hdfc nupur

Upload: gunjan-arora

Post on 07-Apr-2018

231 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/6/2019 HDFC NUPUR

    1/79

  • 8/6/2019 HDFC NUPUR

    2/79

    This is to certify that Nupur Gupta , a student of the Gauhati University has prepared her

    Training Report entitled Recruitment of Financial Consultant at HDFC STD. LIFE

    INSURANCE under my guidance. She has fulfilled all requirements under the

    regulations of MBA (IIP) Gauhati University, leading th MBA (IIP) degree. This work is

    the result of her own investigation and the project; neither as a whole nor any part of it

    was submitted to any other University or Educational Institute for any research or

    diploma.

    I wish her all success in life.

    Prof. Vibha Kushwaha

    Management Department

    New Delhi Institute of Management Studies

    STUDENTS DECLARATION

  • 8/6/2019 HDFC NUPUR

    3/79

    I hereby declare that the project Report conducted at

    HDFC STANDARD LIFE INSURANCE, NEW DELHI

    Under the guidance of

    PROF. VIBHA

    Submitted in partial fulfillment of the requirements for the Degree of

    MASTER OF BUSINESS ADMINISTRATION

    (Industry integrated)

    TO

    GAUHATI UNIVERSITY, GAUHATI

    Is my original work and same has not been submitted for the award of any other

    degree/diploma

    Fellowship or other similar titles or prizes.

    Place: NEW DELHI NUPUR GUPTA

    Date: Reg.No-003325

    ACKNOWLEDGMENTS

  • 8/6/2019 HDFC NUPUR

    4/79

    I express my deepest and most sincere thanks to Prof VIBHA (Faculty Guide) and all my

    teachers who provided me their valuable time and information. The OJT and

    Project could not be possible without their able support and guidance. It was a

    great opportunity for me to work with HDFC STANDARD LIFE INSURANCE. I

    am extremely grateful to those who have shared their expertise and knowledge with

    us and without whom the completion of this project would have been virtually

    impossible.

    I would like to thank my company guides MR.KAPIL, who has been a constant source

    of inspiration for me during the completion of this project.

    I am indebted to all staff members ofHDFC STANDARD LIFE INSURANCE for their

    valuable support and cooperation during the entire tenure of this project. Not to forget, all

    those who have kept our spirits surging and helped me in delivering my best.

    Last but most important I thank God Almighty above who guided me and bestowed me

    with the wisdom and an opportunity to carry out the project.

    NUPUR GUPTA

    TABLE OF CONTENTS

  • 8/6/2019 HDFC NUPUR

    5/79

    CHAPTER-----1 INTRODUCTION

    1.1 OVERVIEW OF THE INDUSTRY AS A WHOLE

    1.2 INDUSTRY PROFILE

    a. ORIGIN AND DEVELOPMENT OF THE INDUSTRY

    b. GROWTH AND PRESENT STATUS OF THE INDUSTRY

    c. FUTURE OF THE INDUSTRY

    CHAPTER--2 PROFILE OF THE ORGNIZATION

    2.1 ORIGIN OF THE ORGANIZATION

    2.2 GORWTH AND DEVELOPMENT OF THE ORGNIZATION

    2.3 PRESENT STATUS OF THE ORGANIZATION

    2.4 FUNCTIONAL DEPARTMENT OF THE ORGANIZATION

    2.5 PRODUCT AND SEVICE PROFILE OF THE ORGANIZATION COMPETIORS

    2.6 MARKET PROFILE OF THE ORGANIZATION

    CHAPTER-3 DISCUSSIONS ON TRAINING

    3.1 STUDENT WORKPROFILE

  • 8/6/2019 HDFC NUPUR

    6/79

    (Role And Responsibility, TOOL AND TECHNIQUES)

    3.2 KEY LEARNING

    CHAPTER-4 STUDY OF SELECTED REASRCH PROBLEM

    4.1 STATEMENT OF RESEARCH PROBLEM

    4.2 STATEMENT OF REASEARCH OBJECTIVE

    4.3 RESEACH DESIGE OR METHODOLOGY

    CHAPTER-5 ANALYSES

    5.1 ANALYSIS OF DATA

    5.2 SUMMARY OF FINDING

    CHAPTER-6 SUMMARY AND CONCULUSION

  • 8/6/2019 HDFC NUPUR

    7/79

    LIST OF GRAPH AND CHARTS

  • 8/6/2019 HDFC NUPUR

    8/79

    INTRODUCTION

  • 8/6/2019 HDFC NUPUR

    9/79

    1.1 GENERAL INTRODUCTION ABOUT THE SECTOR

    Insurance is a federal subject in India. The insurance sector has gone through a number of

    phases and changes. Since 1999, when the government opened up the insurance sector by

    allowing private companies to solicit insurance and also allowing foreign direct

    investment of up to 26%, the insurance sector has been a booming market. However, the

    largest life-insurance company in India is still owned by the government. The history of

    the insurance sector in India reveals that it has witnessed complete dynamism for the past

    two centuries approximately. The pre-independence era in India saw discrimination

    between the lives of foreigners and Indians with higher premiums being charged for the

    latter.

    Insurance sector has been opened up for competition from Indian private insurance

    companies with the enactment of Insurance Regulatory and Development Authority Act,

    1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and

    Development Authority (IRDA) was established on 19th April 2000 to protect the

    interests of holder of insurance policy and to regulate, promote and ensure orderly growth

    of the insurance industry. IRDA Act 1999 paved the way for the entry of private players

    into the insurance market which was hitherto the exclusive privilege of public sector

    insurance companies/ corporations

    The insurance sector in India has completed all the facets of competition from being an

    open competitive market to being nationalized and then getting back to the form of a

    http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investment
  • 8/6/2019 HDFC NUPUR

    10/79

    liberalized market once again. India insurance is a flourishing industry, with several

    national and international players competing and growing at rapid rates. Due to reforms

    and the easing of policy regulations, the Indian insurance sector been allowed to flourish,

    and as Indians become more familiar with different insurance products, this growth can

    only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the

    Indian insurance industry.

  • 8/6/2019 HDFC NUPUR

    11/79

    1.2 INDUSTRY PROFILE

    a) Origin and development of Industry

    The history of the Indian insurance sector dates back to 1818, when the Oriental Life

    Insurance Company was formed in Kolkata. A new era began in the India insurance

    sector, with the passing of the Life Insurance Act of 1912.

    The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in the

    general insurance sector in India. Established in 1907, Indian Mercantile Insurance

    Limited was the first company to handle all forms of India insurance. The Indian

    Insurance Companies Act was passed in 1928. This act empowered the government of

    India to gather necessary information about the life insurance and non-life insurance

    organizations operating in the Indian financial markets.

    The Government of India issued an Ordinance on 19th January, 1956 nationalizing the

    Life Insurance sector and Life Insurance Corporation came into existence in the same

    year. The LIC had monopoly till the late 90s when the Insurance sector was reopened to

    the private sector. The insurance sector went through a full circle of phases from being

    unregulated to completely regulate and then currently being partly deregulated. It is

    governed by a number of acts.

