NIMT, GHAZIABAD

Report on Summer Training

HDFC STANDARD LIFE INSURANCE COMPANY

CAREER PATH AND CHANNEL DEVELOPMENT IN

HDFC STANDARD LIFE INSURANCE

SUBMITTED TO NATIONAL INSTITUTE OF

MANAGEMENT AND TECHNOLOGY, GHAZIABAD
In partial fulfillment of the Requirements for the award of

Post Graduate Diploma in Management

Submitted by:

AZIZ MOHAMMADE

29219

PGDM (Finance)

(2009-2011)

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 CONTENTS
TITLE PAGE NO.

ACKNOWLEDGEMENT……………………………………………….4
DECLARATION...................................................................................5
CERTIFICATE......................................................................................6
1. EXECUTIVE SUMMARY....................................................................8
2. LITERATURE SURVEY AND REVIEW.............................................11
3. INTRODUCTION……………………………………………………….13
 INSURANCE INDUSTRY IN INDIA AN OVERVIEW…………………..13

 HISTORY……………………………………………………………………...14

 KEY MILESTONES…………………………………………………………..15

 INDUSTRY PERFORMANCE………………………………………………..15

 PRESENT SCENARIO…………………..……………………………………16

 MAJOR COMPETITORS……………………………………………………..17

4. INTRODUCTION TO HDFC & STANDARD LIFE………………….19

5. HDFC STANDARD LIFE INSURANCE COMPANY LIMITED……24
 INTRODUCTION ……………………………………………………………24
 BUSINESS GROWTH………………………………………………………..25
 KEY STRENGTH.........................…………………………………………….26
 CORPORATE OBJECTIVE…………………………………………………..27
 VISION………………………………………………………………………...27
 VALUES……………………………………………………………………….27
 BOARD MEMBERS…………………………………………………………..28
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  MARKET SHARE……………………………………………………………..30
 MILESTONE IN THE HISTORY…………………………………………….31
 PRODUCT & SERVICES..................................................................................32
 ADVERTISEMENT & SALES PROMOTION…………………….................35
 FINANCIAL PERFORMANCE……………………………………………..36
 FUTURE PLANS……………………………………………………………..39
6. CAREER PATH IN HDFC SLIC………………………………………41
 CAREER PATH ………………………………………………………………41
 Channel Development Department…………………………………….42
 Sales Department………………………………………………………44

 BUSINESS DESCRIPTION………………………………………………….45

 DESIRE PROFILE……………………………………………………………46

 JOB DESCRIPTION FOR FINANCIAL CONSULTANTS………………...46

7. RECRUITMENT PROCESS OF FCs……………………………………48

 WHAT ARE THE ROLES OF A FINANCIAL CONSULTANT? ………….49
 LICENSING PROCESS…………………………………………..57
 Step 1 : Registration……………………………………………………57
 Step 2 : IRDA Training………………………………………………...58
 Step 3 : IRDA Examination…………………………………………....58
8. RESEARCH METHODOLOGY ……………………………………....60
 OBJECTIVE OF THE PROJECT……………………………………………...60
 RESEARCH PLAN…………………………………………………………....60
 RESEARCH DESIGN…………………………………………………………61
 DEVELOPING THE RESEARCH PLAN…………………………………….61
 COLLECTION OF DATA…………………………………………………….61
 SAMPLING PLAN……………………………………………………………61
9. DATA ANALYSIS, INTERPRETATION AND PRESENTATION…64
10. SWOT ANALYSIS……………………………………………………..81

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11. CONCLUSION…………………………………………………………..8
4
12. SUGGESTIONS AND RECOMMENDATIONS……………………..86
13. BIBLIOGRAPHY………………………………………………………88
14. ANNEXURE…………………………………………………………...90

ACKNOWLEDGEMENT

4
I would like to thank my project guide, all professors for supporting me during this project and
providing me an opportunity to learn outside the classroom. It was a truly wonderful learning
experience.

I would like to thank my industry guide Mr. Manish Shankar (Channel Development
Manager) for guiding me through my summer internship and research project. His
encouragement, time and effort are greatly appreciated.

I would also like to thank Mr. Kapil (Channel Development Manager) of Nehru place
branch who suggested me such a nice topic “Career Path and Channel Development In
HDFC SLIC”, he actually helped us during our initial days and was always there with us
during hard times.
I would like to thank all those people who helped in filling up the questionnaire and provided
valuable feedback which helped in data analysis and supported our research.
Last but not the least I would like to thank Mr. Bill Gates for his MS Office I could not be able
to make my Project Report in printed and attract form.

AZIZ MOHAMMADE

DECLARATION

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I hereby declare that the project report titled “CAREER PATH AND
CHANNEL DEVELOPMENT IN HDFC SLIC” is my own work and has been
carried out under the able guidance of Mr. MANISH SHANKAR, Channel
Development Manager, Nehru Palace Branch – New Delhi 110027 and , Faculty,
NIMT GHAZIABAD. All care has been taken to keep this report error free and I
sincerely regret for any unintended discrepancies that might have crept into this
report. I shall be highly obliged if errors (if any) are brought to my attention.

Thank You.

AZIZ MOHAMMADE
PGDM (Finance)
Enrol. no. : 29219

CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. AZIZ MOHAMMADE OF NATIONAL

INSTITUTE OF MANAGEMENT AND TECHNOLOGY , GHAZIABAD

has successfully completed his

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Project title “CAREER PATH AND CHANNEL DEVELOPMENT IN

HDFC SLIC” From 2 1st MAY, 2010 TO 21st July, 2010.

With HDFC Standard Life Insurance Company Ltd.

We wish him good luck for his career.

MR. MANISH SHANKAR

Manager CD
HDFC STANDARD LIFE INSURANCE
NEHRU PLACE BRANCH
NEW DELHI

7
CHAPTER 1

8
EXECUTIVE SUMMARY OF THE PROJECT

Introduction

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions and providing the
career opportunities to its employees. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on May 31, 2010 holds 72.38 per cent of
equity in the joint venture.

OBJECTIVE OF THE STUDY:

1. To study the benefits for the employees of the organization.

2. To study the career path of the organization.
3. Recruitment of financial consultant.
4. SWOT analysis

SCOPE OF THE STUDY

The study will limited to HDFC Standard and its employees’ career path for their bright future
and also employees and Delhi’s people survey about the perceptions toward the HDFC SLIC
environment in the organization.

SIGNIFICANCE OF THE STUDY

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,
opportunities and threats. Strengths and weaknesses are internal factors and opportunities and
threats are external factors.

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MANAGERIAL USEFULNESS OF THE STUDY

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.

Research Methodology:

THE MARKET SURVEY (QUESTIONNAIRE)

A market survey was undertaken to get some knowledge about the working environment of
organization, salary package, career path, for the employees and quality of work life does plays
a pivotal role for the better men power and which kind is most powerful. This survey was
undertaken Nehru Place of DELHI & DELHI’s people and questionnaire method was used.

SAMPLE SIZE
The sample size for the survey conducted was 200 respondents

SAMPLING TECHNIQUE

Random sampling technique was used in the survey conducted.

of the collected data. The data is also neatly presented with the help of statistical tools such as
graphs and pie charts. Percentages and averages have also been used to represent data clearly
and effectively.

STUDY AREA

The samples referred to Delhi City & Branch in Nehru Place and also Mohan Nagar in
Ghaziabad.

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CHAPTER 2

11
LITERATURE REVIEWS

1. Choosing the Right Career Path

By Michael Dylan
July, 2010

http://www.woopidoo.com/articles/dylan/career-path.htm

Choosing the right career path is one of the most defining decisions we can make in life. Our
job not only says a lot about what kind of person we are, but will influence what type of car we
drive, what kind of house we live in, the people we associate with, and more. But above all
these things, is the fact that we spend most of our waking moments at work!. Which means that
if our job does not fulfill us or does not allow us to pursue our life goals, than it is not the
career we should spend the rest of our life doing.

We have to get clear about what it is that gives us fulfillment in life, what fascinates us, or
what we are passionate about. Once our interests are defined, we have to think about what
career paths are available in that area. Sometimes there will be clear paths to take, like when
our passion is designing websites, the job options could be to become a web designer, web
programmer, or similar positions. But other interests may need more creative ways of thinking,
like if you are passionate about collecting rare coins, your path may not be so clear. You may
have to look into several sources of income; Owning a coin dealership, writing a guide to
collecting rare coins, having a website built, and/or selling coins online.

Because of the responsibilities of modern life and the necessity of money to support our
lifestyle and family, we can't just quit our job and immediately pursue our passion. It may take
months or years of planning while we continue to work in our 9 to 5 job and bring in a regular
wage. The important thing is that we are moving towards the goal of doing what inspires us in
life. Without the clear focus and continual small steps towards achieving our dream job, we
would just be kidding ourselves.

We may have to take evening or weekend classes, attend seminars, read books, or associate
with people in your area of interest. If it's a product that you plan to sell, perhaps you could

12
start selling it from home, at weekend markets, or setting up a website to sell it from.

When we're moving towards our dream job and have a clear path before us it makes our 9 to 5
job less of a problem. Rather than going to work each day and hating the things we do, we can
appreciate the job for being a step towards doing what really inspires us. It is putting food on
the table, paying the rent, and funding the way towards the right career path.

