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It resulted into the signing of joint venture agreement in October 1995; the agreement was later renewed in October 1998.
With government clearing the decks, a project team was established in Mumbai in January 2000. Company got Certificate of incorporation on 14th August 2000. HDFCSL became the first private sector life insurance company when certificate of registration was granted on 23rd October 2000.
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The initial shareholdings were HDFC 81.4% and Standard Life 18.6%.
Since then, its the journey of excellence. All of us are contributing towards building up a great company that the world will admire. Its a journey of creating the world-class company. We have already made a mark. Lets take a look the highlights of the performance so far: We have insured over 350000 lives and have already underwritten a Sum Assured of 15000 crores.
We are the first private life insurance company to declare the bonus and last years bonus declaration was 4th in the row. It makes us the only private company to have declared bonuses for 4 consecutive years.
Winner of Outlook Money award for 2 years. Company with largest distribution network among the private life insurers. Our claims experience has been best so far across the industry. Recently voted as Indias most respected private insurance company by Business World.
Vision:
The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short, The most obvious choice for all.
Core values:
Integrity Innovation Customer centric People care Team work
Insurance Products
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Today there are many insurance products available in the market. Each company has its set of products that it offers to the customers. This makes it difficult to keep track
of all the products all the time. A better way to understand them is by way of classification. All insurance products can be classified in 4 basic categories.
Protection
Investment
Pension
Savings
This classification is based on the needs of the customers. Accordingly each of these categories has an end need to be satisfied and all the products coming under that category aim to fulfill that need e.g. Products coming under Investment category aim to provide long term real growth over the period. Thus understanding these categories will not only help us to understand various products but also help us to position our products strongly in a competitive market. Let us take a look at the distinctive features of each category.
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Pension products: This is another very popular type of product. Along with
the risk of an untimely death or disability, we also have a risk of living too long outliving our source of income. In other words, one needs to ensure that he gets a decent income even after his retirement and continues to get it as long as he lives! This is where we have pension products addressing the need for a comfortable retirement. One can opt for an immediate pension or for pension at a future date (also called as deferred pension). There is a range of options that one can have when selecting a pension plan. There is a great amount of flexibility when it comes to selecting a pension product. The important point to be noted is that Pensions is a part of ones present income that he reserves for future consumption. Every year that income is accumulated and invested. The lump sum accumulation then is used for purchasing pension on the vesting date.
Savings type products: People like to save. Our saving rate has been well
above 20% of our GDP for last few years. They save for events like childrens marriage, education etc. Savings types of products aim to strike a good balance between risk cover as well as returns. It acts as a protection on savings. Sum
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assured is usually the targeted savings that one looks for. He gets that amount at the end of the term along with bonuses if it is a participating policy. On the protection side if any unfortunate event happens during the term, the sum assured
(in other words the targeted savings) is still paid. So it encourages a person to save for an event at the same time ensures that his savings are protected. This is the unique advantage of savings through life insurance that no other financial product offers. We find very popular products like Endowment Assurances; Money Back plans in this category.
As stated earlier, all the products come under these 4 broad categories. To understand a product, it is essential to find out the category of that product based on its features. Needless to say that it will not be possible to compare one category product to another. Each category is unique and caters to particular needs of the customer. The best approach is to find out what customer needs and then suggest a solution accordingly. Our products are discussed in the following pages within the broad framework of PIPS categories.
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INDIVIDUALS
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.
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Investment Plans
Our Single Premium Whole of Life plan is well suited to meet your long-term investment needs. We provide you with attractive long-term returns through regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked Youngster Plus . Individual products can be listed as follows:-
1-Protection Plans
=Term Assurance Plan =Loan Cover Term Assurance Plan
2-Investment Plans
=Single Premium Whole of Life plan =Personal Pension Plan =Unit Linked Pension =Unit Linked Pension Plus
3-Savings Plans
=Endowment Assurance Plan =Unit Linked Endowment
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=Money Back Plan =Childrens Plan =Unit Linked Youngster =Unit Linked Youngster Plus.
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Details of these products are as under1-Protection Plans Term Assurance Plan :"You have always ensured that your loved ones keep living a respectable life with their heads held high. But life can be uncertain. As a prudent family man, you need to secure your family's future and protect your pride and your family's self-respect. You need to have a plan to take care of your family if something unfortunate were to happen to you. With our Protection Plans, you can protect your family from uncertainties in life such as your unfortunate death or critical illness. And ensure that your family lives a life of selfrespect and dignity even in your absence. Protection Plans give you :
An ideal way to secure the financial future of your loved ones High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities A choice of two plans depending on your requirements HDFC Term Assurance Plan : A pure risk cover plan, which gives you protection against the uncertainties of life HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loan or any other loan liabilities Choice of premium payment options-regular premium or a single one-time premium Choice of taking the plan on a single life basis or a joint life (first claim) basis.
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Highlights
A protection plan to secure higher protection needed for your family at economical rates Optional riders for enhanced protection Unique joint life option to cover your spouse under the same plan Single / regular premium payment options
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"You have always ensured that your loved ones keep living a respectable life with their heads held high. But life can be uncertain. As a prudent family man, you need to secure your family's future and protect your pride and your family's self-respect. You need to have a plan to take care of your family if something unfortunate were to happen to you. With our Protection Plans, you can protect your family from uncertainties in life such as your unfortunate death or critical illness. And ensure that your family lives a life of selfrespect and dignity even in your absence .
Highlights
Unique protection plan that helps you to safeguard your family by securing your loan liability Different types of loans can be covered under this
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Optional add on rider to take care of loan liability in case of specified critical illnesses Decreasing sum assured to take care of reducing liability Single premium or limited term premium options to choose from
Option of joint life protection
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The well- informed rightly said and proves how important investments are in todays date and age. The question that we all fear is What about the risks attached? GOOD NEWS for all the people who are anxious the same way! HDFC Standard Life Insurance brings to you a safe investment plan that would take care of your savings and nurture your earnings.
