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AProject Report

OnMANAGING DATABASE & EXPLORING PROFITABLE SEGMENT

FOR THE RECRUITMENT OF FINANCIAL CONSULTNTS FOR HDFCLIFE INSURANCE COMPANY

Submitted toIIPM School of Business & Economy, New Delhi

In partial fulfillment for the requirement of M.B.A(Two years full time programmer)

Under Supervision of: Submitted By:MANOHAR SAINI MOHD.SABIR TANWAR

Batch & Section:Fi2 FW10-12ST.ID: D1012FWISBE-(JAI-5B-1132)

IIPM School of Business & Economy

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M.B.A

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DECLARATION

I express my sincere gratitude to my industry guide Mr. AMITSHARMA, BM-HDFC STANDARD LIFE INSURANCE for theirable guidance, continuous support and cooperation throughout my

project, without which the present work would not have been possible.

I would also like to thank the entire team of IIPM SCHOOL OFBUSINESS & ECONOMICS, for the constant support and help in thesuccessful completion of my project.

DATE: 07-09-11 NAME OF STUDENT

PLACE: JHUNJHUNU MOHD. SABIR TANWAR

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ACKNOWLEDGEMENT

The completion of this project has left me in deft to so many person that can

be very well expressed in the words of W. Wilson-

I NOT ONLY USED ALL THE BRAIN I HAD BUT ALL I COULD

BORROW.

I put myself in humblest desk in order to give the same measure and

recognition to all those who have been instrumental through all the entire process

of carrying out this project report.

I am sincerely registering my thanks to Mr. Amit Sharma (Branch

Manager) and Mr. Manohar saini (Sales Development Manager), H.D.F.C. LifeInsurance, Jhunjunu for their genuine guidance and provision of relevant

information that has been enabled me to complete this work.

I sincerely express my thanks to Mr. Pankaj Upadayaya (faculty of IIPM),

New Delhi for his genuine support and encouragement. I am also thankful to Nitin

Agrwal, (faculty of IIPM), New Delhi for imparting me guidance and help

whenever required.

I am deeply indebted to my parents for their kind support and guidance.

Their shower of blessings, prayers, parental love and encouragement has inspired

me a lot.

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Table of contents

1. Title page 01

1. A Acknowledgement1. B Compilitition Certificate1. C Table of contents

2. Executive summary 063. Introduction 084. Research Plan 105. Body of report 126. An assessment of internship 507. Conclusion & Recommendations 54

8. Illustrations & Annexure 56

9. Bibliography 81

Jhunjhunu (Raj.)

EXECUTIVE SUMMARY

HDFC Life insurance is the oldest life insurance company in the world. It is the

largest insurer in the UK and is the 28th largest company in the world. In India, the

company is marketing life insurance products and unit linked investment plans.

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From my research at HDFC LIC, I found that the company has a lot of competition

from other private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also

faces competition from LIC. To compete effectively HDFC LIC could launch

cheaper and more reasonable products with small premiums and short policy terms(the number of years premiums to be paid). The ideal premium would be between

Rs. 5000 Rs. 25000and an ideal policy term would be 10 20 years.

HDFC must advertise regularly and create brand value for its products and

services. Most of its competitors like Aviva, ICICI, Max, Reliance and LIC use

television advertisements to promote their products. The Indian consumer has a

false perception about insurance they feel that it would not benefit them if they

do not live through the policy term. Nowadays however, most policies are unitlinked plans where a customer is benefited even if their death does not occur

during the policy term. This message should be conveyed to potential customers so

that they readily invest in insurance.

Family responsibilities and high returns are the two main reasons people invest in

insurance. Optimum returns of 16 20 % must be provided to consumers to keep

them interested in purchasing insurance.

On the whole HDFC life insurance is a good place to work at. Every new recruit isprovided with extensive training on unit linked funds, financial instruments and the

products of HDFC. This training enables an advisor/sales manager to market the

policies better. HDFC was ranked 13 in the Best Places to Work survey. The

company should try to create awareness about itself in India. In the global market

it is already very popular. With an improvement in the sales techniques used, a fair

bit of advertising and modifications to the existing product portfolio, HDFC would

be all set to capture the insurance market in India as it has around the globe.

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Introduction

HDFC Life Co. Ltd. Joint venture between, HDFC, Indias largest housing

finance institution and Standard Life Assurance Company, Europes largest life

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company. HDFC manages over Rs. 28,000 corer in assets and Standard Life

manages over US $ 100 billion in assets. Both the promoters are well-known for

their ethical dealings, their financial strength and their commitment to be a long

term player in the life insurance industry all important factors consider whenchoosing your insures.

The Partnership:

HDFC and Standard Life first came together for a possible joint venture,

to enter the Life Insurance market, in January 1995, it was clear from the both

companies shared similar values and beliefs and a strong relationship quickly

formed. In October 1995 the companies signed a 3-year joint venture agreement.

Around the time Standard Life purchased a 5% stake in HDFC, further

strengthening the relationship.

The next three years were filled with uncertainty, due to changes ingovernment and ongoing delays in getting the IRDA (Insurance Regulatory and

Development authority) Act passed in parliament. Despite this both companies

remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and

additional resource made available. Around this time standard life purchased 2 %

of Infrastructure Development Finance Company Ltd. (IDFC). Standard life also

started to use the services of the HDFC treasury department to advice their

investment in India.

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Towards the end of 1999, the opening of the market looked very promising

and both companies agreed the time was right to move the operation and to the

next level. Therefore, in January 2000 an expert team from UK joined ahandpicked team from the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a

5% stake in HDFC bank.

In a further development Standard Life agreed to participate in the Asset

Management Company promoted by HDFC enter the mutual fund market. The

mutual fund was launched on 20th July 2000.

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OBJECTIVES

RESEARCH METHODOLOGY

Objective

Under this project I do

to study the various LIC products offered by HDFC company

a study of strategy of the company

comparative analysis of the primary and the secondary data

to compare investment pattern of customer in insurance product

Research methodology

The study is exploratory in nature. Preliminary data is to be collected that

unveils the real nature of the problem. Suggestion and specific alternatives that

solve decision makers problem is to be given. Personnel interview and service

is to be conducted collect the data, which has to be further subjected to cross

sectional analysis using various techniques.

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Source of data

Primary dataPrimary data is required to be collected by conducing personnel

interview and by administrating a well- drafted questioner, which

elicits the necessary information in camphorating the objective of the

study.

