Professional Documents
Culture Documents
Preface............................................................................................................2 Acknowledgement.........................................................................................3 INDEX............................................................................................4 1. Executive Summery....... 6 2. Introduction.....7 2.1. Introduction to Insurance..................7 2.2. Brief History of Insurance........8 2.3. Purpose & need for Insurance...........................................................9 2.4. Types of Insurance .........................10 3. The Insurance Regulation & Development Authority..11 4. Company Profile.......17 4.1. Vision and Value of company....18 4.2. The HDFC Group...19 4.3. Group Companies of HDFC...........................................................21 4.4. Branch Profile of HDFC SL Vaishali Nagar......29 4.5. Products: At a Glance.. ......30 4.6. Market Analysis of Company.43 5. Swot Analysis.......45 6. Organisation Hierarchy Chart...................................................................46 6.1 Distribution Channel............48
7. HDFC SLS Key Strength..49 8. Research and Methodology of training...50 8.1 Objective of Research . 50 8.2 Methodology...51 8.3 Tools and Techniques used52 8.4. Data Analysis and interpretation53 8.5. Limitation of the Study..56 10. Conclusion............57 11. Recommendation.58 12. Questionnaire59 13. Bibliography........61
EXECUTIVE SUMMERY
The main objective of this project is to study Comparative Analysis of Unit Linked Products of HDFC SL with other ULIP products of various companies available in the market, and it was found that HDFC SL not only gives highest returns to its customers but providing value added services by giving risk cover to them. Beside this administrative structure of Company was also analyzed in the report to understand the functioning of the same at various levels. To create a picture regarding all these aspects analysis of Annual Report and fact sheet of HDFC SL were used mainly. 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 higher insurance cover. The cover 100% growth displayed by private life insurers indicates this huge untapped potential. Companies try to bring new products with special features. ULIP is the most innovative product of insurance which provide better returns with insurance coverage. HDFC SL is one of the leading players in this category. HDFC SLs Unit Linked Plans, which are aimed at providing the Financial Planning and Investments services to the Individuals, are one of the best products in their category. These products give best returns to the customers. HDFC SL is on the top in aspect of giving returns. HDFC SLs last two year returns were 47.4% which is very higher to its nearest competitor Tata AIG which having a return of 42.2%. Last but not least HDFC SL has wider horizons for engaging the BBA students in a better and hopeful profession.
INTRODUCTION
What is Insurance?
Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. All of us are interested in the creation of assets because: All assets have values. They yield income to the owner. They meet some other needs of the owner. They may provide satisfaction of some needs and also yield income to the owner. Every asset has normally an expected lifetime. During this period, it is expected to perform and provide income/comfort to the owner. The owner, being aware of this, plans the things in such a way that by the time the expected lifetime of the asset expires, he is ready with the funds required for its replacement. In this way, he ensures that the value or income from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes its expected lifetime! All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset gets actually lost or destroyed by accident or some other unfortunate event before the completion of its expected lifetime. The owner and those deriving benefits from the asset will suffer because the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating such adverse consequences. To sum up, assets are insured, as they are likely to be lost or made non-functional through an accidental occurrence. Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the perils. It only compensates, may not be fully, the economic or financial loss resulting to the asset from such damage or destruction.
The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses included:Loss of ship by sinking due to bad weather in high seas. Goods in transit by ship robbed by sea pirates. Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583.
MARINE INSURANCE FIRE INSURANCE MISCELLANEOUS INSURANCE VEHICLES Types of Insurance FURNITURE BUILDING AIRCRAFTS GENERAL INTANGIBLES
ONLY HUMAN LIFE INSURANCE INCLUDES IN THIS CATEGORY HUMAN BEINGS SICKNESS, ILLNESS AND OTHER ASSURANCE GIVEN IN THIS CATEGORY 6 LONG TERM CONCEPT
Basically there are two types of Insurances: Non-Life Insurance Life Insurance
INSURANCE
NON-LIFE INSURANCE
LIFE INSURANCE
iii. iv.
