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“REVIVING THE RESIGNATION OF ADVISER IN HDFC”

Chapter – 1

INTRODUCTION

Introduction

HDFC Standard Life Insurance, one of India’s leading private life insurance

companies, offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited (HDFC),

India’s leading housing finance institution and Standard Life plc, the leading provider

of financial services in the United Kingdom.

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

26.00% of equity in the joint venture, while the rest is held by others.

HDFC Standard Life’s product portfolio comprises solutions, which meet

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

Customers have the added advantage of customizing the plans, by adding optional

benefits called riders, at a nominal price. The company currently has 32 retail and 4

group products in its portfolio, along with five optional rider benefits catering to the

savings, investment, protection and retirement needs of customers.

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

insurance companies with 568 branches servicing customer needs in over 700 cities

and towns. The company has a strong presence in its existing markets with a base of

2,00,000 Financial Consultants.

INDUSTRY PROFILE

INDUSREY STRECTURE

The Indian Banking Industry, which is governed by the Banking Regulation

Act of India, 1949 can be broadly classified into two major categories, non-scheduled

banks and scheduled banks. Scheduled banks comprise commercial banks and the co-

operative banks. In terms of ownership, commercial banks can be further grouped into

nationalized banks, the State Bank of India and its group banks, regional rural banks

and private sector banks (the old/ new domestic and foreign). These banks have over

67,000 branches spread across the country.

ST Aloysius institute of Management Studies and Information Technology 1


The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn

resulted in a significant growth in the geographical coverage of banks. Every bank

had to earmark a minimum percentage of their loan portfolio to sectors identified as

"priority sectors".

Commercial banks are the oldest and fastest growing intermediaries in India.

They are also the most important depositories of public savings and most important

disbursers of finance. For a financial system to mobilize and allocate savings of the

country successfully and positively and productively there must be a class of financial

institutions. The structure and working of the banking system are integral to a

country's financial stability and economic growth.

Industry-

The factors that influence the growth of banks are the following-

1. Increase in national income.

2. Increase in banking habit.

3. Expansion in banking facilities.

4. Inflows of deposits from Non Resident Indians.

Even though Public Sector Banking accounts for 78% of total banking

industry, use traditional ways of banking, Private sector banks have pioneered internet

banking , phone banking, ATM's and so on..

The banking industry is currently dominated by the following five top players-

5. Canara Bank- headed by Mr. M B N Rao (CMD)

The following pages will give a detailed insight in to HDFC Bank, its main

competitors and what problems the bank is facing with respect to account opening

delays

1. HDFC Bank - headed by Aditya Puri

2. ICICI Bank - headed by K.V.Kamath (MD & CEO)



3. State Bank of India - headed by A.K.Purwar (Chairman)

4. Citibank- headed by Walter Wrist on (CEO)

Housing Development Finance Corporation Limited, more popularly known

as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of

the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first

banks to receive an 'in principle' approval from RBI, for setting up a bank in the

private sector. The bank was incorporated with the name 'HDFC Bank Limited', with

its registered office in Mumbai. The following year, it started its operations as a

Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches

and over 3275 ATMs across India.

Amalgamations

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a

private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this,

HDFC and Times became the first two private banks in the New Generation Private

Sector Banks to have gone through a merger. In 2008, RBI approved the

amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits

of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000

crore and Balance Sheet size was Rs. 1,63,000 crore.

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it

in terms of information technology or communication systems. All the branches of the

bank boast of online connectivity with the other, ensuring speedy funds transfer for

the clients. At the same time, the bank's branch network and Automated Teller

Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of

its up-to-date technology, along with market position and expertise, to create a

competitive advantage and build market share.

Capital Structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5

billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of

equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs)



have around 28% of the equity and about 17.6% is held by the ADS Depository (in

respect of the bank's American Depository Shares (ADS) Issue). The bank has about

570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and

National Stock Exchange, while its American Depository Shares are listed on the

New York Stock Exchange (NYSE), under the symbol 'HDB'.

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a

joint venture between Housing Development Finance Corporation Limited (HDFC

Limited) - India's leading housing finance institution, and a Group Company of the

Standard Life Plc, UK. The Company is one of leading private insurance companies,

offering a range of individual and group insurance solutions, in India. Being a joint

venture of top financial services groups, HDFC Standard Life has adequate financial

expertise to manage long-term investments safely and resourcefully.

MARKET PLAYERS

TOP 10 PLAYERS IN INSURANCE COMPANIES

Life Insurance Company (LIC):

Life Insurance Corporation (LIC) came into existence on 1st September 1956

through the amalgamation of 154 Indian insurance companies, 16 non-Indian

companies and 75 provident. The amalgamation was achieved with the help of Life

Insurance Act passed by the Parliament in the same year. The LIC was created with

the goal of reaching all the insurable people in the country and providing them

financial coverage at a reasonable price. In the year 1956, LIC had 5 zonal offices, 33

divisional offices and 212 branch offices. With time there was a need for a branch

office at every district headquarter and many branches were opened, which raised the

pace of the organization.

LIC now has 2048 fully computerized branch offices, 100 divisional offices, 7

zonal offices and the corporate office. At present, online premium collection facility is

being offered in selected cities as LIC has tied up with some banks and service

providers. For providing customer satisfaction the organization has introduced various

schemes such as ECS, ATM premium payment facility, IVRS, Info centers which are

set up in various cities including Mumbai, Bangalore, Chennai, Kolkata, New Delhi,

Pune and many more. It has also come up with SATELLITE SAMPARK offices



providing easy access to policyholders. LIC has crossed many milestones and set

standards for itself fostering unmatched performance.

