Comparative study of HDFC standar life insurance

A PROJECT STUDY REPORT ON Training Undertaken at

Titled

“RECRUITMENT & SELECTION POLICY”
Submitted in Partial Fulfillment For the Award Degree of

Bachelor of Business Administration

Submitted by: Tanveer Kaur BBA III year

Submitted to: Mrs.Urmila Choudhary Faculty

St. Wilfred’s College for Girls, Jaipur 2011-12

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PREFACE
I had undergone a practical training under HDFC STANDARD LIFE INSURANCE, JAIPUR REGION. It was a good exposure for me to undergo training in such a company to get the knowledge and experience regarding life insurance and recruitment of capable of life insurance advisors. Summer training is one of the major experiencing components of the knowledge, gain of relevant of information with respect to marketing and dealing with situations in a professional course like B.B.A. where a professional person faces a problem in a field. I was able to get familiarized with the customer relationship and got to know how a company measures to resolve their grievances and service them to the maximum for future prospect and success. Field component like survey, generation of questionnaire with respect to marketing helped me a lot and would be a great support in future. “It is good to have enthusiasm but it is essential to have training. Training can be in all way of life.” Thus I would say that this training was beneficial educative & good exposure to me, which will certainly help in my near future. This project was designed with respect to this company. The project made me to get the enhanced knowledge regarding life insurance concept and the process of recruiting of financial consultant.

ACKNOWLEDGEMENT

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I express my sincere thanks to my project guide, Mr. NAVEEN SHARMA Designation (BRANCH DEVELOPEMET MANAGER), for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff Mr. Akhilesh Sharma Territory Sales Manager, for his help and cooperation throughout our project. I would also like to thank the supporting Faculty help and cooperation throughout her project. Mrs. Urmila Choudhary for their

Tanveer Kaur BBA III year

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EXECUTIVE SUMMARY
Application for insurance: This is the form on where you state information and answer questions from the insurance company about yourself and your history. This application along with information from a medical examination, if taken, from your physicians, any hospitals you may have visited and investigation are what's used by the insurance company to decide whether or not to offer you life insurance and at what rate. Accident Benefit: A rider or An add-on with a life policy. It compensates a policyholder in the event of death or injury by accident Annuity: An investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premier. Appreciate: To grow in value Asset: Everything owned or due to a person Asset allocation: How your investments are spread across various asset classes Beneficiary: The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured. Bond: It is like an IOU. By buying a bond you loan money to a company, a municipality, state or the Central Government Bonus: The amount paid as return in a ‘with-profit’ policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses –

reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared

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Budget: It is a tool used to monitor and control expenditures and purchases. Cash (Surrender) Value: The amount that is available in cash for loans and that may be available for withdrawals in a whole life insurance, universal life insurance or survivorship life insurance policy. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse. Contestability, Contestable Clause: In insurance there is a clause, which explains the conditions under which the insurer may contest or void the life insurance policy. This contestability is for a limited period of time, which in most states is two years. After that period of time the insurance company cannot contest the policy. Convertible Term Insurance: Term insurance which can be exchanged (converted), at the option of the policy owner and without evidence of insurability, for a whole life insurance policy or universal life insurance policy. Capital gains: Profit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year. .

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TABLE OF CONTENTS

S. NO.

Descriptions

Page no.

1. 2. 3.

Introduction to the industry Introduction to the Organization Research Methodology 3.1Title of the Study 3.2Duration of the Project 3.3Objective of the Study 3.4Types of Research 3.5Collection Method and Sample Size a. Scope of Study 3.7Limitation of Study

7-25 26-48 49-64

4. 5. 6. 7. 8. 9. 10.

Facts and Findings Data Analysis and Interpretation Swot Analysis Conclusion Recommendation and Suggestion Appendix BIBLIOGRAPHY

65-66 67-73 74-75 76 77 78-81 82

1. INTRODUCTION TO THE INDUSTRY

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Banking Industry
The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate. However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitisation in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online bankings, and in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded . The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate. Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years. The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitisation activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future.

Size of global banking industry

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Assets of the largest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a record $96.4 trillion while profits declined by 85% to $115bn. Growth in assets in adverse market conditions was largely a result of recapitalization. EU banks held the largest share of the total, 56% in 2008/2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during the year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment banking totalled $66.3bn in 2009, up 12% on the previous year.[10] The United States has the most banks in the world in terms of institutions (7,085 at the end of 2008) and possibly branches (82,000).[citation needed] This is an indicator of the geography and regulatory structure of the USA, resulting in a large number of small to medium-sized institutions in its banking system. As of Nov 2009, China's top 4 banks have in excess of 67,000 branches (ICBC:18000+, BOC:12000+, CCB:13000+, ABC:24000+) with an additional 140 smaller banks with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branches—more than double the 15,000 branches in the UK.[10]

Types of banks
Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high net worth individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations.

Types of retail banks

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National Bank of the Republic, Salt Lake City 1908 ATM Al-Rajhi Bank National Copper Bank, Salt Lake City 1911 Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Community banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. Community development banks: regulated banks that provide financial services and credit to under-served markets or populations. Credit unions: not-for-profit cooperatives owned by the depositors and often offering rates more favorable than for-profit banks. Typically, membership is restricted to employees of a particular company, residents of a defined neighborhood, members of a certain labor union or religious organizations, and their immediate families. Postal savings banks: savings banks associated with national postal systems.

Private banks: banks that manage the assets of high net worth individuals. Historically a minimum of USD 1 million was required to open an account, however, over the last years many private banks have lowered their entry hurdles to USD 250,000 for private investors.[citation needed] Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. Savings bank: in Europe, savings banks took their roots in the 19th or sometimes even in the 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks 9

were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralized distribution network, providing local and regional outreach—and by their socially responsible approach to business and society. Building societies and Landesbanks: institutions that conduct retail banking. Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. A Direct or Internet-Only bank is a banking operation without any physical bank branches, conceived and implemented wholly with networked computers.