Highlights HDFC Single Premium Whole Of Life Insurance Plan is a tailor-made plan well suited to meet your long-term investment needs. This participating plan offers
you the following benefits: Whole of life plan aimed at providing long-term real growth of your money Single premium investment plan In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender
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You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonus, which will provide your post - retirement income. The HDFC Personal Pension Plan is an insurance policy, which can benefit you in the following ways: Provides a post retirement income in your golden years Gives you the flexibility to plan your retirement date Gives you tax benefits on your premiums The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term, an additional Terminal Bonus may be paid depending on the performance of the underlying investment. Dont compromise on your self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Personal Pension Plan.
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place? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Unit Linked Pension is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride.
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, which will be used to provide your pension income. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage the retirement years.
Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your golden years. Dont compromise on self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Unit-Linked Pension. 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 Pension 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
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Choose your retirement age. Choose the premium you wish to invest, based on your retirement needs.
Choose the investment fund or funds you desire.
Unit Linked Pension Plus Lead a life of respect and dignity. Even after retirement.
Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Unit Linked Pension Plus is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. Stride into your golden years of retirement with dignity and pride. The HDFC Unit Linked Pension Plus gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments
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Regular Loyalty Units to boost your fund value every year Provides a post retirement income for life. Gives you the flexibility to plan your retirement date.
Gives you the freedom to invest premiums as per your preference.
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, which will be used to provide your pension income.
In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manage the retirement years. Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your golden years. Dont compromise on self-respect, ever. Go ahead, hold your head high and enjoy life with the HDFC Unit-Linked Pension Plus.
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 Pension 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.
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The HDFCSL Endowment Assurance Plan gives you: An ideal way to secure your long-term financial goals Valuable protection to your family by way of lump sum payment in case of your unfortunate death within policy term Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date Very flexible benefit options and payment options In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured (together with the attached bonuses) you had chosen. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term, an additional Terminal Bonus may be paid depending on the performance of the underlying investment.
3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Financial Step 2 Step 3 Planning Tool. Choose from any one of the 4 additional benefit options as per your requirement. Work out the premium payable and Sum Assured with our Financial Consultant.
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researched and selected investments Valuable protection to your family 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 greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family. Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your and your familys future. We will provide financial security for your family in your absence. 4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Choose the investment fund or funds you desire. Step 4
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The HDFC Unit Linked Endowment 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 family in case you are not around Flexible benefit combinations and payment options
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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 greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.
Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your and your familys future. We will provide financial security for your family in your absence.
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LONG-TERM GOALS SHORT TERM GOALS Provide adequate cover for Life, Critical Buying a car Illness or disability. Saving for big-ticket assets like your Saving for your marriage house. Saving for your childrens education Having a regular system for savings Vacation abroad A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your longterm as well as short-term financial goals A lump sum payment on survival up to maturity date Valuable protection to your family by way of
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in case of your
unfortunate death within the policy term. This is over and above any earlier payouts
Key Benefits
Total Policy Term 5 Yrs. 10 Yrs. 60% 10 40% Bonuses 40% 15 30% 30% Bonuses 25% 20 25% 25% 25% Bonuses 20% 25 20% 20% 20% 20% Bonuses 25% 30 15% 15% 15% 15% 15% Bonuses + Attaching + Attaching + Attaching + Attaching + 100% Sum Assured + attaching bonuses (Over and above the earlier payouts). 15 Yrs. 20 Yrs. 25 Yrs. 30 Yrs. Survival Benefit Death Benefit Within Policy Term Attaching -
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EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Step 2 Step 3 Financial Planning Tool. Choose from any one of the 4 additional optional benefits as per your requirement.
Work out the premium payable and Sum Assured with our Financial Consultant.
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Childrens Plan
Give your child the perfect start in life. As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much youll need when your child takes these important steps in life! Plan today to ensure a bright future for your child. Start building savings today with our HDFC Childrens Plan. So that your child is able to lead a life of respect and dignity with a secured financial future. The HDFC Children's Plan gives you: Invaluable financial support to your child Helps you customize an ideal plan for your child Provides you multiple options for multiple benefits The HDFC Childrens Plan is designed to secure your childs future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The company to give you good long-term returns invests the premiums, paid by you. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See Bonuses for more details).
EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and policy term using our Financial Planning Tool.
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Step 2 Step 3
Choose any one of the 3 plan options as per your child's requirement. Work out the premium payable and Sum Assured with our Financial Consultant.
Unit Linked Youngster Invest in your childs dreams, and secure your self-respect.
As a parent, your priority is your childrens 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 increasing 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 building savings today with our HDFC Unit Linked Young Star 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 gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments 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
This means we will continue to make your savings on your behalf, in your absence. The fund will be available for your familys use until the original Maturity Date. Use HDFC Standard Lifes excellent investment options to maximize your savings & maximize your childs achievements. We will provide financial security for your child
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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 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. 4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Choose the investment fund or funds you desire. Step 4
Unit Linked Youngster Plus . Invest in your childs dreams, and secure your self-respect.
As a parent, your priority is your childrens 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 increasing 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 building savings 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.
This means we will continue to make your savings on your behalf, in your absence. The fund will be available for your familys use until the original Maturity Date. Use HDFC
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Standard Lifes excellent investment options to maximize your savings & maximize your childs 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.
4 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the premium you wish to invest. Step 2 Choose the amount of protection (Sum Assured) you desire. Step 3 Choose the additional plan benefits you desire. Choose the investment fund or funds you desire. Step 4
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Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes
Group Term Insurance Group Variable Term Insurance Gratuity Superannuation or Leave Encashment
Group Term Insurance Whatever the business Its the people who make it a success. Everybody requires some type of life insurance, especially when others depend on them financially. The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for companies to reinforce their bond with their employees. The sort of needs, you, as an employer need to cater to could be in form of: Employee benefits Cover for housing or vehicle loans given by you to your employees A GTI cover for future service gratuity liability to be taken along with the HDFC Group Unit Linked Plan The HDFC Group Term Insurance is a cost-effective plan that addresses these needs. In addition you have the choice to opt for a GTI with an experience discount feature ("Profit Share"), where a discount is given on future premiums in case of favorable claim experience (subject to group size). The HDFC group term insurance plan will have the following structure: One year renewable term insurance plan One master policy issued covering all members of the group Sum assured is payable on death (either due to natural causes or accidents) The plan covers death due to any cause; accidental or natural, and hence is more comprehensive than Group Personal Accident Insurance. Several multinational corporations, large Indian companies, foreign banks and software companies have
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already chosen the HDFC Group Term Insurance, an innovative product from HDFC Standard Life Insurance, to protect their employees.