Secondary data

Secondary data has to be collected from newsletter, company website

and broacher.

Sample technique

The method adopted for the studies probability sample random sampling.

Sample size for the study would be around 150 or more.Sample size might vary.

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Body of the report

Sector overview

Year 2000 was a landmark year for life insurance Company in India. In this year

life insurance industry was liberalized after more than fifty years, before that the

industry was monopoly of the life insurance corporation, a public sector

enterprises. Since then more 12 private companies has entered the industry. In the

last 4 years private players are able to expand the market (growing at 30% per

annum) and also improved their market shares to 18%.

During these four years private players have launched many innovations in the

industry in term of product, market channels & advertisement of the product, agent

training and customers services etc.

Through this project I want to study the development made by these private

players in term of product development, market channels & overall market growth.

Strategic choices in life insurance business

Many may not be aware that the life insurance industry of India is as old as it is in

any other part of the world. The first Indian life insurance company was the

oriental life insurance company, which was started in India in 1818 at Kolkata. A

number of players (over 250 in life and 100 in non-life) mainly with regional focus

flourished all across the country. However the government of India, concerned by

the unethical standards adopted by some players against the consumers,

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nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The

insurance business of the country was then brought under two public sector

companies, life insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the

Government set up a Committee on Reforms (popularly called the Malhotra

Committee) in April 1993 to suggest reforms in the insurance sector. The

committee recommended throwing open the sector to private players to usher in

competition and bring more choice to the consumer. The objective was to improve

the penetration of insurance as a percentage of GDP, which remains low in India

even compared to some developing countries in Asia.

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HDFC Standard LifeInsurance CompaniesLocations

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Fig: Map showing different location of HDFC Std Life Insurance

INDUSTRY PROFILE

What is Insurance Industry?

About Insurance Regulatory & Development Authority (IRDA)

Regulators

IRBA

TAC (Tariff Advisory Committee)

Insurance Market in India

Reforms

Market structure

Production innovation

Customer service

Channels of distribution

Vital alternatives Variety based positioning

Needs based positioning

Access based positioning

Insurance life

Major life insurance policies

Whole life policies

Endowment policies

Money back policies

Annuities/ childrens policies

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Pension schemes

INDUSTRY PROFILE

What is insurance industry?

Insurance is contract between two parties whereby one party called insurer

undertakes in exchange for a fixed amount of money on the happening of a certain

event. Insurance is a protection against financial loss arising on the happening of

an unexpected event. The primary purpose of life insurance is the protection of the

family. Insurance in its various forms protects against such misfortunes by having

the losses of the unfortunate few paid by the contribution of the many who are

exposed to the same risk. This is the essence of insurance- the sharing of losses and

substitution of certainty for uncertainty. Insurance companies collect premiums to

provide this protection. A loss is paid out of the premiums collected from the

insuring public and the insurance companies act as trustees of the amount

collected. It is a system by which the losses suffered by a few are spread over

many, exposed to similar risks.

In the western world, life insurance evolved mainly from the maritime

industry. Started by private financiers who used to gamble on the lives of seafarers

by offering five times the money deposited with them in case of certain

contingencies?

In its present form, life insurance has its origin in England and made its

debit in India in the year 1818. Initially, Indians were not considered on par with

Europeans as far as their insurability was concerned. There were also many other

failures. It was in the early part of the 20th century that some kind of legislation

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was made to regulate the industry. From then on life insurance made great strides

in the country.

At the time of independence and there after, there were more than 200

companies operating in India and not all of them on sound ethical principles. Manyfactors combined together to promote the then government to nationalize the life

insurance industry in 1956 to form the life insurance corporation of India.

The years from 1956 to 1999 saw the life insurance corporation of India

emerge as a giant financial institution and the lone organization purveying life

insurance, if we ignore the minimal presence of postal life insurance. The

institution succeeded in penetrating in many areas and segments of the population

and in garnering public money for public welfare.

It was in the 1990s that the winds of change started sweeping over India

and brought in their wake many changes in the economy. Liberalization ensured

competition in many fields and there was a clamor that the insurance industry too

is opened up to Private Indian and foreign players to provide the customer with a

choice.The Malhotra Committee, appointed in 1993 was given the mandate to study

the industry & to suggest the changes that were necessary to make it modern and in

tune with peoples aspirations. The report submitted by the committee was the

precursor of the IRDA bill.

By the passing of the IRDA bill, the insurance sector has been opened up for

the private companies to carry on insurance business. Now the life insurance

industry in India is rapidly evolving and growing. It was witnessed a big growth as

many Indian and foreign were entered into the Indian insurance sector. The life

insurance industry in Indian has become fiercely competitive with the entry of

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several new players including major multinational insurers after the deregulation of

the sector. It has opened up a range of untapped opportunities for new entrants into

the industry, as the potential market for buyers is high since the emerging market

in India as a low insurance penetration and high growth rates.

There has been a remarkable development in insurance sector in the last few

years. The total insurance market in India is currently valued at US $ 13 billion

with the life insurance sector accounting for more than 81 % of the market.

Insurance penetration as a percentage of GDP for India (2.26%) is still low

compared to developed markets of the world figure of 4.59%. Gross premium

collection is only two percent of the GDP while nearly 80% of the Indian

population is without life insurance coverage. In countries such as South Africa

and U.K, life insurance premiums accounts for over 50% of gross domestic

savings(GDS) while they account for 25% of GDS in the U.S, Japan & France.

There has been a noticeable growth and penetration of life insurance, post

liberalization. India has traditionally been a high savings oriented country with anenormous middle class that afford to buy life; health and disability insurance as

well as pension plan products. The middle income segment of the population is

estimated at 312 million. The life insurance corporation of India services less than

100 million policies. Only 65 million Indians have been introduced to insurance,

which reflects a penetration of just 6%.

According to some estimates, it is expected that in three years, 10% of the

population in India will be covered by some form of insurance, a significant

increase from the current coverage level of 6%. The figure has increased from 2.15

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in 2001 to 2.265 in 2003. The insurance industry has grown 25% since the year

2001 and over 50% over the last year. The approximately US $ 10.5 billion Indian

life insurance market is expected to grow at 17 to 22% between 2000-07. Also, the

new governments new focus on agriculture and rural insurance will have apositive impact.

The insurance sector in India has become a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360 degree

turn witnessed over a period of almost two centuries.

