Intership Program Final Report On

8/14/2019 Intership Program Final Report On

1/30

INTERSHIP PROGRAM

FINAL REPORT

ON

HDFC STANDARD LIFE INSURANCE PVT LTD

SUBMITTED TO

FACULTY GUIDE

SUBMITTED BY

VINCY

1
http://www.hdfcinsurance.com/index.aspx


2/30

DECLARATION

I Geo, hereby declare that the Summer Internship Program Final

Evaluation Report On HDFC Standard life insurance submitted to the Madras

University in the partial fulfillment of the degree of the Master Of Business

Administration is a project work doneby me under the guidance of Mrs ,

Faculty Guide of College, Thrissur.

Date: VINCY

Place

2


3/30

ACKNOWLEDGEMENT

I Vincy, express my deep sense of gratitude to Mrs. , Faculty Guide,

Madras National College, Thrissur, for her valuable training, guidance and

suggestion in the completion of the project.

I am greatly thankful to Mr. Sushil P.K (Company Guide) who guided me at

every stage of this training by giving his valuable suggestions and

recommendations.

Last but not the least, I am grateful to all people who directly or indirectly

helped me in preparing this report.

Vincy

CONTENTS

3


4/30

Introduction

Insurance industry in India

Overview of the company

Products

Distribution network

Board of directors

Associate companies

Who is who?

About the competitors

About the customers

Business objectives

Target/Task

Strategy

Analysis of performance

Limitations

Learning in ET

Awards / Rewards

Conclusion

IP DETAILS

INC Center : Thrissur

4


5/30

Enrollment No. :

Name of the student : Vincy

Program : MBA

Name of faculty guide : Mrs

Name of the company : HDFC Standard life insurance

Name of the company guide : Mr. Sushil P.K

Designation of the company Guide : C.D.M

INTRODUCTION

Executive training itself is Business, Communication, Leadership, Team

Building and Employee or Student Training Program. Training refers to teaching

of vocational or practical skill and knowledge that relate to specific useful

competencies. It forms the core of apprenticeship and backbone of content at

technical college and polytechnics.

5


6/30

As my project, I get an opportunity to do my SIP program in HDFC

Standard Life Insurance Company Ltd. Its worlds one of the top insurance

company.

Insurance is a form of risk management primarily used to hedge against the

risk of contingent loss. Insurance is defined as the equitable transfer of the risk of

a loss, from one entity to another, in exchange for a premium.

Insurer- is the company that sells the insurance.

Insurance rate- is the factor used to determine the amount called premium,

to be charged for a certain amount of insurance coverage.

Type of Insurance

Health

Casualty

Life time

Property

Liability

Credit

Other type

Insurance financing vehicles

Insurance companies

May be classified in to two types

Life insurance

6


7/30

General insurance

Life Insurance

Life insurance provides monetary benefits for family or other designated

beneficiary, and may specifically provides for income to an insured persons

family. Life insurance sells life insurance, annuities and pension business is very

long term nature. Coverage for life assurance or a pension can lower risks over

many decades. It is important to understand the different types of life insurance.

There are two main types: Term and Whole life. Term life insurance is insurance

that you buy for set period of time, and then it expires. Whole life insurance is

what you buy to cover you for your entire life. As long as you pay your premiums,

whole life insurance wont expire. There are pros and cons to each type of life

insurance, and what you get depends upon your needs.

General insurance

General insurance companies sell other types of insurance. It covers usually

a shorter period such as one year.

INSURANCE INDUSTRY IN INDIA

7


8/30

Insurance sector in India is one of the booming sectors of the economy and

is growing at the rate 15-20 per cent annum. Together with banking services, it

contributes to about 7 per cent to the countrys GDP. Insurance is a federal subject

in India and insurance Industry in India is governed by Insurance Act, 1938, the

life Insurance Business (Nationalization) Act, 19722, Insurance Regulatory and

Development Authority (IRDA) Act, 1999 and other related acts.

