PROJECT REPORT ON

PREPARED BY: RAVAL RIDDHI PRAFULCHANDRA. ROLL NO. 510546892 SEAT NO.

SUBMITTED TO: SIKKIM MANIPAL UNIVERSITY KAMANIA COMPUTER ACADEMY PVT. LTD. BUSINESS PLAZA , OPP. PARIMAL SCHOOL RAJKOT. STUDY CENTRE CODE :- 0690 GUIDED BY: PROF.Mr. AJESH KAMANIA

DECLARATION
I undersigned Miss. Raval Riddhi Prafulchandra a student of 4th

semester hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Prof. AJESH KAMANIA of SIKKIM MANIPAL UNIVERSITY RAJKOT CENTRE. This work has not been submitted to any other university for any examination.

Date: Place: Sign: -

(Raval Riddhi P)

PREFACE
As a student of M.B.A. Semester IV, I feel glad to present report on HDFC STANDARD LIFE INSURANCE CO. LTD. As a partial fulfillment of the syllabus of 4th semester every student have to undergo summer training and to prepare a fair report on the same. The main purpose behind this industrial training is to give practical knowledge with the rich theoretical background. Practical training makes student understand about the problems, working, administration, strategies, policies, etc of the concerned unit. I accordingly have undergone the training in one of the esteemed company in insurance sector. And I am very much glad to be part of HDFC STANDARD LIFE INSURANCE.

ACKNOWLEDGEMENT
To all those work and ideas have been so helpful in writing this report. I wish to express my sincere gratitude. I give my special vote of thanks to Mr. Ashish Doshi and Mr. Harshit who have given me co-operation, guidance and a very precious time given to me from their busy schedule. I am also thankful to all other Business Development Managers (BDMs) of HDFC STANDARD LIFE INSURANCE, who have remained with me for helping me out at every point of time. I convey my sincere thanks to my project guide Prof. Hiten Shah and all other faculty members for their constant help and encouragement given to me. At last, I would like to thank my friends, classmates and family members whose help lead this project to be in complete form.

INDEX
SR. NO.
1. 2. 3. 4. 5. 6. 7. 8. 9.

PARTICULARS
GENERAL INFORMATION PERSONNEL DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT SWOT ANALYSIS CONCLUSSIONS AND RECOMMENDATIONS RESEACH FINDINGS CONCLUSION BIBLIOGRAPHY

PAGE NO.
6 26 39 62 71 73 75 82 83

PROJECT AT GLANCE
NAME REGISTERED OFFICE :- HDFC STANDARD LIFE INSURANCE :- Ramon House, H.T. Parekh marg, 169, Backbay Reclamation, Churchgate, Mumbai 400 020.

CORPORATE OFFIECE :- 5th floor, The IL & FS Financial Center, Plot No. C-22, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400 051. TELEPHONE FAX WEBSITE PRODUCT BANKERS FORM OF ORGANISATION ACCOUNTING YEAR WEEKLY OFF YEAR OF ESTABLISHMENT :- (022) 653 3666 :- (022) 653 3655 :- www.hdfcinsurance.com :- Insurance Policies :- HDFC BANK.

:- Public limited company :- April March :- Sunday :- August 2000

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

Founded in 1977, HDFC is today the market leader in housing development finance in India and has extended financial assistance for more than 19 lakh homes. HDFC has over 120 offices in India presently. It also has one international office in Dubai and service associates in Bahrain, Kuwait, Qatar, Saudi Arabia and Sultanate of Oman. HDFCs asset base amounts to over Rs. 21,450 crore. Its financial strengths is reflected in highest safety ratings of FAAA and MAAA awarded by CRISIL and ICRA two of Indias leading credit rating agencies-respectively, for the last 7 years consecutively. It has a depositor base of over 13 lakh depositors and a deposit agents force of over 50,000. Of the total deposits, 82% are sourced from individual and trust depositors, which demonstrates the tremendous confidence that retail investors have in the company. HDFC promoted companies have emerged to meet the investors and customers needs. HDFC bank for commercial banking, HDFC Mutual Fund for mutual fund products, HDFC Standard Life Insurance Company for life insurance and pension products and HDFC Chubb for general insurance products. Being an institution that is strongly committed to the highest standards of quality and excellence, HDFC has won several accolades in the past few years. One such award is the Ramkrishna Bajaj National Quality Award for the year 1999. this award was instituted to award recognition to Indian companies for business excellence and quality achievement. HDFC is the only company so far to receive this award in the services category.

