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Chapter 1

COMPANY PROFILE

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INTRODUCATION TO INSURANCE

The business of insurance is related to the protection of the economies of asset every asset

has value & is expected to last for a certain period of time during which it will perform after that

the benefit may not be available but sometime after may get lost earlier, an accident or some

other unfitness may destroy it or make it non functional and deprive of the benefits. Which may

give to an adverse situation is a mechanism that helps to reduce the effect of such adverse

situation.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The petil can

not be avoided through insurances. The peril can sometime avoid. Through better safety and

damage control management. Insurances only tries to reduce the impact of the risk on those

who depends on that asset it only compensates the losses and that too, not fully only

economic consequences insured. if the loss is not financial, insurance may not be possible.

There are certain principles, which makes it possible for instanced to remain a fai

arrangement. It is difficult for any one individual to bear the consequences of the risk that he is

exposed to it will become bearable when the community shared the burden. The second is that

peril should occur in accidental manner. Insurance is done

Against the contingency that may happen in the case of human being, death is certain but the

time of death is not uncertain in the person who is terminally ill. The time of death is not

uncertain. Through not exactly known not be insured.

A human being is an income-generating asset. Ones manual labour, professional skill and

business acumen are the asset. This asset also can be lost through unexpectedly early death

or through sickness and disabilities caused by accidents. So life insurance is necessary to help

those who depends on the income which is lost due to accident.

CONCEPT OF INSURANCE

Basically insurance is a device to share the losses of few, by transferring a portion of the loss

to the insurance company in exchange for a certain cost. This means that a lot of people who

think they may suffer a loss, each put in a little money to cover financial costs for those among

them who actually sustain the loss. Obviously, since there is a cost you dont insure anything

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or everything, you will cover only those things that would cause a substantial financial burden

unexpectedly on you, if you had to replace them on your own.

Hence, insurance works on the concept of risk sharing, which divides risk a among may

people. For example, all of you run the risk of having your car stolen. Hhowever the past may

tell us that only of your cars will actually be stolen this year. Therefore you may all get together

and decided to each pay a small amount that will go to the unlucky person (could be you) wilactually may have his car stolen.

HISTORICAL PERSPENCIVE: -

A French proverb says: Deeper you look into the history; further will be your vision. So before

we strategize, let us have a quick look into the history. Insurance is some form is as old as

historical society. So-called bottomry contracts were know to merchants of Babylon as early as

4000-3000 BC and was well understood in ancient Greece as early as the 4 th century BC

Under a bottomry contract, loans were granted to merchants will the provision that if the

shipment was lost at sea the loan did not have to be repaid. The interest on the loan covered

the insurance risk. Ancient Roman law recognized the bottomry contract in which an article of

agreement was drawn up and funds were deposited with a money changer.. In Rome there

were also burial societies that paid. The insurance contract also among other maritime nationa

in commercial contact with Greece. In China, merchants who had to travel on the dangerous

Yangtze River spread their goods on several ships, so if a ship wet down, no one person

would lose all of his goods. All these established the basic idea of insurance.

Distribute the costs among a large group of people to share the losses incurred

by a few.

We are excluding the treatment of Social Security, a type of insurance, which is in itself a very

big subject and will be dealing in four major types of insurance commonly referred as: -

1. Life insurance handles the risk of financial loss because of an unexpected death o

the risk that the person may outlive the financial resources. Understanding life

insurance become easier when you realize the fact that insurance was a concept

developed to transfer a persons risks to another party, thereby protecting him/her in

the event of an economic loss. Life insurance relives you and your family of serious

financial risk. It is an easy and affordable means of providing financial security for

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you and your family in the event your death or your inability to earn due to physica

disabilities.

One of the earliest forms of life insurance was in the times of the Greeks and

Romans, when all surviving members, following an individual death made

contributions for burial services.

2. Health and Disability insurance handles the risk of financial loss due to illness, injuryor medicals bills.

3. Property insurance includes many types of insurance that handle damage or loss of

property. Three basic types of property loss are:

(i) Loss of item itself : Example : a stereo is stolen.

(ii) Loss of income from the used of the item. Example: a stereo store burns

down and the store is not able to conduct business until it moves into a

temporary new building. The money that they would have made from norma

business that they did not make because they had to such down for a few

days is loss of income.

(iii) The extra expense due to this loss of the article. Example: the stereo store

had to rent a building until their normal store was repaired. Extra expense

would be the cost of renting the temporary building.

Type of property insured incurred homes, business, electronics & electrical, animals,

furniture, jewellery, clothing, guns etc.

2. Casualty insurance includes a variety of different insurance coverage.

Other types of causality insurance: -

Auto

Workers compensation

Crime and vandalism.

These may appear technical and confusing. So let us go trough some of the basic

terminology and concepts insurance companies use in their business. When we talk about

insurance we are primarily concerned with insurable items. To be insurance the following

criteria must be met:

1. There must be a large number of persons available for insurance with a similar potentia

for loss-the law of large number.

2. Loss must be definite (death, car damaged in an accident).

3. Loss must be accidental in nature (unexpected and beyond the control of the insured).

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4. Loss must barge enough to cause a financial burden.

5. The cost of insurance must be affordable. The insurance cost should be traction of the

value of the item.

6. Loss must be calculable; a monetary amount must be determined for the loss.

Indian insurance industry: -

With this general introduction, now let us get into the Indian scenario for a fuller treatment ofour treatise. The following facts show how under-developed the Indian insurance business is

due to state monopoly and lack of aggressive marketing of insurance policies: -

Per capita insurance premium in India is a mere US$ 10. Even in China, the

corresponding figure is US$27.78, when both the countries have the same premium

figure as % of GDP (Refer Table 1).

Insurance premium in India accounts for a mere 2.3 per cent of GDP

( compared of the world average of 7.8 per cent )

Insurance premium as a percentage of savings is barely 5.95 per cent in Indian

(compared to 52.5 per cent in UK)

The above figures show the huge scope that exists for new business in the insurance

sector.

Liberalization will obviously bring about strong marketing of different policies by rival firms,

with is expected to benefit the customer through a wider range of products and better

service. Till recently, policies have only been bought by customers, rarely marketed by

the insurance firms.

Insurance business is mainly divided into four classes:

1) Life insurance,2)Fire,3)Marine, and 4) Miscellaneous insurance.

Life insurance transacts life insurance business; General Insurance transacts the rest. No

composites are permitted as per law.

