Standard Charterd Life Insurance - PdpSOLUTION

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					                   PROJECT REPORT
     Recruitment of Financial Consultant
       HDFC Standard life Insurance

 Submitted in partial fulfillment of the requirement of
    Masters of Business Administration (MBA)

 Training Supervisor                        Project Supervisor
 Mr.MANISH                                  Mrs.

                         Submitted By:

                       SESSION: 2009-2011

               ROHTAK (HARYANA)


The making of a report does not involve efforts of one single person. It is possible
only because of cooperation and contribution of many minds. Several eminent
people at HDFC STANDARD life insurance have made valuable contributions to
this report through their inputs. I am thankful to each one of them.

I am extremely thankful to Mr. MANISH, (Unit Advisor) for giving me an
opportunity to undergo training in HDFC STANDARD LIFE INSURANCE and
making my stay at HDFC STANDARD a memorable learning experience.

In these two months, I have been given a very valuable insight into the working of
industry in general, which will go a long way in shaping my career.

I extend my sincere thanks to Mrs. MANISH (Faculty, Delhi              Institute Of
technology & Management) for the amount of guidance extended to me in the
form of continuous feedbacks and what process to follow to make this research
work a success.

Lastly I would also like to thank the whole HDFC STANDARD LIFE
INSURANCE, who treated me like one of them and offered me valuable support
and guidance and facilitated this experience of mine for which I am so grateful.


              TABLE OF CONTENTS

CHAPTER 2             COMPANY’S


CHAPTER 5             CONCLUSION &

CHAPTER 6             ANNEXURE

                 EXECUTIVE SUMMARY
Insurance in India used to be tightly regulated and monopolized by
state-run insurers. Following the move towards economic reform in
the early 1990s, various plans to revamp the sector finally resulted in
the passage of the Insurance Regulatory and Development Authority
(IRDA) Act of 1999. Significantly, the insurance business was opened
on two fronts. Firstly, domestic private-sector companies were
permitted to enter both life and non-life insurance business. Secondly,
foreign companies were allowed to participate, albeit with a cap on
shareholding at 26%. With the introduction of the 1999 IRDA Act, the
insurance sector joined a set of other economic sectors on the growth
During the 2003 financial year, life insurance premiums increased by
an estimated 12.3% in real terms to INR 650 billion (USD 14 billion)
while non-life insurance premiums rose 12.2% to INR 178 billion
(USD 3.8 billion). The strong growth in 2003 did not come in
isolation. Growth in insurance premiums has been averaging at 11.3%
in real terms over the last decade.


Not with standing the rapid growth of the sector over the last decade,
insurance in India remains at an early stage of development. At the
end of 2003, the Indian insurance market (in terms of premium
volume) was the 19th largest in the world, only slightly bigger than
that of Denmark and comparable to that of Ireland. This was despite
India being the second most populous country in the world as well as
the 12th largest economy. Yet, there are strong arguments in favors of
sustained rapid insurance business growth in the coming years,
including India’s robust economic growth prospects and the nation’s
high savings rates.
The dynamic growth of insurance buying is partly affected by the
(changing) income elasticity of insurance demand. It has been shown
that insurance penetration and per capita income have a strong non-
linear relationship. Based on this relation and other considerations, it
can be postulated that by 2014 the penetration of life insurance in
India will increase to 4.4% and that of non-life insurance to 0.9%.


The Indian insurance market is the 19th largest globally and ranks 5th
in Asia, after Japan, South Korea, China and Taiwan. In 2003, total
gross premiums collected amount to USD 17.3 billion, representing
just under 0.6% of world premiums. Similar to the pattern observed in
other regional markets, and reflecting the country’s high savings rate,
life insurance business accounted for 78.5% of total gross premiums
collected in the year, against 21.5% for non-life insurance business.


For the generation of insurance seekers who thrived on insurance policies
with assured returns issued by a single public sector enterprise, unit-linked
insurance plans are a revelation.

Traditionally insurance products have been associated with attractive returns
coupled with tax benefits. The returns part was often so compelling that
insurance products competed with investment products for a place in the
investor’s portfolio.

Perhaps insurance policies then were symbolic of the times when high
interest rates and the absence of a rational risk-return trade-off were the

The subsequent softening of interest rates introduced a degree a much-
needed rationality to insurance products like endowment plans; attractive
returns at low risk became a thing of the past. The same period also
coincided with an upturn in equity markets and the emergence of a new
breed of market-linked insurance products like ULIPs.

                        FOCUS OF STUDY

Insurance companies work on illustrations. They are allowed to show you
how much your annual premium will be worth if it grew at 10 per cent per
annum. But there are costs, so each company also gives a post-cost return at
the 10 per cent illustration, calling it the yield.

For us, the most startling discovery was that some companies were not
including the mortality cost while calculating the yield. This amounts to
overstating the yield. We have done the calculations ourselves and then
calculated the yield for this ranking.

                 REGULATORY REGIME

After the release of the Malhotra Committee report in 1994, changes
in the insurance industry appeared imminent. Unfortunately, changes
in the central government slowed down the process. The dramatic
climax came on 7 December 1999 when the government finally
passed the Insurance Regulatory and Development Authority (IRDA)
Act. This Act repealed the monopoly conferred to the Life Insurance
Corporation in 1956 and to the General Insurance Corporation in
1972. The authority created by the Act is called the Insurance
Regulatory and Development Authority (IRDA). Table 1.2 below
summarizes some of the milestones in India’s insurance regulation.

