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HDFC STANDARD LIFE INSURANCE, BANGALORE

A Project Report On
THE TOPIC: MARKET RESEARCH ON FINANCIAL CONSULTANT FOR HDFCSLIC,

In partial fulfillment of requirements for the degree of Master of Business Administration

Submitted By: TIWARI PRAWIN BABUNAND KUNTI Under the Guidance of PROF. RENNY THOMAS

Acharya Bangalore B-School Bengaluru-560 091, Karnataka.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

STUDENT DECLARATION
I am Tiwari Prawin Babunand Kunti hereby declare that the PROJECT in HDFC LIFE INSURANCE written and submitted by me under the guidance of Prof. Renny Thomas, Department of Management Studies, Acharya Bangalore B-School ,Bangalore, is my original work and has not been submitted earlier to any other institution.. The report is for the fulfillment of the Master of Business Administration for 2010-12. The matter in this report is based on the data collected by me at HDFC LIFE INSURANCE. Under the guidance of Mr. Sunil Sawant .

DATE:

Signature:

PLACE:

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

ACKNOWLEDGEMENT
At the outset, I would like to express my deep sense of Gratitude and sincere thanks to Prof. Dr.H.R.Venkatesha, Director, Acharyas Bangalore BSchool, Bangalore, for providing an opportunity to discover the corporate world, from a close perspective. Prof. Renny Thomas, my professor and internal guide for this project to whom I am deeply grateful for his constant support and guidance without which it would not have been possible for me to complete this project in time. I take this opportunity to extend my sincere gratitude to Mr. Sawant, for giving me an opportunity to undertake internship training. I would also like to express my heartfelt wishes to HDFC LIFE INSURANCE, for making this 2 month a stepping-stone for my career. I convey my gratitude to all the staff members of HDFC for their kind cooperation through out my project. Finally, I thank my dearest Parents and Family members for their continued support.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Executive Summery
The Project titled Rural marketing strategies of HDFC SLIC is the research study conducted for the benefit of HDFC SLIC in Bangalore, Karnataka. The proposed project work aims at the study of the Marketing strategies of HDFC SLIC in respect to rural market. The main objectives of the study are: Objective One: To determine the techniques used by the company in marketing its To analyze the customer feedback provided to Financial Consultants. products. Objective Two: To determine reasons behind choosing insurance policies. To know the most preferred policy. To provide with information of customers reasons for choosing that particular policies to the company. To study the use of information technology in reaching customers. The study involves realizing the importance of Insurance, perception of the customer towards HDFC SLIC. The project also visualizes a birds eye view of the use of technology in HDFC SLIC for reaching the customers. The report involves few interview findings, questionnaires in bringing out the extract picture of the customer perceptions towards HDFC SLIC. In order to meet these objectives a set of well administered questionnaires were prepared for the market, comprising of managers and customers scattered all over me sample areas. Internal employees and FCs, few customers were interviewed to take the actual information. Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

It was found that, at present there are 4 marketing channels selling products of HDFC SLIC. They are: 1. Retail channel. 2. Alternative channel. 3. Rural channel. 4. Banks The study is conducted in Retail channel because there is no formal organization structure for Rural channel.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 1

INTRODUCTION

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HDFC STANDARD LIFE INSURANCE, BANGALORE

HISTORY OF INSURANCE
Insurance has been known to exist in some form or other since 3000BC. The Babylonian traders would agree to pay additional sums to lenders, as the price for writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of general average, whereby, if goods are shipped together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning during distress. (Captains of ships caught in storms, would throw away some of the cargo to reduce the weight and restore balance. Such throwing away is called jettisoning).The Greeks had started benevolent societies in the late 7th century AD, to take care of the funeral and families of members who died. The friendly societies of England were similarly constituted. The Great Fire of London in1666, in which more than 13000 houses were lost, gave a boost to insurance and the first fire insurance company, called the Fire office, was started in1680. The origins of insurance business as in vogue at present, is traced to the Lloyds Coffee House in London. Traders, who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. In India, insurance began in 1818 with life insurance being transacted by an English company the Oriental Life Insurance Company Limited. The first Indian company was the Bombay Mutual Assurance Society Ltd. formed in 1870 in Mumbai. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the Empire of India in1897 in Mumbai, the United India in Chennai, the National, the national Indian and the Hindustan Cooperative in Kolkata. Later, The cooperative assurance in Lahore, the Bombay life (originally called the Swadeshi Life), the Indian Mercantile, the New India the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies started as a result of the swadeshi movement in the early 1900s.By the year 1956, when the life insurance business was nationalized and the Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. After the amendments to the relevant laws in 1999, the LIC did not have the exclusive privilege of Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