In respect of a death claim an intimation regarding death of a policyholder from a relative / nominee / or assignee is to be received. The facts required to be submitted are: 1. Date of death, 2. Reason and Place of Death, 3. Full details of policies held by the Life assured should also be submitted.
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Death claims are categorized as Non-Early Death claims and Early Claims. The procedure for processing these claims is different. Non-early Death Claim: Non-early Death Claims refer to death of the Life assured occurring after 3 years from the date of commencement of policy or Date of last revival / reinstatement If the policy is in force until death by regular payment of premiums, full sum assured is payable along with bonus (if it is a with profit policy). The following are the requirements for the settlement of the death claim:
Policy Document Death Certificate from the appropriate authority Legal evidence of Title, if the claimant is not an assignee / nominee Abridged claim Form (3783/A) Discharge Form in 3801, duly signed Assignment / Reassignment deed, if any Age proof, if age is not already admitted
Once these documents are received and if they are found in order, claim is settled and payment is made to the person entitled to. Early Claims: Early Claims refer to the death of Life assured occurring within 3 years from commencement of policy. The following forms are to be submitted duly completed:
Claim Form B: Statement from the medical attendants who last treated the deceased Life assured. Claim form B1: certificate of treatment issued by the hospital authorities where the deceased was treated last.
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Claim form E - certificate by the employer if the deceased was an employee. Claim form C - certificate of burial/cremation signed by a person who attended the funeral of the deceased. Where death takes place due to accident, the death has to be reported to the police and a FIR (First Information Report), police inquest report, and postmortem report (if conducted only) are to be submitted.
Wherever death takes place within 2 years from Date of commencement an enquiry is conducted to determine the genuineness of claim.
On the basis of these, the decisions to settle accidental benefits are taken.
Maturity:
If the life insured survives to the full term, then basic sum assured is payable. This payment by the insurer to the insured on the date of maturity is called maturity payment. In majority of the plans, full sum assured becomes payable along with Bonus as a maturity payment, unless survivals benefits are paid earlier as in a money back policy. At least 2 months before maturity date, information is sent to the life assured with a blank discharge form for signature & completion by him. It is to be returned to the office along with:
Original Policy document Age proof if age not already submitted Assignment /reassignment, if any.
Postdated cheques are submitted to the Life Insured on receipt of the above-mentioned requirements. Certain Relaxations in Settlements of the claims:
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Legally no claim is acceptable in respect of a lapsed policy or death of the Life assured occurring within 3 years from the date of commencement of the policy. However, some concessions are available and payment of claims are made
If the Life assured had paid at least 3 years' premiums and thereafter if premiums have not been paid, the nominees get proportionate paid up value. In the event of the death of the Life assured within 3 years and the policy is under the lapsed position, nothing is payable.
Other concessions are: If minimum 2 years premiums are paid and if death of Life assured occurs : 1. Within 3 months from the Date of first unpaid premium
Full sum assured along with bonus is payable subject to recovery of the premium already fallen due and the premium that falls during the policy anniversary. 2. Between 3 to 6 months from fully unpaid premium Only 50% of basic sum assured is payable. No bonus is paid and no arrears of premium are received. 3. 6 months to 1 year from fully unpaid premium Only notional paid up value is given
Loans On Policies
Policyholders are eligible to take loans on their policies subject to certain rules. The policyholder has to apply for a loan in a prescribed form and submit the Policy Bond along with the form duly completed. The loan amount is calculated depending on the Surrender Value (SV) that the policy would have acquired, and approximately 85% of the Surrender Value is given as loan.
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Rate of interested charged on loans taken on insurance policies varies from company to company and from time to time. A policyholder can repay the loan amount either in part or in full, any time during the term of the Policy. For LIC, the minimum repayment should be Rs. 50 and thereafter in multiples of Rs. 10.
If the loan amount is not repaid during the term of the Policy or early claim, the amount of loan plus interest, if any, will be deducted from the claim money payable and the balance amount will be paid to the claimant. In case of LIC , if the interest is not paid regularly every half year, then the interest is calculated on compound interest basis.
If the premiums are not paid regularly, that is, if the policy is not kept in force, there is a possibility that the loan amount along with accrued interest exceeds the surrender value. At that stage, foreclosure action is taken on the policy.
Generally, plans for Children or special plans like Jeevan Griha and Deferred Annuity/ Pension Plans as well as Money Back Plans etc. are not eligible for loans.
Nomination can be done at the inception of the Policy by providing details of nominee in the proposal form. However, if the nomination is not given at the beginning, the policyholder can give it later.
This nomination has to be effected by giving notice in a prescribed form to the insurer and getting it endorsed on Policy Bond. The Policyholder can do change of Nomination any time during the term of the Policy and any number of times. For this, the policyholder has to give a notice in a prescribed form to the insurer and get it endorsed at the back of the Policy. Further, the Policyholder can remove Nomination any time without giving prior notice to the Nominee.
Nomination can be done only by a policyholder, who is a major, and on a policy on his own life.
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Under Nomination, the Nominee gets only the right to receive the policy money in the event of the death of the Policyholder. Nomination does not pass on the property in the Policy. If Nominee dies when the Policyholder is still surviving then the nomination would be ineffective. Nomination has no effect if the Policyholder is surviving. If Nominee dies after the death of the policyholder but before receiving policy money, then also Nomination becomes ineffective and only the Legal Heirs of the Policyholder can claim money.