2. CODE OF CONDUCT;
Every person who is appointed as Financial Consultant by the company and who holds a licence Section 42 of the Act, shall adhere to the model code of conduct as specified below:-
c) Advertisements that consist only of simple and correct statements describing the availability of lines of insurance, references of experience, service and
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qualifications; but making no reference to specific policies, benefits, costs or the company.
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In the event of death of an Agent, the commission payable to him under the provisions of clause (b) and (c) of section 44(1) of the Act, shall continue to be payable to his legal heirs, in any payable to his legal heirs, in any, for so long as the commission would have been paid to the Agent if he were alive.
9. CHARGES:
Every agent shall at the time of applying for Agency, pay a sum of Rs.800/- to the Company towards licensing and examination fees and franking charges. the said rates are subject to revision in accordance with the applicable rules and regulations.
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Our Vision The most successful and admired Life Insurance Company, which means that we are most trusted company, the easiest to deal with, offers the best value for money, and set the standards in the industry. In short, The most obvious choice for all. Values Integrity Innovation Customer Centric People Care Team Work Joy & Simplicity
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HDFC was incorporated in 1977 with two primary objectives - to enhance housing stock in the country through housing finance systematically and professionally and promote home ownership. Today they are the largest residential mortgage finance institution in India, with a net worth of Rs. 2,703 crores as of March 31, 2002 and an asset base of over Rs. 22,000 crores. HDFC also aim to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Over a span of 25 years, HDFC has become the pioneer in housing finance in India and made it possible for over two million families to own their homes, through housing loans worth over Rs. 42,000 crores. At HDFC, they have turned the concept of housing finance for the growing middle class in India into a profitable, professionally managed, world class enterprise. HDFC have also copromoted financial intermediaries in various fields such as banking, realty services, asset management, securities trading, life Insurance as well as general Insurance, call centers and BPO services. HDFC has demonstrated the viability of market oriented housing finance in a developing country. The World Bank considers us a model private sector housing finance company in developing countries and a provider of technical assistance for new and existing institutions, in India and abroad. Their re-engineering has always centered around the customer in retail markets on both sides of the balance sheet, i.e. loans are given to individuals and deposits are accepted from individuals. A positive personalized approach towards our customers' needs has been HDFCs goad and motto. HDFC is also the largest mobiliser of retail deposits in the private sector outside the banking circle. Their deposits have been awarded the highest safety credit rating 'FAAA' & MAAA by CRISIL and ICRA respectively for eight consecutive years. Today, their deposit base is over 10,000 crores - a depositor base of over 13 lacs and a network of over 50,000 deposit agents. A wide geographical spread of activities in India, through their branch network of over 130 offices, over 80 outreach locations and the HDFC BANK branch network enables us to offer loans and deposit services to individuals in over 2,400 towns and cities across the country. They also have an international office in Dubai, U.A.E. and service associates in Kuwait, Oman, Qatar, Saudi Arabia and Bahrain to service Non-resident Indians. While being a household name in India and the undisputed market leader in the fields of housing finance, their social responsibilities have remained in focus. HDFC continue to
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make consistent efforts towards economic and social upliftment of the marginalised sections of society by offering customized financial assistance. This is done through strong associations and partnerships with several NGOs, voluntary agencies and other development institutions ensuring effective implementation of projects and improved sustainability at community levels.
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The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
Awards
Best Listed Bank of India by Businessworld. Best Domestic Bank by The Asset Magazines Triple A Country Award. Best Local Cash Management Bank2006 in Large and Medium segmentsAsiamoney Awards Best Bank in India in 2006Euromoney Awards
HDFC Asset Management Company Ltd. (AMC) was incorporated under the Companies Act, 1956; on December 10, 1999 and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated June 30, 2000.
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HDFC Asset Management Company Ltd. (AMC) is one of the most growing Mutual Fund Company of India.
Awards
HDFC mutual fund was recently awarded the CNBC Moddys investor service award for the best performing fund house for the one year category. Zurich also received the best performing fund house award for the three year category.
