A project report on satisfaction level of the financial consultants at hdfc

The Satisfaction Level of Financial Consultants of HDFC
STANDARD LIFE INSURANCE COMPANY LIMITED

A
PROJECT REPORT ON
The Satisfaction Level of Financial Consultants of
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

UNDERTAKEN AT

Babasabpatilfreepptmba.com Page 1


INDEX
SL. CONTENTS PAGE NO
NO.

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION 4

3 COMPANY PROFILE 18

4 INTRODUCTION TO TOPIC 44

5 RESEARCH DESIGN 52

6 DATA ANALYSIS 55

7 FINDINGS 73

8 RECOMMENDATIONS 75

9 CONCLUSION 77

10 BIBILOGRAPHY 79

11 ANNEXURE 81



EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Today’s scenario of insurance industry is much concentrating over analyzing the
satisfaction level of the financial consultants, which is very
essential for the growth of the company.

Title of the study: “Satisfaction level of the Financial Consultants”.

At

Objectives of Study:

 To study the role of financial consultants in HDFC standard life insurance.
 To find out the key motivational factors of the financial consultants.
 To measure the satisfaction level of the financial consultants towards the
support of the superiors in achieving their target.
 To study about the training and guidance provided to the financial
consultants.
 To study the satisfaction level of the financial consultants towards company.

Scope of the study: The scope of study is limited to Belgaum city.

Research Methodology:
Data Source:
The data is collected through:

Primary: Through survey method by preparing questionnaire



Secondary: Pamphlets, News Papers, journals, company register.

Sample size: 100 Samples

Selection of the sampling method: Convenience sampling.

Data Analysis: Data gathered from the questionnaire are analyzed using coding
sheet tabulation and percentages. Data collected is depicted through pie charts.

Findings:

• 96% are satisfied with the training & guidance provided by the company.
• Financial Consultants get support in selling the products with promotional
activities, this act as motivational factor.

Recommendations:

• Company should continue to provide attractive incentives to financial
consultants even after one year as they give more importance for incentives.
• Company should give extra benefit to its efficient Agents which will motivate
them to get more business and achieve their larger Sales.

LIMITATIONS:

 Project is limited to Financial Consultants of HDFC Standard Life

Belgaum city.

 The scope of the study is restricted to the time constraint.



INTRODUCTION



INTRODUCTION TO INSURANCE

The business of insurance is related to the protection of the economic values of the
assets. Every asset has a value the asset would have been created through the efforts
of the owner. The asset is valuable to the owner because he expects to get some
benefit from it. Insurance is a mechanism that helps to reduce the effect of such
adverse situation.

Purpose and Need of Insurance :

Assets are insured; because they are likely to be destroyed through accidental
occurrences such possible occurrences are called perils. Fire floods breakdowns,
lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset,
the asset is exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or
may not happen. Insurance is done against the contingency that it may happen. There
has to be an uncertainty about the risk. Insurance is relevant only if there are
uncertainties. In the case of a human being, death is certain, but the time of death is
uncertain. In the case of a person who is terminally ill, the time of death is not
uncertain, though not exactly known.

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



asset and those who depend on that asset. It only compensates the losses- and that
too, not fully. Only economic consequences can be insured. If the loss is not
financial, insurance may not be possible.

The Business of Insurance

The business of insurance is to:

1) Bring together persons with common insurance interests (sharing the same risks),

2) Collect the share or contribution (called premium) from all of them, and

3) Pay out compensations (called claims) to those who suffer.

In India, insurance business is classified primarily as life and non-life or general. Life
insurance includes all risks related to the lives of human beings and general insurance
covers the rest. General insurance has three classifications is; Fire, Marine and
Miscellaneous. Personal accident and sickness insurance, which are related to human
beings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many other
countries.

The business of insurance is nothing but one of sharing. It spreads losses of an
individual over the group of individuals who are exposed to similar risks. People who
suffer loss get relief because their loss is made good. People who do not suffer loss
are relieved because they were spared the loss.

Insurance business is divided into four classes:

1) Life Insurance Business.



2) Fire Insurance Business.

3) Marine Insurance Business.

4) Miscellaneous Insurance Business.

Meaning of Life Insurance Business:
Life insurance, originally conceived to protect a man's family when his death left
them without income, has developed into a variety of policy plans.

Meaning of Fire Insurance Business:
Fire insurance usually includes damage from lightning; other insurance against the
elements includes hail, tornado, flood, and drought.

Meaning of Marine Insurance Business:
Marine insurance protects shipping companies against the loss of a ship or its cargo,
as well as many other items, and so-called inland marine insurance covers a vast
miscellany of items, including tourist baggage, express and parcel-post packages,
truck cargoes, goods in transit, and even bridges and tunnels.

Meaning of Miscellaneous Insurance Business:
Special casualty forms are issued to cover the hazards of sudden explosions from
equipment such as steam boilers, compressors, electric motors, flywheels, air tanks,
furnaces, and engines. Boiler and machinery insurance has several distinctive
features. A substantial portion of the premium collected is used for inspection
services rather than loss protection.

The business of insurance started with marine business. Traders, who used to gather
in the Lloyd’s Coffee house in London, agreed to share the losses to their goods
while being carried by ships. The losses used to occur because of pirates who robbed



on the high seas or because of bad weather spoiling the goods or sinking the ship.
The first insurance policy was issued in 1583 in England. In India, insurance began
in 1870.

The business of insurance is the protection of economic values of assets. Every asset
is expected to last for a certain period of time during which it will perform.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.
Insurance is relevant only if there are uncertainties.

Insurance is a mechanism that helps to reduce the effect of such adverse situation.
Insurance is relevant only if there are uncertainties.Life Insurers transact life
insurance business; the rest is transacted by General Insurers. No composites are
permitted as per law.

The business of Insurance essentially means defraying risks attached to any activity
over time (including life) and sharing the risks between various entities, both persons
and organizations. Insurance companies are important players in financial markets as
they collect and invest large amounts of premium.

Insurance products are multi purpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings

3. Channelise savings into sectors needing huge long-term investments.

INSURANCE COMPANIES receives, without much default, a steady cash
stream of premium or contributions to pension plans. Various actuary studies and
models enable them to predict, relatively accurately, their expected cash outflows.
Liabilities of ICs being long-term or contingent in nature, liquidity is excellent and
their investments are also long-term in nature. Since they offer more than the return
on savings in the shape of life-cover to the investors, the rate of return guaranteed in


their insurance policies is relatively low. Consequently, the need to seek high rates of
returns on their investments is also low. The risk-return trade off is heavily tilted in
favor of risk. As a combined result of all this, investments of insurance companies
have been largely in bonds floated by GOI, PSUs.,state governments, local bodies,
corporate bodies and mortgages of long term nature. The last place where Insurance
companies are expected to be over-active is bourses.

