A REPORT

ON
PERCEPTION OF SALARIED PEOPLE TOWARDS

PENSION PLANS

SUBMITTED BY
PROF. ASHISH KANJARIA
(MBA Sem-IV)

Guided by
PROF. VIJAY VYAS

ACADEMIC YEAR
2008-2009

SUBMITTED TO
KNV INSTITUTE OF
BUSINESS MANAGEMENT

AFFILIATED TO
SAURASHTRA UNIVERSITY
RAJKOT
 CERTIFICATE

This is to certify that Ms. ASHA KAPOOR has completed his project study
as a partial fulfillment of MBA program satisfactorily.

The student has shown immense interest in the subject and the study was
carried out with total devotion.

Mr. Vijay H. Vyas

Project Guide (Dy. Director)
PROF. ASHISH KANJARIA
 DECLARATION

I undersigned [Link] a student of MBA 3 rd semester declare that I

have prepared this project report on PERCEPTION OF ORGANISATIONAL
STUDY OF HDFC Standard Life Insurance Company (SLIC) under Pro.
[Link] Kanjaria.

I also declare that this project report is my own preparation and not copied
from anywhere else.

(Signature)

___________
Student's Name: [Link]

Roll No.: 19

(Note: - This declaration is to be signed by student)

 ACKNOWLEDGEMENT

To dear God, whose extreme blessings and divine presence helps us to

fulfill all our goals.

When emotions are profound words sometimes are not sufficient to

express our thanks and gratitude. With this few words, I am trying to express my
extreme gratitude and sincere thanks to all those people who have helped and
provided the very much needed enthusiasm and consistent encouragement
required to convert this idea in my dream into project.

I will always remain grateful and obliged to Prof. Vijay Vyas –JVIMS,
Jamnagar for his never ending inspiration, meticulous guidance,

I would also like to express my gratitude to [Link] Kanjaria for his

practical guidance and consistent support in making this project.

The last but not least I gratefully acknowledge all my friends and relatives
for their physical presence and sentimental support.

[Link]
 PREFACE

It is very right that I as a student have subjected to know the theoretical

aspects of every subject but in real life there are practical experience which

counts. So to fulfill gap of the knowledge, practical knowledge is very essential

than only subject can be thoroughly understood

As per curriculum of M.B.A according to Saurashtra University project

report is the part of subject management & entrepreneurship development.

Objective behind preparation of this report is to develop our skills towards

information related to Management of human resources from inception till the

end about the job satisfaction in the corporate sector.

According to me, these type of training shows the actual path before one

step toward it. Because it has been said “well began is half done” and for us it

was perfect beginning.

 CONTENTS
Table no. 1

Sr. Particulars Page

No no

1 Executive Summary 776

2 Introduction
(a) Company Details 2
(b) Industry Details 17
(c) Competitors details 21
(d) Regulatory Environment details
3 Organizational Study 34
a) Marketing Department study 35
b) Operations Department Study 62
c) Financial Department Study 64
d) Human Resource Department Study 73
4 Research 78
a) Research Objectives
b) Research Methodology
1) Research Design
2) Unit of Analysis
3) Sampling Design
4) Data Collection Methods)
5) Data Analysis
c) Data Analysis & Findings 80
d) Conclusions 90
e) Limitations of the Study 91
f) Recommendations 92
g) Appendixes:
(1) Questionnaire
(2) Forms
(3) List of Graphs
(4) List of Tables
(5) Glossary
5 Bibliography 105
 EXECUTIVE SUMMARY

I have taken training in Baroda dairy. As per my view it is working superbly.

I have gone deep in the study of the organization; every department of the
company is working very effectively.

Baroda dairy is having financial background from Nation anal Dairy development
board. The bank gives totally financial support. Every financial transaction carried
out by the effective way so company does not face any problem related with the
finance. Marketing department is now in a progress some advertisement also
released recently before that this type of activity was not carried out.

Operation department and HR department both are working effectively.

Human Resource is taken care most in the organization.
 Definition Of Life Insurance

According to the US Life Office Management Association Incorporation (LOMA),

life insurance is defined as follows:

“Life insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect.”

In other words, surely this is far too brief an explanation for a financial service
that provides a very sophisticated range of savings and investment products, as
well as mere compensation for death.

Other Definitions:

“Life insurance is a plan by themselves which large number of people

associate and transfer to the shoulders of all, risks that attach to
individuals.”
- John Magee

“Life insurance accumulated contributions of all parties participating in the

scheme.”
- [Link]

“Life insurance is a contract in which a sum of money is paid to the

assured as consideration of insurer’s incurring the risk of paying a large
sum upon a given contingency.”
- Justice Tindall
A) COMPANY DETAILS
1. HDFC STANDARD LIFE INSURANCE
2. INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY
LIMITED
3. HDFC STANDARD LIFE TO BE FIRST LIFE INSURANCE COMPANY IN
PRIVATE SECTOR
4. HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
5. COLLOBORATION OF HDFC AND STANDARD LIFE
6. MISSION OF HDFC STANDARD LIFE INSURANCE
7. VALUES OF HDFC STANDARD LIFE INSURANCE
8. HDFC STANDARD LIFE DECLARES RESULTS FOR FY 2004-05
9. NATIONAL LEVEL HIERARCHY
10. BRANCH LEVEL HIERARCHY
11. SWOT ANALYSIS
12. FUTURE PLAN
1) HDFC STANDARD LIFE INSURANCE:

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.
2) INCORPORATION OF HDFC 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 realized 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 companies in India are measured.
3) HDFC STANDARD LIFE TO BE THE FIRST LIFE INSURANCE COMPANY
IN PRIVATE SECTOR

Our Economic Bureau

New Delhi, Oct 23: The Housing Development Finance Corporation has
received a new lease of life. The Insurance Regulatory and Development
Authority (IRDA) has granted registration to HDFC Standard Life Insurance, as
the first private sector life insurance company in India. Reliance Fire and General
Insurance and Royal Sundaram Alliance Insurance have been given certificates
of registration for underwriting non-life insurance business in the country.

The IRDA board, which met here on Monday under the chairmanship of NI
Rangachari, has decided to grant licenses to these three companies under Sec 3
of the Insurance Act 1938.

The IRDA board also considered the applications of ICICI Prudential Life
Insurance Company, Iffco Tokyo Marine Insurance and Max India New York Life
Insurance and decided to grant in-principle registration to these companies.

However, these three will be required to furnish more details about their
respective financial strengths and business plans to the IRDA before getting
registration. Talking to The Financial Express, HDFC chairman Deepak Parekh
said the joint venture would have a total equity of Rs 168 crore. HDFC would
hold 81.4 per cent of the equity and foreign partner Standard Life would
contribute the remaining 18.6 per cent.

The HDFC Standard Life proposes to go in for what is described as a "soft

launch" in December 2000 and officially open the business in January 2001 with
offices in 12 cities.
 Expressing delight at being awarded an operating license, Royal
Sundaram Alliance Insurance chairman GK Raman said: "We will serve the
Indian consumers with a portfolio of insurance products suited to their interests.
Service and customization will be the defining features of our new venture." Mr.
Micky Brigg, managing director of the joint venture company, said: "India is a
high priority on Royal Sun Alliance Group's strategic business map. We will
support the Indian venture with world-class underwriting, risk management and
claim-handling techniques."
4) HDFC STANDARD LIFE INSURANCE COMPANY

HDFC Standard Life Insurance Company Limited is the First Private

Sector Life Insurance Company to be granted a license by the IRDA. As a part of
the ongoing liberalization of the Insurance Sector, the Insurance Regulatory and
Development Authority (IRDA) has granted the first set of licenses on 23rd Oct
00.

The Company is a joint venture with Standard Life, UK. Founded in 1825,
Standard Life has been at the forefront of the UK insurance industry for 175
years by combining sound financial judgment with integrity and reliability. It is the
Largest Mutual Life company in Europe and has total assets of Rs.5, 50,000
crore.

Standard Life is one of the insurance companies in the world to have

received 'AAA' rating from two of the leading international credit rating agencies,
Moody's and Standard & Poor's. The Independent Brokers called IFAs recently
voted ‘Company of the Decade’ standard Life in U.K.

Number of branches:

United kingdom 31 branches

Canada 11 branches

Ireland 7 branches

Spain 31 branches

Germany 1 branches

Austria 2 sales office

Hong Kong 3 representative office

China 2 representative office

5) COLLOBORATION DETAIL

HDFC SLIC is a joint venture between Housing development Finance

Corporation limited, India and standard life assurance Company, UK.

In 1995, HDFC LIMITED and standard life assurance Company entered

into a joint venture relationship. Values were shared, beliefs merged through the
hurdle-race of time, and the two partners stood by each other. And emerged at
the forefront. On 23rd October 2000, HDFC SLIC limited was the first private life
insurance company to be granted the certificate of registration by the IRDA.

HDFC and standard life are companies with tremendous financial strength
as endorsed by credit rating agencies. Both enjoy an excellent reputation in
terms of goodwill and efficient customer service.

Certificate of registration : 23rd October 2000 by IRDA

Discussion started with SL : 1995, January
Joint venture agreement between
HDFC and SL : 1995, October
Company officially incorporated : 14th August 2000
Share of HDFC in equity : 81.4%
Share of SL in equity : 18.6%
First policy : 2000, DecemberHDFC
 6) MISSION OF HDFC STANDARD LIFE INSURANCE:

We aim 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
 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
7)VALUES OF HDFC STANDARD LIFE INSURANCE:

 SECURITY: Providing long term financial security to our policy

holders will be our constant endeavor. We will be do this by offering
life insurance and pension products.

 TRUST: We appreciate the trust placed by our policyholders in us.

Hence, we will aim to manage their investments very carefully and
live up to this trust.

 INNOVATION: Recognizing the different needs of our customers,

we will be offering a range of innovative products to meet these
needs.

Our mission is to be the best new life insurance company in India and
these are the values that will guide us in this.
8) HDFC STANDARD LIFE DECLARES RESULTS FOR FY 2004-05

Premium Income grows by 132%

HDFC Standard Life Insurance Company Limited declared its annual

results for the financial year ending March 31st, 2005. The company generated
New Business Premium Income of Rs. 486 Crore in 2004-05 registering a year-
on-year growth of 132%. The growth was primarily driven by the success of the
company's initiative on structured sales processes based on customer needs and
their assessments.

Mr. Deepak Satwalekar, Managing Director & CEO, and HDFC Standard
Life attributed this growth to the quality of life insurance solutions offered by the
company. Speaking on the occasion he said, "We are equipped to offer some of
the best solutions to our customers given our wide range of products and the
quality of advice offered by our Financial Consultants and Corporate Consultants.
Training was one of the biggest initiatives we had undertaken last year. Clearly,
this initiative has started giving us good results."

Highlights of Financial Year 2004-05

 New Business Premium Income up by 132% to Rs. 486 Crores. Total

Premium Income of Rs.687 Crores as against Rs. 298 Crores in FY 03-04.

 Alternate Channels including bancassurance have recorded an impressive

growth of over 400% to contribute 37% to the Effective Premium Income
(EPI).

 Group business increased to Rs. 32 Crores on EPI basis.

 The average premium doubled to Rs 17,000

 Company products and services available in 444 locations across the

country.

 Over 220% increase in MDRT numbers over the previous year.

 HDFC Standard Life tracks its New Business Premium on the basis of
Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to
a Single Premium policy and is an internationally accepted indicator of an
insurance company's performance. While the company recorded New Business
Premium Income of Rs. 486 Crores, the EPI figure was lower at Rs. 436 Crores.
The total premium income (including renewal premium) grew by 130% to touch a
figure of Rs. 687 Crores. High levels of persistency have resulted in a higher
level of renewal premiums. High persistency is an important contributor to future
profitability. The cumulative sum assured for all policies issued up to March 31,
2005 crossed Rs. 30,000 Crores.

