To Recruit Financial Consultants & To Sell Insurance Products In Hdfc Slic

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ON To Recruit Financial Consultants And To Sell Insurance Policies of HDFC SLIC. HDFC STANDARD LIFE Sar uttha ke jio Submitted in the partial fulfillment of the requirement of the award of Master of Business Administration (2008-09). UNIQUE INSTITUTE OF MANAGAMENT & TECHNOLOGY, GHAZIABAD Chaudhary Charan Singh University, Meerut. SUBMITTED TO:Dr. Diwakar Sir (Faculty) SUBMITTED BY:ANKIT KUMAR BBA VISem ROLL NO:-0703370047 TABLE OF CONTENTS 2 .Acknowledgment .Preface .Executive summary .Company overview Page no.1 2 3 4 .Swat analysis .Research methodology .Products .Target/Task Set .Strategy Adopted .Achievements and learning . Awards/Rewards received .Analysis of performance v/s Targets .Market segmentation .Market feedback .Recommendation Conclusion 17). Bibliography - 6 14 29 52 56 61 65 66 67 70 71 74 81 3 Acknowledgement 4 Co-ordination, Co-operation and Command of the people at various levels go into the successful accomplishment of any task assigned to me. It is impossible to thank each of them individually but hereby I make a sincere effort to thank some of them. Nothing in this world can be achieved without the help and blessing of almighty god. The first boss is the guide to the experience, which is the first step towards one’s success or failure. I couldn’t have better supervisor for the launching pad of my career. I am deeply indebted to Ms. SWETA SINGH (Unit Manager), Mr. Rahul Tomar (Channel development Manager) for providing me with an opportunity to do my Summer Project in HDFC STANDER LIFE. MY special thanks go to Mr. A.H. Khan (H.O.D., Management, UIMT, Muradnagar) who has molded me to handle such critical project. I am deeply indebted for his guidance. I am grateful to Mr. Vineet Agarwal (Faculty, B.B.A., UIMT, Muradnagar) for giving me the opportunity to do this project. Irrespective of all other benefits, it was the unconditional support and aid of my family, who enabled me to achieve to fullest extent of my endeavor. It would be unfair of me if I do not thank the staffs of the HDFC STANDER LIFE of Sector-62, Noida branch for creating a congenial atmosphere for my work. 5 Preface 6 I am the student of BACHELOR OF BUSINESS ADMINISTRATION at UIMT, Muradnagar belonging to 2006-2009 Batch. The submission of this project report is the part of the curriculum of the B.B.A. course. Through this project report, I would like to share our on job experience with HDFC stander life in the insurance field. The insurance sector in India has come to a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. During the training period I met a lot of people and learnt a lot. There were instances when I thought ‘what the hell I am doing in this company’ but then i thought everybody is doing the same thing some way or the other and therefore, i decide to sick with the company. i played my part with complete honesty and now only the result is awaited in the time to come. 7 Executive Summary 8 The Indian Insurance Industry is broadly segmented into public and private insurance companies. Before year 2000, only public sector insurance companies were allowed to do business in India. But after year 2000, insurance sector was thrown open for private insurance companies as well. HDFC Bank was incorporated in august 1994 in the name of “HDFC Bank limited”, with its registered office in Mumbai, India. The bank commenced operations as a scheduled commercial bank in January in 1995. But as of now there now around 15 private life insurance companies and around 10 private non-life insurance companies doing business in India. The objective of the project was to survey the market and convince the most suitable person from different segments for working as advisor in HDFC Stander life. Beside this the report is prepared with an aim to provide an overvie w of present Indian Insurance Industry. Also with LIC, heading the public life insurance companies and HDFC Stander life heading the private life insurance players, this report also provides a brief of products provided by HDFC Stander life and it’s selling. 9 COMPANY OVERVIEW 10 COMPANY PROFILE: HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing finance institution and Standard Life Insurance 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. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2). HDFC Standard Life Insurance is a new Indian life insurance company that operates out of 52 locations. It offers clients a range of insurance plans to meet their savings, investment and protection needs. In the financial year 2002-03, the company registered a year-on-year growth of over 260%. It is also the first new life insurance company to declare its third successive bonus for participating policy holders. HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. 11 The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer. 12 The Bank assurance partners of HDFC Standard Life Insurance Co Ltd are:- 13 SWOT ANALYSIS 14 SWOT ANALYSIS OF HDFC SLIC LTD.: STRENGTHS: - 1. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000. 2. The company has covered over 15,27,000 lives year ending March 31, 2008. 3. June, 2007 Received PC Quest Best IT Implementation Award 2007. 4. January 2007 HDFC SLIC Ranked 29th Most Trusted Indian Brand. 5. February, 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007. 6. HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending programmed. This renders it more than capable to meet the new challenges that have emerged. 7. HDFC SLIC is the first new life insurance company to declare its third successive bonus for participating policy holders. 8. Company has an annual turnover of Rs. 3, 865 crores. 15 9. HDFC SLIC Ltd has a network of 118 officesRated by 'Business world' as 'India's Most Respected Private Life Insurance Company' in 2004. 10. Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal finance magazine. 11. Company has strong values and beliefs. WEAKNESSES: 1. Company is not dealing in Health insurance Plans. 2. Their allocation charges are greater in comparison of competitors. 3. Premium payment modes are less in comparison of competitors. 4. Minimum Lock in period is 5-years where in other companies its 3-years. OPPORTUNITIES: - 1. Awareness in the minds of customers towards the importance of Insurance is also providing opportunity for the company to grow. 2. Company has a lot of customers for different divisions of business. 3. Extra earning options of company are very helpful for providing opportunity to build a strong network for the 16 company to grow. THREATS: - Life Insurance Corporation of India ICICI Prudential Life Insurance SBI Life Insurance ING Vysya Life Insurance Met Life India Life Insurance Shriram Life Insurance Birla Sun Life Bajaj Allianz Life Insurance Max New York Life Insurance Aviva Life Insurance Bharti AXA Life Insurance Company Limited Kotak Mahindra Life Insurance TATA AIG Life Insurance Reliance Life Insurance Company Limited(formerly known as AMP Samar LIC) 17 Market Share (%) ICICI Prudential 6% 6% 6% 34% Bajaj Allianz HDFC Standard SBI Life* Birla Sun Life 10% 24% Reliance Life Insurance Max New York 14% INTERPRETATION:18 Among the whole insurance sector ICICI Prudential has 34% market share,Bajaj Allianz has24% mrket share,HDFC has 10%,SBI has 14%,Birla Sun Life has 6% Reliance Life Insurance has 6% and Max New York also has 6% market share. 19 THE RANKING OF INSURANCE COMPANY The Rankings LIC ICICI-PRU HDFC TATA AIG AVIVA LIFE BAJAJ ALLIANZ ING VYSA MAX NEW YORK 59 55 52 49 48 48 45 45 CSI Score Series1 INTERPRETATION:LIC on 1st rank, ICICI Prudential on 2nd ,HDFC on 3rd ,TATA AIG on 4th AVIVA LIFE on 5th ,BAJAJ ALLIANZ on 6th ,ING VYSA on 7th and MAX NEW YORK on 8th rank according to their SCI Score 59,55,52,49,48,48,45and 45 respectively. 