Final

CHAPTER NO.1
INTRODUCTION

THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW
With the 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 15-20 per cent
annually and presently is of the order of Rs 1560.41 billion (for the financial year 2006 –
2007). Together with banking services, it adds about 7% to the country’s Gross Domestic
Product (GDP). The gross premium collection is nearly 2% of GDP and funds available
with LIC for investments are 8% of the GDP.
Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part
of our population is also subject to weak social security and pension systems with hardly
any old age income security. This in itself is an indicator that growth potential for the
insurance sector in India is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and strengthens the risk taking
ability of individuals. It is estimated that over the next ten years India would require
investments of the order of one trillion US dollars. The Insurance sector, to some extent,
can enable investments in infrastructure development to sustain the economic growth of
the country. (Source: www.indiacore.com)

HISTORICAL PERSPECTIVE
The history of life insurance in India dates back to 1818 when it was conceived as a means
to provide for English Widows. Interestingly in those days a higher premium was charged
for Indian lives than the non - Indian lives, as Indian lives were considered more risky to
cover. The Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge the same premium for both Indian and non-Indian lives.
1

The Oriental Assurance Company was established in 1880. The General insurance business
in India, on the other hand, can trace its roots to Triton Insurance Company Limited, the
first general insurance company established in the year 1850 in Calcutta by the British. Till
the end of the nineteenth century insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the
1920's and 1930's sullied insurance business in India. By 1938 there were 176 insurance
companies.
The first comprehensive legislation was introduced with the Insurance Act of 1938 that
provided strict State Control over the insurance business. The insurance business grew at a
faster pace after independence. Indian companies strengthened their hold on this business
but despite the growth that was witnessed, insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified on the grounds that it would
create the much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State led planning and development.
The non-life insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general
insurance industry was nationalized in 1972. With this, nearly 107 insurers were
amalgamated and grouped into four companies- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance Company.
These were subsidiaries of the General Insurance Company (GIC).

2

KEY MILESTONES
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers along with provident societies were taken over by
the central government and nationalized. LIC was formed by an Act of Parliament- LIC
Act 1956- with a capital contribution of Rs. 5 crore from the Government of India.

Important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1972: The general insurance business in India nationalized through The General Insurance
Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies- the National Insurance Company Limited,
the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the
United India Insurance Company Ltd. GIC incorporated as a company.

3

Prior to liberalization of Insurance industry, Life insurance was
monopoly of LIC.
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor
R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its
future direction. The Malhotra committee was set up with the objective of complementing
the reforms initiated in the financial sector. The reforms were aimed at creating a more
efficient and competitive financial system suitable for the requirements of the economy
keeping in mind the structural changes currently underway and recognizing that insurance
is an important part of the overall financial system where it was necessary to address the
need for similar reforms. In 1994, the committee submitted the report and some of the key
recommendations included:

Structure
Government stake in the insurance Companies to be brought down to 50%. Government
should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act
as independent corporations.

Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to
enter the sector. No Company should deal in both Life and General Insurance through a
single entity. Foreign companies may be allowed to enter the industry in collaboration with
the domestic companies.

Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the FinanceMinistry- should be made independent

Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there
current holdings to be brought down to this level over a period of time)
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Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must
be encouraged to set up unit linked pension plans. Computerization of operations and
updating of technology is to be carried out in the insurance industry.

STATISTICS (INDIAN & GLOBAL)
This section gives the users important and detailed statistics of the Indian as well as the
Global insurance industry. These statistics would give important insights of where the
respective markets are headed for.


The global life insurance market stands at $1,521.2 billion while the non-life
insurance market is placed at $922.4 billion.



The United States itself accounts for about one-third of the $2443.6 billion global
insurance market and Japan stands next with a 20.62% share.



India takes the 23rd position with US $9.933 billion annual premium collections
and a meager 0.41% share.



Out of one billion people in India, only 35 million people are covered by insurance.



India's life insurance premium as a percentage of GDP is just 1.77 per cent.



The income derived by GIC and its subsidiary companies through investment was
Rs.2491.76 crore and the investable fund generated was Rs.2843 crore in 19992000.



Indian insurance market is set to touch $25 billion by 2010, on the assumption of a
7 per cent real annual growth in GDP.

5

NATURE OF INDUSTRY
The insurance industry provides protection against financial losses resulting from a variety
of perils. By purchasing insurance policies, individuals and businesses can receive
reimbursement for losses due to car accidents, theft of property, and fire and storm
damage; medical expenses; and loss of income due to disability or death.
The insurance industry consists mainly of insurance carriers (or insurers) and insurance
agencies and brokerages. In general, insurance carriers are large companies that provide
insurance and assume the risks covered by the policy. Insurance agencies and brokerages
sell insurance policies for the carriers.
Insurance companies assume the risk associated with annuities and insurance policies and
assign premiums to be paid for the policies. In the policy, the companies states the length
and conditions of the agreement, exactly which losses it will provide compensation for, and
how much will be awarded.
The premium charged for the policy is based primarily on the amount to be awarded in
case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In
order to be able to compensate policyholders for their losses, insurance companies invest
the money they receive in premiums, building up a portfolio of financial assets and
income-producing real estate which can then be used to pay off any future claims that may
be brought.
There are two basic types of insurance carriers:-

1. Direct
2. Reinsurance.

Direct carriers are responsible for the initial underwriting of insurance policies and
annuities, while Reinsurance carriers assume all or part of the risk associated with
the existing insurance policies originally underwritten by other insurance carriers.
6

Direct insurance carriers offer a variety of insurance policies.
 Life insurance provides financial protection to beneficiaries—usually spouses
and dependent children—upon the death of the insured.
 Disability insurance supplies a preset income to an insured person who is
unable to work due to injury or illness
 Health insurance pays the expenses resulting from accidents and illness.
 An Annuity (a contract or a group of contracts that furnishes a periodic income at
regular intervals for a specified period) provides a steady income during retirement
for the remainder of one’s life.
 Property-casualty insurance protects against loss or damage to property
resulting from hazards such as fire, theft, and natural disasters.
 Liability insurance shields policyholders from financial responsibility for
injuries to others or for damage to other people’s property. Most policies, such as
automobile and homeowner’s insurance, combine both property-casualty and
liability coverage. Companies that underwrite this kind of insurance are called
property-casualty carriers.

