A SUMMER TRAINING REPORT

IN
DISTRIBUTION ENHANCEMENT AND
CHANNEL DEVELOPMENT

SUBMITTED TO :- SUBMITTED BY:-

Mr.Narendra Singh Mayank Prakash

SRIMT MBA IIIrd Sem.( 2008-10)
ROLL NO.0827970023

A Report submitted in partial fulfillment of the requirements of the MBA program at

Sri Ram Institute Of Management And Technology
Greater Noida

Affiliated with

UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW

 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Distribution enhancement

and channel development”. The work would not have been possible to come to
the present shape without the able guidance, supervision and help to me by number
of people.

With deep sense of gratitude I acknowledge the encouragement and guidance

received by my organizational guide Mr. AMIT KUMAR SRIVASTAVA
(BDM) and other staff members.

I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.

MAYANK PRAKASH
 EXECUTIVE SUMMARY

The subject of my study was “Distribution enhancement and channel

development” for HDFC STANDARD LIFE, I have done by applying various

tools like Tele calling and through direct interaction with customer’s .I have also

done a market survey with the use of a questionnaire to know the clients interest

towards the part time business opportunity of Insurance Advisor.

The report contains first of all brief introduction about the company. Then it

contains the complete description of the job done and in the last the growth

opportunities and suggestions.

 TABLE OF CONTENTS

1. ACKNOWLEDGEMENT

2. EXECUTIVE SUMMARY

3. NATURE OF JOB ASSIGNED:

4. DETAILED JOB PROFILE

5. LEARNINGS OF MY TRAINING

6. DIFFICULTIES FACED

7. INTRODUCTION

 INTRODUCTION TO INSURANCE

 I.R.D.A.

 COMPANY PROFILE
 INSURANCE DISTRIBUTION

8. ABOUT THE COMPANY:

 S.W.O.T. ANALYSIS
9. RESEARCH METHODOLOGY

 Research Objectives
 Research Design
 Data Sources
 10. DATA ANALYSIS

11. CONCLUSION

12. RECOMMENDATIONS

13. ANNEXURES

 Questionnaire

14. BIBLIOGRAPHY
 NATURE OF JOB ASSIGNED:

The job assigned was to ANALYSE THE RECRUITMENT OF INSURANCE

CONSULTANTS FOR HDFC STANDARD LIFE. I was required to Search for
the insurance consultants who can bring business for the company working part
time or full time.

The Project was an endeavor to know the interest of a very diversified portfolio of
clients from different works of life and who were keen to join the Insurance
Industry as a part time Business opportunity.

The Project from the very name looks like a project of Human Resource but later
on I realized that the “primary job of a manager is getting things done by others”
and the project of consultants recruitment matches with this definition where one
has to interact with different kinds of people and convince them to accept the
proposal of a business partner as a Insurance Advisor.

HDFC STANDARD LIFE has a very famous Brand name and every body trusts
this brand so while searching for the consultants I didn’t find any difficulty in
telling about the Company.
HDFC STANDARD LIFE in India is no doubt growing at very fast pace and
making inroads in the Indian market but the growth can be accelerated provided a
better marketing strategy is applied.

In the process of Recruitment of Life consultants I went through several stages of

negotiations and my ultimate objective was to convert the deal into final closing.
During My Project I learnt to interact with different kind of People and I revealed
my personality as an Extrovert.
 DETAILED JOB PROFILE:

Initially marketing was very much bookish for me but during my Training in
HDFC STANDARD LIFEI came to know what actually marketing is. During my
training I interacted with customers who were very much unknown to me and in
the nascent stages I was having a little bit of hitch but later on I started enjoying
while interacting with the customers.

From the very beginning my Unit Manager told me that u will not be provided with
any kind of leads or database and you have to generate your own leads and have to
achieve the target in the given time.

He always use to say that u must walk alone and make planning and strategies to
achieve your objective. He is a great source of inspiration for me.
 LEARNINGS OF MY TRAINING
During My on-Job Training in HDFC STANDARD LIFE have learnt some very
basic and important facts of working in corporate I would like to put these
learning’s as follows:

 Working in Organization the thing that matters the most is the Communication
a manager spends more than 68% of time in communicating.

 One’s dressing sense matters the most in creating the first impression on
anyone.

 One has to obey your boss in every case even if you are not convinced with his
ideas sometimes.

 One should be Punctual and regular in the office.

 One should always try to maintain healthy relationship with the Boss.

 Always meet any body with smile and even communicating on phone your face
should be smiling.
 At the Last I just want to add “Experience is what you get, when you don’t get
what you want”.

DIFFICULTIES FACED

 Sometimes I find difficulty in interacting with people by tele calling due to

negative responses that made me nervous and demoralized sometimes

 The other difficulty was sometimes the client was ready to become the
insurance advisor of HDFC STANDARD LIFE but it was difficult to fetch out
fifteen hundred for the examination fees.

 I also faced difficulty in traveling to different areas of Allahabad to meet the

clients for part time business proposal.

 It was difficult to convince the clients to become insurance advisor of HDFC

STANDARD LIFE by paying five hundred rupees when some other companies
were taking less or no fees for the examination.

 The difficulty was to maintain a continuous level of self-motivation because we

are giving our best shot but results don’t come.
 FUTURE GROWTH PROSPECTS:

 HDFC STANDARD LIFE is the No.1 Private Life Insurance Company

with:
 Maximum No of Policies

 Largest Premium Income

 Largest Agency force

 Biggest Pension Player

 Therefore there is a lot of growth prospect for a Insurance Company Like

HDFC STANDARD LIFE the reason behind is people are now trusting private
players and are ready to invest in insurance to secure their future and also to
grow their money with the least amount of risk.

 Government is Going to open the Foreign Direct Investment in Insurance Sector

from 26% to $(% by 2009.Which would be a boon to insurance Industry.

 HDFC STANDARD LIFE’ Brand Name is becoming so much big that with in
few years it may overtake LIC (Life Insurance Corporation of India).
 INTRODUCTION

INSURANCE INDUSTRY IN INDIA

Insurance may be described as a social device to reduce or eliminate risk of life
and property. Under the plan of insurance, a large number of people associate
themselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident,
& burglary. Any risk contingent upon these may be insured against at a premium
commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party
happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result of
the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate
few, due to accidental events, are made good.
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE

BUSINESS IN INDIA ARE:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business

in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies’ viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
The functions of Insurance can be bifurcated into two parts:

1. Primary Functions

2. Secondary Functions

3. Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check the
happening of the risk, but can certainly provide for the losses of risk. Insurance
is actually a protection against economic loss, by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of

few among many others. Insurance is a mean by which few losses are shared
among larger number of people. All the insured contribute the premiums
towards a fund and out of which the persons exposed to a particular risk is paid.
Assessment of risk - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk. Risk is the basis for determining
the premium rate also

Provide Certainty - Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is device whereby the uncertain risks may be
made more certain.

The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to

adopt suitable device to prevent unfortunate consequences of risk by observing
safety instructions; installation of automatic sparkler or alarm systems, etc.
Prevention of losses cause lesser payment to the assured by the insurer and this
will encourage for more savings by way of premium. Reduced rate of premiums
stimulate for more business and better protection to the insured.
Small capital to cover larger risks - Insurance relieves the businessmen from
security investments, by paying small amount of premium against larger risks
and uncertainty.

