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INTRODUCTION

India is the largest democracy in the world having a population of

more than one billion. It is 5th largest in the world in terms of purchasing

power parity (PPP). Indian GDP growth rate is over 6 percent per year on

average for the last decade and saving rate is around 26 percent of GDP.

Through India's economic development, it becomes the

molucrative insurance markets in the world. Before the year 1999 there

were monopoly of state run Life Insurance Corporation of India (LIC), in

life insurance sector and General Insurance Corporation of India (GIC),

with its four subsidiaries in general sector. In the wake of reform process

and passing Insurance Regulatory Development Act (IRDA) through

Indian Parliament in 1999, Indian Insurance was opened for private

companies.

What is Life Insurance

Insurance is a contract between two parties whereby one party

called insurer undertakes in exchange for a fixed sum called premiums, topay the other party happening of a certain event.

Insurance is a protection against a financial loss arising on the

happening of an unexpected event. Insurance Companies collect premium

to provide for this protection. A loss is paid out of this premium collected

from the insuring public. The Insurance Company act as a trustee to the

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amount collected through premium.

Insurance is generally classified in three main categories,

1. Life Insurance,

2. Health Insurance and

3. General Insurance.

To get insurance an individual or an organization can approach to

an insurance company directly, through Insurance Agent of the concerned

company or through Intermediaries.

Benefits of Insurance

Insurance is the instrument of Security, saving and peace of mind.It provides several benefits by paying a small amount of premium to an

insurance company.

Life Insurance has come a long way from the earlier days when it

was originally conceived as a risk-covering medium for short periods of

time, covering temporary risk situations, such as sea voyages. As life

insurance became more established, it was realized what a useful tool it

was for a number of situations, including.

Temporary needs or threats: The original purpose of life insurance

remains an important element, namely providing for replacement of

income on death etc.


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Regular Savings: Providing for one's family and oneself, as a medium to

long term exercise (through a series of regular payment of premiums).

This has become more relevant in recent times as people seek financial

independence for their family.

Investment: Put simply, the building up of savings while safeguarding it

from the ravages of inflation. Unlike regular saving products, investment

products are traditionally lump sum investments, where the individual

makes a one off payment.

Retirement: Provision for later years becomes increasingly necessary,

especially in a changing cultural and social environment. One can buy a

suitable insurance policy, which will provide periodical payments in one'sold age.

All these events are fortuitous in nature they are out of the control

of the family and more in the hands of the destiny. In order to reduce the

aliments of risk existence of insurance is must.

So the insurance ensures protection of economic value of assets or

insured against the risk of being destroyed or made non functional due to

any accidental occurrence.

Insurance is used with reference to financial protection against a

possibility of uncertainty such as fire accidental damages theft motor


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insurance household insurance travel insurance health insurance.

Life insurance is needed because of human life is a income

generating assets. This asset can be last through unexpected death or

made nonfunctional through sickness or disability caused by an accident

there is no certainty that the accident will happen one other hand there is

a certainty that death will happen but it's timing is uncertain.


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INDUSTRY PROFILE

The insurance was originated from the Babylonian civilization

through the Code of Hammurabi dynasty in the year of 2100 B.C

followed by Roman's and Greeks traders.

The first insurance company was established in London. Lloyd's

coffees house insurance developed rapidly with the growth of

international commerce.

The growth of insurance companies

1720-1735 formation of insurance companies in England

1787 S.C fire Insurance Corporation in New York city

1794 Philadelphian insurance company in Philadelphia

1840 first life insurance in Philadelphia

1897 workman's compensation act in Britain

After 19th century several general companies and life insurance

companies were formed with the several benefits, conditions, rules.

Growth of Insurance in India

In India insurance was started in 19th century before the passing

the act of 1938 more then 50 companies participates in the insurance

activities after passing an act 1938. All the companies are merged into a

single company called life insurance Corporation of India in the year


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1999 the government of India passed new act called IRDA. act of 1999

this act regulate the insurance sector in India with the additional license to

private sector companies with the deregulation of the insurance sector

taking place several companies have entered into the Indian insurance

market. The following are the companies including the LIC.

1. Life Insurance Corporation.

2. HDFC standard life.

3. Allianz Bajaj.

4. ICICI Prudential.

5. AVIVA (Dauber CGU) life insurance.

6. BIRLA sun life.

7. ING Vysya life.

8. MAX New York life.9. Omkotak Mahindra.

10. SBI Life.

11. TATA AIG.

12. MetLife Insurance.

13. Reliance Life Insurance.

14. Sahara Life


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COMPANY PROFILE

INTRODUCATION

HDFC standard life insurance company was started on 14th august

2000 and received a licence 23rd October 2000.

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 outset that 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 this time Standard Life

purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in

government 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

advise them upon their investments 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 to the next level. Therefore, in January 2000, an expert team

from the UK joined a hand picked team from HDFC to form the core

project team, based in Mumbai.

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

HDFC and a 5% stake in HDFC Bank.

In a further development Standard Life agreed to participate in the

Asset Management Company promoted by HDFC to enter the mutual

fund market. The Mutual Fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the

name of HDFC Standard Life Insurance Company Limited. Our ambition

from as far back as October 1995 was to be the first private company to

re-enter the life insurance market in India. On the 23rd of October 2000,

this ambition was realized when HDFC Standard Life was the only life

company to be granted a certificate of registration.


