CONTENTS

1.EXECUTIVE SUMMARY......................................................................................... ......2

2.INTRODUCTION TO THE TOPIC................................................................................. .3
3.AIM OF THE STUDY...................................................................................................4
4.INTODUCTION TO INSURANCE INDUSTRY.................................................................5
5.ORGANIZATIONAL PROFILE.......................................................................................6
5.1 FORMATION OF COMPANY..................................................................................6
5.2 PRODUCT SCOPE:.............................................................................. ...............10
5.3 PRODUCT PORTFOLIO.......................................................................................13
5.4 MILESTONES IN THE HISTORY...........................................................................17
5.5COLLABORATIONS & AFFILIATIONS:...................................................................18
5.6 HEAD OFFICES AND BRANCHES.......................................................................20
5.7 ORGANIZATION STRUCTURE:............................................................................23
6.FINDINGS.................................................................................................... ............23
7.SUGGESTION................................................................................ ..........................26
8.CONCLUSIONS:................................................................................. ......................27
9.BIBLIOGRAPHY............................................................................................ ............28

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 1. EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-
80% while as FMCG sector has maximum 12-15% of growth rate. The growth potential attracts
individuals to enter this sector and HDFC Standard Life Insurance Company Ltd has given me
the opportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed through a
distribution channel. In insurance sector, distribution channel includes only agents or agency
holders of the company. If companies like LIC, RELIANCE LIFE INSURANCE, TATA AIG,
MAX etc have adequate agents in the market they can capture big market as compared to the
other companies.

Agents are the only way for a company of Insurance sector through which policies and benefits of
the company can be explained to the customers. An agent is a primary source for procurement of
insurance business and as such his role is the corner stone for building a solid edifice of any life
insurance organization. To effect a good quality of life insurance sale, an agent must be equipped
with technical aspects of insurance knowledge, he must possess analytical ability to analyze
human needs, he must be abreast with up to date knowledge of merits or demerits of other
instruments of investment available in the financial market, he must be endowed with a burning
desire of social service and over and above all this, he must possess and develop an undeterred
determination to succeed as a Life Insurance Salesman. In short he must be an agent with
professional approach in life insurance salesmanship.

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 2. INTRODUCTION TO THE TOPIC

THE TOPIC: “FINANCIAL CONSULTANT FOR HDFCSLIC, CHENNIA”

At HDFC Standard Life Insurance, I underwent the training as “Financial Consultant” for my
summer internship. The selection of the training was in order to know how these companies
generate business through them.

Financial Consultants are those sources of a company who have their own relations and
personal contacts among common public that they use to generate business through. Company
has certain criteria to recruit these Financial Consultants. The steps are as follows.

• He should be at least 12th passed.

• He should complete IRDA training.
• He should clear the IRDA exam.
• He should through successfully the exam and training.

Some other criteria:

• He should have good personal contacts.

• He should have convincing power.
• He should be above 18th year old.

Once he through all these steps of recruitment, he becomes the legal Financial Consultant of
the company and reserve the right to sale the policy to any prospect client also he is paid the
commission a certain percentage. There are some reward and tour package also.

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 3. AIM OF THE STUDY

The financial sector is one of the booming and increasing leaps and bounce, some of the
experts say only 20% of Indian population is insured which means 80% Indian are not insured
and therefore having a bright prospect of progress of this sector where I too would like to build
my career and be a part of success story.

The Financial consultants are another channel through which the company sales its policy.
It is really difficult to convince and sale a single policy but since these consultants have their
contacts which they can sale a single policy. Whereas I found my interest in dealing, interacting
and handling a team, because all this most of time park you in some critical zone which becomes
challenge for you and your responsibility becomes to solve the critical situation or problems.

IMPORTANCE TO THE COMPANY:

After interacting with company’s marketing head I got to know that they have many
Financial Consultants but not getting the policies up to the expectations level of the company.
Company is really interested in knowing if there is any mistake or lacking somewhere in process
of recruiting and or the criteria they have fixed for the recruitment. The ultimate purpose of
giving me this topic was to revise its recruitment policy/process.

OBJECTIVE OF THE STUDY:

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

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

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 4. INTODUCTION TO INSURANCE INDUSTRY

Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong.
Its’ often about things going right.; One of the Wonders of human nature is that we never believe
anything can actually go wrong.

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to liberalized market again. Tracking the development in Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

The business of life insurance in Indian in its existing form started in India in the year 1818 with
the establishment of Oriental Life. Insurance Company in Calcutta. Some of the important
milestones in life insurance business in India are.