Contributes towards the development of larger industries - Insurance

provides development opportunity to those larger industries having more risks
in their setting up. Even the financial institutions may be prepared to give credit
to sick industrial units which have insured their assets including plant and
machinery.
The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and

investment, insurance is a compulsory way of savings and it restricts the
unnecessary expenses by the insured's For the purpose of availing income-tax
exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business.

The country can earn foreign exchange by way of issue of marine insurance
policies and various other ways.

Risk Free trade - Insurance promotes exports insurance, which makes the
foreign trade risk free with the help of different types of policies under marine
insurance cover.
 INDIA INSURANCE

The end of the year 2006 marks a significant change and growth of 'India
Insurance' industry scenario. Monopoly of Public Sector Insurance company marks
an end and Private companies makes inroad. Foreign companies, both Life and
General flocked, collaborated and helped astronomical growth of 'Insurance
Industry in India'.

'India Insurance' growth was long overdue. Within 1st 12 months of liberation of
'Indian Insurance Industry' 10 licenses for selling life insurance products and 6
licenses for selling non-life products were issued to private companies. The Public
sector giant LIC started losing its market share at the cost of stupendous growth of
private players. Now 'India Insurance' industry has more than a dozen private life
insurance players and 9 private general insurance companies. Aggressive and
penetrative marketing strategy coupled with wide product bandwidth was an
instant success among the ignorant masses. Most of the private companies
registered more than 100% growth till then and are still continuing with such
monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic
need but it is getting popular among semi urban to rural masses. Top rank private
companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are
aggressively researching and innovating products for huge untapped rural 'India
Insurance' market. Collaboration with micro finance companies, post offices, rural
banks and village management authorities for selling insurance is doing wonders.

Life insurance products cover risk for the insurer against eventualities like death or

disability. Non-life insurance products cover risks against natural calamities,

burglary, etc. They are not as popular as life products in the ' Insurance India's'

portfolio. Until very recently it had only corporate buyers, but with natural

disasters like, earth quakes, tsunamis, storms and floods becoming more frequent

and damaging there has been a sudden spurt in sales of general insurance amongst

individuals. Consumerism of life style goods and modern amenities has also

contributed to its growth. With more awareness and wide bandwidth of insurance

product portfolio the growth for 'India Insurance' story will only get more

competitive and more affordable to all sections of Indian society.

 INTRODUCTION TO INSURANCE

Insurance is a system to alleviate financial losses by transferring risk of loss

from one entity to another.
‘Insurance’ is basically a sharing device. The losses to assets resulting from natural
calamities like fire, flood, earthquake, accidents, etc. are met out of the common
pool contributed by large number of persons who are exposed to similar risks.

This contribution of many is used to pay the losses suffered by unfortunate few.
However the basic principle is that loss should occur as a result of natural
calamities or unexpected events which are beyond the human control. Secondly
insured person should not make any gains out of insurance.

It is natural to think of insurance of physical assets such as motor car insurance or

fire insurance but often we forget that creator of all these assets is the human being
whose efforts have gone a long way in building up the assets. In that sense, human
life is a unique income generating assets. Unlike the physical assets, which
decrease in value with passage of time, the individual becomes more experienced
and more matured as he advances in age.

This raises his earning capacity and the purpose of life insurance is to protect the
income in the event of his premature death. The individual himself also needs
financial security for the old age or on his becoming permanently disabled when
his income will stop. Insurance also has an element of savings in certain cases.
 HOW INSURANCE WORKS?

Suppose there are 1000 persons all aged 35 years and healthy lives. They are
insured for one year against the risk of death. Each person is insured for Rs.
50,000. If the past experience indicated that 4 out of 1000 persons, at this age are
expected to die during the year, expected amount of death claim to be paid to the
family of four persons would come to Rs. 2, 00,000.

The contribution to be paid by each of the 1000 persons will come to Rs. 200 per
year. Thus, all the 1000 persons share loss caused to the 4 unfortunate families.
996 persons who survived till one year have not lost anything as they secured
peace of mind and a feeling of security of their family.

While insurance cannot prevent accidents or premature death, it can help protect
the family of the decreased against the loss of income caused by the death of the
main breadwinner. In return for specified payments, insurance will provide
protection against the incidence of an uncertain event- such as premature death.

The business of insurance company called insurer is to bring together persons who
are exposed to similar risks, collect contribution (premium) from them on some
equitable basis and pay the losses (claims) to the unfortunate few who suffer.
 CLASSIFICATION OF INSURANCE

Insurance business can be divided into two broad categories, life and non-life.
Life insurance is concerned with making provision for a specific event happing to
the individual, such as death whereas non life (or general insurance) is more
commonly concerned with the provision for a specific event which affects a
property, such as fire, flood, theft etc. In this course we will only cover life
insurance. So, let us now move on to the definition of life insurance.

DEFINITION OF LIFE INSURANCE

According to the U.S. Life Office Management Association Inc. (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”.
 NEED FOR LIFE INSURANCE

Risks and uncertainties are part of life's great adventure -- accident, illness, theft,
natural disaster - they're all built into the workings of the Universe, waiting to
happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made
and natural calamities, well, at least be prepared for them and their aftermath.

Insurance is a contract between two parties - the insurer (the insurance company)
and the insured (the person or entity seeking the cover) - wherein the insurer agrees
to pay the insured for financial losses arising out of any unforeseen events in return
for a regular payment of "premium".

These unforeseen events are defined as "risk" and that is why insurance is called a
risk cover. Hence, insurance is essentially the means to financially compensate for
losses that life throws at people - corporates and otherwise.

The principle of insurance works on the concept of a large number of people

exposed to a similar risk making a contribution to a common fund. Those who
suffer losses due to the occurrence of these events are compensated for them from
this fund.
IN INDIA THESE ARE THE LIFE INSURANCE PLAYERS. WE
HAVE LISTED THEM IN ALPHABETICAL ORDER:

 Aviva life insurance  Bajaj Allianz

 Birla Sun Life insurance  HDFC Standard life insurance

 ICICI Prudential  Kotak life insurance

 Life Insurance Corporation of India Max New York life insurance

 Metlife insurance  Reliance life insurance

 Sahara India life insurance  SBI life insurance

 Shriram life insurance Co. Ltd.  Tata Aig life

INDIAN INSURANCE INDUSTRY

 Insurers
 Insurance industry, as on 1.4.2000,comprised mainly two players: when state
insurers:

Life Insurers
 Life Insurance Corporation of India (LIC)

General Insurers
General Insurance Corporation of India (GIC)
 (with effect from Dec’2000,a National reinsurer) Gic had four subsidiary
companies, namely (with effect from Dec’2000 these subsidiaries have been de-
linked from when parent company and made as independent insurance
companies.

