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Project On

³ Developing a chain of advisors to enhance

marketing channel´

Master of Business Administration (Marketing)

Submitted in partial fulfillment of the requirements for award of Master of Business Administration of

Tilak Maharashtra University, Pune.

Submitted by

Pawan Nagar

PRN No.

of

Ansal Institute of Technology

Gurgaon

Guided By Prof._____________________

Tilak Maharashtra University

Gultekdi, Pune 411037



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Tilak Maharashtra University, Pune

(Deemed Under Section 3 of UGC Act 1956 Vide Notification No. F.9-19/85-U3

dated 24th

April 1987 By the Government of India.)

Vidhyapeeth Bhavan, Gultekdi, Pune-411037.

CER TIFICATE

This is to Certify that the project titled ´Developing a Chain of Advisors To

Enhance Marketing Channelµ is a bonafide work carried our by Mr./ Ms. Pawan

Nagar a student of Master of Business Administration Semester 3rd , Specialization

Marketing PRN.__________________ under Tilak Maharashtra University,

in the year 2010.

Head of the Department Examiner Examiner

Internal External

Date:

Place: University Seal



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Certificate of Internal Guide

This is to certify that the project titled Developing a chain of advisors to enhance marketing

channels is a bonafide work carried out by Pawan Nagar a candidate for the award of Master of

Business Administration of Tilak Maharashtra University, Pune under my guidance and

direction.

Signature of Guide

Date: Name:

Designation:

Place: Institute:



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CERTIFICATE

TO WHOMSOVER IT MAY CONCERN

This is to certify that Mr. Pawan Nagar MBA Student of Tilak Maharashtra University, Pune

has successfully collected the data for the project report for award of MasterDegree of

Business Administration.

He has done the project on ³___________________________________________´.

Company Name Company Seal

Designation

Signature



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Acknowledgement

I would like to thank and express my gratitude towards HDFCSLIC ltd for providing me an

opportunity to work and learn through summer training. I am extremely grateful to Mr.HIMANSHU SHARMA for giving me the opportunity to work on live project and providing

me his wholehearted cooperation, help and valuable guidance at every stage of my project. He

has been a source of consistent and professional evaluator of my project. Without his personal

guidance I would have never come to successful & efficient completion of this project. He was

always a hand away and gave his guidance throughout the course of my training. My sincere

thanks to Mr Himanshu Sharma.

I also thank my faculty guide Mrs. Amita Pasricha in AIT Gurgaon for «««



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Chapter-1

Rationale of the study

As a partial fulfillment of the MBA Course in which eight week training has been incorporated

in the curriculum, during which a study is to be done in an organization mainly to extract the

practical knowledge & skill from the actual environment. This project provided me an

opportunity to gain profound insight into a practical applicability of management concepts and

developing better ability to analyze problems and decisions that has contributed significantly for

better use of resources available to the management.

To understand and to apply the concepts of the curriculum, I have undergone summer training in

HDFC STANDAR D, Gurgaon in the title of the project ³Developing a chain of advisors to

enhance marketing channels´. For which the report have been prepared with suggestions and

opinion of the respective subject given by me.

In the report every possible step that had been taken in the project are shown as a glimpse, with a

hope that it will be a tool to help the organization through the findings and opinion given in the

report.



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Chapter-2

Title of the project

³Developing a chain of advisors to enhance marketing channels ́

OBJECTIVE OF THE STUDY

The main objective of this project is to have complete knowledge about Life Insurance and life

insurance plans of Hdfc standard life insurance company. Secondly to make a chain of financial

advisors so as to enhance marketing channel of the company and to understand how does

channel development work for insurance company.

The following are primary objective of study:

y To have complete knowledge of life insurance.

y To make a chain of consultant of company.

y To understand what channel development is and to understand how does he work.

y To understand the importance of channel development.

y To know the role of financial consultant in life insurance industry.

y To understand the functioning of life insurance industry.

y To know the origin and history of life insurance companies.

y To gain experience in different environment with different people.



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SCOPE OF THE STUDY

Every life insurance company wants to provide better and quick service to its customers. For this

it needs some channels in order to enable customers to interact easily with the company.

Financial Consultants bridge the gap between company and the customer by imparting them the

right kind of information.

So, the persons those who could bear this responsibility are constantly searched by the insurance

company. The main purpose of this study was to make a chain of financial consultants so as to

enhance marketing channel.

Secondly, the motive behind this study of mine was to have practical knowledge of recruitment

by adopting various kinds of strategies and to learn new things.



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EXECUTIVE SUMMARY

Executive summary

As in current scenario when there are so many players in life insurance sector, each is having

tough competition with other. Each company is opting best possible strategy to spread its wings

and attracting customer towards it by providing uninterrupted services.

