Project Report on A Detailed study of Recruitment and Retention Strategies of Financial Consultants in Life Insurance Industry with special

reference to HDFC SLIC

Submitted in partial fulfilment of the requirements For the award of the degree of Bachelors of Business Administration (BBA) Semester V (Paper Code BBA)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

GUIDE: Mr. Sukhvinder S

Submitted by:
Siddharth Rawat

BBA M1 (Morning) 03790301711 Batch-2011-2014

Institute of Innovation in Technology and Management D 27-28 Janakpuri New Delhi, Delhi 110058
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Certificate

I,

Mr. Siddharth Rawat, Roll No. 03790301711

certify

that

the

Major

Project

Report/Dissertation (Paper Code BBA-209) entitled A Detailed Study of recruitment and retention strategies of Financial Consultants in Life Insurance Industry with special refrence to HDFC SLIC is completed by me by collecting the material from the referenced sources. The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student: Date: Certified that the Major Project Report (Paper Code BBA-209) entitled A Detailed Study of recruitment and retention strategies of Financial Consultants in Life Insurance Industry with special reference to HDFC SLIC done by Mr. Siddharth Rawat, Roll No. 03790301711, is completed under my guidance.

Signature of the Guide: Name of the Guide: Designation: Assistant Professor Date:
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ACKNOWLEDGEMENT
Project work is never the work of an individual. It is more of combination of ideas, suggestions, and contribution & work involving many jobs. One of the most important parts of writing a report is the opportunity of thanks all those who have contributed to it. The list of expression of thanks, no matter how extensive, is always incomplete & inadequate. This acknowledgment is no exception.

I want to express my sincere gratitude towards who provided me all the expert guidance & invaluable suggestions for the completion of my project on A Detailed Study of recruitment and retention strategies of Financial Consultants in Life Insurance Industry with special refrence to HDFC SLIC I would like to thank my classmates & all those who directly or indirectly helped me in one or the other way in the successful completion of the project.

Signature:

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 7080% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and HDFC Standard Life Insurance Company Ltd has given me the opportunity to work and get experience in highly competitive and enhancing sector. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits Of the company can be explained to the customer .

TABLE OF CONTENTS

CHAPTER 1: ABOUT COMPANY About HDFC HDFC Parentage Brief Profile Of The Board Of Directors Company Vision And Mission Associate Companies Corporate Social Responsibility CHAPTER 2: SWOT ANALYSIS SWOT ANALYSIS of HDFC CHAPTER 3: FUNCTIONAL ANALYSIS Functional Department of HDFC SLIC Products & Services of HDFC SLIC Financial Analysis CHAPTER 4: LESSON LEARNT About Financial Consultants Benefits of being a Financial Consultant Professional Training programs and continued guidance Research Methology

Page No. 2-4 5-6 7-10 11 12-13 14-15

17-19

21-25 26-36 37-44

46-51 52-53 54 55-56

Data analysis And Interpretation Findings Limitation Conclusion Recommendation & suggestion Questionnaire Bibliography

57-69 70 71 72 73 74-76 77

LIST OF FIGURES Figure No 1 2 3 4 5 6 7 CSR Framework Term Plans Childrens Plan Retirement Plans Retirement Plan-2 Savings & Investment Plans Health Plan Title Page No 15 27 29 30 31 33 35

LIST OF ABBREVIATIONS

S No 1 2

Abbreviated Name HDFC SLIC

Full Name Housing Development Finance Corporation Standard Life Insurance Company

CHAPTER-1 ABOUT COMPANY

About HDFC Introduction

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HDFC Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.37% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 25 retail and 9 group products in its portfolio, along with 10 optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Life continues to have one of the widest reaches among new insurance companies with about 500 branches in India touching customers in over 900 cities and towns. The company has also established a liaison office in Dubai. HDFC Life has a strong presence in its existing markets with a strong base of Financial Consultants.

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country The corporation has had a series of share issues raising its capital to Rs. 119 crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8,77,000 lives year ending March 31, 2007.

HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE, with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing Company in India for the last 27 years.

DESCRIPTION-I

Incorporated in 1977 as the first specialized mortgage company in India. Almost 90% of initial shareholding in the hands of domestic intuitions and retail investors. Current 77% of shares held by foreign institutional investors.

Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In:

HDFC Standard Life insurance Company- HDFC holds 78.07 %. HDFC Asset Management Company HDFC holds 50.1% HDFC Bank- HDFC holds 22.25%. Intel net Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%.

DISCRIPTION-II

Loan Approvals (up to Dec 2013)

Rs. 805 billion. (US $ 18.30 bn.) Rs.669 billion (US $ 15.20 billion) 2.5 million.

Loan Disbursements (up to Dec. 2013)

Housing Units Financed Distribution Offices Outreach Programs

181 90

HDFC Parentage

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About HDFC Ltd.

HDFC Ltd. is Indias premier housing finance company and a well - established financial conglomerate. It has assisted more than 40 Lakh customers in acquiring their own home through cumulative housing loan disbursements of over Rs. 4,25,000 crore. With a wide network of 326 offices, it caters to 2,400 towns and cities across India. HDFC Ltd has International offices in London, Dubai and Singapore with service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia Al Khobar, Jeddah and Riyadh to cater to non-resident Indians and PIOs. Customer Service and satisfaction has been the mainstay of the organization since its inception, with HDFC setting a benchmark for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad for setting up of housing finance companies - assisting different countries including Sri Lanka, Indonesia, Bhutan, Nepal, Ghana, Thailand, Philippines, Egypt, Maldives, Mauritius, Bangladesh, Jamaica and Russia among other countries.

