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Hdfc Project Pawan Nagar01

Hdfc Project Pawan Nagar01

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Project On

³Developing a chain of advisors to enhance
marketing channel´

Master of Business Administration (Marketing)
Submitted in partial fulfillment of the requirements for award of Master of Business Administration of Tilak Maharashtra University, Pune.

Submitted by Pawan Nagar

of Ansal Institute of Technology Gurgaon Guided By Prof._____________________

Tilak Maharashtra University Gultekdi, Pune 411037

Tilak Maharashtra University, Pune
(Deemed Under Section 3 of UGC Act 1956 Vide Notification No. F.9-19/85-U3 dated 24th April 1987 By the Government of India.)

Vidhyapeeth Bhavan, Gultekdi, Pune-411037.

CERTIFICATE This is to Certify that the project titled ´Developing a Chain of Advisors To Enhance Marketing Channelµ is a bonafide work carried our by Mr./ Ms. Pawan Nagar a student of Master of Business Administration Semester 3rd, Specialization Marketing PRN.__________________ under Tilak Maharashtra University, in the year 2010.

Head of the Department Date: Place:

Examiner Internal

Examiner External

University Seal


Certificate of Internal Guide
This is to certify that the project titled Developing a chain of advisors to enhance marketing channels is a bonafide work carried out by Pawan Nagar a candidate for the award of Master of Business Administration of Tilak Maharashtra University, Pune under my guidance and direction.

Signature of Guide Date: Name: Designation: Place: Institute:


Pawan Nagar MBA Student of Tilak Maharashtra University.CERTIFICATE TO WHOMSOVER IT MAY CONCERN This is to certify that Mr. He has done the project on ³___________________________________________´. Company Name Company Seal Designation Signature 4 . Pune has successfully collected the data for the project report for award of Master Degree of Business Administration.

CONTENT Acknowledgment 6 Chapter 1: Rationale for the study Chapter 2: objective of the study y y y Title of the project Objective of the study Scope of study 7 8 Chapter 3: Profile of the Company Chapter 4: Review of literature Chapter 5: Research methodology y y y Research Design Data collection method Sampling technique 11 37 41 Chapter 6: Data analysis Chapter 7: Findings Chapter 8: Limitations Chapter 9: Recommendations Appendix 44 53 54 55 5 .

I also thank my faculty guide Mrs.Acknowledgement I would like to thank and express my gratitude towards HDFCSLIC ltd for providing me an opportunity to work and learn through summer training. My sincere thanks to Mr Himanshu Sharma. He has been a source of consistent and professional evaluator of my project. I am extremely grateful to Mr. HIMANSHU SHARMA for giving me the opportunity to work on live project and providing me his wholehearted cooperation. He was always a hand away and gave his guidance throughout the course of my training. help and valuable guidance at every stage of my project. Without his personal guidance I would have never come to successful & efficient completion of this project. Amita Pasricha in AIT Gurgaon for ««« 6 .

Chapter-1 Rationale of the study As a partial fulfillment of the MBA Course in which eight week training has been incorporated in the curriculum. 7 . In the report every possible step that had been taken in the project are shown as a glimpse. with a hope that it will be a tool to help the organization through the findings and opinion given in the report. To understand and to apply the concepts of the curriculum. I have undergone summer training in HDFC STANDARD. This project provided me an opportunity to gain profound insight into a practical applicability of management concepts and developing better ability to analyze problems and decisions that has contributed significantly for better use of resources available to the management. Gurgaon in the title of the project ³Developing a chain of advisors to enhance marketing channels´. For which the report have been prepared with suggestions and opinion of the respective subject given by me. during which a study is to be done in an organization mainly to extract the practical knowledge & skill from the actual environment.

To know the origin and history of life insurance companies. To understand what channel development is and to understand how does he work. To know the role of financial consultant in life insurance industry. 8 . To understand the functioning of life insurance industry. To understand the importance of channel development. The following are primary objective of study: y y y y y y y y To have complete knowledge of life insurance.Chapter-2 Title of the project ³Developing a chain of advisors to enhance marketing channels´ OBJECTIVE OF THE STUDY The main objective of this project is to have complete knowledge about Life Insurance and life insurance plans of Hdfc standard life insurance company. To make a chain of consultant of company. To gain experience in different environment with different people. Secondly to make a chain of financial advisors so as to enhance marketing channel of the company and to understand how does channel development work for insurance company.