    The Insurance Act of 1938 was the first legislation governing all forms of insurance to

    provide strict state control over insurance business. Until 1999, there were not any private

  • 8/6/2019 HDFC NUPUR

    12/79

    insurance companies in India. The government then introduced the Insurance Regulatory

    and Development Authority Act in 1999, thereby de-regulating the insurance sector and

    allowing private companies. Furthermore, foreign investment was also allowed and

    capped at 26% holding in the Indian insurance companies.

    b) Growth and present status of the industry

    The roots of the insurance sector can be tracked down in the year 1818 in the formation

    of the life insurance Corporation in Calcutta. During that time different premiums were

    charged for the Indian and English people lives. By the year of 1938, in India there were

    total 176 insurance companies. In the year of 1938, with the passing of Insurance Act,

    1938 there was the introduction of the first comprehensive legislation. It was passed with

    the aim of providing the strict state control over the insurance business. After the

    independence, insurance sector in India grew at a much higher pace. In the year 1956,

    Indian government combined together 245 Indian and foreign insurers and the provident

    societies under the name of nationalized Monopoly Corporation. It was the same period

    when the life insurance corporation (LIC) came into the existence by the passing of the

    Act of Parliament and through the contribution of capital around Rs. 5 crore. Till 1972,

    private sector has enjoyed somehow monopoly in the general insurance sector. There

    were around 107 private companies in the field. With the effect of the General Insurance

    Business (Nationalization) Act, 1972, the general insurance business got nationalized in

    the India. Due to the amalgamation of 107 private insurance companies, 4 new

    companies, as the subsidiaries of the General Insurance Company, came into effect-

    National Insurance Company, New India Assurance Company, Oriental Insurance

    Company and United India Insurance Company. India's insurance sector is zooming to

    show an unprecedented progressive growth of more than 200% by the period of 2009-09.

    The Associated Chambers of Commerce and Industry of India has clocked out the fact

    that during this period, private players in the industry will see a growth of about 140 per

  • 8/6/2019 HDFC NUPUR

    13/79

    cent, owing to the adoption of the aggressive marketing techniques in comparison of the

    growth rate of 35 per cent-40 per cent achieved by the state owned insurance companies.

    The chamber is expected to poise the business of insurance to reach at Rs.2000 billions in

    coming 2 years from the present level of Rs. 500 billion. With the result of adoption of

    the intense marketing strategies by the private players, the declination has been witnessed

    in respect of the share of the state owned insurance companies captured in the market.

    The market share fallout has been noticed in context of such companies like GIC, LIC,

    which have come down to nearly 70 per cent in the past 4-5 years from the 97 per cent.

    The experts have forecasted the more severe competition in the insurance sector likely to

    be occurred in the near future. Till recently, insurance sector was majority driven by the

    government sector players but now many private sector multinational players have comeinto the picture. Like HDFC, ICICI, Kotak, Mahindra and Birla Sunlife. Insurance sector

    has been characterized as the booming sector of the Indian arena, which has shown the

    growth rate of more than 15 per cent to 20 per cent. Insurance in India is put under the

    federal subject and is governed by the Insurance Act, 1938, the Life Insurance

    Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,

    Insurance Regulatory and Development Authority (IRDA) Act, 1999 and by various

    other acts.

    C) Future of the industry

    The insurance sector has opened up for private insurance companies with the enactment

    of IRDA Act, 1999. A large number of companies are competing under both life and

    general Insurance. The FDI cap/equity in this sector is 26% and the proposals have to be

    cleared by Insurance Regulatory and Development Authority (IRDA) established to

    protect the interest of holder of Insurance policy and act as a regulator and facilitator in

    the industry. Some of the major players in this sector are LIC, Max New York Life

    Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance, Birla

  • 8/6/2019 HDFC NUPUR

    14/79

    Sun Life Insurance, etc. Various types of policies and instruments are coming up in the

    market to attract more customers. Most of the population of India is not insured, hence

    there is a lot of scope in this sector and a number of companies are planning to enter the

    sector. Every futuristic individual would want himself to get insured.

    The concentration of insurance markets in many developed countries of the world has

    made the Indian insurance market more magnetic in terms of international insurance

    players. Home insurance sector is likely to achieve a 100% growth since home insurance

    are made compulsory for housing loan approvals by the financial institutions. In the

    coming three years Health insurance sector is all set to become the second largest

    business after motor insurance. During the period of 2008-09 to 2010-11 the non life

    insurance premium is likely to have a growth of 25%.

  • 8/6/2019 HDFC NUPUR

    15/79

    PROFILE OF

    THE ORGANIZATION

    2.1 ORIGIN OF THE ORGANIZATION

    Helping Indians experience the joy of home ownership.

  • 8/6/2019 HDFC NUPUR

    16/79

    HDFC was founded by Hasmukhbhai Parekh. HDFC Standard Life Insurance Co. Ltd. is

    a joint venture between HDFC Ltd., India's largest housing finance institution and

    Standard Life Assurance Company, Europe's largest mutual life company. It was the first

    life insurance company to be granted a certificate of registration by the IRDA on the 23rd

    of October 2000. Established on 14th August 2000, HDFC Standard Life Insurance Co.

    has become the leading private insurance companies, offering a range of individual and

    group insurance solutions, in India. HDFC was promoted with an initial share capital of

    Rs. 100 million. Being a joint venture of top financial services groups, HDFC Standard

    Life has adequate financial expertise to manage long-term investments safely and

    resourcefully.

    Discussions commenced - January 1995

    Joint venture agreement s igned - October 1995

    Joint venture agreement r enewed - October 1998

    Life Insurance project team es tablished - January 2000(Mumbai)

    Company off icially incorporated - 14th August 2000

  • 8/6/2019 HDFC NUPUR

    17/79

    Firs t pr ivate sector Life Insurance company to be granted a

    certificate of registration - 23 October 2000

    Shareholding - HDFC 81.4 %

    Standard Life 18.6 %

    The partnership

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

    to enter the Life Insurance market , in January 1995. I t was clear from the

    outset that both companies shared similar values and beliefs and a strong

    relat ionship quickly formed. In October 1995 the companies signed a 3-

    year joint venture agreement

    F ur ther more S tandar d L if e pur chas ed a 5% s take i n HDF C, f ur ther

    strengthening the relations.

    Incorporation

    The company was incorporated on 14th August 2000 under the name of

    HDFC Standard Life Insurance Company Limited.

    Thei r ambit ion f rom as far back as October 1995 was to be the f i rs t

    private company to re-enter the life insurance market in India. On the 23rd

    of October 2000, this ambi t ion was real ized when HDFC Standard Life

    was the only life company to be granted a certificate of registration.

  • 8/6/2019 HDFC NUPUR

    18/79

    HDFC are the main shareholders in HDFC Standard Life, wi th 81.4%,

    wh ile St an da rd L if e o wns 1 8. 6% . G iv en S ta nd ar d L if e' s e xi st in g

    investment in the HDFC Group, this is the maximum investment al lowed

    under current regulations.

    HDFC and Standard Life have a long and close relat ionship bui l t upon

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

    the success of the parent companies and be the yards t ick by which al l

    other insurance companies in India are measured

    2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION

  • 8/6/2019 HDFC NUPUR

    19/79

    HDFC 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.

    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.

    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.

    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.

  • 8/6/2019 HDFC NUPUR

    20/79

    Their ambition from the beginning was to be the first private company to re-enter the life

    insurance market in India. On the 23rd of October 2000, this ambition was realised when

    HDFC Standard Life was the first life company to be granted a certificate of registration.

    HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard

    Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is

    the maximum investment allowed under current regulations.

    HDFC and Standard Life have a long and close relationship built upon shared values and

    trust. The ambition of HDFC Standard Life is to mirror the success of the parent

    companies and be the yardstick by which all other insurance companies in India are

    measured.

    HDFC Standard Life Insurance Company Limited is one of India's leading private life

    insurance companies offering a range of individual and group insurance solutions. It is a

    joint venture between Housing Development Finance Corporation Limited (HDFC Ltd),

    India's leading housing finance institution and Standard Life plc, the leading providers of

    financial services in the United Kingdom.

    HDFC Ltd. as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

    HDFC Standard Life's Product portfolio comprises solutions, which meet various

    customer needs such as Protection, Pension, Savings, and Investment. Customers have

    the added advantage of customizing the Plans, by adding optional benefits called riders,

    at a nominal price. The company currently has 21 retail and 6 group products in its

    portfolio.

    HDFC Standard Life maintains very high professional standards during product offerings

    by providing sound financial advice, efficient post-sale service, and immaculate financial

  • 8/6/2019 HDFC NUPUR

    21/79

    security. Ongoing training for conventional products, and specialized training, for unit-

    linked products, for its financial consultants, has also helped its customers choose the

    product, best suited for their needs.