2. A recession-proof career path? Only for the lucky ones

By: Tim Harford

8th August, 2009.

Source:- http://timharford.com/2009/08/a-recession-proof-career-path-only-for-the-lucky-ones/

How long will the economic downturn last? While some claim to see green shoots, others –
such as my colleague Martin Wolf – see a slow and painful process ahead. I have little to add
to that debate, but I can guarantee that for some of us, the impact of this downturn will last a
lifetime.

That is the conclusion I draw from the research of Till Marco von Wachter, an economist at
Columbia University, who has been tracing the lasting effects of bad luck in the job market.
Having to look for a job at the wrong time can force us into compromises whose repercussions
can last years or even decades.

For example, when von Wachter teamed up with two US government economists, Jae Song
and Joyce Manchester, to study the experiences of those hurled into unemployment by mass
layoffs in the 1982 US recession, they discovered horrendously long-lasting effects. The
recession itself – one often compared with today’s downturn – was savage, but it was over in
less than two years. Yet von Wachter and his colleagues discovered that those who lost their
jobs had incomes about 20 per cent lower than would otherwise be expected, even two decades
later.
13
It is possible that this result is really capturing the effect of being a less productive (and thus
expendable) worker, or of being trapped in a declining industry. But that is unlikely. Such mass
layoffs are by their nature indiscriminate, and the researchers tried hard to compare like with
like. The results remain robust – and they match similar research done in Germany, and earlier
studies in the US with smaller data sets.

Why such a big effect? In part, it is a question of luck. Most people who have secured a decent,
secure, full-time job have enjoyed a dose of luck in doing so. “It is hard to get lucky twice,”

A similar problem lies in wait for those graduating during a recession. “People have to make
compromises,” says von Wachter, which often means taking a stopgap job with a less
glamorous employer, and trying to switch careers or switch employers later on. The longer this
process takes, the longer the impact on the unlucky cohort of graduates.

3. Overcome Your Career Change Fear: 5 Expert Tips

By: Michael Jones

February 1, 2009

Source:- http://blogs.payscale.com/content/2009/02/overcome_your_c.html

If you're ready for a career change but haven't yet figured out how to get there, follow these
tips from Harvard's Dr. Timothy Butler and life coach C.J. Liu. Before you know it, you'll be
on your way to a new career.

1. Look at the issues that make you crave change and outline your goals.
What are you satisfied with about your current situation? What are you dissatisfied with? Is it
your boss or the culture of your organization? Or do you really want to change careers? Outline
your goals - for example, more money, more time off or more flexibility. Write it all down.

2. Work to understand your inner critic

Observe thoughts that trap you with fear and prevent you from achieving your objectives.
Write these down on a piece of paper, then crumple it up and throw it away to symbolize your
14
freedom from thoughts that interfere with your goals and dreams.

3. Recognize recurring patterns in your life

What makes you happy? What are your recurring interests and social needs? What makes a
work environment feel or not so good to you? Write it down.

4. Network and investigate career interests that map to your goals and needs
Once you've identified your patterns and desires, start thinking about careers that make sense
for you. Give yourself one to three months to explore your curiosity by finding people who do
these jobs and talking about the pros and cons of their work. Explore anything and everything
until you're satisfied - or until your time runs out.

5. Make a plan that takes your financial situation into account.

Change is never simple, but having a plan that outlines your steps and financial requirements
makes it doable. Will your new career require additional education, a small business loan, time
off from work or relocation? Make a plan with financial considerations and a realistic timeline
and that you can follow through on.

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4. Women’s Careers Pathways & Pitfalls

By:- Suzanna Rose & Laurie Larwood

Yaer 1998

Source:http://www.questia.com/read/28638447?title=Women%27s%20Careers%3a
%20Pathways%20and%20Pitfalls

A growing interest in women's careers has spread to personal, academic, and organizational
life. The proliferation and quality of research on women and work that we saw as program
chairs of the 1986 International Conference on Women and Organizations inspired us to edit
this book. That highly successful conference was the source of several chapters
included here.

Our goal was to select timely topics that had immediate relevance to career women, students,
and scholars of women and work. Part I of the book begins with an introduction by the editors
which highlights five major issues that affect working women and what has been learned about
those issues in the 1980s. Other chapters are ordered thematically. In Part II, "Personal Career
Planning," the themes touch on pathways and pitfalls confronting women as they plan their
career strategies. In Chapters 2, 3, and 4, Shapiro and Farrow discuss the merits of mentors,
Case analyzes women's speech, and Ely explores women's leadership styles, respectively; with
an eye to how women can apply the information to their own work situation. Family
relationships also have been shown to affect women's careers. In Chapter 5, "Husbands' Job
Satisfaction and Wives' Income," and Chapter 6, "Have Women's Career and Family Values
Changed?" questions are raised concerning the relationship between marriage, family, and
careers. In Chapter 7, Chao and Malik present a career planning model which ties together
individual, organizational, and societal constraints and facilitators of professional development.

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5. Changing Careers for More Money

By: Ms. Liu

May 21, 2009

Source:http://blogs.payscale.com/career-coach/2009/05/changing-careers-for-more-
money.html

I read your article online, "Ask the Career Coach" on Payscale.com. I found it very interesting
and helpful and will practice the steps you mentioned in order to find the job of my dreams.

I am very dissatisfied at my current job. I am an office manager for a cigar distributor

company. It is a small company; I am in the office most of the time by myself. I oversee all
operations of the company. My role includes everything from answering phones, making sales,
taking care of the books and conducting weekly meetings with sales staff in different states to
packaging and shipping cigars, etc.

My employer is also in the process of starting a construction company, for which I am

preparing all related documents and applications. I used to work with my current employer in a
construction company he used to own prior to starting the cigar business.

I am unhappy because I don't see any room for growth any time soon unless the construction
company kicks off in the next few months. But I am thinking of now; I need change now. The
salary is not bad but I want more and I don't foresee getting more any time soon.

Also, my husband owns a subcontractor company. It’s small but he has been in business for
over 10 years. He owns the company along with his mother and brother. I help sometimes since
I do have experience in construction, but can only help so much. I do not want them to feel like
I want to take over. So I decided to start my own company with my husband to do jobs on the
side with both of us keeping our current positions. That did not work since the license he has is
already under his company's name. Now I would need a license in order for us to be able to
pull permits under our company's license. So we are stuck in that sense and I am very
disappointed that it did not go far.

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6. Career paths of global managers: Towards future research

By: Tineke Cappellen & Maddy Janssens

12 September 2005.

Source: http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5M-4H3939T-
1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId
=997154270&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_useri
d=10&md5=d748a3e12a1c4e2d409c9889f3f20dd6

The aim of this paper is to identify potentially productive areas where future research on global
managers’ careers is warranted. Approaching career as a path, we conceptualize a global career
path as an intersection of three domains: an individual, an organizational and a global
environment domain. To identify, within each domain, the most important factors influencing a
global career, we first conducted a review of the literature on boundaryless careers and global
managers. This review allowed us to identify those factors that are most relevant to the
changing nature of careers and global assignments. We then reviewed past empirical research
on international careers to map how previous studies have addressed those factors, further
guiding us to formulate directions for future research on global careers. As well as indicating
these specific research implications, we propose a contextualized research approach that
facilitates understanding of different career moves over time as well as the overall direction of
a global career path.

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 INTRODUCTION

THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW

The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance
market, and growing at a rapid pace of 32-34 per cent annually, according to the Life Insurance
Council.

Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business
income in March 2010, while private players posted a 47 per cent growth in new business
premium.

Moreover, according to IRDA, insurers sold 10.55 million new policies in 2009-10 with LIC
selling 8.52 million and private companies 2.03 million policies. At the end of March 2010,
LIC held 65 per cent market share in terms of new business income collection with the private
sector contributing the remaining 35 per cent share in 2009-10.

According to IRDA, total premium collected in 2009-10 was US$ 24.64 billion, an increase of
25.46 per cent over US$ 19.64 billion collected in 2008-09.

A growth of 18 per cent is expected in total premium income and is likely to cross the US$
64.93 billion mark, according to B Mathur, Secretary General, Life Insurance Council.

19
HISTORICAL PERSPECTIVE

The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days insurance charged for Indian lives was
more than the non - Indian lives, as Indian lives were considered more risky to cover. The
Bombay Mutual Life Insurance Society started its business in 1870It was the same company to
charge same premium for both Indian and non Indian lives. The Oriental Assurance Company
was established in 1880. The General insurance business in India, on the other hand, can trace
its roots to Triton Insurance Company Limited, the first general insurance company established
in the year 1850 in Calcutta by the British. Till the end of the nineteenth century insurance
business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the life insurance Companies
Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's
sullied insurance business in India. By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of1938 that strict
State Control is there over the insurance business. The insurance business grew at a faster pace
than other business. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create the much needed
funds for rapid industrialization. This was in conformity with the Government's chosen path of
State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and
grouped into four companies- National Insurance Company, New India Assurance Company,
Oriental Insurance Company and United India Insurance Company. These were subsidiaries of
the General Insurance Company (GIC).

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KEY MILESTONES

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 by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-
with a capital contribution of Rs. 5 crore from the Government of India.

INDUSTRY REFORMS

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. Since being set up as an independent statutory body the IRDA has put in
a framework of globally compatible regulations.

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 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.