             FEATURES OF THE 1999 IRDA ACT

The Insurance Regulatory and Development Act of 1999 set out “to
provide for the establishment of an Authority to protect the interests
of holders of insurance policies, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected
therewith or incidental thereto and further to amend the Insurance Act,
1938, the Life Insurance Corporation Act, 1956, and the General
Insurance Business (Nationalization) Act, 1972.” The Act effectively
reinstituted the Insurance Act of 1938 with (marginal) modifications.
Whatever was not explicitly mentioned in the 1999 Act referred back
to the 1938 Act. The salient features of the 1999 IRDA Act are
discussed below:

The IRDA Act, 1999, sets out details of registration of an insurance
company along with renewal requirements. The minimum capital
requirement for direct non-life and life insurance business is 100
crores (i.e. INR 1 billion). The IRDA regulates the entry and exit of
players, capital norms, and maintains a strict watch on the equity and
solvency situation of insurers. Should an application be rejected, the
applicant will have to wait for a minimum of two years to make
another proposal, which will have to be with a new set of promoters
and for a different class of business.
For renewal, it stipulates a fee of one-fifth of one percent of total
gross premiums written direct by an insurer in India during the

financial year proceeding the renewal year. It also seeks to give a
detailed background for each of the following key personnel: chief
executive,   chief   marketing       officer,   appointed   actuary,   chief
investment officer, chief of internal audit and chief finance officer.
Details of the sales force, activities in rural business and projected
values of each line of business are also required. Further, the Act sets
out the reinsurance requirement for (general) insurance business. For
all general insurance a compulsory cession of 20%, regardless of the
line of business, to the General Insurance Corporation (the designated
national reinsurer) is stipulated.
Currently, India allows foreign insurers to enter the market in the form
of a joint venture with a local partner, while holding no more than
26% of the company’s shares. Compared to the other regional
markets, India has more stringent restrictions on foreign access.

                     Review of literature:
Insurance has always been a politically sensitive subject in India.

Within less than 10 years of independence, the Indian government

nationalized private insurance companies in 1956 to bring this vital

sector under government control to raise much needed development


The Indian insurance industry was dominated by LIC in life insurance

and GIC in general insurance. But now the insurance sector in India

has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again tracing the

development in the Indian insurance sector reveals the 360 degree turn

witnessed over a period of almost two centuries.

For recruitment of process of an insurance advisor in HDFC Standard

life insurance company there is some qualities that have to fulfill by

and prospect candidate.

I think that people who have ample knowledge about insurance

product and have good communication skill are most suitable for the

Insurance Advisor.


The project undertakes was precisely about the development of the
channel of the company i.e. Recruitment of the advisors of the
organization who further brings in the business to it.
The other main objectives of the research done for the company were:
1) To find the perception of the people about the company,
2) To check the job satisfaction level of the financial consultents of
3) To undertstand the recruitment system used in the selection
4) To know the satisfaction of employees about the given commission
5) To rank the training sessions given to employees by HDFC-SLIC.
6) To know the work of financial consultents in HDFC-SLIC.
7) To get the suggestions of financial consultants regarding the
improvement of recruitment system.


The main source of data can be categorized into the following 2 ways.



Primary data - Primary data is facts and information collected
specifically for the purpose of the investigation at hand. Information
that researchers gather first hand. The analyst can obtain primary data
through the process of direct observation or by explicit questioning of
Primary data has mainly been collected     from questionnaire method
by conducting personal visit.

Secondary data:
Secondary data is mainly collected through internet, magazines and
reports of the HDFC Standard Life Insurance.

STATISTICAL TOOLS:- pie charts bar representation of data are used
in representation of data.

                     COMPANY PROFILE


The Partnership:

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

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

The next three years were filled with uncertainty, due to changes in
government and ongoing delays in getting the IRDA (Insurance
Regulatory and Development authority) Act passed in parliament.
Despite this both companies remained firmly committed to the

In October 1998, the joint venture agreement was renewed and
additional resource made available. Around this time Standard Life
purchased 2% of Infrastructure Development Finance Company Ltd.

(IDFC). Standard Life also started to use the services of the HDFC
Treasury department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very
promising and both companies agreed the time was right to move the
operation to the next level. Therefore, in January 2000 an expert team
from the UK joined a hand picked team from HDFC to form the core
project team, based in Mumbai.Around this time Standard Life
purchased a further 5% stake in HDFC and a 5% stake in HDFC

In a further development Standard Life agreed to participate in the
Asset Management Company promoted by HDFC to enter the mutual
fund market. The Mutual Fund was launched on 20th July 2000.


The company was incorporated on 14th August 2000 under the name
of   HDFC       Standard     Life     Insurance     Company       Limited.
Their ambition from the beginning was to be the first private company
to re-enter the life insurance market in India. On the 23rd of October
2000, this ambition was realized when HDFC Standard Life was the
first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%,
while Standard Life owns 18.6%. Given Standard Life's existing
investment in the HDFC Group, this is the maximum investment
allowed under current regulations. HDFC and Standard Life have a
long and close relationship built upon shared values and trust. The
ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance
companies in India are measured.