Indian insurance industry as on 1,4,2000, comprised of only two players in the state sector:

Ex. - Life insurance Corporation of India ( LIC)

Ex. - General insurance Corporation of India ( DIC)

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Legislation (as on 1.4.2000)

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

business in India is insurance Act, 1983 and insurance Regulatory & Development Authority

Act, 1999. the key provisions for IRDA Act. Are: Single Company cannot carry on the life and non-life insurance business; separate

application and separate companies in case the same set of bidders desires license

in both.

Foreign equity capped at 26% in life general and reinsurance ventures.

Mandatory for Indian promoter to divest shareholding in excess of 26% after 10

year from the commencement of business.

Minimum capital fixed at Rs. 1 billion for life and general business and Rs. 2 billion

for reinsure business.

Private insurance to maintain a Minimum Solvency Margin of

Rs. 500 million for life insurance

Highest of Rs 500 million or 20% of net premium income or 30% of net

incurred claims for general insurance and

Rs. 1 billion for reinsurance.

Policy holders funds to be invested within India

Compulsory rural and social sector exposure; norms to be specified.)

Future Trends: -

Existing players are far too big to be dislodged from their leadership positions, but

enough competitive space creation is possible by the new entrants.

This opening up (liberalization), will force players to offer innovative products, better

packaged, smooth delivery systems and improved customer pressures.

Untapped or under served segments or niches will get exploited, due to competitive

services.

Both the existing and new players will attempt new methods of delivery system and

service. (Online proposals, FAQS. ETC.)

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ABOUT THE COMPANY

HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance

companies, which offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias

leading housing finance institution and one of the subsidiaries of Standard Life plc, leading

providers of financial services in the United Kingdom. Both the promoters are well known for

their ethical dealings and financial strength and are thus committed to being a long-term player

in the life insurance industry all-important factors to consider when choosing your insurer.

Our 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

We 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

Our cumulative premium income, including the first year premiums and renewal premiums is

Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000 lives have been

covered through our group business tie-ups.

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History

The Standard Life Assurance Company

The Standard Life Assurance Company ("Standard Life") was established in 1825 and the firs

Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was

reincorporated as a mutual assurance company in 1925

The Standard Life group originally operated only through branches or agencies of the mutua

company in the United Kingdom and certain other countries. Its Canadian branch was founded

in 1833 and its Irish operations in 1838. This largely remained the structure of the group unti

1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK life

assurance and pensions operating model to capitalize on the opportunities presented by EC

Directive 92/96/EEC (the Third Life Directive) and offer a product range in that market with

features which local providers were unable to offer. In the 1990s, the group also sought to

diversify its operations into areas which complemented its core life assurance and pensions

business, with the intention of positioning itself as a broad range financial services provider.

Banking, Healthcare & Investments

The group set up Standard Life Bank, its UK mortgage and retail savings banking subsidiary,

in 1998 and Standard Life Investments, which had previously been the in-house investment

management unit of the groups life assurance and pensions business, was separated into a

distinct legal entity in the same year, with the aim of establishing it as an independent

investment management business providing services to both the group and third party retail

and institutional clients. The group acquired Prime Health Limited (subsequently renamed

Standard Life Healthcare) in the United Kingdom in 2000. Standard Life Healthcare expanded

in March 2006 with the acquisition of the PMI business of First Assist.

Standard Life Asia Limited/Joint ventures -

The groups Hong Kong subsidiary, Standard Life Asia Limited (SL Asia), was incorporated in

1999 as a joint venture and became a wholly-owned subsidiary of Standard Life in 2002. The

groups operations in Hong Kong were established to give the group a presence in the Far8


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East from which it could expand into China. The groups joint ventures in India with Housing

Development Finance Corporation Limited (HDFC) were incorporated in 2000 (in relation to

the life assurance and pensions joint venture) and 2003 (in relation to the investment

management joint venture). The groups joint venture in China with Tianjin Economic

Development Area General Company (TEDA) became operational in 2003.

Standard Life International Limited -

The group also incorporated Standard Life International Limited (SLIL) in 2005 for the

purposes of providing the group with an offshore vehicle, based in Ireland, through which it

could sell tax-efficient investment products into the United Kingdom. Sales of these products

commenced in 2006.

Service Company -

Following the groups strategic review in 2004, the group established a service company

structure for the provision of central corporate services to the groups business units. Standard

Life Employee Services Limited (SLESL) supplies a wide range of central services to the rest

of the group, including IT, facilities, legal and human resources services, and employs staff

working in the groups UK and Irish operations (other than SLI, SLB and SLH, which employ

their staff directly). This service company structure was created to enable Standard Life to

comply with regulatory restrictions on the provision of non-insurance services and to exploit

group-wide synergies.

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Board Members

Brief profile of the Board of Directors

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of

Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited

in a senior management position in 1978. He was inducted as a whole-time director of HDFC

Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief

Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered

Accountants (England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in December 2000. He is

currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and

became an Executive Director in 1993. He was appointed as its Managing Director in

November 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.

Mr. Alexander M Crombiejoined the Board of Directors of the Company in April 2002. He has

been with the Standard Life Group for 34 years holding various senior management positions.

He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr

Crombie is a fellow of the Faculty of Actuaries in Scotland.

Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group

and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning,

Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of

Directors in November 2005.

Mr. Keith N 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

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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. G N Bajpai was the former chairman of Life Insurance Corporation of India and Securities

and Exchange Board of India. Mr. Bajpai retired from Life Insurance Corporation of India with

more than 3 decades of experience and further served SEBI as its chairman for 3 years, during

which time he had strengthened the compliance enforcement in SEBI.

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 o

Independent Accounting Firms and has authored several papers of professional interest. Mr

Divan has wide experience in auditing accounts of large public limited companies and

nationalized banks, financial and taxation planning of individuals and limited companies and

also has substantial experience in structuring overseas investments to and from India.

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Partners

HDFC SDLC

HDFC Bank

Incorporated in August 1994 as HDFC Bank Limited, the bank now has a wide network of over

531 branches across 228 cities in India, and over a thousand networked ATM's.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. Thebank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered

office in MuBBAi, India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 1995

Business focus

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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound

customer franchises across distinct businesses so as to be the preferred provider of banking

services for target retail and wholesale customer segments, and to achieve healthy growth in

profitability, consistent with the bank's risk appetite. The bank is committed to maintain the

highest level of ethical standards, professional integrity, corporate governance and regulatory

compliance. HDFC Bank's business philosophy is based on four core values - OperationaExcellence, Customer Focus, Product Leadership and People

Ratings

Credit Rating

HDFC Bank has its deposit programmers rated by two rating agencies - Credit Analysis &

Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposi

programmer has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents

instruments considered to be "of the best quality, carrying negligible investment risk". CARE

has also rated the Bank's Certificate of Deposit (CD) programmer "PR 1+" which represents

"superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt

Ltd. (100% subsidiary of Fitch Inc.) has assigned the "TAAA (India)" rating to the Bank's

deposit programmer, with the outlook on the rating as "stable". This rating indicates "highest

credit quality" where "protection factors are very high". HDFC Bank also has its long term

unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India

Private Limited. CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch

Ratings India Pvt. Ltd. has assigned the rating "AAA(ind)" with the outlook on the rating as

"stable". In each of the cases referred to above, the ratings awarded were the highest

assigned by the rating agency for those instruments.