About Life Insurance
Human life is subject to risks of death and disability due to natural and accidental causes.
When human life is lost or a person is disabled permanently or temporarily, there is a loss
of income to the household. The family is put to hardship. Risks are unpredictable.
Death/disability may occur when one least expects it. There are a number of life insurance
products which offer protection and also coupled with savings.

7

A Term insurance product provides a fixed amount of money on death during the period
of contract.

A Whole Life insurance product provides a fixed amount of money on death.
An Endowment Assurance product provided a fixed amount of money either on death
during the period of contract or at the expiry of contract if life assured is alive.
A Money Back Assurance product provides not only fixed amounts which are payable on
specified dates during the period of contract, but also the full amount of money assured on
death during the period of contract.
An Annuity product provides a series of monthly payments on stipulated dates provided
that the life assured is alive on the stipulated dates.
A Linked product provides not only a fixed amount of money on death but also sums of
money which are linked with the underlying value of assets on the desired dates.
There are a variety of life insurance products to suit to the needs of various categories of
people—children, youth, women, middle-aged persons, old people; and also rural people,
film actors and unorganized laborers.
Life insurance products could be purchased from registered life insurers notified by the
IRDA. Insurers appoint insurance agents to sell their products.
As per regulations, insurers have to give the various features of the products at the point of
sale. The insured should also go through the various terms and conditions of the products
and understand what they have bought and met their insurance needs. They ought to
understand the claim procedures so that they know what to do in the event of a loss.

8

INDIAN INSURANCE SECTOR
REGULATORY BODY
Insurance is a federal subject in India. The primary legislation that deals with insurance
business in India is: Insurance Act, 1938, and Insurance Regulatory & Development
Authority Act, 1999.

The Insurance Regulatory and Development Authority (IRDA)
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering the
private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA’s online
service for issue and renewal of licenses to agents. Since being set up as an independent
statutory body the IRDA has put in a framework of globally compatible regulations.

MISSION-IRDA
“To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.
The following companies have the rest of the market share of the insurance industry.
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Market share of different companies
Competitor’s Name

Competitor’s Share

LIC India
ICICI Prudential Life
HDFC Life
SBI Life
Max NewYork
Bajaj Allianz
Birla Sunlife
Reliance Life
Tata AIG
ING Vysya
Met Life
Aviva
Canara-HSBC- OBC

63.47 %
5.88 %
5.66 %
4.40 %
3.14 %
2.73 %
2.46 %
2.30 %
1.27 %
1.27 %
1.05 %
1.02 %
0.99 %

Kotak Mahindra
Star-Union-Daiichi
Future Generali
IDBI-Fortis-Life
India-first
Bharti-Axa- Life
Aegon-Religare
Shriram Life
DLF-Pramerica
Sahara-Life

0.99 %
0.58 %
0.53 %
0.42 %
0.41 %
0.41 %
0.39 %
0.33 %
0.20 %
0.09 %

(Source : www.irda.com)

10

11

CURRENT SCENARIO OF THE INDUSTRY
INSURANCE MARKET IN INDIA
India with about 200 million middle class household shows a huge untapped potential for
players in the insurance industry. Saturation of markets in many developed economies has
made the Indian market even more attractive for global insurance majors. The insurance
sector in India has come to a position of very high potential and competitiveness in the
market.
Innovative products and aggressive distribution have become the say of the day. Indians,
have always seen life insurance as a tax saving device, are now suddenly turning to the
private sector that are providing them new products and variety for their choice. Life
insurance industry is waiting for a big growth as many Indian and foreign companies are
waiting in the line for the green signal to start their operations. The Indian consumer
should be ready now because the market is going to give them an array of products,
different in price, features and benefits. How the customer is going to make his choice will
determine the future of the industry.

CUSTOMER SERVICE
Consumers remain the most important centre of the insurance sector. After the entry of the
foreign players the industry is seeing a lot of competition and thus improvement of the
customer service in the industry. Computerization of operations and updating of
technology has become imperative in the current scenario. Foreign players are bringing in
international best practices in service through use of latest technologies. The one time
monopoly of the LIC and its agents are now going through a through revision and training
programs to catch up with the other private players. Though lot is being done for the
increased customer service and adding technology to it but there is a long way to go and
various customer surveys indicate that the standards are still below customer expectation
levels.

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BANK ASSURANCE

Bank assurance is the distribution of insurance products through the bank's distribution
channel. It is a phenomenon wherein insurance products are offered through the
distribution channels of the banking services along with a complete range of banking and
investment products and services. To put it simply, Bank assurance, tries to exploit
synergies between both the insurance companies and banks.

LIFE INSURANCE OFFERINGS…
Life insurance is many different things to many different people. For some, it is a premium
to be paid on time. For others it offers liquidity since cash can be borrowed when needed.
For the investment-minded, it denotes a constantly growing capital account and numerous
other benefits.
The contractual guarantee is the promise to pay, backed by one of the oldest and most
stably regulated financial industry operating in the Indian sub-continent today.

1) Insurance Buys Time and Money
People like to refer to life insurance as time insurance, the reason being that life insurance
proceeds are paid to the insured's beneficiaries in case of death. The money proffered by
life insurance helps buy time to adjust to the change of circumstances. Insurance provides
large amounts of cash that will keep the lifestyle for the survivors the way it was before the
insured's death.

2) Insurance Offers Peace of Mind
For the person who buys an insurance policy, it offers absolute and complete peace of
mind. He or she knows that the decision made by him will provide sound benefits in the
future, whether or not the individual may live to see it.

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3) Multiple Applications
The future is uncertain for each and every one. No one knows how long he or she will live.
The investment benefit is paid to the insured's beneficiaries after his death or it can be used
during the life as well. Life insurance policy owners can turn to the cash value of the policy
in case of a financial emergency when all avenues are either blocked or denied.

