner: Equity Ratio:
DFC Standard Life HDFC Bank Standard Life (U.K.) 74:26
Commencement Date: January 1995 Field Of Operation: Life Insurance
CEO Of the Company: Deepak Satawalekar
1.2- ABOUT THE SUMMER TRAINING DEPARTMENT OF THE COMPANY
HDFC possesses a separate but important department for the extension of the number of financial consultants as Channel Development Department (CDD). Activities that are followed by it to search financial consultants are-
Cold Calling Visiting market
Placement Consultancies Interacting people personally
The purpose of every activity undertaken is the recruitment of financial consultants who could sell policies of the company.
1.3NEED OF STUDY
Life insurance companies expected to record a 100% increase in new business in the financial year 2007 (Source- Indian Express, Jan 8, 2008), with the annual growth rate of more than 26% per annum, insurance happens to be a mega opportunity in India. Today 29 companies are operating in India- 14 are life insurance, 14 are non-life insurance and one is Reinsurance Company. Both the public and private sector companies are the strong player in the insurance industry. Most of the private sector companies are having the joint venture with the foreign insurance companies. The size of the insurance business will jump six times to reach $60 billion by 2010 from the current size of around $10 billion, according to the ASSOCHAM. It is a business growing at the rate of 15-20 % annually and presently is of the order of Rs 450 billion. Together with the banking sector it adds about 7% to the GDP of the country. Gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of GDP. According the Annual Report of the IRDA, 9 out of the 12 private companies in life insurance suffered losses in 2002-2003. The aggregate loss of the private life insurers amounted to Rs. 386.33 crore in contrast to Rs.9620 crore surplus ( after tax)earned by the LIC. In general insurance, 4 out of the 8 private insurers suffered losses in 2002-2003, with the Reliance, a company with no foreign equity, emerging as the most profitable player. In fact the 6 private players with foreign equity made an aggregate loss of Rs. 294 lakhs. On the other hand the public sector insurers in general insurance made an after tax profits of Rs. 625.70 crore.
Insurance plays a major role in different perspective. For economic development investment are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are changed in to the investment for economic growth. `In order to amenable to statistical pre, every life insurance company wants to provide better and quick service to its customers. For this, it needs some channels in order to enable customers to interact easily with the company. Financial Consultants bridge the gap between company and the customer by imparting them the right kind of information. So, the persons those who could bear this responsibility are constantly searched by the insurance company. The main purpose of this study was to recruit quality financial consultants. Secondly, the motive behind this study of mine was to have practical knowledge of recruitment by adopting various kinds of strategies and to learn new things.
2.1 HDFC Founder
MAN WITH A MISSION If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and Chairman-Emeritus, who left this earthly abode on November 18, 1994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956, he began his lifelong financial affair with the economic world, as General Manager of the newly formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so until his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing gave birth to the Housing Development Finance Corporation - it was a trendsetter for housing finance in the completely Asian continent. He was a true development banker. His building up HDFC without any government assistance is itself a brilliant chapter in financial history. His wisdom and warmth drew people from all lifestyles to him, for advice, guidance and inspiration.
He was also a writer in his own right. There are over 200 published articles by him, full of incisive comments on finance and economics. In 1953, he brought out a volume called: The Bombay Money Market. It detailed the intricate working of the Indian money market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro - occupy pride of place in Gujarati literature. In 1992, the Government of India honored him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship.
2.2 Objectives and background
The primary objective of HDFC is to enhance residential housing stock in the country trough the provision of housing is 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 finance sector with the overall domestic financial markets. The basic objective of the HDFC is to provide the long-term finance to the households for their housing needs. Our objective, from the beginning, has been to enhance residential housing stock and promote home ownership. Now, our offerings range from hassle-free home loans and deposit products, to property related services and a training facility. We also offer specialized financial services to our customer base through partnerships with some of the best financial institutions worldwide.
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 incorporated with a share capital of Rs. 10 crores. HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. HDFC operates through 75 locations throughout the country with the corporate headquarters in Mumbai (India).
2.3 Organization & Management
HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to shareholders. HDFC has a staff strength of 1445 (as on 31, March 2008), which includes professionals from the fields of finance, law, accountancy, engineering and marketing.
2.4-Boar d of Dir ectors
Details of the Board of Directors in terms of their directorships/memberships in Committees of other public companies (excluding HDFC) are as under:
Name of Director
1 2 3 4 5 6 7 8 9 10 10 11 12 13 14
Mr. Deepak S. Parekh Mr. Keshub Mahindra Mr. Shirish B. Patel Mr. B. S. Mehta Mr. D. M. Sukthankar Mr. D. N. Ghosh Dr. S. A. Dave Mr. S. Venkitaramanan Dr. Ram S. Tarneja Mr. N. M. Munjee Dr. Bimal Jalan Mr. D. M. Satwalekar Dr. Jamshed J Irani+ Ms. Renu Sud Karnad Mr. K. M. Mistry
Executive Chairman Independent Independent Independent Independent Independent Independent Independent Independent Independent MP (Rajya Sabha) Non-Executive Special Director++ Joint Managing Director Vice Chairman & MD
KEY PERSONS OF HDFC SLIC
Deepak Satawalekar CEO and MD- HDFC SLIC
2.5-SUBSIDIARY & ASSOCIATE COMPANIES
HDFC Mutual Fund
HDFC Standard Life Intelenet Global Services Ltd.