 The oriental Insurance company limited

 the new India assurance company limited

 United India insurance company limited

 National Insurance Company Limited

 YEAR: 2000-2001: (From 2nd April ‘2000 to 31st December ‘2001)
Insurance industry in when year 2000-2001 had 16 new entrants,
namely

LIFE INSURERS:

S.No Registration No. Date of reg. Name of company

.
1 101 23.10.2000 HDFC Standard life Insurance Company
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI prudential
4 107 10.01.2001 Kotak Mahindra old mutual life
5 109 31.01.2001 Birla Sun Life
6 110 12.02.2001 Tata aig life insurance
7 111 30.03.2001 SBI life
8 114 02.08.2001 ING Vysya
9 116 03.08.2001 Bajaj Allianz
10 117 06.08.2001 MetlifeIndia Insurance Company Pvt.Ltd.

THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of
the IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.
 WHY PRIVATE INSURANCE?

 All the private companies have a lock in period of 10 yrs hence no

disinvestments possible.

 Minimum net worth of 500 Cr required for acquiring license with a minimum

paid up capital of 100 Cr in their insurance venture.

 Commitment to increase the paid up capital manifold in next five years.

 Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners,

best and the largest in the world – general cologne and Swiss reinsurance.

 Audit of accounts by at least 2 independent approved auditors each year.

 Products and pricing are cleared by IRDA, which looks into the financial

visibility of the product and the financial implication.

 IRDA is now proposing a Pvt. Policy Protection fund.

 Funds to be invested in only regulated and controlled areas with close to

80%being pumped into only gilts thereby assuring safety of funds.

 COMPANY PROFILE
Before insurance sector was opened to the private sector Life Insurance
Corporation (LIC) was the only insurance company in India. After the opening up
of Insurance sector in India there has been a glut of insurance companies in India.
These companies have come up with innovative and flexible insurance policies to
cater to varying needs of the individual. Opening up of the Insurance sector has
also forced the LIC to tighten up its belt and deliver better service. All in all it has
been a bonanza for the consumer.

Major Life insurance Companies in India are:

 HDFC Standard Life Insurance

 Aviva Life Insurance
 Bajaj Allianz
 Birla S un Life Insurance
 ICICI Prudential
 ING Vysya
 Kotak Mahindra
 LIC
 Max New York Life Insurance
 Metlife India Insurance
 Reliance Life Insurance
 SBI Life Insurance
 Shriram Life Insurance
 Tata AIG Life Insurance
 HDFC Standard Life Insurance

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd.,
India's largest housing finance institution and Standard Life Assurance Company,
Europe's largest mutual life company. It was the first life insurance company to be
granted a certificate of registration by the IRDA on the 23rd of October 2000.


Standard Life, UK was founded in 1825 and has experience of over 180
years. Companies. The company is rated as "very strong" by Standard &
Poor's (AA) and "excellent" by Moody's (Aa2).

HDFC Standard Life's cumulative premium income, including the first year
premiums and renewal premiums is Rs. 672.3 Crores for the financial year,
Apr-Nov 2005. So far the company has covered over 11,00,000 individuals
and has declared 5th consecutive bonus in as many years for its 'with profit'
policyholders.

Corporate Office :
2nd Floor, 'A' Wing
Trade Star Building
Junction of Kondivita & M.V.Road
 Andheri Kurla Road
Andheri East
Mumbai 400 093
Tel: 5551 6666, 2822 0055
Regd. Office:
Ramon House
H T Parekh Marg, 169, Backbay Reclamation
Churchgate, Mumbai - 400020
Tel: 2820282, 2836255.
 Visit HDFC Standard Life on: www.hdfcinsurance.com
 AVIVA LIFE INSURANCE, INDIA
Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of
UK and Dabur, one of India's leading producers of traditional healthcare products.
Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the
balance 74 per cent share.

Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world..

Aviva pioneered the concept of Bancassurance in India. Currently, Aviva has

Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara
Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind
Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and
Maharashtra and one regional Bank in Sikkim.

Aviva has 40 Branches in India (including rural branches) supporting its

distribution network. Through its Bancassurance partner locations, Aviva products
are available in 378 towns and cities across India.
Contact Address:

Registered Office:
2nd Floor Prakashdeep Building
7 Tolstoy Marg
New Delhi 110 001
Phone: 1800 180 2266
 Bajaj Allianz
Bajaj Allianz is a joint venture between Allianz AG one of the world's largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler
manufacturers in the world. Bajaj Allianz is into both life insurance and general
insurance.

Allianz Group is one of the world's leading insurers and financial services
providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries
with almost 174,000 employees. Bajaj group is the largest manufacturer of two-
wheelers and three-wheelers in India and one of the largest in the world.

Today, Bajaj Allianz is one of India's leading and fastest growing insurance
companies. Currently, it has presence in more than 550 locations with over 60,000
Insurance Consultants.
 Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla
Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian
multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia,
Philippines, Egypt, Canada, Australia and China.

Sun Life Assurance, Sun Life Financial's primary insurance business, is one of the
leading insurance companies of the world and ranks amongst the largest
international financial services organizations in the world. The Group has presence
in several countries such as Canada, United States, Philippines, Japan, Indonesia,
India and Bermuda.

Contact Information

Birla Sun Life Insurance Company Limited

Registered Office

2nd floor, B Wing Ahura Centre,

Mahakali Caves Rd,
Andheri (E),
Mumbai - 400 093

Visit Birla Sun Life on: www.birlasunlife.com

 ICICI Prudential Life Insurance
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 was established in 1955 to lend money for industrial development. Today, it
has diversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in the UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For 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.

Registered Office :
ICICI Towers
9th floor, Bandra-Kurla Complex
Mumbai - 400 051.
Tel: 494 3232

Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi Road
New Delhi - 110055. Tel: 601 3232
Email: wecoveru@icici.com
Web site: www.iciciprulife.com
 ING Vysya Life Insurance
ING Vysya Life Insurance Company Limited is a joint venture between Vysya
Bank and ING Group of Holland, the world's 4th largest financial services group,
with presence across 50 countries, and a heritage of over 150 years.

ING Vysya Life Insurance Company Private Limited entered the private life
insurance industry in India in September 2001. With in a short span of time ING
Vysya Life Insurance has registered an impressive growth. The company currently
has over 10,000 active advisors working from 75 branches (in 30 cities) across the
country and over 2300 employees.

Contact Address:

ING Vysya House, 5th Floor

22, M.G. Road
Bangalore 560001
Phone : 91-80-25328000
Fax : 91-80-25559764
E mail: contact@ingvysyalife.com

Visit ING Vysya Life Insurance on: www.ingvysyalife.com

 Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of
India's leading financial institutions and offers a range of financial services such as
commercial banking, stock broking, mutual funds, life insurance, and investment
banking.

Old Mutual was established more than 150 years ago and offers a diverse range of
financial services in South Africa, the United States and the United Kingdom. The
company is listed on the London Stock Exchange with a market capitalization and
has its headquarters in London.

Contact Address:

6th floor, Peninsula Chambers,

Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Lower Parel, Mumbai 400013.

Phone: 1800 22 8081

Visit Kotak Life Mahindra Old Mutual Life Insurance at:

www.kotaklifeinsurance.com
 Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run

the life insurance business in India with its Head Office at Mumbai. It has been
established by an act of the Parliament and started functioning from 1/9/1956.

