You are on page 1of 137

A REPORT ON

PERCEPTION OF SALARIED PEOPLE TOWARDS PENSION PLANS

SUBMITTED BY
MILAN H. RAJYAGURU (MBA Sem-III)

Guided by
PROF. VIJAY VYAS

ACADEMIC YEAR
2005-2006

SUBMITTED TO
JAYSUKHLAL VADHAR INSTUTUTE OF MANAGEMENT STUDIES (JVIMS) BIPIN T. VADHAR COLLEGE OF MANAGEMENT JAMNAGAR

AFFILIATED TO
SAURASHTRA UNIVERSITY RAJKOT
1 JVIMS

CERTIFICATE
This is to certify that Mr.________________________________________ has completed his project study as a partial fulfillment of MBA program satisfactorily. The student has shown immense interest in the subject and the study was carried out with total devotion.

___________________ Project Guide PROF. VIJAY VYAS Mr. Vijay H. Vyas (Dy. Director)

2

JVIMS

CERTIFICATE

This is to certify that Mr. / _____________________________________, MBA- Program 2004-2006, student of JVIMS from Jamnagar has successfully completed his/her Project from (date to be Inserted) During his/her tenure of two months project at our organization he/she was found to be sincere, enthusiastic, hard working, and very much dedicated to his/her work. We wish him/her all the best in his/her future endeavors.

(Sign of person under whom you have worked)

(Note: - This certificate is indicative only, and is to be obtained from the company on their letterhead)

3

JVIMS

DECLARATION
I undersigned Milan H. rajyaguru a student of MBA 3rd semester declare that I have prepared this project report on PERCEPTION OF ORGANISATIONAL STUDY OF HDFC Standard Life Insurance Company (SLIC) under Mr. MILAP AMBAVI and by Prof. Vijay Vyas of JVIMS.

I also declare that this project report is my own preparation and not copied from anywhere else.

(Signature) ___________ Student's Name: MILAN H. RAJYAGURU Roll No.: 43 (Note: - This declaration is to be signed by student)

4

JVIMS

ACKNOWLEDGEMENT

To dear God, whose external blessings and divine presence helps us to fulfill all our goals. When emotions are profound words sometimes are not sufficient to express our thanks and gratitude. With this few words, I am trying to express my extreme gratitude and sincere thanks to all those people who have helped and provided the very much needed enthusiasm and consistent encouragement required to convert this idea in my dream into project. I will always remain grateful and obliged to Prof. Vijay Vyas –JVIMS, Jamnagar for his never ending inspiration, meticulous guidance, I would also like to express my gratitude to Mr. MILAP AMBAVI (Sales Development Manager) for his practical guidance and consistent support in making this project. The last but not least I gratefully acknowledge all my friends and relatives for their physical presence and sentimental support.

MILAN H. RAJYAGURU

5

JVIMS

CONTENTS
Table no. 1 Sr. 1 2 Particulars Executive Summary Introduction (a) Company Details (b) Industry Details (c) Competitors details (d) Regulatory Environment details Organizational Study a) Marketing Department study b) Operations Department Study c) Financial Department Study d) Human Resource Department Study Research a) Research Objectives b) Research Methodology 1) Research Design 2) Unit of Analysis 3) Sampling Design 4) Data Collection Methods) 5) Data Analysis c) Data Analysis & Findings d) Conclusions e) Limitations of the Study f) Recommendations g) Appendixes: (1) Questionnaire (2) Forms (3) List of Graphs (4) List of Tables (5) Glossary Bibliography Page 7 2 17 21 34 35 62 64 73 78

3

4

80 90 91 92

5

105

6

JVIMS

EXECUTIVE SUMMARY
I have taken training in Baroda dairy. As per my view it is working superbly. I have gone deep in the study of the organization; every department of the company is working very effectively. Baroda dairy is having financial background from Nation anal Dairy development board. The bank gives totally financial support. Every financial transaction carried out by the effective way so company does not face any problem related with the finance. Marketing department is now in a progress some advertisement also released recently before that this type of activity was not carried out. Operation department and HR department both are working effectively. Human Resource is taken care most in the organization.

7

JVIMS

Definition Of Life Insurance

According to the US Life Office Management Association Incorporation (LOMA), life insurance is defined as follows: “Life insurance provides a sum of money if the person who is insured dies whilst the policy is in effect.” In other words, surely this is far too brief an explanation for a financial service that provides a very sophisticated range of savings and investment products, as well as mere compensation for death. Other Definitions: “Life insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.” John Magee

“Life insurance accumulated contributions of all parties participating in the scheme.” D.S.Hansell

“Life insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.” Justice Tindall

8

JVIMS

A) COMPANY DETAILS
HDFC STANDARD LIFE INSURANCE 2. INCORPORA TION OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED 3. HDFC STANDARD LIFE TO BE FIRST LIFE INSURANCE COMPANY IN PRIVATE SECTOR HDFC STANDARD LIFE INSURANCE COMPANY LIMITED COLLOBORATION OF HDFC AND STANDARD LIFE MISSION OF HDFC STANDARD LIFE INSURANCE VALUES OF HDFC STANDARD LIFE INSURANCE HDFC STANDARD LIFE DECLARES RESULTS FOR FY 2004-05 NATIONAL LEVEL HIERARCHY BRANCH LEVEL HIERARCHY SWOT ANALYSIS FUTURE PLAN

9

JVIMS

1) HDFC STANDARD LIFE INSURANCE:

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. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. 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. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

10

JVIMS

2) INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED:

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Our ambition from as far back as October 1995 was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured.

11

JVIMS

3) HDFC STANDARD LIFE TO BE THE FIRST LIFE INSURANCE COMPANY IN PRIVATE SECTOR Our Economic Bureau New Delhi, Oct 23: The Housing Development Finance Corporation has received a new lease of life. The Insurance Regulatory and Development Authority (IRDA) has granted registration to HDFC Standard Life Insurance, as the first private sector life insurance company in India. Reliance Fire and General Insurance and Royal Sundaram Alliance Insurance have been given certificates of registration for underwriting non-life insurance business in the country. The IRDA board, which met here on Monday under the chairmanship of NI Rangachari, has decided to grant licenses to these three companies under Sec 3 of the Insurance Act 1938. The IRDA board also considered the applications of ICICI Prudential Life Insurance Company, Iffco Tokyo Marine Insurance and Max India New York Life Insurance and decided to grant in-principle registration to these companies. However, these three will be required to furnish more details about their respective financial strengths and business plans to the IRDA before getting registration. Talking to The Financial Express, HDFC chairman Deepak Parekh said the joint venture would have a total equity of Rs 168 crore. HDFC would hold 81.4 per cent of the equity and foreign partner Standard Life would contribute the remaining 18.6 per cent. The HDFC Standard Life proposes to go in for what is described as a "soft launch" in December 2000 and officially open the business in January 2001 with offices in 12 cities.

12

JVIMS

Expressing delight at being awarded an operating license, Royal Sundaram Alliance Insurance chairman GK Raman said: "We will serve the Indian consumers with a portfolio of insurance products suited to their interests. Service and customization will be the defining features of our new venture." Mr. Micky Brigg, managing director of the joint venture company, said: "India is a high priority on Royal Sun Alliance Group's strategic business map. We will support the Indian venture with world-class underwriting, risk management and claim-handling techniques."

13

JVIMS

4) HDFC STANDARD LIFE INSURANCE COMPANY

HDFC Standard Life Insurance Company Limited is the First Private Sector Life Insurance Company to be granted a license by the IRDA. As a part of the ongoing liberalization of the Insurance Sector, the Insurance Regulatory and Development Authority (IRDA) has granted the first set of licenses on 23rd Oct 00. The Company is a joint venture with Standard Life, UK. Founded in 1825, Standard Life has been at the forefront of the UK insurance industry for 175 years by combining sound financial judgment with integrity and reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs.5, 50,000 crore. Standard Life is one of the insurance companies in the world to have received 'AAA' rating from two of the leading international credit rating agencies, Moody's and Standard & Poor's. The Independent Brokers called IFAs recently voted ‘Company of the Decade’ standard Life in U.K.

Number of branches: United kingdom Canada Ireland Spain Germany Austria Hong Kong China 31 branches 11 branches 7 branches 31 branches 1 branches 2 sales office 3 representative office 2 representative office

14

JVIMS

5) COLLOBORATION DETAIL

HDFC SLIC is a joint venture between Housing development Finance Corporation limited, India and standard life assurance Company, UK. In 1995, HDFC LIMITED and standard life assurance Company entered into a joint venture relationship. Values were shared, beliefs merged through the hurdle-race of time, and the two partners stood by each other. And emerged at the forefront. On 23rd October 2000, HDFC SLIC limited was the first private life insurance company to be granted the certificate of registration by the IRDA. HDFC and standard life are companies with tremendous financial strength as endorsed by credit rating agencies. Both enjoy an excellent reputation in terms of goodwill and efficient customer service.

Certificate of registration Discussion started with SL Joint venture agreement between HDFC and SL Company officially incorporated Share of HDFC in equity Share of SL in equity First policy

: : : : : : :

23rd October 2000 by IRDA 1995, January 1995, October 14th August 2000 81.4% 18.6% 2000, DecemberHDFC

15

JVIMS

6) MISSION OF HDFC STANDARD LIFE INSURANCE:

We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market; rather it is a combination of several things like      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

16

JVIMS

7)VALUES OF HDFC STANDARD LIFE INSURANCE:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products. TRUST: We appreciate the trust placed by our policyholders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs.

Our mission is to be the best new life insurance company in India and these are the values that will guide us in this.

17

JVIMS

8) HDFC STANDARD LIFE DECLARES RESULTS FOR FY 2004-05 Premium Income grows by 132% HDFC Standard Life Insurance Company Limited declared its annual results for the financial year ending March 31st, 2005. The company generated New Business Premium Income of Rs. 486 Crore in 2004-05 registering a yearon-year growth of 132%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments. Mr. Deepak Satwalekar, Managing Director & CEO, and HDFC Standard Life attributed this growth to the quality of life insurance solutions offered by the company. Speaking on the occasion he said, "We are equipped to offer some of the best solutions to our customers given our wide range of products and the quality of advice offered by our Financial Consultants and Corporate Consultants. Training was one of the biggest initiatives we had undertaken last year. Clearly, this initiative has started giving us good results."

Highlights of Financial Year 2004-05  03-04.  Alternate Channels including bancassurance have recorded an New Business Premium Income up by 132% to Rs. 486 Crores.

Total Premium Income of Rs.687 Crores as against Rs. 298 Crores in FY

impressive growth of over 400% to contribute 37% to the Effective Premium Income (EPI).    Group business increased to Rs. 32 Crores on EPI basis. The average premium doubled to Rs 17,000 Company products and services available in 444 locations across

the country. 18 JVIMS

Over 220% increase in MDRT numbers over the previous year.

HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally accepted indicator of an insurance company's performance. While the company recorded New Business Premium Income of Rs. 486 Crores, the EPI figure was lower at Rs. 436 Crores. The total premium income (including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. High levels of persistency have resulted in a higher level of renewal premiums. High persistency is an important contributor to future profitability. The cumulative sum assured for all policies issued up to March 31, 2005 crossed Rs. 30,000 Crores. In the first full year of offering unit linked products, the structured sales process adopted by the company has paid rich dividends. HDFC Standard Life offers, both, life insurance policies as well as pension products on a unit linked platform. Unit linked products accounted for over 50% of the new business premium. Given the nature of the unit linked product, the company provided specialized training to a limited number of its Financial Consultants who were then tested for their understanding of the products and separately licensed. HDFC Standard Life is unique in stipulating this requirement for its sales force. The company's national relationships with HDFC Limited, HDFC Bank, Union Bank of India, Indian Bank and Saraswat Bank have also helped it reach out to a larger number of customers across the country. The alternate channel business grew by over 400% to contribute 37% of the premium income. The company plans to further strengthen these relationships through the introduction of products specially designed for this channel. HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company doubled the number of offices to 104 across the country. Through these offices, the company today services customer needs 19 JVIMS

in over 440 towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005. There has been a huge jump, of over 220%, in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT). From 38 members as on 31st December 2003, the number has increased to 124 members as on 31st December 2004. During the year, the company expanded its portfolio of products by launching plans to cover Superannuating and Leave Encashment needs, thereby offering a wide range of employee benefit solutions to its corporate clients. Consequently, HDFC Standard Life's Group Business saw a huge growth over the previous financial year. The New Business Premium grew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of over Rs.10,000 Crores. Given its parentage and its financial expertise, the company is confident of offering good long-term returns to its policyholders. Speaking on this Mr. Satwalekar said, "Our investment philosophy and cost consciousness together will help us in providing good long term growth to policyholders on their investments with us. This is evident in the performance of our equity based unit linked funds which have outperformed most indices over the last one year".

20

JVIMS

9) NATIONAL LEVEL HIERARCHY OF THE ORGANIZATION

Managing director

General Manager Sales & customer services _______________________________________

Head of Retail sales

group sales

central distribution

Branch manager

sales remuneration Contract licenser

__________________________________

Representative office Resident manager

BDM Team of FC

corporate agent

sales training

Sales management Information

21

JVIMS

10) BRANCH HIERARCHY

REGIONAL MANAGER

ASSISTANT SALES MANAGER

BUSINESS DEVELOPMENT MANAGER

SALES DEVELOPMENT MANAGER

FINANCIAL CONSULTANT

22

JVIMS

11) SWOT ANALYSIS  SRENGTH  HDFC Standard LIFE insurance Company (HDFC SLIC) is having a good market reputation  HDFC SLIC believe to do business by the ethical way  Service of the HDFC SLIC is excellent.  Stable and experienced management  HDFC SLIC’S main strength is depending upon financial consultant.  Asset base of Rs. 27,000 crores which indicates high financial strength  Strength of foreign partner which has total asset of Rs. 5, 81,000 crores  Deposits and bonds are ‘AAA” rated by Standard and Poor’s, FAAA and MAAA by CRISIL and ICRA.

 WEAKNESS  Need identification of the customer took a back seat and this, in turn, is largely responsible for the high lapsation ratio.  One issue that is being hotly debated presently is whether we should go for total detarrification or not.  The tendency not to Share information or data’s to other insurers in one company as data plays major role in the insurance business.  HDFC SLIC have been spending very less in advertising. Recently they have released advertisements but still it is not enough.  HDFC SLIC does not have enough branches in rural market. Large part of rural market is untouched. 23 JVIMS

OPPORTUNITY

 HDFC SLIC can open branches in the small cities also.  HDFC SLIC can expand more and more branches in the rural sector.  HDFC SLIC has been doing business since last five years still they have so many opportunities to expand business.  There is a golden opportunity for the HDFC SLIC if it uses its brand name effectively and advertises it effectively.  Opportunity to capture more market share if it increases its strength of financial consultant.

 THREAT  From the other private players.  Large distribution network of LIC  Decades of experience and brand name of LIC  12 % service tax on investment

24

JVIMS

12) FUTURE PLAN HDFC Standard Life Insurance has been doing business since last five years because before that any private companies were not allowed to do business of insurance. Company has been continuously trying to increase workforce and number of branches. Company has doubled number of branches it is about 104 in the country and also increased number of financial consultants it is about 23000 in 2005 compare to 17000 in 2004. Future plan of the company is still to increase workforce and number of branches in all over India. Today company provides services in about 440 towns. For future company has plan  To increase more products in its portfolio  To increase more benefits for its financial consultants and customers  To capture more market

25

JVIMS

BOARD OF DIRECTORS HDFC standard life insurance company limited Chairman Directors Mr. Deepak Parekh Mr. I.c. lumsden Mr. K.m.mistry Mr. A.m.crombie Mr. M.r.pai Mr. A.R. Forbes Mr. P.d.robertson Alternate to Mr. I.c. lumsden Mr. P.d.inman Alternate to Mr. A.m. crombie Managing director and CEO Author’s Mr. D.m.satwalekar Mr. S.b.billimoria and company Chartered accountants Mr. B.k kher & company Chartered accountants Bankers Registered office HDFC bank ltd. Ramon house, H.t.parekh marg, 169, Back Bay Reciamation, Church gate Mumbai 400 020

26

JVIMS

Corporate office

The IL&FS financial centre 5th floor, plot no. c-22, g block Bandra kurla complex, Bandra (e), Mumbai 400 051. Tele no. 2653 3666 Fax. 22-2653 3655

E-mail Internet

response@hdfcinsurance.com www Hdfcinsurance.com

27

JVIMS

(B) INDUSTRY PROFILE
Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There are many issues, which require study. The scope of the study of insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners. Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency. There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers’ regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry. Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is insurance? How the word ‘insurance’ is different from the word ‘assurance’? etc.

28

JVIMS

History of Insurance
 The roots of insurance might be traced to Babylonian and that is only for goods.  In the middle of 14th century as evidenced by earliest known insurance contract, marine insurance was practically universal among maritime nations of Europe.  By the end of the 18th century, Lloyd’s coffeehouse, in London, had progressed into one of the first modern insurance companies.  Insurance developed rapidly with the growth of British commerce in the 17th and 18th century.  After 1840, with the decline of religious prejudice against the practice, life insurance entered a boom period. In the 1830s the practice of classifying risk began.  The workman’s compensation act of 1897 in Britain requires employers to insure their employees against industrial accidents.

29

JVIMS

Time line in insurance history Major Landmarks
 1818 British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta.  1850 Non life insurance started with Triton Insurance Company.  1870 Bombay Mutual Life Assurance Society is the first India Owned life insurer.  1912 The Indian Life Assurance Company Act enacted to regulate the Life Insurance Business.  1938 The Insurance Act was enacted. Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies.  1972 Non-life business nationalized, General Insurance Corporation (GIC) came into being.  1993 Malhotra committee was constituted under the Chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms.  1994 Malhotra committee recommended reentry of private Players.  1997 IRDA (Insurance Regulatory and Development 30 JVIMS

Authority) was set up Market in India.

as a regulator of the insurance.

 2000 IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell Insurance Policies.  2001 Royal Sundaram was the first non-life private player to Sell an insurance policy.  2002 Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

31

JVIMS

(C) COMPETITORS DETAIL

At present there are total 14 players in Indian life insurance sector. There is only one player in the government sector and it is the Life Insurance Corporation of India. Rest of the players is in the private. Now let’s look at these players and their market share TABLE NO.2 No. Name of the Company Market Share in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Life Insurance Corporation (PSU) ICICI Prudential Life Insurance Company Birla Sunlife Insurance Company Bajaj Allianz Life Insurance Company SBI Life Insurance Company HDFC Standard Life Insurance Company Tata AIG Max New York Life Insurance Company Aviva Kotak Mahindra Life Insurance Company ING Vysya AMP Sanmar Met Life Insurance Compnay Guardian Life Insurance Co Ltd. % 82.30 5.63 2.56 2.03 1.80 1.36 1.29 0.90 0,79 0.51 0.37 0.26 0.21

Now let’s depict the market share of these players on diagram

Table -1: insurers as on 31-3-2003 Company Foreign Major 32 local Business of local JVIMS

Allianz Bajaj life Birla sun life Dabur CGU

shareholder Allianz Sun life of Canada CGNU

shareholder shareholder Bajaj Auto Auto manufacturer Birla global Diversified finance Dabur conglomerate Medical consumer products Investment finance Investment finance Bank & investors Diversified &

HDFC life ICICI

standard Standard life Prudential Prudential(UK) ING

HDFC ICICI Vysya bank Max India

& & other

life ING Vysya life Max New

York New York Life MetLife

Life MetLife India

conglomerate Jammu & Kashmir Bank & diversified bank: Pallonji conglomerate Investment finance Bank Diversified cong. & group Kotak Mahindra

OM

Kotak Old Mutual

Mahindra SBI Life Cardiff SBI TATA-AIG Life AIG TATA Source: The Hindu survey of the Indian industry, 2003

Graph No.1

MARKET SHARE OF THE COMPETITORS

33

JVIMS

Market Share

LIC ICICI P rudential Life Insurance Company Birla Sunlife Insurance Company Bajaj Allianz Life Insurance Company SBI Life Insurance Company HDFC Standard Life Insurance Company Tata A IG M ax New York Life Insurance Company Aviva Kotak M ahindra Life Insurance Company ING Vysya AM P Sanmar M et Life Insurance Compnay

Here we can see from the diagram that LIC is the market leader and it commands the major part of the total life insurance market. Its market share was approximately 98% before 2000 but after the entry of private players it has significantly decreased. Among private players ICICI Prudential stands first. It has the market share of approximately 5.7% in the total market and it constitutes 40% of the market share among private players. Birla Sun life Insurance Company comes third. Bajaj Allianz is also one of the fastest growing life insurance companies in India. Rest of the players has market share below 2%.

LIFE INSURANCE CORPORATION 34 JVIMS

The Life Insurance Corporation (LIC) was established about 44 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. LIC has hundred divisional offices and has established extensive training facilities at all levels. At the apex, is the Management Development Institute, seven Zonal Training Centres and 35 Sales Training Centres. 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.