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HDFC are the main shareholders in HDFC Standard Life, with

81.4%, while Standard Life owns 18.6%. Given Standard Life's existing

investment in the HDFC Group, this is the maximum investment allowed

under current regulations.

HDFC and Standard Life have a long and close relationship built

upon shared values and trust. The ambition of HDFC Standard Life is to

mirror the success of the parent companies and be the yardstick by which

all other insurance companies in India are measured.

Company Mission:

The company aim to be the top new life insurance company in the

market. This does not just mean being the largest or the most productive

company in the market; rather it is a combination of several things like,

Customer service of the highest order.

Value for money for customers.

Professionalism in carrying out business.

Innovative products to cater to different needs of different

customers.

Use of technology to improve service standards.

Increasing market share.


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LOCATION

HDFC standard life insurance company limited operates its

business through its Branches The HDFC Standard Life Insurance

company holding their main Regional office in Mumbai.

Corporate Office:

HDFC Standard Life Insurance Company Limited,IL&FS Financial Centre,

Plot C22 - G Block,

Bandra Karla Complex, Bandra (East),

Mumbai - 400 051.

Tel: 56932666

Website -hdfcinsurance.com

Delhi Office

HDFC Standard Life Insurance Company Limited

2nd Floor, H 69 Outer circle, Canought place,

New Delhi .


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Tel : 09350 5088 4575

Website hdfcinsurance.com


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Following are the Some branch offices in India

Branch Offices:

Agra

Ahmedabad Ajmer

Allahabad Ambala

Amravati Amritsar

Asansol Bangalore

Bhubaneswar Bhopal

Calicut Chandigarh

Chenna Coimbatore

Delhi Durgapur

Faridabad gaziabad

Hyderabad Indore

Jaipur Jalandhar

Kanpur Kochi

Kolhapur Kolkata

Lucknow Manjery

Mangalore Madurai

Mumbai Mysore

Nagpur Nashik

Patiala Patiala

Pondicherry Pune

Rajkot Salem

Surat Thane

Trivandram Vadodara


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Vijayawada Vishakapatnam

GROUP OF COMPANIES:

A. HDFC HOME FINANCE LTD.

Housing Finance Sector

Against the milieu of rapid urbanization and a changing socio-

economic scenario, the demand for housing has grown explosively. The

importance of the housing sector in the economy can be illustrated by a

few key statistics. According to the National Building Organization

(NBO), the total demand for housing is estimated at 2 million units per

year and the total housing shortfall is estimated to be 19.4 million units,

of which 12.76 million units is from rural areas and 6.64 million units

from urban areas. The housing industry is the second largest employment

generator in the country. It is estimated that the budgeted 2 million units

would lead to the creation of an additional 10 million man-years of direct

employment and another 15 million man-years of indirect employment.

Having identified housing as a priority area in the Ninth Five Year Plan(1997-2002), the National Housing Policy has envisaged an investment

target of Rs. 1,500 billion for this sector. In order to achieve this

investment target, the Government needs to make low cost funds easily

available and enforce legal and regulatory reform.


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Background

HDFC was incorporated in 1977 with the primary objective of

meeting a social need - that of promoting home ownership by providing

long-term finance to households for their housing needs. HDFC was

promoted with an al share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing

stock he country through the provision of housing finance in a systematic

and professional manner, and to promote home ownership. Another

objective is to ease the flow of resources to the housing sector by

integrating the housing finance sector with the overall domestic financialmarkets..

Organizational Goals

HDFC's main goals are to

a) Develop close relationships with individual households,

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

the country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the existing

client base.


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B. HDFC REALITY LTD.

HDFC Reality

The property market in India abounds with possibilities and

potential ... for the large part, it is still highly fragmented and

disorganized.

HDFCrealty.com is HDFC new, organized electronic marketplace

for properties. We provide the entire gamut of real estate services,

bringing together the "clicks world" and the "bricks world" in a

revolutionary and user-friendly way. Making available the best guidance

and the most professional, transparent, efficient service to the real estate

customer.

HDFCrealty.com brings together India's most exhaustive database

of properties. It acts as a one-stop online hub for information,

comparative analyses, transactions, market reach and comprehensive

professional services. For property anywhere in India. For customers

anywhere in the world HDFCrealty.com, the company behind this site,

has been formed by Housing Development Finance Corporation Limited

(HDFC).

HDFC has since emerged as the largest residential mortgage

finance institution in the country. HDFC is India's largest Housing

Finance company is an expert on the housing sector, property markets


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and the real estate business. HDFC has a strong retail orientation with

high quality customer vice being the driving force for its activities. This

expertise and service orientation has developed and strengthened over the

last 22 years. Today 'FC has an office network of 63 offices all over the

country and an overseas office in Dubai. HDFC has financed over 1.5

million dwelling units n loan approvals and disbursements amounting to

Rs. 225 billion and Rs. 3 billion respectively. Back

C. HDFC SECURITIES

HDFC securities is a brand brought to you by HDFC Securities

Ltd, which has been promoted by the HDFC Bank & HDFC with the

objective of providing the diverse customer base of the HDFC Group and

other investors a capability to transact in the Stock Exchanges & otherfinancial market transactions.

