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Chapter: - 1

INTRODUCTION OF HDFC LIFE

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INRODUCTION OF HDFC LIFE


Risk is found everywhere. It cannot be eliminated together, only it can be minimized. Human life is full of risk. There is a risk when a man walks on the road, travels in a bus, train or an aero plane and when he is engaged in trade, profession or business. Also there is a risk when property is destroyed by fire, flood, earthquakes, etc. Thus, the involvement of risk is inescapable.

Risk Drought Earthquakes Floods Storms

Percentage 4% 20% 35% 41%

Risk
4% 41% 20% Drought Earthquakes 35% Floods Storms

Insurance is a method by which we can spread over the risk. It is a way of reducing uncertainty of occurrence of an event. Insurance is entirely a method of cooperative endeavor where in the loss caused by a particular risk is spread over among a large section of persons. Insurance is a process in which a large number of persons collect their small contributions, called the premium, in a pool and out of this losses are paid to the suffering persons.

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The Business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it meets some of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits.

THE HISTORY OF INSURANCE


Although insurance may have been used by the Babylonians, the Greeks and the Romans, insurance in the modern sense originated in the Mediterranean during the 13th or 14th century. The earliest references to insurance which have so far been traced appear in the accounts of North Italian merchantbankers who dominated the international trade of Europe at that time. Marine insurance is the oldest form of insurance (1347), followed by life insurance some 300 years later and fire insurance (1666). Insurance in these fields followed the pattern that had been established in England.

Socio Economic Significance of Insurance


The primary function of insurance is to spread the financial losses of insured members over the whole of the insuring community, by compensating the unfortunate few from the funds built up from the contributions of all, including fortunate many who escape losses. Besides, the practice of insurance has many secondary or subsidiary functions which contribute to the welfare of the individual or society. It tends more and more to transform our modern social order, fosters private and public interests, individual prudence, acts as an accelerator and as stabilizer of economic growth. Insurance has attained so great a popularity and importance these days that it has now become almost a home word. The socio economic significance of insurance has been well realized all over the world and it will be exaggeration to say that individual world without insurance is like a car without shock

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absorber. A father with a large family to support rests easy because he is insured against death; the farmer with his crop ripening in his field knows his insurance protects him against financial ruin by flood, rain, fire and windstorms, fog etc. The same is true about businessmen. Therefore, it is safe to believe insurance is the shock absorber of industry and individual.

Practically, every kind of risk to which human being or property may be liable can now be insured against such risks. No trade, commerce and industry can function efficiently without insurance.

Insurance only spreads the financial losses of insured members over the whole of the remaining insured whose assets are not damaged. Thus, insurance company acts as a middle man for such social co-operation. It is infect a co-operative device designed to compensate one against losses because insurer collect premium from a large number of policy holders and distribute to the victims only.

TYPES OF INSURANCE

INSURANCE

LIFE INSURANCE

NON LIFE INSURANCE

Term life Whole life insurance Endowment type plans Children Assurance plans Annuity and pension plan Fire Marine Aviation Accident Miscellaneous

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MILESTONES
Received the PC Quest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment, including identity management respectively. Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award. HDFCSL expanded its reach in the Banc assurance channel by arrangements with co-operative banks in the rural areas. Continued to increase its focus on quality service, by putting in place a robust mechanism to capture 'Voice of the Customer' through service audits across its offices. This was complemented by use of technology that enabled capture of all interactions with customers across all touch points Sar Utha Ke Jiyo was honored as 'Among India's 60 Glorious Advertising Moments. The advertisements of the company were ranked 6th amongst 'The 10 most effective Advertisements' in September 2007. Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system. In addition the company also bagged the EMC storage award for being the most innovative users of storage and storage management. Pension Plan Tops Mint's Survey of Best TV Ads. HDFC Standard Life's advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards Bhagvan Mahavir College of Business Administration Page | 5

organized by the Advertising Agencies Association of India (AAAI). The 3 awards are the highest won by any single brand in the financial services business (including banking, mutual fund, insurance and other financial services). Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity Economic Times, the leading business publication of India.

DEVELOPMENT OF INSURANCE IN INDIA


Marine insurance is the oldest type of insurance and one of the earliest records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by life insurance some 300 years later. Fire insurance, however, did not begin until after the Great fire of London in 1666. In India all the three insurance developed as under:

Marine Insurance
There are references that marine insurance was practiced in India three thousand years ago; there is no evidence that insurance in its present form was practiced prior to the twelfth century. In fact, British insurers introduced general insurance, in its modern form in India, when they opened their branches around 1700. The Sun Insurance Office Ltd (a foreign company) started its operation in Calcutta in the year 1710. In our country the following four companies have been authorized to carry on the general insurance business including marine insurance: 1) National Insurance Company, Calcutta. 2) New India Assurance Company, Bombay. 3) Oriental Fire and General Company, Bombay. 4) United India Fire and General Insurance Company, Madras.

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Life Insurance
In India life insurance business was started by Europeans with the establishment of Oriental Life Insurance Company in 1818. Later On, in 1871, Bombay Mutual Life Insurance came into existence. The Oriental Government Security Life Assurance came into being in 1874. The Life Insurance business was nationalized in the year 1956.

Fire Insurance
In our country the fire insurance started with the establishment of Triton Insurance Company in Calcutta in 1850. The North British Mercantile Company came into existence in 1861. There was slow progress of fire insurance in our country and with the nationalization of general insurance business: fire insurance is now being transacted by the four subsidiary companies of General Insurance Corporation of India

ROLE OF INSURANCE IN ECONOMIC


For economic development, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth.

As on 31.3.2002, the total investments of the LIC exceeded Rs.245,000 crores, of which more than Rs. 130,000 corers were directly in Government (both State and Centre) related securities, more than Rs. 12,000 crores in the State Electricity Boards, nearly Rs.20,000 cores in housing loans and Rs.4,000 crores in water supply and sewerage systems. Other investments included road transport, setting up of industrial estates and directly financing industry. Investments in the corporate sector (shares, debentures and term loans) exceeded Rs. 30,000 crores. These directly affect the lives of the people and their economic well-being.

The L.I.C is not an exception. All good life insurance companies have huge funds, accumulated through the payments of small amounts of premium of individuals. These funds are invested in ways that contribute substantially for the Bhagvan Mahavir College of Business Administration Page | 7

economic development of the countries in which they do business. The private insurers in India are new and had not built up funds in 2002. But, in course of time, they also would be directly and indirectly contributing to the country's economic development.

A life insurance company will have large funds. These amounts are collected by way of premiums. Every premium represents a risk that is covered by that

premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and field in trust for the benefit of the policyholders. The management of life insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. That is why successful insurance companies would hot be found investing in speculative ventures. Their investments, as in die case of the L.I.C., benefit the society at large.

Apart from investments, business and trade benefit through insurance. Without insurance, trade and commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to financiers, if their debtors default.

PURPOSE & NEED OF INSURANCE


Assets are insured, because they are likely to be destroyed or made non function before the expected life time, through accidental occurrences. Such possible occurrences are called perils. Fire, Floods, breakdowns, lightning, earthquakes, etcat perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks ate the consequential losses or damages. The risk to an owner of a building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of the building, the contents in me and the extent of damage.

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The risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, at the building may not have been affected at all. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word possibility implies uncertainty. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of human being, death is certain, but the time of death is uncertain. The person is insured, because of the uncertainty about the time of his death. In the case of person who is terminally ill, the time of death is not uncertain, though not exactly known. It would be soon. He cannot be insured.

Insurance does not protect asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The risk can sometimes be avoided, through better safety and damage control measures. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on the asset.

They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged, insurance only compensates for the losses- and that too, not fully. \ Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of managers of non economic losses are love and affection of parents, leadership of manager, sentiment attachments to family heirlooms, innovative and creative abilities, etc

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LIFE INSURANCE MARKET IN INDIA


INDIAN COMPANY HDFC Tata Group Bajaj Max India IDBI ICICI ING FOREIGN COMPANY Standard Life AIG Allianz New York Principal Prudential Vyasa Bank

ADVANTAGES OF LIFE INSURANCE


Life insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the money set aside in the past, plus interest. This is so in a fixed deposit in national savings certificates, in mutual funds and all other savings instruments. If the money is invested in buying shares and stocks, there is the risk of the money being lost in the fluctuations of the stocks market. Even if there is no loss, the available money at any time is the amount invested plus appreciation. In life insurance, however, the fund available is not the total of the savings already made (premiums paid), but the amount one wished to have at the end of the savings period (which is the next 20 or 30 years). The final fund is secured from the very beginning. One has to pay for it only as long as one lives or for a lesser period, if so chosen. The assured fund is not affected. There is no other scheme which provides this kind of benefit. Therefore life insurance has no substitute.

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A comparison with other form of savings will show that life insurance has the following advantages. In the event of death, the settlement is easy. The heirs can collect the moneys
quicker, because of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund, etc.

There is a certain amount of compulsion to go though the plan of savings. In


other forms, if one charges the original plan of savings, there is no loss. In insurance, there is a loss.

Creditors cannot claim the life insurance moneys. They can be protected
against attachments by courts.

There are tax benefits, both in income tax and in capital gains. Marketability and liquidity are better. A life insurance policy is property and
can be transferred or mortgaged. Loans can be raised against the policy.

It is possible to protect a life insurance policy from being attached by debtors. The beneficiaries interests will remain secure.

The following tenets help agent to believe in the benefits of life insurance. Such faith will enhance their determination to sell and their perseverance. Life insurance is not only the best possible way for family protection. There is
no other way.

Insurance is the only way to safeguard against the unpredictable risks of the
future. It is unavoidable.

The terms of life are hard. The terms of insurance are easy. The value of human life is far greater than the value of property. Only
insurance can preserve it.

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Life insurance is not surpassed by any other savings or investment instrument,


in terms of security, marketability, stability of value or liquidity.

Insurance, including life insurance, is essential for the conservation of many


businesses, just as it is in the preservation of homes.

Life insurance enhances the existing standards of living. Life insurance helps people live financially solvent lives. Life insurance perpetuates life, liberty and the pursuit of happiness. Life insurance is a way of life.

LIMITATION OF INSURANCE
Insurance cannot protect against all kind of risk. If any risk is not in harmony
with government policy, insurance cannot protect. For example, there is no protection against a risk in smuggling business.

The Loss which has been evaluated in money that is only secured by
insurance.

Insurance cannot offer protection in case of risk existing due to unexpected


events. For example, economic instability due to trade cycle, aptitude of public, changes in fashions & habits, unexpected and unprecedented changes in government policy. All such cannot get insurance protection.

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INTRODUCTION OF THE COMPANY


HDFC 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 Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch network, organizing an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards. Our core values are drilled down to all levels of employees, as these are inviolable. We continue to promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be perceived as an institution with high moral standing. Since our inception in 2000, when the Indian insurance space was opened for private participation, we have consistently focused on setting benchmarks in all aspect on insurance business. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12, 2000,

The HDFC was established in 1977, for the purpose of providing the home
loan for long term

HDFC is rated as (AAA) by the CRISIL and ICRA. In the year 2004, it was awarded DREAM HOME AWARD. It has got 3rd rank in the investment management, in year 2006. One of the largest financial institution of India with more then 2 million
satisfied customer base.

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HDFC HAS FOLLOWING GROUP COMPANIES


HDFC Ltd. HDFC Standard life HDFC Mutual fund HDFC Securities HDFC Bank HDFC realty.com HDFC CIBIL HDFC Chubb General Insurance Co. Ltd. HDFC Centre For Housing Finance HDFC Distribution HDFC Intel net HDFC Securitization HDFC Deposits HDFC Home Loans

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About standard life (u.k.) Founded in 1825, and is now one of the largest life Insurance companies in the
world.

Strong reputation build over 182 years Currently over 5 mn. policyholders benefiting from the services offered Europes largest mutual life insurer

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RATING BY CUSTOMER

Customer survey Company name LIC (Government) score 59 55 52 49 48 48 45 45 Rank 1 2 3 4 5 5 7 7

ICICI Prudential HDFC STANDARD LIFE TATA AIG AVIVA LIFE BAJAJ ALLIANZ ING VYSA MAX NEW YORK

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Values
1. Integrity Honest and Truthful in every action Transparency Stick to principles irrespective of outcome Be just and fair to everyone. 2. Innovation Building a store house of treasures through experiences. Looking at every product and process through fresh eyes everyday. 3. Customer Centric
Understand customer expectations by keeping him as the centre point.

Listen actively Understand customer needs and deliver solutions. Customer interest always supreme. 4. People Care
Genuinely understanding the people we work with.

Guiding their development through training and support. Helping


potential. them develop requisite skills to reach their true

Know them on a personal front. Create an environment of trust and Respect for the time of others.

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5. Team Work Whole team takes the ownership of the deliverables. Consult all involved, understand and arrive at a common objective. Co-operate and support across departmental boundaries. Identify strengths and weaknesses according allocate responsibility to achieve
common objectives.

6. Joy and Simplicity


Environment that fosters fun in the form of celebration of individual and team success. To encourage work as fun that contributed to personal and organizational development. Joy is also derived through simple processes and forms.

VISION STATEMENTS
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

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DIFFERENT PLANS OF HDFC SLIC

Plans
90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East West

Traditional
Traditional

ULIP
North

Traditional plan is a life insurance solution that provides the client only
guaranteed return.

