1

ACKNOWLEDGEMENT
Perseverance and inspiration always played a key role in the success of any venture. At the level of practical,

it is often difficult to get knowledge without guidance. Project is like a bridge between theoretical and

practical. With this willing I joined the project.

At the very outset, I would like to take golden opportunity of thanking those persons. First of all I would like

to thank Mrs. Gitika Sajjanhar, Channel development Manager of HDFC SLI, Mohali Branch, for her kind

guidance and necessary support during the study. Secondly I would like to thank Mrs. Tarun Sahni, MBA

Faculty, AIMT. Without her guidance, co-operation, inspiration and suggestion it would have been impossible

for me to accomplish the project successfully

I also take this opportunity to extend my heartfelt gratitude to others who directly of indirectly helped me, by

providing me necessary information required for successful completion of the project.

With sincere thanks………… VINITA SHARMA

1360

MBA (HR)

AIMT
 2

DECLARATION

I hereby declare that his project report entitled “RECRUITMENT AND SELECTION OF FINANCIAL

CONSULTANTS FOR HDFC STANDARD LIFE INSURANCE CO. LTD” is the result of Original work

Carried out by me during 50 Days in intensive study of the field, for the award of the Degree of MASTER’S

OF BUSINESS ADMINISTRATION.

This Report has not been copied from anywhere, up to the best of my belief and knowledge. It has not been

submitted anywhere else for Award of any other Degree/diploma.

VINITA SHARMA

1360

MBA (HR)

AIMT
 3

REASON FOR SELECTING THE

TOPIC:

Financial sector is one of the booming and increasing leaps and bounce, some of the experts say only 20% of

Indian population is insured which means 80% Indian are not insured and therefore having a bright prospect

of progress of this sector where I too would like to build my career and be a part of success story.

The Financial consultants are another channel through which the company sales its policy. It is really difficult

to convince and sale a single policy but since these consultants have their contacts which they can sale a

single policy. Whereas I found my interest in dealing, interacting and handling a team, because all this most of

time park you in some critical zone which becomes challenge for you and your responsibility becomes to

solve the critical situation or problems.

 4

Industry profile

INSURANCE:

Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong. It’s often

about things going right. One of the Wonders of human nature is that we never believe anything can actually

go wrong.

The insurance sector in India has a full circle from being an open competitive market to nationalization and

back to liberalized market again. Tracking the development in Indian insurance sector reveals the 360 degree

turn witnessed over a period of almost two centuries.

The business of life insurance in Indian in its existing form started in India in the year 1818 with the

establishment of Oriental Life Insurance Company in Calcutta. Some of the important milestones in life

insurance business in India are.

1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information

about life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of protecting

the interests of the insuring public.

1965: 245 Indian and foreign insurers and provident societies take over by the central government and

nationalized. LIC formed by an act of parliament viz. LIC Act 1956 with a capital contribution of Rs. 5 Crore

from the government of India.

 5

COMPANY PROFILE

Introduction:

HDFC Standard Life Insurance Company Ltd. offers a range of individual and group insurance solutions. It is

a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading

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

services in the United Kingdom. The Standard Life group has been looking after the financial needs of

customers for over 180 years. It is a leading pension’s provider in the UK. Both the promoters are well known

in their respective fields of activities. For more details you may log on to www.hdfcinsurance.com

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

Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior

management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was

appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr.

Parekh is a Fellow of the Institute of Chartered Accountants

Business Objectives:

The primary objective of HDFC is to enhance residential housing stock in the country through the provision
of housing finance in a systematic and professional manner, and to promote home ownership. Another
objective is to increase the flow of resources to the housing sector by integrating the housing finance sector
with the overall domestic financial markets.
 6

Organizational Goals:

HDFC's main goals are to

a) Develop close relationships with individual households.

b) Maintain its position as the premier housing finance institution in the country.

c) Transform ideas into viable and creative solutions.

d) Provide consistently high returns to shareholders

e) To grow through diversification by leveraging off the existing client base.

HOUSING DEVELOPMENT FINANCE

CORPORATION:

HDFC was started by Hasmukh Bhai Parekh in1977 with the formation of Malhotra Committee. HDFC was

incorporated with the primary objective of meeting a social need that of promoting home ownership by

providing long-term finance to households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 10 crores.

HDFC has since emerged as the largest residential mortgage finance institution in the country. The

corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the

corporation as on March 31, 2000 stood at Rs. 2,096 crores.

 7

HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai,

India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and

Qatar.

STANDARD LIFE:

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

Assurance Company Act was passed by Parliament in 1832. Standard Life was reincorporated as a mutual

assurance company in 1925.

Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life

insurance business for the past 182 years, is a modern company surviving quite a few changes since selling its

first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening

offices in other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of

being accorded "AAA" rating consequently for the past six years by Standard & Poor.
 8

JOINT VENTURE:

81.4%

18.6%

SHARE HOLDING PATTERN

INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO.

LTD.:

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.

 9

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies,

which offers a range of individual and group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and one

of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom.

Both the promoters are well known for their ethical dealings and financial strength and are thus committed to

being a long-term player in the life insurance industry.

PRODUCT SCOPE:

Individual Products:
1. HDFC Children's Plan,

2. HDFC Endowment Assurance Plan,

3. HDFC Loan Cover Term Assurance Plan,

4. HDFC Money Back Plan,

5. HDFC Personal Pension Plan,

6. HDFC Single Premium Whole Of Life Plan,

7. HDFC Term Assurance Plan,

8. HDFC Unit Linked Endowment,

9. HDFC Unit Linked Endowment Plus,

10. HDFC Unit Linked Pension,

11. HDFC Unit Linked Pension Plus,

12. HDFC Unit Linked Young Star,

13. HDFC Unit Linked Young Star Plus

 10

Group Products:
1. Group Term Insurance,

2. Group Variable Term Insurance,

3. Group Unit Linked Plan,

4. Gratuity Group Unit Linked Plan,

5. Superannuation Group Unit Linked Plan ,

6. Leave Encashment

PRODUCT PORTFOLIO
HDFC offers products as per the life stages of the customers and their respective needs.
 11

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 analyze various insurance needs accordingly.

COMPARITIVE ADVANTAGE OVER COMPETITORS

PRODUCT :

• I compared two products, ICICI smart kid unit link and HDFC young star, in both the policies parent is
insured and child in nominee or beneficiary,
 12

• Both the policies contains same features, only additional rider is available in smart kid is income benefit
rider (IBR), how this rider works? this rider comes in the picture when the parent expires or becomes
permanent disable at that time this rider pay 10% of sum assurance to nominee,

• HDFC Youngstar offers Insurance Cover up to 20 Times of Annual Premium. You may Pay Rs. 30000 per
year & take Insurance Cover of Rs. 6 Lacks.

• You may take Critical Illness Rider in HDFC Youngstar up to 65 years Age (as it Cheaper than other
ULIPS).

• The returns from HDFC Tax saver, HDFC LT Advantage fund are better than the returns from HDFC
Standard Life Equity Fund.