Awards

Our single-minded focus on product quality and service excellence has helped us garner theappreciation of both national and international organizations

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian

Bank". We realized that only a single-minded focus on product quality and service excellence

would help us get there. Today, we are proud to say that we are well on our way towards that

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goal. It is extremely gratifying that our efforts towards providing customer convenience have

been appreciated both nationally and internationally.

Bank Insurance

HDFC SDLC

SARASWAT BANK SIGN BANCASSURANCE PACT WITH HDFC STANDARD LIFE

Saraswat bank, the largest bank in the co-operative banking sector is signed a

Bancassurance pact with HDFC standard life insurance company ltd for distributing the latters

stage of life insurance and pension product.

Speaking on the occasion Mr. S.k. Banerji, managing director, saraswat bank said. we have

tied up with HDFC standard life as it is a leading insurance company. It has a range of

insurances and person product. Which can be customized to the specific needs of each of our

customer. This tie up will help us serve our customers better by delivering a wider Stage good

quality financial solution to them.

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Speaking on this tid-up Mr. Satwalekar, managing detector & CEO. HDFC standard life said,

we happy to partner with saraswat bank as they are largest co-operative bank out association

with them would give us an access to their large customer base and provide us an opportunity

to deepen our geographical coverage through their balance network. Saraswat bank and has

a network of 75 fully computerized branches cover the five states maharashtra, gujrat

madhya pradash, karnataka, and goa all. Bvanscjes are inter connected allowing the customer

to enjoy any where banking facilities. The bank is also providing 24 hr service through atms

at several locations. The bank has very strong customer base of individuals and corporate.

The bank is the first co-operative bank to provide marchant-banking service. Saraswat bank

got a permanent license to deal in foreign exchange in 197 presently the bank having

correspondent relationships in 43 countries covering 13 currencies with over 118 Banks

HDFC standard life is leading new life insurance company has over 300000 policyholders. It

recently achieved a major mile stone when its sum assured crossed rs. 10000cr. In February

2004. Through range of product, the company is able to meet customers savings protection

investment and pension needs in adition. The customer has flexibility to customize the plans

by adding optional benefits call rider, at nominal price while the company offers call rider of

product. The company differentiates it self through per-sale advice, efficient post sale service

and financial security that it

Financial Performance

Premium Income grows by 112%

HDFC Standard Life has recorded a strong year on year growth of 112% for the period April-

March 2005- 06, in comparison with the same period 2004-05, with new business first year

premium of Rs.1029 crores. The growth achieved by the company was considerably higher

than the private sector industry average of 84% for 2005-06. In terms of effective premium

income (EPI), which gives a 10% value to a Single Premium policy, and is an internationally

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accepted indicator of an insurance companys performance, the EPI grew by 103% from

Rs.436 Cr. to Rs. 887Cr.

HDFC Standard Lifes growth in new business is a result of number of lives insured as wel

as, an increase in the average premium. For the individual business, volume measured by the

number of lives insured, witnessed a 32% growth. The average premium also increased by

62% from Rs.17,000 in 2004-05 to Rs. 27,500 in 2005-06. Commenting on the huge potential

that exists in the Indian market today, Mr. Deepak Satwalekar, Managing Director & CEO of

HDFC Standard Life emphasized, The GDP has been growing over 8% per annum and 47%

of all savings are now in financial saving forms; 16% of savings is in the form of insurance

premiums and another 16% is in Provident Fund and Pensions i.e., 32% of Indias financial

savings of the household sector are available to be tapped. Therefore, growth for the private

life insurance industry is inevitable and HDFC Standard Life is confident of maintaining a

steady growth pace.

HDFC BEATS SBI AS MOST VALUABLE FINANCIAL FIRM

HDFC group has over taken State bank of India as the most valuable financial group in the

country. The market capitalization of HDFC and HDFC bank together works out to Rs 30,729

crore. As against this the combined market cap of SBI, state bank of beaker and jaipur, state

bank of my sore and state bank of travancore works out to rs 28,127 crore. The countrys

second largest bank and biggest private player icici bank has market cap of rs 23,291 crore

HDFC bank shown strong growth in fee income, bucking the trend among other leading Banks.

Highlighting HDFC Standard Lifes differentiators, Mr. Deepak Satwalekar said, Ou

Company has the most competitive fund management charge, which is the lowest in equity

based products. Our fund management charge is as low as 0.8% per annum, the key to

enhancing long-term returns. Our other differentiator is that we believe in offering life insurance

solutions to customers based clearly on their needs, and Disha is the way it is done.

Disha is a Professional Sales Skills Training Program. The delegates in this program are

introduced to a Need-based selling approach, which can cater to all our clients opting for life

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insurance solutions. Disha is aimed at providing a good service to the client and building long-

term relationships. Contribution to the individual business premium income by the different

channels of distribution also changed significantly, compared to last year. The Corporate

Agency and Bancassurance channel has grown tremendously and currently accounts for 43%

of the companys business. Speaking on this, Mr. Satwalekar said, The strategy to

concentrate on activating a limited number of bancasurance partners rather than going in forsigning up a large number of banks in the early years, also paid off. Our key to achieving

bancassurance success is our belief in a partnership approach,

customized product offerings, highly ethical dealings and providing good value to our partners

and their customers.

HDFC Standard Lifes offerings of Employee Benefit Solutions, to the corporate sector

through Group Business, have met with increased success with year on year growth of 174%.

Commenting on the strong growth of HDFC SLs Group Business, Mr. Satwalekar said, Our

excellent fund performance on retirement products and increase in our client base with 150

clients cutting across a spectrum of industries spanning from multinationals to PSUs to the

older business houses, have been the highlights of the year.

Ongoing training for conventional products and specialized training for unit linked products for

more than 33,000 of our financial consultants has also helped its customers choose the

products best suited for their need for protection, savings, investments and pensions.