The private players who have been instrumental in exploring and

developing the alternate channels have grown by over 100% in the last one year

and have managed a market share of 13%. The insurance industry is expected to

grow at the rate of 25% over the next three years while the private players are

expected to grow at a rate upward of 50%. India is expected to experience one of

the fastest momentums in life insurance business among Asian markets.

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ABOUT INSURANCE REGULATORY &

DEVELOPMENT AUTHORITY (IRDA)

Regulators

Insurance is a federal subject in India. The primary legislation that deals

with insurance business in India is: insurance act, 1938, and IRDA act, 1999.

Insurance industry has ombudsmen in 12 cities. Each ombudsman is

empowered to redress customer grievances in respect of insurance contracts on

personal lines where the insured amount is less than Rs. 20 lac, in accordance with

the ombudsmen scheme.

Insurance regulatory & development authority (IRDA)

IRDA was constituted by an act of parliament. The authority is a 10 member team

consisting of:

(a). a chairman

(b). five whole time members

(c). four part time members

1. Subject to the provisions of section 14 of IRDA act, 1999 and any other law for

the time being in force, the authority shall have the duty to regulate, promote and

ensure orderly growth of the insurance business and reinsurance business

2. Without prejudice to the generality of the provisions contained in sub section

(1), the powers and functions of the authority shall include-

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(a) Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest, settlement ofinsurance claims, surrender value of policy and other terms and conditions of

contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training

for intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the

insurance and reinsurance business;

(g) Levying fees and other charges for carrying out the purposes of this act;

(h) Calling for information from, undertaking inspection of, conducting

inquiries and investigations including audit of the insurers, intermediaries,

insurance intermediaries and other organizations connected with the insurance

business;(i) Control and regulations of the rates, advantages, terms and conditions

that may be offered by the insurers in respect of general insurance business not so

controlled and regulated by the Tariff Advisory Committee under section 64U of

the insurance act, 1938 (4 of 1938);

(j) Specifying the form and manner in which books of accounts shall be

maintained and statement of accounts shall be rendered by insurers and other

insurance intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

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(m) Adjudication of disputes between insurers and intermediaries or

insurance intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurers to financeschemes for promoting and regulating professional organizations referred to in

clause (f);

(p) Specifying the %age of life insurance business and general insurance

business to be undertaken by the insurer in rural or social sector.

Tariff Advisory Committee (TAC)

(Statutory Body under Insurance Act,1938 )

Tariff Advisory Committee controls and regulates the rates, advantages,

terms and conditions that may be offered by insurers in respect of General

Insurance Business relating to Fire, Marine (Hull), Engg. And Workmen

Compensation.

Effective 22/07/98, the TAC Board has been reconstituted with sevenmembers representing the present General Insurance Industry and eight members

from government and Industry.

The controller of Insurance cum Chairman IRDA is the Chairman of TAC.

INSURANCE MARKET IN INDIA

By any yardstick, India, with about 200 million middle class households,

presents a huge untapped potential for players in the insurance industry. Saturation

of markets in many developed economies has made the Indian market even more

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attractive for global insurance for major. The percentage and per capita penetration

of insurance in India compared to other developed and developing countries.

With the per capita income in India expected to grow at over 6 % for the

next 10 years and with improvement in awareness levels, the demand for insuranceis expected to grow at an attractive rate in India. An independent consulting

company, The Monitor Group has estimated that the life insurance market will

grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded

annual growth of 16.5 % )

REFORMS

Reforms have marked the entry of many of the global insurance majors in to

the Indian market in the form of joint ventures with Indian companies. Some of the

key names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life

Canada and Old Mutual. The entry of new players has rejuvenated the erstwhilemonopoly player LIC, which has responded to the competition in an admirable

fashion by launching new products and improving service standard.

The following are the key winds of changes brought about by privatizations.

Market Structure: There has been an overall expansion in the market. This has

been possible due to improved awareness levels thanks to the large number of

advertising campaigns launched by all the players. The scope for expansion is still

unlimited as virtually all the players are concentrating on large cities and towns-

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expect by LIC to an extent there was no significant attempt to tap the rural

markets.

Product Innovation: There has beena plethora of new and innovative productsoffered by the new players, mainly from the stable of their international partners.

Customers have tremendous choice from a large variety of products from pure

term (risk) insurance to unit-linked investment products. Customers are offered

unbundled products with a variety of benefits as riders from which they can

choose. More customers are buying products and services based on their true needs

and not just traditional money back policies, which is not considered very

appropriate for long-term protection and savings. However, there are still some key

new products yet to be introduced- e.g. health products.

Customer Service: Not unexpectedly, this was one area that witnessed the most

significant change with the entry of new players. There is an attempt to bring in

international best practices in service and operational efficiency through use of

latest technologies. Advice and need based selling is emerging through much bettertrained sales force and advisors. There is improvement in response and turnaround

times in specific areas such as delivery of first policy receipt, policy document,

premium notice, final maturity payment, settlement of claims etc. however, there is

a long way to go and various customer surveys indicate that the standards are still

below customer expectation levels.

Channels of Distribution: Till two years back, the only mode of distribution of

life insurance products was through Agents. While agents continue to be the

predominant distribution channel, today a number of innovative alternative

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channels are being offered to consumers. Some of them are banc assurance,

brokers, the internet and direct marketing. Through it is too early to predict, the

wide spread of bank branch network in India could lead to banc assurance

emerging as a significant distribution mechanism.

VITAL ALTERNATIVES

If one analyses the history of growth of the insurance industry since reforms,

it is marked by all-round growth of all players. More or less all players (including

the market leader LIC) have aggressively recruited and trained advisory, appointedagents, launched new products, improved customer service standards and

revamped/expanded their distribution networks. If at all there was any major

difference between players it was only in time lag in launching of services. Every

player would like the customers to believe that its service standards are best or that

its agents are the most informed an ethical, but is trying to be everything to

everybody.

Variety-based Positioning

This type of positioning is based on varieties in products and services rather

than customer segments. It is a sensible strategy for those companies who have

distinctive advantages or strengths in offering certain products and services. In the

insurance industry too, it is possible to achieve a unique position by focusing on

certain category of products. One such example is Birla Sun Life Insurance, which

has been placing particular focus on investment-related products since its launch in

India. Through its superior fund management capabilities, the insurance company

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can deliver better returns in its investment-linked products and thereby carve for

itself a leadership position in this segment.

