Project On

“Developing a chain of advisors to enhance

marketing channel”

Master of Business Administration (Marketing)

Submitted in partial fulfillment of the requirements for award of

Master of Business Administration of
Tilak Maharashtra University, Pune.
Submitted by
Pawan Nagar

PRN No.

of
Ansal Institute of Technology
Gurgaon
Guided By Prof._____________________

Tilak Maharashtra University

Gultekdi, Pune 411037

 Tilak Maharashtra University, Pune
(Deemed Under Section 3 of UGC Act 1956 Vide Notification No. F.9-19/85-
U3 dated 24th April 1987 By the Government of India.)
Vidhyapeeth Bhavan, Gultekdi, Pune-411037.

CERTIFICATE
This is to Certify that the project titled “Developing a Chain of
Advisors To Enhance Marketing Channel” is a bonafide work carried
our by Mr./ Ms. Pawan Nagar a student of Master of Business
Administration Semester 3rd, Specialization Marketing
PRN.__________________ under Tilak Maharashtra University, in the
year 2010.

Head of the Department Examiner Examiner

Internal External
Date:

Place: University Seal

2
 Certificate of Internal Guide
This is to certify that the project titled Developing a chain of advisors to enhance marketing
channels is a bonafide work carried out by Pawan Nagar a candidate for the award of Master of
Business Administration of Tilak Maharashtra University, Pune under my guidance and
direction.

Signature of Guide
Date: Name:
Designation:
Place: Institute:

3
 CERTIFICATE

TO WHOMSOVER IT MAY CONCERN

This is to certify that Mr. Pawan Nagar MBA Student of Tilak Maharashtra University, Pune
has successfully collected the data for the project report for award of Master Degree of
Business Administration.

He has done the project on “___________________________________________”.

Company Name Company Seal

Designation

Signature

4
 CONTENT

Acknowledgment 6

Chapter 1: Rationale for the study 7

Chapter 2: objective of the study 8

 Title of the project

 Objective of the study

 Scope of study

Chapter 3: Profile of the Company 11

Chapter 4: Review of literature 37
Chapter 5: Research methodology 41
 Research Design

 Data collection method

 Sampling technique

Chapter 6: Data analysis 44

Chapter 7: Findings 53
Chapter 8: Limitations 54
Chapter 9: Recommendations 55
Appendix

5
 Acknowledgement
I would like to thank and express my gratitude towards HDFCSLIC ltd for providing me an
opportunity to work and learn through summer training. I am extremely grateful to Mr.
HIMANSHU SHARMA for giving me the opportunity to work on live project and providing
me his wholehearted cooperation, help and valuable guidance at every stage of my project. He
has been a source of consistent and professional evaluator of my project. Without his personal
guidance I would have never come to successful & efficient completion of this project. He was
always a hand away and gave his guidance throughout the course of my training. My sincere
thanks to Mr Himanshu Sharma.

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

6
 Chapter-1

Rationale of the study

As a partial fulfillment of the MBA Course in which eight week training has been incorporated
in the curriculum, during which a study is to be done in an organization mainly to extract the
practical knowledge & skill from the actual environment. This project provided me an
opportunity to gain profound insight into a practical applicability of management concepts and
developing better ability to analyze problems and decisions that has contributed significantly for
better use of resources available to the management.
To understand and to apply the concepts of the curriculum, I have undergone summer training in
HDFC STANDARD, Gurgaon in the title of the project “Developing a chain of advisors to
enhance marketing channels”. For which the report have been prepared with suggestions and
opinion of the respective subject given by me.
In the report every possible step that had been taken in the project are shown as a glimpse, with a
hope that it will be a tool to help the organization through the findings and opinion given in the
report.

7
 Chapter-2

Title of the project

“Developing a chain of advisors to enhance marketing channels”

OBJECTIVE OF THE STUDY

The main objective of this project is to have complete knowledge about Life Insurance and life
insurance plans of Hdfc standard life insurance company. Secondly to make a chain of financial
advisors so as to enhance marketing channel of the company and to understand how does
channel development work for insurance company.

The following are primary objective of study:

 To have complete knowledge of life insurance.

 To make a chain of consultant of company.
 To understand what channel development is and to understand how does he work.

 To understand the importance of channel development.

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

 To understand the functioning of life insurance industry.

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

8
  To gain experience in different environment with different people.

SCOPE OF THE STUDY

Every life insurance company wants to provide better and quick service to its customers. For this
it needs some channels in order to enable customers to interact easily with the company.

