Minor Project Report On Recruitment & Selection of Financial Consultant of HDFC Standard life Insurance
Submitted In Partial Fulfillment Of the Requirement Of Bachelor of Business Administration Training Supervisor Name: Ms Suniti Chandiok Batra Designation: Assistant Professor 05161201709 Submitted By: Name of the student: Nancy ENRNo. /Batch:
Submitted To: Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi (Affiliated to Guru Gobind Singh Indraprastha University)
I hereby declare that this Minor Project Report titled _______________________________ submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work undertaken during the period from ____to____by me and has not been submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.
(Signature of the Student) Date: / / 2010 Name: Enroll. No.:
This is to certify that as per best of my belief the project entitled “Recruitment and Selection of FC of HDFC Standard Life Insurance LTD” is the bonafide research work carried out by NANCY BATRA student of BBA, BCIPS, Dwarka, New Delhi, in partial fulfillment of the requirements for the Minor Project Report of the Degree of Bachelor of Business Administration. She has worked under my guidance.
At the very outset, I would like to take golden opportunity of thanking those persons without whose guidance, co-operation, inspiration and suggestion it would have been impossible for me to accomplish the project successfully. I also take this opportunity to extend my heartfelt gratitude to others who directly of indirectly helped me, by providing me necessary information required for successful completion of the project.
Table of Contents
• • • About HDFC Background of the company Business objective
Organisational goal The Promoters
2. Recruitment and Selection • Recruitment • Recruitment Process • Types of recruitment • Selection • Process of Selection • Recruitment Vs Selection
3. Literature Of Review
• • • • • • • • • Company Profile of HDFC SLIC Standard Life Group Visions And Values Strength And Weakness Joint Venture Life Stages Features Of Product and Benefit Strategy Competitors of HDFC SLIC
4. Selection And Recruitment of FC of HDFC SLIC
• • • • • Business Description Documents Required Recruitment Process of FC Job Description for FC Benefit of FC
5. Research and Methodology 6. Conclusion 7. Suggestions 8. Executive Summary
HDFC Standard Life, one of India’s leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India’s
leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Standard Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2, 00,000 Financial Consultants.
Background Of The Company
HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. HDFC Standard Life Insurance Company Limited., being one of the key players in the insurance sector in India, offers a host of individual and group insurance solutions, suiting customer requirements. It happens to be a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), and a Group Company of the Standard Life Plc, UK. It was per the data on February 28, 2009 that HDFC Ltd. held 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. held 26.00% of equity in the JV. The remaining stake is held by others
Indian Bank with HDFC
INDIAN BANK with over 90 years of standing in the financial market with the reputation for excellent customer service has entered into a strategic tie-up with HDFC Standard Life Insurance Company Ltd., the first in the private sector to receive the Certificate of Registration for foray into Life Insurance business for distribution of latter’s insurance products. A Memorandum of understanding has been signed by the Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has to its strength 1377 branches spread across the country with ready built infrastructure and the expertise in marketing financial products. Initially the insurance products will be marketed through select branches in the South where the Bank has strong presence. The insurance products from HDFC Standard Life, will be competitive and customer friendly. The tie-up would benefit the Bank's customers, as they will have wider choice of life insurance policies at competitive premium
FINANCIAL POSITION OF HDFC SLIC IN FY 200708
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.
Highlights of Financial Year 2007-08
New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs 4,859 crores as against Rs. 2,856 crores in FY2006-07 Alternate Channels including bank assurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI). Group business funds under management have increased to Rs. 959 crores, registering a growth of83% over FY2006-07 The average premium has increased to Rs.33, 000. Company products and services are now available in 726 cities and towns across the country. Strength of Financial Consultants has increased to 1,45,000
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Focus on the productivity of each consultant, corporate or individual, while stressing on the quality of proposals Quick roll out of Products Meet Social & Rural sector obligations Efficiency of Operations
HDFC's main goals are to a) Develop close relationships with individual households, b) Maintain its position as the premier housing finance institution in the country, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai; India.HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.
Joint ventures and associated undertakings
Country of registration or Share class Name incorporation and proportion held Year end Nature of business
Standard Life China Ordinary shares 50.0% 31 Dec Life assurance HDFC Standard Life Insurance Company Limited India Ordinary shares 18.6% 31 Mar Life assurance HDFC 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 the Group an effective interest in these companies 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.
Recruitment And Selection
Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Retention means ensuring that once the best person has been recruited, they stay with the business and are not “poached” by rival companies. Undertaking this process is one of the main objectives of management. Indeed, the success of any business depends to a large extent on the quality of its staff. Recruiting employees with the correct skills can add value to a business and recruiting workers at a wage or salary that the business can afford, will reduce costs. Employees should therefore be carefully selected, managed and retained, just like any other resource.