OTHER AWARDS

YEAR

AWARD

1991 1995 & 1996 Asiamoney magazine 1997 eusromoney 1997 today 1998

United Nation Scroll Of Honour Indias best managed company by

Most competitive Indian company by

One of the best Indian boards by business

Excellence in service industry by Indian institute of marketing management & top management club( pune)

plus

Shield for the best presented accounts for banks and financial institution over 11 times (last 8 years in row)

STANDARD LIFE ASSURANCE COMPANY (SLAC)

Founded in 1825, Standard Life has been at the forefront of the UK insurance for 177 years by combining sound financial judgement with integrity and reliability. The largest Mutual Life Company in Europe, it has operations in the United Kingdom, Ireland, Spain, Germany, Austria and Canada with representative offices in Hong Kong and China. One of its successes was the launch of Standard Life Bank on 1st January, 1998. The introduction of its innovative mortgage product in January 1999 had an immediate impact on the UK market, accounting for 11% of all new lending within the first operational year. The current deposit base of the bank is US $ 7.1 billion. Standard Life has total assets of over US $ 100 billion and new premium income last year of US $ 9.2 billion. Its UK investment portfolio accounts for approximately 2% of all shares listed in the London Stock Exchange. It is one of the few insurance companies in the world to receive AA rating from two of the leading international credit rating agencies, Moodys and Standard & Poors. The latter described Standard Lifes ability to meet its claims obligations as overwhelming under a variety of economic conditions. Not surprisingly, Standard Life is rated as one of the strongest companies in the world, in financial terms. The quality and values Standard Life brings to

10

this venture are immense.

The companys reputation in the UK market

remains unrivalled. Besides being voted company of the year for overall service, for the third consecutive year, Standard Life was recently voted company of the decade by independent brokers.

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AWARDS

Planned savings/Sherwood awards Company of the decade Money marketing- 1000 broker survey award Company of the year Best group pension provider Best life investment product provider Best personal pension provider Personal investment marketing show Company of the year Personal advisor provider of the year awards Best pension provider of the year Golden award for mortgage provider of the year 2000 IFA association service awards 5 star life pension provider 5 star investment provider Planned savings/ Sherwood products awards First for product excellence personal pension First for product excellence _ executive pension First for product excellence group pension Planned savings/ Sherwood service awards First for service excellence pension 1997, 1998, 1999 1998 & 1999 1998 & 1999 1998 & 1999 1996, 1997, 1998, 1999 1997, 1998, 1999 1998, 1999, 2000 1996, 1997, 1998, 1999. 1999 & 2000 1998, 1999 and 2000 1998, 1999, 2000 1997, 1998, 1999, 2000 1999

12

13

HDFC STANDRAD LIFE INSURANCE CO. LTD.

HDFC STANDARD LIFE INSURANCE is a joint venture relationship taken place between Housing Development Finance Corporation (HDFC) Ltd. And Standard Life Assurance company (SLAC) basically for 3 years in October 1995. It was clear from the outset that both companies shared similar values and beliefs and as a strong relationship came into existence. Strengthening the relationship STANDARD LIFE Purchased 5% stake in HDFC. Then next three years were full of uncertainties on account of some delays in passing the IRDA( INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY) Act in parliament. But the 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. By the end of 1999, company decided to take their operations to next stage. As a result 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.

14

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.

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INCORPORATION

The company incorporated on 14th August 2000 under the name of HDFC STANDARD LIFE INSURANCE COMPANY LIMITED. The main aim of the company was to be first private company to get license to work as life insurer after LIC of India. Finally the dreams and aims came true. On 23 rd October 2000 HDFC

Standard life insurance was the only company to be granted the certificate of registration by IRDA. In the stocks of HDFC Standard life, HDFC is having major share with 81.4% share. While Standard life owns 18.6% share in the company. 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 company's in India are measured.

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MISSION
HDFC Standard life has a very simple purpose behind all them do- customer satisfaction. If they can offer customer the value for their money, if they can fulfill their needs with innovative life insurance products, and can delight them with superlative service, they believe they are successful. They aim to be the top new life insurance company in the Indian 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

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VALUES
As mission of the company is to be the best new life insurance company in India following values guides the company. Underlying every product they offer, every service they render is an ethos of security, trust and innovation.

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. We will be doing 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.

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THE STORY IN NUMBERS

First policy sold & soft launch Full scale launch in Mumbai Launch in 49th city of operations Number of agents Premium income (31/3/2003) Number of policies sold Sum assured

December 2000 January 2001 April 2003 10,500 + 132 crores 1,50,000 + 5000 crores +

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Sister concern

HDFC Standard Life Insurance company HDFC Securities Intelenet Global Service Limited Credit information bureau (India) Limited HDFC Asset Management Company Limited HDFC Reality Limited HDFC Chubb General Insurance Company Limited HDFC Bank

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WHY LIFE INSURANCE

Life insurance has come a long way from the earlier days when it was originally conceived as a risk covering media for short periods of time, covering temporary risk situations, such a sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations including:a) Temporary needs / threats. The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc. b) Regular savings. Providing for family and oneself, as a medium of long term exercise (through a series of regular payment of premiums) This has become mare relevant times as people seek financial independence for their family. c) Investments. 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. d) Retirement.