• HDFC Standard ULIP Returns are over 70% in last 1 year.

• HDFC Youngstar with Maximum Insurance Cover of Rs.3.6 Lacks

MILESTONES IN THE HISTORY

• HDFC is India’s leading housing finance institution and has helped build more than 23, 00,000
houses since its incorporation in 1977.
• In Financial Year 2003-04 its assets under management crossed Rs.36, 000Cr.
• As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands
at around 1 million depositors.
• Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
• Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment
to community development.
• Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the third Annual
Outlook Money Awards
 13

• HDFC Standard Life Insurance is the first private life insurance company to be granted a license by
IRDA
• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal
finance magazine
• Rated by ‘Business world’ as ‘India’s Most Respected Private Life Insurance Company’ in 2004.
• Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005)

Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns

FINANCIAL POSITION OF HDFC SLIC IN FY

2007-08
HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results
for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs.
2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the
success of the company's initiative on structured sales processes based on customer needs and their
assessments.

Highlights of Financial Year 2007-08

New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs
4,859 crores as against Rs. 2,856 crores in FY2006-07
1. Alternate Channels including banc assurance has recorded an impressive growth of over 63% to contribute
41% to the Effective Premium Income (EPI).
2. Group business funds under management have increased to Rs. 959 crores, registering a growth of83%
over FY2006-07
3. The average premium has increased to Rs. 33,000.
Company products and services are now available in 726 cities and towns across the country. Strength of
Financial Consultants has increased to 1,45,000
 14

Objectives of the study

Recruitment and selection of Financial Consultants in an insurance company is a very useful process related

to its business in the market. If company is going to recruit and select right person time to time than it will not

only to get right business & potential customers but also help in reducing wastage & maximum use of

resources. I have done this research keeping in mind following objectives:

1. To recruit more and more Financial Consultants for HDFCSLIC.

2. To promote benefits to Financial Consultants in HDFCSLIC.

3. To study perfect market for recruitment of Financial Consultants.

4. To approach to the interested people towards HDFCSLIC to become Financial Consultants.

5. To understand deciding criteria of people to be Financial Consultants.

 15

6. To know that are people satisfied after recruitment in HDFCSLIC? If not then, what is the reason of their

dissatisfaction?

7. To collect and analysis the information of prospect candidates in order to make them appear in front of

management so that they can be selected as Financial consultant.

Achievements:
1. Recruited three financial consultants for the company.

2. Got the knowledge about, how to differentiate our product form that of LIC.

Research methodology

All the findings and conclusions obtained are based on the survey done in the working area within the

time limit. I tried to select the sample representative of the whole group during my job training. I have

collected data from Businessman, Working Professionals and House Wives etc in Ambala and Chandigarh.

PROBLEM DEFINITION:

To recruit and select persons for the job of financial consultants is quit difficult due to the reason people

do no work in insurance sector. If they agreed to work as financial consultant in insurance sector then they

choose government insurance company like LIC rather than private insurance company like HDFCSLIC.

RESEARCH PLAN:
 16

Preliminary Investigation: In which data on the situation surrounding the problems shall be

gathered to arrive at

• The correct definition of the problem.

• An understanding of its environment.

RESEARCH DESIGN:

Exploratory Research design: To determine the approximate area where the problem lies.

Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the

secondary data, the study aim is to explore the short comings of the present system and primary data will help

to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time limitation and

other constraints direct personal interview method is used. A structured questionnaire was framed as it is less

time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover

respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of

questions has been used.

COLLECTION OF DATA:
 17

1: Secondary Data: It was collected from internal sources. The secondary data was collected on the

basis of organizational file, official records, news papers, management books, preserved information in the

company’s database and website of the company.

2: Primary data: All the Professionals, Working people, Businessmen, Students, House wives, Post
office financial consultants, Tax Consultants, Insurance Financial consultants, Auto loan providers were

personally visited and interviewed. They were the main source of Primary data. The method of collection of

primary data was direct personal interview through a structured questionnaire.

FIELD RESEARCH PROCESSS

The methodology adopted in the field to collect the data represented diagrammatically below:

Segmentation of People

Meeting with People

Filling up questionnaire
and Schedule
SAMPLING PLAN:
 18

Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to

know about its characteristics.

• Sampling Units: Students, Working class, Chartered Accountants, Tax Consultants,

Lawyers, Business Man, Professionals and House Wives Of Ambala And Chandigarh

• Sample Technique: Random Sampling.

• Research Instrument: Structured Questionnaire.

• Contact Method: Personal Interview & telecalling.

SAMPLE SIZE:

My sample size for this project was 80 respondents. Since it was not possible to cover the whole universe in

the available time period, it was necessary for me to take a sample size of 80 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection

will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be

collected.
 19

Introduction to the Topic

The topic is to be discussed is “Recruitment and Selection of Financial Consultants”. This topic can be

further described as follows:

Recruitment
“It is a process of finding and attracting capable applicants for employment.
The result is a pool of applicants from which new employees are selected.”

Recruitment is a activity that links the employers and job seekers. A few definitions of recruitment are:

• A process of finding & attracting capable applicants for employment. The process begins when

new recruits are sought and ends when their applications are submitted. The result is a pool of applications

from which new employees are selected.

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• Recruitment of candidates is a function preceding selection, which helps create a pool of

prospective employees for the organization so that the management can select right candidate for right job

from this pool. The main objective of recruitment process is to expedite the selection process.

• Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified

applicants for future human resource needs even though specific vacancies do not exist. Usually, the

recruitment process starts when a manager initiates an employee requisition for a specific vacancy or an

anticipated vacancy.

Recruitment needs: Recruitment needs are of mainly following three types:

• Planned: The need arises from changes in organization and retirement policy.

• Anticipated: Anticipated needs are those movements in personnel which an

organization can predict by studying trends in internal and external environment.

• Unexpected: Resignation, Deaths, Accident, Illness give rise to unexpected needs.

Purpose and importance of Recruitment:

• Attract and encourage more and more candidates to apply in organization.

• Create a talent pool of candidates that enable the selection of best candidates for organization.

• Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.

• Recruitment is a process which links employers with employees.

• Increase the pool of job candidates at minimum cost.

 21

• Help to increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.

• Help to reduce probability that job applicants once recruited and selected will leave the
organization only after a short period of time.

• Meet the organizations legal and social obligations regarding the composition of its
workforce.

• Begin identifying and preparing job applicants who will be appropriate candidates.

• Increase organization and individual effectiveness of various recruiting techniques and sources
of all types of job applicants.

Factors
Affecting
Recruitment

Supply and Demand

Labour Market Recruitment Policy
Image/Goodwill Human Resource
Political-Social-Legal Planning
Environment Size of the firm
Unemployment Rate Cost of Recruitment
Competitors Growth and expansion

Desired Profile:
• Age: 18 yrs to 65 yrs
• Education: Intermediate or more
 22

• Experience: Not mandatory

• Type of job: Full time or part time

HDFC Standard Life Insurance Corporation has mentioned a quality score out of which if a person having at
least three points then he/she is found most suitable for recruitment. Quality score discussed by HDFCSLI is
discussed below:

Quality Score
• Age should be more than 25
• Graduate
• Married
• Stay in same city for last 3 years
• Income p.a should be greater than 3, 00000.