Home Loan Services India Private Limited is a wholly owned subsidiary of HDFC Ltd. The company has been floated as a distribution arm of HDFC with an objective of offering doorstep service to prospective clients of HDFC group. HLSIL offers financial management solutions to individuals encompassing among other products Home Loans, Life Insurance, Mutual Funds, Fixed Deposits and property solutions. Home Loans: HLSIL is present in over 100 locations across the country with 39 offices and over 1600 employees. Financial Management: HLSIL offers financial management solutions in 9 cities and is continuously expanding its reach. HLSIL employs sales persons across all spectrums of financial management enabling them to meet a range of financial needs. HLSIL values integrity, commitment, teamwork and excellence in customer service. Our most valuable assets are our Human Resources. HDFC are truly proud that today we have a highly motivated team of sales persons and that they have the lowest employee turnover rate in the Industry.
HDFC Chubb
Its partnership that leverages the strengths of two financial powerhousescombining the trust and local experience of HDFC, Indias premier financial services company, with the 120 years proven expertise of CHUBB, a global leader in non-life insurance backed by a network of 134 offices in 31 countries. 19
With more than $30billion in assets, The Chubb Corporation is one of the worlds largest, financially strongest, non-life insurance companies. Founded in New York in 1882, Chubb today provides property and casualty insurance through more than 10,000 employees in 32 countries of North America, South America and Asia. Chubb also works closely with 5000 independent agents and brokers worldwide.
Motor Insurance
We understand and care for your vehicle beyond just the policy issue and speedy claims. HDFC Chubb's Motor Insurance product mainly focuses on Motor Package Policy for private cars & two wheelers.
Home Insurance
With Home Insurance, we will offer you cover for your home and belongings against fire and burglary. Our Home Insurance will bring you the convenience of purchase from HDFC's home loan counters.
Intelenet
Intelenet is a leading BPO service provider with the focus on providing solutions to global Organizations seeking to reduce the cost while consistently maintaining superior
level of standards two leading global investorsHDFC and Barclays--provide the financial banking Intelenet needs to lead in a global marketplace. Barclays is a venerable financial
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services group headquartered in the United Kingdom, ranking amongst the services group headquartered in the United Kingdom, ranking among the Top 10 banks in the world based on market capitalization. Intelenet impacts your business by seeking to reduce costs while consistently maintaining superior levels of service. Our solutions extend across all strata of BPO, technology and consulting.
HDFC Deposits
DEPOSITS HDFC has instituted well-defined service standards for both depositors and deposit agents. HDFC has been able to mobilize deposits from over 10 lac depositors.
Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs. 8,741 crores in March 2006. Much of this success can be attributed to its strong brand image, superior
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services, security and above all, the significant contribution made by HDFCs deposit agents. HDFC has over 50,000 deposit agents and distributes all its retail savings (deposit) products primarily through this channel.
Awards
HDFC has been awarded AAA rating and MAAA rating for its deposits from both CRISIL and ICRA for the twelfth consecutive year, representing highest safety as regards timely payment of principal and interest.
Realty Limited HDFC Realty Ltd. is a new, organized electronic marketplace for properties, to provide the entire gamut of real estate services, bringing together the click world and the bricks world in a revolutionary and user-friendly way. It makes available the best guidance and the most professional, transparent, efficient service to the real estate customer. HDFCrealty.com brings together Indias most exhaustive database of properties. It acts as a one-stop online hub for information, comparative analysis, transactions, market reach and comprehensive professional services.
SECURITIES
HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors, a capability to transact in the Stock Exchanges & other financial market transactions.
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HDFCsec provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools.
HDFC Standard Life Insurance Company Ltd. is one of India's leading private 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 a Group Company of the Standard Life, UK, and leading providers of financial services in the United Kingdom. HDFC as on March 31, 2007 holds 81.9 per cent of equity and Standard Life was holding 18.1 in the joint venture.
Highlights
First life insurance Company in the private sector to get license from the regulator IRDA. First life insurance Company to come out with Term Assurance Plan. First private life insurance Company to declare bonuses consecutively for 6 years from inception. First life insurance Company to introduce open option to the pension plan policyholders. First life insurance Company to introduce Automatic Allocation Option to all the policyholders under Unit Linked Plans. Only life insurance Company to give 24 free switching option to Unit Linked Policyholders. HDFC is one of the fastest growing Private Life Insurers and today have more than 8 lakh policyholders. HDFC have one of the widest networks with more than 160 branches and servicing over 440 towns.