    HDFC Standard Life operates across more than 726 cities and towns of the country

    supported by its strong network of more than 1, 45,000 Financial Consultants. HDFC

    Standard Life also has more than 383 corporate agents and other sales intermediaries

    including banks for distribution of insurance products.

    HDFC Standard Life Insurance offers a range of individual and group solutions, which

    can be easily personalized to specific needs. Its group solutions have been planned to

    offer complete flexibility, together with a low charging structure. As of 31 December,

    2008, the Company's new business premium income stood at Rs. 1,839.70 Crores; it has

    covered over 812,811 lives so far. Given below is a comprehensive list of policies and

    products on offer by HDFC Standard Life Insurance.

    2.3 PRESENT STATUS OF THE ORGANIZATION

  • 8/6/2019 HDFC NUPUR

    22/79

    HDFC Standard Life, one of Indias leading private life insurance companies, offers a

    range of individual and group insurance solutions. It is a joint venture between Housing

    Development Finance Corporation Limited (HDFC), Indias leading housing finance

    institution and Standard Life plc, the leading provider of financial services in the United

    Kingdom.

    HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of

    equity in the joint venture, while the rest is held by others.

    HDFC Standard Lifes product portfolio comprises solutions, which meet various

    customer needs such as Protection, Pension, Savings, Investment and Health. Customers

    have the added advantage of customizing the plans, by adding optional benefits called

    riders, at a nominal price. The company currently has 32 retail and 4 group products in its

    portfolio, along with five optional rider benefits catering to the savings, investment,

    protection and retirement needs of customers.

    HDFC Standard Life continues to have one of the widest reaches among new insurance

    companies with 568 branches servicing customer needs in over 700 cities and towns. The

    company has a strong presence in its existing markets with a base of 2,00,000 Financial

    Consultants.

    Business Objectives

  • 8/6/2019 HDFC NUPUR

    23/79

    The primary objective of HDFC is to enhance residential housing stock in the country

    through the provision of housing finance in a systematic and professional manner, and to

    promote home ownership. Another objective is to increase the flow of resources to the

    housing sector by integrating the housing finance sector with the overall domestic

    financial markets.

    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

    The products of the company fall broadly under the following categories:

    Unit Linked Insurance Plans (ULIP)

    Traditional Insurance Plans

    Annuity Plans

    Group Insurance Plans

    The area of work in the project was mainly for the first three. The study started with

    ULIPs. After having a thorough understanding of the companys ULIP products, the

    study extended to the ULIP plans offered by other companies in the Life Insurance

    market. Some of the terminologies used to prepare the Comparison chart are as follows.

    ULIP(Unit Linked Policy)

    In a unit linked policy, the company receives premium from the policyholder and invests

    it in appropriate funds as chosen by the policy holder. This new mechanism is unlike the

  • 8/6/2019 HDFC NUPUR

    24/79

    traditional policies where the policyholder had no control over his investments. Similar to

    a share floated by a company, units are quantified form of investment. A unit is worth an

    amount of money invested in the funds, and its price fluctuates as the market fluctuates.

    When the market is on a high, units are costlier and when it is on a low, the units are

    cheaper. To put it as a simple mathematical equation:

    Net Assets invested in various funds

    Unit Price = Total number of outstanding units

    Premiums

    Carrying on a research on the insurance industries

    They are the contributions made by the policy holder at regular intervals of time viz.

    Annually, Half yearly, Quarterly or monthly.

    Sum Assured

    It is that amount which is guaranteed to the family/nominee in case of death of the

    policyholder

    Life Benefits

    It is that amount (non-guaranteed), which the policy holder gets on survival of the policy

    term, or when he wishes to terminate his policy (provided his policy is alive for the

    minimum period as stated by the company and he pays the premium for the minimum

    interval set)

    Risk Cover

    A very important concept in the insurance industry. This means that the policyholder is

    guaranteed an amount to his family in case of his death.

    Bonus

    The company announces a guaranteed bonus rate at the end of each fiscal year. This

    amount is added to the Sum Assured and given to the due person (nominee in case of

    death)

    Funds

  • 8/6/2019 HDFC NUPUR

    25/79

    The different kind of investments prevailing in the market can be made use of by

    investing in the different kinds of funds a ULIP offers. The basic funds offered by the

    insurance companies are:

    Equity fund

    Here the money is invested in the Indian stock market

    Debt fund

    Here the money is invested in Government bonds and other long-term

    bonds

    Cash fund

    Here the money is invested in pure money market, or treasury bills

    Balanced fund

    The company decided a ratio of the above three funds and invests

    accordingly

    Other funds offered are a mixture of the above parent funds. All the funds can be

    offered only after the approval of IRDA as per current regulations.

    Features used on the line of comparison

    Main features of ULIP.

    IRR for different funds and returns

    Growth trend for NAV

    Main Features of ULIP

    Currently there are 10 companies in the market, which offer Unit Linked products. All

    these companies offer various limits(upper and lower) for the sum assured,depending on their underwriting constraints. Some of the important features

    which was used by me for the comparison is as follows:

    Min and max sum assured offered

    Allocation charges

  • 8/6/2019 HDFC NUPUR

    26/79

    All kinds of charges levied

    Policy terms

    Pension policies / Annuity Schemes

    After the brief stint with ULIPs, my study now extended to the pension schemes offered

    by various companies. The study was limited only to the main features of the companies

    annuity schemes and preparation of the comparative chart for the pension schemes. The

    features were selected by me based on the current customer needs in the market and also

    the ones given in the brochures in the company websites. These features were such that

    there could be a comparison based on them. The comparisons were made in such a way

    that at one glance one could make out the benefits and deficiencies of the product. The

    presentation was not for the disposal of the customer and was for the use of the officials

    concerned. After the comparative chart, an IRR illustration for major annuity schemes of

    some companies was prepared. In addition to this, a return statement of the annuity itself

    at the prevailing market annuity rates was also prepared.

    More about HDFC SLIC

    The road to success is a tough and challenging journey in the dark where only obstacles

    light the path. However, success on a terrain like this is not without a solution.

    As we found out nearly three decades ago, in 1977, the solution for success is customer

    satisfaction. All you need is the courage to innovate, the skill to understand your clientele

    and the desire to give them your best.

    Today, nearly three million satisfied customers whose dream we helped realise, stand

    testimony to our success.

  • 8/6/2019 HDFC NUPUR

    27/79

    Our objective, from the beginning, has been to enhance residential housing stock and

    promote home ownership.

    Now, our offerings range from hassle-free home loans and deposit products, to property

    related services and a training facility.

    We also offer specialized financial services to our customer base through partnerships

    with some of the best financial institutions worldwide.

    Organization & Management

    HDFC is a professionally managed organisation with a board of directors consisting of

    eminent persons who represent various fields including finance, taxation, construction

    and urban policy & development. The board primarily focuses on strategy formulation,

    policy and control, designed to deliver increasing value to shareholders

    Board of Directors

    Details of the Board of Directors in terms of their directorships/memberships in

    committees of other public companies (excluding HDFC) are as under:

  • 8/6/2019 HDFC NUPUR

    28/79

    S. No. Name of Director Category

    1. Mr. Deepak S. Parekh Executive Chairman

    2. Mr.Keshub Mahindra Independent

    3. Mr. Shirish B. Patel Independent

    4. Mr. B. S. Mehta Independent

    5. MR. D. M. Sukthankar Independent

    6. Mr. D. N. Ghosh Independent

    7. Dr. S. A. Dave Independent

    8. Mr. S. Venkitearamanan Independent

    9. Dr. Ram S. Tarneja Independent10. Mr. N. M. Munjee Independent

    11. Dr. Bimal Jalan M.P ( Rajya Sabha )

    12. Mr. D. N. Satwalekar Non-executive

    13. Mr. Samshed S. Irani Special Director

    14. Ms. Renu Sud Karnad Joint Manager Director

    15. Mr. K. M. Mistry Vice-Chairman &

    Managing Director

    HDFC has a staff strength of 1445 (as on 31st March, 2008), which includes

    professionals from the fields of finance, law, accountancy, engineering and marketing.