Lately ICs have ventured into pension schemes and mutual funds also. However, life
insurance constitutes the major share of insurance business. Life Insurance depends
upon the laws of mortality and there lies the difference between life and general
insurance businesses. Life has to extinguish sooner or later and the claim in respect
of life is certain. In case of general insurance, however, there may never be a claim
and the amount can be ascertained in advance. Hence, Life Insurance includes,
besides covering the risk of early happening of an event, an element of savings also
for the beneficiaries.

Pension business also derives from life insurance in as much as the pension outgo
again depends upon the laws of mortality .The forays made by insurance companies
in this area are, therefore ,natural corollary of their business.

Role of Insurance in Economic Development:

For economic development, investments are necessary. Investments are made out of
savings. A life insurance company is a major instrument for the mobilization of



savings of people, particularly from the middle and lower income groups. These
savings are channeled into investments foe economic growth.

All good life insurance companies have huge funds, accumulated through the
payments of small amount of premium of individuals. These funds are invested in
ways that contribute substantially for the economic development of the countries in
which they do business.

All good life insurance companies have huge funds, accumulated through the
payments of small amount of premium of individuals. These funds are invested in
ways that contribute substantially for the economic development of the countries in
which they do business.

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

A life insurance company will have large funds. These amounts are collected by way
of premiums. Every premium represents a risk that is covered by that premium. In
effect, therefore, these vast amounts represent pooling of risks. The funds are
collected and held in trust for the benefit of the policyholders. The management of
life insurance companies are required to keep this aspect in mind and make all its
decisions in ways that benefit the community. This applies also to its investments.
That is why successful insurance companies would not be found investing in
speculative ventures.

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



INSURANCE INDUSTRY OVERVIEW

Insurance Sector in India

India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors. The insurance sector in India has come to a position of very high
potential and competitiveness in the market.

The insurance industry in India can be broadly classified in two parts. They are:

• Life Insurance

• Non-life (General) Insurance

Brief History of Insurance



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

Some of the important milestones in the life insurance business in India are:

• 1818:-The British Introduce to India. With the establishment of the Oriental
Life Insurance Company in Calcutta.

• 1850:- Non life insurance debuts, with Triton Insurance company.

• 1870:- Bombay mutual Life Assurance Society is the first India –owned life
insurer.

• 1907:-Indian Mercantile Insurance is the first Indian non life insurer.

• 1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

• 1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.

• 1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.

• 1956: 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from
the Government of India.

• 1972: The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from 1st
January 1973.



• 1993:-Malhotra Committee, headed by former BBI governor R.N.Malhotra,
set up to draw up a blue print for insurance sector reforms.

• 1994:-Malhotra Committee recommends re-entry for private players,
autonomy to PSU insurers.

• 1997:-Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.

• 2000:- IRDA starts giving licenses to private insurers, HDFC Standard Life
and ICICI Prudential first private insurers to sell a policy.

• 2002:- Banks were allowed to sell insurance plans , as TPAs enter the scene,
insurers start selling non-life claims in the cashless mode

.

Insurance Sector Reforms:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI
Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector. The reforms
were aimed at "creating a more efficient and competitive financial system suitable for
the requirements of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the overall financial
system where it was necessary to address the need for similar reforms". In 1994, the
committee submitted the report and some of the key recommendations included:



1) Structure:

• Government stake in the insurance Companies to be brought down to 50%.

• Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations.

• All the insurance companies should be given greater freedom to operate.

2) Competition:

• Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry.

• No Company should deal in both Life and General Insurance through a
single entity.

• Foreign companies may be allowed to enter the industry in collaboration with
the domestic companies.

• Postal Life Insurance should be allowed to operate in the rural market.

• Only One State Level Life Insurance Company should be allowed to operate
in each state.

3) Regulatory Body:

• The Insurance Act should be changed.

• An Insurance Regulatory body should be set up.

• Controller of Insurance (Currently a part from the Finance Ministry) should
be made independent.

4) Investments:



• Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%

• GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)

5) Customer Service:

LIC should pay interest on delays in payments beyond 30 days. Computerization
of operations and updating of technology to be carried out in the insurance
industry The committee emphasized that in order to improve the customer
services and increase the coverage of the insurance industry should be opened up
to competition. But at the same time, the committee felt the need to exercise
caution as any failure on the part of new players could ruin the public confidence
in the industry. Hence, it was decided to allow competition in a limited way by
stipulating the minimum capital requirement of Rs.100 crores. The committee felt
the need to provide greater autonomy to insurance companies in order to improve
their performance and enable them to act as independent companies with
economic motives. For this purpose, it had proposed setting up an independent
regulatory body.

Bank and Insurance:

Banc assurance symbolizes the convergence of banking and insurance. The term has
its origins in France and involves distribution of insurance products through a bank's
branch network. While banc assurance has developed into a tremendous success
story in Europe, it is a relatively new concept in Australia and Asia.



Most new insurers have entered into memoranda of understanding with banks to use
their branches as outlets for marketing standard products. State Bank of India, Vysya
Bank and J&K Bank already has joint ventures in life insurance. Vijaya Bank and
Punjab National Bank are in the midst of finalizing life and non-life ventures.

The Insurance Act allows only those companies registered under the Companies Act
to become corporate agents. This gives the new generation and old private sector
banks a head start over Public sector banks, which are technically not eligible to sell
risk products.

IRDA, IBA & RBI are in discussions to iron out the various issues, as public sector
banks will play a key role in the distribution of products.

March 2003 Review:

The Insurance Regulatory and Development Authority has said that a bank cannot
enter into a referral arrangement with more than one life insurance company or more
than one general insurance company. Insurance companies can enter into referral
arrangements displaying the insurer’s publicity material in the branch premises.

According to the IRDA, the participation of the bank’s customers in any insurance
scheme shall be purely on a voluntary basis and this fact should appear prominently
in all publicity materials distributed by the bank and the insurer.

According to latest IRDA circular, the total payout under the referral fee has been
capped as a percentage of the circular, the total payout under the referral fee has been
capped as a percentage of the total premium, which varies from 5.5% to 55%
depending on the extent of the business the company generates through the referral
arrangement. IRDA has barred insurers from paying any referral fee for any



promotional campaign. Besides, insurers cannot pay any commission or other
remuneration along with the referral fees.