HDFC Standard Life is the only company requiring its sales force to undergo specific training

in ULIPs before they are permitted to sell the same. There has been a huge jump in the

number of its Financial Consultants who have qualified to become members of the prestigious

Million Dollar Round Table (MDRT). From 124 members as on 31st December 2004, the

number has increased to 318 members as on 31st December 2005.

HDFC Standard Life continues to have one of the widest reaches amongst new insurancecompanies. The Companys geographical presence has also increased and covers 169 offices

across the country.

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Table Showcasing Financial Results:

ParametersApr-Mar2004-05(Rs. Cr.)

Apr-Mar2005-06(Rs. Cr.)

% Growth

Total received premium 668.40 1532.21 129.23

i. New Business 486.15 1028.94 111.65

ii. Renewal 182.25 503.27 176.14

Effective Premium Income(Total)

436.08 887.30 103.47

Group Business Premium (EPI) 49.40 135.15 173.58

PRODUCTSWe at HDFC Standard Life realize 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

Investment Plans

OurSingle Premium Whole Of Life plan is well suited to meet your long term investment

needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans

Our Pension Plans help you secure your financial independence even after retirement

Our Pension range includes our Personal Pension Plan, Unit Linked Pension, UnitLinked

Pension Plus

Savings Plans

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Our Savings Plans offer you flexible options to build savings for your future needs such as

buying a dream home or fulfilling your childrens immediate and future needs.

Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked

Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngster, Unit Linked

Youngster Plus .

MARKET SHARE OF THE INSURANCE COMPANIES

LIC

BajaHDFC

ICICI

TATA

MAX

KOTAK

ING

BIRLA

SBI

AVIVA

METLIFE

RELIANCE

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Ch

apter - 2

PROJECT PROFILE

Company %MarketShare

LIC 64.5

BAJAJ 6.2

HDFC 3.7

ICICI 10.7TATA 2

MAX 2

JAIPURK 1.7

ING 1.2

BIRLA 2.9

SBI 2.2

AVIVA 1.8

METLIFE 0.6

RELIANCE 0.4

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RECRUITMENT

Introduction:After the required number and kind of human resources are determined, the

Next step in the procurement function is to locate the sources wherefrom the required human

resources can be available and to attract then towards the organization. This is known as

recruitment.

Meaning of RecruitmentAccording to Flippo, Recruitment is the process of searching for prospective employees

and stimulating and encouraging them to apply for jobs in an organization. In the words of

Yoder. Recruitment is a process to discover the sources of manpower to meet the

requirement of the staffing schedule and to employ effective measures for attracting that

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manpower in adequate number.2 Recruitment needs are of there types planned, anticipated

and unexpected, planned needs arise from change in organization.

An analysis of these definitions reveals the following features of Recruitment:

(i) Recruitment is a process or a series of activities rather than a single act or event.

The activities in this process are described under the next heading.

(ii) Recruitment is a linking activity as it brings together those with jobs( employer) and those seeking jobs. (Prospective employees)

(iii) Recruitment is a positive function as it seeks to develop a pool of eligible person

from which most suitable ones can be selected.

(iv) The basic purpose of recruitment is locate the sources of people required persons to

meet job requirement and attractive such people to offer them selves for

employment in the organization.

(v) Recruitment is an important function as it makes it possible to acquire the number

and type of persons necessary for the continued functioning of the organization.

Careful recruitment of employees is particularly important in India because the

chances of mismatching the job and the person are greater. Due to widespread

unemployment the job seeker tends to accept any job irrespective of his suitability.

(vi) Recruitment is a pervasive function as all organization engage recruiting activity. But

the volume and nature of recruitment varies with the size, nature and environment of

the particular organization.

(vii) Recruitment is a two-way process. It taken a recruiter and a recruiter. Just as therecruiter has a choice whom to recruit or not, similarly the prospective employee can

choose for which organization to apply to be job.

(viii) Recruitment is a complex job because too many factors affect it. E.g. image of the

organization, nature of jobs offered, organizational policies, working conditions and

compensations levels in the organization, rate of growth of the organization, past

recruitment record, employment conditions in the community.

(ix) Trade union attitudes, labour laws, culture and environment ( e.g. sons of the soil),government policies ( e.g. reservation for SC / ST ). Most of these factors serve asconstraints restricting the freedom of management in recruitment.

Steps in Recruitment Process

The recruitment process consists of the following Steps :

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1. Recruitment process generally begins when the personnel department receives

requisitions for recruitment from any department of the company. The personnel

requisitions contain details about the position to be filled, number of persons to

be recruited, the duties to be performed, qualifications required from the

candidate, terms and conditions of employment and the time by which the person

should be available for appointment etc. A specimen of personnel requisition isgiven in Fig. 2.9.

2. locating and developing the sources of required number and type of employees.

3. Identifying the prospective employees with required characteristics.

4. Communicating the information about the organization, the job and the terms and

conditions of service.

5. Encouraging the identified candidates to apply for jobs in the organization.

6. Evaluating the effectiveness of recruitment process.

23

Human

Resource

Planning

Recruiting

RequiredPersonnel

Selecting

QualifiedPersonnel

PlacingSelected

Personnel

On Jobs

Finding andDeveloping

Sources of

Potential

employees

Search for prospectiveemployees

(a) Developing techniques(b) Attracting candidates

EvaluatingEffectiveness

Of recruiting

Internal

sources

Personnel research

Job ostin

Experience

Transferring to new job

Upgrading in same position

Promoting to higher job

Providing Information

External

Sources

Em lo ee referals

AdvertisinscoutingClarifying doubts


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According the Famulrao, recruitment process consists of five elements, namely a

recruitment policy, a recruitment organization, developing sources of recruitment

techniques used to tap these sources and a method of assessing the recruitmen

programmer. Fig. 2.9 depicts the elements of recruitment process along with place of

recruitment in the procurement function.

Recruitment Policy:

Recruitment policy specifies the objectives of recruitment and provides a framework for the

implementation of the recruitment programmer. It may involve commitment to principles such

as enriching the organizations human resources by filling vacancies with the best qualified

people, attitudes towards recruiting handicaps, minority groups, woman, friends and relatives

of present employees, promotion from within. It may also involve the organizational system to

be developed for implementing the recruitment programmer and procedures to be employed.