History

The origin of life insurance in India can be traced back to 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. It was

conceived as a means to provide for English Widows. In those days a higher

premium was charged for Indian lives then the non-Indian lives were considered

riskier for coverage. The Bombay Mutual Life Insurance Society that started its

business in 1870 was the First Company to charge same premium for both Indian

and non-Indian lives. In 1912 insurance regulation formally began with the

passing of Life Insurance Companies Act and Provident fund act.

By 1938, there were 176 insurance companies in India. But a number of

frauds during 1920s and 1930s tainted the image of insurance industry in India. In

1938, the First comprehensive legislation regarding insurance was introduced with

the passing of Insurance Act of1938 that provided strict State Control over

insurance business.

Insurance sector in India grew at a faster pace after Independence. In 1956

Government of India brought together 245Indian and foreign insurers andprovident societies under one nationalized monopoly corporation and formed Life

Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs.5crore.8


9/30

The (non-life) insurance business/general insurance remained with the

private sector till 1972. There were 107 private companies involved in the business

of general operations and their operations were restricted to organized trade and

industry in large cities. The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with effect from January

1, 1973.The 107 private insurance companies were amalgamated and grouped into

four companies: National Insurance Company, New India Assurance Company,

Oriental Insurance Company and United India Insurance Company. These were

subsidiaries of the General Insurance Company (GIC).

In 1993, the first step towards insurance sector reforms was initiated

with the formation of Malhotra Committee, headed by former Finance

Secretary and RBI Governor R.N. Malhotra. The committee was formed to

evaluate the Indian insurance industry and recommend its future direction with the

objective of complementing the reforms initiated in the financial sector.

Privatization of insurance sector

When we critically examine the opportunities which were available before

the globalization of Indian market ,it can be said that LIC failed to cash it. One of

the main reasons for the low insurance penetration in India was ineffective

distribution and marketing strategies adopted by LIC. The company reportedly

never had any strategic marketing game plan, and due to its monopolistic nature

the need for serious marketing efforts was never felt. The advertising initiativeswere limited to some print and electronic media advertisements, which typically

talked about LICs products being great tax saving tool for salaried individuals

9


10/30

who came under the income-tax bracket. Despite all this, LIC was synonymous

with insurance in India and it had established an enviable brand image for itself,

especially in the rural areas and small towns. However, with the entry of new

players, the insurance market changed almost overnight. The private insurers

seemed all set to make the industry marketing-driven, wherein technical and

service excellence would be the key factors of success. The private companies, in

a bid to make their presence felt and their brand noticed, initiated a series of

aggressive marketing and promotion initiatives, something that buyers of

insurance were not accustomed to.LIC had made Indian insurance industry a

sellers market, where customer had no option other than to buy its (LICS)product.

LIC had also not tried to explore the market but were happy what they were

getting effortlessly.

Major players in India

Life insurers

Allianz Bajaj Life Insurance Co.Ltd

AMP Sanmar Assurance Co.Ltd

Birla Sun Life Insurance Co.Ltd

Dabur CGU life insurance company Pvt Ltd

10


11/30

HDFC standard life insurance co.ltd

ICICI prudential life insurance co.ltd

ING vysya life insurance co.ltd

Life Insurance Corporation of India

Max newyork life insurance co.ltd

Metlife india insurance co.pvt ltd

Om kotak mahindra life insurance co.ltd

SBI life insurance co.ltd

Tata AIG life insurance co.ltd

N on life insurance or general insurance

Bajaj Allianz General Insurance Co.Ltd

ICICI Lombard General Insurance co.ltd

IFFCO Tokyo General Insurance co.ltd

National Insurance Co.Ltd

OVERVIEW O F THE COMPANY

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august

2000. It is a joint venture between Housing Development Finance Corporation

Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint

venture partners being one of the leaders in their respective areas came together in

11


12/30

this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company

Limited.

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has

given the company new directions and has helped the company achieve the status

it currently enjoys. HDFC Standard Life brings to you a whole range of insurance

solutions be it group or individual or NAV services for corporations; they can be

easily customized as per specific needs. HDFC Standard Life Insurance India

boasts of covering around 8.7 lakh lives by March'2007.