ULIP (Unit Linked Insurance Plan) Unit Linked insurance plan is a life insurance solution that provides the
client with the benefits of protection & flexibility in investment .It is solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time.

COMPANYS PRODUCT BASKET


Traditional Protection Protection plan ULIP Enhanced life protection

Endowment Plan Investment Childrens Plan

Assurance Young star plus Endowment plus

Personal pension plan Pension Plans

Pension Plus

Money Back Plan Savings Plans Single Premium Whole of Life Insurance

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Swot Analysis Of HDFC


Strength :1. Customized and Flexible Insurance Solutions and large product portfolio 2. Robust Risk control Framework 3. Network of 500 branches and agents across 700 cities 4. Strong Financial Expertise and popular advertising 5. Globally, Standard Life plc has 1.5 million shareholders in more than 50 countries and over 6 million customers 6. Alliance between HDFC and Standard Life giving a strong brand backing

Weakness:1. Less penetration in rural areas 2. Controversies like job cuts, racism and data loss have affected image

Opportunity:1. Growing rural market and better opportunities in the semi-urban areas 2. Group Insurance through large employers

Threats:1. Economic instability and global crisis 2. Entry of new NBFCs in the sector

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CHAPTER-2

Human Resource Department

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INTRODUCTION
The personnel department in and organization plays a very vital role as it deals totally with the human resources of an organizations, their needs wants and even their problems. A personnel manager must have all the qualities of a leader in order to manage the human resources in the best possible manner and thereby make effective utilization of its resources

The personnel department in and organization plays a very vital role as it deals totally with the human resources of an organizations, their needs wants and even their problems. A personnel manager must have all the qualities of a leader in order to manage the human resources in the best possible manner and thereby make effective utilization of its resources

The reason behind these resources being so very important is that human beings are social animals who without a satisfactory work environment wouldnt work efficiently and effectively

The task of a personnel manager in an organization is a very challenging task as the whole of an organization and its various departments consists of human beings whose behavior is quite irrational It is very difficult to judge the behavior of an individual at as it may differ from person to person

Definition
The administrative discipline of hiring and developing employees so that they become more valuable to the organization.

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Human Resource management includes


(1) Conducting job analyses, (2) Planning personnel needs, and recruitment, (3) Selecting the right people for the job, (4) Orienting and training, (5) Determining and managing wages and salaries, (6) Providing benefits and incentives, (7) Appraising performance, (8) Resolving disputes, (9) Communicating with all employees at all levels. Formerly called personnel management.

HUMAN RESOURCE PLANNING PROCESS


1. Designing the Management System
o

A crosscutting issue in human resource planning is to ensure that a proper system is in place to handle the process. The overall aim of this system is to manage human resources in line with organizational goals. The system is in charge of human resource plans, policies, procedures and best practices. For example, the system should track emerging human resource management trends, such as outsourcing certain noncore functions, adopting flexible work practices and the increased use of information technology, and, if appropriate, implement them.

2. Environmental Analysis
o

The first step in the human resource planning process is to understand the context of human resource management. Human resource managers should understand both internal and external environments. Data on external environments includes the following: the general status of the economy, industry, technology and competition; labor

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market regulations and trends; unemployment rate; skills available; and the age and sex distribution of the labor force. Internal data required include short- and long-term organizational plans and strategies and the current status of the organization's human resources.

3. Forecasting Human Resource Demand


o

The aim of forecasting is to determine the number and type of employees needed in the future. Forecasting should consider the past and the present requirements as well as future Organizational directions. Bottom-up forecasting is one of the methods used to estimate future human resource needs by gathering human resource needs of various organizational units.

4. Analyzing Supply
o

Organizations can hire personnel from internal and external sources. The skill inventories method is one of the techniques used to keep track of internal supply. Skill inventories are manual or computerized systems that keep records of employee experience, education and special skills. A forecast of the supply of employees projected to join the organization from outside sources, given current recruitment activities, is also necessary.

5. Reconciliation and Planning


o

The final step in human resource planning is developing action plans based on the gathered data, analysis and available alternatives. The key issue is that the plans should be acceptable to both top management and employees. Plans should be prioritized and their key players and barriers to success identified. Some of these plans include employee utilization plan, appraisal plan, training and management development plan and human resource supply plan.

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RECRUITMENT & SELECTION


Recruitment
Recruitment is concerned with developing suitable techniques for attracting more and more candidates. The aim of personnel planning is to determine the needs for persons both in terms of number and type. For deciding about the number both present and future requirements should be taken into account. If there are expansion plans in near future then these requirements should also be considered. Besides number, the type of persons needed is also important. The educational and technical requirements to manage various jobs should e properly analysed so that right type of persons are employed.

Recruitment is sometimes confused with employment. The two are not one and the same. Recruitment is just one step in the process of employment. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. When more persons apply for jobs then there will be scope for recruiting better persons

Definition
Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.

Process Of Recruitment Company Adopts


Personnel Planning Job Analysis Recruitment Planning Strategy Development Searching Screening Evaluation and control

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Sources of Recruitment Before an organization actively begins to recruit applicants it should consider
the mostly likely source of the type of employee it needs. Some companies try to develop new sources while most try to tackle the existing sources they have. These sources accordingly may be termed as internal and external.

Internal Sources
This is one of the important sources of recruitment. The employees already working in the organization may be more suitable for higher jobs than those recruited outside. Internal sources consist of the following :

1. Present Employees Promotions and transfers among the present employees can be a good source of internal recruitment.

2. Employee Referrals In an organization with a large number of employees referrals can provide quite a large pool of potential organizational members.

3. Former Employee These are another internal source of recruitment. Some retired employees may be willing to come back to work.

4. Previous Employees
Those who have previously applied for jobs can be contacted by mail.

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External Sources

1. Advertisement 2 . Professional Organization 3. Data Bank 4. Recruiting Agencies 5. Competitors 6. Displaced Persons 7. E-recruitment

Applied policy of recruitment


In insurance, most of recruitment is done by the internal sources i.e. present employee, exchange agencies etc

In the HDFC standard life insurance, recruitment and selection is done from the pool of qualified persons by checking the background and references, ability of the person.

After that process, person has to give one exam of IRDA (insurance Regulatory and Development Authority). IRDA is the one that control all the insurance company or whole insurance sector. If applicant can pass the exam, he is given the license and after that he can work as a Financial Consultan

Selection
Selection procedure employs several methods of collecting information

about the candidates qualifications, experience, physical and mental ability,


nature and behaviour, knowledge and aptitude for judging whether a given Applicant is suitable or not for the job. Therefore the selection procedure is

not a single act but is essentially a series of methods or stages by which

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Different types of information can be secured through various selection techniques. At each step facts may come tonight, which are useful for comparison with the job requirement and employee specifications

Steps in Scientific Selection Procedure Job analysis


Job analysis is the basis for selecting the right candidates. Every organization should finalize the job analysis, job description, job specification and employee specifications before proceeding to the next step of selection.

Application form
Application form is also known as application blank. The techniques of application blank are traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirement of information based on the size of the company, nature of business

Activities, type and level of the job etc. Information is generally required on the following items in the application forms:

Personal background information Educational qualifications Work experience Salary (drawing and expecting) Personal attainments including likes and dislikes References

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Written examination
Organizations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate s ability in arithmetical calculations, to know the candidate s attitude towards the job, to measure the candidate s aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.

Preliminary interview
The preliminary interview is to solicit necessary information from the prospective applications and to assess the applicant s suitability to the job. An assistant in the personnel department may conduct this preliminary interview. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expectations, attitude towards job, age, physical appearance and other requirements etc. Thus, preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as stand up interviews or sizing up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate.

Tests
Skill tests These tests measure the candidate s ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also.

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Achievement test These tests are conducted when applicants claim to know something as

these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the candidate s achievement in his career is tested regarding his knowledge about the job and actual work experience.

Group discussion This test is administered through the group discussion approach to

solve a problem under which candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, coordinating and concluding skills.

Interest test These tests are inventories of the likes and dislikes of candidates in

relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in a job and job success. Interest inventories are less faked and they may not fluctuate after the age of 3.

Personality test These tests prove deeply to discover clues to an individual s value

system, his emotional reactions and maturity and characteristic mood. They are expressed in such traits like self-confidence, tact, distrust, initiative, emotional control, optimism, decisiveness, sociability, conformity, objectivity, patience, fear, judgment dominance or submission, impulsiveness, sympathy, integrity, stability and self-confidence. Bhagvan Mahavir College of Business Administration Page | 32

Interview Final interview follows after tests. This is the most essential step in the

process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The different types of interviews.

TRAINING AND DEVELOPMENT


In HDFC life , training is given to new selected employee to improve the skill and knowledge regarding the work to be done. For that purpose HDFC organizes the training programmer for new employee. Generally this training programmer is held after candidates pass the exam of IRDA. This training is organized for one week. They are given training by well trained faculty. They are given the knowledge about the products of the insurance of particular company.

In the insurance company, there are two way for the training

1. Class room training (IRDA) 2. product knowledge training

Class room training


In the class room training, the training is given to the fresher. The benefit of training room is that, all candidates can exchange their idea and can get solution of their problem if any. And face to face training is more effective than other way of training and candidates can acquire the knowledge in best possible manner.

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F.C. has to attend two types of training. First training is related to the exam of IRDA. In this training, basic knowledge of the insurance is given to F.C. based on which he / she has to give the exam.

After that, financial consultant has to take the product training in which he / she is given the knowledge of the various product of the insurance company. After completing this training, he is able to start the work.

MOTIVATION
In simple words, motivation is a force that makes each one to work hard & to achieve something resulting in self satisfaction. Or it is an art of getting people to do required work.

Need for motivation in insurance


To improve the performance of person For achieving excellent out comes For develop sense of pride

Generally the motivations are in the form of monetary or non monetary In insurance, monetary incentive includes the commission which is given in the basis of the performance of the financial consultant.

Non monetary incentives includes award, reconviction, admire of the performance. If financial consultant performs to the some extent, he is given non monetary incentives like gifts, club member ship, etc

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ATTENDANCE POLICIES
Objective;
To create awareness & communicate the attendance guidelines to all employees of HDFCSL

Applicability
All employees who are on the rolls and those who have been employed on contractual basis with HDFC Standard Life Insurance

Company. All Insurance Associates are also required to mark attendance on Empower.

Procedure
Salary for a month is processed based on attendance records for the entire month as per Empower. For E.g.: For processing salary for the month of Jan, 2007 we consider the attendance from 1st Jan 2013 to 31 Jan 2013. In case the attendance is not regularized for 7 consecutive days for the last week of the month, the salary for that month will not be processed. In case the attendance is regularized post 18th of the month, the salary for that month will be paid out in the immediate following month.

Attendance to be marked on Empower everyday for work attended. The attendance marked for the day worked can be viewed through

attendance calendar available in Empower. For centers where Empower is not available, the day wise attendance data is to be provided by the concerned HR via mail in an excel format. Given below is the process flow:

Online Attendance
Online attendance is captured on Empower and will be considered for all those employees who are in locations which have HDFCSL Intranet, as per their latest location record on Empower. Bhagvan Mahavir College of Business Administration Page | 35

TRANSFER POLICIES
Transfers
The change in location of an employee during employment with the company .

Objective
To provide guidelines to employees about the rules governing the transfers of the employees.

Scope
The policy is applicable to confirmed employees of HDFC Standard Life.

Types of transfers
A. Transfer executed by the company to meet business requirements of the company as per the terms of the employment

B. A transfer arising out of the internal recruitment process through the jobs advertised by the HR department & the promotions within the company.

C. A transfer requested by the employee on the grounds of his personal reasons by way of formal application & which is accepted by the company

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Rules & Guidelines governing the transfers for Type A & B transfers:
1. The employee would be provided reimbursements for expenditure incurred on travel for his family which includes spouse, two children & dependent parents from the base location to new location as per the travel policy 2. At the new location the employee and his family would be provided hotel accommodation as per the travel policy for not more than 4 days to locate & settle into the new accommodation. The employee would be allowed to avail 4 days of special leave to effect the transfer of his household and his family in to the new location. 3. The employee would be eligible to receive a one-time reimbursement of expenditure incurred on packing & transportation of his personal household items. The following procedure should be adopted The employee should send 2 quotations of reputed Movers & Packers / transporters to Administration Manager at BKC for verification & approval. The quotation should mention the distance to be traveled , the volume of items to be moved ( in cubic feet ) , the list of items along-with its valuation for the purpose of transit insurance etc The reimbursement would be made to the employee after he submits the bills to company. 4. The employee would be eligible for financial assistance to obtain leased accommodation in the transferred location. Employee has to apply to Head HR through his reporting manager for availing such assistance. The deposit amount will be paid by the company to the leasing party directly In event of an employee availing this assistance the employee would be charged an interest of 10 % p.a. on the deposit amount .The interest amount would be deducted on equated monthly installments basis from the monthly salary of the employee. Bhagvan Mahavir College of Business Administration Page | 37

The company would reimburse brokerage amount equivalent to one month rent or Rs15000/- (Rs .Fifteen thousand only) whichever is lower. A copy of the lease agreement along with the original stamped brokerages receipt should be submitted to the company for payment of the reimbursement.

5. The House rent allowance would be paid as per the rate of HRA prescribed & applicable in HDFC SL to the transferred location. In the event cost to company (CTC )of the employee would be maintained .