Types of investment banks
Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital market activities such as mergers and acquisitions.

Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.

Both combined

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Universal banks, more commonly known as financial services companies, engage in several of these activities. These big banks are very diversified groups that, among other services, also distribute insurance— hence the term banc assurance, a portmanteau word combining "banque or bank" and "assurance", signifying that both banking and insurance are provided by the same corporate entity.

Other types of banks
Central banks are normally government-owned and charged with quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis. Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around several well-established principles based on Islamic canons. All banking activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees on the financing facilities that it extends to customers.

ABOUT HDFC STANDARD LIFE INSURANCE
All the human beings on the earth know that they will die in future but they don’t want to die. They want to fulfill all the dreams, which they had thought, but there are times when all these dreams can’t come true. Death is inevitable and yet we live our lives obvious to reality that may strike- when we have no idea. And when it happens, all the dreams come crashing down. In the words of D S Hansel “Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all the parties participating in the scheme” Life insurance is the only tool to secure our life in future. It also provides a safe guard to the uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn more in a short period

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The function of insurance is to protect you against losses you can't afford. This is done by transferring the risks of a person, business, or organization -- the "insured" -- to an insurance company, or "insurer.” The insurer then reimburses the insured for
"covered" losses -- i.e., those losses it pays for under the policy's terms. As the insurance consumer, you pay an amount of money, called a premium, to the insurer to transfer the risk. The insurer pools all its premiums into a large fund, and when a policyholder has a loss, the insurer draws funds from the pool to pay for the loss. Life is full of unexpected events that can create large financial losses. For example, whenever you drive, it is possible that you may have a costly accident. Risks affect you by causing worry about potential loss and how to deal with the consequences. Insurance reduces anxiety over a possible loss and absorbs the financial brunt of its consequences.

India has traditionally been a high savings oriented country being on par with the thrifty Japan. Insurance sector in the United States of America is as big in size as the banking industry there. This gives us an idea of how important the sector is. Insurance sector channelises the savings of the people to long-term investments. In India where infrastructure is said to be of critical importance, this sector will bring the nations own money for the nation. The global life insurance market stands at $1,521.2 billion while the non-life insurance market is placed at $922.4 billion.

HISTORY OF LIFE INSURANCE Insurance concept had been found out way behind in 13 th and 14th century. The earliest reference to insurance has been found Babylonia, the Greeks and the Romans. The use of insurance appeared in the account of North Italian Merchant Bank that then dominated the international trade in Europe at that time. The oldest

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and earliest record of insurance come in the form of marine insurance where ships and the cargo were insured against perils such as pirates, storm, mutiny and wars. The first company known as the Sun Insurance Office Ltd. was set up in the Calcutta in the years 1710. After that a number of companies were established for marine and general insurance. 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 a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The first general insurance company- Tital Insurance Company Limited was established in 1850. Till the end of 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 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business.

OVERVIEW
With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 1520 per cent annually and presently is of the order of Rs 450 billion. Together with

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banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private

projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long-term debt and equity for infrastructure projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. 14

PRESENT SCENARIO
The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Committee.

INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A BRIEF HISTORY OF THE INSURANCE SECTOR:The business of life insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are:

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

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enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the General Insurance business in India with effect from 1stJanuary 1973 & 107 insurers amalgamated and grouped into four companies viz.     The National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and The United India Insurance Company Ltd.

LIFE INSURANCE MARKET
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`The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 15 private insurers in the life insurance market have already grabbed nearly 14 percent of the market in terms of premium income. The new business premiums of the 15 private players have tripled to Rs 2000 crores in 2004- 05over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have 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. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 40 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000.

DEFINITION OF INSURANCE

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Insurance is a contractual-type financial intermediary that offers the public protection against the financial costs associated with the loss of life, health, or property in exchange for premiums. An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured. Risk insurance intended as protection against the financial consequences of the death of the insured person, which takes the form of payment of a previously agreed lump sum or pension to a beneficiary, if the insured person dies during the term of insurance. In the case of pure life insurance, without any endowment insurance component, no payments are due if the insured person survives the term of insurance.

What is Insurance?
Life Insurance is a contract providing for payment of a sum of money to the person assured or, to the person entitled to receive the same, on the happening of a certain event. A family is dependent for its food, clothing and shelter on the income brought by the family's breadwinner. The family is secure so long as this breadwinner is alive and is capable of earning. A sudden death (or disability) may leave the family in a financially difficult situation. Uncertainty of death is inherent in human life and this uncertainty makes it necessary to have some protection against the financial loss arising from untimely death. Life insurance offers this protection.The Greeks and Romans started the earliest type of life insurance. Contributions were made by all surviving members for the burial cost of a member. In case of the death of a member the cost of burial was made out of the contributed fund. In the 17th century, the Tontine Annuity system was introduced where associations of individuals were formed without any reference to age, and a fund was created by equal contributions from each member.