HDFC securities, will equip you with the necessary tools to

allocate, select and manage your investments wisely, and also support it

with the highest standards of service, convenience and hassle-free trading

tools.

HDFC securities mission is to provide our customers with the most

useful investment guidance and investment-related services available in

the country. We want to become a one-stop solution for all your

investment needs, one that will help you get the most out of your money.


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What company does

HDFC securities are introducing a transparent and convenient

investment execution facility for the investor community. In the first

phase our services will comprise buying and selling of equity shares on

the National Stock Exchange (NSE).

Buying and selling of select corporate debt and government

securities on the NSE would be introduced in a subsequent phase.

In a few months, when the Internet trading module from The Stock

Exchange, Mumbai (BSE) is ready, we will also offer the following

services on the BSE and NSE:

1 .Buying and selling of shares on the BSE

2. Arbitrage between NSE & BSE

3. Derivatives, Futures & Options

4. Margin trading products.


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FUTURE OF HDFC

HDFC has always been market-oriented and dynamic with respect

to resource mobilization as well as its tending Programme. This renders it

more than capable to meet the new challenges that have emerged. Over

the years, HDFC has developed a vast client base of borrowers,

depositors, shareholders and agents, and it hopes to capitalize on this

loyal and satisfied client base for future growth. Internal systems have

been developed to be robust and agile, to take into account changes in the

volatile external environment.

HDFC has developed a network of institutions through

partnerships with some of the best institutions in the world, for providing

specialized financial services. Each institution is being fine-tuned for a

specific market, while offering the entire HDFC customer base the

highest standards of quality in product design, facilities and service.


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Product Profile

Individual Products

Each of us leads a unique life and so has unique needs. HDFC

Standard Life offers a range of products and invites you to choose the one

that suits you best.

With Profits Endowment Assurance:

This policy provides a combination of saving and life insurance.

The sum assured plus any bonuses will be payable at the end of the term

or on death if earlier. The customer commitment is to pay a level

premium regularly throughout the life of the policy. The Endowment

Assurance can be customized to meet your needs by adding any

combination of up to_4 rider benefits.

With Profits Money Back:

This policy provides a combination of savings, regular cash

payments and life insurance. Over the course of the contract, a proportion

of the sum assured will be paid at regular intervals. The sum assured plus

any bonuses will be payable on death before the end of the contract. On

survival to maturity, you will get the sum assured plus any bonuses less

the regular payments already made. Your commitment is to pay a level

premium regularly throughout the life of the policy. The Money Back can


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also be customized to meet your needs by adding any combination of up

to 4 rider benefits.

Term Assurance Plan:

Under the Term Assurance plan, a sum assured is payable in case

of death 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. The Term Assurance Plan comes to

you at a minimal cost and is well suited for the value-conscious customer.

The Term Assurance Plan can also be customized to suit your needs by

adding optional rider benefits

Loan Cover Term Assurance:

The Loan Cover Term Assurance plan provides a lump sum ondeath of the life assured during the term of the plan. The lump sum will

be a decreasing percentage of the initial sum assured. It is an affordable

plan that has been designed to help your family repay the outstanding

loan in case of your unfortunate death on this product.

Personal Pension Plan

The Personal Pension Plan is basically a savings contract, which is

designed to provide an income for life from retirement, with an option to

take the lump sum elsewhere to buy the annuity, provided it is permitted

by the prevailing regulations. Your commitment is to pay a single

premium or level premiums with installments due every quarter, half-year


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or year throughout the deferment period of the policy, after which you

will start receiving your pension.

Children's Plan

The future of your child is most important to you. You need to plan

today to ensure a bright future for your child, whether it is education,

marriage or establishing a professional career. To help you save for your

child, we at HDFC Standard Life present the plan is affordable,

customized to your needs, and above all, enables you to realize your

dreams for your child. This plan is well suited for the value-conscious

customer, and above all, for every loving parent. Grandparents, otherrelatives or any adult for the benefit of a child can also choose the plan.


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COMPANY

BRANCHESBRANCHESBRANCHES BRANCHES

SOUTH ZONEWEST ZONEEAST ZONENORTH ZONE

ORGANIZATION STRUCTURE

ZONAL-WISE ORGANIZATION STRUCTURE


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e and Marketing

Actuarial

Medical

Account

G MOperation &Underwriting

HODH.R

G M Finance&

Actuarial

HODLegal

& Secretarial

HODIT

Retail Sale NorthOperationRetail Sale Southnstitutional Sale Underwriting

hannel Distributionale Training

Marketing

Organizational Structure

MD & CEO

Zonal Manager

Zonal Manager


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BRANCH MANAGER OFFICESTAFF

DEPUTY BRANCH MANAGEROFFICESTAFF SERVICE

DEPARTMENTMARKETING

DEPARTMENT

HUMANRESOURCE

DEPARTMENT

DEPARTMETAL WISE ORGANISATION STRUCTURE


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DUTIES AND RESPONSIBILITIES

BRANCH MANAGER:

Overall management of the branch.

Achieving target given by the General Manager in head

office.

Weekly report to the head office.