March 2004 Review:

IRDA has announced new guidelines pertaining to payment of brokerage to
insurance brokers carrying on direct insurance business in the country. As per the
new guidelines on general insurance contracts, insurance brokers cannot charge
brokerage or commission on the business of Government and public sector
undertakings (PSU’s). Business from these classes of customers will be placed
directly with the insurance companies, wherein they will continue to enjoy a five per
cent discount on the basic tariff applicable.

The notification will come into effect from April 1, 2003, and applies to all general
insurance contracts. These guidelines will not apply to reinsurance broking contracts.
Brokerage/commission includes any royalty, license fees, administration charges or
any compensation, which any agreement between the parties provide for
intermediation. IRDA has so far issued broking licenses to 32 entities in the country.

IRDA has laid out stringent norms including cap on exposure in MF investment as
well as investment in stocks and shares for both public and private insurance
companies detailing the guidelines for investments in mutual funds (MFs). According
to this circular, the investment in MFs at any point of time shall not exceed 50% of
investment falling under the ‘other than approved investments’ (OTAI) category for
both life and general insurance companies. IRDA has also stipulated that the MFs in
which the insurers invest should be registered with the SEBI. Besides, the insurer
should always ensure that the investments in MF are diversified among the products
of different companies.

THE ISURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the insurance sector were initiated with the passage of the IRDA bill in
Parliament in December 1999. The insurance Regulatory And Development



Authority (IRDA) since its incorpation as a statutory body in April 2000 has
fastidiously tuck to its schedule of framing regulations and registering the private
sector insurance companies. The other decisions taken simultaneously to provide the
supporting systems to the insurance sector and in particular the life insurance
companies were the launch of the IRDA’s online service for issue and renewal of
licenses to agents.

The approval of institutions for imparting training to agents has ensured that the
insurance companies would have trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year. Since
being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations.

S.No Registration No Date of Registration Name of the Company
1 101 23.10.2000 HDFC Standard Life Insurance Co Ltd.
2 104 15.11.2000 Max New York Life Insurance Co Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Co Ltd.
4 107 10.01.2001 Om Kotak Mahindra Life Insurance Co Ltd.
5 109 31.01.2001 Birla Sun Life Insurance Co Ltd.
6 110 12.02.2001 TATA AIG Life Insurance Co Ltd.
7 111 30.03.2001 SBI Life Insurance Co Ltd.
8 114 02.08.2001 ING VYSYA Life Insurance Co Pvt. Ltd.
9 116 03.08.2001 Allianz Bajaj Life Insurance Co Pvt. Ltd.
10 117 06.08.2001 Met Life India Insurance Co Pvt. Ltd.

COMPANY PROFILE


HDFC STANDARD LIFE INSURANCE

Housing Development Financial Corporation Ltd

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged
as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs. 119 crores. The net worth of



the Corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates
through 75 locations throughout the country with its Corporate Headquarters in
Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service
associates in Kuwait, Oman and Qatar.

HDFC Standard Life Insurance Company Ltd:

HDFC Standard Life Insurance Company Ltd. is one of India’s private life insurance
company, which offers 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 The Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom.
Incorporated on 14th August 2000, it was the first life company to be granted a
certificate of registration by the IRDA on the 23rd of October 2000. HDFC Standard
Life is one of the first companies to be granted license by the IRDA to operate in life
insurance sector. It is a joint venture of HDFC Ltd and Standard Life Europe's largest
mutual life assurance company. HDFC is the majority stakeholder in the insurance
JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak
Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance is a new Indian life insurance company that operates
out of 52 locations. It offers clients a range of insurance plans to meet their savings,
investment and protection needs. In the financial year 2002-03, the company
registered a year-on-year growth of over 260%. It is also the first new life insurance
company to declare its third successive bonus for participating policy holders.



In order to survive in the insurance segment, HDFC had to introduce new
products. They were looking for a robust and integrated solution to support the new
product. HDFC was also facing numerous problems with their current systems in
terms of performance, reliability and scalability.

HDFC Standard Life Insurance sells a range of individual savings, pension
and group life assurance products and has branch offices in 39 locations throughout
India. It was recently rated as the "Best New Insurer - 2003" by Outlook Money
magazine. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life insurance
industry.

HDFC Standard Life Insurance is one of the leading private life insurance
companies. The company generated premium from new business of Rs. 486 Cr in
2004-05, registering a year-on-year growth of over 132%. The total premium income
(including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. The
company also achieved a major milestone during the financial year by crossing a
Sum Assured figure of Rs. 30,000 Cr. The company also declared its fifth bonus for
participating policyholders. HDFC operates through 75 locations throughout the
country with its Corporate Headquarters in Mumbai, India. HDFC also has an
international office in Dubai, U.A.E., with service associates in Kuwait, Oman and
Qatar.

Standard Life Group, UK

Standard Life is Europe's largest mutual life assurance company. Standard Life,
which has been in the life insurance business for the past 175 years, is a modern


company surviving quite a few changes since selling its first policy in 1825. The
company expanded in the 19th century from its original Edinburgh premises, opening
offices in other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management
and has the distinction of being accorded "AAA" rating consequently for the past six
years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to
be granted license by the IRDA to operate in life insurance sector. Each of the JV
player is highly rated and been conferred with many awards. HDFC is rated 'AAA'
by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's
and Standard and Poor’s. These reflect the efficiency with which HDFC and
Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr
respectively.

VISION & MISSION


We 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

Key Values:

• SECURITY: Providing long term financial security to our policy holders will be
our constant Endeavour. We will be doing this by offering life insurance and pension
products.

• TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will
aim to manage their investments very carefully and live up to this trust.

• INNOVATION: Recognizing the different needs of our customers, we will be
offering a range of innovative products to meet these needs. Our mission is to be the
best new life insurance company in India and these are the values that will guide us
in this.



Board Members

Mr. Deepak S Parikh Chairman of HDFC Limited.

Mr. Keki M Mistry Managing Director of HDFC Limited.

Mr. Alexander M Crombie Group Chief Executive of the Standard Life

Ms. Marcia D Campbell Group Operations Director

Mr. Keith N Skeoch Chief Executive in Standard Life

Mr. Ranjan Pant Global Management Consultant

Ms. Renu S. Karnad Executive director of HDFC Limited



Key strengths:

Financial Expertise:

As a joint venture of leading financial services groups, Standard Life has the
financial expertise required to manage your long-term investments safely and
efficiently.

Range of Solutions :

We have a range of individual and group solutions, which can be easily customized
to specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.