20 LOYALTY SEGMENTATION LOYALTY SEGMENTATION LIC ICICI Prudential HDFC Standard Life Aviva Life Bajaj Allianz TATA AIG ING vysya Max New York Industry Avg 0 High risk Trapped 20 40 60 80 100 120 Accessible true loyals 21 PERFORMANCE MEASURES LIC ICICI Bajaj TATA AIG 57 61 60 53 52 53 60 75 HDFC Standard Life 60 57 66 58 50 60 60 62 Prudential Allianz Appl.approval process Medical exam process Insurance policies Advertising promotion Comm.on new policies &schems Post purchase exp. Ins.agent/advisor Call center/helpline 65 33 60 53 47 52 57 67 67 48 61 57 49 65 64 60 61 52 58 49 43 58 59 69 Incorporated in 1977 with a share capital of Rs. 10crores .HDFC has since emerged as the largest residential mortgage finance institute on in the country. The net worth of the corporation is Rs.28000 crores, HDFGFC manages asset. Standard life is Europe’s largest mutual life insurance company and specializes in a wise range of other services like health care, pension and annuities market with aglobal presence. The company has assets at US $ 119 billion. 22 TRAINING ACTIVITIES FOR AGENTS/ADVISORS • • • As per IRDA guidelines 50 hrs training is compulsory Both online and classroom training are available. Training is compulsory with both part time and full time options. A clear exam is conducted by IRDA, the minimum qualification required is 12th pass for urban areas 10th pass for rural areas TRAINING CENTRES • • NIS:patel nagar,south extension(Delhi) School net COMMISSION STRUCTURES Depends on the products, like on savings 20-40% IST year premium On investment 2% On pension 7.5% 23 DIFFERENT TRAINING PROGRAMS FOR AGENT IRDA training : 50 hrs training which is compulsory • Product training :making the agents well aware of the company’s products • Communication training: how to communicate more effectively with your customers. Behavioral training :how to understand you customers more properly Presentation skills Modes and ways through which the companies recruit agents. Direct contacts Newspaper adds Consultants Member of the company can introduce a new member CURRENT AGENT FORCE 200- 300 in Delhi 24 TOP 5 USP’S (UNIQUE SELLING PROPOSITION) 1. 1st private sector life insurance Company to be granted license 2. Declared bonus every year from the day of incorporation 3. Provides fast services to the customers in terms of claim. 4. Best insurer according to outlook. 5. Well supported by foreign partner standard life, UK which was recently voted company of the decade in UK by the Independent brokers called IFA’s. 25 PRODUCT PROFILE 26 SAVING PLANS CHILDREN PLAN Children plan is designed to provide a lump sum to the child to maturity. It also provides financial security to the child in the future; even in case of insured parent’s unfortunate death during the policy term. Children’s plan receives simple reversionary bonuses, which are usually added annually. This is a flexible plan with three options for you to choose from depending on your needs. TAX BENEFITS The premiums you pay will be eligible under section 88 of the income tax act ,1961.the benefits received under the policy are eligible for tax relief under section 100(10D) of the income tax act, 1961. PAYMENT OPTIONS You have the choice of paying the premium either in yearly, half yearly or quarterly modes, depending on your convenience. MONEY BACK PLAN It is participating (with profits) insurance plan that offers the following features: Payment of cash lump sums each of which is a proportion of the basic sum assured, at 5 year intervals during the term policy. 27 On survival up to maturity, a payment equal to the basic sum assured plus any bonus additional less the cash lump sums paid either is provided. In case of the unfortunate death of the assured within the term of the policy, the basic sum assured plus any bonus additions are provided. This is over and the earlier payouts. OTHER BENEFITS You can add the following optional benefits to customize your policy to suit your needs: .Critical illness benefits provides an amount, equal to the sum assured chosen under this optional benefit, a diagnosis of any assured one of the 6 common critical illness. .The sum is payable if you survive for 30 days after the date of claim. . One such a claim has been met, no further critical illness benefit payable. However, your basic policy continues even claim on this benefit. • after we pay a Additional term benefit provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental death benefit provides an additional benefit, in case of your unfortunate death: -due to an accident, and -within 90 days of the accident. 28 • Waiver of premium benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. TAX BENEFITS Tax benefits described in section 88, section 80D and section 10 (10D) of the income tax act. PAYMENT OPTIONS You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience. ENDOWMENT ASSURANCE PLAN It is participating insurance plan that offers the followingfeatures: .Provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. Provides a lump sum payment to the life assured on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus. OTHER BENEFITS You can add the following optional benefits to customize your Policy to suit your needs: 29 • Critical illness benefits provides an amount, equal to the Sum assured chosen under this optional benefit, a diagnosis of any one of the 6 common critical illness. The sum assured is payable if you survive for 30 days after the date of claim. One such a claim has been met, no further critical illness benefit payable.however, your basic policy continues even after we pay a claim on this benefit. • Additional term benefit provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental death benefit provides an additional benefit, in case of your unfortunate death: -due to an accident, and -within 90 days of the accident. • Waiver of premium benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability. 30 TAX BENEFITS Tax benefits described in section 88, section 80D and section 10 (10D) of the income tax act. PAYMENT OPTIONS You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience. PENSION PLAN The policy is basically a saving contract, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity, provide it is permitted by the prevailing regulations. • Your commitment .you agree to pay a single premium or level premiums with installments due every quarter, half year or year throughout the deferment period of the policy, after which you will start receiving your pension. Plan is basically a savings contract, which is designed to provide an income for life from retirement. It does this by31 accumulating a national lump sum on retirement, comprising of sum assured plus any attaching bonus. MODE OF PREMIUM You can pay either a single premium or pay premiums is quarterly, half yearly or annual form by cheques, in cash or by bank drafts. 32 INVESTMENT PLANS SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN Single premium whole of life insurance plan is well suited to meet your long term investment needs. This participating plan offers you the following benefits: .A sound investment: your money will be invested in our with profits fund. The fund aims to provide secure and stable longterm growth, normally; we will declare a compoundreversionary bonus for your policy every and add it to your policy on its anniversary. In addition, on death, surrender or on guaranteed dates a terminal bonus might be payable .you pay a single premium and the policy will pay you a lump sum. .flexibility of term: even after choosing your policy, you can decide on the policy term. TAX BENEFITS Tax benefits under section 88 of the income tax act are applicable on premiums up to 20% of the sum assured. PAYMENT OPTIONS A single premium can be paid by cash, cheques or demand draft. 33 UNIT LINKED PENSION PLAN The unit linked pension plan is basically an insurance contract, which is designed to provide income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting, the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 10000 each year and fore single premium it is Rs.25000.to facilitate increased investment, we allow additional single premiums. VARIOUS INVESTMENT FUNDS This policy is fully unitized with a range of funds to match your needs and approach to risk. Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds. 34 1.LIQUID FUND The liquid fund invests 100% in bank deposits and high quality short term money market instruments. The fund is designed to be cash secure and has a very low level of risk. However, unit prices may occasionally go down due to the use of short term money market instruments. 2. SECURE MANAGED The secure managed fund invests 100% in government securities and bonds issued by companies or other bodies with a high credit standing. However, a small amount of working capital may be invested in cash to facilitate the day to day running of the fund. This fund has a low level of risk but unit prices may go up or down. 3.DEFENSIVE MANAGED 15 to 30 % of the defensive managed fund will be invested in high quality Indian equities. The remainder will be invested in government securities and bonds issued by Companies or other bodies with high cash credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day to day running of the fund .the fund has a moderate level or risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go down or up. 35 4.BALANCED MANAGED 30 to 60%of the defensive managed fund will be invested in high quality Indian equities .the remainder will be invested in government securities and bonds issued by companies or other bodies with high cash credit standing. In addition .a small amount of working capital may be invested in cash to facilitate the day to day running of the fund. BENEFITS At the chosen vesting date, the unitized fund value will be available to secure pension benefits. Subject to the prevailing regulations, part of this value can be taken in the form of cash lump sum and the rest converted to an annuity at the rate then offered by HDFC standard life. Alternatively, if it is permitted by the prevailing regulations, the proceeds net of any cash lump sum can be used to buy an annuity with any other insurance company who will accept such business. The current maximum limit for any cash lump sum is one third of the unitized fund value on vesting .on death, the unitized fund value will be paid along with a cash lump sum of Rs.1000. The beneficiary may use the proceeds to purchase pension benefits may use the proceeds to purchase pension benefits for the surviving spouse. Your basic benefits will be paid by chequ HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAVservices company that operates out of 52 locations. It offers clients a range of insurance plans to meet their savings, investment and protection needs. In the financial year 200203, the company registered a year-on-year growth of over 260%. Itis 36 also the first new life insurance company to declare its third successive bonus for participating policy holders. HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per specific needs. ALTERATIONS IN THE LEVEL OF PREMIUM Regular premiums can be increased at any time .if needed, the policy holder can reduce the regular premium levels (even to zero, the policy is converted to paid up status) provided 3 year of regular premiums have been paid .The monetary value of the unit holding across all funds is at least Rs.15000.in addition, you can pay single premium to ups at 37 any point of time. SURRENDING THE POLICY The policy holder can surrender the policy at any point of time during the contract term for regular premium paying policies. For single premium contracts, the contract needs to remain in force for a minimum period of six months before you can surrender. The amount payable will be the unitized fund value after applying additional surrender charges. STOPPING PAYMENT OF REGULAR PREMIUM This product has a grace period of 15 days for the payment of each premium after the initial premium. If you stop paying premiums, before you have paid 3 years of annual premiums, we will cancel your policy and return to you the value of your unitized fund, less cancellation charges. If after three years you are unable to pay the premiums, you have the option to make the policy paid up, provided the policy has accumulated sufficient policy value .currently this amount will be Rs.15000.if you make your policy paid up you will continue to be protected according to the benefits you selected. To 38 provide this cover; we will continue to collect our usual charges on each monthly charge date. It is important to note that if no further premiums are paid, this may reduce the value of your fund over time, or even exhaust it completely. A paid up policy can be reinstated to premium paying status at any point of time in the future. If the fund value of a paid up policy and return to you the fund value, less cancellation charge. TAX BENEFITS Premiums paid under this plan are eligible for tax benefits under section 80 CC of the income tax act, 1961. UNITLINKED ENDOWMENT PLAN The unit linked endowment plan is an insurance policy that is designed to pay a lump sum maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against the six common critical illnesses, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On 39 death or critical illness if chosen, you receive the greater of the value of your units and your selected basic sum assured. The premiums and various investment funds are the same as in unit linked pension plan BENEFITS There are four different options to choose from: 1. LIFE OPTION On death within the policy term, the greater of the sum assured and the value of the unit linked fund will be paid to your nominee. On survival to the end of the policy term, the value of the unit linked fund will be paid to you. 2. LIFE AND HEALTH OPTION On death or earlier diagnosis of any one of six common critical illness covered within the policy term, the greater of the sum assured and the value of the unit linked fund will be paid to your nominee. On survival to the end of the policy term, the value of the unit linked fund will be paid to you. The illness covered under this option is cancer, coronary artery bypass graft surgery, 40 heart attack, kidney failure, major organ transplant and stroke. 3. EXTRA LIFE OPTION This option pays the same as the life option but should death occur within the policy term as the result of an accident, an extra benefit equal to the sum assured will be paid 4. EXTRA LIFE AND HEALTH OPTION This option pays the same benefit as the life and health option but should death occur within the policy term as the result of an accident, an extra benefit equal to the sum assured will be paid. TAX BENEFITS Tax benefits under section 88 and section 10 (10D) of the income tax act are applicable. SOME MORE ABOUT ULIPS Unit linked policies are life insurance policies characterized by their high financial content. They are a logical combination of 41 an investment fund and a life insurance policy. They are different from traditional policies because they allow the customer to define the underlying type of investment by choosing from a vast range of asset classes differentiated by the type of investment. This could range from the conservative to the aggressive depending up on each individuals risk appetite. The investment can also be modified over time .unit linked business has its roots in unit trusts which were introduced in the UK apparently in the year 1957 and its investments were linked to an external unit trust. There are different types unit linked life insurance contract that can be designed starting from endowment, money back, whole of life policy, deferred annuity scheme and the managed pension fund .the available products are characterized by their transparency, yield, convenience, flexibility and price/performance equilibrium. I would try to dwell up on this last product more and try to highlight the challenges and opportunities available for an insurance company in the Indian context. The two most popular schemes among the corporate in the pension fund 42 categories are the group gratuity and group super annuation scheme. GROUP GRATUITY Under the payment of gratuity act 1972 most employers with more than 10 employees must provided minimum level of lump sum gratuity benefit to staff when they leave service. The amount of benefit is defined in terms of service and salary. Employers often pre fund the