BIRLA SUN LIFE INSURANCE Birla Sun Life Insurance Company Limited, a joint venture between Sun Life Assurance Company of Canada and Aditya Birla Management Corporation Limited, recently completed a successful first year of operations. The company emerged as a strong private sector insurance player in the newly opened insurance market in India with its pioneering efforts in the area of Unit Linked insurance plans. The company sold over 20,000 policies covering more than 33,000 lives in its first year of operations. It achieved an annualised premium income of Rs.350 million with a total sum assured of Rs.16,000 million. The company has more than 2,700 insurance advisors who sell company products across the country. The company offers an array of products in the individual and group life segments. 35 JVIMS

The company established a strong presence in India with 22 branches and two development centres across 17 cities.

ICICI Prudential Life Insurance Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

Bajaj Allianz Life Insurance Company Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto and the German insurer- Allianz. Indian auto major holds 74% while Allainz holds 26% in the Joint Venture, and has an authorized and paid up capital of Rs. 110 crores. Mr. Graham Norris is the CEO of the company.

36

JVIMS

Bajaj Allianz General Insurance will leverage the customer base and expertise of Bajaj Auto Ltd and Allianz AG Incorporated in September 2000, Bajaj Allianz General Insurance received the certificate of registration from Insurance Regulatory and Development Authority in May 2001.

SBI Life Insurance Company SBI Life Insurance Co. Ltd. is a registed Life Insurance Company which has been licenced by Insurance Regulatory and Development Authority of India. It belongs to State Bank of India (SBI) group. State Bank of India has joined hands with Cardif of France to form a Life Insurance Company: SBI - The Largest bank in India Cardif - A wholly owned subsidiary of BNP PARIBAS (one of the top 10 banks in the world), is a leading Insurance Company in France operating in 27 countries all over the world. Tata AIG Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd. (collectively "Tata AIG") are joint venture companies, formed from the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake Tata AIG Life Insurance Company Ltd. provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001. 37 JVIMS

Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups, with various types of add-ons and options available on basic life products to give consumers flexibility and choice The non-life insurance arm, Tata AIG General Insurance Company, which started its operations in India on January 22, 2001 offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines. ING Vysya ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus. Kotak Mahindra Life Insurance Company Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Jeene Ki Azaadi... AMP Sanmar A Joint venture combining AMP's life Insurance expertise and Sanmar's Indian Business Expertise. The Life Insurance joint venture company between AMP of Australia and the Sanmar Group of Chennai will create a better future for you and your family, by helping you build and manage your wealth. 38 JVIMS

AMP Sanmar offers a comprehensive range of life insurance Products that will enhance your savings and provide financial security to people who need your support. AMP is a leading international financial services group with over 150 years with core business in Insurance, Asset Management and Financial Planning. The Sanmar Group is a leading industrial group in South India and one of the top corporations in the country that helped pioneer industrialization in India for over six decades. Both AMP and Sanmar are deeply committed to this Life Insurance joint venture and to create a long-term relationship with the customer Aviva Life Insurance Company India Pvt. Ltd. In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank. Aviva has 34 Branches (including rural branches) in India supporting its distribution network. Through its Branches and its Bancassurance partner locations, Aviva products are available in 165 towns and cities across India. Aviva has also opened four rural branches in Faridkot, Udaipur, Nasik and Nagpur.

Max New York Life Insurance 39 JVIMS

Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-business corporation focusing on life insurance, health care and information technology, and New York Life, a Fortune 100 company with over 150 years of experience in the life insurance business. In 2000, Max New York Life became the first Indo-American insurance joint venture registered and granted a license to conduct business in India. Since that time, Max New York Life has acquired a national presence, establishing a wide distribution network with 35 offices located across 27 cities in India, which are staffed by over 1,500 employees and over 7,700 highly competent life insurance Agent Advisors. In 2003, Max New York Life became the first life insurance company in India to receive the ISO 9001:9002 certification for its commitment to quality. All of Max New York Life’s offices are supported by state-of-the-art technology designed to enhance its goal of providing excellent service to customers. It has also set up a Centre for Operational Excellence at its head office in Gurgaon, Haryana, just outside of New Delhi.

(D) REGULATORY ENVIRONMENT DETAILS
40 JVIMS

REGULATORY FRAMEWORK (INSURANCE ACT & IRDA) Insurance Act, 1938 The Insurance Act was enacted in 1938 with a view to control the insurance market in India. The Insurance Act provides major guidelines to insurance companies to do insurance business. The Insurance Act prescribes rules for Assignment or transfer of policies and nominations, commission and rebates and licensing for agents, amalgamation or transfer of insurance business, setting up of the Tariff Advisory Committee, solvency margins, insurance cooperative societies, reinsurance, registration etc. The Insurance Act, 1938 allows for only Indian Insurance companies registered under the Companies Act, to transact insurance business in India Amendment in 2001 For smooth functioning of the market, certain amendments were made in the Act. The amendments contain entry of insurance co-operative societies, provisions relating to payment of commission and fee for insurance intermediaries, allowing flexibility in the eligibility qualifications for corporate agents., allowing a more flexible mode of payment of premium through credit cards, smart cards, internet, etc.

Insurance Regulatory and Development Authority (IRDA)
41 JVIMS

The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the business of insurance and re-insurance in India. The Authority was constituted on April 19, 2000; vide Government of India’s notification No. 277. The Insurance Regulatory and Development Authority Act, 1999, was enacted by Parliament in the fiftieth year of the Republic of India to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General Insurance Business Act, 1972. IRDA was constituted in terms of the Insurance Regulatory and Development Authority Act, 1999, as the regulator of the Indian Insurance industry. IRDA was setup in 1996 but it was formally constituted as a regulator of the insurance industry in April 2000. The regulator was initially known as the Insurance Regulatory Authority but was subsequently rechristened as Insurance Regulatory and Development Authority as it was provided that it had broader role to perform in the Indian insurance market. It has not only to frame and issue statutory and regulatory stipulations, guidelines, and clarification but it has also to perform a developmental and promotional role. The developmental and promotional role of the regulator include facilitating the growth of the market by attracting large number of players, integrating of the insurance market with the domestic financial services market, and synchronizing the Indian Insurance market with that of global insurance market. Thus, the objectives of IRDA are two fold: policyholder protection and healthy growth of the insurance market. IRDA has till 2001 issued seventeen regulations in the areas of registration of insurers, their conduct of business, solvency margins, conduct of 42 JVIMS

reinsurance business, licensing, and code of conduct intermediaries. It follows the practice of prior consultation and discussion with various interest groups before issuing regulations and guidelines.

Operations of IRDA
1. IRDA has developed its internal parameters to assess the promoters’ credentials. 2. IRDA is the sole authority for awarding licenses. There is no restriction in the number of licenses it can issue, but licenses for life and non-life business are to be issued separately. Licenses are issued only on a national basis. The new players should commence business within 15-18 months of getting the license. 3. All insurance intermediaries, such as agents and corporate agents, have to undergo compulsory training prior to their obtaining a license. IRDA also specified the minimum educational qualifications for these intermediaries. IRDA conducts examinations and then issues licenses to these agents,. IRDA believes that well trained and informed intermediaries can service the consumers better. IRDA insured or renewed. 1, 18,154 agents licenses by the end of March 2001. 4. IRDA has come out with the Insurance Advertisement and Disclosure Regulations to ensure that the insurance companies adhere to fair trade practices and transparent disclosure norms while addressing the policyholders or the prospects.

Potentiality in the Insurance Sector.
43 JVIMS

Scope of Insurance Business in India
The Malhotra Committee estimated that the insurance penetration in India is to the extent of about 25% of the insurable population. As of 19992000, LIC’s Insurance Premium Income was approximately Rs. 32,000/- carores. It is observed that currently LIC has about 10 Crore policies in force, which contributed a premium of about 6% of the GDS (Gross Domestic Savings) of household in India. Based on a report by the Confederation of Indian Industries (CII), it is anticipated that this figure of 10 carore policies in force is likely to double in the next decade. By the year 2010, the premium income is expected to account for 18% of the GDS, amounting to Rs. 5,12,000 carore.

180 160 140 120 100 80 60 40 20 0 Policies in Forces (million)

1999

2002
YEAR

2006

2010

Chart 1-: Number Policies In Forces

International Presence of IRDA
44 JVIMS

IRDA is a member of the International Association of Insurance Supervisors, (IAIS) headquartered at Basel, Switzerland. The IAIS is an organization set up by regulators and supervisors of insurance industry. The aims and objectives of the IAIS are to bring in prudential regulations, to prescribe guidelines for the insurance supervisors to observe the industry, to promote international co-operation and understanding among the supervisors, and to represent before world forums the cause of the insurance industry and the matter of its functioning and regulation. IRDA is a member of the Emerging Markets and Technical Committees. Its Chairman is also a member of the Accounting SubCommittee and the Insurance Frauds Committee, IRDA is putting in efforts to bring the Indian insurance market to international standards in areas of financial viability, competence, technology and prudential regulations.

Table no.3

KEY MARKET INDICATORS Rs. 83,645.11 crore US $2940.67 billion Nominal growth: 11.71 per cent Inflation adjusted: 2.0 per cent Life: 18.91 per cent Non-life : 11.16 per cent None Foreign promoter can hold up to 26 per cent of the equity Composite registration not Available

Life and non-life Market in India Global insurance market (as on 31st December, 2003) Growth in premium underwritten in India and abroad in 2003-04 Geographical restriction for New players Equity restriction Registration restriction

Table no.5

NUMBER OF REGISTERED INSURERS IN INDIA

45

JVIMS

Type of business Total Life Insurance General Insurance Reinsurance 01 Total 29

Public sector 01 06 01 08

Private sector 13 08 0 21 14 14

ORGANIZATION STUDY
46 JVIMS

A) MARKETING DEPARTMENT

B) OPERATIONS DEPARTMENT C) FINANCE DEPARTMENT D) HUMAN RESOURCE DEPARTMENT

A) MARKETING DEPARTMENT STUDY
47 JVIMS

1) Marketing scenario – Segmentation 2) Target Market – Customers profile 3) Positioning strategy 4) Product details & Product Portfolio 5) Channel of Distribution 6) Pricing Policy 7) Promotional Tools employed, etc. 8) Marketing Strategy etc.

INRODUCTION 48 JVIMS

Broadly defined the term ‘Market’ is “whenever and wherever there is a potential demand for the product is known as ‘Market’. The concept of market brings full circle to the concept of marketing. ‘Marketing means working with market actualize potential exchange for the purpose of satisfying human needs and wants”. Marketing has been originated from distribution function, due to the centralized production function. According to the guru of modern marketing concept, Fillip Kotler, “Marketing is a set of human activity directed at facilitating change. Their element must be present to define a marketing situation. Two or more party who are potentially interested in exchange. Each possessing thing or valued to other. Each capable of communication and delivery.” Marketing management looks after the marketing system of the enterprise. So we can say that marketing is the process of discovering and transferring consumers needs and wants into product and service involving purchasing power so as to achieve the profit target as other objective set by the company. In HDFC Standard Life Insurance Company, generally higher expenditure on marketing and advertisement is not made. Aggressive marketing strategy has not been adopted by the company like the some competitors have been.