Types of Insurance
Basically there are two types of Insurances:  Non-Life Insurance

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 Life Insurance INSURANCECC --MARINE INSURANCE --FIRE INSURANCE --MISCELLANEOUS INSURANCE  VEHICLES  FURNITURE NON-LIFE  BUILDING INSURANCE  AIRCRAFTS  GENERAL  INTANGIBLES --ONLY HUMAN LIFE INSURANCE INCLUDES IN THIS CATEGORY --HUMAN BEING’S SICKNESS, ILLNESS AND OTHER ASSURANCE GIVEN IN THIS LIFE CATEGORY INSURANCE --LONG TERM CONCEPT

INSURANCE- The Need
Insurance is no longer a mundane source of protection from life and accidents. Innovative products are offering investment opportunities. Money saved is money earned. There are no two ways about it: the primary reason for picking up an insurance product is to protect yourself, or your kin, from the vagaries of life. You don't invest in insurance for the returns; rather, you invest in what they refer to as regrettable necessities. Of course, a large proportion of the instruments available in the country today does offer some sort of return to the investor. But these endowment products, as they are dubbed, benchmark their returns to the inflation rate. No, you aren't chasing that 6 percent, you shouldn't be. Perhaps you seek tax-concessions. For years, insurance products have been an attractive vehicle to extract concessions from the tax-man. Even now, come

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February and March, there is a rush for insurance policies in order to reduce the tax bill. But 3 things have changed: first, tax rates are not as high as they used to be (thankfully, the peak rates of 70-90 per cent in 1960s have come down to 33 per cent). Second, the concessions are still limited to a 20 per cent tax-shelter: investment of Rs 10,000 in life insurance policies will net you a tax rebate of Rs 2,000. And, finally, other tax-saving schemes-primarily, the Public Provident Fundoffer higher returns, and are more liquid.

Why do you need life Insurance?
You need Life Insurance because typically the need for income continues for those who are financially dependent on you, but there is no guarantee of your ability to earn consistently and for the rest of your life. Life insurance can help you safeguard the financial needs of your family.This need has become even more important due to steady disintegration of the prevalent joint family system,

REPLACEMENT OF INCOME
Life insurance products can provide support to the family and take care of the family's financial requirements. It provides a lump sum or periodic payments to help replace the income stream, in case of an unfortunate event or an untimely demise of the breadwinner.

LIFESTYLE MAINTENANCE
Life insurance products can help you build a corpus to protect and maintain your lifestyle against fluctuations in your future income.

COST OF EDUCATION

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You need to support your child with a sound educational background, to help your child achieve his/her dreams. Life insurance products can help you fulfill these needs, whether you are there or not.

Retirement Expenses
Retirement is an age when an individual has fulfilled almost all his responsibilities and looks forward to relaxing. Life insurance products can help you lead a secure and tension free retired life by ensuring that you get guaranteed pension.

MORTGAGE AND DEBT PROTECTION
With increasing consumerism and ever-rising demands, loans and debts are now part of life. Life insurance products help you ensure that your family is not unduly burdened with their repayments, in case of an unfortunate event or an untimely demise of the breadwinner.

HARDSIP PROTECTION
Life insurance provides a sense of security to the income earner and to his/her family. Buying life insurance frees the individual .

BENEFITS OF LIFE INSURANCE
Superior to Any Other Savings Plan, unlike any other savings plan, a life insurance policy affords full protection against risk of death. In the event of death of a policyholder, the insurance company makes available the full sum assured to the policyholders' near and dear ones. In comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely,

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such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is sizable.

Encourages and Forces Thrift
A savings deposit can easily be withdrawn. The payment of life insurance premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage.

Easy Settlement and Protection against Creditor
A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy.

Administering the Legacy for Beneficiaries
Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts.

Ready Marketability and Suitability for Quick Borrowing
A life insurance policy can, after a certain time period (generally three years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan.

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Disability Benefits
Polices also include disability benefits. Typically, these provide for waiver of Death is not the only hazard that is insured; many future premiums and payment of monthly installments spread over certain time period.

Accidental Death Benefits
Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.

Tax Relief
Under the Indian Income Tax Act, the following tax is available:a) 20 % of the premium paid can be deducted from your tax liability. total income

b) 100 % of the premium paid is deductible from your total taxable income.

When these benefits are factored in, it is found that most polices offer returns that are comparable or even better than other saving modes such as PPF, NSC etc. Moreover, the cost of insurance is a very negligible.

ROLE OF LIFE INSURANCE
 Security and Stability  Investment  Preservation of Health  Increase Efficiency  Self Reliance

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 Mental Peace  Planning of future  Safe guard against statutory liability  Capitalization of earning capacity  Exemption from Tax Liability  Safety to Investment Mode.

LIFE INSURANCE V/S OTHER INVESTMENTS
 Most investment options make your money work harder, but there are no substitutes to life insurance. Because only a life insurance policy gives you both risk cover against your life, as well as returns on your money invested.  Life insurance allows long tem savings to be made in a relatively painless manner because of the low and convenient investments made through premiums. Moreover, it encourages 'forced thrift' which means the insured is

 Made to pay premiums and save money, which he/she may not do in the regular course of life.  Should you require loans, say for building a house, it can be easily obtained against a life insurance policy. Amongst the most known benefits of Life Insurance is the savings on your income taxes.  Life insurance cannot be compared with any other form of investment as life insurance gives you a life long benefit and returns on your money when it is most required. Insurance premiums are linked to age of the life insured and the earlier you buy, the lower are the premium requirements. Besides, the money stays invested for a longer time and thereby maximizing your returns through the power of rupee

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compounding. So, a life insurance policy is an ideal tool to gain security and ensure savings. Most importantly it provides you with that unique sense of security and peace of mind that no other form of investment provides

2. INTRODUCTION TO THE COMPANY
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

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HDFC STANDARD LIFE INSURANCE COMPANY

Under this topic, the major headings that will be covered are as under:  HISTORICAL BACKGROUND  BOARD OF DIRECTORS  VISSION  VALUES  MISSION  PROMOTERS  GROUP COMPANIES DEPARTMENTATION

COMPANY HISTORY HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance Company was incorporated on 14th August 2000, under the name of HDFC Standard Life Insurance Company Limited. Our ambition, tracing back to October 1995, was to be the first private company to enter the life insurance market in India. On 23rd October 2000, this ambition was realized, when HDFC Standard Life was the only life insurance company to be granted a certificate of registration. HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies offering a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and the Standard Life Group, United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry – important factors to consider when choosing your insurer. HDFC Ltd. and Standard Life Group, UK, have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the

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success of the parent companies and be the yardstick by which all other insurance companies in India are measured. As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required, to manage long-term investments safely and efficiently. HDFC Standard Life offers a range of individual and group solutions, which can be easily customized to your specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

The Company’s premium income, including the first year premiums and renewal premiums was Rs.1532.21 crores for the period April 2005 to March 2006. HDFC Standard Life has covered over 1.6 million individuals. The Company has also declared its 6th consecutive bonus in as many years for our ‘with profit’ policyholders.