Recruitment policy should be based on the recognition that it is hard to find qualified

executives. A recruitment policy involves the employers commitment to such general

principles as

(a) to find and employ the best qualified persons for each job:

(b) to retain the most promising of those hired ;

(c) to offer promising opportunities for life time working careers;

(d) to proved facilities and opportunities for personal growth on the bob;

A properly planned and systematic recruitment policy is necessary to minimize disruption ofthe work due to changes in employment opportunities. A well-considered and per-planned

recruitment policy based on the goals, needs and environment of the organization will help to

avoid hasty or ill-conceived decisions and help to man the organization with the right kind of

personnel. The factors affecting recruitment policy include organization objectives, personnel

policies of the organization and of its competitors, government policies on reservation and

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sons of the soil, preferred sources of recruitment, organizations recruitment need, recruitment

costs and financial implications, selection criteria and preferences, etc.

There are several per-requisites of a good recruitment policy. It should:

(i) Abide by the relevant public and legislation on hiring and employment relationship.

(ii) Provide employees with job security needs and continuous employee.

(iii) Integrate organization need and employee needs;(iv) Provide each employee with freedom and opportunity to utilize and develop

knowledge and skill to the maximum possible extent ;

(v) treat a employees fairly and equitably relation ships.

(vi) provide suitable jobs and protection to handicapped, women and minority groups ;

(vii) Encourage responsible trade unions

(viii) Be flexible enough to meet the changing need of the organization.

Recruitment Organization

Recruitment practices differ from one organization to another. Some

Organizations like public sector banks adopt centralized recruitment whereas other

organization resort to decentralized recruitment. Under centralized recruitment persona

department at the hade office performs all the functions of recruitment. Every operating

department sends requisitions or indents for recruitment to there central office. On the

other hand, each department / unite carries out case of decentralized recruitment.

Centralized recruitment offers the following advantages:

(a) it reduces the administrative cost by consolidation all recruitment activities at one

place.

(b) It helps in better utilization of specialist.

(c) It ensures uniformity in recruitment and selection of all types of employees.

(d) It facilitates interchangeability of staff between different units / zones.

(e) It relives the line executives of recruitment problem thereby enabling them to

concentrate on their operational activities.

(f) It tends to reduce favoritism in recruitment and make the recruitment process

mort scientific.

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Centralized recruitment suffer from the following disadvantages.

(i) there is delay in recruitment as operating units cannot recruit staff as and when

required.

(ii) The central office may not be fully familiar with job requirements of different units

and the most suitable sources for the required staff.

(iii) Recruitment is not flexible because operating units lose control over therecruitment process.

Both centralized recruitment and decentralized recruitment have their own merits. The

choice between the two will depend on the management philosophy and need of the

particular organization. In some cases a combination of both the system is used. Lower

level staff is recruited centrally whereas middle and top level executives are recruited in

a decentralized manner.

Sources of Recruitment

Various sources of recruitment may be classified in two broad categories, namelyinternal sources and external sources.

Internal Sources : internal sources, consist of the following :-

(a) Present employee Permanent, temporary and casual employees already on the

pay of the organization are a good source. Vacancies my be filled up form such

employees through promotions transfers, upgrading and even demotion. Transfer

implies shifting on employee from one job to another without any major change in

the status and responsibilities of the employee. On the other hand, promotion refers

to shifting of an employee to a higher position carrying higher status responsibilities

and pay.

(b) Retired and retrenched employee who wants to return to the company may be

rehired.

(c) Dependents and relatives of deceased and disabled employees.

Internal sources have the following merits: -

(i) Morale and motivation of employees improve when they are assured

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that they would be preferred in filling up vacancies at higher levels. A sense of security

is created among employees.

(ii) Suitability of existing employees can be judged batter as record of

their qualification and performance is already available in the organization. Chances of

proper selection are higher.

(iii) It promoter loyalty and commitment among employee dues to sense ofjob security and opportunities for advancement. Stability of employment is improved.

(iv) Present employees are already familiar with the organization and its

Policies. Therefore, time and costs of orientation and training are low.

(v) The time and expenditure of recruitment are reduced as there is little

Need for advertising vacancies or arranging rigorous tests and interviews.

(vi) Relations with trade unions remain good because unions prefer

Internal recruitment particularly through promotions.

(vii) Filling of higher level jobs through promotions within the

Organization helps to retain talented and ambitious employees. Labour turnover is

reduced.

Internal sources, however suffer from some demerits. First it may lead

to inbreeding. Secondly it discourages flow of new blood in to the organization. Thirdly if

promotion is based on seniority really capable persons may be left out. Fourthly the choice in

selection is restricted. More talented outsiders may not be employed. Mobility of labour is

restricted. Chances of favouiritism are higher and growth of business is restricted by the limited

talent of insiders. Fifthly, all vacancies cannot be filled up from within the organization. Lastly

this source of recruitment is not available to a newly established enterprise .

RECRUITMENT

Internal Sources External sources

(i) Transfers (i) Press Advertisements

(ii) Promotions (ii) Educational Institutions

(iii) Placement Agencies

(iv) Employment Exchanges

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(v) Labour Contractors

(vi) Unsolicited Applicants

(vii) Recommendations

(viii) Recruitment at Factory gate

EXTERNAL SOURCES : External sources of recruitment lie outside the organization.These are as follows: -

Education and Training Institutions

(a) Recruiting Agencies.

(b) Employment Exchanges

(c) Labour Contractors.

(d) Gate Recruitment

(e) Similar Organizations

(f) Recommendations

(g) Press advertisements

External Sources Of Recruitment Offer The Following: -

(h) People having the requisite skill, education and training can be obtained.

(ii) As recruitment is done from a wider market, best selection can be made

irrespective of caste, sex or religion.(iv) Expertise and experience from other organizations can be brought.

(v) It helps to bring new blood and new ideas into the organization.

(vi) This source of recruitment never dries up. It is available to even new

enterprises.

(vii) External sources are best when suitable people from within are not available and

when the organization is diversifying or merging with other organizations.

External sources, however, suffer from the following disadvantages :-

(a) It is more expensive and time-consuming to recruit people from outside. Detailed

screening is necessary as very little is know about the candidate.

(b) The employees being unfamiliar with the organization, their orientation and

training is necessary.

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(C ) If higher level jobs are filled from external sources, motivation and loyalty of

existing staff are affected.

Methods of Recruitment: -

Recruitment methods or techniques are the means by which anorganization establishes

contact with potential candidates, provides them necessary information and encourages themto apply for jobs. These methods are different from the sources of recruitment. Sources are the

locations where prospective employees are available. One the other hand, methods are ways

of establishing links with the prospective employees. Various methods employed for recruiting

employees may be classified into the following categories :-

1. Direct Methods: Under direct recruitment scouting, employee contacts,

manned exhibits and waiting lists are use. In scouting representatives of the organization are

sent to education and training institution. These traveling recruiters exchange information with

the students clarify their doubts, stimulate them to apply for jobs, conduct campus interviews

and shirt list candidates for further screening.