What is Recruitment?
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies. The recruitment industry has five main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, niche agencies which specialize in a particular area of
staffing and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.
Process of recruitment
Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows: Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: • Posts to be filled • Number of persons
• Duties to be performed • Qualifications required Preparing the job description and person specification. Locating and developing the sources of required number and type of employees (Advertising etc). Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making .
Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.
Types of recruitment
Internal Recruitment – is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three – Transfers, promotions and Reemployment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. Internal sources are primarily 3 Transfers Promotions (through Internal Job Postings) and Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
External Recruitment – External sources of recruitment have to be solicited
from outside the organization. External sources are external to a concern. But it involves lot of time and money .The external sources of recruitment include – Employment at factory gate, advertisements, employment exchanges etc. Employment at Factory Level – This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as “badli” workers. Advertisement – It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television. Employment Exchanges – There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange.
What is Selection?
The act of selecting, or the state of being selected; choice, by preference.
The Selection Process
The rules governing selection require that all employees be selected and promoted through a competitive examination of merit and fitness. That being said, the end result of the selection process is to arrive at a top group of three (3) applicants from the applicant pool for the appointing authority (supervisor who is hiring for this position) to select from. The top group of three (3) applicants is derived from testing and/or other assessments of their knowledge, skills, abilities and other characteristics needed to successfully perform the job. Typically, the process of arriving at a top group of three (3) individuals follows the following architecture:
All open-competitive career opportunities at CDPHE are announced on the Colorado State Government Job Announcement website.
CDPHE is an Equal Opportunity Employer The CDPHE Human Resources Office only accepts applications for announced positions. Applications for announced positions will be accepted until the closing date advertised on the job announcement.
You must be a resident of Colorado to apply.
Submitted applications are reviewed to identify applicants meeting the minimum requirements listed in the job announcement. All applicants who meet the minimum qualifications for a posted position are invited to participate in a fair and open competitive examination of job-relevant competencies. Applicants who do not meet the minimum requirements are notified by electronic mail of their status.
When filling a vacant position, the State of Colorado requires the use of an examination process to identify the top three candidates. If three (3) or fewer candidates meet the minimum qualifications of the position vacancy, the minimum qualifications are the exam and all of the applicants are referred to the supervisor for interview. However, if more than three (3) applicants meet the minimum qualifications, an examination of job-related competencies must be used to determine the top three (3) candidates. The number and types of exams chosen for this process will depend on the job class of the position vacancy and the total number of qualified applicants competing for the position.
Types of Tests
Applicants will be notified of their status following test results. Generally applicants continuing in the process will not receive a notification with a score, but rather a notification regarding the next step in the exam process.
SUPERVISOR REVIEW & CONSIDERATION
The top three (3) candidates identified via the examination process will be referred to the supervisor of the position vacancy for interview The supervisor of the position vacancy will make the hiring decision. Typically, supervisors interview each of the candidates on their referral list. However, a supervisor is not required to interview each of the candidates before making a hiring decision. A review of each candidate’s resume and an interview with the candidate who is deemed the best fit for the position is sometimes sufficient to make a hiring decision.
After careful consideration of each candidate, the supervisor makes the final decision. Depending on type of work performed in the position, a job offer may be contingent on the results of a drug test, physical examination and/or criminal background check.
Recruitment Vs Selection
Recruitment Vs Selection
Recruitment Vs Selection Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. 3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests. 5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee
COMPANY PROFILE Of HDFC SLIC STANDARD LIFE GROUP
The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925.The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK life assurance and pensions operating model to capitalize on the opportunities presented by EC Directive 92/96/EEC (the “Third Life Directive”) and offer a product range in that market with features which local providers were unable to offer. In the 1990s, the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business, with the intention of positioning itself as a broad range financial services provider.
Vision and Values
“The most successful and admired life insurance company, which mean that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short,” The most obvious choice for all”. Admired mean the company should be known for its standards. Not only customers, but also the competing life insurance companies should benchmark against HDFC SLI a nutshell, even the IRDA should give an example of HDFC SL as a guiding principle.
• • • • • • Integrity Innovation Customer care People care Team work Joy and simplicity
Strength A wide geographic reach, growing clients, and a diversified portfolio of products and services. Premium Payment This section gives you all the details that you may require to pay your premium and make it a hassle free experience. Along with various premium payment options currently available to you, we have also drawn up a Checklist of details that you will need in case you are paying through cheque or demand draft.