Take over the full in charge of the department of

administration.

Looking after preventive maintenance planning activities.

Identification of training needs to staff and Business

development

managers.

Call upon weekly meeting to every Business Development

Managers.

Verification of progress of the BDM's.

Implementing new techniques adopting in an marketing.

Follow the principles of life insurance.

DEPUTY BRANCH MANAGER;

1) Assisting manager in day-to-day operations.

2) Managing the affairs of manager during his absence.

3) Maintenance of office in healthy environment.


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4) Execution of work as per the rules given by the head office.

5) Day-to-day verification of login policies and proposed policies.


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HUMAN RESOURCE DEPARTMENT

The primal resource of an organization is the people. Managing its

people is the most important aspect of managing an organization. Scope

of personnel management has also increased considerably in recent years.

Some of the reasons are as follows:

External influences

Changes in expectations

Changes in technology

Intense competition

Gaining of additional knowledge

No longer is manpower just one of the resources in business

organizations. It is the most important of all resources this is because

manpower is that resource through which management wants to direct

control all the other resources. To keep the human power happy and

content the most important objective of every management in order to

meet this objective, management must design and implement a set of

policies procedures and practices absolute.

For the purpose of the efficient running of business the HDFC

standard life insurance company limited, holding separate

manager/officer called H.R. development officer in the every branch

office in all over the India


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Human Resource and Human Resource Management have always

been key factor in the group success. The group of HDFC offers you not

merely a job but an opportunity to fulfill your long term carrier plans.

Specifically the HDFC Standard Life Insurance offers:

1) An unlimited choice of opening.

2) Executing global carrier opportunities.

3) The resource to back to your ideas and upgrade your skills.

4) Challenges aplenty and the chance to make good earnings.

5) Training schemes.

In the same way the HDFC Standard Life Insurance as an aim to

get the award given by International Standard Organization with in one

year in the field of service and management.

The main objectives of Human Resource department in HDFC

Standard Life Insurance Company Ltd.

1) Peace among employees in the office.

2) Better Co-ordination in the working environment.

3) Motivational activities.

4) Sense of belongingness.

5) Recognition of work.

6) Carrier and self-development of employees & Consultants


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EXECUTIVE PERFORMANCE APPRAISAL AT HDFC

STANDARD LIFE.

Instructions to the appraise.

Self-appraisal is a very important part of the executive appraisal

system in the company. It gives you (the appraise) an opportunity to

present a record of your performance for the year, as you perceived it.

The form must be filled with care and thoroughness giving emphasis o

the key aspects of the job.

You are required to indicate clearly the record of our job

performance during the year. Please write only what you had achieved.

Write the appraisal legibly and briefly.

Normally, the executive appraisal is for the financial year-April 1st

to March 31st. Therefore, you must submit the duly completed self-

appraisal with a covering note to your Reporting officer latest by 15th

April of the following year.

Instructions to the Appraiser

Try to be as objective as possible in your rating. Please do not

allow any personal prejudices to color in the rating of your executives.

Do not evaluate on the basis of isolated incidents, but base your judgment

on the entire period under review. In case you have used the significant


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incidents sheet, it could be a great help to you in judging the performance

of your subordinates during the entire period of review.

While writing the report, one item/factor at a time should be

considered and weighed only in relation to the requirement of the job

and level of the appraise.

Performance categorization, grades and equivalent marks

Outstanding A 91 & above

Very good B 81-90

Good C 71-80

Average D 61-70

Below Average E 51-60

Poor F Below 50.

SCOPE OF PERFORMANCE APPRAISAL

The people in an organization have an upper hand in deciding the

fate of organization by achieving the objectives. For the realization of

these goals there should be step-by-step planning and performance by

the human force of an organization. In this sense, true performance ties

in achieving a vision. As we perform, the yardstick for measuring, our

performance keeps changing with every step forward, we perceive our

mission better ad related goals get more closely and easily defined.


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METHOD, TECHNIQUES OR TOOLS USED BY HDFC

HDFC Standard Life Private Limited has taken keen interest for

the development of correct, clear and complete performance appraisal

system. In order to overcome the problems of appraisal techniques and to

run the appraisal system successfully, HDFC follows a mixture of

different appraisal techniques. Through this unique method the

organization is able to have complete and necessary details of employees.

It is conducted annually and the time duration starts from 1st April

and to 31st March. It is done every year with the object of increasing

ability, efficiency, skills etc of work force. But easy sixth year promotion,

transfers, job rotation and necessary actions are taken place. Every

assessment years records are taken into considerations in order toimplement the above mentioned actions.

The organization maintains 2 different booklets for two categories

of executives. The performance appraisal system of HDFC contains an

executive appraisal of 6 different parts involving employees, reporting

officer, wing officer. In addition there is a provision for the HRD officer

to make rtes/recommendations based on the outcome of above parts. This

helps in training for the appraisal.


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MARKETING DEPARTMENTCHIEF MARKETING MANAGER BDMSBDMSBDMSBDMSDMS

CFCCFC

MARKETING DEPARTMENT

HDFC's Life Insurance products are not a marketing products but it

is cover under the marketing department. It is an service given by the

HDFC group to the public in the way of assurance of life of the people

who are insured.