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Provision for later years becomes increasingly necessary, especially in a changing cultural & social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

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PRIVATIZATION OF INSURANCE SECTOR

The Insurance Regulatory and Development Authority have made a statutory body to regulate the insurance sector. The authority derives its jurisdiction & powers from Insurance Regulatory & Development Authority act 1992. The IRDA came into existence based on the recommendations of the Malhotra committee. This committee was appointed under the chairmanship of late Shri. R.N. Malhotra a former governor of R.B.I. The committee made a number of recommendations for the re formation of insurance sector. One of the most prominent recommendations was privatization of this sector. Establishment of a statuary regulatory body, conversation of L.I.C. into a company, making all the subsidiaries of G.I.C. independent, restriction of G.I.C. only to crop insurance and re insurance were other recommendation The committee also recommended that the capital of L.I.C. and G.I.C. both be raised to 200 crores, of which government should hold only 50%. The remaining capital should be generated from public after reserving some portion of it for employees of this organization.

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SIZE OF THE UNIT & FORM OF AN ORGANIZATION

As per the revised industrial policy of 1991, Indian industries are divided into four basic categories as per the investment. Tiny scale industry Small scale industry Medium scale industry Large scale industry HDFC STANDARD LIFE INSURANCE CO. LTD. Can be considered as a large scale industry. Again the business units can also be divided in 3 ways as per the ownership: Sole Proprietorship Partnership firm Joint Stock company

HDFC Standard Life Insurance is a joint stock company, rather it is a joint venture between HDFC Ltd. & Standard Life Assurance Co.

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ORGANIZATIONAL STRUCTURE
M.D.&CEO

ACTUARY

GM Distribution & Head retail sales, group sale, customer

HR

I.T.

Group sales

Retail sales

Broker

Banc assurance

Custo -mer servi -e

Branch manager

Resident manager

BDMs/ CAMs

FCs

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PERSONNEL DEPARTMENT

Introduction Recruitment & Selection Job Description & Job Specification Training & Development Wage & Salary administration Promotion Performance Appraisal Employees benefits & services Industrial relation

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INTRODUCTION

The importance of personnel management is being increasingly realized in industrial & non-industrial organization both in India and abroad. Personnel Management is the sub area of general It concentrates on the human activities, elements of It is primarily concerned with manpower management.

general management. resources or inputs.

Today, the importance of personnel management has increased because organization have realized that human resources are more valuable than other resources and that their proper management can tremendously help the organization in optimizing the use of available resources.

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HR HEAD Mr. Prashant Khambhaswadker.

RECRUITMENT & SELECTION

Recruitment forms the 1st stage in the process which continues with selection and cease with placement of candidates. It is the 2nd step in procurement function after manpower planning. Recruiting is the discovering of potential applicant for actual or anticipated organization vacancies whereas selection procedure is concerned with securing relevant information about the applicant. At HDFC Standard Life Insurance, the sources of recruitment for BDMs are :

Reference by other BDMs Placement Agencies

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PROCESS OF SELECTION

Manpower planning process Data bank sourcing Preliminary short listing Calls for interview Interview Employment form Medical test of 6 hours by doctors panels of HDFC Selection

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JOB DESCRIPTION AND JOB SPECIFICATION

JOB DESCRIPTION
It is a written record of the duties, responsibilities and requirements of a particular job. In short, it tells about what Is to be done, how it is to be done, and why is is to be done.

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JOB SPECIFICATION
Job specification in simple words means the educational qualifications and other skills required in a person mentioned specifically at the time of appointment of an employee. At HDFC Standard Life Insurance, for agents job description includes looking after the work of their team of financial consultants, helping them out in bringing more and more business through personal approach to the person who is interested in taking the insurance. As he is accountable to his branch head and also to other higher authorities he has to be constant alert in motivating the consultants in bringing business for the company. For Financial Consultants job description includes try and approach more and more people and help them to know about the policies and services offered by HDFC Standard Life Insurance. He is also given some minimum targets to be achieved in terms of policies and sum assured. At HDFC Standard Life Insurance job specification is not so important for BDMs as there are fresh graduates, MBAs working as BDMs. But the only thing is that they have to satisfy the interviewer that he would be able to bring business for the company. For consultants the minimum educational qualification specified by Insurance Regulatory & Development Authority (IRDA) is 10+2 or equivalent where the applicant resides in a place with a population of 5000 or more as per the last census. In any other place, the applicant should satisfy a minimum educational qualification of 10th standard or equivalent. The only thing considered while selecting a BDM or financial consultant is that will he be able to manage to being the business or not? And also what is his contact base as contact base is more important in insurance business. If a

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person is having very large contact base and he is having very good convincing power then thats all. His chances of getting selected increases.