Checklist while paying your renewal premium through cheque/ demand draft
your policy number and name correctly on the reverse side of the cheque/ demand draft We do not accept Post Dated Cheques (PDC’s) beyond the next banking day from date of receipt In case of any overwriting on your cheque, please countersign the same As per RBI guidelines, Non MICR Cheques may not be acceptable at few locations. In this scenario, please contact your nearest branch for more details Unit Linked Polices you can pay using Local Cheques/ Demand Drafts other policies you can pay using either Local or Outstation cheques or Demand Drafts
Lapsation & Revival
Your renewal premium should reach us by the due date specified in the premium reminders. It is always advisable to pay on time so that your valuable policy benefits can continue. However we do understand that there may be times when you may not be able to pay the renewal premium by the due date. Therefore we allow for some additional number of days from the due date, which is specified in your policy document, to help you make your premium payment. In case we still don’t receive your premium payments by the end of the above mentioned period, we would do either one of the following: Lapse” the policy – if you haven’t paid premiums for the first 3 policy years Either of these may mean loss/reduction of valuable benefits of your policy. refer to your policy document for details. We do, however, allow you to restore the original benefits for a Lapsed or a Paid up policy under certain conditions. On receipt we will send you the details of amount that you will have to pay towards revival. This amount may include all or some of the outstanding premiums, revival interest and revival processing charges. If your policy is lapsed or paid-up for more than six months or lapsed due to any reasons like illness, accidents etc. you may need to submit a Personal Health Statement we reserve our right to impose some new terms and conditions at the time of revival decided on a case-to-case basis
HDFC Standard Life Insurance Company Ltd HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the venture.HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or
NAV services for Corporations, they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs.2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.
Board OF Directors Of HDFC SLIC
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 . Mr. Keki M Ministry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Ministry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountant
Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005 Mr. Keith N 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, and 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 nationalized 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 & VicePresident 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. 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 Ms. Renu S. Karnad is the Executive director of HDFC Limited, 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. She is responsible for overseeing all aspects of lending operations of HDFC Limited.
Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyse various insurance needs accordingly.
Young and Single An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early. Your needs Save for a home and wedding Tax Planning Save for Golden years
Just Married Marriage brings about a significant change. New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life, it is equally important to ensure that eventualities don’t come in the way of shaping your dreams. Your needs Planning for home / securing your home loan liability Save for vacation Save for your first child
Proud Parents Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your child’s dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Your needs Provide for children’s education Safeguarding family against loan liabilities Savings for post-retirement
Planning for Retirement While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Your needs Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years
FEATURES OF THE PRODUCT & BENEFIT
HDFC Standard Life: A good cover The opening up of life insurance has given finally given a level-playing field to the private sector. A. N. Shanbhag , February 19, 2002 Competition in the market always proves favorable to the consumer. So it is in the case of life insurance. After what seems like almost an eon, finally the doors of the life insurance sector were thrown open to the private sector players last year. The Finance Act, 2001 has thankfully cleared quite a lot of cobwebs giving a level-playing field to both the sectors. Notable amongst the new entrants is HDFC Standard Life Insurance, a joint venture between the global experience of Standard Life of UK and our own HDFC. Standard Life, founded in 1825 is amongst the forerunners of the insurance industry worldwide, having a presence not only in the UK but also Ireland, Spain, Germany, Austria and Canada. Voted as the 'company of the decade', Standard Life manages assets over US$ 119 billion. HDFC does not need any formal introduction, so strong is its brand already. After having a significant presence in the housing finance, banking and MF industries, this JV marks its foray into the life insurance sector. Private sector players would only be too aware that this is the proverbial first step of the thousand-mile journey that lies up ahead. Contending for a piece of market share with a Goliath that LIC is, will not be an easy task unless they offer qualitative and innovative products at an affordable price. That they would be pulling out all the stops to attract customers is not in doubt. Hence, this is as good a time as any to pay attention and see what is on display.
Too many options simply confuse the users whereas too few will surely turn them away. HDFC Standard Life has thankfully introduced products with basic premiums serving specific needs of all. Most products have some additional optional value adding benefits at marginal additional premiums. The proponent is free to choose any of the basic products along with none or some of the options as per his needs. Before examining the base products, let us see the options.
Accidental Death Benefit (ADB) ADB provides an additional amount equal to the basic sum assured (SA) in case of the death of the policyholder due to an accident, within 90 days of the accident. Critical Illness (CI) Benefit CI provides an additional amount equal to the SA on diagnosis of the any one of the 6 specified critical illnesses --- cancer, coronary artery bypass graft surgery, heart attack, kidney/renal failure, major organ transplant (as recipient) and stroke. The sum assured is payable if the policy holder survives for 30 days after the date of the claim. Double Sum Assured (DSA) Benefit DSA provides an additional amount equivalent to the basic SA in case of the death of the policyholder. Waiver of Premium (WOP) Benefit WOP basically waives the premium in case the policyholder becomes totally disabled. However, the waiver is applicable only during the period of the disability. Accelerated Sum Assured (ASA) Upon diagnosis of any of the specified six critical illnesses, ASA provides an amount equal to the amount payable on death. These options must be selected at the outset while choosing the product.