doing life insurance business in India. Now, nineteen new life insures had been registered and were transacting life insurance business in India.

INSURANCE IN INDIA 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 crores from the Government of India. The General insurance business in India, on the other hand, 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 Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companys 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.

LAW AND REGULATIONS INSURANCE ACT, 1938


The insurance Act 1938, came into effect from 1st July 1939, and was amended in 1950 and later in 1999, is the principal enactment relating to the business of insurance in India. The Act contains provisions regarding licensing of agents and their remunerations, prohibition rebates, and protection of policyholders interests. It also has provisions placing limits on the expenses of insurers, use of funds and patterns of investments, maintaining solvency levels, and constitution of Insurance Associations and Insurance Councils and the Tariff Advisory Committee for general insurance. Till insurance Act was passed in 1999, the Controller of Insurance was responsible for the administration of the Insurance. After 1999, the IRDA has replaced the Controller of Insurance. The insurance Act vests the IRDA with powers to Register insurance companies and also cancel their registrations. Monitor and certify the soundness of the terms of the life insurance business. Make regulations relating to the conduct of the business of insurance. Inspect documents of insurers. Issue directions. Take over the management of an insurer and appoint administrators. Adjudicate on disputes between insurers and intermediaries. Deciding disputes relating to settlement of claims of amounts not exceeding Rs.2000.

THE TOPIC: MARKET RESEARCH ON FINANCIAL CONSULTANT FOR HDFCSLIC, Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

At HDFC Standard Life Insurance, I was assigned with the topic as Market Research on Financial Consultant for my project work. The selection of the topic was in order to take know how do these companies generates business through them. Financial Consultants are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Company has certain criteria to recruit these Financial Consultants. The steps are as follows. He should be at least 12th passed. He should complete IRDA training. He should clear the IRDA exam. He should through successfully the exam and training. Some other criteria: He should have good personal contacts. He should have convincing power. He should be above 18th year old.

Once he through all these steps of recruitment, he becomes the legal Financial Consultant of the company and reserve the right to sale the policy to any prospect client also he is paid the commission a certain percentage. There are some reward and tour package also. REASON FOR SELECTION OF THIS TOPIC: The financial sector is one of the booming and increasing leaps and bounce, some of the experts say only 20% of Indian population is insured which means 80% Indian are not insured and therefore having a bright prospect of progress of this sector where I too would like to build my career and be a part of success story. The Financial consultants are another channel through which the company sales its policy. It is really difficult to convince and sale a single policy but since these consultants have their contacts which they can sale a single policy. Whereas I found my interest in dealing, interacting and handling a team, because all this most of time park you in some critical zone which becomes challenge for you and your responsibility becomes to solve the critical situation or problems. Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

IMPORTANCE TO THE COMPANY: After interacting with companys marketing head I got to know that they have many Financial Consultants but not getting the policies up to the expectations level of the company. Company is really interested in knowing if there is any mistake or lacking somewhere in process of recruiting and or the criteria they have fixed for the recruitment. The ultimate purpose of giving me this topic was to revise its recruitment policy/process. LEARNING FROM THE STUDY: The process of recruitment of HDFC STANDARD LIFE INSURANCE LTD. How is the training given? What are the criteria of selection? The culture of insurance company particularly of HDFC. What are the problems faced by these financial consultants on daily basis? How to convince and convert the prospect client into real client?

