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:

Institute of Innovation in Technology and Management

D 27-28 Janakpuri New Delhi, Delhi 110058
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:

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
3

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
4

CHAPTER 1: ABOUT COMPANY

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

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

17-19

CHAPTER 3: FUNCTIONAL ANALYSIS

Functional Department of HDFC SLIC
Products & Services of HDFC SLIC
Financial Analysis

21-25
26-36
37-44

CHAPTER 4: LESSON LEARNT

About Financial Consultants
Benefits of being a Financial Consultant
Professional Training programs and continued guidance
Research Methology

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

Title

Page No

CSR Framework

15

Term Plans

27

Childrens Plan

29

Retirement Plans

30

Retirement Plan-2

31

Savings & Investment Plans

33

Health Plan

35

LIST OF ABBREVIATIONS

S No

Abbreviated
Name

Full Name

HDFC

Housing Development Finance

Corporation

SLIC

Standard Life Insurance Company

CHAPTER-1
ABOUT COMPANY

About HDFC
Introduction
7

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

Rs. 805 billion.

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

Loan Approvals
(up to Dec 2013)
Loan Disbursements
(up to Dec. 2013)
Housing Units Financed
Distribution
Offices
Outreach Programs

181
90

HDFC Parentage
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

10

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.
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
11

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

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

12

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.

13

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

14

Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February

2010.

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

15

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.

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.

16

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'.

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

17

Associate Companies
HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

HDB Financial Services

HDFC Securities

18

HDFC RED

Other Companies

HDFC Trustee Company Ltd.

GRUH Finance Ltd.

HDFC Developers Ltd.

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

19

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
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

20

participate in the Companys community initiatives to accelerate inclusive growth and strengthen
environment protection.

HDFC Life CSR framework

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
21

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

CHAPTER-2
SWOT ANALYSIS
22

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

3-year

joint

venture

Strength
1. Customized and Flexible Insurance Solutions and large product portfolio
2. Robust Risk control Framework
23

agreement .

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

Weakness
1.
2.
3.
4.
5.

Controversies like job cuts, racism and data loss have affected image
Less penetration in rural areas
Heavy management expenses and administrative costs.
Low customer confidence on the private players
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.
24

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.
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.

25

CHAPTER-3
FUNCTIONAL ANALYSIS

26

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
27

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
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
28

(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.

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'

29

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
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.

30

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.

31

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/-

32

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.

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

33

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

34

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

35

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

36

you

can

live

with

pride

and

enjoy

your

twilight

years.

Figure-4

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.

37

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.

Types of Retirement Plans

Our range of Retirement Plans includes
Type

Unit Linked
Plans

Conventional Plans

38

Insurance

Regular
Premium

HDFC Personal Pension Plan

Single
Premium/
Investment

Savings & Investment Plans

39

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

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

40

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

Back Plan

HDFC
SL
ProGrowth Super II

HDFC Assurance Plan#

HDFC Savings Assurance
Plan^
HDFC
Endowment
Assurance Plan
Single Premium/
Investment

HDFC Single Premium

Whole of Life Insurance
Plan

Limited Premium
Payment

HDFC
ProGrowth
Maximiser
HDFC SL Crest

41

SL

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.

42

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

43

Financial Analysis
Year-2011-12PROFIT & LOSS ACCOUNT FOR THE QUARTER ENDED
30TH JUNE, 2011
Shareholders Account (Non-technical Account)
Sche
dule For the quarter

For
quarter
ended
ended 30th June, June,
2011
2010
(`'000)
(`'000)

Particulars

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)

the
30th

27,786

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

81,544
158,647
(318)
(873)
8
266,794

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)

1,476
28,253

476
1,017,012

29,729

1,017,488

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

91,633
91,633

(750,694)
(750,694)

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

(14,664,966)
(15,415,660)

44

BALANCE SHEET AS AT 30TH JUNE, 2011

As at

30th
June,
Schedul 2011
e
(`'000)

As at

As at

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

19,693,000 19,948,801
735,300
573,692

2,206,790

44,855

(350)

Sub-Total
BORROWINGS
L-11
POLICYHOLDERS FUNDS:
CREDIT/[DEBIT]
FAIR
VALUE CHANGE
ACCOUNT
POLICY LIABILITIES
INSURANCE RESERVES
PROVISION FOR LINKED
LIABILITIES