Now the base
Single Premium Bond this is basically a hybrid of insurance and investment. The life cover is quite low and therefore it functions almost like a deep discount bond. For a single upfront premium (read investment), the policy pays a lump sum (read maturity value) and its tenure of 10, 15, 20 years or more at 5-year intervals. A compound revisionary bonus is declared every year, which would be added to the policy upon its anniversary. The future bonuses though are not guaranteed and are dependent upon the company's experience and the conditions prevalent in the economy. The minimum age for buying the policy is 18 years, the maximum being 70. The minimum SA is fixed at Rs. 25,000, the maximum being Rs. 5, 00,000. Normally, a policy acquires a paid up value (and the related surrender value) after premiums for 3 years are paid but in this case the holding period is specified to be just 6 months --- Excellent liquidity indeed!
Term Assurance Plan
The SA is payable in the case of the death of the policyholder during the term but on survival, there are no maturity benefits. Consequently, the premium rates are absolutely the lowest. This is insurance in its purest form --- highest cover at
lowest cost. There was a crying need for easy availability of this product. HDFC Standard Life deserves kudos to have catered to this need. Amongst the optional benefits listed above, ADB, CI and ASA are available for this plan.
Money Back Plan
This plan pays periodic cash lump sums during the tenure of the policy. The lump sums, essentially a proportion of the basic SA are paid at 5-year intervals. On survival, the basic SA plus bonus less the cash lump sums paid earlier are provided. However, in the case of the demise of the policyholder, the basic SA plus any bonus is provided to the family. This would be over and above any earlier payouts. The schedule of cash lump sums as a percentage of the basic SA is detailed in the table. Moreover, CI, DSA, ADB and WOP can be opted for if so desired. Endowment Assurance Plan as is normal with all endowments, on the death of the life assured during the term, the beneficiary will get the SA. On survival, the policyholder gets the SA. From amongst the optional benefits, CI, DSA, ADB and the WOP benefit are available along with this plan. The indicative premiums for an SA of Rs. 1 lakh for a male life assured for a period of 20 years are detailed in the table.
Loan Cover Term Assurance
this is a unique product meant as a safety net in case one has taken a loan to buy a house. It is designed to help the family repay the outstanding loan in the case of the death of the breadwinner. For starters, it provides a lump sum on the death of the life assured during the term of the plan. The difference in this case is that the lump sum is a decreasing percentage of the initial SA. As the loan decreases, as per its payment schedule, the cover under the policy decreases as per its own schedule. There is a choice of paying the premium in yearly, half-yearly or quarterly modes or even a single one time premium is payable. Amongst the optional benefits, ASA is available along with this plan.
Group Term Insurance (GTI)
HDFC Standard Life also offers GTI, meant essentially for employees of an organization. GTI is extremely convenient for an employer as he can take insurance for all or certain categories of employees. All members of a group, subject to some basic conditions are eligible. GTI is used basically to provide life insurance as part of the employee benefits. It can also cover any housing or vehicle loan given by the employer to the employee. To sum A wise man had said that the time to mend the roof is when the sun is shining. This is applicable to life insurance too. Today as the breadwinner you are able to maintain a decent standard of living for yourself and your family. If you want enough bread for the family even after the death of the breadwinner, you should look at the Single Premium Bond. In other cases, life insurance is an absolute necessity. Have a look at other products.
MARKET CONDITION OF PRODUCT IN DELHI & NCR REGION
When it comes to study the market condition of HDFC Standard Life Insurance, it is quite easy to see that there is good demand for products, but the sale of Ulip products is very good. The market share is about 65% with compare to their competitor.
REASON FOR THEIR GOOD CONDITION
1. Consultants hold on the market
When it comes for the case of market, there is a clear and complete hold of HDFC SLIC Consultants. 2. Quality HDFC SLIC provides good quality of products, which is praised by most of the consumers. The reason for 65% of the market cover by HDFC Standard Life Insurance is because of quality of products. 3. Demand Demand for the product of HDFC Standard life is very high in the societies. 4. Supply Supply of product is also good, but in capturing whole market it take some time.
