ACKNOWLEDGEMENT

At the very outset, I would like to take golden opportunity of thanking those persons without whose guidance, co-operation, inspiration and suggestion it would have been impossible for me to accomplish the project successfully. First of all I would like to thank Mr. Niraj kumar BRANCH MANAGER of HDFC SLI, for his kind guidance and necessary support during the study and summer internship. I also take this opportunity to extend my heartfelt gratitude to others who directly of indirectly helped me, by providing me necessary information required for successful completion of the project.

DECLARATION
I hereby declare that this work entitled INTRODUCTION OF HDFC STANDARD LIFE SALES AND RECRUITMENT is my work carried out under the guidance of my faculty guide Mr. K.C SETHI and my company guide Mr. NIRAJ KUMAR. This report neither full nor in past has ever been submitted for award of any other degree of either this University or any other University.

Signature of student SONAM

Insurance Industry Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.

History Of Insurance Sector

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years.

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

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both 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. 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.

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.

Functions Of Insurance
The functions of Insurance can be bifurcated into two parts: 1. Primary Functions 2. Secondary Functions 3. Other Functions The primary functions of insurance include the following: Provide Protection The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also Provide Certainty Insurance is a device, which helps to change from uncertainty to certainty. Insurance

is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following: Prevention of Losses Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks
Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following: Means of savings and investment Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

INTRODUCTION
HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by Others.

HDFC Limited HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies.

Standard Life Group (Standard Life plc and its subsidiaries) The Standard Life Group has been looking after the financial needs of customers for over 180 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 pensions 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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SISTER
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COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE Corporate Governance is a process that aims to meet shareholder aspirations and societal expectations. It is not a discipline imposed by a Regulator, rather is a culture thatguides the Board, Management and Employees to function towards best interest of Stakeholders. At HDFCSL, Corporate Governance philosophy stems from the belief that corporate governance is a key element in improving efficiency and growth as well as enhancing investor confidence. Accordingly, the Corporate Governance philosophy has been scripted as under: As a good corporate citizen, the Company is committed to sound corporate practices based on its vision, values & principles in building confidence of its various stakeholders, thereby paving the way for its long term success and sustenance. The Companys corporate governance practices are aimed at meeting the corporate governance requirements as per the Listing Agreement with Stock Exchanges, besides good practices either recommended by professional bodies / task forces or practised by leading companies in India.

Vision & Values

Our 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'. Our Values Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity

COMMITTEES OF THE BOARD OF DIRECTORS Audit & Risk Committee of Directors Compensation Committee of Directors Share Transfer and Allotment Committee.

OTHER COMMITTEES Oversight Committee of Directors Technical Review Committee of Directors

Investment Committee

The members of the Board of Directors are:

Name Position held Representation Mr. Deepak S Parekh Sir Alexander Crombie Mr. Keki M Mistry Ms. Marcia D Campbell Ms. Renu S Karnad Mr. Norman K Skeoch Mr. Gautam R Divan Mr. Ranjan Pant Mr. Ravi Narain Mr. Gerald E Grimstone Mr. Michael Connarty - Chairman & Non Executive Director HDFC Limited - Non Executive Director Standard Life - Non Executive Director HDFC Limited -Non Executive Director Standard Life - Non Executive Director HDFC Limited - Non Executive Director Standard Life -Independent Director - Independent Director - Independent Director -Alternate Director to Sir Alexander Crombie -Alternate Director to Mr. Norman K Skeoch

OVERVIEW OF LIFE INSURANCE COMPANIES MARKET SHARE AND HDFC SLIC COMPETITORS

COMPANY NAME LIC ICICI PRUDENTIAL ALLIANZ BAJAJ SBI LIFE HDFC STANDARD LIFE BIRLA SUN LIFE RELIANCE LIFE MAX NEWYORK OM KOTAK AVIVA TATA AIG MET LIFE ING VYSYA SHRIRAM LIFE BHARTI AXA LIFE

MARKET SHARE 48.10% 13.70% 10.30% 6.20% 4.10% 3.40% 3.40% 2.40% 1.90% 1.80% 1.50% 1.40% 1.20% 0.30% 0.20%

PIE CHART REPRESENTATION OF LIFE INSURANCE COMPANIES MARKET SHARE

LIC ICICI Prudential Allianz Bajaj SBI Life HDFC Standard Birla Sunlife Reliance Life Max New York OM Kotak