22,150,889
-

21,046,847 22,155,241
-

(47,519)
53,244,610
209,159,146

87,131
(15,447)
38,101,094 51,233,325
170,772,73
5
205,231,336

Sub-Total

262,356,237

208,960,96
0
256,449,214

1,900,376

2,032,538 1,917,148

2,938,888

1,306,625 2,555,106

534,049

289,880,439

233,346,97
0
283,076,709

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

45

APPLICATION OF FUNDS
INVESTMENTS
Shareholders
L-12
Policyholders
L-13

5,749,843
59,012,793

6,859,474 6,999,708
43,298,429 53,349,840

ASSETS HELD TO COVER

LINKED
L-14

209,159,146

170,772,73
5
205,231,336

LOANS

L-15

333,921

41,819

FIXED ASSETS

L-16

2,318,922

3,051,434 2,395,729

CURRENT ASSETS
Cash and Bank Balances
Advances and Other Assets
Sub-Total (A)

L-17
L-18

1,826,073
6,203,611
8,029,684

1,905,438 3,837,312
4,275,788 6,770,283
6,181,226 10,607,595

11,921,748
131,367
12,053,115
(4,023,431)

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

331,239

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

46

CONTINGENT
LIABILITIES
As
at
June,

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

6,370

4,838

5,473,402
5,478,240

47

As at
30th June,31st
2010
2011
(`'000)
(`'000)
-

As
at
March,

2,990,733 7,001,010
-

2,997,103 7,005,848

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)

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)

For the quarter

ended 30th June,
2011
(`'000)

120,128
14,489
-

101,896
19,553
(48)
-

(577)
1
134,041

(44)
5
121,362

15,187
-

1,476
-

28,479
43,666

28,253
29,729

Profit/ (Loss) before tax

Provision for Taxation
Profit / (Loss) after tax

90,375
5,222
85,153

91,633
91,633

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

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

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

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)

48

BALANCE SHEET AS AT 30th JUNE, 2012

Schedu
le
As at
30th June,
2012
(`'000)

As at
30th June,
2011
(`'000)

As at
31st Mar,
2012
(`'000)

L-8, L9
19,948,801
L-10 2,200,654

19,948,801
2,204,624

19,948,801
2,201,376

(56,073)

(2,536)

(52,160)

22,093,382
-

22,150,889
-

22,098,017
-

(398,008)
78,197,917
-

(47,519)
53,244,610
-

236,804,345
417,190

193,744,026
15,415,120

237,221,535

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

262,356,237

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

828,853

1,900,376

1,251,005

3,363,765

2,938,888

3,352,468

924,063

534,049

SOURCES OF FUNDS
SHAREHOLDERS FUNDS:
Share Capital
Reseve and Surplus
Credit/[Debit] Fair
Change Account

Value

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

49

from Appointed
Acturary till year end

344,325,801

289,880,439

336,323,82
1

8,464,096
83,397,339

5,749,843
59,012,793

5,894,173
79,902,644

ASSETS HELD TO COVER

LINKED LIABILITIES
L-14

239,315,828

209,159,146

236,098,00
5

LOANS

L-15

318,474

333,921

317,628

FIXED ASSETS

L-16

2,779,277

2,318,922

2,795,451

CURRENT ASSETS
Cash and Bank Balances
Advances and Other Assets
Sub-Total (A)

L-17
L-18

2,980,439
6,030,537
9,010,976

1,826,073
6,203,611
8,029,684

5,475,639
7,433,556
12,909,195

11,660,539
159,331
11,819,870

11,921,748
131,367
12,053,115

15,002,656
136,754
15,139,410

(2,808,894)

(4,023,431)

(2,230,215)

12,859,681

15,563,355

12,944,833

1,765,889

344,325,801

289,880,439

601,302
336,323,82
1

TOTAL
APPLICATION OF FUNDS
INVESTMENTS
Shareholders
L-12
Policyholders
L-13

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

50

CONTINGENT
LIABILITIES
Particulars

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

As at
31st
Mar,
2012
(`'000)
-

As at
30th Jun,
2011
(`'000)
-

As at
31st Mar,
2012
(`'000)
-

10,157

4,838

8,883

2,163,295

5,473,402

2,163,295

2,173,452

5,478,240

2,172,178

51

CHAPTER-4
LESSON LEARNT

52

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.