HDFC Standard Life Insurance is also giving better services to its customers through the channel

of financial consultant. My project was to recruit financial consultants. First of all I was

explained about the importance of a financial consultant in the company, their functions and

then, how and where to find them.

My study included the follow-up of procedures used for the recruitment of an insurance advisor

who can sell the products of the company. For this I performed market research by using various

kinds of activities like meeting persons individually in the market, convincing people by tele-

calling and through canopy activity to join HDFC as a financial consultant. I had to introduce

them with the benefits of becoming a financial consultant and if they agree for it then doing their

further documentation.

I conducted my research in Gurgaon and Delhi the areas close to it to know the public response

and conducting analysis part. I got questionnaires filled with various customers to know their

opinion and awareness about insurance sector.

This study gave me immense opportunity to enhance my inter-personal skills and to have

practical exposure of dealing with the customer directly. It was a delighting experience to engage



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myself in this summer internship because it taught me the ways of approaching and convincing

the customer and finally recruiting them for the organisation in which I worked.

Finally, interesting conclusions were drawn from the collected data.

Chapter-3

Profile of Company

INDUSTRY PROFILE

Incorporated in 1977 as a public limited company

To specialize in provision of housing finance to individuals, co-operative societies & the

corporate sector

First private sector retail housing finance company

HDFC is listed on both BSE and NSE

Market capitalization (June 2007) - R s. 95 billion (US $ 1.6 bn)



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COMPANY PROFILE

Company Name: HDFC Standard Life Insurance Co.

Indian Partner: HDFC Bank

Foreign Partner: Standard Life (U.K.)

Equity Ratio: 74:26 Commencement Date: January 1995

Field Of Operation: Life Insurance

CEO Of the Company: Deepak Satawalekar

CEO and MD-HDFC SL

About summer training department of company

HDFC possesses a separate but important department for the extension of the number of

financial consultants as Channel Development Department (CDD). Activities that are followed

by it to search financial consultants are:-

y Cold Calling

y Visiting market

y Placement Consultancies

y Interacting people personally

The purpose of every activity undertaken is to make chain of financial consultants who could sell

policies of the company.



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COMPANY PROFILE

Introduction

³Helping Indians experience the joy of home ownership´.

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest

housing finance institution and Standard Life Assurance Company, Europe's largest mutual life

company. It was the first life insurance company to be granted a certificate of registration by the

IR DA on the 23rd of October 2000.

Standard Life, UK was founded in 1825 and has experience of over 180 years. Companies. The

company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's

(Aa2).

Background of company

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of

promoting home ownership by providing long-term finance to households for their housing

needs. HDFC was promoted with an initial share capital of R s. 100 million.

Business Ob jectives



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The primary objective of HDFC is to enhance residential housing stock in the country through

the provision of housing finance in a systematic and professional manner, and to promote home

ownership. Another objective is to increase the flow of resources to the housing sector by

integrating the housing finance sector with the overall domestic financial markets.

Organizational Goals

HDFC's main goals are to :

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the existing client base.



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HDFC Founder

MAN WITH A MISSION

If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and

Chairman-Emeritus, who left this earthly abode on November 18, 1994.

Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial

career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down

in the late seventies, but, long before that, he went on to become a towering figure on the

Indian financial scene.

In 1956 he began his lifelong financial affair with the economic world, as General

Manager of the newly-formed Industrial Credit and Investment Corporation of India

(ICICI). He rose to become Chairman and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious

than his first. His vision for mortgage finance for housing, gave birth to the Housing

Development Finance Corporation - it was a trend-setter for housing finance in the wholeAsian continent.

He was a true development banker. His building up HDFC without any government

assistance is itself a brilliant chapter in financial history. His wisdom and warmth drew

people from all walks of life to him, for advice, guidance and inspiration.

He was also a writer in his own right. There are over 200 published articles by him, full

of incisive comments on finance and economics. In 1953 he brought out a volume called:

The Bombay Money Market. It detailed the intricate working of the Indian money

market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro - occupy pride of place

in Gujarati literature. In 1992, the Government of India honoured him with the Padma

Bhushan Award. The London School of Economics & Political.



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More about HDFC SLIC

.

The road to success is a tough and challenging journey in the dark where only obstacles

light the path. However, success on a terrain like this is not without a solution.As we found out nearly three decades ago, in 1977, the solution for success is customer

satisfaction. All you need is the courage to innovate, the skill to understand your clientele

and the desire to give them your best.

Today, nearly three million satisfied customers whose dream we helped realise, stand

testimony to our success.

