A

Training Report On

At

Surat
As a part of S.Y.B.B.A (From 25th April,2008 to 25th June,2008)
Prepared By

Sabhadiya Jignesh P.
(S.Y.B.B.A.) (Roll No.:- 90) Submitted to The co-ordinator

The Prof. V.B.Shah Institute of Management & R.V.Patel College of Commerce ,Amroli.

NO. 1 2

PARTICULAR INTRODUCTION ABOUT THE INSURANCE 1. Insurance Sector Reforms 2. The Insurance Regulatory and Development Authority TRADITONAL PLANS 1. Save n Protect 2. CashBak 3. LifeGuard 4. SmartKid 5. ForeverLife MARKET LINKED PLANS 1. Basic of Unit Linked Insurance Plans 2. Positioning of LifeTime Super 3. LifeTime Super 4. LifeTime Plus 5. LifeTime Super Pension 6. SmartKid New Unit Linked RP HEALTH PLANS 1. Cancer Care PERSONAL MANAGEMENT SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY

PAGE NO.

5 6. 7. 8. 9.

ACKNOWLEDGEMENT

I have undergone the summer training in the HDFC Standard Life Insurance Ltd. head office. I have collected the information, which are included in this report. I take the opportunity to express the feeling of grateful towards Veer Narmad South Gujarat University for keeping Industrial summer training as part of S.Y.B.B.A. course. I also thank the CO-ORDINETOR of Prof. V.B. Shah Institute of management & R.V. Patel college of commerce Shehnaz Mam and V.B.SHAH INSTITUTE OF MANAGEMENT for give me a opportunity for summer industrial training at HDFC Standard Life Insurance and providing guidance to undergoing the training.

I also thankful to the Devlopment officer Shree Anand tiwari Again I am thankful to the entire member for their warmly cooperation for colleting information.

Sabhadiya Jignesh (Roll No.:90)

PURPOSE OF TRAINING

I have visited the HDFC Standard Life Insurance. During the summer Industrial training for two months 25th April, 2008 to 25th June, 2008. Hereby the report is prepared by me, totally based on own experience at the branch and other information given by company. The purpose of training report is compare practical training and theoretical knowledge. Actually the main purpose of preparing training report is to collect detail information more and more about Insurance. Industries mainly the Life Insurance and also develop my knowledge about policy of Life Insurance.

Introduction
Risk is found every where. It cannot be eliminated together, only it can be minimized. Human life is full of risk. There is a risk when a man walks on the road, travels in a bus, train or an aeroplane and when he is engaged in trade, profession or business. Also there is a risk when property is destroyed by fire, flood, earthquakes, etc. Thus, the involvement of risk is inescapable. Insurance is a method by which we can spread over the risk. It is a way of reducing uncertainty of occurrence of an event. Insurance is entirely a method of co-operative endeavor where in the loss caused by a particular risk is spead over among a large section of persons. Insurance is a process in which a large number of persons collect their small contributions, called the premium, in a pool and out of this losses are paid to the suffering persons. The Business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it meets some of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits.

The History of Insurance

Although insurance may have been used by the Babylonians, the Greeks and the Romans, insurance in the modern sense originated in the Mediterranean during the 13th or 14th century. The earliest reference to insurance which have so far been traced appear in the accounts of North Italian merchant-bankers who dominated the international trade of Europ at that time. Marine insurance is the oldest form of insurance (1347), followed by life insurance some 300 years later and fire insurance (1666). Insurance in these fields followed the pattern that had been established in England. Socio Economic Significance of Insurance: The primary function of insurance is to spread the financial losses of insured members over the whole of the insuring community, by compensating the unfortunate few from the funds built up from the contributions of all, including fortunate many who escape losses. Besides, the practice of insurance has many secondary or subsidiary functions which contribute to the welfare of the individual or society. It tends more and more to transform our modern social order, fosters private and public interests, individual prudence, acts as an accelerator and as stabilizer of economic growth. Insurance has attained so great a popularity and importance these days that it has now become almost a home word. The socio economic significance of insurance has been well realized all over the world and it will be exaggeration to say that individual world without insurance is like a car without shock absorber. A father with a large family to support rests easy because he is insured against death; the farmer with his crop ripening in his field knows his insurance protects him against financial ruin by flood, rain, fire and windstorms, fog etc. The same is true about businessmen. Therefore, it is safe to believe insurance is the shock absorber of industry and individual. Practically, every kind of risk to which human being or property may be liable can now be insured against such risks. No trade, commerce and industry can function efficiently without insurance. Insurance only spreads the financial losses of insured members over the whole of the remaining insured whose assets are not damaged. Thus, insurance company acts as a middle man for such social co-operation. It is infect a co-operative device designed to compensate one against losses because insurer collect premium from a large number of policy holders and distribute to the victims only.

Development of Insurance in India

Marine insurance is the oldest type of insurance and one of the earliest records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by life insurance some 300 years later. Fire insurance, however, did not begin until after the Great fire of London in 1666. In India all the three insurance developed as under: Marine Insurance: There are references that marine insurance was practiced in India three thousand years ago; there is no evidence that insurance in its present form was practiced prior to the twelfth century. In fact, British insurers introduced general insurance, in its modern form in India, when they opened their branches around 1700. The Sun Insurance Office Ltd (a foreign company) started its operation in Calcutta in the year 1710. In our country the following four companies have been authorized to carry on the general insurance business including marine insurance: 1) 2) 3) 4) National Insurance Company, Calcutta. New India Assurance Company, Bombay. Oriental Fire and General Company, Bombay. United India Fire and General Insurance Company, Madras.