    KEY PERSONS OF HDFC SLIC

    DEEPAK PAREKH(CHAIRMAN)

    DEEPAK SATAWALEKAR(CEO AND MD HDLC SLIC

  • 8/6/2019 HDFC NUPUR

    29/79

    SUBSIDIARY & ASSOCIATE COMPANIES

    HDFC Bank

    HDFC Mutual Fund

    HDFC Standard Life

    Intelenet Global Services Ltd.

    HDFC Chubb General Insurance Company Ltd.

    HDFC Reality

    Other Companies Co-Promoted by HDFC

    HDFC Trustee Company Ltd.

    HDFC Developers Ltd.

    HDFC Venture Capital Ltd.

    HDFC Ventures Trustee Company Ltd.

  • 8/6/2019 HDFC NUPUR

    30/79

    4 Functional Departments of the Organization.

    CEO

    HOD HOD HOD HOD

    (HR) (FINANCE) (OPERATIONS) (SALES)

    IN HOD (HR)-FIVE SUB DIVIDED DEPARTMENTS ARE IN BALIC

    (A) Associate Vice President (Business HR)

    (B) AVP Payrolls

    (C) Performance Management System

    (D) Learning and development

    (E) HR audit

    IN ASSOCIATE VICE PRESIDENT (BUSS HR) UNDER

    ZONAL MANAGER (Delhi NCR)

    IN ZONAL MANAGER CAN BE SUB DIVIDED INTO

    STATE HR

    SENIOR HR

    EXECUTIVE HR

    Competition Information

    HDFC Standard Life Insurance Company Ltd.

  • 8/6/2019 HDFC NUPUR

    31/79

    Max New York Life Insurance Co. Ltd.

    ICICI Prudential Life Insurance Co. Ltd.

    Om Kotak Mahindra Life Insurance Co. Ltd.

    Birla Sun Life Insurance Co. Ltd.

    Tata Aig Life Insurance Co. Ltd.

    SBI Life Insurance Co. Ltd.

    ING Vysya Life Insurance Co. Pvt. Ltd.

    Allianz Bajaj Life Insurance Co. Ltd.

    MetLife India Insurance Co. Pvt. Ltd.

    AMP SANMAR Assurance Co. Ltd.

    Aviva Life Insurance Company Ltd.

    EXECUTIVE SUMMARY:

    As in current scenario when there are so many players in life insurance sector, each is

    having tough competition with other. Each company is opting best possible strategy

    to spread its wings and attracting customer towards it by providing uninterrupted

    services.

    HDFC Standard Life Insurance is also giving better services to its customers through

    the channel of financial consultant. My project was to recruit financial consultants.

    First of all I was explained about the importance of a financial consultant in the

    company, their functions and then, how and where to find them.

    My study included the follow-up of procedures used for the recruitment of an

    insurance advisor who can sell the products of the company. For this I performed

    market research by using various kinds of activities like meeting persons individually

    in the market, convincing people by tele-calling and through canopy activity to join

    HDFC as a financial consultant. I had to introduce them with the benefits of

  • 8/6/2019 HDFC NUPUR

    32/79

    becoming a financial consultant and if they agree for it then doing their further

    documentation.

    I conducted my research in Delhi and the areas close to it to know the public

    response and conducting analysis part. I got questionnaires filled with various

    customers to know their opinion and awareness about insurance sector.

    This study gave me immense opportunity to enhance my inter-personal skills and to

    have practical exposure of dealing with the customer directly. It was a delighting

    experience to engage myself in this summer internship because it taught me the ways

    of approaching and convincing the customer and finally recruiting them for theorganisation in which I worked.

    Finally, interesting conclusions were drawn from the collected data.

    2.6 PRODUCT AND SERVICES PROFILE OF THE ORGANIZATION

    COMPETITORS

    The various products by HDFC Standard Life include:

    INDIVIDUAL PRODUCTS:

    Protection Plans

    o Term Assurance Plan

    o Loan Cover Term

    o Assurance Plan

    Investment Plans:

    o Single Premium Whole Life Plan

    Pension Plans:

  • 8/6/2019 HDFC NUPUR

    33/79

    Personal Pension Plan Unit Linked Pension Plan

    Unit Linked Pension Plus

    Savings Plans:

    o Endowment Assurance Plan

    o Unit Linked Endowment

    o Unit Linked Endowment Plus

    o Money Back Plan

    o Children's Plan

    o Unit Linked Youngstar

    o Unit Linked Youngstar Plus

    GROUP PRODUCTS

    o Group Term Insurance

    o Group Variable Term Insurance

    o Group Unit Linked Plan

    OTHER PRODUCTS

    Rural Products

    Social Development Insurance Plan

    Tax Benefit Schemes

    2.7 MARKET PROFILE OF THE ORGANIZATION

    Swot Analysis of HDFC Standard life insurance (HDFC)

    Strengths

    Localized branches.

    Strong brand name

    Big budget & Willingness to invest in market.

    Highly educated & well-experienced top management.

    Huge resources as compared to those of rivals.

    HDFC maintains high quality of their products.

    Glamorous, attractive & effective campaigning.

  • 8/6/2019 HDFC NUPUR

    34/79

    Wide brand variety to face the competitors variety to face the competitors & to

    serve the masses.

    High demand of the product

    Weaknesses

    More individuality in staff than conformity with the companys goal.

    Lack of advertising material in some areas of region.

    Focusing on bulk orders rather than small ones.

    Opportunities

    Increase market share by improving services.

    Target consumers increase in remarkable percentage every year.

    Threats

    Loosing market share due to inefficient workforce.

    Decline in the market reputation due to ineffective & delaying.

    Heavy investment.

    Relevance of Swot analysis.

    The Swot analysis makes us aware of the strengths which will serve as pillar to

    take strategic decision.

    The weakness tells us about the problems confronted by the company and

    accordingly the future step to be taken to over come them.

    Swot analysis projects an idea about the investment area which will yield more

    profit as well as the risk concerned.

  • 8/6/2019 HDFC NUPUR

    35/79

    JOINT VENTURE

    MAJOR INSURANCE PLAYERS IN INDIAN MARKET

    FY 2005-06

    0100

    200

    300

    400

    500

    600

    700

    800

    1

    NAME OF COMPANY

    Rs.(crores)

    MNYL

    ICICI

    HDFC

    BIRLA

    TATA AIG

    OM KOTAK

    BAJAJ ALLINZE

    SBI

    ING VYAS

    MET LIFE

    AVIVA

    AMP SANMAR

  • 8/6/2019 HDFC NUPUR

    36/79

    Though ICICI has lost 4% market share but still it is the market leader with 37%market

    share.

    MNYL was the biggest loser in that financial year. Its market has decreased from

    13% to 7%.

    Biggest gainer for this year was SBI. It had captured 8%of private market.

    This is mainly because of poor service, very indifferent behavior of their agents,

    taking more time in resolving the people problem, delay in payment etc.

    MARKET SHARE IN 2005-06

    7%

    37%

    13%

    14%

    5%

    4%

    7% 8%

    2%

    1%

    1%

    1%

    MNYL

    ICICI

    HDFC

    BIRLA

    TATA AIG

    OM KOTAK

    BAJAJ ALLINZE

    SBI

    ING VYAS

    MET LIFE

    AVIVA

    AMP SANMAR

  • 8/6/2019 HDFC NUPUR

    37/79

    In this year also ICICI lost its market share but still it is number one in private

    companies.

    MNYL has performed again badly and lost its market share by 2%.