Our objective, from the beginning, has been to enhance residential housing stock and

promote home ownership.

Now, our offerings range from hassle-free home loans and deposit products, to property

related services and a training facility.

We also offer specialized financial services to our customer base through partnerships

with some of the best financial institutions worldwide.

Organization & Management

HDFC is a professionally managed organization with a board of directors consisting of

eminent persons who represent various fields including finance, taxation, construction

and urban policy & development. The board primarily focuses on strategy formulation,

policy and control, designed to deliver increasing value to shareholders.

.



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SUBSIDIARY & ASSOCIATE COMPANIES

y HDFC Bank

y HDFC Mutual Fund

y HDFC Standard Life

y Intelenet Global Services Ltd.

y HDFC Chubb General Insurance Company Ltd.

y HDFC Reality

y Other Companies Co-Promoted by HDFC

y HDFC Trustee Company Ltd.

y HDFC Developers Ltd.

y HDFC Venture Capital Ltd.

y HDFC Ventures Trustee Company Ltd.

y Credit Information Bureau (India) Ltd

y Home Loan Services India Pvt. Ltd.



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Vision and Values:-

Vision Statement

³The most successful and admired life insurance company, which mean that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set the

standards in the industry. In short ³The most obvious choice for all.´

INTEGRITY

What is it?

y Honest and Truthful in every action.

y Transparency

y Stick to principles irrespective of outcome.

y Be just and fair to everyone.

Why?

y Integrity is the bedrock on which the company and the expectations of the

customer and employees are built.

y Integrity establishes the creditability of the person defines the character and

empowers one to do justice to the job.

y Enables building confidence and trust, achieving transparency and laying a strong

foundation for building relationship.

y Guiding principle for all walks of life.

.



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CUSTOMER CENTRIC

What is it?

y Understand his expectation by keeping him as the centre ± point.

y Listen actively.

y Understand customer needs and deliver solution.

y Customer interest always supreme.

Why?

y R einforce brand loyalty by complete transparency.

y Customer is the source of revenue for the company.

y Customer is the reason for our existence.

y Ensure that customer chooses our company to do business with.

y Customers¶ goodwill alone can bring more business and more customers.

y Will contribute retention.

PEOPLE CARE

What is it?

y Genuinely understanding the people we work with.

y Guiding their development trough training and support.

y Helping them develop requisite skills to reach their true potential.

y Known them on a personal front.

y Create an environment of trust and openness.

y R espect for the time of others.

Why?

y People are the most valuable assets of the company.



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HDFC have a range of individual and group solutions, which can be easily customized to

specific needs. Our group solutions have been designed to offer you complete flexibility

combined with a low charging structure.

Track R ecord so far

HDFC¶s gross premium income, for the year ending March 31, 2008 stood at R s. 4,859

crores and new business premium income stood at R s. 2,685 crores.

The company has covered over 9, 59,000 lives year ending March 31, 2008.

The various products by HDFC Standard Life include:

INDIVIDUAL PR ODUCTS:

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this

in mind, we have a varied range of Products that you can choose from to suit all your

needs. These will help secure your future as well as the future of your family.

Protection Plans :

You can protect your family against the loss of your income or the burden of a loan in the

event of your unfortunate demise, disability or sickness. These plans offer valuable peace

of mind at a small price Term Assurance Plan

y Loan Cover Term

y Assurance Plan

Investment Plans:



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HDFC¶s plan is well suited to meet your long term investment needs. We provide you

with attractive long term returns through regular bonuses.

y Single Premium Whole Life Plan

Pension Plans:

HDFC¶s Pension Plans help you secure your financial independence even after

retirement.

y Personal Pension Plan

y

Unit Linked Pension Plany Unit Linked Pension Plus

Savings Plans:

HDFC¶s Savings Plans offer you flexible options to build savings for your future needs

such as buying a dream home or fulfilling your children¶s immediate and future needs.

y Unit Linked Young star Plus

y Endowment Assurance Plan

y Unit Linked Endowment

y Unit Linked Endowment Plus

y Money Back Plan

y Children's Plan

GROUP PRODUCTS

One-stop shop for employee-benefit solutions



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HDFC Standard Life has the most comprehensive list of products for progressive

employers who wish to provide the best and most innovative employee benefit solutions

to their employees. We offer different products for different needs of employers ranging

from term insurance plans for pure protection to voluntary plans such as superannuation

and leave encashment

y Group Term Insurance

y GroupVariable Term Insurance

y Group Unit Linked Plan

OTHER PRODUCTS

y R ural Products

y Social Development Insurance Plan

y Tax Benefit Schemes

The premium payment options available to the customers vary from online payment to

direct desk payments at the HDFC Standard Life Branches, by courier services or in drop

boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or

standing instruction mandate. HDFC Standard Life Insurance Company is a customer

oriented corporation and aim at complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly defined on the

official website. Online renewal forms are also available. For any change in personal

details like the contact details or the nominee of the policy or policy benefits, online

servicing is also available. Even the claim procedure has been simplified since affect of

the loss life is irreparable and is thus fully understandable at HDFC Standard Life. A

completely hassle-free process has been formulated to provide maximum convenience.