PRODUCTS IN HDFC

Protection Plans

Term Assurance Plan

Loan Cover Term

Assurance Plan

Investment Plans:

Single Premium Whole Life Plan

Pension Plans:

Personal Pension Plan

Unit Linked Pension Plan

Savings Plans: Endowment Assurance Plan

Unit Linked Endowment

12


13/30

Unit Linked Endowment Plus

Money Back Plan

Children's Plan

Unit Linked Youngstar

Unit Linked Youngstar Plus

DISTRIBUTION NETWORK

HDFCs distribution network spans 250 outlets which include 52 offices of

HDFCs distribution company, HDFC Sales Private Limited (HSPL). In addition,

HDFC covers over 90 locations through its outreach programmes.

Distribution channels form an integral part of the distribution network with

home loans being distributed through HSPL, HDFC Bank Limited and other third

party Direct Selling Agents (DSA).

To cater to non-resident Indians, HDFC has an office in London and Dubai

and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar,

Jeddah and Riyadh in Saudi Arabia.

Customer Service

We at HDFC Standard Life are committed to maintaining the highest level of

customer service. Hence we have tried to provide you with all the information youmay want to seek regarding procedures such as paying your premium, various

policy servicing options, processing a claim and so on.

13


14/30

1. My accounts

2. premium payment option

At our branches

Post or courier Online payment

Drop boxes

Credit cards

Easy bills

3. Bonus

4. Contact us

5. Policy servicing

Change in personal details

Change in policy benefits

Others such as loss of policy document, policy cancellation in the Free-Look

Period

6. Lapsation and Revival

7 Claims

14


15/30

HUMAN RESOURCE S

Board of D irectors

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).

Sir 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. Sir Crombie is a fellow of

the Faculty of Actuaries in Scotland.

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.Ms. Marcia D. Campbell is currently the Group Operations Director in the

Standard Life group and is responsible for Group Operations, Asia Pacific

15


16/30

Development, Strategy & Planning, Corporate Responsibility and Shared Services

Centre. Ms. Campbell joined the Board of Directors in November 2005.

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.

Mr. Norman K. 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 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.

16


17/30


18/30

spearheading several key initiatives. As one of the founding members of HDFC

Standard life, Mr. Parasnis has been responsible for setting up branches, driving

sales and servicing strategy, leading recruitment, contributing to product launches

and performance management system, overseeing new business and claims

settlement, customer interactions etc

Associate Companies of HDFC

HDFC Limited

HDFC Bank

18
http://www.hdfcbank.com/personal/default.htmhttp://www.hdfc.com/


19/30

HDFC Mutual Fund

HDFC SALES

HDFC ERGO General Insurance

Who is who?

Kavitha Seshunni(Vice President)

Suvendu Pande(Ass. V.P.)

19
http://www.hdfcergo.com/http://www.hdfc.com/others/popup/about_us/hlsil.htmhttp://www.hdfcfund.com/


20/30

Krishna syam sunder(Territory Manager Chanel Development)

Ajitsh.k. (Area .M.C.D)

Sushil(C.D.M)

ABOUT THE COMPETETORS

The following companies are present in the life insurance industry in India. all

these companys are the competitors

Bajaj Allianz life insurance company limited

20


21/30

Birla sun life insurance Co.Ltd

ICICI Prudential life insurance

Life insurance corporation of India

Met life India insurance company pvt.Ltd

SBI life insurance Co.Ltd

Tata AIG life insurance company limited

Reliance life insurance company Ltd

Aviva life insurance

The main competitor of HDFC standard life is LIC

ABOUT THE CUSTOMER

High level income people

HDFC provide premier life gold plan for high level income people.

21


22/30

Business persons

The business persons have an opportunity to invest in market with safe and

Secured. Will get insurance coverage like life time gold

Middle level income people

HDFC provide so many plans for middle level income people. Will get

benefit as pension.