Standard Life
Established in 1825, Standard Life is a leading provider of long term savings and investments to around 6 million customers worldwide. Headquartered in Edinburgh, Standard Life has around 8,500 employees internationally.

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The Standard Life group includes savings and investments businesses, which operate across the UK, Canada, Europe, Asia and Middle East; workplace pensions and benefits businesses in the UK and Canada; Standard Life Investments, a global investment manager, which manages 167bn globally; and its Chinese and Indian Joint Venture businesses. At the end of December 2012 the Group had total assets under administration of over 218bn. Standard Life plc is listed on the London Stock Exchange and has approximately 1.5 million individual shareholders in over 50 countries around the world. It is also listed in the Dow Jones Sustainability World Index, ranking it among the top 10% of sustainable companies in the world.

Brief Profile of the Board of Directors

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Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and Director of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in May 2007, having been Deputy Chairman since March 2006. He became a director of the Standard Life Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UKs Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders worldwide investment banking activities from 1998 to 1999. He is appointed as Director of the Company from April 1, 2013. He has completed Master of Arts, Master of Science in Chemistry, Merton College, Oxford University and NATO-CCMS Fellowship Wolfsan College, Oxford University.

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Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants.

Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in Law and holds a Master's degree in Economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000 and Deputy Managing Director in 2007. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

Mr. David Nish joined Standard Life on 1st November 2006 as Group Finance Director and remained in that position until December 2009. He is the Chief Executive at Standard Life Plc. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010.
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Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute, Fellow of the Royal Institute for the Encouragement of the Arts, Manufacture and Commerce, BA, MA.

Mr. Gautam R. Divan is a practicing Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalized banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.

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Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honors) from Birla Institute of Technology and Sciences.

Our Vision & Values Our Vision

'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'.

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Our Values

Values that we observe while we work:

Integrity Innovation Customer centric People Care "One for all and all for one" Team work Joy and Simplicity

Associate Companies
HDFC Limited

HDFC Bank

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HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

HDB Financial Services

HDFC Securities

HDFC RED

Other Companies

HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd.

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HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd. HDFC Investments Ltd. HDFC Holdings Ltd. Credit Information Bureau (India) Ltd HDFC Securities HDB Financial Services

Corporate Social Responsibility (CSR)

HDFC Life has always believed that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. We focus on maintaining the quality of our business and creation of long-term value for policy holders and stakeholders. For us, Corporate

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Responsibility comes first. We also believe that business must go hand in hand with a sense of responsibility towards all stakeholders including employees and the society. Swabhimaan, HDFC Lifes Corporate Social Responsibility (CSR) initiative- aims to play a positive role by contributing towards the advancement of society and conservation of environment while engaging with our stakeholders. The objective of Swabhimaan is to contribute to improve and enhance the quality of life of communities in which the company operates thereby helping to create an equitable society. HDFC Life is committed to being a socially responsible corporate and its CSR framework is governed by a formal policy. Besides, the Companys employees also actively embrace and participate in the Companys community initiatives to accelerate inclusive growth and strengthen environment protection.

HDFC Life CSR framework

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Figure-1

Achievements Won the 2nd Best Marketing Campaign awards during the India Giving Challenge 2012 Won the 2nd Best Marketing Campaign and 2nd Most Innovative Fundraising Campaign awards during the India Giving Challenge 2011 HDFC Life was awarded the Yuva Hero Award in July 2011 for contribution towards the educational support of lesser privileged children Won the Most innovative fundraising campaign award during the India Giving Challenge 2010 HDFC Life was awarded with Yuva Unstoppable Corporate Icon Award from Dr. APJ Kalam in Sept2010

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CHAPTER-2 SWOT ANALYSIS

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SWOT ANALYSIS Of HDFC Life

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.

Strength
1. Customized and Flexible Insurance Solutions and large product portfolio 2. Robust Risk control Framework 3. Network of 500 branches and agents across 700 cities 4. Strong Financial Expertise and popular advertising 5. Globally, Standard Life plc has 1.5 million shareholders in more than 50 countries and over 6 million customers 6. Alliance between HDFC and Standard Life giving a strong brand backing 7. Domestic image of HDFC supported by Prudentials international image is strength of the company. 8. Strong and well spread network of qualified intermediaries and sales person 9. Strong capital and reserve base. 10. The company provides customer service of the highest order. 11. Huge basket of product range which are suitable to all age and income groups. 12. Large pool of technically skilled manpower with in depth knowledge and understanding of the market
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Weakness
1. Controversies like job cuts, racism and data loss have affected image 2. Less penetration in rural areas 3. Heavy management expenses and administrative costs. 4. Low customer confidence on the private players 5. Vertical hierarchical reporting structure with many designations and cadres leading to power politics at all levels without any exception. 6. Poor retention percentage of tied up agents.

Opportunity
1. Growing rural market and better opportunities in the semi-urban areas.

2. Group Insurance through large employers 3. Insurable population According to ING only 10% of the population is insured, which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured. 4. There will be inflow of managerial and financial expertise from the worlds leading insurance markets. Further the burden of educating consumers will also be shared among many players. 5. International companies will help in building world class expertise in local market by introducing the best global practices.

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6. Insurance liberalization in India is expected to result in a wider choice of major commercial insurance covers, such as fire, export credit, and product liability etc.

