HDFC STANDARD LIFE

INSURANCE

PROJECT REPORT

ON

RECRUITMENT OF FINANCIAL AGENTS

IN HDFC

Submitted in partial fulfillment of the requirements for

Post Graduate Diploma in Management (PGDM)

By

CHARU KAPOOOR
Class of 2008

Bharatiya Vidya Bhavan’s

Usha & Lakshmi Mittal Institute of Management
Copernicus Lane,Kasturba Gandhi Marg
New Delhi

July 2009
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ACKNOWLEDGEMENT

The satisfaction & euphoria that accompany the successful completion of any task would
be incomplete without mentioning the people who made it possible, whose consistent
guidance & encouragement crowned the efforts with success. I wish to express my
gratitude to HDFC Standard Life for giving me an opportunity to be a part of their esteem
company and enhance my knowledge by granting permission to do my summer training
project under their guidance.

I am sincerely grateful to Mr. CHANDAN JYOTI (Industry mentor) for their expert
guidance and illuminating views through their great experience on a number of issues
related to my project and other activities. Without there motivation and guidance, this
project would not have been materialized.

I feel immense pleasure in expressing my sincere and deep sense of gratitude to Prof.
Nidhi Sahore (faculty, BULMIM), for her time and valuable efforts. She has been a
constant source of knowledge, information, help and motivation for me through her depth
knowledge and reflections.

Last but not the least I also express my sincere thanks to my parents and my friends who
gave suggestions as how to work on project and motivated me.

CHARU KAPOOR

JULY 2009
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Certificate of Originality

(To be filled in by the student in his / her handwriting)

I --------------------------------------------------- Roll No -------------- Class of 2008, a full

time bonefide student of first year of Post Graduate Diploma in Management (PGDM)
Programme of Bharatiya Vidya Bhavan’s Usha and Lakshmi Mittal Institute Of
Management, New Delhi hereby certify that this project work carried out by me at
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------ and the report submitted in partial
fulfillment of the requirements of the programme is an original work of mine under the
guidance of the industry mentor
------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------and faculty
mentor------------------------------------------------, and is not based or reproduced from any
existing work of any other person or on any earlier work undertaken at any other time or
for any other purpose, and has not been submitted anywhere else at any time
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EXECUTIVE SUMMARY

The project report initially traces the company’s profile, its evolution and growth and a
detail study of the recruitment process in HDFC STANDARD LIFE. An attempt was
made to know the role of agents (financial consultants), their working environment and
the most preferred profiles.

The research methodology consists of primary as well as secondary data to know the
recruitment process. Personal interview with financial consultants (agents) was conducted
to know about various aspects. The project report gives a reasonable understanding of
whole process from recruitment to licensing.

Finally SWOT analysis and suggestions were presented.

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TABLE OF CONTENTS
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OBJECTIVES OF THE PROJECT

Since my area of specialization is HR, I always wanted to

study how recruitment process takes place. Since HDFC

STANDARD LIFE is very reputed and large company which

has branches not only in India but also foreign countries, I

was curious -

• To study how HDFC recruit agents/advisors

• To study the sources from where they are recruited

• What kind of environment they work in

• To study the challenges that advisor face

• To study the way customers are convinced

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INTRODUCTION TO
INDUSTRY
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INTRODUCTION TO INSURANCE INDUSTRY

The story of insurance is probably as old as the story of

mankind .the same instinct that prompts modern businessmen
today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were
willing to make some sort of sacrifice in order to achieve
Security. The history of life insurance in India dates back to
1818 when it was conceived as a means to provide for
English Widows. Interestingly in those days a higher
premium was charged for Indian lives than the non-Indian
lives, as Indian lives were considered more risky for
coverage.

The Bombay Mutual Life Insurance Society started its

business in 1870. It was the first company to charge same
premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The first
general insurance company- Tital Insurance Company
Limited was established in 1850. Till the end of nineteenth
century insurance business was almost entirely in the hands
of overseas companies.
Insurance regulation formally began in India with the passing
of the Life Insurance Companies Act of 1912 and the
provident fund Act of 1912. Several frauds during 20's and
30's sullied insurance business in India. By 1938 there were
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176 insurance companies. The first comprehensive legislation

was introduced with the Insurance Act of 1938 that provided
strict State Control over insurance business. The insurance
business grew at a faster pace after independence. Indian
companies strengthened their hold on this business but
despite the growth that was witnessed, insurance remained an
urban phenomenon.
The Government of India in 1956, brought together over 240
private life insurers and provident societies under one
nationalized monopoly

corporation and LIC was born. Nationalization was justified

on the grounds that it would create much-needed funds for
rapid industrialization. This was in conformity with the
Government's chosen path of State lead planning and
development.

