1 Dayananda Sagar Business Academy Mba 3Rd Sem

1.
INTRODUCTION
1.1 GENERAL INTRODUCTION ABOUT THE SECTOR:

India is the largest democracy in the world having a population of more than one
billion. It is 5th largest in the world in terms of purchasing power parity (PPP).
Indian GDP growth rate is over 6 percent per year on average for the last decade
and saving rate is around 26 percent of GDP.
Through India's economic development, it becomes the molucrative insurance

markets in the world. Before the year 1999 there were monopoly of state run Life
Insurance Corporation of India (LIC), in life insurance sector and General Insurance
Corporation of India (GIC), with its four subsidiaries in general sector. In the wake
of reform process and passing Insurance Regulatory Development Act (IRDA)
through Indian Parliament in 1999, Indian Insurance was opened for private
companies.
What is Life Insurance?
Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party
happening of a certain event.
Insurance is a protection against a financial loss arising on the happening of an
unexpected event. Insurance Companies collect premium to provide for this
protection. A loss is paid out of this premium collected from the insuring public. The
Insurance Company act as a trustee to the amount collected through premium.
Insurance is generally classified in three main categories,

1. Life Insurance,
2. Health Insurance and
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DAYANANDA SAGAR BUSINESS ACADEMY MBA 3rd SEM
3. General Insurance
To get insurance an individual or an organization can approach to an insurance
company directly, through Insurance Agent of the concerned company or through
Intermediaries.
Benefits of Insurance
Insurance is the instrument of Security, saving and peace of mind. It provides

several benefits by paying a small amount of premium to an insurance company.
Life Insurance has come a long way from the earlier days when it was originally
conceived as a risk-covering medium for short periods of time, covering temporary
risk situations, such as sea voyages. As life insurance became more established, it
was realized what a useful tool it was for a number of situations, including.
Temporary needs or threats: The original purpose of life insurance remains an

important element, namely providing for replacement of income on death etc.
Regular Savings: Providing for one's family and oneself, as a medium to long term
exercise (through a series of regular payment of premiums). This has become
more relevant in recent times as people seek financial independence for their
family.
Investment: Put simply, the building up of savings while safeguarding it from the
ravages of inflation. Unlike regular saving products, investment products are
traditionally lump sum investments, where the individual makes a one off payment.
Retirement: Provision for later years becomes increasingly necessary, especially

in a changing cultural and social environment. One can buy a suitable insurance
policy, which will provide periodical payments in one's old age.
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All these events are fortuitous in nature they are out of the control of the family and
more in the hands of the destiny. In order to reduce the aliments of risk existence of
insurance is must.
So the insurance ensures protection of economic value of assets or insured against

the risk of being destroyed or made non functional due to any accidental
occurrence.
Insurance is used with reference to financial protection against a possibility of

uncertainty such as fire accidental damages theft motor insurance household
insurance travel insurance health insurance. Life insurance is needed because of
human life is a income generating assets. This asset can be last through
unexpected death or made nonfunctional through sickness or disability caused by
an accident there is no certainty that the accident will happen one other hand there
is a certainty that death will happen but it's timing is uncertain.
Disadvantages of insurance:
• It can be affordable only to whom who have enough saving.

• As mortality risk is less, the insured will not always benefited.
• The insurance company will charge some amount as a mortality risk which
is a expenses to the insured. Terms and conditions are the major issues in the time
of settlement. So it is very important know all the above matters before dealing with
any insurance.
• The policy generally doesn’t offer cash value or paid –up insurance.
• Permeates insurance May be more costly then term insurance if you don’t
keep the policy long enough.
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1.2 INDUSTRY PROFILE
A) ORIGIN AND DEVLOPMENT OF INDUSTRY:

The insurance was originated from the Babylonian civilization through the Code of
Hammurabi dynasty in the year of 2100 B.C followed by Roman's and Greeks
traders.
The first insurance company was established in London. Lloyd's coffees house
insurance developed rapidly with the growth of international commerce.
B) GROWTH AND PRESENT STATUS OF THE INDUSTRY:
 1720-1735 formation of insurance companies in England

 1787 S.C fire Insurance Corporation in New York city
 1794 Philadelphian insurance company in Philadelphia
 1840 first life insurance in Philadelphia
 1897 workman's compensation act in Britain
After 19th century several general companies and life insurance companies were
formed with the several benefits, conditions, rules.
Growth of Insurance in India
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In India insurance was started in 19th century before the passing the act of 1938
more then 50 companies participates in the insurance activities after passing an act
1938. All the companies are merged into a single company called life insurance
Corporation of India in the year 1999 the Regulate the insurance sector in India
with the additional license to private sector companies with the deregulation of the
insurance sector taking place several companies have entered into the Indian
insurance.
C) FUTURE OF THE INDUSTRY
HDFC Standard Life is a joint venture company between mortgage lender HDFC
and the UK-based Standard Life Plc.The company, in FY 09 generated a total
premium income of Rs 5,564.69 crore as against Rs 4,858.56 crore in FY 08,
registering a year-on-year growth of 15 per cent.Its renewal premium also saw a
growth of 34 per cent at Rs 2,913.58 crore for the fiscal as compared to Rs
2,173.19 crore in the previous year.
The company's Effective Premium Income (EPI) in respect of retail business
increased by five per cent, growing from Rs 2,425-crore in 2007-08 to 2,552-crore
in 2008-09.HDFC Standard Life tracks its new business premium on the basis of
EPI which is calculated by giving only a 10 per cent value to a single premium
policy.Tripathy further said that the company would enhance its thrust on children
and its pension plan business in the year as "the segments will be major drivers for
growth".
HDFC Standard Life launched 11 new products in the last fiscal and would launch
a slew of products that would be a mix of traditional policies and ULIPs, he said.
The company, which is a new entrant in to the health insurance business with two
products, would be launching two more by end-this fiscal, he said.The company
which has been assurance as its alternate distribution channel, would look for other
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channels, Tripathy said.
"Currently, we sell policies through bancassurance channel. This year, we will be
selling it through telemarketing and online," Tripathy said.
Besides, the company would be strengthening its direct sales force channel and
tie-ups with brokers, he said.HDFC Standard Life, which increased its financial
consultant strength by 43 per cent during the last fiscal, would not increase it with
the same pace, he said."We increased the strength of our financial consultants by
43 per cent from 1.45 lakh in FY 08 to 2.7 lakh in FY 09 but this year we will look at
making our agents more productive and that will help us gain more business from
them," he said The company has 149 in-house training centers for its agents.
(2) PROFILE OF THE ORGANIZATION
2.1 ORIGIN OF THE ORGANIZATION

HDFC standard life insurance company was started on 14th august 2000 and
received a license 23rd October 2000. HDFC Standard Life Insurance Co. Ltd. is
a joint venture between Housing Development Finance Corporation Limited (HDFC
Limited) - India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance
companies, offering a range of individual and group insurance solutions, in India.
Being a joint venture of top financial services groups, HDFC Standard Life has
adequate financial expertise to manage long-term investments safely and
resourcefully.
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HDFC Standard Life Insurance offers a range of individual and group solutions,
which can be easily personalized to specific needs. Its group solutions have been
planned to offer complete flexibility, together with a low charging structure. As of 31
December, 2008, the Company's new business premium income stood at Rs.
1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a
comprehensive list of policies and products on offer by HDFC Standard Insurance:
HDFC Standard Life Insurance Co. Ltd
HDFC Standard Life Insurance Company Ltd. is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), India's leading housing
finance institution and Standard Life, UK.
HDFC Standard Life's product portfolio covers a wide range from individual to
group products, rural, and social products. The insurance plans can be easily
customized to specific needs. The website has all the details on all policies in
easily-downloaded pdf files to facilitate easy access.
Up until 31 March 2008, HDFC Life had covered close to 10 lakh lives.
2.2GROWTH AND DEVELOPMENT OF ORGANIZATION:

HDFC was incorporated in 1977 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 al share capital of Rs. 100
million.
2003
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• HDFC Bank unveils resident foreign currency account.
• HDFC Bank unveils co-branded credit card with e-Seva.