Our Vision
'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'.

Our Values
Values that we observe while we work:  Integrity Innovation 27

Customer-centric People-Care-“One-for-all-and-all-for-one”  Team-work Joy and Simplicity

 Accolades and Recognition

Rated by 'Businessworld' as 'India's Most Respected Private Life Insurance Company' in 2004 Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal finance magazine

MISSION
Their Mission is: To be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like-

 Customer service of the highest order  Value for money for customers 28

 Professionalism in carrying out business  Innovative products to cater to different needs of different customers  Use of technology to improve service standards  Increasing market share

Core Values:
 SECURITY: Providing long term financial security to our policyholders will be our constant endeavor. TRUST: They appreciate the trust placed by their policyholders in them. Hence, they will aim to manage their investments very carefully.



INNOVATION: Recognizing the different needs of their customers, be offering a range of innovative products to meet these needs

These would be clearer by diagram:Organizational Pattern Diagram

Chairman-Cum-Managing Director

REGIONAL MANAGER

DIVISIONAL MANAGER 29

BRANCH MANAGER

DEVELOPMENT OFFICER

AGENTS

Organization Diagram of the Branch:

Branch Sales
Manager
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(RM)

Sales Manager

Unit Manager

Direct Sales

Insurance Advisors

Brief profile of the Board of Directors

The Introduction

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Serving customers for over 180 years Currently administers £125 billion in assets Voted 5 Star Life & Pensions provider for last 10 years

Market leader in the Housing Finance Sector Over 2 million satisfied customers Over 1,00,000 Crores in Loan Approvals Ranked as India’s 3rd Best Managed Company by Finance Asia-2005

250 Branches 11,00,000 Customers Multiple Products - Protection - Unit Linked - With Profit More than 8 lakh policyholders Servicing over 440 towns in India

PROMOTERS

CORPORATE
The Joint Venture of HDFC & Standard Life

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HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

The Partnership:

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HDFC and Standard Life first 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. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

Group companies

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HDFC is a highly diversified group. Its group Companies are:

HDFC Limited
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 Bank Limited
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive approval from the Reserve Bank of India to set up a bank in the private sector. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai.

HDFC Securities Limited
HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors, a capability to transact in the Stock Exchanges & other financial market transactions.HDFC securities, provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools.

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HDFC Asset Management Company Limited
HDFC Fund is a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests.

HDFC Realty Limited
HDFC Realty is a new, organized electronic marketplace for properties. HDFC realty provides the entire gamut of real estate services, bringing together the "clicks world" and the "bricks world" in a revolutionary and user-friendly way. Making available the best guidance, and the most professional, transparent, efficient service to the real estate customer.

With over one century of experience in the field of non-life insurance from Chubb and HDFC's expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the consumer insight to make its product range world class and comprehensive.

Standard Life

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Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

DEPARTMENTS IN ORGANISATION:
The various departments in the organization are:  The Human Resource Department  Investment Department  Customer Service and Operations Department  Information Technology Department  Strategy Department  Marketing Department.

PERFORMANCE OF HDFC
FINANCIAL PERFORMANCE PRODUCT & SERVICES INDIVIDUAL PRODUCTS We at HDFC Standard Life realise 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. 37

 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: TERM ASSURANCE PLAN LOAN COVER TERM ASSURANCE PLAN HOME LOAN PROTECTION PLAN  Investment Plans  Pension Plans  Savings Plans  Health Plans

Group Products Group Term Insurance:
HDFC Standard Life Insurance offers a Group Insurance scheme for companies called 'Group Term Insurance. This product has been designed to offer innovative features and a high degree of customization.

Gratuity Plan
The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer and gratuity scheme trustee, a new and flexible way to fund your gratuity liability.

Development Insurance Plan:

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This product is well suited for the economically weaker sections of society and caters specifically to their needs. It makes available life cover at affordable rates.

Communication strategies and media analysis
HDFC STANDARD LIFE INSURANCE success has been built on its consistent focus on the customer and delivering on his/her needs. This includes several initiatives, such as:  Developing flexible products that are based on consumer needs and insights.  Offering differentiated service to the customer in a manner that is most  Convenient to him/her-be it through the web, call centres, branches, etc.  Scientific risk management.  Investment strategy with a focus on safety, stability and returns are some of the factors that have facilitated their growth. Since its inception, HDFC STANDARD LIFE INSURANCE has invested in building a meaningful brand in the mind of its customers. These efforts have borne fantastic results, with the company enjoying total brand awareness scores of 92%, the highest among private life insurers. The Marketing function at HDFC STANDARD LIFE INSURANCE covers many activities Brand and media management,  Channel support  Direct marketing The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps in developing and nurturing HDFC STANDARD LIFE INSURANCE corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by providing streamlining the design and development of collaterals and sales tools across distribution channels. The

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Direct Marketing team was set up to generate high quality leads for profitable business. The team achieves this through target database acquisition and communicating customized product information through e-mailers, telemarketing and innovative direct mailers. HDFC STANDARD Life Insurance has shifted its Rs.200 million media planning and buying account from Initiative Media to Mindshare. The main aim of the company is that they are looking for agencies, which can go beyond tools and techniques in terms of rigorously using them, and implementing a robust monitoring system (for efficiency in terms of planning and execution of the plan devised). Also, they should have some expertise in handling the banking, financial services and insurance category. The company also looks at the capability to go beyond TV, outdoor and print.