The (non-life) insurance business, however, continued to

thrive with the private sector till 1972. Their operations were
restricted to organized trade and industry in large cities. The
insurance sector in India has 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.
By any yardstick, India, with about 200 million middle class
households, presents a huge untapped potential for players in
the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more
attractive for global insurance majors with the per capita
income in India expected to grow at over 6% for the next 10
years and with improvement in awareness levels, the demand
for insurance is expected to grow at an attractive rate in India.
An independent consulting company, The Monitor Group has
estimated that the life insurance market will grow from
Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a
compounded annual growth of 16.5%)

IMPORTANCE OF INSURANCE
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Life is a roller coaster ride and is full of twists and turns. You
cannot take anything for granted in life. Insurance policies are
a safeguard against the uncertainties of life. Insurance is
system by which the losses suffered by a few are spread over
many, exposed to similar risks. Insurance is a protection
against financial loss arising on the happening of an
unexpected event. Insurance policy helps in not only
mitigating risks but also provides a financial cushion against
adverse financial burdens suffered. As you can not fight
against these man-made and natural calamities, so at least be
prepared for them and their aftermath by taking insurance
policies.
Insurance is an attractive option for investment but most
people are not aware of its advantages as an investment
option. Remember that first and foremost, insurance is about
risk cover and protection. By buying life insurance, you buy
peace of mind. Insurance also serves as an excellent tax
saving mechanism. The Government of India has offered tax
incentives to life insurance products in order to facilitate the
flow of funds into productive assets. Insurance policies cover
the risk of life as well as other assets and valuables, such as,
home, automobiles, jewelry et al. On the basis of the risk they
cover, insurance policies can be classified i

IRDA AND INSURANCE INDUSTRY

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA Act)

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance

Regulatory and Development Authority (IRDA, which was
constituted by an act of parliament) specify the composition
of Authority
The Authority is a ten member team consisting of

(a) a Chairman;
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(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of INDIA)

Duties,Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 laysdown the duties,powers

and functions of IRDA..
(1) Subject to the provisions of this Act and any other law
for the time being in force, the Authority shall have the duty
to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions
contained in sub-section (1), the powers
and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew,
modify, withdraw, suspend
or cancel such registration;
(b) protection of the interests of the policy holders in
matters concerning assigning of
policy, nomination by policy holders, insurable interest,
settlement of insurance
claim, surrender value of policy and other terms and
conditions of contracts of
insurance;
(c) specifying requisite qualifications, code of conduct and
practical training for
intermediary or insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss
assessors;
(e) promoting efficiency in the conduct of insurance
business;
(f) promoting and regulating professional organisations
connected with the insurance
and re-insurance business;
(g) levying fees and other charges for carrying out the
purposes of this Act;
(h) calling for information from, undertaking inspection of,
conducting enquiries and
investigations including audit of the insurers,
intermediaries, insurance
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intermediaries and other organizations connected with

the insurance business;
(i) control and regulation of the rates, advantages, terms and
conditions that may be
offered by insurers in respect of general insurance
business not so controlled and
regulated by the Tariff Advisory Committee under
section 64U of the Insurance Act,
1938 (4 of 1938);
(j) specifying the form and manner in which books of
account shall be maintained and
statement of accounts shall be rendered by insurers and
other insurance
intermediaries;
(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and
intermediaries or insurance
intermediaries;
(n) supervising the functioning of the Tariff Advisory
Committee;
(o) specifying the percentage of premium income of the
insurer to finance schemes for
promoting and regulating professional organisations
referred to in clause (f);
(p) specifying the percentage of life insurance business and
general insurance business
to be undertaken by the insurer in the rural or social
sector; and
(q) exercising such other powers as may be prescribed

IMPACT OF IRDA ON INDIAN INSURANCE SECTOR

The creation of IRDA has brought revolutionary changes in

the Insurance sector. In last 10 years of its establishment the
insurance sector has seen tremendous growth. When IRDA
came into being; only players in the insurance industry were
Life Insurance Corporation of India (LIC) and General
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Insurance Corporation of India (GIC), however in last decade

23 new players have emerged in the filed of insurance. The
IRDA also successfully deals with any discrepancy in the
insurance sector.
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INTRODUCTION TO THE
COMPANY

MAN WITH A MISSION

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If ever there was a man with a mission it was Hasmukhbhai

Parikh, founder and chairman – emeritus, Of HDFC group
who left this earthly abode on November 18, 1994. Born in a
traditional banking family in surat, Gujarat, Mr. Parikh
started his financial career at
Harkisandass lukhmidass – a leading stock broking firm. The
firm closed down in the late seventies, but, long before that,
he went on to become a towering figure on the Indian
financial scene. In 1956 he began his lifelong financial affair
with the Economic world, as general Manager of the newly-
formed industrial credit and investment
Corporation of India (ICICI). He rose to become chairman
and continued so till his
retirement in 1972.At the ripe age of 60, Hasmukhbhai
started his second dynamic Life, even more Illustrious than
his first. His vision for mortgage finance for Housing gave
birth to the Housing development finance corporation – It
was a trend-setter for housing finance in the whole Asian
continent. He was also a writer in his own right. There Are
over 200 published articles by him….? In 1992, the
government of India honored Him with the Padma Bhushan
award. London school of economics & political science
conferred on Him an honorary Fellowship. He was one of the
founder members of the centre for Advancement of
philanthropy, and its chairman till 1993.
He took active interest in the Bombay community public
trust, Designed specifically To serve the needs of the city’s
underprivileged citizens.When Mr. Deepak Parikh took over
as chairman from Hasmukhbhai, he said;
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“Taking over from H.T Parikh is a formidable task; his

vision…brought about not
only an institution, but an entire concept which has proved
itself to be of lasting importance. “Today we are the largest
residential mortgage finance institution
In India, with a net Worth of Rs. 2,703 crores as of march 31,
2006 and an asset base Of over Rs.22, 000 Crores. We also
aim to increase the flow of resources to the
Housing sector by integrating the housing finance sector with
the overall domestic
Financial markets. Over a span of 25 years, HDFC has
become the pioneer in
Housing finance in India and made it possible for over two
million families to own their
Homes, throughHousing loans worth over Rs.42,000 cores.