4) Enduring Elasticity
Since life insurance is flexible enough to serve several needs, the insured can keep several
long-term goals in mind once he or she invests in the insurance plan. The cash value of the
policy can be allocated towards augmenting the monthly income during the retirement
years. Leisure years should be turned into pleasure years. Permanent life insurance is
designed on the concepts of long-term flexibility.

5) Financial Security
The insurance policy offers contractual guarantees to people looking for peace of mind
when they buy life insurance. Life insurance offers complete financial security. The
purchase of life insurance demonstrates concern for a family's future financial well being.

6) Regard for Family
The purchase of life insurance clearly displays care and concern for the people the policy
owner loves.

7) Insurance is Safer
No financial institution can do what life insurance does. No industry can back its products
with reserves and surplus as sound as those of the insurance industry.

14

The proof of strength and safety that insurance companies have ensured even under the
most adverse of conditions is a matter of pride for the entire insurance industry. For
generation after generation, life insurance has been acclaimed as the very benchmark of
security against which the other industries are measured.

OPPORTUNITIES FOR INSURANCE COMPANIES
In the now open sector on insurance, the following is what I feel will determine the success
of the company in particular and the industry in general:

 A change in the attitude of the population
Indians have always been wary of employing their hard-earned money in a venture that
will pay them on their death. Insurance has always been used as a Tax saving tool. No
more, no less. It is upon the insurers to educate the people to secure/insure their future
against any unknown calamity and make a shield around their families and businesses.

 An open and transparent environment created under the IRDA.
The reason for this being on the top of our understanding is that when ever we have seen
any sector open up in India there are always grey areas and unsure policies. These are not
exactly what any player, be it Indian or foreign, looks for. It creates an air of uncertainty in
all the decision making process. Insurance as a sector requires players who are strong
financially and are willing to wait for returns. Their confidence can be bolstered only if
there is an open and a transparent policy guidelines. This will also help the consumers feel
safe that the regulatory is an active one and cares to do everything possible to keep things
under control and help the insurance environment grow maturely.

 A well-established distribution network.
To cater to the largest democracy in the world is by no means a cakewalk. Insurance profits
are directly related to number of insured and this is in turn related to the reach.

15

 Trained professionals to build and sell the product.
It is said that the insurance agent is the best salesman in the world. He makes you pay,
regularly, an amount promising to pay back only on your death. Thus the players will
require an excellent sales team to sell their products in the now competitive environment

COMPANY PROFILE
HDFC is an organization that strives for excellence, with the twin objective of enhancing
customer satisfaction and shareholder value.
HISTORY OF EVENTS
1

JANUARY 1995:

HDFC life first came together for a possible joint venture, to enter the life insurance
market. At the outset it was clear that both co. shared similar values and beliefs and a
strong relationship quickly formed.
2

OCTOBER 1995:
The companies signed a three year joint venture agreement around this time
Standard life purchased a 5% stake in HDFC, further strengthening the
relationship.
3

OCTOBER 1998:
The joint venture agreement was renewed and additional resource made
available, around this time standard Life purchased 3% 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.

4

JANUARY 2000:
An expert team form the UK joined a handpicked 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
16

Standard Life agreed to participate in the Asset Management Company promoted
by HDFC to enter the mutual fund market.
5

14th AUGUST 2000:
The company was incorporated under the name :HDFC STANDARD LIFE
INSURACE COMPANY LIMITED: their ambition from as far back as October
1995 was to be the first private company to re-enter the life insurance market in
India.

6

23rd OCTOBER 2000:
HDFC Standard Life became the” First life insurance company in the private
sector: TO be granted a certificate to Registration by the Insurance Regulatory and
Development Authority to transact life insurance business in India.

HDFC are the main shareholders in HDFC Life, with81.4%, while standard life owns
18.6%. HDFC Life has a long and close relationship built upon shared valued and trust.
The ambitions of HDFC life is to mirror the success of the parent companies and be the
yardstick by which all other insurance companies in India are measured. HDFC Life
Insurance Company has been signed on by Blue Star to provide insurance cover to its 1805
employees across India and overseas. HDFC life Insurance is on of the leading players in
the group insurance segment of the life insurance business. Its group business has grown
significantly since inception and now covers over 25,000 lives across the entire industry
spectrum including software, FMCG, Pharmaceutical banking consultancy, BPO retailing
and consumer electronics.
MANAGEMENT STRUCTURE OF THE H.D.F.C

MANAGEMENT STRUCTURE
MR.AMITABH CHAUDHARY

MS VIBHA PADALKAR

MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
EXECUTIVE DIRECTOR AND
CHIEF FINANCIAL OFFICER

17

MR.SRINIVASAM PARTHASARATHY

Mr. Prasun Gajri

CHIEF ACTUARY AND
APPOINTED ACTUARY

Chief Investment Officer

Mr. Rajendra Ghag

Senior Executive Vice President &
Chief Human Resource Officer

Mr. Anup Rau

Senior Executive Vice President

Mr. Sanjay Tripathy

Executive Vice President

Mr. Subrat Mohanty

Executive Vice President

Mr. Sanjeev Kapur

Executive Vice President

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 vest values for money, and easiest
the standards in the industry, In short, “ Them most obvious choice for all. ”

MISSION
HDFC standard Life aims 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:
1

Customer Service of the highest order.

2

Value for money for customers.

3

Professionalism in carrying out business.

4

Innovative products to cater to different needs of different costumers
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5
6

Use of technology to improve service standard.

Increasing market Share.

VALUE



Integrity



Innovation



Customer centric.



People care.



Team work

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PRODUCT PROFILE
HDFC Standard Life offers a bouquet of insurance solutions to meet every need. HDFC
Standard Life, cater to both, individuals as well as to companies looking to provide
benefits to their employees.
For individuals, a range of protection, investment, pension and savings plans that assist and
nurture dreams apart from providing protection.
For organizations a host of customized solutions that range from Group Term Insurance,
Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart
from providing long term value to the employees help in enhancing goodwill of the
company.