Threats
1. Regular entering of the new life insurance companies the market growing day by day. 2.The global bigwigs entering the insurance market have expertise in the field and are in a position to drive the market through their core competence in insurance. 3. Liberalization in this sector will cause market disorder because of fierce competition and the domestic insurers will lose their base. 4. Competition will bring pressure on profit margins and underscore the need for better control on claims, cost and management expenses. 5. The company is also facing some threat from the existing private players in the industry. 6. Due to entry of banking sector to underwrite the insurance business, it will pose a serious challenge in motor and personal lines of insurance with their wide area network of branches and their strong customer relationships. Like SBI Life Insurance.

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CHAPTER-3 FUNCTIONAL ANALYSIS

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FUCTIONAL DEPATMENT OF HDFCSLIC Customer service and Operation

The Operations department oils the work processes between the customer andthe company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. The Vision at Customer Service is to deliver 'World Class Service' at every opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country.

Information Technology
The Information Technology function at HDFC Standard Life Insurance is committed to enable business through the use of technology. It is segmented into 4groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application.

Marketing
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The Marketing function at HDFC Standard Life Insurance covers an array of activities - brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture HDFC Standard Life Insurance

Corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. The team achieves this through target database acquisition and communicating customized product information through e-mailers, telemarketing and innovative direct mailers.

Sales
Is the act of meeting buyers and providing them with a service for a negotiated compensation? It forms an integral part of commercial activity. Selling is a practical implementation of marketing; it often forms a separate grouping in a corporate structure, employing separate specialist operatives known as Sales persons (Singular: salesperson). Sales are considered by many to be a sort of persuading art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesperson relates his offering of a product of service in return enabling the buyer to achieve his goal in an economic.

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Sales/Marketing relationship
The Marketing department's goal is to bring people to the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations . In most large corporations, the marketing department is structured in similar fashion to the sales department and the managers of these teams must coordinate efforts in order to drive profits and business success. Driving more customers "through the door" gives the sales department a better chance by ratio of selling their product to the consumer Distribution Is one of the 4 aspects of Marketing a distributor is the middleman between the manufacturer and retailer. After a product is manufactured it is typically shipped (and usually sold) to a distributor. The distributor then sells the product to Retailers or customers.

The internal market Many of the marketing principles and techniques which are applied to the external customers of an organization can be just as effectively applied to each subsidiarys, or each departments, 'internal' customers. In some parts of certain organizations this may in fact be formalized, as goods are transferred between separate parts of the organization at a `transfer price'. To all intents and purposes, with the possible exception of the pricing mechanism itself, this process can and should be viewed as a normal buyer-seller relationship. The fact that this is a captive market, resulting in a `monopoly price', should not discourage the participants from employing marketing techniques. Less obvious, but just as practical, is the use of `marketing' by service and administrative departments; to optimize their contribution
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to their customers' (the rest of the organization in general, and those parts of it which deal directly with them in particular)

Finance
Finance function in HDFC Standard Life Insurance is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the

regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of

HDFC Standard Life Insurance life. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management, information security assessment and business continuity assessment.

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HR The people strategy of HDFC Standard Life Insurance is "To build committed team with a culture of innovation, learning and growth. The Human Resource Function at HDFC Standard Life Insurance Drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and segmented training architecture enable it to deliver value to organization Business The Business Excellence function is committed to building a quality mindset across the organization Industry that has adopted the Six Sigma Methodology for process efficiency and measurement.

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Product & Services of HDFC Slic Term Plans

Why do I need Term Plans?

Term Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them in case of your untimely demise or critical illness. Securing the future of one's family is one of the most important goals of life. Term Plans go a long way in ensuring your family's financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss.

For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amit's real income would have been around Rs. 10, 00,000/per annum. However, in case of Amit's unfortunate demise at an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.

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Figure-2

However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Admit provide a financial cushion of up to Rs. 10, 00,000/- for his family over a period of 25 years.

Types of Term Plans Our range of Term Plans includes HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

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Childrens Plans Why do I need Childrens Plans?

Childrens Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style.

Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.

Today, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree.

An illustration of how education expenses could rise with passing time due to inflation

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Figure-3

So, how can you cope with these costs? Childrens Plans help you save steadily over the long term so that you can secure your child's future needs, be it higher education, marriage or anything else. A small sum invested by you regularly can help you build a decent corpus over a period of time and go a long way in providing your child a secured financial future along with

Types of Children's Plans

Our range of Children's Plans includes

Conventional Plans HDFC Children's Plan

Unit Linked Insurance Plans HDFC SL YoungStar Super II HDFC SL YoungStar Super Premium

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Retirement Plans
Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today.

India's average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years.

Figure-4

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However, skyrocketing costs can throw even a well-laid plan off balance. With costs rising every day, you can just imagine how high they will be when you are ready to hang up your boots. So, what should you do to counter this? It's time to plan your retirement and that too sooner than later.

Figure-5

The above illustration shows how with each passing year your annual savings requirement would increase. For instance, if you are 30 years old and plan to retire at 60, then, with a current annual expenditure of Rs. 3,00,000/- , you would need a corpus in excess of Rs. 2,00,00,000/- to maintain your living standards, assuming you live till 85 years and the inflation rate is 4%. To build this retirement corpus, you need to invest Rs 3, 60,000/- per annum in a retirement plan that offers 8% returns per annum. In case you delay planning your retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per annum.