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“ Indian Insurance Business Projected to US$60 Billion by 2010 ”:
ASSOCHEM

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected a
500% increase in the size of current Indian insurance business from US$ 10 billion to US$ 60
billion by 2010 particularly in view of contribution that the rural and semi-urban insurance will
make to it.

Rural and Semi-Urban Life Insurance business is expected to touch US$ 20 billion figure in
next 4 years from current level of less than US$ 5 billion now as rural and semi-urban folk will
want themselves to ensure them for better future and their rising purchasing power will
motivate them to move towards insurance sector.

In view of Assocham, the non-life insurance will rise to US$ 15 billion by 2010 from its
negligible size now and in Urban areas, life insurance businesses are anticipated to reach US$
15 billion and that of non-life insurance US$ 10 billion, according to Chamber Paper on
Insurance Sector : Its Future Perspective.

Assocham has revealed that rural and semi-urban India shall contribute US $35 billion to the
Indian insurance industry by 2010, including US $20 billion by way of life insurance and the
rest US $15 billion through non-life insurance schemes. A large part of rural India is still
untapped due to poor distribution, large distances and high costs relative to returns. Urban
sector insurance is estimated to reach US $25 billion by 2010, life insurance US $15 billion
and non-life insurance US $10 billion.

Estimating the potential of the Indian insurance market from the perspective of macro-
economic variables such as the ratio of premium to GDP, Assocham Papers reveals that India’s
life insurance premium, as a percentage of GDP is 1.8% against 5.2% in the US, 6.5% in the
UK or 8% in South Korea.

Assocham findings further reveals that in the coming years the corporate segment, as a whole
will not be a big growth area for insurance companies. This is because penetration is already
good and companies receive good services. In both volumes and profitability therefore, the
scope for expansion is modest. Survey suggested that insurer’s strategy should be to stimulate
demand in areas that are currently not served at all. Insurance companies mostly focus on
manufacturing sector, however, the services sector is taking a large and growing share of
India’s GDP. This offers immense opportunities for expansion opportunities.

Being an agrarian economy again there are immense opportunities for the insurance companies
to provide the liability and risks associated in this sector. The Paper found that the rural
markets are still virgin territories to a great extent and offer exciting opportunities for insurance
companies. To understand the prospects for insurance companies in rural India, it is very
important to understand the requirements of India's villagers, their daily lives, their peculiar
needs and their occupational structures. There are farmers, craftsmen, milkmen, weavers,
casual labourers, construction workers and shopkeepers and so on. More often than not, they
are into more than one profession.
22
The rural market offers tremendous growth opportunities for insurance companies and insurers
should develop viable and cost-effective distribution channels; build consumer awareness and
confidence. The Paper found that there are a total 124 million rural households. Nearly 20% of
all farmers in rural India own a Kissan Credit cards. The 25 million credit cards used till date
offer a huge data base and opportunity for insurance companies. An extensive rural agent
network for sale of insurance products could be established. The agent can play a major role in
creating awareness, motivating purchase and rendering insurance services.

There should be nothing to stop insurance companies from trying to pursue their own unique
policies and target whatever needs that they want to target in rural India. Assocham suggests
that insurance needs to be packaged in such a form that it appears as an acceptable investment
to the rural people. In the near future, when we’ll see more innovations in agriculture in the
form of corporatization or a more professional approach from the farmers’ side, insurance will
definitely be one option that the rural Indian is going to accept.

MAJOR PLAYERS EXIST IN THE INDIAN LIFE INSURANCE

INDUSTRY:

23
24
CHAPTER 4

25
INTRODUCTION TO HDFC & STANDARD LIFE

HDFC:
HDFC Limited, India's premier housing finance institution has assisted more than 3.4 million
families own a home, since its inception in 1977 across 2400 cities and towns through its
network of over 271 offices. It has international offices in Dubai, London and Singapore with
service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a
home back in India. As of December 2009, the total asset size has crossed more than Rs.
104,560 crores including the mortgage loan assets of more than Rs.90,400 crores. The
corporation has a deposit base of over Rs. 23,000 crores, earning the trust of nearly one million
depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC
has set benchmarks for the Indian housing finance industry. Recognition for the service to the
sector has come from several national and international entities including the World Bank that
has lauded HDFC as a model housing finance company for the developing countries. HDFC
has undertaken a lot of consultancies abroad assisting different countries including Egypt,
Maldives, and Bangladesh in the setting up of housing finance companies .

SNAPSHOT-I
 Incorporated in 1977 as the first specialized Mortgage Company in India.
 Almost 90% of initial shareholding in the hands of domestic institutes and retail
investors. Current 77% of shares held by foreign institutional investors.
 Besides the core business of mortgage HDFC has evolved into a financial conglomerate
with holdings In:
 HDFC Standard Life insurance Company- HDFC holds 78.07 %.
 HDFC Asset Management Company – HDFC holds 50.1%
 HDFC Bank- HDFC holds 22.25%.
 Intelenet Global (Business Process Outsourcing) – HDFC holds 50%
 .HDFC Chubb General Insurance Company – HDFC holds 74%.

26
  HDFC is India’s 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. 36,000 Cr.
 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
 Stable and experienced management
 High service standards
 Awarded The Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
 Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at
the third Annual Outlook Money Awards.

KEY PLAYERS

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of
Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC
Limited in a senior management position in 1978. He was inducted as a whole-time director of
HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November,
2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr.
Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of
Technology, Bombay and a Masters Degree in Business Administration from The American
University, Washington DC.

27
ASSOCIATED COMPANIES:

HDFC Limited HDFC Bank

HDFC Mutual Fund HDFC Sales

HDFC ERGO General Insurance

(a) Other Companies

 HDFC Trustee Company Ltd.

 GRUH Finance Ltd.
 HDFC Developers Ltd.
 HDFC Property Ventures Ltd.
 HDFC Ventures Trustee Company Ltd.
 HDFC Investments Ltd.
 HDFC Holdings Ltd.
 Credit Information Bureau (India) Ltd
 HDFC Securities

28
HDFC Bank: World Class Indian Bank- among the top private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

Intelenet Global: BPO services for international customers.

CIBIL: Credit Information Bureau India Limited.

HDFC Chubb: Upcoming Private companies in the field of General Insurance.

HDFC Mutual Fund

HDFC reality.com: Helps to search properties in all major cities in India

HDFC securities

STANDARD LIFE:
Standard Life is one of the UK's leading long term savings and investments companies
headquartered in Edinburgh and operating internationally. Established in 1825, Standard Life
provides life assurance and pensions, investment management and healthcare insurance
products to over 6 million customers worldwide. The Group has around 10,000 employees
across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland
China. At the end of December 2010 the Group had total assets under administration of
£170.1bn. Standard Life's diverse business includes one of the largest life and pensions
businesses in the UK with more than 4 million customers; Standard Life Investments, which
currently manages assets of over £138.7bn globally and Standard Life Healthcare, a private
medical insurance company which is one of the largest in the UK. On 10 July 2006, after 80
years as a mutual company, Standard Life Assurance Company demutualised and Standard

29
Life plc was listed on the London Stock Exchange. Standard Life now has approximately 1.5
million individual shareholders in over 50 countries around the world .

SNAPSHOT

 Founded in 1875, company supporting generation for last 179 years.

 Currently over 5 million Policy holders benefiting from the services offered.
 Europe’s largest mutual life insurer.
 The Standard Life group has been looking after the financial needs of customers for
over 180 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
 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    the
Financial Adviser Service 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

30
JOINT VENTURE

Country of registration or Share class Name incorporation and proportion held Year end Nature
of business

Heng An Standard Life China Ordinary shares 50.0% 31 Dec Life assuranceHDFC Standard
Life Insurance Company Limited** IndiaOrdinary shares 18.6% 31 Mar Life assuranceHDFC
Asset Management Company Limited* **
India Ordinary shares 49.9% 31 Mar Investment management*
Owned by a subsidiary undertaking of the Company.**
The Company also has a 14.5% interest in Housing Development Finance Corporation
Limited (“HDFC Limited”). HDFC Limited owns 81.4% and 50.1%of HDFC Standard Life
Insurance Company Limited and HDFC Asset Management Company respectively. This gives
theGroup an effective interest in thesecompanies of 30% and 57% respectively. The Company
does not exercise dominant influence over either of these joint ventures.The current operations
of these companies are not significant in relation to the accounts of the Group.

31
CHAPTER 5

32
HDFC STANDARD LIFE INSURANCE COMPANY
LIMITED

INTRODUCTION:

HDFC Standard Life believes that establishing a strong and ethical foundation is an essential
prerequisite for long-term sustainable growth. To ensure this, co. have concentrated its focus
on expansion of branch network, organizing an efficient and well trained sales force, and
setting up appropriate systems and processes with optimum use of technology. As all these
areas form the basic infrastructure for establishing the highest possible customer service
standards.

