A

REPORT ON

Recruitment of Business Leaders and Financial

Consultants
And
Comparative analysis of different Business Leader
Channels with other Life
Insurance Companies in India.

By

ANKIT

(Enrollment No. 10BSP1183)

ORGANISATION NAME: HDFC LIFE.

1
 A

REPORT ON

Recruitment of Business Leaders and Financial

Consultants
And
Comparative analysis of different Business Leader
Channels with other Life

Insurance Companies in India

By:

ANKIT (Enrollment No. 10BSP1183 )

Organization Name: HDFC LIFE.

Towards the Partial Fulfillment of the Requirements

of PGPM Program

of

IBS GURGAON

Date of Submission: 8th APRIL 2011

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 AUTHORISATION

This is to certify that the Project Report has been

submitted as partial fulfillment of the requirement
of PGPM Program of IBS, GURGAON. The report is
made purely for academic purpose. The work has
been completed under the guidance of Prof.
SOMBALA (IBS, GURGAON).

Faculty Guide: Prof. SOMBALA (IBS, GURGAON)

Date: 08th April 2011

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 ACKNOWLEDGEMENT

The Project undertaken by me is the result of not only my

hard work but many more people who have helped me in
making of the project.

I would like to take this opportunity to thanks all those

who have made working on this project feasible for me. I
would first like to thank ‘HDFC LIFE’ for providing me
with the opportunity to work with them.

I would also like to extend my sincere gratitude to my

company guide, Mr. Gaurav gupta, Branch manager,
HDFC LIFE, for allowing me to work under his able
guidance.

Also, I would like to thank my faculty guide Prof.

Sombala (IBS Guragaon) for her able guidance and
support without which I would not really have
accomplished these goal junctions in my career path.

Last but not the least; I would like to thank all my seniors
and friends who helped me in every possible way to make
this project a success.

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 TABLE OF CONTENT

ABSTRACT
Project is about recruitment of financial consultants and business leaders
for the company. For the recruitment of Financial Consultants, I have to
get in touch with talented and high performing people who are ready for
pure sales and financial advisor profile also we have to make our efforts
to persuade them to do business. For the recruitment of business leaders
we have to meet potential leaders in financial advisory sector like
Chartered accountants, Company secretaries, Direct Selling Agents and
well established Financial Consultants. I have to also compare the
working of business leader channels of different life insurance company.
The field of project is in the life insurance industry. Life insurance is a
contract between the policy owner and the insurer, where the insurer
agrees to pay a designated beneficiary a sum of money upon the
occurrence of the insured individual's or individuals' death or other event,
such as terminal illness or critical illness. In return, the policy owner
agrees to pay a stipulated amount. Life insurance has various products
designed for its customers. The two main category of financial designed
are the traditional plan and the ULIP plan. In traditional plan, customers
can either decide what amount (known as the sum assured) they would
require after a period of time or how much they are willing to invest and
the sum assured is calculated accordingly. In this plan the policy holder
receives a bonus every year. In this project we would be looking to hire
people for the position of financial consultant and business leader.
Financial consultants are licensed agent from IRDA and he/she will
directly sell the financial products to its customers. Their area of
responsibility is to look for leads, tell them about the various products
offered by HDFC and assist customers in filling up the required
documents for the purchase of an insurance policy. The financial
consultant receives a commission on every policy they sell.

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Business leaders are a level above the financial consultant. Generally,
they are the people who have high contacts like CAs and CSs and others
who are related with insurance sector and have convincing personality.
They receive commission based on the work of financial consultant and
usually have a team of Financial Consultant working under them. Their
responsibility is to provide them proper guidance, generate potential lead
and tell them about the proper strategies that should follow for particular
work planned. We have to search for that kind of person through different
means and convince them to join us as a business leader.

INTRODUCTION
HDFCSLIC stands for Housing Development Finance corporation
standard life insurance company. It is incorporated in 1977 as a public
limited company with the specialization in provision of housing finance
to individuals’ cooperative societies and the corporate sector. One
significant matter about the HDFC is that it is first private sector retail
housing finance company and it is listed on both BSE and NSE.

Standard life insurance is founded in 1825. Standard life was

reincorporated as a mutual assurance company in 1925. It’s largest
mutual life insurance company in Europe.

For the joint venture between HDFC and SLIC, the discussion
commenced in January 1995 and the agreement signed in October 1995.
Further joint venture agreement renewed in October 1998. In January
2000 the life insurance project teem established in Mumbai. At last the
company officially incorporated in 14th August 2000. It is the matter of
great happiness for HDFCSLIC is that it is the first private sector life
insurance company to be granted a certificate of registration in 23rd
October, 2000. Today 75% shareholding in the hand of HDFC and
Standard life has 25% shareholding in this joint venture.