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

1928: The Indian Insurance Compan9es Act enacted to enable the government to collect
statistical information about life and non-life insurance businesses.

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

1965: 245 Indian and foreign insurers and provident societies take over by the central
government and nationalized. LIC formed by an act of parliament viz. LIC. Act . 1956, with a
capital contribution of Rs. 5 Crore from the government of India.

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 5. ORGANIZATIONAL PROFILE

5.1 FORMATION OF COMPANY

HOUSING DEVELOPMENT FINANCE CORPORATION:

HDFC was started by Hasmukh Bhai Parekh in1977 with the formation of Malhotra
Committee. HDFC was incorporated with the primary objective of meeting a social need that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 10 crores.

HDFC has since emerged as the largest residential mortgage finance institution in the
country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The
net worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crores.

HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with
service associates in Kuwait, Oman and Qatar.

HDFC’s main goals are to:

a) Develop close relationships with individual households.

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

c) Transform ideas into viable and creative solutions.

d) Provide consistently high returns to shareholders.

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

STANDARD LIFE:

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 The Standard Life Assurance Company ("Standard Life") was established in 1825 and the
first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was
reincorporated as a mutual assurance company in 1925.

Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 182 years, is a modern company surviving quite a
few changes since selling its first policy in 1825. The company expanded in the 19th century
from its original Edinburgh premises, opening offices in other towns and acquiring other similar
businesses.

Standard Life currently has assets exceeding over £70 billion under its management and
has the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.

STANDARD LIFE ASIA LIMITED/JOINT VENTURES:

The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”), was
incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard Life
in 2002. The group’s operations in Hong Kong were established to give the group a presence in
the Far East from which it could expand into China. The group’s joint ventures in India with
Housing Development Finance Corporation Limited (“HDFC”) were incorporated in 2000 (in
relation to the life assurance and pension’s joint venture) and 2003 (in relation to the investment
management joint venture). The group’s joint venture in China with Tianjin Economic
Development Area General Company (“TEDA”) became operational in 2003.

STANDARD LIFE GROUP:

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• The Standard Life group has been looking after the financial needs of customers for over
182 years
• It currently has a customer base of around 7 million people who rely on the company for
their insurance, pension, investment, banking and health-care needs
• Its investment manager currently administers £125 billion in assets
• It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong'
with a rating of A+ and as 'good' with a rating of A1 by Moody's
• Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the
Money Marketing Awards, and
• It was voted a 5 star life and pension’s provider at the Financial Adviser Service Awards
for the last 10 years running.
• The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10
years, and to Standard Life Bank since its inception in 1998.
• Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage
Magazine Awards in 2006.

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INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO. LTD.:

The company was incorporated on 14th August 2000 under the name of HDFC Standard
Life Insurance Company Limited.

Their ambition from the beginning was to be the first private company to re-enter the life
insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC
Standard Life was the first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and
trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and
be the yardstick by which all other insurance companies in India are measured.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions. It is a
joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s
leading housing finance institution and one of the subsidiaries of Standard Life plc, leading
providers of financial services in the United Kingdom.

Both the promoters are well known for their ethical dealings and financial strength and are
thus committed to being a long-term player in the life insurance industry.

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5.2 PRODUCT SCOPE:

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The
company caters to both, individuals as well as to companies looking to provide benefits to their
employees.

For individuals, the company has a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. The customers can choose
from a range of products to suit their life-stage and needs.

For organizations they have a host of customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans
apart from providing long term value to the employees help in enhancing goodwill of the
company.

The products of the company are categorized into various sections which are as follows :

A. INDIVIDUAL PRODUCTS
B. GROUP PRODUCTS
C. RURAL PRODUCTS
D. SOCIAL PRODUCTS
E. TAX BENEFITS

For Individuals, HDFC Standard Life has a range of protection, investment, pension and
savings plans that assist and nurture dreams apart from providing protection. Customer can
choose from a range of products to suit his life-stage and needs.

For Organizations, HDFC Standard Life has a host of customized solutions that range
from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These

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affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company.

Individual Products:

1. HDFC Children's Plan,

2. HDFC Endowment Assurance Plan,
3. HDFC Loan Cover Term Assurance Plan,
4. HDFC Money Back Plan,
5. HDFC Personal Pension Plan,
6. HDFC Single Premium Whole Of Life Plan,
7. HDFC Term Assurance Plan,
8. HDFC Unit Linked Endowment,
9. HDFC Unit Linked Endowment Plus,
10. HDFC Unit Linked Pension,
11. HDFC Unit Linked Pension Plus,
12. HDFC Unit Linked Young Star,
13. HDFC Unit Linked Young Star Plus

At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping
this in mind, varied range of products that customer can choose from to suit all needs. These will
help secure customer future as well as the future of family.