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TRAINING & DEVELOPMENT

Every organization needs to have well-trained and experienced people to perform the activities that have been done. In a rapidly changing society employee training and development is not only and activity that is desirable but also an activity that an organization must commit resources to, if is is to maintain a viable and knowledgeable work force. At HDFC Standard Life Insurance, training is on a continuous basis. Training is given to enhance to skills of the BDMs and financial consultants which helps them in convincing the customers in better way. As insurance is not a specific product it requires good skill to be sold. Every new BDM is given induction training, which may range from 2 7 days. Moreover a training relating to their individual development is also given. This may include presentation skill training, communication skills training, and many other training related to selling a policy and other policies. A recent example can be that Standard Life executives from U.K. called one BDM from all the branches at Bangalore for the training purpose. And the list goes on and on because this insurance industry is highly competitive. So to retain the market share one needs to be adequately trained. So we can say that training and development is of great importance at HDFC Standard Life Insurance.

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WAGE & SALARY ADMINISTRATION

The basic purpose of wage & salary administration is to establish and maintain equitable wage & salary structure. Wage & salary administration is concerned with financial aspects of need, motivation, reward etc. designed to satisfy their needs. At HDFC Standard Life Insurance the BDMs are getting fixed salary per month plus incentives based on the business done by their financial consultants. Where as financial consultants get only commission based on the number of policies sold by them. The commission structure is predecided as per the norms of IRDA and HDFC Standard Life Insurance. So managers analyses and interprets the need of employees so that reward can be

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PROMOTION
A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better wage, better status and higher opportunities, responsibility and authority, better working environment, hours of work and facilities and a higher rank. At HDFC Standard Life Insurance, an employee can be promoted on the basis of his performance in the company. If a BDM works better and if he is achieving the targets given by the company and if he is eligible then he is made residence manager whereas, residence manager performing well managing team of his BDMs efficiently can be made area manager. And the chain goes on and on. In short in this industry it all depends on achievement of targets and efficiency of a person. Moreover the inter branch transfers also takes place to improve the weak branch.

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PERFORMANCE APPRAISAL
Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. Performance appraisal is a process of evaluating and employee performance of a job in terms of its requirements. At HDFC Standard Life Insurance performance appraisal is done on a yearly basis. It depends on various factors like:Number of policies sold. Number of agents recruited. Achievement of targets. Overall contribution to the organization. Other initiatives taken in bringing new business.

At HDFC Standard Life Insurance Performance appraisal is done on the point scale basis. Only financial incentives are given on the completion of targets.

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EMPLOYEE BENEFITS & SERVICES

Employee benefits include the various types of benefits provided to the employees. It helps an employee to work in a better way and providing better working conditions. At HDFC Standard Life Insurance, employees are given various benefits such as :

Mediclaim. Life Insurance Cover. Housing to higher authorities. Soft loans from HDFC Bank. ETC.

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INDUSTRIAL RELATIONS

Industrial relations are very important for any company as it helps in efficient working by an employee. It also helps in optimizing the use of resources of the company. authorities. At HDFC Standard Life Insurance they observe very good relationship because all the BDMs are having direct contact with the head office due to intranet facility and so for any queries they can directly contact them. Moreover there is no any grievance handling technique and it is on one to one basis. In short, the industrial relations are very good in this company. It is the relationship between employees and higher

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MARKETING YESTERDAY & TODAY

The old economy evolved around the manufacturing companies whose main drives was to standardize production, products, and business processes. advantages They invested large sum in brand building to tout the of their standard marketing offering. Though

standardization and branding, manufacturer hoped to grow and take the advantage of economies of scale. And the key to managing assets was to establish a command and control system that would run the business like machine. In contrast, the new economy is supported by information businesses. Information, advantage of being easy to differentiate, customizes, personalize and dispatch over network at incredible speed. As companies grew proficient at gathering information about individual customers and business partners, and as their factories were designed more flexible, they increased their ability to individualize their market offering, message and media. Marketing first evolved as the ancillary function of the firm then took the center stage but now the focus has changed to the customers. Now all firms ties to focuses on the customers. Firm being organized by product unit has changed to organized by customer segments.

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Organize by products units Focus on Profitable transaction Look primarily at financial scorecard Focus on shareholders Marketing dosed the marketing Building brands through advertising Focus on customers acquisition No customer satisfaction measurement Over promise, under deliver

Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Building brand through performance Focus on customer retention Measure customer satisfaction Under promise, over deliver

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MARKETING MANAGEMENT
How do you define Marketing? What is the basic idea that works in your mind when you go for marketing your product? Is the idea selling and so, increasing your profits? If yes, then you may be wrong in your approach to marketing your product. The nature of todays consumer has become volatile. At any given time, he can switch to another product that offers him a bit more comfort than yours. Thats because all your past efforts that led him purchase your product that last time around havent be successful in the long run. So what is the mantra of long term success? There will always, one can assume be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. Pe ter Druker

We see Marketing management as the art & science of choosing target market and getting, keeping, and growing customer through creating, delivering and communicating superior customer value.