    MARKET SHARE IN 2006-07

    5%

    32%

    9%19%7%

    5%

    7%

    8%

    3%

    1%

    3%

    1%

    MNYLICICI

    HDFC

    BIRLA

    TATA AIG

    OM KOTAK

    BAJAJ ALLINZE

    SBI

    ING VYAS

    MET LIFE

    AVIVA

    AMP SANMAR

  • 8/6/2019 HDFC NUPUR

    38/79

    DISCUSSION

    ON

    TRAINING

  • 8/6/2019 HDFC NUPUR

    39/79

    3.1 WORKPROFILE

    I am working as an financial consultant in HDFC STANDARD LIFE INSURANCE.

    HDFC STD.LIFE INSURANCE looks out for in a candidate.

    We look out for a candidate who values Integrity

    Has a zeal for Excellence

    Is focused on Results

    Is Self driven and Enthusiastic

    Is a good Learner and Team Player

    Is dedicated to Customer Satisfaction

    HDFC SLIC recruitment process are as follows:

    This is a good business opportunity offered by HDFC Standard Life to become a business

    partner and earn a good amount of money.

    Business description

    Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a excel in

    your endeavour. A great career move in every way Zero investment, there is no start-up

    capital. You can work full-time or part-time, depending on your convenience Sunrise

    industry Support every step of the way At HDFC Standard Life, training is an inherent

    element of our support system - at no extra cost - for our new Financial Consultants.

  • 8/6/2019 HDFC NUPUR

    40/79

    EXCELLENT OPPORTUNITY

    Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding

    career

    Flexible work timings You can work whenever you like. You can work full-time or

    part-time, depending on your convenience. However, the time you invest will determine

    your success

    Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or

    Working Professionals.

    Zero Investment - There is no start-up capital required. Be your own boss with flexible

    working environment, unlimited earning potential and opportunities to be part of a world

    class sales team.

    Attractive Remuneration - Company offers excellent commissions, award and rewards

    for the performers. You have unlimited earning potential. Commission structure is pretty

    handsome and is 15-40% and renewal commission of 5% second year onwards till the

    policy is in force.

    Certificate by IRDA- You will get world class training free of cost and certification by

    Insurance Regulatory Development Authority.

  • 8/6/2019 HDFC NUPUR

    41/79

    TRAINING- Perfects your knowledge about the insurance industry as well as our

    products

    IRDA Training- Prepares you for your career as a Financial Consultant and enables you

    to pass the IRDA examination easily

    Disha Training- Hones your selling skills, enables you to understand customer needs

    and provide need-based insurance solutions

    Advanced Training- Upgrades your capability and knowledge through sophisticated

    training programs customised for the changing world of financial products and markets

    Desired Profile:

    Age: 18 Yrs to 65 Yrs

    Education: Intermediate or more

    Experience: Not Mandatory

    Type of Job: Full Time or Part Time

    Documents Required:

    8 photograph,

    Age proof (passport, Birthcertificate, College Leaving Certificate, Driving License),

    Address proof,

    Education proof,

    Copy of PAN Card,

    Duely Signed Cancelled Cheque of self,

  • 8/6/2019 HDFC NUPUR

    42/79

    A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825 in

    case of online training towards HDFC SLIC LTD payable at Mumbai.

    Recruitment process of FCs

    Fill up of Agency form

    IRDA Training (50 hrs)

    IRDA Exam

    Fail

    Pass

    Exit

    Product Training

    Traditional Pr.

    ULIP Product

  • 8/6/2019 HDFC NUPUR

    43/79

    Internal

    Assessment

    Pass

    Fail

    Certification

    Exit

    Job Description for Financial consultants

    Pre sales role

    Identifying prospective clients.

    Meeting prospective clients.

    Understanding the need of the client.

    Presenting solutions to client.

    Closing sales.

    Post sales role

    Taking 1-2 references from the client

    Providing timely updates to the client for maintaining

    Lifelong relationship.

    Benefits to FCs

  • 8/6/2019 HDFC NUPUR

    44/79

    Financial Benefits:

    Commission on issuance of every policy.

    Commission directly credited to bank account of FCs within 15 days. These commission

    varies from 7.5-40% according to plan.

    BASIC COMMISSION

    First year Commission payable on regular premium conventional policies issued on or

    after 21st march 2007

    Name of the plan 1st year commission

    Endowment Assurance plan 40%

    Money Back plan 40%

    Childrens plan 40%

    Term Assurance plan 25%

    Lone cover Term Assurance

    plan

    25%

    Personal Pension Plan 7.5%

    RENEWAL COMMISSION:

    Renewal commission would be paid from the 2nd year onwards on regular premium

    policies. Renewal commission is not payable on single premium plans.

    Endowment Assurance plan 5%

    Money Back Plan 5%

    Childrens plan 5%

    Lone cover Term Assurance Plan 5%

    Term Assurance plan 5%

  • 8/6/2019 HDFC NUPUR

    45/79

    Personal Pension Plan 2%

    BONUS COMMISSION

    Bonus commission would be payable on the first year premium received and adjusted on

    the regular premium policies under the following plans,

    1.Endowment Assurance Plan

    2.Money Back Plan

    3.Childrens Plan

    4.Term Assurance Plan

    5.Lone Cover Term Assurance Plan

    Bonus commission is not payable on the single premium plans and on the policies issued

    under the Personal Pension Plan and all Unit Linked Plans. Bonus commission rate would

    depend on financial consultant crossing the minimum RNEP(Received Net Effective

    Premium) within one year.

    Period RNEP Bonus commission % of the 1st year Premiumreceived

    In one

    year

    1,00,000 5%

    1,50,000 10%

    2,25,000 15%

    REWARDS & RECOGNITION

    Within 30 days of Licensing Consultant can become

    STAR Converted premium 2 Lacs

  • 8/6/2019 HDFC NUPUR

    46/79

    Silver Medal-Worth Rs 5200(approx)

    RISING STAR Converted premium of 5 Lacs

    Gold Medal-Worth Rs 13,000(approx)

    MILLIONAIRE STAR Converted premium of 10 Lacs

    Gold Medal -Worth Rs 25,000(approx)

    GLOBAL STAR Converted premium of 24 Lacs

    Gold Medal-Worth Rs 60,000(approx)

    Extra Payouts for STAR Performers

    Star Performers Club

    Status Bronze Silver Gold Centurion

    Benefits 1%max

    Rs.5999

    2.5%,max

    Rs.37499

    5%,no upper

    limit

    Graded-

    4.5%to8.5%

    Additional

    status bonus

    0.50% 0.50% 0.50%

    MONTHLY & QUARTERLY CONTESTS

    There are various Sales linked monthly & quarterly contests occur in which FCs has

    opportunity to gain something. Like

    Gift Vouchers

    Home Appliances

    Two-Wheelers

    Gold/Diamonds Jewelry

    Foreign Trips

    Mobile Phones

    Laptops

    Cars etc.

  • 8/6/2019 HDFC NUPUR

    47/79

    OTHER BENEFITS

    On field support- Joint fieldwork with respective SDM/BDM.

    Training support Various training modules to enhance your sales skills,

    interpersonal skills etc.

    Marketing support Consumer Contact Programs.

    Availability of office infrastructure for telecalling, quotations, benefits illustration

    etc.

    Consultant corner to access illustration, sales done, and contest updates etc.

    Personal email id.

    The company agent would be a professional sales person and would be given the

    designation of a consultant by the company .The consultant should would act as

    financial advisior to the customer so that he or she would analyse the customer financial

    requirement and help them plan their goals.

    Recommended appropriate solutions so that customer is able to meet his/her financial

    objectives in the most optimum manner.He or she shall provides support to customers on

    an ongoing basis.

    Then the company also support the consultant by providing the requirement training and

    information.

    ROLE AND RESPONSIBILITY

    Recruitment of financial counsultant.

    Calling perspective.

    Line up of candidate for Interview.

    Screening for interview.

    Formulating a proper match between job description& job specification.

  • 8/6/2019 HDFC NUPUR

    48/79

    Completing documents for candidate to joining.