In the case of children policies, nomination is not done until the child becomes a major. Section39 of Insurance Act 1938 governs nomination.
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loss of bread earner. Thus began the concept of Life Insurance. With the development of social security and the welfare status of the societies, the business of life insurance assumed multidimensional. The disintegration in most of the societies, of the extended family system, and ancient social institution, which provided a natural umbrella of economic protection and emotional solace upon the death of the bread earner led to a greater acceptability of the doctrine of life insurance and the growth of life insurance industry around the globe. From a meager beginning of providing pecuniary protection on the death earner, it has moved to become major vehicle in the financial planning for both security and investment purpose. The industry hardly resembles 16th or 17th century. It would have been impossible to conceive then the development that has propelled extensive changes in the product field, customer attitudes and market environment.
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example a student loan, it is particularly advisable for housing loans when an acceptable policy may also cause the lending institution to give loan at lower interest rates.
Disability Benefits
Death is not the only hazard that is insured, many policies also provide disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installment spread over certain time period.
Tax Relief
Under the Indian tax act, the following tax relies are available 1. 30% of the premium paid can be deductible from your total income-tax liability.
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2.
100% of the premium paid is deductible from your total taxable income.
When these benefits are factored in, it is found that most policies offer return that are comparable/or even better than older savings modes such as PPF, NSC etc. Moreover, the cost of insurance is very negligible.
Two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). In line with the economic reforms that were ushered in India in early nineties, the Government set up a Committee on Reforms (popularly called the Malhotra Committee) In April 1993 to suggest reforms in the insurance sector. The Committee recommended Throwing open the sector to private players to usher in competition and bring more Choice to the consumer. The objective was to improve the penetration of insurance as a Percentage of GDP, which remains low in India even compared to some developing Countries in Asia. Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector,
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By any yardstick, India, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. With the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%).
WINDS OF CHANGE
Reforms have marked the entry of many of the global insurance majors into the Indian Market in the form of joint ventures with Indian companies. Some of the key names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in an admirable fashion by launching new products and Improving service standards.
The following are the key winds of change brought about by privatization. Market Expansion:
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There has been an overall expansion in the market. This has been Possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns - except by LIC to an extent there was no significant attempt to tap the rural markets.
Customer Service:
Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.
Channels of Distribution:
Until two years back, the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to consumers. Some of
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them are banc assurance, brokers, the Internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to banc assurance emerging as a significant distribution mechanism.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
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107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
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7 8 9 10
30.03.2001 SBI Life Insurance Company Limited . 02.08.2001 ING Vysya Life Insurance Company Private Limited 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 Metlife India Insurance Company Pvt. Ltd.
2 3 4 5
Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited
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03.08.2001
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INSURANCE BUSINEES:
Insurance business is divided into four classes: 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest.
Life Insurance:
Popular Products: Endowment Assurance (Participating) and Money Back
(Participating). More than 80% of the life insurance business is from these products.
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General Insurance:
Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products (please visit website of GIC for details)
2001
New products have been launched by life insurers. These include linked-products. For details, please visit the websites of life insurers.
INFORMATION
About the insurance industry, the following documents may be helpful: Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector); IRDA's First Annual Report - 2001
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offering risk management services to Indian corporate. The entrants into the insurance business in India can be divided into the following categories: (i) Major international insurance groups, (ii) large private groups such as the Tatas, Birlas and Reliance, who can enter the insurance industry on their own strength in terms of funds, but who require technical/ managerial support from foreign participants; the number of Indian groups belonging to this category is limited as insurance demands substantial investment in ventures with long gestation periods. Such groups may involve foreign insurance companies as they feel that this would be the best way to proceed, (iii) Indian groups/companies which are not financially very strong but would still like to enter this new field opening up. They can, however, enter the business only in joint ventures with foreign insurance majors. The foreign majors would provide technical, managerial and equity support. However, the amount of equity that would be required over the years is substantial and given the fact that insurance projects have long gestation, such groups may have difficulty in meeting fund requirements on their own at a later date; (IV) banks and financial institutions such as State Bank of India and ICICI.
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shall be treated as an investment and should be without any contingent liability for the bank. Finally, any scheduled commercial bank would be permitted to undertake insurance business as agent of insurance companies on fee basis, without any risk participation. Subsidiaries of banks will also be allowed to undertake distribution of insurance products on agency basis. However, it may be added here that marketing/ selling of insurance products is different from banking products, hence the selling techniques will be different.
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Foreign Partner:
Sun Life Assurance, Sun Life Financial's primary insurance business, has excellent ratings with the world's top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial services organisations in the world. Today, the Sun Life Financial Group of companies and partners are represented globally in Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda.
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Foreign Partner:
Established in 1848, Prudential plc. of U.K. has grown to be the largest life insurance and mutual fund company in U.K. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source: S&P's UK Life Financial Digest, 1998). ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. Their latest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life.
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OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products. Royal Sundaram Alliance Insurance Co. Ltd Royal Sundaram marks the coming together of Sundaram Finance; one of Indias most respected and trusted finance companies, and Royal and Sun Alliance, one of the largest insurance groups in the world. Royal Sundaram aims to bring the customer innovative products, developed and delivered on par with international standards. This vision is built on the foundation of expertise and superior service laid by the parent companies, well known as they are of creating benchmarks in customer loyalty and satisfaction. Sundaram Finance Founded in 1954, Sundaram Finance is one of Indias leading finance companies. Quality in lending, transparency in transactions, caring for the customer and commitment to be the best, have made Sundaram Finance one of the most respected finance companies in India. From being a leader in automobile financing, Sundaram Finance has expanded its range of financial services and products to encompass deposits, leasing, mutual funds and housing finance.