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 2

ORGANIZATIONAL PROFILE

FORMATION OF COMPANY:

HOUSING DEVELOPMENT FINANCE CORPORATION:

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HDFC STANDARD LIFE INSURANCE, BANGALORE

HDFC was started by Hasmukh Bhai Parekh in1977 with the formation of Malhotra Committee. HDFC was incorporated with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 10 crores. HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar. HDFCs main goals are to: a) Develop close relationships with individual households. b) Maintain its position as the premier housing finance institution in the country. c) Transform ideas into viable and creative solutions. d) Provide consistently high returns to shareholders. e) To grow through diversification by leveraging off the existing client base.

STANDARD LIFE: The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925. Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 182 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over 70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor. STANDARD LIFE ASIA LIMITED/JOINT VENTURES: The groups Hong Kong subsidiary, Standard Life Asia Limited (SL Asia), was incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard Life in 2002. The groups operations in Hong Kong were established to give the group a presence in the Far East from which it could expand into China. The groups joint ventures in India with Housing Development Finance Corporation Limited (HDFC) were incorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003 (in relation to the investment management joint venture). The groups joint venture in China with Tianjin Economic Development Area General Company (TEDA) became operational in 2003.

STANDARD LIFE GROUP: The Standard Life group has been looking after the financial needs of customers for over 182 years It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs Its investment manager currently administers 125 billion in assets Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and It was voted a 5 star life and pensions provider at Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006. the Financial Adviser Service

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HDFC STANDARD LIFE INSURANCE, BANGALORE

INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO. LTD.: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life was the first life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. HDFC Standard Life Insurance Company Ltd. is one of Indias 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.), Indias leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in 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.

PRODUCT SCOPE: Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The company caters to both, individuals as well as to companies looking to provide benefits to their employees. For individuals, the company has a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. The customers can choose from a range of products to suit their life-stage and needs. For organizations they have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows : A. INDIVIDUAL PRODUCTS B. GROUP PRODUCTS C. RURAL PRODUCTS D. SOCIAL PRODUCTS E. TAX BENEFITS For Individuals, HDFC Standard Life has a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. Customer can choose from a range of products to suit his life-stage and needs.

For Organizations, HDFC Standard Life has a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. Individual Products: Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

1. HDFC Children's Plan, 2. HDFC Endowment Assurance Plan, 3. HDFC Loan Cover Term Assurance Plan, 4. HDFC Money Back Plan, 5. HDFC Personal Pension Plan, 6. HDFC Single Premium Whole Of Life Plan, 7. HDFC Term Assurance Plan, 8. HDFC Unit Linked Endowment, 9. HDFC Unit Linked Endowment Plus, 10. HDFC Unit Linked Pension, 11. HDFC Unit Linked Pension Plus, 12. HDFC Unit Linked Young Star, 13. HDFC Unit Linked Young Star Plus At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, varied range of products that customer can choose from to suit all needs. These will help secure customer future as well as the future of family. Protection Plans: Customer can protect his family against the loss of his income or the burden of a loan in the event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term Assurance Plan. Investment Plans: HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term investment needs. HDFC Standard Life provides with attractive long term returns through regular bonuses.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

Pension Plans: HDFC Standard Life Pension Plans help secure financial independence even after retirement. Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked Pension Plus Savings Plans.

Savings Plans: HDFC Standard Life Savings Plans offer flexible options to build savings for future needs such as buying a dream home or fulfilling childrens immediate and future needs. Group Products: 1. Group Term Insurance, 2. Group Variable Term Insurance, 3. Group Unit Linked Plan, 4. Gratuity Group Unit Linked Plan, 5. Superannuation Group Unit Linked Plan , 6. Leave Encashment

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HDFC STANDARD LIFE INSURANCE, BANGALORE

PRODUCT PORTFOLIO
HDFC offers products as per the life stages of the customers and their respective needs.

Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

LIFE STAGES & NEEDS IN HAT STAGES STAGE 1: YOUNG & SINGLE

An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early. NEEDS: Save for Home & Wedding Tax Planning Save for Golden Years

STAGE 2: JUST MARRIED

Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life, it is equally important to ensure that eventualities dont come in the way of shaping your dreams. NEEDS: Planning for home / securing your home loan liability. Save for vacation. Save for your first child.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

STAGE 3: PROUD PARENTS

Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your childs dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. NEEDS: Provide for children's education Safeguarding family against loan liabilities Savings for post-retirement STAGE 4: PLANNING FOR RETIREMENT

While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. NEEDS Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

COMPARITIVE ADVANTAGE OVER COMPETITORS PRODUCT:

I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies parent is insured and child in nominee or beneficiary,

Both the policies contains same features, only additional rider is available in smart kid is income benefit rider (IBR), how this rider works? this rider comes in the picture when the parent expires or becomes permanent disable at that time this rider pay 10% of sum assurance to nominee,

HDFC Youngstar offers Insurance Cover upto 20 Times of Annual Premium. You may Pay Rs. 30000 per year & take Insurance Cover of Rs. 6 Lacs.

You may take Critical Illness Rider in HDFC Youngstar upto 65 years Age(as it Cheaper than other ULIPS ).

The returns from HDFC Taxsaver, HDFC LT Advantage fund are better than the returns from HDFC Standard Life Equity Fund.

HDFC Standard ULIP Returns are over 70% in last 1 year. HDFC Youngstar with Maximum Insurance Cover of Rs.3.6 Lacs

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HDFC STANDARD LIFE INSURANCE, BANGALORE

MILESTONES IN THE HISTORY

HDFC is Indias leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977. In Financial Year 2003-04 its assets under management crossed Rs.36,000Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors. Rated AAA by CRISIL and ICRA for the 10th consecutive year Awarded The Economic Times Corporate Citizen of the year Award for its longstanding commitment to community development. Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards HDFC Standard Life Insurance is the first private life insurance company to be granted a license by IRDA Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1 personal finance magazine Rated by Business world as Indias Most Respected Private Life Insurance Company in 2004. Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005) Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns

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HDFC STANDARD LIFE INSURANCE, BANGALORE

COLLABORATIONS & AFFILIATIONS:

SUBSIDIARY AND ASSOCIATE COMPANIES:

HDFC Bank HDFC Mutual Fund HDFC Standard Life Insurance Company HLSIL HDFC Chubb General Insurance Company Ltd. Intelnet Global Services Ltd. Other Companies Co-Promoted by HDFC Financial Information with regard to Subsidiary Companies

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HDFC STANDARD LIFE INSURANCE, BANGALORE

GROUP COMPANIES

BANCASSURANCE PARTNERS

HEAD OFFICES AND BRANCHES Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd. 'Trade Star', 2nd floor,AWing, Junction of Kondivita and M.V. Road, Andheri-Kurla Road, Andheri (East), Mumbai - 400 059. PHONE: Fax: (Board) (022) 2822 0055 / 6751 6666 2822 9998 / 2822 2414

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HDFC STANDARD LIFE INSURANCE, BANGALORE

BRANCH LOCATIONS SITE MAP:

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HDFC STANDARD LIFE INSURANCE, BANGALORE

TABLE OF FINANCIAL FIGURES:

PARAMETERS

APR-MAR 2004-APR-MAR 05 (Rs.Cr) 2005-06 (Rs.Cr)

GROWTH (%)

Total received premium New business Renewal Effective Premium (Total) Group Business Premium (EPI) Income

668.40 486.15 182.25 436.08 49.40

1532.21 1028.94 503.27 887.30 135.15

129.23 111.65 103.47 103.47 173.58

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HDFC STANDARD LIFE INSURANCE, BANGALORE

QUALITY POLICY:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. INTEGRITY CUSTOMER CENTRIC PEOPLE CARE ONE FOR ALL AND ALL FOR ONE TEAM WORK JOY AND SIMPLICITY

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HDFC STANDARD LIFE INSURANCE, BANGALORE

ORGANIZATION CHART:

Chairman MD Zonal Manager Regional Manager

Retail Marketing MMMarkeMMar Territory Manager Branch Manager

Alternative Chanel Territory Manager Branch Manager

Operation Chanel Team Manager Operation Manager

Human Resource HR Executive

Asst. B.M.

Channel Executive

Business Dev. Mgr.