HDFC Standard Life continues to have one of the widest reaches among
new insurance companies with 568 branches servicing customer needs in
over 700 cities and towns. The company has a strong presence in its
existing markets with a base of 2,00,000 Financial Consultants.

Vision and values:

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

For retention in the market and highest market share, we need

trust of our customer. The customer should trust on our policies, services,
employs and they should be friendly with us. It wants to live in the eye
and heart of the customer. It wants to give them the easiest deal so that
they can be understood the terms and policies. As we know that profit is
the main aim of any business but it think not only about his profit but also
profit of the customer. It wants to be the choice of all people on the basis
of trust of customer, delivering high value to the customer, and deliver of
best value of the money

Mission:

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

IRDA (insurance regulatory and development authority):

The Government of India has enacted the Right to Information Act, 2005
which has come into effect from October 13, 2005. The Right to
Information under this Act is meant to give to the citizens of India access
to information under control of public authorities to promote
transparency and accountability in these organizations. The Act, under
Sections 8 and 9, provides for certain categories of information to be
exempt from disclosure. The Insurance Regulatory and Development
Authority (IRDA) is a public authority as defined in the Right to
Information Act, 2005. As such, the Insurance Regulatory and

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Development Authority is obliged to provide information to members of
public in accordance with the provisions of the said Act.
Authority held by IRDA:
The right to information includes access to the information which is held
by or under the control of any public authority and includes the right to
inspect the work, document, records, taking notes, extracts or certified
copies of documents / records and certified samples of the materials and
obtaining information which is also stored in electronic form.
IRDA also maintains the website which provide all updates of insurance
sectors and all information released by IRDA is also updates on this
website.The information includes:

1) Acts and Regulations

2) Information related to insurers/ reinsure’s, agent training institutes,
Appointed actuaries
3) Information related to Surveyors, Third party administrators,
Insurance brokers and corporate agents.
4) Information relating to insurance counsels.
5) Annual report and IRDA journals.
6) Press releases
Complaints against Insurance Companies

IRDA has provided for a separate channel for lodging complaints against
deficiency of services rendered by Insurance Companies. If you have a
complaint/grievance against an insurance company for poor quality of
service rendered by any of its offices/branches, please approach the
Nodal Officer of the Insurance Company concerned. In case you are not
satisfied with the Insurance Company’s response you may also file a
complaint with the Insurance Ombudsman in your State. The Insurance
Ombudsman is an independent office to provide speedy and cost
effective resolution of grievances to the customers.
Complaints from Policyholders

Policyholders who have complaints against insurers are required to first

approach the Grievance/Customer Complaints Cell of the concerned
insurer. If they do not receive a response from insurer(s) within a
reasonable period of time or are dissatisfied with the response of the
company, they may approach the Grievance Cell of the IRDA

Need of the study:

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The project is an attempt to explore the “Comparative analysis of
different business leader channels and recruitment of financial
consultants” of HDFC LIFE in New Delhi.

The project started in Paschim Vihar region covering all the local market.
In this process I met few persons to recruit them as a financial consultant.
I have tried to recruit FC by cold calling and visiting local market and by
doing some activities. During my work I found the perception of the
people about insurance, what they desire from it, and if they will work as
financial consultant than what they want from the organization. What the
organization should do for the recruitment of more and more FC and
should give more facilities to them, reimbursement, and time to time gift
voucher, and weakly training or meeting with FC to encourage them.

Main text:

History of insurance in India

In India, insurance has a deep-rooted history. Insurance in various forms

has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya
(Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of
the historical reference to insurance in these ancient Indian texts is the
same i.e. pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. The early
references to Insurance in these texts has reference to marine trade loans
and carriers' contracts.

Insurance in its current form has its history dating back until 1818, when
Oriental Life Insurance Company was started by Anita Bhavsar in
Kolkata to cater to the needs of European community. The pre-
independence era in India saw discrimination between the lives of
foreigners (English) and Indians with higher premiums being charged for
the latter. In 1870, Bombay Mutual Life Assurance Society became the
first Indian insurer.

At the dawn of the twentieth century, many insurance companies were

founded. In the year 1912, the Life Insurance Companies Act and the
Provident Fund Act were passed to regulate the insurance business. The
Life Insurance Companies Act, 1912 made it necessary that the premium-
rate tables and periodical valuations of companies should be certified by
an actuary. However, the disparity still existed as discrimination between
Indian and foreign companies. The oldest existing insurance company in

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India is the National Insurance Company Ltd., which was founded in
1906. It is in business.

The Government of India issued an Ordinance on 19th January, 1956

nationalising the Life Insurance sector and Life Insurance Corporation
came into existence in the same year. The Life Insurance Corporation
(LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies—245 Indian and foreign insurers in all. In 1972 with the
General Insurance Business (Nationalisation) Act was passed by the
Indian Parliament, and consequently, General Insurance business was
nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd and the United India Insurance
Company Ltd. The General Insurance Corporation of India was
incorporated as a company in 1971 and it commence business on January
1sst 1973.