    Tools and technique used for the selection of financial counsultant

    Interview Method (Cold calling): This method involves presentation of oral verbal

    stimuli and reply in terms of oral - verbal responses. This method can be used through

    personal interviews and, if possible, through telephone interviews. Interview method is

    used to collect and gather information about candidate

    1. Personal interview: The bank can use this method to collect data. At the time of

    interview, we can ask certain questions and interviewer (SME customer) responds tothese questions. In this way data collected is recorded on data collection reports and this

    data is then presented to relation executive to find prospects.

    Major benefits of this method are:

    a) More information and that too in greater depth can be obtained.

    b) Personal information can as well be obtained easily.

    c) The language of the interview can be adapted to the ability or education level of the

    person interviewed and as such misinterpretations concerning questions can be avoided.

    2. Telephone interviews: This method of data collection consists in contacting

    respondents on telephone itself. On contacting a person on telephone he is asked about

    his banking requirements and is told about the product. If person shows interest then

    appointment is taken.

    Observation Method: Under the observation method the information is sought by way

    of sales executive own direct observation without asking from the respondent. This

    method is used very rarely by executive of ICICI bank. For instance to know customers

    banker, it can be observed from surroundings. For example cheque book lying on table of

    that client can give clue about his banker. Swipe machine used to swipe debit

  • 8/6/2019 HDFC NUPUR

    49/79

    3.2 KEY LEARNINGS

    Information regarding Insurance sector.

    Changing recruitment for insurance sector

    Industry with special focus on the profile of Financial Consultant

    Importance of documentation and Induction formalities.

    Live Experience

    It was really a great experience to work with HDFC STANDARD life insurance and to

    know about their work culture. In my training period I was made aware of the HR

    Department of the company which gave me a broader perspective about my research

    work. . I did shorlisiting, screening, calling,interview co-ordination,joining

    formalities,induction etc

    CHAPTER 4 STUDY OF SELECTED RESEARCH PROBLEM

    4.1 STATEMENT OF RESEARCH PROBLEM

    For every problem there is research. As the researches are based on some objectives,

    objective of the research is to the study the recruitment and selection process of HDFC

    STANDARD LIFE INSURANCE.

    STATEMENT OF RESEARCH OBJECTIVE

    The basis objective of the project was to find out the highly network individual those can

    act as an financial consultant.

    To study the corporate profile with some light on their future plans.

  • 8/6/2019 HDFC NUPUR

    50/79

    To study organizational structure of relationship among all the members of the

    organization.

    To identify the shortcomings in recruitment and selection process.

    To conduct an analysis on recruitment and selection process of HDFC

    STANDARD LIFE

    To outline the suggestions to make the recruitment and selection process more

    effective by framing some guidelines for the same.

    4.2 RESEARCH DESIGN AND METHODOLOGY

    To judge effective process for recruitment of financial counsultat

    To analyse effective of job description

    Use of questionarie

    And interview method

    4.3 COLLECTION OF DATA

    TYPES OF DATA

    There are two types of data: -

    Primary data

  • 8/6/2019 HDFC NUPUR

    51/79

    Secondary data.

    PRIMARY DATA: - The data, which is collected through observations, experiments and

    surveys, is called as primary data. It can be collected in 3 ways: - Observation Method,

    Experimental Method and Survey Method.

    SECONDARY DATA: - Secondary research method is the method by which data is

    collected by journals, newspapers, magazines reviews. The company gets the review

    about the product by the product critics. In this project company booklet and Internet

    were used as the means for getting information on the recruitment and selection process

    and getting sufficient information about the company. The main data used i.e. about therecruitment and selection followed by the HR department,are all taken from the

    companys booklet.

    key levers for achieving business objectives

    1. Number of licensed financial consultant

    2. Financial consultant activation

    3. Financial consultant productivity

    number of policies (fc productivity)

    average premium per policies

    Recruiting financial consultants

  • 8/6/2019 HDFC NUPUR

    52/79

    "HDFC's finest investment is in its Human Resources. It draws its personnel from

    many disciplines. They are the building blocks on which the company's performance &

    productivity is based". Mr. H T Parekh Founder-Chairman, HDFC Ltd.

    HDFC Standard Life is one of the leading life insurance companies having a track record

    of declaring bonuses every year since inception. We attribute this success to our people,

    who are our most important asset. We believe they are a key facet of the company and it

    is their contribution that has enabled us to achieve our current status. Since they deserve

    the best, our efforts have been to provide them with the best environment, best culture

    and best development opportunities possible.

    Be HDFCs certified financial consultant.

    Heres is the unique opportunity to put your career path on the fast track. Join HDFC

    SLIC as a financial consultant and help you analyze yours customers financial needs,

    provide customized financial solutions to each one and conduct reviews on a regular basis

    to keep your customer on track.

    Along with being a great career move you get associated with HDFC SLIC. Indias most

    respected private life insurance company. We at HDFC SLIC also offer you unmatched

    support with various training programmes to help you excel in your endeavor.

    A great career move in every way

    PRIMARY OBJECTIVE:

    The objective of this project is about increasing market share by creating awareness about

    insurance . HDFC Std. Life is out to provide insurance to the huge prospective market

    through its channel of agent advisors. In addition to this, various promotional campaigns

    are held for attracting customers. So this project basically aims towards creating a niche

    for HDFC in the insurance sector.

  • 8/6/2019 HDFC NUPUR

    53/79

    To create the Brand equity of HDFC Std Life Insurance Co.

    Exact feedback from the market about the products of HDFC Standard Life by

    directly interacting with the consumers.

    By achieving the above specified goals the following Value Addition will be derived:

    Create awareness among the consumers about the benefit of life insurance which will

    lead to increase in the sales.

    Create a deeper penetration through our regular visit to each and every

    prospective client of Max New York Life.

    LIMITATION

    Lack of awarness of the people.

    Time limitation for doing study.

    Bindlly faith on LIC.

    No testing of secondary data for its

    .

    Need of the Study

    Every life insurance company wants to provide better and quick service to its customers.

    For this it needs some channels in order to enable customers to interact easily with the

    company.

  • 8/6/2019 HDFC NUPUR

    54/79

    Financial Consultants bridge the gap between company and the customer by imparting

    them the right kind of information.

    So, the persons those who could bear this responsibility are constantly searched by the

    insurance company. The main purpose of this study was to recruit quality financial

    consultants.

    Secondly, the motive behind this study of mine was to have practical knowledge

    of recruitment by adopting various kinds of strategies and to learn new things.

    5.1 ANALYSIS OF DATA

    The insurance sector in India have come a full circle from being an open competitive

    market to nationalization and back to a liberalized market again. Tracing the

    developments in the Indian insurance sector reveals the 360-degree turn witnessed over a

    period of almost two centuries.

    Nationalization of life insurance industry in India in year 1956 led to the emergence of

    LIC and with which monopoly of LIC started. The insurance industrys contribution to

    Indian economy was not up to expectations the situation remained same as late as year

    1999.

    In year 1999 the insurance industry saw the light of liberalization. The market was

    opened for private and foreign players much to the delight of customers. Customers are

    enjoying cost effective, suitable products and better services.

  • 8/6/2019 HDFC NUPUR

    55/79

    To ensure the utilization of new capital in Indian market only, government has regulated

    the investment methodology adopted by insurance companies.

    Today, the players in the market are facing various challenges. They have to spread

    awareness about insurance and to win the confidence of the Indian customers as well.

    Life Insurance, A Rs. 27,500 Crores industry today, expected to grow to an astronomical

    Rs. 115,000 crores by 2010. An industry poised for exciting change, as new companies

    will be allowed to offer insurance products to the Indian consumer.

    Insurance industry, as on 1.4.2006, comprised mainly two players: the state insurers-

    Life Insurers

    Life Insurance Corporation of India (LIC) General Insurance

    General Insurance Corporation of India (GIC)

    GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries

    have been de-linked from the parent company and made as independent insurance

    companies) 1) The Oriental Insurance Co. Ltd.