Track Record so far:

Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859
crores and new business premium income stood aRs.2,685crores.The company has
covered over 9,59,000 lives year ending March 31, 2008.We have covered over
11, 00,000 individuals out of which over 3, 40,000 lives have been covered through
our group business tie-ups.



Highlights of Financial Year 2007-08

• New Business Premium Income up by 63% to Rs. 2,685 crores.Total
Premium Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores
in FY2006-07

• Alternate Channels including banc assurance has recorded an impressive
growth of over 63% to contribute 41% to the Effective Premium Income
(EPI)

• Group business funds under management have increased to Rs. 959 crores,
registering a growth of 83% over FY2006-07

• The average premium has increased to Rs. 33,000

• Company products and services are now available in 726 cities and towns
across the country

• Strength of Financial Consultants has increased to 1,45,000

HDFC Standard Life tracks its New Business Premium on the basis of Effective
Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single
Premium policy and is an internationally accepted indicator of an insurance
company’s



Performance:

HDFC Standard Life Insurance is the First Private Sector Life Insurance Company to
be granted a license. It has increased its market share from 0.76% to 1.12% by
collecting a premium income of 209bn. in the year ending March 2003-04.It has
registered an premium growth rate of 61.88% over previous year.

Insurance sector has grown not only in size but in maturity as well, in the
sense that from very simple products, which were available earlier on to the present.
What has been done is that Insurance Industry placed the customer in centre &
developed products and services around the customer.

In the past what we had was a bundled product so you get 3 or 4 benefits out of
which it may be possible that you may need just 1 or 2 benefits but in the process you
end up paying for all the four. In fact we were among the first to divide the offering
into two -a core product and the benefits or the riders. And then it is up to the
customer to choose and customize his own scheme according to needs and desires
and pay for such scheme.

I think that is the single largest revolution that has come about. The other
revolution in the Insurance sector is in terms of distribution channels. Earlier we
were having only agents but now we have agents, Banc assurance, corporate brokers
and direct sales people. Retail agents and banc assurance are the 2 biggest insurance
distribution channels.



The insurance penetration levels have considerably increased from 1.6 % to about
2.75%. Now whether that growth is enough in three year period, we can always
counter that. In the last 3 years private insurance companies have grown at 200-300
% levels. But if you look at a longer time horizon say at 10 years the insurance
companies would grow at 13-14% rate which would make it one of the fastest
growing sector.

If we want an acronym of our products, we call it PIPS, which stands for
Protection, Investment, Pension, & Safety. These are the basic requirements of any
individual & thus our products satisfy each of these needs.

We have got conventional products, which are in the conventional structure
i.e. available with profits like Endowment, Money back then you have Unit Linked
plans. Which are for those investors who understand the capital markets, debt
markets & equity markets.

In terms of popularity, little fewer than 50% products are savings products whether it
is endowment, unit-linked or money back which are basically savings oriented.
About 20% are investments oriented for e.g. single premium income policies where
you pay in a shot and enjoy the protection & investments returns in future. About 20
% are in pensions. Pure protection is just about 5%. All these are in terms of
premium income.

USP is something that the customer will have to find because life insurance is a long-
term process and it is about stability, being conservative. We don't hear about
aggressive life insurance companies who survive for a longer period.

To be in business when we are talking of an insurance policy for say 30 years, your
perspective is different in comparison to when you are taking a short term loan say a
car loan for 3 years.

Therefore different companies have chosen different models. Some of them have
chosen to be in for the long run while some have chosen to be in for the short run.


For in the short run, you need to have a high valuation of company, for high
valuation you need to have high & rapid sales. Higher the sales higher are the
valuation & higher the valuation higher is the price that you can charge. Insurance
sector, you can’t differentiate on the basis of innovative products. The reason being,
if yours is an excellent product it will not take too much time to be copied by other
players. The thing which they can’t copy is your services and, I think, that would be
the differentiating factor in the insurance arena for eg if you look at the HDFC
model.

There are banks that are lending at lower rates but even then HDFC is able to grow at
30% thus if HDFC grows at 30%, it is on that balance sheet, while others might grow
100% but that would be on that small size. Thus it is important that people trust you.

It matters to do the right things even if they are not beneficial in the shorter run. Thus
we know the purpose of our existence in this sector. The main support, which we get
from our foreign partner, is in terms of actuary support. Actuaries are the people who
arrive at the premium rates. It is a monopoly market & there are not too many players
who get into this. There is a shortage of actuaries in India but yes now the people are
pursuing it as a career.

We get a lot of actuarial support from our foreign partner in terms of product
development, valuation processes & it is necessary at each step to know what the
implications are.

PRODUCTS:

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We
Cater to both, individuals as well as to companies looking to provide benefits to their
employees. This section gives you details of all our products.


o Individual Product
o Group Product
o Rural Product

Individual Products:

HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping
this in mind, we have a varied range of Products that you can choose from to suit all
your needs. These will help secure your future as well as the future of your family.

 Protection Plans
One can protect their family against the loss of your income or the burden of a loan
in the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price. Protection range includes our Term
Assurance Plan & Loan Cover Term Assurance Plan.

 Investment Plans
Single Premium Whole of Life plan is well suited to meet your long term investment
needs. We provide you with attractive long term returns through regular bonuses.

 Pension Plans

Pension Plans helps one secure their financial independence even after
retirement. Pension range includes Personal Pension Plan and Unit Linked Pension
Plan.

 Savings Plans



Savings Plans offers flexible options to build savings for ones future needs
such as buying a dream home or fulfilling your children’s immediate and future
needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment
Assurance Plan, Money Back Plan, Children’s Plan, Unit Linked Young star Plan.

 Term Assurance Plan :

If you have a family that you care for, you should consider what would happen in
case of your unfortunate death. The emotional void cannot be filled, but financial
insecurity can be avoided. By taking this affordable life insurance plan, you can
provide for the well-Being of your family in case of your unfortunate death. This
plan comes to you at a Minimal cost and is well-suited for the value-conscious
customer.

Under this 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. Since this non-
participating (without Profits) plan is a pure risk cover plan, no benefits are payable
on survival to the end of the term of the policy.

A protection plan to secure higher protection needed for your family at economical
rates Optional riders for enhanced protection unique joint life option to cover your
spouse under the same plan Single / regular premium payment options.

 PERSONAL PENSION PLAN

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



 HDFC PERSONAL PENSION PLAN:

HDFC understands ones need to build a secure future for them self. Hence, the
HDFC
Personal Pension Plan is an insurance policy that is designed to provide a post –
retirement income for life with the freedom to choose your retirement date.