liability to pay gratuity by setting up a separate fund under the trust.Pre funded arrangements enjoy special tax privileges. Employers are obliged under the payment of gratuity act 1972 to provide for the payment of gratuity to their eligible employees. The act applies to most companies which employ 10 or more employees. The board terms of the benefit are: Section 4(1) states that a gratuity shall be payable to an employee on termination of his employment. • On his super annuation ,provided five years or more of continuous service has been completed, or On his retirement or resignation, provided five years or more of continuous service has been completed, or 43 On his death or disablement due to accident or disease (payable irrespective of length of service). GROUP SUPERANNUATION The group superannuation scheme allows an employer /trust to build up retirement funds for the members of the scheme. This scheme is usually provided to a particular class of employees of the company. A separate fund exists for each individual and the contribution in respect of each individual is applied to their own fund. The amount of the fund is equal to the contribution plus investment returns less expense. Investment returns are applied to the fund using the unit linked method. At retirement the accumulated fund is then used to buy an annuity for the member to provide an income in retirement (plus a tax free lump sum payment).the super annuation scheme can either defined contribution plan or a defined benefit plan, it is increasingly popular to have a defined contribution plan rather than a defined benefit plan. The important decision point that needs to be made at the 44 time developing the product is as follows: Acceptability of unit linked approach Fund management Charges and expenses Administration Products offered by other market players System support Training and education Regulatory constraints Till now, the companies (Indian corporate) in India were not exposed to this type of a scheme where the entire investment 45 risk and hence the reward being borne by the company/trustees. It is hence extremely difficult to predict how the Indian corporate would react to this. Also; there is a great deal of education that needs to be done at the time of selling this concept and hence setting the right expectation in the mind of the employers. An essential element for the development of investment linked products is the existence or development of a stable securities market. Insurance companies, like pension funds, are important catalysts for change in this regard but change will not come overnight. although, the fact that Indian corporate invest in mutual funds cannot be totally neglected and hence can give a certain degree of comfort to the insurance companies. The fact remains that in case of gratuity and super annuation it is employee’s money and hence the company may not want to take the downward risk. FUND MANAGEMENT The crux of the entire product is the returns that this product can generate and this is dictated by the management of the 46 fund. There is no great value in doing well in all other aspects of the product delivery if the fund does not perform well. The insurance company has two options with regards to the management of the fund i.e. external and internal. External funds usually have a proven track record that could be used as a significant marketing too. In India many of the insurance companies, which are apart of the larger financial services groups, already have a sister fund Management Company and they could bank on their performance .for others, they would usually be having an in house investment team and this could be extended to management of the funds too. The expenses and hence the cost should be kept in mind as by nature the unit linked insurance product is a very transparent product and hence this would become a significant selling point in the long run. CHARGES AND EXPENSES There are different charges that can be levied by the insurance companies, some of the more common ones are: 1. Initial charges 47 Annual charges Investment charges Morality charges Surrender charges INITIAL CHARGES Initial charges are applied at the time of setting up the policy; this could be in the form of a bind offer spread and also in the form of units known as the allocation of units known as the allocation factor. It is also possible to be levying a per member level charge. ANNUAL CHARGES The annual charges can either be fixed or can be linked to the size of the fund. It could also be linked to the number of members in the scheme. This charge is usually taken to cover 48 the maintenance expenses of the insurer. INVESTMENT CHARGES A fund management charge is levied to take care of the fund management expenses depending upon whether the fund is managed internally or externally. MORTALITY CHARGES It is possible to have an insurance element built into the super annuation contract and in case of a gratuity there would be an element of insurance the degree and the form could differ from company to company. The insurance premium can be taken as a part of the gratuity contract of it can be administered outside this but packaged to as if it is a whole some product offering and insurance to the employees of the organization. SURRENDER CHARGES The surrender charges can be used in multiple ways .It could be used as a way of recouping the initial outlay of the insurer in case the company decides to withdraw in the early years of 49 the contract or it could be used as a deterrent for the company to shift the service provider at any point of the contract. Usually the surrender charges/penalty would decrease over a period of time and would be expressed as a percentage of the fund. The biggest start up expenditure for linked unit linked policies is the unit linked administration system and this has to be recouped over a period of time by the charges that are levied and the business volumes that the product would generate. They key thing to all this is that the Indian corporate till now have been exposed to the explicit from of charges and hence they would have to be sensitized to the different charges and hierarchies on which they operate. This could be a point where significant negotiations at the time of pre sales can happen hence; at the time of product development the insurance company should design the product making provisions to accommodate such contingencies. ADMINISTRATION The unit linked policies are significantly complex to administer 50 and also would need a very highly technically trained customer service department to handle enquiries. Much of the administer the policy .as the allocation of the units would be time dependent it is extremely important to have a very robust system that can take care of allocations, de allocation and reallocation of unit’s .it is essential to have a system that would be able to talk/interact with other systems to capture the unit price details, to give outputs to accounting package, report generators etc. PRODUCTS OFFERED BY OTHER MARKET PLAYERS The domain of competition does not stop with the insurance companies but also extends to products offered by the unit trusts. There could be a strong tendency to compare the returns of this product with those available with the unit trusts although the investment philosophy and the asset class on which both of them would be operating could be entirely different. SYSTEM SUPPORT 51 The success of a market player especially in this unit linked market would be dictated by the service that he could provide. It is imperative that the insurance company is to either build an in house system or to buy it from a vendor developing an in house system would require substantial amount of expertise and skilled IT resource .there are a few systems that are available but would require some amount of customization depending upon the scope of the product. TRAINING AND EDUCATION This product by its very nature is very transparent and hence very complex. Also the intended target market are the corporate hence the necessary skill set that would be required to sell this product would vastly different in comparison to the traditional products. Some of the distribution channels like the bank assurance may not be the ideal way to canalize the product. Also by the very nature of the product it is open for abuse and hence the insurance company should properly train the sales force and also should educate the potential policy holders through its communication about the 52 investment risk that the policy holder through its communication about the investment risk that the policy holder is taking as opposed to traditional policies. TERM ASSURANCE PLAN Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract .one can choose the lump sum that would replace the income lost to one’s family in the unfortunate event of one’s death. Since this Non participating plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. Optional benefits are available with this plan. You can add the following optional benefits to customize your policy to suit your needs. Critical illness benefits provides an amount, equal to the sum assured chosen under this optional benefit, a diagnosis of any one of the 6 common critical illness. The sum assured is payable if you survive for 30 days after the date of claim. 