Documents Required:
• 8 Photographs
• Age Proof {Passport, birth certificate, mark sheet of 10th or 12th standard, driving license}
• Address Proof {driving license, voter ID, Ration card, Passport, Phone bill not older than 3
months, Parent’s electricity bill}
• PAN Card
• Education Proof
• Duly signed cancelled cheque.
• A candidate needs to bring a DD of Rs.925/- in case of offline training and Rs 825/- in case
of online training towards HDFC SLI LTD payable at Mumbai.
 23

Recruitment Process:
The Recruitment Process compromises following five interrelated stages:

• Planning
• Strategy & Development
• Searching
• Screening
• Evaluation & Control

Selection
“It is a process of differentiating between applicants in order to identify (and
hire) those with a greater likelihood of success in a job.”

Selection Process:

• Should complete IRDA training

• Should clear the IRDA exam
• Should through successfully training and exam.

Selection is a long process, commencing from the preliminary interview of the applicants and ending with the
contract of employment. In practice, the process differs among organizations and between two different jobs
within same organization. Selection procedure for senior managers will be long-drawn and rigorous, but it is
short and simple while hiring shop floor workers.
 24

Recruitment and Selection Process of FC:

Fill up of Agency form

IRDA Training (100 hrs)

IRDA Exam

Fail Pass

Exit Product Training

Traditional Pr. ULIP Product

Internal Assessment

Fail Pass
 25

Exit Certification

Financial Consultant

A Financial Consultant (FC) can be described in following ways:

 According to HDFC SLI: “A Financial Consultant is people who not only provide an
insurance product to a customer but also give right advice to take an insurance product according to his/her
financial need.”

 According to IRDA: “A Financial consultant is called an “Insurance Financial consultant” in

Insurance Act. According to Insurance Act Section 42 “ An Insurance Financial consultant as one who is
licensed under Section 42 of Insurance Act and is paid by way of commission or otherwise, in considering of
his soliciting or procuring insurance business, including relating to continuance, renewal or revival of
policies of insurance. He is an authorized salesman for insurance and needs a license.”

FC’s Regulations:

 The Insurance Act requires that an FC must have a license. The authority to implement the
provisions of Insurance Act, including matters relating to the issue of licenses to FCs, is the IRDA, constituted
by IRDA Act of 1999. The IRDA had issued the IRDA (Licensing of Insurance Financial consultants)
Regulations 2000, dealing with the issue of licenses and other matters related to Financial consultants. The
Regulations are reproduced in full at the end of the course and from part of the study material. The various
forms, which are part of Regulations, have been omitted. They can be obtained from the insurer’s offices as
and when required.
 26

 By another notification in October 2002, the IRDA (Licensing Corporate Financial consultants)
Regulations, 2002 were issued. These Regulations deals with the issue of licenses and other matters relating
to the corporate Financial consultants, like companies, firms , banks, cooperative societies, etc.,. Who are not
individuals and can also become financial consultants. As per the guidelines issued by the ITDA on
14.07.2005, a corporate Financial consultant should normally be a company whose principal business should
be something other than distribution of insurance products, the latter being a subsidiary activity. Exceptions
to the above requirement may be considered by insurers, if (i) the corporate Financial consultant is a public
Limited Company with a share capital of Rs 15 lakhs, to be kept in the form of a deposits with a bank, to be
used with the approval of the insurer (ii) it is set up exclusively for this purpose and is owned by the insurance
professional and (iii) agency business is transacted only by full time employees.

 Insurance products should be canvassed with the help of insurance professionals and not through
other modes like introducers, finders or sub-Financial consultants. Ordinarily, one license would be granted
to one group, provided that the group does not have any other insurance activity, such as broker, insurer, etc,
Exceptions may be considered by the IRDA. At least one of the person designated to canvass, must have
insurance qualification.

 If corporate financial consultants terminate its arrangement with one insurer, it must have the
written approval of the IRDA, before it can represent another insurer. Corporate Financial consultants are
required to submit periodical returns to the insurer and also file its audited accounts, along with other
specified statements, with the IRDA.

 Every corporate financial consultant is required to designate one or more individuals who would be
called ‘corporate insurance executive’ and would solicit insurance business on their behalf. Such corporate
insurance executives have to obtain license for themselves. Others, who may also work for the corporate
financial consultant, will be called “specific persons’ and they will be required to obtain certificates. The
essential provisions of these regulations are reproduced at the end of this course and form part of the study
materials.
 27

Agency as a Profession:

 The insurance financial consultant is bound by the terms of the appointment of the insurer and is
expected to produce business of the insurer. It is not a job that he has done at fixed hours, in prescribed ways
and under close supervision. Once licensed and appointed, he is an independent professional. He is the
master of his time. He is not prevented from pursuing any other interest or vocation. Many Financial
consultants see the agency as a means to supplement their earnings... They may spend only part of the time
on insurance, being busy on other work the rest of the time. Some Financial consultants however, try to study
and understand the business in great details and to improve their skills. They try to become the best in the
profession. They would be recognized as the expert in the field. There are many financial consultants, who
started as part time and then became whole time financial consultants, leaving their other secure jobs.

 To most persons, the life insurance is just one of the many avenues for financial outlays. When an
Financial consultant approaches a prospect with the proposal for life insurance, the chances are that the
prospect will not know much about the benefits under various plans. He may be vaguely familiar with the
alternatives available, but is unlikely to be sure of the details of all of them. He would need expert advice. If
he sees the life insurance financial consultants as one who is keen to divert his money to life insurance to the
exclusion of other alternatives, then that financial consultant’s intentions and expertise would be suspect. On
the contrary, if he sees the financial consultant as one who knows about other alternatives and who is willing
to take note of the needs of the prospect, then that financial consultant would have a better chance of
persuading the prospect one way or the other. In other words, a life insurance financial consultant, while
dealing with the prospect, should be thinking of his interests and requirements and the best financial
arrangements that would be appropriate in his situation.

 The life insurance financial consultant has to think about the interest of the prospect which may be
met by the schemes other than life insurance. To be able to advise the prospect on the best financial
 28

arrangements appropriate to his situation, the financial consultant needs to be familiar with the alternatives
available in the markets. He is also expected to know in full the benefits and limitations of the various plan
being offered by his insurer. A good financial consultant is a good financial planner, taking into account not
merely the plans offered by the insurers- his own as well as by the competitions- but by the innumerable
schemes on offer in the market from other financial institutions. This needs study on one’s own. It also needs
conviction that life insurance policies do not meet all the needs of all the people. Other instruments have their
own advantages. The advantages may be in terms of text benefits, ease of withdrawal, safety, appreciation,
yield or return. No instrument will be better on all accounts. Therefore, making comparisons and saying one
s better than the other may often be inappropriate.