They act in cooperation with the placement office/head of the institution. Another direct method

is to ask employee of the organization to contact the public and tell about the vacancies.

Manned exhibits involve sending recruiters to seminars and convention, setting up exhibits at

fairs and using mobile offices to go to the desired centers. Some organization use waiting lists

of candidates who have indicated their interest in jobs in person, through mail or over

telephone.

2. Indirect Methods: Advertisements in newspapers, journals, on the radio and television

are used to publicize vacancies. A well through out and clear advertisement enables

candidates to assess their suitability so that only those possessing the requisite qualifications

will apply. This method is appropriate when the organization wants to reach out to a large

target group scattered geographically. Whenever necessary a blind advertisement can be

given in which only box no is given without identifying the firm. Considerable details about jobs

to be filled and qualification required can be given in the advertisement. But a large number of

applicants may be unsuitable.

3. Third Party Methods: Various agencies can be used to recruit

personnel. Public employment exchanges, management consulting firms, professiona

societies, temporary help societies, trade unions, labour contractors are the main agencies. In

addition, friends and relations of existing staff and deputation method can be used.

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How HDFC makes a Financial Consultant?

The company would support you by providing the required training and regular coaching. We

also provide information in the form of sales aids etc. So that you are able to provide the best

service to customers. One of the principle responsibilities of our Business Development

Manager (BDM) is to ensure that each Financial Consultants supported at all times.

What would a career with HDFC SL offer you as a Certified Financial Consultant ?

1. This is one of the few professional where the employee gets to choose hisOwn timings for working.

2. This is one of the few professional where the employee gets to choose thecustomers, which he wishes to serve.

3. This is one of the few professional where there is unlimited opportunity to earnthere is no upper limit.

4. This ONLY professional where there are definite benefits derived for todayswork for the next 10-40 years.

5. This ONLY professional which gives unto 40% gross margin without ANYcapital investment in the business.

PROCESS TO BE FOLLOWED

1. Identify are to conduct survey so that we can get maximum of likely FC. FC are the primary

underwriters who explains the plan and advise on the correct insurance salutation that wil

meet the need of the consumer. FC should be educated, having good communication skill and

convincing power and above all have good social. So we have to search/find out the area

where we can find out target customer that is FC to collect the information of potential area we

go through newspaper, magazine. So that we can have knowledge of all honing in the city.

Than we select some area, which hold meeting, clubs, seminars and public joints we will go

there with our whole team to brief the persons about the company and fc thought the

presentation and oral conversation. With the held of LIC. presentation spectator get the

knowledge of company and work of FCs than we collect data from them. We also did door

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survey of good location so that we can catch more people. This survey give me information

about FC and some HNIs also we also target newly graduate as are need to be in job and

perform better by work to bring in the business for the company.

2. Identifying weather the prospects fit out profile or likely FC by administering Questionnaire.

After identify potential area we had to approach the person who fulfills the mandatory as wellas optional parameter of an FC. Mandatory parameter include that they do not have a life

insurance agency and has social contact base of more than 50 people after analyzing the field

questionnaire we can able to judge best out of the best and identify whether prospect fit our

profile of likely FC with this. This helps me in finding eligible and focused approach.

3. Determining whether prospect who fits out profile are interested in becoming a FC by

pitching to him about becoming an FC. Market is not easy to understand as it seems to be. It

is not possible all prospects who fits in profile of our likely FC become FC only 1% of them are

interested in becoming FCs after collection of suitable or likely FC we had to work and

convince them to become an FC with cooperation of the staff and my colleagues. We had

organized a seminar in our branch and invite all prospects who are interests in becoming FC

and then introduce them advantage of becoming FC like.

Very competitive commission structure

Commission levels will recognize top performers

Guaranteed maximum returns for the first year including basic plus bonus

Attractive incentives and perks

This really helps me out and we got people more interested for work.

4. Ensuring that the prospects who are interested are given to the branch toconvert.

Interested prospects are introduce to our branch manager, so that he can help in removing al

doubt in prospects mind, the information about them given to branch manager in written and

their questionnaire is shown to him. When branch manager approved him the person is

handover to staff to make him fill agency from and complete all other formalities. Submission of

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fees, from and other documents ensure to become an FC Prospect has to under go a training

program to have knowledge about insurance plans, company and its services. Then they had

to appear in examination and after clearance of that exam they get license and become

authorized FCs. This course deals with matters, which are basic and should be known to

every body in the insurance industry. The topics are dealt with a general manner. There would

be details, which could vary from company to company. Such differences could be on mattersrelating to organization or product or practices on underwriting, claims processing etc. FC will

have to acquire such knowledge. In order that they may serve the interest of there companies

well.

PROCEDURE FOR BECOMING AN FC

The insurance act 1938 lays down that an insurance agent must posses a license under

section 42 of that act. The licensed to be issued by the IRDA. The IRDA has authorized

designated persons, in each insurance company to issue the licensed on behalf of the IRDA

The free for the licenses of making an applicant etc. Have describe in the IRDA regulations. A

license issued by the IRDA will be valid for three years. The license may act an agent for a life

insurer for a general or a composite insurance agent working for a life insurer as well as

general insurer. No agent is allowed to work for more then one life insurance or more then one

general life insurance company. The qualification necessary before a license can be given are

that the person (individual, or corporate insurance executive) must.

Be at least 18 years old

Have passed at least the xii standard or equivalent examination. If he is to be appointed

in a place with a population of 5000 or more or x std otherwise.

Have under gone practical training for at least 100 hours in life or general insurancebusiness. As the case may be , from an institution, approved and notified by IRDA in the

case of a person wanting to become a composite insurance agent, the applicant should

have completed 150 hours practical training in life and general insurance business,

which may be spread over six to eight weeks.

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Have passed the pre recruitment examination conducted by the insurance institute ofIndia or any other examination body recognized by the IRDA

A person with the following disqualification in debarred from holding a license.

He has been found to be unsound mind by a court of competent jurisdiction.

He has been found guilty of criminal of trust, misappropriation, cheating, forgery or

abetment or attempt pt commit any such offence.