HDFC Chubb General Insurance Company Ltd. HDFC Reality
• Other Companies Co-Promoted by HDFC HDFC Trustee Company Ltd. HDFC Developers Ltd. HDFC Venture Capital Ltd. HDFC Ventures Trustee Company Ltd. Credit Information Bureau (India) Ltd Home Loan Services India Pvt. Ltd.
2.6-The Standard Life Insurance Company Ltd.
• Mutual Life Insurance Company since 1925. • Largest mutual life insurance company in Europe. • Over 5 million policyholders. • Founded in 1825.
Head Office - Edinburgh, Scotland (UK) Financial.
Total assets under management: New premium income 2003: Rs. 7,07,836 Crores Rs. 76,277 Crores
Triple AAA rated by Standard & Poor’s and Moody’s
United Kingdom 41 branches Canada Ireland Germany Austria Spain Hong Kong China 11 branches 7 1 1 branches branch sales office
31 branches 1 2 representative office representative offices
Top 4 USP’s (Unique Selling Proposition) Of HDFC Std.Life:
• Best insurer according to Outlook. • Well supported by foreign first private sector life insurance Company to be granted a license. • Declared bonus every year from the day of incorporation. • Provides fast service to the customers in terms of claim
2.7-THE JOINT VENTURE
HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' by both Moody's and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
Discussions commenced - January 1995 Joint venture agreement signed - October 1995 Joint venture agreement renewed - October 1998 Life Insurance project team established - January 2000 (Mumbai)
Company officially incorporated - 14th August 2000 First private sector Life Insurance company to be granted a certificate of registration - 23 October 2000
HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.
In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level.
3-AN OVERVIEW ON THE HDFC SLIC LTD.
3.1-VISION AND VALUES
“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 al”
What is it?
• • • • Why? • • • •
Honest and Truthful in every action. Transparency Stick to principles irrespective of outcome. Be just and fair to everyone.
Integrity is the bedrock on which the company and the expectations of the customer and employees are built. Integrity establishes the creditability of the person defines the character and empowers one to do justice to the job. Enables building confidence and trust, achieving transparency and laying a strong foundation for building relationship. Guiding principle for all lifestyles.
What is it?
• • Why? • • • • •
Building a storehouse of treasure through experience. Looking at every product and process through fresh eyes everyday.
To exceed customer expectation and maximize customer retention. To achieve competitive advantage. To promote growth and upgrade standards in the industry. To foster creativity amongst employees and partners. To open a world of new possibilities.
What is it? • • • • Understand his expectation by keeping him as the centre – point. Listen actively. Understand customer needs and deliver solution. Customer interest always supreme.
Why? • • • • • • Reinforce brand loyalty by complete transparency. Customer is the source of revenue for the company. Customer is the reason for our existence. Ensure that customer chooses our company to do business with. Customers’ goodwill alone can bring more business and more customers. Will contribute retention.
What is it? • • • • • • Why? • • • • People are the most valuable assets of the company. Motivate individual to give his/ her best. Establish a valuable relationship with them to create a joyful working. Job satisfaction. Genuinely understanding the people, we work with. Guiding their development trough training and support. Helping them develop requisite skills to reach their true potential. Known them on a personal front. Create an environment of trust and openness. Respect for the time of others.
What is it?
• • • •
Whole team takes the ownership of the deliverables. Consult all involved, understand and arrive at a common objective. Co-operate and support across departmental boundaries. Identify strengths and weaknesses accordingly allocate responsibility to achieve common objectives.
• • • • •
Together Everyone Achieves More :- TEAM It adds joy at work place. Teamwork generates synergy and provides a focused approach. An idea or activity performed in a group has a greater acceptability. “One for all and all for one”.
Financial expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions HDFC have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Recor d so far
our gross premium income, for the year ending March 31, 2009 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores. The company has covered over 9, 59,000 lives year ending March 2009
3.2- PRODUCT RANGE
1. INDIVIDUAL PRODUCTS: HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price Term Assurance Plan
Loan Cover Term Assurance Plan
Investment Plans: HDFC SLIC plan is well suited to meet your long-term investment needs. We provide you with attractive long-term returns through regular bonuses. Pension Plans:HDFC STD LIFE INSURANCE Pension Plans help you secure your financial independence even after retirement.
• • •
Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus
Savings Plans:HDFC SLIC Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs. • • • • • • Unit Linked Young star Plus Endowment Assurance Plan Unit Linked Endowment Unit Linked Endowment Plus Money Back Plan Children's Plan.
2. GROUP PRODUCTS
One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. Group Term Insurance Group Variable Term Insurance Group Unit Linked Plan
3. OTHER PRODUCTS
• • •
Rural Products Social Development Insurance Plan Tax Benefit Schemes
The premium payment options available to the customers vary from online payment to direct desk payments at the HDFC Standard Life Branches, by courier services or in drop boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or standing instruction mandate. HDFC Standard Life Insurance Company is a customer oriented corporation and aim at complete customer satisfaction.
The lapsation and renewal policy of HDFC Standard Life are clearly defined on the official website. Online renewal forms are also available. For any change in personal details like the contact details or the nominee of the policy or policy benefits, online servicing is also available. Even the claim procedure has been simplified since affect of the loss life is irreparable and is thus fully understandable at HDFC Standard Life. A completely hassle-free process has been formulated to provide maximum convenience.