Life Insurance: In India life insurance business was started by Europeans with the establishment of Oriental Life Insurance Company in 1818. Later On, in 1871, Bombay Mutual Life Insurance came into existence. The Oriental Government Security Life Assurance came into being in 1874. The Life Insurance business was nationalized in the year 1956. Fire Insurance: In our country the fire insurance started with the establishment of Triton Insurance Company in Calcutta in 1850. The North British Mercantile Company came into existence in 1861. There was slow progress of fire insurance in our country and with the nationalization of general insurance business: fire insurance is now being transacted by the four subsidiary companies of General Insurance Corporation of India.

Purpose & Need of Insurance

Assets are insured, because they are likely to be destroyed or made non function before the expected life time, through accidental occurrences. Such possible occurrences are called perils. Fire, Floods, breakdowns, lightning, earthquakes, etcat perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks ate the consequential losses or damages. The risk to an owner of a building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of the building, the contents in me and the extent of damage. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, at the building may not have been affected at all. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word possibility implies uncertainty. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of human being, death is certain, but the time of death is uncertain. The person is insured, because of the uncertainty about the time of his death. In the case of person who is terminally ill, the time of death is not uncertain, though not exactly known. It would be soon. He cannot be insured. Insurance does not protect asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The risk can sometimes be avoided, through better safety and damage control measures. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on the asset. They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged, insurance only compensates for the losses- and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of managers of non economic losses are love and affection of parents, leadership of manager, sentiment attachments to family heirlooms, innovative and creative abilities, etc

Limitation of Insurance
a) Insurance cannot protect against all kind of risk. If any risk is not in harmony with government policy, insurance cannot protect. For example, there is no protection against a risk in smuggling business. b) The Loss which has been evaluated in money that is only secured by insurance.
c) Insurance cannot offer protection in case of risk existing due to

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

Development of Life Insurance

Life insurance made its first appearance in England in 16th century, the first recorded evidence in England being the policy on life of William Gybbons on June 18, 1653. Even before this date annuities has become quite common in England, and marine insurance had, in fact, made its appearance three thousand years ago. The life insurance developed at Exchange Alley. The first registered life office in England was the Hand in Hand society established in1696. The famous Amicable Society for a perpetual Assurance Office started its operation since 1706. Life insurance did not prosper in the United States during the 18th centutary, because of serious fluctuations in death rate, but soon after 1800 some active interest began to be shown in this enterprise because of the application of level premium plan which had by then been in operation in U.K. for more than a generation. In France the Life Assurance (Insurance) could not get success because of its prohibition. It was only in 19th century that France allowed life insurance. The first company was compagnie Royald Assurance which came into existence in 1787. In Germany the first insurance company to transact to transact insurance business was Amoldi in the year 1829.

Development of Life Insurance in India

In India, some Europeans started the first life insurance company in Bengal Presidency, viz., the Orient Life Assurance Company in 1818. The year 1870 was a year of a land mark in the history of Indian Insurance separating the early period of pioneering attempts in life insurance from the subsequent period of steady at the establishment of Indian Life Office, viz., Bombay Mutual Life Assurance Society in 1871. The next important life office was Oriental Government Security Life Assurance Co., Ltd., which started its operation since 1874. Since then several offices developed in India. In 1956, the Life insurance business was nationalized by taking over 245 companies and by forming one single corporation, named as Life Insurance Corporation (LIC) of India. The Definition of life insurance given by the learned persons are as follows: Life insurance business is the business of effecting contract upon human life. - As per Section of Insurance Act. A life insurance contract may be defined as one whereby the insurer, in consideration of premium paid either in a lump sum or in periodical installments, undertakes to pay an annuity or a certain sum of money either on the death of the insured or on the expirly of a certain number of years. - R.S. Sharma.

Advantages of Life Insurance

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

In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund, etc. There is a certain amount of compulsion to go though the plan of savings. In other forms, if one charges the original plan of savings, there is no loss. In insurance, there is a loss.

Creditors cannot claim the life insurance moneys. They can be protected against attachments by courts. There are tax benefits, both in income tax and in capital gains. Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy.

 It is possible to protect a life insurance policy from being attached by debtors. The beneficiaries interests will remain secure. The following tenets help agent to believe in the benefits of life insurance. Such faith will enhance their determination to sell and their perseverance. Life insurance is not only the best possible way for family protection. There is no other way. Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable. The terms of life are hard. The terms of insurance are easy. The value of human life is far greater than the value of property. Only insurance can preserve it.

Life insurance is not surpassed by any other savings or investment instrument, in terms of security, marketability, stability of value or liquidity.

Insurance, including life insurance, is essential for the conservation of many businesses, just as it is in the preservation of homes. Life insurance enhances the existing standards of living. Life insurance helps people live financially solvent lives. Life insurance perpetuates life, liberty and the pursuit of happiness.

Life insurance is a way of life.