1.20% 0.30% 1.80% 1.40% 0.20% 1.90% 1.50% 2.40% 3.40% 3.40% 4.10% 6.20% 48.10%

10.30%
AVIVA

13.70%
Tata AIG MetLife ING Vysya Shriram Life Bharti Axa Life

PRODUCTS AT A GLANCE

HDFC PRODUCTS

ULIP
PENSION PLUS-2 SIMPLI LIFE YOUNGSTAR PLUS2 YOUNGSTAR -2 ENDOWNMENT-2 ENDOWNMENT PLUS-2

TRADITIONAL
MONEY BACK PLAN CHILDREN PLAN ENDOWNMENT ASSURANCE

HEALTH
CRITICAL CARE SURGICAL PLAN

SIMPLI LIFE PRODUCT AVAILABLE IN ULIP

AGE TERM PREMIUM ON DEATH ON MATURITY FUNDS MIN 18 15 20,000 Fund value + S.A Fund value Liquid fund Stable managed funds Secure managed fund Defensive managed fund Balanced managed fund Equity managed fund Growth fund Year 1&2 = 20% Year 3 =10% MAX 45 20 1,00,000

ALLOCATION CHARGES

SURRENDER CHARGES

Year 4+ =2% Premiums not paid 1 2 3 4 = 5% =15% =40% =95%

OTHER CHARGES

0 = nil Fund management Policy administration Redirection & switching mortality Premium change Investment decision

OPTIONS

YOUNGSTAR PLUS-2 PRODUCT IN ULIPS AGE TERM PREMIUM ON DEATH ON MATURITY FUNDS MIN 18 10 12,000 S.A+ DOUBLE /TRIPLE BENEFIT F.V Liquid fund Stable managed funds Secure managed fund Defensive managed fund Balanced managed fund Equity managed fund ALLOCATION CHARGES SURRENDER CHARGES Growth fund MAX 65 25

Premiums not paid 1 2 3 4 = 5% =15% =40% =95%

OTHER CHARGES

0 = nil Fund management Policy administration Redirection & switching mortality LIFE OPTION

OPTIONS

LOYALITY UNITS

LIFE AND HEALTH 0.01%

ENDOWNMENT PLUS -2

MIN

MAX

AGE TERM PREMIUM ON DEATH ON MATURITY FUNDS

18 10 12,000 S.A OR F.V (HIGHER) F.V Liquid fund Stable managed funds Secure managed fund Defensive managed fund Balanced managed fund Equity managed fund Growth fund YEAR 1=60% YEAR 2=7%

65 30

ALLOCATION CHARGES

SURRENDER CHARGES

YEAR 3+=2% Premiums not paid 1 2 3 4 = 5% =15% =40% =95%

OTHER CHARGES

0 = nil Fund management Policy administration Redirection & switching mortality LIFE OPTION LIFE AND HEALTH EXTRA LIFE OPTION

OPTIONS

LOYALITY UNITS BENEFIT TYPES

EXTRA LIFE AND HEALTH 0.01% DEATH BENEFIT CRITICAL ILLNESS BENEFIT ACCIDENTAL DEATH BENEFIT

PENSION -2

AGE TERM PREMIUM AGE AT VESTING ON DEATH ON VESTING FUNDS

MIN 18 10 12,000 50 F.V +BUMPER ADDITION (IF APPLICABLE) F.V (ANNIUITIES) Liquid fund Stable managed funds Secure managed fund Defensive managed fund Balanced managed fund Equity managed fund Growth fund YEAR 1=40% YEAR 2=15%

MAX 65 40 10,000,00 75

ALLOCATION CHARGES

SURRENDER CHARGES

YEAR 3+=2% Premiums not paid 1 2 3 4 = 5% =15% =40% =95%

OTHER CHARGES

0 = nil Fund management Policy administration Redirection & switching

OPTIONS

mortality LIFE TIME ANNUITY LIFE TIME ANNUITY WITH PURCHASE PRICE FIXED TERM ANNUITY JOINT LIFE ANNUITY

MONEY BACK PLAN ( TRADITIONAL PLAN)