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Selecting financial consultants

"HDFC's finest investment is in its Human Resources. It draws its

personnel from many disciplines. They are the building blocks on which

the company's performance & productivity is based". Mr. H T Parekh

Founder-Chairman, HDFC Ltd.

HDFC Standard Life is one of the leading life insurance companies having a track record

of declaring bonuses every year since inception. We attribute this success to our people,

who are our most important asset. We believe they are a key facet of the company and it

is their contribution that has enabled us to achieve our current status. Since they deserve

the best, our efforts have been to provide them with the best environment, best culture

and best development opportunities possible.

Be HDFC¶s certified financial consultant.

Here¶s is the unique opportunity to put your career path on the fast track. Join HDFC

SLIC as a financial consultant and help you analyze yours customerµs financial needs,

provide customized financial solutions to each one and conduct reviews on a regular

basis to keep your customer on track.

Along with being a great career move you get associated with HDFC SLIC. India¶s most

respected private life insurance company. We at HDFC SLIC also offer you unmatched

support with various training programmes to help you excel in your endeavor .

A great career move in every way

Zero investment.



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There is no start-up. You have unlimited earning potential.

Flexible work timings.

You can work full-time or part-time, depending on your convenience.

Sunrise industry.

Only 25% of the insurable population in India is insured. And, those insured need higher

insurance cover.

Support every step of the way.

At HDFC STANDAR D LIFE, training is an inherent element of our support system ± at

no extra cost ± for our new financial consultants. Some of our training, guidance and

support initiatives are as follows:-

Basic training and induction

Perfects your knowledge about the insurance industry as well as our products.

IR DA Training

Prepares you for your career as a financial consultant and enables you to pass the IR DA

examination easily.

Disha Training

Hones you selling skills, enables you to understand customer needs and provide need-

based insurance solutions.



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Advanced Training

Upgrades your capability and knowledge through sophisticated training programs customized

for the changing world of financial products and markets.

Endless earning possibilities

Decide your own salary amount.

Your income is directly proportional to the effort put in by you. The more you sell, the more

you earn. And our commission structure (as per IR DA guidelines) has the ability to give you

the maximum benefits for every policy you sell.

Long term earning potential

The policies sold by you will give you a renewed income every year. So every year your

income keeps increasing steadily even if you sell the same number of policies.

Regular income

The company pays the commission you earn every 15 days. This ensures that you get a

regular income when you associate with us.

Swot Analysis of ³HDFC Standard life insurance´ (HDFC)

Strengths

y Localized branches.

y Strong brand name

y Big budget & Willingness to invest in market.



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y Highly educated & well-experienced top management.

y Huge resources as compared to those of rivals.

y HDFC maintains high quality of their products.

y Glamorous, attractive & effective campaigning.

y Wide brand variety to face the competitor¶s variety to face the competitors & to

serve the masses.

y High demand of the product

Weaknesses

y More individuality in staff than conformity with the company¶s goal.

y Lack of advertising material in some areas of region.

y Focusing on bulk orders rather than small ones.

O pportunities

y Increase market share by improving services.

y Target consumers increase in remarkable percentage every year.

Threats

y Loosing market share due to inefficient workforce.

y Decline in the market reputation due to ineffective & delaying.

y Heavy investment.

R elevance of Swot analysis.

y The Swot analysis makes us aware of the strengths which will serve as pillar

to take strategic decision.

y The weakness tells us about the problems confronted by the company and

accordingly the future step to be taken to overcome them.

y Swot analysis projects an idea about the investment area which will yield

more profit as well as the risk concerned.



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COMPANY¶S MISSION:

To be the top life insurance company in the Insurance market.

This not only means being the largest or the most productive company in the

market, but a combination of several things like-

y Customer service of the highest order

y Value for money for customers

y Professionalism in carrying out business

y Innovative products to cater to different needs of different customers

y Use of technology to improve service standards

y Increasing market share



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THE PARTNER SHIP:

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.

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.

MARKET POSITION

HDFC Standard Life Insurance Company Ltd.