HDFC Standard Life Insurance’s core values are drilled down to all levels of employees, as
these are inviolable. Company continue to promote high integrity in business practices and
shun short cuts and unethical practices, as co. wish to be perceived as an institution with high
moral standing. Since HDFC Standard Life Insurance co.’s inception in 2000, when the Indian
insurance space was opened for private participation, co. have consistently focused on setting
benchmarks in all aspect on insurance business. Being the first private player to be registered
with the IRDA and the first to issue a policy on December 12, 2000, HDFC Standard
differentiates itself from its competitors on the basis of following reason:

 Strong Promoter
 Preferred and Trusted Brand
 Investment Philosophy
 Need-Based Selling Approach
 Risk Control Framework
 Focus on Training
 Focus on Long-Term Value
 Transparent Dealing
 Strict Compliance with Regulations
 Diversified Product Portfolio

BUSINESS GROWTH

33
Business growth of HDFC Standard Life:

HDFC Standard Life, one of the leading private life insurance companies in India declared its
annual results for the financial year ending March 31, 2008. The company generated New
Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth
of 63%. The growth was primarily driven by the success of the company's initiative on
structured sales processes based on customer needs and their assessments.

HDFC Standard Life, one of India’s leading private life insurance companies declared its
annual results for the financial year ending March 31, 2010. The growth was primarily driven
by the company’s structured sales processes based on customer needs and their assessments,
wide range of product portfolio and diverse distribution network.
Mr. Paresh Parasnis, Principal Officer and Executive Director, said, “The financial year 2009-
10 was a defining year with the unfolding of several unexpected events – sharp correction in
financial markets and a spread of recessionary trends. These events also had an impact on the
Indian life insurance industry. We are happy that our new policies issued grew by 16% over the
last year. However, given the uncertainty in the overall scenario, customers have reduced their
annual premium commitment on new policies. At the same time, existing policies continued to
be in force reflected in our renewal premium, which posted a healthy growth of 34%.”

. HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium
Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is
an internationally accepted indicator of an insurance company’s performance.
HDFC Standard Life maintained its healthy pipeline of products last year by launching11
products apart from slashing the premium rates of its Term Assurance Plan premium rates by
about 25% across different age bands. “Our entry into the health insurance market last year
with the launch of two products – Surgi Care and Critical Care was a significant move in line
with our business objective. The low penetration of health insurance in India gives us a
tremendous opportunity to provide quality health insurance. Our health products along our
complete range of life insurance and pension’s portfolio meet almost every aspect of an
individual’s requirements,” Mr. Parasnis added.

KEY STRENGTH

34
Financial Expertise
As a joint venture of leading financial services group. HDFC standard Life has the financial
expertise required to manage long-term investments safely and efficiently.

Range of Solutions
HDFC SLIC has a range of individual and group solutions, which can be easily customized to
specific needs. These group solutions have been designed to offer complete flexibility
combined with a low charging structure.

Strong Ethical Values:

HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment with
the customers is not allowed.

Most respected Private Insurance Company

HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class
Magazine Business World for Integrity, Innovation and Customer Care.

CORPORATE OBJECTIVE

 Focus on the productivity of each consultant, corporate or individual, while stressing on

the quality of proposals

 Quick roll out of Products

 Efficiency of Operations

 Meet Social & Rural sector obligations

VISION

35
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'.

VALUES
Values that we observe while we work:

 Integrity
 Innovation
 Customer
 People Care
 Teamwork
 Joy and Simplicity

36
BOARD MEMBERS

Brief profile of the Board of Directors:

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director
of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC
Limited in a senior management position in 1978. He was inducted as a whole-time director of
HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of
the Institute of Chartered Accountants (England & Wales).

Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is
currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC
Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing
Director in 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and
a member of the Michigan Association of Certified Public Accountants.

Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law
and holds a Master's degree in Economics from Delhi University. She has been employed with
HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy
Managing Director in 2007. She is responsible for overseeing all aspects of lending operations
of HDFC Limited.

Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director and
remained in that position until December 2009. He is appointed as the Executive Europe on 1st
January 2010. He was awarded the Scottish Business Awards Finance Director of the Year and
from 2004 to 2005. He is a member of the Institute of Chartered Accountants of Scotland. He
joined the Board of Directors in February 2010.

Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard Life in
the year 2010. Nathan joined Standard Life in 1982 as Investment Manager, responsible for all
UK net funds. He was appointed a Director of the Standard Life Investments’ board. He is a

37
Mathematics graduate from Oxford University and the Member of the Securities Institute. He
joined the Board of Directors in December 2009.

Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited
and is responsible for overseeing Investment Process & Chief Executive Officer Function.
Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of
UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS
Securities and Managing Director International Equities. He was also responsible for Economic
and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board
of Directors in November 2005.

Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing
Committee Member of Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of professional interest. Mr.
Divan has wide experience in auditing accounts of large public limited companies and
nationalised banks, financial and taxation planning of individuals and limited companies and
also has substantial experience in structuring overseas investments to and from India.

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and
Change Management. Mr. Pant, until 2002 was a Partner &Vice-President at Bain & Company,
Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate
Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an
MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and
Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India
Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange
Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve
Bank of India (RBI).

Mr. A. K.T. Chari has joined HDFC Standard Life as a Director on March 10, 2010. Mr.
Chari has completed his Electrical Engineering from Madras University in 1962. He is
associated with Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years.
Currently he is handling project finance for infrastructure projects at IDFC. Prior to this he was
associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999.

38
Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having
been Deputy Chairman since March 2006. He became a director of the Standard Life
Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was
appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009.
Gerry held senior positions within the Department of Health and Social Security and HM
Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New
York, and was Vice Chairman of Schroders’ worldwide investment banking activities from
1998 to 1999. He is the Alternate Director to Mr. David Nish.

Mr. Michael G Connarty is responsible for Standard Life's investments in life assurance Joint
Ventures in India and China. He holds a degree in Law and MBA. He has worked with
Standard Life for 33 years in managerial positions covering a number of fields such as
Pensions law, International Marketing, Operational Management, Strategy, Risk, Compliance,
Company Secretarial and Banking. He has acted as Project Manager for the start-up project of
the Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch.

Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life. Before joining HDFC
Standard Life, he was the MD and CEO of Infosys BPO and was also heading an Independent
Validation Services unit in Infosys Technologies. He started his career with Bank of America
delivering diverse roles ranging from Head of Technology Investment Banking for Asia,
Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer
of Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore
where he headed their investment banking franchise for South East Asia and structured finance
practice for Asia before joining Infosys BPO in 2005. Mr. Chaudhry completed his
Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987
from IIM, Ahmedabad.

Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A
fellow of the Institute of Chartered Accountants of India, he has been associated with the
HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for
driving and spearheading several key initiatives. As one of the founding members of HDFC
Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and
servicing strategy, leading recruitment, contributing to product launches and performance
management system, overseeing new business and claims settlement, customer interactions etc.

39
MARKET ANALYSIS:

MARKET SHARE

PRIVATE SECTOR
PUBLIC SECTOR

MARKET SHARE OF VARIOUS PLAYER IN PRIVATE SECTOR:

ICICI 12%
HDFC STANDARD LIFE
INSURANCE 5%
BAJAJ ALLIANZ 8%
SBI LIFE 9%
BIRLA SUNLIFE 5%
MAX NEW YORK 3%
RELIANCE LIFE INSURANCE
6%
OTHERS 12%

40
MILESTONES IN THE HISTORY:
Awards and accolades in 2010:

“Best Companies to Work for in India in 2010”

HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in
2010. The company participated in the Great Places to Work® study for the first time and
ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work
for, in India 2010 list. The company was also awarded for its unique employee initiative -
Mission –in-Genius national quiz. The study has shown that HDFC Standard Life
conscientiously develops employee talent programmes to keep engaging and motivating its
employees. The company provides some unique platforms such as 'Mission in Genius' national
quiz. The management is accessible to all at all times and sincerely seeks feedback from its
employees through programmes such as 'Sparsh', the study said.

The Best Companies to Work in India is a study conducted by the Great Place to Work®
Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study
in India, which received overwhelming response from more than 400 companies, making it the
largest such study in India. And only 50 companies made it to the Best Companies to Work
list!

'YoungStar Super' Voted 'Product of the Year 2010'

HDFC Standard Life’s YoungStar Super has been voted ‘Product of the Year 2010’ in the
'Insurance' category by more than 30,000 consumers nationwide across 36 markets. YoungStar
Super is an unit linked Children Plan with unique benefits such as bumper additions, double
and triple benefits, attractive allocations rates, and seven different funds.

41
The consumer study on product innovation in India was conducted by A C Nielsen, the leading
global research firm. Entries were accepted from products that demonstrate innovation in their
product function, design, packaging or process or any other specified form. Entries were then
filtered by a jury of distinguished industry professionals to ensure that the products meet the
innovation criteria before they were passed on to the consumer votes/survey round. Product of
the Year is an Internationally Recognised Standard that celebrates and rewards the best
innovations in consumer products and services. The Product of the Year is selected through an
independent consumer survey across the country in 26 countries for the past 20 years.