LIC is the biggest insurance player in the country. Out of the total premium of Rs
3766 crore generated by the insurance industry through group business in the year
2005-06, LIC alone accounted for Rs 3051 crore.

In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of
lives insured, LIC has shown a growth of over 152%. In respect of number of
schemes, LIC has a growth of 2%. LIC's market share in number of individuals
covered and number of policies stands at 77% and 81%, respectively.
 Max New York Life Insurance

Max New York Life Insurance Company Limited is a joint venture between Max
India Limited, a multi-business corporate, and New York Life International, a
global expert in life insurance.

New York Life is a Fortune 100 company that has over 160 years of experience in
the life insurance business. Max India Limited is a multi-business corporate
dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic
Products businesses.

Max New York Life Insurance started its operations in India in 2000. It is the first
life insurance company in India to be awarded the IS0 9001:2000 certification.
Max New York offers customized products tailored to suit individual's needs. With
its various Products and Riders, there are more than 400 product combinations to
choose from. Today, Max New York Life Insurance has a network of 57 offices
spread over 37 cities all over India.
 MetLife India Insurance

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and
its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank,
Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini
Muthoothu.

Met Life Group has presence in America and Asia and has an experience of over
137 years in providing financial services. The MetLife companies are the number
one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in
force. MetLife serves 88 of the top one hundred FORTUNE 500 companies.
MetLife entered Indian insurance sector in 2001.

Contact Address:

MetLife India Insurance Co. Pvt Ltd.,

'Brigade Seshamahal',
5 Vani Vilas Road,
Basavanagudi, Bangalore - 560004

Email: metlifeindia@metlife.com
Phone: 1800 425 6969

Visit MetLife India Insurance at: www.metlife.co.in

 Reliance Life Insurance

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent
shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking
over AMP Sanmar Life provided Reliance Life Insurance a readymade
infrastructure and a portfolio.

AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the
Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices
across the country, 9,000 agents, and more than 900 employees.

Contact Address:

Reliance Life Insurance Company Limited,

Regd. Office: 9 Cathedral Road,
Chennai 600 086, India.
Ph: 2811 8400 Fax: 2811 7669.
Email : service@rcl.co.in
 SBI Life Insurance
SBI Life Insurance is a joint venture between the State Bank of India and Cardif
SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500
crore and a paid up capital of Rs 350 crores.

State Bank of India is the largest banking franchise in India. Along with its 7
Associate Banks, SBI Group has a network of over 14,000 branches across the
country, the largest in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's
leading Bank. BNP is one of the oldest foreign banks with a presence in India
dating back to 1860.

Contact Address :
Regd Office State Bank Bhavan,
Madam Cama Road,
Nariman Point,
Mumbai - 400 021

Mailing Address SBI Life Insurance Co. Ltd.,

2nd Floor, Turner Morrison Bldg,
G. N. Vaidya Marg,
Fort, Mumbai 400 023

Phone: 1800 22 9090

E-mail: info@sbilife.co.in
Visit SBI Life Insurance on: www.sbilife.co.in
 Shriram Life Insurance

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based
Shriram Group and the South African insurance major Sanlam.
The company launched its operations in India in December 2005.

Shriram Life has set a target of achieving a premium income of Rs 110 crore
during the first year of operations. While focusing largely on the strong network of
over 65,000 agents and distribution network of more than 550 branches, Shriram
Life is also contemplating bancassurance alliances with couple of banks.
 Tata AIG Life Insurance
Tata AIG Life Insurance Company Limited is a joint venture between Tata Group
and American International Group, Inc. (AIG). Tata Group is one of the oldest and
leading business groups of India. Tata Group has had a long association with
India's insurance sector having been the largest insurance company in India prior to
the nationalization of insurance. The Late Sir Dorab Tata, was the founder
Chairman of New India Assurance Co. Ltd., a group company incorporated way
back in 1919.

American International Group, Inc is the leading U.S. based international insurance
and financial services organization and the largest underwriter of commercial and
industrial insurance in the United States. AIG has one of the most extensive life
insurance networks in the world.

Contact Address:

Tata AIG Life Insurance Company Limited

Peninsula Towers, 6th floor,
Peninsula Corporate Park, Ganpatrao Kadam Marg,
Lower Parel, Mumbai - 400 013.
India
Tel: 1800-119966
Email: info@tata-aig.com

Visit Tata AIG Life Insurance on: www.tata-aig-life.com

 INSURANCE DISTRIBUTION IN INDIA APERSPECTIVE

DISTRIBUTION - THE KEY DIFFERENTIATOR

It has been two years since the Indian insurance market has opened up, and the
new entrants into the market have set up shop in every major city. The public
sector companies have already established themselves in the market. But there are
multiple challenges faced by these insurance companies, of which two are critical:

 Designing of products suiting the market

 Using the right distribution channel to reach the customer

While the companies have been quite successful in dealing with the first of these
challenges using the existing product features and leveraging the technical know-
how of their partners, most are still grappling with the right channel mix for
reaching potential customers.

This paper discusses the distribution channels from the perspective of the socio-
cultural ethos of the market and how these channels fit into it, along with where the
various companies face challenges and bottlenecks. Whenever any debate arises
about the intermediaries and distribution channels, the discussion veers to
technology and its impact on distribution. However, the authors believe that the
basic existential problems being faced by the channels in this market needs to be
looked into first, and then the question of enablers – technology, tools, training,
learning etc. -- is to be taken up.
 CHALLENGING SCENARIO DEMANDING ROLE
TRANSFORMATION OF INTERMEDIARIES

Insurance has to be sold the world over, and the Asian Market is no exception. The
touch point with the ultimate customer is the distributor or the producer (as they
are known in certain markets), and the role played by them in insurance markets is
critical.

It is the distributor who is makes the difference in terms of the quality of advice for
choice of product, servicing of policy post sale and settlement of claims. In the
Asian markets, with their distinct cultural and social ethos, these conditions will
play a major role in shaping the distribution channels and their effectiveness.

In today's scenario, insurance companies must move from selling insurance to

marketing an essential financial product. The distributors have to become trusted
financial CONSULTANTS for the clients and trusted business associates for the
insurance companies.

This calls for leveraging multiple distribution channels in a cost effective and
customer friendly manner. For example, in the developed markets producers
(brokers and agents) form the major channels of distribution, while the web as a
complementary channel is catching up slowly. According to a Forrester survey,
88% of the Life insurance executives responding identified agents as the primary
channel of distribution.1

The distinction of channels in the developed markets is: personal distribution

systems and direct response systems. Personal distribution systems include all
channels like agencies of different models and brokerages, bancassurance, and
work site marketing. Direct response distribution systems are the method
whereby the client purchases the insurance directly. This segment, which utilizes
various media such as the Internet, telemarketing, direct mail, call centers, etc., is
just beginning to grow.