Competitors By Company
Market Share Position
Life Insurance Corporation of India’s (LIC’s) market share has slipped by almost 4% to 83.3% from 87% market share last fiscal. However, in terms of number of policies sold, LIC continues to dominate the Indian life insurance market with about 91% market share. In terms of group insurance schemes, LIC’s market share was at 72.2% after it covered 4.9 lakh lives. Private players had 27.9% of the market covering 1.9 lakh lives. The 12 private players in the country together mopped up Rs 385 crore in premium in the first two months selling over 2 lakh policies. ICICI Prudential Life leads with market share of 5.9% it is followed by Birla Sun life with a market share of 2.6%, Allianz Bajaj (1.6%), Tata AIG (1.5%), HDFC Standard Life (1.4%) and SBI Life (1.2%). Each of the other private players like Aviva, Max New York Life, OM Kotak Life, ING Vysya, AMP Sanmar and MetLife had less than 1% market share but posted high growth in business. In terms of premium collection, ICICI Prudential mopped up Rs 136 crore followed by Birla Sun life (Rs 60 crore), Allianz Bajaj
(Rs 37 crore), Tata AIG (Rs 35 crore), HDFC Standard Life (Rs 33 crore), SBI Life (Rs 27 crore).
Life Insurance Corporation of India (LIC)
About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization of Life Insurance Industry. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.
HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. The Standard Life group has been looking after the financial needs of customers for over 180 years. It is a leading pension’s provider in the UK. Both the promoters are well known in their respective fields of activities.
Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading
multi-business corporations. The Company's paid up capital is Rs. 587 crore, which is more than the norm laid down by IRDA.
ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bankone of India's foremost financial services companies-and prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 15.85 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential commenced operations in December 2000
Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. Old Mutual plc is an international financial services group, whose activities are focused on asset gathering and asset management.
Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance is a joint venture between the Aditya Birla Group and Sun Life Financial, Birla Sun Life foraying into the life insurance and retirement planning business. The Aditya Birla Group has a turnover close to Rs. 38000 crores (as on March 31, 2006) and is one of the largest business houses in India. Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers.
Tata AIG Life Insurance Company Ltd.
Tata AIG Life Insurance Company Limited and Tata AIG Company Limited (collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001. General Insurance
SBI Life Insurance Company Limited.
SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 500 crores. SBI owns 74% of the total capital and Cardiff the remaining 26%. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, the largest in the world. Cardiff is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP Paribas is one of the oldest foreign banks with a presence in India dating back to 1860.
ING Vysya Life Insurance Company Private Limited
ING Vysya Life Insurance Company Private Limited (the Company) entered the private life insurance industry in India in September 2001.It has an advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. ING is a global financial institution of Dutch origin. It has 150 years of experience, and provides a wide array of banking, insurance and asset management services in over 50 countries The Company has a is headquartered at Bangalore.
Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001.
MetLife India Insurance Company Pvt. Ltd.
With over 137 years of experience, the MetLife companies are a leader in group benefits that serve 88 of the top one hundred FORTUNE 500®* companies, and provide benefits to 37 million employees and family members through its plans sponsors in the U.S. The MetLife companies are also ranked #1 in group life and #1 in commercial dental in the U.S. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. In India, MetLife was incorporated in 2001, and aims to differentiate itself through customized need based selling, simple and innovative products, and technology-backed service experience, to tread its path to build financial freedom for everyone
Reliance Life Insurance Company Limited
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s
leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a NonBanking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934
Aviva Life Insurance Co. India Pvt. Ltd.
Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. In India, Aviva has a long history dating back to 1834. At the time of nationalization it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995.In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.
Sahara India Insurance Company Ltd.
The Sahara Pariwar’s life insurance company – Sahara India Life Insurance Company Ltd. has been granted license by the insurance regulator – the IRDA on 6th February 2004. With this approval Sahara India Life Insurance Company Ltd. becomes the first wholly and purely Indian company, without any foreign collaboration to enter the Indian Life insurance market. The launch is with an initial paid up capital of 157 crores. The Chairman of the company is Shri Subrata Roy Sahara who is also the Chairman of Sahara Pariwar.
Recruitment of Financial Consultants (FC) in HDFC Standard Life
This is a good business opportunity offered by HDFC Standard Life to become a business partner and earn a good amount of money.
Selection and Recruitment of FC 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.
Certificate by IRDA
You will get world class training free of cost and certification by Insurance Regulatory Development Authority. TRAINING
Prepares you for your career as a Financial Consultant and enables you to pass the IRDA examination easily
Hones your selling skills, enables you to understand customer needs and provide need-based insurance solutions.
Upgrades your capability and knowledge through sophisticated training programs customized 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
8 photograph, Age proof (passport, Birth certificate, College Leaving Certificate, Driving License), Address proof, Education proof. Copy of PAN Card Duly Signed Cancelled Cheque of self A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825 in case of online training towards HDFC SLIC LTD payable at Mumbai.