    2) The New India Assurance Co. Ltd.

    3) National Insurance Co. Ltd.

    4) United India Insurance Co. Ltd.

    Insurance Industry after 2000-2001 had many new entrants, namely:

  • 8/6/2019 HDFC NUPUR

    56/79

  • 8/6/2019 HDFC NUPUR

    57/79

    Q.2 Please ranks the following medium of recruitment: (1 to most appropriate, 2 to less

    appropriate & so on)

    Medium Rank 1

    Newspaper 8

    Internet 10

    Campus Recruitment 16Telephonic Interview 3

    Employee Referrals 1

    Previous Applications 0Consultancies 12

    Most popular medium

    16%

    20%

    32%6%

    2%0%

    24%

    Newspaper

    Internet

    Campus Rec

    Telephonic Intvw

    Emp Referrals

    Previous Appl

    Consultancies

    Note : According to the chart Campus Recruitment is regarded as the most appropriatemedium of recruitment.

  • 8/6/2019 HDFC NUPUR

    58/79

    Q.3 Do you think Internet (Job-websites like naukri.com) helps the candidates to get their

    desired kind of job?

    Strongly

    Disagree

    Response

    1 2

    2 3

    3 11

    4 19

    5 15

    Strongly Agree

    0%4% 6%

    22%

    38%

    30%0%

    Strongly Disagree

    1

    2

    3

    4

    5

    Strongly Agree

    Note: It can be concluded from the above chart that 68% people think that internet

    (job websites) help the candidates to get their desired kind of job.

  • 8/6/2019 HDFC NUPUR

    59/79

    Q.4 Acc. to you, are consultancies playing a major role in recruiting the candidates these

    days?

    Strongly Disagree Response

    1 5

    2 4

    3 13

    4 15

    5 13

    Strongly Agree

    0% 10%8%

    26%

    30%

    26%0%

    Strongly Disagree

    1

    2

    3

    4

    5

    Strongly A gree

    Note: From the chart it can be concluded that 56% people think that consultancies

    Play a major role in recruiting the candidates these days.

    Q.5 Acc. to you, how many rounds should be there in a selection procedure?

  • 8/6/2019 HDFC NUPUR

    60/79

    No of rounds Response

    One 1

    Two 20Three 25

    Four 4

    Five 0

    No of rounds

    2%

    40%

    50%

    8%

    0% One

    Two

    Three

    Four

    Five

    Note: According to 50% of the people there should be maximum three rounds in a

    selection procedure. And according to 40% of the people surveyed, only two roundsshould be there in a selection procedure.

    Q.6. Do you think Group Discussion (GD) is the appropriate medium to judge a

    candidates potential?

  • 8/6/2019 HDFC NUPUR

    61/79

    Strongly Disagree Response

    1 0

    2 4

    3 18

    4 16

    5 12

    Strongly Agree

    Group Discussion

    0%0% 8%

    36%

    32%

    24% 0%

    Strongly Disagree

    1

    2

    3

    4

    5

    Strongly Agree

    Note: According to 56% people Group Discussion (GD) is the appropriate medium tojudge a candidates potential.

    Q.7 Should Aptitude test be a compulsory step during the selection of a candidate?

  • 8/6/2019 HDFC NUPUR

    62/79

    Compulsory Step Response

    Yes 31

    No 19

    Aptitude test

    62%

    38% Yes

    No

    Note: According to 62% people surveyed, aptitude test should be made a compulsory step

    in the selection process.

    Q.8 In your opinion, which type of employment-interview is appropriate tool for judging

    a candidates potential during selection procedure?

  • 8/6/2019 HDFC NUPUR

    63/79

    Type of Interview Response

    One-to-one 29

    Sequential 13

    Panel 8

    Type of Interview

    29

    138

    0

    10

    20

    30

    40

    One- to-one Sequential Panel

    Type of Interview

    58%26%

    16%

    One-to-one

    Sequential

    Panel

    Note: According to 58% people one-to-one interview is appropriate tool for judging acandidates potential during selection procedure. According to 26% people, sequential

    interview and according to 16% people, panel interview is appropriate tool for judging a

    candidates potential during selection procedure.

    Q.9 Please rank the following type of interviews: (1 to most appropriate, 2 to less

    appropriate & so on)

  • 8/6/2019 HDFC NUPUR

    64/79

    Type of Interview Rank 1Structured 11

    Unstructured 10Mixed 15

    Behavioural 10

    Stressful 4

    Type of Interview

    22%

    20%

    30%

    20%

    8% Structured

    Unstructured

    Mixed

    Behavioural

    Stressful

    Note: According to the chart it can be concluded that 30% people were in favour of

    mixed interview, 22% were in favour of structured interview and 20% were in favour of

    both behavioural and Stressful interview.

    Q.10 Acc. to you, is interview the tool to judge a candidates communication skills only?

    Response No of People

  • 8/6/2019 HDFC NUPUR

    65/79

    Completely 10Not at all 11

    Up to Some Extent 29

    10 11

    29

    05

    101520253035

    Completely

    Notatall

    UptoSome

    Extent

    No of People

    Interview

    20%

    22%58%

    Completely

    Not at all

    Upto Some

    Extent

    Note: According to 58% people interview up to some extent is the tool to judge acandidates communication skills only. And according to 22% people it is not the tool to

    judge communication skills only and 20% people, interview completely judges a

    candidates communication skills.

    Q.11Acc. to you, which of the following techniques be used in a selection system? (

    the appropriate one and X the one not desired)

  • 8/6/2019 HDFC NUPUR

    66/79

    Technique Response

    Psychological Tests 14

    Role-play 5

    In-Basket 13GD 41

    Projective tests 13Personality tests 29

    Knowledge tests 29

    Interaction analysis 7

    Interviews 45

    Technique

    7%

    3%

    7%

    20%

    7%15%

    15%

    4%

    22%

    Psychological Tests

    Role-play

    In-Basket

    GD

    Projective tests

    Personality tests

    Knowledge tests

    Interaction analysis

    Interviews

    Note: It can be concluded from the above pie-chart that Interview is the most populartechnique according to most of the people. After that, GD, projective and personality tests

    are other popular tools.

    Q.12 Acc. to you, which of the following is the most valid and reliable tool of selection

    procedure?

    Reliable tool Response

    GD 9

    Interview 21

  • 8/6/2019 HDFC NUPUR

    67/79

    Aptitude test 12Project Presentation 1

    Personality tests 7

    Reliable Tool

    18%

    42%

    24%

    2%

    14%

    GD

    Interview

    Aptitude test

    Project Presentation

    Personality tests

    Note: According to the people surveyed, 42% considers interview to be the most reliable

    tool, 24% considers aptitude test to be most reliable and 18% considers GD as the reliable

    tool in selection process. While only 14% considers personality tests to be the mostreliable tool during selection procedure.

    Q.13 In your opinion, should Stress interview be made a compulsory tool of selection

    procedure?

    Stress Interview Response

    Yes 12

  • 8/6/2019 HDFC NUPUR

    68/79

    No 38

    Stress Interview

    24%

    76%

    Yes

    No

    Note: According to the people surveyed, 76% people said that stress interview should not

    be a compulsory tool of selection procedure and only 24% said that it should be includedduring selection process.

    Q.14 Do you think corruption, favouritism and influence are mostly found during

    selection process?

    Strongly Disagree Response

    1 19

  • 8/6/2019 HDFC NUPUR

    69/79

    2 17

    3 10

    4 4

    5 0

    Strongly Agree

    0%38%

    34%

    20%8% 0%0%

    Strongly

    Disagree1

    2

    3

    4

    5

    Strongly Agree

    Note: According to the people surveyed, around 72% thinks that corruption, favoritism

    and influence are not found during selection process these days.