• The Board of Directors of HDFC Bank Ltd at their meeting held on
• January 15, 2003 approved the appointment of Mr. Arvind Pande as an
• Additional Director pursuant to section 260 of the Companies Act,
• 1956.
• EPFO JV with HDFC Bank for its pension distribution.
• HDFC enters into agreement with HDFC Bank to source housing loans.
• HDFC Bank, IRCTC in tie up for online railway booking.
• HDFC Bank inks pact with ANB for remittance service
• HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.
• Uma Krishnan resigns HDFC Bank as country head.
• Escotel ties up with HDFC Bank for Global Debit Card.
• HDFC Bank launches India's first mobile payment solution.
• HDFC Bank's debt programme of Rs 400-crore has received triple A

• (Ind) rating from CREDIT rating agency FITCH.
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• Mumbai - HDFC Bank in collaboration with Tally Solutions is
• Planning to launch electronic data interchange (EDI) system for small and
medium enterprises (SMEs).
• Warburg Pincus sells 2% stake in HDFC for Rs 235 cr
• HDFC Bank began selling home loans of its promoter Housing

• Development Finance Corporation (HDFC).
• Board approved to allot 4,16,400 equity shares to the employees of

• the Bank under the Employee Stock Option Scheme
2004
• Mr. Ranjan Kapur & Mr. Bobby Parikh appointed as Additional Directors.
• NMCE inks pact with HDFC Bank for warehouse receipts.
• HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd
(CCIL). The tie-up offers the latter's collateral borrowing and lending obligation
(CBLO) product to cooperative banks that are not direct members of the
negotiated dealing system (NDS).
• HDFC Bank repurchases HDFC loans worth Rs 208 cr
• Launches Quick remit, a unique online service that enables NRIs

in the US to send money to their relatives in India from the comfort of Their
homes.
• Andhra Bank has entered into an alliance with HDFC Bank for
sharing .Its network of automated teller machines (ATMs). On March 29,
2004.
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• HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to
cater to service the needs of the non-resident Indians (NRIs) in Bahrain.
• HDFC bank Ltd has informed that Dr (Mrs.) Amla Samanta has ceased to be a
director of the Bank wef April 25, 2004.
• HDFC Bank launches new scheme for Maruti 800 buyers, providing 85per
cent finance on the on-road price of the car for seven years.
• HDFC Bank wins Asiamoney award for Best Domestic Bank
• HDFC Bank managing director Aditya Puri has been awarded the
management man of the year by the Bombay Management Ass
association
• HDFC Bank has entered into an agreement with Shrachi Securities Ltd,the
flagship company of the Kolkata-based Rs 300-crore Shrachi Group, for
financing of multi-utility vehicles all over India
• HDFC Bank has launched an online bill payment facility for its
customers who are also subscribers to Tata Teleservices
• HDFC Bank join hands with NCR Corporation to offer managed

• ATM services
• IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC
Bank Ltd
2005
• TMB forges alliance with HDFC Bank
• HDFC Bank inaugurates first ATM in Hotel
• HDFC Bank ties up with the International Bank of Qatar (IBQ) to
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launch banking services in Qatar.
• HDFC Bank launches loyalty rewards programme for its debit and
credit cardholders under the name InstaWonderz.
• HDFC Bank along with MasterCard International launched credit

card
• targeted at small and medium-sized enterprises
• HDFC Bank has tied up with US-based WL Ross and company

LIC for investing in corporate restructuring
• HDFC Bank unveils credit card for farmers
2006
• HDFC sets up two more branches in AP
2007
• HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities
to farmers across the country.
• HDFC Bank Ltd has appointed Mr. Pandit Palande as an additional Director of
the Bank at the Board Meeting held today i.e. on 24thApril 2007.
• HDFC Bank Ltd has informed that the Board of Directors of the Bankat its
meeting held on October 12, 2007, has been appointed Mr.Paresh Sukthankar
& Mr. Harish Engineer as Executive Directors on the Board of Directors of the
bank. Mr. Sukthankar & Mr. Engineer have been senior employees of the
Bank since 1994 and have held various positions of responsibility.
The above appointments as Executive Directors of the Bank are subject

to approval of Reserve Bank of India and of the Bank's shareholders.
HDFC and Standard Life first came together for a possible joint venture, to enter
the Life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quickly
formed. In October 1995 the companies signed a 3-year joint venture agreement.
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Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship. The next three years were filled with uncertainty,
due to changes in government and ongoing delays in getting the IRDA (Insurance
Regulatory and Development authority) Act passed in parliament. Despite this both
companies remained firmly committed to the venture. In October 1998, the joint
venture agreement was renewed and additional resource made available. Around
this time Standard Life purchased 2% of Infrastructure Development Finance
Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC
Treasury department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising
and both companies agreed the time was right to move the operation to the next
level. Therefore, in January 2000, an expert team from the UK joined a hand picked
team from HDFC to form the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5%
stake in HDFC Bank.
In a further development Standard Life agreed to participate in the Asset

Management Company promoted by HDFC to enter the mutual fund market. The
Mutual Fund was launched on 20th July 2000.
2.3 PRESENT STATUS OF THE ORGANISATION:

The company was incorporated on 14th August 2000 under the name of HDFC
Standard Life Insurance Company Limited. Our ambition from as far back as
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October 1995 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 only 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.
Company Mission:
The company aim to be the top new life insurance company in the market. This
does not just mean being the largest or the most productive company in the
market; rather it is a combination of several things like,
 Customer service of the highest order.

 Value for money for customers.
 Professionalism in carrying out business.
 Innovative products to cater to different needs of different customers.
 Use of technology to improve service standards.
 Increasing market share.
Their Values:
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SECURITY: Providing long term financial security to our policy holders will be our
constant Endeavour. We will be do this by offering life insurance and pension
products.
TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will
aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, we will be

offering a range of innovative products to meet these needs.
Their mission is to be the best new life insurance company in India and these are
the values that will guide them in this.
2.4 FUNCATIONAL DEPARTMENTS OF ORGANIZATION :

A. HDFC HOME FINANCE LTD.
Housing Finance Sector
Against the milieu of rapid urbanization and a changing socio-economic scenario,

the demand for housing has grown explosively. The importance of the housing
sector in the economy can be illustrated by a few key statistics. According to the
National Building Organization (NBO), the total demand for housing is estimated at
2 million units per year and the total housing shortfall is estimated to be 19.4 million
units, of which 12.76 million units is from rural areas and 6.64 million units from
urban areas. The housing industry is the second largest employment generator in
the country. It is estimated that the budgeted 2 million units would lead to the
creation of an additional 10 million man-years of direct employment and another 15
million man-years of indirect employment.
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Having identified housing as a priority area in the Ninth Five Year Plan (1997-
2002), the National Housing Policy has envisaged an investment target of Rs.
1,500 billion for this sector. In order to achieve this investment target, the
Government needs to make low cost funds easily available and enforce legal and
regulatory reform. HDFC-(Housing Development And Finance Corporation) Home
Loan, India have been serving the people for around three decades and providing
various housing loan according to their varied needs at attractive & reasonable
interest rates. Owing to their wide network of financing, HDFC Housing Loans
provides services at your doorstep and helps you find a home as per your
requirements.
HDFC Bank provides not only provides Home Loans but also Home Improvement
Loan, Home Extension Loan, Short Term Bridging Loan, Land purchase Loan,
Home Equity Loans. Besides these, loans to professionals for Non Residential
Premises are also provided.
You can also avail the special repayment facilities of the HDFC Bank Home Loans
on its loan products / services. HDFC Housing Loan can be taken up to 85% of the
total cost of your home and you can avail their Home Loan facility from the age of
20 years till the age of your retirement. Along with this, HDFC Home Loan offers
the special benefit of Multiple Repayment Option to their clients. HDFC Housing
Finance also offers its exclusive services to the NRI who can avail Home Loan,
Home Improvement Loan, Home Extension Loan as well as Land Purchase Loan.
The services of HDFC Home Loan, India are highly appreciated by

Indiahousing.com which provides the following to gain further detailed information
about the interest rates of their different housing loans:
.
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Business Objectives
The primary objective of HDFC is to enhance residential housing stock he country

through the provision of housing finance in a systematic and professional manner,
and to promote home ownership. Another objective is to •ease the flow of
resources to the housing sector by integrating the housing finance sector with the
overall domestic financial markets..
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, and to grow through
diversification by leveraging off the existing client.
B) HDFC REALITY LTD.