Financial Consultants bridge the gap between company and the customer by imparting them the
right kind of information.

So, the persons those who could bear this responsibility are constantly searched by the insurance
company. The main purpose of this study was to make a chain of financial consultants so as to
enhance marketing channel.
Secondly, the motive behind this study of mine was to have practical knowledge of recruitment
by adopting various kinds of strategies and to learn new things.

9
 EXECUTIVE SUMMARY

Executive summary
As in current scenario when there are so many players in life insurance sector, each is having
tough competition with other. Each company is opting best possible strategy to spread its wings
and attracting customer towards it by providing uninterrupted services.

HDFC Standard Life Insurance is also giving better services to its customers through the channel
of financial consultant. My project was to recruit financial consultants. First of all I was
explained about the importance of a financial consultant in the company, their functions and
then, how and where to find them.

My study included the follow-up of procedures used for the recruitment of an insurance advisor
who can sell the products of the company. For this I performed market research by using various
kinds of activities like meeting persons individually in the market, convincing people by tele-
calling and through canopy activity to join HDFC as a financial consultant. I had to introduce
them with the benefits of becoming a financial consultant and if they agree for it then doing their
further documentation.

I conducted my research in Gurgaon and Delhi the areas close to it to know the public response
and conducting analysis part. I got questionnaires filled with various customers to know their
opinion and awareness about insurance sector.

This study gave me immense opportunity to enhance my inter-personal skills and to have
practical exposure of dealing with the customer directly. It was a delighting experience to engage

10
myself in this summer internship because it taught me the ways of approaching and convincing
the customer and finally recruiting them for the organisation in which I worked.

Finally, interesting conclusions were drawn from the collected data.

Chapter-3

Profile of Company

INDUSTRY PROFILE

 Incorporated in 1977 as a public limited company

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

corporate sector

 First private sector retail housing finance company

 HDFC is listed on both BSE and NSE

 Market capitalization (June 2007) - Rs. 95 billion (US $ 1.6 bn)

11
 COMPANY PROFILE

Company Name: HDFC Standard Life Insurance Co.

Indian Partner: HDFC Bank
Foreign Partner: Standard Life (U.K.)
Equity Ratio: 74:26
Commencement Date: January 1995
Field Of Operation: Life Insurance
CEO Of the Company: Deepak Satawalekar
CEO and MD-HDFC SL

About summer training department of company

HDFC possesses a separate but important department for the extension of the number of
financial consultants as Channel Development Department (CDD). Activities that are followed
by it to search financial consultants are:-
 Cold Calling
 Visiting market
 Placement Consultancies
 Interacting people personally

12
The purpose of every activity undertaken is to make chain of financial consultants who could sell
policies of the company.

COMPANY PROFILE

Introduction

“Helping Indians experience the joy of home ownership”.

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest
housing finance institution and Standard Life Assurance Company, Europe's largest mutual life
company. It was the first life insurance company to be granted a certificate of registration by the
IRDA on the 23rd of October 2000.

Standard Life, UK was founded in 1825 and has experience of over 180 years. Companies. The
company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's
(Aa2).

Background of company

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.

13
Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner, and to promote home
ownership. Another objective is to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic financial markets.

Organizational Goals

HDFC's main goals are to :

a) Develop close relationships with individual households,
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions,
d) Provide consistently high returns to shareholders, and
e) To grow through diversification by leveraging off the existing client base.

14
HDFC Founder

MAN WITH A MISSION

If ever there was a man with a mission it was Hasmukhbhai Parekh, our Founder and
Chairman-Emeritus, who left this earthly abode on November 18, 1994.

Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial
career at Harkisandass Lukhmidass - a leading stock broking firm. The firm closed down
in the late seventies, but, long before that, he went on to become a towering figure on the
Indian financial scene.

In 1956 he began his lifelong financial affair with the economic world, as General
Manager of the newly-formed Industrial Credit and Investment Corporation of India
(ICICI). He rose to become Chairman and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious
than his first. His vision for mortgage finance for housing, gave birth to the Housing
Development Finance Corporation - it was a trend-setter for housing finance in the whole
Asian continent.

He was a true development banker. His building up HDFC without any government
assistance is itself a brilliant chapter in financial history. His wisdom and warmth drew
people from all walks of life to him, for advice, guidance and inspiration.