In the total market share, LIC has reduced its share from 91% to 70%. This means that

private insurance players have got more margins in their hands which have increased

from 9% to 30% in last 2years only.

In the private market share, HDFC SLIC leads with 39% of the market share in its hand

followed by ICICI PR UDE NTIAL 18% shares and then comes Birla Sun Life with 15%

market shares.

HDFC SLIC has been maintaining its No. 2nd position since last 5 years because of its

prolific product range and commanding brand equity. It has a highest capital base of R s.

925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brand recall

rate of 92% and gives credit of its success to the 5 core values-



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y Integrity

y Customer

y Boundary Less

y Ownership

y Passion



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COMPETITOR PROFILING

Main competitors of HDFC SLIC

LIFE INSURANCE CORPORATION OF INDIA (LIC)

The Life Insurance Corporation (LIC) was established about 52 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.

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 R s 6,000 crore annually to 5.6 million policyholders.

Training activities for agents/advisors:y As per IR DA, 100hrs training is compulsory for 17 days.

y Only classroom training is available.

y Only full-time training is given.

(ICICI Prudential advantage: - Part time option available.)

Training activities for agents/advisors:

y As per IR DA, 100hrs training is compulsory for 17 days.


y Only full-time training is given.



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Commission Structure:

Depends on the plan or the product / policy which the advisor sells to the customer.

Every policy has a commission amount fixed on it as per specifications of IR DA.

Modes & ways through which the company recruits agents:

- Through development officers.

- Through corporate agencies (Bankers and Brokers).

- Carrier agent branch (i) rural carrier agent

(ii) Urban carrier agent.

Current agent force

Around 30000-35000 agents in Delhi

Top 5 USP¶s (Unique Selling Proposition) Of LIC

y TR UST (since 1956), OR G marks survey has rated LIC most trusted branch in

life insurance

y Having a vast network of 2050 branches and nearly 10 lakh agents.

y Best claim performance in the world by Depth and Maturity claim.

y A government-undertaken company ensuring safe and corruption free insurance.

y Variety of plans available to match the customer¶s needs.



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ICICI PRUDENTIAL

ICICI PRUDENTIAL

ICICI Limited is a multi-business corporation that has business interests in telecom

services, bulk pharmaceuticals, electronic components and specialty products. It is

also the service-oriented businesses of healthcare, life insurance and information

technology.

Training activities for agents/advisors:

y As per IR DA, 100hrs training is compulsory.


y Only fulltime training is given.

(HDFC Standard Life advantage: - Part time option available.)

Commission Structure:

y Minimum - 2%

y Maximum ± 40%.

Varies from product to product- 25%, 7.5%, 10% & 15%.

Modes & ways through which the company recruits agents:

y R eference (only)

ICICI PR UDE NTIAL recruits agents only on basis of reference.

Current agent force:

Around 2000-3000 in Delhi.

Top 5 USP¶s (Unique Selling Proposition) Of ICICI PRUDENTIAL:

y Training, which is compulsory for every agent/advisor so that they work

according to the company¶s working style.



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y Emphasizes on whole life products.

y Flexibility of the product to adapt to customers changing needs in future.

y Believes in healthy competition with other life insurance companies.

y Agent is the power .

GOVERNANCE OF INDIAN INSURANCE SECTOR

REGULATORY BODY

Insurance is a federal subject in India. The primary legislation that deals with insurance

business in India is: Insurance Act, 1938, and Insurance R egulatory & DevelopmentAuthority Act, 1999.

The Insurance Regulatory and Development

Authority (IR DA)

R eforms in the Insurance sector were initiated with the passage of the IR DA Bill in

Parliament in December 1999. The IR DA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of the

IR DA¶s online service for issue and renewal of licenses to agents. Since being set up as

an independent statutory body the IR DA has put in a framework of globally compatible

regulations.



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MISSION-IRDA

³To protect the interests of the policyholders, to regulate, promote and ensure orderly

growth of the insurance industry and for matters connected therewith or incidental

thereto.´



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Insurance

Basically, life insurance is nothing but a contract where the insured party or the purchaser

of insurance pays a premium that protects him against specific losses. When planningones life insurance portfolio, one must consider his family's recurring needs like medical

expenses, house rent, provision costs for instance as well as long-term needs that involve

family's set standard of living and their future such as higher education and marriages.

Throughout our living existence, we are faced by numerous risks - failing health,

financial losses, accidents and even fatalities. Insurance addresses all these uncertainties

on financial terms.

Whatever kind of asset a person posses, remains productive for a certain period of time.