Rules & Guidelines governing the transfers for Type C transfers


Request Transfer: A transfer requested by the employee on the grounds of his personal reasons by way of formal application & which the company accepts .

Eligibility: Confirmed employees would be eligible to apply for a request transfer.

1. The employee should make a formal application to his reporting manager detailing the reasons of request. 2. The reporting manager should forward the application with his comments & recommendations to his functional head with a copy to HR. 3. Subsequent to the transfer the rate of HRA of any other location salary / benefit would be applicable as applicable to the location. 4. In case the request transfer is accepted the employee would be required to bear the cost of moving & packing and all other associated expenses.

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LEAVE RULES & REGULATIONS


The company while keeping up with its employee friendly work culture expects its employees to sustain the professionalism and believes in providing a balance between work and family. It is necessary that we adhere to some guidelines while availing leave to ensure fairness and discipline. Here is how we can avail various types of leave. All eligible employees are kindly advised to adhere to these guidelines: Employees in the E/F band, whose confirmation period is 3 months would be eligible for 1 CL and 2 SLs during their probation period. All other employees whose confirmation period is 6 months or 1 year would be eligible for 2 CLs and 3 SLs during their probation period. This leave if availed will be treated as advance and adjusted against the leave balance of the employee once he/she gets confirmed. However, if the employee leaves during probation period or is terminated, this leave would be treated as Leave without pay and the same would be deducted from the Full &Final settlement.

Privilege Leave (PL):


Eligibility : Subject to Employee confirmation in the organization. Quantum : 30 days per calendar year. (January to December). PL will be credited to your leave account at the end of every month proportionately @ 2.5 days per month. In case an employee works for minimum 15 days, then 1 PL will be credited to his/her account, if he/she completes minimum 30 days, only then he will be eligible for 2.5 days. Leave without pay will not be considered while calculating PL. Accumulation: All unutilized PL will be carried forward and will be added to the next years quantum. PL is encashable at the time of employee exit.

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Authorization: Sanction of PL request is a must prior to proceeding on leave. All employees need to take approval from their respective reporting manager. If a Holiday falls during PL period, the holiday will be considered as PL and not a holiday. In such a case, the holiday in question will be forfeited. You are required to inform the sanctioning authority along with your leave application the address and contact nos during your leave period. Extension of PL will not be encouraged.

Sick Leave (SL)


Quantum: 5 days per calendar year. Unveiled SL will be carried forward in the next year and will be added to the next years SL. How to avail: SL can be applied after it has been availed and should be requested for authorization. SL, which is beyond 2 days, will require fitness certificate from a registered medical practitioner, which should be submitted through sanctioning authority to HR while resuming duty. The company reserves the right to examine the employee during/ after SL period by the companys medical officer if found necessary. Accumulation: All unutilized SL will be carried forward and will be added to the next years quantum. SL is not considered for encashment at the time of employee exit.It is important that the concerned employee communicates his/her unavailability due to sickness to his/her senior on that day at the earliest.

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Casual Leave (CL)


Quantum: 8 days per calendar year. CL will be credited to your leave

account every 1st January each year. Casual leave is provided for unforeseen and urgent circumstances. However, CL will have to be necessarily applied at least one day in advance or in case of the urgency and you are unable to attend duty, you need to communicate your absence on that day at the earliest to your superior. In such case, immediately upon resuming duty, request for CL should be made.A maximum of 3 days CL can be availed of at a stretch. Unclaimed CL is not carried forward and cannot be encased also.

Maternity Leave ( ML)


Quantum : 90 days ( Up to 45 days before & 45 days after delivery). To

avail this leave, one needs to inform respective functional head/ branch manager about the expected period of absence and provide medical certificate from the medical practitioner certifying the approximate date & month of delivery. This document (photocopy) should be forwarded to HR through the functional head/branch manager. Maternity Leave is granted for two pregnancies only.

Educational scholarship scheme


With a view to encourage employees to take up professional courses in life insurance and other specific disciplines, the Company has decided to offer educational scholarships to confirmed employees who have completed two years of continuous service from the date of joining. The course being undertaken should add value to the employees' contribution in his/her respective function. The objective of this policy is to facilitate employees to acquire higher education, Diploma, Degree, Post Graduate Degree/Diploma which would also help HDFC SL enhance its talent pool and meet the career aspirations of the employees as well as the future business requirements of the organization.

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THE GENERAL TERMS AND CONDITIONS ARE AS UNDER:


1. Confirmed permanent employees will be eligible for the Educational Scholarship scheme after completion of two years of continuous service with HDFC SL from the date of joining. 2. An employee who would like to undergo a particular course should discuss the same with his/her immediate Branch manager / Functional head. The list of courses approved for this purpose are enclosed in annexure A. This list will be reviewed from time to time. The scheme will not be applicable to those wanting to do actuarial courses unless they are a part of the Actuarial department. This request will be reviewed by Branch manager / Functional head in relation to the employee's current job responsibilities and HDFC SL requirements, and the same will be forwarded to the Functional Head. The Functional head will mention his comments on the employees application and will forward it to the HR department for further processing. In case the request of an employee is not approved, the employee will be communicated the reasons for the same. 3. The organization will reimburse up to 50% of the actual course fees or Rs. 25000/- which ever is less whichever is less under the educational scholarship scheme. The employee will have to clear the respective course examination in the first attempt to claim the educational scholarship.

The fees for this purpose will include Tuition fees Examination fees University fees Any other fees that the management deems fit.

4. Once the request is approved, the employee can then undergo the course keeping the following guidelines in mind. a. The hours of attendance for the course should be outside the Company's normal working hours. Bhagvan Mahavir College of Business Administration Page | 42

b. The course should not interfere with the discharge of the employees current job responsibilities. c. The completion of any such course shall not necessarily call for a promotion or reassignment of duties.

5. The disbursement of the amount that is approved by the management will be reimbursed only after completion of the course in the 1st attempt and on submission of the original mark-sheet with receipts.

6. Employees will be entitled only for one course in tenure of 3 years.

7. Employees availing the education scholarship are not at a liberty to use HDFC SL facilities, equipment or material without the prior permission of the concerned manager, functional head or Head HR.

8. Any employee who leaves the company within 5 years from the date of availing the scholarship amount will be required to reimburse the entire amount to the company.

9. The management reserves the right to amend modify etc. any of the terms and conditions indicated herein and its decision in the matter shall be final and binding.

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CHAPTER-3

FINANCE DEPARTMENT

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INTRODUCTION
Financial management means procurement of funds at minimum costs and effective utilization in order to maximize the wealth of shareholders.

The term of financial management refers to its relationship with the closelyrelated fields of economics and accounting, its functions, scope and objectives. Financial management, as an academic discipline, has undergone fundamental changes in its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature

pertaining to financial management, a broader scope so as to include, in addition to procurement of funds, efficient use of resources is universally recognized.

Financial management, as an integral part of overall management, is not a totally, independent area. It draws heavily on related disciplines and fields of study, such as economics, accounting, marketing, production and quantitative methods. A part from economics and accounting, finance also draws for its key day to day decisions on supportive disciplines such as marketing, production and quantitative methods, for instance, financial managers should consider the impact of new product development and promotion plans made in the marketing area since their plans will require capital outlays and have an impact on the projected cash flows.

Finally, the tools of analysis developed in the quantitative methods area are helpful in analyzing complex financial management problem. Organization makes their planning for the financial sources which are very helpful in the future course of action. Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to: Create wealth for the business Generate cash, and Provide and adequate return on investment bearing in mind the risks that the business is taking and the resources invested. Bhagvan Mahavir College of Business Administration Page | 45

CONCEPT OF FINACING
1. Financial Planning
Management needs to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions.

2.

Financial Control

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives.

3. Financial Decision-Making
A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profits further.

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FINANCIAL DECISIONS

Financial management consists of four major decisions or functions which are as discussed as below.

1.

Investment decision

Investment decision is the long term, strategic policies of an organization. Investment decisions have a long term effect on the working of an organization. Thus an enterprise should invest in proposals which maximize share value.

2.

Financing decision

There are various sources of capital like equity, preference shares, borrowed funds, and retained profits. The finance manager has to select a proper mix of owned at the minimum cost. A financing decision adds to the value to the value of shareholders.

3.

Dividend decision

Profits can either be distributed or reinvested into the business. The proportion of profits that needs to be distributed and that needs to be retained is a crucial decision. It is the job of finance manager to satisfy the shareholders as well as claw back into the business. This division of profit when done in an optimum manner maximizes shareholder value.

4.

Liquidity decision

An enterprise needs finance for the day today activities for the smooth functioning. The brand of FM that deals with investments in current assets & liabilities, in other words investment is the net working capital comprises of the liquidity decisions. Bhagvan Mahavir College of Business Administration Page | 47

DEPRECIATION POLICY IN HDFC LIFE

Depreciation is charged as per the below mentioned rates

Asset

Rate as per Companies Act Rate as per Income Tax Act (Written Down Value method) - (Written WDV Down Value

method) - WDV Residential units 5 % Office Premises 10 %

Buildings

Residential Units 1.63 % Office Premises 1.63 % (Straight Line Method SLM)

Computers Air Conditioners

25 % (SLM) & 13.91 %

60 % 15 %

Refrigerator Furniture & Fixtures Office Equipment Electrical Installations Vehicles (Motor Cars) 18.10 % 13.91 % 13.91 % 25.89 % 10 % 15 % 15 % 15 %

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Companies Act

1. The rate 13.91 % is applicable to Plant and Machinery (applicable to A/C,

Office Equipment and Electrical Installations).


2. The Depreciation under Companies Act for Computers is 16.21 % (SLM).

However, the rate adopted by us is 25 % SLM.


3. Except Computers, all the rates are as per Companies Act. 4. No depreciation is charged in the year of sale.

5. Depreciation is charged for the full year in the year of purchase.

Income Tax Act

1. Machinery and Plant other than the specified 15 % (applicable to A/C,

Office Equipment and Electrical Installations).


2. Rates of premises, computers, vehicles and furniture specified.

3. If the asset is put to use for 180 days or more in a year, 100 % depreciation is provided during the financial year. If the period is less than 180 days ---50 % depreciation is provided for tax purposes.

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FINACIAL STATEMENT FOR THE YEAR 2009-10 1.Cash flow


Particular Operating activities Amount received form policy holder Amount received to reinsurance Amount paid to policy holder Amount paid as commission Payment of employee and suppliers Deposited with RBI Income tax paid Net cash flow from operating activities Investing activities Purchases of fix assets Sales of fix assets Investment Interest income Dividend income Net cash flow from investing activities Financing activities Issue of share Net cash flow from financing activities Net increase in cash and cash equivalents 1,720,000 1,720,000 -1,282,298 5,250,000 5,250,000 -384,578 4,493,238 70,817,804 -312,168 -12,053,422 -5,417,619 -13,207,483 0 -309,142 39,821,183 155,217,800 -217,752 5,444 -48,767,468 48,17,558 1,338,737 -42,823,481 54,747,190 -384,636 -5,414,218 -4,136,736 -15,583,363 100,00 -230,833 29,453,152 68,782,936 -581,822 3,159 -39,057,231 3,805,029 745,975 -35,081,730 2010 2009

Cash and cash equivalent as at beginning of the 4,108,660 year Cash and cash equivalent as at end of the year 2,826,362

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2. BALANCE SHEET
Particular Liability Share capital Reserve fund Credit change a/c Credit change a/c policy liabilities insurance reserve Provision for link liabilities Add: Fair value change total provision Funds funds for provision Surplus Profit and loss Total Assets Share holder policy holder Assets held to cover link liabilities Loans Fix assets Cash and bank Advance Current asset Provision Net working capital Miscellaneous expense Other Asset Total 6,304,757 43,415,382 155,217,800 40,366 1,143,777 2,826,362 4,917,758 12,28,585 187,617 4,725,082 14,664,966 0 216,610,966 4,291,597 30,152,727 68,782,936 30,248 1,451,346 4,108,660 5,428,699 8,820,225 208,813 508,321 11,913,122 0 117,130,297 Page | 51 19,680,000 552,892 184,435 205,087 37,666,908 0127,701,636 27,516,164 155,217,800 1,490,013 1,064,831 0 6,95,56,324 216,061,966 17,958,180 552,892 -77,610 -296,885 29,092,419 0 84,085,083 -15,302,147 68,782,936 586,395 531,970 0 5,51,83,763 117,130,297 2010 2009

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3. RATIO ANALYSIS
(A) CURRENT RATIO

CURRENT ASSETS:

Cash and bank balances: 2,826,362

Advances and Other Assets: 4,917,758

CURRENT LIABILITIES: 12,281,585

CURRENT RATIO =

2009-10 =

=0.63:1

2008-09 =

=1.08:1

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1.2 1 0.8 0.6 0.4 0.2 0 2009-2010 2008-2009 Column1

Comment

Current ratio of HDFC LIFE insurance, has 0.63:1, it means it is less than 1 that indicates firms ability to meet current obligations & greater the safety of funds of short-term creditors. It also indicates the sound solvency of the company is lover.

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(B) LIQUID RATIO

LIQUID RATIO:

2009-10

= 0.60:1

2008-09

= 0.57:1

0.605 0.6 0.595 0.59 0.585 0.58 0.575 0.57 0.565 0.56 0.555 2009-2010 2008-2009 LiQuid Ratio

Comment
The liquid ratio of HDFC life in 2009 was 0.57 and in 2010 is .60 so increasing the liquid ratio and company have a good liquid position over the year.