In the realistic manner the product selling is a type of service given

to the public. The marketing of products of life insurance holds line and

staff organizational structure.


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CHIEF MARKETING MANAGER

1) Managing the affairs of BDM'S.

2) Execution of work.

3) Day-to-Day verification of login policies.

4) Implementing new techniques.

5) Fulfill the training needs to BDM'S and his financial consultants.

6) Rewarding the best achiever.

7) Maintain co-ordination between the BDM'S.

BUSINESS DEVELOPMENT MANAGER'S

1) Holding of several financial consultants in hand.

2) Doing part of the tarter plan given by branch manager.3) Maintaining separate group of financial consultants.

4) Identification of training needs to financial consultants.

5) Putting effort on taking policies from his financial consultants.

6) Motivational and Morale support to financial consultants.

7) Day to day interaction between financial consultants.

8) Flow of commission as per the norms with their respective

policies.

9) Go along with the financial consultants when ever appointment

with the proposed clients when the financial consultants in not

able to convince.

10)Recording the day-to-day log inn policies from financial

consultants.


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FINANCIAL CONSULTANTS

The HDFC Standard Life Insurance Company Ltd. dealing their

business through financial consultants. Financial consultants are got

license from the IRDA through their online examination conducted in

training centers.

Financial consultants are the real assets of the HDFC Standard Life

Insurance Company Ltd in which financial consultants have separate

corner for doing business with proposed clients.

Commission payable to the consultants

The Company has decided to review the commission rates witheffect from 1.11.2006.

This note details the changes in the commission rates payable to

individual financial consultants with erect from 1.11.2006.

The company has been offering first year commission at a uniform

rate across all tenors. The cost for the short-term policies are deferent

from long-term policies, hence the consultant would henceforth be paid

commission at a rate, which differs as per the tenor of the policy.


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The company has not been differentiating between the basic

commission and the bonus commission so far. This decision was taken in

view of the fact the financial consultants were new and required some

time to understand the life insurance business. It has now been decided to

pay performance based bonus commission, linked to production levels, to

the consultants with effect 1.11.2006.

The following are the details of the commission structure and NEP

thresholds with effect from 1.11.2006 and are valid till 30th June 2007


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Basic First Year Commission

a) Basic First Year Commission payable on regular premium policies

issued with a premium paying term of 15 years and above.

Name of the Plan Basic commission as a percentage

of First Year Premium received

Endowment Assurance Plan 25%Money Back Plan 25%

Children's Plan 25%

Term Assurance Plan 20%

Loan Cover Term Assurance Plan 20%

Personal Pension Plan 7.5%

b) Basic First Year Commission payable on regular premium policies

issued with a premium paying term of less than 15 years

Name of the Plan Basic commission as a

Percentage of first Year

Premium received.

Endowment Assurance Plan 20%

Money Back Plan 20%

Children's Plan 20%



Personal Pension Plan 7.5%


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c) Basic Commission payable on single premium policies irrespective

of the premium paying term

Name of the Plan Basic Commission as

a percentage of

Single Premium

received

Single Premium Whole of Life Insurance Plan 2%



Personal Pension Plan 2%

Basic Commission would be payable on the actual amount received

and adjusted towards first year premium on regular premium policies and

single premium policies by the company. In case the policy is cancelled

in the first three policy anniversary years or the policyholder exercises the

option to withdraw the policy in the look in period or the benefits under

the policy are reduced, some or all of the basic an bonus commission, as

applicable, would not be payable and if paid, the same would be

reclaimed.


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PERFORMANCE OF THE COMPANY

TABLE-1

TABLE SHOWING THE MONTHLY INCOME OF THE

RESPONDENTS

INCOME NO. OF

RESPONDENTS

PERCENTAGE

Below 5000 10 10%

5000-10,000 40 40%

10,000-20,000 30 30%

Above 20,000 20 20%

TOTAL 100 100%

CONCEPT:

This table is designed to know the income level of respondents.

ANALYSIS:

From the above table it show that 10% of the response fall in the

group of below 5000.40% of the respondents falls in the group of

5000 to 10,000. 30% of the respondents are falls in the level 10,00

to 20,000. And 20% of the respondents in the category above

20,000.

INTERPRETATION:

From the above table it is inferred that most of the respondents fall

in the income level of 5000 to 10,000. This shows average level of

income earning peoples are know the insurance policies, their


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saving plans, and future thinking about the saving.


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GRAPH-1

GRAPH SHOWS THE MONTHLY INCOME OF THE

RESPONDENTS

M S R C A S C - MBA Bangalore

10

40

30

20

0

10

20

30

40

Below 50005000-10,000 10,000-

20,000

Above

20,000

43

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opted to governments sector only,


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GRAPH-2

GRAPH SHOWING PREFERENCE IN BUYING INSURNCE

REQUIREMENTS

50

25 25

0

10

20

30

40

50

GOVT SECTOR PRIVATE

SECTOR

BOTH


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TABLE -3

TABLE SHOWS RESPONDENTS CONSIDERATION WHILETAKING INSURANCE

FATORS INFLUENCE NO. OF

RESPONDENTS

PERCENTAGE

Tax benefits 25 25%

Service 10 10%

Contingency planning 35 35%

Policy matter 5 5%

Others 25 25%

TOTAL 100 100%

CONCEPT:

This table target that what respondents consider while taking a life

insurance

ANALYSIS:

From the above table 25% of the respontants consider tax benefits

has a main thing while taking an insurance. 35% of the respondents

consider Contingency planning as main thing, rest of that

respondents consider service, policy maker and others.