AGE TERM PREMIUM AGE AT MATURITY ON DEATH ON MATURITY RIDERS MIN 12 10 50,000 MAX 60 30 NO LIMITS 75

S.A + BONUSES DUE SURVIVAL BENEFITS + BONUSES CRITICAL ILLNESS ACCIDENT TERM BENEFIT ACCIDENTAL DEATH BENEFIT WAIVER OF PREMIUM

GUARANTEED SURRENDER VALUE PLANS

50 %

SINGLE LIFE JOINT - LIFE

CHILDREN PLAN ( TRADITIONAL PLAN)

MIN 18 10 50,000 MAX 60 25 NO LIMITS 75

AGE TERM PREMIUM AGE AT MATURITY ON DEATH ON MATURITY RIDERS

S.A + BONUSES + WOP S.A + BONUSES CRITICAL ILLNESS ACCIDENT TERM BENEFIT ACCIDENTAL DEATH BENEFIT WAIVER OF PREMIUM 50 %

GUARANTEED SURRENDER VALUE PLANS

ACCELERATED BENEFIT P MATURITY BENEFIT

DOUBLE BENEFIT

SALES
SALES has been one of the integrated department which actually let people aware the people about their needs of savings and suggest them to do investment planning for their secured future by allocating their savings using appropriate investment tool . HDFC STD. LIFE has various channels through which the sale of the product happens ,which are :-

SALES ALTERNATE CHANNEL

RETAIL

BUSINESS LEAD

TOOLS WHICH I USED IN MY TRAINING FOR SALES GENRATION: TELE MARKETING :-

COLD CALLING COLD CALLING is one of the way of making market for the products of a company . In this calling random phone numbers are picked up and the telecaller try to convince the receiver for product need in his life. Here , details are not provided to the customer but a brief is provided about the product and a meeting is fixed up with convenience of the customer and then the role of sales managers come into the existence.

 HOT CALLING HOT CALLING is another way for making the market where the caller calls those people where people are known to the people. Caller uses the reference to approach the people for the product.

SURVEY :SURVEY is been one of the powerful tool which help one to generate sales , building good relationship with people ,and moreover, it help one to provide an analytical view about the customer behavior . customer behavior helps one to know the targeted segment with a closer view.

TITLE

: CONSUMER BEHAVIOR TOWARDS PENSION PLANS

SIGNIFICANCE TO THE INDUSTRY : This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends and help to know the customer needs from more close eyes. SIGNIFICANE FOR THE RESEARCHER : This study will facilitates the market penetration view of HDFC SLIC. It will provide the statistics of untapped area for surveyed location and help them to be ready with strategies after understanding the response and requirement behavior of the targeted population. Thus, the possibility of sales generation increases. OBJECTIVES:Objective One

To use the survey tool for making PRs and generating sales .

To provide the company with information of customer's Insurance policy if they have any and looking for the scope of need for another policy.. To know the scope for recent planning.

Objective Two

To determine customers perception towards pension plan

To study the most preferred provisions available with the individual for To determine the concerns before chosing pension plan

his old age To determine the mindset of them for private and public insurance companies.

METHODOLOGY OF STUDY Procedure: The procedure that followed enlisted below: Studying the product Decision on objective needed to be work on. Developing Survey instrument Getting questionnaire filled through interacting with different age groups, sex, monthly income and occupation. Finally analyzing the data of various areas and trying to study about various influence factors. Process adopted: Gaining knowledge about the product: Reading about the product was the first step undertaken. This gave not only in depth knowledge about what is been offered by the insurance but also proved useful while developing the questionnaire. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below:
Research objectives been transformed into information objectives.

Step 1

Step 2

The appropriate data collection methods been determined

Step 3

The information required by each objective is being determined.

Research objectives been transformed into information objectives.

Step 5 Step 4

Specific Questions/Scale Measurement format is Question/Scale Measurements been evaluated. developed.

Step 6

Research objectives been transformed into information objectives.

Step 7

The number of information needed is being determined.

Step 8

The questionnaire and layout been evaluated.

Revise the questionnaire layout if needed. Step 9

Step1 0

The Questionnaire format been finalized.

Customer Survey: The survey is important tool as clear perception of people about the product can be estimated and known. The need levels of the people regarding the insurance product been observed through survey. It was very useful in knowing about the requirements of the people. Their expectations from the company and product.