DISTRIBUTION SCENARIO IN THE INDIAN MARKET

In today's Indian insurance market, the challenge to insurers and intermediaries is
two-pronged:

 Building faith about the company in the mind of the client

 Intermediaries being able to build personal credibility with the clients

Traditionally tied agents have been the primary channels for insurance distribution
in the Indian market; the public sector insurance companies have their branches in
almost all parts of the country and have attracted local people to become their
agents. The agents are from various segments in society and collectively cover the
entire spectrum of society. A person who has lived in the locality for many years
sells the products of the insurance company with a local branch nearby. This
ensures the last mile touch point being closer to the customer. Of course, the
profile of the people who acted as agents suggests they may not have been
sufficiently knowledgeable about the different products offered, and may not have
sold the best possible product to the client. Nonetheless, the customer trusted the
agent and company. This arrangement worked adequately in the absence of
competition.

In today's scenario agents continue as the prime channel for insurance distribution
in India, as is the case in most markets, supported by call centers to a small extent.
Almost all the new players follow this model primarily because the regulations for
other channels are yet to be put in place.
However there is great excitement in the industry over the impending broker
regulations, and companies are planning possible channels in their enthusiasm to
increase volumes. The belief that all these channels will grow and seamlessly
integrate to bring in business seems a fallacy.

What has emerged is a much more difficult and evolving market scene with
existing players, more new players coming in, and global marketing practices and
ideas being tested. But none of this has changed the fundamental character of the
market, which we believe will take more time than expected.

WHAT SHOULD THE COMPANIES LOOK AT?

Basically companies have to take a look at the intermediaries they are using,
whether it is optimal to use them, and what are the alternatives?

The new companies have attempted appealing only to the middle, upper middle
and elite classes in the major cities. Contrasted with Public sector insurance
companies, with their offices across the country, the new companies have miles to
go before they reach anywhere. They must overcome the mindset of the customer
that life insurance is Life Insurance Corporation of India (LIC) and general
insurance is General Insurance Corporation of India (GIC) if they hope to grow in
the market. Meanwhile, the public sector companies are going to great lengths to
revamp their image to look and feel more contemporary.

Both the public and new private sector companies are fighting their own battles
from the perspective of customer perception management:
FOCUS ON MULTIPLE DISTRIBUTION CHANNELS

Though a multi-channel strategy is better suited for the Indian market as well, it is
important to keep in mind that this market is really a conglomeration of multiple
markets. Each of the markets within this conglomeration requires a different
approach. Apart from geographical spread the socio-cultural and economic
segmentation of the market is very wide, exhibiting different traits and needs. Let
us look at the various insurance distribution channels and the challenges faced by
them from these perspectives.

AGENTS

Today's insurance agent has to know which product will appeal to the customer,
and also know his competitor's products in the same space to be an effective
salesman who can sell his company, the product, and himself to the customer. To
the average customer, every new company is the same. Perceptions about the
public sector companies are also cemented in his mind.

The new companies are looking for educated, aware individuals with marketing
flair, an elite group who can be attracted only with high remuneration and the lure
of a fashionable job, all of which may not be possible in this business with its price
pressures and the complexity of selling insurance. Unable to attract this segment,
they have started easing recruitment conditions as against the stringent norms they
had earlier, thereby diluting the process.
INVISIBLE INSURER

In this model, the insurance company or its representative is not the entity
marketing the products. The insurance cover is sold by an automobile /credit card
company as an add-on product leveraging the brand of the retailer. The risk is
carried by the insurance company, which underwrites it. . Products like creditor
insurance, automobile insurance, and credit card related insurance could be
distributed using this channel. This model can be adopted in all market segments
for the lines of business mentioned. It is already prevalent in some areas like credit
card insurance and crop insurance for agricultural loans.
 ABOUT THE COMPANY:

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd.,
India's largest housing finance institution and Standard Life Assurance Company,
Europe's largest mutual life company. It was the first life insurance company to be
granted a certificate of registration by the IRDA on the 23rd of October 2000.

Standard Life, UK was founded in 1825 and has experience of over 180 years.
Companies. The company is rated as "very strong" by Standard & Poor's (AA) and
"excellent" by Moody's (Aa2).

HDFC Standard Life's cumulative premium income, including the first year
premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-
Nov 2005. So far the company has covered over 11,00,000 individuals and has
declared 5th consecutive bonus in as many years for its 'with profit' policyholders.

The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money,
and set the standards in the industry'. 'The most obvious choice for all'.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard
Life Assurance Company, a leading provider of financial services from the United
Kingdom. Both the promoters are well known for their ethical dealings and
financial strength and are thus committed to being a long-term player in the life
insurance industry.
We attribute the success of our company to our people, who are our most important
asset. We believe they are a key fact of the company and it is their contribution that
has enabled us to achieve our current status. Since they deserve the best, our efforts
have been to provide them with the best environment, culture and development
opportunities possible.

OUR WORK CULTURE

HDFC Standard Life Insurance is known for its stimulating environment with high
levels of motivation, empowerment and recognition. We encourage an open and
informal culture that values integrity, commitment, teamwork and excellence in
customer service. We adopt a policy of strong learning and development
initiatives, which promotes day-to-day learning as well as decision-making. We
believe our strength is our people, so we endeavor to surpass their expectations and
give them the best possible work environment and benefits that match the best in
the industry .
OUR CORE VALUES
 Integrity
 Innovation
 Customer centric
 People Care
 Teamwork “One for all and all for one”
 Joy and Simplicity

MISSION
 Customer service of highest order
 Value for money for customers
 Professionalism in carrying out business
 Innovative products to cater different needs of different customers
 Use of technology to improve service standards
 PAST PERFORMANCE & FUTURE PROSPECTS

Analysis of performance of HDFC Standard life in financial year 2006-2007

The company has achieved a total sum of rs 1,266 cr on its individual insurance,
individual pensions and group insurance business nationally and has covered
44.311 lives. The total sum assured in the first quarter of the current financial year
is Rs 800 cr. HDFC Standard life is also the first new life insurance company to
declare a bonus on its with profits policies. The company has declared a lower
interim bonus of 7 % on single premium policies and 3.75% on regular premium
policies.
HDFC Standard life has declared a non-recurring founder’s bonus.

The company has earned Rs 789 crore from its individual life insurance and
pension business, of which 20% has come from the HDFC personal personal
pension plan, which was introduced in February 2004. Of the individual policies,
endowments from 52%, while single premium policies brought in business worth
Rs 10crores
 PARTICULARS FY 2004-05 FY 2005-06
Rs 298 Rs 687
Total premium crores crores
Rs Rs30000
Insurance coverage 5000crores crores
Rs 132 Rs 486
New business premium crores crores
growth rate 260% 132%
number of offices in India 44 104
10500(appro
number of fc x) 23000
Group business insurance 10,000
coverage 2000 crores crores
Lives insured in groups
business 22,000 lives 200,000 lives

WHAT ARE THE PRODUCTS OFFERED?

HDFC Standard Life Insurance offers you a range of innovative life insurance
plans.  
Through an appropriate combination of the basic plan and optional benefits, we
can create the right insurance solution for you.
 DIFFERENT PLANS AND THEIR BENEFITS

Benefits

Endowment Assurance Life Insurance + Savings + unto 4 optional

benefits

Money Back Life Insurance + Savings + unto 4 optional

benefits

Single Premium Whole of Life Investment + Life Insurance

Term assurance Life Insurance at an affordable price + unto 2

optional Benefits

Loan Cover Term Assurance Life Insurance for loan cover protection + 1
optional benefit

Personal Pension Plan Savings + Retirement Planning

IN WHICH CITIES ARE OUR BRANCHES LOCATED?