In the first full year of offering unit linked products, the structured sales
process adopted by the company has paid rich dividends. HDFC Standard Life
offers, both, life insurance policies as well as pension products on a unit linked
platform. Unit linked products accounted for over 50% of the new business
premium. Given the nature of the unit linked product, the company provided
specialized training to a limited number of its Financial Consultants who were
then tested for their understanding of the products and separately licensed.
HDFC Standard Life is unique in stipulating this requirement for its sales force.

The company's national relationships with HDFC Limited, HDFC Bank,

Union Bank of India, Indian Bank and Saraswat Bank have also helped it reach
out to a larger number of customers across the country. The alternate channel
business grew by over 400% to contribute 37% of the premium income. The
company plans to further strengthen these relationships through the introduction
of products specially designed for this channel.

HDFC Standard Life continues to have one of the widest reaches among new
insurance companies. The company doubled the number of offices to 104 across
the country. Through these offices, the company today services customer needs
in over 440 towns. The company also increased its depth in existing markets by
increasing its Financial Consultant strength from 17,000 as on 31st March 2004
to over 23,000 as on 31st March 2005. There has been a huge jump, of over
220%, in the number of its Financial Consultants who have qualified to become
members of the prestigious Million Dollar Round Table (MDRT). From 38
members as on 31st December 2003, the number has increased to 124
members as on 31st December 2004.
During the year, the company expanded its portfolio of products by
launching plans to cover Superannuating and Leave Encashment needs, thereby
offering a wide range of employee benefit solutions to its corporate clients.
Consequently, HDFC Standard Life's Group Business saw a huge growth over
the previous financial year. The New Business Premium grew to Rs. 49 Crore to
cover over 200,000 lives for a sum assured of over Rs.10,000 Crores.

Given its parentage and its financial expertise, the company is confident of
offering good long-term returns to its policyholders. Speaking on this Mr.
Satwalekar said, "Our investment philosophy and cost consciousness together
will help us in providing good long term growth to policyholders on their
investments with us. This is evident in the performance of our equity based unit
linked funds which have outperformed most indices over the last one year".
9) NATIONAL LEVEL HIERARCHY OF THE ORGANIZATION

Managing director

General Manager Sales & customer services

_______________________________________

Head of group sales central

Retail sales distribution

Branch manager sales remuneration

Contract licenser

__________________________________

Representative office BDM corporate sales training

Resident manager agent
Team of
FC Sales management
Information
10) BRANCH HIERARCHY

REGIONAL MANAGER

ASSISTANT SALES MANAGER

BUSINESS DEVELOPMENT MANAGER

SALES DEVELOPMENT MANAGER

FINANCIAL CONSULTANT
11) SWOT ANALYSIS

 SRENGTH

 HDFC Standard LIFE insurance Company (HDFC SLIC) is having a good

market reputation
 HDFC SLIC believe to do business by the ethical way
 Service of the HDFC SLIC is excellent.
 Stable and experienced management
 HDFC SLIC’S main strength is depending upon financial consultant.
 Asset base of Rs. 27,000 crores which indicates high financial strength
 Strength of foreign partner which has total asset of Rs. 5, 81,000 crores
 Deposits and bonds are ‘AAA” rated by Standard and Poor’s, FAAA and
MAAA by CRISIL and ICRA.

 WEAKNESS

 Need identification of the customer took a back seat and this, in turn, is
largely responsible for the high lapsation ratio.
 One issue that is being hotly debated presently is whether we should go
for total detarrification or not.
 The tendency not to Share information or data’s to other insurers in one
company as data plays major role in the insurance business.
 HDFC SLIC have been spending very less in advertising. Recently they
have released advertisements but still it is not enough.
 HDFC SLIC does not have enough branches in rural market. Large part
of rural market is untouched.
 OPPORTUNITY

 HDFC SLIC can open branches in the small cities also.

 HDFC SLIC can expand more and more branches in the rural sector.
 HDFC SLIC has been doing business since last five years still they have
so many opportunities to expand business.
 There is a golden opportunity for the HDFC SLIC if it uses its brand name
effectively and advertises it effectively.
 Opportunity to capture more market share if it increases its strength of
financial consultant.

 THREAT

 From the other private players.

 Large distribution network of LIC

 Decades of experience and brand name of LIC

 12 % service tax on investment

12) FUTURE PLAN

HDFC Standard Life Insurance has been doing business since last five
years because before that any private companies were not allowed to do
business of insurance. Company has been continuously trying to increase
workforce and number of branches. Company has doubled number of branches
it is about 104 in the country and also increased number of financial consultants
it is about 23000 in 2005 compare to 17000 in 2004. Future plan of the company
is still to increase workforce and number of branches in all over India. Today
company provides services in about 440 towns.

For future company has plan

 To increase more products in its portfolio
 To increase more benefits for its financial consultants and customers
 To capture more market
 BOARD OF DIRECTORS

HDFC standard life insurance company limited

Chairman Mr. Deepak Parekh

Directors Mr. I.c. lumsden
Mr. [Link]
Mr. [Link]
Mr. [Link]
Mr. A.R. Forbes
Mr. [Link]
Alternate to Mr. I.c. lumsden
Mr. [Link]
Alternate to Mr. A.m. crombie

Managing director and CEO Mr. [Link]

Author’s Mr. [Link] and company

Chartered accountants
Mr. B.k kher & company
Chartered accountants

Bankers HDFC bank ltd.

Registered office Ramon house,

[Link] marg,
169, Back Bay
Reciamation,
Church gate
Mumbai 400 020
Corporate office The IL&FS financial centre
5th floor, plot no. c-22, g block
Bandra kurla complex,
Bandra (e), Mumbai
400 051.
Tele no. 2653 3666
Fax. 22-2653 3655

E-mail response@[Link]
Internet www [Link]
(B) INDUSTRY PROFILE

Insurance constitutes one of the major segments of the financial market.

Insurance services play predominant role in the process of financial intermediary.
Today insurance industry is one of the most growing sectors in India. There is lot
of potential in the Indian Insurance Industry.

There are many issues, which require study. The scope of the study of
insurance industry of India would be very great as there are ongoing
developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct Investment)
limit from 26% to 49% in the insurance sector. Government may in near future
allow 49% FDI in Insurance. This would lead to more capital inflow by foreign
partners.

Another major issue is the effects on LIC after the entry of private players
in the market. Though market share of LIC has been affected, it has improved in
terms of efficiency.

There are number of other hot topics like penetration of Health Insurance,
Rural marketing of insurance, new distribution channels, new product ranges,
insurance brokers’ regulation, incentive scheme of development officers of LIC
etc. So it offers lot of scope for studying the insurance industry.

Right now the insurance industry has great opportunities in a country like
India or China which huge population. Also the penetration of insurance in India
is very low in both life and non-life segment so there is lot potential to be tapped.
Before starting the discussion on insurance industry and related issues, we have
to start with the basics of insurance. So first we understand what is insurance?
How the word ‘insurance’ is different from the word ‘assurance’? etc.
History of Insurance

 The roots of insurance might be traced to Babylonian and that is only for
goods.
 In the middle of 14th century as evidenced by earliest known insurance
contract, marine insurance was practically universal among maritime
nations of Europe.
 By the end of the 18th century, Lloyd’s coffeehouse, in London, had
progressed into one of the first modern insurance companies.
 Insurance developed rapidly with the growth of British commerce in the
17th and 18th century.
 After 1840, with the decline of religious prejudice against the practice, life
insurance entered a boom period. In the 1830s the practice of classifying
risk began.
 The workman’s compensation act of 1897 in Britain requires employers to
insure their employees against industrial accidents.
Time line in insurance history

Major Landmarks

 1818 British introduced the life insurance to India with the

establishment of the Oriental Life Insurance Company in Calcutta.

 1850 Non life insurance started with Triton Insurance

Company.

 1870 Bombay Mutual Life Assurance Society is the first India

Owned life insurer.

 1912 The Indian Life Assurance Company Act enacted to regulate the
Life Insurance Business.

 1938 The Insurance Act was enacted. Nationalization took place.

Government took over 245 Indian and foreign insurers and
provident societies.

 1972 Non-life business nationalized, General Insurance

Corporation (GIC) came into being.

 1993 Malhotra committee was constituted under the

Chairmanship of former RBI chief R. N. Malhotra to draw
a blue print for insurance sector reforms.

 1994 Malhotra committee recommended reentry of private

Players.

 1997 IRDA (Insurance Regulatory and Development

Authority) was set up as a regulator of the insurance.
 Market in India.

 2000 IRDA started giving license to private insurers. ICICI

Prudential, HDFC were first private players to sell
Insurance Policies.

 2001 Royal Sundaram was the first non-life private player to

Sell an insurance policy.

 2002 Bank allowed to sell insurance plans as TPAs enter the

scene, insurers start setting non-life claims in the cashless mode.
(C) COMPETITORS DETAIL

At present there are total 14 players in Indian life insurance sector.

There is only one player in the government sector and it is the Life Insurance
Corporation of India. Rest of the players is in the private.

Now let’s look at these players and their market share

TABLE NO.2
No. Name of the Company Market
Share in
%
1 Life Insurance Corporation (PSU) 82.30
2 ICICI Prudential Life Insurance Company 5.63
3 Birla Sunlife Insurance Company 2.56
4 Bajaj Allianz Life Insurance Company 2.03
5 SBI Life Insurance Company 1.80
6 HDFC Standard Life Insurance Company 1.36
7 Tata AIG 1.29
8 Max New York Life Insurance Company 0.90
9 Aviva 0,79
10 Kotak Mahindra Life Insurance Company 0.51
11 ING Vysya 0.37
12 AMP Sanmar 0.26
13 Met Life Insurance Compnay 0.21
14 Guardian Life Insurance Co Ltd.
Now let’s depict the market share of these players on diagram

Table -1: insurers as on 31-3-2003

Company Foreign Major local Business of local
shareholder shareholder shareholder
Allianz Bajaj life Allianz Bajaj Auto Auto manufacturer
Birla sun life Sun life of Canada Birla global Diversified
finance conglomerate
Dabur CGU CGNU Dabur Medical &
consumer
products
HDFC standard Standard life HDFC Investment &
life finance
ICICI Prudential Prudential(UK) ICICI Investment &
life finance
ING Vysya life ING Vysya bank Bank & other
investors
Max New York New York Life Max India Diversified
Life conglomerate
MetLife India MetLife Jammu & Kashmir Bank & diversified
bank: Pallonji conglomerate
group
OM Kotak Old Mutual Kotak Mahindra Investment &
Mahindra finance
SBI Life Cardiff SBI Bank
TATA-AIG Life AIG TATA Diversified cong.
Source: The Hindu survey of the Indian industry, 2003
Graph No.1 MARKET SHARE OF THE COMPETITORS

Here we can see from the diagram that LIC is the market leader and it
commands the major part of the total life insurance market. Its market share was
approximately 98% before 2000 but after the entry of private players it has
significantly decreased.

Among private players ICICI Prudential stands first. It has the market
share of approximately 5.7% in the total market and it constitutes 40% of the
market share among private players.

Birla Sun life Insurance Company comes third. Bajaj Allianz is also one of
the fastest growing life insurance companies in India.

Rest of the players has market share below 2%.

LIFE INSURANCE CORPORATION

The Life Insurance Corporation (LIC) was established about 44 years ago
with a view to provide an insurance cover against various risks in life. A monolith
then, the corporation, enjoyed a monopoly status and became synonymous with
life insurance.

Its main asset is its staff strength of 1.24 lakh employees and 2,048
branches and over six-lakh agency force.

LIC has hundred divisional offices and has established extensive training
facilities at all levels. At the apex, is the Management Development Institute,
seven Zonal Training Centres and 35 Sales Training Centres.

At the industry level, along with the Government and the GIC, it has
helped establish the National Insurance Academy. It presently transacts
individual life insurance businesses, group insurance businesses, social security
schemes and pensions, grants housing loans through its subsidiary; and markets
savings and investment products through its mutual fund. It pays off about Rs
6,000 crore annually to 5.6 million policyholders.

BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Company Limited, a joint venture between Sun
Life Assurance Company of Canada and Aditya Birla Management Corporation
Limited, recently completed a successful first year of operations. The company
emerged as a strong private sector insurance player in the newly opened
insurance market in India with its pioneering efforts in the area of Unit Linked
insurance plans. The company sold over 20,000 policies covering more than
33,000 lives in its first year of operations. It achieved an annualised premium
income of Rs.350 million with a total sum assured of Rs.16,000 million.

The company has more than 2,700 insurance advisors who sell company
products across the country. The company offers an array of products in the
individual and group life segments.

The company established a strong presence in India with 22 branches and

two development centres across 17 cities.

ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, a premier financial powerhouse and prudential plc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).

ICICI Prudential equity base stands at Rs. 9.25 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the financial year
ended March 31, 2005, the company garnered Rs 1584 crore of new business
premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000
policies. The company has a network of about 56,000 advisors; as well as 7
bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country,
with a wide range of flexible products that meet the needs of the Indian customer
at every step in life.

Bajaj Allianz Life Insurance Company

Bajaj Allianz General Insurance a joint venture non-life company promoted

jointly by Bajaj Auto and the German insurer- Allianz. Indian auto major holds
74% while Allainz holds 26% in the Joint Venture, and has an authorized and
paid up capital of Rs. 110 crores. Mr. Graham Norris is the CEO of the company.
Bajaj Allianz General Insurance will leverage the customer base and expertise of
Bajaj Auto Ltd and Allianz AG
Incorporated in September 2000, Bajaj Allianz General Insurance received the
certificate of registration from Insurance Regulatory and Development Authority
in May 2001.

SBI Life Insurance Company

SBI Life Insurance Co. Ltd. is a registed Life Insurance Company which has
been licenced by Insurance Regulatory and Development Authority of India. It
belongs to State Bank of India (SBI) group.
State Bank of India has joined hands with Cardif of France to form a Life
Insurance Company:
SBI - The Largest bank in India
Cardif - A wholly owned subsidiary of BNP PARIBAS (one of the top 10 banks in
the world), is a leading Insurance Company in France operating in 27 countries
all over the world.

Tata AIG

Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance
Company Ltd. (collectively "Tata AIG") are joint venture companies, formed from
the Tata Group and American International Group, Inc. (AIG). Tata AIG combines
the strength and integrity of the Tata Group with AIG's international expertise and
financial strength. The Tata Group holds 74 per cent stake in the two insurance
ventures while AIG holds the balance 26 per cent stake

Tata AIG Life Insurance Company Ltd. provides insurance solutions to

individuals and corporates. Tata AIG Life Insurance Company was licensed to
operate in India on February 12, 2001 and started operations on April 1, 2001.
Tata AIG Life offers a broad array of life insurance coverage to both individuals
and groups, with various types of add-ons and options available on basic life
products to give consumers flexibility and choice

The non-life insurance arm, Tata AIG General Insurance Company, which started
its operations in India on January 22, 2001 offers the complete range of
insurance for automobile, home, personal accident, travel, energy, marine,
property and casualty, as well as several specialized financial lines.

ING Vysya

ING Vysya (a group terminology) has 3 businesses in India, ING Vysya

Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is
a premier private sector bank with a 70-year heritage and 1.5 million satisfied
customers. ING Vysya Mutual Fund is a mid sized asset management company
with a retail investor focus.

Kotak Mahindra Life Insurance Company

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between
Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At Kotak Life Insurance,
we aim to help customers take important financial decisions at every stage in life
by offering them a wide range of innovative life insurance products, to make them
financially independent. Jeene Ki Azaadi...

AMP Sanmar
A Joint venture combining AMP's life Insurance expertise and Sanmar's
Indian Business Expertise.

The Life Insurance joint venture company between AMP of Australia and
the Sanmar Group of Chennai will create a better future for you and your family,
by helping you build and manage your wealth.

AMP Sanmar offers a comprehensive range of life insurance Products

that will enhance your savings and provide financial security to people who need
your support. AMP is a leading international financial services group with over
150 years with core business in Insurance, Asset Management and Financial
Planning.

The Sanmar Group is a leading industrial group in South India and one of
the top corporations in the country that helped pioneer industrialization in India
for over six decades. Both AMP and Sanmar are deeply committed to this Life
Insurance joint venture and to create a long-term relationship with the customer

Aviva Life Insurance Company India Pvt. Ltd.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and
largest Group of companies. A professionally managed company, Dabur is the
country's leading producer of traditional healthcare products.

Aviva pioneered the concept of Bancassurance in India, and has leveraged

its global expertise in Bancassurance successfully in India. Currently, Aviva has
Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara
Bank, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank.

Aviva has 34 Branches (including rural branches) in India supporting its

distribution network. Through its Branches and its Bancassurance partner
locations, Aviva products are available in 165 towns and cities across India.
Aviva has also opened four rural branches in Faridkot, Udaipur, Nasik and
Nagpur.
Max New York Life Insurance

Max New York Life Insurance Company Limited is a joint venture

between Max India Limited, a multi-business corporation focusing on life
insurance, health care and information technology, and New York Life, a Fortune
100 company with over 150 years of experience in the life insurance business.

In 2000, Max New York Life became the first Indo-American insurance
joint venture registered and granted a license to conduct business in India. Since
that time, Max New York Life has acquired a national presence, establishing a
wide distribution network with 35 offices located across 27 cities in India, which
are staffed by over 1,500 employees and over 7,700 highly competent life
insurance Agent Advisors.

In 2003, Max New York Life became the first life insurance company in
India to receive the ISO 9001:9002 certification for its commitment to quality. All
of Max New York Life’s offices are supported by state-of-the-art technology
designed to enhance its goal of providing excellent service to customers. It has
also set up a Centre for Operational Excellence at its head office in Gurgaon,
Haryana, just outside of New Delhi.
(D) REGULATORY ENVIRONMENT DETAILS

REGULATORY FRAMEWORK (INSURANCE ACT & IRDA)

Insurance Act, 1938

The Insurance Act was enacted in 1938 with a view to control the
insurance market in India. The Insurance Act provides major guidelines to
insurance companies to do insurance business.

The Insurance Act prescribes rules for Assignment or transfer of policies

and nominations, commission and rebates and licensing for agents,
amalgamation or transfer of insurance business, setting up of the Tariff Advisory
Committee, solvency margins, insurance cooperative societies, reinsurance,
registration etc.

The Insurance Act, 1938 allows for only Indian Insurance companies
registered under the Companies Act, to transact insurance business in India

Amendment in 2001
For smooth functioning of the market, certain amendments were made in
the Act. The amendments contain entry of insurance co-operative societies,
provisions relating to payment of commission and fee for insurance
intermediaries, allowing flexibility in the eligibility qualifications for corporate
agents., allowing a more flexible mode of payment of premium through credit
cards, smart cards, internet, etc.
Insurance Regulatory and Development Authority
(IRDA)
The Insurance Regulatory and Development Authority (IRDA) was
constituted as an autonomous body to regulate and develop the business of
insurance and re-insurance in India. The Authority was constituted on April 19,
2000; vide Government of India’s notification No. 277.

The Insurance Regulatory and Development Authority Act, 1999, was

enacted by Parliament in the fiftieth year of the Republic of India to provide for
the establishment of an Authority to protect the interests of holders of insurance
policies, to regulate, promote and ensure orderly growth of the insurance industry
and for matters connected therewith or incidental thereto and further to amend
the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the
General Insurance Business Act, 1972. IRDA was constituted in terms of the
Insurance Regulatory and Development Authority Act, 1999, as the regulator of
the Indian Insurance industry.

IRDA was setup in 1996 but it was formally constituted as a regulator of

the insurance industry in April 2000. The regulator was initially known as the
Insurance Regulatory Authority but was subsequently rechristened as Insurance
Regulatory and Development Authority as it was provided that it had broader role
to perform in the Indian insurance market. It has not only to frame and issue
statutory and regulatory stipulations, guidelines, and clarification but it has also to
perform a developmental and promotional role. The developmental and
promotional role of the regulator include facilitating the growth of the market by
attracting large number of players, integrating of the insurance market with the
domestic financial services market, and synchronizing the Indian Insurance
market with that of global insurance market.

Thus, the objectives of IRDA are two fold: policyholder protection and
healthy growth of the insurance market.
 IRDA has till 2001 issued seventeen regulations in the areas of
registration of insurers, their conduct of business, solvency margins, conduct of
reinsurance business, licensing, and code of conduct intermediaries. It follows
the practice of prior consultation and discussion with various interest groups
before issuing regulations and guidelines.

Operations of IRDA
1. IRDA has developed its internal parameters to assess the promoters’
credentials.
2. IRDA is the sole authority for awarding licenses. There is no restriction in the
number of licenses it can issue, but licenses for life and non-life business are
to be issued separately. Licenses are issued only on a national basis. The
new players should commence business within 15-18 months of getting the
license.
3. All insurance intermediaries, such as agents and corporate agents, have to
undergo compulsory training prior to their obtaining a license. IRDA also
specified the minimum educational qualifications for these intermediaries.
IRDA conducts examinations and then issues licenses to these agents,. IRDA
believes that well trained and informed intermediaries can service the
consumers better. IRDA insured or renewed. 1, 18,154 agents licenses by the
end of March 2001.
4. IRDA has come out with the Insurance Advertisement and Disclosure
Regulations to ensure that the insurance companies adhere to fair trade
practices and transparent disclosure norms while addressing the
policyholders or the prospects.
 Potentiality in the Insurance Sector.
Scope of Insurance Business in India

The Malhotra Committee estimated that the insurance penetration in India is to

the extent of about 25% of the insurable population. As of 1999-2000, LIC’s
Insurance Premium Income was approximately Rs. 32,000/- carores. It is
observed that currently LIC has about 10 Crore policies in force, which
contributed a premium of about 6% of the GDS (Gross Domestic Savings) of
household in India.

Based on a report by the Confederation of Indian Industries (CII), it is anticipated

that this figure of 10 carore policies in force is likely to double in the next decade.
By the year 2010, the premium income is expected to account for 18% of the
GDS, amounting to Rs. 5,12,000 carore.

YEAR
Chart 1-: Number Policies In Forces
International Presence of IRDA

IRDA is a member of the International Association of Insurance

Supervisors, (IAIS) headquartered at Basel, Switzerland. The IAIS is an
organization set up by regulators and supervisors of insurance industry. The
aims and objectives of the IAIS are to bring in prudential regulations, to prescribe
guidelines for the insurance supervisors to observe the industry, to promote
international co-operation and understanding among the supervisors, and to
represent before world forums the cause of the insurance industry and the matter
of its functioning and regulation. IRDA is a member of the Emerging Markets and
Technical Committees. Its Chairman is also a member of the Accounting Sub-
Committee and the Insurance Frauds Committee, IRDA is putting in efforts to
bring the Indian insurance market to international standards in areas of financial
viability, competence, technology and prudential regulations.

Table no.3 KEY MARKET INDICATORS

Life and non-life Market in India Rs. 83,645.11 crore

Global insurance market US $2940.67 billion

(as on 31st December, 2003) Nominal growth: 11.71 per cent
Inflation adjusted: 2.0 per cent

Growth in premium underwritten Life: 18.91 per cent

in India and abroad in 2003-04 Non-life : 11.16 per cent

Geographical restriction for None

New players
Equity restriction Foreign promoter can hold up to
26 per cent of the equity

Registration restriction Composite registration not

Available

Table no.5 NUMBER OF REGISTERED INSURERS IN INDIA

Type of business Public sector Private sector
Total
Life Insurance 01 13 14
General Insurance 06 08 14
Reinsurance 01 0 01
Total 08 21 29

ORGANIZATION STUDY
 A) MARKETING DEPARTMENT

B) OPERATIONS DEPARTMENT

C) FINANCE DEPARTMENT

D) HUMAN RESOURCE DEPARTMENT

A) MARKETING DEPARTMENT STUDY

 1) Marketing scenario – Segmentation

2) Target Market – Customers profile

3) Positioning strategy

4) Product details & Product Portfolio

5) Channel of Distribution

6) Pricing Policy

7) Promotional Tools employed, etc.

8) Marketing Strategy etc.