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Metropolitan Life
MetLife India proudly carries a 135-year-old legacy of helping build financial freedom for everyone. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife Companies serve approximately 12 million individuals in the U.S. and companies and institutions with 33 million employees and members, including
88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates, international insurance operations in 12 countries. The Joint Venture MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S, based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002. MetLife India was incorporated in April 2001 as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife India benefits from its affiliated company's 135-year old expertise and track record of establishing successful operations in emerging markets, in addition to the unique strengths of its Indian promoters. MetLife India offers a range of innovative products and aims to build financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices in 9 cities and an additional 1,000-outreach points through its distribution channel partners..
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GOVERNMENT REGULATION INSURANCE (IRDA): On the recommendation of the Malhotra Committee Indian Parliament passed Insurance Regulatory Development Act. (IRDA) in the year 1999. Government of India has set up on interim Insurance Regulatory Authority (IRA) for proper monitoring and control of the insurance industry. The IRA is headed by a chairman who also controller of insurance and Chairman of IBC. IRDA, for the time being prohibits 100% foreign equity in insurance. It requires the Indian promoters to invest either wholly in an insurance venture or team up with a foreign insurer with a cap of 26% of equity for a foreign partner. The Indian promoter is permitted to divest only after 10 years to the Indian public, through a public offering of shares, at which tune the equity structure will provide for equal participation between the Indian and foreign partner with a share of 26% each in the share capital. IRA is a sole authority responsible for awarding of licenses. There is no restriction on the number of licenses and no composite license for life & non-life business. Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority .The Authority is a ten-member authority consists of: a chairman 5 whole-time members 4 part-time members REGULATORY DEVELOPMENT ACT
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Before nationalization in November, 1972, a number of Indian and many foreign companies did general insurance business in India and this business was linked with their branches abroad. In addition, LIC, some mutual companies and cooperative societies also offered 68 Indian (including LIC) this product In fact, on the eve of nationalisation, and 45 non-Indian entities carried out insurance business in India. Nationalization saw the business of all National Insurance Co. Ltd. New India Assurance Co. Ltd. Oriental Fire and General Insurance Co. Ltd. United India Insurance Co. Ltd. These organizations absorbed by the General Insurance Company (GIC) with its four subsidiaries viz. These subsidiaries carry out the entire general insurance business in the country and cede 20% of it to GIC through the obligatory reinsurance premium on a quota share basis. GIC's direct business is only in the form of aviation insurance. The general insurance business is mainly of three types: Marine, Fire and miscellaneous
Miscellaneous.
As of now, fire insurance contributes the largest share in the business, although its share has been going down. Miscellaneous business has been the growth area with health insurance assuming increasing importance in terms of potential. Marine insurance is relatively less important in India. Acknowledging the trend of growth in miscellaneous business, GIC has recently come out with a host of new policies/plans/schemes. Personal Accident Policy for Visitors in Bank Premises, Mediclaim, Householders' Comprehensive Insurance Policy, Professional Indemnity Insurance, insurance against liability and contingency for members of stock exchanges and joint stock companies, Rejection Insurance on marine products, Nuclear
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Insurance Pool for insurance of nuclear power plants and other nuclear related risks, hut insurance, and Personal Accident Insurance Social Security Scheme are examples of such policies. GIC has also become active in mutual funds and housing as GIC Mutual Fund, GIC Grih Vitta Ltd. Floating of Loss Prevention Association of India Ltd., and the National Insurance Academy are some of the other long term customer friendly activities.
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IRDA NOTIFICATION INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (LICENSING OF INSURANCE AGENTS) (AMENDMENT) REGULATIONS,
2002 F.No. IRDA/Reg./ 10/2002.-- In exercise of the powers conferred by section 42 and section 114A of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations to amend the Insurance Regulatory and Development Authority (Licensing Regulations, 2000, namely:1 (1) These regulations may be called the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) (Amendment) Regulations, 2002. They shall come into force on the date of their publication in the Official Gazette. In the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000, after sub-regulation 3(2), the following sub-regulations 3(3) and 3(4) shall be added:(3)The designated person shall grant or renew the licence within a period of 3 months from the date of application. (4)The designated person shall, if the consideration of the application is likely to get delayed within 60 days of the receipt of the application, inform the applicant the reasons for such a delay, and the likely time it would take to do so. 3 In the Insurance Regulatory and Development Authority (Licensing of Insurance of Insurance Agents)
Agents) Regulations, 2000 after regulation 11, the following regulation shall be added:-
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12. From the date of coming into force of the Insurance Regulatory and Development Authority (Licensing of Corporate Agents) Regulations, 2002, the Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 20
Chapter-5 Financial Consultant Recruitment CERTIFIED FINANCIAL CONSULTANTS AND CORPORATE AGENTS
In HDFC Standard Life the policies
channels.
Definition of An Agent
The Indian Contract Act of 1872 defines an agent as a person employed to do any act for another or to represent another in dealing with a third person.
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Functions of an Agent
The duties and functions of an agent are as follows: 1. 2. 3. 4. 5. 6. To contract business according to the directions given by the person/company they represent. To exercise reasonable and diligence and skill while conducting business. material facts, etc.). To perform his duties personally. To submit paper accounts to the person/company. To act in good faith towards the person/company (disclose all
Possesses the minimum educational qualification of a pass in 12th Standard of equivalent examination conducted by any recognized Board/Institute of Education. If the person resides in a place with a population of less than five thousand, he should at least be 10th standard pass or equivalent examination.
Has not been found to of unsound mind by a Court of competent jurisdiction. Has not been found guilty of criminal misappropriation or criminal breach of trust or of cheating or of forgery or of an abatement of or attempt to commit any such offence. Has not been found guilty of, or has not knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured. Has not been found violating the code of conduct as may be specified by the IRDA regulations.
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Licensing Process
The licensing process would start with the insurer sponsoring a candidate for practical training. On completion of the mandated training, the applicant has to make an application in specified format for undergoing a written exam. On clearing of both his written and oral exam, the applicant will make an application to the designated person of the sponsoring insurer. Based on meeting all the above requirements and submission of application fee, the designated person will issue the license along with the identity card. The license is valid for a period of 3 years unless terminated or surrendered. For any renewal of license, the agent needs to undergo additional 25 hours of training in either life or general from an approved institution. If the designated person refuses to grant or renew a license under this regulation, he shall give the reasons therefore to the applicant.