HDFC Standard Life Insurance is presently operational in Ban galore, Bhopal,

Chandigarh, Chennai, Delhi, Allahabad, Hyderabad, Indore, Jaipur, Kolkata,
Kanpur, Lucknow, Ludhiana, Mumbai, Pune , Rajkot, Surat, Thane and
Vadodara ,panjim ,Nasik and many more places.
 OUR FINANCIAL CONSULTANTS
Our certified financial consultants will be glad to explain our plans to you and to
create the right insurance solution to meet your needs. They have undergone
detailed training and have successfully passed a written examination held by the
Insurance Institute of India before being licensed to sell our plans.

INDIVIDUAL PRODUCTS
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers
a range of products and invites you to choose the one that suits you best.

WITH PROFITS ENDOWMENT ASSURANCE:

This policy provides a combination of saving and life insurance. The sum assured
plus any bonuses will be payable at the end of the term or on death if earlier. Your
commitment is to pay a level premium regularly throughout the life of the policy.
The Endowment Assurance can be customized to meet your needs by adding any
combination of up to 4 rider benefits.

WITH PROFITS MONEY BACK:

This policy provides a combination of savings, regular cash payments and life
insurance. Over the course of the contract, a proportion of the sum assured will be
paid at regular intervals. The sum assured plus any bonuses will be payable on
death before the end of the contract. On survival to maturity, you will get the sum
assured plus any bonuses less the regular payments already made. Your
commitment is to pay a level premium regularly throughout the life of the policy.
The Money Back can also be customized to meet your needs by adding any
combination of up to 4 rider benefits.

SINGLE PREMIUM WHOLE OF LIFE

A.1 TERM ASSURANCE PLAN:

Under the Term Assurance plan, a sum assured is payable in case of death of the
life assured during the term of the contract. One can choose the lumpsum that
would replace the income lost to one's family in the unfortunate event of one's
death. The Term Assurance Plan comes to you at a minimal cost and is well suited
for the value-conscious customer. The Term Assurance Plan can also be
customized to suit your needs by adding optional rider benefits.

A.2 LOAN COVER TERM ASSURANCE:

The Loan Cover Term Assurance plan provides a lumpsum on death of the life
assured during the term of the plan. The lumpsum will be a decreasing percentage
of the initial sum assured. It is an affordable plan that has been designed to help
your family repay the outstanding loan in case of your unfortunate death.
B. PERSONAL PENSION PLAN

The Personal Pension Plan 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 is 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.

C. CHILDREN'S PLAN

The future of your child is most important to you. You need to plan today to ensure
a bright future for your child, whether it is education, marriage or establishing a
professional career. To help you save for your child, we at HDFC Standard Life,
present the Children's Plan.

The plan is affordable, customized to your needs, and above all, enables you to
realise your dreams for your child. This plan is well suited for the value-conscious
customer, and above all, for every loving parent. This plan can also be chosen by
grandparents, other relatives or any adult for the benefit of a child.
D. Endowment Assurance (EA) Plan
What is an 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 lumpsum payment in case
of the unfortunate death of the life assured within the term of the policy.
 Provides a lumpsum payment to the life assured on survival up to maturity. The
lumpsum mentioned is the basic sum assured plus any bonus additions.

WHY SHOULD YOU BUY THIS PRODUCT?

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 lumpsum in the event of your unfortunate death
during the term of the policy.
 WHAT OPTIONAL BENEFITS ARE AVAILABLE WITH THIS
PLAN?

You can add the following optional benefits to customise your policy to suit your
needs:

Critical Illness (CI) Benefit provides an additional amount equal to the basic sum
assured on diagnosis of any one of the 6 common critical illnesses *. 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.

Double Sum Assured (DSA) Benefit provides an additional amount equivalent to

the basic sum assured 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.

(a)Cancer, (b)Coronary artery bypass graft surgery, (c) Heart attack, (d) Kidney /
Renal failure, (e)Major organ transplant (as recipient) and (f)Stroke.
 DOES ENDOWMENT ASSURANCE PLAN OFFER YOU TAX
BENEFITS?
Tax benefits described in Section 88, Section 80D** and Section 10 (10D) of the
Income Tax Act are applicable. Applicable to premiums paid for CI and WOP.
**Applicable to premiums paid for CI and WOP.

ARE YOU ELIGIBLE?

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                                              Basic Policy with optional
benefits
                                                                                                                           
CI                 DSA                 ADB            WOP
Min. age at entry                                        12                                              
18                   18                    18                 18
Max. age at entry                                       60                                              
55                   60                    55                 50
Max. age at expiry                                     75                                              
70                   75                     65                 60
Min. term: 10 years;   Max. Term: 30 years

E. Joint Life Insurance Policy, India

Joint life insurance policies are similar to endowment policies as they too offer
maturity benefits to the policyholders, apart form covering risks like all life
insurance policies.
But joint life policies are categorized separately as they cover two lives
simultaneously, thus offering a unique advantage in some cases, notably, for a
married couple or for partners in a business firm.

Under a joint life policy the sum assured is payable on the first death and again on
the death of the survivor during the term of the policy. Vested bonuses would also
be paid besides the sum assured after the death of the survivor. If one or both the
lives survive to the maturity date, the sum assured as well as the vested bonuses are
payable on the maturity date. The premiums payable cease on the first death or on
the expiry of the selected term, whichever is earlier.

F. GROUP INSURANCE, INDIA

Group insurance offers life insurance protection under group policies to various
groups such as employers-employees, professionals, co-operatives, weaker
sections of society, etc. It also provides insurance coverage for people in certain
approved occupations at the lowest possible premium cost.

Group insurance plans have low premiums. Such plans are particularly beneficial
to those for whom other regular policies are a costlier proposition. Group insurance
plans extend cover to large segments of the population including those who cannot
Afford individual insurance.
A number of group insurance schemes have been designed for various groups.
These include employer-employee groups, associations of professionals (such as
doctors, lawyers, chartered accountants etc.), members of cooperative banks,
welfare funds, credit societies and weaker sections of society.
G. UNIT LINKED INSURANCE PLANS (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the
benefits of protection and flexibility in investment. The investment is denoted as
units and is represented by the value that it has attained called as Net Asset Value
(NAV). The policy value at any time varies according to the value of the
underlying assets at the time.
[
ULIP provides multiple benefits to the consumer. The benefits include:

 Life protection
 Investment and Savings
 Flexibility
 Adjustable Life Cover
 Investment Options
 Transparency
 Options to take additional cover against
 Death due to accident
 Disability
 Critical Illness
H. MONEY BACK PLAN
To sum a wise man had said that the time to mend the roof is when the sun is
shining. This is applicable to life insurance too. Today as the breadwinner you are
able to maintain a decent standard of living for yourself and your family. If you
want enough bread for the family even after the death of the breadwinner, you
should look at the Single Premium Bond. In other cases, life insurance is an absolute
necessity. Have a look at other products.