Milestones:

 Received the PCQues1t Best IT Implementation Award 2008 for Consultant Corner, the
applications for its financial consultants, providing centralized control over a vast geographical
spread for key business units such as inventory, training, licensing, etc.
 Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO
Security Award for a secure computing environment, including identity management respectively.
 Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award.
 HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative
banks in the rural areas.
 Continued to increase its focus on quality service, by putting in place a robust mechanism to
capture ‘Voice of the Customer’ through service audits across its offices. This was complemented
by use of technology that enabled capture of all interactions with customers across all touch points
 Sar Utha Ke Jiyo was honoured as ‘Among India’s 60 Glorious Advertising Moments. The
advertisements of the company were ranked 6th amongst ‘The 10 most effective Advertisements’ in
September 2007.
 Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking
implementation of an enterprise-wide workflow system. In addition the company also bagged the
EMC storage award for being the most innovative users of storage and storage management.
 Pension Plan Tops Mint’s Survey of Best TV Ads.
 HDFC Standard Life’s advertising created high awareness for the brand and bagged 2 silver and 1
bronze awards at the ADFEST 2007 National Awards organised by the Advertising Agencies
Association of India (AAAI). The 3 awards are the highest won by any single brand in the
financial services business (including banking, mutual fund, insurance and other financial
services).
 Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a
study conducted by the Brand Equity – Economic Times, the leading business publication of India.
 The year witnessed the launch of ‘My Account’, a web-based facility with various policy servicing
options such as switch, premium redirection to be executed by clients, without recourse to visiting
a branch
 As against a regulatory requirement of writing 18% of all policies in rural areas, the company
issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the year.
 The company had been awarded the “Intelligent Enterprise” Award by the Express Computer
Magazine – Part of the Indian Express Group, for investing in workflow and imaging technology
which helped in increasing volumes without affecting service standards.
 Was selected as the '4Ps Power Brand 2006', for being one of India's Top 25 'Most Innovative
Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research) and
4Ps - Business and Marketing (a Business and Marketing magazine published by Planman Media).
42
 Biggest NGO covered on 28th March 2006 with 14000 lives.
 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 long-standing
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, India’s number 1
personal finance magazine
 Rated by ‘Business world’ as ‘India’s Most Respected Private Life Insurance Company’ in
2004.
 47 Has the highest brand recall, close to 80% (Source: AC Neilson ORGMARG, April
2005)
 Has one of the widest branch networks with offices in over 100 cities servicing over 440
towns

43
 A COMPREHENSIVE PRODUCT PORFOLIO TO MEET CUSTOMER NEEDS :

The right investment strategies won't just help plan for a more comfortable tomorrow -- they
will help you get “Sar Utha ke Jiyo”. At HDFC SLIC, life insurance plans are created keeping in
mind the changing needs of family. Its life insurance plans are designed to provide you with
flexible options that meet both protection and savings needs. It offers a full range of
transparent, flexible and value for money products. HDFC SLIC products are modern and
contemporary unitized products that offer unique customer benefits like flexibility to choose
cover levels, indexation and partial withdrawals. (Source: www.hdfcslic.com)

Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected. Indians,
who had always seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer. Some of these products
include investment plans with insurance and good returns (unit linked plans), multi – purpose
insurance plans, pension plans, child plans and money back plans. (www.wikipedia.com)

44
Products of HDFC standard life insurance:

 Young and Single:

Savings:
 Endowment Assurance
 Money Back
 Unit linked Enhanced
 Life Protection
 Simplilife

Health:
 Surgicare
 Critical care
 Just married:

Savings:
 Joint life plans
 Unit linked Endowment
 Simplilife

Protection:
 Term Assurance
 Loan cover term
 Married with children:

Savings:
 Children’s Plan
45
  Unit linked Young Star*

Investments:
 Single premium whole life
 Wealth Maximizer
 Pension
 Pension plans

Nearing Retirements:

Investments:
 Single premium whole life
 Wealth Maximizer health
 Surgicare
 Critical care

Pension:
 Immediate Annuity

 Group

 Social

Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this
in mind, we have a varied range of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your family.

Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These plans offer valuable peace of
mind at a small price.
Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

46
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans
Our Pension Plans help you secure your financial independence even after retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked
Pension Plus

Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such as
buying a dream home or fulfilling your children immediate and future needs.
Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit
Linked Endowment Plus, Unit Linked Endowment Plus II,
Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit
Linked Young Star Plus, Unit Linked Young Star Plus II.

47
Group Products:
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive employers
who wish to provide the best and most innovative employee benefit solutions to their
employees. We offer different products for different needs of employers ranging from term
insurance plans for pure protection to voluntary plans such as superannuation and leave
encashment.

We now offer the following group products to our esteemed corporate clients:

 Group Term Insurance

 Group Variable Term Insurance

 Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with Gratuity,
Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of
your company

Also suitable for other employee benefit schemes such as salary saving schemes and wealth
management schemes

Social Product

Development insurance plan

Development Insurance plan is an insurance plan which provides life cover to members of a
Development Agency for a term of one year. On the death of any member of the group insured
during the year of cover, a lump sum is paid to those member beneficiaries to help meet some
of the immediate financial needs following their loss.

Eligibility

 Members of the development agency and their spouses with:

 Minimum age at the start of the policy 18 years last birthday
 Maximum age at the start of policy 50 years last birthday

48
 ADVERTISEMENT AND SALES PROMOTION

Daughter: “Dad”. Father: “Bolo”

Film opens in the compound of a house. Father is Daughter: “Nayi car lene mein hee bhalaai
checking something inside the bonnet of an old hai.” Dad nods in agreement without
small car. His daughter, around 27-28 years old, looking up. Dad: “Hmmm…”
is working on a lap top next to him

Dad looks at her and asks.

Daughter continues affirmatively as she signs on
Dad: “Huh, Badi kyon?”
a cheque. Daughter: “Aur wo bhi badi wali.

Dad doesn’t know what to say as he looks

Daughter: “Relax dad, plan kiya.” at the cheque. Daughter pleads: “Please…
Dad doesn’t know what to say: “Par...” dad”

Super: Unit Linked Savings Plans Father daughter are sitting.

MVO: “Unit Linked Savings Plans from HDFC MVO: “Sar Utha Ke Jiyo.”
Standard Life. zimmedari nibhao, Aaj bhi kal
bhi ”

49
FINANCIAL PERFORMANCE

HDFC Standard Life Insurance Company Limited (HDFC-SL):

Gross premium income of HDFC-SL for the year ended March 31, 2010 stood at Rs. 7,005
crores as compared to Rs. 5,565 crores in the previous year. The sum assured inforce for the
current year was Rs. 72,610 crores as compared to Rs. 57,158 crores in the previous year.

The company has a portfolio of 32 retail products and 4 group products covering saving,
investment, protection and retirement needs of the customers, along with five optional rider
benefits.

HDFC-SL covers approximately 700 cities and towns in India through its 568 distribution
points in the country with approximately 2,00,000 financial consultants appointed by the
company. HDFC-SL also has a strong association with its bancassurance partners, which has
contributed significantly to the growth of the company during the year.

HDFC-SL has reported a loss of Rs. 275 crores for the year ended March 31, 2010. Like most
life insurance companies in the initial phase, HDFC-SL has reported losses. This is essentially
due to the accounting norms applicable to insurance companies wherein the commission
expenses are charged upfront in the year in which they are incurred while the corresponding
income is recognised over the entire life of the policies issued. The mismatch between
expenses and income has the effect of magnifying the initial losses of HDFC-SL.

HDFC holds 72.56% of the equity share capital in HDFC-SL.

HDFC’s subsidiary companies have strong synergies with HDFC and hence efforts are
channelled into cross selling so as to offer customers a wide range of financial products and
services under the ‘HDFC’ brand.

HDFC is a Composite Corporate Agent for HDFC Standard Life Insurance Company Limited
(HDFC-SL) and HDFC ERGO General Insurance Company Limited (HDFC-ERGO).

Review of Key Subsidiary and Associate Companies:

HDFC Bank Limited (HDFC Bank)

HDFC and HDFC Bank continue to maintain an arm’s length relationship in accordance with the
regulatory framework. Both organisations, however, capitalise on the strong synergies through a system
of referrals, special arrangements and cross selling in order to effectively provide a wide range of
products and services under the HDFC brand name.

As at March 31, 2010, gross advances of HDFC Bank stood at Rs. 1,27,262 crores - an
increase of 27% over the previous year. As at March 31, 2010, HDFC Bank’s distribution
network included 1,725 branches and 4,232 ATMs in 779 cities as against 1,412 branches and
3,295 ATMs in 528 cities as of March 31, 2009.
50
 For the year ended March 31, 2010, HDFC Bank reported a profit after tax of Rs. 2,949 crores
as against Rs. 2,245 crores in the previous year, representing an increase of 31%. HDFC Bank
recommended a dividend of Rs. 12 per share as against Rs. 10 per share in the previous year.

HDFC together with its wholly owned subsidiaries, HDFC Investments Limited and HDFC Holdings
Limited holds 23.73% of the equity share capital of HDFC Bank.

HDFC Asset Management Company Limited (HDFC-AMC)

HDFC and Standard Life Investment Limited are the co-sponsors of HDFC Mutual Fund.

As at March 31, 2010, HDFC-AMC managed 33 debt and equity oriented schemes of HDFC Mutual
Fund. During the year, the average assets under management was Rs. 1,00,898 crores (which is
inclusive of average assets under discretionary portfolio management/ advisory services). The number
of investor accounts increased to over 39 lacs as at March 31, 2010 as compared to 34 lacs in the
previous year.

As at March 31, 2010, HDFC-AMC has points of acceptances in 206 locations across the country.

For the year ended March 31, 2010, HDFC-AMC reported a profit after tax of Rs. 208.37 crores as
against Rs. 129.11 crores in the previous year. HDFC-AMC paid an interim dividend of Rs. 22 per
share for the financial year ended March 31, 2010.

HDFC holds 60% of the equity share capital of HDFC-AMC.