3.3-Swot Analysis of “HDFC Standard life insurance”
Strengths: Localized branches. Strong brand name Big budget & Willingness to invest in market. Highly educated & well-experienced top management. Huge resources as compared to those of rivals. HDFC maintains high quality of their products. Glamorous, attractive & effective campaigning. Wide brand variety to face the competitor’s variety to face the competitors & to serve the masses. High demand of the product
Weaknesses More individuality in staff than conformity with the company’s Lack of advertising material in some areas of region. Focusing on bulk orders rather than small ones. goal.
Opportunities Increase market share by improving services. Target consumers increase in remarkable percentage every year.
Threats Loosing market share due to inefficient workforce. Decline in the market reputation due to ineffective & delaying. Heavy investment. Relevance of SWOTanalysis.
The SWOTanalysis makes us aware of the strengths, which will serve as pillar to take strategic decision. The weakness tells us about the problems confronted by the company and accordingly the future step to be taken to over come them. SWOTanalysis projects an idea about the investment area, which will yield more profit as well as the risk concerned.
3.4- MARKET POSITION
HDFC Standard Life Insurance Company Ltd. In the total market share, LIC has reduced its share from 91% to 70%. This means that private insurance players have got more margins in their hands which have increased from 9% to 30% in last 2years only. In the private market share, HDFC SLIC leads with 39% of the market share in its hand followed by ICICI PRUDENTIAL 18% shares and then comes Birla Sun Life with 15% market shares. HDFC SLIC has been maintaining its No. 2nd position since last 5 years because of its prolific product range and commanding brand equity. It has a highest capital base of Rs. 925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brand recall rate of 92% and gives credit of its success to the 5 core values-
Integrity Customer Boundary Less Ownership Passion
3.5- AWARDS & ACCOLADES
Excellence in service industry by the Indian Institute of Marketing Management & Top Management Club (Pune) –1998 Rated as one of the best companies in India for strategy & management and investor relations by Asia money – 1998 Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC region by the South Asian Federation of Accounts in the financial sector category One of the 5 best Indian Boards by Business Today –1997 Most competitive Indian company by Euro money – 1997 India’s best managed company by Asia money magazine - 1995 and 1996 United Nations Scroll of Honour - 1991 Rated as the Best Non-Banking Financial Company in Asia by Investor Research Group – 2002 Asia money declared HDFC as the second best managed company in India – 2001 CII-EXIM Bank Commendation Certificate for commitment to TQM – 2000 IMC Ramakrishna Bajaj National Quality Award in the service category - 1999 Shield for the best presented accounts for banks and financial Institutions - over 11 times (8 years in a row). Institutional
3.6- Social Initiatives
A widely quoted definition by the World Business Council for Sustainable Development states that 'Corporate Social Responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large'. Although the term 'CSR' is of relatively recent vintage, it is this commitment that HDFC has exemplified with zeal, perseverance and enthusiasm since its nascent years. The initiatives undertaken by the Corporation from its earliest days flow from a wellspring of voluntary efforts as opposed to obligatory commitments.
Shelter Assistance Reser ve
The year saw the utilization of the Shelter Assistance Reserve towards a wide array of development projects across the country. The Reserve supported close to 160 nonprofits and development organizations with the overall utilization at Rs. 4.68 crore. The segment-wise break-up of the utilization is highlighted in the chart below:
3.7- Highlights of Financial Year 2008-09
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 FY2008-09.
Alternate Channels including bank assurance 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 of 83% over FY2008-09.
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 1,45,00.
3.8- Main competitors of HDFC SLIC
LIFE INSURANCE CORPORATION OF INDIA (LIC) The Life Insurance Corporation (LIC) was established about 52 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and became synonymous with life insurance. Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six-lakh agency force. At the industry level, along with the Government and the GIC, it has helped establish the National Insurance Academy. It presently transacts individual life insurance businesses, group insurance businesses, social security schemes and pensions, grants housing loans through its subsidiary; and markets savings and investment products through its mutual fund. It pays off about Rs 6,000 crore annually to 5.6 million policyholders.
Training activities for agents/advisors: • • • As per IRDA, 100hrs training is compulsory for 17 days. Only classroom training is available. Only full-time training is given. (ICICI Prudential advantage: - Part time option available.)
Commission Structure: Depends on the plan or the product / policy which the advisor sells to the customer. Every policy has a commission amount fixed on it as per specifications of IRDA.
Modes & ways through which the company recruits agents: - Through development officers. - Through corporate agencies (Bankers and Brokers). - Carrier agent branch (i) rural carrier agent (ii) Urban carrier agent. Current agent force
Around 30000-35000 agents in Delhi
Top 5 USP’s (Unique Selling Proposition) Of LIC
• • • • •
TRUST (since 1956), ORG marks survey has rated LIC most trusted branch in life insurance Having a vast network of 2050 branches and nearly 10 lakh agents. Best claim performance in the world by Depth and Maturity claim. A government-undertaken company ensuring safe and corruption free insurance. Variety of plans available to match the customer’s needs.
ICICI Limited is a multi-business corporation that has business interests in telecom services, bulk pharmaceuticals, electronic components and specialty products. It is also the service-oriented businesses of healthcare, life insurance and information technology.
Training activities for agents/advisors: • • • As per IRDA, 100hrs training is compulsory. Only classroom training is available. Only fulltime training is given.
(HDFC Standard Life advantage: - Part time option available.)
Commission Structure: • • Minimum - 2% Maximum – 40%.