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MARKETING MIX
Marketing Mix is the set of marketing tools the firm uses to achieve its marketing objectives in the target market. Marketing mix decisions must be made for final consumers. Figure shows the company offering the mix of products, service and price and utilizing the promotion mix of sales promotion advertising, sales force, public relations, direct mail, telemarketing and internet to reach the trade channel and the target customers. The firm can change its price, sales force size and advertising expenditure in short run. It can develop new products in long run and modify its distribution channels in the long run. Thus the firm typically makes fever period to period. Marketing mix changes in short run than number of marketing mix decision variables might suggest. The four Ps represents the sellers view of marketing tools available for delivering a customer benefit. Robert lauterboen suggested that the sellers four Ps corresponding to customers four Cs. FOUR Ps PRODUCT PRICE PLACE PROMOTION FOUR Cs CUSTOMERS SOLUTION CUSTOMER COST CONVENIENCE COMMUNICATION

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PRODUCT
A product is any thing that can be offered to a market to satisfy a want or a need. The products that are marketed include physical goods, services, events place, properties organization, information and idea. The product is the most tangible and important single component of the marketing program. The product policy and strategy is the cornerstone of the marketing mix without a product there is nothing to price to be marketer. Products are the building blocks of the marketing plans. Good products are the key to the market success. Product decision is taken first by the marketer and these decisions are central to all other marketing decision such as price, promotion and distribution. Product is the vehicle by which a company provides consumer satisfaction. It is the engine that pulls the rest of the marketing program. A product plan is the companys plan for marketing its product. The company lay down the product objective develop a product design to have a product design to achieve a set objectives and have a product program suitable to a products position in life cycle. Product plan involves number of issues to be resolved: - product line, product mix, packaging, labeling, branding, after sales service, product research and improvement.Single premium whole of life

Term assurance plan Money back plan Personal pension plan Endowment plan Childrens plan

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SINGLE PREMIUM WHOLE OF LIFE

TERM ASSURANCE PLAN

45

MONEY BACK PLAN

46

PERSONAL PENSION PLAN

47

ENDOWMENT ASSURANCE PLAN

48

CHILDRENS PLAN

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TAX BENEFITS

50

Our life insurance plans namely endowment assurance, money back plan, single premium whole of life, term assurance plan is entitled to rebate under section 88. of the income tax act, 1961. Additionally health insurance * riders are eligible for tax exemption under section 80 (d).

Our pension product, personal pension plan is eligible for exemption under section 80 CCC Furthermore, the proceeds from our life insurance plans are exempted from income tax under section 10 (D)

* Critical illness benefit, waiver of premium benefit and accelerated sum assured benefit.

PRICING MIX

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Price is the one element of the marketing mix that produces revenue. Prices are the easiest marketing mix element to adjust, product features, channel and event promotion take more time. Price also communicates to the market the companies intend value positioning of its products or brand.

Today the companies are wrestling with the number of different pricing tasks :

how to respond to aggressive price cutters how to price the same products when it goes through different channels how to price the same products in different countries how to price an improved products while still selling the previous versions

Pricing is not just a number on a tag or an item, it goes by many names :Price is all around us. U may pay rent for your apartment, tuition for your education and fee to your physician or dentist. The airline, railway, taxi and business companies charge you interest for the money you borrow. The Price of an executive is a salary, the price of sales person may be commission and the price of the worker is a wage. Traditionally price has operated as the major determinant of buyer choice, this is still the case with the developing and under developed countries. Although non- price factors have become more important in

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recent decades, price still remains one of the most important elements determining market share and profitability.

At HDFC Standard Life Insurance, the pricing is an important task. Here pricing is not based on cost + profit or mark up pricing or group pricing. Here pricing is based on the main factor RISK. This depends upon his age, if age is more than risk is more, if he have certain disease then also premium is more. If sum assured is more then also risk is more. Price depends on following factors :

age sum assured physical condition nature of work etc

TRADE CHANNELS

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Marketing channels are set of interdependent organizations involved in the process of making a products or services available for use or consumption. Marketing channel decision is among the most critical decision faced by manager. The channel chosen intimately affects all the other marketing decisions. A distribution system is the key external resource. Normally it takes years to build, and it is not easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales, personal and facilities. It represents a significant corporate commitment to large number of independent companies whose business is distribution and to be particular market their service. It represents as well a commitment to a set of policies & practices that constitutes the basic fabric on which is woven and extensive set of long term relationship. Levels of channels :

Zero level One level Two level Three level

At HDFC Standard Life Insurance, consultants appointed by the company perform the task of channel. consultants.

There are three types of

ordinary consultant corporate consultants brokers

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HDFC Standard Life Insurance use two types of channels.

zero level HDFC CUSTOMER

This channel is adopted only when the customer directly contacts the company.