1) MARKET SCENARIO –SEGMENTATION 49 JVIMS

Market segment is the division of the market into different subjects to customers where any subject may consciously be selected as target market to be reach with different marketing mix. Basically market segment is process of desegregating total market into number of sub markets. In other words market segment means division of total market with view of serving and attaining market. HDFC Standard Life Insurance Company has divided target market into various segments. For example they have different segment for children, youngster, middle-aged people, old age people and so on. They have market segment basis on four types  Age wise: children, middle age, and old age  Gender wise: Male and Female  Income wise: High income, middle income and lower income  Geographical: East, West, North, South

2) TARGET MARKET 50 JVIMS

Targeting means then products which company are producing is for which segment, whether it is for youth, children, middle age, old age. They become your target markets and the process is called targeting. Target market could be any one that depends upon the company that for which segment it is producing the products and the segment becomes its target market. HDFC SLIC has products for all type of people. But as its most selling policy is Personal pension plan, they are trying to target aged/retired people.

3) POSITINING STRATEGY Positioning is most important. First you have to select target segment, once target segment is selected, company should identify positioning concept for that segment. communicated well. HDFC Standard Life Insurance has strong position in the market. Respect your self is the positioning strategy of the company. Selected positioning should be developed and

4) PRODUCT DETAIL AND PRODUCT PORTFOLIO: First we have to understand that what is product planning. A product can be defined as bundle of utilities having tangible or intangible attributes offered with a motive of satisfying customer’s need for an exchange value. Products, which exactly match with need of the wants of customers, can be succeeding in

51

JVIMS

this global market. We should keep in mind that “Great ideas need landing gear as well as wings”. We know that everybody is having his/her own life or we can say that each of us leads a unique life and own needs. HDFC standard life offers a range of products or we can say different products that invite to choose the one that suits best. Following are the individual product.

52

JVIMS

The letters “PIPS” can be used to remember the classification. Let us now look at the features of the various categories of the life insurance plans.

Life insurance products

Protection products 1. Pure life insurance 2. Low premium with high covers 3. No maturity values risks. 4. Cover for income earning capacity. 5. Riders fall in this category.

investment products 1. To be sold to investors 2. The aim is to get long term real growth 3. The risks covered are investment

Pension products 1. Provide income 2. Protection of the income. 3. The risk covered is the risk of living long.

Savings products 1. Helps a person to save for an event. 2. Protection of the savings. 3. The risk covered is the inability to save due to death.

53

JVIMS

The HDFC standard life offer plans in each of the above category. PRODUCTS FOR INDIVIDUAL: 1. Protection products 1.Term assurance 2 Loan cover term assurance plan. 2. Savings plan 1.Endowment assurance plan 2. Money back plans 3. Children’s plan (With profits) 4. Unit linked endowment plan. 3. Investment plans 1.Single premium whole of life plan.

4. Pension plans

1.Personal pension plan (With Profits) 2. Unit linked pension plan.

54

JVIMS

GROUP PRODUCTS: Group term insurance: A group insurance scheme called ‘group term insurance’ is offered by HDFC standard life insurance. The key features of these plans are convenient medical procedures, flexibility for members to join or leave premium options, flexible cover, globally valid, and no limit on the size of the group.

GRATUITY PLAN The HDFC gratuity plan is an insurance policy which offers an employer a new and flexible way to fund his gratuity liability. The contributions that he decides to invest in this policy will assist him in meeting his gratuity obligations in an organized way. LEAVE ENCASHMENT PLAN This plan is a flexible insurance policy which helps employers and leave encashment scheme trustees in funding leave encashment obligations without the employer’s profit and loss account being unexpectedly affected.

DEVELOPMENT ASSURANCE PLAN The development assurance plan is designed for the economically weaker sections of the society to satisfy their needs. It makes available life cover for a period of one year top a specific group, and in case of the death of any member 55 JVIMS

of the group insured during the year of cover, a lump sum amount is paid to that member’s beneficiaries to help meet some of the immediate financial needs following their loss.

ENDOWMENT ASSURANCE PLAN:  It is a participating (with profits) insurance plan that offers the following features: Provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy.  Provides a lump sum payment to the life assured on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions.

This plan is a with profits saving plan and is well suited for saving money for your long-term financial goals. This plan also helps provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the term of the policy.

BENEFITS OF THIS PLAN : You can add the following optional benefits to customise your policy to suit your needs:  Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses (1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Additional Term Benefit (ATB) provides an additional amount equal to the sum assured chosen under this optional benefit, in case of your

56

JVIMS

unfortunate death.  Accidental Death Benefit (ADB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death: - due to an accident, and - within 90 days of the accident..  Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. ELIGIBILITY: Table no.5 Basic Policy Min. age at entry Max. Age at entry Max. Age at expiry Min. term: 10 years 12 60 75 Basic Policy with optional benefits CI ATB ADB WOP 18 18 18 18 55 60 55 50 70 75 65 60 Max. Term: 30 years

UNIT LINKED ENDOWMENT ASSURANCE: The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of additional protection against the six common critical illnesses, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the greater of the value of your units and your selected basic sum assured.

57

JVIMS

INVESTMENT OPTION : The policy is fully unitised with a range of funds to match your needs and approach to risk. (By risk we mean the likely volatility in the value of units in the fund.) Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds: Liquid fund : The Liquid fund invests 100% in bank deposits and high quality short-term money market instruments. The fund is designed to be cash secure and has a very low level of risk; however unit prices may occasionally go down due to the use of short-term money market instruments. Secure Managed : The Secure Managed fund invests 100% in Government Securities and Bonds issued by companies or other bodies with a high credit standing, however a small amount of working capital may be invested in cash to facilitate the day-today running of the fund. This fund has a low level of risk but unit prices may still go up or down. Defensive Managed: 15% to 30% of the Defensive Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a moderate level of risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go up or down.

58

JVIMS

Balanced Managed: 30% to 60% of the Balanced Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the higher proportion it invests in equities. Unit prices may go up or down. Growth fund : The Growth fund invests 100% in high quality Indian equities. In addition a small amount of working capital may be invested in cash to facilitate the day-today running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the investment in equities. Unit prices may go up or down. The past performance of any of the funds is not necessarily an indication of future performance. There are no investment guarantees on the returns of unit linked funds. None of the funds participate in the profits of HDFC Standard Life Insurance Company Limited or any of its policyholder funds. BENEFITS: There are 4 different options available to choose from: Life Option On death within the policy term, the greater of the Sum Assured and the value of the unit-linked fund will be paid to your nominee. On survival to the end of the policy term the value of the unit linked fund will be paid to you. Life and Health Option On death or earlier diagnosis of any one of six common critical illnesses within the policy term, the greater of the Sum Assured and the value of the unitlinked fund will be paid to your nominee.

59

JVIMS

On survival to the end of the policy term the value of the unit-linked fund will be paid to you. The illnesses covered under this option are cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke. Extra Life Option This option pays the same benefits as the Life Option but, should death occur within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid. Extra Life and Health Option This option pays the same benefits as the Life and Health Option but, should death occur within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid.

60

JVIMS

ELIGIBILITY: Table no.6 The age and term limits for taking out a Unit Linked Endowment Plan are: (years) Minimum Maximum Maximum Minimum Maximum Age at Age at Age at Term Term Entry Entry Expiry Life Life and Health Extra Life Extra Life and Health 10 10 10 10 30 30 30 30 18 18 18 18 60 55 55 55 75 65 70 65

: The unit price each day will include a fund management charge. This charge is 0.80% of the fund value per annum taken on a daily basis.

61

JVIMS

CHILDREN'S PLAN: Children’s Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parents unfortunate death during the policy term. Children’s Plan receives simple reversionary bonuses, which are usually added annually. This is a flexible plan with three options for you to choose from, depending on your requirements. The details of these options are explained in the next section.

ELIGIBILITY: Table no. 7 The eligibility ages for the life assured under the plan are as follows: Minimum Age At Entry Maximum Age At Entry Maximum Age At Maturity Minimum Term: 10 years 18 years 60 years 75 years Maximum Term: 25 years

PAYMENT OPTIONS : You have the choice of paying the premium either in yearly, half-yearly or quarterly modes, depending on your convenience.

62

JVIMS

MONEY BACK PLAN : It is a participating (with profits) insurance plan that offers the following features: Payment of cash lump sums, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of the policy. (Please refer to the table given below.) On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid earlier is provided. In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts.

This plan helps you plan for future anticipated expenses by paying periodic cash lump sums to you at regular intervals. This plan also helps provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions in the event of your unfortunate death during the term of the policy. BENEFITS: You can add the following optional benefits to customise your policy to suit your needs: Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses (1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. 63 JVIMS

Additional Term Benefit (ATB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental Death Benefit (ADB) provides an additional amount equal to the basic sum assured in case you die: Due to an accident, and Within 90 days of the accident.

Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. All optional benefits must be selected at the outset of your plan. ELIGIBILITY Table no.8 This plan can be taken on a single life basis or a joint life (first claim) basis. The eligibility ages are as follows: Basic Policy Min. age at entry 12 Max. Age at entry 60 Max. Age at expiry 75 Min. term: 10 years Basic Policy for optional benefits CI ATB ADB WOP 18 18 18 18 55 60 55 50 70 75 65 60 Max. Term: 30 years

64

JVIMS

SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN : Single Premium Whole Of Life Insurance Plan is well suited to meet your long-term investment needs. This participating (with profits) plan offers you the following benefits: A sound investment: Your money will be invested in our With Profits fund. The fund aims to provide secure and stable long-term growth. Normally, we will declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary. In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. You pay a single premium and the policywill pay you a lump sum. Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease. Surrender value: You can terminate the policy any time, after it has been in force for at least 6 months, and receive a surrender value. In case of unfortunate death: Your nominee gets the sum assured secured by your premium, plus any attaching bonuses. No medical requirements : We do not require you to undergo any medical test for this plan. ELIGIBILITY: Table no.9 The eligibility ages are as follows: Minimum age at entry Maximum age at entry : 18 years : 70 years

65

JVIMS

TERM ASSURANCE PLAN : Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. Since this non-participating (without profits) plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

If you have a family that you care for, you should consider what would happen in case of your unfortunate death. The emotional void cannot be filled, but financial insecurity can be avoided. By taking this affordable life insurance plan, you can provide for the well being of your family in case of your unfortunate death. This plan comes to you at a minimal cost and is well suited for the valueconscious customer. BENEFITS: You can add the following optional benefit to customise your policy to suit your needs: 1. Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses (1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. 2. death: - due to an accident, and 3. Within 90 days of the accident. Accidental Death Benefit (ADB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate

Accelerated Sum Assured (ASA) Benefit provides, on diagnosis of any one 66 JVIMS

of the 6 common critical illnesses (1), an amount equal to the basic sum assured on the Term Assurance Plan. As soon as we accept your claim: We pay out the sum assured. Your basic policy immediately terminates without value.