HDFC Reality
The property market in India abounds with possibilities and potential ... for the large
part, it is still highly fragmented and disorganized.
HDFCrealty.com is HDFC new, organized electronic marketplace for properties.

We provide the entire gamut of real estate services, bringing together the "clicks
world" and the "bricks world" in a revolutionary and user-friendly way. Making
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available the best guidance and the most professional, transparent, efficient
service to the real estate customer
HDFCrealty.com brings together India's most exhaustive database of properties. It

acts as a one-stop online hub for information, comparative analyses, transactions,
market reach and comprehensive professional services. For property anywhere in
India. For customers anywhere in the world HDFCrealty.com, the company behind
this site, has been formed by Housing Development Finance Corporation Limited
(HDFC).
HDFC has since emerged as the largest residential mortgage finance institution in
the country. HDFC is India's largest Housing Finance company is an expert on the
housing sector, property markets and the real estate business. HDFC has a strong
retail orientation with high quality customer vice being the driving force for its
activities. This expertise and service orientation has developed and strengthened
over the last 22 years. Today 'FC has an office network of 63 offices all over the
country and an overseas office in Dubai. HDFC has financed over 1.5 million
dwelling units n loan approvals and disbursements amounting to Rs. 225 billion and
Rs. 3 billion respectively. Back
C) HDFC SECURITIES
HDFC securities is a brand brought to you by HDFC Securities Ltd, which has been
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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HDFC securities, will equip 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 securities mission is to provide our customers with the most useful
investment guidance and investment-related services available in the country. We
want to become a one-stop solution for all your investment needs, one that will help
you get the most out of your money.
What company does?

HDFC securities are introducing a transparent and convenient investment
execution facility for the investor community. In the first phase our services will
comprise buying and selling of equity shares on the National Stock Exchange
(NSE).Buying and selling of select corporate debt and government securities on the
NSE would be introduced in a subsequent phase.
In a few months, when the Internet trading module from The Stock Exchange,
Mumbai (BSE) is ready, we will also offer the following services on the BSE and
NSE:
1 .Buying and selling of shares on the BSE

2. Arbitrage between NSE & BSE
3. Derivatives, Futures & Options
4. Margin trading products.
FUTURE OF HDFC
HDFC has always been market-oriented and dynamic with respect to resource
mobilization as well as its tending Programme. This renders it more than capable to
meet the new challenges that have emerged. Over the years, HDFC has developed
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a vast client base of borrowers, depositors, shareholders and agents, and it hopes
to capitalize on this loyal and satisfied client base for future growth. Internal
systems have been developed to be robust and agile, to take into account changes
in the volatile external environment.
HDFC has developed a network of institutions through partnerships with some of

the best institutions in the world, for providing specialized financial services. Each
institution is being fine-tuned for a specific market, while offering the entire HDFC
customer base the highest standards of quality in product design, facilities and
service.
2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART:
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COMPANY
NORTH ZONE
BRANCHES
EAST ZONE
BRANCHES
SOUTH ZONE
BRANCHES
WEST ZONE
BRANCHES
DEPARTMENT WISE ORGANIZATION STRUCTURE

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BRANCHS
OFFICE STAFF DEPUTY BRANCH OFFICE STAFF
HUMAN
MARKETING SERVICES
RESOURCE
DEPARTMENT DEPARTMENT
DEPARTMENT
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DUTIES AND RESPONSIBILITIES
BRANCH MANAGER:
 Overall management of the branch.

 Achieving target given by the General Manager in head office.
 Weekly report to the head office.
 Take over the full in charge of the department of administration.
 Looking after preventive maintenance planning activities.
 Identification of training needs to staff and Business development
managers.
 Call upon weekly meeting to every Business Development Managers.
 Verification of progress of the BDM's.
 Implementing new techniques adopting in an marketing.
 Follow the principles of life insurance.
DEPUTY BRANCH MANAGER;

1) Assisting manager in day-to-day operations.
2) Managing the affairs of manager during his absence.
3) Maintenance of office in healthy environment.
4) Execution of work as per the rules given by the head office.
5) Day-to-day verification of login policies and proposed policies.
HUMAN RESOURCE DEPARTMENT
The primal resource of an organization is the people. Managing its people is the
most important aspect of managing an organization. Scope of personnel
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management has also increased considerably in recent years. Some of the
reasons are as follows:
 External influences
 Changes in expectations
 Changes in technology
 Intense competition
 Gaining of additional knowledge
No longer is manpower just one of the resources in business organizations. It is the

most important of all resources this is because manpower is that resource through
which management wants to direct control all the other resources. To keep the
human power happy and content the most important objective of every
management in order to meet this objective, management must design and
implement a set of policies procedures and practices absolute.
For the purpose of the efficient running of business the HDFC standard life
insurance company limited, holding separate manager/officer called H.R.
development officer in the every branch office in all over the India
Human Resource and Human Resource Management have always been key
factor in the group success. The group of HDFC offers you not merely a job but an
opportunity to fulfill your long term carrier plans.
Specifically the HDFC Standard Life Insurance offers:

1) An unlimited choice of opening.
2) Executing global carrier opportunities.
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3) The resource to back to your ideas and upgrade your skills.
4) Challenges aplenty and the chance to make good earnings.
5) Training schemes.
In the same way the HDFC Standard Life Insurance as an aim to get the award
given by International Standard Organization with in one year in the field of service
and management.
The main objectives of Human Resource department in HDFC
Standard Life Insurance Company Ltd:
1) Peace among employees in the office.