Recruitment process of FC’s Fill up of Agency form IRDA Training (100 hrs) IRDA Exam
Pass Product Training
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 Providing timely updates to the client for maintaining Lifelong relationship.
Benefits to FC’s
Commission on issuance of every policy. Commission directly credited to bank account of FC’s within 15 days. These commission varies from 7.5-40% according to plan.
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 25% Personal Pension Plan 7.5%
Renewal commission would be paid from the 2nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans. Name of the plan Endowment Assurance plan Money Back Plan Children’s plan Lone cover Term Assurance Plan Term Assurance plan Personal Pension Plan Renewal commission 2nd year onwards 5% 5% 5% 5% 5% 2%
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 In one year
RNEP 1,00,000 1,50,000 2,25,000
Bonus commission % of the 1st year Premium received 5% 10% 15%
REWARDS & RECOGNITION
Within 30 days of Licensing Consultant can become STAR – Converted premium 2 Lacs Silver Medal-Worth Rs 5200(approx) RISING STAR – Converted premium of 5 Lacs Gold Medal-Worth Rs 13,000(approx) MILLIONAIRE STAR – Converted premium of 10 Lacs Gold Medal-Worth Rs 25,000(approx) GLOBAL STAR – Converted premium of 24 Lacs Gold Medal-Worth Rs. 60,000(approx) Extra Payouts for STAR Performers Star Performers Club Status Bronze Benefits 1%max Rs.5999 Additional status retention Bonus
Silver 2.5%,max Rs.37499 0.50%
Gold 5%,no upper limit 1.00%
Centurion Graded4.5%to8.5% 1.50%
MONTHLY & QUARTERLY CONTESTS There are various Sales linked monthly & quarterly contests occur in which FC’s has opportunity to gain something. Like Gift Vouchers Home Appliances Two-Wheelers Gold/Diamonds Jewelry
Foreign Trips Mobile Phones Laptops Cars etc.
On field support- Joint fieldwork with respective SDM/BDM. Training support-Various training modules to enhance your sales skills, interpersonal skills etc. Marketing support – Consumer Contact Programs. Availability of office infrastructure for telecalling, quotations, benefits illustration etc. Consultant corner to access illustration, sales done, and contest updates etc.
Research can be defined as systematized effort to gain knowledge. A research is carried out by different methodology, which has their own pros and cons. Research methodology is a way to solve research problem along with the logic behind them. Thus when we talk of the research methodology we not only take of research method but also context of our research study and explain why we are using a particular method or techniques and why we are not using other so that research result are capable of being evaluated either by the researchers himself or by others. Research methodology means the method carried out to study the problem. It shows the type of the sample design used, its size and the procedure used to dew sample. The extent of precision achieved and the method used for handling any special problem during the course of the study. Research methodology has following steps: Step: 1 To decide the objective of the study. Step: 2 To design research design . Step: 3 To determine the source of data. Step: 4 To design data collection form. Step: 5 To determine sample size and sample design.
Step: 6 To organize and conduct fieldwork. Step: 7 To process and analyze the collected data. Step: 8 To prepare the research report. 5.1.1 Type of research design A research design serves as a bridge to reduce the gap between the research objective, which has been established and what has to been done to, as a part of the study in order to realize those objective. There are three types of research: Descriptive research design Experimental research design Quasi- experimental DESCRIPTIVE RESEARCH Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. Descriptive Research Methods Case Studies Detailed analysis of a single (or limited number) of people or events. Case studies are usually interesting because of the unusualness of the case .The major problem with case studies is the problem of objectivity. The person who is presenting the case usually has some theoretical orientation. It is acceptable for a theoretical orientation to affect one’s interpretation of events. In a case study the theoretical orientation can also lead to the selection of the facts to include in the case. It is not surprising that case studies often seem to provide very compelling evidence for a theory. Case studies can therefore assist psychology by illustrating how a theory could be applied to a person or events and by assisting with the development of hypotheses for more systematic testing. Observational Research Accounts of the natural behavior of individuals or groups in some setting. Unless the observation is unobtrusive, there may be some subject reactivity to being observed. This often decreases with time, a process called habituation. Observers cannot usually observe all behaviors all of the time. They may use a behavioral checklist and may also use time sampling or event sampling procedures. It is important to assess observer bias by the use of interobserver reliability. Observational research may also pose ethical problems. These can arise when the behaviors being observed are not public behaviors and when the observer joins a group in order to observe the members’ behavior – participant observation.