Sales Dev. Mgr.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 3
RESEARCH OBJECTIVES & SCOPE OF RESEARCH PROJECT

PROBLEM DEFINATION: Recruit consultants were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to short out the problem why the performance is not coming even after giving the full marketing support. Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

OBJECTIVES OF RESEARCH PROJECT: PRIMARY OBJECTIVES: To recruit more and more Financial Consultant and to promote the benefits those are provided by HDFC Standard Life to its Financial Consultants To find the different way of recruiting and selecting the Financial Consultants who can produce more and fruitful results. To study awareness of the HDFC Standard life insurance

SECONDARY OBJECTIVES: To determine the need and purpose of Financial Consultant. To understand the deciding criteria for people to become Financial Consultant. To collect and analysis the information of prospect candidates in order to make them appear in front of management so that they can be selected as Financial consultant. To offer suggestions based upon the findings.

3.3 GEOGRAPHICAL SCOPE: The same problem was with the all other branches of HDFC even out of the Pune city. The management is conducting the same research on a big ground while my contribution is tiny. Though my sample size and geographical area was defined and confine to a particular territory but the application of out put from the research are going to be wide.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

PROJECT SCOPE: Market segmentation to find the potential consultants for HDFCSLIC. To customize benefit package for consultants and help them to overcome their agency problem arising out of their sedentary nature of work. Corporate marketing of this product.

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HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 4
RESEARCH METHODOLOGY & LIMITATIONS

All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from Chartered Accountants, Tax Consultants, Businessman, Share Brokers, Lawyers, Working Professionals. RESEARCH PLAN: 1. Preliminary Investigation: In which data on the situation surrounding the problems shall be gathered to arrive at Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

The correct definition of the problem. An understanding of its environment.

2. Exploratory Study: To determine the approximate area where the problem lies. RESEARCH DESIGN: Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement. DEVELOPING THE RESEARCH PLAN: The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA: 1: Secondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companies database and website of the company. 2: Primary data: All the Chartered Accountants, Tax Consultants, Insurance Agents, Auto loan providers were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Pune. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 200 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 200 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will based on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.

RESEARCH LIMITATIONS:

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HDFC STANDARD LIFE INSURANCE, BANGALORE

It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Pune so the findings should not be generalized. The area of research was Pune; It was too vast an area to cover within 60 days.

CHAPTER 5
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HDFC STANDARD LIFE INSURANCE, BANGALORE

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1.Your Age? TABLE Sr. No. 1 2 3 4 Category 18-23 Years 24-29 Years 30-35 Years 35 & above Total No. of Respondents 40 70 60 30 200 Percentage 20% 35% 30% 15% 100% Base 200 respondents

GRAPH Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Interpretation From the table and graph above it can be seen that 20% respondents age are 18 to 23 years. 35% respondents age are 27 to 29 years. 30% respondents age are 30 to 35 years. 15% respondents age are 35 to above years.

2. Marital status? TABLE Sr. No. 1 2 Category Married Unmarried Total No. of Respondents 140 60 200 Percentage 70% 30% 100% Base 200 respondents

GRAPH

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HDFC STANDARD LIFE INSURANCE, BANGALORE

Interpretation From the table and graph above it can be seen that 70% respondents are married. 30% respondents are unmarried.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

3. Educational Qualification? TABLE Sr. No. 1 2 3 Category Under graduate Graduate Post graduate Total No. of Respondents 50 80 70 200 Percentage 25% 40% 35% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that
25% respondents are Under graduate.

40% respondents are Graduate.

35% respondents are Post graduate.

4. Number Of years Are You in Pune? Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

TABLE Sr. No. 1 2 Category Less than five years More than five years Total No. of Respondents 78 122 200 Percentage 39% 61% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 39% respondents are in Pune is less than five years. 61% respondents are in Pune is more than five years.

5. Your Occupation? TABLE Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Sr. No. 1 2 3

Category Business Profession Service Total

No. of Respondents 40 108 52 200

Percentage 20% 54% 26% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 20% respondents Occupation is Business. 26% respondents Occupation is Profession. 54% respondents Occupation is Service.