The license once issued can be cancelled whenever the person acquires a disqualification

Application for renewal have to made at least thirty day before the expiry of the license, along

with the renewal fee of Rs. 250. If the application is not made at least thirty day before the

expiry. But is made before the date of expiry of license. An additional fee of Rs 100 is payable

If the application made after date of expiry, it would be normal be refunded. Prior to renewal of

the license, the agent should have completed at least 25 hrs practical, training in life or genera

insurance business or at least 50 hrs practical in life and general insurance business in the

case of composite insurance agent. To know the acceptability of private insurance sector we

interviewed the agent of various private insurance companies and they are the person who is

in contact with the consumers and best to tell about accept ability.

Chapter-3

Research Methodology33


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Meaning of research

Research is common parlance reference to search of knowledge. One can also define

research as scientific and systematic search for pertinent information on specific topic. In fac

research is a art of scientific investigation

Research is an academic activity and as such the term should be used in technical sense

According to Clifford woody research comprises defining and redefining problems, formulating

hypothesis or suggested solution; collecting, organizing and evaluating data; making deduction

and reaching conclusion; and at last carefully testing the conclusion to determine whether the

fit the formulating hypothesis.

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TITLE OF RESEARCH

Title of research is under taken is acceptability and perception in private insurance sector and

recruitment of financial consultant for HDFC standard life insurance who are an authorized

salesmen for insurance acts on behalf of company.

Making business is the main motto of every organization in todays scenario insurance secto

is emerging with good business opportunities; so all companies are penetrating in insurance

sector to make more profit. Today insurance is not govern by public organization but private

companies are also coming big way.

The recruitment process is rational it is difficult to search for an likely financial consultant who

fulfill all optional and mandatory parameters to be an FC.

Although we face various problem regarding seeking information about target or to whom we

had to and hoe to approach but the co-operation from various friends, colleagues and specially

the staff we have completed our work with satisfaction.

OBJECTIVE OF THE RESEARCH

Financial Consultant are one who bring business for the company, they are attached with.

Objective of the research is to find out FCs for HDFC standard life insurance co. Ltd. Who wel

suited to the criteria of likely fc. Research is also focus on the acceptability and market

perception of the private insurances sector. To know the extent to which public rely on private

insurance sector. To know the pitfalls of private insurance company. It was a descriptive

research as it covers both widespread objectives. We collected data through various seminar,

clubs meeting and public joints. To know acceptability above private insurance we interviewed

existing FCs and some customers.

SIGNIFICANCE OF RESEARCH

Every one put his/her time money effort because of some signification. My studies had some

significance too.

TO HDFC STANDARD LIFE INSURANCE COMPANY: -

As bank got valuable data regarding acceptability of private insurance sector and pitfall of

private insurance in the private insurance in the insurance industry. Now the insurance

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company can take some significant steeps in the direction of increasing this market share

secondly standard life got appropriate FC, in their team who work dedicatedly for the company.

TO THE STUDENT: -

It also has a lot of significance to me we got the previous knowledge about various function of

insurance companies, their product and data regarding. The various services, benefits

provided by the companies. It helps us in identifying, targeting and segmenting the potential

area. It will help us in my future for the practical application in real life.

Research Design

A research design is the arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure. In

fact the research design conceptual structure with in research is conducted.

36

Define researchproblem

Review theLiterature

Design Research

SampleDesignCollection ofdataAnalysis ofdata

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f feedback

Sample Design:-

All time in any field of inquiry constitute a universe or population. A complete enumeration of

all times in the population is know as census inquiry .It can be presumed that in such an in

inquiry. When all items are covered no element is left & highest accuracy is obtained. But in

practice this may not be true.

Besides this type of inquiry involves a great deal of time money & energy. There for when the

field of inquiry is large this method because difficult to adopt because of resources involved

But when the field studies are taken in practical life, consideration of time cost all most

invariably to lead to a selection of only few items that is technically called a sample & the

selection process is called sampling technique .

RESEARCH MERHODOLOGY

37

Interpretation

& Findings


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Research methodology is the way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.

Date source: - primary / secondaryResearch: - surveyMethod: - random samplingSampling plan: - identify and select potential areaContact method: - questionnaire

OVERALL PURPOSE OF THE ROLE

To sell thr products of the company in a professional and ethical manner.

The set, monitor and achieve sales targets for self.

To positively promote the companys brand, its mission aims and values.

Relationships: -InternalBDM Resident Branch Manager

Sales Training ManagerCustomer Service Officer at the branch level

External

Customers

Chapter-4

FACTS & FINDINGS

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1.Age distribution of potential financial consultant.

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Age distribution of potential FC's

40yrs & above

10%

35yrs-40yrs

15%

18yrs-25yrs

20%

25yrs-30yrs30%30yrs-35yrs

25%

18yrs-25yrs 25yrs-30yrs 30yrs-35yrs 35yrs-40yrs 40yrs & above

Age No. of people

18yrs-25yrs 20%25yrs-30yrs 30%30yrs-35yrs 25%35yrs-40yrs 15%

40yrs & above 10%

Interpretation

As per the survey conducted for the recruitment of financial consultant at HDFC SLIC, 30% of

people i.e. 9 people out of 30 were between 25yrs to 30yrs. And only 10% people were above

40 yrs.

2.What is your educational Qualification?

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Qulification of potential FC's

0%10%20%30%40%50%

10thpass 12th pass Graduate Post

graduate

Qulification

No.o

fpeople

Series1

Qualification No. of people

10thpass 5%

12th pass 25%

Graduate 40%

Post graduate 30%

Interpretation

From the above table most of the people are qualified to become an FCs as per the IRDA

rules. 70% of people under the survey are Graduate & post Graduate.

3. Number of potential male in comparison to Females.

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0%

20%40%

60%

80%

100%

Male Female

Gender

No.

ofpeople

Series1

Gender No. of people

Male 85%

Female 15%

Interpretation

Under the survey of recruitment of FCs at HDFC SLIC Jaipur, Number of male interested to

become FCs are more than the percentage as compare to females. From the above table we

come to know that 85% of them were Male.

4. What is your current Occupation.

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Bussiness

30%

Salaried50%

Student

15%

Housewifes5%

Occupation of potential FC's

Bussiness Salaried Student Housewif es

Occupation No. of people

Business 30%

Salaried 50%

Student 15%

Housewifes 5%

Interpretation

On the part of occupation of potential FCs, 50% of people i.e. 15 were salaried people and 9

of them from Business Background.