HDFC MORE
Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity in the joint venture.

Our key strengths
Financial Expertise: As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions: We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

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Promoters of HDFC Standard Life Insurance:
1. HDFC Limited 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.

Standard Life Group (Standard Life plc and its subsidiaries)
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

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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

Incorporation: HDFC’s Standard Life Insurance Company Limited
The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Our ambition from as far back as October 1995, was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance company's in India are measured.

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PRODUCTS
At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customised solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

Individual Products
We at HDFC Standard Life realise 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.

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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’s immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked Youngstar, Unit Linked Youngster Plus.

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

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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 Products
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 that member’s 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 Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

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Premium Payments
The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

Benefits
On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time.

The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: • Submission of member data in a specified computer format • Collection of premiums from group members • Recording changes in the details of group members • Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: • Payment of premiums • Reporting of claims • Keeping policy holder information up to date

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Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members. Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred

Tax Benefits
INCOME TAX SECTION GROSS ANNUAL SALARY HOW MUCH TAX CAN YOU SAVE? HDFC STANDARD LIFE PLANS Sec. 80C Across All income Slabs. Upto Rs. 33,990 saved on investment of Rs. 1, 00,000. All the life insurance plans. Sec. 80 CCC Across all income slabs. Upto Rs. 33,990 saved on Investment of Rs.1, 00,000. All the pension plans. Sec. 80 D* across all income slabs. Upto Rs. 3,399 saved on Investment of Rs. 10,000. All the health insurance riders available with the conventional plans.

TOTAL SAVINGS POSSIBLE ** Rs. 37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Sec. 10 (10) D under Sec. 10(10D), the benefits you receive are completely taxfree, subject to the conditions laid down therein.

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* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit. ** These calculations are illustrative and based on our understanding of current tax legislations, which is very beneficial.

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3. RESEARCH METHODOLOGY
According to Clifford woody “ research comprises defining and redefining problems, formulating hypotheses solution, collecting and evaluating data, making deduction and reaching conclusion and at last carefully testing the conclusion to determine weather they fit the formulating hypothesis”. Research in a common parlance refers to a search for knowledge. One can also define search as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Some people consider research as a movement, a movement from known to unknown; it is actually a voyage of discovery. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown can be termed as research.

3.1 Title of the study:
“Recruitment & selection Policy”

3.2 Duration of the project:
Summer training report from HDFC STANDARD LIFE INSURANCE for 45 days.

Objective of study:
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•

How does right recruitment process helps in creating overall efficiency, cost reduction, on time delivery with reference to external customer.

•

To collect the findings, information & analyze to draw conclusion of recruitment process.

•

To explain the documentation used at the various stages of the recruitment & Selection process.

•

To involve employees in creating an environment of openness, trust, fun & pride.

•

To highlight the area where recruitment and selection programs needs improvement.

•

Is the current recruitment process in line with the employee’s future career planning and his potential?

•

Developing human resources in consonance with broader corporate horizon and long range vision of the organization.

TYPE OF RESEARCH
1. Exploratory research is conducted with the help of using an interview and questionnaire schedule for this project. In this type of research, the researcher has to contact the person directly to know the available information and analyze these to make a critical evaluation. The facts or information required to analyze the data was available in interview schedule. This was one of the main sources for the project.

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3.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE UNIVERSE- JAIPUR
The sample collected in finite population of ICICI Prudential

SAMPLE SIZE: -50
Research design is a model of master plan for gathering formal information. It calls for certain specification of methods and procedures for obtaining the required information.

PRIMERY SOURCES OF INFORMATION
 Officials and sales executives of SBI Mutual fund.  Official and executives of SBI  Discussion about mutual funds with existing and new investors

SECONDARY SOURCES OF INFORMATION
 Offer documents of SBI and ICICI Prudential Mutual Funds.  Mutual Fund related magazines like Mutual Fund Review, Mutual Fund Insight by value researchers, Outlook Money.  Fact Sheets of SBI Mutual Fund and ICICI Prudential Mutual Fund Web sites, mainly www.mutualfundsindia.com, sbimf.com www.valueresearchersonline.com, www.indiainfoline.com.

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3.6 SCOPE OF STUDY
RECRUITMENT AND SELECTION RECRUITMENT

Recruitment is the process concerned with the identification of sources from where the personnel can be employed and motivating them to offer themselves for employment. Weather and Davis have defined this as follows; “Recruitment is the process of finding and attracting capable applicants for employment. The Process begins when new recruits are sought and ends when their applicants are submitted. The result is Sa pool of applicants from which new employees are selected.” Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. A formal definition states, “It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected”. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection.

In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc.are used. 52

In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees Definition: According to EDWIN FLIPPO,”Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.” Lord has defined, “Recruitment is a form of competition. Just as corporations compete to develop, manufacture, and market the best product or service, so they must also compete to identify, attract and hire the most qualified people. Recruitment is a business, and it is big business.” Thus, recruitment process is concerned with the identification of possible sources of human resource supply and tapping those sources.

1.2 Need for recruitment: The need for recruitment may be due to the following reasons / situation: a. Vacancies due to promotions, transfer, retirement, termination, permanent disability, death and labour turnover. b. Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job specification.

Purpose and importance of Recruitment:
•

Determine the present and future requirements of the organization on conjunction with its personnel-planning and job analysis activities.

• •

Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing the number of visibly under qualified or overqualified job applicants.

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•

Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time.

•

Meet the organization’s legal and social obligations regarding the composition of its work force. Begin identifying and preparing potential job applicants who will be appropriate candidates.

•

•

Increase organizational and individual effectiveness in the short term and long term.

•

Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decided whether they wish to work for it. A well-planned and well-managed recruiting effort will result in high quality applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones.