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(C)Gross profit ratio

GROSS PROFIT RATIO

2009-10

= 30.25 %

2008-09

= 21.76%

35 30 25 20 15 10 5 0 2009-2010 2009-2010 Column1

Comment:The gross profit ratio of HDFC LIFE in 2009 was 21.76% and in 2010 is 30.25% so increasing the gross profit of HDFE LIFE over the year and company become a strong in his financial performance.

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(D) NET PROFIT RATIO

NET PROFIT RATIO

2009-10

= 22.09%

2008-09 =

= 21.58%

22.1 22 21.9 21.8 21.7 21.6 21.5 21.4 21.3 2009-2010 2008-2009

Series 3

Comment:The net profit ratio of HDFC LIFE in 2009 was 21.58% and in 2010 is 22.09% therefore the net profit is increasing. The company have good profit margin. The company should more and more profit for the future.

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(E)Net retention ratio

NET RETENTION RATIO

2009-10

= 99.29 %

2008-09

=99.17%

99.3 99.28 99.26 99.24 99.22 99.2 99.18 99.16 99.14 99.12 99.1 2009-2010 2008-2009 Series 3

Comment:The net retention ratio of HDFC LIFE in 2009 was 99.17% and in 2010 is 99.29% therefore increasing the net retention ratio of the HDFE LIFE. So company become successful for maintain the premium level over the year.

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(F)RATIO OF EXPENSES OF MANAGEMENT


RATIO OF EXPENSES OF MANAGEMENT

2009-10

= 29.04 %

2008-09

=39.38%

40 35 30 25 20 15 10 5 0 2009-2010 2008-2009 Series 3

Comment:The ratio of expense of management of HDFC LIFE in 2009 was 39.38% and in 2010 is 29.07% so decreasing the management expenses over the year

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(G)COMMISSION RATIO

COMMISSION RATIO =

2009-10 =

= 7.50 %

2008-09 =

=7.64%

7.65

7.6

7.55

7.5

7.45

7.4 2009-2010 2008-2009

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(H)

RATIO

OF

POLICY

HOLDERS

LIABILITIES

TO

SHAREHOLDERS FUNDS:
RATIO OF POLICY HOLDERS LIABILITIES TO SHAREHOLDERS FUNDS :

2009-10

= 597.44 %

2008-09

= 677.89%

680 660 640 620 600 580 560 540 2009-2010 2008-2009 Series 3

(I) RETURN ON INVESTMENT


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RETURN ON INVESTMENT =

2009-10 =

= 24.86%

2008-09 =

=13.60%

25 20 15 Series 3 10 5 0 2009-2010 2008-2009

Comment:The return on investment ratio of HDFC LIFE in 2009 was 13.60% and in 2010 is 24.86% there increasing the return on investment over the year so company become a profitable over the year.

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(J) DEBT-EQUITY RATIO


DEBT-EQUITY RATIO =

* 100

2009-10 =

=1.58%

2008-09

=1.25%

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009-2010 2008-2009 Series 3

Comment:
The debt-equity ratio of HDFC LIFE in 2009 was 1.25% and in 2010 is 1.58% there increasing the level of equity against long term debt.

TREND ANALYSES
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Asset

Asset

2009-2010

2010-2011

2009-2010(%)

20102011(%)

Share holder policy holder

6,304,757 43,415,382

4,291,597 30,152,727 68,782,936

100% 100%

68% 69%

Assets held to cover 155,217,800 link liabilities Loans Fix assets Cash and bank Advance Current Asset Provision Net working capital 40,366 1,143,777 2,826,362 4,917,758 12,28,585 187,617 4,725,082

100%

44%

30,248 1,451,346 4,108,660 5,428,699 8,820,225 208,813 508,321 11,913,122 0 117,130,297

100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

73% 126% 145% 110% 717% 111% 10% 81%

Miscellaneous expense 14,664,966 Other Asset Total 0 2,16,610,966

5%

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Liability

Liability

2009-2010

2010-2011

20092010(%)

20102011(%)
91% 100% 142% 42% 77% 100% 0

Share capital Reserve fund Credit change a/c Credit change a/c policy liabilities insurance reserve Provision liabilities Add: Fair value change total provision Funds funds for provision Surplus Profit and loss Conclusion:for

19,680,000 552,892 184,435 205,087 37,666,908 0link 127,701,636

17,958,180 552,892 -77,610 -296,885 29,092,419 0 84,085,083

100% 100% 100% 100% 100% 100% 100%

27,516,164 155,217,800 1,490,013 1,064,831 0 6,95,56,324

-15,302,147 68,782,936 586,395 531,970 0 5,51,83,763

100% 100% 100% 100% 100% 100% 44% 39% 49% 100% 79%

According to trend analysis the hdfc life doing improvement in 2010-2011 compare to 2009-2010 so company is growing in following way 1). The liquid position of the company improving around 145 % 2).The increase in fixed asset is financed by issue of debenture 3).Higher improvement in current asset the compare the two year 717% are improvement in 2010-2011

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COMMON SIZE STATEMENTS

Asset
Share holder policy holder

2010
4,291,597 30,152,727

2010 (%) 3.66 25.74 58.72 0.025 1.24 3.5 4.63 7.53 0.18 4.34 10.17 100

Assets held to cover 68,782,936 link liabilities Loans Fix assets Cash and bank Advance Current Asset Provision Net working capital 30,248 1,451,346 4,108,660 5,428,699 8,820,225 208,813 508,321

Miscellaneous expense 11,913,122 Total 117130297

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TREND ANALYSES
Share Capital
share capital PARTICULAR Authorised Capital Issued Capital Subscribed Capital Called-up Capital 2009-10 30,000,000 19,680,000 19,680,000 19,680,000 2008-09 30,000,000 17,960,000 17,960,000 17,960,000 incre/decre 0 17,20,000 17,20,000 17,20,000 % 0 9.57 9.57 9.57

share capital %

10

0 0 17,20,000 17,20,000 17,20,000 share capital % 30,000,000 17,960,000 17,960,000 17,960,000 30,000,000 19,680,000 19,680,000 19,680,000 Authorised Capital Capital Issued Subscribed Capital Called-up Capital

CONCLUSION:
in the year 2008-09 the Authorized share capital was 30,000,000 and at current year the Authorized share capital are same there are no changes arise in Authorized share capital between two year and Called-up Capital, Subscribed Capital , Issued Capital were 17,960,000 and in current year increase by 17,20,000 so as compare to the previous year increase by 9.57 %

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RESERVES AND SURPLUS

PARTICULAR Revaluation Reserve

2009-10 552,892

2008-09 552,892

incre/decre 0

% 0

Revaluation Reserve
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Revaluation Reserve

CONCLUSION:

in the year 2008-09 the Revaluation Reserve are 5,52,892 and at current year are same there are no changes arise in the current year,

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Investments Shareholders

PARTICULAR Government Securities Equity Debentures / Bonds Investment Properties Infrastructure Other Investments

2009-10 2,471,702 457,377 208,675 757,540 1,108,284 145,085

2008-09 2,180,149 233,783 100,531 757,540 386,899 64,797

incre/decre 291,553 223,594 108,144 0 721,385 80,288

% 13.373077 95.641685 107.57279 0 186.45305 123.90697

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

% incre/decre 2008-09 2009-10

CONCLUSION
in the year 2008-09 the investment in Government Securities was 2180149 and at current year are having 2471702 so increase by 291,553 and so 13.37 % are increase as compare to previous. And Equity, Debentures / Bonds, Investment Properties, Infrastructure, Other Investments, are increase by respectively 95.64%, 107%,0%, 186% 123%.

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Working Capital
current assets Cash Deposit Accounts Current Accounts 2009-10 279,148 1,340,581 1,206,633 2008-09 668,726 1,751,354 1,653,161 incre/decre -389,578 -410,773 -446,528 % -58.25674 -23.4546 -27.01056

current liabilities Agents Balances Premiums advance Security Deposits Sundry creditors Claims Outstanding Unallocated Premium received

2009-10 422,567 in 296,400

2008-09 525,903 278,748

incre/decre -103,336 17,652

% -19.64925 6.3326015

21,441 5,078,198 433,935 232,117

21,441 3,894,536 198,361 274,095

0 1,183,662 235,574 -41,978

0 30.392889 118.76024 -15.31513

100% 80% 60% 40% 20% 0% -20%

% -58.25674491 -23.4545957 -27.01055735 % incre/decre -389,578 410,773 -446,528 incre/decre 2008-09 668,726 1,751,354 1,653,161 2008-09 2009-10 279,148 1,340,581 1,206,633 2009-10

CONCLUSION:
in the year 2008-09 the current asset of cash, Deposit Accounts, Current Accounts are decrease by as compare to the previous year respectivliy,-58%, -23%, 27%,. And current liabilities of Agents Balances, Premiums received in advance, Security Deposits, Sundry creditors are decrease or increase as compare to the previous are respectively -19%, 6.33%,0%, 30.39%,

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Comparison of funds for year 2010:


Fund Growth fund Balance manage fund Equity fund Liquid fund manage 28 31 manage 34 62 32 48 2009 38 2010 73

80 70 60 50 40 30 20 10 0 Growth fund Balance Equity Liquid manage manage fund manage fund fund

2009 2010

In above diagram comparison of funds performance for year 2010.

The above diagram represents the comparison of various funds. The growth fund in 2009 was 38% and at present in 2010 are 73% so increased by 35%. And second fund is balance manage fund there was 32%in 2009 and at present jn 2010 is 48% so increase by 16%. And third fund is equity manage fund there was in 2009 was 34% and at present in 2010 are 62% so increase by 28%. And forth fund are liquid fund there was in 2009 was 28% and present in 2010 are 31% so increase by 4%.

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Equity markets

INDICES

31-5-12

30-4-2012

1month of return

rate 1year rate of return


-12.35 -11.44 -12.34 -14.50 -23.86

BSE Sensex S&P CNX Nifty BSE 100 BSE Mid Cap BSE Small Cap

16,219 4,924 4,942 5,908 6,271

17,319 5,248 5,268 6,316 6,765

-6.35 -6.17 -6.19 -6.46 7.30

Equities extended the positive momentum in the month of May. Buoyed by a clear mandate in the general elections in favour of United Progressive Alliance (UPA), the BSE Sensex crossed 14,000 mark. Sensex rose by 28.3 % during the month of May. The NSE Nifty index too grew by 28.1 %. Markets viewed better prospects of initiating policy reforms on account of clear

majority to the incumbent coalition and as a result attracted great interest from the Foreign Institutional Investors. All round buying in the stocks across the sectors lifted the equities market.

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CHAPTER-4

Marketing Department
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INTRODUCTION
Marketing department i s core of base of any corporate. Marketing means the process of distribution. Marketing involves two important things. 1. The matching of an article of trade with markets. 2. The process of exchange. P. Kotler defined M a r k e t i n g a s , The s e t of human act i vi t i es di r e c t e d a t facaliting a n d consummating of exchanges. According to American Marketing Association, Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of idea, goods and services to created exchanges that satisfy individual and organizational goals. Any damn fool can put on a deal, but it takes genius, faith and perseverance to create a Brand.
DAVID OGILY

A product is something that is made in a factory, A brand is something that is bought by customers, A product can be copied by a competitor. But brand is unique. A product can be quickly outdated, a success brand is timeless.
STEPHEN KING

Marketing deals with identifying and meeting human and social needs. One of the shortest Definitions of marketing are meeting needs profitably. Marketing research is the function which links the Depositors and

Borrowers and public to the bank through information used to identify and define marketing opportunities and problems generate and evaluate marketing actions: monitor performance and improve understanding as a process. The bank is done marketing for getting more advances from the public. Bhagvan Mahavir College of Business Administration Page | 73

MARKET SHARE

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HDFC LIFE Limited.


HDFC is Indias leading housing finance institution and has helped build more

than23, 00,000 houses since its incorporation in 1977


In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor

base now stands at around 1 million depositors.


Rated by CRISIL and ICRA for the 10th consecutive year Stable and experienced management High service standards 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.

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 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 in2008 Bhagvan Mahavir College of Business Administration Page | 75

Objective

Focus on the productivity of each consultant, corporate or individual,

while stressing on the quality of proposals


Quick roll out of Products Efficiency of Operations

Meet Social & Rural sector obligations

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LINE OF ORIGINATION

National Head Zonal Manager Regional Manager

Territory Manager

Branch Manager

Business Development Manager

Sales Development Manager

Financial Consultant

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7 PS OF MARKETING IN HDFC LIFE INSURANCE

Introduction
Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated are invested in productive heads. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your positive contributions.

Insurance marketing
The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organization survives and thrives in the right perspective.

Marketing --Mix for Insurance Companies

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The to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight-age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing

I.e. the product, its price, place, promotion, people, process & physical attraction.

The above mentioned 7 P's can be used for marketing of Insurance products and banking services, in the following manner:

1. PRODUCT
A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. In India, the HDFC LILE Insurance companies offering insurance services to the users. Apart from offering life insurance policies, they also offer underwriting and consulting services.