COMPANY PROFLE

HDFC STANDARD LIFE

HDFC Standard Life Insurance Company limited is one of

the India’s leading private insurance companies, which offers
a range of individual and group insurance solutions. it is a
joint venture between housing development finance
corporation limited(HDFC LIMITED),housing finance
institution and a group of company of the standard life
pic.UK.As on 28,2009 HDFC Ltd,holds 72.43%and standard
life(Mauritius holding)2006,ltd. 26.00% of equity in the joint
venture. While the rest is held by others.
HDFC standard life believes that establishing a strong and
ethical foundation is an essential prerequisite for long term
sustainable growth. to ensure this we have concentrated our
focus on expansion on branch network, organizing an
efficient and well trained sales force ,and setting up of
appropriate systems and processes with optimum use of
technology. As all these areas form the basic infrastructure
for establishing the highest possible customer service
standards.
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HISTORY OF STANSARD LIFE

The standard life assurance company (“standard life”) was

established in 1825 and the first standard life assurance
company act was passed by parliament in 1832.standard life
was reincorporated as a assurance company in 1925.
The standard life group originally operated only though
branches o agencies of the mutual company in the untied
kingdom and certain other countries.
Its Canadian branch was founded in 1833 and its Irish
operations in 1838.this largely remained the structure of the
group until 1996, when it opened a branch in Frankfut,
Germany with the aim of exporting its UK life assurance and
pensions operating model to capitalize on the opportunities
presented by EC directive 92/96/EEC (the “third life
directive”)and offer a product range in that market with
features which local providers were unable to offer.
In the 1990s, the group also sought to diversify its operations
into areas which complimented its core life assurance and
pensions business, with the intention of positioning itself as a
broad range financial services provider.
Banking, investment and healthcare-
The group set up standard life bank, its Uk mortgage and
retail savings banking subsidiary in 1998.the group acquired
prime health limited(subsequently renamed standard life
healthcare)in the united kingdom in 2000.stndard life
healthcare expanded in march 2006 with the acquisition of
the PMI business of firstAssist.
Standard life Asia limited/joint ventures-

PARENTAGE

HDFC LIMITED

HDFC limited India’s premier housing finance institution has

assisted more than 3.3 million families own a home, since its
inception in 1977 across 2400 cities and towns through its
network of over 250 officies.it has international offices in
Dubai, London and Singapore with a service associates in
Saudi Arabia .Qatar, Kuwait and Oman to assist NRI’s and
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PIO’s to own home back in India. As of December 2008, the

total asset size has cross more than Rs.95000crores
Including the mortgage loan assets of more than Rs.82,800
crores. Corporation has deposit base of Rs.17.551 crores,
earning the trust of more than 900.000 depositors. Customer
service and satisfaction has been the mainstay of the
organization .has set benchmarks for the Indian housing
finance industry. recognition for the service to the sector has
come from several national and international entities
including the world bank that has lauded HDFC as a model
housing finance company for the developing countries.HDFC
has undertaken a lot of consultancies abroad assisting
different countries including Egypt ,Maldives and
Bangladesh in the setting up of housing finance companies.

Standard life group (standard life plc and its subsidiaries)

The standard life group has been looking after the financial
needs of customer’s for over 180 years. It currently has
customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking
and health-care needs. Its investment manager currently
administers $125billion in assets. it is a leading pensions
provide in U.K,and is rated by standard & Poor’s
as’strong’with a rating of a+ as ‘god’ with Moody’s.
Standard life was awarded the ‘best pension provider’ in
2004,2005 and 2006 at the money marketing awards and it
was voted as 5 star life and pension’s provider at the financial
advisor service awards for last 10 years running. The '5 Star'
accolade has also been awarded to Standard Life Investments
for the last 10 years, and to Standard Life Bank since its
inception in 1998. Standard Life Bank was awarded the 'Best
Flexible Mortgage Lender' at the Mortgage Magazine Awards
in 2006.

KEY STRENGHTS

Financial expertise

As a joint venture of leading financial services groups, HDFC

standard life has expertise required to manage your long term
investments safely and efficiently.
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Range of solutions

We have a range of individual and group solutions which can

be easily customized t specific needs. Our group a solution
has been designed to offer \you complete flexibility combined
with low charging structure.

Track record so far

Our gross premium income for the year ending March 31,
2009 stood at Rs.5, 564.69 crores .The company has covered
over 8, 33,070 lives as on march 31, 2009.

OBJECTIVE

Focus on the productivity of each consultant, corporate or

individual, while stressing on the quality of proposals

Quick roll out of Products

Efficiency of Operations

Meet Social & Rural sector obligations

VISION AND VALUES

VISION
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‘The most successful and admired life insurance company

which means that we are trusted company, the easiest to deal

with, offer the best value for money and set the standards.’

VALUES

Values that we observe while we work:

• Integrity

• Innovation

• Customer centric

• People care” one for all and all for one”

• Team work

• Joy and simplicity

AWARDS AND ACCOLADES

Sept, 2008

Received 2008 CIO Bold 100 and CIO Security Awards

HDFC Standard Life has received the 2008 CIO Bold 100
Award. This annual award recognizes organizations that
exemplify the highest level of operational and strategic
excellence in information technology. This year's award
theme, ‘The Bold 100,’ recognized those executives and
organizations that embraced great risk for the sake of great
reward.
HDFC Standard Life has also been one of the five recipients
of the Special 2008 CIO Security Award aimed at CIOs,
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whose pioneering implementations have taken their enterprise

security to the next level. This award category identifies
innovative and groundbreaking deployment of technologies
aimed at creating a secure business infrastructure. The
company received the 2008 CIO Bold Award for its mobile
workforce portal and the CIO Security Award for its
initiatives for a secure computing environment, including
identity management.