He was also a writer in his own right. There are over 200 published articles by him, full
of incisive comments on finance and economics. In 1953 he brought out a volume called:
The Bombay Money Market. It detailed the intricate working of the Indian money
market. His works in Gujarati - Hirane Patro, Hirane Vadhu Patro - occupy pride of place
in Gujarati literature. In 1992, the Government of India honoured him with the Padma
Bhushan Award. The London School of Economics & Political.
More about HDFC SLIC
.
The road to success is a tough and challenging journey in the dark where only obstacles
light the path. However, success on a terrain like this is not without a solution.
As we found out nearly three decades ago, in 1977, the solution for success is customer
satisfaction. All you need is the courage to innovate, the skill to understand your clientele
and the desire to give them your best.

Today, nearly three million satisfied customers whose dream we helped realise, stand
testimony to our success.

Our objective, from the beginning, has been to enhance residential housing stock and
promote home ownership.

Now, our offerings range from hassle-free home loans and deposit products, to property
related services and a training facility.

We also offer specialized financial services to our customer base through partnerships
with some of the best financial institutions worldwide.

Organization & Management

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

eminent persons who represent various fields including finance, taxation, construction
and urban policy & development. The board primarily focuses on strategy formulation,
policy and control, designed to deliver increasing value to shareholders.

.
SUBSIDIARY & ASSOCIATE COMPANIES

 HDFC Bank

 HDFC Mutual Fund

 HDFC Standard Life

 Intelenet Global Services Ltd.

 HDFC Chubb General Insurance Company Ltd.

 HDFC Reality

 Other Companies Co-Promoted by HDFC

 HDFC Trustee Company Ltd.

 HDFC Developers Ltd.
 HDFC Venture Capital Ltd.
 HDFC Ventures Trustee Company Ltd.
 Credit Information Bureau (India) Ltd
 Home Loan Services India Pvt. Ltd.
Vision and Values:-

Vision Statement

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

INTEGRITY

What is it?
 Honest and Truthful in every action.
 Transparency
 Stick to principles irrespective of outcome.
 Be just and fair to everyone.

Why?
 Integrity is the bedrock on which the company and the expectations of the
customer and employees are built.
 Integrity establishes the creditability of the person defines the character and
empowers one to do justice to the job.
 Enables building confidence and trust, achieving transparency and laying a strong
foundation for building relationship.
 Guiding principle for all walks of life.
.
CUSTOMER CENTRIC

What is it?
 Understand his expectation by keeping him as the centre – point.
 Listen actively.
 Understand customer needs and deliver solution.
 Customer interest always supreme.

Why?
 Reinforce brand loyalty by complete transparency.
 Customer is the source of revenue for the company.
 Customer is the reason for our existence.
 Ensure that customer chooses our company to do business with.
 Customers’ goodwill alone can bring more business and more customers.
 Will contribute retention.

PEOPLE CARE

What is it?
 Genuinely understanding the people we work with.
 Guiding their development trough training and support.
 Helping them develop requisite skills to reach their true potential.

 Known them on a personal front.

 Create an environment of trust and openness.
 Respect for the time of others.

Why?
  People are the most valuable assets of the company.
 Motivate individual to give his/ her best.
 Establish a valuable relationship with them to create a joyful orking.
 Job satisfaction.

TEAM WORK

What is it?
 Whole team takes the ownership of the deliverables.
 Consult all involved, understand and arrive at a common objective.
 Co-operate and support across departmental boundaries.
 Identify strengths and weaknesses accordingly allocate responsibility to achieve
common objectives.

Why?
 Together Everyone Achieves More :- TEAM
 It adds joy at work place.
 Team work generates synergy and provides a focused approach.
 An idea or activity performed in a group has a greater acceptability.
 “One for all and all for one”.

Key Strengths

Financial expertise

As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions
HDFC have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.

Track Record so far

HDFC’s gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859
crores and new business premium income stood at Rs. 2,685 crores.

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

The various products by HDFC Standard Life include:

INDIVIDUAL PRODUCTS:

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this
in mind, we have a varied range of Products that you can choose from to suit all your
needs. These will help secure your future as well as the future of your family.

Protection Plans :

You can protect your family against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These plans offer valuable peace
of mind at a small price Term Assurance Plan

 Loan Cover Term

 Assurance Plan

Investment Plans:
HDFC’s plan is well suited to meet your long term investment needs. We provide you
with attractive long term returns through regular bonuses.

 Single Premium Whole Life Plan

Pension Plans:

HDFC’s Pension Plans help you secure your financial independence even after
retirement.