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Types of Retirement Plans Our range of Retirement Plans includes Type Regular Premium Single Premium/ Investment Conventional Plans

Unit Linked Plans

Insurance

HDFC Personal Pension Plan

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Savings & Investment Plans

You have always given your family the very best. And there is no reason why they shouldn't get the very best in the future too. As a judicious family man, your priority is to secure the wellbeing of those who depend on you. Not just for today, but also in the long term. More importantly, you have to ensure that your family's future expenses are taken care, even if something unfortunate were to happen to you.

A big factor that you need to consider while building your wealth is inflation. It has a dual impact on your hard-earned savings. Inflation not only erodes your current purchasing power but also magnifies your monetary requirements for the future. Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.

Figure-6

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However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save nearer to Rs 50,000/- annually to reach your targeted savings at the age of 50 Years, if you consider inflation.

Our Savings & Investment Plans provide you the assurance of lump sum funds for your and your family's future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure your family a certain sum by way of an insurance cover. With HDFC Standard Life's range of Saving & Investment Plans, you can therefore ensure that your family always remains financially independent, even if you are not around.

Types of Savings & Investment Plans Our range of Savings & Investment Plans includes Type Regular Premium Conventional Plans

Unit Linked Insurance Plans HDFC SL New Money HDFC SL ProGrowth Super II Back Plan HDFC Assurance Plan# HDFC Savings Assurance Plan^ HDFC Endowment Assurance Plan HDFC Single Premium Whole of Life Insurance Plan

Single Premium/ Investment

HDFC ProGrowth Maximiser HDFC SL Crest

SL

Limited Premium Payment

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Health Plans
Health plans give you the financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence.

In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect the most important asset that we have-our health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

Figure-7

Source: National Commission on Macroeconomics and Health Report 2005.

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Note: Current figures are for the year 2000(Cardiovascular diseases)), 2001 (COPD and Asthma), 2004 (Cancer) and 2005(Diabetes and Mental Health). All figures above are on a per lakh basis.

As can be seen in the above chart, lifestyle diseases are set to spread at disturbing rates. The result-increased expenditure. In many cases, people need to borrow money or sell assets to cover their medical expenses. All it takes is a suitable plan to help you overcome the financial woes related to your health by paying marginal amounts as premiums. For example, if you are 30 years old, then a mere sum of approximately Rs 3500* annually (exclusive of taxes) can provide you a health insurance plan of Rs 5 lakh over a period of 20 years, and a worry-free future for you and your family.

Types Of Health Plans

Our range of Health Plans includes

HDFC Critical Care Plan HDFC SurgiCare Plan

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Financial Analysis Year-2011-12PROFIT & LOSS ACCOUNT FOR THE QUARTER ENDED 30TH JUNE, 2011
Shareholders Account (Non-technical Account) Particulars Sche dule For the quarter For quarter ended ended 30th June, June, 2011 2010 (`'000) (`'000) the 30th

Amounts transferred from the Policyholders Account (Technical Account) Income From Investments (a) Interest, Dividends & Rent Gross (b) Profit on sale/redemption of investments (c) (Loss on sale/ redemption of investments) (d) Transfer / gain on revaluation / change in fair value (e) Amortisation of (premium)/discount on investments Other Income TOTAL (A) Expenses other than those directly related to the insurance Bad debts written off Transfer to Policyholders' fund Provisions (Other than taxation) (a) For diminution in the value of investments (Net) (b) Provision for doubtful debts (c) Others TOTAL (B) Profit/ (Loss) before tax Provision for Taxation Profit / (Loss) after tax APPROPRIATIONS (a) Balance at the beginning of the year (b) Interim dividends paid during the year (c) Proposed final dividend (d) Dividend distribution tax (e) Transfer to reserves/ other accounts Profit / (Loss) carried forward to the Balance Sheet
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101,896 19,553 (48) (44) 5 121,362 1,476 28,253 29,729 91,633 91,633 (15,654,988) (15,563,355)

27,786 81,544 158,647 (318) (873) 8 266,794 476 1,017,012 1,017,488 (750,694) (750,694) (14,664,966) (15,415,660)

BALANCE SHEET AS AT 30TH JUNE, 2011

As at

As at

As at

30th June, Schedul 2011 e (`'000) SOURCES OF FUNDS SHAREHOLDERS FUNDS: SHARE CAPITAL L-8, L-9 19,948,801 Share application money received pending allotment of shares RESERVES AND SURPLUS L-10 2,204,624 CREDIT/[DEBIT] FAIR VALUE CHANGE ACCOUNT (2,536) Sub-Total BORROWINGS L-11 POLICYHOLDERS FUNDS: CREDIT/[DEBIT] FAIR VALUE CHANGE ACCOUNT POLICY LIABILITIES INSURANCE RESERVES PROVISION FOR LINKED LIABILITIES Sub-Total Funds for Future Appropriations Funds for future appropriation - Provision for lapsed policies unlikely to be revived Surplus in Revenue Account pending recommendation for allocation from Appointed Acturary till year end. TOTAL 22,150,889 -

30th June, 31st March, 2010 2011 (`'000) (`'000)

19,693,000 19,948,801

735,300 573,692

2,206,790

44,855

(350)

21,046,847 22,155,241 -

(47,519) 53,244,610 209,159,146 262,356,237 1,900,376

87,131 (15,447) 38,101,094 51,233,325 170,772,73 5 205,231,336 208,960,96 0 256,449,214 2,032,538 1,917,148