Needs-based Positioning

This is the most commonly understood positioning and is based on the

different needs of different groups of consumers. This can be successfully if a

company has unique strengths to service a group of customer needs better than

others. The insurance needs of customers vary significantly for different groups of

customers. The insurance needs of young family with small children will be quite

different from that of a family in which the income-earner is close to retirement.

However, in India most of the life insurance companies have a wide variety of

products tailored for different customer needs and there is no company focusing on

a particular customer need.

Access-based Positioning

Positioning of customers can also may be done by the way are accessible.That is different groups of customers may be accessible in different ways even

though they may have similar needs. Access is typically a function of geography or

customer scale.

Insurance - Life

Your family counts on you every day for financial support: food, shelter,

transportation, education, and much more. Insurance provides you with that unique

sense of security that no other form of investment provides. It gives you a sense of

financial support especially during that time of crisis irrespective of the

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fluctuations in the stock market. Insurance provides for your career goals right

from your childhood years.

Life Insurance is all about making sure family has adequate financialresources to make those plans and dreams come true. It provides financial

protection to help your family or business to manage after your death.

Major Life insurance policies are:

Whole life policies- Cover the insured for life. The insured does not receive

money while he is alive; the nominee receives the sum assured plus bonus upon

death of the insured.

Endowment policies- Cover the insured for a specific period. The insured receives

money on survival of the term and is not covered thereafter.

Money back policies- The nominee receives money immediately on the death of

the insured. On survival the insured receives money at regular intervals during the

term. These policies cost more than endowment with profit policies.

Annuities / Childrens policies- The nominee receives a guaranteed amount of

money at a pre-determined time and not immediately on the insured. On survival

the insured receives money at the same pre-determined time. These policies are

best suited for planning childrens future education and marriage costs.

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Pension schemes- Pension schemes are policies that provide benefits to the

insured only upon retirement. If the insured dies during the term of the policy, his

nominee would receive the benefits either as a lump sum or as a pension every

month.

LIFE INSURERS:

1. ALLIANZ BAJAJ LIFE INSURANCE CO. LTD.

2. AMP SANMAR ASSURANCE CO. LTD.

3. BIRLA SUN LIFE INSURANCE CO. LTD.

4. DABUR CGU LIFE INSURANCE COMPANY PVT. LTD.

5. HDFC LIFE INSURANCE CO. LTD.

6. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

7. INGVYSYA LIFE INSURANCE CO. PVT. LTD.

8. LIFE INSURANCE CORPORATION OF INDIA.

9. MAX NEW YORK LIFE INSURANCE CO. LTD.

10.METLIFE INDIA INSURANCE CO. PVT. LTD.

11.OM KOTAK MAHINDRA LIFE INSURANCE CO. LTD.

12.SBI LIFE INSURANCE CO. LTD.

13.TATA AIG LIFE INSURANCE CO. LTD.

NON-LIFE INSURERS:

1. BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD.

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2. ICICI LOMBARD GENERAL INSURANCE CO. LTD.

3. IFFCO TOKYO GENERAL INSURANCE CO. LTD.

4. NATIONAL INSURANCE CO. LTD.

5. NEW INDIA ASSURANCE CO. LTD.6. ORIENTIAL INSURANCE CO. LTD.

7. RELIANCE GENERAL INSURANCE CO. LTD.

8. ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD.

9. TATA AIG LIFE INSURANCE CO. LTD.

10.UNITED INDIA INSURANCE CO. LTD

11.REINSURERS:

GENERAL INSURANCE CORPORATION OF INDIA

COMPANY PROFILE

Promoters & Company Background

HDFC LIFE

Respect Yourself

BACKGROUND

Housing Development Finance Corporation

Standard Life Insurance Company

Market Potential

Why LIFE INSURANCE from HDFC STANDARD LIFE.

INCORPORATION OF HDFC LIFE INSURANCE CO. LTD.

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MISSION

CORE VALUES:

SecurityTrust

Innovation

GROUP COMPANIES

HDFC LIMITED

HDFC BANK LIMITED

HDFC Asset Management Co. Ltd.

HDFC Securities Ltd.

HDFC Realty Ltd.

HDFC Chhubb General Insurance Co. Ltd.

PROMOTERS AND COMPANY

BACKGROUND

Background: Promoters

Housing Development Finance Corporation

27 Year track record

Strong Public and market acceptance

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Market leader in mortgage finance 18 Lakh financed in over 2400

towns

11 Lakh retail deposit customer base

Asset base of More than Rs. 15000 CroresDeposits and bonds rated FAAA and MAAA by CRISIL and ICRA

for last 10 years.

Standard Life Assurance Company

Over 175 years experience in Life Insurance.

Assets of US $ 110 Billion.

Voted Life Insurance Company of the decade by the IFAs in UK.

Market Potential

Only 25 % of insurable population has been covered till this date.

Much smaller ratio of the population is adequately covered (less than

23%)

Life premiums expected to increase from 6% to 18% of Gross

Domestic Savings by 2010.

Premiums expected to rise from Rs. 26,000 Crores to Rs. 5,12,000

Crores by 2010.

Policies in forces expected to go from 10 Crores to over 18 Crores by

2010.

Why Life Insurance from HDFC Life

Strong parentage & long term commitment to this business.

Ability to inject additional equity capital.

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Can support long gestation business.

Renowned for transparency and high corporate governance standard.

Track record in personal financial sector.

Realistic promises and need based selling.Customized solutions.

Commitment to customers.

Superior service levels.

Quality of advice.

INSURANCE AGENTS

An insurance agent is a person who sells insurance policies after training and

certification. They sell 3 basic types of insurance- life insurance, property-liability

& health insurance.

THE TASKS-

Helping individuals or companies select the right policy for their needs.

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Planning for the financial security of individuals, families and

businesses, advise about insurance protection for an automobile,

home, business, or other property

Preparing reports and maintains records.Helping a policyholder obtain settlement of an insurance claim.

Insurance agents have to undergo training. Initial stipends and pocket expenses

form part of the initial packet to the agent in addition to the commission.

SURVEYORS OF INSURANCE

Insurance surveyors are technically qualified professionals deputed foe the

assessment of losses according to their qualifications and experience. A surveyor

with the background in Mechanical Engineering does the assessment in the case of

an industrial accident. The surveyor does not just survey-he/she investigates,

evaluates, assesses, adjusts, determines liability, negotiates and finally reports. He

is the only specialized link between the insurers and the insured. He helps insurersby minimizing and avoiding false, exaggerated claims and on the other hand helps

the insured that have suffered a genuine loss by indemnification of their loss. For

this purpose a professional insurance surveyor is needed. The work of an insurance

surveyor is not always a pleasant exercise. There are irregular timings, traveling

and hard work. A surveyor needs to have the eye of a detective and the balance and

tact of a diplomat.