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HDFC PLAN

Protection plan in HDFC LIFE


HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

Children plan in HDFC LIFE


HDFC YoungStar Super II HDFC YoungStar Super Premium HDFC Children's Plan

Savings & Investment Plans


HDFC Endowment Assurance Plan HDFC New Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Savings Assurance Plan

Women's Plans
HDFC Life Smart Woman Plan

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IN BRIEF THE ALL PLANS AS UNDER

Protection plan in HDFC LIFE HDFC Term Assurance Plan:Term Assurance plan is designed to help secure your family's financial needs in case of uncertainties. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one's family in the unfortunate event of one's death. This helps your family to maintain their financial independence, even when you are not around.

Features

Advantages

High cover at a very nominal cost. Flexibility to choose the Sum Assured. Additional benefit options can be availed at marginal costs. Premium amount remains the same over the term of the policy in case of regular premium

Option of paying single premium or regular premium. Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961.

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HDFC Premium Guarantee Plan:HDFC Premium Guarantee Plan is an insurance plan that comes with twin advantage of protection and return of premiums* on maturity. So, you can enjoy life knowing that your family s financial independence is secure even in your absence. And your premiums are yours on your survival at maturity.

Features

Advantages

High cover at a very nominal cost. Flexibility to choose the Sum Assured. Return of all your premiums paid on maturity* Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961.

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HDFC Loan Cover Term Assurance Plan:This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It provides the beneficiary with a lump sum amount, which is a decreasing percentage of the initial Sum Assured. This means that as the outstanding loan decreases as per the loan schedule, the cover under the policy also decreases as per the policy schedule.

Features

Advantages

Flexibility to choose the Sum Assured. Decreasing Sum Assurance as the outstanding loan decreases ensures that you do not pay for the protection you don't need.

Additional Optional Benefit is available at a nominal cost. Option of paying single premium or regular premium. Tax benefits are offered under section 80C, 80 D and 10(10D) of the Income Tax Act, 1961.

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HDFC Home Loan Protection Plan:This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It ensures that your family does not lose the dream house that you have purchased for them, in case you are not around to repay the outstanding monthly installments on your housing loan. This provides you with the comfort of knowing that in your absence, a sum of money will be available towards repaying your housing loan, making sure that your family will be secure in your family home.

Features

Advantages

A decreasing Sum Assured payable if you die during the term of the contract. This sum assured is intended to help pay-off your outstanding home loan

Policy can be availed by paying a single premium in advance The premium amount can be included in the housing loan and repaid as part of the loan repayment installments

Decreasing Sum Assured makes sure that you do not pay for protection you don't need

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Children plan in HDFC LIFE

HDFC Youngster Super II:There is no bigger joy than being able to fulfill your child's dream on your own. With HDFC SL Youngster Super II you can fulfill your child's immediate and future needs. So tomorrow when your child needs your support you don't have to depend on anyone else.

Features

Advantages

In case of your unfortunate demise or critical illness, we will pay the greater of Sum Assured (less partial withdrawals) or Fund Value to your child (Beneficiary). The policy will terminate. We will pay 100% of all the future regular premiums to the Beneficiary as and when due, on an annual basis. Please refer to the sales brochure for details.

You can customize the ideal plan for your child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required.

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HDFC Youngster Super Premium:HDFC SL Youngster Super Premium you can fulfill your child's immediate and future needs- all on your own. Start saving now with this unit linked insurance plan and be assured that savings for your child will continue, even in your absence. This plan offers you choice of cover options and benefit payment preferences- all designed to suit your needs.

Features

Advantages

The Triple Insurance Benefit helps you secure your child's immediate and future needs. In case of your unfortunate demise or critical illness, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums. With Save -n- Gain benefit ,we will pay 50% of all the original regular premiums towards your policy and 50% of the premiums will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately.

You can customize the ideal plan for your child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required and Benefit payment preference.

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HDFC Children's Plan:As a parent, your priority is your child's future and being able to meet your child's dreams and aspirations. With our HDFC Children's Plan, you can start building your savings today and ensure a bright future for your child. This 'With Profits' plan is designed to secure your child's future by giving your child (Beneficiary) a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term.

Features

Advantages

Lets you customize an ideal plan for your child and provide invaluable financial support

The Double Benefit Plan Option helps you secure your child's immediate and future needs. In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums and the policy continues. And on maturity of the plan, we will pay you the Sum Assured plus Bonuses Declared

You can choose to pay your premium as either Annually, HalfYearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 196

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Savings & Investment Plans


HDFC Endowment Assurance Plan:As a judicious family man, your priority is to secure the wellbeing of those who depend on you. Not just for today, but also for the long term. With our HDFC Endowment Assurance Plan, you can start building your savings today and ensure that your family remains financially independent, even when you are not around. This 'With Profits' plan is designed to secure your family's future by giving your family a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term.

Features

Advantages

Ideal way to secure your long-term financial goals and your family's financial independence by giving a lump sum payment (basic Sum Assured plus any Bonus Additions) on survival up to Maturity date

Provides invaluable protection to your family by way of lump sum payment in case of unfortunate demise within policy term

Gives you the flexibility to customise your policy according to your needs by adding any one of the 3benefit options available.

Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961

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HDFC New Money Back Plan :Being self reliant is a nice feeling. Its comforting to be assured that you have necessary funds to live a fulfilling life. With HDFC SL New Money Back Plan, you will get regular cash back at periodic intervals, so that you can fulfill your dreams & aspirations. This plan also offers the financial protection to your loved ones when they need it the most, enabling you to live life with peace of mind.

Features

Advantages

Money Back on completion of every 4 years, you would get a percentage of your sum assured as cash payout. The payout will be as defined below.

Provides valuable protection to your family by way of lump sum payment i.e. Sum Assured plus attaching bonsues, in case of unfortunate demise within policy term, over and above any earlier payouts.

You can choose to pay your premium as either Annually, Half-Yearly, Monthly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961

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HDFC Single Premium Whole of Life Insurance Plan:Ideally, just how spending comes to you, so must saving and investing. You are able to finance your expenses and take care of your family's needs in present times. However, to ensure that family is able to maintain the same standard of living in the future, you need to make the right kind of investment today. HDFC Single Premium Whole of Life Plan is a tailor made plan well suited to meet your long-term investment needs and help you maintain your family's financial independence. This single premium investment plan is a Whole of Life plan aimed at providing long-term real growth of your money.

Features

Advantages

This participating plan is a Whole of Life plan aimed at providing long-term real growth for your money

By nature, this is a whole life policy where the term extends for the life However, you can decide on the policy term by using a feature built into it. For a period of 4 weeks, after any one of the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the Sum Assured plus any attaching bonuses, in full. Once money has been received, your policy will cease or you may also continue the policy for your whole life

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HDFC Savings Assurance Plan:Despite your best efforts, you do not end up saving regularly for your family's and your future. Unexpected expenses, unplanned purchases and often, sheer lack of time defeat your efforts. Don't you wish that someone would take on the responsibility of regularly saving your money for you? HDFC Savings Assurance Plan is a 'With Profits' savings plan which helps you conveniently build your long-term savings and ensure that your family is protected even if you are not around.

Features

Advantages

The chosen amount is automatically invested from your bank account into the plan

On death during the first year, a sum equal to 80% of premiums received is payable. On death after the first year and during the policy term, all premiums paid to date will be returned with compound interest calculated at 6% per annum, subject to a maximum of the Sum Assured plus Reversionary Bonuses declared till date

Tax benefit under Section 80C and 10(10D) of Income Tax Act 1961, subject to provisions contained therein.

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2. PRICING

HDFC Term Assurance Plan HDFC Premium Guarantee Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan HDFC YoungStar Super II HDFC YoungStar Super Premium HDFC Children's Plan HDFC Endowment Assurance Plan HDFC New Money Back Plan HDFC Single Premium Whole of Life Insurance Plan HDFC Savings Assurance Plan

This insurance price is start to 10000 to1000000RS. It's premium is start to 300 to 6000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 700 to 250000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 700 to 700000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 900to 900000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 450 to 450000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 550 to 500000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 400 to 400000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 850 to 850000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 1200 to 1200000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 900 to 900000 RS. This insurance price is start to 10000 to 100000000 RS. It's premium is start to 1100 to 1100000 RS.

HDFC Life Smart Woman Plan

This insurance price is start to 10000 to 100000000 RS. It's premium is start to 650 to 650000 RS.

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3. PLACE
This component of the marketing mix is related to two important facets i) Managing the insurance personnel, and ii) Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the servicespromised and services offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents actin

There are no.of branches in different district in Gujarat

Vapi Rajkot Vadodara/ Baroda Ahmedaba d Surat

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In a surat branches of HDFC LIFE Insurance

1. Head Office of HDFC LIFE

ADRESS:- Jolly Plaza,


Near Ghod-Dod road, Surat-395003

Phone no.:- 0261-251977 0

2. HR Department Office of HDFC Life Address: - 1st


Floor,

Shivpunjan Complex, City light Road, Suart-395007 Phone:- 0261-2259014

3.Marketing Department Office of HDFC Life Address: - 1st


Floor,

Mangaldeep-2, Opp. Varachha Police Station, Varachha road, Surat-395006

Phone no:-0261-3051708

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Benefits of customer in HDFC Life by Place.


Those payments are referred to as "premiums". The premiums are paid in return for the insurance company's promise to pay the face amount of the insurance upon the death of the person insured. The premiums charged by an insurance company are required to be "actuarially sound". This means that the premiums collected for all policies of a particular type and covering similar kinds of risks (for example, people with no health problems), together with income earned on the premiums, has to be enough to pay expected losses. Insurance companies are permitted by the laws of the states in which they do business to invest a part of premiums collected in conservative investments. The earnings on those investments adds to the "surplus" of the insurance company and helps to keep it financially sound. In turn, the number of policies that the company can issue (its "risk exposure") is a finction of its surplus and certain other factors specified by the insurance laws of the states in which it operates.

A certain amount of the premiums are also applied to the ongoing business expenses to operate the company.

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4. Promotion
The HDFC life insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career Agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and Publicity drive through the mobile publicity van units would be effective in creating the Impulse buying and the rural prospects would be easily transformed into Actual policyholders.

There are two types of advertisement in HDFC Life


1 TV Advertisement 2 Radio Advertisement

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Sar Utha Ke Jiyo -2009 ( Rajasthan Royals ) Team plans Ghum TVC

Pension Plans 2008

Children Plans 2008 Chandamama


Unit Link Plans 2008 NASA Champion

TV Adevertisement

Pension Plans 2007 TVC Home Loan Insurance Plans 2007 TVC Children Plans 2007 TVC

Pension Plans 2006 TVC

Children Plans 2006TVC Brand Advertisement 2005 TVC

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Team Plans Des 2008 Hide-Seek 30 Sec Pension Plans Nov 2008 Unglee 25 Sec Pension plans Nov 2008 Chudi 25 Sec Unit Link Plans Jan 2008 Ticket 30 Sec Unit Link Plans Jan 2008 Big House 30 Sec

Redio Adevertisement

Unit Link Plans Jan 2008 Big Car 30 Sec HLIPs Jan 2007 Hamesha 30 Sec Childrens Plans Jan 2007 Mission NASA 20 Sec Pension Plans Jan 2006 Birth day Cake 50 Sec Children Plans July 2006 Son Education 30 Sec Pension Plans Jan 2005 Jingle 30 Sec

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Mumbai, Maharashtra, March 11, 2010 /India PRwire/ -- HDFC Standard Life, one of India's leading private life insurance companies, has announced its second year of association with Rajasthan Royals and has reemphasized its commitment to cricket and fans. Under the terms of agreement, HDFC Standard Life is the Associate Sponsor of Rajasthan Royals in the third season of the Indian Premier League (IPL 2010).

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5. PEOPLE
Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. Human resources can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work.

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6. Processes
The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.

What is Welcome Calling to the customer?


Welcome Calling is a call made to all our new customers to ensure that the policy chosen by them is as per requirement.

What is the objective of Welcome Calling?


Welcome Calling serves mainly 2 objectives:

First, to contact the customer as per the given contact details thereby ensuring contact ability.

Second, to verify if the customer has fully understood the important features the insurance plan chosen and whether it suits the customer's requirement, thereby avoiding mis-sale occurrences.

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The process of customer Welcome Calling of customer

A welcome call is made to the customer after the application for insurance policy has been accepted by the company. Before disclosing any policy related information, our Customer Service Associate (CSA) will do a mandatory verification by asking few questions. If the policy holder is not available, information can be shared with a third party who takes care of the policy holder's finances, post confirmation from the third party that all the discussed details will be shared with the Policy Holder. Once the verification is done, the CSA will inform the customer on all the Key features of the insurance plan.

Once all the key features have been communicated, the CSA can also make a note of any query, request or complaint by the customer. If the customer is not contactable despite multiple attempts, we will send a Welcome Calling Letter to the communication address of the customer.

Physical Distributions

Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range of products.

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The physical evidences include signage, reports, punch lines, other tangibles, employees dress code etc.

A. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services.

B. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers.

SOME CHANNEL OF DISTRIBUTIONS IN HDFC LIFE

1. Direct Sales 2. Sales Development


Managers Induction

Direct Sales Manager Individual Sales ( Door to Door Marketing ) Business through Financial Consultants

3. Alternative Induction 4. Corporate Induction

Bank Relation ( HDFC,SBI,BOB,Andra Bank,AXIS Bank etc...) Group Selling Collabration with other Companies

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CHAPTER-5

SERVICE DEPARTMENT
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INTRODUCTION
Insurance is system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance policy helps in not only mitigating risks but also provides a financial cushion against adverse financial burdens suffered.