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Every agent shall Identify himself and the insurance company of which he is an insurance agent, disclosing his certificate of license to the prospect on demand for the purpose of soliciting or procuring insurance business. Disseminate the requisite information in respect of insurance products offered for sale by his insurer, and also by other insurers in the market, taking into account the needs of the prospect for insurance before offering any insurance product. Disclose the commission offered to him in respect of the insurance product offered for sale. Determine the premium to be charged by the insurer for the insurance product offered for sale. Explain to the prospect in regard to information required in the proposal form by the insurer, and also the importance of disclosure of material information to the insurer. Bring to the notice of the insurer any habits or income of the prospect, in the form of a report (may be called as Insurance Agents Confidential Report) along with every proposal submitted to the insurer, any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect. Inform the prospect regarding the acceptance of the proposal by the insurer promptly. Ensure that all possible steps for delivery of the policy bond from the insurer to the prospect within 45 days of the date of proposal (insurer is ultimately responsible for the delivery of the policy documents). Obtain the requisite documents (including medical reports in case of life insurance business) at the time of filing the proposal form with the insurer; and other documents asked by the insurer for completion of the proposal. File with the designated person, the certified copy of his agreement with the insurer (copy of the agreement shall be certified by any officer of the insurer authorized by the designated person) within fifteen days from the date of his appointment as insurance agent as mentioned in regulation 4 above.
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Handover a copy of the proposal form or any other form to the proponent before submitting such form to the insurer for purchase of insurance contract. Abide by any matter that has been notified by the Authority in its notifications.
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Remain or become a director of an insurer carrying on insurance business in India. Obtain the signature of the proposer, or the signature of the life assured, or the signature of any other relevant person, in any form, which remains unanswered or blank to the questions therein at the time of such signature. Every insurance agent shall, with a view to conserve the insurance business already procured from all persons who have become policyholders of the insurer through him.
Advise every policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be, offering necessary assistance in this behalf wherever necessary. Make every attempt to ensuring remittance of the premiums by the policyholders within the stipulated time. Make every attempt to prevent the lapsation of policy to enable the policy to remain in force for the full benefits under the policy. Render necessary assistance to the policyholders or claimants or beneficiaries in filling and filling claim forms and in complying with the requirements laid down in relation to settlement of claims by the insurer. An insurance agent shall comply with sections 40, 40-A, 41, 42, 44, 48-A, 102 and 103 of the Act, or regulations or notifications of the said Act or of any relevant Act, or of any notification regarding code of conduct, or any direction by the Authority. Explanation: In this regulation, any other for means such forms, which shall be supplementary to the proposal form, which is furnished to the insurer by the proponent at the request of the insurer. For example, the proponent may inform in a form to the insurer to reduce the sum assured or the plan of assurance or the mode of payment of premium, after the proposal form has been furnished to the insurer before the acceptance of insurance contract.
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Termination of Agency
The license of an agent will be terminated in the event of Cancellation or non-renewal of the license. The agent acquiring any of the following legal disqualification 1. 2. 3. 4. 5. Permanent incapacity Found of unsound mind by a court Conviction of a criminal misappropriation Criminal breach of trust Cheating or forgery
6.
Please note that the total commission payable in the first 5 years is capped at 60% of the annual premium. This means that if we pay 40% in year 1, we can only pay a further 20% between years 2 and 5 inclusive (Example 40% in year 1 followed by 5% in years 2 to 5).
Personal Competencies required Interpersonal sensitivity Planning and organizing Professionalism & Business Integrity Decision making & judgment Customer focus Contribution to Results (including Preference for Action, Achievement Drive) Communication & influencing Decision making and judgment Strong Network in the NCR Result oriented dedication
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Starting The Project: The project was started by Understanding the products and the selection criteria specified by IRDA to become a Agent of the company, after getting familiar with the products of the company and the norms of IRDA the task was to recruit the Financial Consultants for the company with a desired Profile.
Market Segmentation:
Market is full of peoples but every candidate taken from the market is not a promising candidate hence market segmentation is essential to employ quality people to have quality results. Selling Insurance requires a good understanding about the policies hence following profile were chosen to give the agency they are: 1 Charted Accountants 2.Mutual Fund Advisors 3 Tax Consultants 4.High Income Group
Tele calling
After Market segmentation Tele calling was the medium to interact with the peoples on phone line and then fix the appointments for the further conversation. Tele calling was done on the data provided by management of the company and some data was collected from the sources like Just Dial Services, Internet, Display Boards, and References. While Tele calling a proper pitch was developed to talk to peoples because it is a job to perform
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as the best offering which a person can think of, while offering the same thing a different way was developed to talk to people having different background.
Cold Calling
Cold calling was also tried as a tool for sales promotion but it has given results in very few cases, the reason behind less success of this source was unavailability of the people at their office or they are busy and few of them take cold calling casually. The profile that was targeted requires proper channel to contact them and move forward. Fixing Appointments and meeting People While Tele calling a proper pitch is maintained to meet the persons requirement by offering them the best what they want, when a person is convinced on phone, a
appointment was fixed to have further discussion about the products. After fixing the appointments it is very important to reach in time and proper documentation is required about the appointments so that one should not miss an appointment in confusion. Supporting Documents really help a lot while meeting peoples, as people believe in the proofs. While taking to people it was observer that with the information about the industry sometime making a relationship with them by any means helps a lot in doing a job.
Follow Ups
Follow up was instrumental in the entire project this is the thing to which I will like to give utmost importance. As selling insurance and appointing Financial consultants requires two or more than two meetings hence proper follow up is required to have good results. The reason behind giving so much importance to follow up is any person who is targeted to offer the agency may not in a position to take the agency at that point of time or he wants to weigh all the alternatives available in the market. In such cases follow-up becomes the Key to Success.