ROLE OF AN INSURANCE AGENT:-

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Insurance companies may designate their insurance agents as consultants, advisors

or by any other name. a person requires license under Insurance Act to be able to

function as an insurance agent.

Insurance is an important component of distribution channel for life insurance

business. He is required to solicit and procure new insurance business in a manner

consistent with the interest of the policyholders and his insurance company. To

achieve this, he is required to:-

Meet prospects, analyze their financial needs, and persuade them to

buy a product which provides solution.

Arrange completion of all essential requirements for the underwriter

viz. filling of proposal form, collection of premium, medical

examination, age proof, proof of income (if required) or other medical

reports.

After a proposal results into a policy, it is in the interest of the life assured , theagent and the insurer that the business is covered and it continues, without a lapse,

till it results into a claim. Therefore, the agent has to

Remain in contact with the policyholders and ensure that renewal

premiums are paid on time.

Take care that nomination is made under the policy and is changed

under the changed circumstances.

Provide help to the claimants to complete necessary forms and

comply with other requirements relating to claim settlement.

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PREREQUISITES TO SUCCESS-

An agent has to be familiar with the following so that he may perform hi role well-Various plans offered by his insurer, their benefits and restrictions.

Office procedures for various matter as also the forms and documents

required.

Other financial instruments, suitable for savings and investment

available in the market and their benefits and their advantages.

Law, particularly the taxation aspects relating to these instruments.

SELECTING RIGHT CANDIDATES AS FCs

Prospect- first step is to prepare a regularly growing list of prospects.

A prospect is a person who can be approached for insurance.

Prospecting is the process of finding more and more potential

customers.Sources of prospecting are:-

a) Friends, acquaintances, neighbors etc.

b) Newspapers, bulletins, directories etc.

c) Social, official and religious meetings etc.

Qualification- a qualified PROSPECT is one who

a) Has a need for insurance

b) Has a capacity to pay

c) Is approachable and

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d) Is acceptable to ensure

Getting the information is called qualifying. A qualified prospect is the

target person for insurance sales.

Inventory of prospects:- it is necessary to keep a record of this

information. It is called inventory of prospects. Prospects interests,

income, and friends, social needs etc. information collects as possible.

Time: - take appointments for the prospects.

Recall: - Time to time recall them.

37

Approach

Objections

Interview

Motivation Recruitment

Pre-approach


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FUNCTIONS OF AN AGENT:-

A life insurance agent has the unique role of such person who enjoys the

trust of two parties, the prospect and the insurer simultaneously in the same

transaction.

EXPECTATIONS FROM AN AGENT:

A life insurance agent is expected to procure life insurance business in

a manner consistent with the interest of the policyholder and of theinsurance company.

To simplify, functions of life insurance agent could be divided into

two parts, via

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a) Pre-sale functions; and

b) Post-sale functions

Before sale After saleContact prospects

Study their insurance

needs

Persuade them to buy

Completion of

formalities for proposal

of new insurance viz.

Filling of forms

Arranging for medical

examination

Collecting proofs of age

& income atc.

Any other information

required by the

underwriter.

Collection of firstpremium deposit

Ensure payment of

renewal premiums

Assist policyholder for

nomination or change

thereof

Assist the policyholder

in case he wants to get

loan against the policy

Assist the policyholder

or the claimant to the

comply with the

requirement for getting

timely settlement of

claim

Keep regular touch with

the customer

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Keeping customer happy

The factors that make customer happy are- Recognition & Respect

Responsiveness

Ease of access

Reinforce the impression that the agent is trustworthy and dependable.

Enhance the insurers image.

Continued touch with the Customer

DOs for the Agents -

I. Disclose his/her license on demand;

II. Explain all available options to the prospect;

III. Disclose the scales of commission if asked by the prospect;

IV. Explain the nature of information required in the proposal form;

V. Impress upon the Prospect to disclose all information;

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VI. Inform the insurer about any adverse habit and material fact of the

Proposal;

VII. Assist the policyholder or claimant for compliance of

requirements;

VIII. Inform the Prospect about acceptance or rejection of Proposal;

IX. Advice the policyholders;

X. Conserve business by ensuring remittance of premium by the

policyholder in time.

What would a career with HDFC L ife offer as a Certified FinancialConsultant?

Choose their own timings for working.

Choose the customers they wish to serve.

Unlimited opportunity to earn.

ONLY profession where there are definite benefits derived for todayswork for the next 10-20 years.

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This is the ONLY profession, which gives up to 40% gross margin

without ANY capital investment in the business.

BDM/SDM support at all times.

Non-monetary benefits.

Who is certified Financial Consultant (CFC)?

Why do not HDFC call them agents?

Certified Financial Consultant. The title Consultant therefore

reflects the image we wish to develop and advocate in the market.

People associate agents as middleman.

The need for a consultant who will provide a customer-centric

solution is inevitable.

Earnings Potential

Commission Structure

Endowment Plan 40%

Money Back Plan 40%

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Personal/UL Pension Plan 7.5%

SPWOL 2%

Children Plan 40%

Term Assurance 20%

LCTAP 20%

UL YSS/ULEP 12.5%

MDRT Benefits

Million Dollars Round Table Conference.

28285 Members from 34 nations from 476 companies.

12 MDRT from HDFC Life.

2 Court of table members.

ELIGIBILTIY (IRDA MANDATORY)

18 + years of age/ 10+2 passed/ willing to undergo 100 hrs. IRDA

mandatory training.

Concept of tied agency.

Club Membership Benefits

Star Centurion Club

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Star Gold Club

Star Silver Club

Training Organizations

SIL/NIS/MIT/OTHERS with tie-ups

Classroom/On-line

Training Costs

In excess of Rs. 8000 per person.

Our Commitment

HDFC Life will meet the cost of training.

What HDFC Ask From a CFC

Commitment to attend all training sessions.

Commitment to complete all studies.