 Personal Pension Plan

 Unit Linked Pension Plan
 Unit Linked Pension Plus

Savings Plans:

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

 Unit Linked Young star Plus

 Endowment Assurance Plan
 Unit Linked Endowment
 Unit Linked Endowment Plus
 Money Back Plan
 Children's Plan

GROUP PRODUCTS

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit solutions
to their employees. We offer different products for different needs of employers ranging
from term insurance plans for pure protection to voluntary plans such as superannuation
and leave encashment

 Group Term Insurance

 Group Variable Term Insurance
 Group Unit Linked Plan

OTHER PRODUCTS

 Rural Products
 Social Development Insurance Plan
 Tax Benefit Schemes

The premium payment options available to the customers vary from online payment to
direct desk payments at the HDFC Standard Life Branches, by courier services or in drop
boxes provided. You can also pay by ECS or Automatic Debit System or credit cards or
standing instruction mandate. HDFC Standard Life Insurance Company is a customer
oriented corporation and aim at complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly defined on the
official website. Online renewal forms are also available. For any change in personal
details like the contact details or the nominee of the policy or policy benefits, online
servicing is also available. Even the claim procedure has been simplified since affect of
the loss life is irreparable and is thus fully understandable at HDFC Standard Life. A
completely hassle-free process has been formulated to provide maximum convenience.
Selecting financial consultants

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

personnel from many disciplines. They are the building blocks on which
the company's performance & productivity is based". Mr. H T Parekh
Founder-Chairman, HDFC Ltd.

HDFC Standard Life is one of the leading life insurance companies having a track record
of declaring bonuses every year since inception. We attribute this success to our people,
who are our most important asset. We believe they are a key facet of the company and it
is their contribution that has enabled us to achieve our current status. Since they deserve
the best, our efforts have been to provide them with the best environment, best culture
and best development opportunities possible.

Be HDFC’s certified financial consultant.

Here’s is the unique opportunity to put your career path on the fast track. Join HDFC
SLIC as a financial consultant and help you analyze yours customer‘s financial needs,
provide customized financial solutions to each one and conduct reviews on a regular
basis to keep your customer on track.

Along with being a great career move you get associated with HDFC SLIC. India’s most
respected private life insurance company. We at HDFC SLIC also offer you unmatched
support with various training programmes to help you excel in your endeavor.

A great career move in every way

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

Flexible work timings.

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

Sunrise industry.

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

Support every step of the way.

At HDFC STANDARD LIFE, training is an inherent element of our support system – at

no extra cost – for our new financial consultants. Some of our training, guidance and
support initiatives are as follows:-

Basic training and induction

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

IRDA Training

Prepares you for your career as a financial consultant and enables you to pass the IRDA
examination easily.

Disha Training

Hones you selling skills, enables you to understand customer needs and provide need-
based insurance solutions.
Advanced Training

Upgrades your capability and knowledge through sophisticated training programs customized
for the changing world of financial products and markets.

Endless earning possibilities

Decide your own salary amount.

Your income is directly proportional to the effort put in by you. The more you sell, the more
you earn. And our commission structure (as per IRDA guidelines) has the ability to give you
the maximum benefits for every policy you sell.

Long term earning potential

The policies sold by you will give you a renewed income every year. So every year your
income keeps increasing steadily even if you sell the same number of policies.

Regular income

The company pays the commission you earn every 15 days. This ensures that you get a
regular income when you associate with us.

Swot Analysis of “HDFC Standard life insurance” (HDFC)

Strengths
 Localized branches.
 Strong brand name
 Big budget & Willingness to invest in market.
  Highly educated & well-experienced top management.
 Huge resources as compared to those of rivals.
 HDFC maintains high quality of their products.
 Glamorous, attractive & effective campaigning.
 Wide brand variety to face the competitor’s variety to face the competitors & to
serve the masses.
 High demand of the product

Weaknesses
 More individuality in staff than conformity with the company’s goal.
 Lack of advertising material in some areas of region.
 Focusing on bulk orders rather than small ones.

Opportunities
 Increase market share by improving services.
 Target consumers increase in remarkable percentage every year.

Threats
 Loosing market share due to inefficient workforce.
 Decline in the market reputation due to ineffective & delaying.
 Heavy investment.

Relevance of Swot analysis.

 The Swot analysis makes us aware of the strengths which will serve as pillar
to take strategic decision.
 The weakness tells us about the problems confronted by the company and
accordingly the future step to be taken to overcome them.
 Swot analysis projects an idea about the investment area which will yield
more profit as well as the risk concerned.
 COMPANY’S MISSION:

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

This not only means being the largest or the most productive company in the
market, but a combination of several things like-

 Customer service of the highest order

 Value for money for customers
 Professionalism in carrying out business
 Innovative products to cater to different needs of different customers
 Use of technology to improve service standards
 Increasing market share
THE PARTNERSHIP:

HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies
shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.