The benefit accelerates or advances the date on which the benefit would be payable. It becomes payable on death or critical illness, whichever occurs earlier. Once a claim has been met, either on death or critical illness, no further benefit is payable on your policy. CI and ASA are not simultaneously available on a single policy. All optional benefits must be selected at the outset of your plan. Since some of the benefits are subject to maximum limits, please contact your Financial Consultant for more details. ELIGIBILITY: Table no.10

Basic Policy Minimum age at entry Maximum age at entry Maximum age at expiry 18 60 65

Policy with any optional benefit 18 55 65

67

JVIMS

Loan Cover Term Assurance Plan : This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. If you are taking a loan to buy a house for your family, this plan can help you ensure that life's uncertainties do not affect their shelter. It is an affordable plan that has been designed to help your family repay the outstanding loan in case of your unfortunate death. ELIGIBILITY: Table no.11

This plan can be taken on a single life basis or a joint life (first claim) basis. The eligibility ages are as follows: Basic Policy Minimum age at entry Maximum age at entry Maximum age at expiry 18 55* 65 Policy with optional benefit 18 55 65

68

JVIMS

Personal Pension Plan: Before you enter into any financial contract, it is important that you understand what the product is, how it works, the risks involved and what a decision to buy could mean for you. We recommend that you read this document before you purchase a policy from HDFC Standard Life Insurance Company. Purpose: The policy is basically a savings contract, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is permitted by the prevailing regulations. Your commitment: You agree to pay a single premium or level premiums with installments due every quarter, half-year or year throughout the deferment period of the policy, after which you will start receiving your pension.

ELIGIBILITY: Table no.12 The age and term limits for taking out a Personal Pension Plan are: Minimum Maximum Minimum Term3 Term Age at Entry RP1 SP2 RP SP RP SP 10 5 40 15 18 35 Maximum Minimum Age at Age at Entry Retirement 60 50 Maximum Age at Retirement 70

69

JVIMS

UNIT LINKED PENSION PLAN : The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000. INVESTMENT OPTIONS : The policy is fully unitised with a range of funds to match your needs and approach to risk. (By risk we mean the likely volatility in the value of units in the fund.) Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds:

Liquid fund : The Liquid fund invests 100% in bank deposits and high quality short-term money market instruments. The fund is designed to be cash secure and has a very low level of risk; however unit prices may occasionally go down due to the use of short-term money market instruments. Secure Managed: The Secure Managed fund invests 100% in Government Securities and Bonds issued by companies or other bodies with a high credit standing, however a small amount of working capital may be invested in cash to facilitate the day-today running of the fund. This fund has a low level of risk but unit prices may still go up or down. Defensive Managed : 15% to 30% of the Defensive Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate 70 JVIMS

the day-to-day running of the fund. The fund has a moderate level of risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go up or down. Balanced Managed : 30% to 60% of the Balanced Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the higher proportion it invests in equities. Unit prices may go up or down.

Growth Fund: The Growth fund invests 100% in high quality Indian equities. In addition a small amount of working capital may be invested in cash to facilitate the day-today running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the investment in equities. Unit prices may go up or down. The past performance of any of the funds is not necessarily an indication of future performance. There are no investment guarantees on the returns of unit linked funds. None of the funds participate in the profits of HDFC Standard Life Insurance Company Limited or any of its policyholder funds. BENEFITS: At the chosen vesting date, the unitised fund value will be available to secure pension benefits. Subject to the prevailing regulations, part of this value can be taken in the form of a cash lump sum and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternatively, if it is permitted by the prevailing regulations, the proceeds net of any cash lump sum can be used to 71 JVIMS

buy an annuity with any other insurance company who will accept such business. The current maximum limit for any cash lump sum is one-third of the unitised fund value on vesting. On death the unitised fund value will be paid along with a cash lump sum of Rs. 1,000. The beneficiary may use the proceeds to purchase pension benefits for the surviving spouse. ELIGIBILITY Table no.13 The age and term limits for taking out a Unit Linked Pension Plan are: (years) Minimum Maximum Minimum Maximum Minimum Maximum Age at Age at Age at Age at Term Term Entry Entry Vesting Vesting Regular Premium 10 Version Single Premium 5 Version 40 18 60 50 70

40

18

65

50

70

The unit price each day will include a fund management charge. This charge is 0.80% of the fund value per annum taken on a daily basis.

72

JVIMS

5) CHANNEL OF DISTRIBUTION To reach the target market you should have standardized channel of distribution. First we have to understand distribution. distribute company’s products in the target market. distribution channel. In other words distribution channel consists of set of interdependent organization involved in the process of sustaining a product or service from the point of production to the user at the point of consumption. Let us talk about the HDFC Standard Life Insurance Company, the distribution channel is mainly depend and related with the financial consultants they are the keys to get more business. Financial Consultants mainly come under the ADM and BDM. Distribution means to Consumers can define

73

JVIMS

6) PRICING POLICY Generally this is not FMCG product where in short period price changes take place. These products are called financial products, which does not fluctuate in short period. HDFC Standard Life insurance has different prices for different products. Company has different products like pension plan, unit linked endowment plan, money back plan, term assurance plan, children’s plan and so on all these products have different prices. Every product has different benefits; rates and eligibility criteria prices are decided on that basis.

74

JVIMS

7) PROMOTION TOOLS: Sales promotion is most important in the marketing, this the one of the important elements of marketing promotion viz., advertisement, Personal selling and publicity. Sales promotion can be defined as process of marketing communication involving information, persuasion and influence. Pillip Kotler has rightly defined sales promotion as “it consist of diverse collection of incentive tools, mostly short term, design to stimulate, quicker and or / greater purchase of products or services by the consumers or the trade. Advertisement offers reason to buy and SP offers an incentive to buy. The use of SP tools has increased greatly because of demanding customers, competition globalization etc. For sales promotion there various techniques which are applied viz.; • • • • • • • • • • • • Sales promotion letters Point of purchase promotion Catalogue Gifts Contest Free sample Discount Coupons Installment offer Premiums and free offer Trade fare and exhibition Demonstration If we talk about the HDFC SLI, they use trade fair and exhibition,

75

JVIMS

installment, contents etc. for promoting their sales. In very short period they have done very good business and occupied good place in market. 8) MARKETING STRATEGY Marketing strategy of the company is to penetrate more and more market because company has been working since last five years before that private players were not allowed to do the business of insurance. Today in this market so many private players are existed. It is reality that the Life Insurance Compay covers larger part of market but it is also reality that still large part of population of India does not have insurance policy. So company is trying to penetrate more market. Among all private players HDFC Standard life Insurance working efficiently and tries to reach on top place. HDFC Standard Life Insurance also has financial consultants in the rural market.

76

JVIMS

B) 0PERATIONS DEPARTMENT STUDY:

Operation department plays vital role in the successes of any organization. To provide quality of services operation department is necessary. Every operation in this department is carried out very smoothly. The main objective of the operation department is to interface between clients and financial consultant of the company, the branches and underwriters and so on. Operation department manages all this things very smoothly.

77

JVIMS

LOCATION OF THE COMPANY Name Address : : HDFC standard life insurance co. ltd. Registered office – Roman house, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, MUMBAI – 400 020. Corporate office – The IL & FC Financial Center, 5th floor, Plot No.- 22, G Block, Bandra Kurla Complex, BANDRA (E), MUMBAI – 400 051. Tel. No. Fax E-mail Internet ESTD: Form of Org. Auditors Bankers : : : : 6533666 22-6533655 response@hdfcinsurance.com www.hdfcinsurance.com

14th August 2000 Public Limited Company S. B. Billimoria & Company (C.A.) HDFC Bank Mr. Deepak S. Parekh Mr. D. M. Satwalkar Mr. A. R. Forbes Mr. I. C. Lumsden Mr. K. M. Mistry Mr. M. R. Pai Mr. A. M. Crombie

Board of Directors: Chairman MD & CEO

Promoters

-

HDFC & Standard Life Insurance Co

78

JVIMS

C] FINANCE DEPARTMENT STUDY:

INTRODUCTION 1) ACQUISITION OF FUNDS 2) UTILIZATION OF FUNDS 3) FINANCIAL PERFORMANCE 4) INTEGRATED FINANCIAL SERVISES 5) FINANCIAL RATIO ANALYSIS

79

JVIMS

INTRODUCTION

Finance is lifeblood of any institute or business. Finance is the wheel to which one can generate and direct its business of the achievement of the organization goals. Proper management of finance department forms the base to increase the profitability. In business, cost to create and maintain a product is in the hand of businessman. In competitive era sales and profit are not in the hands of entrepreneur. In every big organization responsibility is on the head of finance manager. He has to take so many decisions related to the finance. The finance manager has to the great care to deal with financial matter.

80

JVIMS

1) ACQUISITION OF FUND SHARE CAPITAL: Table no. 15 Current Year Previous Year (Rs. ’000) 1. Authorized Capital Equity shares of Rs 10 each 2. Issued Capital Equity shares of Rs 10 each 3. Subscribed Capital Equity shares of Rs 10 each 4. Called-up Capital Equity shares of Rs 10 each 3,000,000 2,555,000 2,555,000 2,555,000 (Rs. ’000) 2,200,000 2,180,000 2,180,000 2,180,000

In HDFC SLIC, it has subscribed only Equity share capital. It has not issued any type of bonds or debentures. It has also not borrowed any amount from any private financial institute. The banker of the firm is HDFC bank.

81

JVIMS

2) UTILISATION OF FUNDS They utilize funds for the development of new branches. When new branch is opened fund is utilized. They also utilize fund for the development of financial consultant they suffer huge cost for one financial consultant, training of the financial consultant they have approached new program DISHA. In the DISHA program financial consultant are given training for four to five days. Generally, fund is utilized to maintain the branches offices, maintaining financial consultant, development of officers and so on.