INRODUCTION
 Broadly defined the term ‘Market’ is “whenever and wherever there
is a potential demand for the product is known as ‘Market’. The concept of
market brings full circle to the concept of marketing. ‘Marketing means working
with market actualize potential exchange for the purpose of satisfying human
needs and wants”. Marketing has been originated from distribution function, due
to the centralized production function.

According to the guru of modern marketing concept, Fillip Kotler,

“Marketing is a set of human activity directed at facilitating change. Their element
must be present to define a marketing situation.
Two or more party who are potentially interested in exchange.
Each possessing thing or valued to other.
Each capable of communication and delivery.”

Marketing management looks after the marketing system of the

enterprise. So we can say that marketing is the process of discovering and
transferring consumers needs and wants into product and service involving
purchasing power so as to achieve the profit target as other objective set by the
company.

In HDFC Standard Life Insurance Company, generally higher

expenditure on marketing and advertisement is not made. Aggressive marketing
strategy has not been adopted by the company like the some competitors have
been.

1) MARKET SCENARIO –SEGMENTATION

 Market segment is the division of the market into different subjects
to customers where any subject may consciously be selected as target market to
be reach with different marketing mix. Basically market segment is process of
desegregating total market into number of sub markets. In other words market
segment means division of total market with view of serving and attaining market.

HDFC Standard Life Insurance Company has divided target market into
various segments. For example they have different segment for children,
youngster, middle-aged people, old age people and so on.

They have market segment basis on four types

 Age wise: children, middle age, and old age

 Gender wise: Male and Female
 Income wise: High income, middle income and lower income
 Geographical: East, West, North, South

2) TARGET MARKET
 Targeting means then products which company are producing is
for which segment, whether it is for youth, children, middle age, old age. They
become your target markets and the process is called targeting. Target market
could be any one that depends upon the company that for which segment it is
producing the products and the segment becomes its target market.

HDFC SLIC has products for all type of people. But as its most selling
policy is Personal pension plan, they are trying to target aged/retired people.

3) POSITINING STRATEGY

Positioning is most important. First you have to select target

segment, once target segment is selected, company should identify positioning
concept for that segment. Selected positioning should be developed and
communicated well.
HDFC Standard Life Insurance has strong position in the market.
Respect your self is the positioning strategy of the company.

4) PRODUCT DETAIL AND PRODUCT PORTFOLIO:

First we have to understand that what is product planning. A product can

be defined as bundle of utilities having tangible or intangible attributes offered
with a motive of satisfying customer’s need for an exchange value. Products,
which exactly match with need of the wants of customers, can be succeeding in
this global market. We should keep in mind that “Great ideas need landing gear
as well as wings”.
 We know that everybody is having his/her own life or we can say that each
of us leads a unique life and own needs. HDFC standard life offers a range of
products or we can say different products that invite to choose the one that suits
best. Following are the individual product.

The letters “PIPS” can be used to remember the classification. Let us now look
at the features of the various categories of the life insurance plans.
Life insurance products

Protection products investment products

1. Pure life insurance 1. To be sold to investors

2. Low premium with high covers 2. The aim is to get long
term real growth
3. No maturity values 3. The risks covered
are investment
risks.
4. Cover for income earning capacity.
5. Riders fall in this category.

Pension products Savings products

1. Provide income 1. Helps a person to save

for an event.
2. Protection of the income. 2. Protection of the
savings.
3. The risk covered is the risk of 3. The risk covered is the
living long. inability to save due to
death.
The HDFC standard life offer plans in each of the above category.

PRODUCTS FOR INDIVIDUAL:

1. Protection products [Link] assurance

2 Loan cover term assurance plan.

2. Savings plan [Link] assurance plan

2. Money back plans
3. Children’s plan
(With profits)
4. Unit linked endowment plan.

3. Investment plans [Link] premium whole of life plan.

4. Pension plans [Link] pension plan (With

Profits)
2. Unit linked pension plan.
GROUP PRODUCTS:

Group term insurance:

A group insurance scheme called ‘group term insurance’ is offered by HDFC

standard life insurance. The key features of these plans are convenient medical
procedures, flexibility for members to join or leave premium options, flexible
cover, globally valid, and no limit on the size of the group.

GRATUITY PLAN

The HDFC gratuity plan is an insurance policy which offers an employer a new
and flexible way to fund his gratuity liability. The contributions that he decides to
invest in this policy will assist him in meeting his gratuity obligations in an
organized way.

LEAVE ENCASHMENT PLAN

This plan is a flexible insurance policy which helps employers and leave
encashment scheme trustees in funding leave encashment obligations without
the employer’s profit and loss account being unexpectedly affected.

DEVELOPMENT ASSURANCE PLAN

The development assurance plan is designed for the economically weaker

sections of the society to satisfy their needs. It makes available life cover for a
period of one year top a specific group, and in case of the death of any member
of the group insured during the year of cover, a lump sum amount is paid to that
member’s beneficiaries to help meet some of the immediate financial needs
following their loss.

ENDOWMENT ASSURANCE PLAN:

 It is a participating (with profits) insurance plan that offers the following

features:

Provides financial support to the family by way of a lump sum payment in

case of the unfortunate death of the life assured within the term of the
policy.

 Provides a lump sum payment to the life assured on survival up to

maturity.

The lump sum mentioned is the basic sum assured plus any bonus
additions.

This plan is a with profits saving plan and is well suited for saving money
for your long-term financial goals. This plan also helps provide for the needs of
your family in your absence by paying out a lump sum in the event of your
unfortunate death during the term of the policy.

BENEFITS OF THIS PLAN :

You can add the following optional benefits to customise your policy to suit
your needs:

 Critical Illness (CI) Benefit provides an amount, equal to the sum

assured chosen under this optional benefit, on diagnosis of any one of the
6 common critical illnesses (1). The sum assured is payable if you survive
for 30 days after the date of the claim. Once such a claim has been met,
no further Critical Illness Benefit is payable. However, your basic policy
continues even after we pay a claim on this benefit.

 Additional Term Benefit (ATB) provides an additional amount equal to

the sum assured chosen under this optional benefit, in case of your
unfortunate death.
  Accidental Death Benefit (ADB) provides an additional amount, equal to
the sum assured chosen under this optional benefit, in case of your
unfortunate death:
- due to an accident, and
- within 90 days of the accident..

 Waiver Of Premium (WOP) Benefit waives the premium for you in case
you become totally disabled. The waiver is applicable during the period of
total disability.

ELIGIBILITY:
Table no.5
Basic Policy with optional benefits
Basic Policy
CI ATB ADB WOP
Min. age at entry 12 18 18 18 18
Max. Age at entry 60 55 60 55 50
Max. Age at expiry 75 70 75 65 60
Min. term: 10 years Max. Term: 30 years

UNIT LINKED ENDOWMENT ASSURANCE:

The unit linked endowment plan is an insurance policy that is designed to
pay a lump sum on maturity or on earlier death. The Unit Linked Endowment
Plan also gives the option of additional protection against the six common critical
illnesses, as well as additional protection if death is as the result of an accident.

Your premiums are invested in units of the investment fund of your choice,
based on the prevailing unit price. On maturity you receive the value of your
units. On death (or critical illness, if chosen) you receive the greater of the value
of your units and your selected basic sum assured.
INVESTMENT OPTION :
The policy is fully unitised with a range of funds to match your needs and
approach to risk. (By risk we mean the likely volatility in the value of units in the
fund.)

Each investment fund is composed of units. All the units in a fund are
identical. You can choose from the following funds:

Liquid fund :
The Liquid fund invests 100% in bank deposits and high quality short-term
money market instruments. The fund is designed to be cash secure and has a
very low level of risk; however unit prices may occasionally go down due to the
use of short-term money market instruments.

Secure Managed :
The Secure Managed fund invests 100% in Government Securities and
Bonds issued by companies or other bodies with a high credit standing, however
a small amount of working capital may be invested in cash to facilitate the day-to-
day running of the fund. This fund has a low level of risk but unit prices may still
go up or down.

Defensive Managed:
15% to 30% of the Defensive Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government Securities
and Bonds issued by companies or other bodies with a high credit standing. In
addition, a small amount of working capital may be invested in cash to facilitate
the day-to-day running of the fund. The fund has a moderate level of risk with the
opportunity to earn higher returns in the long term from some equity investment.
Unit prices may go up or down.

Balanced Managed:
30% to 60% of the Balanced Managed fund will be invested in high quality
Indian equities. The remainder will be invested in Government Securities and
Bonds issued by companies or other bodies with a high credit standing. In
addition a small amount of working capital may be invested in cash to facilitate
the day-to-day running of the fund. The fund has a higher level of risk with the
opportunity to earn higher returns in the long term from the higher proportion it
invests in equities. Unit prices may go up or down.

Growth fund :
The Growth fund invests 100% in high quality Indian equities. In addition a
small amount of working capital may be invested in cash to facilitate the day-to-
day running of the fund. The fund has a higher level of risk with the opportunity to
earn higher returns in the long term from the investment in equities. Unit prices
may go up or down.

The past performance of any of the funds is not necessarily an indication

of future performance.

There are no investment guarantees on the returns of unit linked funds.

None of the funds participate in the profits of HDFC Standard Life

Insurance Company Limited or any of its policyholder funds.

BENEFITS:
There are 4 different options available to choose from:
Life Option
On death within the policy term, the greater of the Sum Assured and the
value of the unit-linked fund will be paid to your nominee.
On survival to the end of the policy term the value of the unit linked fund
will be paid to you.
Life and Health Option
On death or earlier diagnosis of any one of six common critical illnesses
within the policy term, the greater of the Sum Assured and the value of the unit-
linked fund will be paid to your nominee.

On survival to the end of the policy term the value of the unit-linked fund
will be paid to you.
 The illnesses covered under this option are cancer, coronary artery by
pass graft surgery, heart attack, kidney failure, major organ transplant (as
recipient) and stroke.

Extra Life Option

This option pays the same benefits as the Life Option but, should death
occur within the policy term as the result of an accident, an extra benefit equal to
the Sum Assured will be paid.

Extra Life and Health Option

This option pays the same benefits as the Life and Health Option but,
should death occur within the policy term as the result of an accident, an extra
benefit equal to the Sum Assured will be paid.
ELIGIBILITY:

Table no.6
The age and term limits for taking out a Unit Linked Endowment Plan are:
(years)

Minimum Maximum Maximum

Minimum Maximum
Age at Age at Age at
Term Term
Entry Entry Expiry

Life 10 30 18 60 75

Life and
10 30 18 55 65
Health

Extra Life 10 30 18 55 70

Extra Life
10 30 18 55 65
and Health

The unit price each day will include a fund management charge. This
charge is 0.80% of the fund value per annum taken on a daily basis.
CHILDREN'S PLAN:

Children’s Plan is designed to provide a lump sum to the child at maturity.

It also provides financial security to the child in the future, even in case of the
insured parents unfortunate death during the policy term. Children’s Plan
receives simple reversionary bonuses, which are usually added annually. This is
a flexible plan with three options for you to choose from, depending on your
requirements. The details of these options are explained in the next section.

ELIGIBILITY:
Table no. 7
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 60 years
Maximum Age At Maturity 75 years

Minimum Term: 10 years Maximum Term: 25 years

PAYMENT OPTIONS :
You have the choice of paying the premium either in yearly, half-yearly or
quarterly modes, depending on your convenience.
MONEY BACK PLAN :

It is a participating (with profits) insurance plan that offers the following features:

Payment of cash lump sums, each of which is a proportion of the basic sum
assured, at 5-year intervals during the term of the policy. (Please refer to the
table given below.)
On survival up to maturity, a payment equal to the basic sum assured plus
any bonus additions less the cash lump sums paid earlier is provided.

In case of the unfortunate death of the life assured within the term of the
policy, the basic sum assured plus any bonus additions is provided. This is over
and above the earlier payouts.

This plan helps you plan for future anticipated expenses by paying
periodic cash lump sums to you at regular intervals. This plan also helps provide
for the needs of your family in your absence by paying them the basic sum
assured plus any bonus additions in the event of your unfortunate death during
the term of the policy.