May, 2008

Received PCQuest Best IT Implementation Award 2008

HDFC Standard Life received the PCQuest Best IT
Implementation Award 2008 for Consultant Corner, the
applications for its financial consultants, providing
centralized control over a vast geographical spread for key
business units such as inventory, training, licensing, etc. Read
more about the ‘Consultant Corner’ tool in the ‘HDFCSL in
News’ Section.
HDFC Standard Life has won the PCQuest Best IT
Implementation Award for two years consequently. Last year,
the company received the award for Wonders, its path-
breaking implementation of an enterprise-wide workflow
system.
March, 2008

Silver Abby at Goafest 2008

HDFC Standard Life's radio spot for Pension Plans won a
Silver Abby in the radio writing craft category at the Goafest
2008 organised by the Advertising Agencies Association of
India (AAAI). The radio commercial ‘Pata nahin chala’
touched several changes in life in the blink of an eye through
an old man’s perspective. The objective was drive awareness
and ask people to invest in a pension plan to live life to the
fullest even after retirement, without compromising on one’s
self-respect

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
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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 honoured 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.

ASSOCIATE COMPANIES
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Helping Indians experience the joy of home ownership. 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 realize, stand testimony to
our success. 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.

The Housing Development Finance Corporation Limited

(HDFC) was amongst the first to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalisation
of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial
Bank in January 1995.

HDFC Mutual Fund has been one of the best performing

mutual funds in the last few years. HDFC Asset Management
Company Limited (AMC) functions as an Asset Management
company for the HDFC mutual fund.

AMC is a joint venture between housing finance giant HDFC

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and British investment firm Standard Life Investments

Limited. It conducts the operations of the Mutual Fund and
manages assets of the schemes, including the schemes
launched from time to time. As of Aug 2006, the fund has
assets of Rs.25,892 crores under management.
IN 2003, following a decision by the Zurich Insurance
Company (ZIC), the Sponsor of Zurich India Mutual Fund, to
divest its asset management business in India, AMC had
entered into an agreement with ZIC to acquire the asset
management business. Consequently, all the schemes of
Zurich Mutual Fund in India had been transferred to HDFC
mutual fund and renamed as HDFC schemes.
Here is a list of mutual funds of HDFC which includes Equity
Funds, Balanced Funds and Debt Funds.

HDFC Securities, a trusted financial service provider

promoted by HDFC Bank and JP Morgan Partners and their
associates, is a leading stock broking company in the country,
serving a diverse customer base of institutional and retail
investors.
HDFCsec.com provides investors a robust platform to trade
in Equities in NSE and BSE , and derivatives in NSE. Our
website will support you with the highest standards of
service, convenience and hassle-free trading tools.
Our research team tracks the economy, industries and
companies to provide you the latest information and analysis.
Our content offers financial information, analysis, investment
guidance, news & views, and is designed to meet the
requirements of everyone from a beginner to a savvy and
well-informed trader.

HDFC Realty is a wholly owned subsidiary of HDFC. We

have assisted individuals in acquiring homes valued at 5000
million rupees.
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HDFC is a pioneer housing finance institution in India and

with over 30 years in operations has provided finance to over
a million families in India.
We are a team of real estate professionals facilitating Buying,
Selling or Leasing of Residential / Commercial property.At
HDFC Realty, we provide personalized attention to the
individuals and corporates in their process of identifying
properties. From understanding the requirement to organizing
the site visits to completion of transaction, we make every
effort to make the process of acquiring a property, hassle free
and convenient.

Bancassurance Partners

HDFC BANK SARASWAT BANK

INDIAN BANK BANK OF

BARODA

ALL PRODUCTS
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HDFC Standard Life realizes that not everyone has the same
kind of needs. Keeping this in mind, they have a varied range
of Products that people can choose from to suit all their
needs. These will help secure their future as well as the future
of their family.
 HEALTH PLANS
These plans secure the health costs, gives financial
independence while illness and helps in meeting
medical expenses effortlessly. it includes HDFC
critical care plan and HDFC surgicare plan.

 CHILDREN PLANS

These plans help you to secure your Childs dream,

provides economic support
when your child needs it more and funding major
milestone. it includes HDFC
Unit linked young star ii, HDFC Unit linked young
star plus and HDFC Unit
linked young star champion.

 PROTECTION PLANS
You can protect your 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. Our
Protection range includes our
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Term Assurance Plan & Plan, home loan protection

Plan.

 SAVING AND INVESTMENT PLANS

Its Single Premium Whole Of Life plan is well suited
to meet your long term
investment needs. They provide you with attractive
long term returns through
regular bonuses. Their Savings Plans offer you
flexible options to build savings
For your future needs such as buying a dream home
or fulfilling your children
immediate and future needs.
Their Savings range includes Endowment Assurance
Plan, Unit Linked
Endowment, Unit Linked Endowment Plus, Unit
Linked Endowment plus II,
Money Back plan, unit linked wealth maximsor, Unit
Linked Endowment
winner,HDFC simple life.