53 One such a claim has been met, no further critical illness benefit payable. However, your basic policy continues even after we pay a claim on this benefit. Additional term benefit provides an additional amount, • equal to the sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental death benefit provides an additional benefit,in case of your unfortunate death: -due to an accident, and -within 90 days of the accident. TAX BENEFITS Tax benefits described in section 88, section 80 D and section 10(10D) of the income tax act are applicable. PAYMENT OPTIONS You have the choice of paying your premium either in yearly, half yearly or quarterly models, or paying a single 54 One-time premium, depending on your convenience. RESEARCH METHODOLOGY 55 56 It is of studying how the research problem is being solved significantly. The term methodology answers in which of the available method or Tchniques are relevant and which are not, regarding the problem in hand. Hence, methodology should be systematic. The methodology should be clear in the mind of researcher because this is the only thing on which the whole project is based. It provides the guideline in the mind of researcher to carry out the project .It provides the right approach precede the research program. Methodology provides the way to systematically the problem in hand. It may be considered as science MEANING OF RESEARCH Research in common parlance refers to a search for Knowle. te advance learner’s dictionary of current English lays down the meaning of research as a careful investigation or enquiry especially through each for new facts in any branch of knowledge.” According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; to determine whether they fit formulating hypothesis. 57 SCIENTIFIC RESEARCH The scientific method of research encourages a rigorous, impersonal mode of procedure dedicated by the demands of logic and objective procedure. Accordingly scientific research implies an objective, logical and systematic method i.e. a method free from personal bias or prejudice, a method to ascertain demonstrable qualities of a phenomenon capable of being verified, a method wherein the investigation proceeds in an orderly manner and a method that implies international consistency. CRITERIA OF GOOD RESEARCH It is important that the research is to be performed should be systematic and should be based on a common ground. The research should be objective oriented i.e. always moves towards the solution of the problem or according to the project assigned. One expects the scientific research to satisfy the following Criteria:1. The purpose of the research should be clearly defined and common concepts are used. 2. The research procedure should be described in sufficient details to permit another researcher to repeat the research for further advancement. 3. The procedural design of the research should be carefully planned to yield results those are as objective as possible. 4. The researcher should report with complete frankness, flaws in procedural the findings. 58 design and estimate their effects upon 5. The analysis of the data should be sufficiency adequate to reveal the significance and the methods of analysis used should be appropriate. 6. The validity and the reliability of the data should be checked carefully. 7. Conclusions should be confirmed to those justified by the data of the research and limited to those for which the data provide an adequate basis. 59 TYPES OF RESEARCH There are various types of research for the suit of researcher These are as follows:- 1. DESCRIPTIVE Vs ANALYTICAL Descriptive research includes surveys and fact findings enquiries of different kind’s .the major purpose of descriptive research is description of the state of affairs, as it exits at present. In social sciences and business research we often use the term Ex post Facto research for descriptive research studies in which researcher seeks to measure such items as, for example, frequency of shopping etc.in analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make evaluation of the material. 2. APPLIED Vs FUNDAMENTAL Research can either be applied research or fundamental research. Applied research aims at finding a solution for immediate problem facing a society or an industrial business organization. Fundamental research is mainly concerned with generalization and with the formulation of the theory,” Gathering knowledge for knowledge’s sake is termed ‘pure’ or basic research. 60 3. QUANTITATIVE Vs QUALITATIVE Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomenon that can be expressed in terms of quantity. Qualitative research on the other hand, is concerned with qualitative phenomenon. This type of research aims at discovering the purpose .other type of research is especially important in the behavioral science where the aim is to discover the underlying motives of human behavior. 4. CONCEPTUAL Vs EMPERICAL Conceptual research is that related to some abstract ideas or theory. Philosopher and thinkers to develop new concepts or to reinterpret existing ones generally use it. The empirical research on the other hand relies on experiences or observation alone, often without due regard for system and are capable of being verified by observation or experiment.Emperical research is appropriate when proof is sought that certain variables affect other variables in some way. RESEARCH DESIGN A research design is the specification of the Methods and procedure to be adopted for acquiring the information required for solving the Problem .there is two types of marketing research design Exploratory research 61 conclusive research DATA COLLECTION METHOD There are two types of data: A.primary data B. secondary data PRIMARY DATA Primary data are generated by a study specifically designed to accommodate the data needs of the problem at hand. SECONDARY DATA Secondary data is any data originally generated for some purpose other than the present research objectives. The sources of secondary data are: I. Internal data available from the company profile etc. II. External data to facility research information was obtained from magazines, journals, newspapers and Published books. CHALLENGES BEFORE THE INDUSTRY 62 The new as well as the old insurers will have to face the number of challenges in the liberalized market. NEW INSURERS The new insurers will have to invest a minimum capital of Rs. 100 Crores. The normal gestation period is of five years .the generation of profit normally starts in the sixth year. Hence the new insurers will have to be ready for locking up their capital for at least five years before earning any profit. Besides they will face problem of shortage of trained manpower for the insurance industry. The setting up of various offices and distribution network is a time consuming process. Further the new insurers will have to compete with established insurance companies like LIC and GIC which have a corporate image and market presence for several years. EXPECTATION OF THE CONSUMERS Today LIC has more than 60 products and GIC has more than 180 products to offer in the market. But most of them are outdated, as they are not suitable to the needs of the consumers. Hence old as well as new insurers will have to offer innovative products to the consumers. The consumers are particularly expecting good pension plans, health insurance, term insurance and investment products like unit linked insurance from life Insurer’s .similarly the consumers expect innovative products from the general insurers for managing healthcare, property, insurance, accident insurance and other products related to the personal line of insurance. The consumers also expect reduction in the insurance products as the morality rate in India has come down by three times in the last 50 years. 