Family

Smart kids plan is especially for family Who are interested to invest in market

share? These persons all their customers

B US INE SS OBJECTIVE

To get a practical exposure of theoretical knowledge

To get an experience on marketing

To prove my skills in marketing

22


23/30

Take this opportunity to become a part of MNC

To learn the difficulties of person who are working in marketing filed

To study the requirements for satisfying customers.

To take this opportunity as chance to improve interpersonal skills and

communication skill

Targets/Tasks

The initial target provided by the company is to recruit 12 Financial

Consultants each worth Rs.20,000 for the total of 2,40,000 within 13 weeks.

Strategies

23


24/30

For my task, I entered to natural market. First I decided to go and meet my

relatives for doing my business. Why I selected it is, that to get an idea about the

customers questions. I felt comfort to answer for their questions and through this I

got a rough idea about the customers response towards persons who are working

in this area. Through this way I build a self confidence in my job. If I meet a

person who is not willing to take a IRDA licence, then I-try to get maximum

reference from him. In this way I made many reference to consider. This way I

continued in convincing others and try to make a personal attachment by giving

maximum help which I can do.

Every one in the market has to maintain their own strategies to achieve their

goals. It is not a single action; it is a series of actions that we have to follow. My

strategies and plans for my executive training:-

Data Base Creation

For every marketing executive the very first task is to create a database of

customers. I had created the database for my ET from various sources such as:- Natural market

Existing customers

Directories

Activities

References

ANALYSIS OF PERFORMANCE V/S TARGET

24


25/30

My target was to recruit 12 Financial Consultants each worth Rs.20, 000 for

the total of 2, 40,000 with in 13 weeks. The below table shows an analysis of my

target and achievement for the 13 weeks.

No of weeks Targets Achievements

1 20000 20000

2 20000 20000

3 20000 20000

4 20000 20000

5 20000 20000

6 20000 20000

7 20000 20000

8 25000 30000

9 30000 35000

10 30000 32000

11 30000 32000

12 30000 35000

13 35000 40000

25


26/30

26


27/30

LIMITATIONS/PROBLEMS DURING ET

General Problems

Lack of knowledge about the Insurance among the people.

Most of the people lack knowledge about the insurance and its benefits

especially in rural areas. Most of the people think that they will lose their

money.

Lack of market support

From the very beginning of my ET the market shows a downward trend. So the

existing customers were not ready for any further investments as they had

already suffered a huge loss from the market fall.

Specific Problems

Time constraint to meet customers

Attitude of customers

Some people are having a negative attitude towards the insurance, towards the

company and also sometimes towards the marketing executives due to several

reasons such as:-

They seen us for the first time

Visiting them alone

No identity to prove myself

Lack of faith

27


28/30

LEARNING IN THE EXECUTIVE TRAINING

I got the practical experience in the marketing field. It is an opportunity to

study the real executive work. It was a chance to get a clear picture of an

executive job

Learned about the customer perceptions about the insurance products.

Understood the method and distribution channels of HDFC.

Got exposure to the corporate culture.

My attitude was changed through this training.

Additional benefits in the training period

NCFM Certificate (Capital Market Module)

IRDA License

AWARDS RECIEVED DURING EXECUTIVE TRAINING

Received an Incentive of Rs.4, 000 .28


29/30

Company given by a Pre-Placement offer to continue working in

their organization.

CONCLUSION

From the Executive Training I got practical experience in how to deal with

the customers and how to canvas them. It is quite different from the class room

teaching and it was an exposure to the real business or marketing environment. I

took this training as an opportunity to learn market situation. Definitely the

internship program helped me to improve my skills and performance. It was an

entry to the corporate culture. I have faced a lot of challenges. It helped me to

29


30/30

know about the insurance sector especially about HDFC Standard Life Insurance

Company. It also helped to deal with various products and services offered by the

company. Any way it was a nice experience for me.I have achieved the target set

by the company and a lot of incentives are offered by the company. The executive

training period is an asset for me.

30

Documents

Intership Program Final Report On