 PENSION PLANS
Their Pension Plans help you secure your financial
independence even after retirement. Their Pension
range includes Personal Pension Plan, Unit Linked
Pension, Plus, unit linked pension maximiser and
immediate annuity.
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BOARD MEMBERS

BRIEF PROFILE OF BOARD OF DIRECTORS

 Mr. Deepak S Parekh is the Chairman of the

Company. He is also the Executive Chairman of
Housing Development Finance Corporation Limited
(HDFC Limited). He joined HDFC Limited in a
senior management position in 1978. He was inducted
as a whole-time director of HDFC Limited in 1985
and was appointed as its Executive Chairman in 1993.
He is the Chief Executive Officer of HDFC Limited.
Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).
 Mr. Keki M Mistry joined the Board of Directors of
the Company in December, 2000. He is currently the
Managing Director of HDFC Limited. He joined
HDFC Limited in 1981 and became an Executive
Director in 1993. He was appointed as its Managing
Director in November, 2000. Mr. Mistry is a Fellow
of the Institute of Chartered Accountants of India and
a member of the Michigan Association of Certified
Public Accountants.
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 Mr. Alexander M Crombie joined the Board of

Directors of the Company in April, 2002. He has been
with the Standard Life Group for 34 years holding
various senior management positions. He was
appointed as the Group Chief Executive of the
Standard Life Group in March 2004. Mr. Crombie is a
fellow of the Faculty of Actuaries in Scotland.
 Ms. Marcia D Campbell is currently the Group
Operations Director in the Standard Life group and is
responsible for Group Operations, Asia Pacific
Development, Strategy & Planning, Corporate
Responsibility and Shared Services Centre. Ms.
Campbell joined the Board of Directors in November
2005.
 Mr. Keith N Skeoch is currently the Chief Executive
in Standard Life Investments Limited and is
responsible for overseeing Investment Process &
Chief Executive Officer Function. Prior to this, Mr.
Skeoch was working with M/s. James Capel & Co.
holding the positions of UK Economist, Chief
Economist, Executive Director, Director of Controls
and Strategy HSBS Securities and Managing Director
International Equities. He was also responsible for
Economic and Investment Strategy research produced
on a worldwide basis. Mr. Skeoch joined the Board of
Directors in November 2005.
 Mr. Gautam R Divan is a practising Chartered
Accountant and is a Fellow of the Institute of
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Chartered Accountants of India. Mr. Divan was the

Former Chairman and Managing Committee Member
of Midsnell Group International, an International
Association of Independent Accounting Firms and has
authored several papers of professional interest. Mr.
Divan has wide experience in auditing accounts of
large public limited companies and nationalised
banks, financial and taxation planning of individuals
and limited companies and also has substantial
experience in structuring overseas investments to and
from India.
 Mr. Ranjan Pant is a global Management Consultant
advising CEO/Boards on Strategy and Change
Management. Mr. Pant, until 2002 was a Partner &
Vice-President at Bain & Company, Inc., Boston,
where he led the worldwide Utility Practice. He was
also Director, Corporate Business Development at
General Electric headquarters in Fairfield, USA. Mr.
Pant has an MBA from The Wharton School and BE
(Honours) from Birla Institute of Technology and
Sciences.
 Mr. Ravi Narain is the Managing Director & CEO
of National Stock Exchange of India Limited. Mr.
Ravi Narain was a member of the core team to set-up
the Securities & Exchange Board of India (SEBI) and
is also associated with various committees of SEBI
and the Reserve Bank of India (RBI).
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 Mr. Deepak M Satwalekar is the Managing

Director and CEO of the Company since November,
2000. Prior to this, he was the Managing Director of
HDFC Limited since 1993. Mr. Satwalekar obtained a
Bachelors Degree in Technology from the Indian
Institute of Technology, Bombay and a Masters
Degree in Business Administration from The
American University, Washington DC.
 Ms. Renu S. Karnad is the Executive director of
HDFC Limited, is a graduate in law and holds a
Master's degree in economics from Delhi University.
She has been employed with HDFC Limited since
1978 and was appointed as the Executive Director in
2000. She is responsible for overseeing all aspects of
lending operations of HDFC Limited.

ORGANISATIONAL STRUCTURE

The organization at HDFC SLIC consists of two departments

channel and retail. The head of the channel department is
called as CDM i.e. channel development manager and the
head of retail is called as DSM i.e. Direct Sales Manager.
Under the channel there are recruitment officer, recruitment
consultant, managemet trainee and job consultant which all
perform the task of recruiting agents (financial consultants)
who procure business for the organization. All have to report
to CDM about any case. On the other hand under the retail
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department there is SDM (sales development manager) who

too recruit agents for the organization.

ORGANISATIONAL STRUCTURE

CHANNEL RETAIL
(CDM) (DSM)

RECRUITMENT OFFICER SDM

RECRUITMENT CONSULTANT FC (agent)

MANAGEMENT TRANIEE/
JOB CONSULTANT

FC (agent)
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WHAT IS RECRUITMENT?

“The art of choosing men is not nearly so difficult as the

art of enabling those one has chosen to attain their
full worth”.

Recruitment is the process by which organizations locate and

attract individuals to fill job vacancies. Most organizations
have a continuing need to recruit new employees to replace
those who leave or are promoted in order to acquire new
skills and promote organizational growth. Recruitment
follows HR planning and goes hand in hand with selection
process by which organizations evaluate the suitability of
candidates. With successful recruiting to create a sizeable
pool of candidates, even the most accurate selection system is
of little use. Recruiting begins when applications are bought
in and end when the same is finished. The result is the pool of
applicants, from where the appropriate candidate can be
selected

WHY RECRUIT?