Varies from product to product- 25%, 7.5%, 10% & 15%.
Modes & ways through which the company recruits agents: • Reference (only) ICICI PRUDENTIAL recruits agents only on basis of reference. Current agent force: Around 2000-3000 in Delhi.
Top 5 USP’s (Unique Selling Proposition) Of ICICI PRUDENTIAL: • • • • • Training, which is compulsory for every agent/advisor so that they work according to the company’s working style. Emphasizes on whole life products. Flexibility of the product to adapt to customers changing needs in future. Believes in healthy competition with other life insurance companies. Agent is the power.
3.9- HDFC Future
HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending programmed. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service.
4- AN INTRODUCTION TO THE INSURANCE
4.1 WHAT IS INSURANCE
Today every human being lives on to make a better and secure future, since a secured future is a guarantee to have a better tomorrow. In addition, to make a secured tomorrow, one is required to become financially independent for self and the family, to fulfill the needs of the family members in the time of need. The business of insurance is related to the protection of economic value of assets. The asset would have bee created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it sold and income is generated. In the case of a motor car, it provides comforts and convenience in transportation there is no direct income. Both are assets and provide benefits.
Every asset is expected to last for a certain period of time during which it will provide the benefits. After that, the benefit may not be available. There is a lifetime for a machine in a factory o a cow or motorcar. None of them will last forever. The owner is aware of this and he can so mange his affairs that by end of that period or lifetime, a substitute is made available. Thus, make sure that the benefit is not lost however, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it in capable of giving the benefits. An epidemic may kill the cow suddenly. In that case, the owner and those enjoying the benefits there form, would be deprived of the benefits. The planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effects of such adverse situation. It promises to pay the owner or beneficiary of the asset, a certain sum if the loss occurs. 43
4.2-PURPOSE AND NEED OF INSURANCE
Assets are insured, because they are likely to be destroyed or made non- functional before the expected lifetime, through accidental occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns, lighting, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are consequential losses or damages. The risk to owner of a building, because of the peril of an earthquake, may be few lakhs or a few crores of rupees, depending on the cost of building, the contents in it and the extent of damage. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, but the building may not have been affected at all. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word ‘possibility’ implies uncertainty. Insurance is relevant only if there if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of human being, death is certain, but the time of death is uncertain. The person is insured, because of the uncertainty about the time of his death. In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. It would be ‘soon’. He cannot be insured. Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The risk can sometimes be avoided, through better safety and damages control measures. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged. Insurance only compensate for the losses-and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non- economic losses are love and affection of parents, leadership of manager, innovative and creative abilities, etc.
4.3- WHY LIFE INSURANCE? We think twice before taking the plunge into buying insurance. Is buying insurance a necessity now? Spending an 'extra' amount, as premium at regular intervals where we do not see immediate benefits does not seem a necessity now may be later. Well we could be wrong. Buying Insurance cannot be compared with any other form of investment. Insurance gives us a life long benefit and the returns will definitely come but only when we need it the most i.e. at the right time. Besides buying insurance early in life is one of the wise decisions we could take. Because the premium we would be paying would be comparatively lower. Insurance is not about how much more it can offer us when the stock market is at its peak. It may not be an attractive investment option. However, weigh the pros and cons and consider how much more it offers at a small price. Most important of all it provides us with that unique sense of security that no other form of investment provides. It gives us a sense of financial support especially during that time of crisis irrespective of the fluctuations in the stock market. Insurance provides for our career goals right from your childhood years. If the earning member of the family is no more our child's educational needs will not suffer. In fact his higher education too will be provided for. We need not spend sleepless nights thinking about how to save for our child's marriage. Life Insurance will take care of that typical once-in-a-life-time spending on marriages. An accident or a disability may be devastating but an insurance policy can be of utmost support for the family during such times too. Besides, it provides for additional benefits such as bonuses. We need not worry about our retirement years. The rising prices, taxes, and our lifestyle will be taken care of easily. In addition, we can relax and spend our old age in comfort and peace. Life insurance today plays a major role in ones life at various stages. Considering the benefits it offers one cannot but give a thought to buying an insurance policy at the earliest.
4.4- ROLE OF INSURANCE SECTOR IN ECONOMIC DEVELOPMENT For economic development, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth. The insurance act has strict provision that insurance funds are invested in safe avenues, like government bonds, companies with record of profit and so on. As on 31.3.2006, the total investment of LIC exceeded Rs. 520,000 crores, of which nearly Rs. 300,000 crores were directly in government (both state & centre) related securities, nearly Rs. 16, 0000 crores in the state electricity boards, nearly Rs. 22,000 crores in housing loans, Rs. 19000 crores in the power generation (private) sector and Rs. 10,000 crores in water supply and sewerages systems. Other investment included road transport, setting up of industrial estates and directly financing industry. Investment in the corporate sector (shares, debenture and term loans) exceeds Rs. 30,000 crores. These directly affect the lives of the people and their economic well being.
The L.I.C is not an exception. All good life insurance companies have huge fund, accumulated through the payments of small amounts of premia of individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business. The private insurers in India are new and have accumulated funds equal to about one-eighth of the L.I.C’s. but even their investment in the various sectors and contributing directly and indirectly to the country’s economic development, would be of similar proportions. A life insurance company’s funds are collected by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the 46
policy holders. The management of life insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. That is way insurance companies would not be found investing in speculative ventures. Their investments, as in the case of the L.I.C, benefit the society.