In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFC Treasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level.

MARKET POSITION

HDFC Standard Life Insurance Company Ltd.

In the total market share, LIC has reduced its share from 91% to 70%. This means that
private insurance players have got more margins in their hands which have increased
from 9% to 30% in last 2years only.

In the private market share, HDFC SLIC leads with 39% of the market share in its hand
followed by ICICI PRUDENTIAL 18% shares and then comes Birla Sun Life with 15%
market shares.
HDFC SLIC has been maintaining its No. 2nd position since last 5 years because of its
prolific product range and commanding brand equity. It has a highest capital base of Rs.
925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brand recall
rate of 92% and gives credit of its success to the 5 core values-
 Integrity
 Customer
 Boundary Less
 Ownership
 Passion
 COMPETITOR PROFILING

Main competitors of HDFC SLIC

LIFE INSURANCE CORPORATION OF INDIA (LIC)

The Life Insurance Corporation (LIC) was established about 52 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance.

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

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

Training activities for agents/advisors:

 As per IRDA, 100hrs training is compulsory for 17 days.
 Only classroom training is available.
 Only full-time training is given.
(ICICI Prudential advantage: - Part time option available.)
Training activities for agents/advisors:
 As per IRDA, 100hrs training is compulsory for 17 days.
 Only classroom training is available.
 Only full-time training is given.
 Commission Structure:

Depends on the plan or the product / policy which the advisor sells to the customer.
Every policy has a commission amount fixed on it as per specifications of IRDA.

Modes & ways through which the company recruits agents:

- Through development officers.

- Through corporate agencies (Bankers and Brokers).
- Carrier agent branch (i) rural carrier agent
(ii) Urban carrier agent.

Current agent force

Around 30000-35000 agents in Delhi

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

 TRUST (since 1956), ORG marks survey has rated LIC most trusted branch in
life insurance
 Having a vast network of 2050 branches and nearly 10 lakh agents.
 Best claim performance in the world by Depth and Maturity claim.
 A government-undertaken company ensuring safe and corruption free insurance.
 Variety of plans available to match the customer’s needs.
 ICICI PRUDENTIAL

ICICI PRUDENTIAL
 ICICI Limited is a multi-business corporation that has business interests in telecom
services, bulk pharmaceuticals, electronic components and specialty products. It is
also the service-oriented businesses of healthcare, life insurance and information
technology.

Training activities for agents/advisors:

 As per IRDA, 100hrs training is compulsory.
 Only classroom training is available.
 Only fulltime training is given.
(HDFC Standard Life advantage: - Part time option available.)

Commission Structure:
 Minimum - 2%
 Maximum – 40%.
Varies from product to product- 25%, 7.5%, 10% & 15%.

Modes & ways through which the company recruits agents:

 Reference (only)
ICICI PRUDENTIAL recruits agents only on basis of reference.

Current agent force:

Around 2000-3000 in Delhi.

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

 Training, which is compulsory for every agent/advisor so that they work
according to the company’s working style.
  Emphasizes on whole life products.
 Flexibility of the product to adapt to customers changing needs in future.
 Believes in healthy competition with other life insurance companies.
 Agent is the power.

GOVERNANCE OF INDIAN INSURANCE SECTOR

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

The Insurance Regulatory and Development

Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA’s online service for issue and renewal of licenses to agents. Since being set up as
an independent statutory body the IRDA has put in a framework of globally compatible
regulations.
MISSION-IRDA

“To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.”
 Insurance

Basically, life insurance is nothing but a contract where the insured party or the purchaser
of insurance pays a premium that protects him against specific losses. When planning
ones life insurance portfolio, one must consider his family's recurring needs like medical
expenses, house rent, provision costs for instance as well as long-term needs that involve
family's set standard of living and their future such as higher education and marriages.

Throughout our living existence, we are faced by numerous risks - failing health,
financial losses, accidents and even fatalities. Insurance addresses all these uncertainties
on financial terms.

Whatever kind of asset a person posses, remains productive for a certain period of time.
Its life to provide benefits is restricted to a short span and when this span finishes, its
capability to give benefits also ends. The owner is aware of this fact, he arranges a
substitute of it so that in case, if asset gets damaged the benefits of it do not go futile. For
instance, a person gets lost his car in an accident; he is deprived of the benefits if any
substitute of it is not available. In such cases, insurance is the key to protect the person
from the losses incurred and reduce its ill effects. Insurance promises to pay an assured
sum to the owner to reduce the losses.
 Why Life Insurance?