Survey Research Structured questions to assess people’s beliefs, attitudes, and self-reports of behavior. If the researcher wishes to generalize the responses to a population, it is important to have a representative sample. Surveys that rely on self-selection (respond if you are interested) produce non-generalizable results. Surveys also provide information for co relational research. One can correlate responses to some questions (often demographic questions) with responses to other questions (often attitudes or reports of behavior). Survey question must be clear and unambiguous. Even if the questions are unambiguous and non-leading, people may display a social desirability bias and give positive or socially acceptable and desirable answers. Survey methods include: (1) the interview or face-to-face method which is generally viewed as the best method for obtaining a high rate of responses but is also very costly; (2) Phone surveys, which are less expensive but have a higher non-response rate (which has probably increased with caller ID); and (3) written or mail surveys, which are least expensive but have a very high nonresponse rate. Follow-up messages can help increase the response rate. Archival Research Analysis of pre-existing data or records. Archival research often involves content analysis, a qualitative analysis of material. For example, one would use content analysis to determine whether there had been an increase in the frequency with which women and minorities were mentioned in US history books between 1920 and 2000. Some archival research is quasi- experimental. I selected the survey research method of descriptive research to conduct my market research because my objective of research is to measure current status of the phenomena i.e. awareness and willingness among people to become FC for the company. 5.1.3 Data type Data source are the data resources or collection of fresh and data to obtain results. There are two types of data sources: thus happen to be original in character. Primary Data: Primary data is that which is collected fresh and thus happen to be original in character. Secondary data: Secondary data is any data, which have been gathered earlier for some other purpose. Among the above mentioned types of data primary data was used for the study and analysis of the objective of this project, Also the secondary data proved to be helping hand in framing up the industry scenario and also the relevant topics in the entire project report. Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview the professional, unemployed students, housewives, investment consultant, and other in Raipur and Bilaspur location. Analysis clearly reflected the views and preference regarding the perception of the people towards joining HDFC standard life. 5.1.4 Data Collection tools There are two types of mode to collect the data:• Observation method. • Survey method.
HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity. HDFC have total 12 group companies. It is the first insurance company who has gotten the license of insurance in firstly. It has started its insurance industry with the joint venture of U.K. based standard life insurance company. In the insurance sector main work is done by the financial consultant who brings business to the industry. It gives more priority for the recruitment of financial consultant that’s why it has setup 5-qscore. It gives priority that is professional like as MBA, CA, ENGINEERS, DOCTORS, LAYERS, AND OTHER PROFESSIONAL. During summer training I have given presentation in study centre of IGNOU and SIKKIM MANIPAL and phone call, and try to contact those person to whom I know and contact them for the purpose of financial consultant. In this process I have recruited 12 people who are either CA, MBA, SOFTWARE ENGINEER, STUDENT, OR EMPLOY OF THE ORGANISATION. It gives more facilities to their employ and provides better opportunity to their employ for promotion because it has minimum target for fulfillment. FC have to give 36 policy or 360 lack premium with in six months which less in comparison to the other insurance industry and for Delhi region where the transaction of money is too high. FC has chances to become sales development manager with in six month months when he fulfills the target. The post of SDM is based on payroll. He will get package of 2.75 lack per year. India is one of the most lucrative financial services market in the world. The insurance market in India is estimated to be around 400Bn growing at an astounding rate of 30% p.a. Still the experts believe that the potential is largely untapped. The insurance market is dominated by the public sector giant LIC with a The insurance market is dominated by the public sector giant LIC with a market share of around 71.4%. With the private players leading the growth story, this sector is witnessing more marketing actions than even the FMCG sector.
Traditionally insurance are sold through direct selling The reason being purely the nature of product warrants direct communication with the consumer. Kilter categorizes Insurance as an "Unsought" product. Unsought products are those which are ranked lowest in terms of consumer interest. Consumers may not be even aware of either the need or existence of this product. Historically, Indian insurance products are sold for wrong reasons. People buy insurance to avail the tax benefit and not to ensure protection and LIC was happy to oblige. Hence most of the sales talks start with the question " How much do you pay tax?" . Little money was spent on brand building because there was no competition for LIC. Things have now changed. With the increasing financial literacy, volatile economy and uncertain future are prompting Indians to look seriously at insurance as a means for protection rather than tax saving instrument. With more private players entering the domain, the issues of differentiation and branding became important. HDFC Standard Life Insurance (HDFCSL) is one of the major players in the insurance market. One of the first private insurers to enter the market, HDFC SL entered the scene in 2000. It is a joint venture between the housing finance major HDFC and the UK insurance giant Standard Life. Now a days we are seeing a lot of media action from this company. Although a slow starter HDFC SL was having a small share of the pie. It was eclipsed by ICICI prudential with its media and sales blitz making it second largest player in the Insurance market. 2006 saw a shake up in this market with Bajaj Allianz edging out ICICI from the second spot . Bajaj have a market share of around 8% and HDFC SL and ICICI fighting at 3rd place with around 7.5% HDFC is currently focusing on The Pension Plan and the Child Plan aiming to cash in on the potential of these segments. The pension market in India is estimated to be around 1000 crore with a huge potential for growth in the future. The change in the demographics is going to drive the pension market in India. Traditionally in a Joint family, there was an inherent protection for elders. With the urbanization and the evolution of Nuclear Urban Family ( NUF) , elders are often forgotten. Out of the 314 men workers in India only 11% has some sort of old age security. People earlier depend on social security products like EPF and PPF to build a corpus for their golden years. It is this potential that has encouraged HDFC to promote its pension plans. Introduced in 2002, this product has been well received by the consumers. The ads are well executed and revolve around the positioning of "Respect Yourself" The target segment being the 30 year old family man. The basic theme of the campaign is to appeal to the self respect of these men who are in their prime of their career. "Even after retirement let your hands give rather than receive" is one of the best themes for a pension plan. Since I am in that category, these ads strike a chord in me and remind me of the need to plan for my retirement. The same theme is carried to the Child plan also.