BENEFITS:

You can add the following optional benefits to customise your policy to suit your
needs:

Critical Illness (CI) Benefit provides an amount, equal to the sum assured
chosen under this optional benefit, on diagnosis of any one of the 6 common
critical illnesses (1). The sum assured is payable if you survive for 30 days after
the date of the claim. Once such a claim has been met, no further Critical Illness
Benefit is payable. However, your basic policy continues even after we pay a
claim on this benefit.
 Additional Term Benefit (ATB) provides an additional amount, equal to the sum
assured chosen under this optional benefit, in case of your unfortunate death.

Accidental Death Benefit (ADB) provides an additional amount equal to the

basic sum assured in case you die:
- Due to an accident, and
- Within 90 days of the accident.
Waiver Of Premium (WOP) Benefit waives the premium for you in case you
become totally disabled. The waiver is applicable during the period of total
disability.
All optional benefits must be selected at the outset of your plan.

ELIGIBILITY
Table no.8

This plan can be taken on a single life basis or a joint life (first
claim) basis. The eligibility ages are as follows:

Basic Policy Basic Policy for optional benefits

CI ATB ADB WOP
Min. age at entry 12 18 18 18 18
Max. Age at entry 60 55 60 55 50
Max. Age at expiry 75 70 75 65 60
Min. term: 10 years Max. Term: 30 years
SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN :

Single Premium Whole Of Life Insurance Plan is well suited to meet your
long-term investment needs. This participating (with profits) plan offers you the
following
benefits:
A sound investment: Your money will be invested in our With Profits fund. The
fund aims to provide secure and stable long-term growth. Normally, we will
declare a compound reversionary bonus for your policy every year and add it to
your policy on its anniversary. In addition, on death, surrender or on the
guaranteed dates, a terminal bonus might be payable. You pay a single premium
and the policywill pay you a lump sum.

Flexibility of term: Even after choosing your policy, you can decide on the policy
term. For 4 weeks after any one of the 10th, 15th, 20th and subsequent five-year
anniversaries, you can choose to receive the sum assured plus any attaching
bonuses, in full. Once the money has been received, your policy will cease.

Surrender value: You can terminate the policy any time, after it has been in
force for at least 6 months, and receive a surrender value.

In case of unfortunate death: Your nominee gets the sum assured secured by
your premium, plus any attaching bonuses.
No medical requirements : We do not require you to undergo any medical test
for this plan.

ELIGIBILITY:
Table no.9
The eligibility ages are as follows:
Minimum age at entry : 18 years
Maximum age at entry : 70 years
TERM ASSURANCE PLAN :

Under this plan, a sum assured is payable in case of death 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. Since this non-participating (without profits) plan is a pure risk cover plan,
no benefits are payable on survival to the end of the term of the policy.

If you have a family that you care for, you should consider what would
happen in case of your unfortunate death. The emotional void cannot be filled,
but financial insecurity can be avoided. By taking this affordable life insurance
plan, you can provide for the well being of your family in case of your unfortunate
death. This plan comes to you at a minimal cost and is well suited for the value-
conscious customer.

BENEFITS:

You can add the following optional benefit to customise your policy to suit your
needs:
1. Critical Illness (CI) Benefit provides an amount, equal to the sum assured
chosen under this optional benefit, on diagnosis of any one of the 6 common
critical illnesses (1). The sum assured is payable if you survive for 30 days after
the date of the claim. Once such a claim has been met, no further Critical Illness
Benefit is payable. However, your basic policy continues even after we pay a
claim on this benefit.
2. Accidental Death Benefit (ADB) provides an additional amount, equal to
the sum assured chosen under this optional benefit, in case of your unfortunate
death:
- due to an accident, and
- Within 90 days of the accident.

3. Accelerated Sum Assured (ASA) Benefit provides, on diagnosis of any one

of the 6 common critical illnesses (1), an amount equal to the basic sum assured
on the Term Assurance Plan.
As soon as we accept your claim:
- We pay out the sum assured.
- Your basic policy immediately terminates without value.

The benefit accelerates or advances the date on which the benefit would
be payable. It becomes payable on death or critical illness, whichever occurs
earlier. Once a claim has been met, either on death or critical illness, no further
benefit is payable on your policy.

CI and ASA are not simultaneously available on a single policy. All

optional benefits must be selected at the outset of your plan.

Since some of the benefits are subject to maximum limits, please contact
your Financial Consultant for more details.

ELIGIBILITY:

Table no.10

Policy with any

Basic Policy
optional benefit
Minimum age at entry 18 18
Maximum age at entry 60 55
Maximum age at expiry 65 65
Loan Cover Term Assurance Plan :
This plan provides a lump sum on the unfortunate death of the life assured
during the term of the plan. The lump sum will be a decreasing percentage of the
initial sum assured. As the outstanding loan decreases as per the loan schedule,
the cover under the policy decreases as per the policy schedule. Since this is a
non-participating (without profits) pure risk cover plan, no benefits are payable on
survival to the end of the term of the policy.

If you are taking a loan to buy a house for your family, this plan can help
you ensure that life's uncertainties do not affect their shelter. It is an affordable
plan that has been designed to help your family repay the outstanding loan in
case of your unfortunate death.

ELIGIBILITY: Table no.11

This plan can be taken on a single life basis or a joint life (first claim) basis. The
eligibility ages are as follows:

Policy with optional

Basic Policy
benefit
Minimum age at entry 18 18
Maximum age at entry 55* 55
Maximum age at expiry 65 65
Personal Pension Plan:

Before you enter into any financial contract, it is important that you
understand what the product is, how it works, the risks involved and what a
decision
to buy could mean for you. We recommend that you read this document before
you purchase a policy from HDFC Standard Life Insurance Company.

Purpose: The policy is basically a savings contract, which is designed to provide

an income for life from retirement, with an option to take the lump sum elsewhere
to buy the annuity, provided it is permitted by the prevailing regulations.

Your commitment: You agree to pay a single premium or level premiums with
installments due every quarter, half-year or year throughout the deferment period
of the policy, after which you will start receiving your pension.

ELIGIBILITY:

Table no.12
The age and term limits for taking out a Personal Pension Plan are:

Minimum Maximum Minimum Maximum Minimum Maximum

Term3 Term Age at Age at Age at Age at
Entry Entry Retirement Retirement
RP1 SP2 RP SP RP SP
10 5 40 15 18 35 60 50 70
UNIT LINKED PENSION PLAN :
The unit linked pension plan is basically an insurance contract, which is
designed to provide a retirement income for life.

Your premiums are invested in units of the investment fund of your choice,
based on the prevailing unit price. On vesting the value of your units will be used
to buy your retirement benefits.

On earlier death, the beneficiary receives the value of your units plus a
cash lump sum of Rs. 1,000.

INVESTMENT OPTIONS :
The policy is fully unitised with a range of funds to match your needs and
approach to risk. (By risk we mean the likely volatility in the value of units in the
fund.) Each investment fund is composed of units. All the units in a fund are
identical. You can choose from the following funds:

Liquid fund :
The Liquid fund invests 100% in bank deposits and high quality short-term
money market instruments. The fund is designed to be cash secure and has a
very low level of risk; however unit prices may occasionally go down due to the
use of short-term money market instruments.

Secure Managed:
The Secure Managed fund invests 100% in Government Securities and
Bonds issued by companies or other bodies with a high credit standing, however
a small amount of working capital may be invested in cash to facilitate the day-to-
day running of the fund. This fund has a low level of risk but unit prices may still
go up or down.

Defensive Managed :
15% to 30% of the Defensive Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government Securities
and Bonds issued by companies or other bodies with a high credit standing. In
addition, a small amount of working capital may be invested in cash to facilitate
the day-to-day running of the fund. The fund has a moderate level of risk with the
opportunity to earn higher returns in the long term from some equity investment.
Unit prices may go up or down.

Balanced Managed :
30% to 60% of the Balanced Managed fund will be invested in high quality
Indian equities. The remainder will be invested in Government Securities and
Bonds issued by companies or other bodies with a high credit standing. In
addition a small amount of working capital may be invested in cash to facilitate
the day-to-day running of the fund. The fund has a higher level of risk with the
opportunity to earn higher returns in the long term from the higher proportion it
invests in equities. Unit prices may go up or down.

Growth Fund:
The Growth fund invests 100% in high quality Indian equities. In addition a
small amount of working capital may be invested in cash to facilitate the day-to-
day running of the fund. The fund has a higher level of risk with the opportunity to
earn higher returns in the long term from the investment in equities. Unit prices
may go up or down.

The past performance of any of the funds is not necessarily an indication

of future performance.

There are no investment guarantees on the returns of unit linked funds.

None of the funds participate in the profits of HDFC Standard Life

Insurance Company Limited or any of its policyholder funds.

BENEFITS:
At the chosen vesting date, the unitised fund value will be available to
secure pension benefits. Subject to the prevailing regulations, part of this value
can be taken in the form of a cash lump sum and the rest converted to an annuity
at the rate then offered by HDFC Standard Life. Alternatively, if it is permitted by
the prevailing regulations, the proceeds net of any cash lump sum can be used to
buy an annuity with any other insurance company who will accept such business.
The current maximum limit for any cash lump sum is one-third of the unitised
fund value on vesting.

On death the unitised fund value will be paid along with a cash
lump sum of Rs. 1,000. The beneficiary may use the proceeds to
purchase pension benefits for the surviving spouse.

ELIGIBILITY
Table no.13
The age and term limits for taking out a Unit Linked Pension Plan are: (years)

Minimum Maximum Minimum Maximum

Minimum Maximum
Age at Age at Age at Age at
Term Term
Entry Entry Vesting Vesting

Regular
Premium 10 40 18 60 50 70
Version

Single
Premium 5 40 18 65 50 70
Version

The unit price each day will include a fund management charge. This
charge is 0.80% of the fund value per annum taken on a daily basis.
5) CHANNEL OF DISTRIBUTION

To reach the target market you should have standardized channel of

distribution. First we have to understand distribution. Distribution means to
distribute company’s products in the target market. Consumers can define
distribution channel.

In other words distribution channel consists of set of interdependent

organization involved in the process of sustaining a product or service from the
point of production to the user at the point of consumption.

Let us talk about the HDFC Standard Life Insurance Company, the
distribution channel is mainly depend and related with the financial consultants
they are the keys to get more business. Financial Consultants mainly come
under the ADM and BDM.
6) PRICING POLICY
Generally this is not FMCG product where in short period price
changes take place. These products are called financial products, which does
not fluctuate in short period. HDFC Standard Life insurance has different prices
for different products. Company has different products like pension plan, unit
linked endowment plan, money back plan, term assurance plan, children’s plan
and so on all these products have different prices.

Every product has different benefits; rates and eligibility criteria

prices are decided on that basis.
7) PROMOTION TOOLS:
Sales promotion is most important in the marketing, this the one of the
important elements of marketing promotion viz., advertisement, Personal selling
and publicity. Sales promotion can be defined as process of marketing
communication involving information, persuasion and influence.

Pillip Kotler has rightly defined sales promotion as “it consist of diverse
collection of incentive tools, mostly short term, design to stimulate, quicker and or
/ greater purchase of products or services by the consumers or the trade.

Advertisement offers reason to buy and SP offers an incentive to buy.

The use of SP tools has increased greatly because of demanding customers,
competition globalization etc.

For sales promotion there various techniques which are applied viz.;
 Sales promotion letters
 Point of purchase promotion
 Catalogue
 Gifts
 Contest
 Free sample
 Discount
 Coupons
 Installment offer
 Premiums and free offer
 Trade fare and exhibition
 Demonstration

If we talk about the HDFC SLI, they use trade fair and exhibition,
 installment, contents etc. for promoting their sales. In very short period they
have done very good business and occupied good place in market.
8) MARKETING STRATEGY

Marketing strategy of the company is to penetrate more and more market

because company has been working since last five years before that private
players were not allowed to do the business of insurance. Today in this market
so many private players are existed. It is reality that the Life Insurance Compay
covers larger part of market but it is also reality that still large part of population
of India does not have insurance policy. So company is trying to penetrate more
market.