2) Better Co-ordination in the working environment.
3) Motivational activities.
4) Sense of belongingness.
5) Recognition of work.
6) Carrier and self-development of employees & Consultants
EXECUTIVE PERFORMANCE APPRAISAL AT HDFC STANDARD LIFE
Instructions to the appraise
Self-appraisal is a very important part of the executive appraisal system in the

company. It gives them (the appraise) an opportunity to present a record of their
performance for the year, as they perceived it. The form must be filled with care
and thoroughness giving emphasis o the key aspects of the job.
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They are required to indicate clearly the record of their job performance during the
year. Please write only what they had achieved. Write the appraisal legibly and
briefly.
Normally, the executive appraisal is for the financial year-April 1st to March 31st.
Therefore, they must submit the duly completed self-appraisal with a covering note
to their Reporting officer latest by 15th April of the following year.
Instructions to the Appraiser
Try to be as objective as possible in your rating. Please do not allow any personal
prejudices to color in the rating of your executives. Do not evaluate on the basis of
isolated incidents, but base your judgment on the entire period under review. In
case you have used the significant incidents sheet, it could be a great help to you
in judging the performance of your subordinates during the entire period of review.
While writing the report, one item/factor at a time should be considered and
weighed only in relation to the requirement of the job and level of the appraise.
Performance categorization, grades and equivalent marks
Outstanding performance A 91 & above
Very good B 81-90

Good C 71-80
Average D 61-70
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Below Average E 51-60
Poor F Below 50.
SCOPE OF PERFORMANCE APPRAISAL
The people in an organization have an upper hand in deciding the fate of

organization by achieving the objectives. For the realization of these goals there
should be step-by-step planning and performance by the human force of an
organization. In this sense, true performance ties in achieving a vision. As they
perform, the yardstick for measuring, their performance keeps changing with
every step forward, they perceive their mission better and related goals get more
closely and easily defined.
MARKETING DEPARTMENT
HDFC's Life Insurance products are not a marketing products but it is cover under
the marketing department. It is a service given by the HDFC group to the public in
the way of assurance of life of the people who are insured.
In the realistic manner the product selling is a type of service given to the public.
The marketing of products of life insurance holds line and staff organizational
structure.
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MARKETING
DEPARTMENT
CHIEF
MARKETING
BDM’S BDM’S BDM’S BDM’S

BDM’S
CFC CFS
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CHIEF MARKETING MANAGER
1) Managing the affairs of BDM'S.

2) Execution of work.
3) Day-to-Day verification of login policies.
4) Implementing new techniques.
5) Fulfill the training needs to BDM'S and his financial consultants.
6) Rewarding the best achiever.
7) Maintain co-ordination between the BDM'S.
BUSINESS DEVELOPMENT MANAGER
1) Holding of several financial consultants in hand.

2) Doing part of the tarter plan given by branch manager.
3) Maintaining separate group of financial consultants.
4) Identification of training needs to financial consultants.
5) Putting effort on taking policies from his financial consultants.
6) Motivational and Morale support to financial consultants.
7) Day to day interaction between financial consultants.
8) Flow of commission as per the norms with their respective policies.
9) Go along with the financial consultants when ever appointment with the
proposed clients when the financial consultants in not able to convince.
10)Recording the day-to-day log inn policies from financial consultants.
FINANCIAL CONSULTANTS
The HDFC Standard Life Insurance Company Ltd. deals their business through
financial consultants. Financial consultants are got license from the IRDA through
their online examination conducted in training centers.
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Financial consultants are the real assets of the HDFC Standard Life Insurance
Company Ltd in which financial consultants have separate corner for doing
business with proposed clients.
Commission payable to the consultants
The Company has decided to review the commission rates with effect from
1.11.This note details the changes in the commission rates payable to individual
financial consultants with erect from 1.11.2006.The company has been offering first
year commission at a uniform rate across all tenors. The cost for the short-term
policies are deferent from long-term policies, hence the consultant would
henceforth be paid commission at a rate, which differs as per the tenor of the
policy. The company has not been differentiating between the basic commission
and the bonus commission so far. This decision was taken in view of the fact the
financial consultants were new and required some time to understand the life
insurance business. It has now been decided to pay performance based bonus
commission, linked to production levels, to the consultants with effect 1.11.2006.
The following are the details of the commission structure and NEP thresholds with
effect from 1.11.2006 and are valid till 30th June 2007
Basic First Year Commission

a) Basic First Year Commission payable on regular premium policies issued with a
premium paying term of 15 years and above.
Name of the Plan Basic commission as a percentage

of First Year Premium received
Endowment Assurance Plan 25%

Money Back Plan 25%
29
Children's Plan 25%
Term Assurance Plan 20%
Loan Cover Term Assurance Plan 20%
Personal Pension Plan 7.5%
a) Basic First Year Commission payable on regular premium policies issued

with a premium paying term of less than 15 years
Name of the Plan Basic commission as a Percentage

of first Year Premium received.

Money Back Plan 20%
Children's Plan 20%
C) Basic Commission payable on single premium policies irrespective of the

premium paying term
Name of the Plan Basic commission as a percentage of single

premium received
30
Single Premium Whole of Life 2%
Insurance
Term Plan Plan
Assurance 2%
Personal Pension Plan 2%
Basic Commission would be payable on the actual amount received and adjusted
towards first year premium on regular premium policies and single premium
policies by the company. In case the policy is cancelled in the first three policy
anniversary years or the policyholder exercises the option to withdraw the policy in
the look in period or the benefits under the policy are reduced, some or all of the
basic an bonus commission, as applicable, would not be payable and if paid, the
same would be reclaimed.
FINANCE AND ACCOUNTS DEPARTMENT

Finance is the life blood of every business organization. Without money; a business
cannot run successfully. Business house must necessarily keep a systematic
record of financial transactions. A systematic record of the daily events of a
business concern, presentation of its complete financial picture is known as
accounting.
In HDFC, the finance and account section are dealt by the Head office at each
Zone. In Karnataka, it is in Bangalore. All accounts are managed in this zonal
office. All transactions in the every branch in this zone are accounted here. Every
branch is lead by this head office. There is no separate department in every branch
for dealing accounts.
System
31
A system is defined process or a set of processes, that links and orders activities to
enable work to be done and goals to be achieved. These systems are very
significant and should be chosen carefully as they determine the speed, quality,
accuracy and efficiency of the different activities that are carried out on a daily
basis. The system in an organization is chosen considering different factors. These
factors include the size of the organization, the nature of business and so on.
Systems in HDFC Standard Life Insurance
Computers are so versatile that they have become indispensable to administration
and other official procedures. They can strengthen man’s power in numerical
computation and information processing there by increasing the effectiveness of
organization.
Some of the characteristics of computer are:
1. Speed
2. accuracy
3. consistency
4. versatility
5. Diligence.
The systems followed by the company are given below.

a) Management Information System: A separate software is using in each branch
to account all transactions and to generate all those information needed by the
management. The details of all customers are entered in to this system.
Basic First Year Commission
a) Basic First Year Commission payable on regular premium policies issued

with a premium paying term of 15 years and above.
32
Name of the Plan Basic commission as a percentage
of First Year Premium received

Money Back Plan 25%
Children's Plan 25%
b) Human Resource Information system: It is computer based system followed

in HDFC Standard life Insurance to maintain a better human resource.
Recruitment, selection, training are done in a systematic manner. Basic First Year
Commission payable on regular premium policies issued with a premium paying
term of less than 15 years.
Name of the Plan Basic commission as a Percentage

of first Year Premium received.

Money Back Plan 20%
Children's Plan 20%
33
.PERFORMANCE OF THE COMPANY
TABLE-1
TABLE SHOWING THE MONTHLY INCOME OF THE
RESPONDENTS
INCOME NO. OF PERCENTAGE

RESPONDENTS
Below 5000 10 10%
5000-10,000 40 40%
10,000-20,000 30 30%
Above 20,000 20 20%
TOTAL 100 100%
CONCEPT:
This table is designed to know the income level of respondents.
ANALYSIS:
From the above table it shows that 10% of the response fall in the group of below
5000.40% of the respondents falls in the group of 5000 to 10,000. 30% of the
respondents are falls in the level 1,000 to 20,000.And 20% of the respondents in
the category above 20,000.
INTERPRETATION:
From the above table it is inferred that most of the respondents fall in the income
level of 5000 to 10,000. This shows average level of income earning peoples are
34
know the insurance policies, their saving plans, and future thinking about the
saving.
2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION

COMPETETITORS:
AS we know that this time insurance sector in on boom. Reason is that it

gives more profit not only to the company but also to the investor. Today
Company invests money not only in government securities and bonds but also in
the equity which gives more return than the government securities and bonds, and
bank deposits. In the market lots of insurance company who are trying to capture
more and more market share. There are seventeen insurance companies in the
market which are launching plans after plans for capturing market share. These
insurance companies are thus:-
No. Name of Insurance companies
1. Life Insurance Corporation