HDFC Standard Life Insurance Company has one of the highest brand recalls of around 86%. (Source: AC Neilson ORG MARG, September 2005). A high brand recall translates to higher chances of customers buying insurance from them.
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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. The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries.
Market leader in the Housing Finance Sector Over 2 million satisfied customers Over 1,00,000 Crores in Loan Approvals Ranked as Indias 3rd Best Managed Company by Finance Asia2005
Serving customers for over 180 years Currently administers 125 billion in assets Voted 5 Star Life & Pensions provider for last 10 years
250 Branches 11,00,000 Customers Multiple Products - Protection - Unit Linked - With Profit More than 8 lakh policyholders Servicing over 440 towns in India
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With time and patience the leaf of the mulberry becomes satin.
HDFC Standard Life Insurance Companys branch at Vaishali Nagar, Jaipur was started in 14 December 2006. It was started with the aim to provide best of Insurance services with the core values of Integrity and Customer Centric Behavior. There is another branch at CScheme, Jaipur, which is the head branch in this region. Another branch of the company is going to open shortly at Tonk Road. HDFCSLIC Ltd. Vaishali Nagar, Jaipur has excelled in all its services. It offers almost all products of the Company. Some of them are saving plans, pension plans, various investment plans etc. It has a well-planned organization structure. This branch is integrated by 4 branches, Jaipur-III, Jaipur-IV, Jaipur-V and Jaipur-IX. All the branches headed by Territory Manager Mr. Sumeet Chugh and Branch Managers Mr. Siddarth Singh (Jaipur-III), Mr. Rajesh Gupta (Jaipur-IV), Mr.Utkarsh Upadyaya (Jaipur-V), Mr. Chardra Shekhar Paliwal (Jaipur-IX), and other staff members working in various departments and dealing in each of the products. Under each Branch Manager there are around 8-12 Sales Development Managers (SDM), who takes the responsibility of promoting and selling of HDFCSLICs products.
PRODUCTS: AT A GLANCE
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The Endowment Assurance Plan can be positioned as along term savings vehicle with a cover on the savings. The plan is suited to help in building a fund for long term financial needs. The guarantees in the nature of sum assured and the bonuses assure the client of a smoothened long-term return. The philosophy and practices of the company can help in building the maturity values for the client and hence positioning the company is also important in the sale of the Endowment Assurance Plan.
payment of the full sum assured together with the bonuses irrespective of the survival benefits paid on death of the life assured during the term. All the arguments on the need to save and savings being a better option than raising a loan are applicable while selling the money back plan.
Childrens Plan
Plan designed for the benefit of children Introduction
The Childrens Plan is a with-profits savings contract designed for the benefit of the child. The plan therefore has a provision for a beneficiary, which can be the child, and all benefits under the plan would be paid to the child. The funds generated under the plan are invested as per the IRDA guidelines. The net returns would depend on our investment and cost experience during the term of the contract.
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Most parents feel that it is their responsibility to provide the best for their children. In addition to the physical and emotional wants children also need to be provided for financially. There are two types of financial needs of the child: I. Short term financial needs for food, clothing shelter and education. This need is mostly met from the income of the parent II. Long term financial need for higher education, marriage and start in life. The alternatives for this are either to save or raise loans. In the event of an early death of the parent the child become dependent of one of the close relative. To ensure that the child would be taken care even after such an eventuality the parent can look at providing an income as well as lump sum amounts for the benefit of the child. The Childrens Plan is designed to help the parent in planning for the above financial needs of the child. All the arguments on the need to save and savings being a better option than raising a loan are applicable while selling the Childrens Plan.
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The maturity benefit and the double benefit could be so positioned as to pay money for higher education or marriage of the child. This benefit would be payable irrespective of whether the parent is living or dead.
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The Term Assurance Plan with the ASA rider modifies the cover to pay the sum assured on death or critical illness whichever is earlier. This cover can be very beneficial when the liabilities are covered by the plan, as the liabilities would be repaid on critical illness. We can position Term Assurance Plan to as to cover the future so that in case of death before they complete the savings the family would be provided with a lump sum amount to meet the future expenditure.