So. 9 .SCOPE OF THE STUDY Every life insurance company wants to provide better and quick service to its customers. Secondly. For this it needs some channels in order to enable customers to interact easily with the company. The main purpose of this study was to make a chain of financial consultants so as to enhance marketing channel. Financial Consultants bridge the gap between company and the customer by imparting them the right kind of information. 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. the persons those who could bear this responsibility are constantly searched by the insurance company.

First of all I was explained about the importance of a financial consultant in the company. Each company is opting best possible strategy to spread its wings and attracting customer towards it by providing uninterrupted services. how and where to find them. I got questionnaires filled with various customers to know their opinion and awareness about insurance sector.EXECUTIVE SUMMARY Executive summary As in current scenario when there are so many players in life insurance sector. I conducted my research in Gurgaon and Delhi the areas close to it to know the public response and conducting analysis part. My study included the follow-up of procedures used for the recruitment of an insurance advisor who can sell the products of the company. It was a delighting experience to engage 10 . their functions and then. I had to introduce them with the benefits of becoming a financial consultant and if they agree for it then doing their further documentation. each is having tough competition with other. My project was to recruit financial consultants. For this I performed market research by using various kinds of activities like meeting persons individually in the market. HDFC Standard Life Insurance is also giving better services to its customers through the channel of financial consultant. convincing people by telecalling and through canopy activity to join HDFC as a financial consultant. This study gave me immense opportunity to enhance my inter-personal skills and to have practical exposure of dealing with the customer directly.

interesting conclusions were drawn from the collected data.myself in this summer internship because it taught me the ways of approaching and convincing the customer and finally recruiting them for the organisation in which I worked. 95 billion (US $ 1. Finally.6 bn) 11 . co-operative societies & the corporate sector First private sector retail housing finance company HDFC is listed on both BSE and NSE Market capitalization (June 2007) . Chapter-3 Profile of Company INDUSTRY PROFILE      Incorporated in 1977 as a public limited company To specialize in provision of housing finance to individuals.Rs.

K.) 74:26 Commencement Date: January 1995 Field Of Operation: Life Insurance CEO Of the Company: Deepak Satawalekar CEO and MD-HDFC SL About summer training department of company HDFC possesses a separate but important department for the extension of the number of financial consultants as Channel Development Department (CDD).COMPANY PROFILE Company Name: Indian Partner: Foreign Partner: Equity Ratio: HDFC Standard Life Insurance Co. Activities that are followed by it to search financial consultants are:y y y y Cold Calling Visiting market Placement Consultancies Interacting people personally The purpose of every activity undertaken is to make chain of financial consultants who could sell policies of the company. 12 . HDFC Bank Standard Life (U.

It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2).COMPANY PROFILE Introduction ³Helping Indians experience the joy of home ownership´. Business Objectives 13 . Ltd. UK was founded in 1825 and has experience of over 180 years. India's largest housing finance institution and Standard Life Assurance Company. Background of company HDFC was incorporated in 1977 with the primary objective of meeting a social need . 100 million. HDFC was promoted with an initial share capital of Rs. Standard Life. Europe's largest mutual life company. is a joint venture between HDFC Ltd. HDFC Standard Life Insurance Co.. Companies.that of promoting home ownership by providing long-term finance to households for their housing needs.

c) Transform ideas into viable and creative solutions. 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. Organizational 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. d) Provide consistently high returns to shareholders.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 e) To grow through diversification by leveraging off the existing client base. and to promote home ownership. 14 .

HDFC Founder MAN WITH A MISSION If ever there was a man with a mission it was Hasmukhbhai Parekh. He was a true development banker. the Government of India honoured him with the Padma Bhushan Award. gave birth to the Housing Development Finance Corporation . His vision for mortgage finance for housing. In 1992. long before that.Hirane Patro.it was a trend-setter for housing finance in the whole Asian continent. The firm closed down in the late seventies. There are over 200 published articles by him. He was also a writer in his own right. but. for advice.occupy pride of place in Gujarati literature. The London School of Economics & Political. In 1956 he began his lifelong financial affair with the economic world. he went on to become a towering figure on the Indian financial scene. Hasmukhbhai started his second dynamic life. our Founder and Chairman-Emeritus. 15 . full of incisive comments on finance and economics. He rose to become Chairman and continued so till his retirement in 1972. Born in a traditional banking family in Surat. Parekh started his financial career at Harkisandass Lukhmidass . as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). Gujarat. At the ripe age of 60. guidance and inspiration.a leading stock broking firm. His building up HDFC without any government assistance is itself a brilliant chapter in financial history. even more illustrious than his first. In 1953 he brought out a volume called: The Bombay Money Market. It detailed the intricate working of the Indian money market. Mr. His works in Gujarati . 1994. His wisdom and warmth drew people from all walks of life to him. Hirane Vadhu Patro . who left this earthly abode on November 18.