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CENTRALISED V/s DECENTRALISED RECRUITMENT
Recruitment practices vary from one organization to another. Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian Railway resort to decentralized recruitment practices. Personnel department at the central office performs all the functions of recruitment in case of centralised recruitment and personnel departments at unit level/zonal level perform all the functions of recruitment concerning to the jobs of the respective unit or zone.

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RECRUITMENT PROCESS: Steps in recruitment of Insurance Agents
 Approach to the likely person  Appointment as per condition  Discuss the topic  Give the documents which includes:1. Prospectus of the company 2. Brochure 3. Company’s plan 4. Questionnaire  Collect the document after it’s completion  Forward it to project manager  Feed it in the computer as the database  Follow up as per conditions

Modes of Contact
 Personal Contacts  References  Phone Calls  Guidance as per Unit Manager

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GOALS OF RECRUITMENT
• •

To attract highly qualified individuals. To provide an equal opportunity for potential candidates to apply for vacancies.

Sources of Recruitment SOURCES OF MANAGERIAL RECRUITMENT

INTERNAL SOURCES
1) Promotion 2) Transfers 3) Internal notification (Advertisement) 4) Retirement

EXTERNAL SOURCES
1) Campus recruitment 2) Press advertisement 3) Management consultancy service & private employment exchanges 4) Deputation of personnel or transfer from one enterprise to another

5) Recall 6) Former employees

5) Management training schemes 6) Walk-ins, write-ins, talk-ins

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The sources of recruitment can be broadly categorized into internal and external sources•

Internal Recruitment – Internal recruitment seeks applicants for positions from within the company. The various internal sources include-:

Promotions and Transfers –
Promotion is an effective means using job posting and personnel records. Job posting requires notifying vacant positions by posting notices, circulating publications or announcing at staff meetings and inviting employees to apply. Personnel records help discover employees who are doing jobs below their educational qualifications or skill levels.
•

Employee referralsEmployees can develop good prospects for their families and friends by acquainting them with the advantages of a job with the company, furnishing them with introduction and encouraging them to apply. This is a very effective means as many qualified people can be reached at a very low cost to the company.

•

Dependents of deceased employeesUsually, banks follow this policy. If an employee dies, his / her spouse or son or daughter is recruited in their place. This is usually an effective way to fulfill social obligation and create goodwill.

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•

Recalls: When management faces a problem, which can be solved only by a manager who has proceeded on long leave, it may de decided to recall that persons after the problem is solved, his leave may be extended.

•

Retirements: At times, management may not find suitable candidates in place of the one who had retired, after meritorious service. Under the circumstances, management may decide to call retired managers with new extension.

•

Internal notification (advertisement): Sometimes, management issues an internal notification for the benefit of existing employees. Most employees know from their own experience about the requirement of the job and what sort of person the company is looking for.

• External Recruitment: –
External recruitment seeks applicants for positions from sources outside the company. They have outnumbered the internal methods. The various external sources include
•

Professional or Trade Associations :-

Many associations provide placement service to its members. It consists of compiling job seeker’s lists and providing access to members during regional or national conventions. Also, the

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Advertisements:It is a popular method of seeking recruits, as many recruiters prefer advertisements because of their wide reach. Want ads describe the job benefits, identify the employer and tell those interested how to apply. Newspaper is the most common medium but for highly specialized recruits, advertisements may be placed in professional or business journals.

Employment Exchanges:Employment Exchanges have been set up all over the country in deference to the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25 workers or more each. The Act requires all the industrial establishments to notify the vacancies before they are filled.

Campus Recruitments:Colleges, universities, research laboratories, sports fields and institutes are fertile ground for recruiters, particularly the institutes. Campus Recruitment is going global with companies like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global markets. Some companies recruit a given number of candidates from these institutes every year.

SELECTION
Selection can be conceptualized in terms of either choosing the fit candidates, or rejecting the unfit candidates, or a combination of both. Selection involves both because it picks up the fits and rejects the unfits. In fact, in Indian context, there are more candidates who are rejected than those who are

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selected in most of the selected processes. Therefore, sometimes, it is called a negative process in contrast to positive program of recruitment. Stone has given a formal definition; “Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job”

Difference between Recruitment and Selection
At this stage, it is worthwhile to understand difference between recruitment and selection as both these terms are often used together or sometimes interchangeably. Flippo described in the following statement: “Recruitment is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to increase the hiring ratio, i.e., the number of applicants for a job. Selection, on the other hand, tends to be negative because it rejects a good number of those who apply, leaving only the best to be hired.”

Difference (Recruitment and Selection)
1.) Recruitment is the process of searching for prospective candidates and motivating them to apply for job in the organisation Whereas, selection is a process of choosing most suitable candidates out of those, who are interested and also qualified for job.

2.) In the recruitment process, vacancies available are finalized, publicity is given to them and applications are collected from interested candidates. 61

In the selection process, available applications are scrutinized. Tests, interview and medical examination are conducted in order to select most suitable candidates. 3.) In recruitment the purpose is to attract maximum numbers of suitable and interested candidates through applications. In selection process the purpose is that the best candidate out of those qualified and interested in the appointment. 4.) Recruitment is prior to selection. It creates proper base for actual selection. Selection is next to recruitment. It is out of candidates’ available/interested. 5.) Recruitment is the positive function in which interested candidates are encouraged to submit application. Selection is a negative function in which unsuitable candidates are eliminated and the best one is selected. 6.) Recruitment is the short process. In recruitment publicity is given to vacancies and applications are collected from different sources Selection is a lengthy process. It involves scrutiny of applications, giving tests, arranging interviews and medical examination. 7.) In recruitment services of expert is not required Whereas in selection, services of expert is required 8.) Recruitment is not costly. Expenditure is required mainly for advertising the posts. Selection is a costly activity, as expenditure is needed for testing candidates and conduct of interviews.