 As a Financial consultant of the insurer, the life insurance financial consultant is expected to obtain
life Insurance business and contribute to the revenues of the insurer. He is also depended upon to bring in
business that would be profitable, to reports attempts to commit any fraud, to report on relevant features that
affect the risk of the subject of insurance. He is in touch with the person to be insured. Having met him at his
place of work or residence and observed his life style and habits, he would be aware of the nature and
characteristics of the risk, beyond what is contained in the proposal form. He is therefore, called the primary
underwriter.
 As a Financial consultant of the prospect, he is expected to look after the interests of the prospect.
Even people, who are generally experts in financial m matters like Chartered Accountants, may not be aware
of the implications.

 Of the insurance, in relation to terms and conditions, warranties, exclusions, tax provisions, rights
of parties, etc. Financial consultants have the dual responsibilities of being true to the interest on both the
parties in the transaction. He is obliged to reveal to the prospect all the important terms and conditions of the
policy, even if they are restrictive and unpleasant. He is also obliged to report the insurer all the true facts
about the prospect and the subject of the insurance. He should not mislead either.

FUNCTIONS OF A FINANCIAL CONSULTANT:

 29

 The Financial consultant’s main function is to solicit and procure life insurance business for the insurer,
which has appointed him for that purpose. At the same time, he is trusted by the prospect to advise him
suitably, keeping his circumstances and needs in mind. He is thus, in the unique role of a person trusted by
both parties to the transaction. His functions would require him to

• Understand the prospect’s needs and persuade him to buy a plan of life insurance that suits his interests
best.

• Complete the formalities (paper work, medical examination) necessary to get the policy expeditiously.

• Keep in touch to ensure that changing circumstances are reflected in the arrangements relating to premium
payments, nomination and other necessary alterations.

• Facilitate quick settlement of claims.

• Be totally honest with both the prospect and the insurer.

 The Regulations framed by the IRDA lays down a code of conduct which incorporate some of these
concepts. The code says interlaid that the Financial consultant shall

• Identify himself and the insurance company of which he is an Financial consultant

• Disclose the license to the prospect on demand

• Explain all available options to the prospect

• Recommend a suitable plan taking into account the needs of the prospect

• Disclose the scales of commission, if asked for by the prospect

• Explain the nature and importance of the information required in the proposal form

• Impress upon the prospect the need to disclose all information

• Make all enquiries about the prospect

• Inform the insurer about any material facts, including habits, that could adversely affect the underwriting
decision
 30

• Convey to the prospect about the acceptance or rejection of the proposal

• Render necessary assistance to policyholders or claimants or beneficiaries in complying with requirements

asked for by the insurer

• Advise policyholders to effect nomination

• Make every attempt to ensure remittance of premiums by the policyholders within the stipulated time, by
giving notice orally and in writing

• Not to induce prospects to submit wrong information

• Not to interfere with the proposals introduced by other insurance Financial consultants

• Not demand or receive from beneficiary, share of proceeds under an insurance contract

• Not cause the termination of an existing policy with a view to effect a new proposal

RESPONSIBILITIES OF A FINANCIAL CONSULTANT:

 A Financial consultant, individual or corporate, is the main component of the
distribution channel for the life insurance business. He would be required to solicit and procure new life
insurance business, in a manner that is consistent with the interests of the policyholders and of the insurance
company. For this purpose, he would have to do the following.

• Contact prospects for life insurance, study their needs and persuade them to buy.

• Complete all related formalities, including filling up proposal forms, collecting

premium, arranging medical examination, collecting proofs (of age or income), reports and other information
required by the underwriter.

 After having sold a new insurance policy, the Financial consultant has to ensure that the
policy continues, without a lapse, till it becomes a claim. The conservation of the policy is in the interests of
all the three persons concerned, the insurer, the policyholder and the Financial consultant. For this purpose,
he has to

• Keep in touch with the policyholder to make sure that renewal premiums are paid in
time.

• Ensure that nominations are made or changed according to changing circumstances

 31

• Assist in settlement of the claim, by helping the claimants to complete the necessary
formalities and requirements.

 In order that he may perform all these tasks well, the Financial consultant has to be
familiar with

• The benefits under the various plans of insurance offered by his insurer.

• The office procedures for various matters including the forms and documents. The main
documents have been listed out in an earlier chapter. The forms and procedures will vary between one insurer
and another.

METHODS OF REMUNERATING FINANCIAL

CONSULTANTS:
 A life insurance financial consultant works on commission basis. He is paid a percentage
of the premium collected through his agency. Section 40A(1) of the Insurance Act stipulates that the
maximum amount which can be paid to a life insurance Financial consultant, by way of commission or
remuneration in any form, shall be 35% of the first year’s premium, 7½% of the second and third year’s
renewal premium and 5% of subsequent renewal premium.

 There are some exceptions to this. During the first ten years of the insurer’s business, he
may pay 40% instead of 35% of first year’s premium. Under certain circumstances, commission of 6% can be
paid on the renewal premium even beyond the third year. Within these limits, the manner of remunerating the
financial consultant will be determined by the insurer. Normally, under term assurance plans, commission
rates are less. Similarly, for shorter duration policies, commission rates are lesser than under longer duration
plans. Under single premium plans and pension / annuity plans, rate of commission is very small.

 New Financial consultants may be paid a stipend to be adjusted against the commission
to be earned, as and when the business begins to come in brokers are paid on a totally different basis.

 The insurance Act provides, in section 44, for payment of commission on renewal
premium even after termination of the agency. The commission will be limited to a rate not exceeding 4%.
To be eligible for this, the financial consultant should have been an Financial consultant with that insurer for
at least (i) five years and policies for at least Rs. 50,000 are in force one year before termination of agency or
(ii) 10 years. This commission will be payable to the heirs of the Financial consultant after the Financial
consultant’s death. This is a unique facility which few other professions enjoy.

Job Description for Financial

consultants(HDFCSLI):
 32

Pre sales role:

• Identifying prospective clients.
• Meeting prospective clients.
• Understanding the need of the client.
• Presenting solutions to client.
• Closing sales.

Post sales role

• Taking 1-2 references from the client
• Providing timely updates to the client for maintaining Lifelong relationship.

BENEFITS OF BEING A FINANCIAL CONSULTANT ARE AS

FOLLOWS:

• Financial consultant, the right way to start career:

As a financial consultant the role will be to identify prospective customer. You will makes presentation, as to
how you can help analyses their financial needs, provide customize financial solution to cater to their
respective needs and conduct reviews on regular basis to keep customers on thank.

• Easy way to start on career: Zero investment: There is no start-up capital. Be

an own boss with a flexible working environment, unlimited earning potential and the opportunity to be part
of world class sales team.

• Flexible work timings, part time or full time: FCs can work whenever he
likes and from whereeve4r he like, FCs can work full time depending on their convenience its like no other
job however, the time.

• Sunrise industry: Life insurance in India has a huge potential for growth Statistics
reveal that only 25% of the insurable population in India is insured and those insured are in need of still
 33

higher insurance cover. The over 100% growth displayed by private life insurers indicates this hu7ge
untapped potential.