Although these campaigns will help to invoke an interest in TG, the market is in its nascent stage and lot of convincing has to be done to crack this huge market. One of the stumbling block being the expensive annuity plans. For example, it takes a 2 lakh corpus to generate Rs 1000 per month pension Also if you put 10000 per month in a pension plan if you are 30 yrs old,what you will get after 20 years is a monthly pension of 10000. (Correct me if I am wrong). So it looks unattractive in the first look compared to MFs. HDFC Standard Life has correctly identified the pulse of the target market and is all set to reap the benefits.
When we talk about suggestion I think I have small experience of this sector but whatever I have pointed out which are thus. In the recruitment of financial consultant I found that mostly person don’t want to give rs.925 or rs.825. I have faced some difficulties when they don’t agree to give this much amount. If the company will less this charge then it will get more FC. It should organize weakly meeting with FC for the business and give appraisal training to FC. It works as a performance appraisal of the FC. It should give monthly party to the FC for the attachment with the industry. It should give canopy facility to CDM or RC for the recruitment of FC and if it will give canopy facility to FC then they can give more facility. Generally we buy only that thing whatever we see. It means that it should spend more on advertisement. Other insurance industry like LIC and ICICI advertise mostly through banner on metro station, on road and advertise in the cinema hall. Add more and more movie hall for the advertisement. The role of recruitment is not easy so it should increase commission or give salary instead of commission so that RC will take more interest in the recruitment on financial consultant. Regular canopy should be established such areas like Metro Stations, college campus, and malls, supermarket, and hypermarket for the purpose of recruitment FC and getting business form FC.
In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70- 80% while as FMCG sector has maximum 1215% of growth rate. This growth potential attracts me to enter in this sector and HDFC Standard Life Insurance Company Ltd has given me the opportunity to work and get experience in highly competitive and enhancing sector. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, and MAX etc has adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.
Executive Summary The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that “Insurance is only for classes not for masses” but now the picture is vice- versa. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In insurance sector, distribution
channel includes agents, agency holders of the company and now a day’s internet is also used to reach to the potential customer. My job profile in HDFC SDLIC is to recruit financial consultant for the company and create awareness among people about benefit of becoming financial consultant. Initially when I meet people I recognized that they don’t know about the recruitment policy related to HDFC SLIC and they have some their own perception about the insurance sector so I decided to do my research to know perception of people towards insurance sector and to know the willingness of people to become FC for HDFC SLIC. To conduct the research I design a questionnaire and use descriptive research design to conduct my market research. On the basis of my research I find that most of the people think that insurance sector is hard and profitable, the reason people think that insurance sector is hard because since insurance is unsought need of the people therefore it is very hard to sell the polices of the company . In my research I also find that more than 80% of the people don’t want to join HDFC SLIC as a financial consultant. The reason they said for not joining HDFC SLIC is that they are satisfied with current job. Since the preference of the company is people who are more than 30 years of age, professional who in general is satisfied with their job or they don’t have time to sale policy. Some people also said that HDFC SLIC is a private sector company and due to strong market share and awareness among people about LIC, will make their job difficult to work as FC for company. Awareness related to becoming FC for the company is also very low i.e. only 12% of people know about it. This also is hindrance in recruiting people as FC for the company. My suggestion to company is to make people aware about benefit of becoming FC for company by giving advertisement in newspaper, print media, etc. they should promote this as career opportunity among the youth who is not very educated or unemployed, they should review the eligibility criteria they set for the FC. The insurance companies should try to nurture their brand name timely, which will help FC to sale their product.