RESEARCH DESIGN: EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH The research is primarily both exploratory as well as descriptive in nature. The sources of information is primary. The questionnaire was prepared under the guidance of branch manager and was approved by him. RESPONDENTS FOR SURVEY government employees businessmen

SAMPLING PLAN: The target population of the study included the general population above the age of 25 yrs Target population Sampling frame Sample size Location Adults meeting qualifications-over 25 years, belong to government job, businessman class. Urban class in the delhi region 100 Nangloi market and NCERT campus

LIMITATIONS OF THE RESEARCH 1. The research is confined to a certain parts of DELHI and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

INCOME GROUP OPTION UPTO 1 LAKH 1 LAKH 1.5LAKH 1.5LAKH 2 LAKH 2 LAKH 3 LAKH ABOVE 3 LAKH NO. OF RESPONDENTS 0 32 28 32 8 SHARE 0% 32 % 28 % 32 % 8%

8% 32%

0%

Upto1 lakh

32%

1 lakh - 1.5 lakh 1.5 lakh - 2 lakh 2 lakh - 3 lakh above 3 lakh

28%

INTERPRETATION 32% of targeted population earns between 1.5 lakh to 3 lakh ,which represents that these individuals look forward for tax saving upto the maximum cap provided by government under 80 cc . These individuals would always look for innovative products which help them to save maximum tax for longer time period. HDFC has such innovative product like SIMPLI LIFE.

DEPENDENCY IN OLD AGE OPTIONS DEPENDENT ON CHILDREN DEPENDENT ON PF,GF ETC DEPENDENT ON POLICY CORPUS NO. OF RESPONDENTS 32 28 40 SHARE 32% 28% 40%

32% 40% Dependent on children Dependent on PF.GF Policy corpus 28%

INTERPRETATION In the current scenario, individual find their future security in policy corpus money which is said by 40% respondents and second chunk of 32 % respondents see their security in their children. P.F, G.F is somehow forced saving for the government employees and rest of the population is truly and fully dependent on their children, which definitely shows the scope for awareness. This trend urges awareness among population about the need of the pension planning.

AVAILABLE PROVISIONS OPTIONS GOVERNMENT INSURANCE CO. NO PROVISION NO . OF RESPONDENTS 24 32 44 SHARE 24% 32% 44%

24% 44% Government Insurance companies No provision 32%

INTERPRETATION 44% of the population is still not secured for their old age expenses and needs. Which represents the failure of concept of pension plans penetration in the mind of people. Government companies has been successful to maintain its goodwill in the investment market as it is backed by the GOVERNMENT which assured for the safe money investment. Most of the individuals would always like to see themselves as customer of LIC only or have pension from the government pension schemes. private Insurance companies sees competition not only from various available govt. pension schemes but from LIC also.

CONCERNS FOR BUYING PENSION POLICY OPTION SECURITY INVESTMENT TAX BENEFIT ANY OTHER NO. OF RESPONDENTS 44 32 16 8 SHARES 44% 32% 16% 8%

8% 16% 44% Security Investment Tax Benefit Anyother 32%

INTERPRETATION IN the above pie chart it is clearly shown that security 44% and investment 32% are the main concerns for buying pension policy. Security is the main concern but the trend is been changing now individuals concerns are security as well as investment for growing their money. The main purpose of insurance is to cover the financial or economic loss that occurs to the family in case of the uncertain death of the policy holder. But now a days this trend is changing. Along with protection (life cover), a savings element is being added to insurance. With the introduction of the new unit linked plans in the market, policy holders get the option to choose where their money will be invested. They can invest their money in the equity market, debt market, money market or a combination of these. The debt and money markets usually have low risk attached whereas the equity market is a high risk investment option.

VESTING AGE FOR CORPUS MONEY

OPTION 50 YEARS 50 60 YEARS ABOVE 60 DID NOT REPLY NO. OF RESPONDENTS 0 60 16 24 SHARE 0% 60% 16% 24%

24%

0% 50 years 50 - 60 years 60 years 60% Did not reply

16%

INTERPRETATION Most of the individuals expects their corpus money between the age of 50 to 60 .At this age most of the individual retires and want the corpus money in face of annuities so that their standard of living wont disturb. Maximum a policy vesting age is 70 years and if most of the individual prefers to receive their annuities at age after 50 which signifies the reduction of the term of paying premium.