• Developing new agents is critical to the long term

viability of the insurance industry
• Current producers are reaching the later stage of their
career-50% of affiliated agents are 48 years or old,
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and 505 of independent producers are 56 years or

older.
• On an average only 11% of career agents stay with the
same company for 4 years.
• Companies are competing with other organizations to
attract shrinking pool of experienced agents.
• Recruitment is not just adding new bodies to an
organization; it is acquiring and keeping new quality
agents.

WHAT ARE AGENTS?

An agent is the representative of an insurance company who

sells different policies or products to its client. Another term
used for insurance agents is advisors; this term was used by
reliance life insurance company ltd. it is a person who we
recruit and who in turn procures business (insurance
premium) for the organization. They are the most important
link between the market and the company.
Today in life insurance companies advisors are known to be
the backbone of the whole system. Advisors/agents do not
work on monthly payroll basis; they receive a certain
commission on the policies they sell to the clients.
Before a person becomes an advisor/agent he/she has to
undergo training according to IRDA norms, which is
compalsary.70-75% of profits gained in life insurance
business is through advisors/agents.

SOURCES FOR AGENTS

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• Personal network

(My first 100 is an effective tool to prospect the right

individual from ones natural

market. After listing down of 100 names of people

from the natural market.

names are qualified on quality score and then

recruitment activity takes place.)

• Referrals

• Industry seminars

• Associations & clubs

• HNI ladies forum

• COI- centers of influence

• Advertisements In appropriate journals, media

RECOMMENDED CRITERIA (3 Q SCORE)

• More than 30 years of age

• Graduate(minimum)

• Living in the same area since past 3 years

• Well networked
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• Family income of more than Rs 3 lacs

PREFFERD QUALITIES

• Passion

• Result oriented

• Well networked

• Good communication skills

• Need for recognition

• Need for money

ROLE OF AGENTS

To provide ongoing financial advice for his/her clients:

• Identify future clients

• Making appointments
• Conduct financial review meetings with
prospects/clients.
• Close sales
• Get referrals
• Provide service to clients.
• Follows internal sales and reporting system.
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WORKING ENVIRONMENT OF ADVISOR/AGENT

• To be a part of world-class sales team.

• Work from your own office or residence.
• Work full time or part time
• Earn Commission, Bonus & Incentives.
• No upper limits on earnings.
• Flexible career.

OPPORTUNITIES FOR ADVISOR/AGENT

• No startup capital required.

• Flexible working environment.
• Be your own boss.
• Unlimited earning potential.
• To be a part of a world-class team.

MOST PREFFERD PROFILES

• Housewives

• Businessmen

• Accountants/financial consultants

• Sales person employed in private /public companies

• Office bearers of leading clubs/associations

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• Consistent LIC MDRT/COT Agents

• VRS/retired people

• Ex servicemen

• Teachers

HOW AN ADVISOR /AGENT WORK?

• Firstly the advisor or gent has to make a list of 100

people that he or she knows.

• Then the advisor/agent makes a call to these clients

and tries to fix an appointment.

• When the appointment is fixed the advisor/agent

meets the customer and tries to sell the product.

• After that the agent/advisor asks for the reference of

maximum people from the client.

• The reference is asked to make future calls to those

clients and the whole procedure is repeated again.

TO WHOM DOES THE ADVISOR REPORTS?

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An Advisor/Agent are the most important link between

market and the company. They procure business to the

organization. There is no working hours and any particular

day on which advisor/agent has to report in the office. An

advisor can do his/her operations from any branch of the

company located anywhere in the country. He/she has to

report about the case to their SDM.

WHY HDFC SLIC IS BETTER?

• Investment returns: investment returns and business

growth provided by HDFC is validated by bajaj
Capital report. HDFC pacify the need of invertors up
to healthy level and make the strong relationship with
them.

• Financial Background and Experience: HDFC

existing in the market since 1977. It has a very
handsome experience in the field of finance because it
completely involved in finance Sector only where as
the others are running in many other field also like
Reliance (Petroleum, Textile, Telecom etc.)

• Ethics and Values: HDFC is an ethical and cultural

organization which prevents the false selling and
prohibits the false commitment to the customer.

• Sales Force: Properly trend licensed and Educated

People are the strength of the company. So that they
could give the best customer service.

• Huge branch network HDFC is having 450 branches

in all over the country.
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• Online accessibility: It makes the process faster and

makes the customer delighted.

TOP 5 USP’S OF HDFC (Unique Selling Proposition)

1. IST private sector life insurance Company to be

granted a license.

2. Declared bonus every year from the day of

incorporation (only company.)

3. Provides fast service to the customers in terms of

claim.

4. Best insurer according to Outlook.

5. Well supported by foreign partner Standard Life, U.K

which was recently voted ' company of the decade' in

U.K by the Independent Brokers called IFAs.

ICICI-THE MAJOR COMPITETOR OF HDFC

ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank - one of India's foremost financial
services companies-and Prudential plc - a leading
international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 47.80
billion, with ICICI Bank holding a stake of 74% and
Prudential plc holding 26%.
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We began our operations in December 2000 after receiving

approval from Insurance Regulatory Development Authority
(IRDA). Today, our nation-wide team comprises of 2099
branches (inclusive of 1,116 micro-offices), over 276,000
advisors; and 18 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a

National Insurer Financial Strength rating of AAA (Ind) from
Fitch ratings. For three years in a row, ICICI Prudential has
been voted as India's Most Trusted Private Life Insurer, by
The Economic Times - AC Nielsen ORG Marg survey of
'Most Trusted Brands'. As we grow our distribution, product
range and customer base, we continue to tirelessly uphold our
commitment to deliver world-class financial solutions to
customers all over India.