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RECRUITMENT PRACTI C ES ADOPTED BY HDFC LIFEINSURANCECOMPANY

At first, we classified the market into different Segments according to the

requirement of SDMs. The segmentation is as follows-

Fields No. of Persons

1. Charted Accountants 42

2. Consultant Services 22

3. Beauty Parlors 35

4. Housewives 20

5. Automobiles 20

6. Job Searchers 15

7. Retired Person 14

8. LIC Agents 12

9. Share Brokers 10

10.Advocates 20

11.Medical Representative 5

12.In Job 18

13.Other Consultant 7

14. Sales Executive 13

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Tools we use for the purpose

Telephonic Calls

Questionnaire

Then we take the interview of the respondentsWe invite the desired people in Business Opportunity Presentation

Through telephonic calls & personal invitation

We organize BOP to aware people for FC & to give the proper

knowledge about HDFC Life & Insurance Sector.

We also take suggestion & references from existing FCs

We recall those interested persons who take interest in our proposal &

want to work with HDFC Life.

Finally the approach us, we explain them the whole Procedure of

recruitment & we solve their queries.

Than our SDM meet the Person & select the person according to the

norms.

Regional Manager interviewed the person and

At last, the person had filled Yellow form

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47

Prospecting Making the appointment Opening the meeting

Motivate for recruiting as FC

Analysis and preparation

Exploring needs

Selection process


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Objectives

Target/Tasks

Strategy

Achievement

Limitation Conclusion

ON JOB TRAINING

On the Job Training takes place in a real job environment where the trainee

is exposed to an actual work situation. While exposed to real industrial

environment by doing SIP at HDFC LIFE I got the various practical as welltheoretical aspect of Marketing & Finance apart from bookies knowledge. As so

far concern with OJT at HDFC LIFE (insurance company) gives me a target for

recruiting the financial consultants and asked to collect feedback from customers.

Based on requirement I was provided a DISHA. According to this I have to

contact the customers and analyzed their views.

OBJECTIVES- In first day he had taken my interview & after that he had given

me orientation program.

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In orientation he explained about companys organization hierarchy.

Orientation helps us in reducing the initial anxiety. He wanted to become familiar

with the organizations history, philosophy, objectives, and procedures the main

reason for orientation program is-

To make us feel welcome in the organization. To create positive

perception.

To reinforce our confidence so we should finish the first day in

his new job with a feeling of satisfaction & happiness.

To benefit to organization.

Get hands on experience.

Get some insight about Life Insurance Companies & their

procedure.

Perception of customers related investment, and

Also how to tackle peoples.

TARGETS

I have to contact the customers 50 per day. In first week I felt hesitation in

the working with customers that how should I talk and what kind of replay will be

coming from customer side but after some time I was able to perform my job

efficiently.

In second round, our company BDM had given the task to do some official

work related to insurance policies. I had filled some fund switch instruction forms.

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From OJT I got hands on experiences this form of direct learning helps us to

understand & imbibe the training lesion better.

STRATEGY

For recruiting of financial consultants, BDM of the Company has provided

me the telephone directory to contact potential customers of insurance in the town.

I had contacted over telephone to the person of various segment like owners of

beauty parlors, advocates, chartered accountants in Udaipur and Bhilwara also.

ACHEVEMENTS

With the above efforts I got positive response from customer side and they

were agreed for working as consultant for HDFC and assured to contact me in the

Office immediately.

Learning Experience-

Earlier I hesitate to talk person whom I dont know but after some times itbecomes very easy to me talk with person for the business.

From training session I am able to know about insurance industry, IRDAs

work, insurance policy etc. what is benefit of policy how to sell them,what is

charges minimum & maximum age & all.

LIMITATION

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Though the present study aims to achieve the above mentioned objectives in full

earnest and accuracy, it may be hampered due certain limitations. Some of the

limitation of this study may be summarized as follows:

Sometimes lack skills of communication and expressiveness the OJT.

Time constrained is also there.

Sometimes due less knowledge of company product and financial

terminology hampered the OJT.

On the Job Training Conclusion

The act increasing knowledge and skills of an employee for doing a

particular job. Successful training programs improve the performance of an

employee, which in turn enhance organizational performance. This form of direct

of learning helps us understand and imbibe the real work situation better through

this sort of OJT training gains the skill and confidence to perform the job without

the supervision or the trainer and develop their team management skills,

interpersonal skills, communication skills, problem solving skills and leadership

skills. The major purpose this sort of training are improving trainee performance,

updating skills, avoiding managerial obsolescence, preparing for per motion and

managerial succession and satisfying personal growth needs and prepare individual

to future responsibilities

AN ASSESSMENT OF THE INTERNSHIP

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SURVEY

Privatization: Changing Consumer Perception/Preferences and influence ofAdvisors.

Name:....

Age:................ Sex: M F Marital status: Single Married Occupation:...................... Contact no.:

Annual Income: 1) Upto 1.5 lacs 2(1.5 lacs 3 lacs 3(3 lacs 5 lacs 4) Above 5 lacs

Q1. Mention the names of pvt. Life insurance companies you have heard ofI) IV)II) V)III) VI).

Q2. How much do you save approximately of your annual income? ..

Q3. Where do you invest/would like to invest your savings? (Rankin order of preference)

I) Banks________________ III) Share Market________ V) Insurance_______II) Bonds & Securities_____ IV) Mutual Funds________ IV)

Real Estate/Property____

Q4. Have you taken life insurance on your own life or on life of any of you familymembers?

YES NO If Yes, Please mention:

No. of Policies LIC Private Companies (With Names)____ _____Average coverage ____________ _________________

Type of Plan ____________ __________________

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_____________ ________________________________ ___________________

Q5. What was you purpose/will be your likely purpose of taking insurance? (Rank in orderof Preference)

I) Protection of Family________ III) Tax benefit_____________II) Investment__________ IV) Old age provision________

Q6. Have you ever been approached for Life insurance by any of the following (please), also Rank according to your preference from whom you are most likely to buyinsurance?I) Known/Current Advisor_____ _____II) Advisors referred by friends/family _____ _____III) Telesales and subsequent visit by unknown Advisor _____ _____

IV) Schemes offered by your bank (Bancassurance) ______ _______V) Group Policies offered by your employer _______ ________

Q7. Are your insurance needs being looked after by one or more agents?One /More than One

Q8. How long have you been serviced by them?5Yrs >10Yrs

Q9. Are you satisfied with the service being provided by them? YES / NO

Q10. Do they call you periodically or at least when you need them? YES / NO

Q11. Do they keep you informed about the new products introduced? YES / NO

Q12. Do they display more confidence & are more professional when compared with theagents operating before the insurance sector was opened up? YES / NO

Q13. Do you feel opening up of the sector has created more insurance awareness among thepublic? YES / NO

Q14. Do you think, the competition introduced in the sector has resulted in improvementin:

Customer Service YES / NO

Time lag in providing services YES / NO

Transparency/Information Sharing YES / NO

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Cost Effectiveness YES / NO

Innovative Products YES / NO

Q15. Now that the sector has been opened up about four years back, would you prefer tobuy insurance for self and family through? LIC / Private InsurersPlease give reasons for your response

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

SURVEY

Impact of Bancassurance on Decision making pattern.