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GOALS OF SELECTION
•

To systematically collect information about to meet the requirements of the advertised position. To select a candidate that will be successful in performing the tasks and meeting the responsibilities of the position. To engage in hiring activities that will result in eliminating the under utilization of women and minorities in particular departments.

•

•

PLACEMENT AND INDUCTION After a candidate is selected for employment, he is placed on the job. Initially, the placement may be probation, the period of which may range from six months to two years. After successful completion of the probation period, the candidate may be offered permanent employment. 1. When a new employee joins an organization, he is a stranger to the

organization and vice versa. He may feel insecure, shy, and nervous in the strange situation. He may have anxiety because of lack of adequate information about the job, work procedures, organizational policies and practices, etc. In such a case, induction is needed through which relevant information can be provided; he is introduced to old employees and to work procedures. 2. Effective induction can minimize the impact of reality shock some new

employees may undergo. Often, freshers join the organization with very high expectations which may be far beyond the reality. When they come across with reality, they often feel shocked. By proper induction, the new comers can be made to understand the reality of the situation.
•

3.7

LIMITATION OF STUDY

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Any research in any field topic gives some new results, discovering new areas etc. but there are always some limitations thereof.  The data collected is totally dependent on respondents’ views, which could be bias in nature.  Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer.  The sample size is small and it may not actually represent the whole population.  During the survey I came across unfavorable weather conditions like scorching heat and dust storm.  There is limited time available each day and lot of tasks have to completed in a day like preparing reports, conducting surveys, spend time at the office to gain knowledge, etc.  The study was conducted in the urban areas and it cannot be applied to the rural areas because the tastes and preferences of people of rural and urban areas differ vastly.  The answers given by the respondents are not always correct and may be misleading.  It is very time consuming to go door to door in order to conduct a survey of various homes and find their views and study their buying behavior.  Sometimes it becomes very difficult to convince people as many of them are not at all aware of Saras products and some are very stubborn. It

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4. FACTS & FINDINGS
Insurance is the instrument of Security, saving and peace of mind.It provide several benefits by paying a small amount of premium to an insurance company a Safeguards oneself and one's family for future requiremen  Peace of mind-in case of financial loss. Encourage saving.  Tax rebate.  Protection from the claim made by creditors.  Security against a personal loan, housing loan or other types of loan.  Provide a protection cover to industries, agriculture, women and child.  Insurance Regulatory Development Authority :  Life insurance is universally acknowledged to be an institution which eliminates 'risk' and provides the timely aid to the family in the unfortunate event of death of the breadwinner.  Life Insurance is a contract for payment of a sum of money to the person assured (or nominee) on the happening of the event insured against. The contract provides for the payment of premium periodically to the Insurance company by the assured. The contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier.

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Some important findings of life Insurance as:
Protection: Life Insurance guarantees full protection against risk of death of the assured. In case of death, full sum assured is payable. Long Term Saving: Life insurance encourages long term saving. By paying a small premium in easy installments for a long period a handsome saving can be achieved. Liquidity: Loan can be obtained against a policy assured whenever required. Tax Profit: Tax relief in income tax and wealth tax can be availed on the premium paid for Life Insurance.By the year 1956, 154 Indian insurance, 16 non-Indian insurance and 75 provident societies were carrying on Life insurance business in India. On 1st September 1956 all the Insurance Companies were nationalized. On September 1956, LIC Act was passed by Indian Parliament and the state run Life Insurance Corporation of India (LIC) has held the monopoly in countries life insurance sector. In the year 1999, the Insurance Regulatory Development Act (IRDA) was passed in Indian Parliament. By this act a door was open for private companies with foreign equity Life Insurance. By this act an Indian promoter can invest either wholly in an insurance venture or team up with a foreign insurer, with a cap of 26 percent of equity for a foreign partner.

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5. DATA ANALYSIS & INTERPRETATION

MARKET SURVEY

60 50 40 30 20 10 0

LIFE INSURANCE IS:
51 38 16

RESPONSES

Protection of Tax benefit device human asset value against uncertainty CATEGORY

Both

From the survey it was drawn that life insurance is more a protection of human asset value against uncertainty (conferred by 51 respondents) where it is a tax saving option (being accepted by 38 respondents). Life insurance is a service involving both these prerequisites as depicted by remaining 16 respondents. The following depicted this:

Protection of human asset value against uncertainty Tax benefit device Both

51 38 16

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IS LIFE INSURANCE ESSENTIAL?
78 80 70 60 50 40 30 20 10 0

NO. OF RESPONDENTS

27

Yes RESPONSES

No

It has been observed and applied as a Life insurance is an essential service and should be applicable to every one, as favored by considerable 78 respondents where it is not essential to an extent by 27 respondents from the summer training project survey by putting forth the set questionnaire.

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RESPONDENT'S QUALIFICATION
10% 33%

Post graduate Graduate Senior secondary

57%

When further enquired about the qualification of respondents, it was found that 57% of the respondents were graduates, 33% were post graduates and remaining 10% were of higher secondary out of total 105 respondents. Further depicted in the following tabular representation: -

Post graduate Graduate Senior secondary

35 59 11

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AGE QUALIFICAITON: 6% 20% 39% 18-25 age group 25 – 35 age group 35 – 45 age group Above 45 age group

35%

Further, the age qualification for agency recruitment, it was found that 39% respondents were belonging to 18 – 25 age group, 35% were belonging to 25 – 35 age group where as 20% to 35 -45 age group and remaining 6% to above 45 age group. Also depicted in the following tale mentioned below: 18-25 age group 25 – 35 age group 35 – 45 age group Above 45 age group 41 37 21 6

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CAUSES OF DISSATISFACTION 10% 16%

23%

Low employment Low earning / income Low status

17%

34%

Huge capital investment All of the above

Respondents had different views about the dissatisfaction from the present status of working or occupation. Dissatisfaction has been depicted in a table below and graphically above:

Low employment Low status

24 18

Low earning All of the above

36 Huge capital investment 10

17

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ABOUT CAREER IN LIFE INSURANCE 70 60 NO. OF RESPONDENTS 50 40 30 20 10 0 Yes RESPONSES No 59 46

When asked about whether they would like to know about a glorified career in life insurance agency where they can fulfill any and every desire of their life, 59 respondents agreed while 46 respondents said No and will see later sometime in future. It has been depicted that life insurance sector should be promoted at the wide extent as it contribute to the economy as a useful source beneficial for both nation as well as is citizens.