(1) INDIVIDUAL PRODUCTS
HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in
mind, they have varied range of products that we can choose from to suit all our needs.
These will help secure our future as well as the future of our family.

Protection Plans
Protection plans protect our family against the loss of our income or the burden of a loan in
the event of our unfortunate demise, disability or sickness. These plans offer valuable
peace of mind at a small price.

Protection range includes:
 Term Assurance Plan
A pure risk cover plan, which gives us protection against the uncertainties of life. The
HDFC Term Assurance Plan is an insurance policy that is designed to help secure our
family's financial needs. The plan does this by providing a lump sum to the family of the
life assured in case of death or critical illness (if option is chosen) of the life assured during
the term of the contract. One can choose the lump sum that would replace the income lost
to one's family in the unfortunate event of one's death.
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 Loan Cover Term Assurance Plan
 Home Loan Protection Plan

Investment Plans
HDFC Standard Life provides you with attractive long term returns through regular
bonuses.

Investment range includes:
 Single Premium Whole Of Life Plan
HDFC Single Premium Whole of Life Insurance Plan is a tailor-made planwell suited to
meet our long-term investment needs. This participating plan offers us the following
benefits:


Whole of life plan aimed at providing long-term real growth of your money.



Single premium investment plan.



In case of your unfortunate demise during the policy term, this participating (‘With
Profits’) insurance plan will pay your family the Sum Assured and compound
Reversionary Bonuses, which are usually added annually. An additional Terminal
Bonus may be paid depending on the performance of the underlying investments.



During Guaranteed Surrender Periods you get the Sum Assured and all bonuses
vested as at the date of surrender.

Pension Plans
Pension Plans help us to secure our financial independence even after retirement.

Pension range includes:
 Personal Pension Plan
HDFC Personal Pension Plan is an insurance policy that is designed to provide a post retirement income for life with the freedom to choose our retirement date. We can choose
our premium, the Sum Assured and our retirement date. At the end of the policy term, we
will receive the Sum Assured plus any attaching bonus, which will provide our post

21

retirement income. The HDFC Personal Pension Plan is an insurance policy, which can
benefit us in the following ways:
Provides a post retirement income in our golden years.



Gives us the flexibility to plan our retirement date.



Gives us tax benefits on our premiums.



The plan receives simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance
of the underlying investment.
 Unit Linked Pension
 Unit Linked Pension Plus

Savings Plans
HDFC Standard Life Savings Plans offer flexible options to build savings for our future
needs such as buying a dream home or fulfilling our children’s immediate and future
needs.

Savings range includes:
 Endowment Assurance Plan
The HDFC Endowment Assurance Plan gives us:


An ideal way to secure your long-term financial goals.


Valuable protection to your family by way of lump sum payment in case of your
unfortunate demise within policy term.



Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to
maturity date.



Very flexible benefit options and payment options.
In case of our unfortunate demise during the policy term, this participating ('With Profits')
insurance plan will pay our family the Sum Assured (together with the attached bonuses)
we had chosen.
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The plan receives simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance
of the underlying investment.
 Assurance Plan
 Savings Assurance Plan
 Children’s Plan
HDFC Children's Plan gives us:
 Invaluable financial support to our child.
 A choice to customize an ideal plan for our child.
 Multiple options for multiple benefits.
The HDFC Children's Plan is designed to secure our child's future by giving our child (the
beneficiary) a guaranteed lump sum, on maturity or in case of our unfortunate demise,
early in the policy term. The premiums, paid by us, are invested by the company to give
you good long-term returns.
The plan receives simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance
of the underlying investment.
 Money Back
 Unit Linked Endowment Suvidha
The HDFC Unit Linked Endowment Suvidha gives us:


An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments.



Valuable protection to your family in case you are not around.



Flexible premium payment options.



Access to your accumulated fund before maturity.



No need to go for medical. Just signing a “Declaration of Health” statement will do!
23

We can choose our premium and the investment fund or funds. They will then invest our
premium, net of premium allocation charges in our chosen funds in the proportion we
specify. At the end of the policy term, we will receive the accumulated value of our funds.
In case of our unfortunate demise during the policy term, they will pay the greater of our
Sum Assured (less any withdrawals we have made in the two years before our claim) and
our total fund value to our family.
Use HDFC Standard Life’s excellent investment options to maximize our savings & secure
our and our family’s future. They will provide financial security for our family in our
absence.
All Unit Linked Life Insurance plans are different from traditional insurance plans
and are subject to different risk factors.
 Unit Linked Endowment Suvidha Plus
 Unit Linked Endowment Plus II
 Unit Linked Young Star Suvidha
 Unit Linked Young Star Suvidha Plus
 Unit Linked Young Star Plus II
 Unit Linked Enhanced Life Protection II
 Simplilife
The HDFC SimpliLife gives:


Valuable protection to your family in case you are not around.



An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments.

One we have chosen our investment fund or funds, they will then invest our premium, net
of premium allocation charges in the proportion wespecify. At the end of the policy term of
15

years,

you

will

receive

the

accumulated

value

of

our

funds.

In case of your unfortunate demise during the policy term of 15 years, they will pay the
following to our family.
24



The Unit Fund Value.



Plus Sum Assured of Rs. 1 Lakh.

All Unit Linked Life insurance plans are different from traditional insurance plans
and are subject to different risk factors.

(2) GROUP PRODUCTS
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. HDFC Standard Life 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. They offer the following group products to our
esteemed corporate clients.
 Group Term Insurance
The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for
companies to reinforce their bond with their employees. The sort of needs, we, as an
employer need to cater to could be in form of:


Employee benefits.



Cover for housing or vehicle loans given by us to our employees.



A GTI cover for future service gratuity liability to be taken along with the HDFC
Group Unit Linked Plan.

The HDFC Group Term Insurance is a cost-effective plan that addresses these needs. In
addition we have the choice to opt for a GTI with an experience discount feature ("Profit
Share"), where a discount is given on future premiums in case of favorable claim
experience (subject to group size).
The HDFC group term insurance plan will have the following structure:


One year renewable term insurance plan.
25



One master policy issued covering all members of the group.