Money Back Plan

Total Policy Number of years from policy date
Term 5 10 15 20 25
10 40%
15 30% 30%
20 25% 25% 25%
25 20% 20% 20% 20%
30 15% 15% 15% 15% 15%
Endowment Assurance Plan
Basic
Age Additional Premium
Policy
Premium
Years For Optional benefits (Rs.)
(Rs.)
CI DSA ADB WOP
20 4771 304 322 136 236
30 4835 442 388 144 300
40 5098 925 641 156 475
50 5813 1890 1357 - -

BENEFIT AREA
CUSTOMER
SEGMENT PROTECTION INVESTMENT SAVINGS PENSIONS;

Individuals term Assurance Single premium bonds Endowment / Money

Back Pensions plans, annuities Corporates Group term Insurance Gratuity
Superannuation

MARKET SEGMENTS

The life insurance and pension business has two distinct customers segments -
individuals and corporates. In case of the retail business for individuals, the 4 sub-
segments are - protection, investment, savings and pension. Apart from the existing
leader LIC, new companies such as HDFC Standard Life, TATA AIG, ICICI
Prudential and more will seek to be present across all the segments of the market.

Among the retail products for individuals, pure risk protection products have been
introduced by some of the new life insurance companies in the market. As these
products have no savings component to it, the premiums are very low compared to
other products. Investment products provide long term investment growth and
insurance cover. This segment is growing rapidly. Savings products like
Endowments and Money-Backs provide a combination of protection and
investment benefits. The last segment of pension includes products that are aimed
at offering customers an income during their retirement years.

In case of the group business, there are three sub-segments - protection, statutory
savings and pension. Group insurance products are taken to provide low cost life
insurance cover to a group of people. Group insurance can be taken to provide low
cost life insurance cover as part of employee benefit packages to motivate
employees or to cover the housing or vehicle loan given by employer to employee.
It can also be used as a substitute for the statutory EDLI subject to approval by the
Regional Provident Fund Commissioner. The statutory savings segment essentially
comprises of the gratuity products for companies. The pension segment will
include products like group superannuation, which will enable a company to
benefit from the actuarial, investment and operational expertise of a specialist
company to manage its superannuation funds.
S.W.O.T
ANALYSIS
OF

STRENGTHS
 Premiums are increasing and so are commissions.
 The variety of products is increasing.

 Transparency in working is followed.

 Fund charges are less i.e. 0.8%
 Stronger financial base.
 Employee centric organization.

WEAKNESSES

 Strong competitors like LIC, ICICI Pru, Birla Sun Life etc.
 Premium is priced high as compared top the market leader.
 Infrastructure cost is high.
 Less expenditure on promotion.
 Products not customized for lower segment.

OPPORTUNITIES

 The ability to cross sell financial services barely being tapped.

 Technology is improving to the point that paperless transactions are
available.
 The client's increasing need for an "insurance consultant" can open new
ways to service the client and generate income.

THREATS

 Government regulations on issues like health care, mold and terrorism can
quickly change the direction of insurance.
  The increasing expenses and lower profit margins.

RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or

suggested solutions; collecting, organizing and evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating Hypothesis.

In short, the search for Knowledge through Objective and Systematic method of
finding solutions to a problem is Research.

RESEARCH OBJECTIVE

 To Analyse the Recruitment of Financial consultants for HDFC STANDARD

LIFE,

 To know the clients interest towards the part time business opportunity of

Insurance Advisor

To make people aware about the insurance benefits provided by HDFC to its
customers

The main objectives of this study are:

 Working of Insurance Plans
 SWOT analysis of the product sold
 Comparative study with the competitors

RESEARCH DESIGN: -

Type of Research: - Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different kinds.
The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.

DATA SOURCES
There are two types of data.
PRIMARY DATA: The data that is collected first hand by someone
specifically for the purpose of facilitating the study is known as primary data. So in
this research the data is collected from respondents through questionnaire.

SECONDARY DATA.
For the company information I had used secondary data like brochures, web site of
the company etc.
The Method used by me is Survey Method as the research done is Descriptive
Research.

RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

PHASE 1: DATA COLLECTION

Collection of data or leads is the first thing before making a customer a client of
HDFC STANDARD LIFE. I collected data by five ways:

1 Through Yellow Pages

2 Through visiting cards

3 Through Telephone Directory

4 Through Internet

5 Through Newspaper

After collection of data my second job was to make cold calls and door-to-door
marketing. Which I did by making Tele calls from the Company and went to
different offices as well as to the court clients about latest offer of part time
Business opportunity as a life advisor. In all, I collected data of about 153
customers. So Data Collection Means Looking for the Suspect who May or May
Not be interested in the Business Proposal.

PHASE 2: FINDING OUT OPPORTUNITIES

Data collection and cold calling are just the primary steps in marketing of any
product the real thing is to find out opportunities out of those leads which one has
generating. I got many opportunities where the customer was interested in
becoming the client of mine and I use to fix meetings with these customers so that
I can tell them the details of our Part time Business Opportunity. In all I got 25
opportunities where the customer was interested in becoming the Life Advisor. So
these 25Clients were those Suspects who were converted into Prospects of
becoming a Life Advisor.

PHASE 3: NEGOTIATION AND CLOSING THE DEAL

After meeting with the customers and negotiating with them I tried to convince
them to become the Insurance Advisor of the best Private Life insurance Company
which already have more than 30,000 Insurance CONSULTANTS. And through
this interaction I came to know about the one to one interaction skills. And at the
end I closed the Deal by convincing about 12 Clients for becoming the Corporate
Agents of HDFC STANDARD LIFE within a period of 8 weeks.

AREA ASSIGNED
The Area Assigned to me was Allahabad city and village both. Out of 12
CONSULTANTS which I have recruited 5 are from village, 7 are from different
urban areas of Allahabad as Allahapur, Civil Lines, Naini, and Mundera. I use to
fix meetings by making Tele calls and then go to the residence or the office of the
clients.

During my training I enjoyed both the in-house on job training as well as the
fieldwork as I was having bike I didn’t find much difficulty in commuting from
one place to other. I agree sometimes it was very frustrating when I use to go to the
residence of my client and he refuses to talk to me or he was not present at the
given address. But later I realized that life is a journey and you have to move on
and on .
 TARGET ASSIGNED

The Target assigned to me was to make Recruitment of Insurance

CONSULTANTS for HDFC STANDARD LIFE. The Tenure of the project was of
8 weeks during which the target was to recruit 5 Retail CONSULTANTS or 3
HNI(High Net Worth Individuals) Profile. But Due to God’s Grace, My Parents
Guidance I overachieved the target and Recruited 12(twelve) Insurance
CONSULTANTS within 8 Weeks. In My Database of 12 Insurance
CONSULTANTS 5(Five) are HNI Clients.

My Channel Development Manager also congratulated me to become the Topper

among the summer trainees. He Told Me that the first job of a Unit Manager in
HDFC STANDARD LIFE is Recruitment of Insurance CONSULTANTS and that
I have done a great Job.
 FINDINGS DATA ANALYSIS
Name:
Address:

Telephone No.:
Occupation:

Salaried Self Employed Unemployed

Business Others (specify) _____________

Office Address:
Family details:
Q1. How many members do you have in your family?