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

The HDFC Personal Pension Plan is an insurance policy, which can benefit one in
the following ways:

• Provides a post retirement income in your golden years

• Gives you the flexibility to plan your retirement date

• Gives you tax benefits on your premiums

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

Easy steps to get insured are:

 Choose your retirement age



 Estimate the post – retirement income you require.

 Work out the premium payable with your Financial Consultant.

 UNITLINKEDPENSIONPLAN:

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

HDFC UNIT LINKED PENSION PLAN

HDFC understands ones need to build a secure future for themself.The HDFC Unit
Linked Pension Plan is an insurance policy that is designed to provide a retirement
income for life with the freedom to maximize your investment returns by providing a
choice of thoroughly researched and selected investments.

Stride into your golden years of retirement with dignity and pride. You can choose
your premium and the investment fund or funds. We will then invest your premium,
net of charges in your chosen funds in the proportion you specify.



At the end of the policy term, you will receive the accumulated value of your funds,
which will be used to provide your pension income. In the event of your unfortunate
demise during the policy term, your spouse will receive a cash lump sum to help him
or her manage their retirement years.

The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you
in the following ways:

• Provides a post retirement income for life

• Gives you the flexibility to plan your retirement date

• Gives you the freedom to invest premiums as per your preference

• Offers you potentially higher market linked returns

• Give you tax benefits on your premiums and on receiving the lump sum.


 Choose your retirement age
 Choose the premium you wish to invest, based on your retirement
need.
 Choose the investment fund or funds you desire

 Endowment Assurance Plan:



You have given your family the very best. And there is no reason why they should
not get the very best in the future too. As a judicious family man, your priority is to
secure the well-being of those who depend on you. Not just for today, but also in the
longterm.More importantly, you have to guard your loved ones against any
eventuality. How will they sustain their way of life, so lovingly built by you, in your
absence?

With our HDFC Endowment Assurance Plan, you can ensure that your family
remains financially independent, even if you are not around. You can ensure that they
live a life of respect and dignity. Always

The HDFCSLIC Endowment Assurance Plan gives:

• An ideal way to secure your long-term financial goals

• Valuable protection to your family by way of lump sum payment in case of
your unfortunate death within policy term

• Provides lump sum payment (basic Sum Assured plus any bonus additions)
on survival up to maturity date

• Very flexible benefit options and payment options

• In case of your unfortunate demise during the policy term, this participating
(‘With Profits’) insurance plan will pay your family the Sum Assured
(together with the attached bonuses) you had chosen.



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


• Choose the amount of targeted savings and policy term using our financial
planning tool.

• Choose from any one of the 4 additional benefit options as per your
requirement.

• Work out the premium payable and Sum Assured with our Financial
Consultant.

 CHILDREN'S PLAN:

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

The HDFC Children's Plan gives:



• Invaluable financial support to your child

• Helps you customize an ideal plan for your child

• Provides you multiple options for multiple benefit

The HDFC Children’s Plan is designed to secure your child’s future by giving your
child (the beneficiary) a guaranteed lump sum, on maturity or in case of your
unfortunate demise, early in the policy term. The premiums, paid by you, are
invested by the company to give you good long-term returns.

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

Easy steps to follow:

• Choose the amount of targeted savings and policy term using our Financial
Planning Tool.
• Choose any one of the 3 plan options as per your child's requirement.

Consultant

 UNIT LINKED YOUNG STAR PLAN:



As a parent, your priority is your children’s future and being able to meet their
dreams and aspirations. Today, providing a good education, establishing a
professional career or even a modest wedding is expensive. Costs are increasing fast.
Just imagine how much you will need when your children take these important steps
in life. Plan today to ensure a bright future for your children. Start building savings
today with the HDFC Unit Linked Young Star Plan. So that your child is able to lead
a life of respect and dignity with a secured financial future.

The HDFC Unit Linked Young Star Plan gives you:

• An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments.

• Valuable protection in case of the insured parent’s unfortunate demise

• Very flexible benefit combinations and payment options

• Flexible additional benefit options such as critical illness cover

• You can choose your premium and the investment fund or funds



We will then invest your premium, net of charges in your chosen funds in the
proportion you specify. At the end of the policy term, you will receive the
accumulated value of your funds In case of your unfortunate demise during the
policy term; HDFC Standard Life will continue the policy AND continue to pay
the original premiums you had chosen. Your family will receive the Sum Assured
you had chosen* plus the fund built up by your and HDFC Standard Life’s
contributions.

Use HDFC Standard Life’s excellent investment options to maximize your
savings
and maximize your child’s achievements. We will provide security for your child
and make those savings on your behalf, in your absence

Easy steps to follow:

• Choose the premium you wish to invest.

• Choose the amount of Protection (Sum Assured) you desire.

• Choose the additional benefit options you desire.

• Choose the investment fund or funds you desire.

Money Back Plan:

You have always believed in living life on your own terms. So why let the changing
realities of everyday life overwhelm you and make your aspirations take a back seat?
You can plan now to ensure that you have the necessary funds to meet your future
financial needs.



The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:
A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals
within the policy term (see the table given below) – an ideal way to secure your long-
term as well as short-term financial goals. A lump sum payment on survival up to
maturity date Valuable protection to your family by way of lump sum payment in
case of your unfortunate death within the policy term. This is over and above any
earlier payouts Making the right kind of investment will enable you to achieve your
objectives – be it your immediate expenses or else securing your future financial
needs. Our Money Back Plan gives you a wide range of terms and cash benefit
schedule to choose from. A summary of Key Benefits including the cash lump sum
payments, expressed as a percentage of Sum Assured is shown below.

Maturity Value:
On maturity you receive survival benefit due at that point of time along with
attaching
bonuses for the full Sum Assured calculated for the full term. You can ensure your
financial independence. And be able to live life on your own terms.

Steps to be followed:

• Choose the amount of targeted savings and policy term using our Financial
Planning Tool.

• Choose from any one of the 4 additional optional benefits as per your
requirement.

Consultant



Group Products:

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for
progressive Employers who wish to provide the best and most innovative employee
benefit solutions to their employees. We offer different products for different needs
of employers ranging from term insurance plans for pure protection to voluntary
plans such as superannuation and leave encashment.