Final Documentation
Final Documentation is done when a person gets ready to take the agency. This step requires all the basic formalities to be completed. After the documentation, the training
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starts and after taking a training of 50 hours specified by IRDA a candidate has to appear for the test and once he passes the test he/she becomes liable to sell Insurance
Chapter-6 Funds and questionnaire Which investment funds can I invest in?
The policy is fully unitised with a range of funds to match your needs and approach to risk. (By risk, we mean the likely volatility in the value of units in the fund.) Each investment fund is composed of units. All the units in a fund are identical. You can choose from the following funds:
Liquid fund
The Liquid fund invests 100% in bank deposits and high quality short-term money market instruments. The fund is designed to be cash secure and has a very low level of risk; however, unit prices may occasionally go down due to the use of short-term money market instruments.
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Secure Managed
The Secure Managed fund invests 100% in Government Securities and Bonds issued by companies or other bodies with a high credit standing, however a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. This fund has a low level of risk but unit prices may still go up or down.
Defensive Managed
15% to 30% of the Defensive Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund.
The fund has a moderate level of risk with the opportunity to earn higher returns in the long term from some equity investment. Unit prices may go up or down.
Balanced Managed
30% to 60% of the Balanced Managed fund will be invested in high quality Indian equities. The remainder will be invested in Government Securities and Bonds issued by companies or other bodies with a high credit standing. In addition, a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the higher proportion it invests in equities. Unit prices may go up or down.
Growth fund
The Growth fund invests 100% in high quality Indian equities. In addition, a small amount of working capital may be invested in cash to facilitate the day-to-day running of the fund. The fund has a higher level of risk with the opportunity to earn higher returns in the long term from the investment in equities. Unit prices may go up or down.
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SAMPLE QUESTIONNAIRE
(GENERAL PUBLIC) Name: Address: Age: ________________________________________ ________________________________________ ________________________________________
1. Are you aware of Life Insurance Policies and its benefits? Yes 2. Are you insured? Yes No No
3. Which Pvt. Insurance Co. you rate as the best in the insurance sector?
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LIC
4. If HDFC Standard Life Insurance, then which distribution channel you prefer? And why? Bank assurance Direct Marketing Tied Agency/ Financial Advisors
--------------------------------------------------------------------------------------------5. Are you satisfied with the services of the HDFC STANDARD Life Insurance Company? Yes No
(Signture)
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SAMPLE QUESTIONNAIRE
(PROSPECT ADVISORS) Name: Address: Age: ________________________________________ ________________________________________ ________________________________________
Contact No: ________________________________________ 1. Gender a) b) Female 2. Marital Status a) Married b) Unmarried 3. Educational Qualification a) Any professional degree (MBA/CA) b) Post Graduate c) Graduate d) Under Graduate/XII or equivalent 4. Occupational background a) Govt/ state services b) Pvt. Job c) Professional C.A/M.B.A d) Others (Specify) Male
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5. Annual household income a) 5 8 lakh b) 3 5 lakh c) 1 3 lakh d) < 1 lakh 6. Are you interested in making extra income? a.Yes b. No 7. Will you be interested in getting into a business with zero investment and high returns? a) b) Yes No
8. Are you aware of Life Insurance Policies and its benefits? Yes No
9-Which company would you like to work with? LIC HDFC Standard Life Others 10. HDFC Standard life Insurance Company caters to a attractive payments, instant recognition and career progression of advisors. Will you be interested in joining HDFC Standard life Insurance Company? a) b) Certainly Probably c) Definitely Not ICICI Prudential Max New York Life
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11. Which mode of training would you like opt for? a) Class Room training b) Manual Training c) Online Training
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RESEARCH OBJECTIVE:
To study the recruitment procedure of Insurance Industry and to understand consumer perception with regard to the Insurance Sector and its upcoming growth stratum.
SAMPLE DESIGN:
The study is conducted upon the Sample survey is conducted in Delhi and its suburbs with the help of Simple random sampling method.
SAMPLE SIZE:
100 People
a) PRIMARY SOURCES- Sample survey, Personal Interviews, Management meetings, Face to face communication with lawyers, Chartered Accountants and Property Dealers.
b) SECONDARY SOURCES- Internet archives, Official journals, magazines, Insurance literature, Web portals.
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. Chapter-8
LIMITATIONS
Survey is restricted to Delhi and its suburbs only. The study is limited to Lawyers, Chartered Accountants and Property dealers and home makers only. The study was undertaken on a small account due to paucity of time and resources. The sample size chosen after random selection through tale calling thus results of the low as compared to direct interaction.
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SAMPLING DETAILS Sample Size 100 Samples were selected on random basis
(GENERAL PUBLIC)
QUESTION 2 : ARE YOU INSURED ANS : RESPONSE Yes No Total Yes No NO. OF RESPONSE 40 60 100
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QUESTION 3. WHICH PVT. INSURANCE COM. YOU RATE AS THE BEST IN THE INSURANCE SECTOR ? ANS. ICICI Prudential Max New York Life RESPONSE ICICI Prudential LIC HDFC Max New York Life TOTAL NO. OF RESPONSE 20 30 30 20 100 LIC HDFC Standard Life
QUESTION 4. If HDFC Standard Life Insurance, then which distribution channel you prefer? ANS. Bank assurance Direct Marketing Tied Agency/ Financial Advisors RESPONSE Bank assurance Direct Marketing Direct Marketing TOTAL NO. OF RESPONSE 40 20 40 100
QUESTION 5. ARE YOU SATISFITHED WITH THE SERVICE OF THE HDFC STANDARD LIFE INSURANCE COMPANY? Yes No
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QUESTION 2 : MARITAL STATUS Married RESPONSE married unmarried Total Unmarried NO. OF RESPONSE 80 20 100
QUESTION 3 : EDUCATION QUALIFICATION Any professional degree (MBA/CA) Graduate Post Graduate Under Graduate
NO. OF RESPONSE 30 40 20
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10 100
QUESTION 4 : OCCUPATIONAL BACKGROUND Govt./ state services Professional C.A/M.B.A Pvt. Job Other (specify)
QUESTION 5 : ANNUAL HOUSEHOLD INCOME 5 8 lakh 1 3 lakh 3 5 lakh 1ess then1 lakh
RESPONSE More then 5 lakh 3 - 5 lakh 1 3 lakh Less then 1 lakh Total
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QUESTION 7 : HDFC STANDARD LIFE INSURANCE COMPANY CATERS TO A AATTRACTIVE PAYMENT, INSTANT RECOGNITION AND CAREER PROGRESSION OF ADVISIRS. WILL YOU BE INTERESTED IN JOINING HDFC STANDARD LIFE INSURANCE COMPANY ? Certainly Definitely Not Probably
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QUESTION 8 : WHICH MODE OF TRAINING WOULD YOU LIKE MOST ? Class Room training Online Training Manual Training
Chapter-10
SAMPLING DETAILS Sample Size 100 Samples were selected on random basis
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Sample size taken -100 No. of response to aware of life insurance police 1 - yes 65% 2 - No 35% The analysis of data collection shows the 65% people aware of life insurance police and 35% people are not aware
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Sample size taken -100 No. of person who are insured 1 - No 60% 2 -Yes 40% The analysis of data collection shows the 40% people are insured and 60% are not insured.