As we found out nearly three decades ago. . The road to success is a tough and challenging journey in the dark where only obstacles light the path. All you need is the courage to innovate.More about HDFC SLIC . taxation. Our objective. our offerings range from hassle-free home loans and deposit products. However. construction and urban policy & development. stand testimony to our success. designed to deliver increasing value to shareholders. the skill to understand your clientele and the desire to give them your best. from the beginning. policy and control. the solution for success is customer satisfaction. in 1977. Organization & Management HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance. Today. has been to enhance residential housing stock and promote home ownership. We also offer specialized financial services to our customer base through partnerships with some of the best financial institutions worldwide. The board primarily focuses on strategy formulation. Now. nearly three million satisfied customers whose dream we helped realise. 16 . to property related services and a training facility. success on a terrain like this is not without a solution.

Credit Information Bureau (India) Ltd Home Loan Services India Pvt. HDFC Venture Capital Ltd. Ltd. HDFC Developers Ltd.SUBSIDIARY & ASSOCIATE COMPANIES y HDFC Bank y HDFC Mutual Fund y HDFC Standard Life y Intelenet Global Services Ltd. 17 . y HDFC Reality y Other Companies Co-Promoted by HDFC y y y y y y HDFC Trustee Company Ltd. y HDFC Chubb General Insurance Company Ltd. HDFC Ventures Trustee Company Ltd.

achieving transparency and laying a strong foundation for building relationship. and set the standards in the industry. y Integrity establishes the creditability of the person defines the character and empowers one to do justice to the job. 18 . Be just and fair to everyone.´ INTEGRITY What is it? y y y y Honest and Truthful in every action. Transparency Stick to principles irrespective of outcome. offer the best value for money. which mean that we are the most trusted company. Why? y Integrity is the bedrock on which the company and the expectations of the customer and employees are built. the easiest to deal with. y Enables building confidence and trust. y . In short ³The most obvious choice for all. Guiding principle for all walks of life.Vision and Values:Vision Statement ³The most successful and admired life insurance company.

Ensure that customer chooses our company to do business with. Customer interest always supreme. Create an environment of trust and openness. Will contribute retention. Understand customer needs and deliver solution. Customer is the source of revenue for the company. PEOPLE CARE What is it? y y y Genuinely understanding the people we work with. Helping them develop requisite skills to reach their true potential. Why? y y y y y y Reinforce brand loyalty by complete transparency. 19 . Listen actively.CUSTOMER CENTRIC What is it? y y y y Understand his expectation by keeping him as the centre ± point. Customers¶ goodwill alone can bring more business and more customers. y y y Known them on a personal front. Guiding their development trough training and support. Why? y People are the most valuable assets of the company. Customer is the reason for our existence. Respect for the time of others.

Key Strengths Financial expertise As a joint venture of leading financial services groups. TEAM WORK What is it? y y y y Whole team takes the ownership of the deliverables. ³One for all and all for one´. Co-operate and support across departmental boundaries. Why? y y y y y Together Everyone Achieves More :.y y y Motivate individual to give his/ her best. Team work generates synergy and provides a focused approach.TEAM It adds joy at work place. Range of Solutions 20 . Establish a valuable relationship with them to create a joyful orking. Identify strengths and weaknesses accordingly allocate responsibility to achieve common objectives. Job satisfaction. An idea or activity performed in a group has a greater acceptability. Consult all involved. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. understand and arrive at a common objective.