Apart from investments, business and trade benefit through insurance. Without insurance, trade and commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. financiers, like banks, would collapse if the factory, financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if their debtors default.
4.5- INSURANCE SECTOR REFORMS Prior to liberalization of Insurance industry, Life insurance was monopoly of LIC. In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to
address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. Competition Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.
Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent
Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time) Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology is to be carried out in the insurance industry. Is insurance a worthwhile career? Considering that, insurance is a profession that is identified with accidents, untoward incident and those insurance officials has a poor image of over promising, and underdelivering on the insuring public, is insurance an honorable and worthwhile profession? The answer is yes. This profession provides a framework for learning about human nature at its raw; makes one persistent in his efforts; provokes to rethink on revised strategies and procedures for achieving goals. One is required to think and feel like a lawyer and to make allowance for the views and feelings of others in arriving at decisions. One is required to rapidly build up gaps in his knowledge base, should he want to succeed in the profession. One’s ability to compromise and work with others is continually on trial. One has an opportunity to become a complete human being who can show care and consideration for others. The profession of insurance provides many opportunities to work with corporate bigwigs and gives immediate access to the top most industrialists, bankers and other professionals on a one-to-one basis. Every enterprise needs insurance. No profession is that all pervasive in its activity and in soliciting and developing professional contacts as insurance is. One’s role as a supplier of insurance is important to all and sundry in involving their insurance problems. This is something unique to the profession as on the same lines as banking. On balance, the profession of insurance tests the level of knowledge, skills, attitudes and working habits to the hilt. It is for one to make full sense of the opportunities the profession provides to build up one’s influence as a complete professional and a human being.
4.6- GOVERNANCE OF INDIAN INSURANCE SECTOR
REGULATORY BODY Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. The Insurance Regulatory and Development Authority (IRDA) Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. MISSION-IRDA “To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.”
5- INTRODUCTION TO THE TOPIC
5.1-My Contribution in HDFC SLIC as a project trainee
The task of mine was to recruit quality insurance advisors for the company to enhance its channel. It included the use of different kinds of strategies to convince the persons to join the company. Activities werea.) Cold calling, in this I used to call people on the data provided by my mentor and telling them the benefits of being a financial advisor. b.) Meeting people face to face and convincing them to be a financial consultant. c.) Taking part in the canopy activity conducted by the company for the extension of chain of insurance advisors. For convincing the person, I had to provide him the detailed information of the benefits of becoming an insurance advisor, discussion of the current reputation of HDFC as a brand and the reasons for joining HDFC only. I used to tell them from the side of company thatWe are partners in your growth and provides you-
1. Attractive payments and benefits 2. Strong reputation 3. High quality Management Support 4. Superior Products 5. Excellent customer service 6. High quality Management Support
After giving all information I used to raise their confidence by saying them that they have the potential to perform the duty of a financial consultant and make use of the opportunity to-
1. To be part of a world-class sales team. 2. Work from his/her (advisor) own office or residence. 3. Work full time or part time. 4. Earn commission, bonus and incentives. 5. No upper limits on earnings. 6. Flexible career. If the person used to give their consent to be a financial consultant then asking them to complete required formalities by bringing needed documents.
Main hurdle that I faced while approaching the people to listen to me was their indifferent attitude towards insurance sector and reluctance to give some time to me. It was very much difficult for me to make them ready to give their attention towards my business proposal.
WE ARE PARTNERS IN YOUR GROWTH
Attractive payments and benefits
High quality Management Support Executing Training
5.2- FUNCTION OF ADVISORS:Advisors provide on going financial advice for his /her client/prospect. In our official term prospect is a person who can buy life insurance from us. The advisors study the prospects needs and persuade them to buy a policy. Complete all formalities for proposal of new insurance, including filling up forms. Collecting premium, arranging medical examination, collecting proofs (of age/income), reports and information required by the underwriter. After having sold a new insurance policy, the advisor has to ensure that the policy continues, without a lapse until it becomes a claim. For that reason, an advisor has to do the following: 1. Keep in touch with the policyholder to make sure that renewal premiums are paid in time. 2. Ensure that nominations are made or changed, if necessary. 3. Assist in collecting claim amounts. As an advisor you contribute in bringing in new business for the company offer world class pre and post sales service to the clients with the support of the organization.
But an advisor to us means much more than a salesman or a, saleswoman, we at HDFCSTD LIFE INSURANCE recognize our advisors as the ambassadors of our organization in the market place and we consider the advisor force would be our biggest differentiating factor in the coming years. That is why; we take a lot of care in recruiting and developing our advisor force, so that we can maintain our standards of quality in service and salesmanship. An insurance advisor acts as a link between the clients and the company. A lot depends on it to bring new business for the company But an advisor to us means much more than a salesman or a, saleswoman. They are regarded as an ambassador of the company and considered as a biggest strength of the company. Therefore, the recruitment and development of an insurance advisor needs a great attention.
5.3- Opportunities in front of a financial consultant:-
2. Flexible working environment. 3. To be his/her own boss. 4. Unlimited earning potential. 5. To be part of worldClass team.
5.4- Benefits of being a financial advisor:1. MONETARY BENEFITS
Commission:- Different products will have different commission structures. This commission varies between 7.5% to 40%. Renewal Commission: - It is paid at the following rates: 2nd yr: onwards.