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IS LIFE INSURANCE A NOBLE SERVICE? 100 NO. OF RESPONDENTS 80 60 40 20 0 Yes RESPONSES No 19 86

Indeed Life insurance is a noble business as it provides a needful financial support in the situation of fatal calamity where the family is deprived by the fact to live in future and sustains their living. When surveyed about life insurance as a noble service. 89 respodents agreed and believe that insurance is a bettering service to human life and society as a whole where as 19 respondents show disagreement.

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6. SWOT ANALYSIS

STRENGTHS
1. HDFC Standard life insurance offers a range of individual and group insurance solutions. 2. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. 3. The company has covered over 8,77,000 lives year ending March 31, 2007 4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year for High service standards 5. Life insurance industry is a rapid growing and a nobler service industry.

WEAKNESSES
1. LIC is prevalent and sustains even today a major source of population. 2. Low number of offices and network and number of life insurance agents. 3. Lack of knowledge and expertise.

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OPPORTUNTIIES
1. Life insurance has captured its mere15 – 20% growth therefore a wide open untapped market is open to the company to develop, grow and measure its success. 2. Still the number of companies are few and company has every capabilities to grow and forward its performance areas to the widest

THREATS
1. People are hesitant to invest and put their hard earned money to the private life insurance company with the fear of getting lost. 2. Belief towards LIC as it is a government corporation development and liberalization of life insurance. 3. Alternative financial services such as mutual fund, banking services, share and securities also pose problems and threats to the working of the life insurance sector. 4. Illiteracy and unemployment also pose threat. 5. Rising real estate industry also pose threat as people are investing a bulk of their money over to that industry. phobia is

continue to surmount the people of India despite lots of flaws and

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7. CONCLUSION

Summer training is a best example for a trainee to learn about the company working, corporate culture under which is operating the functions. HDFC standard life insurance is a life insurance company under which I gained a significant knowledge with respect to life insurance, its importance and applicability as well as undertook the task to recruit capable life insurance advisors which is conducive for the company to grow with more prosperity. What I taught in the management institute utilized them fruitfully leading to the best advantage to the company and to the best experience for mine. At far I can conclude that life insurance is a noble service which is very important for every citizen to learn and realize its importance because this is the only source which can remain the status where one is with the family bread earner and ever when he is not. With the growing financial sector I would like to opt this industry for my future career advancement and as an opportunity to service this industry.

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8. RECOMMENDATIONS & SUGESTIONS
Following are suggestions made for the benefits and augmentation of the sound working of the company – HDFC Standard life insurance: 1. Need to train and develop life insurance agents with more comprehensive knowledge and skills to counter every queries of the customer. 2. It is suggested that company should not left any stone unturned towards sound advertisement and promotional measures on every section whether it is printed, media or or air via radio. 3. It is also suggested that skilled management graduates need to be places on sales and marketing of financial servies who can render their best ideas for the accomplishment of the company goals and objectives to the best extent. 4. Also, care need to be taken that every customer’s grievance should be met with delight whether before purchase or after sales. 5. There should be an expansion measure for more offices and location of more centres for offices of the company be established sop that company may grow its network. 6. there should more advanced measures are required to develop to capture the needs of customer so that they can be inspire and motivated to invest in the life insurance products being provided by the HDFC Standard life insurance. 7. Life insurance Products should be made flexible so as to suit every section of society.

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9. APPENDIX
QUESTIONNAIRE Name: - …………………………………………………………… Age:- …………………………………………………………… Location: - …………………………………………………………… Occupation: -……………………………………………………………

Q.1. What do you mean by life insurance? a) Protection of human asset value against uncertainty b) A sum received after death c) Both   

Q.2. Do you think life insurance is essential for every one? a) Yes b) No  

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Q.3. What is your qualification? a) Post graduate b) Graduate  

c) Senior secondary  Q.4. Do you come under: a) 18-25 age group b) 25 – 35 age group c) 35 – 45 age group d) Above 45 age group    

Q.5. What dissatisfied you most in your occupation a) Low employment b) Low earning / income c) Low status d) Huge capital investment e) All of the above
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    

Q.6. Would you like to know about a career in life insurance advisor ship where you can fulfill every desire of your life? a) Yes b) No  

Q.7 Do you perceive that life insurance business is a noble service oriented business? a) Yes b) No  

Q.8. Would you like to become or opt for life insurance advisor under esteemed and prospering organization HDFC Standard Life insurance? a) Yes b) No  

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Q.9. Do you agree that the life insurance business is a growing industry and will grow and rapid pace in future? a) Yes b) No a) Yes b) No Suggestions: 1. …………………………………………………………… 2. …………………………………………………………… 3. …………………………………………………………… 4. …………………………………………………………… ……………………………………………………………    

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10. BIBLIOGRAPHY
Following are sources which helped me during my summer training: S

BOOKS:
KOTHARI C.R.: Research Methodology Management, 3rd Edition KOTLER PHILIP: Marketing Management” 11th Revised edition ,2002 GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001

MAGAZINES:
India Today Business World

REFERENCES
www.hdfcinsurance.com www.irdaindia.org www.liccouncil.org

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