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. we have a varied range of Products that you can choose from to suit all your needs. 4. 59. Keeping this in mind.000 lives year ending March 31. Track Record so far HDFC¶s gross premium income.685 crores. 2.859 crores and new business premium income stood at Rs. 2008 stood at Rs. These will help secure your future as well as the future of your family. The company has covered over 9. which can be easily customized to specific needs.HDFC have a range of individual and group solutions. The various products by HDFC Standard Life include: INDIVIDUAL PRODUCTS: HDFC Standard Life realizes that not everyone has the same kind of needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. 2008. These plans offer valuable peace of mind at a small price Term Assurance Plan y y Loan Cover Term Assurance Plan Investment Plans: 21 . disability or sickness. for the year ending March 31.

HDFC¶s plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses. y Single Premium Whole Life Plan

Pension Plans: HDFC¶s Pension Plans help you secure your financial independence even after retirement.
y y y

Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus

Savings Plans: HDFC¶s 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. y y y y y y Unit Linked Young star Plus Endowment Assurance Plan Unit Linked Endowment Unit Linked Endowment Plus Money Back Plan Children's Plan

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 y y y Group Term Insurance Group Variable Term Insurance Group Unit Linked Plan

y y y

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.


Selecting financial consultants

"HDFC's finest investment is in its Human Resources. It draws its personnel from many disciplines. They are the building blocks on which the company's performance & productivity is based". Mr. H T Parekh Founder-Chairman, HDFC Ltd.

HDFC Standard Life is one of the leading life insurance companies having a track record of declaring bonuses every year since inception. We attribute this success to our people, who are our most important asset. We believe they are a key facet of the company and it is their contribution that has enabled us to achieve our current status. Since they deserve the best, our efforts have been to provide them with the best environment, best culture and best development opportunities possible.

Be HDFC¶s certified financial consultant.

Here¶s is the unique opportunity to put your career path on the fast track. Join HDFC SLIC as a financial consultant and help you analyze yours customerµs financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customer on track.

Along with being a great career move you get associated with HDFC SLIC. India¶s most respected private life insurance company. We at HDFC SLIC also offer you unmatched support with various training programmes to help you excel in your endeavor.

A great career move in every way

Zero investment.


Only 25% of the insurable population in India is insured. 25 .There is no start-up. guidance and support initiatives are as follows:- Basic training and induction Perfects your knowledge about the insurance industry as well as our products. enables you to understand customer needs and provide needbased insurance solutions. those insured need higher insurance cover. Flexible work timings. training is an inherent element of our support system ± at no extra cost ± for our new financial consultants. Disha Training Hones you selling skills. At HDFC STANDARD LIFE. You can work full-time or part-time. depending on your convenience. Some of our training. IRDA Training Prepares you for your career as a financial consultant and enables you to pass the IRDA examination easily. Sunrise industry. Support every step of the way. You have unlimited earning potential. And.

Advanced Training Upgrades your capability and knowledge through sophisticated training programs customized for the changing world of financial products and markets. So every year your income keeps increasing steadily even if you sell the same number of policies. Strong brand name Big budget & Willingness to invest in market. And our commission structure (as per IRDA guidelines) has the ability to give you the maximum benefits for every policy you sell. This ensures that you get a regular income when you associate with us. The more you sell. 26 . Swot Analysis of ³HDFC Standard life insurance´ (HDFC) Strengths y y y Localized branches. Your income is directly proportional to the effort put in by you. Regular income The company pays the commission you earn every 15 days. Endless earning possibilities Decide your own salary amount. Long term earning potential The policies sold by you will give you a renewed income every year. the more you earn.

Relevance of Swot analysis. 27 . y The weakness tells us about the problems confronted by the company and accordingly the future step to be taken to overcome them. Huge resources as compared to those of rivals. HDFC maintains high quality of their products. y Swot analysis projects an idea about the investment area which will yield more profit as well as the risk concerned. attractive & effective campaigning. Threats y y y Loosing market share due to inefficient workforce.y y y y y Highly educated & well-experienced top management. Glamorous. Lack of advertising material in some areas of region. Target consumers increase in remarkable percentage every year. Heavy investment. y The Swot analysis makes us aware of the strengths which will serve as pillar to take strategic decision. Decline in the market reputation due to ineffective & delaying. y High demand of the product Weaknesses y y y More individuality in staff than conformity with the company¶s goal. Wide brand variety to face the competitor¶s variety to face the competitors & to serve the masses. Focusing on bulk orders rather than small ones. Opportunities y y Increase market share by improving services.