To be the top new life insurance company in the market. This does not
just mean being the largest or the most productive company in the
market, rather it is a combination of several things like:

      Customer service of the highest order
      Value for money for customers
      Professionalism in carrying out business
      Innovative products to cater to different needs of different
      Use of technology to improve service standards
      Increasing market share

                          THEIR VALUES

      SECURITY: Providing long term financial security to our
policy holders will be our constant endeavor. We will be do this by
offering life insurance and pension products.
      TRUST: We appreciate the trust placed by our policy holders in
us. Hence, we will aim to manage their investments very carefully and
live up to this trust.
      INNOVATION: Recognizing the different needs of our
customers, we will be offering a range of innovative products to meet
these needs.

Their mission is to be the best new life insurance company in India
and these are the values that will guide them in this.

                      OUR KEY STRENGTHS


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.


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.


Our gross premium income, for the year ending March 31, 2007 stood
at Rs. 2, 856 crores and new business premium income at Rs. 1,624

The company has covered over 8, 77,000 lives year ending
March 31, 2007.

HDFC Standard Life is one of the leading life insurance companies
having a track record of declaring bonuses every year since inception.

We attribute this success to our people, who are our most important
asset. We believe they are a key facet of the company and it is their
contribution that has enabled us to achieve our current status. Since
they deserve the best, our efforts have been to provide them with the
best environment, best culture and best development opportunities

                      PRODUCT PROFILE

1. Protection Plans

2. Savings Plans

3. Child Plans

4. Investment Plans

5. Retirement Plans

6. Group Plans

7. Rural Plans

8. Plans for NRIs

9. Key man Plans

10. Riders

                     HDFC GROUP PLANS
This group coverage plan is for a specified group of people, providing
insurance for one year. In case of death of a member the amount is
paid to the beneficiary of the member.

Eligibility & Payment Of Premiums :
Members of a development agency (together with their spouses),
between the ages 18-50 yrs are eligible. The development agency
must have at least 500 members. But the employees of the agency
group are not eligible for coverage.

Premiums will be same (per member) for the entire group. The
premiums will have to be paid by the agency for all the members in a
specified format.

In case of death of the group member the sum assured will be paid to
the beneficiary. In case of death due to accident, additional sum of
50% of sum assured is also paid. Nothing is payable in case of
survival of the member at the end of the year.

HDFC insurance gives mortality rebate (at its discretion), which is
calculated separately for groups. This rebate will be a proportion of
excess (if any) premiums paid over the claims (after deducting
administrative costs).in case of deficit, HDFC bears the gap& no
rebate will be given. The development agency is expected to perform
certain tasks like collecting data, noting down changes, paying the
premiums, disbursement of claims etc. The agency will be trained and

also will be paid a premium rebate.(subject to fulfillment of criterion
laid down by HDFC insurance).


1) Endowment Assurance Plans:

HDFC ins. offers various types of endowment assurance plans. Under
endowment assurance the amount (sum assured) is paid with bonus (if
any) when the policy matures or in case of premature death of the
policyholder during the term of the policy.

Types of Endowment Assurance Plans:

A) Classic plan: here only basic sum assured with bonus (if
any) alone is paid.

B) Value plan A: in this case double the sum assured is paid in case of
death of the policyholder.

C) Value plan B: under this plan, apart from double the sum assured
coverage in case of natural death, accidental death benefit is also
provided. In case of death due to accident, double the sum assured is

D) Value plan C: this type provides basic sum assured assurance and
also waiver of premium facility. Premiums are waived in case of total
disability & for the period of total disability.

E) Value plan D: three benefits basic sum assured protection, waiver
of premium in case of total disability and accidental death benefit are
offered under plan D.

F) Value plan E: apart from basic sum assured and waiver of
premiums in case of total disability, this plan also covers specified
critical illnesses (for basic sum assured).

Flexi- Plan:

A choice is given to design ones own policy, in consultation with a
financial consultant where one can add any of the 4 additional benefits
double sum assured, accident death benefit, waiver of premiums,
critical illness.

Age groups covered:

For classic plan: 12-60 yrs (max. age at maturity 75 yrs.)

Value plan a: 18-60 yrs (max. age at maturity 75 yrs.)

Value plan b: 18-55 yrs (max. age at maturity 65 yrs.)

Value plans c, d, e: 18-50 yrs. (max. age at maturity 60 yrs.)

Term for all endowment plans:

Min term: 10 years.

Max term: 30 yrs.

Payment Options-

Yearly, half yearly or quarterly for all plans.

HDFC Money back Plans:

HDFC Money back plans pay cash lump sum in proportion to the
basic sum assured. This cash lump sum is paid once in every 5yrs.on
maturity the basic sum assured minus the cash lump sum amounts
paid in between is paid together with bonus if any. If a policyholder
expires during the term of the policy, full sum assured (without
deducting) any paid lump sum amounts is paid (with bonus if any).

Schedule of Lump sum Amounts:

The schedule of lump sum amounts depends on the term of the policy.
A choice of 5 terms is available --- 10, 15, 20, 25, 30 yrs

10 yr policy: 40% of sum assured is paid after 5 years. The balance
60% is paid at the time of maturity (with bonus).