Important
Although the plan is named as Loan Cover Term Assurance Plan the plan is basically a decreasing cover term assurance. The plan is not linked to a loan and the client can choose to purchase this plan even in case he does not have a loan. The sum assured would decrease at a predetermined rate and is not linked to the decrease in the loan amount. Care has been taken to ensure that the sum assured would be sufficient to pay most of the loans. The plan does not guarantee payment of the outstanding loan.
The Loan Cover Term Assurance Plan can be positioned as protection to cover outstanding loans. The Loan Cover Term Assurance Plan with the ASA rider modifies the cover to pay the sum assured on death or critical illness whichever is earlier. This would mean that in case the client contracts a critical illness the plan would pay an amount sufficient to cover the outstanding loan.
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reinvestment risks. Long-term investments designed to provide real growth is a solution to the long-term needs. The Single Premium Whole of Life Insurance Plan is designed to remove this problem of the investors by giving insurance in the form of guarantees on death and at specific time intervals so that the returns at these guaranteed periods do not depend on the market conditions. These guarantees in long-term investment are very valuable and since the product is a whole of life one, the client can continue with the investment till death.
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There are various instruments of savings and investment, which the client can use to provide for his retirement. A deferred pension plan has the following advantages: I. The deferred pension plan can be issued for long terms so that the single instrument covers the retirement need of the client. II. The deferred pension plan automatically vests in the life assured on the date of vesting. This is an advantage as the likelihood that the fund would be used for some other purposes is minimized and fund would be used only for retirement. III. Special tax benefits are available for investment in deferred pension plans.
ULIP, AN INSURANCE PRODUCT WITH A TWO-IN-ONE FEATURE, IS DESIGNED TO CARRY BENEFITS OF BOTH, AN INSURANCE COVER AS WELL AS MARKET RELATED INVESTMENT RETURNS...
Known as ULIP, is Blend of an insurance and investment product. It combines a life cover with an investment plan, but unlike a traditional plan money back or endowment plan, investment returns are not guaranteed in the case of ULIPs.
ULIP, by its nature, is not a product that is meant to maximize returns like equity investments either directly or through mutual funds.
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Unit Linked Young Star Plus and Unit Linked Young Star
Invest in your childs dreams and secure your self-respect
As a parent, your priority is your children's future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are rising fast. Just imagine how much you will need when your children take these important steps in life. Plan today to ensure a bright future for your children. Start saving today with our HDFC Unit Linked Young Star Plus so that your child is able to lead a life of respect and dignity with a secured financial future. The HDFC Unit Linked Young Star Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular Loyalty Units to boost your fund value every year Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity
You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds. In case of your unfortunate demise during the policy term, we will: Pay the Sum Assured you had chosen to your child. Continue your policy and continue to pay the original regular premiums you had chosen.
This means we will continue to make your savings on your behalf, in your absence. The fund will be available for your family's use until the original Maturity Date. Use HDFC
Standard Life's excellent investment options to maximize your savings & maximize your child's achievements. We will provide financial security for your child. All Unit Linked Life insurance plans are different from traditional insurance plans and are subject to different risk factors. HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Young Star Plus is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns. Easy Steps to Your Own Plan Step 1: Choose the premium you wish to invest This is the premium you will continue to pay each year of the policy. The min. regular premium is Rs. 10,000. You can pay monthly (using Standing Instructions or ECS Mandate), quarterly, half-yearly or annually. Step 2: Choose the amount of protection (Sum Assured) you desire You can choose any amount of Sum Assured with: A minimum of 5 times your chosen annual regular premium A maximum of 40 times your chosen annual regular premium.
Step 3: Choose the additional plan benefits you desire We offer a range of valuable protection option to secure the future for your family. You can choose any one of the following benefit options: Life OptionDeath Benefit Life & Health OptionDeath Benefit + Critical illness Benefit
Step 4: Choose the investment fund or funds you desire We have 6 funds for you. You can choose fund in which you want to invest.