Name:....Age:................ Contact no.:Annual Income: 1) Upto 1.5 lacs 2) 1.5 lacs 3 lacs 3) 3lacs 5 lacs 4) Above 5 lacs

Q1. For how long you have been customer of this bank?1) >5 Years 2)


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Q6. What kind of products did they offered you?I) Term Plan_____II) Money back Plan_____III) Endowment Plan_____IV) Pension Plan_____V) ULIPs_____

Q7. What do you think is the biggest advantage of this Channel?I) Convenience of Premium Payment_____II) One stop shop for various financial solutions_____III) Approachability_____IV) Innovative Products_____

Q8. How do you find this service? Please Comment_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________

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Recommendation

Broaden the Customer Base:-The company should also try to cater to rural masses and provide knowledgeAbout the benefit of investment in insurance sector as they might not be able toinvesta huge amount but small investment premium by them should be taken into

Consideration. These might add volume business for the company.Critical Illness:-In insurance sector critical illness includes only cover against diseases like

Cancer, diabetes, heart disorders etc. but the insurance companies ignores thatInsurance cover can be to person suffering from AIDS or who is HIV +ve. So theCompany cans this factor into consideration.

Disha Programming:-The company for it Financial Consultant and Sales Development Manager has

Develop a Module called Need Base Development Module under DishaProgramming. But this module is rarely followed by the company SDM andFinancialConsultant. So, if they follow the module the company can bring in goodamount of

business.

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Conclusions

The end of the year 2000 marks a significant change and growth of 'IndiaInsurance' industry scenario. Monopoly of Public Sector Insurance company marks

anend and Private companies makes inroad. Foreign companies, in Life insuranceflocked, collaborated and helped astronomical growth of 'Insurance Industry inIndia'.Life insurance products cover risk for the insurer against eventualities likedeath or disability. They are not as popular as life products in the ' InsuranceIndia's'

portfolio. Until very recently it had only corporate buyers, but with naturaldisasterslike, earth quakes, tsunamis, storms and floods becoming more frequent and

damaging there has been a sudden spurt in sales of general insurance amongstindividuals. Consumerism of life style goods and modern amenities has alsocontributed to its growth. With more awareness and wide bandwidth of insurance

product portfolio the growth for 'India Insurance' story will only get morecompetitiveand more affordable to all sections of Indian society.So, if we look insurance sector is a booming industry with a good growth

prospect, but the only thing that makes people scare to invest in insurance sector islack of knowledge and trust on private insurance but with time this image ischanging.This three months working in insurance sector gave a good insight about howan insurance sector works and what challenges the people working in insurancesectorface. And this experience thought me that self motivation is an important factor to

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have driven to succeed in life and achieve goals

Illustrations & Annexure

DATA ANALYSIS

&

INTERPRETATION

SAMPLING DETAILS

Sample Size 65 Samples were selected on random basis

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Highest number of Respondents from Age group below 28, mostly BPO executives 43%

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Total number of single respondents 32

Total number of married respondents 33

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-

Respondents reluctant in providing actual/real figures

Highest, 23 respondents in income bracket 1.5 3 lacs, which comprises mainly of age

group below 28 years.

Minimum, 9 respondents in income bracket of above 5 lacs, 6 of which are in age group

of above 35 years.

BRAND AWARENESS

010203040506070

8090

100

ICICIP

rude

ntial

TATA

AIG

HDF

CStan

dadr

Life

Birla

sun

life

Aviva

M

axNew

YorkLi

fe

OM

Kotak

Mahind

ra

ING

Vys

ya

Metlife

SBIL

ife

Brand awareness in %ge

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N u m b e r o f p e o p le A w a r e o

6 1

5 5

534 2

2 6

37

2 9

1 73 8 7

ICICI Prudent ia l

TA TA A IG

H D F C S t an d ad r

B i rla s un l i feAviva

M a x N e w Y o rk

O M K o t ak M a hi

IN G V y s y a

M et l i fe

S B I L i fe

ICICI Prudential has the highest Brand Recall 94% HDFC Standard life has Brand Recall of 82%

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Respondents reluctant in providing actual figures, 3 of them didnt provided any figure at

all

Some of them said they dont remember while other were not certain about the figures

Out of 24 respondents who earn above 3 lacs, 15 of them invest I lac or above

RESPONDENTS PREFERENCE IN CHOOSING INVESTMENT

OPTIONS

For age group Below 28 (Sample size 28)

64

Frequency

Preference Rank I II III IV V VIBanks 3 3 3 4 4 11Shares 6 2 5 4 6 5

Insurance 3 6 7 5 7 0

Bonds & Securities 3 3 3 6 6 6

Mutual Fund 6 9 4 5 3 1

Property 6 5 6 4 2 5


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This age group comprises mainly of single respondents with earning upto 3lacs

We can see that risk appetite of this age group is more as they prefer to invest in ventures

capable of giving very high returns

Insurance ranks 3rd & 5th in preference for investment tools, there is no definite pattern of

preference

For age

group 28 35

Years

(Sample

size 20)

This age group comprises mainly of married respondents with variable income

Property and mutual funds are the most preferred tools for investment

Banks and share are least preferred tools because of low returns and high risk

respectively

Insurance ranks 3rd but greater number of respondents in this age group take it as

preferred tool (4 as 1st and 4 as 2nd preference)

65

Frequency

Preference Rank I II III IV V VI

Banks 3 1 3 2 6 5Shares 2 2 1 3 5 7

Insurance 4 4 6 3 1 2Bonds & Securities 2 3 3 5 4 3

Mutual Fund 2 6 3 5 3 1Property 7 4 4 2 1 2


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For age group above 35 years (sample size 17)

This age group comprises mainly of married respondents with variable income

Property, mutual funds and insurance are most preferred tools of investment in this age

group.