6. Your annual household income? TABLE Sr. No. Category No. of Respondents Percentage

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

1 2 3 4

Less than 2 lacs Between 2 to 5 lacs Between 5to 8lacs More than 8 lacs Total

98 62 30 10 200

49% 31% 15% 5% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 49% respondents annual household income is less than 2 lacs. 31% respondents annual household income is between 2 to 5 lacs. 15% respondents annual household income is between 5 to 8 lacs. 5% respondents annual household income is more than 8 lacs.

7. Are you a member of a club/gymkhana? TABLE Sr. No. 1 Category Yes No. of Respondents 84 Percentage 42% Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

No Total

116 200

58% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 42% respondents are member of a club/gymkhana. 58% respondents are not member of a club/gymkhana.

8. What is your perception about insurance sector? TABLE Sr. No. 1 2 3 Category Hard and lucrative Hard but not rewarding Smooth and rewarding No. of Respondents 60 18 82 Percentage 30% 9% 41%

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

No idea Total

40 200

20% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 30% respondents perception about insurance sector is Hard & lucrative. 9% respondents perception about insurance sector is hard but not rewarding. 41% respondents perception about insurance sector is Smooth & rewarding. 20% respondents perception about insurance sector that they have no idea.

9. Do you know about HDFC Standard Life Insurance? TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 164 36 200 Percentage 82% 18% 100% Base 200 respondents

GRAPH Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Interpretation From the table and graph above it can be seen that 85% respondents are known about HDFC Standard life insurance. 15% respondents are not known about HDFC Standard life insurance.

10. Do you have any Insurance Policy? TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 160 40 200 Percentage 80% 20% 100% Base 200 respondents

GRAPH Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Interpretation From the table and graph above it can be seen that 80% respondents have insurance policy. 20% respondents do not have insurance policy.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

11. Name of Insurance Company? TABLE Sr. No. 1 2 3 4 Category LICI ICICI HDFC SLIC OTHERS Total No. of Respondents 104 16 8 32 160 Percentage 65% 10% 5% 20% 100% Base 160 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 65% respondents are insured by LICI. 10% respondents are insured by ICICI. 5% respondents insured by HDFCSLIC. 20% respondents insured by OTHERS.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

12. Do you hold any license of any insurance company? TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 70 130 200 Percentage 35% 65% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 35% respondents are holding license of any insurance company. 65% respondents are not holding license of any insurance company.

13. Are you satisfied with the company? Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 42 28 70 Percentage 60% 40% 100% Base 70 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 60% respondents are satisfied with their insurance company. 40% respondents are not satisfied with their insurance company.

14. Do you know about HDFC Standard Life Insurance recruitment policies related to financial consultant?

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 82 118 200 Percentage 41% 59% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 41% respondents are known about HDFC Standard Life Insurance recruitment policies related to financial consultant. 59% respondents are not known about HDFC Standard Life Insurance recruitment policies related to financial consultant.

15. Will you be interested to become Financial Consultant? TABLE Sr. No. 1 Category Yes No. of Respondents Percentage 60 30% Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

No Total

140 200

70% 100% Base 200 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 30% respondents are interested to become financial consultant. 70% respondents are not interested to become financial consultant.

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

16. Would you like to earn an additional income through a business opportunity with HDFC
STANDARD LIFE?

TABLE Sr. No. 1 2 Category Yes No Total No. of Respondents 54 6 60 Percentage 90% 10% 100% Base 60 respondents

GRAPH

Interpretation From the table and graph above it can be seen that 90% respondents are interested to earn additional income. 10% respondents are not interested to earn additional income

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 6
CONCLUSIONS & SUGGESTIONS

CONCLUSIONS: Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

HDFC Standard Life, the insurance arm of HDFC is expected to go on stream. Promoted by HDFC & Standard Life, already has good number of employees on board and is recruiting Financial Consultants heavily to take the headcount to many more. It is on the brim of increasing its client through its attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective clients in potential geographical location and for recruiting them as financial consultant so to explore new Business Opportunity. Through this project, it could be concluded that people are not much aware about the various benefit of being Financial Consultant that are currently prevailing in the insurance industry. Insurance was considered as unsought good which require hard core selling, but in changing trend in income and people becoming financially literate, the demand for insurance is increasing day by day. So, it is the company that first approaches gets its share of reward. Proper after sale service can help the advisors to generate more business. Gradually people are realizing the fact that insurance is not a necessary evil but means to attain worry free life. This activity much attract unemployed people as for them a source of income is a great help for developing there future. Companys promotional activities for recruiting Financial Consultant are also very less. So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in terms of number of Financial Consultants. Last but not the least I would like to thank HDFC SLI for giving me an opportunity to work in the field of Financial Consultant. I hope the company finds my analysis relevant.