Among all private players HDFC Standard life Insurance working

efficiently and tries to reach on top place. HDFC Standard Life Insurance also
has financial consultants in the rural market.

B) 0PERATIONS DEPARTMENT STUDY:

 Operation department plays vital role in the successes of any
organization. To provide quality of services operation department is necessary.
Every operation in this department is carried out very smoothly. The main
objective of the operation department is to interface between clients and financial
consultant of the company, the branches and underwriters and so on. Operation
department manages all this things very smoothly.

LOCATION OF THE COMPANY

Name : HDFC standard life insurance co. ltd.

Address : Registered office –
Roman house, H.T. Parekh Marg, 169, Backbay
Reclamation, Churchgate, MUMBAI – 400 020.
Corporate office –
The IL & FC Financial Center, 5th floor, Plot No.- 22, G
Block, Bandra Kurla Complex, BANDRA (E), MUMBAI
– 400 051.
Tel. No. - 6533666
Fax - 22-6533655
E-mail - response@[Link]
Internet - [Link]
th
ESTD: : 14 August 2000
Form of Org. : Public Limited Company
Auditors : S. B. Billimoria & Company (C.A.)
Bankers : HDFC Bank
Board of Directors: Chairman - Mr. Deepak S. Parekh
MD & CEO - Mr. D. M. Satwalkar
Mr. A. R. Forbes
Mr. I. C. Lumsden
Mr. K. M. Mistry
Mr. M. R. Pai
Mr. A. M. Crombie
Promoters - HDFC & Standard Life Insurance Co

C] FINANCE DEPARTMENT STUDY:

INTRODUCTION

1) ACQUISITION OF FUNDS

2) UTILIZATION OF FUNDS

3) FINANCIAL PERFORMANCE

4) INTEGRATED FINANCIAL SERVISES

5) FINANCIAL RATIO ANALYSIS

INTRODUCTION
 Finance is lifeblood of any institute or business. Finance is the
wheel to which one can generate and direct its business of the achievement of
the organization goals. Proper management of finance department forms the
base to increase the profitability. In business, cost to create and maintain a
product is in the hand of businessman. In competitive era sales and profit are not
in the hands of entrepreneur.

In every big organization responsibility is on the head of finance

manager. He has to take so many decisions related to the finance. The finance
manager has to the great care to deal with financial matter.

1) ACQUISITION OF FUND

SHARE CAPITAL:
Table no. 15

Current Year Previous Year

(Rs. ’000) (Rs. ’000)
1. Authorized Capital
Equity shares of Rs 10 each 3,000,000 2,200,000
2. Issued Capital
Equity shares of Rs 10 each 2,555,000 2,180,000
3. Subscribed Capital
Equity shares of Rs 10 each 2,555,000 2,180,000
4. Called-up Capital
Equity shares of Rs 10 each 2,555,000 2,180,000

In HDFC SLIC, it has subscribed only Equity share capital. It has

not issued any type of bonds or debentures. It has also not borrowed any amount
from any private financial institute. The banker of the firm is HDFC bank.

2) UTILISATION OF FUNDS

They utilize funds for the development of new branches. When new
branch is opened fund is utilized. They also utilize fund for the development of
financial consultant they suffer huge cost for one financial consultant, training of
the financial consultant they have approached new program DISHA. In the
DISHA program financial consultant are given training for four to five days.

Generally, fund is utilized to maintain the branches offices, maintaining

financial consultant, development of officers and so on.

3) FINANCIAL PERFORMANCE

PROFIT AND LOSS ACCOUNT OF THE RGANIZATION.

Table no. 15
Profit and Loss Account for the year ended 31st March 2004
Shareholders’ Account (Non-technical Account)
Particulars Schedule Current Year Previous Year
(Rs. ’000) (Rs. ’000)
Amounts transferred from the Policyholders’ Account
(Technical Account)
Income from Investments
(a) Interest, Dividends & Rent - Gross 92,873 92368
(b) Profit on sale / redemption of investments 70,446 31,525
(c) (Loss on sale / redemption of investments) (5,092) —
(d) Transfer / gain on revaluation
/ change in fair value — —
(e) Amortization (charge)/credit (8,304) (7,355)
Other Income 3,439 2,850
TOTAL 153,362 119,388
Expenses other than those directly related
to the insurance business 101,284 65,873
Bad debts written off — —
Provisions (other than taxation)
(a) For diminution in the value of Investments (net) — —
(b) Provision for doubtful debts — —
(c) Others — —
(d) Contribution to the Policyholders’ Fund 286,428 535,542
TOTAL 387,712 601,415
Profit / (Loss) before tax (234,350) (482,027)
Provision for Taxation — —
Profit / (Loss) after tax (234,350) (482,027)
APPROPRIATIONS
(a) Balance at the beginning of the Period. (746,483) (264,456)
(b) Interim dividends paid during the Period — —
(c) Proposed final dividend — —
(d) Dividend distribution on tax — —
(e) Transfer to reserves /other accounts — —
Profit / (Loss) carried forward to the Balance Sheet (980,833) (746,483)

BALANCESHEET OF THE ORGANIZATION

Particulars Current Year Previous year
(Rs.’000) (Rs.’000)
SOURCES OF FUNDS

SHAREHOLDERS FUND:

Share Capital 2,533,078 2,167,257

Reserves & Surplus - -
Credit/Debit Fair Value Change A/C 2,862 (7,837)
SUB-TOTAL 2,546,940 2,159,420

BORROWINGS - -

Policy Holder’s Fund

Credit (Debit) Fair value
Change A/C 34,377 -
Policy Liabilities 3,336,424 1,437,497
Insurance Reserves - -
Provision for Linked Liabilities 1,65,527 -
SUB TOTAL 3,536,328 1,437,497
Funds For Future
Appropriation
Surplus, Allocated to Share Holders - 2,489
TOTAL 6,083,268 3,599,406
APPLICATION OF FUNDS
INVESTMENTS
Share Holders 6,39,526 8,80,002
Policy Holders 3,399,977 1,310,374
Assets held to Cover Linked Liabilities 1,65,527 -
Loan 5,840 6,464
FIXEDASSETS 5,02,783 4,23,352
CURRENT ASSETS
Cash & Bank Balance 5,82,644 3,72,618
Advances & Other Assets 2,34,368 1,63,931
Sub-total (A) 8,17,012 5,36,549
CURRENT LIABILITIES 4,09,390 2,94,628
PROVISION 18,340 9,190
Sub-total (B) 4,27,730 3,03,818
Net Current Assets
(C) = (A – B) 3,89,282 2,32,731
Miscellaneous Expenditure - -
DEBIT BALANCE IN P & L A/C
(Share Holders’ A/C) 9,80,833 7,46,483
TOTAL 60,83,268 35,99,406
4) INTEGRATED FINANCIAL SERVICES
 SECURITISATION

Future Activities

DISTRIBUTION

HDFC CHUBB
GENERAL INSURANCE
CO. LTD.

5) FINANCIAL RATIO ANALYSIS

Accounting ratios are relationship expressed in mathematical terms
between figures, which are connected with each other in some manner.
Obviously, no purpose will be served by comparing two sets of figures, which are
not at all connected with each other. Moreover, absolute figures are also unfit for
comparison.
 Traditional classification is based on financial statement to which
determines the ratio belongs.
 Profit and loss account ratios are based on profit and loss account
only.
 Balance sheet ratios are based on the figures of the balance sheet.
 Composite or inter-statement ratios are based on both that is the profit
and loss account and balance sheet.

Current ratio = Current assets

Current liabilities

= 817012
427730
= 1.91
Fixed assets to current assets ratio = Fixed assets
Current assets
= 502713
817012
= 0.615

PBIT ratio = PBIT

x
Net sales 100

= 234350
153362
= 1.528

Fixed assets turnover ratio = Sales

Fixed assets
 153362
502713

= 0.305

Ratio analysis

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the

systematic use of the ratio to interpret the financial statement so that the strength
and weaknesses of a firm as well as its historical performance and current
financial condition can be determined. Also it can be said as “the indicated
quotient of two mathematical expressions and as “the relationship between two
or more things”. In financial analysis ratio is used as the benchmark for
evaluating the financial position and performance of the firm. The relationship
between two accounting figures expressed mathematically is known as a
financial ratio.

CLASSIFICATION OF RATIOS

1. revenue statement ratio

a) gross profit ratio
b)operating ratio
c) expenses ratio
d)net profit ratio
e)stock turnover
[Link] sheet ratio
a) current ratio
b) liquid ratio
c) quick ratio
d) proprietary ratio
e) debt-equity ratio
f)gearing ratio

g)long-term debt
Generally use usage ratios in any in firm in order to assist the firm in a decision
making. This would lead to the further formation .

1). REVENUE STATEMENT RATIOS:

a). Gross profit ratio
It is a ratio expressing relationship between gross profit earned
to net sales. It is an useful indication of the profitability of business.
 Gross profit
Gross profit ratio = ----------------------- X 100
Sales

b). operating ratio

it is a ratio showing relationship between cost of goods sold plus

operating expanses and net sales. It shows the efficiency of the management.
The higher the ratio , the less will be margin available to proprietors. This ratio is
also usually expressing as a percentage.

Cost of goods sold + operating expenses

Operating ratio = ------------------------------------------------ X 100
Net sales

2).BALANCE SHEET RATIO

A).CURENT RATIO
This most widely used ratio shows the proportion of current assets to
current liability. It is also known as “Working Capital Ratio” as it is a measure of
working capital available at a particular time. The ratio is obtained by dividing
current assets by the current liability.

current assets
current ratio = ------------------------------
current liability

B) LIQUID RATIO:
 A variant of a current ratio is liquid ratio or quick ratio which is design
to show the amount of cash available to meet immediate payment. It is obtained
by dividing liquid assets by liquid liabilities.
Liquid assets are obtained by deducting stock-in-trade from current
assets. Stock is not treated as l liquid assets because it can not be readily
converted into cash as when required.

Liquid assets
Liquid ratio = --------------------------------
liquid liabilities

C) ACID-TEST RATIO:
 the measure of absolute liquidity may be obtained by comparing
only cash and bank balance as well as readily marketable securities with liquid
liabilities. this is very exacting standard of liquidity and it is satisfactory if the ratio
is 0.5: 1

Quick assets
Acid-test ratio = ---------------------------
Liquid liabilities

D) PROPRITORY RATIO:
 The ratio shows the proportion of the proprietor’s fund to the total
assets employed in the business. The proprietor’s funds or share holders ‘equity
consist of share capital and reserves and surplus ‘.

Proprietor’s fund
Proprietary ratio = ---------------------------
Total assets

E) DEBT EQUITY RATIO:

 This ratio is only another form of proprietary ratio and establishes
relationship between the outside long term liabilities and owners fund. It shows
the proportion of long term external equities and internal equities i.e. Proportion
of funds provided by long term creditors and that provided by shareholders or
proprietors.

Long term liabilities

Debt-equity ratio = ------------------------------------- x 100
Share holders funds

F) CAPITAL GEARING RATIO:

 This ratio expresses the proportion of preference capital and ordinary
capital. In other words, it is ratio of fixed dividend gearing capital to ordinary
capital. Sometimes, even debentures are included along with preference capital.
The higher this ratio i.e. the greater the proportion of preference capital and
debentures to ordinary capital.

Fixed interest bearing capital

Gearing ratio = -----------------------------------------------------------
Ordinary capital

G) LONG TERM FUNDS TO FIXED ASSETS:

 The fixed assets of business must be purchased out of fixed capital
only. This includes share capital, reserves, and long term liabilities. This ratio,
therefore, shows the relation ship between fixed capital and fixed assets.

logn term funds to fixed assets ratio:

logn trem funds

= --------------------------------------------------
fixed assets

D) HR DEPARTMENT STUDY :
 1) Manpower Planning

2) Recruitment

3) Selection

4) Training

5) Performance Appraisal

1. MANPOWER PLANNING
 Manpower planning is most important for every organization. They
Human Resources & Development is the main department in any organization.
The HRD in the company aims at creating a conduciveness. Organizational
climate in which the employees are developed and realize their potential. The
main HRD mission in the company is continuous process and direction to enable
every individual as a member of an effective and efficient team. The company
realizes and activates his potentials so as to contribute to the achievements of
the company’s goals and derived satisfaction to them. The main function of HRD
department is to equip their manpower. Training and development is also main
function of HRD department of the company. The company is imparting
institutional training to upgrade this skills and knowledge of the staff members in
various fields.