2,938,888

1,306,625 2,555,106

534,049 289,880,439
44

233,346,97 0 283,076,709

APPLICATION OF FUNDS INVESTMENTS Shareholders L-12 Policyholders L-13 ASSETS HELD TO COVER LINKED L-14 LOANS FIXED ASSETS CURRENT ASSETS Cash and Bank Balances Advances and Other Assets Sub-Total (A) L-15 L-16

5,749,843 59,012,793

6,859,474 6,999,708 43,298,429 53,349,840 170,772,73 5 205,231,336 41,819 331,239

209,159,146 333,921 2,318,922

3,051,434 2,395,729

L-17 L-18

1,826,073 6,203,611 8,029,684 11,921,748 131,367 12,053,115 (4,023,431)

1,905,438 3,837,312 4,275,788 6,770,283 6,181,226 10,607,595 12,082,369 13,037,550 191,438 150,102 12,273,807 13,187,652 (6,092,581) (2,580,057)

CURRENT LIABILITIES L-19 PROVISIONS L-20 Sub-Total (B) NET CURRENT ASSETS (C) = (A B) MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) L-21 DEBIT BALANCE IN PROFIT & LOSS ACCOUNT (Shareholders Account) DEBIT BALANCE IN REVENUE ACCOUNT (Policyholders' Account) TOTAL

15,563,355

15,415,660 15,654,987

1,765,889 289,880,439

1,693,927 233,346,97 0 283,076,709

45

CONTINGENT LIABILITIES As at June, As As at at 30th June, 31st March, 2010 2011 (`'000) (`'000) 6,370 4,838

Particulars 30th 2011 (`'000) 1) Partly paid-up investments 2) Claims, other than against policies, not acknowledged as debts by the company 3) Underwriting commitments outstanding (in respect of shares and securities) 4) Guarantees given by or on behalf of the 5) Statutory demands/ liabilities in dispute, not provided for 6) Reinsurance obligations to the extent not provided for in accounts 7) Others TOTAL

4,838

5,473,402

2,990,733 7,001,010

5,478,240

2,997,103 7,005,848

46

Year-2012-13
PROFIT & LOSS ACCOUNT FOR THE QUARTER ENDED 30th JUNE, 2012 Shareholders Account (Non-technical Account) Particulars Schedule For the quarter ended 30th June, 2012 (`'000) For the quarter ended 30th June, 2011 (`'000)

Amounts transferred from the Policyholders' Account (Technical Account) Income From Investments (a) Interest, Dividends & Rent Gross (b) Profit on sale/redemption of investments (c) (Loss on sale/ redemption of investments) (d) Transfer / gain on revaluation / change in fair value (e) Amortisation of (premium)/discount on investments Other Income TOTAL (A) Expenses other than those directly related to the insurance business Bad debts written off Provisions (Other than taxation) (a) For diminution in the value of investments (Net) (b) Provision for doubtful debts (c) Others Contribution to the Policyholders Fund TOTAL (B) Profit/ (Loss) before tax Provision for Taxation Profit / (Loss) after tax APPROPRIATIONS (a) Balance at the beginning of the period (b) Interim dividends paid during the period (c) Proposed final dividend (d) Dividend distribution tax (e) Transfer to reserves/ other accounts Profit / (Loss) carried forward to the Balance Sheet
47

120,128 14,489 (577) 1 134,041

101,896 19,553 (48) (44) 5 121,362

15,187 28,479 43,666 90,375 5,222 85,153

1,476 28,253 29,729 91,633 91,633

(12,944,833) (12,859,680)

(15,654,988) (15,563,355)

BALANCE SHEET AS AT 30th JUNE, 2012 Schedu le As at 30th June, 2012 (`'000) SOURCES OF FUNDS SHAREHOLDERS FUNDS: Share Capital Reseve and Surplus Credit/[Debit] Fair Change Account L-8, L19,948,801 9 L-10 2,200,654 Value (56,073) 22,093,382 (2,536) 22,150,889 (52,160) 22,098,017 19,948,801 2,204,624 19,948,801 2,201,376 As at 30th June, 2011 (`'000) As at 31st Mar, 2012 (`'000)

Sub-Total BORROWINGS L-11 POLICYHOLDERS FUNDS: Credit/[Debit] Fair Value Change Account Policy Liabilities Insurance Reserves Provision For Linked Liabilities Add: Fair Value change Provision For Linked Liabilities Funds for discontinued policies i) Discontinued on account of non-payment of premium ii) Others Sub-Total Funds for Future Appropriations Funds for future appropriation - Provision for lapsed policies unlikely to be revived Surplus in Revenue Account pending recommendation for allocation

(398,008) 78,197,917 236,804,345 417,190 237,221,535

(47,519) 53,244,610 193,744,026 15,415,120 209,159,146

(340,785) 73,865,111 230,603,98 3 4,440,774 235,044,75 7

2,077,931 16,362 317,115,737 828,853

262,356,237 1,900,376

1,042,027 11,221 309,622,33 1 1,251,005

3,363,765

2,938,888

3,352,468

924,063
48

534,049

from Appointed Acturary till year end 336,323,82 1

TOTAL APPLICATION OF FUNDS INVESTMENTS Shareholders L-12 Policyholders L-13 ASSETS HELD TO COVER LINKED LIABILITIES L-14 LOANS FIXED ASSETS CURRENT ASSETS Cash and Bank Balances Advances and Other Assets Sub-Total (A) L-15 L-16