Sum assured is payable on death (either due to natural causes or accidents).

The plan covers death due to any cause; accidental or natural, and hence is more
comprehensive than Group Personal Accident Insurance. Several multinational
corporations, large Indian companies, foreign banks and software companies have already
chosen the HDFC Group Term Insurance, an innovative product from HDFC Standard Life
Insurance, to protect their employees.
Optional Rider Benefits:


Accidental Death Benefit.



Total Permanent Disability.



Total Permanent and Partial Disability Benefit.



Critical Illness Benefit.



Terminal Illness Benefit.
 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

(3) 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
26

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.

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:

27



Payment of premiums



Reporting of claims



Keeping policy holder information up to date

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 Rs.10 administration fee to their members.

Prohibition of rebates
Section 41 of the insurance act1938 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 as 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

COMPETITIVE STATUS
Amitabh Chaudhry is fresh from a meeting on technological transformation and is visibly
charged up. HDFC Life has recently committed to spending Rs 100 crore over the next five
years on customer relationship and knowledge management and the groundwork’s just
starting. It’s not the sum involved that’s got the insurance company’s managing director
and CEO so excited — although that’s pretty good, too — it’s the very fact that the
company is taking such key strategic decisions. For a company that got its insurance
28

license in 2000 and that has the backing of a giant like HDFC, the Mumbai-based private
insurer didn’t really live up to expectations. In just a few years, HDFC Life’s cautious and
ultra-conservative approach had pushed it to a rather unimpressive No. 5 slot in the private
life insurance space. “I think we lost the ability to take risks. If we got it right on putting in
place the right practices, the question relating to serving the customer was not always
answered,” says Chaudhry candidly.
About two years ago, HDFC Life finally woke up. One of Chaudhry’s first tasks after
taking over the company’s leadership in early 2010 was to chalk out a comprehensive
change in strategy. It was clear to him that while the company had a trusted brand legacy,
not enough action was taking place and change would have to happen all along the value
chain to get HDFC Life back on track.
And that’s exactly what he did, with impressive results, too. HDFC Life is a much stronger
No.2 player now, with a 13% share of the private life insurance market. The Porter Prize
jury was impressed with both the insight and its impact, pointing out that “the company
has taken significant initiatives to ensure that all its efforts are aligned towards a common
goal”, which made it a winner in the “Leveraging unique activities” category. Take a look
at how these efforts dovetailed.

Step by step
Chaudhry’s game plan centers on five simple steps. Trouble was, HDFC Life had got used
to a very narrow approach of doing business — it asked for endless, time-consuming
documentation, for instance, and was slow in expanding to new territories. So, while none
of the five measures was revolutionary, it wasn’t easy getting the organization to
implement them. Still, the company started off by changing its logo to get closer to parent
HDFC’s brand symbol. “This was important since we needed to extract the best value from
the HDFC brand,” Chaudhry explains. “I don’t think we are still doing enough of that.”

29

Meanwhile, the other measures were rolled out. The first was to expand distribution to new
markets, even as HDFC Life rationalized its existing branch network, weeding out
oversized and poorly located offices in a bid to become the least-cost service provider.
From 568 in FY10, its network came down to 483 in end FY12, even as it moved to new
locations like Nagaland. “These were not easy decisions, but they had to be done,” says
Chaudhry pragmatically.
Then came a variety of products aimed at differentiating the insurer in the market,
including unit-linked plans and a children’s plan, which Chaudhry says, is an attempt to
reach out to a new segment. The company’s recent products and ad campaign aimed at
women customers is part of the same plan but also fit in with the insurer’s desired
positioning as a long-term insurance player. The emphasis on customer experience was
also upped and the Rs 100 crore tech budgets are aimed at ensuring more focused selling
and follow-up.
The revised strategy has worked. HDFC Life was in the black for the first time in FY12
with a profit of Rs 270 crore on a total weighted received premium of Rs 3,084 crore
(weighted received premium is the total premium received with 10% weight age to total
single premium). New business WRP marketshare among private players, too, increased
from 8.7% in FY10 to 15.5% in FY11. The expense ratio, which was as high as 20.9% is
down to 11.5%. The impact also shows in HDFC Life’s ambitions — in five years, it wants
to be India’s largest private insurer. Easier said than done: insurance remains one of the
toughest industries, with intense competition coupled with a lack of volumes. That doesn’t
worry Chaudhry, though. “Ideally, we want to be spoken of in the same breath as Life
Insurance Corporation,” he says. Looks like he is really charged up to dream that big.

30

SWOT Analysis

Strength

1. Customized and Flexible Insurance Solutions and large product
portfolio
2. Robust Risk control Framework
3. Network of 500 branches and agents across 700 cities
4. Strong Financial Expertise and popular advertising
5. Globally, Standard Life plc has 1.5 million shareholders in
more than 50 countries and over 6 million customers
6. Alliance between HDFC and Standard Life giving a strong
brand backing

Weakness

1. Less penetration in rural areas
2. Controversies like job cuts, racism and data loss have affected
image

Opportunity

1. Growing rural market and better opportunities in the semiurban areas
2. Group Insurance through large employers

Threats

1. Economic instability and global crisis
2. Entry of new NBFCs in the sector

31

COMPANY JOURNEY

32

HDFC HOLDINGS

74% HDFC
Standard Life

80.5%
HDFC
Ventures

100%
HDFC
Properties

60% HDFC
Asset Mgt

HDFC
23.22%
HDFC Bank
23.27%
HDFC
Bank

33

THE TRAINING PROCESS:
ASSESSMENT PHASE
 Assess training need of different group of employee
 Define objectives

PLANING TRAINING
 Design training programme
 Define Methods, content of programme
 About trainer
 Place and time of training programme