15%
30%
30% 25%
Others
The study has shown that people of Jaipur are much interested in investing in Mutual Funds and Shares than Insurance. This is because of people are interested in short-term investment. But it is assumed by the studies that in upcoming years this rate of investment in insurance will increase rapidly. Among 17 insurance Companies including LIC, the HDFC Standard Life Company has placed its position on pinnacle. Each Company has the Unit Linked Product in its portfolio. But HDFCs Unit Linked Products are customer centric and having special features. HDFCs services are highly appreciable among insurance companies apart from its brand name.
HDFC Standard Life Insurance Company is leading the market in the Returns giving to its customers. All its competitors are behind in the aspect of Returns. Here in this given chart, it is shown that how HDFC Standard Life Insurance Company is ahead from other life insurance companies.
50 40 30 20 10 0 HDFC SL Bajaj Allianz Tata AIG Reliance ICICI Pru Life Kotak Life Aviva Life 1-YEAR 2-YEAR
HDFC SL provides ULIP to its customer with special benefits with minimum charges. The Policy Administration Charge and Fund Management Charge is Rs. 20/- and 0.80% respectively, which are minimum in their category. Beside this HDFC SL provide 24 switches free in a policy year, very ahead than 4 free switches of ICICI Prudential, Kotak Life and 3 free switches of Bajaj Allianz Life Insurance. HDFC SL offers the Smart Transfer Option (STO) to its customer. This is the facility to those customers, who are unknown about the investment market and want share this responsibility to HDFC SLs fund mangers. Another advantage that HDFC SL has over the other Insurance Companies is the atmosphere at the bank which makes the customers feel comfortable. The ambience of the Company is designed according to the need of the clients. Comparing HDFC SL with other Companies, we feel that the directions, brochures, etc are displayed in an appropriate manner which helps the customer to avail the services required by them.
SWOT ANALYSIS
STRENGTH
Country Wide Recognition Need Base Analysis Same Standard Services in all Branches Fair Deal in all Transactions Customers Centric Approach Infrastructure
WEEKNESS
Frequent Job Rotation Less number of advertisements Hidden Charges
OPPORTUNITY
Scope in Jaipur as it is in the developing phase Only 25% of insurable people have any insurance Higher possibility of growth in Indian share Market
THREAT
LICs Brand Name People of Jaipur prefer short-term investment rather than in insurance Upcoming private insurance companies.
Organisation chart (Hierarchy) Managing Director & Chief Executive Officer (MD & CEO)
Territory Manager(TM)
DISTRIBUTION CHANNEL
Distribution Channel
According to W.J. Stantion A Channel of distribution for a product is the route taken by the title to the goods as they move from the producet to the ultimate consumer or industrial user. Different types of distribution channels used by HDFC SLI CO. Direct Channel of Distribution :- in which bank opened branches in defferent areas of jaipur region to reach direct to the customers. Indirect channel of distribution :- in this channel of distribution bank uses middlemen to reach to the customers. These middlemen are Commission Agents, M.R.E. , and S.E. etc. Branches in India: o Andhra predesh : Abids, Balangar, Birnavarm, Bidar, Eluru, Guntu, jublee Hills, Kakinada, Karimnagar, Kurnool, Nizambad Rajahmundary, Saroor Nagar, Secunderabad, Vijaywada, Vishakapatnam. o Assam : Agartala, Dibrugrah, Guwahati, jorhat, Nagaon, Sibsagar, Silchar, Tezpur, Tinsukia. Bihar : Patna. Chattisgrah: Bhilai, Bilaspur. Delhi : New Delhi, Shahadra. Goa: Panji. o Gujrat: Ahamdabad, Anand, Bharuch, Bharuch, Bhavnagar, Jamnagar, Kutch-Bhuj, Mehsana, Navsari, Rajkot, Surat, Vadodara, Valsad. o Hariyana: Ambala, Faridabad, Gurgaon, Hissar, Karnal, Panipat, Rohtak, Sirsa, Yamuna Nagar, Himachal Pradesh: Shimla. J&k :
o o o o
o o
HDFC SLs KEY STRENGTHS Winners dont do different things. They do things differently
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.
Range of Solutions
HDFC Standard Life has a range of individual and group solutions, which can be easily customized to specific needs. Their group solutions have been designed to offer customers complete flexibility combined with a low charging structure.