2. ICICI Prudential
3. State Bank of India Life Insurance
4. HDFC Standard Life Insurance Company Limited
5. Tata AIG Life insurance
6. Bajaj allianze
7. Reliance retail limited
8. Met Life Insurance
9. Aviva Life insurance
10. Sahara Life Insurance
11. Birla Sunlife Insurance
12. Oriental Life Insurance
AMP Sanmar Life Insurance Company Limited:
AMP Sanmar Life Insurance Company Limited was a 26:74 joint venture
35
Between AMP Australia and Sanmar Group. The initial paid up capital of the Joint
venture was Rs. 125 crores and an initial target of selling around
30,000 policies in the first year of its commencement. In 2005, Reliance Life
Insurance Company Limited, a subsidiary of Reliance Capital Limited under Anil
Dhirubhi Ambani acquired AMP Life Assurance Co. Ltd. this made Reliance Life
Insurance the very first private Sector life insurance company to start business in
India without any foreign Collaborator.
AMP Sanmar handed over 90 branches, 900 staff and 9000 agents to
Reliance Life. This gave Reliance Life Insurance the jumpstart it needed to
get IRDA (Insurance Regulatory and Development Authority) approval. The
other industry suitors for the bid of AMP Assurance Co. Ltd were
Aviva, ICICI Prudential Life Insurance Company etc. But Reliance outbid
them with the bidding amount ranging between Rs. 225 - 400 crores.
AMP Sanmar has two names brought together. One being AMP limited that
is one of the world's leading financial services provider with a customer base of
over 9 million and the other is Sanmar Group that is among the largest industrial
groups in South India. The turnover of Sanmar Group is around Rs. 10 billion with
businesses in PVC/ Chloro chemicals, specialty
chemicals, shipping and engineering.
ICICI Prudential Life Insurance Company
ICICI Insurance has two faces - ICICI Prudential Life Insurance Company
and ICICI Lombard General Insurance Company Limited. ICICI Prudential
Life Insurance is a 74:26 joint venture between ICICI Bank India Ltd. and
Prudential PLC based in UK. Established in 2000, today ICICI Prudential
has 735 offices, 22 Banc assurance partners and over 2.4 lakh advisors.
Having won public accolade as the most trusted private life insurer in India,
ICICI Prudential Life Insurance Co Ltd brings a wide array of life insurance
36
products to the customers.
In addition to these insurance policies, ICICI Prudential bring to you easy
premium payment solutions by cheque or cash at the branches, cheque
payments at the drop boxes, ECS, credit card payment and online payment
Options. Login to the ICICI Prudential website and on the homepage find
Online premium payment option. You also get an online asset allocator,
inflation index calculator, human life value calculator and life stage profiler.
ICICI Prudential offers you an opportunity to buy the desired insurance
policy online or get full details from an insurance agent or broker send to
you or even get first hand direct information at the helpdesks in the ICICI
Prudential branches.
ICICI Lombard General Insurance Company Limited is a 74:26 JV
between ICICI Bank India ltd. - the second largest private sector bank in
India and Lombard Canada Ltd. - a Fairfax Financial Holdings Ltd group
company that is a 26 billion USD Company.
ICICI Lombard started their general insurance businesses in August
2001. It is India's No.1 private general insurance company. It is also the first
general insurance company to be awarded ISO 9001:2000 certification.
They bring to you express fast policy issuance and claims settlements.
Life Insurance Cooperation of India
Every day we wake up to the fact that more than 220 million lives are part o
our family called LIC. We are humbled by the magnitude of the
responsibility we carry and realise that the lives that are associated with us
are very valuable indeed. Although this journey started five decades ago, we are
still conscious of the fact that, while insurance may be a business for us, being part
of millions of lives every day for the past 50 years has been a process called
TRUST.
37
Birla sun life insurance
Birla Sun Life under the management of Mr. Nani B. Javeri as the CEO is a
Rs. 180 crore equity capital company. Birla Sun Life Insurance Co. Ltd is a
26:74 joint venture between Sun Life Financial Services Canada and Aditya
Birla Group. Just four years down the industry pipeline, Birla Sun Life
Insurance or BSLI has secured a lead in private life insurance market. The
distribution channels by BSLI include direst sales force, alternate channels,
IT systems and groups to ensure convenience of the potential customers.
Highly professional dealing, corporate governance and complete
transparency have earned Birla Sun Life Insurance Co Ltd the trust of its
customers.
2.7 MARKET PROFILE OF THE ORGANIZATION
Individual Products
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers
a range of products and invites you to choose the one that suits you best.
With Profits Endowment Assurance:

This policy provides a combination of saving and life insurance. The sum assured
plus any bonuses will be payable at the end of the term or on death if earlier. The
customer commitment is to pay a level premium regularly throughout the life of the
38
policy. The Endowment Assurance can be customized to meet your needs by
adding any combination of up to_4 rider benefits.
With Profits Money Back:

This policy provides a combination of savings, regular cash payments and life
insurance. Over the course of the contract, a proportion of the sum assured will be
paid at regular intervals. The sum assured plus any bonuses will be payable on
death before the end of the contract. On survival to maturity, you will get the sum
assured plus any bonuses less the regular payments already made. Your
commitment is to pay a level premium regularly throughout the life of the policy.
The Money Back can also be customized to meet your needs by adding any
combination of up to 4 rider benefits.
Term Assurance Plan:

Under the Term Assurance plan, a sum assured is payable in case of death of the
life assured during the term of the contract. One can choose the lump sum that
would replace the income lost to one's family in the unfortunate event of one's
death. The Term Assurance Plan comes to you at a minimal cost and is well suited
for the value-conscious customer. The Term Assurance Plan can also be
customized to suit your needs by adding optional rider benefits
Loan Cover Term Assurance:
The Loan Cover Term Assurance plan provides a lump sum on death of the life
assured during the term of the plan. The lump sum will be a decreasing percentage
of the initial sum assured. It is an affordable plan that has been designed to help
your family repay the outstanding loan in case of your unfortunate death on this
product.
39
Personal Pension Plan
The Personal Pension Plan is basically a savings contract, which is designed to