• Strong Partnership:
A powerful brand – HDFC Standard Life Insurance:
We were the first private life insurance company to be granted a license by IRDA.
We have been rated by business world magazine. As Indies most respected private life insurance company
2004.
We have grown over 130% in the last and more than 8 Lakhs policy holder. HDFC standard life insurance has
one of the highest brand recalls of around 80%

PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:

At HDFC standard training is an inherent element of our support system for FCs. Some of our training and
support initiative are as:

• IRDA Training: Online training of 100 hrs. Prepares for career as FCs and enables
to pass the IRDA examination. After the IRDA license, first step towards a successful career as a FC.

• Basic Training and Induction: Independence of work experience, this training

will give perfect knowledge about the insurance industry along with comprehensive knowledge about the
insurance along with comprehensive knowledge abut HDFC SLIC Product.

• Advance Training: Once Fc have settled down as a FC professional we will

continuously upgrade capability and knowledge through sophisticated training program, fit for this dynamic
world of financial products and markets.

UNMATCHED SUPPORT:
Marketing activity support to make task easier
 34

 Advertising and communication support throughout the year.

 Customer friendly broachers and sales aid to help in selling insurance solutions to
customers.
24- Hours information support, to help track the performance and income

Recruitment and Selection of

Financial Consultant

“A process finding and attracting capable applicants and selecting most

suitable applicants who can work as Financial Consultants.”

Procedure
The procedure of recruitment and selection of Financial Consultant (FC) is as following:

1. The Insurance Act, 1938 lays down that an FC must possess a license under section 42 of
that Act. The license is to be issued by the IRDA. The IRDA has authorized designated persons, in each
insurance company, to issue the licenses on behalf of IRDA. The fee for the license, the manner of making an
application etc., have been specified in The Regulations issued by IRDA.

2. In term of Insurance Act , a license will not be given if the person is

(a) Minor

(b) Found to be unsound mind

 35

(C) found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an
abetment of or attempt to commit any such offence

(D) found guilty of or knowingly participating in or conniving at any fraud, dishonesty or misrepresentation
against an insurer or an insured

(e) Not possessing the Requisite Qualifications and Specified Training

(f) Yet to pass such examination as are specified by regulations

(g) Found violating the Code of Conduct as specified in regulations.

3. The fee for a license is Rs.250 for individual as well as corporate FC. A license is granted
for 3 years. It may be renewed after 3 years. The fee for certification of the specified person is Rs. 500. This is
also valid for 3 years.

4. A license issued by the IRDA may be to act as an FC for a life insurer(company), for a
general insurer or as a composite insurance FC working for a life insurer

5. The qualification necessary before a license can be given are that the person (individual or
corporate insurance executive) must

• Not be a minor

• Have passed at least the 12th standard or equivalent examination, if he is to be

appointed in a place with a population of 5000 or more or 10th standard otherwise.

• Have undergone practical training for at least 100 hrs in life or general insurance
business, as the case may be, from an institution, approved and notified by IRDA. In the case of a person
 36

wanting to become a composite FC, the application should have completed at least 150 hours practical
training in life and general insurance business, which may be spread over six to eight weeks.

• Have passed the pre-recruitment examination conducted by the Insurance Institute

of India or any other examination body authorized by IRDA.

Some important terms including the

highlighted terms above can be explained
by IRDA Regulations as follows:

IRDA Regulations, 2000

F. No. IRDA/Reg./7/2000. –
In exercise of the powers conferred by sub-section (6) of section 42 and clauses (k), (1),
(m), (n), (o) and (p) of sub-section (2) of section 114A of the Insurance Act, 1938 (4 of 1938), the Authority,
in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely:-

Short title and commencement:

(1) These regulations may be called Insurance Regulatory and Development Authority (Licensing of Insurance
Financial consultants) Regulations, 2000.
 37

(2) They shall come into force on the date of their publication in the Official Gazette.

Definitions:
In these regulations, unless the context otherwise requires,

(a) Act” means the Insurance Act, 1938 (4 of 1938);

(b) “Approved Institution” means an Institution engaged in education and/or training particularly in the area
of insurance sales, service and marketing, approved and notified by the Authority;

(c) “Authority” means the Insurance Regulatory and Development Authority established under the
provisions of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(d) “Composite insurance Financial consultant” means an insurance Financial consultant who holds a
license to act as an insurance Financial consultant for a life insurer and a general insurer;

(e) “Corporate Financial consultant” means a person other than an individual as specified in clause (i);

(f) “Designated person” means an officer normally in charge of marketing operations, as specified by an
insurer, and authorized by the Authority to issue or renew licenses under these regulations;

(g) “Examination Body” means an Institution, which conducts pre-recruitment tests for insurance Financial
consultants and which is duly recognized by the Authority;

(h) “License” means a certificate of license to act as an insurance Financial consultant issued under these
regulations;
 38

(i) “Person” means -------

• an individual;
• a firm; or
• a company formed under the Companies Act, 1956 (1 of 1956), and includes a banking
company as defined in clause (4A) of section 2 of the Act;

(j) “Practical Training” includes orientation, particularly in the area of insurance sales, service and
marketing, through training modules as approved by the Authority;

(k) |”Proposal Form” means an application for purchase of an insurance product which shall be the basis of
insurance contract;
(l) “Prospect” means a potential purchaser of an insurance product;

(m) “Recognized Board or Institution” means such board or institution as may be recognized by any State
Government or the Central Government.

All words and expressions used herein and not defined but defined in the Insurance Act, 1938 (4 of 1938), or
in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall have the meanings
respectively assigned to them in those Acts.

Issue or renewal of license:

(1) A person desiring to obtain or renew a license (hereinafter referred to as “the applicant”) to act as an
insurance Financial consultant or a composite insurance Financial consultant shall proceed as follows:-

(a) The applicant shall make an application to a designated person --------

(i) in Form IRDA-Financial consultants-VA, if the applicant is an individual;

(ii) in Form IRDA-Financial consultants-VC, if the applicant is a firm or a company;
 39

Provided that the applicant, who desires to be a composite insurance Financial consultant, shall make
two separate applications

(b) The fees payable by the applicant to the Authority shall be as specified in Regulation?

(2) The designated person may, on receipt of the application along with the evidence of payment of fees to
the Authority, and on being satisfied that the applicant, ---------
(i) possesses the qualifications as specified under Regulation 5;
(ii) has passed the examination as specified under Regulation 6;
(iii) has furnished the application complete in all respects;
(iv) has the requisite knowledge to solicit and procure insurance business; and
(v) is capable of providing the necessary service to the policyholders;

Grant or renew, as the case may be, a license in Form IRDA-Financial consultants-VB, along with identity
card in Form IRDA-Financial consultants-VZ;

Provided that in the case of a corporate financial consultant, the identity card shall be in form IRDA-Financial
consultant-VY

Provided further that such identity card from one life insurer and such identity card from one general insurer
shall provided to the applicant seeking license to act as a composite insurance financial consultant

Provided further that in the case of a firm or a company, all of its partners or directors, as the case may be,
shall fulfill the requirements of sub-clauses (i) to (iii)
Provided further a license issued in accordance with this regulation shall entitle the applicant to act as
insurance financial consultant or one life insurer or one general insurer or both, as the case may be.