HDFC offer the following group products to their esteemed corporate clients:

• Group Term Insurance with Riders

• Group Term Insurance with Profit-Share

• Group Unit-Linked Plan

For Gratuity :

• For Defined Benefit Superannuation

• For Defined Contribution Superannuation



GROUP TERM INSURANCE

Whatever the business - it’s the people who make it a success. Everybody requires
some type of life insurance, especially when others depend on them financially. The
Group Term Insurance plan meets precisely this need and serves as an ideal way for
companies to reinforce their bond with their employees. The sort of needs you, as an
employer might have can be: An employee benefit:
• A cover for housing loan or vehicle loan given by you to your employees.

• A cover for future service gratuity liability to be taken along with the HDFC
SL Group Unit Linked Plan.

The Group Term Insurance (GTI) is a cost-effective plan that addresses these
needs. In Addition you have the choice to opt for a GTI with an experience discount
feature, wherein a discount is given on future premiums in case of favorable claim
experience

The Group Term Insurance plan will have the following structure:

• One year renewable term insurance plan
• One master policy issued covering all members of the group
• Sum assured is payable on death (either due to natural causes or accidents)

Key features of the plan:
Our product has been designed to offer innovative features and a high degree of
Customization. These are

Convenient medical procedures:



The members do not need to undergo any medical examination up to the “Free Cover
Limit”. This limit is dependant upon the sum assured and the size of the group.

Awards and Accolades

March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the
leading Private insurance companies in India, has topped Mint’s Top Television
Advertisement Survey conducted, for February 2008. HDFC Standard Life’s Unit
Linked Savings Plan Advertisement was ranked 4th in terms of a combined score of
ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability,
enjoyment, believability, and Claim). The respondents were between 18 and 40
years. Mint’s exclusive report, ‘New voices in a makeover’ outlines the survey in
detail.

February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life,
received the QIMPRO Gold Standard Award 2007 in the business category at the
18th annual Qimpro Awards function. The award celebrates excellence in individual



performance and highlights the quality achievements of extraordinary individuals in
an era of global competition and expectations.

January, 2008
Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments

HDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious
Advertising & Marketing Moments' over the last 60 years in India,’ by 4Ps
Business and Marketing magazine. The magazine said that HDFC Standard Life is
one of the first private insurers to break the ice using the idea of self respect (Sar
Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This was then,
followed by others including ICCI Prudential, thus giving HDFC Standard Life the
credit of bringing up one such glorious advertising and marketing moment in the last
60 years.

December, 2007
Pension Plan Tops Mint’s Survey of Best TV Ads

HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth
on ad reach in a survey of new television advertisements in November, 2007,
conducted by Mint, the leading business newspaper of the Hindustan Times Group.
Our pension advertising was ranked first in terms of ad diagnostic scores



(likeability, credibility, enjoyment). The respondents were between 18 and 40 years.
We were ranked 8th in terms of a combined score of ad awareness and brand
recall.

September, 2007
Ranked Sixth Most Effective Advertisement

HDFC Standard Life was ranked 6th amongst ‘The 10 most effective ads’ in
September 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor.
We have moved up from 56 th position in August 2007. JuxtConsult’s Ad Box Office
is India’s biggest monthly monitor of most effective television ads amongst urban
consumers. The ranking was based on the total effectiveness of the ad in connecting
the Sar Utha Ke Jiyo ranked 10 th in the Top 10 Top-of-mind ad slogans in
September, 2007, according to the JuxtConsult’s Ad Box Office Monthly Monitor.
The ranking was based on how much our ad slogan recalled ‘top of mind’ in the daily
ad clutter.

June, 2007
Received PCQuest Best IT Implementation Award 2007



HDFC Standard Life received the PCQuest Best IT Implementation Award 2007
for Wonders, its path-breaking implementation of an enterprise-wide workflow
system. PCQuest, the leading IT publication from the CyberMedia Group identified
six most innovative IT implementation projects deployed successfully across India
for the award. The winners of the 4th PCQuest Best IT Implementation Awards were
chosen from 250 nominations across 22 industries and 23 projects ranging from
government, banking finance and insurance, manufacturing, petroleum, and IT/ITES
to poultry, travel and tourism, real estate, construction, power and utilities.

INTRODUCTION TO THE TOPIC



Meaning of Employee Satisfaction:

Employee Satisfaction refers to a person’s feeling on the job, which acts as a
motivation to work. It is not self satisfaction, happiness or self-contentment but
satisfaction on the job. The term refers to the total relationship between an individual
and the employer for which he is paid.

Definition of Employee Satisfaction



Employee Satisfaction is defined as “a pleasurable emotional state resulting
from the appraisal of one’s job as achieving or facilitating the achievement of one’s
job values”.

In contrast, employee dissatisfaction is defined as “the unpleasurable emotional state
resulting from the appraisal of one’s job as frustrating or blocking the attainment of
one’s job values or as entailing disvalues”.

Why do we need to study “Employee Satisfaction”?

"Employee satisfaction" helps a Company to maintain certain standards &
increase productivity by motivating the employees. This study helps to show how
much the employees are capable & their interests at the work place, what are the
things still needed to be satisfied for the employees. Although "Human Resources"
are the most important resources for any organization, to study employee satisfaction
helps to understand the working conditions & those factors that affect employees and
their working capabilities. It is seen that in the recent times most of the work are
carried out by machines/equipments but without any Manual moments nothing can
be done to its full extent. Hence the study on Employee Satisfaction has gained high
importance in today’s business world.

Why Is Employee Satisfaction So Important?

If articles were published in the 1940’s or 1950’s regarding employee satisfaction,
some senior managers might question its importance or, possibly, even its relevance
to the business community. Many in senior management feel that their employees are



satisfied because they have a job to go to and their payroll checks cleared every
week. Other experienced executives are heard of saying, “Of course, our staff is
satisfied. They show up and continue working for us for years.”

As most companies are now aware, the choices, information, communication, and
mindset of most employees are quite different in the new millennium. Employees are
more focused on their career development and work/life balance. If their current
employer cannot or will not provide the environment they desire, they will simply
surf the Internet, viewing job boards, dealing with respected professional placement
firms, or visit other career websites to seek new opportunities. The playing field,
once weighted in favor of the employer, is much more equal now.

Improving and maintaining employee satisfaction results in better staff retention,
since there are fewer reasons to look elsewhere. To improve one’s report card, were
it to be completed by the staff, should be a goal of the Company and their
Management. The cost of employee dissatisfaction and high turnover can, by itself,
severely damage a company’s bottom line.

Factors of Employee Satisfaction:

There are different factors on which employee satisfaction depends. Some of
the important factors are further discussed-



 Personal Factors:

They include an employee’s sex, education, age, marital status and their
personal characteristics, family background, socio-economic background, etc.