Insurance rank is 2nd , 3rd and 4th among preferred tools of investment

66

FrequencyPreference Rank I II III IV V VI

Banks 1 2 2 3 4 5

Shares 1 1 1 3 5 6

Insurance 3 4 5 4 1 0


Mutual Fund 2 4 3 4 3 1

Property 6 3 2 3 2 1


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After taking all the samples together (sample size 65)

Frequency

Preference Rank I II III IV V VI

Banks 7 6 8 9 14 21Shares 9 5 7 10 16 18

Insurance 10 14 18 12 9 2


Mutual Fund 10 19 10 14 9 3

Property 19 12 12 9 5 8

Property as an investment option is most lucrative choice. However it is important to mention

that majority of respondents are in age group of below 28 who dont have their own real

estate property and intend to buy one.

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Mutual funds follow because of recent popularity and high returns.

Banks and shares are least preferred options because of low returns and high risk respectively

Insurance is 3rd most preferred choice for investment

POLICY DETAILS

78 % of respondents have insurance cover on own life and on life of their family members

52% of respondents have insurance cover provided by LIC

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24% of respondents have insurance cover provided by pvt. Companies

Other 24% have got insurance from both LIC and pvt. companies

Total number of LIC policies sums up to 55 (68%) and total number of pvt. Companies

policies sold sums up to 26 (32%). (This includes multiple policies bought by one respondent

from different companies)

Data provides that pvt. Companies are fast making a mark in the market

Money back and endowment plans have been most popular plans till now

ULIPs are fast gaining popularity

A large number of respondents were not even aware of type of plan, mainly because policy

was not bought by them directly

Similarly very few people remembered exact S.I. under the policy, so the data collected was

not accurate hence not included

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PURPOSE FOR BUYING INSURANCE

Analysis for age

group below 28

years (Sample size

28)

Risk cover is the most important purpose for buying insurance followed by option as

investment and old age provision

Analysis for age

group 28 35 years

(Sample size - 20)

70

Frequency

Order of Preference I II III IV

Risk Cover 10 8 5 5

Investment 6 11 6 5

Tax Purpose 7 5 8 8

Old Age Provision 5 4 9 10

Frequency


Risk Cover 13 4 2 1

Investment 2 5 10 3

Tax Purpose 3 7 4 6



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Risk cover is the most important purpose for buying insurance followed by option as

investment and old age provision

Analysis for Age Group above 35 years (Sample size 17)

Risk cover remains the most important purpose for buying insurance followed by old age

provision with increase in age

Analysis for total Sample

71

Frequency


Risk Cover 12 3 2 0

Investment 2 3 8 4

Tax Purpose 1 3 5 8Old Age Provision 2 8 2 5


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Risk cover remains the most important purpose for buying insurance followed by option as

investment

ULIPs are responsible for increasing popularity of insurance as an investment tool

72

Frequency


Risk Cover 35 15 9 6

Investment 10 19 24 12Tax Purpose 11 15 17 22



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Out of 65 respondents 62 have been approached for Insurance from their known advisor or

by advisor referred to them by friends or family members

This shows the penetration retail channel have in the market

Most of the respondents (48) have received calls from various companies for Insurance

Bancassurance is fast spreading wings with 34 respondents being approached via this

channel

Group Insurance lags behind at the last place but it has to be kept into mind that not many of

the respondents were public sector employees where group insurance is quite popular

PREFERENCE OF CHANNEL FOR BUYING LIFEINSURANCE

Sample size 65

According to data retail channel / Advisor remains the 1st choice for buying

Insurance

73

FrequencyOrder of Preference I II III IV V

Current/Known Advisor 42 8 10 5 0

Advisor referred by family/friend 9 36 12 6 2

Telesales & subsequent visit by unknown Advisor 0 4 6 13 42Cassurance 9 12 25 12 7Group Insurance provided by Employer 5 5 12 29 14


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In retail also known Advisors are preferred over referrals

Bancassurance is emerging as a popular option for buying life Insurance

Group insurance is not so popular because not so many employer are taking

initiative Buying insurance from a unknown person is still not preferred by many people

Sample size 25 All sample were collected on a random basis

Highest number of Respondents from Age group 28 - 35

Respondents reluctant in providing actual/real figures

Highest, 12 respondents in income bracket 1.5 3 lacs, which comprises mainly of age

group 28 - 35 years

Minimum,3 respondents in income bracket of above 5 lacs

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Very few respondents who have been attached with the bank for more than 10 years

Maximum 12 people availing services of bank for more than 5 but >10 years followed by

11 respondents who were bank customer for less than 5 years.

Majority of respondents find services provided by bank to them as satisfactory.

Inspite of availing so much modern day banking facilities, customer expectation is still

rising.

Most of the people find that the bank charges too much for add-on services.

Majority of them accepted that facilities like ATM, online banking etc has made banking

faster than ever.

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Majority 84 of respondents were aware about Bancassurance. 19 0f them have been

approached for insurance by this distribution channel.

This shows that Bancassurance is fast growing as a channel for selling insurance and is

aggressively reaching out to its customers.

Maximum numbers of people are approached when they visit banks floor. Infact almost

each and every customer coming to bank is ais a potential prospect.

Telecalls are made by insurance people to the referrals provided to them by bank.

Very few people volunteer for insurance as it is a widely acclaimed fact.

People who take loans from banks are advised by banks personnel to go for loan cover

insurance etc.

Pension plans and unit linked plans are most popular plans that are pitched to the customers.

Traditional plans are taking a backseat.

Term plans are mainly offered to those having housing or some kind of loan.

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Biggest Advantage that consumer perceives is that of approachability. Bank is the place

they visit frequently anf they feel they will be better able to keep track of their policies.

Customers are also like the convenience of getting complete financial solution under one

roof.

Bibliography:

To obtain more information regarding the present study and to

substantiate it with theoretical proof, the following references were

made: www.kotklifeinsurance.com

www.avivindia.com

www.hdfcstandard.com

www.bimaonline.com

77
http://www.kotklifeinsurance.com/http://www.avivindia.com/http://www.hdfcstandard.com/http://www.bimaonline.com/http://www.avivindia.com/http://www.hdfcstandard.com/http://www.bimaonline.com/http://www.kotklifeinsurance.com/


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Name Mohd Sabir Tanwar Email id [email protected]

Section FI2 FW10-12
mailto:[email protected]:[email protected]

A Report Mba

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