(3) If the designated person refuses to grant or renew a license under this regulation, he shall give the
reasons therefore to the applicant.
 40

(4) The designated person shall grant or renew he license within a period of 3 months from the date of
application

(5) The designated person shall, if the consideration of the application is likely to get delayed, within 60
days of the receipt of the application, inform the applicant the reasons or such a delay, and the likely time it
would take to do so.

Qualifications of the applicant:

The applicant shall possess the minimum qualification of a pass in 12 th standard or equivalent examination
conducted by any recognized Board/ Institution, where the applicant resides in a place with a population of
five thousand or more as per the last census, and a pass in 10th standard or equivalent resides in any other
place.

Practical Training:

(1) The applicant shall have completed from an approved institution, at least, one hundred hours’ practical
training in life or general insurance business, as the case may be, which may be spread over three to four
weeks, where such applicant is seeking license for the first time to act as insurance Financial consultant.
Provided that the applicant shall have completed form and approved institution, at least,
one hundred fifty hours’ practical training in life and general insurance business, which may be spread over
six or eight weeks, where such applicant is seeking license for the first time to act as a composite insurance
financial consultant.

(2) Where the applicant, referred to under sub-regulation (1) is --------

(a) An Associate/ Fellow of the Insurance Institute of India, Mumbai;

(b) An Associate/ Fellow of the Institute of Chartered Accountants of India, New Delhi
 41

(c)An Associate/ Fellow of the Institute of Costs and Works Accountants of India, Calcutta;

(d) An Associate/ Fellow of the Institute of Company Secretaries of India, New Delhi;

(e)An Associate/ Fellow of the Actuarial Society of India, Mumbai;

(f)A Master of Business Administration of any Institution/ University recognized by any State Government or
the Central Government; or
Possessing any professional qualification in marketing from any Institution/ University recognized by any
State Government or the Central Government.----
(g)He shall have completed at least, fifty hours’ practical training from an approved institution.

Provided that such applicant shall have completed from an approved institution, at least, seventy hours’
practical training in life and general insurance business, where such applicant is seeking license for the first
time to act as a composite insurance Financial consultant.

(3) An applicant, who has been granted a license after the commencement of these regulations, before
seeking renewal of license to act as an insurance Financial consultant, shall have completed at least twenty-
five hours’ practical training in life or general insurance business, as the case may be, from an approved
institution.

Provided that such applicant before seeking renewal of license to act as a composite insurance Financial
consultant shall have completed from an approved institution, at least, fifty hours’ practical training in life and
general insurance business.

Examination:
The Applicant shall have passed the pre-recruitment examination in life or general insurance business or both,
as the case may be, conducted by the Insurance Institute of India, Mumbai, or any other examination body.
 42

Fees payable:
(1) The fees payable to the Authority for issue or renewal of license to act as insurance Financial consultant
or a composite insurance Financial consultant shall be rupees two hundred and fifty.

(2) The additional fees payable to the Authority, under the circumstances mentioned in sub-section

(3) Of section 42 of the Act, shall be rupees one hundred.

Code of conduct:

1) Every person holding a license shall adhere to the code of conduct specified below:-

(i) Every insurance Financial consultant shall --------

(a) identity himself and the insurance company of whom he is an insurance Financial consultant;
(b) disclose his license to the prospect on demand;
(c) disseminate the requisite information in respect of insurance products offered for sale by his insurer and
take into account the needs of the prospect while recommending a specific insurance plan;
(d) disclose the scales of commission in respect of the insurance product offered for sale, if asked by the
prospect;
(e) indicate the premium to be charged by the insurer for the insurance product offered for sale;
(f) explain to the prospect the nature of information required in the proposal form by the insurer , and also
the importance of disclosure of material information in the purchase of an insurance contract;
(g) bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form
of a report (called “Insurance Financial consultant’s Confidential Report”) along with every proposal
submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the
insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect;
(h) inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;
(i) obtain the requisite documents at the time of filing the proposal form with the insurer, and other
documents subsequently asked for by the insurer for completion of the proposal;
 43

(j) render necessary assistance to the policyholders or claimants or beneficiaries in complying with the
requirements for settlement of claims by the insurer;
(k) advise every individual policyholder to effect nomination or assignment or change of address or exercise
of options, as the case may be, and offer necessary assistance in this behalf, wherever necessary;

(ii) No insurance Financial consultant shall, ------

(a) Solicit or procure insurance business without holding a valid license;

(b) Induce the prospect to omit any material information in the proposal form;
(c) Induce the prospect to submit wrong information in the proposal form or documents submitted to the
insurer for acceptance of the proposal;
(d) Behave in a discourteous manner with the prospect;
(e) Interfere with any proposal introduced by any other insurance Financial consultant;
(f) Offer different rates, advantages, terms and conditions other than those offered by his insurer;
(g) Demand or receive a share of proceeds from the beneficiary under an insurance contract;
(h) Force a policyholder to terminate the existing policy and to effect a new proposal from him within three
years from the date of such termination;
(i) Have, in case of a corporate Financial consultant, a portfolio of insurance business under which the
premium is in excess of fifty percent of total premium procured, in any year, from one person (who is not an
individual) or one organization or one group of organizations;
(j) Apply for fresh license to act as an insurance financial consultant, if his license was earlier cancelled by
the designated person, and a period of five years has not elapsed from the date of such cancellation.
(k) Become or remain a director of any insurance company.
(l) Every insurance financial consultant shall, with a view to conserve the insurance business already
procured through him, make every attempt to ensure remittance of the premiums by the policyholders within
the stipulated time, by giving notice to the policyholder orally and in writing.

Cancellation of license:
 44

The designated person may cancel a license of an insurance financial consultant, if the insurance financial
consultant suffers, at any time during the currency of the license, from any of the disqualifications mentioned
in sub-section (4) of section 42 of the Act, and recover from him the license and the identity card issued
earlier.

Issue of duplicate license:

The Authority may issue a duplicate license replace a license lost, destroyed, or mutilated on payment a fee of
rupees fifty.

Non-application to existing insurance financial

Consultant:
Nothing contained in Regulations 4 to 6 of these Regulations shall apply to the existing financial consultants
before the commencement of these Regulations.

Repeal and Savings:

From the date of coming into force of the Insurance Regulatory and Development Authority (Licensing of
Corporate Financial consultants) Regulations 2002, the Insurance Regulatory and Development Authority
(Licensing of Insurance Financial consultants) Regulations 2000 or any part thereof applying to corporate
Financial consultants shall cease o have any effect, except as respects things done or omitted to be done there
under.
 45

DATA analysis, Presentation

and
Interpretation
1. What is you perception about insurance?