15 yr policy: two installments of 30% is paid at the end of 10 yrs
and 15 yrs respectively. The balance 60% is paid at the time of
maturity (with bonus any).

20 yr policy: 3 installments of 20% of sum assured are paid at the
end of 5,10 and 15 yrs. The balance sum assured of 40% is paid at the
time of maturity (with bonus if any)

25 yr policy: 4 installments of 20% of sum assured, lump sum
amounts are paid at the end of 5,10,15,20 yrs. The balance 20% is
paid at the time of maturity (with bonus, if any).

30 yr policy: 5 installments of 15% of sum assured are paid as lump
sum amounts at the end of 5,10,15,20,25 yrs .the balance 25% is paid
at the time of maturity (with bonus, if any.)


After choosing the term (no. Of yrs), a person can also choose from
several variants of money back plans. They are

1) Classic plan: only basic sum assured is paid at the time of pre
mature death of the policyholder.

2) Value plan A: in case of premature death of the policy holder
additional sum assured equivalent to basic sum assured is paid. For
calculating lump sum amounts, only the basic sum assured is

3) Value Plan B: under this plan double the sum assured is paid in
case of premature ordinary death, and also premature death due to
accident. Lump sum amounts are calculated for basic sum assured

4) Value plan c: the risk is covered for basic premiums.
Additionally, in case of total disablement, further premiums are
waived during the period of total disablement.

5) Value plan d: double the sum assured protection in case of
premature death is provided. Also waiver of premiums in case of total

disablement, for the period of disablement facility is given. But lump
sum payments are calculated for basic sum assured only.

6) Value plan e: certain critical illnesses are covered under this
plan. The risk is covered for basic sum assured. But waiver of
premiums facility is given (in case of total disablement, during the
period of disablement).

Flexi Plan
A choice is given to design a plan of ones own choice, in

consultation with a financial consultant. Where one can add any of

the additional benefits (4) - double sum assured, accidental death

benefit, waiver of premiums and critical illness.


Classic plan: 12 60 yrs.

Value plan a: 18-60 yrs.

Value plan b: 18-55 yrs.

Value plans c, d, e: 18-50 yrs.


Min term for all polices: 10 yrs.

Max term for all polices: 30 yrs.

Payment Options:

Yearly, half yearly or quarterly for all the plans.


HDFC Stand.. Market Return Fund unit-linked insurance plan offers
four tailored investment funds.


The premium made net of Premium Allocation Charges by the
Individual is invested in fund/funds of choice and units are allocated
depending on the price of units for the fund/funds.

The value of Unit Account is the total value of units that hold in the
fund/funds. The Mortality Charges and Policy Administration Charges
are deducted through cancellation of units whereas the Fund
Management Charge is priced in the unit value

Capital Secure Fund :

This fund offers steady returns for very little risk. Your funds are
invested 100% in bank deposits, government bonds and debt
instruments that offer financial security.

Balanced Fund :

In this fund, a major portion of your funds are invested in fixed
securities while a small percentage is invested in the equity market
which is exposed to market movements.

Growth Fund:

This fund offers a greater portion of investment in the equity market.
The greater exposure to the equity market means that returns will be
higher, but with the attendant higher level of risk.

Equity Fund :

This fund offers a totally equity based investment option. Your
returns depend entirely upon the performance of thequity.The higher
risk of this portfolio means that expected returns will also be higher.

The allocation of assets and the risk and return levels for each
investment fund are given in the table below:

                                                        Asset Allocation

Fund            Time        Risk             Level of   Fixed
Type            Horizon     Level            Returns                       Equities
                                                        Not less

                Short       Low              Low        100%               0%

Balanced        Medium                       Medium     80%                20%

Growth          Long                         Medium     60%                40%

Equity          Long        High             Hign       0%                 100%

What are units?

The premiums you pay are invested into the funds according to your
choice. Your investment is expressed in terms of units, the value of
which varies according to the performance of the funds. Unit prices
are calculated regularly for each fund using the following formula:

               Total market value of assets plus current
               assets less current liabilities less provisions
               Total number of units on issue

When you pay premiums, we will allocate your units using the next
following unit price that we determine.

When we pay you benefits, we will cancel units at the next available
unit price.

The market value of assets is arrived at based on the information from
stock exchanges, financial institutions and market makers.

                  Premium Payment Options

Single Premium

Minimum            Rs 25,000

Regular Premium

Minimum Installments

   Annual          Rs 10,000

   Half Yearly     Rs 5,000

   Quarterly       Rs 2,500

                   Rs 1,250 (for salary deduction

                   Rs 2,500 (standing order/credit

Top-up Premium

Minimum            Rs 2,500

Regular Premium

You can select a regular payment mode of your choice to build up
your unit account. Such regular payments continue till the maturity
date of the policy. We will invest your premiums in the investment
funds of your choice in the proportions that you specify subject to
regulatory norms. Under current regulations, you may invest up to a
maximum of 20% of your premiums into the Capital Secure Fund at
the commencement of your policy.

Single Premium:
Account with a single premium payment of Rs 25,000 or more. The
invest premiums in the investment funds choice in the proportions that
specify subject to regulatory norms. Under current regulations, we
may invest up to a maximum of 20% of the premium into the Capital
Secure Fund at the commencement of policy.