Insurance policies cover the risk of life as well as other assets and valuables such as home, automobiles, and jewelry.

The functions of Insurance can be bifurcated into two parts:


Primary Functions Secondary Functions Other Functions

Primary Functions
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 other. 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.

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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.

Secondary Functions
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.

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Work culture
The company attributes its success to the contributions made by its employees. We believe that our strength is our people, so our endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry. Talent management initiatives in HDFC Standard Life are driven by a set of organizational core competencies (Mantra 10) as well as positionspecific competencies. The competency set includes knowledge, skills, experience, and personal traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life. In this endeavor of shaping and nurturing our talent pool, HDFC Standard Life adopts a four-step model:

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ORGANIZATION CHART
CHAIRMAN

M.D.

ZONAL MANAGER

REGIONAL MANAGER

Retail Marketing

Alternative Channel

Operation Channel

Human Resource

Territory Manager

Territory Manager

Team Manager

HR Executive

Branch Manager

Branch Manager

Operation Manager

Assistant Branch Manager

Channel Executive

Business Development Manager Bhagvan Mahavir College of Business Administration Page | 108

PLANT LAYOUT
Enter

RECEPTI ON WORKER AREA

CASH COUNTER OPRATION DEPARTMENT

OTHER SPACE FOR EMRGENC Y MEETING ROOM

TRAININ G ROOM 1

TRAININ G ROOM 2

STOR E ROO M WAS HRO OM

WORKER AREA

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QUALITY CONTROL
Total quality was define earlier as the ability of good and service to satisfy customer expectation with respect to 1)products design 2)the user desire 3)conformance to the desire 4)additional sevice expectation

Quality control involve mesurment of the quality characteristic ,feed back of the data comparison with satisfied standard and correction when required Process

specification

Activities Service and description Intelletual and aesthetic place and time control and appel dependablity effectiveness

properties

marketityab

perfomance

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CUSTOMER RELATIONSHIP MANAGEMENT(CRM)

Customer relationship management (CRM) is a widely implemented model for managing a companys interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients; nurture and retain those the company already has; entice former clients back into the fold; and reduce the costs of marketing and client service Customer relationship management describes a company-wide business strategy including customerinterface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy

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HDFC CRM Services is that it helps businesses use technology and human resources to gain insight into the behavior of customer and the value of those customers. Our goal is - Provide better customer service - Make call centers more efficient - Cross sell products more effectively - Help sales staff close deals faster - Simplify marketing and sales processes - Discover new customers - Increase customer revenues

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We have alliances with leading CRM solution providers like Oracle, Front Range and we leverage these partnerships to provide CRM services, ranging from consulting and implementation to upgrades and application management services. Our CRM practice has a strong industry focus across specific - Sales Automation - Multi Channel Customer Service - Marketing Management - Quote to Order Management

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DATA MANAGEMENT
Management today recognizes that traditional approaches to data management expose them to risks and information gaps that enterprises cannot afford to ignore. Organizations are beginning to acknowledge that information is a collective asset to be managed with a view toward maximizing its return on value.

Data is the lifeblood of an organization and a valuable enterprise asset. It provides the foundation on which to base critical and everyday business decisions. It is, therefore, essential that decision makers can access and depend on quality data to operate confidently in a high-performance environment.

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TQM TOTAL QUALITY MANAGEMENT


The following Symbol use in chart of HDFC process

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In HDFC LIFE Total Quality Management is a comprehensive and structured approach to organizational management that achieves best quality of products and services through using effectively refinements in response to continuous feedback, and through using them effectively in order to deliver best value for the customer, while achieving long term objectives of the organization. The roots of Total Quality Management (TQM) go back to the teachings of drucker, juran, deming, ishikawa, crosby, feigenbaum and countless other people that have studied, practiced, and tried to refine the process of HDFC LIFE organizational management. TQM is a collection of principles, techniques, processes, and best practices that over time have been proven effective. Most all world-class organizations exhibit the majority of behaviors that are typically identified with TQM.

Guideline for Total Quality Management


Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing,

planning, training, etc. There are many guidelines of total quality management around to create the TQM diagrams. Though the different organization has the different total quality management criterion, in general guideline of total quality management should contain the following items.

TQM is a customer focused approach It is company wide strategy and involves everyone in the organization Aims at satisfying the customer or delighting them Provides best quality product and satisfy them in a cost effective manner Fundamental changes in basic beliefs and practices Prevention of defects is the way and the target is zero defects Total quality management is methodical Page | 117

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GRIEVANCE HANDLING PROCEDURES OF HDFC LIFE


A grievance or a complaint includes any type of problem or concern about your involvement in the environment as far as association with HDFC is concerned. For example you could have a grievance or complaint about: Development and training availability Treatment by an official, coach, administrator, parent or other athlete Discrimination Harassment Safety in the playing, education or training environment How an issue has been handled. Step 1 Work out the best way to handle the situation. If you are not sure how to handle the problem yourself,options include speaking to your coach, squad manager, parents or HDFC office staff for advice andguidance.

Step 2 If you feel comfortable with your relationship with the other person involved, try to sort the situation out directly between yourself and that person. Sometimes things happen unintentionally and the matter could be sorted out with an explanation and an apology. This should be done as close to the incident of concern to avoid confusion.

Step 3 If you are unable to handle the matter yourself, approach the Academy Chief Executive Officer who will be the appointed grievance/complaint handler. If the grievance or complaint is about the Chief Executive Officer, you should contact the Academy Chair person (see website for details.) The HDFC Chief Executive Officer will, wherever practical, within 3 working days:

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Speak with you to obtain full details concerning your grievance or complaint and discover your wishes for a resolution. Decide whether at the least, the issue is serious enough that, if proven, it would be a breach of discipline or other related policy (Such as member protection) Explain the process required to continue towards a resolution of the issue. Refer you if necessary to people who could provide advice or support. Decide the most appropriate person to handle the complaint or grievance. (If the Chief Executive Officer has a conflict of Interest, the matter will be referred to another appropriate grievance/complaint handler.)

Step 4 The grievance/complaint handler will gather information from the party or parties allegedly involved inthe issue. This involves: Speaking to all witnesses they believe have information relevant to the complaint. Decide whether at the least, the issue is serious enough that, if proven, it would be a breach of discipline or other related policy (Such as member protection) Explain the process required to continue towards a resolution of the issue. Refer you if necessary to people who could provide advice or support. Decide the most appropriate person to handle the complaint or grievance. (If the Chief Executive Officer has a conflict of Interest, the matter will be referred to another appropriate grievance/complaint handler.) It is not a breach of confidentiality to speak to any witnesses or parties involved. Only the required number of people will be spoken to about the issue and they will not be told any more information than they need to know.Where contradiction in accounts of the issue is encountered, the grievance/complaint handler may seek more information from all parties.

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Step 5 A decision will then be made on how to resolve the issue and inform all parties. Where the grievance involves an allegation of a less serious nature (e.g. Breach of Code of behaviour, or anything non-criminal) and the main facts are not in dispute, the situation will be mediated. This means assistance will be given to you and the person or persons about whom you have complained, to come to a joint decision on how to resolve the issue. A confidential record of the issue will be kept and the matter will go no further within HDFC however the details may be reported to the State or National Sporting Body.Where the grievance involves an allegation of a less serious nature (e.g. Breach of Code of behavior, or anything non-criminal) and the main facts are in dispute, the grievance/complaint

Handler will: Indicate to all parties why the issue has been unable to be resolved and inform all parties of the consequences had the facts been established. Reinforce the importance of refraining from any repercussions against individuals which may result from the grievance/complaint procedure. Where the grievance/complaint involves an allegation of a more serious nature (e.g. Discrimination, harassment.) and the main facts are not in dispute, the grievance handler will recommend appropriate remedial action through the Board or its representative complaints committee. Where the facts are in dispute and grievance handler is unable to determine the course of events, the matter will be referred to the Board or its representative complaints committee. Where the grievance/complaint involves an allegation of a criminal matter, the grievance handler will advise the Board immediately and refer the matter to the appropriate authorities. All parties involved in the mater will be advised at all stages of the progress of the complaint/grievance. All parties have the right to appeal through the Board to the complaints Committee. In either of the above cases, the details may be reported to the State or National Sporting Body. Bhagvan Mahavir College of Business Administration Page | 120

PRODUCT

PLANS

Traditional
Traditional:

ULIP

Traditional plan is a life insurance solution that provides the client only guaranteed return.

ULIP (Unit Linked Insurance Plan): Unit Linked insurance plan is a life insurance solution that provides the client
with the benefits of protection & flexibility in investment .It is solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time.

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TRADITIONAL PLAN SINGLE PREMIUM WHOLE OF LIFE INSURANCE


HDFC single premium whole of life insurance plan is a tailor made plan will suited to meet your long term investment needs. This plan offers you following benefit. Whole of life plan aimed at providing long term real growth of your money. In case of your unfortunate demise during the policy term, this participating insurance plan will pay your family the sum assured and compound reversionary bonuses, which are usually added annually. An additional terminal bonus may be paid depending on the performance of the underlying investment.

Plan features
A sound investment Surrender value A sound investment: your money will be invested in a with profits fund. The fund aims to provide secure and stable long term growth. Normally, under single premium whole of life, we expect to declare a compound reversionary bonus for your policy every year and add it to your policy. In addition, on death, a terminal bonus might be payable based on companys experience. You pay a single premium and the policy will pay you a lump sum.

Surrender value: you cant surrender your policy any time, after it has been in force for at least 6 months and cant receive surrender value. After completion of 3 years, there will be a guaranteed surrender value of 50% of premium paid. In addition you will be given additional discretionary surrender value based on companys performance.

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Eligibility

Minimum age at entry: 18 yrs Maximum age at entry: 70 yrs

Payment options A single premium can be paid by Cash, Cheque or Demand Dsraft.

Minimum sum assured: Rs.25000 Maximum sum assured: Rs. 50, 00,000

Minimum premium: Rs.25000 Maximum premium: Rs.50, 00,000

ENDOWMENT ASSURANCE PLAN

This plan gives you:

An ideal way to secure your long-term financial goals Valuable protection to your family by the way of lump sum payment in case of your unfortunate demise within policy term Lump sum payment on survival up to maturity date

In case of your unfortunate demise, during the policy term, this plan will pay your family the sum assured which you had chosen.

The plan receives simple reversionary bonuses, which are usually added annually. At the end of term an additional terminal bonus may be paid depending on the performance of the under lying investment.

Benefit options
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Critical illness:

you will be given the amount equal to sum assured under this benefit, on diagnosis on any one of the 6 critical illnesses And the death benefit is payable only if you survive for 30 Days after Date of CIB claim. Additional term benefit:

In case of your unfortunate demise, your family will be provided the amount equal to the sum assured selected.

Accidental death benefit

You will be paid an additional amount, equal to the sum assured selected under this benefit, in case of your unfortunate demise because of the accident or within 90 days of the accident.

Waiver of premium:

The company will waive the premium in case of total disability, which continue s beyond 26 weeks from the date of disability.

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ELIGIBILITY

BENEFIT OPTION

TERM PERIOD (YRS)

AGE AT ENTRY(YRS)

MAIMUM AGE AT

MINIMUM Basic policy CI ATB ADB WOP 10 10 10 10 10

MAXIMUM 30

MINIMUM 12

MAXIMUM 60

MATURITY 75

30 30 30 30

18 18 18 18

55 60 55 50

70 75 65 60

PERSONAL PENSION PLAN


Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income bet the same forever? Will you be able to live life on your own terms even after you retire?

We understand your need to build a secure future for yourself. Hence the HDFC Personal Pension Plan is an insurance policy that is designed to provide a post retirement income for life with the freedom to choose your retirement date.

You can choose your premium, the sum assured and your retirement date. At the end of the policy term, you will receive the sum assured plus any attaching bonus, which will provide your post retirement income.

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This plan is an insurance policy, which can benefit you in the following ways. It provides a post retirement income in your golden years. It gives you the flexibility to plan your retirement date. It gives you tax benefits on your premiums

The plan receives sample reversionary bonuses, which are usually added annually. At the end of the term an additional terminal bonus may be paid depending on the performance of underlying investment.

EASY STEPS TO YOUR OWN PLANS

Step 1 Step 2 Step 3

Choose your retirement age Estimate the post retirement income you require Work out the premium payable with your FC

STEP 1: CHOOSE YOUR RETIREMENT

Your can select any age you wish to retire at (vesting age), Between 50 years and 70 years.

The age and term limits for taking out the HDFC personal pension plan are as shown below:

STEP 2: ESTIMATE YOUR RETIREMENT AGE

We understand your desire to live life on your terms even after retirement. We have designed this plan so that it gives you flexibility to structure the ideal retirement plan. Estimate the desired post retirement post- retirement income, which will help you stride in your golden years of retirement with dignity and pride, i.e. estimate the money you might meet your retirement needs.

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STEP 3: PREMIUM YOU NEED TO PAY

Based on your estimate of the post - retirement income required by you, choose the sum assured. The premium you have to pay depends on your age, the sum assured you have chosen, the premium paying frequency and the term of the policy. Depending on the sum assured chosen by you, you will get an approximate indication of corresponding premium you need to pay.

The table shows the indicative annual premiums for Rs.5 Lakh Sum Assured.