The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector. Before that, the industry consisted of only
two state insurers: Life Insurers (Life Insurance Corporation of India,
LIC) and General Insurers (General Insurance Corporation of India,
GIC). GIC had four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked
from the parent company and were set up as independent insurance
companies: Oriental Insurance Company Limited, New India Assurance
Company Limited, National Insurance Company Limited and United
India Insurance Company Limited.

Scope of insurance:

Insurance is done against the possibility that the damage may happen.
There has to be an uncertainty about the risk. The word “possibility”
implies uncertainty. Insurance is relevant only if there are uncertainties.

Insurance does not protect the asset. It does not prevent its loss due
to the peril. The peril cannot be avoided through insurance. The risk can
sometimes be avoided, through better safety and damage control
measures. It only tries to reduce the impact of the risk on the owner of the

10
asset and those who depend on that asset. They are the ones who benefit
from the asset and therefore, would lose, when the asset is damaged.
Insurance compensates for the losses- and that too, not fully.

In my summer internship program I have got the work to recruit financial

consultants or financial advisor and business leaders. Along with this
some sales work is also there. As financial consultants are the base of the
company because they are responsible to bring business for the company.
Indeed the work of financial consultant is very significant and gives more
and more distribution of the policy of the insurance to the company
thorough selling the policies. The main motive of this project is
distribution enhancement.
HDFCSL is one of India’s leading private insurance companies. It offers
both individual and group insurance solution. It is a joint venture between
HDFC and a group of company of Standard Life. I have chosen insurance
sector as the place for summer training because in these days this sector
is in boom and it will never go down. All people invest their money in
insurance and get more benefited. In the sector the work of marketing is
more challenging then the other sector because there is 23 insurance
companies in the market who are giving competition to each other and
the work of convincing people for investment in respective company is a
challenging work and success in the sector proves that the respective
person is a good marketer. Today insurance sector India is on boom
because all people want to invest. Those who don’t know about
investment in share market and don’t want to invest in mutual funds they
invest in insurance sector. Insurance sector gives them investment plus
risk cover. Those who don’t want to take risk in the investment go to
insurance sector. It also gives income tax benefits to the peoples.
Insurance company are available with ULIP plan and gives chance to the
investor to choose their investment pattern according to their fund
investment This fund investment tells us that how much the investor want
to take risk. Generally in the ULIP plan, the thesis is that “The more you
risk the more you have profit.”
Objective of the project:

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There are normally two objectives: 1) primary objective: The primary
objective of my project is to make or recruit Financial Consultant and to
increase market share of HDFCSL. In the insurance sector the main work
is done by the financial consultant who brings selling for the
organization. It improves the services of the organization.
2) Secondary objective: Objective of company is to increase the market
share in the insurance sector also company wants to satisfy their customer
and enhance the customer base as well.

we are sourcing the products of the company. There are different modes
we have followed or we can say different channels to market the product.
Channel to market the product:
1) Direct selling: In this we come in to contact with the customer
direct and we explain them our products according to the needs of
the customers. In this process we use to visit market and try to
figure out the needy customer by interacting with them and try to
find the requirement of that particular customer.
2) Financial consultant: In this we are recruiting the financial advisor
and giving them proper training and allowing them to work for the
company. normally recruited financial advisors are given targets
which they have to achieved.
3) Business leaders: This is a new channel which include the people
with profile like charted accountants, company secretaries, direct
selling agents etc. These people are responsible to hire FC’s under
them and they work accordingly.

Methods of data Collection

Data is the significant part of the research. Your all research depends
upon your data. Whatever data is collected by me during the internship in
the HDFCSL, I can divide the method the collection of my data into two
parts which are thus:-

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1) Primary data

Primary data are those which are collected fresh and for the first time and
thus happen to be original in chapters. I have collected my data through
phone calling and through direct communication with respondents in one
form or another or through personal interviews. Through observation
method I was able to record the natural behaviour of the group.
2) Secondary data

Secondary data are those data which are being already collected by
someone else and which have already been passed through the statistical
process. I have collected my published date form Internet and the books,
magazines and newspaper.

Products:

1) protection plan: Protection Plans help you shield your family from
uncertainties in life due to financial losses in terms of loss of
income that may dawn upon them incase of your untimely demise
or critical illness. Securing the future of one's family is one of the
most important goals of life. Protection Plans go a long way in
ensuring your family's financial independence in the event of your
unfortunate demise or critical illness. They are all the more
important if you are the chief wage earner in your family. No
matter how much you have saved or invested over the years,
sudden eventualities, such as death or critical illness, always tend
to affect your family financially apart from the huge emotional
loss.