    Q.15 What would you like to suggest to improve the following processes:-

    a) Recruitment

    b) Selection

    For this open-ended question, following answers were provided:

    For recruitment:

  • 8/6/2019 HDFC NUPUR

    70/79

  • 8/6/2019 HDFC NUPUR

    71/79

    Employees are in the favor of giving to the trainees who underwent training in

    this organization and gave good result.

    Most of the employees external source of recruitment .

    Currently, market is dominated by state owned LIC (Life Insurance Corporation of

    India). It has 83 per cent of market share. The remaining 17 per cent go to private

    players. The private players are giving a very tough fight to the government owned LIC

    and are very aggressive in marketing of their products. One thing which needs to be

    highlighted is that most of the private players are concentrating on the urban population

    and tapping High Net worth Individuals and corporate and thus a saturation point is not

    very far. The industry have started to move to B-class and C-class towns the in search

    of new customers i n the same way Insurance industry has to move to rural India to tap a

    vast untapped pool of customers.

    It can be truly said that the insurance sector is one of the success stories of the ongoing

    financial reforms. The industry has made great strides forward in the last four years with

    customer-centric developments being the mainstay of the improvements. A product thatwas earlier viewed only as a tax-saving option is now considered a viable financial

    instrument to meet different needs. Higher standards of service, convenient access

    through advisors, agents and banks, choice and flexibility in products, greater

    transparency, and use of information technology are some of the key differentiating

    factors since the opening up of the industry in 2005. If we analyze 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

    SUMMARY

  • 8/6/2019 HDFC NUPUR

    72/79

    AND

    CONCLUSIONS

    6.1 Summary of Learning Experience

  • 8/6/2019 HDFC NUPUR

    73/79

    Learnt

    How to do prospecting.

    How to work professionally

    How to communicate properly with the customers.

    Almost all the work procedure in human resource department.

    How to deal complicated situations with patience and perfection.

    And last but not least how to manage a team.

    After working with this company, I came to know about

    all the internal as well as external procedure of Human Resourse Department and

    came to know to learn different Insurance plans, Facilities and many more things

    that company provides to their employees and customers. I Have also learnt about

    the working of all the departments of an insurance company and also came to

    know about the various insurance companies in india.

    6.2 CONCLUSION AND RECOMMDATIONS

    The study of the INSURANCE INDUSTRY IN INDIA and preparing the

    presentation was a real challenge. The guidance of my mentor and senior officials of

    the college were of very much help to me in my endeavor. The coordination among

    the various departments is excellent which makes innovations and motivating

    thinking possible. Apart from a small gap of communication among the IT

    department and the training department, which if bridged accordingly, the training

  • 8/6/2019 HDFC NUPUR

    74/79

    system is flawless. The department also relies in too much of free lance trainers,

    which requires that the trainers have to be

    trained from scratch, but the department has prepared some very good presentations

    which is very easy to understand and train. The training department is the crux of the

    college.

    As such privatization through liberalization is an opportunity to be exploited, not

    necessarily a threat. For continuous growth, Indian insurance companies will need the

    flexibilities to ascertain and respond to the customer needs. Insurance service will no

    longer be just bought, it will have to be sold in a biased market, new channels of

    marketing, personal insurances like over the counter covers will have to be devised.

  • 8/6/2019 HDFC NUPUR

    75/79

    BIBLOGRAPHY

    References From books

    1. Beri, G. C. (2005) Marketing Research 3rd edition, Tata McGraw Hill

    Publication, New Delhi, India.

    2. Kothari, C. R. (2007) Research methodology 3rd edition, Wishwa Prakashan,

    New Age International (P) Ltd. Daryaganj, New Delhi, India.

    3. Kotler Philip, (2007) Marketing Management, Prentice Hall of India

    Pvt. Ltd. New Delhi, India

    4. Schiffman. Leon G., (2005) Consumer Behavior, Prentice Hall of India

    Pvt. Ltd. New Delhi, India

    5. Gitman, Lawrence J. (2007) Principles of Managerial Finance 11th edition,

    Dorling Kindersley ( India ) Pvt. Ltd., Licensees of Pearson Education in South

    Asia.

    6. Zikmund, William G. (2007) Business Research 3 rd edition, South-

    Western, Thomas Learning Inc. USA

  • 8/6/2019 HDFC NUPUR

    76/79

    QUESTIONNAIRE

    HDFC Standard Life Insurance

    Q.1 In which category do you belong?

    Student Job-Seeker Employee

    Q.2 Please rank the following medium of recruitment: (1 to most appropriate, 2 to less

    appropriate & so on)

    1. Newspaper / Advertisements _____2. Internet /Job Portals _____3. Campus-recruitment _____

    4. Telephonic Interviews _____

    5. Employee Referrals _____

    6. Previous applicants _____7. Consultancies _____

    Q.3 Do you think Internet (Job-websites like naukri.com) helps the candidates to gettheir desired kind of job?

    Strongly Agree __ __ __ __ __ Strongly Disagree

    Q.4 Acc. to you, are consultancies playing a major role in recruiting the candidates these

    days?

    Strongly Agree __ __ __ __ __ Strongly Disagree

    Q.5 Acc. to you, how many rounds should be there in a selection procedure? (Tick one)

    o One

    o Two

    o Threeo Four

    o Five

    Q.6. Do you think Group Discussion (GD) is the appropriate medium to judge acandidates potential?

  • 8/6/2019 HDFC NUPUR

    77/79

    Strongly Agree __ __ __ __ __ Strongly Disagree

    Q.7 Should Aptitude test be a compulsory step during the selection of a candidate?

    Yes No

    Q.8 In your opinion, which type of employment-interview is appropriate tool for judginga candidates potential during selection procedure? (Tick one)

    o One-to-one o Sequential o Panel

    Q.9 Please rank the following type of interviews: (1 to most appropriate, 2 to less

    appropriate & so on)

    o

    Structured _____ o Unstructured _____

    o Mixed _____

    o Behavioural _____

    o Stressful _____

    Q.10 Acc. to you, is interview the tool to judge a candidates communication skills only?

    o Completely o Not at all oUp to some extent

    Q.11 Acc. to you, which of the following techniques be used in a selection system? ( the appropriate one and X the one not desired)

    1. Standardised Psychological tests2. Role-Play

    3. In-basket

    4. Group Discussions5. Projective tests

    6. Personality tests

    7. Knowledge tests

    8. Interaction analysis technique

    9. Interviews

    Q.12 Acc. to you, which of the following is the most valid and reliable tool of selection

    procedure? (Tick one)

    o GD

    o Interview

  • 8/6/2019 HDFC NUPUR

    78/79

    o Aptitude test

    o Project Presentation

    o Personality Tests

    Q.13 In your opinion, should Stress interview be made a compulsory tool of selection

    procedure?

    Yes No

    Q.14 Do you think corruption, favouritism and influence are mostly found during

    selection process?

    Strongly Agree __ __ __ __ __ Strongly Disagree

    Q.15 What would you like to suggest to improve the following processes:-

    a) Recruitment

    b) Selection

    Demographics

    1) Name- -------------------------------------------------------------------------------

    2) Gender- a) Male b) Female

    3) Age a) 18 25 Years b) 25 35 Years

    c) 35 45 Years d) 45 Years and above

    4) Income a) 5000 10000 b) 10000 20000

  • 8/6/2019 HDFC NUPUR

    79/79

    c) 20000 30000 d) 30000- and above

    5) Email ----------------------------------------------------------------------------------

    6.ANNEXURE:

    WEBSITES:www.licindia.com

    www.indiainfoline.com

    www.iciciprulife.com

    www.irdaindia.com

    www.indianinsurance.com

    http://www.licindia.com/http://www.indiainfoline.com/http://www.iciciprulife.com/http://www.irdaindia.com/http://www.indianinsurance.com/http://www.licindia.com/http://www.indiainfoline.com/http://www.iciciprulife.com/http://www.irdaindia.com/http://www.indianinsurance.com/