344,325,801

289,880,439

8,464,096 83,397,339

5,749,843 59,012,793

5,894,173 79,902,644 236,098,00 5 317,628 2,795,451

239,315,828 318,474 2,779,277

209,159,146 333,921 2,318,922

L-17 L-18

2,980,439 6,030,537 9,010,976 11,660,539 159,331 11,819,870 (2,808,894)

1,826,073 6,203,611 8,029,684 11,921,748 131,367 12,053,115 (4,023,431)

5,475,639 7,433,556 12,909,195 15,002,656 136,754 15,139,410 (2,230,215)

CURRENT LIABILITIES L-19 PROVISIONS L-20 Sub-Total (B) NET CURRENT ASSETS (C) = (A B) MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) L-21 DEBIT BALANCE IN PROFIT & LOSS ACCOUNT (Shareholders Account) DEBIT BALANCE IN REVENUE ACCOUNT (Policyholders' Account) TOTAL

12,859,681

15,563,355

12,944,833

344,325,801

1,765,889 289,880,439

601,302 336,323,82 1

49

CONTINGENT LIABILITIES Particulars As at 31st Mar, 2012 (`'000) 10,157 As at 30th Jun, 2011 (`'000) 4,838 As at 31st Mar, 2012 (`'000) 8,883

1) Partly paid-up investments 2) Claims, other than against policies, not acknowledged as debts by the company 3) Underwriting commitments outstanding (in respect of shares and securities) 4) Guarantees given by or on behalf of the Company 5) Statutory demands/ liabilities in dispute, not provided for 6) Reinsurance obligations to the extent not provided for in the accounts 7) Others TOTAL

2,163,295

5,473,402

2,163,295

2,173,452

5,478,240

2,172,178

50

CHAPTER-4 LESSON LEARNT

51

FINANCIAL CONSULTANT:
Major responsibility handed over FCs is to generate lead of potential customer through contacts, references and activities. Also telemarketing through the existing data base given by the manager. Once the appointment are fixed they have to meet the customer interact with them convince them about the product after analyzing their need & requirement. Helping the customer to fill the form collecting the document and finally handing it to sales manager for logins

Recruitment of Financial Consultants (FC) in HDFC SLIC

Criteria for FC: He should be at least 12th passed. He should complete IRDA training. He should clear the IRDA exam. He should through successfully the exam and training.

Some other criteria: He should have good personal contacts. He should have convincing power. He should be above 18th year old.

52

Recruitment process of FCs

53

Benefits to FCs (Retention Strategies) Financial Benefits: Commission on issuance of every policy. Commission directly credited to bank account of FCs within 15 days. These commission varies from 7.5-40% according to plan. BASIC COMMISSION Name Of the Plan
Endowment Assurance Plan Money Back Plan Childrens Plan Term Assurance Plan Lone cover Term Assurance plan

1st Year Commision

40% 40% 40% 25% 28%

Personal Pension Plan

7.5%

54

 RENEWAL COMMISSION Name Of the Plan Renewal onwards

Endowment Assurance Plan Money Back Plan Childrens Plan Term Assurance Plan Lone cover Term Assurance plan 5% 5% 5% 5% 5%

Commission

2nd

year

Personal Pension Plan

2%

55

REWARDS & RECOGNITION:Within 30 days of Licensing Consultant can become STAR Converted premium 2 Lacs Silver Medal-Worth Rs 5200(approx) RISING STAR Converted premium of 5 Lacs Gold Medal-Worth Rs 13,000(approx) MILLIONAIRE STAR Converted premium of 10 Lacs Gold Medal-Worth Rs 25,000(approx) GLOBAL STAR Converted premium of 24 Lacs Gold Medal-Worth Rs 60,000(approx)

56

Functions Of FC
An insurance agent is an important component of distribution channel for life insurance business. Meet prospects, analyze their financial needs, and persuade them to buy a product, which provides solution. They represents the company & give better services.

Strategies:
Strategies Employed to achieve the target are as follows: Telecalling Contacting the person directly (interview) Collect references.

Some important steps to make effective telecalling: Open the call in a friendly and positive way. State the name, position and company name. Check the prospect has time to speak. State the reason for the call. Clearly succinctly explain how the meeting will be benefiting the prospect.

57

BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS FOLLOW:

Financial consultant, the right way to start career.(by HDFC) As a financial consultant the role will be to identify prospective customer. You will makes presentation, as to how you can help analyses their financial needs, provide customize financial solution to cater to their respective needs and conduct reviews on regular basis to keep customers on thank.

Easy way to start on career: Zero investment: There is no start-up capital. Be an own boss with a flexible working

environment, unlimited earning potential and the opportunity to be part of world class sales team. Flexible work timings, part time or full time: FCs can work whenever he likes and from whereever he like, FCs can work full time depending on their convenience its like no other job however, the time. Sunrise industry: Life insurance in India has a huge potential for growth Statistics reveal that only 25% of the insurable population in India is insured and those insured are in need of still higher insurance cover. The over 100% growth displayed by private life insurers indicates this hu7ge untapped potential. Strong Partnership: A powerful brand HDFC Standard Life Insurance: We were the first private life insurance company to be granted a license by IRDA.
58

We have been rated by business world magazine. As Indies most respected private life insurance company 2004. We have grown over 130% in the last and more than 8 Lakhs policy holder. HDFC standard life insurance has one of the highest brand recalls of around 80%

59

PROFESSIONAL GUIDANCE:

TRAINING

PROGRAMS

AND

CONTINUID

At HDFC standard training is an inherent element of our support system for FCs. Some of our training and support initiative are as: IRDA Training: Online training of 50 hrs. prepares for career as FCs and enables to pass the IRDA examination. After the IRDA license, first step towards a successful career as a FC. Basic Training and Induction: Independence of work experience, this training will give perfect knowledge about the insurance industry along with comprehensive knowledge about the insurance along with comprehensive knowledge about HDFC SLIC Product. Advance Training: Once Fc have settled down as a FC professional we will continuously upgrade capability and knowledge through sophisticated training program, fit for this dynamic world of financial products and markets.