 Factors inherent in the Job:

These factors have recently been studied and found to be important in the
selection of employees. Instead of being guided by their co-workers and supervisors,
the skilled workers would rather like to be guided by their own inclination to choose
jobs in consideration of ‘what they have to do’.

These factors include:
• The work itself
• Conditions
• Influence of internal and external environment on the job which are
controlled
by the management.

 Factors controlled by the Management

They include the nature of supervision, job security, kind of work group,
wage rate, promotional opportunities, and transfer policy, duration of work and sense
of responsibilities.



All these factors greatly influence the workers to large extents. Their presence
in the organization motivates the workers and provides a sense of employee
satisfaction.

Benefits of Employee Satisfaction

1. Employee Satisfaction contributes to sound superior-subordinate relations.
2. Employee Satisfaction reduces employee grievances. Further satisfied
employees will follow the company rules and regulations as it will reduce
employee indiscipline.
3. Employee Satisfaction leads to employee commitment to industrial peace by
avoiding the occurrence of industrial disputes.
4. Employee Satisfaction helps the employees to build teams easily so as to
maximize their contribution. Further more modern techniques of human
resource management like empowerment can easily be practiced.
5. Further implementation of enterprise resource planning and business process
reengineering can be possible with employee satisfaction.

Importance of Employee Satisfaction

Employee satisfaction plays a vital role in the success of the organization.
High employee satisfaction keeps employees loyal to the job, profession and
organization. This leads to employee commitment and sincerity. The committed and
sincere employees not only plan out their individual work but also the work of the
group ant ht entire department. Further, the committed employees contribute their
human resources to the maximum extent of their job.



Financial consultant

Financial Consultant are nothing but the company’s representatives who sell
insurance policy to the customers .Their appeal towards the customer should be very
polite , and they should also have a clear idea about their competitor’s products in
the same space to be an effective salesman who can sell company ‘s product to his
level best.

The company is having many channels of distribution to sell their products. Financial
consultants are one of the channels of distribution of the company who actually plays
the role of guiding the customers to invest their earnings and savings in insurance,
from which they can get commission. And their customers also benefit in the form of
returns and also get monetary refunds in the cases of any miscomfort regarding their
health and life, it is also like a property which can also be used to get loans from
banks.

The new companies are looking for educated, aware individuals with marketing flair,
an elite group who can be attracted only with high remuneration and the lure of a
fashionable job, all of which may not be possible in this business with its price
pressures and the complexity of selling insurance. Unable to attract this segment,
they have started easing recruitment conditions as against the stringent norms they
had earlier, there by diluting the process.

The challenge here is the lack of knowledge of the competitive market and the
inability to do intelligent comparisons with the competitor’s products. Educating and
training these agents is a serious challenge for the insurance company.



The relevance of this kind of agent continues even today as agents are sought or
contracted by families by word of mouth. Insurance companies are advised not to
follow the path of FMCG’s /credit card companies, believing that a suited and booted
customer care consultant or financial consultant will necessarily appeal to the
average Indian customer.

For Becoming Consultant rules and regulation as follows:

1) What exactly they Need to Do?

As an HDFC Standard Life Insurance Consultants, they have to work with
individuals, families and business to understand their protection and
investment needs, and identify solutions that best fit their requirements. To
help make their task easier, they are having companies access over vast
support system of over branches at locations.

2) What Qualification they Need?

 Their age should be atleast 18 years old.

 The Candidate has passed at least 12th from a recognized State or
Central Board if he/she is from urban area.

 The Candidate has passed at least 10th from a recognized State or
Central Board if he/she is from rural area.

 They all need to sell policies is a Consultants Certification by training
at recognized institute.

 The IRDA also conducts examination, which every candidate must
pass, as to become a Financial Consultant.



3) Do they NEED Selling or Financial Experience?

No, this not necessary. HDFC Standard Life will equip with all the
information and knowledge you need, through training programs entirely
sponsored by the company.

4) Can they Work Part-Time?

Yes, they can. Several consultants have started with the company as a part
time basis and then, as their business grew, become full time consultants.

5) Can they keep Their Current Job?

Of Course! The only limitation is that as an individual, you may not take up a
job as a consultant with any other life insurance company. While most of the
training costs are borne by HDFC Standard Life, you need to pay for a small
component as a joining fee, which covers your examination charges and your
licensing charges, among other expenses.



RESEARCH DESIGN



Problem statement: To analyze the satisfaction level of the Financial
Consultants with HDFC standard life.

Approach to the problem:

1. Research Methodology:
In order to achieve the below objectives following research design was adopted.

Objectives of Study:

 To study the role of financial consultants in HDFC standard life insurance.
 To find out the key motivational factors of the financial consultants.
 To measure the satisfaction level of the financial consultants towards the
support of the superiors in achieving their target.
 To study about the training and guidance provided to the financial
consultants.
 To study the satisfaction level of the financial consultants towards company

2. Sample profile:
Sample Size: 100 respondents

3. Sources of Data:
For the purpose of research study the data from two sources has been collected
mainly,

 Primary Data



 Secondary Data

1) Primary Data :
Primary data was collected by conducting a survey in the company, with
the help of questionnaire and by interviewing the financial consultants in the
company. Data of the financial consultants have taken from the company.

2) Secondary Data :
Pamphlets, News Papers, journal, Company register.

MEASUREMENT TECHNIQUE:

Sampling Method : Convenience sampling

Sample size : 100

Sampling Technique : Personal Interview

Sampling Unit : Financial Consultant

Area : Belgaum

Duration : 16th June2008 to 14th Aug2008

LIMITATIONS:



 Project is limited to Financial Consultants of HDFC Standard Life

Belgaum city.

 The scope of the study is restricted to the time constraint.

DATA ANALYSIS



FINANCIAL CONSULTANTS PROFILE:

Age

Cumulative
Frequency Percent Valid Percent Percent
Valid 20 - 30 53 53.0 53.0 53.0
30 - 40 31 31.0 31.0 84.0
40 - 50 12 12.0 12.0 96.0
50 - 60 4 4.0 4.0 100.0
Total 100 100.0 100.0

Age

50 - 60

4.0%

40 - 50

12.0%

20 - 30

53.0%
30 - 40

31.0%



Interpretation : The above pie chart gives the breakup of financial consultants
(FC’s) lying between different age groups of which it is being observed that
maximum percentage of FC’s lie between the age 20 -30.