Protection Plans:

Customer can protect his family against the loss of his income or the burden of a loan in
the event of his unfortunate demise, disability or sickness. These plans offer valuable peace of
mind at a small price.

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HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term
Assurance Plan.

Investment Plans:

HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term
investment needs. HDFC Standard Life provides with attractive long term returns through regular
bonuses.

Pension Plans:

HDFC Standard Life Pension Plans help secure financial independence even after
retirement. Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked
Pension Plus Savings Plans.

Savings Plans:

HDFC Standard Life Savings Plans offer flexible options to build savings for future needs
such as buying a dream home or fulfilling children’s immediate and future needs.

Group Products:

1. Group Term Insurance,

2. Group Variable Term Insurance,
3. Group Unit Linked Plan,
4. Gratuity Group Unit Linked Plan,
5. Superannuation Group Unit Linked Plan ,
6. Leave Encashment

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 5.3 PRODUCT PORTFOLIO

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

Your insurance need will change as your life does, from starting to work to enjoying your
golden years and all the stages in between. Each one of these stages may pose a different
insurance need/cover for you. In this section, we have drawn up the basic life stages and help you
analyze various insurance needs accordingly.

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 LIFE STAGES & NEEDS IN HAT STAGES

STAGE 1: YOUNG & SINGLE

An important stage where one lays down the foundation of a successful life ahead. Take
advantage of the time and power of compounding to ensure that you build up your dreams. Start
saving early.

NEEDS:

 Save for Home & Wedding

 Tax Planning
 Save for Golden Years

STAGE 2: JUST MARRIED

Marriage brings about a significant change. New dreams and new opportunities also bring
in additional responsibilities. While both of you look forward to a happy and secure life, it is
equally important to ensure that eventualities don’t come in the way of shaping your dreams.

NEEDS:

 Planning for home / securing your home loan liability.

 Save for vacation.

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  Save for your first child.
STAGE 3: PROUD PARENTS

Once you have children, your need for life insurance is even more. You need to protect
your family from an untoward incident. Ensure your protection umbrella takes into account the
future cost of securing your child’s dream. You will want life to go on for your loved ones, and
having enough life insurance is a way to help ensure that.

NEEDS:

 Provide for children's education

 Safeguarding family against loan liabilities
 Savings for post-retirement

STAGE 4: PLANNING FOR RETIREMENT

While you are busy climbing the ladder of success today, it is important for
you to take time and plan for your life after retirement. Having an early start for retirement
planning can make a significant difference to your savings. Think about your golden years even
before you have reached them. The key is to think ahead and plan well using your time and
money.

NEEDS –

 Provide for regular income post retirement

 Immediate Tax benefits

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  Lead a secure, independent and comfortable life style in your retirement years.
COMPARITIVE ADVANTAGE OVER COMPETITORS PRODUCT:

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

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

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

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

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

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

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

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5.4 MILESTONES IN THE HISTORY

• HDFC is India’s leading housing finance institution and has helped build more than 23,
00,000 houses since its incorporation in 1977.
• In Financial Year 2003-04 its assets under management crossed Rs.36,000Cr.
• As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base
now stands at around 1 million depositors.
• Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
• Awarded The Economic Times Corporate Citizen of the year Award for its long-standing
commitment to community development.
• Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the
third Annual Outlook Money Awards
• HDFC Standard Life Insurance is the first private life insurance company to be granted a
license by IRDA
• Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1
personal finance magazine
• Rated by ‘Business world’ as ‘India’s Most Respected Private Life Insurance Company’ in
2004.
• Has the highest brand recall, close to 80% (Source: AC Neilson ORG MARG, April 2005)
• Has one of the widest branch networks with offices in over 100 cities servicing over 440
towns

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5.5COLLABORATIONS & AFFILIATIONS:

SUBSIDIARY AND ASSOCIATE COMPANIES:

• HDFC Bank
• HDFC Mutual Fund
• HDFC Standard Life Insurance Company
• HLSIL
• HDFC Chubb General Insurance Company Ltd.
• Intelnet Global Services Ltd.
• Other Companies Co-Promoted by HDFC
• Financial Information with regard to Subsidiary Companies

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 BANCASSURANCE
GROUP COMPANIES PARTNERS

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5.6 HEAD OFFICES AND BRANCHES

HEAD OFFICE: HDFC Standard Life Insurance Co. Ltd.