Bonus: - Every year company declares bonus in favor of financial
advisors depending upon the company’s over all profit. Incentives: - Financial advisors are provided incentives when they
achieve certain targets. 2. NON MONETARY BENEFITS • Rewards & Recognition:-
HDFC Standard Debut Star Club for Newcomers: It is a way of recognizing new talents and taking top performers to the exiting locations across India providing them opportunity to share ideas with one another.
Ongoing contests: Every now and then company conducts programs and contest to recognize and reward the advisors with prizes like Gold
coins, DVD Players, Laptops, Overseas Trips and even Mercedes Benz.
Sales convention exotic locales: Top performers get selected to go to all expense paid Sales Conventions at exotic locations throughout India and Overseas.
Grand perk program: This program entitles advisors two special benefits depending upon their categorization into Platinum, Gold and silver categories.
MDRT (Million Dollar Round Table) Eligibility:
achieve a premium of over a certain value in a year are eligible to qualify of member ship of Million Dollar Round Table (MDRT) which is an International forum that recognizes the world’s most successful agents in an annual get together in a global destination. HDFC Standard has the highest number of MDRT eligibility amongst all private players.
5.5- Company rates for financial consultants
Basic 1st year commission for conventional plans (prior to 21st march 2007)
Name of the plan
Premium paying term Premium paying term of 15 years & above of less than 15 years
20% 20% 20% 15% 15% 7.5%
assurance 25% 25% 25% 20% 20% 7.5%
plan Money back plan Children’s plan Term assurance plan Loan cover term assurance plan Personal pension plan
1st year commission payable on regular premium conventional policies issued on or after 21st march 2007.
Name of the plan
Endowment assurance plan Money back plan Children’s plan Term assurance plan Loan cover term assurance plan Personal pension plan
1st year commission
40% 40% 40% 25% 25% 7.5%
Basic commission payable on single premium conventional policies:
Name of the plan
Single premium whole of LIC Term assurance plan Loan cover term assurance plan Personal pension plan
Basic commission as a percentage of single premium received
2% 2% 2% 2%
5.6- CAREER PROGRESSION AND FUTURE OPPORTUNITIES
Pinnacle:-Advisors those who are ambitious go getters, high performance with leadership ability can lead to a manager status with in HDFC Standard. Pinnacle is a program of sustained career progression of advisors to Unit
Manager; A Unit Manager has a full time career within HDFC Standard Life resulting in increased monetary benefits and better growth prospects. It is also an opportunity to get promoted to agency manager and Senior Agency Manager with a significantly higher earning potential.
Mobile Tigers: - The advisors recognized as “Mobile Tigers” also become part time trainers who conduct foundation programs and share best practices with other advisors while earning remuneration for this training. Simultaneously, they continue to build their business as Life Insurance Advisors.
5.7- HOW DOES AN CONSULTANT/AGENT WORK • • • • • Firstly, an advisor/agent has to make a list of 100 people that he/she knows. Then the Advisor/agent makes a call to these clients and tries to fix an appointment. When an appointment is fixed, the advisor/agent meets the customer & tries to sell the product. After that the advisor/agent asks for the reference of maximum number of people from the client. The reference is asked in context to make future calls and the whole procedure is repeated again.
5.8- MOST PREFERRED PROFILES TO RECRUIT ADVISORS/CONSULTANT
Housewives Income Tax Consultant
Chartered Accountant Sales Personnel’s working in Automobile Dealership Credit Card Co. Telecom Mutual Fund • • • • • • Doctors Teachers Advisors of other insurance companies Graduates Business Men Accountants.
Expectations from the financial consultant: 1. Achieve sales target. 2. Participate in all meetings. 3. Attend all training programs. 4. Weekly review at the office 5. Follow the sales process. 6. Follow weekly reporting sales process
5.9- PROBLEM: The best way of understanding the problem is to discuses it with owns colleagues or with those having some expertise in the matter. In an organization the researcher can seek the help from a guide who is usually an experienced man and has several research problems in mind. Often, the guide puts the problem in
general terms and it is up to the researcher to narrow it down and phrase the problem in operational term. In private business units, the problem is usually marked by the administrative agencies with whom the researcher can discussed as to how the problem originally came about and what consideration are involved in its possible solutions.
By using the above concept throughout the two months project I have faced several problems but the main problem behind these all problems is that to find out a potential advisor, This implies that I have to choose an advisor those who are highly good networks with other people. Beside the job which has to be performed by an advisor till become much easier only when he/she has a good contact with other. Some problems, which I faced in a regular manner, are summarized in the following points:-
1. People never get interested. 2. People already have one license. 3. People vivant to know about product profile. 4. People do not afford the training period 5. People net interested to invest Rs1000 6. People like to have a fixed salary job. 5.10- PROCEDURE: The whole procedure of my job is given in the form of a flow chart so that it is easy to conceptualize the idea. DATABASE
TAKE ONE FROM THESE DATA MADE A TELEPHONE CALL AND FIXED AN APPOINTMENT
GO THAT PERSON/ CALL THAT PERSON IN OFFICE TRY TO CONVINCE THEM GIVE THEM FORM AND ALL NECESSARY INFORMATION & ASK FOR NECESSRY DOCUMENTS AFTER SUBMITTING, THE FORM 1 TOOK REFERENCE FROM THEM CLOSED THE CALL
6- RESEARCH METHODOLOGY
The term methodology refers to the way to systematically solve the research problem. In this, various steps are followed to find the solution of the problem. Certain steps are1.) Identification of problem 2.) Analysis of problem 3.) Choosing the method to solve the problem 4.) Collection of data 5.) Analysis of data 6.) Conclusion 6.2- RESEARCH OBJECTIVE:To recruit the Human Resource as an insurance advisor for the HDFC Standard Life Insurance Limited and survey the product market of HDFC. 6.3-TYPE OF RESEARCH:Exploratory in nature-Type of research was exploratory in nature because the study included the tapping of different areas to find the suitable financial advisor for the company.