provide an income for life from retirement, with an option to take the lump sum
elsewhere to buy the annuity, provided it is permitted by the prevailing regulations.
Your commitment is to pay a single premium or level premiums with installments
due every quarter, half-year or year throughout the deferment period of the policy,
after which you will start receiving your pension.
Children's Plan
The future of your child is most important to you. You need to plan today to ensure
a bright future for your child, whether it is education, marriage or establishing a
professional career. To help you save for your child, we at HDFC Standard Life
present the plan is affordable, customized to your needs, and above all, enables
you to realize your dreams for your child. This plan is well suited for the value-
conscious customer, and above all, for every loving parent. Grandparents, other
relatives or any adult for the benefit of a child can also choose the plan.
Health plan
HDFC Standard Life, one of the leading private life insurance companies in India,
has finally forayed into the health insurance market with the launch of its first health
insurance product christened ‘HDFC Critical Care’. The latest launched health
policy provides cover against 30 critical illnesses, which will benefit policy holders
40
to meet any financial requirement at needed time. Some of the key features of the
‘Critical Care’ policy are lump sum benefit payment regardless of actual medical
cost, flexible premium payment option through various modes etc. The cover is
available for a maximum term of 20 years and the minimum and maximum age of
entry has been kept at 18 and 55 respectively. The policy holder can take minimum
and maximum cover of Rs 2 lakh and Rs 20-lakh respectively. The maximum age
at expiry of the policy is 65 years.
3. DISCUSSIONS ON TRAINING
3.1 STUDENT’S WORK PROFILE
41
I am, ASHUTOSH KUMAR working as a sales executive in HDFC Standard Life
Insurance
My job profile:
 Selling of Insurance.
 Follow-up the consumers
 Product launch.
 Taking part in promotional activities.
 Collecting the documents..
The major responsibility was take care by me:-
 Knocking door of the customer
 Dialing to the customers
 Explaining and making presentation on product
 Convincing customers to buy the product
 Doing paper work
 Collecting the documents.
3.2 Description of live experience:
I was working as a Financial Advisor in HDFC Standard Life Insurance
42
It’s a nice experience gained by me. I am thankful to Mr. Ch. RAMESH SINGH who
really supports me to do best in this organization.
I learn and gain good knowledge through training
and development program, which is provide by the organization for 10 days. When
I join in this organization, it was a great moment for me, because this organization
has a good brand name in Insurance sector.
MY PROBLEMS:
 I do not know local language (Kannada).
 I am not able to speak in Kannada.
 I made some mistakes.
 In Insurance sectors, huge competition is there.
MY IMPROVEMENT:
 Day-by-day I gained knowledge from this competition market.
 Attend meetings very important for gaining knowledge.
 MTC – Meet to the people, Talk to the people, Convince to the people, is
important for marketing.
 Develop the presentation skills.
 MAN – Money, Authority, Needs, also important in marketing.
MY COMMENTS:
I learn theoretical as well as practical from HDFC Standard Life Insurance and how
to implement theoretical knowledge on corporate world. Though in working place
we have unknown pressure but I was felling a joy from my working experience.
43
4 STUDY OF SELECTED RESEARCH PROBLEM
4.1 STATEMENT OF RESEARCH PROBLEM
During the visit to the company the problem noticed is in the area of recruitment of
financial consultants’ offline and retaining them in the company, which is defined as
follows:
“According to IRDA rules concerned, the qualification for financial consultants is
secondary from rural background and plus two from urban background and this
include students, housewives who have a very less knowledge and in some cases
they are unable to understand the benefits of policies clearly. It is mandatory that
they have to undergo training of 100 hours in which they find it difficult, if the
candidate has to appear for IRDA exam offline to obtain license of agent (online
exam is also conducted for IRDA). Attracting the prospective candidates for the
agent job is also difficult as it has no fixed salary and the consultants get
commission for only the policies they bring to the company. This is also one of the
main reasons candidates are not much attracted towards the financial consultant
job. During first year the company offers more commission to agents and the
commission rate goes on decreasing as time moves i.e. commission paid is less in
forth coming years . This also leads to dissatisfaction as they don’t have any fixed
remuneration. This leads in quitting the job and therefore company has to find
another agent to do the business on behalf of it.”
• Lack of suitable candidates..
• Lack of patience, persistence and good communication skills which are a
must for an agent.
• No regular personality development programs.
• Customer ignorance about insurance.
.
44
4.2 STATEMENT OF REASEARCH OBJECTIVE :
Marketing Research provides information that assists and organization to
define opportunities for product development and market strategy. It works
by assessing whether marketing strategies are accurately targeted, and by
identifying market opportunities or changes that are required by customers.
Market research tends to confirm issues that are well-known in a market
initially, but if planned well and effectively it will also identify new
opportunities, market niches, or ways by which to improve sales, marketing
and communications activities.
The role of market research, therefore, is to reduce uncertainty in
decision making, to monitor the effects of decisions taken, and identify the
performance of a company or a product in the market. During internship
my market survey was related with the distribution enhancement of the
insurance policies of HDFCSL. To be more specific, we can list five key
uses for market research :
a. Identify the size, shape, and nature of a market, so as to understand
the market and marketing opportunities.
b. Investigate the strengths and weaknesses of competitive products and
the level of trade support a company enjoys.
c. Test out strategic and product ideas which help to define the most
effective customer-led strategies.
d. Monitor the effectiveness of strategies
e. It will define when marketing expenditure, promotions and targeting
need to be adjusted or improved. The variety of purposes listed above makes it
clear that market research is not simply “first check.” It is useful ahead of any
action, but it also provides a means of checking and refining views as operations
proceed. Companies, especially those for which budgets always seem tight, who
have selected one of these uses for market research are always concerned to
make the research a worthwhile investment. Best results come when their
45
marketing and sales planning is influenced by the results of research. In other
words, when research pays for itself by providing a basis for change and
improvement in operational matters.
4.3 REASEARCH DESIGN AND METHODOLOGY.

GRAPH-1
GRAPH SHOWS THE MONTHLY INCOME OF THE RESPONDENTS
40
40
30
30
20
20 10
10
0
Below 50005000-10,000 10,000- Above
20,000 20,000
46
TABLE-2
TABLE SHOWING THE PREFERENCE IN BUYING AN INSURANCE
REQUIREMENT
SECTORS NO. OF PERCENTAGE

RESPONDENTS
GOVT SECTOR 50 50%
PRIVATE SECTOR 25 25%

BOTH 25 25%
TOTAL 100 100%
CONCEPT:
This table aims at the clear picture about the preference in buying an insurance
requirement.
ANALYSIS:
47
50% of the respondents are mainly preferred government sector only 25%. of the
respondents are positively preferred private sector companies and 25% of the
respondents are chosen the both the government sector and private sector.
INTERPRETATION:
From the above table it can be identified that more than 50% of the respondents
choose the governments sector, because mainly thing is safety, security of the
savings, most of the respondents positively opted to governments sector only,
GRAPH-2
GRAPH SHOWING PREFERENCE IN BUYING INSURNCE REQUIREMENTS
48
50
50
40 25
25
30
20
10
0
GOVT SECTOR PRIVATE BOTH
SECTOR
T
ABL
TABLE -3
SHOWS RESPONDENTS CONSIDERATION WHILE TAKING INSURANCE
49
FACTORS INFLUENCE NO. OF PERCENTAGE
RESPONDENTS
Tax benefits 25 25%
Service 10 10%
Contingency planning 35 35%
Policy matter 5 5%
Others 25 25%
TOTAL 100 100%
CONCEPT:
This table target that what respondents consider while taking a life insurance
ANALYSIS:
From the above table 25% of the respondents consider tax benefits has a main
thing while taking an insurance. 35% of the respondents consider Contingency
planning as main thing, rest of that respondents consider service, policy maker and
others.
INTERPRETATION:
From the above table shows that majority of the respondents are influenced to take
the insurance is tax benefits and Contingency planning, rest of that respondents
according to their mind set while taking an insurance.
50
GRAPH-3
GRAPH SHOWING RESPONDENTS CONDIDERATION WHILE TAKING

INSURANCE
35
35
30 25 25
25
20
15 10
10 5
5
0
Tax benefits Service Contingency Policy matter Others
planning
51
TABLE-4
TABLE SHOWING CRITERIA WHILE TAKING INSURANCE FROM THE

COMPANIES
CRITERIA WHILE TAKING NO. OF PERCENTAGE

RESPONDENTS
Safety & Security 42 42%
Service 28 28%
Transparency 18 18%
Others 12 12%
TOTAL 100 100%
CONCEPT:
This table is designed to know the criteria while taking insurance from the
companies.
ANAYLYSIS:
From the above table it is seen that the more than 42% of the respondents fall in
the safety and security category 28% of the respondents are falls in the level of
service followed by transparency covers 18% and others covered rest of the 12%.
INTERPRETATION:
From the above table it is inferred that majority of the people seek safety and
security of their funds invested in the companies through life insurance and rest of
the respondents looking forward companies service transparency and others.
52
GRAPH-4
GRAPH SHOWING CRITERIA WHILE TAKING INSURANCE FROM THE