Research Methodology
Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances.

60

Methodology
1. Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master plan specifying the method and procedures for collecting and analyzing needed information.

Exploratory Research is used in this study.

2. Data Collection Methods: The source of data includes primary and secondary data sources.

Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview.

Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers, Magazines & Internet.

3. Research Instrument: Research instrument used for the primary data collection is Questionnaire.

4. Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples.
61

Sampling Technique: Convenience

Sample Size: 100 Respondents.

Area of Study: Delhi

Willingness to be FC for HDFC

In order to determine the willingness of the people to become FC for HDFC SLIC in Mohali, data collected by surveying is treated as analysis. Response to the parameter like professional, unemployed students, housewives, investment consultant, post office agent.

Options Professional Working employees House wives Students Investment consultants Post office agents Others Total

Yes 2 2 1 3 2 3 13

No 18 18 9 17 8 7 87

Total 20 20 10 20 10 10 10 100

62

DATA ANLYSIS AND INTERPRETATION

Q.1: Do you know about HDFC SLIC?

Option Yes No

No.of respondents 90 10

Percentage 90% 10%

No.of respondents
10%

Yes No

90%

Interpretation from the above figure 90% respondents know about HDFC-SLIC and 10% do not know about the company.

63

Q.2: What is your occupation? option business Profession Service housewife unemployed no. of respondents 18 26 12 13 31 percentage 18% 26% 12% 13% 31%

no. of respondents
18% 31%

business Profession Service 26% housewife unemployed

13% 12%

Interpretation The above diagram shows that the unemployed people are highly interested to work as a financial consultant to earn something in comparison to the other persons of different occupations
64

Q.3: What is your perception about employment in insurance sector? BUYING PROCESS NO. OF percentage (%)

RESPONDENTS Hard and Lucrative Hard but Not Rewarding Smoot and Rewarding No Idea 15 4 21 10 30 9 41 20

Perception About Insurance

20% 30% 1 Hard and lucrative 2 Hard but not rewarding 3 Smooth and rewarding 9% 41% 4 No idea

INTERPRETATION Majority of people think employment in insurance sector is smooth and rewarding

65

Q.4:

Do you know about the working of financial Consultant of HDFC SLIC?

Option Yes No

No.of respondents 38 62

Percentage 38% 62%

No.of respondents

38% Yes No 62%

Interpretation From the above figure , it is shown that only 38% respondents know about the working of FC whereas 62% respondents dont know about it.

66

Q.5: Do you have any sales experience in selling financial products?

Option Yes No

No. of respondents 20 80

% 20% 80%

No. of respondents

20%

Yes No 80%

Interpretation After data analysis it shows that 80% respondents dont have sales experience while 20% respondents have done work in sales.

67

Q.6: what type of financial products you have sold?

Option Insurance Policy Credit Cards Shares

No. of respondents(20) 11 6 3

% 55 30 15

No. of respondents
11%

Yes No

89%

Interpretation This figure shows that only 11% respondents have experience in selling financial products and 89% respondents have not experience in this field.

68

Q.7: In which of the financial market you have invested your money?

Option Shares Mutual funds Insurance Others

No. of respondents 14 15 23 48

% 14% 15% 23% 48%

No. of respondents
14% Shares 48% 15% 23% Mutual funds Insurance Others

Interpretation From above figure it is shown that 15% people have invested their money in Mutual Funds, about 14% people have invested their money in shares, about 23% in insurance and about 48% people have invested their money in other investment avenues.

69

Q.8: Do you currently have an agency of any life insurance Company?

Option Yes No

No.of respondents 10 90

Percentage 10% 90%

No.of respondents
10%

Yes No

90%

Interpretation The graph shows that 10% respondents have an agency of any other insurance company and 90% respondends dont have any agency.

70

Q9: How many members of your family are dependent on the income earner of the family?

Option Two Three More than three

No. of respondents 67 23 10

Percentage 67% 23% 10%

No. of respondents
10%

23%

Two Three More than three 67%

Interpretation In the above figure , it is shown that in 67% families two members of the family are dependent on the income earner of the family. in 23% families three members and in 10% families more than three members are dependent on the income earner of the family.

71

Q.10: Are you interested in getting opportunity of earning some additional income as being financial consultant of HDFC-SLIC and why?

Option Yes No

No. of respondents 20 80

Percentage 20% 80%

No. of respondents

20%

Yes No 80%

Interpretation This graph shows that 20% respondents are interested in earning addition income being as financial consultant and 80% respondents are not interested.