We think twice before taking the plunge into buying insurance. Is buying insurance a
necessity now? Spending an 'extra' amount as premium at regular intervals where we do
not see immediate benefits does not seem a necessity at the moment. May be later.

Well we could be wrong. Buying Insurance cannot be compared with any other form of
investment. Insurance gives us a life long benefit and the returns will definitely come but
only when we need it the most i.e. at the right time. Besides buying insurance early in life
is one of the wise decisions we could take. Because the premium we would be paying
would be comparatively lower.

Insurance is not about how much more it can offer us when the stock market is at its
peak. It may not be an attractive investment option. But weigh the pros and cons and
consider how much more it offers at a small price.

Most important of all it provides us with that unique sense of security that no other form
of investment provides. It gives us a sense of financial support especially during that time
of crisis irrespective of the fluctuations in the stock market. Insurance provides for our
career goals right from your childhood years.

If the earning member of the family is no more our child's educational needs will not
suffer. In fact his higher education too will be provided for. We need not spend sleepless
nights thinking about how to save for our child's marriage. Life Insurance will take care
of that typical once-in-a-life-time spending on marriages.

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

support for the family during such times too. Besides it provides for additional benefits
such as bonuses. We need not worry about our retirement years. The rising prices, taxes,
and our lifestyle will be taken care of easily. And we can relax and spend our old age in
comfort and peace.
Life insurance today plays a major role in ones life at various stages. Considering the
benefits it offers one cannot but give a thought to buying an insurance policy at the
earliest.
 Chapter-4

REVIEW OF LITERATURE

My Contribution in HDFC SLIC as a project trainee

The task of mine was to make a chain of quality insurance advisors for the company to enhance
its marketing channel. It included the use of different kinds of strategies to convince the persons
to join the company. Activities were
a.) cold calling, in this I used to call people on the data provided by my SDM and telling them
the benefits of being a financial advisor.
b.) meeting people face to face and convincing them to be a financial consultant.
c.) taking part in the canopy activity conducted by the company for the extension of chain of
insurance advisors.

For convincing the person I had to provide him the detailed information of the benefits of
becoming an insurance advisor, discussion of the current reputation of HDFC as a brand and the
reasons for joining HDFC only. I used to tell them from the side of company that-

We are partners in your growth and provides you-

1. Attractive payments and benefits

2. Strong reputation
3. High quality Management Support
4 Superior Products
5. Excellent customer service
6. High quality Management Support
After giving all this information I used to raise their confidence by saying them that they have
the potential to perform the duty of a financial consultant and make use of the opportunity to-

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

2. Work from his/her (advisor) own office or residence.
3. Work full time or part time.
4. Earn commission, bonus and incentives.
5. No upper limits on earnings.
6. Flexible career.
If the person used to give their consent to be a financial consultant then asking them to complete
required formalities by bringing needed documents.

Main hurdle that I faced while approaching the people to listen to me was their indifferent
attitude towards insurance sector and reluctance to give some time to me. It was very much
difficult for me to make them ready to give their attention towards my business proposal.

Role of an insurance advisor

Advisor provides ongoing financial advice to his /her client/prospect. In official term prospect is
a person who can buy life insurance. Advisor studies the prospects needs and persuade them to
buy a policy.
Completes all formalities for proposal of new insurance, including filling up forms, collecting
premium, arranging medical examination, collecting proofs (of age/income), reports and
information required by the underwriter.

After having sold a new insurance policy, the advisor has to ensure that the policy continues
without a lapse till it becomes a claim. For that reason an advisor has to do the following:-
1. Keep in touch with the policy holder to make sure that renewal premiums are paid in time.
2. Ensure that nominations are made or changed, if necessary.
3. Assist in collecting claim amounts.
An insurance advisor acts as a link between the clients and the company. A lot depends on it to
bring new business for the company But an advisor to us means much more than a salesman or a,
saleswoman. They are regarded as an ambassador of the company and considered as a biggest
strength of the company. So, the recruitment and development of an insurance advisor needs a
great attention.