One level HDFC

HDFC

CONSULTANTS
CORPORATE CONSULTANTS

CUSTOMER
CUSTOMER

HDFC

BROKERS

CUSTOMER

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ADVERTISING
In the era of cutthroat competition to introduce our product to public is very vital. To fulfill these requirements advertisements are necessary. Advertising is a process to increase customer interest in our product. Advertising makes the product well known and famous in every home and mind. Advertisements are most important media to study the market and earn profit. Advertisement differentiates the products of different companies. Advertisement favours the product of particular company and improves the market value of the product. Advertisement stimulates the customer to buy a product. The advertisers or sponsors want to persuade and induce the target audience, to take some action viz. to buy the advertised products so that the advertisers can have profitable sale. Advertising is a non-personal salesmanship performing similar functions like personal salesmanship. It is a silent but forceful salesmanship. It is responsible for creating and has made possible tremendous industrialization and economic development in many countries. It is the backbone of modern national and international marketing. Modern advertising informs, guides, educates as well as protects the buyers so that they can buy intelligently and rise their standard of living. In the marketing program of business enterprise, advertising is an indispensable tool supplemented by salesmanship and sales promotion.

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It is to business what steam, electric or nuclear energy to industries. The wheel of industry and commerce cannot move with desirable speed without the propelling power of advertising.

In developing program, marketing manager must always start by an identifying the target market and buyer motives. Then they can make the five major decision in developing advertising program, known as 5 Ms

MISSION :- WHAT ARE THE ADVERTISING OBJECTIVES? MONEY :- HOW MUCH CAN BE SPENT? MESSAGE :- WHAT MESSAGE SHOULD BE SPENT? MEDIA :- ON WHAT MEDIA TO SPEND? MEASUREMENT :- HOW SHOULD THE RESULTS BE EVALUATED?

According to the HDFC Standard Life Insurance Advertisement will aim to build the image of the company as a secure, trust-worthy, and innovative company. Since many of our potential customers may not be about the company we will do only corporate advertising. And not advertise specific products. Over time, we will move towards talking about specific products especially at the time of their launch. The advertisements will aim at motivating the customer to contact our consultant for sales.

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Given the gradual national rollout that we will be undertaking, we are unlikely to advertise on the T.V. and are likely to restrict ourselves to press. Media mix is only restricted to press and the hoarding. Company uses the print media as the main medium of advertisements and gives regularly advertisements in industrial newspapers advertising its specific products at present the most focused product is pension plan and term assurance. Direct mailing company also adopts this medium of advertisements for getting the prospective customer gets informed about the products.

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SALES PROMOTION
Sales promotion is a key ingredient in marketing campaigns. It can be defined as:sales promotion consists of a diverse collection of incentive tools mostly short term designed to stimulate quicker or greater purchase of particular products or services by consumer. Whereas advertising offers reason to buy, sales promotion offers an incentive to buy. HDFC Standard Life Insurance has adopted 3 levels of sales promotion. At a consultant level. HDFC Standard Life Consultant being the direct link between the customer and company, sales promotion applied on them provide fruitful results. Company provides consultants well-designed leaflets for each of their products for distribution to the end customer. Each of these will be provided in English and one in local language and carries enough space for consultants address stamp. Detailed and easy to use product guide will be provided to consultant for each product. This answers all queries that they have on any aspect of the products. HDFC Standard Life Insurance also organizes agents conferences. In this function they declare to consultants any new changes on any development and technical guidance is given to them. HDFC Standard Life Insurance provides its consultants with the in house publication of HDFC known as in touch with life HDFC

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publishes the name and the photographs of the top performers based on two categories.

On collection of premium On number of policy

On the basis of these performance that they are awarded with

prizes.

At customer level The company has developed its website www.hdfcinsurance.com at the site company provides ample information about its products. It also provides information about who can take the insurance and also provides analytical information. It also provides the latest news updates about the company and the insurance sector as a whole. HDFC Standard Life Insurance also takes part in the trade fairs. Why company should take part in such fairs? The company takes part in the trade fairs because it gets direct or indirect touch with the prospective customers and it gets chance to publicize its products and chance to contact the mass.

Consumer value addition The company has got toll free number. With any person having query about the product he can call to that number. After dialing to that number either respondent will either the query or the local agent of officer will contact him in personal.

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Today the mobile commerce is stretching its boundaries. It is being in reach of every men in order to be upgraded the company has introduced service by which any person through SMS can know his policy status.

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INTRODUCTION

Finance is life-blood of the business. It is rightly termed as the science of money. management. Finance management looks after the finance function of the business. It is the custodian of corporate funds. It has to plan, organize and control the finance of the enterprise. Finance management is the study about the process of procuring and judicious use of financial resources with a view of maximizing the value of the firm. Finance management is called upon to take three major decisions namely : Investment decisions Financing decisions Dividend policy decisions. Finance management is an applied branch of general

ACTUARY HEAD: - NICK TACKET BANKERS: - HDFC BANK AUDITORS: - S.B. BILLIMORIA & COMPANY

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FINANCIAL PLANNING

Financial planning means deciding in advance the various financial activities to be performed to achieve the basic objective of the firm to maximize the use of available resource. It the basic objective of the financial planning to raise the necessary funds and when it is required, at minimum cost in flow and out flow of cash should be controlled properly. Financial planning is essentially concerned with the economical procurement and profitable use of funds, which is determined by realistic investment decision. In HDFC standard life the financial decision maker plans the financial affairs. They prepare short term as well as long term plans. They invest in government securities and government guaranteed bond long term as well as short as short.