EXPERTS HELP FOR FINANCIAL SOLUTION OPTIONS YES NO NO. OF RESPONDENTS 44 56 SHARE 44% 56%

44% Yes 56% No

INTERPRETATION 44% would like to have advise of financial expert before investing their money. Which shows their neutral awareness towards the investment solutions present and want to have helping hand. on the contrary , 56% of individuals do not take suggestion of advisors because people are ignorant about the such help available for them and do not even prefer because they are fully aware about the investment tools and posses the updates of the market trends.

RETURN EXPECTATIONS OPTIONS UPTO 10% 10% - 15% 15%-20% ABOVE 20% NO. OF RESPONDENTS 24 32 36 8 SHARE 24% 32% 36% 8%

8%

24% Upto 10% 10% - 15% 15% - 20% 32% More Than 20%

36%

36% of population expects 15% - 20% returns on their investment which shows their expectation from their invested money and prefer only that investment tool which can give them expected returns. Introduction of ULPIS in the insurance product has been at par of fulfilling of customer expectation for higher returns. ULIP products are becoming very popular for higher returns among people. 24% of the surveyed population expects only 10% where they are satisfied that they are getting higher returns than an investment in banks FD or RD. Most consumers are willing to adapt to some amount of risk but still want some guaranteed returns. Therefore the bulk of investment should be made in the balanced fund with 50% debt and 50% equity. The returns on the Secure Fund are guaranteed as these involve investment is government securities and the debt market. But the returns on these instruments are low (8 10%). If the company invests in shares, returns are higher (39%) but correspondingly risk borne by the policy holder is also higher. Therefore a good combination of the two instruments is often a wise choice.

HDFC SLI MARKET PENETRATION OPTION YES NO NO. OF REPONSES 44 56 SHARE 44% 56%

44% Yes 56% No

INTERPRETATION 44% of individuals are the customer of HDFC Std. LIFE .which shows their scope for market segmentation for pension products and present ample opportunities before the HDFC to understand the need and design the innovative products and tap the untapped market. HDFC should compare the behavior of customer towards the other companies product and accordingly analyse the need closely for making their strategies .

FUTURE PLANNING OPTIONS YES NO NO. OF RESPONSES 28 72 SHARE 28% 72%

28%

Yes

72%

No

INTERPRETATION 30 % of population look forward for future investment and has desire for insurance plan. First of HDFC should target this segment which is looking forward for the investment in the recent future keeping the requirement of customer in the mind.

FINDINGS OF GOVERNMENT AND BUSINESSMEN BUYING BEHAVIOR

INCOME GROUP OPTION 1 LAKH 1 LAKH 2LAKH 1.5 LAKH 2 LAKH 2 LAKH 3.5 LAKH ABOVE 3.5 LAKH RESPONSES OF GOVT. 0 12 12 16 0 RESPONSES OF BUSINESS MEN 0 20 16 16 8

GOVERNMENT EMPLOYEE

0% 40% 30%

1 LAC 1 LAC - 1.5 LAC 1.5LAC - 2LAC 2LAC - 3.5 LAC

30%

ABOVE 3.5 LAC

BUSINESSMEN

13%

0%

33%

1 LAC 1 LAC - 1.5 LAC 1.5LAC - 2LAC 2LAC - 3.5 LAC ABOVE 3.5 LAC

27% 27%

DEPENDENCY IN OLD AGE OPTION CHILDREN PF,GF POLICY CORPUS RESPONSES OF GOVT. 4 36 4 RESPONSES OF BUSINESSMEN 24 0 32

GOVERNMENT EMPLOYEE

9%

9%
children pf,gf policy corpus

82%

BUSINESSMEN

43% 57% 0%

CHILDREN P.F ,G.F POLICY CORPUS

AVAILABLE PROVISIONS
OPTION GOVERNMENT INSURANCE CO. NO PROVISION RESPONSES OF GOVT. 36 4 4 RESPONSES OF BUSINESSMEN 0 28 32

GOVERNMENT EMPLOYEE

9%

9%

GOVERNMENT INSURANCE COMPANIES 82% NO PROVISION

BUSINESSMEN

GOVERNMENT 47% 53% INSURANCE COMPANIES NO PROVISION

CONCERNS FOR BUYING PENSION POLICY

OPTIONS SECURITY INVESTMENT TAX BENEFIT ANY OTHER RESPONSES OF GOVT. 16 4 8 12 RESPONSES OF BUSI NESSMEN 28 24 12 0

GOVERNMENT EMPLOYEE

30%

40%

SECURITY INVESTMENT TAX BENEFIT ANY OTHER

20%

10%

BUSINESSMEN

19%

0% 43% SECURITY INVESTMENT TAX BENEFIT ANY OTHER

38%

VESTING AGE FOR CORPUS MONEY OPTION 50 YEARS 50 60 YEARS ABOVE 60 GOVERNMET EMPLOYEE RESPONSES OF GOVT. 0 32 8 RESPONSES OF BUSINESSMEN 0 28 4