COMPANIES
42
45
40
35 28
30
25 18
20 12
15
10
5
0
Safety & Service Transparency Others
Security
53
TABLE-5
TABLE SHOWING THE NUMBER OF PEOPLE INSURED BY WORKING
INSURANCE SECTOR
AMOUNT OF INSURED NO. OF PERCENTAGE

RESPONDENTS
Below 50,000 05 05%
50,001-1,00,0000 26 26%
1,00,000-2.50,000 60 60%
Above 2,50.000 09 09%
TOTAL 100 100%
CONCEPT:
This table designed to know the expected amount of insured by respondents.
ANALYSIS:
From the above analysis it is seen that most of the working people insured against
life insurance on our own life and their family covered 1,00,000 to 2,50,000 own
60%of the responsiveness, rest of the 26% respondents covered under 50,001 to
1,00,000 followed other 14% covered under below 50,000 and above 2,50,000.
INTERPRETATION:
It can be inferred that working people looking forward on the basis of their salary
level they got a life insurance amount of 1,00,000 to 2,50,000. With this we can
interpret that 60% of the people opting to go for at their income lavel
54
GRAPH-5
GRAPH SHOWING THE NUMBER OF PEOPLE INSURED BY WORKING

INSURANCE SECTOR
9 5
Below 50,000
26
50,001-1,00,0000
1,00,000-2.50,000
60 Above 2,50.000
55
4.4 ANALYSIS OF DATA
After collection the data the most important part comes which is data
analysis. It is the most significant part of the research. Whole work
regarding data depends upon the data collection. During the period of
training I have collected my data in the area of BANGALORE.
For the collection of data I had gone to the market, gathered
places like malls, fun Cinema halls, and the other gathered places where I
can get the potential customer. As the plans of HDFC STANDARD LIFE
target medium income level in the urban area. The minimum premium of the policy
is 12,000 yearly, and 15,00 monthly. So had to target those places where I can get
person who is salaried and their salary most be more than10,000.
For the collection of data various questioner is prepared by me and I have
gotten certain result form it. These question and results are thus:-
Q1. Do you invest your money in insurance sector? If yes then which
company you recall firstly?
I have gotten mostly person within 100 people they recall firstly LIC
because it is public sector industry and from lots of years it is connected
with the public. So public believe it more than other insurance company.
other
LIC
HDFC
ICICI
As in the market out of hundred people 50% people say, on the name of
insurance they recall firstly LIC then 18 % people say about ICICI and then
17% people recall HDFC Standard life and rest people recall other.
Q2. How many times you have invested your money in insurance sector
without consulting to any Financial Consultant.
56
An consulting with FC Self In this survey I have analyses that mostly people
dependent upon financial
consultant for the investment of their money in the insurance sector.
Financial Consultant pays main role in the insurance sector regarding sales
of policies. For the distribution enhancement of the policy of HDFC
Standard Life it is most important that it should give more preference to its
financial consultant. It should offer attractive commission to the financial
consultant so that they work for the organization by heart. It is financial
consultant who consults with the people and convinces them for investing
their money in the respective insurance company. In the market there is
certainly ICICI prudential have more financial consultant than HDFC
Standard Life insurance. There are 17 insurance companies in the market
and they are trying to increase their market share and for this purpose they
will definitely give more benefit to public so that they may agree to become
financial consultant.
Q3. Are you aware of the advertisement of “Sar Utha Ke Jiyo”? if yes
then are you able to understand what it actually want to say?
Ans:-when I talked to the people in this regard then he replied that they are
aware about the this Policy and I am talking about HDFC Standard Life
Insurance. It shows our advertisement is making place in the mind of the
customer. They are aware of our insurance company. It will develop faith on the
industry and help to the financial consultant of the HDFC Standard Life to convince
them because advertisement have maid their work to tell them it is a renounce
company and they will not cheated by this company.
4) For the investment in insurance sector you choose company or your
investment based upon the financial consultant.
Ans: - Through this question I will be able to know that role of the financial
consultant. FC choose self
57
Through the graph I can analyze that most of the investment is done through
financial consultant. 32 persons out of 100 people choose their investment
company themselves. For the purpose of selling policy Financial Consultant will
give more effective work. Generally in this sector mostly work are done through
contact and financial consultant use their contacts for the purpose of selling
policies. Generally what happens that a specific area is covered by financial
consultant who helps in improving in market share of insurance company.
4.5Summary of findings
HDFC Standard Life Insurance has core computer in selling and has a
very aggressive sales team. Since it is a services industry where world of
mouth is very important. A negative world of mouth may remove 10 existing
customers on the other hand a positive word of mouth may earn 10
customers. So service should be targeted at a level, which not only should
meet the customer’s expectation but also exceed it.
However understanding the market, consumer preference and
introducing new products to suit different tastes and at the same time
offering a value product would be the key steps to fight competition.
Marketing is an important activity in any organization’s sales strategy.
Marketing helps in promoting the products in the targeted market and create a
recall value and branding to the products. Marketing department perform the initial
market study for the suitability of the product launches; study the market
requirements in the existing markets to further strengthen the market
Capitalization identity the feature needed for a longevity of a product.
FINDINGS:
• Lack of suitable candidates.
• Difficulty in getting 100 hours training as the candidates finds it difficult to
manage time.
• No fixed salary.
• No allowances as such.
58
• Lack of patience, persistence and good communication skills which are a
must for an agent.
• No regular personality development programs.
• Customer ignorance about insurance.
• In rural areas lack of potential investors.
Insufficient time for completing task
5 SUMMARY AND CONCLUSIONS
5.1 SUMMARY OF LEARNING EXPERIENCE
HDFCSLIC is the renounce industry in the insurance sector. It believes in