53

Recruitment process of FCs

54

Benefits to FCs (Retention Strategies)

55

 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
1st Year Commision

Name Of the Plan

Endowment Assurance Plan

40%

Money Back Plan

40%

Childrens Plan

40%

Term Assurance Plan

25%

Lone cover Term Assurance plan

28%

Personal Pension Plan

7.5%

Name Of the Plan

RENEWAL COMMISSION
Renewal
56

Commission

2nd

year

onwards
Endowment Assurance Plan

5%

Money Back Plan

5%

Childrens Plan

5%

Term Assurance Plan

5%

Lone cover Term Assurance plan

5%

Personal Pension Plan

2%

REWARDS & RECOGNITION:Within 30 days of Licensing Consultant can become

STAR

Converted premium 2 Lacs

Silver Medal-Worth Rs 5200(approx)

57

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)

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.

58

 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.

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.
59

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.
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%

60

PROFESSIONAL

TRAINING

PROGRAMS

AND

CONTINUID

GUIDANCE:
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.
61

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.

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.

62

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.
Sampling Technique: Convenience
Sample Size: 100 Respondents.
Area of Study: Delhi

Willingness to be FC for HDFC

63

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

Yes

No

Total

Professional

18

20

Working employees

18

20

House wives

10

Students

17

20

Investment consultants

10

Post office agents

10

Others

10

Total

13

87

100

DATA ANLYSIS AND INTERPRETATION

Q.1: Do you know about HDFC SLIC?
Option

No.of respondents

Percentage

Yes

90

90%

No

10

10%

64

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.

Q.2: What is your occupation?

option

no. of respondents

percentage

business

18

18%

Profession

26

26%

Service

12

12%

housewife

13

13%

unemployed

31

31%

65

no. of respondents
business
18%

Profession

31%

Service
housewife
unemployed

26%
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
Q.3: What is your perception about employment in insurance sector?
BUYING PROCESS

NO.

OF percentage (%)

RESPONDENTS
Hard and Lucrative

15

30

Hard but Not Rewarding

Smoot and Rewarding

21

41

No Idea

10

20

66

Perception About Insurance

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

Q.4:

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

Option

No.of respondents

Percentage

Yes

38

38%

No

62

62%

67

No.of respondents

Yes

38%

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.

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

Option

No. of respondents

Yes

20

20%

No

80

80%

68

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.

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

Option

No. of respondents(20)

Insurance Policy

11

55

Credit Cards

30

Shares

15

69

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

No. of respondents

Shares

14

14%

Mutual funds

15

15%

Insurance

23

23%

Others

48

48%

70

No. of respondents
Shares
14%
48%

Mutual funds
Insurance

15%

Others

23%

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.

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

Option

No.of respondents

Percentage

Yes

10

10%

No

90

90%

71

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.

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

No. of respondents

Percentage

Two

67

67%

Three

23

23%

More than three

10

10%

72

No. of respondents
10%

Two
Three

23%

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

Option

No. of respondents

Percentage

Yes

20

20%

No

80

80%

73

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.

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

No. of respondents

Percentage

Friendly

58

58%

Family

11

11%

Relative

9%

colleagues

13

13%

Any other

9%

74

No. of respondents
Friendly

9%

Family

13%

Relative
colleagues

9%

Any other

58%

11%

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

option

No. of respondents

Percentage

Part time

38

38%

Full time

62

62%

75

No. of respondents

Part time

38%

Full time

62%

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

Q.13: Do you know about HDFC Standard Life Insurance recruitment policies related to
financial consultant?
RESPONSE

NO.

OF SHARE (%)

RESPONDENTS
YES

21

41

NO

29

59

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Knows about HDFCSLIC recruitment policies

Yes
No

INTERPRETATION

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

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.

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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.

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.

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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.

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.

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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.

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.

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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

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www.moneycontrol.com

ANEXXURE
1. Name of the respondent
2. Occupation
3. Age

4. Address

.
5. Contact No

Q.1:

Do you know about HDFC SLIC ?

Ans:

(a)

Yes

(b) No

Q.2 what is your occupation?

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Ans.

(a) Business (b) Profession (c) Service (d) housewife (e) unemployed

Q.3 About marital status

Ans. (a) Married (b) unmarried
Q.4:

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

Ans:

(a)

Q.5:

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

Ans:

(a)

Yes

Yes

(b) No (c) Insufficient Information.

(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:

Do you have an idea about financial market?

Ans:

(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)
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Ans:

Q.11:
Ans:

(a)

Yes

( )

(b) No

In which of the financial market you have invested your money?

(a) Share

(b) Mutual fund

(c) Insurance.

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

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