Top-up Premiums:

When you have additional funds, you can enhance your unit account
with top-up premiums of Rs 2,500 or more. You may make top-ups on
your regular or single premium policy at any time to further build
your portfolio. These top-ups do not affect your sum insured; they
simply increase your investment in the funds.

Redirections are free of cost:

At any point you can redirect your premiums to other investment
funds. Once your requisition reaches us, your future premium
payments will be redirected to the investment fund/s of your choice.


No. of partial withdrawals per year for
regular/single premium options

Minimum period the policy should be
in                                               1 year
force for partial withdrawals

Minimum unit account balance after               Rs
each withdrawal                                  10,000

The withdrawal option provides you with the right amount of liquidity
such that you can draw from your unit account without disturbing the
insurance cover you enjoy. Once the policy is in force for at least a
year, you can make partial

Regular Premium:

                                        5      times   annualized
                   Up       to
                                        premium or Rs 5,00,000,
Minimum Sum        age 12
                                        whichever is lower

                   Above                5      times   annualized
                   age 12               premium

                   Up       to
                                        Rs 5,00,000
Maximum Sum        age 12
Insured            Above
                   age 12

Single Premium :

                                        110% of single premium
                   Up       to
                                        or Rs 5,00,000, whichever
Minimum Sum        age 12
                                        is lower

                                        110% of single premium
                   age 12

                   Up       to
                                        Rs 5,00,000
Maximum Sum        age 12
                   age 12

Death benefits available:

If the life insured dies before the maturity date, the policy
holder/beneficiary will receive the full value of the unit account or the
sum insured whichever is higher. The advantage in this policy is that
we recalculate your insurance charge each month, so as your unit
account grows in value, your insurance charge reduces. That is, you
only pay insurance charges for the decreasing sum at risk as is shown
in the graph below.

     Suicide Clause:

     If the life insured, whether sane or insane, commits suicide within 12
     months from the date of commencement of this policy we will limit
     the death benefit to the value of your unit account. Insured benefits
     are not paid in this case.

     Can you change the sum insured:

Reducing                              Minimum as specified
the sum insured                       in table below

Increasing                            Subject to underwriting
the sum insured                       Requirements

                                           5 times annualized
                            Up to
Minimum Sum
                                           premium or Rs 5,00,000,
                             age 12
                                           whichever is lower
                            Above          5 times

                             age 12        annualized premium

You may increase your sum insured on the basis of continued good
health and our terms and conditions applicable at that time. What are
the additional benefit options? If you wish to enjoy additional
insurance benefits, You may select the Accidental Death and Total
and Permanent Disablement Benefit rider that this policy offers, for
regular premium payment option.


This benefit doubles the life coverage in case of death or permanent
total disability due to an accident at a very nominal additional cost.
The maximum cover offered is Rs 50,00,000. In case of total and
permanent disability, 1/10th of the sum insured will be paid at the end
of each year for ten years. If the total and permanent disability benefit
has commenced, then the accident cover will cease.

In case of maturity or on death of the life assured, after the payment of
any installments of the permanent and total disability benefit, the
remaining unpaid installments, if any, will be paid in one lump sum.

Total and permanent disability means disability caused by bodily
injury which causes permanent inability to perform any occupation or
to engage in any activities for remuneration or profits. This disability
should last for at least 6 months before being eligible for total and
permanent disability benefits. Total and permanent disability also
includes the loss of both arms and both legs or one arm and one leg, or

of both eyes. By loss of arms or legs we mean dismemberment by
amputation of the entire hand or foot. Loss of eyes means entire and
irrecoverable loss of sight.

HDFC Standard Life Insurance will not be liable to pay any accidental
death benefit claim or total and permanent disability benefit claim
which results directly or indirectly from any one or more or the

•     An act or attempted act of self-injury.
•     Participation in any criminal or illegal acts.
•     Being under the influence of alcohol or drugs.
•     Racing or practicing racing of any kind other than on foot.
•     Flying or attempting to fly in, or using or attempting to use, an
aerial device of any description, other than as a fare paying passenger
on a recognized airline or charter service. Participating in any riot,
strike or civil commotion, active military, naval, air force, police or
similar service, War, invasion, act of foreign enemies, hostilities or
war like operations (whether war be declared or not), civil war,
mutiny, military rising, insurrection, rebellion, military or usurped
power or any act of terrorism.

Your Unit Account
The following diagram shows that your premiums and investment
earnings are used to purchase units, which are directed to your unit
account. Any charges or benefits are paid out by converting your units
into cash once again.

      Charges applied:

      Allocation fee

                                  Term of
                                  Policy (years)

                       Year       5-9          10-14   15+

Regular          First Year       10%          15%     20%

                                  5%           5%      5%
Premium          Thereafter
                These are applied to the premiums

                The allocation fee is 2% of the
Single          premium/contribution amount.


Insurance                               This is
Charges                               based on
                        your    attained      age    and     is
                        at the beginning of each month.

                     Unit-Linked                    Annual
                 Fund                          Rate*

                 Capital Secure                1.50%

                 Balanced                      1.50%

                 Growth                        1.75%

                 Equity                        1.75%

                       The investment charges are
                         deducted on a daily basis.