INTERPRETATION:

From the above table shows that majority of the respondents are

influenced to take the insurance is tax benefits and Contingency

planning, rest of that respondents according to their mind set while

taking an insurance.


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GRAPH-3

GRAPH SHOWING RESPONDENTS CONDIDERATION WHILE

TAKING INSURANCE


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TABLE-4

ABLE SHOWING CRITERIA WHILE TAKING INSURANCE

FROM THE COMPANIES

CRITERIA WHILE

TAKING

NO. OF

RESPONDENTS

PERCENTAGE

Safety & Security 42 42%

Service 28 28%

Transparency 18 18%

Others 12 12%

TOTAL 100 100%

CONCEPT:

This table is designed to know the what criteria while taking an

insurance from the companies.

ANAYLYSIS:


25

10

35

5

25

0

5

10

15

20

25

30

35

Tax benefits Service Contingency

planning

Policy matter Others

49

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From the above table it is seen that the more than 42% of the

respondents fall in the safety and security category .28% of the

respondents are falls in the level of service followed by

transparency covers 18% and others covered rest of the 12%.

INTERPRETATION:

From the above table it is inferred that majority of the people seek

safety and security of their funds invested in the companies

through life insurance and rest of the respondents looking forward

companies services transparency and others.


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GRAPH-4

GRAPH SHOWING CRITERIA WHILE TAKING INSURANCE

FROM THE COMPANIES


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From the above analysis it is seen that most of the workig people

insured against life insurance on our own life and their family

covered 1,00,000 to 2,50,000 own 60%of the responsiveness, rest

of the 26% respondents covered under 50,001 to 1,00,000 followed

other 14% covered under below 50,000 and above 2,50,000.

INTERPRETATION:

It can be inferred that working people looking forward on the basis

of their salary level they got a life insurance amount of 1,00,000 to

2,50,000. With this we can interpret that 60% of the people

opting to go for at their income level.


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TABLE-6

TABLE SHOWS NUMBER OF RESPONDENTS KNOW THEHDFC

NO OF

RESOPNDENTS

PERCENTAGE

YES 50 50%

NO 50 50%

TOTAL 100 100%

CONCEPT:This table shows how many respondents know about HDFC'S

standard life insurance company.

ANALYSIS:

From the above table it is identified that 50% of the total

respondents know about HDFC. Remaining 50% does not know


5

26

60

9Below 50,000

50,001-1,00,0000

1,00,000-2.50,000

Above 2,50.000

55

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about HDFC life insurance.

INTERPRETATION:

From the above analyses it can be inferred that 50 % of the

respondents does not know about HDFC standard life insurance

company. It means they have to work more on the advertising part.

GRAPH-6

GRAPH SHOWS NUMBER OF RESPONDENTS KNOW THE

HDFC (SL)

Error: Reference source not found


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TABLE 7

THE TABLE SHOWS THE HOW TO KNOW HDFC STANDARD

LIFE INSURANCE COPMPANY.

TO KNOW HDFC (SL) NO. OF

RESPONDENTS

PERCENTAGE

Financial consultants 20 33.33%

Friends, colligues, relatives 22 36.67%

Media 8 13.33%

Others 10 16.67%

TOTAL 60 100%

CONCEPT:

This table designed to know the expected respondents how to know

the HDFC standard life insurance company.

ANALYSIS:

From the above table it is seen that following information given by

financial consultants an average of 33% followed by friends,

colligues, and relatives by 36% and followed by media 14% rest of

the 16% gathered through others.

INTERPRETATION:

most of the people gathered to know the HDFC standard life insurance


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company through financial consultants and friends, colligues, relatives

an average of more than 70%. From this table it can be identified that part

of the media is comparatively very less.

GRAPH-7

GRAPH SHOWS THE HOW TO KNOW HDFC STANDARD LIFE

INSURANCE COMPANY


2022

810

0

5

10

15

20

25

Financial

consultants

Friends,

colligues,

relatives

Media Others

58

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TABLE-8

TABLE SHOWING RATING OF THE COMPANY.

RATE NO. OF

RESPONDENTS

PERCENTAGE

Good 30 50%

Satisfactory 20 33.33%

Excellent 10 16.67%

TOTAL 60 100%

CONCEPT:

This table is designed to know about the rating of HDFC standard

life insurance company.

ANALYSIS:

It can be analyzed 50% of the respondents response is good and

33% of the response is satisfactory, rest of the 17% of the response

is excellent.

INTERPRETATION:

It is interpreted that majority of the respondents are satisfied with

their companies performance of the life insurance and they rated as

below.


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Less number of branches

Low volume of financial consultants

Effectiveness of organizational health study

Insurance is still considered as tax saving device rather

Than protection

relationship

Difficult to change position of the employee

High volume of attrition rate


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customers.

Use of technology to improve service standards.

Increasing market share


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The 3Ss across the top of the model are described as 'Hard

Ss':

Strategy: The direction and scope of the company over the long term.