HR is now committed to building capability through state of the art

processes. A robust performance management system, compensation system
and a segmented training architecture enable it to deliver value to the
organization.

2) RECRUITMENT
 Recruitment forms the first stage in the process, which continues with
selection and ceases with placement of the candidates, the first step being the
manpower planning. Recruitment makes its possible to acquire the number and
types of people necessary to ensure the continued operation of the firm because
without having right type of People Company cannot achieve its goals.

For the recruitment of the financial consultant they go for the presentation
in the colleges, cold calling and so on. A person who wants to be a financial
consultant of the HDFC Standard Life Insurance should have passed 12th
standard and he or she should be 18 years old. For the recruitment of the sales
development manager they prefer M.B.A. from repudiated college plus he or she
also should have experience of policy selling. For the higher post they prefer
internal source.

3) SELECTION
 Selection is most difficult job because you have to select right kind of
people. Selection is also can be defined as decision-making process where the
management decides certain norms and principal of standards on the basis of
which discrimination between qualified and non-qualified can be made so.

HDFC SLIC has been using selection procedure on the basis of written
test, group discussion and personal interview. It is also depend upon particular
job.

4) TRAINING

Training can be defined as “organized procedure by which people acquire

knowledge or skill for the definite purpose.

Training is effective tool or instrument that helps to reduce wastage of

resource and improvement in the quality of work. In this global era, training is
most essential because changing with the technology we have to improve
effectiveness of the employees for that training is most essential. Training is
given to the differently to the employees at different level. In HDFC SLIC for BDM
(business development manager) training is given for five to six days.

For FC (financial consultant) training of IRDA is compulsory it is generally

for 100 hours. After IRDA exam FC has to take product training for one week,
which is famously known as DISHA training in HDFC Standard Life Insurance.

5) PERFOMANCE APPRAISAL:
 Performance Appraisal can be termed as “it the process of evaluation and
employees performance and knowledge of the job in terms of requirement of the
job for which he is employed, for the purpose of administration including
placement, selection for promotion, providing financial regards and other actions
which require differential treatment among the members of the group as
distinguish from action effecting all members quality.

In HDFC SLIC performance appraisal is base on yearly basis, mainly it is

depend upon the particular employee who has achieved a specific target. Point
system of the performance appraisal also used. Other motivated factors also
included in performance appraisal.
For example if any officer performance is good his or salary can be
increased.

6) GRIEVANCE HANDLING
To handle the grievance of employees is tuff job and the particular
authority should handle it effectively. Grievances are feelings, sometimes real,
sometimes imagined, which an employee may have in regards to his
employment situation. It may be unvoiced or expressly stated, returned or verbal,
valid legitimate, untrue, completely falls or ridiculous and arise out of something
connected with organization or work.

In HDFC SLIC the manager handles grievance. If there is an internal

dissatisfaction in the employees then the manager of a particular branch tries to
solve it. if manager is not able to solve it then he writes to the higher authority.

LIST OF TABLES
 Sr. no. Title of the tables Page number
1. Content of the report 1
2. Players in the market share 21
3. Key market indicators 32
4. Number of registered insurers in India 33
5. Eligibility for the endowment assurance plan 41
6. Eligibility for the unit linked endowment assurance 45
7. Eligibility for the children’s plan 46
8. Eligibility for money back plan 48

9 Eligibility for the single premium whole life 49

insurance

10 Eligibility for the term assurance plan 51

11. Eligibility for the loan cover term assurance plan 52
12. Eligibility for the personal pension plan 53
13. Eligibility for the unit linked pension plan 56
14. Eligibility for the unit linked youngster plan 57
15 Acquisition of fund 66
16. Profit and loss account 68
17. Balance sheet 69
18 Investment amount in a year 80
19 Awareness about pension plans 82
20 Investment in any pension plan 83
21 Factors form selecting appropriate plan 84
22 Awareness about the pension plan of the HDFC 87
SLIC
23 Interest to get more detail about pension plan of 89
HDFC SLIC
24 Expected feature in pension plan 90

LIST OF GRAPHS
Sr. no. Title of the graph Page no.
1. Market share 22
2. Integrated financial services 70
3. Investment amount in a year 80
4. Awareness about pension plans 82
5. Investment in any pension plan 83
6. Factors form selecting appropriate plan 85
7 Awareness about the pension plan of 87
the HDFC SLIC
8 Interest to get more detail about 89
pension plan of HDFC SLIC
9 Expected feature in pension plan 90

Glossary
Insurance: The system under which individuals, businesses, and other
organizations or entities, in exchange for payment of a sum of money (a
premium) are guaranteed compensation for losses resulting from certain perils
under specified conditions.

Life Insurance- A contract for payment of a sum of money to the person assured
(or failing him/her, to the person entitled to receive the same) on the happening
of the event insured against. Usually 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.

Insurer: The party to the insurance contract promises to pay losses or benefits.

Insured: An individual or organization covered by an insurance policy, including

the "named insured" and any other parties for whom protection is provided under
the policy terms and conditions.

Accident Benefits Payment by the insurer an additional benefit equal to the sum
assured in case of death by accident.

Advance Deposit : The amount paid with the proposal equal to the first
premium is called an advance deposit till the acceptance of risk by the insurer.

Accumulation period Time between the first premium payment and the first
benefit payout under a deferred annuity.

Age Limits: Stipulated age frame below and above which the company may not
accept applications or may not renew policies.

Amendment: Formal document changing the provisions of an insurance policy

signed together by insurance company officer and the policyholder.

Annuity: The contract that provides an income for a specified period of time, such
as a number of years or for life.
Assets: All property, goods, securities, funds or resources of any kind owned by
an insurance company.

Assignment: The transfer of interests in a life insurance policy to a person or an

institution.

Assurance: The act of assuring a certain sum in the event of survival or death of
a human life during a specified period.

Accelerated Death Benefits — Life insurance policies with a special feature that
allows payment of the death benefit when the insured person is still alive. Such
payment is usually limited to situations in which the policyholder is terminally ill.

Benefits: Amount payable by the insurance company to a claimant, beneficiary

or assignee under each coverage.

Bonus: The yearly share of a policy holder's profit declared by L.I.C. based on its
profit which gets added to the policy amount and is payable upon its maturity.

Broker: A kind of marketing specialist representing buyers of property and

liability insurance and deals with either agents or companies in arranging for the
coverage required by the customer.

Certificate of Insurance: The statement of coverage issued to an individual

insured under a group insurance contract, including the insurance benefits and
principal provisions applicable to the member.

Claim: A request for payment of a loss that may come under the terms of an
insurance contract.

Conditions: List of provisions declared in an insurance contract that qualify or

place limitations on the insurer's promise to perform.

Death Benefit: The payment made to a designated beneficiary upon the death of
the employee annuitant.

Declarations: The statements in an insurance contract that provide information

about the property or life to be insured and used for underwriting and rating
purposes and identification of the property or life to be insured.
Deferment Period: The period from the date of commencement of the policy to
the vesting date.

Deferred Annuity: The annuity providing for the income payments to begin at a
particular future date.

Disability: Physical or a mental impairment that substantially limits(Partial or

Total) one or more major life activities of an individual.

Disability Benefit: Free waiver of payment of future premiums in case of total

and permanent disablement due to an accident.

Dividend: The amount returned to a policyholder by an insurance company out

of its earnings.

Double Accident Benefit (DBA): The benefits provide for the payment for an
additional amount equal to the sum assured in the case of death of a policyholder
as a result of accident.

Due Date: The date on which the installment premium is due to be paid by the
insured.

Endowment Insurance: The type of life insurance that is payable to the insured
if he/she is still living on the policy's maturity date, or to a beneficiary.

Endorsements: An additional piece of paper which includes certain terms and

which, when attached to the original contract, becomes a legal part of that
contract.

Endowment: The life insurance payable to the policyholder if living, on the

maturity date declared in the policy, or to a beneficiary if the insured dies prior to
that date.

Extra Premium: Additional premium charged on hazardous occupations and

impaired lives.

Endowment Assurance Plan: A plan where the Sum assured is payable on the
date of maturity or on death of the life assured, whichever is earlier.
Free Disability Benefit: Unlike the Double Accident Benefit, The Free Disability
Benefit is, as the name suggests, a benefit automatically available to every
policyholder without any extra charge.

Group Insurance- Insurance provided to members of a formal group such as

employees of a firm or members of an association.

Keyman Insurance: This is taken by a business firm on the life of key

employee(s) to project the firm against the finance loss, which may occur due to
the premature demise of the Keyman.

License: A type of surety guaranteeing that the person licensed will comply with
all laws and regulations that govern his or her activities.

Life Insurance- A contract for payment of a sum of money to the person assured
(or failing him/her, to the person entitled to receive the same) on the happening
of the event insured against. Usually 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.

Liability: Any kind of legally enforceable obligation.

Life Assured: The individual whose risks are covered by an insurance policy.

Loan: The facility to raise loan on the mortgage of the policy based on its
surrender value.

Agent: The authorized representative of the insurer, licensed by the Government

of India to canvass insurance.

Pension Plan: The plan established and maintained by an employer or a group

of employers, union or any combination, primarily to provide for the payment of
definitely determinable benefits to participants after retirement.

Claim: A request for payment of a loss that may come under the terms of an
insurance contract.
 4) Bibliography

 Phillip kotler ‘’ Marketing management “published by 11 editors,

practice hall of India pvt. Ltd 2003

 c.b. Mamoria ‘’ Personnel Management ‘’published by Himalaya

Publishing House1999

 K. Aswathappa ”Human Resource And Personnel Management” 3

Editions Tata Mc Graw Hill Publishing Company Ltd. 2004
2004

 [Link]

 [Link]

 [Link]

 [Link]

 [Link]

 [Link]
 Problem Formulation

There are so many private Insurance company starts functioning in Bhavnagar

city. All companies has is own agent to market their products. Only LIC have a
team of 2000 agents which marketing the LIC product among Bhavnagar city. In
short there is very tuff competition between insurance agents in Bhavnagar.

Every companies are in search of best intermediaries to market his product.

HDFC Standard Life Insurance Company Limited, Bhavnagar is also searching
for it but they face a problem in selection of Financial Consultants (agents). The
company requires those individual which very kind to his work, enthusiastic and
wants achieve something. They any layman as a Financial Consultant of HDFC
Standard Life

Survey was conducted among the Bhavnagar city on the ‘Perception of high
net worth Individual to become a Financial Consultant of HDFC Standard
Life Insurance Company Limited, Bhavnagar’.
 Research Objectives

Primary Objective
To assess the perception for high net worth individuals for becoming
insurance agents with special emphasis on HDFC Standard Life Insurance.

Secondary Objectives
To find out the perception of an individual to become an insurance agent.

To find out the problem faced by a high net worth individuals not to become
an insurance agent.
 Research Methodology

“Marketing Research is the systematic gathering, recording and analyzing of data

about problem relating to the marketing of goods and services.”

The key word that distinguishes research from a haphazard gathering of

observation is systematic. The systematic conduct of research requires
particularly these two qualities:-

1 Orderliness in which the measurements are accurate and the

cross section is fair and
2 Impartiality in analysis and interpretation.

Research Design

Research design can be describe as an out line of a research project working or

a pattern In a research design there are series of prior decision that together
provide a master plan for completing a research project. Research design in
proved to a bridge between what has been established and what is to be done in
conduct of the studies. Research Design should be compressive and it should
provide which method to be used and what work to be done.

The best suitable Research designs for my study is exploratory design which
one of the most important and widely used design in marketing research.