Analysis

Hard lucrative 22
Hard but not rewarding 8
Smooth and rewarding 30
No idea 20

Presentation
 46

Prception about insurance

Hard lucrative

Hard but not

rewarding
Smooth and
rewarding
No idea

Interpretation

Out of 80 respondents most of people found insurance sector hard. Only 30 found it smooth and
rewarding.

Name any insurance company you know.

Analysis

LIC 28
ICICI 22
HDFCSLIC 20
Bjaj Alliyanz 2
Other 8

Presentation
 47

Comparison with competitors

LIC
ICICI
HDFCLIC
Bjaj Alliyanz
other

Interpretation

Most of people out of 80 say LIC i.e. when they were asked to name any insurance company. Only 20
respondents name HDFCSLIC, insurance company they know. There were 50 respondents who give name
of insurance companies other than HDFCSLIC.

1. Do you know about HDFCSLIC?

Analysis

Yes 45
No 5

Presentation
 48

Awareness of HDFCSLIC among

people

Yes
NO

Interpretation

Out if above 50 respondents who give name of insurance company other than HDFCSLIC, 45 know about
HDFCSLIC.

2. Are you a license holder as Financial Consultant?

Analysis
Yes 15
No 65

Presentation
 49

License Holders

Yes
NO

Interpretation

Out of 80 respondents 15 persons are license holders while 65 do not have license of financial consultant.

3. Under which insurance company you work?

Analysis

HDFCSLIC 7
OTHER 8
 50

Presentation

C o m p a n y O f L IC E N S E H O L D E R S

Y es
No

Interpretation

Out of 15 license holders Maximum i.e. 7 are from HDFCSLIC and 8 are from other insurance
companies.

4. Are you satisfied with your job there?

Analysis

Yes 3
No 5

Presentation
 51

Satisfaction in other insurance

company

Yes
No

Interpretation

Out of above 8 license holders from other insurance companies most of the respondents i.e. 5 are not
satisfied by their job.

5. Do you want to know benefits and better recruitment policies related to FCs of HDFCSLIC over other
companies?

Analysis

Yes 4
No 1

Presentation
 52

Interested to know benefits in

HDFCSLIC

Yes
No

Interpretation

Out of those 5 license holders who are not satisfied with their job, maximum i.e. 4 respondents want to
know about benefits to FCs in HDFCSLIC.

6. Are you satisfied with your current occupation?

Analysis

Yes 30
No 50

Presentation
 53

Satisfaction regarding current

occupation

Yes
No

Interpretation

Out of total 80 respondents maximum are not satisfied their current occupation. 50 respondents are not
satisfied while 30 are satisfied.

7. What is the cause of dissatisfaction?

Analysis

Low employment 11
Low earnings 21
Low status 6
Huge capital investment` 9
Other 3
 54

Presentation

Cause of dissatisfaction

Low
employement
Low earnings

Low status

Huge capital
investment
Other

Interpretation

Out of above 50 respondents most of people are unsatisfied because of low earnings. 21 respondents say
that due to low earnings they are unsatisfied with their current job. Another big reason that come up for
dissatisfaction is low employment mentioned by 11 respondents. 9 respondents say huge capital
investment and 6 say low status is the reason for their dissatisfaction.

8. Do you want to earn additional income?

Analysis

Yes 62
No 18

Presentation
 55

Eager to earn additional income

Yes
No

Interpretation

Out of 80 respondents most of the persons i.e. 62 want to earn additional income.

9. Would you like to know about a career in life insurance advisor-ship which is part time, less time
consuming, in future’s booming industry (insurance), where you will be your own boss and you can fulfill
every desire of your life?

Analysis

Yes 70
No 10

Presentation
 56

Want to know about exciting career

in insurance

Yes
No

Interpretation

Out of 80 respondents most of the people i.e. 70 were interested to know about exciting career in
HDFCSLIC while 10 were not interested in insurance sector.

10. Do you know working of financial consultant of HDFCSLIC?

Analysis

Yes 28
No 52

Presentation
 57

Knowledge about working of FC

Yes
No

Interpretation

Out of 80 respondents most of the people i.e. 52 don’t know about working of financial consultant.
While 28 respondents know about working of financial consultant.

11. Are you interested to become FC of HDFCSLIC?

Analysis

Yes 17 21.25%
No 63 78.75%

Presentation
 58

Willingness to become FC

80

60

40

20
1
0
Yes 2
No

Interpretation

Number of people out of total 80 respondents who want to become financial consultant is very less. There
were only 17 persons who were willing to become financial consultant while 63 do not want to become
financial consultant for HDFCSLIC.

12. Occupation of the persons who are interested to become FC of HDFCSLIC.

Analysis

Professionals 2
Working employees 2
Businessmen 2
Students 4
House wives 3
Investment consultants 1
Post office Financial 1
consultants
Others 2
 59

Presentation

Professional
Occupation
Working class

Businessmen

Students

House wives

Investment
consultants
Postoffice
agents
Others

Interpretation

Out of 17 people who want to become financial consultant maximum were students i.e. 4. Most of
house wives and working class seems more interested to be FC than professionals, businessman etc.

13. How is working environment in the organization?

Analysis

Average 4
Good 2
Poor 1

Presentation
 60

Working conditions

Average
Good
Poor

Interpretation

Out of 7 license holders who are working as financial consultants for HDFCSLIC 4 found working
environment of organization average while 2 found it good and 1 says that it was poor.

14. What type of workload this job is having?

Analysis
Heavy 5
Normal 2

Presentation
 61

Workload on Job

Heavy
Normal

Interpretation

Out of 7 license holders who are working as financial consultants for HDFCSLIC 5 feel heavy workload in
the company while 2 found it normal.

15. Are you satisfied with your job in HDFCSLIC?

Analysis

Yes 4 57.12%
No 3 42.86%

Presentation
 62

Satisfaction regarding job in

HDFCSLIC

60

40

20
1
0
Yes 2
No

Interpretation

Out of 7 license holders who are working as financial consultants for HDFCSLIC maximum i.e. 4 are satisfied
with their job in HDFCSLIC while 3 are not satisfied.

WHY HDFCSLIC IS BETTER?

1. Investment returns: investment returns and business growth provided by HDFC is validated by
bajaj Capital report. HDFC pacify the need of invertors up to healthy level and make the strong relationship
with them.

2. Financial Background and Experience: HDFC existing in the market since 1977. It has
a very handsome experience in the field of finance because it completely involved in finance Sector only
where as the others are running in many other field also like Reliance (Petroleum, Textile, Telecom etc.)
 63

3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false selling
and prohibits the false commitment to the customer.

4. Sales Force: Properly trend licensed and Educated People are the strength of the company. So that
they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility : It makes the process faster and make the customer delighted.

QUALITY POLICY:

• 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.

 64

• INTEGRITY
• CUSTOMER CENTRIC
• PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”
• TEAM WORK
• JOY AND SIMPLICITY

EXCELLENT OPPORTUNITY

•Join HDFC Standard Life Insurance as a Financial Consultant and earn a

rewarding career
•Flexible work timings – You can work whenever you like. You can work full-time or part-time,

depending on your convenience. However, the time you invest will determine your success

Any one can join -

• Young graduates, Housewives, Retired Personnel, Self-employed or Working
Professionals.