QUESTION 3. WHICH PVT. INSURANCE COM. YOU RATE AS THE BEST IN THE INSURANCE SECTOR ? ANS. ICICI Prudential Max New York Life LIC HDFC Standard Life
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Sample size taken -100 1 - 20% people in ICICI 2 -30% people in LIC 3 -30% people in HDFC 4 - 20% people in max new York life
QUESTION 4. If HDFC Standard Life Insurance, then which distribution channel you prefer? ANS. Bank assurance Direct Marketing
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Sample size taken -100 1 - 40% people prefer the bank assurance 2 - 20% people prefer direct marketing 3 - 40% people prefer tied agency/financial advisors The analysis of data collected shows the 40% people prefer the bank assurance, 20% people prefer direct marketing, 40% people prefer tied agency/financial advisors
QUESTION 5. ARE YOU SATISFIED WITH THE SERVICE OF THE HDFC STANDARD LIFE INSURANCE COMPANY? Yes No
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Sample size taken -100% 1 - 95% people are satisfied with the service of HDFC standard life insurance company 2 - 5% people are not satisfied with the service of HDFC standard life insurance company
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Sample size taken -100% 60% persons are male 40% person are female The analysis of data collected shows the 60% people are male and 40% person are female
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Sample size taken -100% 1 - 80% people is married 2 20% people is unmarried The analysis of data collected shows the 80% people is married and 20% people is unmarried.
QUESTION 3 : EDUCATION QUALIFICATION Any professional degree (MBA/CA) Graduate Post Graduate Under Graduate
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Sample size taken -100% 1 30% people are professional 2 40% people are post graduate 3 20% people are graduate 4 10% people are under-graduate
QUESTION 4 : OCCUPATIONAL BACKGROUND Govt./ state services Business man Pvt. Job
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Sample size taken -100% 1 30% Govt./state service 2 40% private job 3 30% Business man
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1 3 lakh
Sample size taken -100% 1 30% persons income more then 5 lakh 2 40% persons income are 3-5 lakh 3 20% persons income are 1-3 lakh 4 10% persons income are less then 1 lakh
QUESTION 7 : HDFC STANDARD LIFE INSURANCE COMPANY CATERS TO A AATTRACTIVE PAYMENT, INSTANT RECOGNITION AND CAREER PROGRESSION OF ADVISIRS. WILL YOU BE INTERESTED IN JOINING HDFC STANDARD LIFE INSURANCE COMPANY ?
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Probably
Sample size taken -100% 1 70% person say certainly 2 25% person say probably 3 5% person say definitely not
QUESTION 8 : WHICH MODE OF TRAINING WOULD YOU LIKE MOST ? Class Room training Online Training Manual Training
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Sample size taken -100% 1 30% person like class room training 2 30% person like manual training 3 40% person like online training
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More Number of Policies: - It was observed that if a company has more number of
policies designed to cater the specific need of people then it would have a different impact on people. HDFC Standard Life has a lot of options available to cater the needs of different segments but if they can provide the policies under the specific name then it would be very beneficial in sales promotion. Company also needs to concentrate on the competitors to have some good policies to beat the close competitors. Service Satisfaction: - Service satisfaction is very important in the service industry and HDFC as a group has a good name in rendering quality services but due to some loopholes in some branches the services gets affected and hence have wrong impact on customers mind about the whole group hence service has to be given the utmost important to create goodwill in the market.
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Chapter-10 Conclusion
Today marketing must be understand not in the old sense of making a sale telling and selling-but in the new sense of satisfying customer needs. While selling life insurance one does not sell any tangible product that`s why it becomes very essential to understand customer needs, which will help to distribute and promote the product effectively and it will be easy to sell the products. Life Insurance is all about selling life, for which one should be very realistic and practical because its a matter of a persons life. Selling of insurance policies is not an easy job it is all about convincing people, winning their confidence and assuring them for a safe future.
HDFC Standard life Insurance is most respected private life insurance company. In very short time it has won the confidence of people because of its unique features like good services and promising future in insurance sector. While working on this project I came to know facts about insurance business, that there is a cutthroat competition and every company is trying its best to sell the products. Hence, it is required to strengthen the selling chain so as to compete in the market, as a part of my project I have tried to strengthen the chain by employing few people for the company with a desired profile. I have discussed various issues in the project, which should be taken care of while recruiting the financial consultants for the company.
Lastly, I would like to conclude by saying quoting the following quote, which signifies the importance of Life insurance in ones, Life. Iron is strong but fire melts it, Man is strong but death is stronger, So survive death through Life Insurance
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Chapter-12 BIBLIOGRAPHY
The data has been collected from the following sources SEARCH ENGINES WWW.GOOGLE.COM
www.irda.com www.hdfcinsurance.com
Life Insurance revised addition, Insurance Institute of India WEB SITES
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