HDFC Standard Life Insurance is a financial service company so, financial planning and control plays a vital role. Here, the financial planning is done on yearly basis. For making decisions about incentives and increment to the To set the targets of business so the work allocation can be done. To know the cost of maintenance of different policies. Making decisions about bonus given to the policyholders.

employees.

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CAPITALIZATION

Capitalization means the total par value of all the securities. If shares and debentures are issued, reserves and surpluses and value of all other long term obligations. Thus the term includes: The value of ordinary and preference shares The value of all surplus earned and reserves created The value of bonds and securities still not re deemed. The value of long term loans

Within the term of capitalization generally there are two types of capitalization in financial management theory.

1. 2.

Over capitalization Under capitalization

Over Capitalization

When the market value of fixed assets is less than capital of company than we can say that it is a situation of over capitalization. Under capitalization

When the market value of fixed assets is more than capital of company than we can say that it is a situation of under capitalization.

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HDFC Standard Life Insurance is having adequate capitalization and there is no case of under or over capitalization. Company issues more and more capital as and when the liability increases.

CAPITAL STRUCTURE

Capital structure refers to the makeup of capitalization. It decides the proportion of funds to be raised by issue of ownership capital and the amount to be raised by borrowing. Taking into account the cost of capital and its impacts on income and stability of the company taking decision regarding the issue of various types of securities is called devising of capital structure of a company. The capital structure of HDFC standard life company consists of owned capital. The owned capital consists of share capital reserve &surplus & the borrowed capital includes secured loans from the financial institution and from the bank. Company consist equity capital that is company own capital.

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MANAGEMENT OF FIXED ASSETS

Management of fixed assets is referring to the management of those assets which are used for more than one year and used by business in its day to day operations. Fixed assets management is having vital importance because the amount so invested in such assets cannot be easily converted into cash. It includes land, building, plant and machinery etc. In HDFC Standard Life Insurance Co., management of fixed assets is done very properly. Basically, the finance manager of the company responsible for the maintenance and management of the company. Top managers are also responsible for that. Particularly, Branch Manager of the respective branch or office is the responsible person to maintain the fixed assets.

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CAPITAL BUDGETING
Capital budgeting is a process of making decision regarding long-term investments in fixed assets. It is a long range planning to employ the available capital for the purpose of maximizing the long-term profitability of the concern. It is the decision making process by which the firm evaluates the purchase of major fixed assets. It involves firms decision to invest in disposition, modification and replacement of long term or fixed assets. However it should be noted that investment in current assets necessitated on account of investment in fixed assets. It also to be taken as a capital budgeting decision. In HDFC standard life is growing company so, there is often need to take investment decision. Company first generate the project after that there is a need of evaluation of that project. Then the project is selected and at last the execution of project is under taken.

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MANAGEMENT OF WORKING CAPITAL

Working capital means Current assets such as cash, account receivable, inventory etc. MINUS: Current liabilities The term working capital is commonly used for the capital required for day-to-day operations means purchasing raw material, paying for salaries, wages, rent, advertisement expenses. The net working capital in HDFC standard life company as follow: Net working capital = current assets current liability

= 254,076,000 151,855,000 = 102,221,000

And in working capital management also include inventories and receivables management but in HDFC standard life no need to maintain inventories because there is in service sector. And in receivable if any policyholder not pay premium in time so that person policy has been invalid. So in this company not need to maintain receivables

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LEVERAGE ANALYSIS
Leverage means change in assets, expenditure and liabilities and change in earning per share.

There are two type of leverage 1. Operating leverage 2. Financial leverage

1.

Operating leverage Operating leverage to the use of fixed costs in the orating of the firm a firm will not have operating leverage if its ration of fixed cost to total cost is nil.

2.

Financial leverage Financial leverage refers to use the fixed income security, performance share capital and debenture. The financial leverage indicates effect on earning created by the use of fixed charge security in the capitalization plan. The object using financial leverage is to finance incremental assets acquisition with relatively cheap debt and there by increase the return to the equity owners. Financial leverage may be defined as percentage on equity to percentage return on capitalization.

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But in HDFC standard life has only equity capital so, no need to count leverage cannot be calculated.

SWOT ANALYSIS
STRENGTHS

Brand name of HDFC Brand name of Standard Life Experience (both of HDFC & STANDARD LIFE) Financial strngth First mover.
WEAKNESS

Less publicity Less geographic coverage Lack of range of plans Lower awareness of HDFC as insurer
OPPORTUNITIES

Till today, number of policies issued is less and many potential customers are available. Overseas market
Increasing awareness in general public about insurance

especially about private players.

THREATS

Increase in the number of private players

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 Aggressive marketing technique by other players Service tax on insurance Introduction of new policies by LIC, giving guarantee of fixed returns.