Its life to provide benefits is restricted to a short span and when this span finishes, its

capability to give benefits also ends. The owner is aware of this fact, he arranges a

substitute of it so that in case, if asset gets damaged the benefits of it do not go futile. For

instance, a person gets lost his car in an accident; he is deprived of the benefits if any

substitute of it is not available. In such cases, insurance is the key to protect the person

from the losses incurred and reduce its ill effects. Insurance promises to pay an assured

sum to the owner to reduce the losses.



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Why Life Insurance?

We think twice before taking the plunge into buying insurance. Is buying insurance a

necessity now? Spending an 'extra' amount as premium at regular intervals where we do

not see immediate benefits does not seem a necessity at the moment. May be later.

Well we could be wrong. Buying Insurance cannot be compared with any other form of

investment. Insurance gives us a life long benefit and the returns will definitely come but

only when we need it the most i.e. at the right time. Besides buying insurance early in life

is one of the wise decisions we could take. Because the premium we would be paying

would be comparatively lower.

Insurance is not about how much more it can offer us when the stock market is at its

peak. It may not be an attractive investment option. But weigh the pros and cons and

consider how much more it offers at a small price.

Most important of all it provides us with that unique sense of security that no other form

of investment provides. It gives us a sense of financial support especially during that time

of crisis irrespective of the fluctuations in the stock market. Insurance provides for our

career goals right from your childhood years.

If the earning member of the family is no more our child's educational needs will not

suffer. In fact his higher education too will be provided for. We need not spend sleepless

nights thinking about how to save for our child's marriage. Life Insurance will take care

of that typical once-in-a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy can be of utmost

support for the family during such times too. Besides it provides for additional benefits

such as bonuses. We need not worry about our retirement years. The rising prices, taxes,

and our lifestyle will be taken care of easily. And we can relax and spend our old age in

comfort and peace.



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Life insurance today plays a major role in ones life at various stages. Considering the

benefits it offers one cannot but give a thought to buying an insurance policy at the

earliest.



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Chapter-4

REVIEW OF LITERATURE

My Contribution in HDFC SLIC as a project trainee

The task of mine was to make a chain of quality insurance advisors for the company to enhance

its marketing channel. It included the use of different kinds of strategies to convince the persons

to join the company. Activities were

a.) cold calling, in this I used to call people on the data provided by my SDM and telling them

the benefits of being a financial advisor.

b.) meeting people face to face and convincing them to be a financial consultant.

c.) taking part in the canopy activity conducted by the company for the extension of chain of

insurance advisors.

For convincing the person I had to provide him the detailed information of the benefits of

becoming an insurance advisor, discussion of the current reputation of HDFC as a brand and thereasons for joining HDFC only. I used to tell them from the side of company that-

We are partners in your growth and provides you-

1. Attractive payments and benefits

2. Strong reputation

3. High quality Management Support4 Superior Products

5. Excellent customer service

6. High quality Management Support



40

After giving all this information I used to raise their confidence by saying them that they have

the potential to perform the duty of a financial consultant and make use of the opportunity to-

1. To be part of a world-class sales team.

2. Work from his/her (advisor) own office or residence.

3. Work full time or part time.

4. Earn commission, bonus and incentives.

5. No upper limits on earnings.

6. Flexible career.

If the person used to give their consent to be a financial consultant then asking them to complete

required formalities by bringing needed documents.

Main hurdle that I faced while approaching the people to listen to me was their indifferent

attitude towards insurance sector and reluctance to give some time to me. It was very much

difficult for me to make them ready to give their attention towards my business proposal.

Role of an insurance advisor

Advisor provides ongoing financial advice to his /her client/prospect. In official term prospect is

a person who can buy life insurance. Advisor studies the prospects needs and persuade them to

buy a policy.

Completes all formalities for proposal of new insurance, including filling up forms, collecting

premium, arranging medical examination, collecting proofs (of age/income), reports and

information required by the underwriter.

After having sold a new insurance policy, the advisor has to ensure that the policy continues

without a lapse till it becomes a claim. For that reason an advisor has to do the following:-



41

1. Keep in touch with the policy holder to make sure that renewal premiums are paid in time.

2. Ensure that nominations are made or changed, if necessary.

3. Assist in collecting claim amounts.

An insurance advisor acts as a link between the clients and the company. A lot depends on it to

bring new business for the company But an advisor to us means much more than a salesman or a,

saleswoman. They are regarded as an ambassador of the company and considered as a biggest

strength of the company. So, the recruitment and development of an insurance advisor needs a

great attention.

Opportunities in front of a financial consultant

1. No start up capital is required to becoming an advisor.

2. Flexible working environment.

3. To be his/her own boss.

4. Unlimited earning potential.

5. To be part of world class team

Benefits of being a financial advisor-

Commission:- Different products will have different commission structures. This commission

varies between 7.5% to 40%.