SUGGESTIONS: Finally some recommendations for the company are as fallows:Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

To

make people aware about the benefit of becoming HDFC Standard Lifes

Financial Consultant, following activities of advertisement should be done through 1. Print Media. 2. Hoarding & Banners. 3. Stalls in Trade Fares 4. Distribution of leaflets containing details information. 5. Company can recruit sales promoters so that maximum information can be provided to the potential client.

By showing additional and alternative income source along with various schemes for
Financial Consultant in the company so that more and more FC can be recruited. Free life cover for every active Financial Consultant. Discounted rate premium for its family members. Make people understand about the meaning of the IRDA authorization and its validity. Company should organize the program in the society, so that people will be aware about the company Separet time slot for Working Professionals, House Wives and Retired people. Agency of non-life products should also be provided along with life. Company should open more branches in different cities

Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

CHAPTER 7
LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are:Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

The project was constrained by time limit of two months. Mindset of people may very depending upon their age, gender, income etc. Getting appointment from the concern person was very difficult. People mind set about the survey was an obstacle in acquiring complete information & positive interaction. Respondents were very busy in their schedule. So it was very time taken in every Questionnaire response by them.

ANNEXURES
Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

QUESTIONNAIRE
Dear Sir/Madam, I am a student of Acharya Academy of Management Studies , Bangalore and presently doing a market survey MARKET RESEARCH ON FINANCIAL CONSULTANTS FOR HDFCSLIC, BANGALORE. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. . Name: .. Address: .. Contact No :( O) (M) City: ...............Pin: .State: . 1. Your Age: ____________________ 2. Education Qualification. Undergraduate Graduate Post graduate

3. Marital Status. Married Single

No. of Children: __________ 4. Number Of years Are You in Pune. Less than five years More than five years

5. Occupation. Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Business Profession Service

(Please mention below the type of business/profession you are in incase of service please mention your organization name and designation)

6.Your annual household income. <than 2 lack Between 2 to 5 lack Between 5 to 8 lack >than 8 lack

7.Are you a member of a club/gymkhana? Yes No

If yes, Name of the club /gymkhana_______________________________________ 8. What is your perception about insurance sector? Hard &lucrative Hard but not rewarding Smooth &rewarding No idea


Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

9. Do you know about HDFC SLIC? Yes No

10.Do you have any insurance policy? Yes No


ICICI OTHERS

11.Name insurance company? LICI HDFC SLIC

If others, please specify___________________________________________________ 12. Do you hold any license of any insurance company? Yes No

If yes, please specify which company________________________________________ Reason______________________________________________________________ 13. Are you satisfied with the company? Yes No

Reason specify_________________________________________________________

14. Do you know about HDFC SLICs recruitment policies related to financial consultant? Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Yes No

15. Will you be interested to become financial consultant? Yes No

16. Would you like to earn an additional income through a business opportunity with HDFC
STANDARD LIFE?

YES NO

17. If yes, how many hours in a week can you commit for this business opportunity? ______________________________________________________________________

Date: Place: Signature

Thank You

BIBLIOGRAPHY

1.BOOKS Marketing Management (10th Edition) Marketing Management (3rd Edition)

AUTHORS Philip Kotler V.S. Ramaswamy Acharya Bangalore B-School

HDFC STANDARD LIFE INSURANCE, BANGALORE

Research Methodology (2nd Edition) Research Methodology

C.R.Kothary S.P. Kasande

2. NEWS PAPERS Times of India Financial Express

3. WEBSITES www.hdfcinsurance.com www.irda.com www.google.com

Acharya Bangalore B-School