Tax benefits:

Premium, net of health related benefit (eg. Critical Illness) premium
paid, up to a maximum of 20% of the sum assured will be eligible for
income tax rebate under section 80C. Provided, the premium in any of
the years during the policy term does not exceed 20% of the sum
assured, your death, maturity and withdrawal benefits are eligible for
tax relief under section 10 (10D). Please consult your tax consultant
for further details.

Also remember that if the policy lapses or you terminate the policy
before you have paid premium for two years in case of a regular
premium plan or two years have elapsed in case of a single premium
plan, the tax benefits availed shall be deemed to be tax payable. To
take advantage of the current tax benefits, we recommend the
following sums assured. Please remember that these limits are not
binding and you may choose other alternatives.

Prohibition of rebates:

Section 41 of the Insurance Act, 1938 states:

1. No person shall allow or offer to allow either directly or indirectly,
as an inducement to any person to take out or renew or continue an
insurance in respect of any kind of risk relating to lives or property in
India, any rebate of the whole or part of the commission payable or
any rebate of the premium or continuing a policy accept any rebate,
except such rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer.

2. Any person making default in complying with the provisions of this
section shall be punishable with fine which may extend to five
hundred rupees Insurance is the subject matter of solicitation


Bajaj Allianz Life Insurance      AMP Sanmar Life Insurance
Aviva Life Insurance                  HDFC     Standard      Life
Birla Sun Life Insurance              ICICI    Prudential    Life
Max New York Life Insurance       Metlife Indian Insurance
Reliance Life Insurance           Shiram Life Insurance
Tata AIG Life Insurance           SBI Life Insurance
Bharti AXA Life Insurance         ING Vysya Life Insurance
Sahara Life Insurance             Kotak Mahindra Insurance
General Insurance                 Royal Sundaram Insurance
Corporation Of India
Canara HSBC
OBC Life Insurance




•       HDFC Standard life Insurance is the largest private player   in
        the insurance industry in India
•       Excellent services.
•       Customization of products as per customer’s needs.
•       Brand image.
•       Business experience.
•       Strong financial base.
•       Innovative products, Technology, Organization culture &
•       The company has a large network of branches, which is helpful
        to customer for the payment.


•       Lot of competitors are in the market offer same product offered
        by the difference in the premium & offering.

•       Target only higher income group where as other companies are
        trying to catch middle-class people.
•       Higher premium as compared to other companies.

•       Clients face problems to get insured due to large number of

•       High targets for financial advisors & for the sale department.


   Huge market is literally untapped. Out of estimated 320 million
     insurable markets only 20% of the population is insured.

   In a conservative society of India where people are most
     inclined towards risk free investments such as Bank FD’s &
     savings rather than equity & high risk investment insurance
     offers the best of both words – The security with high returns.

   In the pension field where people want good life after their

   Indian people are more emotional towards their child that’s why
     children plans are selling like hot cakes.

   Health insurance & pension schemes as estimated market
     potential of approximately $15.


   Weak perceptions of private players in the mind of Indian
     people due to frequent financial scams.
   Large number of insurance players.

   Existing wrong business practices of companies like their
     agents pay LIC first premium where as IRDA suggests that
     even forms to be filled by the clients themselves.
   Players like Bajaj Allianz & Birla Sun Life with low premiums
     for the similar plans.
   Entry of many other private companies with equally strong
     experience & financial strength of foreign partners making the
     competition difficult & saturating the urban markets.
   LIC has woken up from sleep & is following competitive
     strategies. Its huge surplus in the life fund gives a capability to
     lodge price war.
   For the insurance sector Govt. set the authority that is IRDA
     which is undertaken to track record of all the companies &
     change the rules day by day more rigid, which is very difficult
     for the companies.


As far as licensing an individual is concerned, the following

documents would be required :

     Checklist

     Age proof

     Education proof

     Address proof

     Agency application

     Form VA

     8 photograph- all one kind- recent, clear colored only with

name written behind each photo



Financial Consultant:

Financial consultant provides analysis and guidance to businesses and

individuals to help them with their investment decisions. They act as

an representative for the company so as to develop the channel &

bring business for the company. They sell different types of insurance

policies, for a single insurance company, in return for a commission.

Depending on the type of work they perform they are paid a salary, a

salary plus commission, or only commission. He is also called an

insurance broker in some instances and may work with different

companies depending on their area of expertise and coverage.

Job Responsibility:

   His / her job his is to find local doable customers to determine

     their needs and help them in getting insured.

   Delivering the insurance policy to the respective customers

     upon approval and collect the premium amount; in return for

     which they get a certain amount of commission by the

     insurance company.

   He may sell individual policies for home, life, car and medical


   Negotiate the new terms with the insurance company.

   Help the insured customers to get their insurance claim in case

     of any natural disaster occurs.



IRDA Regulations for becoming an agent: The three pre-requisites

laid down by IRDA to qualify as an agent under the licensing

regulations are:

 Educational Qualification: Possess a minimum educational

   qualification of 12th standard or equivalent.(if population >5000)

   and 10th standard or equivalent (if population < 5000).

 Practical Training: Complete one hundred hours (100) of practical

   training in life insurance business.