Renewal Commission:- It is paid at the following rates:

2nd

yr: onwards.

Bonus: - Every year company declares bonus in favor of financial advisors depending upon the

company¶s over all profit.

Incentives:- Financial advisors are provided incentives when they achieve certain targets.



42

Company rates for financial consultants

Basic 1st year commission for conventional plans (for policies issued prior to 21st march

2007)

Firs year commission for conventional plans (for policies issued on or after 21st march 2007)

First year premium conventional policies issued on or after 21st

march 2007.

Name of the plan 1st

year commissionEndowment assurance plan 40%

Money back plan 40%

Children¶s plan 40%

Term assurance plan 25%

Loan cover term assurance plan 25%

Personal pension plan 7.5%

Name of the plan Premium paying term of 15

years & above

Premium paying term of

less than 15 years

Endowment assurance plan 25% 20%

Money back plan 25% 20%

Children¶s plan 25% 20%

Term assurance plan 20% 15%

Loan cover term assurance

plan

20% 15%

Personal pension plan 7.5% 7.5%



43

Basic commission payable on single premium conventional policies:

Name of the plan Basic commission as a percentage of

single premium received

Single premium whole of LIC 2%

Term assurance plan 2%

Loan cover term assurance plan 2%

Personal pension plan 2%



44

Chapter-5

RESEARCH METHODOLOGY

The term methodology refers to the way to systematically solve the research problem. In this

various steps are followed to find the solution of the problem. Certain steps are :-

1.) Identification of problem

2.) Analysis of problem3.) Choosing the method to solve the problem

4.) Collection of data

5.) Analysis of data

6.) Conclusion

Research Ob jective

To make a chain of financial advisors so that they can work as insurance advisor for the HDFC

Standard Life Insurance Limited.

Type of Research

Exploratory in nature-

Type of research was exploratory in nature because the study included the tapping of differentareas to find the suitable financial advisor for the company.

Data Collection



45

Primary data

Secondary data

PRIMARY DATA

Sample unit: -

The research process was done by interacting with number of customers during the activities

performed, which included, markets, cold calling, canopies, etc. Sample Design consists of

Simple R andom Sampling.

Sample size: - 100 people

Method of collection: -

Field procedure for gathering primary data included interview schedule in which the

questionnaires were filed by the interviewer.

Research Instrument:

Questionnaire

The questionnaire was formulated by keep in mind the following Points: -

y Giving the respondents clear comprehension of the question.

y Inducing the respondents to co-operate.

y Giving instructions as to what is wanted.

y Identifying the needs to be known.

Limitations:The following were the limitations that were there during the course of the study:

1. Limited time period.

2. Less number of respondents.

3. Biasness of the respondents.



46

SECONDARY DATA

Method of collection data:-Secondary data was collected from the various second hand data collection sources like,

magazines provided by HDFC Standard Life Insurance Company, Secondary data was also

provided by company executives, from Internet, Companies annual report etc.

Sources of secondary data:-

Magazines,

Newspapers,

www.google.com (Internet search engines)

And the data provided by the external guide.



47

Chapter-6

Data analysis and Interpretation

Data Analysis is done by taking sample size of 100 respondents who were approached for

being financial advisor for the company. It has been shown with the help of following

graphical presentation.



48

1. Occupation

Error! Reference source not found. Interpretation:-

25% people are in govt. job.

30% people are in private job.

The percentage of students is 25%.

20% people are engaged in other kinds of jobs.

2. Marital status

Error! Reference source not found. Interpretation:-

Occupation No. of people %

Govt. 25 25

Private 30 30

Student 25 25

Other 20 20

Total 100

Married

No. of

people %

Yes 65 65

No 35 35



49

35% people are married.

65% people are not married.

3. Pan Card Holders

Pan

Card

No. of

persons %

Yes 60 60

No 40 40

Error! Reference source not found. Interpretation;-

The percentage of pan card holders is 60%.

40% people do not possess pan card.



50

4. Household income

Household income No. of respondents

.>2 lakhs 48%

2 to 4 lakhs 30%

< 4 lakhs 22%


The persons having annual household income less than 2 lakhs are 48% ,between 2 to 4 lakhs

are 30% and more than 4 lakhs are 22%.

5. Job satisfaction

Job

satisfaction %

yes 55%

No 45%



51


Among all respondents 55% persons are satisfied with their current job while rest 45% are

not.

6. People known by respondents

No. of people known by respondents

0 to 40

10%

40 to 80

27%

Above 80

63%

Interpretation:-



52

Out of 100 people, 10% people know persons between0 to 40, 27% says that they know 40 to

80 persons and 63 % are familiar with more than 80 persons.