List of protection plan: 1) HDFC Term Assurance Plan

2) HDFC Premium Guarantee Plan

3) HDFC Loan Cover Term Assurance Plan

4) HDFC Home Loan Protection Plan*

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2) Children’s plan: Children's Plans helps you save so that you can fulfill
your child's dreams and aspirations. These plans go a long way in
securing your child's future by financing the key milestones in their lives
even if you are no longer around to oversee them. As a parent, you wish
to provide your child with the very best that life offers, the best possible
education, marriage and life style.

Most of these goals have a price tag attached and unless you plan your
finances carefully, you may not be able to provide the required economic
support to your child when you need it the most. For example, with the
high and rising costs of education, if you are not financially prepared,
your child may miss an opportunity of a lifetime.
List of children plans: 1) HDFC SL young star super II
2) HDFC SL young star super premium

3) Retirement plans: Retirement Plans provide you with financial security

so that when your professional income starts to ebb, you can still live
with pride without compromising on your living standards. By providing
you a tool to accumulate and invest your savings, these plans give you a
lump sum on retirement, which is then used to get regular income
through an annuity plan. Given the high cost of living and rising
inflation, employer pensions alone are not sufficient. Pension planning
has therefore become critical today.

India's average life expectancy is slated to increase to over 75 years by

2050 from the present level of close to 65 years. Life spans have been
increasing due to better health and sanitation conditions in the country.
However, the average number of years of employment has not been
rising commensurately. The result is an increase in the number of post-
retirement years. Accordingly, it has become necessary to ensure regular
income for life after retirement, so that you can live with pride and enjoy
your twilight years.
List of retirement plan: 1) HDFC personal pension plan
2) HDFC SL pension maximus

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 3) Savings and investment plans: You have always given your family
the very best. And there is no reason why they shouldn't get the
very best in the future too. As a judicious family man, your priority
is to secure the well-being of those who depend on you. Not just
for today, but also in the long term. More importantly, you have to
ensure that your family's future expenses are taken care, even if
something unfortunate were to happen to you. Our Savings &
Investment Plans provide you the assurance of lump sum funds for
your and your family's future expenses. While providing an
excellent savings tool for your short term and long term financial
goals, these plans also assure your family a certain sum by way of
an insurance cover. With HDFC Standard Life's range of Saving &
Investment Plans, you can therefore ensure that your family always
remains financially independent, even if you are not around.

Type of saving and investment plan: 1) HDFC SL New Money Back

Plan

2) HDFC Assurance Plan#

3) HDFC Savings Assurance Plan^

4) HDFC Endowment Assurance Plan

1) HDFC SL ProGrowth Super II

5) Health plans: Health plans give you the financial security to meet
health related contingencies. Due to changing lifestyles, health issues
have acquired completely new dimension overtime, becoming more
complex in nature. It becomes imperative then to have a health plan in
place, which will ensure that no matter how critical your illness is, it does
not impact your financial independence.

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In the race to excel in our professional lives and provide the best for our
loved ones, we sometimes neglect the most important asset that we have -
our health. With increasing levels of stress, negligible physical activity
and a deteriorating environment due to rapid urbanization, our
vulnerability to diseases has increased at an alarming rate.
List of health care plan: HDFC surgicare plan

Conclusion:

HDFCSLIC is the renounce industry in the insurance sector. It believes in

quality not in quantity. HDFC have total 12 group companies. It is the
first insurance company who has gotten the license of insurance in firstly.
It has started its insurance industry with the joint venture of U.K. based
standard life insurance company.

In the insurance sector main work is done by the financial consultant who
brings business to the industry. It gives more priority for the recruitment
of financial consultant that’s why it has setup 5-qscore. It gives priority
that is professional like as MBA, CA, ENGINEERS, DOCTORS,
LAYERS, AND OTHER PROFESSIONAL. The insurance market is
dominated by the public sector giant LIC with a market share of around
71.4%. With the private players leading the growth story, this sector is
witnessing more marketing actions than even the FMCG sector.
Traditionally insurance are sold through direct selling The reason being
purely the nature of product warrants direct communication with the
consumer. Unsought products are those which are ranked lowest in terms
of consumer interest. Consumers may not be even aware of either the
need or existence of this product.

Things have now changed. With the increasing financial literacy, volatile
economy and uncertain future are prompting Indians to look seriously at
insurance as a means for protection rather than tax saving instrument.

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With more private players entering the domain, the issues of
differentiation and branding became important.

Suggestions:
2) Company should launch some new innovative and different policy
that should attract more customer.
3) Role of recruitment is not a easy process hence company should
give salary instead of commission, which will arise more interest
among financial consultants to work.
4) Company should try to spent more on advertisement and should
approach more places or means to market themselves
5) Company should conduct more get-together so that they can get
more close to their employees and financial consultants as well this
will bring a sense of personal attention among them as well.

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