6.4 DATA COLLECTION:-
Primary data Secondary data
PRIMARY DATA Sample unit: -
The research process was done by interacting with number of customers during the activities performed, which included, markets, cold calling, canopies, etc. Design consists of Simple Random Sampling. Sample size: - 100 people Method of collection: Field procedure for gathering primary data included interview schedule in which the questionnaires were filed by the interviewer. Research Instrument: Questionnaire The questionnaire was formulated by keep in mind the following Sample
Points: • • • • Giving the respondents clear comprehension of the question. Inducing the respondents to co-operate. Giving instructions as to what is wanted. Identifying the needs to be known.
Limitations: The following were the limitations that were there during the course of the study: 1. Limited time period. 2. Less number of respondents. 3. Biasness of the respondents.
Method of collection data:Secondary data was collected from the various second hand data collection sources like, magazines provided by HDFC Standard Life Insurance company, secondary data was also provided by company executives, from internet, companies annual report etc. Research Instruments:Magazines. Newspapers. www.hdfcinsurance.com www.google.com (Internet search engines) www.Indiahousing.com www.irdaindia.com Other source: - Data provided by the mentor in an organization.
6.5- SAMPLE UNIT:The research process was done by interacting with number of customers during the activities performed, which included, markets, cold calling, canopies, etc. design consists of random sampling. Sample
7-DATA ANALYASIS AND INTERPRETATION Data Analysis is done by taking sample size of 100 respondents who were approached for being financial advisor for the company. It has been shown with the help of following graphical presentation. 1. Occupation
No. of Occupation people Govt. 25 Private 30 Student 25 Other 20 Total 100 Total percentage ( %) 25 30 25 20
25% Govt Private Student
25% people are in govt. job. 30% people are in private job. The percentage of students is 25%. 20% people are engaged in other kinds of jobs.
2- Marital status-:
No. of Married yes no people 65 35 Total percentage (%) 65 35
no 35% yes 65%
35% people are married. 65% people are not married.
3- Pan Card Holders-:
No. of Pan Card Yes No
Total percentage 60 40
persons (%) 60 40
60 60 50 40 30 20 10 0 1 Yes No
The percentage of pan cardholders is 60%. 40% people do not possess pan card.
.>2 lakhs 2 to 4 lakhs < 4 lakhs
respondents 48% 30% 22%
.>2 lakhs 2 to 4 lakhs < 4 lakhs
The persons having annual household income less than 2 lakhs are 48%, between 2 to 4 lakhs are 30% and more than 4 lakhs are 22%.
5- Job satisfaction:-
Total percentage (%} 67
60% 50% 40% 30% 20% 10% 0% yes
Among all respondents, 55% persons are satisfied with their current job while rests 45% are not. 6- People known by respondents:-
No. of people known by respondents
0 to 40 10%
40 to 80 27% Above 80 63%
Out of 100 people, 10% people know persons between0 to 40, 27% says that they know 40 to 80 persons and 63 % are familiar with more than 80 persons.
7. If offered a chance to earn extra income:-
Chance to earn extra income Yes No
No. of respondents 88 12
Total percentage (%) 88 12
Chance to earn extra income
88% respondents would like to earn extra while rest 12 % were not bothered to earn extra income.
8. If agrees to earn extra, then how much? Total percentage Income > 50,000 50,000 to 2lakhs < 2 lakhs No. of people 45 36 19 (%) 45 36 19
No. of people to earn within the given range
19% 19% 45% 36% 36% 45% > 50,000 50,000 to 2 lakhs < 2 lakhs
The percentage of people is 45, those who would like to earn more than 50,0000. 36% people would like to earn between 50,000 to 2 lakhs and the intensity to earn more than 2 lakhs is possessed by 19 % people.
9- Time devoted for extra income
Time devoted to earn extra income < 4 hours 2 to 4 hours > 2 hours
No. of respondents 36 52 12
Total percentage (%) 36 52 12
> 2 hours
2 to 4 hours
< 4 hours
36 20 40
No. of rspondents
36 60 80 % 100 120
36 % respondents could devote more than 2 hours, 52% could give their 2 to 4 hours and the capacity to give more than 4 hours is possessed by 36%.
10- QUALIFICATION STATUS:
MBA POST GRADUATE GRADUATE UNDERGRADUATE
QUALIFICATION Under Graduate Graduate Post Graduate MBA Total
Frequency 20 55 15 10 100
Percentage 20% 55% 15% 10% 100%
INTERPRETETION:Among all the respondents, it has been observed that 55% of them are graduates, 20% of them are Under Graduates, 15% of them are Postgraduates and only 10% are MBA Professionals.