20%

0% 50 YEARS 50 - 60 YEARS 60 YEARS 80%

BUSINESSMEN

13%

0% 50 YEARS 50 - 60 YEARS 60 YEARS 87%

EXPERTS HELP FOR FINANCIAL SOLUTION OPTION YES NO RESPONSES OF GOVT. 20 20 RESPONSES OF BUSINESS MEN 28 32

GOVERNMENT EMPLOYEE

50%

50%

YES NO

BUSINESSMEN

47% 53%

YES NO

RETURN EXPECTATIONS
OPTION UPTO 10% 10% - 15% 15%-20% ABOVE 20% RESPONSES OF GOVT. 16 12 4 8 RESPONSES OF BUSINESSMEN 16 16 28 0

GOVERNMENT EMPLOYEE

20% 40% 10% 30%

UPTO 10% 10% - 15% 15% - 20% ABOVE 20%

BUSINESSMEN

0% 46%

27%

UPTO 10% 10% - 15% 15% - 20% ABOVE 20%

27%

HDFC SLI MARKET PENETRATION OPTION YES NO RESPONSES OF GOVT. 0 40 RESPONSES OF BUSINESSMEN 20 40

GOVERNMENT EMPLOYEE

0% YES NO 100%

BUSINESSMEN

33% YES NO 67%

FUTURE PLANNING
OPTION YES NO RESPONSES OF GOVT. 12 24 RESPONSES OF BUSINESSMEN 16 44

GOVERNMENT EMPLOYEE

33% YES 3 67% NO

BUSINESS MEN

27% YES NO 73%

ANALYSIS
GOVERNMENT EMPLOYEES :-

Government employees are of very rigid mentality towards investment. They are not as receptive as other professional are. One of the reasons could be the age of the workforce working there. In the government offices I found middle aged or upper aged people on the job in comparison of the private job. A government employee states JEETA GOVERNMENT KE SAATH MARTA GOVERNMENT KE SAATH .This could be one of the factor which make them inclined towards LIC. Facts support few things. These employees earns between 2 lakh to 3.5 lakh per annum which is the 49% of the surveyed population. It shows their saving capacity, where they are more interested in tax saving upto the 1 lac prescribed limit and investment motive is only and only to save tax. .as their old age expenses are concerned 78% of employees are dependent on the PF .GF amount with no concerns that the amount whether would be sufficient? Government employees always favor investments in government associated companies instead they are always dependent on the provision which government made for their old age security. Insurance companies have very small customer base from this segment of society. When particularly concerns for investment is asked in regards pension plans they se it in the light of security than investment. Their attitude towards pension plans is security than growing their money. Most of the employees find themselves in need of money from investment between 50 to 60 where they look out for other means to engage in. government employees do prefer to take experts advice but awareness of presence of such advisors is still lacks. Government employees expect returns on their investment between 10 % 15%. These employees are of close ended behavior towards future investment planning. HDFC has 0% penetration for such market segment.

BEHAVIOR OF BUSINESSMEN :-

Business class have very positive behavior towards investment . they always look forward for investments and keep themselves update about investment tools variations and news. Businessmen have no such differences with the private or public company. Business class always look forward to grow their money and expects high returns. Facts supports that above 13% of survey population earns more than 3.5 lakh per annum .these people have good amount of income at disposable which they can invest apart of tax saving. These people always try to invest in their business and prefer those investment where withdrawal are as early as possible. Businessmen are quite dependent on the policy corpus for their old age care simultaneously on their children as their sons are carrying on with their business . those people do not have provision for old age because they are reinvesting money in their business and would not like to see any investment for now or totally dependent on the children. This segment see pension plan as an investment and security tool where they can secure their future and grow their money. Normally these people find themselves at the need for money from corpus at the age between 50 60. Those people who invest apart in their business would like to take advisors advice .this segment expects high returns between 15% to 20%.HDFC has 33% of penetration to this segment.