HDFC ERGO General Insurance Company Limited (HDFC-ERGO)

For the year ended March 31, 2010, HDFC-ERGO emerged as the fifth largest private sector player in
the general insurance industry. Following a multi-product and multi-channel strategy, HDFC-ERGO
has expanded its branch network to 78 as compared to 50 last year.

The company offers a complete range of insurance products like motor, health, travel, home and
personal accident in retail segment and customised products like property, marine, aviation and liability
insurance in the corporate segment. In addition, HDFC-ERGO continues to leverage on HDFC group’s
distribution capability to drive its growth. The company has a balanced portfolio mix with corporate
business accounting for 52% for the business and retail accounting for the
balance.

The general insurance industry registered a growth of 13% in FY 2009-10 as compared to 9% in the
previous year. In comparison, during the year, HDFC-ERGO recorded a growth of 168% as compared
to 56% in the previous year with a Gross Written Premium (including cessions from the motor pool) of
Rs. 1,004 crores as against Rs. 374 crores in the previous year.

During the year, the company made a loss of Rs. 94 crores. The loss for the year was primarily on
account of significant investments in the scale-up of business, continued pricing pressure as a result of
detariffing and higher share of losses from Indian Motor Third Party Pool.

HDFC holds 74% of the equity share capital of HDFC-ERGO.

51
HDFC Property Funds

HDFC Venture Capital Limited (HVCL) is the investment manager to HDFC Property Fund, a
registered venture capital fund with the Securities and Exchange Board of India (SEBI).

HDFC Property Fund currently has two schemes. The first scheme is HDFC India Real Estate Fund
(HI- REF), with a corpus of Rs. 1,000 crores, which has been fully invested. Exits are being explored
for some of the investments of the scheme.

The second scheme, HDFC IT Corridor Fund has a corpus of Rs. 446.40 crores. This scheme has
disbursed the entire corpus in rental income yielding commercial properties in major cities in India and
exits are being explored for some investments of the scheme.

During the year, HVCL made a profit after tax of Rs. 12.73 crores. The directors of HVCL approved
the payment of two interim dividends aggregating Rs. 205 per equity share.

HDFC holds 80.5% of the equity share capital of HVCL.

HDFC Property Ventures Limited (HPVL) provides investment advisory services to Indian and
overseas asset management companies (AMCs). Such AMCs in turn manage and advise Indian and
offshore private equity funds.

HDFC holds 100% of the equity share capital of HPVL.

GRUH Finance Limited (GRUH)

GRUH is a housing finance company with operations primarily in the states of Gujarat and
Maharashtra and has now expanded its network to other states like Karnataka, Madhya Pradesh,
Rajasthan, Chhatisgarh and Tamil Nadu. During the year, GRUH disbursed loans amounting to Rs. 780
crores.

For the year ended March 31, 2010, GRUH reported a profit after tax of Rs. 68.96 crores as compared
to Rs. 50.28 crores in the previous year - an increase of 37%. The company recommended a dividend of
Rs. 6.50 per share as compared to Rs. 4.80 per share in the previous year.

HDFC’s holding in GRUH currently stands at 61.36%.

HDFC Sales Private Limited (HSPL)

HDFC Sales Private Limited (HSPL) continues to strengthen the Corporation’s marketing and sales
efforts by providing a dedicated sales force to sell home loans and other financial products.

HSPL has a presence in 65 locations. During the period under review, HSPL sourced loans accounting
for 46% of individual loans disbursed by HDFC.

HSPL is a wholly owned subsidiary of HDFC.

52
.

53
CHAPTER 6

54
 CAREER PATH IN HDFC SLIC

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions and providing the
career opportunities to its employees. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on December 31, 2009 holds 72.38 per
cent of equity in the joint venture.

CAREER PATH

Channel Development Department Sales Department

Area Manager (AM) Territory Manager (TM)

Channel Development Business Development

Manager (CDM) Manager (BDM)

Channel Development Sales Development

Executive (CDE) Manager (SDM)

Recruitment Consultant Financial Consultant (FC)

55
The Career Path in HDFC Standard Life Insurance Company Ltd. mainly has two
operations in its all branches. HDFC Standard Life Insurance Company Ltd. has divided its
operation into two departments for the better management. These departments are:

 Channel Development Department

1. Area Managers
2. Channel Development Managers
3. Channel Development Executives
4. Recruitment Consultant

 Sales Department
1. Territory Manager
2. Business Development Managers
3. Sales Development Managers
4. Financial Consultants

Channel Development Department

Channel Development Department is department which plays a major role in the organization.
This department is engaged in recruiting the effective and efficient FCs for the organization so
the people they are recruiting is capable to bring the business for the organization and fulfill the
organizational goals and objectives. Recruiting the FCs not only task for the channel
development department but to provide the IRDA training to the selected candidate and
preparing for the IRDA exams for getting the IRDA license. After getting the IRDA license a
candidate is able to sell the insurance product and become the Financial Consultant, and he/she
transferred to the sales department for the further process.

56
Role of CDMs & CDEs

1. Team building The first step for any CDM is make a team for the recruitment process. A
CDM can use the different resource for the recruitment like Recruitment Consultants, Project
Trainees, E2E vendors & RPs. Through these resource of recruitment a CDM can move for the
further process.
2. Training & Induction The next step is to provide the training & induction programs for
his/her team (i.e. recruitment resource) and he/she should has to do field work with his/her
team.
3. Planning & Implementation of Lead Generation Activities. A CDM required minimum
one BOP per week, he can use the canopy, road shows, BTL activities as well for better
recruitment for the organization.
4. Resource Motivation and Drive.
One Vendor Review meet per Week ( Channel Development Manager to Review)
One Vendor Meet per Month( AM-CD to Address)
Felicitation & Rewards to top performers
5. IRDA Training & Examination A CDM has to arrange FC’s 50 hours training tracking
through LC & RC’s. and IRDA Examination Tracking through LC & RC’s and increasing I/O
Ratio.
6. MIS & Documentation A CDM keeps the records of documentation of vendor contracts &
payment modes and MIS on recruitment & licensing Of FC BM/TM wise
Keeping an Eye on first Business track,activisation through LC and HO Biz Update.
7. Relationship Management at Local Level A CDM has to be regular branch visits to keep
the better relationship with local level:
 Relationship Management( RM,TM,BM,SDM & Ops)
 Allocation of FC’s through TM/BM Retail
 FC Recruitment, Licensing & Business Updates to Retail functions
 Updating Ops-Agency Co-Ordinator on Process Changes
8. Checking Quality Parameters
 Q Score
 Q Score >3 is not allowed
 FC Pre Login Interview Sheet
 Fulfillment of RI documents
57
9. Recruitment Activity Monitor
 Ensure you update RAM daily
 100 % adherence

Sales Department

Sales Department is the most important department for any organization, without it no
organization move further. All the business is depends on the sales department and all the
operations are done for promoting the sales. So i.e. the better management and better sales
executive are require for increasing the sale of Insurance products (Insurance Policies). The
Territory Manager monitors the branch and all the BDMs are the subordinate of him. TM
keeps the eyes on all the activities or a branch and his/her subordinates like BDMs, SDMs,
CDMs, FCs and others. The Channel Development department helps in recruiting the best
Financial Consultant to the organization so he/she would be able to take more business (large
amount of Premiums) and helps in achieving the organizational goal. After getting the IRDA
licence FCs are transferred to sales department from channel development department under
different SDMs & BDMs. Then sales department provides them product and other training
which can make them to go in the market and to sell the insurance policies.

Be a Financial Consultant

Be a part of HDFC Standard Life Insurance Company Ltd. and grab the unlimited
opportunities and enjoy the reward, recognition and many more

 Tap into an unlimited earning potential

 Utilize spare time productively
 Get National & International Recognition
 Invest time and not money*
 Build stronger and life-long relationship
 Reinvent your life

58
BUSINESS DESCRIPTION

Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial
Consultant and help analyze your customer’s financial needs, provide customized financial
solutions to each one and conduct reviews on a regular basis to keep your customers on track.

Along with being a great career move you get associated with HDFC Standard Life Insurance,
India’s Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer
you unmatched support with various training programmes to help you excel in your endeavour.

A great career move in every way Zero investment, there is no start-up capital. You can work
full-time or part-time, depending on your convenience Sunrise industry Support every step of
the way At HDFC Standard Life, training is an inherent element of our support system - at no
extra cost - for our new Financial Consultants

EXCELLENT OPPORTUNITY

 Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding
career

 Flexible work timings – You can work whenever you like. You can work full-time or
part-time, depending on your convenience. However, the time you invest will determine
your success  

 Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or
Working Professionals.

 Zero Investment - There is no start-up capital required. Be your own boss with flexible
working environment, unlimited earning potential and opportunities to be part of a world
class sales team. 

 Attractive Remuneration - Company offers excellent commissions, award and rewards

for the performers.  
You have unlimited earning potential. Commission structure is pretty handsome and is 15-
40% and renewal commission of 5% second year onwards till the policy is in force.

59
 Certificate by IRDA- You will get world class training free of cost and certification by
Insurance Regulatory Development Authority.