Structure: The basic organization of the company, its departments,

reporting lines, areas of expertise, and responsibility (and how they inter-

relate).

Systems: Formal and informal procedures that govern everyday activity,

covering everything from management information systems, through to

the systems at the point of contact with the customer (retail systems, call

centre systems, online systems, etc).

The 4Ss across the bottom of the model are less tangible, more

cultural in nature, and were termed 'Soft Ss' by McKinsey:

Skills: The capabilities and competencies that exist within the company.

What it does best.

Shared values: The values and beliefs of the company. Ultimately they

guide employees towards 'valued' behavior.

Staff: The company's people resources and how they are developed,

trained, and motivated.

Style: The leadership approach of top management and the company's


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overall operating approach.

Effective organization achieves a fir between these elements this

criterion is the origin of the name of the model: Diagnostic Model for

Organizational Effectiveness. If one element changes then this will affect

all others. For example, a change in HR-system like internal career plans

and management training will have an impact on organizational culture

(management style) and thus affect structures, processes, and finally

characteristics competencies of the organization. In change processes,

many organizations focus their efforts on the hard Ss, Strategy, Structureand System. They are less for the soft Ss, Skills, Staff and Style and

Shared Values. Peters and Waterman in In Search of Excellence

commented however, that most successful companies work hard at these

soft Ss. The soft factors can make or break a successful change process,

since new structure and strategies are difficult to build upon inappropriate

culture and values. These problems often come up in the dissatisfying

result of spectacular mage-mergers. The lack of success and synergies in

such mergers is often based in a clash of completely different culture,

values, and style, which make it difficult to establish effective common

systems and structures.

The 7s Model is a valuable tool to initiate change

process and to them direction. A helpful application is to determine


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the current state of each element and to compare this with the

ideal state. Based in this it is possible to develop action plans to

achieve the intended state.

STRATEGY:

Strategy sets out vision, mission, objectives, major action plans

and policies of the entire enterprise. These set out the picture of the

organization in the future. In a typical pattern, it spells out the overall

organization strategy, the SBU strategy, and the functional strategies.

This spells out a broad frame work to guide managers at a level in all

functions in their specific short term objectives. These days, it is advised

to commit mission in writing so that senior management can consult them

whenever in doubt or incase there are difference of opinion

Strategy of HDFC Standard Life Insurance

Following are the strategies of HDFC Standard Life Insurance

1. Identifying Customer needs.

2. Developing new type services

3. Increase Clients satisfaction

4. Maintaining superior quality ofservices

5. Providing satisfactory services to

customers

Strategy regarding

A. Quality

Quality of service is reliable


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Very less complaint from customers

B. Premium

Charges low premium compared with other company

C. Communication

Always be in contact with clients requirements.

Introducing new schemes in communication

STRUCTURE:

The most important resource of organization is its people, how they

are organized is crucial to its functioning and accomplishing

successful implementation of its strategy. The structure provides the

frame work for relationship among different parts of the organization.

The structure sets out formal reporting relationships, mode of

communication among members, their respective roles, rules and

regulations for carrying out different tasks etc.If the organizational

structure is not properly defined, it has detrimental effect of the

effective and efficient working.

Structure of HDFC

Various departments of the company are given below.

Human Resource Department

The primal resource of an organization is the people.

Managing its people is the most important aspect of

managing an organization. Scope of personnel

management has also increased considerably in recent


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years.

For the purpose of the efficient running of business

the HDFC standard life insurance company limited,

holding separate manager/officer called H.R. development

officer in the every branch office in all over the India.

Marketing Department

HDFC's Life Insurance products are not a marketing

products but it is cover under the marketing department. It

is an service given by the HDFC group to the public in the

way of assurance of life of the people who are insured.

In the realistic manner the product selling is a type of

service given to the public. The marketing of products of

life insurance holds line and staff organizational structure

The marketing department is headed by Chief

Marketing Manager. In every branch, there will be

Business Development managers to assist Chief Marketing

Manager.

Finance and Accounts Departments

Finance is the life blood of every business

organization .Without money; a business cannot run

successfully. Business house must necessarily keep a

systematic record of financial transactions. A systematic

record of the daily events of a business concern,


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presentation of its complete financial picture is known as

accounting

In HDFC, the finance and account section are dealt

by the Head office at each Zone. In Kerala, it is in Kochi.

All accounts are managed in this zonal office. Al

transactions in the every branch in this zone are accounted

here. Every branch is lead by this head office. There is no

separate department in every branch for dealing accounts.

SYSTEM

A system is defined process or a set of processes, that links and

orders activities to enable work to be done and goals to be achieved.

These systems are very significant and should be chosen carefully as

they determine the speed, quality, accuracy and efficiency of the

different activities that are carried out on a daily basis. The system in

an organization are chosen considering different factors. These factors

include the size of the organization, the nature of business and so on.

Systems in HDFC Standard Life Insurance

Computers are so versatile that they have become

indispensable to administration and other official procedures. Theycan strengthen mans power in numerical computation and

information processing there by increasing the effectiveness of

organization.