2 3 4 5 6 other (Specify)

30

25

20
PERCENTAGE

15 percentage

10

0
1 2 3 4 5 6 more
than 6
No. OF FAMILY MEMBERS
Q2. Net Family Income from all sources (monthly in Rs.)

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

PERCENTAGE DIVISION

60
50
40
30 PERCENTAGE DIVISION
20
10
0
BELOW 10000- 20000- ABOVE
10000 20000 40000 40000
INCOME OF PEOPLE
Q3. How much do you invest yearly in Insurance Plans?

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

PERCENTAGE OF PEOPLE

40
35
30
25
PERCENTAGE OF
20
PEOPLE
15
10
5
0
BELOW 10000-20000 20000-40000 ABOVE
10000 40000
ANNUAL INVESTMENT OF PEOPLE
Q4. Are you insured, if yes then?

LIC ICICI PRU. HDFC SLIC AVIVA BIRLA SUN LIFE

METLIFE TATA AIG OTHERS (SPECIFY)______________

GRAPH--1

HDFCSLIC,
LIC, 10
15

ICICI PRU,
10
SBILIFE, 15

HDFCSLIC SBILIFE ICICI PRU LIC

Q5. Are you satisfied with the services of your Insurance Co?

Very Good Good Average Poor

14
12
10
8 SATISFIED
6 NOT SATISFIED
4
2
0
Q6. What kind of Life Insurance cover you have taken?

ULIP MEDICLAIM

PENSION OTHER ______________

GRAPH--3.1

LIC, 5 HDFCSLIC,
10

ICICI PRU,
10 SBILIFE, 5

HDFCSLIC SBILIFE ICICI PRU LIC

Q7. Have you invested in any sources of investment like?

BONDS MUTUAL FUNDS & SHARES POST OFFICE

OTHER (specify) __________________

PERCENTAG OF PEOPLE

40
35
30
25
20 Series1
15
10
5
0
OTHER
BONDS

POSTOFFICE
FUNDS&SHARE
MUTUAL

S
Q8. Are you satisfied with the return that your company gives?

YES NO

60

50

40

30 Series1

20

10

0
YES NO
Q9. Do you know about HDFC STANDARD LIFE ?

YES NO

120

100

80

60 Series1

40

20

0
YES NO
Q10. Have you ever seen the advertisement of HDFC STANDARD LIFE.?

YES NO

100
90
80
70
60
50 Series1
40
30
20
10
0
YES NO
 LIMITATIONS

The geographical area was very much limited to residential area & so the results
are not particularly reflection of the current behavior.

 Biases and non-cooperation of the respondents.

 Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.

 Most of the people in India take their policies in the period preceding
March(for tax saving purposes) & so the response to initial contacts were not
all encouraging and that has been the primary reason in the inability to
quantify the results large enough so as to deduce any relevant outcomes.

 People are not interested in giving personal opinion.

 CONCLUSION

1. LIC enjoys credibility over other private players in the industry

2. People look for security over returns in market insurance plans

3. Lifetime is the most popular product among the people who are aware

about HDFC SLC products.

4. People are now showing more interest in ULIP as compared to some of

the traditional plans.

5. HDFC SLC has to counter the distribution network of LIC

6. The product profile of HDFC SLC is not very comprehensive

 SUGGESTIONS

Although HDFC STANDARD LIFE is such a big brand that I don’t have much
authority to give suggestions but still I would recommend some suggestions from
my side, these are:

 HDFC STANDARD LIFE should lower its fees for becoming Insurance

Advisor.

 It should focus more on employee satisfaction, by giving more fringe benefits.

 It should give proper Product knowledge and training to the trainees before

assigning them targets

 Company should focus more on Advertising of its products and Promotion.

 Company should also increase its Branches all over India to expand its business

and also to reach rural market.

 HDFC STANDARD LIFE should take feedback from the employees and

CONSULTANTS about the development of company’s growth i.e. more

decentralization.
 RECOMMENDATIONS

More emphasis should be on promotional activities.

 Plenty of advertisement should be done through T.V, Newspaper and Radio

as these media’s are having maximum recall value.

 Total financial planning and advice should be given to every customer.

 More business opportunity seminars should be conducted to make people

aware of the offer given.

 The company should quite frequently send their agent to the customer so
that they should be aware of the latest offer.

 The company should attempt to open more and more of its branches in the
country so as to promote their product publicity.
 ANNEXURES

QUESTIONNAIRE:

Q.1 Do you have any life insurance policies?

Yes No

If Yes: -
Name of the Company ________________
Name of the plan _________________
Annual Amount of premium _________________
Term of plan _________________
Are you satisfied with present insurer?
A) YES B) NO

Q.2 Which are the main issues that you take into consideration while

Purchasing any life insurance policy?

A) Security
B) Returns
A) Tax saving
B) Others please specify_________

Q.3 Are you aware of Unit Linked Insurance Plans offered by various
 companies in India?
A) ICICI B) OM KOTAK MAHINDRA
C) TATA AIG D) BAJAJ ALLIANZ
E) LIC F) BIRLA SUNLIFE
G) MAX NEW YORK

Q.4 Do you have a life insurance policy from HDFC Standard Life
Insurance?

a) Yes [ ] b) No []

Q.5 If yes, which policy have you taken?

_________________________________________________

Q.6 Does this policy satisfy your financial needs? (Please rate on
the scale of 1 to 10 with one being least satisfied)
Q.7 Please express your opinion for the premiums paid for the above
policy?

a) Very high []

b) High []

c) Moderate []

d) Low []

e) Very Low []

Q.8 How do you come to know about this policy? (Please tick).

a) Advertisements []

b) Friends and relatives []

c) Direct selling agents [ ].

d) Others (please specify)_____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with
this policy? (Please give appropriate details about it).

_____________________________________________________________
_____________________________________________________________
10. Are you satisfied with the incentives associated with your policy?

a) Highly satisfied [ ].

b) Satisfied [ ]

c) Moderate [ ]

d) Unsatisfied [ ]

e) Highly Unsatisfied [ ].

Q.11 If you are given a choice, which one you take:

A) ICICI
B) OM KOTAK MAHINDRA
C) TATA AIG
D) BAJAJ ALLIANZ
E) LIC
F) SBI

Q12 What other plans or flexibility you expect from Insurance companies?

A) More returns
B) Complementary gifts
C) Investment Pattern
 BIBLIOGRAPHY

WEBSITES

http:// www.hdfcstandardlife insurance.com

http:// www.standardlife.com

http://www.hdfc.com

http://www.sebi.com

http://www.nse..com

MAGAZINES

 Mehra,Puja, “India Today (27th MAY’2007) – PAGE 43

 Sinha, Prabhakar, “The Times Of India” (16thMAY’2007) – PAGE 1

 “Brunch”(16th July 2007)

 WORDS OF THANKS

In the end I would like to all those who directly or indirectly help me

to complete this project successfully.I also would like to thanks to all

those readers who study this project report in future. I welcome any

type of comments or suggestions from the readers.

Thanking you.