Opportunities in front of a financial consultant

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

2. Flexible working environment.
3. To be his/her own boss.
4. Unlimited earning potential.
5. To be part of world class team

Benefits of being a financial advisor-

Commission:- Different products will have different commission structures. This commission
varies between 7.5% to 40%.
Renewal Commission:- It is paid at the following rates:
2nd yr: onwards.
Bonus: - Every year company declares bonus in favor of financial advisors depending upon the
company’s over all profit.
Incentives:- Financial advisors are provided incentives when they achieve certain targets.
 Company rates for financial consultants
Basic 1st year commission for conventional plans (for policies issued prior to 21 st march
2007)
Name of the plan Premium paying term of 15 Premium paying term of
years & above less than 15 years
Endowment assurance plan 25% 20%
Money back plan 25% 20%
Children’s plan 25% 20%
Term assurance plan 20% 15%
Loan cover term assurance 20% 15%
plan
Personal pension plan 7.5% 7.5%
Firs year commission for conventional plans (for policies issued on or after 21 st march 2007)

First year premium conventional policies issued on or after 21 st march 2007.

Name of the plan 1st year commission

Endowment assurance plan 40%
Money back plan 40%
Children’s plan 40%
Term assurance plan 25%
Loan cover term assurance plan 25%
Personal pension plan 7.5%
 Basic commission payable on single premium conventional policies:
Name of the plan Basic commission as a percentage of
single premium received
Single premium whole of LIC 2%
Term assurance plan 2%
Loan cover term assurance plan 2%
Personal pension plan 2%
 Chapter-5

RESEARCH METHODOLOGY

The term methodology refers to the way to systematically solve the research problem. In this
various steps are followed to find the solution of the problem. Certain steps are :-

1.) Identification of problem

2.) Analysis of problem
3.) Choosing the method to solve the problem
4.) Collection of data
5.) Analysis of data
6.) Conclusion
Research Objective
To make a chain of financial advisors so that they can work as insurance advisor for the HDFC
Standard Life Insurance Limited.

Type of Research

Exploratory in nature-

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

 Primary data
 Secondary data

PRIMARY DATA

Sample unit: -

The research process was done by interacting with number of customers during the activities
performed, which included, markets, cold calling, canopies, etc. Sample Design consists of
Simple Random Sampling.

Sample size: - 100 people

Method of collection: -
Field procedure for gathering primary data included interview schedule in which the
questionnaires were filed by the interviewer.

Research Instrument:
Questionnaire

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

 Giving the respondents clear comprehension of the question.
 Inducing the respondents to co-operate.
 Giving instructions as to what is wanted.
 Identifying the needs to be known.
Limitations:
The following were the limitations that were there during the course of the study:
 1. Limited time period.
2. Less number of respondents.
3. Biasness of the respondents.

SECONDARY DATA

Method of collection data:-

Secondary data was collected from the various second hand data collection sources like,
magazines provided by HDFC Standard Life Insurance Company, Secondary data was also
provided by company executives, from Internet, Companies annual report etc.

Sources of secondary data:-

Magazines,
Newspapers,
www.google.com (Internet search engines)
And the data provided by the external guide.
 Chapter-6

Data analysis and Interpretation

Data Analysis is done by taking sample size of 100 respondents who were approached for
being financial advisor for the company. It has been shown with the help of following
graphical presentation.
 1. Occupation

Occupation No. of people %

Govt. 25 25
Private 30 30
Student 25 25
Other 20 20
Total 100
 Occupation

20% 25%
govt
private
student
other
25%

Er
30%

ror: Reference
source not
found
Interpretation:-
25% people are in govt. job.
30% people are in private job.
The percentage of students is 25%.
20% people are engaged in other kinds of jobs.

2. Marital status

No. of
Married people %
Yes 65 65
No 35 35
 Marital status

no
35%

Err
yes
65%

or: Reference
source not
found
Interpretation:-
35% people are married.
65% people are not married.

3. Pan Card Holders

Pan No. of
Card persons %
Yes 60 60
No 40 40
 Pan card

60

60
40
50
40 Yes

30 No

20
10

E
0
1

rror: Reference
source not found
Interpretation;-
The percentage of pan card holders is 60%.
40% people do not possess pan card.
4. Household income

Household income No. of respondents

.>2 lakhs 48%
2 to 4 lakhs 30%
< 4 lakhs 22%

Income

22%

.>2 lakhs
48%
2 to 4 lakhs
< 4 lakhs

30%

Erro
r: Reference source
not found
Interpretation;-
The persons having annual household income less than 2 lakhs are 48% ,between 2 to 4 lakhs
are 30% and more than 4 lakhs are 22%.