YOUR AFE (Yrs.) 30 35 40

TERM PERIOD

15 Yrs. N/A 29,890 29,985

20 Yrs. 20,945 21,035 21,185

25 Yrs. 15,770 15,915 16,150

30 Yrs. 12,475 12,710 13,120

In case of your unfortunate demise your nominee will get following benefits.

Policy Type

BENEFITS Demise within first year Demise after first year Premium paid to date along

Regular Premium Policy

80% of the premium paid

with Compound interest calculated at 8% per annum

Single Premium Policy

90% of the premium paid

Sum Assured + bonus declared to date

Tax benefits (based on current tax laws)

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You will be eligible for tax benefit under section 80cccof the income tax Act, 1961 Under section for 80c, you can save up to Rs.33, 990 from your tax each year as premiums up to Rs.1, 00,000 are allowed as a deduction from your taxable income.

The above mentioned tax benefits are subject to changes in the tax laws.

CHILDREN'S PLAN
As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much youll need when your child takes these important steps in life! Plan today to ensure a bright future for your child. Start building savings today with our HDFC Childrens Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

HDFC Childrens Plan The HDFC Childrens Plan gives you:


Invaluable financial support to your child. A choice to customize an ideal plan for your child. Multiple options for multiple benefits. The HDFC Childrens Plan is designed to secure your childs future by giving

your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns.

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The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See Bonuses for more detail).

3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount of targeted savings and Policy term using our Financial Planning Tool. Choose any one of the 3 plan options as per your Childs requirement. Work out the premium payable and Sum Assured With our Financial Consultant.

Step 2

Step 3

Step 1: CHOOSE THE AMOUNT OF TRAGETED SAVINGS This plan gives you the flexibility to structure the ideal plan for your child. Estimation the money, which you might require for your child at any one of the milestones in his or her future. Choose the amount of targeted savings and policy term using the Financial Planning Tool available with our Financial Consultant.

Step 2: CHOOSE OF 3 PLAN OPTIONS Lets assume that you are the insured parent and your child the beneficiary, who will receive the benefits as per your plan option. You can choose any one of the 3 plan option at the start of the policy.

Accelerated Benefit Plan

Death Benefit OR Maturity Benefit

Maturity Benefit Plan

Death Benefit AND Maturity Benefit

Double Benefit Plan

Death Benefit And Maturity Benefit

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DETH BENEFIT PLAN OPTION


(On death of insured parent during the policy term)

MATURITY BENEFIT

Accelerated Benefit Plan

We will pay the Sum Assured + Bonuses Declared. The policy terminates immediately.

We will pay the Sum Assured + Bonuses Declared.

Maturity Benefit Plan

Your family need not pay any further premiums and policy continues. We will pay the Sum Assured. Your family need not pay any further premiums and the policy continues.

We will pay the Sum Assured + Bonuses Declared. We will pay the Sum Assured + Bonuses Declared.

Double Benefit Plan

Step 3: PREMIUM YOU NEED TO PAY

Once you have chosen the amount required and the Plan Option, get an indication of corresponding premium you need to pay. The table below shows the Indicative Premiums for a male life assured paying annual premiums for a Rs. 5 lakh Sum Assured policy with the policy maturing when the child is 21 years old (i.e. 20-year term period and current age of child is assumed to be 1 year).

ACCELERATED MATURITY AGE OF PARENT (Yrs.) 30 35 40 BENEFIT (Rs.) 23,575 24,045 24,890 PLAN BENEFIT (Rs.) 22,690 22,820 23,055

DOUBLE PLAN

PLAN BENEFIT (Rs.) 24,085 24,790 26,005

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You can choose to pay your premium as either quarterly, half-yearly or annually depending on your convenience. We advise you to go for an annual premium payment mode, as it will help you save on the yearly premium payable as compared to other premium modes. You can pay your premium up to 15 days after the due date to fit in with your cash flow.

MONEY BACK PLAN


Eligibility:
The age and term limits for the insured parent for taking out the HDFC Childrens Plan are as shown below :

Term Period (Yrs.) Minimum 10 Maximum 25

Age at entry (Yrs.) Minimum 18 Maximum 60

Max. age at Maturity(Yrs.) 75

Beneficiaries:
The beneficiary (your child) is the sole person to receive the benefit under the policy. Where the beneficiary is less than 18 years of age, the benefit will be paid to the Appointee.

Tax Benefits (Based on current tax laws) :


You will be eligible for tax benefits under Section 80c and Section 10 (10c) of the income Tax Act, 1961.

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Under Section 80c, you can save up to Rs.33,660 from your tax each year (calculated on the highest tax bracket) as premiums up to Rs.1,00,000 are allowed as a deduction from your taxable income.

Under Section 10 (10c), the benefits received from this policy are completely
tax-free. The HDFC MONEY BACK plan is with profit plan that gives you:

A proportion of basic sum assured as cash lump sums at regular 5years intervals within the policy term. A lump sum payment on survival up to maturity date. Valuable protection to your family by the way of lump sum payment in case of your unfortunate death within the policy term. This is over and above any earlier payouts.

Maturity value: on maturity you will receive survival benefit due at that point of
time along with attaching bonuses for the full sum assured calculated for the full term.

In this plan following benefit options are given.

Critical illness benefit:


We will pay an amount, equal to the sum assured selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The sum assured is payable only if you survive for 30 days after the date of CI claim.

Once such claim is settled, no further CI benefit is payable. However, basic policy remain continue.

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Additional term benefit:

We will pay an additional amount, equal to the sum assured selected under this benefit, in case of your unfortunate demise.

Accident death benefit:

We will pay an additional amount, equal to the sum assured selected under this benefit, in case of your unfortunate demise o Due to an accident o Within 90 days of the accident

Waiver of premium:
o We will waive off the premium in case of total disability, which continues beyond 26 weeks from the date of disability. o The waiver is applicable during the period of total disability

ELIGIBILITY:

Benefit option BASIC POLICY CI ATB ADB WOP Term period (yrs.) Age at entry(yrs.) Maximum age at maturity 75 70 75 65 60

Minimum Maximum Minimum Maximum 10 10 10 10 10 30 30 30 30 30 12 18 18 18 18 60 55 60 55 50

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UNIT LINKED PLANS HDFC UNIT LINKED ENDOWMENT PLUS


This plan gives you: An outstanding investment opportunity by providing a choice of thoroughly researched and selected investment. Regular loyalty units to boost your fund value every year. Valuable protection to your family in case you are not around Flexible benefit combination and payment option Flexible additional benefit option such as critical illness cover Access to your accumulated fund before maturity

You can choose your premium and the investment fund or funds. We will them invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term, we will pay the greater of your sum assured(less any withdrawals you have made in the two years before your claim) and your total fund value to your family. Use HDFC standard lifes excellent investment option to maximize your savings and secure your and your familys future. We will provide financial security for your family in your absence.

All units linked life insurance plans are different from traditional insurance plans and are subject to different risk factors.

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HDFC standard life is the name of our insurance company and HDFC unit linked Endowment plus is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.

4 EASY STEPS TO YUR OWN PLAN


Step 1 Step 2 Choose the premium you wish to invest Choose the amount of protection (Sum assured) You desire Step 3 Step 4 Choose the additional plan benefits you desire Choose the investment fund or funds you desire

STEP 1: CHOOSE YOUR PREMIUM This is the premium you will continue to play each year of the policy. The minimum regular premium is Rs.10,000 per year. You can play monthly (using standing instruction or ECS mandate), quarterly, half-year or annually.

You may also choose to pay adhoc single premium Top-up or additional regular premiums depending on your convenience. STEP 2: CHOOSE YOUR LEVEL OF PROTECTON You can choose any amount of sum assured with A minimum of (term of your policy) times your chosen annual regular premium A maximum of 40 times your chosen annual regular premium.

STEP 3: CHOOSE ADDITIONAL PLAN BENEFITS We offer a range of valuable protection option to secure the future for your family. You can choose any one of the following option: Bhagvan Mahavir College of Business Administration Page | 135

Life option Extra life option

Death Benefit Death Benefit + Accidental DeathBenefit

Life and health option

Death Benefit+ Critical illness Benefit

Extra life & health option

Death benefit + critical

illness

benefit+ accidental death Benefi


Benefit Types SUMMARY

We will pay the greater of your Sum Assured (less any Death Benefit withdrawals you have made in the two years before your Claim) and your total fund value to your family. The policy will terminate.

Critical illness Benefit

We will pay the greater of your Sum Assured (less any withdrawals you have made in he two years before your Claim) and your total fund value to your family. The policy will terminate

Accidental Death Benefit

In additional to the Death Benefits, we will pay a further Sum Assured to your family. The policy will terminate.

STEP 4: CHOOSE YOUR INVESTMETN FUND In this plan the investment risk in your chosen investment portfolio is borne by you. This means that the premiums you pay in this plan are subject to investment risk associated with the capital markets. The unit prices of the funds may go up or down, reflecting changes in the capital markets.

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Unit Linked Enhanced Life Protection II


IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

You have given your family the very best. And there is no reason why they should not get the very best in the future too. With HDFC Unit Linked Enhanced Life Protection II, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity. Always

HDFC Unit Linked Enhanced Life Protection II

The HDFC Unit Linked Enhanced Life Protection II gives:

Valuable protection to your family in case you are not around. Increasing insurance cover every year. An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. Flexible premium payment options.

You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term, we will pay the greater of your Current Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

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Use HDFC Standard Lifes excellent investment options to maximize your savings & secure your and your familys future. We will provide financial security for your family in your absence

ALL UNITS LIKED LIFE INSURANCE PLANS ARE DIFFERENT FROM TRADITIONAL INSURANCE PLANS AND ARE SUJECT TO DIFFERENT RISK FACTORS.

HDFC Standard Life is the name of our Insurance Company and HDFC Unit Linked Enhanced Life Protection II is the name of this plan. The name of our company and the name of our plan do not, in any way, indicate the quality of the plan, its future prospects or returns.

3 EASY STEPS TO YOUR OWN PLAN


Step 1 Step 2 Step 3 Choose the premium you wish to invest. Choose the amount of protection (Sum Assured) you desire. Choose the investment fund or funds you desire.

Step 1 : Choose your regular premium

This is the premium you will continue to pay each year of the policy. You can pay monthly, half-yearly or annually. The minimum regular premium is Rs. 12,000 per year for annual and half yearly policies. For monthly mode, the minimum regular premium is Rs.15,00 per month. Contact our Financial Consultant or nearest branch for more details about the available range of convenient auto premium payment options.

You may also choose to pay adhoc Single Premium Top-Up or additional regular premium depending on your convenience (See Single Premium Top-Up Premium and Premium Changes).

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Step 2 : Choose your level of Protection

You can choose any amount of Sum Assured with : A minimum of (Tern of your policy / 2) times your chosen annual regular premium. A maximum of 20 times your chosen annual regular premium.

The original Sum Assured chosen by you will be automatically increased by 5% each year subject to the term and condition mentioned in the policy provisions.

Step 3 : Choose your investment Funds In this plan the investment risk I your chosen investment portfolio is borne by you. This means that the premiums you pay in this plan are subject to investment risks associated with the capital markets. The unit prices of the funds may go up or down, reflecting changes in the capital markets.

So, to balance your level of risk and return, making the right investment choice is very important and you are responsible for the choices you make.

We have 7 funds that give you : The potential for higher but more variable returns over the term of your policy ; or More stable returns with lower long-term potential.

Eligibility : The age and term limits for taking out a HDFC Unit Linked Enhanced Life Protection ll are as shown below :

Benefit options Term Period (Yrs.) Min. Life Option 10 Max. 30

Age at entry (Yrs.) Min. 18 Max. 45 Page | 139

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Beneficiaries : If you have not assigned the policy, You will receive the benefits due on maturity at the end of the policy term. In the event of your unfortunate demise, you nominee will receive the benefit due.

UNIT LINKED YOUNG STAR PLUS II


As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much you will need when children take this important step in life.

Plan today to ensure a bright future for your children, start building savings today with our HDFC Unit Linked Young Star Plus ii so that your child is able to lead a life of respect and dignity with a secured financial future.

The HDFC unit linked young star plus II gives you:

Valuable protection to your child in case you are not around An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Regular loyalty Units to boost your fund value every year Flexible benefit combination and premium payment options Flexible additional benefit options such as critical illness cover Flexible benefit payment preferences double benefit and triple benefit

You can choose your premium and the investment fund or funds. We will then invest your premium, net of premium allocation charges in your chosen funds in the proportion you specify. At the end of the policy term, you will receive the accumulated value of your funds.

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In case of your unfortunate demise during the policy term, we will

Pay the sum assured you had chosen to the beneficiary AND For double benefit continue to pay 100% of the original regular premiums towards your policy For triple benefit continue to pay 50% of the original regular premiums towards your policy and pay balance 50% of the premium to the beneficiary

This means we will continue to make your savings on your behalf, in your absence. The savings can be directed 100% towards your policy or 50% towards your policy and 50% will be available for the beneficiarys regular use until the original maturity date. Use HDFC standard lifes excellent investment options to maximize your savings and maximize your childs achievements.