LICENSING PROCESS

1) REGISTRATION

Documentation required for acquiring license

Forms

• Agency application form

• Form VA

• Exam form

• Agreement copy(all pages to be signed

by FC)

Supporting personal documents

• 9 passport size photograph

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• age poof

• proof of education

• proof of identity

• proof of residence

• PAN card o PAN application

2) IRDA TRAINING

All the candidates have to undergo and

complete 50 hours of IRDA
training. There are two types of training off line
(class room) and online
training.

3) IRDA EXAMINATION

Recruitment examination can be done by 2

modes, on line and off line.
Exams are conducted by insurance institute of
India (III).

IMPORTANCE OF TRAINING

Continuous training and upgrading technical, behavioral and

managerial skills is a way of life in HDFC SLIC. HDFC
SLIC encourages agent or sub-broker to hone their skills
regularly to enable them to face the challenges of the
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changing requirements of customers that fit market up and

down.
Training needs analysis is done on a regular basis and
systematic methodologies are ensured that skills and
capabilities of all agents are constantly upgraded to enable
them to perform in the challenging work. There is special
training session at regular time period in local branch to all
financial consultant and agents about new scheme and to
improve their effectiveness.

The successful candidates of the IRDA EXAM are given the

product training. The
Primary purpose is to become quite conversant with the
product that one sells. In
Other words, product knowledge is very important for any
advisor. Product knowledge is not just about knowing the
broad terms and conditions of the various schemes of
INSURANCE. The advisors are explained about the schemes,
the terms related with it, the benefits it provides to investor.
This training is aimed at making the advisors fully equipped
with the companies’ product information. This training is
aimed at making
the advisors experts in selling the life insurance products.
This gives the advisors a systematic framework which they
can follow so as to attract the customers and be effective in
their work. Later the agents are trained on products, need
analyses and how to deliver the message to the market.

SWOT ANALYSIS

STRENGH

• Good brand name of the company all over India

• Expertise in the field of mutual fund

• Flexible products
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• Strong communication network all over the country

• Sound financial resources of the company

WEAKNESS

• Less awareness regarding mutual fund among

investors

• Cannot trap rural market

• Yet to build strong distribution network

OPPERTUNITIES

• Untapped rural market

• Lack of competitive product to suit clients investment

objective

THREATS

• The numbers of players are increasing which further

increases the competition

• Customer’s mindsets are still rigid and they still prefer

traditional pattern of investments.

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METHODOLOGY
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KEY OBJECTIVE – To study the recruitment

process of agent/advisor

TYPE OF RESEARCH - Exploratory (observational

study)

DATA SOURCES -

The study uses both primary as well as secondary

data.

• Primary sources

Personal observation

Friends

Direct interview

Telephonic interview

• Secondary sources
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Gathering information from the documents available

at the HDFC‘s intranet

Company’s website

Recruitment to licensing process

1. LEAD- The process of recruitment to licensing policy

starts from generating leads which means a pre
requisite condition for getting a stipend in your
account. The lead generation means aspiring a
candidate for getting a license to do business or
earning a commission by selling the various products
or services. The lead starts with listing down of 100
names of people from one’s natural market. once the
lead generated by initial trainee of bringing a
candidate then the particular candidate has to go
through the certain quality checks on the basis of
which company decides that whether this person is
prospect for the company.

2. PROSPECT - The certain quality checks are Passion,

Result oriented, Well networked, Good
communication skill, Need for recognition, Need for
money. When we sure about that prospective
candidate then we allow them to be recruited for the
company.

3. RECRUIT – Then the procedure of documentation

(form filing) takes place. Once the form get filled and
checked by ASO (ASSISTANT SUPREDENDENT
OFFICER) it get login and after 3-4 days the
candidate get their login id. After this the candidate
has to go through the IRDA training which is of two
type’s offline and online.

If the candidate has opted for offline mode i.e. class

room type of
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training then he/she has to go through training of 7-

days from 9.30am-
6.30pm with lunch facility provided. This training is
about various
products of HDFC-SLIC and about the insurance
sector. It’s also
known as manual training.
Whereas, the other form of training is online training in
which a
candidate has provided a candidate id and password in
which a
candidate has to sit on the computer for 6-8hrs a day
and the report
back of what they have done today till their exam is
scheduled. This
type of training is basically for the people who opted
for part –time.
Some times people also opted for the refresher training
which is of 2/3
days. This type of training is generally opted by
professionals who
don’t have time for both the trainings.

4. IRDA EXAM- Once the training part is completed the

candidate get
their loc- letter of completion. Which means now the
candidate is
ready for the IRDA exam. After a week of loc the date
of exam is
scheduled at the certain exams centers with proper
logistics. The
exam is of 1-hour an the result will be a candidate is
able to score
50% or not.
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Recruitment to licensing process

50 hrs training Exam centers

Generation
Business
Logistics
Quality check Online/manual

BOP Refreshers

IRDA
Lead Prospect Recruit Activation
Exam License

Failed/absent Re-appear

5. LICENCE - If candidate clears the exam he/she get a

license and license get
activated one he/she brings the business for the
company but if candidate fails or
absent at the time of exam then he/she has to
reappear with dd of 425/- and again
this process follows and person get a required
stipend.
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6. ACTIVATION – After getting the license a candidate

is ready to procure business
for the organization.