63 DISTRIBUTION CHANNELS In the liberalized insurance market, there will be multiple distribution channels, which will include agents, brokers, corporate intermediaries, bank branches, affinity group and direct marketing through telesales and internet. Some channels will be cheaper than others. Hence there will be competition among the channels. The new insurers will operate with help of multiple distribution channels but the existing insurers may be forced to operate only with the help of agents. Hence, intense competition will grow among the old and new insurers in the market to insurers in the liberalized insurance market. CONSUMER EDUCATION Very soon the market will be flooded by a large number of products by a fairly large number of insurers operating in the Indian market. Even with limited range of products offered by LIC and GIC, the consumers are confused in the market. Their confusion will further increase in the face of a large number of products in the market. The existing level of awareness of the consumers for insurance products is very low, it is so because only 62% of the population of India is literate and less than 10% well educated. Even the educated consumers are ignorant about the various products of insurance. Hence it is necessary that all the insurers should undertake the extensive plan for education of consumer’s .the consumer organization and the media also can play very important role in education of consumers’ .this will result in expansion of the insurance market and also will result in expansion of the insurance market and will also enable the needy consumer to purchase appropriate products. 64 CONSUMER GRIEVANCE REDRESSAL The insurers will have to face an acute problem of the redressal of the consumers, grievances for deficiency in products and services. The Insurance Regulatory Development Authority (IRDA), the regulatory body has already appointed Ombudsman for looking into the grievances of the policy holders; his judgment will be binding on insurer’s .further, under consumer protection act 1986, the consumer court are operating at district, state and national level. In the competitive market, awareness level of the consumers will increase and it will help consumers to fight for their legal right for deficiency in services .hence the number of legal cases filed by the consumers against an insurer is likely to increase substantially in future. This will be a challenge to the insurers. ROLE OF FOREIGN COMPANIES IN INDIA 65 Government has allowed 26% foreign equity participation in the insurance sector. This has its limitations .while most foreign insurers planning to start their services in India were not pleased by this condition, they reluctantly agreed that this was expected in an opening economy and this will not change their outlook for India. After all no insurance company can afford to ignore a market of 1 bn people. But the fact remains those they: • cannot appoint majority directors on the company board; cannot have say in the day to day workings of the company;Can affect only special resolutions. • This cap, however will have a great impact on the Indian counter part to raise 74%of the funds in their joint venture. To add to this if Indian partners like State Bank of India, with over 9000 branches nationwide, will demand premium for their existing distribution network, we will see the foreign insurance companies demand hefty premiums for bringing in their global expertise and brand.Mr.Vaidya, chairman of SBI, has recently stated that all it is looking for is a good and reliable partner and the question of a hefty premium to be charged to its foreign partner is not significant. the monolith has finally come to business senses foreign companies are unhappy even about laws pertaining to repatriation of funds .the stipulated investment criteria also something that all players in the sector, be it Indian or foreign, are closing watching. The foreign players are essentially looking to tap their global expertise in the variety markets and use that know how to work in the Indian scenario. Designing of products, information systems .technical expertise, manpower planning etc is what one expects the foreign players to have a say in any venture of 66 the joint needs to be between equals. If this is not there then there is every chance that partner in the venture will feel increasingly uncomfortable and would be looking to call the joint venture off. 67 TARGET/TASK SET WEEKLY TARGETS: In the very first week of SIP my company guide assigned me to conduct a market survey of 100 peoples and to find the positive and negative perception in the minds of the customers regarding HDFC SLIC and to prepare a report on the comparative study of HDFC SLIC and Its competitors for that I prepared a questionnaire and in one 68 week I surveyed 118 customers out of which 27% are in favor of HDFC SLIC policies because they are already having their Bank accounts in HDFC and they don’t want to shift towards any other company and then 30% customers are go with both companies HDFC SLIC & LIC and 10% are not interested to take any insurance policy of any company, then the rest 33% are those who only go with Life Insurance Corporation i.e. LIC policies. After it the target was same for every week i.e. to recruit one financial consultant and to sell one policy of HDFC SLIC. Time allotted for weekly target: - For the above survey my company guide gave me four days i.e. 24/03/08 - 27/03/08 to complete it and then on the fifth day i.e. on 28/03/08 I have to submit the report but I completed it on 26/03/08 and on the 27/03/08 I submitted my report to my company guide. Time duration for weekly Target- There is a time limit of five days to accomplish our weekly targets i.e. we have to complete the weekly targets on fifth day positively i.e. If our weekly targets is to sell one policy and to recruit one financial consultant then we have to complete it in between Monday to Friday of the given week. 69 MONTHLY TARGET: Our monthly target is to recruit 6 financial consultants and to collect a premium of Rs. 23,600 per annum in a month. Time Duration for Monthly Target- There is time duration for monthly target also like as per our monthly targets we have to collect a premium of Rs. 23,600 per annum and to recruit six financial consultants for HDFC SLIC in a month. TARGET/TASK: Week No. 1. Targets per week To conduct a market survey of 100 people and to find the positive and negative perception in the minds of the customers regarding HDFC SLIC and to prepare a report on the comparative study of HDFC SLIC and Its competitors. 70 Task Task completed started on on 24-03-2008 27-03-2008 (completed before time) 2. (i).To Perform a canopy activity and Interact with different customers. (ii). To sell one policy and To recruit one Financial consultant. 31-03-2008 04-04-2008 (Completed target on time) 3. (i).To attends IRDA training at Bhikaji Cama branch. (ii). To attends training on new product refresher in the same branch. 