OBJECTION HANDLING I consider objection handling to be one of platform where we actually can face customers objection for the product and company. My interaction with customer gave me the privilege to know some questions which are often asked by customer,which are as follows:1. Why should they choose HDFC STD. LIFE over LIC ? In such case, managers always ask for their preference of LIC over HDFC.. prospect most often favors for security of their money with LIC. For such case manager replies about the HDFC more efficient services and modified plans which caters to the needs of prospect and otherwise the governing body IRDA is same for both insurance companies so, objection of security of money is sorted out. 2. Usually individuals try to cook up stories and want to have debate with managers about the fraud of pvt. Companies. For such cases, managers always ask for details and proposes to sort the problem with even any other company. With this reply if the story is fake then he always try to escape from the situation and changes the topic. Initially this has convincing impact on the prospect.

RECRUITMENT AND FINANACIAL ADVISORS SELECTION An FC is the person who we recruit and who in turn procures business for the insurance company.They are the mediator between the market & the company. Recruitment of financial advisors plays an important role in an insurance companies .financial advisors works on the front line to bring the business from the market. A financial advisor is given incentives in accordance of brought business. Each financial advisors works under sales development manager ,who is actually responsible from the companies to track all the record of activities of FCs and guiding them in all the way for better efficiency in their work. Role of a Financial Consultant Meet people and presents services Understanding their financial needs Customizes life insurance plans Provides efficient after sales support MATRIX TO TARGET INDIVIDUALS FOR FCs

Others are people closest to you . Networked are people who are well networked.

Influential are affluent people. Networked and Influential.

Profiles for FC Housewives Businessmen Accountants / Financial Consultants Sales Persons employed in Private/Public Companies Office Bearers of leading Clubs / Associations VRS/retired people Ex -servicemen Teachers Eligibility Criteria to become a Financial Consultant Minimum Eligibility Criteria (Any 3/5 Criteria required, first criteria being mandatory) Age : 30 and Above Married. Education : Graduate or higher. Has spent > 3 years in the city of current residence. Income > 3 Lakhs per annum.

Pre-requisites required to become a Financial

Consultant Should undergo IRDA Training for 50 hrs. Should Pass the pre-recruitment exam conducted by Insurance Institute of India. Types of Training Given and fees

1. 2.

Off Line (Class Room) Training Fee : Rs. 925 /- ( Off Line ) On Line Training Fee : Rs. 825 /- ( On Line )

AMPLE AWARDS Awards Club memberships Holidays around India Trip abroad

Recruitment process of FCs

Fill up of Agency form IRDA Training (100 hrs) IRDA Exam

Fail

Pass

Exit

Product Training

Traditional Pr.

ULIP Product

Internal Assessment

Fail

Pass

Certification Send to market field)

QUESTIONNAIRE

Name: __________________ Age : __________________ Occupation: ______________ Phone no.:________________ E-Mail Id :________________ 1. To which income group, do you belong ? Upto 1 lakh p.a 1.5 lakh -2 lakh p.a 1 lakh -1.5 lakh p.a 2 lakh -3.5 lakh p.a

Above 3 lakhs p.a 2. How have you plan for your old age expenses to be fulfilled ? Dependence on your children Dependence on P.F, G.F etc. Dependence on policy corpus 3. Do you have pension provision with you, through ? Government Insurance companies No provision 4. What are the concerns for buying pension policy? Security Investment Tax benefits

Any other 5. Which insurance company gives you better service in pension plan? Rate according 5 (best) to 1(worse). Icici prudential HDFC std. life Max new york life Birla sun life Others 6. At what age, do you expect your annuities? 50 years 50 60 years 60 above 7. Do you take financial solution from experts ? Yes No 8. How much return do you expect from your investment ? Upto 10% 15% - 20% 10% - 15% more than 20%

9. Have you taken any insurance policy from HDFC Standard life ? Yes No

10. Are you looking for any saving plan Recently /In future ? Yes If yes, preferences, . REFERENCES :1.... 2. 3. 4. No

Bibliography
1. india.dalalstreet.biz/.../2008/05/market-share-of-life-insurance.html 2. in.answers.yahoo.com/question/index?qid... 3. business.mapsofindia.com/india-insurance/market.html 4. apnapaisa.com