7. If offered a chance to earn extra income

Chance to earn extra income No. of respondents %

Yes 88 88

No 12 12



53

Chance to earn extra income

88%

12%

Yes

No

Interpretation:-

88% respondents would like to earn extra while rest 12 % were not bothered to earn extra

income.

8.If agrees to earn extra, then how much?

Income No. of people %

> 50,000 45 45

50,000 to 2lakhs 36 36

< 2 lakhs 19 19



54

No. of people to earn within the given range

45%

36%

19%

45%

36%

19%

> 50,000

50,000 to 2 lakhs

< 2 lakhs

Interpretation:-

The percentage of people is 45, those who would like to earn more than 50,0000.

36% people would like to earn between 50,000 to 2 lakhs and the intensity to earn more than

2 lakhs is possessed by 19 % people.

8. Time devoted for extra income

Time devoted to earn extra

income No. of respondents %

< 4 hours 36 36



55

2 to 4 hours 52 52

> 2 hours 12 12

3 6

5 2

1 2

3 6

5 2

1 2

0 20 40 60 80 100 120

< 4

¡

urs

2 t¡

4

¡

urs

> 2

¡

urs

No. of rspondents ¢

Interpretation:-

36 % respondents could devote more than 2 hours, 52% could give their 2 to 4 hours and the

capacity to give more than 4 hours is possessed by 36%.

Chapter-7

FINDINGS



56

INSURANCE SECTOR:-

y

Generally people are not interested in joining the insurance sector

y People are still unaware of the benefits of the private insurance sectors, they still

believe that LIC is the most reliable one.

y The craze for becoming an agent has gone down because of the so many

insurance companies in the market and all of them aiming to increase their agents.

y R ural people are not fully aware of the commission of the agents.

y If offered 88% respondents would like to earn extra while rest 12 % were not

bothered to earn extra income.

y Only 25% of the insurable population in India is insured. And, those insured need

higher insurance cover.

HFDC SLIC :-

y The company is too much flexible in considering the qualifying score of its

candidates who they select to become financial consultants.



57

y The fee charged by the company for financial consultant is a bit high in

comparison to the other insurance companies.

y HDFC¶s ratio of the candidates becoming a consultant and getting licensed is just

25% which is low in comparison of the other insurance companies.

y Though the input output ratio of the company in terms of becoming consultants

for the company is low, then also company is growing their as their EPI is good

enough to cover up their losses in channel development.



58

Chapter-8

Limitation of projecty It was not possible to understand thoroughly about

the different marketing aspects of the Financial Consultant

within 60 days.

y As stipend, money was not given it was difficult to

continue the project work.

y All the work was limited in some limited areas of

Gurgaon so the findings should not be generalized.



59

Chapter-9

SuggestionsTry to make them aware as much as possible regarding product profile which is best in

the market like life time, life time pension and smart kids.

y Convince them by saying that we also have an evening class or on line

training program so that; that person can easily afford this time.

y If the person will make one policy he/she will be able to earn that much of

money by means of commission.

y In N.C.R average fixed salary is 2500/-3500/ But from this kind of job

profile if person is eligible then he/she can earn at least 5000,' on words.

y I observed that people in general have the perception that insurance is only for

upper class people. And it is useful in case of tax saving. People should be made

realize that it is a great way of saving for the future too. There is a high need for

education and awareness of the benefits that insurance policies provide.



60

BIBLOGRAPHY

The various source from where I collected data¶s are as follows.

y Internet Sites:

www.hometrade.comwww.hdfcslic.com

www.indiahousing.com

y News paper:

The Economic Times

Times of India

Business standard.

y

Magazines:Business Today

Insurance World

Money

y Books:

Marketing Management (Philip Kotler)

R

esearch Methodology,(C.R .K OTHAR I)



61

Questionnaire

HDFC Standard Life Insurance

Name- ______________________________________

Qualification- ________________________________

Occupation- Govt. Pvt. Student other

Married- Yes No

Address- __________________________________________

__________________________________________

Contact No. - Mobile ________________________

Land line ______________________

Pan card- Yes NO

1) Currently working with which company- __________________________

2) House hold income- ___________________________________________

3) Are you satisfied with present job- Yes No



4) Number of people known by you-

a) 0-40

b) 40-80

c) Above 80

5) Given a, chance, would you like to make extra income- Yes No

6) How much extra income would you like to earn _________________________

7) How much time would you like to devote to earn extra income ______________

8) Your suggestion about HDFC as a brand

______________________________________________________________________________

hdfc project pawan nagar01

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