This not only means being the largest or the most productive company in the market.COMPANY¶S MISSION: To be the top life insurance company in the Insurance market. but a combination of several things likey y y y y y Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share 28 .

In October 1998. In the total market share. Towards the end of 1999. It enjoys a brand recall rate of 92% and gives credit of its success to the 5 core values- 29 . further strengthening the relationship. In the private market share. (IDFC). 2nd position since last 5 years because of its prolific product range and commanding brand equity. Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. In October 1995 the companies signed a 3 year joint venture agreement.300 well-trained advisors. to enter the Life Insurance market. LIC has reduced its share from 91% to 70%. in January 1995. 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. 925 crores and a team of more than 56.THE PARTNERSHIP: HDFC and Standard Life first came together for a possible joint venture. the joint venture agreement was renewed and additional resource made available. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. It has a highest capital base of Rs. HDFC SLIC has been maintaining its No. This means that private insurance players have got more margins in their hands which have increased from 9% to 30% in last 2years only. Around this time Standard Life purchased a 5% stake in HDFC. MARKET POSITION HDFC Standard Life Insurance Company Ltd. the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level.

y y y y y Integrity Customer Boundary Less Ownership Passion 30 .

It presently transacts individual life insurance businesses. group insurance businesses. social security schemes and pensions. 100hrs training is compulsory for 17 days.) Training activities for agents/advisors: y y y As per IRDA. Only full-time training is given. Training activities for agents/advisors: y y y As per IRDA. Its main asset is its staff strength of 1. the corporation. It pays off about Rs 6. enjoyed a monopoly status and became synonymous with life insurance.24 lakh employees and 2. grants housing loans through its subsidiary. Only classroom training is available.000 crore annually to 5. A monolith then. it has helped establish the National Insurance Academy. (ICICI Prudential advantage: . 100hrs training is compulsory for 17 days.COMPETITOR PROFILING 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.6 million policyholders. 31 .048 branches and over six-lakh agency force. and markets savings and investment products through its mutual fund. At the industry level.Part time option available. Only classroom training is available. along with the Government and the GIC. Only full-time training is given.

. 32 .Commission Structure: Depends on the plan or the product / policy which the advisor sells to the customer. Current agent force Around 30000-35000 agents in Delhi Top 5 USP¶s (Unique Selling Proposition) Of LIC y TRUST (since 1956). Best claim performance in the world by Depth and Maturity claim. Modes & ways through which the company recruits agents: .Carrier agent branch (i) rural carrier agent (ii) Urban carrier agent.Through development officers. ORG marks survey has rated LIC most trusted branch in life insurance y y y y Having a vast network of 2050 branches and nearly 10 lakh agents. Every policy has a commission amount fixed on it as per specifications of IRDA. Variety of plans available to match the customer¶s needs.Through corporate agencies (Bankers and Brokers). . A government-undertaken company ensuring safe and corruption free insurance.

Only fulltime training is given. Varies from product to product.ICICI PRUDENTIAL ICICI PRUDENTIAL  ICICI Limited is a multi-business corporation that has business interests in telecom services. 10% & 15%.Part time option available. Modes & ways through which the company recruits agents: y Reference (only) ICICI PRUDENTIAL recruits agents only on basis of reference. bulk pharmaceuticals. Training activities for agents/advisors: y y y As per IRDA. Top 5 USP¶s (Unique Selling Proposition) Of ICICI PRUDENTIAL: y Training. 100hrs training is compulsory. electronic components and specialty products. Current agent force: Around 2000-3000 in Delhi. Only classroom training is available. 33 . (HDFC Standard Life advantage: .2% Maximum ± 40%. which is compulsory for every agent/advisor so that they work according to the company¶s working style. 7.5%.25%. It is also the service-oriented businesses of healthcare. life insurance and information technology.) Commission Structure: y y Minimum .

y Agent is the power.y y y Emphasizes on whole life products. 34 . and Insurance Regulatory & Development Authority Act. 1938. Believes in healthy competition with other life insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. 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. 1999. 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. Flexibility of the product to adapt to customers changing needs in future. 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. 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.