82

JVIMS

3) FINANCIAL PERFORMANCE

PROFIT AND LOSS ACCOUNT OF THE RGANIZATION.
Table no. 15

Profit and Loss Account for the year ended 31st March 2004
Shareholders’ Account (Non-technical Account) Particulars Schedule Year (Rs. ’000) ’000) Amounts transferred from the Policyholders’ Account (Technical Account) Income from Investments (a) Interest, Dividends & Rent - Gross (b) Profit on sale / redemption of investments (c) (Loss on sale / redemption of investments) (d) Transfer / gain on revaluation / change in fair value (e) Amortization (charge)/credit Other Income TOTAL Expenses other than those directly related to the insurance business Bad debts written off Provisions (other than taxation) (a) For diminution in the value of Investments (net) (b) Provision for doubtful debts (c) Others (d) Contribution to the Policyholders’ Fund TOTAL — — — 286,428 387,712 — 535,542 601,415 — — 101,284 — 65,873 — — (8,304) 3,439 153,362 — (7,355) 2,850 119,388 92,873 70,446 (5,092) 92368 31,525 — (Rs. Current Year Previous

83

JVIMS

Profit / (Loss) before tax Provision for Taxation Profit / (Loss) after tax APPROPRIATIONS (a) Balance at the beginning of the Period. (b) Interim dividends paid during the Period (c) Proposed final dividend (d) Dividend distribution on tax (e) Transfer to reserves /other accounts

(234,350) — (234,350) (746,483) — — — —

(482,027) — (482,027) (264,456) — — — — (746,483)

Profit / (Loss) carried forward to the Balance Sheet (980,833)

BALANCESHEET OF THE ORGANIZATION
84 JVIMS

4) INTEGRATED FINANCIAL SERVICES Particulars SOURCES OF FUNDS SHAREHOLDERS FUND: Share Capital Reserves & Surplus Credit/Debit Fair Value Change A/C SUB-TOTAL BORROWINGS Policy Holder’s Fund Credit (Debit) Fair value Change A/C Policy Liabilities Insurance Reserves Provision for Linked Liabilities SUB TOTAL Funds For Future Appropriation Surplus, Allocated to Share Holders TOTAL APPLICATION OF FUNDS INVESTMENTS Share Holders Policy Holders Assets held to Cover Linked Liabilities Loan FIXEDASSETS CURRENT ASSETS Cash & Bank Balance Advances & Other Assets Sub-total (A) CURRENT LIABILITIES PROVISION Sub-total (B) Net Current Assets (C) = (A – B) Miscellaneous Expenditure DEBIT BALANCE IN P & L A/C (Share Holders’ A/C) TOTAL 85 2,533,078 2,862 2,546,940 2,167,257 (7,837) 2,159,420 Current Year (Rs.’000) Previous year (Rs.’000)

34,377 3,336,424 1,65,527 3,536,328 6,083,268 6,39,526 3,399,977 1,65,527 5,840 5,02,783 5,82,644 2,34,368 8,17,012 4,09,390 18,340 4,27,730 3,89,282 9,80,833 60,83,268

1,437,497 1,437,497 2,489 3,599,406 8,80,002 1,310,374 6,464 4,23,352 3,72,618 1,63,931 5,36,549 2,94,628 9,190 3,03,818 2,32,731 7,46,483 35,99,406 JVIMS

SECURITISATION

Future Activities

DISTRIBUTION
HDFC CHUBB GENERAL INSURANCE CO. LTD.

5) FINANCIAL RATIO ANALYSIS 86 JVIMS

Accounting ratios are relationship expressed in mathematical terms between figures, which are connected with each other in some manner. Obviously, no purpose will be served by comparing two sets of figures, which are not at all connected with each other. Moreover, absolute figures are also unfit for comparison. ♦ Traditional classification is based on financial statement to which determines the ratio belongs. ♦ Profit and loss account ratios are based on profit and loss account only. ♦ Balance sheet ratios are based on the figures of the balance sheet. ♦ Composite or inter-statement ratios are based on both that is the profit and loss account and balance sheet. Current ratio = Current assets Current liabilities = = 817012 427730 1.91 = = = Fixed assets Current assets 502713 817012 0.615 Fixed assets to current assets ratio

PBIT ratio

=

PBIT Net sales = 234350 87

x 100

JVIMS

153362 = 1.528

Fixed assets turnover ratio =

Sales Fixed assets 153362 502713 = 0.305

Ratio analysis 88 JVIMS

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the systematic use of the ratio to interpret the financial statement so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. Also it can be said as “the indicated quotient of two mathematical expressions and as “the relationship between two or more things”. In financial analysis ratio is used as the benchmark for evaluating the financial position and performance of the firm. The relationship between two accounting figures expressed mathematically is known as a financial ratio. CLASSIFICATION OF RATIOS 1. revenue statement ratio a) gross profit ratio b)operating ratio c) expenses ratio d)net profit ratio e)stock turnover 2.balance sheet ratio a) current ratio b) liquid ratio c) quick ratio d) proprietary ratio e) debt-equity ratio f)gearing ratio g)long-term debt Generally use usage ratios in any in firm in order to assist the firm in a decision making. This would lead to the further formation .

89

JVIMS

1). REVENUE STATEMENT RATIOS: a). Gross profit ratio It is a ratio expressing relationship between gross profit earned to net sales. It is an useful indication of the profitability of business.

Gross profit Gross profit ratio = ----------------------- X Sales 100

90

JVIMS

b). operating ratio it is a ratio showing relationship between cost of goods sold plus operating expanses and net sales. It shows the efficiency of the management. The higher the ratio , the less will be margin available to proprietors. This ratio is also usually expressing as a percentage. Cost of goods sold + operating expenses Operating ratio = -----------------------------------------------X 100

Net sales

91

JVIMS

2).BALANCE SHEET RATIO
A).CURENT RATIO This most widely used ratio shows the proportion of current assets to current liability. It is also known as “Working Capital Ratio” as it is a measure of working capital available at a particular time. The ratio is obtained by dividing current assets by the current liability.

current assets current ratio = -----------------------------current liability

92

JVIMS

B) LIQUID RATIO:
A variant of a current ratio is liquid ratio or quick ratio which is design to show the amount of cash available to meet immediate payment. It is obtained by dividing liquid assets by liquid liabilities. Liquid assets are obtained by deducting stock-in-trade from current assets. Stock is not treated as l liquid assets because it can not be readily converted into cash as when required. Liquid assets Liquid ratio = -------------------------------liquid liabilities

93

JVIMS

C) ACID-TEST RATIO: the measure of absolute liquidity may be obtained by comparing only cash and bank balance as well as readily marketable securities with liquid liabilities. this is very exacting standard of liquidity and it is satisfactory if the ratio is 0.5: 1 Quick assets Acid-test ratio = --------------------------Liquid liabilities

94

JVIMS

D) PROPRITORY RATIO:
The ratio shows the proportion of the proprietor’s fund to the total assets employed in the business. The proprietor’s funds or share holders ‘equity consist of share capital and reserves and surplus ‘. Proprietor’s fund Proprietary ratio = --------------------------Total assets

95

JVIMS

E) DEBT EQUITY RATIO:
This ratio is only another form of proprietary ratio and establishes relationship between the outside long term liabilities and owners fund. It shows the proportion of long term external equities and internal equities i.e. Proportion of funds provided by long term creditors and that provided by shareholders or proprietors.

Long term liabilities Debt-equity ratio = ------------------------------------- x Share holders funds 100

96

JVIMS

F) CAPITAL GEARING RATIO:
This ratio expresses the proportion of preference capital and ordinary capital. In other words, it is ratio of fixed dividend gearing capital to ordinary capital. Sometimes, even debentures are included along with preference capital. The higher this ratio i.e. the greater the proportion of preference capital and debentures to ordinary capital.

Fixed interest bearing capital Gearing ratio = ----------------------------------------------------------Ordinary capital

97

JVIMS

G) LONG TERM FUNDS TO FIXED ASSETS:
The fixed assets of business must be purchased out of fixed capital only. This includes share capital, reserves, and long term liabilities. This ratio, therefore, shows the relation ship between fixed capital and fixed assets.

logn term funds to fixed assets ratio: logn trem funds = -------------------------------------------------fixed assets

98

JVIMS

D) HR DEPARTMENT STUDY : 1) Manpower Planning 2) Recruitment 3) Selection 4) Training 5) Performance Appraisal

99

JVIMS

1. MANPOWER PLANNING Manpower planning is most important for every organization. They

Human Resources & Development is the main department in any organization. The HRD in the company aims at creating a conduciveness. Organizational climate in which the employees are developed and realize their potential. The main HRD mission in the company is continuous process and direction to enable every individual as a member of an effective and efficient team. The company realizes and activates his potentials so as to contribute to the achievements of the company’s goals and derived satisfaction to them. The main function of HRD department is to equip their manpower. Training and development is also main function of HRD department of the company. The company is imparting institutional training to upgrade this skills and knowledge of the staff members in various fields. HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization.

100

JVIMS

2) RECRUITMENT

Recruitment forms the first stage in the process, which continues with selection and ceases with placement of the candidates, the first step being the manpower planning. Recruitment makes its possible to acquire the number and types of people necessary to ensure the continued operation of the firm because without having right type of People Company cannot achieve its goals. For the recruitment of the financial consultant they go for the presentation in the colleges, cold calling and so on. A person who wants to be a financial consultant of the HDFC Standard Life Insurance should have passed 12th standard and he or she should be 18 years old. For the recruitment of the sales development manager they prefer M.B.A. from repudiated college plus he or she also should have experience of policy selling. For the higher post they prefer internal source.

101

JVIMS

3) SELECTION Selection is most difficult job because you have to select right kind of people. Selection is also can be defined as decision-making process where the management decides certain norms and principal of standards on the basis of which discrimination between qualified and non-qualified can be made so. HDFC SLIC has been using selection procedure on the basis of written test, group discussion and personal interview. It is also depend upon particular job.

4) TRAINING Training can be defined as “organized procedure by which people acquire knowledge or skill for the definite purpose. Training is effective tool or instrument that helps to reduce wastage of resource and improvement in the quality of work. In this global era, training is most essential because changing with the technology we have to improve effectiveness of the employees for that training is most essential. Training is given to the differently to the employees at different level. In HDFC SLIC for BDM (business development manager) training is given for five to six days. For FC (financial consultant) training of IRDA is compulsory it is generally for 100 hours. After IRDA exam FC has to take product training for one week, which is famously known as DISHA training in HDFC Standard Life Insurance.

102

JVIMS

5) PERFOMANCE APPRAISAL: Performance Appraisal can be termed as “it the process of evaluation and employees performance and knowledge of the job in terms of requirement of the job for which he is employed, for the purpose of administration including placement, selection for promotion, providing financial regards and other actions which require differential treatment among the members of the group as distinguish from action effecting all members quality. In HDFC SLIC performance appraisal is base on yearly basis, mainly it is depend upon the particular employee who has achieved a specific target. Point system of the performance appraisal also used. Other motivated factors also included in performance appraisal. For example if any officer performance is good his or salary can be increased.