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CONCLUSSION & RECOMMENDATIONS

CONCLUSSION: Through my visit at HDFC Standard Life Insurance RAJKOT, I came to conclusion that company is a professionally managed and its BDMs are from diverse background so as to create professional work culture. The most important thing found in HDFC Standard Life Insurance is that the company is doing business on ethical basis. This leads to more consumer trust on the HDFC Standard Life Insurance and leads to increase in the sale of different policies easily. HDFC Standard Life Insurance is technically very sound with more than 500 crores spent on systems and having best system in the insurance sector. Lastly, company is always aiming to widen its horizon, looking forward for expansion and bringing new and new additional benefits available with the policy. And always try to grab the opportunities available.

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RECCOMMENDATIONS: Educating the general public about the need of the life insurance. And try to make them understand that insurance is more than the saving and investment. Company is very conservative in terms of advertising. Whereas other players are doing aggressive advertising. more Company should try to bring various types of schemes to cater the different types of needs. Company should go for some incentive based commission scheme for financial consultants, which can motivate them in bringing more and more business. More and more branches should be opened up to widen the scope of doing business. And at last company has invested more than 500 crores in technology, so it is necessary to see that whether this technology is used efficiently or not. So to remain in the competition the company needs to advertise more and

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MARKETING RESEACH
Many benefits that accrue to management from using marketing research services the initial impetus to begin conducting marketing research in the United States. One might imagine, because of the competitive advantage a company can gain from engaging in market research, that it has been used by business for centuries. The industry did not move out of its embryonic years until 1900. now over the years marketing research has become an integral tool for decision making. According to American Marketing Association Marketing research is the function which links the customers, consumers and public to marketer through information which used to identify and define marketing opportunities and problems: generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. In short marketing research is the planning collection and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management.

During my training at HDFC Standard Life Insurance, I was supposed to do my project work on sourcing of leads for recruitment of certified financial consultants Throughout my training, I had to go for collecting basic information related to prospective financial consultants and try to convert them from just prospective to real financial consultants for HDFC Standard Life Insurance.

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For this purpose I was given some target market. It means to whom I should contact. It consisted of:1. Tax Consultants. 2. Small Savings Agents. 3. LIC Agents. 4. Estate Brokers. 5. Other Investment Advisors, 6. STD PCOs. 7. Xerox booths. 8. Small businessman. 9. fresh graduates

Questionnaire for this purpose consisted of the following information: basic information like name, age gender, address. Educational qualification Current occupation Telephone numbers Contact base Number of family members Single income family or not? Number of dependant members on income earner of the family Sales experience and number of years. Sales experience in financial products and number of years

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As my research is just related to collection of basic information there is no need of analysis and interpretation for the same. But I would surely like to give my findings based on the same.

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FINDINGS AND CONCLUSION BASED ON RESEACH

HDFC Standard Life Insurance is having a first mover advantage. It means it is the first company in private sector to get license and this can help in building trust among the customers. Brand name of HDFC is also helpful in reaping the benefits for the company experience. Company is expressly telling the above facts to customers and financial consultants so that it creates awareness and good image of the company. Company is not going for extensive advertisements which creates lack of awareness about the company. At times I was asked by my respondents that whether this company is in life insurance. higher. Awareness level of other insurance companies is No doubt it was not found out directly from the questionnaire but through some indirect conversations with respondents Basic knowledge and faith in private players is highly lacking. Very few players were aware about the regulatory body IRDA and its norms. Again Brand name of a partner STANDARD LIFE ASSURANCE is also very much helpful due to its 177 years of

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So, what private players need is to make aware the target people about the norms of investment to be done by insurance companies. (almost 75% of premium income to be invested in government bonds and other related securities) LIC is having top of mind awareness and still when life insurance comes, first people just think of LIC. According to IRDA norms one particular person cannot keep agency of more than one life insurance company. So what companies can do is try to motivate the LIC agents to take agency on the name of their family members and offer attractive commission and other benefits associated with it.

Through my research I found that many people are interested in becoming FC with HDFC Standard Life Insurance, but main proble restricting them is 100 hours of training (compulsory according to the norms of IRDA) so they should go for some 2 to 2.5 hours of training daily either in morning or in late evening. So that the businessmen and service people interested in becoming FC can be taped out.

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CONCLUSION
Here I would like to mention that no doubt the theoretical knowledge is important but unlike to say the practical application of the same is less. The degree of the same may differ from industry to industry but what is more important is practical touch of experience. At times I had some unhappy experiences but people as we know are having different kinds of mentality. But at last I would like to say that I am very glad to have training at HDFC standard Life Insurance. And it gave me a very good field experience.

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BIBLIOGRAPHY

REFERENCE BOOKS:-

Marketing Management Marketing Management Personnel Management Finance Management

MAGAZINES:-

By Philip Kotler By J C Gandhi. By C B Mamoria By S N Maheshwari

In Touch With Life IRDA Journal

WEBSITES:www.hdfcinsurance.com www.hdfc.com www.standardlife.com www.irdaindia.org www.bimaonline.com

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