´ 35 . promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.MISSION-IRDA ³To protect the interests of the policyholders. to regulate.

accidents and even fatalities. Insurance promises to pay an assured sum to the owner to reduce the losses. if asset gets damaged the benefits of it do not go futile. he is deprived of the benefits if any substitute of it is not available. a person gets lost his car in an accident.failing health. In such cases. house rent. provision costs for instance as well as long-term needs that involve family's set standard of living and their future such as higher education and marriages. one must consider his family's recurring needs like medical expenses. insurance is the key to protect the person from the losses incurred and reduce its ill effects. When planning ones life insurance portfolio. 36 . Its life to provide benefits is restricted to a short span and when this span finishes. Throughout our living existence. financial losses. its capability to give benefits also ends. we are faced by numerous risks . The owner is aware of this fact. Whatever kind of asset a person posses. remains productive for a certain period of time. he arranges a substitute of it so that in case. life insurance is nothing but a contract where the insured party or the purchaser of insurance pays a premium that protects him against specific losses. For instance.Insurance Basically. Insurance addresses all these uncertainties on financial terms.

May be later. It may not be an attractive investment option. and our lifestyle will be taken care of easily. In fact his higher education too will be provided for. Insurance gives us a life long benefit and the returns will definitely come but only when we need it the most i. Most important of all it provides us with that unique sense of security that no other form of investment provides. 37 . But weigh the pros and cons and consider how much more it offers at a small price. Insurance is not about how much more it can offer us when the stock market is at its peak. 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 at the moment. Besides buying insurance early in life is one of the wise decisions we could take. If the earning member of the family is no more our child's educational needs will not suffer. Life Insurance will take care of that typical once-in-a-life-time spending on marriages. Well we could be wrong. taxes. And we can relax and spend our old age in comfort and peace.e. We need not spend sleepless nights thinking about how to save for our child's marriage. We need not worry about our retirement years. Because the premium we would be paying would be comparatively lower. Insurance provides for our career goals right from your childhood years. Buying Insurance cannot be compared with any other form of investment. Besides it provides for additional benefits such as bonuses. It gives us a sense of financial support especially during that time of crisis irrespective of the fluctuations in the stock market.Why Life Insurance? We think twice before taking the plunge into buying insurance. at the right time. An accident or a disability may be devastating but an insurance policy can be of utmost support for the family during such times too. The rising prices.

Considering the benefits it offers one cannot but give a thought to buying an insurance policy at the earliest.Life insurance today plays a major role in ones life at various stages. 38 .

Excellent customer service 6.) taking part in the canopy activity conducted by the company for the extension of chain of insurance advisors. It included the use of different kinds of strategies to convince the persons to join the company. Activities were a. in this I used to call people on the data provided by my SDM and telling them the benefits of being a financial advisor. High quality Management Support 4 Superior Products 5. discussion of the current reputation of HDFC as a brand and the reasons for joining HDFC only. Strong reputation 3. c.Chapter-4 REVIEW OF LITERATURE My Contribution in HDFC SLIC as a project trainee The task of mine was to make a chain of quality insurance advisors for the company to enhance its marketing channel. High quality Management Support 39 . I used to tell them from the side of company that- We are partners in your growth and provides you1.) cold calling.) meeting people face to face and convincing them to be a financial consultant. Attractive payments and benefits 2. For convincing the person I had to provide him the detailed information of the benefits of becoming an insurance advisor. b.

4. arranging medical examination. Earn commission. 6.After giving all this 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. Role of an insurance advisor Advisor provides ongoing financial advice to his /her client/prospect. It was very much difficult for me to make them ready to give their attention towards my business proposal. collecting proofs (of age/income). 3. including filling up forms. Flexible career. Advisor studies the prospects needs and persuade them to buy a policy. No upper limits on earnings. bonus and incentives. After having sold a new insurance policy. Completes all formalities for proposal of new insurance. In official term prospect is a person who can buy life insurance. the advisor has to ensure that the policy continues without a lapse till it becomes a claim. 5. Work from his/her (advisor) own office or residence. 2. For that reason an advisor has to do the following:- 40 . 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. reports and information required by the underwriter. Work full time or part time. To be part of a world-class sales team. If the person used to give their consent to be a financial consultant then asking them to complete required formalities by bringing needed documents. collecting premium.