7-04-2008 11-04-2008 (Attended IRDA training and training on new product refresher) 4. To generate 20 fresh leads for the recruitments Financial consultants in HDFC SLIC. 14-04-2008 18-04-2008 (Completed target on time and generated 30 leads) 5. To sell one policy 21-04-2008 25-04-2008 and To recruit one Financial consultant. (Completed target on time) 6. To sell one policy 28-04-2008 01-05-2008 71 and To recruit one Financial consultant. (Completed target before time and over achieved the target by recruiting three Financial consultants) 7. To sell one policy 05-05-2008 09-05-2008 and To recruit one Financial consultant. (Completed target on time) 8. To sell one policy 12-05-2008 16-05-2008 and To recruit one Financial consultant. (Completed target on time) 9. To sell one policy 19-05-2008 23-05-2008 and To recruit one Financial consultant. (Completed target on time) 10. To sell one policy 26-05-2008 30-05-2008 and To recruit one Financial consultant. (Completed target before time and over achieved the target by recruiting three Financial consultants) 11. To recruit five Financial consultants. 02-06-2008 06-06-2008 (Completed target before time and over achieved the target by recruiting 72 six Financial consultants) 12. To recruit three Financial consultants. 09-06-2008 11-05-2008 (Completed before time) 73 STRATEGY ADOPTED 74 Firstly I reached to those customers who have already using the banking facilities of HDFC and having their saving banks account, current account, credit cards and EDC for this I visited to different branches of HDFC Banks and met with the customers directly in branch and then I visited peoples working in different industries, retail shops to gather information regarding their interest in HDFC SLIC policies and continuously trying to convince them for HDFC SLIC products and to join HDFC SLIC as a Financial Consultants. 75 Methods Adopted for Marketing HDFC SLIC products: - I adopted different methods to approach customers such asPersonal selling Telephoning Questionnaire Market research Kiosk marketing Personal selling- It involves communication between a seller and one or more potential buyer, through it I have personally contacted different customers belonging to industries to sell the different products of HDFC Standard Life Insurance and to convince the people to join HDFC as a Financial Consultant I also visited some colleges and convince some students to join HDFC SLIC as a Financial Consultant and earn part time. Telephoning- In the second week of SIP I used my survey database for cold calling and then I took an appointment from different customers and finally met them for my financial dealing of HDFC SLIC products. ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss sssssssss Questionnaire- I also used questionnaire technique to create my own customer database so that I can call them and create their interest towards HDFC SLIC 76 products the questionnaire which I used for my survey was very useful for me because from that only I generated 2 policies and recruited 3 Financial consultants. Market research- I conducted a market research in the first week of my SIP and met with different peoples some of them are working, some are self employed and owing their business and some of them are students after this survey I came to know that peoples are less aware about HDFC SLIC they only have some knowledge about HDFC Bank that time I took their contact numbers and revertedthem back through telephoning technique. Kiosk marketing- In second week of my SIP my company guide divided some teams and gave us a task in which we two have to perform a canopy activity in the compound of escort’s securities office Connaught place new Delhi it was our first opportunity to interact with the different customers group at a same place and face their queries and provide them an appropriate solution for it. It was such a great experience in which we generate a new customer’s data base which we will use in the next month. 77 STRATEGY ADOPTED IN ACHIEVING THE TARGETS: Firstly I created my own database of customers through market survey.  Then I used that customer’s database for cold calling and some of them gave me appointments. After meeting them I took some other references from them and to follow up those references. I took some data from the different branches of HDFC banks and ATMs and create a new Customer’s database. I performed a canopy activity and from that activity I interacted with different people at a same place. I focused towards the students group from different institutions and colleges and tried to convince them to join HDFC SLIC as financial consultants. I and my team pasted some posters in the different locations near colleges, bus stops and metro stations because of this we get a favorable response and generate customer’s database. 78 METHODOLOGY: Market Survey. Collection of Customers Database. Attended Training on Product Knowledge and on Recruitment Policies of Financial Consultants. Cold Calling. Take an appointment from the responding customers. Face to Face Interaction with costumers. Meet them and convince them to take HDFC SLIC products or to join HDFC SLIC as a Financial Consultants. Canopy activity to reach towards large customers group. Promotional marketing by distribution of information broachers and pasting of posters in different locations. 79 ACHIEVMENTS & LEARNING Targets Achievements Learning 80 week No. 1. To conduct a Conducted a market survey of 100 people and to find market survey of 118 customers and submitted a Learnt how to interact with customers. Learnt how to facing the different queries of customers. the positive final report to and negative my company perception of the customers regarding HDFC SLIC and to prepare a report on the comparative study of HDFC SLIC and Its competitors. 2. (i).To Perform a canopy Performed a canopy activity with my team guide before a i.e. on 27/03/08 which is appreciated by our company guide. in the minds last due date Learnt how to deal with the customers in market. Learnt how to sell 81 activity and in the Interact with compound of different customers. Escorts securities office (ii). To sell one policy and To recruit one Financial consultant. Connaught place new Delhi and created a new customer database. insurance policies in market. Came to know about the competitors products. 3. (i).To attends IRDA training at Bhikaji Cama branch. (ii). To attends training on new product refresher in the same branch. Attended IRDA training and a training on product knowledge i.e. new product refresher conducted in our own branch and got a certificate from RINS college of insurance. Learnt about some new product of HDFC SLIC. Learnt the importance of training. 4. To generate Generated 30 20 fresh fresh leads for leads for the Financial recruitments consultants and of FC. remarked for my excellent field work by Learnt to make a network of people by communicati ng and convincing them. 82 our company guide in my SIP log book. 5. To sell one policy and To recruit one Financial consultant. 6. To sell one policy and To recruit one Financial consultant. Sold one policy and recruited three Financial consultants and remarked for my good team work by our company guide in my SIP log book. 7. To sell one policy and To recruit one Financial consultant. Sold one policy and recruited one Financial consultant and remarked for my excellent performance and responsible towards work by our company guide in my SIP log 83 Learnt the importance of communicati on in corporate. Learnt about the recruitment processor of Financial consultant in brief. Sold one policy and recruited one Financial consultant. Learnt how to sell insurance policy from a reference. book. 8. To sell one policy and To recruit one Financial consultant. Sold one policy and recruited one Financial consultant and remarked for my good field work by our company guide in my SIP log book. 09. To sell one policy and To recruit one Financial consultant. Sold one policy and recruited one Financial consultant and remarked as a capable one who knows how to deal in sales by our company guide in my SIP log book. 10. To sell one policy and To recruit one Financial consultant. Sold one policy and recruited three Financial consultants and remarked as focused, dedicated and hard worker by our 84 Learnt the importance of being confident of the work u do. Learnt the importance of being trustworthy at work. Learnt how to understand customer’s requirement s in insurance policies. Learnt how to make friendly relations with customers and its importance. company guide in my SIP log book. 11. To recruit five Financial Overachieved the given weekly target & financial consultants. 