6) GRIEVANCE HANDLING To handle the grievance of employees is tuff job and the particular authority should handle it effectively. Grievances are feelings, sometimes real, sometimes imagined, which an employee may have in regards to his employment situation. It may be unvoiced or expressly stated, returned or verbal, valid legitimate, untrue, completely falls or ridiculous and arise out of something connected with organization or work. In HDFC SLIC the manager handles grievance. If there is an internal dissatisfaction in the employees then the manager of a particular branch tries to solve it. if manager is not able to solve it then he writes to the higher authority.

103

JVIMS

LIST OF TABLES

Sr. no. 1. 2. 3. 4. 5. 6. 7. 8. 9 10 11. 12. 13. 14. 15 16. 17. 18 19 20 21 22 23 24

Title of the tables Content of the report Players in the market share Key market indicators Number of registered insurers in India Eligibility for the endowment assurance plan Eligibility for the unit linked endowment assurance Eligibility for the children’s plan Eligibility for money back plan Eligibility for the single premium whole life insurance Eligibility for the term assurance plan Eligibility for the loan cover term assurance plan Eligibility for the personal pension plan Eligibility for the unit linked pension plan Eligibility for the unit linked youngster plan Acquisition of fund Profit and loss account Balance sheet Investment amount in a year Awareness about pension plans Investment in any pension plan Factors form selecting appropriate plan Awareness about the pension plan of the HDFC SLIC Interest to get more detail about pension plan of HDFC SLIC Expected feature in pension plan

Page number 1 21 32 33 41 45 46 48 49 51 52 53 56 57 66 68 69 80 82 83 84 87 89 90

104

JVIMS

LIST OF GRAPHS Sr. no. 1. 2. 3. 4. 5. 6. 7 8 9 Title of the graph Market share Integrated financial services Investment amount in a year Awareness about pension plans Investment in any pension plan Factors form selecting appropriate plan Awareness about the pension plan of the HDFC SLIC Interest to get more detail about pension plan of HDFC SLIC Expected feature in pension plan Page no. 22 70 80 82 83 85 87 89 90

105

JVIMS

Glossary
Insurance: The system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (a premium) are guaranteed compensation for losses resulting from certain perils under specified conditions. Life Insurance- A contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier.

Insurer: The party to the insurance contract promises to pay losses or benefits. Insured: An individual or organization covered by an insurance policy, including the "named insured" and any other parties for whom protection is provided under the policy terms and conditions. Accident Benefits Payment by the insurer an additional benefit equal to the sum assured in case of death by accident. Advance Deposit : The amount paid with the proposal equal to the first premium is called an advance deposit till the acceptance of risk by the insurer. Accumulation period Time between the first premium payment and the first benefit payout under a deferred annuity. Age Limits: Stipulated age frame below and above which the company may not accept applications or may not renew policies. Amendment: Formal document changing the provisions of an insurance policy signed together by insurance company officer and the policyholder. Annuity: The contract that provides an income for a specified period of time, such as a number of years or for life.

106

JVIMS

Assets: All property, goods, securities, funds or resources of any kind owned by an insurance company. Assignment: The transfer of interests in a life insurance policy to a person or an institution. Assurance: The act of assuring a certain sum in the event of survival or death of a human life during a specified period. Accelerated Death Benefits — Life insurance policies with a special feature that allows payment of the death benefit when the insured person is still alive. Such payment is usually limited to situations in which the policyholder is terminally ill. Benefits: Amount payable by the insurance company to a claimant, beneficiary or assignee under each coverage. Bonus: The yearly share of a policy holder's profit declared by L.I.C. based on its profit which gets added to the policy amount and is payable upon its maturity. Broker: A kind of marketing specialist representing buyers of property and liability insurance and deals with either agents or companies in arranging for the coverage required by the customer. Certificate of Insurance: The statement of coverage issued to an individual insured under a group insurance contract, including the insurance benefits and principal provisions applicable to the member. Claim: A request for payment of a loss that may come under the terms of an insurance contract. Conditions: List of provisions declared in an insurance contract that qualify or place limitations on the insurer's promise to perform. Death Benefit: The payment made to a designated beneficiary upon the death of the employee annuitant. Declarations: The statements in an insurance contract that provide information about the property or life to be insured and used for underwriting and rating purposes and identification of the property or life to be insured. 107 JVIMS

Deferment Period: The period from the date of commencement of the policy to the vesting date. Deferred Annuity: The annuity providing for the income payments to begin at a particular future date. Disability: Physical or a mental impairment that substantially limits(Partial or Total) one or more major life activities of an individual. Disability Benefit: Free waiver of payment of future premiums in case of total and permanent disablement due to an accident. Dividend: The amount returned to a policyholder by an insurance company out of its earnings. Double Accident Benefit (DBA): The benefits provide for the payment for an additional amount equal to the sum assured in the case of death of a policyholder as a result of accident. Due Date: The date on which the installment premium is due to be paid by the insured. Endowment Insurance: The type of life insurance that is payable to the insured if he/she is still living on the policy's maturity date, or to a beneficiary. Endorsements: An additional piece of paper which includes certain terms and which, when attached to the original contract, becomes a legal part of that contract. Endowment: The life insurance payable to the policyholder if living, on the maturity date declared in the policy, or to a beneficiary if the insured dies prior to that date. Extra Premium: Additional premium charged on hazardous occupations and impaired lives. Endowment Assurance Plan: A plan where the Sum assured is payable on the date of maturity or on death of the life assured, whichever is earlier.

108

JVIMS

Free Disability Benefit: Unlike the Double Accident Benefit, The Free Disability Benefit is, as the name suggests, a benefit automatically available to every policyholder without any extra charge. Group Insurance- Insurance provided to members of a formal group such as employees of a firm or members of an association. Keyman Insurance: This is taken by a business firm on the life of key employee(s) to project the firm against the finance loss, which may occur due to the premature demise of the Keyman. License: A type of surety guaranteeing that the person licensed will comply with all laws and regulations that govern his or her activities. Life Insurance- A contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier. Liability: Any kind of legally enforceable obligation. Life Assured: The individual whose risks are covered by an insurance policy. Loan: The facility to raise loan on the mortgage of the policy based on its surrender value. Agent: The authorized representative of the insurer, licensed by the Government of India to canvass insurance. Pension Plan: The plan established and maintained by an employer or a group of employers, union or any combination, primarily to provide for the payment of definitely determinable benefits to participants after retirement. Claim: A request for payment of a loss that may come under the terms of an insurance contract.

109

JVIMS

Bibliography  Phillip kotler ‘’ Marketing management “published by 11 editors, practice hall of India pvt. Ltd 2003  c.b. Mamoria ‘’ Personnel Management ‘’published by Himalaya Publishing House1999  K. Aswathappa ”Human Resource And Personnel Management” 3 Editions Tata Mc Graw Hill Publishing Company Ltd. 2004 2004

     

www.irdaindia.org www.hdfcinsurance.com www.bimaonline.com www.einsurance.com www.google.co.in www.icicipru.com

110

JVIMS

Problem Formulation

There are so many private Insurance company starts functioning in Bhavnagar city. All companies has is own agent to market their products. Only LIC have a team of 2000 agents which marketing the LIC product among Bhavnagar city. In short there is very tuff competition between insurance agents in Bhavnagar. Every companies are in search of best intermediaries to market his product. HDFC Standard Life Insurance Company Limited, Bhavnagar is also searching for it but they face a problem in selection of Financial Consultants (agents). The company requires those individual which very kind to his work, enthusiastic and wants achieve something. They any layman as a Financial Consultant of HDFC Standard Life Survey was conducted among the Bhavnagar city on the ‘Perception of high net worth Individual to become a Financial Consultant of HDFC Standard Life Insurance Company Limited, Bhavnagar’.

111

JVIMS

Research Objectives

Primary Objective To assess the perception for high net worth individuals for becoming insurance agents with special emphasis on HDFC Standard Life Insurance. Secondary Objectives To find out the perception of an individual to become an insurance agent. To find out the problem faced by a high net worth individuals not to become an insurance agent.

112

JVIMS

Research Methodology

“Marketing Research is the systematic gathering, recording and analyzing of data about problem relating to the marketing of goods and services.” The key word that distinguishes research from a haphazard gathering of observation is systematic. The systematic conduct of research requires particularly these two qualities:1 2 Orderliness in which the measurements are accurate and the cross section is fair and Impartiality in analysis and interpretation.

Research Design Research design can be describe as an out line of a research project working or a pattern In a research design there are series of prior decision that together provide a master plan for completing a research project. Research design in proved to a bridge between what has been established and what is to be done in conduct of the studies. Research Design should be compressive and it should provide which method to be used and what work to be done. The best suitable Research designs for my study is exploratory design which one of the most important and widely used design in marketing research. In this research design the data collected are responses from the sample containing large number of sources, which is called cross section of situation. The intention was to know:

113

JVIMS

-

Different kind of problem faced by the company in selecting of financial consultant. Perception of an individual to become a financial consultant.

-

114

JVIMS

Sampling Design

Sampling is very familiar to all of us it occurs frequently in the course of our daily events. When limited portion from the large population is selected for the study and the care is taken in choosing the sample to be representative of the population. There are numbers of reasons why the sampling is done which are as follows. 1. To study the population is not possible due to limited time frame because researcher has to complete there search in a given time period sot he chooses the sample to be in time. 2. Sampling is economical in cost because only a few portion is to tasted and not the whole population. 3. If whole population is studied accuracy cannot be maintain because of the much analysis and interpretation which will load to miss guided result.

115

JVIMS

Data Collection Method

The collection of data is most important task while doing research variety of data is required. There are two types of data: 1. Primary Data: It is a firsthand data it may be obtained from individuals, from families, representatives, or from organizations. It is specially generated by doing the research. It is specific relevant and up to date. In y project primary data is collected through questionnaire by asking question at the respondent place. 2. Secondary Data: In contrast to primary data these are not first hand data. These are the data, which are already gathered, and available data. There may be internal sources with in the client’s firm. Externally these sources may include books or periodicals, published reports, data services, and computer data banks. Targeted Individuals These are the individuals, which are targeted to collect data through questionnaire. 1. Tax Consultants. 2. Small Savings Agents. 3. LIC Agents. 4. Estate Brokers. 5. Other Investment Advisors 6. Businessmen

116

JVIMS

Data Analysis And Interpretation  Education Qualification. In the question of education qualification I find this type statistics in sample survey. Table 1-: % of Total 10th 19% 10 + 2 21% Graduates 46% Post Graduates 14

50 45 40 35 30 25 20 15 10 5 0

%of total

10th

10+2

G

PG

Chart 3:- Educational Qualification As per the IRDA norms the only qualified for an agent if he has completed minimum education of 10+2 or equivalent where the applicant resides in a place with a population of 5000 or more as per the last census. In any other place, the applicant should satisfy a minimum educational qualification of 10th standard or equivalent. 117 JVIMS

118

JVIMS

 Current Occupation: Table 2-: Salaried % of Total 7% Self-employed (SE) 88 % Students 5%

90 80 70 60 50 40 30 20 10 0 % of Total

Salaried

SE

Student

Chart 4-: Current Occupation As per targeted individuals all are engaged in some activities and most of them are businessmen so number of Self-employed is very large. HDFC does not want those person whose job timing are 9 to 5, because HDFC fill that Financial Consultant has to work 5 to 6 hours a day which is suitable for self employed person rather than salaried. The person who is doing business of Investment advisor, small saving agent, or tax consultant for him selling an insurance plan is easy job comparative to other.