Awards
Over a decade of its operations, HDFC Standard Life Insurance Company Ltd. has been recognized, rated and awarded by a number of organizations, which include: Winner of the Out Look Money Award for two consecutive years. Voted as the Most Respected Life Insurance Company by Business World in 2004.
Research is the manipulation of things concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in constructon of theory or in the practice of art.
Specific objectives
Find out the people who are interested in insurance sector and want to be a Financial Consultant. Find out the total number of HDFC STANDARD LIFE INSURANCE CO. counter in jaipur. Find out the reason of preference of the consumer to select HDFC STANDARD LIFE. Find out particular criteria for making consumes. Find out the competitors of HDFC SLI Company such as ICICI,MAX,AVIVA,BAJAJ ALLINZE.
SAMPLE DESIGN
Sample design is a way for achieving a sample from a given population. it provides help the researcher would adopt in selecting items for the sample. Sample design is determined before data are collected. The proposed research is a Survey, as it covered some part of the city, under which various classes (Occupation , Income& Savings) of the people were discussed. One area of the city has been covered. Sample Size:- 175 people
METHODOLOGY
First Stage:
In this introductory stage secondary data was collected from HDFC SLI Co. then we were calling those people who are interested in insurance. Primary data was collected from our relatives and friends. Second Stage: To meet with those people who are interested in insurance sector. it signified the study by providing problems they are facing and introduce with companies plans which are provided by HDFC SLI Company, Jaipur. Third Stage : At this stage we made those finance Consultant who given insurance polices for the HDFC SLI Company.
Secondary Data:- Secondary data was collected from HDFC SLI Co. Research Approach: Survey approach was opted to do this research. SAMPLING PLAN: (A) Population Definition Element : All customers in particular area Sample unit: One customer Extent : Jaipur city (B) Sampling Methods Simple Random Sampling
C.
Yes No
80%
Not aware
When I asked to people do you know about the field of insurance? Then 80% said that Yes & 15% said that No 5% said that Not aware the term insurace Qus.2 Are you interested in doing a business with your existing job/business to earn a handsome amount? A. Yes B. No
30% 70%
Yes No
When I asked to people are you interested in doing a business with your existing job/business to earn a handsome amount? Then 70% said that Yes & 30% said that No. Qus.3 How many companies do you know in insurance business? All -------Few ------None ------5% 25%
70%
When I asked to people how many companies do you know in insurance business? Then 25% said that All & 70% said that Few & 5% said that None. Qus.4 In which insurance company you want to join? A. S.B.I.
B. C. D.
When I asked to people in which insurance company you want to join? Then 10% said that S.B.I. & 50% said that HDFC & 30% said that ICICI & 10% said that other. Qus.5 What was the purpose for taking insurance policy? A. B. C. Life insurance Tax Benefit Investment
Life insurance Tax Benefit Investment
40% 55% 5%
When I asked to people what was the purpose for taking insurance policy? Then 40% said that Life insurance & 5% said that Tax Benefit & 55% said that Investment.
Qus.6 Which schemes do you like the most of Insurance Company? A. B. C. D. Money back Pension Plan Kids plan Others
10% 30% 10% 50% Money Back Pension Plan Kids Plan Others
When I asked to people which schemes do you like the most of Insurance Company? Then 10% said that Money Back & 50% said that Pension Plan & 30% said that Kids Plan & 10% said that Others. Qus.7 Customers belong to ICICI Bank are of which income level group? A. B. C. D. High income level group (HILG) Upper middle income level group (UMILG) Lower middle income level group (LMLIG) Lower income level group (LILG)
CUSTOMERS ON THE BASIS OF INCOME LEVEL HILG UMILG LMLIG LILG
When I search about the customers coming in HDFC SLIC belong to which category of income level then I found that 45% people are of high income level group, 30% people are of upper middle income level group, 20% people are of lower middle income level group, & 5% people are of lower income level group.