12. To recruit three Financial consultants. Recruited three financial consultants. Learnt how to work for corporate and their working environment . Learnt how to motivate a team for work. consultants. Recruited six 85 AWARDS &REWARDS RECEIVED TOTAL BUSINESS GIVEN TILL DATE: Number of policies Sold : Seven Amount of premium collected : Rs. 94,000 Number of Recruitments given : 19 (FC) 86 Number of leads generated : Two Hundred Total Business Given : Rs. 94,000 (IP) Rs. 13,650 (FC) ---------------------Rs. 1, 07, 650 ----------------------- 87 ANALYSIS OF PERFORMANCE V\S TARGETS HDFS SLIC REQUIRES BUSINESS FROM MANAGEMENT TRAINEES DURING 3.5 MONTHS OF SUMMER INTERNSHIP PROGRAM BUSINESS REQUIRES (RS.) POLICIES F.C TOTAL 82,600 17,850 1,00,450 BUSINESS GIVEN (RS.) 94,000 13,650 1,07,650 88 OVERACHIEVEMENT BY 7% IN MONETARY TERMS 89 MARKET SEGMENTATION As a part of field activity, I was asked to market the products of HDFC SLIC.The decision to adopt a way to market the products was left to me. First of all, I was asked to segment the market into various strata’s or groups make two segments of the market as follows: 90 Middle income level people High net worth individuals The reasoning behind these grouping was that these people would be easily accessible and easy to talk to. My mentors gave me permission to go by this way of segmentation .I decided to go around DELHI and collect data. This data involved names of people and their address then I would have got the phone numbers of these people from the directory. But this was a very hectic job, especially given the summer heat out. Then I got the data of around 300 people. This data comprised of names of people, their phone numbers and address. Contacting these people involved making cold calls to them from the office of HDFCSLIC in DELHI .i would introduce myself as a student doing project in HDFCSLIC and that I wanted to meet the person 91 regarding the study of investment patterns of people of DELHI and their perception of insurance, some people gave appointment and asked me to meet them. At later stages of the project, I directly introduced myself as an HDFCSLIC employee and that HDFCSLIC had come with interesting plans of saving, protection, pension and investment. I would ask them if they were interested in any of the plan and could spare 15 min of their schedule. I could come to their place and tell and explain them those plans in detail. If I got an appointment .I would go to their places and meet them. I would ask them where they had invested previously and what were the parameters that they considered for investing .then I would explain them the various investment plans of HDFCSLIC.After all the talk, I would ask them for their difficulties and doubts. I would tell them that I would call them later at a fixed date for their interest in the plans of HDFCSLIC and any kind of 92 doubts or difficulties that they would have in understanding the plans. M ARKET FEEDBACK 93 I have noted down the responses of people an the data sheets I had maintained to make calls to people and meet them. These responses involved direct refusal for interest in HDFCSLIC plans of giving an appointment. Most of the people enquired about the plans on the phone itself. After sufficient introduction to the plans, they gave an appointment and asked me to meet them. 94 95 Recommendations The insurance companies should now try to identify the gap between current level of customer service and customer expectations. Some of the strategies being recommended are as follows: Product Differentiation: Offering a product that is distinctly  different from other products available in the market. Innovativeness: Identifying means of a delightful customer  experience. 96  Riders: These are additional offerings along with the main product. Flexibility: The companies should make their products  flexible for the convenience of their customer. Hassle Free Service: All bureaucracy in customer  interactions should be eliminated. Proper Policy Documentation: Wrong interpretations/ non-  awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies. CONCLUSION 97 98 Here I am going to explore my experience that I have gained during my summer training period on the market field under the visualization of some senior active members of the HDFC Standard life insurance co. ltd. I worked on the field for two months. During the first few days I surveyed the market and tried to understand the thinking of the people whether they are interested to join HDFC Standard life career option. I approached a lot of respected persons and convinced them about the beneficial features of the work if they join & work with HDFC Standard life. I met many persons and convinced them to join the HDFC Standard life insurance co. ltd. Standard life is a international much interested to join HDFC their career. It is also surveyed that the only about 10% people has their life insurance in this country so it may be a great career option for the public who want to bring their life from an ordinary to extra ordinary life. Care Consultant for setting a organization. they are very Standard an insurance care brilliant career. Many of the prospects know about the HDFC consultant, as they are very awaked and determined towards surance Co. Ltd. is giving the opportunity to the public that not only giving a great career but also a chance to enhance their personality as a gentle human. I want to give thanks to all those esteemed active members of the HDFC Standard life for giving me the opportunity to work with them. 99 ANNEXURE 100 QUESTIONNAIRE 1) NAME: ------------------------------------------------------------AGE: -- above18 ( ), 25-30( ), 30-40( ), 40-50( ), above 50( ). SEX: - Male ( ), Female ( ). Address: -----------------------------2) What is your occupation? Ans: -Business ( ), service ( ), student ( Any other ( ), Specify----------------------3) What is your qualification? Ans:-Inter or equivalent ( ), Graduate ( ), Post graduate ( ), Other specify-------------------4) Why did you join as consultant? Ans:-(a) Earn money (b) social status (c) time engagement (d) Growth (e) other specify --------------------5) How many dependent in your family? --------------------------------------------), House wife () 6) How did you get knowledge about this insurance firm? 101 Ans: -a) Advertisement b) Magazines c) relatives d) other consultants e) Other employee of the firm f) Others specify -------------------7) What specific feature do you want in your insurance company? Ans:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------8) Do you want basic salary as an advisor? Ans: Yes/No\) Will you invest your own money in ICICI Prudential? Ans: Yes/NO 10) Is 100 hours training is suitable for you? Ans: Yes/NO DATE: -------------------------------------SIGNATURE OF INTERVIEWER 102 DATA ANALYSIS PE RSON KNOW ABOUT LIFE INSURANCE YES NO 83% 17% 100% 80% 60% 40% 20% 0% YES NO PERSONS KNOW ABOUT LIFE INSURANCE THROUGH Through Agents Through friends Through advertise Others 22 17 52 11 FOR PERSON HAS TAKEN POLICY 103 For Business For Family For Other Purpose 25% 70% 5% For Business For Family For Other Purpose 104 PERSON RANKED THE BENEFITS OF LIFE INSURANCE: Not Benefits Saving income tax Financial planning Family security High rate of nature capacity of taking loan in future Important 45% 52% 75% 65% 25% Less important important 40% 15% 31% 17% 18% 7% 25% 10% 30% 45% Not important capicity of taking loan in future High rate of nature Less important Family security Financial planning Important Saving income tax 0 0.2 0.4 0.6 0.8 105 BIBLIOGRAPHY Magazines: 106 The Insurance Journal Intelligent Investor Business Today News Papers: Economic Times Hindu Business Line Web Sites Visited: www.hdfcInsurance.com www.Irdaonline.com www.bimaonline.com www.Indiainfoline.cosm 107