 Pre-recruitment Test: Pass the pre-recruitment test, based on an

   examination conducted by the Insurance Institute of India or

   another approved body. (Agents licensed before the regulations

   were notified i.e. on July 14, 2000 will be exempt from the above


Training process:

Training hours: 100

Two modes of training

(a) class room
(b) online

Class training has two options

(a) Full time: -- 9.30 to 5.30 Monday to Saturday for 18 days + 3 days
of product training.

(b) Part time: -- 6.30 pm to 9 pm Monday to Saturday for 34 days

(c) Online: -- on computer and 100 hrs must be completed within 30

(In case of professionals like CA’s, ICWA’s and MBA {from premier

institutes} Training is for 50 Hrs and must be completed in 9 days)

5. After the prospect have undergone the training process, he have to

appear for an online test, which is about the training he has done, and

he gets the result on the spot, and if he clears the examination then he

gets a license for 3 years and also, –HDFC STANDARD LIFE

INSURANCE gives free zero balance accounts to the ADVISORS.


Why do I need Life Insurance?
Life insurance is designed to protect you and your family against

financial uncertainties that may result due to unfortunate demise or

illness. You can also view it as a comprehensive financial instrument

– as a part of your financial planning offering you savings &

investment facilities along with cover against financial loss. By

choosing the right policy as per your needs i.e. customized solutions,

you will be able to plan for a secure future for yourself and your loved


Choosing the right plan . Identifying the right plan basis your

needs is the first crucial step towards insurance planning.

At HDFC SL they help you through this decision by identifying your

various needs and offering plans that are customized for you. You

may also choose a plan for yourself by identifying the life stage you

are at.

                         Analyzing Needs:


Need for a sound income protection in case of your unfortunate



Need to ensure long-term real growth of your money.


Save for the milestones and protect your savings too.


Need to save for a comfortable life post retirement.

Once you have analyzed your needs as per above classification, you

need to then ascertain important factors such as type of cover,

insurance amount as per one's income, life stage and dependents. It is

difficult to arrive at all these figures yourself. Our financial

consultants can help you with all the analysis to offer a customized

solution by doing a thorough need analysis.

               Life Stages for life insurance:

Your insurance need will change as your life does, from starting to

work to enjoying your golden years and all the stages in between.

Each one of these stages may pose a different insurance need/cover

for you. In this section, we have drawn up the basic life stages and

help you analyzes various insurance needs accordingly. Please get in

touch with our financial consultant to know more about our products.


Young and Single

An important stage where one lays down the foundation of a

successful life ahead. Take advantage of the time and power of

compounding to ensure that you build up your dreams. Start saving


Your needs:

               Save for a home and wedding

               Tax Planning

               Save for Golden years


Just Married

Marriage brings about a significant change. New dreams and new

opportunities also bring in additional responsibilities. While both of

you look forward to a happy and secure life , it is equally important to

ensure that eventualities don’t come in the way of shaping your


Your needs:

              Planning for home / securing your home loan liability

          Save for vacation

          Save for your first child


Proud Parents

Once you have children, your need for life insurance is even more.

You need to protect your family from an untoward incident. Ensure

your protection umbrella takes into account the future cost of securing

your child’s dream. You will want life to go on for your loved ones,

and having enough life insurance is a way to help ensure that.

Your needs:

          Provide for children’s education

          Safeguarding family against loan liabilities

          Savings for post-retirement

   STAGE 4

   Planning for Retirement

   While you are busy climbing the ladder of success today, it is

   important for you to take time and plan for your life after retirement.

   Having an early start for retirement planning can make a significant

   difference to your savings. Think about your golden years even before

   you have reached them. The key is to think ahead and plan well using

   your time and money.

   Your needs:

             Provide for regular income post retirement

             Immediate Tax benefits

Lead a secure, independent and comfortable life style in your retirement



1)Why did you opt for HDFC SLIC ?

          sources of information                            %age

          a)                       Reference                       60

          b)                       Advertisement                   20
          c)                       Ex-members                      10
          d)                       Others                          10


          50                                       b)


          30                                       c)
          20                                             Ex-


About 60% of the people they come by reference , 20% by advertisement
and other 10% ex-members and rest 10% come by other sources.

2)Out of five how would you rank various salary packages               and

               parameter                   %age
                                      1                          70
                                      2                          10
                                      3                           8
                                      4                           7
                                      5                           5



                        40                                %age
                             1   2         3      4   5


70% of the people said that their incentives are Excellent and 10% says that
its fair enough other 8% says its good and another 7% says that its poor and
rest 5% said that it is very poor.

3)Do you feel that recruitment system in HDFC SLIC is fair enough?

                         Response                          %age

                           Yes                              85

                            No                              15



                  50                                              %age

                              Yes                  No


     85% said that its excellent and there is no process apart from it which can be
     recommended for recruitment but 50% said that its not upto the mark.

4) How would you grade the facilities provided under this system?

      Excellent     50
      good          25
      average       10
      fair          10
      poor           5

                          30                                            Series1










     50% of the people said that that facility provided by the system are Excellent
     and 25% says that facilities are good 10% says average and 10 say that its
     fair other 5% say that facilities provided are poor.

5)Are you satisfied with the commission rate given by HDFC SLIC ?

      Response   %age
      Yes               70
      No                30




                             40                          %age


                                  Yes          No


70 % people are satisfied with the commission rate given by HDFC SLIC and
30% people are not satisfied with the commission rate given by HDFC SLIC.