RESU
LT
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RESULT

The wider the rims of the recruitment funnel the more will be
the recruitment of agents. So one should gather as many
names as possible. The advisor has to go through the well
defined recruitment process. The stages of recruitments are
highly structured .Remember the recruitment formula:

25 CONTACTS 10 FOR INTERVIEW

2 SELECTED

HDFC has well defined progression path for its agents with
rewards and recognition.

BASIC UNDERSTANDING

In today’s rapidly changing business environment,

organizations have to respond quickly to requirements for
people. The Financial market has been witnessing growth
which is manifold for last few years. Many private players have
 HDFC STANDARD LIFE
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entered the economy thereby increasing the level of

competition. In the competitive scenario it has become a
challenge for each company to adopt practices that would help
the organization stand out in the market. The competitiveness
of a company of an organization is measured through the
quality of products and services offered to customers that are
unique from others. Thus the best services offered to the
consumers are result of the genius brains working behind them.
Human Resource in this regard has become an important
function in any organization. All practices of marketing and
finances can be easily emulated but the capability, the skills
and talent of a person cannot be emulated. Hence, it is
important to have a well-defined recruitment policy in place,
which can be executed effectively to get the best fits for the
vacant positions. Selecting the wrong candidate or rejecting the
right candidate could turn out to be costly mistakes for the
organization. Therefore a recruitment practice in an
organization must be effective and efficient in attracting the
best manpower.

I have learnt lot of things in this internship. What I have

analyzed in this valuable internship is that convincing
customers is an art. An agent faces different types of customers
which require different methods to deal with them. A customer
can be convinced by telling them how they can get benefit out
of it as 50% of them are unaware of insurance policies and
various schemes. Through this I got a little picture of the
professional world. Internship gave me a reasonable
 HDFC STANDARD LIFE
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understanding of how agent work and what qualities they must

possess to do good business.
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RECOMMENDATIONS AND
SUGGESTIONS

RECOMMENDATIONS & SUGGESTION:

Agents are the lifeblood of the insurance industry’s

distribution channel. They are the
 HDFC STANDARD LIFE
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Main force that bring business to the company. Unless and

until the agents are
Qualified and have the caliber to understand the current
market scenario. They cannot
Remain long in the business. Hence, an optimally selected
sales force in the need of the
hour, for an industry like insurance.

i. An aggressive advertising campaigning should be done to

encourage more people to invest.
ii. HDFC SLIC is doing comparatively less in marketing
industry compared to other players. So it should try to
increase its marketing and advertising related activities.
iii. The company should undertake campaigns, road shows,
advertisements and other publicity measures to create
awareness of different schemes in market
iv. The company should arrange seminars and presentations
giving detail about securities and benefits of investment
in various insurance products..
v. Better and quicker services should be provided to
customers
vi. Sales promotion method should be adopted
vii. All the documents should reach customer on time
viii. Customer should always be updated with required
information

ix. A very small part market has been covered by HDFC

SLIC .it can increase the
circle of its business in small and rural areas of every
state and cities of India where
 HDFC STANDARD LIFE
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they will find huge amount of business.

x. To uproot the investment level the company should give

training programmed to
financial agents who approach the investor for the
investments. And they should be
aware of all the benefits of the INSURANCE
INDUSTRY.

CONCLUSION
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Conclusion

Based on the answers given in the interview with different

agent/advisor (sample size 30)
I came to know that there are many career options available
for an advisor like he/she can become an SDM (Sales
development manager) →BM (branch manager) →TM
(territory manager) →RM (regional manager) and can even
start up its own business.
The biggest motivational factor for an individual to become
an agent
Is money “money induces work motivation”. Though other
factors like working environment within the organization,
financial incentives and recognition of work too plays
important role but money is the basic factor that is the
indication of ones status in the society. In the competitive
scenario it has become a challenge for each company to stand
out in market .It is the need of an hour to posses some quality
traits like patience and understanding customers needs to
procure business for the organization. An individual should
have lot of patience. It allows prospects to become clients.
One should not forget that” customers are the king”. Finding
out the clients needs and presenting a right product is the
foundation of any business.

In this stiff competition the challenge that most of them faces

is to convince a customer. As it’s been said that Convincing
is an art that one should possess in order to do good business.
The success of an individual depend upon the amount of time
 HDFC STANDARD LIFE
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that he/she gives to his /her work .In business there is no

magic, its just all about incremental growth and lot of hard
work.

In a nutshell unless and until the agents are Qualified and

have the caliber to understand the current market scenario
and the customers needs they cannot Remain long in the
business.
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BIBLOGRAPHY

WEBSITES

www.hdfcinsurance.com

www.iciciprulife.com
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ANNEXURE
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INTERVIEW SHEDULE

NAME

AGE

CONTACT NUMBER

Q.1 How large is your client base?

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Q.2 The major challenge for an advisor /agent according to

you?

Q.3 what is the greatest motivational factor for an individual

to become an

Agent/Advisor?

Q.4 The reason that comes out to be the success for an

agent?

Q.5 what is the most important quality trait that you think
should be in an agent to do

good business?

Q.6 what are the career options available for an advisor?

\
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