CONDUCT OF TRAINING
EVALUATION
 Evaluation of training programme
 Check- objective are achieved?
Needs Assessment: Needs assessment diagnoses present and future challenges to be met
through training and development Needs assessment occurs at two levels- Group and
individual.
An Individual obviously needs training when her or his performance falls short of standars
i.e. when there is performance deficiency
Assessment of training needs occurs at the group level too. Any change in the
organization‘s
strategy necessitates training of group of employees.
Training Objectives:
To raise the productivity : Increased human performance often directly leads to increased
34

operational productivity and increased company profit.
To improve quality in work : Improvement in quality may be in relation to company‘s
product / service.
To improve health and safety : Proper training can help prevent industrial accidents.
Outdated prevention : Training and development programmes foster the initiative and
creativity of employees and help to prevent manpower obsolescence, which may be due to
age, temperament or motivation or the inability of a person to adapt himself to
technological
changes.
To improve organization climate: An endless chain of positive reactions results from a
well planned training programme. Production and product quality may improve , financial
incentives may then be increased, less supervisory pressure may result.
Personal growth: Management development programmes seem to give participants a wider
awareness , an enlarged skill, and enlightened altruistic philosophy, and make enhanced
personal growth.
SELECTION OF TRAINEES
Trainees should be selected on the basis of self-nomination, recommendations of
supervisors or by the HR department itself.
SELECTION OF TRAINERS
Training and development programmes may be conducted by several people, including
following
1. Immediate supervisors,
2. Co-worker,
3. Members of the personnel staff,
4. Socialists in other parts of the company,
5. Outside consultants,
6. Industry associations,
7. Faculty members at universities.
Large organizations

generally maintain their own training departments whose staff

conducts
35

the programmes.
TRAINING METHODS
On-the-job training: Almost every employee, from the clerk to company president gets
some ―on-the-job training ,when he joins a firm. Under this method, an employee is
placed in a new job and is told how it may be performed. It is primarily concerned with
developing is an employee skills and habits consistent with the existing practices of an
organization, and with orienting him to his immediate problems.
Vestibule training (training-centre training):

Vestibule training method attempts to

duplicate on-the-job situation in a company classroom. It is a classroom training which is
often imparted with the help of equipment and machines which are identical with those in
use in the place of work. This methods enables the trainee to concentrate on learning the
new skill rather than on performing an actual job. Theoretical training is given in the
classroom while the practical work is conducted on the production line. It is a very
efficient technique of training semi skilled personnel e.g. clerk, machine operation , testers,
typists etc. Training is in the form of lectures, conferences, case studies, role-playing and
discussion.
Demonstrations and examples : In the demonstration techniques, the trainer describes
and
displays. When he teaches an employee how to do something by actually performing
activities himself and by going through a step-by- explanation of ―why‖ and ―what‖ he
is doing. Demonstrations are effective techniques in teaching as it is easier to show a
person how to do a job then to tell him or ask him to gather instruction from the reading
material. Demonstrations are often used in combination with lectures, pictures, text
materials, discussions etc.
Simulation: Simulation is a technique which duplicates the actual condition encountered
on a job. Trainees‘ interest and employees‘ motivation are high in simulation exercises
because he actions of a trainee closely duplicate the ―real job‖ conditions. This method is

36

essential in cases in which actual on-the-job practice might result in a serious injury, a
costly errors. This technique is a very expensive one.
Apprenticeship: Apprenticeship training is the oldest and most commonly used methods.
It is a training in crafts, trades and in technical areas. A major part of training time is spent
on- the job production work
Classroom training:
a) Lectures: Simplest way of imparting knowledge to trainees is by lecture. Concepts or
principles, attitude, method can be useful when large group are to be taught. The lecture
method
can be useful when large groups are to be trained within a short time, thus reducing the
cost per trainee.
b) The Conference Method: In this technique, the participating individuals confer to
discuss points of common interest to each other. Conference is a formal meeting,
conducted
according to organized plan.
c) Seminar or team discussion : There are different methods of conducting seminar. It
may be based on paper prepared by one or more trainees on the subject in consulting with
the person in charge of the seminar.
d) Case studies : The person in charge of training make out a case,provides necessary
explainations, initiates the discussion going. When the trainees are given cases to analyse.
They are asked to identify the problem and recommend tentative solutions.
e) Role Playing : in role playing , trainees act out a given role as they would in a stage
play.It basically involves employee-employer relationships hirind, firing,interviews
disciplining etc.

37

f)Programmed instruction method : A programmed involves breaking instruction
information down into meaningful units and then arranging these in a proper way to form a
logical and sequential learning programme or package.

SCOPE & IMPORTANCE
Scope of Training & Development
Some of the specific reasons as to why a business should train its employees are:


Future needs of employees will be met through training and development
programmes. Organizations take fresh diploma holders or graduates as apprentices
or management trainees. They are absorbed after course completion.



Training serves as an effective source of recruitment.



Training is an investment in human recourses with a promise and it serves as an
effective source of recruitment.



Training is an investment in HR with a promise of better returns in future.



Training and development programmes, as pointed out, help remove performance
deficiencies in employees.



Introduce new employees to the business (this is known as “induction training”) –
see below



Help provide the skills the business needs (in particular making the workforce more
flexibleor being trained on new higher technology machinery)



Provide employees with better knowledge about the business and the market it
operates in



Provide support for jobs that are complex and for which the required skills and
knowledge are often changing (e.g. a firm of lawyers training staff about new
legislation)

38



Support the introduction of new working methods, such as a firm introducing new
lean production techniques



Reduce the need for supervision and therefore free up valuable manager time Help
achieve a good health and safety record Help improve quality of a product or
service and lower customer complaints

BRAND PERSONALITY
 HDFC Brand identity based on consumer perception and group aspiration.
 Knowledgeable of the latest business practices; has incorporated the best but
believes that ultimately successful business decisions are based on instincts rather
than logical processes.
 Values Indian traditional and rituals.
 HDFC is the quintessential Indian entrepreneur in touch with the global world.
 Constantly looking for new opportunities to grow business and make money.
 Believes in ‘no guts, no glory’.
 HDFC is seen as a leader in their field, not only in thoughts but also in their ability
to spot opportunities and build on them.