72

Q.11: What would be the size of your social contact base who knows you on first name basis?(E.g. : Friendly, family, relative, colleagues if any etc.) Option Friendly Family Relative colleagues Any other No. of respondents 58 11 9 13 9 Percentage 58% 11% 9% 13% 9%

No. of respondents
9% Friendly 13% 9% 58% 11% Family Relative colleagues Any other

Interpretation In the above figure, it is shown that 58% respondents have friendly social contacts, 11% family, 9% have relative , 13% have colleagues and 9% have other social contacts.
73

Q.12: Do you want part time job or full time job?

option Part time Full time

No. of respondents 38 62

Percentage 38% 62%

No. of respondents

38% Part time Full time 62%

Interpretation The above figure shows that most of the respondents want to do full time job rather than part time job

74

Q.13: Do you know about HDFC Standard Life Insurance recruitment policies related to financial consultant? RESPONSE NO. RESPONDENTS YES NO 21 29 41 59 OF SHARE (%)

Knows about HDFCSLIC recruitment policies

41% Yes 59% No

INTERPRETATION Less number of people know about the policies related to recruitment of financial consultants at HDFC life.

75

FINDINGS
1- Customers are less aware about the private insurance company in market. 2- Some customer is like to join HDFC as FCs because it is a Part-time. 3- Many professions like CA, tax planner want a corporate agency rather than to be a financial consultant. 4- HDFC is too selective in making a FC rather than to appoint any one like LIC. 5- Customer dont want to join as financial consultant because its on commission basis they want job on salary basis. 6- Educated customers are now vending towards private insurance Companies, due to the attractive packages and services provided by various new insurance companies. 7- LIC has created a branded image in 3-4 decades, due to which new insurance companies are facing trouble in capturing market share. 8- If the customers are joining HDFC the segment is more of tax consultant, investment for consultant and other people who are engaged in investment business that is because they want to diversify their portfolio. 9- HDFC SLIC is having good retention strategies for their financial consultant. Reason for not joining HDFC SLIC. Associated with another company. Do not have time Low sales. Private Player.

76

Limitations

So though the study aims to achieve the above mentioned Objective in full earnest and accuracy, it may be hampered due to certain limitation. Some of the limitations are as follows:

To cover the various section for the society. Respondents may not be at home and may have to re-contacted or replaced by others. Getting accurate response from the respondents due to their inherent problem is difficult. Limited response from client. There is a time limitation it is not possible to study whole thing I covered some special aspect as well as some topics.

77

CONCLUSION

After collection of data interpretation is done on that basis conclusion is drawn. The conclusion drawn. Conclusion prefers government insurance company other than private insurance companies due to its reliability. Customers are more brand oriented rather than product oriented. Customers are less aware about the private insurance companies. Private Players in order to encase maximum number of customers are introducing new and innovative scheme for their FC. Customers like to invest in other investment zones due to the hectic rules and regulations associated with, entering into a contract with insurance companies. Customers do not feel secure with private insurance companies. Customers dont want commission base job. The central problem with the insurance companies is having that they are trying to convince customers for a product which do not have any present relevance, i.e. each policy which the customer is going to purchase will have a future set of action and benefits. Due to which most of the people like to invest in those securities or investment, which will give them a fruitful return in short period of time? Life insurance Corporation has completed more than three decades and thats where counts, inters of brand name, different number of policies for differed class and age group of customers. The Private players are on the way, but they need a lot of time investment for creating a favorable brand image.
78

RECOMMENDATION & SUGGESTIONS

Customers should be made aware of the brand name of Insurance company through advertisement.

The fear in the customer mind should be removed by company. The insurance companies should try to nurture their brand name timely and attractive facility provide to customer.

Company should more oriented towards rural market. Provide a proper training to the workforce No. of advertisements on Television & newspapers to be increased.

79

BIBLIOGRAPHY

Magazines:1. Insurance Times (Insurance Monthly Magazine-April, 2013)

From Company:1. Annual report(2011-12) 2. Annual Report(2012-13)

Websites:www.hdfclife.com www.scribd.com www.moneycontrol.com

80

ANEXXURE
1. Name of the respondent 2. Occupation 3. Age 4. Address . . 5. Contact No

Q.1: Ans:

Do you know about HDFC SLIC ? (a) Yes (b) No

Q.2 what is your occupation? Ans. (a) Business (b) Profession (c) Service (d) housewife (e) unemployed

Q.3 About marital status Ans. (a) Married (b) unmarried Q.4: Ans: Q.5: Do you know about the working of financial Consultant of HDFC SLIC ? (a) Yes (b) No (c) Insufficient Information.

Do you currently have an agency of any life insurance Company?

81

Ans:

(a)

Yes

(b) No

Q.6: Are you aware about career in Insurance Sector? Ans: (a) Yes (b) No Q.7: What do you think; in todays scenario life insurance is need, want or demand? Ans. . Q.8: Ans: Do you have an idea about financial market? (a) Yes (b) No

Q. 9: Do you have any sales experience? If yes, how many years? Ans: (a) Yes (b) No

Q.10: Do you have experience in selling financial product? E.g. credit card, insurance etc? If yes how many years? (If yes to question 6) Ans: (a) Yes ( ) (b) No ( )

Q.11: Ans:

In which of the financial market you have invested your money? (a) Share (b) Mutual fund (c) Insurance.

82

Q. 12: Are you interested in getting the opportunity of earning some additional income as being financial consultant of HDFC SLIC and why? Ans: (a) Yes (b) No

Q.13: How many members of your family are dependent on the income earner of the family? Ans: (a) two (b) three (c) more than three

Q.14: What would be the size of your social contact base who knows you on first name basis? (E.g.: Friendly, family, relative, colleagues if any etc.) Ans: Mention in approprit nos.

Q.15: Do you want part time job or full time job? Ans. (a) Part time (b) full time

83