11- CURRENT JOB SATISFACTION:-
CURRENT JOB SATISFACTION Yes No
No. of respondent 30% 70%
Data shows that 70% of the people are not satisfied with there present job. They want to earn extra income but not on commission basis they want regular income even in the part time job and 30% of the people are satisfied with there present job. 12- REACH:-
REACH 0-40 40-80 Above 80 Interpretation:-
No. of respondent 7% 20% 73%
7% of the respondents know 0- 40 people. 20% of the respondents know 40- 80 people 73% of the respondents know people more than 80 people. 8- LIMITATIONS: As we, all know that for every good work there should be some leakage also. Here leakage means some drawbacks. What I had found in my quest SUMMER TRAINING that are expected to be as follows: 1. Lack of proper advertisement over the market. 2. Growing awareness is very low. 3. Segmented area is very specific. 4. Database is always dependable. 5. Network over the work is very exhaustive. 6. Company always believes their own channel. 7. All advisors are not equal in nature. 8. Flow of information moves very slow. 9. Survey is restricted to Delhi and its suburbs only 10. The study was undertaken on a small account due to lack of time and resources. The sample size chosen after random selection through tale calling thus results of the low as compared to direct interaction
9- SUGGESTIONS AND RECOMMENDATIONS
Solutions as per the problems: During my Summer Internship in HDFC Standard Life Insurance Company, I under stood the basic concept of how this industry works and the knowledge helped me a lot to give the recommendations as stated below: • • • • • • Try to know the reason for being not interested. Tell them it is quite possible any of his/her relatives can take that license and that eligible person will actually work on behalf of his/her. Try to make them aware as much as possible regarding product profile, which is best in the market like lifetime, life time pension and smart kids. Convince them by saying that we also have an evening class or on line training program so that; that person can easily afford this time. If the person will make one policy, he/she will be able to earn that much of money by means of commission. In N.C.R average fixed salary is Rs. 2500/- to Rs. 3500/- But from this kind of job profile if person is eligible then he/she can earn at least 5000,' on words. • I observed that people in general have the perception that insurance is only for upper class people. And it is useful in case of tax saving. People should be made realize that it is a great way of saving for the future too. There is a high need for education and awareness of the benefits that insurance policies provide. • It is very essential for HDFC Standard Life Insurance to win the trust of the people. I noticed that LIC dominates the market hence; HDFC Standard Life Insurance needs to encash its brand name.
Results: Out of 250 calls, I found that 100 people were interested to join, HDFC STD LIFE INSURACE. However, they were not ready to manipulate their existing jobs with the jobs HDFC STD LIFE INSURACE. Because they faced different problems such as 1-12-14 days full or part time training 2-Time availability. 3- Recent pressure in their own jobs. 4-Non-flexibility in the rules and regulations.
I was able to found 5 people those who are joining in HDFC STD LIFE INSURANCE as an advisor. However, out of these 5 peo
11-APPENDICEY Questionnaire Bibliography
HDFC Standard Life Insurance
Address- __________________________________________ __________________________________________ Contact No. - Mobile ________________________ Land line ______________________ Pan cardYes NO
1) Currently working with which company- __________________________ 2) House hold income- ___________________________________________ 3) Are you satisfied with present jobYes No
4) Number of people known by youa) 0-40 b) 40-80 c) Above 80 5) Given a, chance, would you like to make extra incomeYes No
6) How much extra income would you like to earn _________________________ 7) How much time would you like to devote to earn extra income ______________ 8) Your suggestion about HDFC as a brand
BOOKS: • • MARKETING MANAGEMENT RESEARCH METHODOLOGY, (C.R.KOTHARI)
www.google.com • www.hdfcinsurance.com
1. 2. 3. 4. Is the report properly hard bound/Spiral bound? Is the Cover page in proper format as given in Annexure A? Is the Title page (Inner cover page) in proper format? (a) Is the Certificate from the Supervisor in proper format? (b) Has it been signed by the Supervisor? 5. Is the Abstract included in the report properly written within one page? Have the keywords been specified properly? 6. Is the title of your report appropriate? The title should be adequately descriptive, precise and must reflect scope of the actual work done. Yes No Yes No Yes No Yes No / / / /
Yes / No Yes / No Yes / No Yes / No
Have you included the List of abbreviations / Acronyms? Uncommon abbreviations / Acronyms should not be used in the title. Does the Report contain a summary of the literature survey?
Yes / No Yes / No
Does the Table of Contents include page numbers? (i). Are the Pages numbered properly?
Yes / No Yes / No Yes / No Yes / No
(ii). Are the Figures numbered properly? (Figure Numbers and Figure Titles at the bottom of the figures) (iii). Are the Tables numbered properly? (Table Numbers and Table Titles at the top of the tables) (iv). Are the Captions for the Figures and Tables proper?
Yes / No (v). 10. 11. Are the Appendices numbered properly? Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Is the conclusion of the Report based on discussion of the work? Are References or Bibliography given at the end of the Report? Have the References been cited properly inside the text of the Report? Is the citation of References in proper format? 12. Have you written your report according to the guidelines? The report should not be a mere printout of a Power Point Presentation. Source code need not be included in the report. A Compact Disk (CD) containing the softcopy of the Final Report and a copy of the Final Seminar Presentation made to the Supervisor / Examiner (both preferably in PDF format only) has been placed in a protective jacket securely fastened to the inner back cover of the Final Report.
Declaration by Student: I certify that I have properly verified all the items in this checklist and ensure that the report is in proper format as specified in the course handout.
Date: _________________________ Name: ___________________________ Signature of the Student
Roll No.: ___________________________