119

JVIMS

 Phone Numbers. Table 3-: Office No. % of Total (O) 70 % Residence No. (R) 15 % Mobile No. (M) 5% No number (N) 10 %

70 60 50 40 30 20 10 0 (O) (R) (M) (N) % of Total

Chart 5-: Phone Numbers HDFC Standard Life is more emphasizing in base phone number. He has mandatory for his financial consultants to have one base phone either at office or at residence. In some case I am getting both Office as well as Residence phone number but in some case the respondent gives his mobile number or he has no any contact number.  You have Agency of Other Life Insurance Company 120 JVIMS

Table 4-: % of Total Yes I have an agency 8% No I don’t have 92 %

YES NO

Chart 6-: Agency of other Life Insurance Company As per the IRDA norms one person cannot work of two different life insurance companies simultaneously. In my target individual I have targeted LIC agents because they have an art of selling life insurance product. The person cannot take an agency of HDFC Standard Life if he is already an agent for another life insurance company but he may take an agency of HDFC Standard Life in the name of his family member and work for both companies. But response from LIC agents is very poor they don’t want hear anything about private companies, they are interested in finding faults in it.  Social contact base 121 JVIMS

Table 5-: % of Total 50-100 29 % 101-200 37 % 201-500 27 % 501 & above 7%

40 35 30 25 20 15 10 5 0 % of Total

50100

101200

201- above 500 501

Chart 7-: Social Contact Base Insurance business is totally based on contact base. Insurance is not such product that can sale in a shop for this you to go toward the respondent and find needs of insurance for particular person. More social contact more will be the business. The person should select as a financial consultant which enough social contact i.e. more than 100.

 Family Member

122

JVIMS

Table 6-: % of Total 1-3 14 % 4-6 66 % 7-10 12 % Above 10 8%

70 60 50 40 30 20 10 0 1 to 3 4 to 6 7 to 10 above 10 % of Total

Chart 8-: Family Members India is an over populated country. In our survey we find that most of the family 5 or then 5 family members. The logic behind to see the number of person in family is if the person have big family then the needs of family is more and to fulfill the needs of family member earner has to earn more and there no upper limit of earning in Life Insurance business. This factor will motivate individuals to work hard and get equivalent reward of it.  Is your family a Single Income family? Table 7-: 123 JVIMS

Yes, single person is % of Total earning 33 %

No, more then one person earning 67 %

YES NO

Chart 9-: Single Income Family It is very surprising in my study that number of NO is more then YES in this question. In India most of the family are dependent in single income but during my survey I found that there are more then one person are earning from the same family either father and son or two brothers are earning. It is appreciated; as per insurance business is concern. Because more the earners more the social contact bases they have.

124

JVIMS

 No. Of Dependents in a Family Table 8-: % of Total 1 to 3 55 % 4 to 6 32 % 7 to 10 8% More than 10 5%

60 50 40 30 20 10 0 1 to 3 4 to 6 7 to 10 above 10 % of Total

Chart 10-: No. of dependents in family As per my earlier chart most of the family have 4 to 6 member in his family and more then one person is earning in a family on the basis of that it is obvious that the number of dependent on earner are lying Between 1 to 3. More the dependent person in a family more is the responsibility of earner. If the person has more dependent in his family then he works hard for his family.

125

JVIMS

 How Often do you interact with your friends\relatives? Table 9-: Once in week % of Total 55 % Once in 15 days 32 % Once in Month 8%

Interaction with friends\relatives
80% 60% 40% 20% 0% Once in week Once in 15 days Once in Month 15% 60% 25%

Chart 11 – Interaction with friends\relatives As shown in the chart 60% of the respondents interact with friends\relatives once in 15 days. 25% interact once in month. So most of the respondents are in interaction once in every month.

126

JVIMS

 Sales Experience. Table 10-: % of Total YES 38 % NO 62 %

YES NO

Chart 12-: Sales Experience In this question the company emphasizing on field experience. In my survey I found that individual are able to sale product in his shop but he fill uncomfortable to sale at respondent place. Or rather there is a lack of field sales experience in it. In insurance business those people are survive who are able to sale his product at any time and at any place.

127

JVIMS

 Sales Experience of Financial Product Table 11-: % of Total YES 14 % NO 86 %

YES NO

Chart 13-: Sales Experience of Financial Product I found very less number of people who have a sales experience of financial product. In our target individual only small saving agents, LIC agent and investment advisor are came in this category. If the person has an experience of selling financial product then it is easy for him to understood and convince other for buying insurance.

 Are you Interest to become an Insurance Agent? 128 JVIMS

Table 12-: % of Total YES 26 % NO 74 %

YES NO

Chart 14 -: Interest in becoming Insurance agent I am getting very good response from the respondent. From the total number of individual 26 % are interested to be insurance agent and are eligible to become an insurance agent as per IRDA norms and HDFC’s conditions.

 What are main hurdles in becoming insurance agent? 129 JVIMS

Table 13-: Lack of time Fully involved in own business Having agency of other insurance co. Lack of social contact Lack of awareness Others 28% 25% 8% 7% 5% 27%

Hurdles in becoming agent

Lack of time

27% 5% 7% 8%

28%

Fully involved in ow n business Having agency of other insurance co. Lack of social contact Lack of aw areness Others

25%

Chart 15-: Hurdles in becoming Insurance Agents It is found from the survey that 28% respondent were having lack of time, while 25% respondents were fully involved in their own business, 8% were having agency of other insurance company, 7% were having lack of more social contacts, 5% were having lack of awareness about insurance business and 27% respondents were having some other personnel problems to become insurance agent. 130 JVIMS

CONCLUSIONS The IRDA has announced regulations pertaining to licensing of insurance agents, which have come into force with effect from 14th July, 2000. An insurance agent should satisfy the following requirement: 1. Possess a minimum educational qualification of 12th standard or equivalent where the applicant resides in place with a population of five thousand or more as per the last census. In any other place, the applicant should satisfy a minimum educational qualification of 10th standard or equivalent. 2. Complete on hundred hours of practical training in life insurance business, from an approve institution, where the applicant is seeking a license for the first time to act as an insurance agent. This training requirement is relaxed in certain situation where the applicant possesses professional qualifications.

3. Pass the pre-recruitment test, based on an examination conducted by the Insurance Institute of India or another approved body. 4. Have the requisite knowledge to solicit and procure insurance business. 5. Be capable of providing necessary service to policyholders.

131

JVIMS

From the market survey it is shown that the individuals are feeling that the selling an insurance product is very tuff task and it is true but to reduce this IRDA has introduce the 100 hours practical training which is mandatory for every agents to understand the product and how to sale it in the market. Awareness level among the individual regarding the earning of insurance agent is very less. The high earning is motivating to become an agent. But In survey I found that the person who is related to the insurance business or with any other financial product are not so much interested to become an agent because the after sale services in insurance product is a main job of an agent and they are not interested init. During my Research I found one co-relation between the number of family and perception to become an insurance agent. The person with big number of family is more interested to become an agent compare to the person having small family. Because more the family member more will be the needs of family and this factor motivated individual to work hard for his family. Insurance is only a business which give renewal commission means once sale a policy then every year you will get some part of the premium paid by policyholder as a commission and this renewal commission motivating an agents to provide better service to the policyholder.

132

JVIMS

RECOMMENDATIONS 1. Target those individual who searching for a new business. 2. Give advertisement for Financial Consultant and about HDFC Standard Life Insurance Company Limited in newspapers as well as in television to create awareness of Life Insurance among the people. 3. In Bhavnagar city there is no any holding or any advertisement outlets is made by HDFC SL, please make some advertisements. 4. The main problem face by individual is timing of training. HDFC Standard Life providing training to his consultant as per the IRDA norms the training times 10 to 6 for 13 days. It is difficult for already engaged person to leave his business for 13 days instead of giving continuous training make part of 4 hours a day and increase this time during weekends. 5. The LIC has covered almost market of insurance but still there is so much potentiality in this sector. For new Financial Consultant it is tuff to find out this potentiality for that HDFC Standard Life Insurance Company has to support his financial consultants at every step. 6. Young generations are suitable to become financial consultant for an insurance business because in this business the person has to run in the market. If person fails to convince his client in two meetings then the other agent get that business on his first meeting because the foundation is already made by first one but he unable to built which is done by second.

133

JVIMS

7. List of Graphs No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Title Number Policies In Forces Life premium as a proportion of Gross Domestic Savings Educational Qualification Current Occupation Phone Numbers Agency of other Life Insurance Company Social Contact Base Family Members Single Income Family No. of dependents in family Interaction with friends\relatives Sales Experience Sales Experience of Financial Product Interest in becoming Insurance agent Hurdles in becoming Insurance Agents Page No.

134

JVIMS

List of Tables No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Title Educational Qualification Current Occupation Phone Numbers Agency of other Life Insurance Company Social Contact Base Family Members Single Income Family No. of dependents in family Interaction with friends\relatives Sales Experience Sales Experience of Financial Product Interest in becoming Insurance agent Hurdles in becoming Insurance Agents Page No.

135

JVIMS

Questionnaire 1. What is your Educational Qualification? Ans. ______________________________________ 2. What is your Current Occupation: Ans. ______________________________________ 3. Social contact base [ ] 50-100 [ ] 150-200 [ ] Above 200

4. What is the size of Family? [ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] Above 10

5. Is your family single Income family? [ ] Yes [ ] No

6. No. of dependents in Family:[ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] Above 10

7. How often do you interact with your friends\family? [ ] Once in week [ ] Once in 15 days [ ] Once in month

8. What general guidance you give to your friends\relatives? Ans. ___________________________________________ 9. Sales experience of Financial Product? [ ] Yes [ ] No

10. Do you have agency of other Life Insurance Company? [ ] Yes [ ] No 136 JVIMS

11. Are you interested to become an Insurance Agent? [ ] Yes [ ] No If No, Why ___________________________________ 12. What are main hurdles in becoming Insurance agent? Ans. _________________________________________ Personal Details Name: _______________________ Address: ______________________ ______________________ ______________________ Contact No.: (O) ______________ (R) ______________

137

JVIMS