6)To what extent do you feel that HDFC SLIC provides job satisfaction ?
                                                 Excellent            25
                                                 good                 50
                                                 average              10
                                                 fair                 10
                                                 poor                  5

                         30                                                Series1










25% respondents give excellent response about this and 50% say that it is good
10% says that it is average and other 10% says that it is fair and other are not
satisfied by it.

7) Is the commission given by HDFC SLIC compatable with other companies?

                                    Response   %age
                                    Yes               75
                                    No                25




                     40                                    %age


                              Yes              No

75% of the people says that the commission given by HDFC SLIC compatable
with other companies and other says that it is compatable with other companies

8) Rate your satisfaction level of training undergone by you?

                                               5       40
                                               4       30
                                               3       15
                                               2       10
                                               1        5


                              30                            Series1
                              20                            Series2
                                   1   2   3       4   5


40% of the people rate at 5th position on likert scale, 30% rate on the 4th position,
15% on the 3rd position, 10% on 2nd and other 5% on one.

9) How would you rank the behaviour of your top authority in solving your
problem out of 5?

                                       Parameter       %age
                                               5               8
                                               4               7
                                               3              10
                                               2              15
                                               1              60



                              40                                   %age
                                   1   2       3       4   5


8% of the people give 5th rank to their top authorities, 7% give the 4th rank to them,
3% people give 3rd rank, 15% give 2nd rank and other 60% people give them 1st

10) Do you think that company’s atmosphere is fair enough for your future
growth, rate on the scale of 5?

                                       Parameter       %age
                                               5               8
                                               4              60
                                               3              15
                                               2              10
                                               1               7




                      40                                           %age


                             1     2      3        4      5


8% people think that the company’s atmosphere is fair and they give it the rank on
5th position, 60% give it the 4th position, 15% give the 3rd position and 10% give
the 2nd position and 7% iof the people give it the 1st position

11) Will you recommend HDFC SLIC to others for being a financial

                                      Response   %age
                                      Yes               80
                                      No                20


                                Yes              No


80% of the people recommend that HDFC SLIC is good for being a financial
consultant but the rest 20% are not in its favour.

12) Do you think that people get ahead primarily on the merit of this work,
rate on scale of 5?
                                    Parameter       %age
                                            5               5
                                            4              20
                                            3              15
                                            2              10
                                            1              50


                     30                                         %age
                           1    2      3        4      5


5% respondents give 5th position to it 20% respondents give it 4th position 15%
respondents give 3rd position 10% people give it 2nd rank and rest 50% give it 1st

13) Do you satisfied with the amount and frequency of informal praise and
application you received from your boss, rate on scale of 5?

                                               5           40
                                               4           30
                                               3           15
                                               2           10
                                               1            5


                              30                                Series1
                              20                                Series2
                                   1   2   3       4   5


40% respondents give it the 5th position, 30% respondents give it 4th position, 15%
give 3rd position and 10% give it 2nd position and rest 5% give it the 1st position.

14)Any suggestion for improvement of the recruitment system?


   The company should spread its advertisements so that it can
    increase in the quantity of financial consultants because most of
    the financial consultants come through references.

   The job satisfaction provided by the company is good but it should
    take more step to makes it excellent

   The training procedure of the company is excellent.

   The recruitment system is fair enough to recruit the people as a
    financial consultant of the company

   The company is providing good commission to its members and it
    is more as compare to other company.

   The facilities providing during the training session is good.


Licence no:

1)Why did you opt for HDFC SLIC ?
a)         Reference
b)         Advertisement
c)         Ex-members
d)         Others

2)Out of five how would you rank various salary packages and

a)1         b)2            c)3           d)4         e)5

3)Do you feel that recruitment system in HDFC SLIC is fair enough?

a) Yes                     B)No

4) How would you grade the facilities provided under this system?

a) Excellent      b)good   c)average     d)fair   e)poor

5)Are you satisfied with the commission rate given by HDFC SLIC ?

a)Yes                      b)no

6)To what extent do you feel that HDFC SLIC provides job
satisfaction ?

   a)Excellent b)Good         c)Average         d)Fair         e)Poor

7)Is the commission given by HDFC SLIC compatable with other

a) Yes                                b) No

8)Rate your satisfaction level of training gone by you?

a)5       b)4         c)3            d)2           e)1

9)How would you rank the behaviour of your top authority in solving
your problem out of 5?

a)1       b)2          c)3            d)4           e)5

10)Do you think that company’s atmosphere is fair enough for your
future growth, rate on the scale of 5?

a)1       b)2           c)3           d)4           e)5

11)Will you recommend HDFC SLIC to others for being a financial

a)Yes                                b)No

12)Do you think that people get ahead primarily on the merit of this
work, rate on scale of 5?

a)1       b)2           c)3               d)4            e)5

13)Do you satisfied with the amount and frequency of informal praise
and application you received from your boss, rate on scale of 5?

a)1      b)2           c)3           d)4         e)5

14)Any suggestion for improvement of the recruitment system?



    News Papers:-
1.         The Economic Times.
2.         Times of India.
3.         Business standard.
4.         Financial Express.
    Magazines:-
1.         Business world.
2.         Business Today
3.         Outlook.
    Internet Sites:-






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