'Trade Star', 2nd floor,’A’Wing,

Junction of Kondivita and M.V. Road,

Andheri-Kurla Road,
Andheri (East), Mumbai - 400 059.

PHONE: (Board) (022) 2822 0055 / 6751 6666

Fax: 2822 9998 / 2822 2414

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BRANCH LOCATIONS SITE MAP:

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TABLE OF FINANCIAL FIGURES:

PARAMETERS APR-MAR 2006- APR-MAR

GROWTH (%)
07 (Rs.Cr) 2007-08 (Rs.Cr)

Total received premium 668.40 1532.21 129.23

New business 486.15 1028.94 111.65

Renewal 182.25 503.27 103.47

Effective Premium Income (Total) 436.08 887.30 103.47

Group Business Premium (EPI) 49.40 135.15 173.58

APR-MAR 2006-07 (Rs.Cr) APR-MAR 2007-08 (Rs.Cr)

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 5.7 ORGANIZATION STRUCTURE:

Chairman

MD

Zonal
Manager

Regional
Manager

Retail Alternative Operation Human

Marketing Chanel Chanel Resource

Territory Territory Team Manager HR Executive

Manager Manager

Branch Manager Branch Manager Operation

Manager

Asst. B.M. Channel

Executive

Business Dev.
Mgr.

Sales Dev. Mgr.

6. FINDINGS

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 • Financial consultant, the right way to start career:

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

• Easy way to start on career:

Zero investment: There is no start-up capital. Be an own boss with a flexible working
environment, unlimited earning potential and the opportunity to be part of world class sales team.

• Flexible work timings, part time or full time:

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

• PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:

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

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

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o Basic Training and Induction: Independence of work experience, this training
will give perfect knowledge about the insurance industry along with
comprehensive knowledge about the insurance along with comprehensive
knowledge abut HDFC SLIC Product.

o Disha training: This is a professional sales skill program eased by us to one

selling skills. Those program enable to understand customer need and provide
need based insurance solution.. A huge step from an amateur to a true finance
professional.

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

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

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 7. SUGGESTION

Finally some recommendations for the company are as fallows:-

 To make people aware about the benefit of becoming HDFC Standard Life’s Financial
Consultant, following activities of advertisement should be done through

1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
5. Company can recruit sales promoters so that maximum information can be
provided to the potential client.

 By showing additional and alternative income source along with various schemes for
Financial Consultant in the company so that more and more FC can be recruited.

 Free life cover for every active Financial Consultant.

 Make people understand about the meaning of the IRDA authorization and its validity.

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

 They should have separate time slot for Working Professionals, House Wives and Retired
people.

 Agency of non-life products should also be provided along with life.

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  Company should open more branches in different cities.

8. CONCLUSIONS:

HDFC Standard Life, the insurance arm of HDFC is expected to go on stream. Promoted by
HDFC & Standard Life, already has good number of employees on board and is recruiting
Financial Consultants heavily to take the headcount to many more. It is on the brim of increasing
its client through its attractive schemes and offer.

The project opportunities provided was market segmentation and identifying prospective clients
in potential geographical location and for recruiting them as financial consultant so to explore
new Business Opportunity. Through this project, it could be concluded that people are not much
aware about the various benefit of being Financial Consultant that are currently prevailing in the
insurance industry.

Insurance was considered as unsought good which require hard core selling, but in changing trend
in income and people becoming financially literate, the demand for insurance is increasing day by
day. So, it is the company that first approaches gets its share of reward. Proper after sale service
can help the advisors to generate more business. Gradually people are realizing the fact that
insurance is not a necessary evil but means to attain worry free life.

This activity much attract unemployed people as for them a source of income is a great help for
developing there future. Company’s promotional activities for recruiting Financial Consultant are
also very less.

So, at last the conclusion is that there is tough competition ahead for the company from its major
competitors in terms of number of Financial Consultants.

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Last but not the least I would like to thank HDFC SLI for giving me an opportunity to work in the
field of Financial Consultant. I hope the company finds my analysis relevant.

9. BIBLIOGRAPHY

Reference: To obtain more information regarding present study and to subordinate it with
theoretical proof following references were made.

Books Referred:

 Personal management.
 Book of license training programme for insurance advisers.

Websites Referred:

 www.hdfcinsurance.com
 www.irda.com

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