Flexible working environment. 3. 5.Every year company declares bonus in favor of financial advisors depending upon the company¶s over all profit. 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. Renewal Commission:. Opportunities in front of a financial consultant 1. Incentives:. the recruitment and development of an insurance advisor needs a great attention. They are regarded as an ambassador of the company and considered as a biggest strength of the company. 4. 3. Unlimited earning potential.Different products will have different commission structures. 2. No start up capital is required to becoming an advisor. An insurance advisor acts as a link between the clients and the company. 41 . saleswoman. So. Assist in collecting claim amounts. To be his/her own boss. if necessary.5% to 40%.It is paid at the following rates: 2nd yr: onwards. 2. This commission varies between 7.1. Bonus: . Ensure that nominations are made or changed.Financial advisors are provided incentives when they achieve certain targets. Keep in touch with the policy holder to make sure that renewal premiums are paid in time. To be part of world class team Benefits of being a financial advisor- Commission:.

Company rates for financial consultants Basic 1st year commission for conventional plans (for policies issued prior to 21st march 2007) Firs year commission for conventional plans (for policies issued on or after 21st march 2007) Name of the plan Premium paying term of 15 Premium paying term of years & above Endowment assurance plan Money back plan Children¶s plan Term assurance plan 25% 25% 25% 20% less than 15 years 20% 20% 20% 15% 15% Loan cover term assurance 20% plan Personal pension plan 7. 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% 42 .5% First year premium conventional policies issued on or after 21st march 2007.5% 7.

Basic commission payable on single premium conventional policies: Name of the plan Basic commission as a percentage of single premium received Single premium whole of LIC Term assurance plan Loan cover term assurance plan Personal pension plan 2% 2% 2% 2% 43 .

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.) Collection of data 5.) Conclusion Research Objective To make a chain of financial advisors so that they can work as insurance advisor for the HDFC Standard Life Insurance Limited.) Identification of problem 2.) Choosing the method to solve the problem 4.) Analysis of problem 3. Certain steps are :- 1.Chapter-5 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.) Analysis of data 6. Data Collection 44 .

Biasness of the respondents. 3. etc. Research Instrument: Questionnaire The questionnaire was formulated by keep in mind the following Points: y y y y Giving the respondents clear comprehension of the question. Giving instructions as to what is wanted. Less number of respondents. markets. Simple Random Sampling.100 people Method of collection: Field procedure for gathering primary data included interview schedule in which the questionnaires were filed by the interviewer. which included. Identifying the needs to be known. Limitations: The following were the limitations that were there during the course of the study: 1. 45 . cold calling. Primary data  Secondary data PRIMARY DATA Sample unit: The research process was done by interacting with number of customers during the activities performed. 2. Limited time period. Sample Design consists of Sample size: . canopies. Inducing the respondents to co-operate.

SECONDARY DATA Method of collection data:Secondary data was collected from the various second hand data collection sources like. Companies annual report etc.google.com (Internet search engines) And the data provided by the external guide. Sources of secondary data:- Magazines. 46 . Secondary data was also provided by company executives. Newspapers. www. magazines provided by HDFC Standard Life Insurance Company. from Internet.

It has been shown with the help of following graphical presentation. 47 .Chapter-6 Data analysis and Interpretation Data Analysis is done by taking sample size of 100 respondents who were approached for being financial advisor for the company.

Interpretation:25% people are in govt. of Married Yes No people 65 35 % 65 35 Error! Reference source not found.1. Interpretation:- 48 . 2. 20% people are engaged in other kinds of jobs. Private Student Other Total No. job. of people 25 30 25 20 100 % 25 30 25 20 Error! Reference source not found. Marital status No. 30% people are in private job. Occupation Occupation Govt. The percentage of students is 25%.

Interpretation. Pan Card Holders Pan Card Yes No No. 40% people do not possess pan card.The percentage of pan card holders is 60%. 49 .35% people are married. 65% people are not married. 3. of persons 60 40 % 60 40 Error! Reference source not found.

of respondents 48% 30% 22% Error! Reference source not found. Interpretation.4. Job satisfaction Job satisfaction yes No % 55% 45% 50 .>2 lakhs 2 to 4 lakhs < 4 lakhs No.between 2 to 4 lakhs are 30% and more than 4 lakhs are 22%. 5. Household income Household income .The persons having annual household income less than 2 lakhs are 48% .