LIMITATIONS
As the movement throughout the city is not possible due to certain constraints so the movement was quite restricted. people are not ready to go for training. As the training period is of 18 days (100 hrs) and it involves full day, so it becomes difficult for them to leave their offices or shops for such a long time. The compulsion of selling 25 policies in six month also restricts them from becoming advisors. if they do fulfill this target, then their licence is cancelled after a year. Lack of trust on any company of private sector. Lack of knowledge about the products of HDFC Standard Life Insurance and their total and blind faith on lic. Sometimes, fresth graduates want to become advisors but the company denies making them an advisor, as they are very fickle-minded and also unreliable. Some people ask about comparative analysis with LIC and other insurance companies. Non-availabilit of part time training. All small towns are not open for doing this business. One person cannot tank Life insurance Agency of two different Companies. Time constraint is the biggest constraint in taking up the study.
CONCLUSION
In the times of economy slump, where all options of investment lacks the interest of people for one or other reason, FD still remains at the top of the mind of people as a known, convenient and reward earning option for investing their hard earned savings but there is not possibility of higher returns. However Mutual Funds are the first choice of small investors for short-term game but for long-term investment it is not appropriate. Recent global economy slow down has made negative influence on lay investor perception of security. With the arrival of investment in insurance, people who were investing in other options have turned their minds because of the higher returns and risk cover through out the life. No other option gives as higher returns as par as long-term investment is concern. HDFC SL is the leading insurance service providers to public and private sector clients and has kept pace with the revolutionary growth of the industry by evolving a range of services to meet the varied needs of funds groups. HDFC SL has also benefit from network and superior processing services. The depth and breadth of the integrated suite of products and capabilities, coupled with the investment and savings markets services fuels the ability to help to stay competitive and successful in financial markets.
RECOMMENDATIONS
1. HDFC SL can improve upon its efficiency by not changing its staff frequently. By doing this bank can continue to create, maintain and grow strong relationship with existing customers. Idea behind this is that staff which is already working for bank is well acquainted with the nature and wants of the existing customers. 2. Use of creative advertisements to attract more and more target customers and to create awareness among them. 3. HDFC SL should chalk out some programs to create general awareness regarding its presence and various services of the company. 4. Today is the era of competition. In order to increase the company network (In terms of clients and business volumes) an aggressive approach is required. The Bank should recruit more number of marketing personnel so that they can cover the whole of the city and nearest villages of Jaipur. Personal marketing can be one of the methods of modes of taking people into confidence. 5. HDFC SL should try to make its promotional activities more effectively. 6. It can use industrial magazine media as an advertising tool for approaching is market segment. 7. Try to reduce hidden charges so as to satisfy the customers more effectively. 8. It should regularly conduct market research and surveys for knowing customers better and for facing threat from competitors. 9. Supporting staff should be appointed.
QUESTIONNAIRE
PURPOSE: TO PROMOTE THE CONCEPT OF INSURANCE FROM HDFC STANDAR LIFE AS A BUSINESS OPPUETUNITY AND CREATING AWARENESS.
Q.1 Do you know about the field of insurance? o Yes o No o Not aware the term insurance Q2. What is the basic factor that you consider before picking up a business opportunity? o Monetary Benefit. o Recognition o Flexible timing and one s own boss o All of the above Q3. According to you what is Insurance? o Investment tool o Tax saving tool o Security o All of the above
Q4. Are you associated with HDFCSL Insurance co.? o Yes o No If yes, then how? ____________________ Q5. Do you know that HDFC is no. 1 Life insurance Company? o Yes o No Q6. Do you think that insurance is highly paid business? o Yes o No Q.7 Do you have your own vehicle? Yes ---------- No --------------
Q.8
What was the purpose for taking insurance policy? Life insurance -------------Tax Benefit -----------Investment ---------
Q.9
Are you interested for becoming an advisor of HDFC SLI Company? Yes ------------No ------------------
BIBLIOGRAPHY
Fact sheet of HDFC Standard Life Company Weekly Newspaper of RNIS (Ritu Nanda Insurance Services) Institute HDFC SL Intranet
Magazines
Business world Business today Business India
Newspaper
Economic times Times of India Dainik Bhasker Business Standard
Websites
www.hdfcinsurance.com www.google.com (Search Engine) www.yahoo.com (Search Engine) www.wikipedia.com www.hdfc.com www.rnis.biz