Some of the characteristics of computer are:

1. Speed

2. accuracy


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3. consistency

4. versatility

5. Diligence.

The systems followed by the company are given below.

a) Management Information System:

A separate software is using in each branch to account all

transactions and to generate all those information needed by the

management. The details of all customers are entered in to this

system.

b) Human Resource Information system

It is computer based system followed in HDFC

Standard life Insurance to maintain a better human resource.

Recruitment, selection, training are done in a systematic manner.

STYLE

Using the word STYLE in the context of an organization

refers to the leadership path chosen to lead the employees and the

organization as a whole. The leadership style of an organization is the

approach of top management towards the employees, facing thechallenges, growth of the organization etc.

The organization strongly believes that development is a

process and not an event.

Style of HDFC Standard Life Insurance

HDFC Standard Life Insurance is using a participative


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style of management. The employees at the low level are given equal

importance and they are to be motivated by the managers also.

SKILLS:

A skill is the ability, knowledge, understanding and judgment to

accomplish a task. Skills may be defined as what the company does

best. The distinctive capabilities and competencies that reside in the

organization.

Skills refer to expertness, practical ability or facility in an

action or doing something. It is also the capacity of doing or

performing something individually, independendly, or in a group so as

to attain some pre-determined goals.

Skill of HDFC Standard Life Insurance

SKILLS OF MANAGERS

Every Manager in the organization has sound knowledge of their

own functional fields to provide proper instruction and guidance to

subordinates

LEVEL SKILL OF MIDDLE MANAGEMENT

They have creative and integrative skills of leadership and

motivating skills

SKILLS OF TOP LEVEL MANAGEMENT

Top-level management has the skill relating balancing,


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integrating, setting and developing standards and leading.

STAFF:

Staffing may be defined as filling and keeping filled the positions in

the organization structure. This is done by identifying workforce

requirements; inventorying the people available ; and recruiting,

selecting, placing, promoting, appraising, planning the carriers of

compensating and training or otherwise developing both candidates

and current job holders so that task are accomplished effectively and

efficiently.

Staff of HDFC Standard Life Insurance

HDFC Standard Life Insurance got a huge manpower within the

organization right from the lower level to top level management. Staff

recruitment is done by the management and they are given off the job

training. Staffs in the branch includes Branch manager, Deputy branch

manager, office staff, human resource development officer, Chief

marketing manager, business development officers, financial

consultants.

SHARED VALUE:

Shared values are what engender trust. Values are the identity by

which a company is known Throughout its business areas. These


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values must be explicitly stated as both corporate objectives and

individual values. A shared value is an essential characteristic or

attribute promoted by the organization to motivate the behavior of

members of the organization.

Like customer intimacy

Commitment to results

Shared value of HDFC Standard life Insurance

Maximum satisfaction to customers is the main shared values of

the HDFC Standard Life Insurance. The company belie in the best service

to the customers

FINDINGS

1. 1 It was found that most of the customers are professionals as well

as salaried people

2. 2 40%of the customers are interested in taking high risk investment

in insurance

3. company providing good service to customers

4. Has the product are giving texts benefits contingents plans. Some

people are interested to take the insurance product.

5. customers are benefited through unit linked plans

6. Need based selling policy


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7. more importanceto customer safety and security

SUGGESTIONS

1 Provide more and more training to employees and financial

consultants

2 introduce new life insurance product

3 open more and more branches as according to the growth of

business

4 increase financial consultant commission and incentives

5 increase sales promotional activities and advertisement

6 The company can use latest advertisement media like Tv,

Radio ,news papper etc..

CONCLUSION

Since the incorporation of HDFC Standard life in the year 2000.

Manjeri branch has become an integral part of the joint venture between

HDFC and Europe based life insurance company, which has a history of

more than 200 years in the insurance industry.

HDFC Standard Life is the top most insurance company in the

service industry HDFC Standard life doing lot of work to sustain in the

national insurance market, because of the keen competition. Customers


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service is the word for the company to develop itself, in the competitive

market with the word of "Survival is the fittest". Company is trying to

hard to sustain in the global market. With the work force consisting of

more than 15000 employees along with around 30000 financial

consultants in all over India .

To serve the Indian market through insurance, the company

adopted some new techniques and policies, which are very much essential

in today's market. They are as under,

1. Adopting IRDA (Insurance Regulatory and Development

Authority of India) rules and regulations regarding the service in

insurance industry.

2. Value for money to customers.3. Customer service is the top most priority.

4. Professionalism in carrying out business.

5. Trust and security among the best.

The company is very much concerned about customer service and

security. This has made the company well ahead in the race with their

competitors. In 2005 Company got a certificate from BUSINESS

WORLD Magazine for most respected privet insurance company

RESPECT YOUR SELF

With all these analysis we can conclude that company is trying to


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develop and grow itself in the insurance industry because whoever stay in

this market he is the winner. So applying latest possible service manuals

and methods in their customer satisfaction.and compay main aim to

become NO: 1 Life Insurance company within 2008


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BIBILOGRAPHY

Text Books

Organizational Behaviour - K Ashwathappa

Personnel Management - C B Mamoria

Insurance in India - Kapoor

Other References

Broachers, pamphlets & financial consultants

manuals published by HDFC Standard Life

Websites

www.hdfcinsurance.com

www.hdfc.com

www.lic.com

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