EASY STEPS FOR YOUR OWN PLAN

Step 1 Step 2 Step 3 Step 4

Choose the premium you wish to invest. Choose the amount of protection you desire. Choose the additional plan benefit you desire. Choose the investment fund or funds your desire

STEP 1: CHOOSE YOUR REGULAR PREMIUM

This is the premium you will continue to pay each year of the policy. You can pay monthly, half yearly or annually. The minimum regular premium is RS.12, 000 per year for annual and half yearly policies. For monthly mode, the minimum regular premium is Rs.1500 per month. You may also choose to pay adhoc single premium Top-up or additional regular premium depending on your convenience

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STEP 2: CHOOSE YOUR LEVEL OF PROTECTION

You can choose any amount of sum assured A minimum of 5 times your chosen annual regular premium A maximum of 40 times your chosen annual regular premium

STEP 3: CHOOSE ADDITIONAL PLAN BENEFIT

We offer a range of valuable protection option to secure the future for your family. You can choose any one of the following benefit options.

Life option Life & health option

Death benefit Death benefit + critical illness benefit

We offer flexible benefit payment preferences. You can choose one of the following two benefit payment preferences.

Double Benefit

We will pay the sum assured to the beneficiary. Your family need not pay any further premiums. We will pay 100% of all the further regular premiums at the original level towards your policy and when due, on annual basis.

Any critical illness cover terminates immediately.

Triple Benefit

We wile pay the sum assured to the beneficiary. Your family need not pay any further premiums. We will pay 50% of all the future premiums at original level towards your policy and 50% of the premiums will be paid to the beneficiary as and when due, on an annual basis.

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Step 4: CHOOS YOUR INVESTMENT FUND

In this plan the investment risk in your chosen investment portfolio is borne by you. This means that the premiums you pay in this plan are subject to investment risks associated with the capital markets. The unit prices of the funds may go up or down, reflecting changes in the capital markets. So, to balance your level of risk and return, making the right investment choice is very important and you are responsible for the choices you make.

Eligibility :-

The age and term limits for taking out a HDFC Unit Linked Plus are as shown below:

Benefit option

Term (Yrs) Max.

period Age entry (Yrs)

Maximum age at

min. 25 25

Max. 18 18

min. 65 55

maturity(Yrs.) 75 65

Life option Life & health option

10 10

Assigning your money


a) On maturity Your policy matures at the end of the policy term you have chosen and your death cover and other risk covers ceases. You may redeem your balance units at the then prevailing unit price and take the fund value with you.

However, you also have the option to take your fund in periodical installments over the period which may extend to 5 years. This is called the settlement option.

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Your money will remain invested in the funds chosen by you. During such period, we will continue to deduct charges other than the risk benefit charges such as the mortality charge.

b) On death

In case of life assureds unfortunate demise before the end of policy term, we will pay the greater of the sum assured (less any withdrawals made during the two year period Immediately preceding the intimation of death) and the total fund value. We will also pay any accidental death benefit due. Your policy will terminate thereafter.

c) On critical illness

In case the life assured is diagnosed with any critical illness covered before the policy term, we will pay the greater of sum assured. Your policy will terminate thereafter.

d) On surrender or partial withdrawal

Insurance plans are long term plans with significant of tax benefits. So neither the IRDA nor we view them as a short term plans. Therefore, there you are encouraged to pay the original regular premium for at least 5 years. If you do not, you will incur a charge. In addition, you have no access to the funds in your policy in the first three policy years. If you dont pay original regular premiums due in 3 years, your life cover will cease and the value of the units in the fund after the deduction of the surrender charge will cease to be invested and will be held separately by us.

If you surrender your policy before three years have passed, your life cover will cease and value of the units in the fund after the deduction of the surrender charge will cease to be invested and will be held separately by us. This amount will be paid out to you at the end of the third year. Bhagvan Mahavir College of Business Administration Page | 144

If you surrender the policy any time after three years have passed, the surrender value will be the value of fund after the deduction of the surrender charge.

You can make lump sum partial withdrawal from your funds after 5 years of your policy. You can withdrawal minimum amount Rs.10, 000 After the withdrawal, the fund does not fall bellow the minimum fund value

BENEFICIARIES :-

The beneficiary is the sole person to receive the benefit under the policy. Where the beneficiary is less than 18 years of age, he benefit will be paid the appointee.

TAX BENEFIT: You will be eligible for the tax benefits under section 80c of the income tax. Under this section, you can save up to Rs.33, 990 from your tax each year as premiums up to Rs.1, 00,000 are allowed as a deduction from your taxable income. The above mentioned tax benefits are subject to change in the tax laws.

LOYALTY UNITS At the end of every year we will increase the number of unit in each of your funds by 0.10% as long as your policy is in force. The compound effect of these regular additions is expected to boost your final maturity value.

CHARGES

The charges under this policy are deducted to provide for the cost of benefits and the administration provided by us. Our charge are structured to give you benefit return and value for money over long term.

Fund management charge:

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In the long term, the key to building great maturity values is a low FMC. The daily unit price already includes our low fund management charge of only 1.25% per annum charged.

Policy administration charge: Rs.60 will be charged as an administration charge per month.

Switching charge: 24 switches will be given free in a policy year and if you use any additional switch, Rs.100 will be charged per switch.

Revival charge: A charge of Rs.250 is charged for revival to cover for administration expenses.

Partial withdrawal charge: 6 parial withdrawals will be given free in a policy year. And in you take an additional; Rs.250 will be charged per withdrawal.

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CUSTOMER AQUSITON PROCESS


1 Finding the data and appropriate leads 2 Fixing the appointments 3 Negotiating with customers 4 Closing the case

Finding the data and appropriate leads Fixing the appointments Negotiating with customers Closing the case

STEP 1: FINDING THE DATA AND APPROPIATE LEADS


Collection of data or leads is the first thing before making a customer a client of HDFC STANDARD LIFE. I collected data by six ways: 1 Through Yellow Pages 2 Through marketing activities 3 Through Telephone Directory 4 Through Internet 5 Through Newspaper 6 Through cold calling After collection of data my second job was to make cold calls and door-to-door marketing. Which I did by making Tele calls from the Company and went to Bhagvan Mahavir College of Business Administration Page | 147

different offices as well as to the court clients about latest offer of part time Business opportunity as a life advisor. So Data Collection Means Looking for the Suspect who May or May Not be interested in the Business Proposal.

STEP 2: FIXING THE APPOINTMENT


Data collection and cold calling are just the primary steps in marketing of any product the real thing is to find out opportunities out of those leads which one has generating. The company got many opportunities where the customer was interested in becoming the client of The company and The company use to fix meetings with these customers so that The company can tell them the details of various plans of the company.

STEP 3: NEGOTIATING WITH CUSTOMERS


After meeting with the customers and negotiating with them The company tried to convince them to become client of the best Private Life insurance Company which already has more than 30,0000 clients

STEP:4: CLOSING THE CASE


After the approval, necessary forms are filled up by customer. the documents are submitted by the customer along with premium cheque and forms filled up. The documents are verified by the head officel underwriter. After the approval from head office, the policy issued to the customer within stipulated time.

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MAJOR PROBLEMS FACED


Some people, even if they are not interested, they directly dont say NO rather they linger on and have a series of appointments till the time the seller loses enthusiasm and makes sure that the client is not going to give a sale. Some of the prospects dont even listen to anything and straight away say NO they dont even give you the chance to say what one wants to ; most of these men were businessmen who perhaps had less time to listen to sales pitch we find difficulty in interacting with people due to negative responses that made me demoralized sometimes Some people dont even understand the concept of insurance the worse is that they dont even want to know about it. The other difficulty was sometimes the client was ready to become the insurance advisor of HDFC STANDARD LIFE but it was difficult to fetch out nine hundred for the examination fees. It was difficult to convince the clients to become insurance advisor of HDFC STANDARD LIFE The difficulty was to maintain a continuous level of self-motivation because we are giving our best shot but results dont come. The sales pitch if delivered to a group of friends together, has a more probability of landing up in a mockery, as then everyone in group tries to out smart the salesperson.

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CONCLUSION

Introduction
1. It has got 3rd rank in the investment management, in year 2006One of the largest financial institution of 2. India with more then 2 million satisfied customer base. 3. 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

HR Department
1. In the HDFC standard life insurance, recruitment and selection is done from the pool of qualified persons by checking the background and references, ability of the person 2. After that process, person has to give one exam of IRDA (insurance Regulatory and Development Authority). 3. In HDFC life , training is given to new selected employee to improve the skill and knowledge regarding the work to be done. For that purpose HDFC organizes the training programmer for new employee. Generally this training programmer is held after candidates pass the exam of IRDA. 4. Online attendance is captured on Empower and will be considered for all those employees who are in locations which have HDFCSL Intranet, as per their latest location record on Empower.

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Finance department
1. The proprietary ratios shows efficient capital structure. Considering the turnover ratios, the management having effective collection system and low investment in stocks. 2. The Depreciation under Companies Act for Computers is 16.21 % (SLM). However, the rate adopted by us is 25 % SLM. 3. Machinery and Plant other than the specified 15 % (applicable to A/C, Office Equipment and Electrical Installations). 4. Current ratio of HDFC LIFE insurance, has 0.63:1 It also indicates the sound solvency of the company is higher. 5. The net profit ratio in 2009 was 21.58% and in 2010 is 22.09% therefore the net profit is increasing. The company have good profit margin. The company should more and more profit for the future. 6. Issued Capital were 17,960,000 and in current year increase by 17,20,000 so as compare to the previous year increase by 9.57 %

Marketing
Marketing involves two important things. The matching of an article of trade with markets. The process of exchange. 1. HDFC is Indias leading housing finance institution and has helped build more than23, 00,000 houses since its incorporation in 1977 2. 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
3. As brand building exercise- HDFC Standard Life, one of India's leading

private life insurance companies, has announced its second year of association with Rajasthan Royals and has reemphasized its commitment to cricket and fans.

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Service
The functions of Insurance can be bifurcated into two parts: Primary Functions, Secondary Functions and Other Functions The company is having well-planned office lay-out which help in better operation management. The organization is focused on Total Quality management. The Quality control involve measurement of the quality characteristic ,feed back of the data comparison with satisfied standard and correction when required Process. HDFC CRM Services is that it helps businesses use technology and human resources to gain insight into the behaviour of customer and the value of those customers In HDFC LIFE Total Quality Management is a comprehensive and structured approach to organizational management that achieves best quality of products and services through using effectively refinements in response to continuous feedback, and through using them effectively in order to deliver best value for the customer, while achieving long term objectives of the organization. The company is having satisfactory GRIEVANCE HANDLING

PROCEDURES and mechanism. The pro0ducts are segregated into two types of plan, traditional and ULIPS. The company has adopted 4 step process for client acquisition, Finding the data and appropriate leads Fixing the appointments Negotiating with customers

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RECOMMENDATIONS
The HDFC company should now try to identify the gap between current level of customer service and customer expectations. Some of the strategies being recommended are as follows: Brand Building: HDFC is a very huge Brand in US in Insurance but in India it is not known as a Insurance brand. So HDFC need to focus on Brand building Activities which can be done through Advertising, Road shows, Knops, Sponsoring Events in rural & Urban Areas. Educating the Consumers: HDFC should take initiative to educate the consumers regarding all these aspects & take competitive Advantage on this front as its Allocation charges are minimum in the whole Indian Insurance Industry. Need to Increase Market Presence: It should make more channel partners & do business tie ups with more broking houses & should hire marketing agencies for aggressive marketing purpose. It can also increase its Business Units.

Concentration More On Rural Areas : HDFC need to concentrate more towards the rural areas as 60-70% of India population is living in rural areas and most of the people in rural areas are not insured so there is a huge potential in the rural sector.

Product Differentiation: Offering a product that is distinctly different from other products available in the market by other insurance players. Bhagvan Mahavir College of Business Administration Page | 153

More Guaranteed Plans to be Introduced: As we know today the stock market is giving very less return even in last year the return comes Negative so the company need to introduce some more granted plans so that customer can invest in them and have assured return on them which ultimately is an edge in competition in insurance sector.

Need to commence Medical claim Products and General Insurance : There are very less which are having Medical claim products and also very less companies providing General Insurance with Life Insurance for example ICICI , Reliance and Bajaj Allianz so HDFC also need to come in General Insurance business so that they can compete with these players. Flexibility: The companies should make their products flexible for the convenience of their customer. Hassle Free Service: All bureaucracy in customer interactions should be eliminated. Proper Policy Documentation: Wrong interpretations/ non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the company which leads to.

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SUGGESTIONS:
The company should try to increase his financial performance in the future.

The company should try to increased his product cycle.

Stable Managed fund & Secure Managed Fund provide low return. but less risk in Stable Managed fund & Secure Managed Fund.
Most of the people are not aware about HDFC STANDARD LIFE INSURANCE CO.LTD so they have to advertise their company and their product.

HDFC LIFE INSURANCE CO.LTD focuses on the urban area so now they have to focus on rural area also.

HDFC LIFE INSURANCE CO.LTD should try to increase awareness of their UNIT LINK PLAN

The company should increase their distribution network.

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Bibliography Web site


www.hdfclife.com/

www.bimadeals.com Life Insurance Life Insurance Companies www.myinsuranceclub.com Life Insurance Companies

www.indiancustomers.in/company/hdfc-standard-life

www.hdfclife.com/Children'sPlans/child-insurance-plans.

www.hdfclife.com/savingsplans/WholeLife

REFERENCE BOOKS
author, book name, publication name, edition

2. Author:Joseph G.monk Opration management TATA mcGRAW HILL 2nd Edition 3. Author:Evertt.E.Adam Production and opration management prentice hall 5th edition

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