5. Job satisfaction

Job
satisfaction %
yes 55%
No 45%
 Job satisfaction

60% 55%

50% 45%

40%

Series1
30%

20%

10%

0%
yes no

Error: Reference
source not found
Interpretation;-
Among all respondents 55% persons are satisfied with their current job while rest 45% are
not.
6. People known by respondents

No. of people known by respondents

0 to 40
10%

40 to 80
27%
Above 80
63%

Interpretation:-
Out of 100 people, 10% people know persons between0 to 40, 27% says that they know 40
to 80 persons and 63 % are familiar with more than 80 persons.
7. If offered a chance to earn extra income

Chance to earn extra income No. of respondents %

Yes 88 88
No 12 12

Chance to earn extra income

12%

Yes
No

88%

Interpretation:-
88% respondents would like to earn extra while rest 12 % were not bothered to earn extra
income.

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

Income No. of people %
> 50,000 45 45
50,000 to 2lakhs 36 36
< 2 lakhs 19 19

No. of people to earn within the given range

19%

19%

45% > 50,000

45%
50,000 to 2 lakhs
< 2 lakhs
36%

36%

Interpretation:-
The percentage of people is 45, those who would like to earn more than 50,0000.
36% people would like to earn between 50,000 to 2 lakhs and the intensity to earn more than
2 lakhs is possessed by 19 % people.

8. Time devoted for extra income

Time devoted to earn extra
income No. of respondents %
< 4 hours 36 36
2 to 4 hours 52 52
> 2 hours 12 12

> 2 hours
12

12

2 to 4 hours
52

52

< 4 hours
36

36

0 20 40 60 80 100 120

No. of rspondents %

Interpretation:-
36 % respondents could devote more than 2 hours, 52% could give their 2 to 4 hours and the
capacity to give more than 4 hours is possessed by 36%.

Chapter-7
 FINDINGS

INSURANCE SECTOR:-

 Generally people are not interested in joining the insurance sector

 People are still unaware of the benefits of the private insurance sectors, they still
believe that LIC is the most reliable one.

 The craze for becoming an agent has gone down because of the so many
insurance companies in the market and all of them aiming to increase their agents.

 Rural people are not fully aware of the commission of the agents.

 If offered 88% respondents would like to earn extra while rest 12 % were not
bothered to earn extra income.

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

HFDC SLIC :-
 The company is too much flexible in considering the qualifying score of its
candidates who they select to become financial consultants.

 The fee charged by the company for financial consultant is a bit high in
comparison to the other insurance companies.

 HDFC’s ratio of the candidates becoming a consultant and getting licensed is just
25% which is low in comparison of the other insurance companies.

 Though the input output ratio of the company in terms of becoming consultants
for the company is low, then also company is growing their as their EPI is good
enough to cover up their losses in channel development.
 Chapter-8

Limitation of project
 It was not possible to understand thoroughly about the
different marketing aspects of the Financial Consultant within
60 days.
 As stipend, money was not given it was difficult to continue
the project work.
 All the work was limited in some limited areas of Gurgaon so the
findings should not be generalized.
 Chapter-9

Suggestions
Try to make them aware as much as possible regarding product profile which is best in
the market like life time, life time pension and smart kids.
 Convince them by saying that we also have an evening class or on line
training program so that; that person can easily afford this time.
 If the person will make one policy he/she will be able to earn that much of
money by means of commission.
 In N.C.R average fixed salary is 2500/-3500/ But from this kind of job
profile if person is eligible then he/she can earn at least 5000,' on words.
 I observed that people in general have the perception that insurance is only for
upper class people. And it is useful in case of tax saving. People should be made
realize that it is a great way of saving for the future too. There is a high need for
education and awareness of the benefits that insurance policies provide.
 BIBLOGRAPHY
The various source from where I collected data’s are as follows.
 Internet Sites:
www.hometrade.com
www.hdfcslic.com
www.indiahousing.com
 News paper:
The Economic Times
Times of India
Business standard.
 Magazines:
Business Today
Insurance World
Money

 Books:
Marketing Management (Philip Kotler)
Research Methodology,
(C.R.KOTHARI)
 Questionnaire

HDFC Standard Life Insurance

Name- ______________________________________

Qualification- ________________________________

Occupation- Govt. Pvt. Student other

Married- Yes No

Address- __________________________________________
__________________________________________

Contact No. - Mobile ________________________

Land line ______________________

Pan card- Yes NO

1) Currently working with which company- __________________________

2) House hold income- ___________________________________________

3) Are you satisfied with present job- Yes No

4) Number of people known by you-

a) 0-40

b) 40-80

c) Above 80

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

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

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

8) Your suggestion about HDFC as a brand

_____________________________________________________________________________
_