Sex

Cumulative
Valid Male 70 70.0 70.0 70.0
Female 30 30.0 30.0 100.0
Total 100 100.0 100.0



Sex
Female

30.0%

Male

70.0%

Interpretation: From the above pie chart it can be observed that the major portion
of FC’s is being dominated by male since the work involves lot of travel.

Martial Status

Cumulative
Valid Married 48 48.0 48.0 48.0
Unmarried 52 52.0 52.0 100.0
Total 100 100.0 100.0



Martial Status

Married
48.0%

Unmarried

52.0%

Interpretation: From the above pie chart it is being observed that a major part of
FC’s is among the unmarried personals.



Education Qualification

Cumulative
Valid SSLC 7 7.0 7.0 7.0
12th 24 24.0 24.0 31.0
Graduate 34 34.0 34.0 65.0
Post Graduate 15 15.0 15.0 80.0
Others 20 20.0 20.0 100.0
Total 100 100.0 100.0

Education Qualification

SSLC
Others 7.0%
20.0%

12th

24.0%

Post Graduate

15.0%

Graduate

34.0%

Interpretation: According to the pie chart most of the FC’s are Graduate & 24%
of them are 12th pass & 20% of them belong to other qualification, 15% of the FC’s
are post graduate & 7% of FC’s are 10th pass.



Employed

Cumulative
Valid Part Time 81 81.0 81.0 81.0
Full TIme 19 19.0 19.0 100.0
Total 100 100.0 100.0

Employed
Full TIme

19.0%

Part Time

81.0%

Interpretation: From the above pie chart it is observed that out of 100
respondents 81% of financial consultants are working for part time as to earn more.



Since how many years you have been working as Financial Consultant for HDFC
SLIC.

Cumulative
Valid 6months & above 24 24.0 24.0 24.0
1year -- 3year 43 43.0 43.0 67.0
3year--4year 25 25.0 25.0 92.0
4year & above 8 8.0 8.0 100.0
Total 100 100.0 100.0

Since how many years you have been working as FC for HDFC SLIC

4year & above

8.0%

3year--4year
25.0%

6months & above

24.0%

1year -- 3year
43.0%

Interpretation: It seems that most of the FC’s are working from 3 years and below
followed by those working below 4 years.



What made you to choose career in HDFC?

Cumulative
Valid Brand Name 10 10.0 10.0 10.0
Incentives 39 39.0 39.0 49.0
Opportunities 20 20.0 20.0 69.0
Growth 16 16.0 16.0 85.0
Others 15 15.0 15.0 100.0
Total 100 100.0 100.0

What made you to choose career in HDFC?

Brand Name
Others
10.0%
15.0%

Grow th

16.0%

Incentives

39.0%

Opportunities

20.0%



Interpretation: It is being observed that 39% of the total FC’s join HDFC because
of the attractive incentives offered by the company followed by the exciting
opportunities they get by HDFC.

Are you happy with the training and guidance that is being provided by
the company ?

Cumulative
Valid Yes 96 96.0 96.0 96.0
No 4 4.0 4.0 100.0
Total 100 100.0 100.0

Are you happy w ith the training & guidance that is provided by company?

No

4.0%

Y es

96.0%



Interpretation: 4% FC’s say that they are not happy with the training & guidance
because language becomes a problem & 96 %FC’s are happy with training &
guidance provided by the company.

How do you rate the satisfaction level with respect to training and guidance given
by the company ?

Cumulative
Valid Highly Statisfied 15 15.0 15.0 15.0
Satisfied 73 73.0 73.0 88.0
NeitherNor 9 9.0 9.0 97.0
Dissatisfied 3 3.0 3.0 100.0
Total 100 100.0 100.0

Rate the satisfaction level with respect to training & guidance.

Dissatisf ied

3.0%
NeitherNor Highly Statisfied

9.0% 15.0%

Satisf ied

73.0%



Interpretation: 88% of them are satisfied with training & guidance that is being
provided, 3% of them are dissatisfied with respect to training & guidance.

Do superiors provide their assistance & support in achieving target?

Cumulative
Valid Yes 96 96.0 96.0 96.0
No 4 4.0 4.0 100.0
Total 100 100.0 100.0



Do superiors provide their assistance & support in achieving target?

No

4.0%

Yes

96.0%

Interpretation: Most of superiors extend their assistance for achieving the target .



Your job satisfaction level towards the company ?

Cumulative
Valid Highly Satisfied 4 4.0 4.0 4.0
Satisfied 82 82.0 82.0 86.0
Average 11 11.0 11.0 97.0
Disatisfied 2 2.0 2.0 99.0
Highly Dissatisfied 1 1.0 1.0 100.0
Total 100 100.0 100.0

Your job satisfaction level towards the company ?
Highly Dissatisf ied

1.0%

Disatisf ied
2.0%
Average

11.0%

Highly Satisf ied
4.0%

Satisf ied
82.0%

Interpretation: From the above pie chart it is observed that 82% of the Fc’s are
satisfied with their job in the company, 4% of the FC’s are highly satisfied ,11% of
the FC’s are unable to say anything about the satisfaction level, 2% are dissatisfied
and 1% are highly dissatisfied.



Which products do you feel, sell easily in the market?

Cumulative
Valid Protection Plan 5 5.0 5.0 5.0
Investment Plan 5 5.0 5.0 10.0
Pension Plan 14 14.0 14.0 24.0
Savings Plan 14 14.0 14.0 38.0
Unit Linked Plan 62 62.0 62.0 100.0
Total 100 100.0 100.0

Which products do you feel, sell easily in the market?

Protection Plan
5.0%
Investment Plan

5.0%

Pension Plan
14.0%

Unit Linked Plan Savings Plan

62.0% 14.0%

Interpretation: From the above pie chart it is depicted that, 62% FC’s say that unit
linked plans are easily movable in the market, as compared to other plans.



What difficulties arise in selling the products?

Cumulative
Valid Brand Image 18 18.0 18.0 18.0
Price Range 47 47.0 47.0 65.0
Returns 18 18.0 18.0 83.0
Security 17 17.0 17.0 100.0
Total 100 100.0 100.0

What difficulties arise in selling the products?

Security Brand Image
17.0% 18.0%

Returns
18.0%

Price Range
47.0%

Interpretation: From the above pie chart it is observed that 47% FC’s say that
price range is a difficulty to sell their product, , 18% of the FC’s say that returns and
brand image is a difficulty to sell , 17% FC’s say that security is a difficulty to sell.


A project report on satisfaction level of the financial consultants at hdfc

A project report on satisfaction level of the financial consultants at hdfc

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A project report on satisfaction level of the financial consultants at hdfc