People known by respondents No. of people known by respondents 0 to 40 10% 40 to 80 27% Above 80 63% Interpretation:- 51 . Interpretation. 6.Among all respondents 55% persons are satisfied with their current job while rest 45% are not.Error! Reference source not found.

of respondents 88 12 % 88 12 52 . 27% says that they know 40 to 80 persons and 63 % are familiar with more than 80 persons. 10% people know persons between0 to 40. If offered a chance to earn extra income Chance to earn extra income Yes No No. 7.Out of 100 people.

then how much? Income > 50. of people 45 36 19 % 45 36 19 53 .Chance to earn extra income 12% Yes No 88% Interpretation:88% respondents would like to earn extra while rest 12 % were not bothered to earn extra income.If agrees to earn extra.000 to 2lakhs < 2 lakhs No.000 50. 8.

No.000 to 2 lakhs < 2 lakhs Interpretation:The percentage of people is 45. 36% people would like to earn between 50. of respondents 36 % 36 54 . of people to earn within the given range 19% 19% 45% 36% 36% 45% > 50. those who would like to earn more than 50.0000.000 to 2 lakhs and the intensity to earn more than 2 lakhs is possessed by 19 % people. Time devoted for extra income Time devoted to earn extra income < 4 hours No.000 50. 8.

of rspondents . Chapter-7 FINDINGS 55 ¢ ¡  ¡  ¡  12 12 urs ¡ 52 52 urs 36 36 urs 0 20 40 60 80 100 120 No.2 to 4 hours > 2 hours 52 12 52 12 >2 2t 4 <4 Interpretation: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%.

y Only 25% of the insurable population in India is insured. they still believe that LIC is the most reliable one. those insured need higher insurance cover. y The craze for becoming an agent has gone down because of the so many insurance companies in the market and all of them aiming to increase their agents. HFDC SLIC :- y The company is too much flexible in considering the qualifying score of its candidates who they select to become financial consultants. y If offered 88% respondents would like to earn extra while rest 12 % were not bothered to earn extra income. y Rural people are not fully aware of the commission of the agents. And. 56 .INSURANCE SECTOR:- y Generally people are not interested in joining the insurance sector y People are still unaware of the benefits of the private insurance sectors.

then also company is growing their as their EPI is good enough to cover up their losses in channel development. y Though the input output ratio of the company in terms of becoming consultants for the company is low. 57 . y HDFC¶s ratio of the candidates becoming a consultant and getting licensed is just 25% which is low in comparison of the other insurance companies.y The fee charged by the company for financial consultant is a bit high in comparison to the other insurance companies.

y All the work was limited in some limited areas of Gurgaon so the findings should not be generalized. 58 . money was not given it was difficult to continue the project work. y As stipend.Chapter-8 Limitation of project y It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days.

R average fixed salary is 2500/-3500/ But from this kind of job profile if person is eligible then he/she can earn at least 5000.' on words. There is a high need for education and awareness of the benefits that insurance policies provide.Chapter-9 Suggestions Try to make them aware as much as possible regarding product profile which is best in the market like life time. And it is useful in case of tax saving. y Convince them by saying that we also have an evening class or on line training program so that. y I observed that people in general have the perception that insurance is only for upper class people. 59 . y If the person will make one policy he/she will be able to earn that much of money by means of commission. People should be made realize that it is a great way of saving for the future too. y In N. that person can easily afford this time. life time pension and smart kids.C.

y Magazines: Business Today Insurance World Money y Books: Marketing Management (Philip Kotler) Research Methodology.KOTHARI) 60 .R. y Internet Sites: www.com www.com y News paper: The Economic Times Times of India Business standard.hdfcslic.hometrade.indiahousing.com www. (C.BIBLOGRAPHY The various source from where I collected data¶s are as follows.

__________________________________________ __________________________________________ Contact No.Mobile ________________________ Land line ______________________ Pan card- Yes NO 1) Currently working with which company.Questionnaire HDFC Standard Life Insurance Name______________________________________ Qualification- ________________________________ Occupation- Govt. Pvt.__________________________ 2) House hold income. Student other Married- Yes No Address. .___________________________________________ 3) Are you satisfied with present job- Yes No 61 .

4) Number of people known by you- a) 0-40 b) 40-80 c) Above 80 5) Given a. would you like to make extra income- Yes 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 ______________________________________________________________________________ 62 . chance.

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