5. Which Field do you belongs to.

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20%

30%

20%

10%

20%

0%

5%10%15%20%25%30%35%

Bankin

g

Pharma

Inve

stmen

t

Man

ufac

turin

g

Others

Field

No.ofpeople

Series1

Field No. of people

Banking 20%

Pharma 30%

Investment 20%

Manufacturing 10%

Others 20%

Interpretation

Under the survey conducted we come to know that most of the servicing people belongs to

Pharma sector i.e. 9 people belongs to this sector out of 30 people.

6 .Do you have experience of selling of Financial Products?

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0%

10%

20%

30%

40%

Below

1Yrs

1yrs-

2yrs

2yrs-

3yrs

3 yrs &

above

Experience in Yrs

No.ofpeople

Series1

Experience No. of people

Below 1Yrs 10%

1yrs-2yrs 25%

2yrs-3yrs 30%

3 yrs & above 35%

Interpretation

From the above table,35% of people under the survey, have more than 3yrs of sales

experience And only 10% of people have below one year of Sales experience.

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7. Are you interested to work with HDFC Standard life insurance as a financial

consultant?

Response to the recruitment

Possitive

60%

Negative

30%

Cant say

10%

Possitive Negative Cant say

Response No. of people

Positives 60%

Negative 30%

Cant say 10%

Interpretation

At last, there is a number of people who respond us in positive manner to become an FCs

and like to work with HDFC SLIC. Out of 30 people, 18 people responded in positive manner

and only 3 people didnt gave any answer to the question.

WOMEN ON TOP

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Insurance agents from the fair sex sell more policies & insurance are recruiting more women

Indian holds true specially for the better sales person than men. Direct selling accounts for a

major chunk natural empathy and social affability seem to be doing the track for women. The

proof. A number of women agent of life insurance companies qualified for the elite Mdrt

( million dollar round table) club in 2004 Mdrt is an exclusive club of top Indian players around

35 % of Mdrts were women in many cases the percentage of women Mdrt even more than thepercentage of women in the over all agent force.

Mdrt qualifying agents earn hefty commission. It as a title given to insurance agents who either

achieve a qualifying premium target of Rs 22 lakh or a base commission of Rs 5.5 lakh. Many

women not just house wives even professionally qualified working women take up the life

advisory services as a full time profession or a part time and get success by better conversion.

Womens gregarious nature makes her active social circle.

COMPANY MDRT WOMEN MDRT % OFWOMEN MDRT

ICICI PRUDENTIAL 533 189 38BIRLA SUN LIFE 242 92 38HDFC STD LIFE 124 36 29BAJAJ ALLIANZ 120 53 44JAIPURK LIFE 65 34 52MET LIFE 11 3 27SBI LIFE 20 4 20

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Chapter-5

SWOT ANALYSIS

STRENGTH

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HDFC and standard life both enjoy good and trusted brand name so as the HDFC

With 175 years of experience of standard life HDFC SLIC also strengthen by synergy of

partners.

Financial rating of companies

Flexibility of plans

Highly co-operative & skilled staff.

Sales oriented organization.

Aggressiveness of sales force in selling products.

The company has expertise in managing big business.

Effective and wider distribution network.

Product designed for each age group & every area of personal.

HDFC std life insurance provide unique training program for FC called Disha. The company enjoys a very high brand loyalty & recall value among its customer.

The company has a presence in all metros as well as in most of the major cities in

country.

WEAKNESS

Less coverage in rural areas.

Less staff

Lack in making follow up.

Lack of corporate agent.

Lack of customer services.

Lack of promotional activities.

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OPPORTUNITY

There is continuous growth in insurance sector.

People have started Turing towards private insurance sector as they know that security

and growth of money is better then another insurance company.

Government has also started investing in private insurance sector.

Market is fully to capture because the branch has recently set up its business.

THREATS

Competition in insurance sector is increase sing with the entry of private giants like

ICICI prudential, Bajaj Allanze, Sahara, Gic, LIC etc.

Selling attitude the company always has to be maintained in order to company other

insurance company.

Continuous follow up of the client and customers.

As LIC has strong market position so it is little bit difficult to capture the market.

Customer are still find risky to in private insurance sector.

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Chapter-6

CONCLUSION

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Conclusion

Being a trainee at HDFC Standard Life Insurance Company Jaipur, the project ofAnalyzing the Segment of Recruiting Advisors concludes with the

following:

Most of Advisors are from commerce back ground.

Charted accountant is the most effective person in the insurance market.

Higher premium are logged by C.A. in Jaipur district

Advisors belongs to Pharma sector were good at logging number of policies.

Students working at HDFC Standard Life Insurance Company. are more influenced with

pinnacle programs.

The distribution network of HDFC Standard Life Insurance Company is spreading like a

fire in jungle.

In Jaipur district the awareness about the company & its working is poor in Rajasthan.

Advisors are getting motivated with the various program and reward given by the

company for their performance.

More opportunity lies with the people from telecom sector.

This sector has more opportunity to grow.

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Chapter-7

RECOMMENDATION

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Recommendation

In the insurance market the competition is on the top. Working with fourteen private players

and LIC in the market, The Company has to pull up their shocks to penetrate the insurance

market. Being a trainee HDFC Standard Life Insurance Company I recommend the followings

point.

More concentration on people between age of 25 to 30.

Company should concentrate on people from other sector.

Unit Managers should be well in communication.

Company should play social role in society to come in light in rural areas.

Unit Managers should concentrate on Advisors with less sales experience.

Advisors should be trained in periodic intervals.

IRDA examination should be held in Jaipur.

Number of unit manager should be increased in Jaipur

Proper product knowledge should be given to Advisors.

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HDFC Standard Life Insurance Company. (Jaipur)Survey 2012-2013

PERSONAL INFORMATION

Name : ...Address : ...

......

Gender : Male/FemaleAge : .Martial Status : Single/MarriedContact No : ..Mobile. No

E-mail : ....

No of Adults in your family :

No of Children in your family :

Occupation : Dependent [ ]

Student [ ]

Business [ ]

Service [ ]

(Monthly income)

Academic Background : .

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Previous Work Field :

Banking & Finance [ ]

Medical science [ ]

Information Technology [ ]

Lawyer [ ]

Teaching [ ]

Others [ ]

Specify ..

Total Work Experience : Less than 2 years [ ]

More than 2 years [ ]

Willingness to work With HDFC Standard Life Insurance Company

Positive[ ]/Negative[ ].

Specify(Why).

Date : ..

THANK YOU for you kind co-operation & patience.

(Signature)

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Bibliography

1. www.dhfcbank.com

2. www.google.com

3. IRDA Journal 2006

4. Business world may 20065. Company Quarterly report.

6. Product Broachers.

7. Hindustan times.

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anish project

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