 TRAINING- Perfects your knowledge about the insurance industry as well as our
products

 IRDA Training- Prepares you for your career as a Financial Consultant and enables you
to pass the IRDA examination easily
 Disha Training- Hones your selling skills, enables you to understand customer needs
and provide need-based insurance solutions
 Advanced Training- Upgrades your capability and knowledge through sophisticated
training programs customised for the changing world of financial products and markets

DESIRED PROFILE:

Age: 18 Yrs to 65 Yrs

Education: Intermediate or more
Experience: Not Mandatory
Type of Job: Full Time or Part Time

JOB DESCRIPTION FOR FINANCIAL CONSULTANTS

Pre sales role

 Identifying prospective clients.
 Meeting prospective clients.
 Understanding the need of the client.
 Presenting solutions to client.
 Closing sales.

Post sales role

 Taking 1-2 references from the client

60
 Providing timely updates to the client for maintaining Lifelong
relationship.

61
CHAPTER 7

62
RECRUITMENT PROCESS OF FCs
Fill up of Agency form

IRDA Training (50 hrs)

IRDA Exam

Fail Pass

Exit Product Training

Traditional Pr. ULIP Product

Internal Assessment

Fail Pass

Exit Certification

WHAT ARE THE ROLES OF A FINANCIAL CONSULTANT?

 Meet people and present services

63
  Understand their financial needs

 Customize Life Insurance Plans

 Provide efficient after-sale support

 Help customers protect their lifestyles,

 Realize their dreams and enjoy their lives

HDFC Standard Life Insurance Company Ltd. the World of Opportunities

HDFC Standard Life welcomes you in the world of opportunities, HDFC SLIC is providing
the great opportunities to its employees and its Career Path in HDFC is the competitive edge in
this competitive era. The HDFC SLIC has great opportunities:-

 Our Team

 The Opportunities

 Choosing the right place/company

 Rewards

 Recognition and respect

 Support function

 Training

 Marketing

 Sales

 Unlimited Earnings

64
Our Team

HDFC Standard Life Insurance Company Ltd. has finest team over 70,000+ FCs (Financial
Consultants) comprises of retired persons, Professionals, Brokers, housewives, students
Entrepreneurs / Businessmen, Charted Accountants and salaried persons which is providing the
competitive advantage to the organization to compete its competitors in the insurance sector as
competitive human resource.

OUR TEAM COMPRISES OF

65
 Retired Persons
Professionals Salaried

Finest Team
Of over Charted
Brokers
2,00,000 FCs Accountant

Housewives Entrepreneurs /Businessmen

Students

The Opportunities:

HDFC SLIC is providing the opportunities not only for the limited people, the HDFC SLIC is
providing the world wide opportunities to all people to support their family income, financial
Independence, start business with zero investments, experience in the Financial domain, no
work pressure, supplement income, complete/diversified product portfolio, lifelong
relationships, build relationships with a noble cause, time flexibility and many more
opportunities. HDFC SLIC providing opportunities to:-

66
  Women
 Supplement family income
 Financial Independence

 Young Entrepreneurs
 Start business with ZERO investment
 Own boss
 Hands-on experience in the financial domain

 Financial Professionals
 Supplement income
 A complete/diversified product portfolio
 Build lifelong relationships

 Retired
 Make your second innings stronger than first
 Build relationships with a noble cause
 Financial Independence0
Choosing the right place/company

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions and providing the
career opportunities to its employees. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on may 31, 2010 holds 72.38 per cent of
equity in the joint venture.

Why you should join the HDFC Standard Life Insurance Company Ltd. amongst all
insurance companies:

 HDFC Standard Life Insurance Company Ltd. is the

67
 first Private Life Insurance Company to licensed by IRDA

 Large network of over 300 branches

 Over 10lacs. Satisfied customers

 Over 2,00,000 Financial Consultants

 Maximum no. of MDRT qualifiers

Rewards, Recognition and respect

HDFC Standard Life Insurance Company Ltd. is providing the rewards, recognition &
respect to its family member for motivation and to create sprit of self belongingness so that the
employees can able to give their potential to the company and to achieve the organizational
goals and objective.
For Increasing the productivity of the employees HDFC Standard Life Insurance Company
Ltd. is providing the different facilities through rewards, recognition & respect:

 Star on Debut Club for newcomer FCs

 Clubs like Bronze, Silver, Gold & Centurion to enhance the earnings

 Monthly contests

 Topper’s C lub

 Sales Conventions at Exotic locations

 MDRT, COT & TOT Eligibility

Support Function

HDFC Standard Life Insurance Company Ltd. has created a world class support functions
which help its FCs to increase his earning. Thought you are your own boss but you are never
alone, in case of need/help in this profession HDFC SLIC Support system is always with you.

68
For example you are not able to convince your prospect due to some reason like information
and other then you can take help from S.D.M.(Sale Development Manager) as well as B.D.M.
(Business Development). HDFC SLIC has excellent training and development facilities and
different Customer Contact programs which improves and sharps the knowledge,
communication skills, convincing power and everything which would help you to increase the
business or to aid sales of the organization. Support system:

 World class training

 Support of numerous Customer Contact Programs to aid sales

 On-field Support from the Sales team

 Strong Brand Recognition

 24 hours Customer Support

 Superior Product Portfolio

(Lowest Fund Management Charges)

Unlimited Earnings

Commission on issuance of every policy.

Commission directly credited to bank account of FCs within 15 days. These commission
varies from 7.5-40% according to plan.

BASIC COMMISSION

First year Commission payable on regular premium conventional policies issued on or after 21st
march 2007

Name of the plan 1st year commission

Endowment Assurance plan 40%
Money Back plan 40%
Children’s plan 40%
Term Assurance plan 25%
Lone cover Term Assurance plan 69 25%
Personal Pension Plan 7.5%
RENEWAL COMMISSION:

Renewal commission would be paid from the 2 nd year onwards on regular premium policies.
Renewal commission is not payable on single premium plans.

Name of the plan Renewal commission 2nd year

onwards
Endowment Assurance plan 5%
Money Back Plan 5%
Children’s plan 5%
Lone cover Term Assurance Plan 5%
Term Assurance plan 5%
Personal Pension Plan 2%

BONUS COMMISSION

Bonus commission would be payable on the first year premium received and adjusted on the
regular premium policies under the following plans,
1.Endowment Assurance Plan
2.Money Back Plan
3.Children’s Plan
4.Term Assurance Plan
5.Lone Cover Term Assurance Plan

Bonus commission is not payable on the single premium plans and on the policies issued under
the Personal Pension Plan and all Unit Linked Plans.

Bonus commission rate would depend on financial consultant crossing the minimum
RNEP(Received Net Effective Premium) within one year.

Period RNEP Bonus commission % of the 1st year Premium

received
1,00,000 5%
1,50,000 10%
In one year
2,25,000 15%

70
How do I earn, say, Rs. 25,000pm?

 You need to sell Policy worth Rs. 1,25,000/-

 Average Premium Rs. 32,000/-

 Need to sell 4 Policies

 Need to meet at least 12 people. i.e. 1person in 2 days

Art of Earning

 No. Of Policies 4 in a month (Yearly 50)

 Average Premium Rs. 32,000/-yearly

 Incentive Earn 20% in 1st Year & renewal 4%

 Expected Business Growth 20%

Year Business Commission Renewals Total*

1 16.00 Lac 320000 - 320000
2 19.20 Lac 384000 64000 448000
3 23.00 Lac 460000 140800 600800
4 27.60 Lac 552000 232800 784800
5 33.00 Lac 660000 343200
*Indicative figures 1003200

Eligibility Criteria to become a Financial Consultant

Minimum Eligibility Criteria (Any 3/5 Criteria required, first criteria being mandatory)

 Age : 18 and Above

71
  Education : graduate.
 Has spent > 3 years in the city of current residence.
 Income > 3 Lakhs per annum.

Pre-requisites required to become a Financial Consultant

 Should undergo IRDA Training for 50 hrs.

 Should Pass the pre-recruitment exam conducted by Insurance Institute of India.

Licensing Process

Step 1 : Registration
Step 2 : IRDA Training
Step 3 : IRDA Examination

Documentation Required for Acquiring a License Forms

STEP 1 : REGISTRATION

 Agency Application form

 Form VA
 Exam Form
 Agreement Copy
( all pages to be signed by the FC )
 Know Your Customer ( KYC ) Addendum

Supporting Personal Documents required

 9 Passport size photographs

 Age Proof
 Proof of Education
72
  Proof of Identity
 Proof of Residence
 PAN Card or PAN Application

 Fee : Rs. 925 /- ( Off Line )

 Fee : Rs. 825 /- ( On Line )

STEP 2 – IRDA TRAINING

All Candidates have to undergo and complete 50 hours of IRDA Training.

Types of Training

1. Off Line (Class Room) Training

2. On Line Training

IRDA Refresher Classes are conducted for the FC before the IRDA Exam.

STEP 3 – IRDA EXAMINATION

Pre Recruitment Examination can be done by 2 Modes,

1. On line
2. Off line

Exams are conducted by Insurance Institute of India (III)

73
CHAPTER 8

74
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

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, House Wives and Retired Persons in Pune.

1. 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.

2. RESEARCH PLAN:

1. Preliminary Investigation: In which data on the situation surrounding the problems shall be
gathered to arrive at
· The correct definition of the problem.
· An understanding of its environment.

2. Exploratory Study: To determine the approximate area where the problem lies.
75
3 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.

4. 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 closedended, both the types of questions has been
used.

5.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.

6. 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.