quality not in quantity. HDFC have total 12 group companies. It is the first
insurance company who has gotten the license of insurance in firstly. It has
started its insurance industry with the joint venture of U.K. based standard
Life insurance Company. In the insurance sector main work is done by the financial
consultant who brings business to the industry. It gives more priority for the
recruitment of financial consultant that’s why it has setup 5-qscore. It gives priority
that is professional like as MBA, CA, ENGINEERS, DOCTORS, LAYERS, AND
OTHER PROFESSIONAL.
It gives more facilities to their employ and provides better opportunity to their
employ for promotion because it has minimum target for fulfillment. FC have to give
36 policy or 360 lack premium with in six months which less in comparison to the
other insurance industry and for BANGALORE region where the transaction of
money is too high. FC has chances to become sales development manager with in
six month months when he fulfills the target. The post of SDM is based on payroll.
He will get package of 2.75 lacks per year.
India is one of the most lucrative financial services market in the world.
The insurance market in India is estimated to be around 400Bn growing at
59
an astounding rate of 30% p.a. Still the experts believe that the potential is
largely untapped.
The insurance market is dominated by the public sector giant LIC with a
market share of around 71.4%. With the private players leading the growth
story, this sector is witnessing more marketing actions than even the FMCG sector.
Traditionally insurance are sold through direct selling the reason
being purely the nature of product warrants direct communication with the
consumer. Kilter categorizes Insurance as an "Unsought" product. Unsought
products are those which are ranked lowest in terms of consumer interest.
Consumers may not be even aware of either the need or existence of this
product.
Historically, Indian insurance products are sold for wrong reasons.
People buy insurance to avail the tax benefit and not to ensure protection
and LIC was happy to oblige. Hence most of the sales talks start with the
question “How much do you pay tax?”. Little money was spent on brand
building because there was no competition for LIC.
Things have now changed. With the increasing financial literacy, volatile
economy and uncertain future are prompting Indians to look seriously at
insurance as a means for protection rather than tax saving instrument. With
more private players entering the domain, the issues of differentiation and
branding became important.
HDFC Standard Life Insurance (HDFCSL) is one of the major players in the
insurance market. One of the first private insurers to enter the market,
HDFC SL entered the scene in 2000. It is a joint venture between the
housing finance major HDFC and the UK insurance giant Standard Life.
Now a day we are seeing a lot of media action from this company.
Although a slow starter HDFCSL was having a small share of the pie. It
was eclipsed by ICICI prudential with its media and sales blitz making it
second largest player in the Insurance market. 2006 saw a shake up in this
60
market with Bajaj Allianz edging out ICICI from the second spot . Bajaj
have a market share of around 8% and HDFCSL and ICICI fighting at 3rd
place with around 7.5%.
HDFC is currently focusing on The Pension Plan and the Child Plan aiming
to cash in on the potential of these segments. The pension market in India is
estimated to be around 1000 crore with a huge potential for growth in the
future the change in the demographics is going to drive the pension market in India.
Traditionally in a Joint family, there was an inherent protection for elders. With the
urbanization and the evolution of Nuclear Urban Family ( NUF) , elders are often
forgotten. Out of the 314 men workers in India11% has some sort of old age
security. People earlier depend on social security products like EPF and PPF to
build a corpus for their golden years. It is this potential that has encouraged HDFC
to promote its pension plans. Introduced in 2002, this product has been well
received by the consumers. The ads are well executed and revolve around the
positioning of "Respect Yourself" The target segment being the 30 year old family
man. The basic theme of the campaign is to appeal to the self respect of these men
who are in their prime of their career. "Even after retirement let your hands give
rather than receive" is one of the best themes for a pension plan. Since I am in that
category, these ads strike a chord in me and remind me of the need to plan for my
retirement. The same theme is carried to the Child plan also. Although these
campaigns will help to invoke an interest in TG, the market is in its nascent stage
and lot of convincing has to be done to crack this huge market. One of the
stumbling block being the expensive annuity plans. For example, it takes a 2 lakh
corpus to generate Rs 1000 per month pension. Also if you put 10000 per month in
a pension plan if you are 30 yrs old, what you will get after 20 years is a monthly
pension of 10000. (Correct me if I am wrong). So it looks unattractive in the first
look compared to MFs.
HDFC Standard Life has correctly identified the pulse of the target market
and is all set to reap the benefits.
61
5.2 CONCLUSION AND RECOMMENDATIONS:
 When we talk about conclusion I think I have small experience of this sector but
whatever I have pointed out which are thus. In the recruitment of financial
consultant I found that mostly person don’t want to give rs.925 or rs.825. I have
faced some difficulties when they don’t agree to give this much amount. If the
company will less this charge then it will get more FC.
 It should organize weakly meeting with FC for the business and give
appraisal training to FC. It works as a performance appraisal of the
FC.
 It should give monthly party to the FC for the attachment with the
industry.
 It should give canopy facility to CDM or RC for the recruitment of
FC and if it will give canopy facility to FC then they can give more
facility.
 Generally we buy only that thing whatever we see. It means that it
should spend more on advertisement. Other insurance industry like
LIC and ICICI advertise mostly through banner on metro station, on
62
road and advertise in the cinema hall. Add more and more movie hall
for the advertisement.
 The role of recruitment is not easy so it should increase commission
or give salary instead of commission so that RC will take more
interest in the recruitment on financial consultant.
 Regular canopy should be established such areas like metro Stations,
college campus, and malls, supermarket, and hypermarket for the
purpose of recruitment FC and getting business form FC.
QUESTIONNAIRE
1. Are you working?

a) Yes b) No
2. What is your monthly income?

a) < 5,000 b) 5,000-10,000 c) 10,000-20,000 d) > 20,000
3. Which sector do you prefer in buying insurance?

a) Govt. sector b) Private sector c) Both
4. What will you consider while buying insurance?

a) Tax benefits b) Service c) Contingency planning d) Policy
matter e) Others
63
5. What is the criterion while taking insurance from the companies?
a) Safety and security b) Service c) transparency d) Others
6. Do you know HDFC SLIC?

a) Yes b) No
7. How did you come to know HDFC SLIC?

a) Financial consultants b) Friends, colleagues, relatives
c) Media d) Others
BIBLIOGRAPHY
 Text Books
 Organizational Behaviour - K Ashwathappa

 Human Resource Management – P. Subba Rao
 Other References
 Broachers, pamphlets & financial consultants manuals

published by HDFC Standard Life
 IL & FS insurance agent manual
 Websites
64
 www.hdfcinsurance.com
 www.hdfc.com
 www.irda.com
65

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1.

1.1 GENERAL INTRODUCTION ABOUT THE SECTOR:

Through India's economic development, it becomes the molucrative insurance

What is Life Insurance?

Insurance is generally classified in three main categories,

Insurance is the instrument of Security, saving and peace of mind. It provides

Temporary needs or threats: The original purpose of life insurance remains an

Retirement: Provision for later years becomes increasingly necessary, especially

So the insurance ensures protection of economic value of assets or insured against

Insurance is used with reference to financial protection against a possibility of

• It can be affordable only to whom who have enough saving.

A) ORIGIN AND DEVLOPMENT OF INDUSTRY:

B) GROWTH AND PRESENT STATUS OF THE INDUSTRY:

 1720-1735 formation of insurance companies in England

C) FUTURE OF THE INDUSTRY

(2) PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

2.2GROWTH AND DEVELOPMENT OF ORGANIZATION:

• HDFC Bank unveils co-branded credit card with e-Seva.

• EPFO JV with HDFC Bank for its pension distribution.

• HDFC Bank, IRCTC in tie up for online railway booking.

• HDFC Bank inks pact with ANB for remittance service

• HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.

• Uma Krishnan resigns HDFC Bank as country head.

• Escotel ties up with HDFC Bank for Global Debit Card.

• HDFC Bank launches India's first mobile payment solution.

• HDFC Bank's debt programme of Rs 400-crore has received triple A

• Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

• HDFC Bank began selling home loans of its promoter Housing

• Board approved to allot 4,16,400 equity shares to the employees of

• NMCE inks pact with HDFC Bank for warehouse receipts.

• HDFC Bank repurchases HDFC loans worth Rs 208 cr

• Launches Quick remit, a unique online service that enables NRIs

• HDFC Bank wins Asiamoney award for Best Domestic Bank

• HDFC Bank join hands with NCR Corporation to offer managed

• TMB forges alliance with HDFC Bank

• HDFC Bank inaugurates first ATM in Hotel

• HDFC Bank ties up with the International Bank of Qatar (IBQ) to

• HDFC Bank along with MasterCard International launched credit

• HDFC Bank has tied up with US-based WL Ross and company

• HDFC Bank unveils credit card for farmers

• HDFC sets up two more branches in AP

The above appointments as Executive Directors of the Bank are subject

In a further development Standard Life agreed to participate in the Asset

2.3 PRESENT STATUS OF THE ORGANISATION:

 Customer service of the highest order.

INNOVATION: Recognizing the different needs of our customers, we will be

2.4 FUNCATIONAL DEPARTMENTS OF ORGANIZATION :

Housing Finance Sector

Against the milieu of rapid urbanization and a changing socio-economic scenario,

The services of HDFC Home Loan, India are highly appreciated by

The primary objective of HDFC is to enhance residential housing stock he country

HDFC's main goals are to

B) HDFC REALITY LTD.

HDFCrealty.com is HDFC new, organized electronic marketplace for properties.

HDFCrealty.com brings together India's most exhaustive database of properties. It

What company does?

1 .Buying and selling of shares on the BSE

HDFC has developed a network of institutions through partnerships with some of

2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART:

DEPARTMENT WISE ORGANIZATION STRUCTURE

OFFICE STAFF DEPUTY BRANCH OFFICE STAFF