MAKING OF A BRAND
 Started operation in October 2000.
 Need for private players to establish brands.
 Need to create a brand platform that would be unique, relevant and emotionally
compelling.
 Based their brand positioning on providing financial freedom- “Sar utha kar jeo.”
39

 Expressed through all customer touch points – Ads/Merchandising/Corporate
Stationery etc.

KEY IMPERATIVES OF COMPANY
To be a top five player in this industry in this, HDFC Life Insurance need to increase
Distribution width and depth trough the country. Insurance is sold primarily through three
sales channels:
 Tied agency network: sales manager recruit and develop life advisers who in turn
prospects for customers and sell insurance. It is a tide agency, as these agents (life
advisers) are their exclusive sales agents .key to success of a tide agency is that
each sales manager has a large number (successful SMs) have a team of 8 to 10
contributing Las) OF LIFE ADVISERS who deliver 3-4 policies month on month
consistently.
 Alternate channel: sales mangers works with channel partners who can use their
channels sales force to sell insurance of their brand. Channel partners in alternate
channel can be either a corporate agency or a broker. A corporate agency will
always be exclusive for their brand and sell for their company. A broker will be a
multiband player and works for the benefit of the customer. Alternate channels
sales manager, apart from managing existing partners, identify new partners, built
relationships and use the channel sales force to increase sales from that channel.
 Group sales: sales mangers sell to corporate /institutions where a group of
homogeneous character can be covered under a single insurance policy. Typically
they work in the area of employee benefit programme .They sell products like
Superannuation, Gratuity, Group Life Covers , EDLI and group credit term

40

covers .Key difference from the first two channels is that this channel does not
insure individual lives but insures groups of people.

CHAPTER NO.2
LITERATURE REVIEW
Burnett and Palmer (1984) in the study examined various demographic and psychographic
characteristics in terms of how well they relate to differing levels of life insurance
ownership. Owners of large amounts of life insurance are better educated, have larger
families, have higher incomes, are no to pinion leader, are geographically stable, are
greater risk takers, are not price conscious, are not information seekers, are low in selfesteem, are not brand loyal and believe in community involvement but they do not rely
heavily on the government. They conducted extensive research using Multiple
Classification Analysis. Their study proved that demographic variables, as well as
psychographic variables, are important predictor variables
Truett and Truett (1990) showed that age, education, and level of income are factors that
affect the demand for life insurance, and that income elasticity of demand for life insurance
is much higher in Mexico than in the United States
Shotick and Showers (1994) examined the empirical literature on insurance demand by
examining the impact of selected economic and social factors on the purchase of insurance.
Although income and number of earners are both positively related to the demand for
insurance, the marginal effect from an increase in
income is greater for single earner households than for multi-earner households. Also, as
either family size or age increases, the marginal increase in insurance expenditure
diminishes. They examined that the size of the family and the number of earners in the

41

household are positively related with expenditures on insurance premium.They also tested
the curvilinear relationship between demand for life insurance and age
Jayakar (2003) in his study emphasized that new products innovation; distribution and
better use of technology are helping the new private life insurers to take market share away
from lic, an only company before liberalization of insurance industry. With the
privatization of insurance sector and with the entrance and cut throat competition with the
private sectors gaining an ever increasing edge over the public sector.
Athma. P and Kumar. R (2007) examined that the empirical based study conducted on 60
sample size comprising of both urban and rural market. The various product and nonproduct related factors have been identified and their impact on life insurance purchase
decision-making has been analyzed. Based on the survey analysis; urban market is more
influenced with product based factors like risk coverage, tax benefits, return etc. Whereas
rural population is influenced with non related product factors such as: credibility of agent,
company’s reputation, trust, customer services. Company goodwill and money back
guarantee attracts many people for life insurance.
Girish Kumar and Eldhose (2008): examined a comparative study of public and private
sectors", well explained the importance of quality services and its significance in raising
customer satisfaction level. A comparative study of public and private sectors help in
understanding the customer perception, satisfaction and awareness on various life
insurance services.
Praveen Kumar Tripathi (2008) conducted a research based study on buying pattern in the
insurance industry with a special focus on hdfc standard life insurance. The various
segments of the markets divided in terms of insurance needs, age groups, satisfaction
levels etc. were taken into account to know the customer perception and expectation from
private insurers
Narayan. H. Jai (2009), in an article has made an emphasis on importance of customer in
the business of insurance. He explained in phase of growing market competition, there is
an intense need to go beyond mere efficiency in designing products. To understand the
customer’s needs and to convey what they have to offer would perhaps bring in higher
efficiencies in customer service. Insurance business revolves around the customer and fair
treatment to customers is need of an hour to win their loyalty and trust. In a service based
42

organizations, customer service is the most dominating feature that differentiate and gives
good return to the insurers. Proper dealing with customer complaints, effective customer
grievances handling mechanism and fast claim settlement procedure are some of the ways
through which satisfaction level of customers can be increased. Hence to serve the
customers promptly and effectively is the key success of a life insurance business

CHAPTER NO.3
RESEARCH METHODOLOGY
RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.

TITLE OF THE STUDY
“A STUDY OF TRAINING NEED ASSESSMENT OF EMPLOYES AT
HDFC LIFE INSURANCE"

STATEMENT OF THE PROBLEM
This study was undertaken to identify how different factors influencing Investment
Behavior of Individual. A survey was undertaken to understand the preferences of Indian
consumers with respect to Investment in Insurance.

43

This research tries to analyze some key factors which influence the buying behavior of
individual in Life Insurance. Solutions and recommendations are made based on qualitative
and quantitative analysis of the data.

OBJECTIVES OF THE STUDY
 The main objective of this study is to know the employee opinion regarding the
training program.
 To find out what is the training needs in concern area.
 To find out the benefits of the training program to the employee and to the
organization.
 To find out what is the result for the organization because of giving the training to
the employee.

RESEARCH METHODOLOGY
TYPE OF DATA COLLECTED
There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary
data is data collected from indirect sources.

PRIMARY SOURCES
These include the survey or questionnaire method i.e. personal interview method of data
collection.
44

SECONDARY SOURCES
These include books, the internet, company brochures, product brochures, the company
website, etc.

SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe selected
for study.

SAMPLE SIZE
The sample size for the survey conducted was 100 respondents.

SAMPLING TECHNIQUE
Random sampling technique was used in the survey conducted.
PLAN OF ANALYSIS
Tables were used for the analysis of the collected data. The data is also neatly presented
with the help of statistical tools such as graphs and pie charts. Percentages have also been
used to represent data clearly and effectively.

STUDY AREA
The samples referred to were residing in Panipat.

45

CHAPTER - 4
Analysis and Interpretation
Q.1. Age and professional work experience in insurance.
AGE RANGE OF
RESPONDENTS
24-34 YEARS
35-45 YEARS
46-55 YEARS
56-65 YEARS

NUMBER OF
RESPONDENTS
6
20
10
7

PERCENTAGE OF
RESPONDENTS
12%
50%
25%
13%

INTERPRETATION:

46

Here we can see that 12% respondents are belong to 23-34 years age group, 50%
respondents are belong to 35-45 years age group, 25% respondents are belong to 46-55
years age group and 13% respondents are belong to 56-65 years age group.

Q2. Qualification
Number of respondents as per Qualification
Qualification
Higher Secondary
Graduate
Post Graduate
Others

No of respondents
3
43
50
4

INTERPRETATION:

47

From the above Pie chart out of 100 respondents only 3% of respondents are Higher
secondary. 43% of respondents are Graduates, 50% of respondents are Post graduates &
4% of respondents are others.

Q.3 Do you have any side business along with your occupation?

Options
Yes
No

No of respondents
45
55

INTERPRETATION:
From the above Pie chart out of 100 respondents 45 % of respondents have side business &
55% of respondents don’t have any side business.
48

49

Q4. Are you interested in Training Session?
Rating Scale
Yes
No

No. of Respondents
80%
20%

INTERPRETATION
This diagram show that 80 % of the total respondent’s interested in training and 20%
respondents are not interested.

Q5. Do you feel that training will helpful for individual growth?
50

Yes

NO
Rating scale
Yes
No

No of respondents
75
25

INTERPRETATION
This diagram show that 75 % of the total respondent’s feel that training will helpfull for
individual growth and 25% respondents are not satisfy.

Q6. Did you satisfy with training what company conducted here?
51

Yes

No
Rating scale
Yes
No

No of respondents
63
37

INTERPRETATION
This diagram show that 63% of the total respondent’s satisfied and 37% respondents are
not satisfy.

Q 7. Is there any improvement in performance after getting the training?
Yes

No

52

RATING SCALE
YES
NO

NO OF RESPONDENTS
92
08

INTERPRETATION
This diagram show that 92% of the total respondent’s satisfied and 08% respondents are
not satisfy.

Q 8. Do you satisfy with Training Procedure of Company.
Yes

No

53

RATING SCALE
YES
NO

NO OF RESPONDENTS
35
65

INTERPRETATION
This diagram show that 65% of the total respondent’s satisfied and 35% respondents are
not satisfy.

Q 9. Do you satisfy with Training Procedure of Company.
Yes

No
RATING SCALE

NO OF RESPONDENTS
54

YES
NO

35
65

INTERPRETATION
This diagram show that 65% of the total respondent’s satisfied and 35% respondents are
not satisfy.

Q 10.Who needs much knowledge regarding company and product?
Agents

Tele callers

Rating scale

Operations executives

All

No of respondents
55

Agents

40

Tele callers

45

Operation executives

10

All

05

INTERPRETATION
The diagram show that Agents & Tele Callers need much knowledge about company and
products.

FINDINGS


Trained employees can work more efficiently.



Training makes employees more loyal to an organization.



Training makes an employee more useful to a firm.
56



Training enables employees to secure promotions easily. They can realize their
career goals comfortably.



Employees can avoid mistakes on the job. They can handle jobs with confidence.
They will be more satisfied on their jobs.



Training can contribute to higher production and fewer mistakes, greater job
satisfaction and lower employee turnover. Also, it can enable employees to cope up
with organizational, social and technological change.

CONCLUSION
In this Knowledge-based economy, training helps people to learn how to do the
things differently or to the different things. Products are now increasingly knowledgeintensive; for this employers are responsible for providing opportunities for continued
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learning. To cope with the challenges and competitiveness in the world, every organization
needs the services of trained persons for performing the activities in the systemic way. So,
training program plays a key role in individual as well as organizational performance.

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SUGGESTIONS
 Create awareness: The Company has to take care of awareness creation about the
products and services among the Advisors/Agents
 Charges: The Company has to reduce the mortality and administration charges.
 The company has to give periodic training.
 Product promotion strategies should be improved.
 Company should consider the present competition and should act according to the
customer needs.
 It Should be like long term training like Fundamental Carrier class , Basic Carrier
class which helps the advisors in different stages.

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LIMITATIONS
1. The survey was conducted with in the company.
2. And in survey I have to interact with the employees. But the employees will be busy
their works.
3. Getting the good response from the employee will be difficult because of their busy
schedule.
4. Time to interact with employees inside the branch is not sufficient.
5. Time Period of my OJT is one of the limitations.
6. sample size was only restricted to 100.
7. projection regarding environmental and political basis can be change.

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BIBLIOGRAPHY
1) Lynton, R.P. and Pareek, U. “Training for development”, 2 nd Ed., New Delhi:
Vistaar publication, 2002.
2) Bhatnagar, O.P. “Evaluation methodology for training”, New Delhi: Oxford and
IBH publishing co.pvt.ltd.
3) Rae, L. “The art of training and development, effective planning”. Vol. 1, New
Delhi.
4) Tannenbaum, S. “A strategic view of organizational training and learning”.
5) A hand book of human resource management practice, 8th ed., 2001.
6) Personnel management, Mc. Graw Hill, 6th ed., 1981.
7) www.maxnewyorklife.com
Websites

www.rbi.org.in
www.irdaindia.org
www.hdfcinsurance.com
www.businessworldonline.com
www.google.com (search engine)
www.irda.gov.in

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