76
 Sampling Units: Chartered Accountants, Tax Consultants, Lawyers, Business Man,
Professionals and House Wives of Delhi.
 Sample Technique: Random Sampling.
 Research Instrument: Structured Questionnaire.
 Contact Method: Personal Interview.

77
CHAPTER 9

78
DATA ANALYSIS, INTERPRETATION
& PRESENTATION
1.Your Age?
TABLE

Sr. No. Category No. of Percentage

Respondents

1 18-23 Years 40 20%

2 24-29 Years 70 35%
3 30-35 Years 60 30%
4 35 & above 30 15%
Total 200 100%
Base 200 respondents

GRAPH

18-23
Years

24-29
Years

30-35
Years

35 &
above

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

79
2. Marital status?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Married 140 70%

2 Unmarried 60 30%
Total 200 100%
Base 200 respondents
GRAPH

Married

Unmarried

Interpretation

From the table and graph above it can be seen that

➢ 70% respondent’s are married.

➢ 30% respondent’s are unmarried.

80
3. Educational Qualification?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Under graduate 50 25%

2 Graduate 80 40%
3 Post graduate 70 35%
Total 200 100%
Base 200 respondents
GRAPH

Under graduate

Graduate

Post graduate

Interpretation
From the table and graph above it can be seen that
➢ 25% respondent’s are Under graduate.
➢ 40% respondent’s are Graduate.

➢ 35% respondents are Post graduate.

81
3. Number Of Year’s Are You in Delhi?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Less than five years 78 39%

2 More than five years 122 61%
Total 200 100%
Base 200 respondents
GRAPH

Less than five years

More than five years

Interpretation
From the table and graph above it can be seen that
➢ 39% respondent’s are in Pune is less than five year’s.
➢ 61% respondent’s are in Pune is more than five year’s.

82
5. Your Occupation?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Business 40 20%
2 Profession 108 54%
3 Service 52 26%
Total 200 100%
Base 200 respondents

GRAPH

Business

Profession

Service

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

83
6. Your annual household income?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Less than 2 lacs 98 49%

2 Between 2 to 5 lacs 62 31%
Between 5to 8lacs 30 15%
More than 8 lacs 10 5%
Total 200 100%
Base 200 respondents
GRAPH

Less than 2 lacs

Between 2 to 5 lacs

Between 5to 8lacs

Interpretation
From the table and graph above it can be seen that

➢ 49% respondent’s annual household income is less than 2 lacs.

➢ 31% respondent’s annual household income is between 2 to 5 lacs.

➢ 15% respondent’s annual household income is between 5 to 8 lacs.
➢ 5% respondent’s annual household income is more than 8 lacs.

7. Are you a member of a club/gymkhana?

84
TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 84 42%
2 No 116 58%
Total 200 100%
Base 200 respondents
GRAPH

Yes No

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

85
8. What is your perception about insurance sector?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Hard and lucrative 60 30%

2 Hard but not 18 9%
rewarding
3 Smooth and 82 41%
rewarding
4 No idea 40 20%
Total 200 100%
Base 200 respondents

GRAPH

Hard and lucrative

Hard but not rewarding

Smooth and rewarding

No idea

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

9. Do you know about HDFC Standard Life Insurance?

86
TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 164 82%

2 No 36 18%
Total 200 100%
Base 200 respondents

GRAPH

Yes

No

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

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10. Do you have any Insurance Policy?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 160 80%

2 No 40 20%
Total 200 100%
Base 200 respondents

GRAPH

Yes

No

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

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11. Name of Insurance Company?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 LIC 104 65%

2 ICICI 16 10%
HDFC SLIC 8 5%
OTHERS 32 20%
Total 160 100%
Base 160 respondents
GRAPH

LIC

ICICI

HDFC SLIC

OTHERS

Interpretation
From the table and graph above it can be seen that
➢ 65% respondent’s are insured by LICI.
➢ 10% respondent’s are insured by ICICI.

➢ 5% respondent’s insured by HDFCSLIC.

➢ 20% respondent’s insured by OTHERS.

12. Do you hold any license of any insurance company?

TABLE
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 Sr. No. Category No. of Percentage
Respondents

1 Yes 70 35%
2 No 130 65%
Total 200 100%
Base 200 respondents
GRAPH

Yes

No

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

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13. Are you satisfied with the company?

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 42 60%
2 No 28 40%
Total 70 100%
Base 70 respondents
GRAPH

Yes

No

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

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

TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 82 41%
2 No 118 59%
Total 200 100%
Base 200 respondents

GRAPH

Yes

No

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

15. Will you be interested to become Financial Consultant?

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TABLE

Sr. No. Category No. of Percentage

Respondents

1 Yes 60 30%
2 No 140 70%
Total 200 100%
Base 200 respondents
GRAPH

Yes

No

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

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

TABLE

Sr. No. Category No. Of Percentage

Respondents

1 Yes 54 90%
2 No 6 10%
Total 60 100%
Base 60 respondents

GRAPH

Yes

No

Interpretation
From the table and graph above it can be seen that
➢ 90% respondent’s are interested to earn additional income.

➢ 10% respondent’s are not interested to earn additional income

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CHAPTER 10

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SWOT ANALYSIS
HDFC and Standard Life came together for a possible joint venture, to enter the life Insurance
market, in January 1995. It was clear from the outset that both companies shared similar values
and beliefs and a strong relationship quickly formed. In October 1995, the companies signed a
3-year joint venture agreement.

1. STRENGTH
1. Domestic image of HDFC supported by Prudential’s international image is strength of the
company.
2. Strong and well spread network of qualified intermediaries and sales person.
3. Strong capital and reserve base.
4. The company provides customer service of the highest order.
5. Huge basket of product range which are suitable to all age and income groups.
6. Large pool of technically skilled manpower with in depth knowledge and understanding of
the market.
7. The company also provides innovative products to cater to different needs of different
customers.

2. WEAKNESS
1. Heavy management expenses and administrative costs.
2. Low customer confidence on the private players.
3. Poor retention percentage of tied up agents.

3. OPPORTUNITIES
1. Insurable population –According to ING only 10% of the population is insured, which
represents around 30% of the insurable population. This suggests more than 300m people,
with the potential to buy insurance, remain uninsured.
2. There will be inflow of managerial and financial expertise from the world’s leading
insurance markets. Further the burden of educating consumers will also be shared among many
players.
3. International companies will help in building world class expertise in local market by
introducing the best global practices.

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4. THREATS
1.Other Private Insurance Companies Also vying For The Same un-insured population.
2. Big Public Sector insurance Companies Like LIC India, National insurance Company Ltd,
Oriented Insurance Ltd, New India Assurance Company Ltd, And United Insurance Company
Ltd. People Trust Them And go to them more.
3. Poaching of Customer by other companies.
4. Most People don’t understand the need or are not willing to take insurance policies in
general.

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CHAPTER 11

98
CONCLUSIONS
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. Company’s 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.

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CHAPTER 12

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SUGGESTIONS AND RECOMMENDATIONS
Finally some recommendations for the company are as fallows:-
 To make people aware about the benefit of becoming HDFC Standard Life’s 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
 Separate 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

 The importance of alliances and tie-ups means that companies will have to integrate
related but separate providers into their systems to ensure seamless delivery.

 Build strong relationship with intermediates such as agents.

 Advertise about the rural market as it has huge potential

 Create a positive perception about insurance

 Making purchase of policies a less cumbersome process

 Promote insurance in corporate houses and colleges.

 Attracting youth by educating about higher rate of return as compared to banks.

 Try to sell the plan according to his need and not according to the agent’s commission.

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CHAPTER 13

103
BIBLIOGRAPHY
The following companies and association’s web sites were referred while collecting

information used in the research.

1 . INTERNET SOURCE

• http://www.hdfcinsurance.com

• http://www.google.co.in

• http://www.wikipedia.org/

• http://www.money control.com

• http://www.licindia.com

• http://www.hdfcbank.com

• http://www.irdaindia.org

 http://www.woopidoo.com/articles/dylan/career-path.htm

 http://timharford.com/2009/08/a-recession-proof-career-path-only-for-the-lucky-ones/

2. BOOKS/MAGAZINES REFFERD

 Study Guide- Principles & Practices of Life Insurance By AIMA.

 Books Published By INSURANCE INSTITUTE OF INDIA.

 LIFE INSURANCE By Mc Gill.

 INSURANCEWATCH.

 MONEYOUTLOOK.

3. ARTCLE USED

1. CHOOSING THE RIGHT CAREER PATH

Article by Michael Dylan
http://www.woopidoo.com/articles/dylan/career-path.htm

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CHAPTER 14

105
ANNEXURE

HDFC SLIC
Unit no.-4, plot no.7&8,vardhman trade tower, Nehru place,
NEW DELHI-110019

Dear Sir/Madam,
I am a student of NATIONAL INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
GHAZIABAD and presently doing a market survey “MARKET RESEARCH ON
FINANCIAL CONSULTANTS FOR HDFCSLIC, DELHI”. 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 year’s Are You in Delhi.
Less than five year’s □ More than five year’s □
5. Occupation.
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 □

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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 □
9. Do you know about HDFC SLIC?
Yes □ No □
10.Do you have any insurance policy?
Yes □ No □
11.Name insurance company?
LIC □ ICICI □ HDFC SLIC □ OTHERS □
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 SLIC’s recruitment policies related to financial consultant?
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 □

Date:

Place:
Signature

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