In this research design the data collected are responses from the sample
containing large number of sources, which is called cross section of situation.
The intention was to know:
- Different kind of problem faced by the company in selecting of financial
consultant.
- Perception of an individual to become a financial consultant.
 Sampling Design

Sampling is very familiar to all of us it occurs frequently in the course of our daily
events. When limited portion from the large population is selected for the study
and the care is taken in choosing the sample to be representative of the
population. There are numbers of reasons why the sampling is done which are
as follows.

1. To study the population is not possible due to limited time frame because
researcher has to complete there search in a given time period sot he
chooses the sample to be in time.
2. Sampling is economical in cost because only a few portion is to tasted and
not the whole population.
3. If whole population is studied accuracy cannot be maintain because of the
much analysis and interpretation which will load to miss guided result.
 Data Collection Method

The collection of data is most important task while doing research variety of data
is required. There are two types of data:

1. Primary Data: It is a firsthand data it may be obtained from individuals,

from families, representatives, or from organizations. It is specially
generated by doing the research. It is specific relevant and up to date. In y
project primary data is collected through questionnaire by asking question
at the respondent place.

2. Secondary Data: In contrast to primary data these are not first hand data.
These are the data, which are already gathered, and available data. There
may be internal sources with in the client’s firm. Externally these sources
may include books or periodicals, published reports, data services, and
computer data banks.

Targeted Individuals

These are the individuals, which are targeted to collect data through
questionnaire.
1. Tax Consultants.
2. Small Savings Agents.
3. LIC Agents.
4. Estate Brokers.
5. Other Investment Advisors
6. Businessmen
 Data Analysis And Interpretation

 Education Qualification.

In the question of education qualification I find this type statistics in sample

survey.
Table 1-:
10th 10 + 2 Graduates Post Graduates
% of Total 19% 21% 46% 14

Chart 3:- Educational Qualification

As per the IRDA norms the only qualified for an agent if he has completed
minimum education of 10+2 or equivalent where the applicant resides in a place
with a population of 5000 or more as per the last census. In any other place, the
applicant should satisfy a minimum educational qualification of 10 th standard or
equivalent.
 Current Occupation:

Table 2-:
Salaried Self-employed Students
(SE)
% of Total 7% 88 % 5%

Chart 4-: Current Occupation

As per targeted individuals all are engaged in some activities and most of them
are businessmen so number of Self-employed is very large.

HDFC does not want those person whose job timing are 9 to 5, because HDFC
fill that Financial Consultant has to work 5 to 6 hours a day which is suitable for
self employed person rather than salaried.

The person who is doing business of Investment advisor, small saving agent, or
tax consultant for him selling an insurance plan is easy job comparative to other.

 Phone Numbers.
Table 3-:
Office No. Residence Mobile No. No number
(O) No. (R) (M) (N)
% of Total 70 % 15 % 5% 10 %

Chart 5-: Phone Numbers

HDFC Standard Life is more emphasizing in base phone number. He has

mandatory for his financial consultants to have one base phone either at office or
at residence.

In some case I am getting both Office as well as Residence phone number but in
some case the respondent gives his mobile number or he has no any contact
number.

 You have Agency of Other Life Insurance Company

Table 4-:
Yes I have an agency No I don’t have
% of Total 8% 92 %

Chart 6-: Agency of other Life Insurance Company

As per the IRDA norms one person cannot work of two different life insurance
companies simultaneously. In my target individual I have targeted LIC agents
because they have an art of selling life insurance product.

The person cannot take an agency of HDFC Standard Life if he is already an

agent for another life insurance company but he may take an agency of HDFC
Standard Life in the name of his family member and work for both companies.

But response from LIC agents is very poor they don’t want hear anything about
private companies, they are interested in finding faults in it.

 Social contact base

Table 5-:
50-100 101-200 201-500 501 & above
% of Total 29 % 37 % 27 % 7%

Chart 7-: Social Contact Base

Insurance business is totally based on contact base. Insurance is not such

product that can sale in a shop for this you to go toward the respondent and find
needs of insurance for particular person.

More social contact more will be the business. The person should select as a
financial consultant which enough social contact i.e. more than 100.

 Family Member
Table 6-:
1-3 4-6 7-10 Above 10
% of Total 14 % 66 % 12 % 8%

Chart 8-: Family Members

India is an over populated country. In our survey we find that most of the family 5
or then 5 family members.

The logic behind to see the number of person in family is if the person have big
family then the needs of family is more and to fulfill the needs of family member
earner has to earn more and there no upper limit of earning in Life Insurance
business. This factor will motivate individuals to work hard and get equivalent
reward of it.

 Is your family a Single Income family?

Table 7-:
 Yes, single person is No, more then one
earning person earning
% of Total 33 % 67 %

Chart 9-: Single Income Family

It is very surprising in my study that number of NO is more then YES in this

question.

In India most of the family are dependent in single income but during my survey I
found that there are more then one person are earning from the same family
either father and son or two brothers are earning.

It is appreciated; as per insurance business is concern. Because more the

earners more the social contact bases they have.
 No. Of Dependents in a Family

Table 8-:
1 to 3 4 to 6 7 to 10 More than 10
% of Total 55 % 32 % 8% 5%

Chart 10-: No. of dependents in family

As per my earlier chart most of the family have 4 to 6 member in his family and
more then one person is earning in a family on the basis of that it is obvious that
the number of dependent on earner are lying Between 1 to 3.

More the dependent person in a family more is the responsibility of earner. If the
person has more dependent in his family then he works hard for his family.
 How Often do you interact with your friends\relatives?

Table 9-:
Once in week Once in 15 Once in
days Month
% of Total 55 % 32 % 8%

Interaction with friends\relatives

80%
60%
60%
40% 25%
15%
20%
0%
Once in Once in Once in
week 15 days Month

Chart 11 – Interaction with friends\relatives

As shown in the chart 60% of the respondents interact with friends\relatives once
in 15 days. 25% interact once in month. So most of the respondents are in
interaction once in every month.
 Sales Experience.

Table 10-:
YES NO
% of Total 38 % 62 %

Chart 12-: Sales Experience

In this question the company emphasizing on field experience. In my survey I

found that individual are able to sale product in his shop but he fill uncomfortable
to sale at respondent place. Or rather there is a lack of field sales experience in
it.

In insurance business those people are survive who are able to sale his product
at any time and at any place.
 Sales Experience of Financial Product

Table 11-:
YES NO
% of Total 14 % 86 %

Chart 13-: Sales Experience of Financial Product

I found very less number of people who have a sales experience of financial
product. In our target individual only small saving agents, LIC agent and
investment advisor are came in this category.

If the person has an experience of selling financial product then it is easy for him
to understood and convince other for buying insurance.
 Are you Interest to become an Insurance Agent?

Table 12-:
YES NO
% of Total 26 % 74 %

Chart 14 -: Interest in becoming Insurance agent

I am getting very good response from the respondent. From the total number of
individual 26 % are interested to be insurance agent and are eligible to become
an insurance agent as per IRDA norms and HDFC’s conditions.
 What are main hurdles in becoming insurance agent?

Table 13-:
Lack of time 28%
Fully involved in own business 25%
Having agency of other insurance co. 8%
Lack of social contact 7%
Lack of awareness 5%
Others 27%

Chart 15-: Hurdles in becoming Insurance Agents

It is found from the survey that 28% respondent were having lack of time, while
25% respondents were fully involved in their own business, 8% were having
agency of other insurance company, 7% were having lack of more social
contacts, 5% were having lack of awareness about insurance business and 27%
respondents were having some other personnel problems to become insurance
agent.
CONCLUSIONS

The IRDA has announced regulations pertaining to licensing of insurance agents,

which have come into force with effect from 14th July, 2000.

An insurance agent should satisfy the following requirement:

1. Possess a minimum educational qualification of 12th standard or

equivalent where the applicant resides in place with a population of five
thousand or more as per the last census. In any other place, the applicant
should satisfy a minimum educational qualification of 10 th standard or
equivalent.

2. Complete on hundred hours of practical training in life insurance business,

from an approve institution, where the applicant is seeking a license for
the first time to act as an insurance agent. This training requirement is
relaxed in certain situation where the applicant possesses professional
qualifications.

3. Pass the pre-recruitment test, based on an examination conducted by the

Insurance Institute of India or another approved body.

4. Have the requisite knowledge to solicit and procure insurance business.

5. Be capable of providing necessary service to policyholders.

From the market survey it is shown that the individuals are feeling that the selling
an insurance product is very tuff task and it is true but to reduce this IRDA has
introduce the 100 hours practical training which is mandatory for every agents to
understand the product and how to sale it in the market.

Awareness level among the individual regarding the earning of insurance agent
is very less. The high earning is motivating to become an agent.

But In survey I found that the person who is related to the insurance business or
with any other financial product are not so much interested to become an agent
because the after sale services in insurance product is a main job of an agent
and they are not interested init.

During my Research I found one co-relation between the number of family and
perception to become an insurance agent.

The person with big number of family is more interested to become an agent
compare to the person having small family. Because more the family member
more will be the needs of family and this factor motivated individual to work hard
for his family.

Insurance is only a business which gives renewal commission means once sale
a policy then every year you will get some part of the premium paid by
policyholder as a commission and this renewal commission motivating agents to
provide better service to the policyholder.
 RECOMMENDATIONS

1. Target those individual who searching for a new business.

2. Give advertisement for Financial Consultant and about HDFC Standard

Life Insurance Company Limited in newspapers as well as in television to
create awareness of Life Insurance among the people.

3. In Bhavnagar city there is no any holding or any advertisement outlets is

made by HDFC SL, please make some advertisements.

4. The main problem face by individual is timing of training. HDFC Standard

Life providing training to his consultant as per the IRDA norms the training
times 10 to 6 for 13 days. It is difficult for already engaged person to leave
his business for 13 days instead of giving continuous training make part of
4 hours a day and increase this time during weekends.

5. The LIC has covered almost market of insurance but still there is so much
potentiality in this sector. For new Financial Consultant it is tuff to find out
this potentiality for that HDFC Standard Life Insurance Company has to
support his financial consultants at every step.

6. Young generations are suitable to become financial consultant for an

insurance business because in this business the person has to run in the
market. If person fails to convince his client in two meetings then the other
agent get that business on his first meeting because the foundation is
already made by first one but he unable to built which is done by second.
 7. List of Graphs
No Title Page No.
1 Number Policies In Forces
2 Life premium as a proportion of Gross Domestic
Savings
3 Educational Qualification
4 Current Occupation
5 Phone Numbers
6 Agency of other Life Insurance Company
7 Social Contact Base
8 Family Members
9 Single Income Family
10 No. of dependents in family
11 Interaction with friends\relatives
12 Sales Experience
13 Sales Experience of Financial Product
14 Interest in becoming Insurance agent
15 Hurdles in becoming Insurance Agents
 List of Tables
No. Title Page
No.
1 Educational Qualification
2 Current Occupation
3 Phone Numbers
4 Agency of other Life Insurance Company
5 Social Contact Base
6 Family Members
7 Single Income Family
8 No. of dependents in family
9 Interaction with friends\relatives
10 Sales Experience
11 Sales Experience of Financial Product
12 Interest in becoming Insurance agent
13 Hurdles in becoming Insurance Agents
 Questionnaire

1. What is your Educational Qualification?

Ans. ______________________________________

2. What is your Current Occupation:

Ans. ______________________________________

3. Social contact base

[ ] 50-100 [ ] 150-200 [ ] Above 200

4. What is the size of Family?

[ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] Above 10

5. Is your family single Income family?

[ ] Yes [ ] No

6. No. of dependents in Family:-

[ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] Above 10

7. How often do you interact with your friends\family?

[ ] Once in week [ ] Once in 15 days [ ] Once in month

8. What general guidance you give to your friends\relatives?

Ans. ___________________________________________

9. Sales experience of Financial Product?

[ ] Yes [ ] No

10. Do you have agency of other Life Insurance Company?

[ ] Yes [ ] No
11. Are you interested to become an Insurance Agent?
[ ] Yes [ ] No
If No, Why ___________________________________

12. What are main hurdles in becoming Insurance agent?

Ans. _________________________________________

Personal Details
Name: ______________________
Address: ____________________
_____________________
_____________________
Contact No.: (O) ______________
(R) ______________