Zero Investment -
• There is no start-up capital required. Be your own boss with flexible working
environment, unlimited earning potential and opportunities to be part of a world class sales team.

Attractive remuneration –
• company offers excellent commissions, awards and rewards for the
performers. If you have unlimited earning potential and good convincing power then insurance sector is best
field for you to work. Commission structure is pretty handsome and is 15-40% and renewal commission is 5%
second year onwards till the policy is in force.

• Certificate by IRDA- You will get world class training free of cost and
certification by Insurance Regulatory Development Authority.
• You will get 100% self-decided income.
• Be your own boss.
 65

Findings
 Some people are interested to become financial consultant of HDFCSLIC.
 Most of the people want to know about benefits as financial consultant of HDFCSLIC.
 Students, Working class and House wives is the perfect market for recruitment of financial consultant.
 The deciding criteria of people to be financial consultant is that, this job is part time, less time
consuming and provides additional income.
 Most of the people are satisfied while working with HDFCSLIC.
 Most of people think that it is hard to survive and earn in insurance sector is hard.
 LIC has created a brand image in 3-4 decades, due to which new insurance companies are facing trouble
in capturing market share.
 People are less aware about private insurance companies in the market other than HDFCSLIC and
ICICI.
 Among private insurance companies awareness about HDFCSLIC very good.
 66

LIMITATION
• Candidate doesn’t want to join as financial consultant because it is on commission basis and they want
job on salary basis.

• People don’t want to join HDFCSLIC because:

 Associated with another company
 Don’t have time
 Private player
 Lack of awareness

• HDFCSLIC is too selective in making a financial consultant rather than to appoint any one like LIC.

• Time was less for research because 50 days are not enough to survey even at least one town.
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• Money was needed to continue the research which is not provided by the company.

• There was lack of knowledge and guidance from experts.

SUGGESTIONS

 Company should open more branches in different cities.

 Company should organize the program in the society, so that people will be aware about the company

 By showing additional and alternative income source along with various schemes for Financial

Consultant in the company so that more and more FC can be recruited.

 Customers should be made aware of the brand name of Insurance Company through advertisement.

 The fear of insurance sector in the customer mind should be removed by company.

 The insurance companies should try to nurture their brand name timely and attractive facility provide

to customer.
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CONCLUSION

HDFC Standard Life, the insurance arm of HDFC is expected to go on stream. Promoted by HDFC &

Standard Life, already has good number of employees on board and is recruiting Financial Consultants

heavily to take the headcount to many more. It is on the brim of increasing its client through its attractive

schemes and offer.

The project opportunities provided was market segmentation and identifying prospective clients in potential

geographical location and for recruiting them as financial consultant so to explore new Business

Opportunity. Through this project, it could be concluded that people are not much aware about the various

benefit of being Financial Consultant that are currently prevailing in the insurance industry.
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This activity much attract unemployed people as for them a source of income is a great help for developing

there future. Company’s promotional activities for recruiting Financial Consultant are also very less.

Private Players in order to encase maximum number of customers are introducing new and

innovative scheme for their FC. Customers are more brand oriented rather than product oriented.

So, at last the conclusion is that there is tough competition ahead for the company from its major

competitors in terms of number of Financial Consultants.

Learning FROM THE STUDY:

• The process of recruitment of HDFC STANDARD LIFE INSURANCE LTD.

• How is the training given?
• What are the criteria of selection?
• The culture of insurance company particularly of HDFC.
• What are the problems faced by these financial consultants on daily basis?
• How to convince and convert the prospect client into real client?
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QUESTIONAIRE
Dear Sir/Madam,

I am a student of Shri Atmanad Jain Institute of Management and Technology (AIMT), Ambala City
and presently doing a market survey “RECRUITMENT AND SELECTION OF FINANCIAL
CONSULTANTS FOR HDFCSLIC”. I request you to kindly fill the questionnaire below and I assure you that
the data generated shall be kept confidential.

Name……………………………………………………………………………..

Address…………………………………………………………………………..

Contact no: R…………………..O………………..M………………………….

City……………………PIN……………………….State………………………

Age…………………..Sex: (M)….. (F)….. Marital Status…………………….

Educational Qualification: ……………………………………………………..

Annual house hold income………………………………………………………

1. What is your perception about insurance? that insurance is a:

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Hard lucrative
Hard but not rewarding
Smooth & rewarding
No Idea
2. Name any insurance company you know.
LIC ICICI HDFCSLIC Bjaj Allianze Other

If other than HDFCSLIC

3. Do you know about HDFCSLIC?

Yes No
4. Are you a license holder as a financial consultant?
Yes No

If Yes

5. Under which insurance company you work?

HDFCSLIC Other

If Other

6. Are you satisfied with your job there?

Yes No

If No

7. Do you want to know benefits and better recruitment policies related to FCs of HDFCSLIC over other
companies?
Yes No

8. Are you satisfied with your current occupation?

Yes No

If no

9. What is the cause of dissatisfaction?

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Low employment Low earnings Low status huge capital investment

Other

If No to Q.4 & Q.8

10. Do you want to earn additional income?

Yes No

If Yes

11. Would you like to know about a career in life insurance advisor-ship where you can fulfill every desire
of your life?
Yes No

12. Do you know working of financial consultant of HDFCSLIC?

Yes No

13. Are you interested to become FC of HDFCSLIC?

Yes No

14. Occupation of the persons who are interested to become FC of HDFCSLIC.

Professionals

Working employees

Businessmen

House wives

Students

Investment consultants

Post office Financial consultants

Others

If HDFCSLIC to Q.5
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15. How is working environment in the organization?

Average Good Poor

16. What type of workload this job is having?

Heavy Normal

17. Are you satisfied with your job in HDFCSLIC?

Yes No

18. Give the reasons for your dissatisfaction in the

organization……………………………………………………………………………………………………

BIBLIOGRAPHY

Following are the sources which help me in making my project during training:

• Books:
1. IC-33 For IRDA Examination
2. Research Methodology C.R Kothari
3. Human Resource Management K. Ashwathapa

• Websites:

 www.hdfcinsurance.com
 www.irda.com
 www.wikipedia.com
 www.mbaguys.com
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ON
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Submitted To
Kurukshetra University, Kurukshetra
In partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION
(M.B.A)
(Session 2008-2010)

Submitted By:
VINITA SHARMA
Roll no. 1360
M.B.A (Final)

Shri Atmanand Jain Institute Of Management

And Technology ( A.I.M.T ), Ambala City
Affiliated to Kurukshetra University,Kurukshetra

INDEX

Sr no. Contents Page no.

1. Reason for selecting the Topic
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2. Industry Profile
3. Company Profile
4. Objectives of the Study
5. Research Methodology
6. Introduction to the Topic
7. Data Analysis, Presentation and
Interpretation
8. Why HDFCSLIC is better
9. Findings
10. Limitations
11. Suggestions
12. Conclusions
13. Learning from Study
14. Questionnaire
15. Bibliography