Objectives:

Some of the objects of Life Insurance Company are as follows:

Investing the money with obligation and using it in the best possible manner in

the interests of the policyholder and the community.

Bringing attractive savings plans and making them easily accessible to the

policyholders.

Giving attractive returns to the people and keeping in mind national priorities.

Being trustworthy to the customers and develop the spirit of corporate social

responsibility.

Spreading insurance in both rural and urban areas and covering all the

insurable persons at a reasonable cost.

Bringing in plans and policies favorable to the changing environment.

Providing efficient service and involving people in the organization for their

satisfaction.

Bajaj Allianz General Insurance Company Limited:

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited and Allianz AG of Germany. Bajaj Allianz General Insurance

came into existence on 2nd May 2001, when it got certification of Registration from

the Insurance and Regulatory Development Authority. Bajaj Auto has a share of 74%,

whereas Allianz has the remaining 26%. In the very first year, the company made a

strong position for itself in the industry and was reckoned amongst the top private

insurers. The premium income of the company as on 31st March 2006 was

Rs.1285crores, whereas the profit after tax made was Rs.52crores. Bajaj Allianz has a

Pan India network covering over 100 towns from Jammu to Thiruvananthapuram and

aims to spread its operations in many other cities.



The vision of the organization is to be the first choice for customers, and

provide job satisfaction to the employees and create shareholder value. The

organization strives to excel in its products and services, providing total customer

satisfaction. Bajaj Allianz serves customers in all areas of General and Health

Insurance as well as Risk Management. It has in-depth knowledge of the local market

and extensive distribution network with expertise, stability and experience. It has a

capital base of Rs.147crores, and is allowed to serve both the General and Health

insurance.

It has achieved AAA rating, by ICRA Limited and has the highest claims-

paying ability and a stable position in the market. In a 2006 survey, Business World

has rated it among the Most Respected Companies, putting it at No.2 position in

Insurance sector.

The Company provides the following products under general insurance are

Travel Insurance, Asset Insurance, Health Insurance, and Corporate Insurance.

ICICI Prudential Life Insurance Company:

ICICI Prudential is a joint venture between ICICI Bank and Prudential plc,

both having strong operations in their respective countries. ICICI bank is one of the

leading banks in India providing quality financial services and Prudential is an

international financial service provider headquartered at United Kingdom. ICICI and

Prudential have respective shares of 74% and 26%. The Company started operating in

December 2000. Currently, total capital with the company is Rs.18.15 billion.

ICICI Prudential was the first insurance company in India to receive a

National Insurer Financial Strength rating of AAA (Ind.) from Fitch ratings. It has

been given the honor of being among the Most Trusted Brands in the industry by

Economic Times for 3 consecutive years. It has a network of 450 branches, over 1,

50,000 insurance advisors and 18 bank assurance partners.

As the organization grows and develops, it keeps introducing new range of

products and services and enhancing the quality of plans and solutions given to the

customers. The distribution network is one of the best, and is spreading across the

length and breadth of the country. As on December 31, 2006, it had made imprints in

over 360 cities and towns in India. It has over 1, 75,000 advisors across the country,



serving clients with full commitment. It has tied up with ICICI Bank, Bank of India,

and Federal Bank, Lord Krishna Bank, some co-operative banks, NGOs, MFIs and

corporate for making inroads into the rural areas.

Products

Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers

several novels, customer-centric products for customers at every stage of life. The

products and services offered by the organization are in various fields, such as:

Savings & Wealth Creation Solutions:

Premier Life Gold

Life Link Super

Invest Shield Life New

Cash Plus

Cash Bank

Life Time Super & Life Time Plus

Save 'n' Protect.

Retirement Solutions:

Life Link Super Pension

Forever Life

Immediate Annuity

Life Time Super

Child Plans:

Education insurance - Smart Kid

Protection Solutions:

Life Guard

Home Assure

Group Insurance Solution



ICICI Prudential also offers Group Insurance Solutions for companies seeking

to enhance benefits to their employees.

Group Immediate Annuities

Group Term Plan

Group Superannuation Plan

Group Gratuity Plan.

ICICI Lombard General Insurance

ICICI Lombard General Insurance Company Limited is a joint venture

between ICICI Bank Limited and Fairfax Financial Holdings Limited. ICICI bank is

India's second largest bank; Fairfax is Canada-based, engaged in general insurance,

reinsurance, insurance claims management and investment management. ICICI

Lombard General Insurance Company commenced its operations in general insurance

business in August 2001.

ICICI Lombard is India's number one private insurance company; it is also the

first general insurance company to be given certification of ISO 9001:2000. The

company provides simple and fast documentation, fast claims settlement, online

policy issuance, and comprehensive product line.

It has also been given AAA rating by ICRA for having highest claims paying

ability. In the very first year of operations, it was able to reach financial breakeven

and achieve underwriting breakeven in the second year. Security is provided through

encryption and it is the first company to provide digitally signed documents. It has

been honored as the most Customer Responsive Company by the Economic Times.

Times of India have designated it as the Best Housing Insurance in the Smart Living

Awards by 360 degrees. It has also been awarded Gold Shield for "Excellence in

Financial Reporting". It is among the top three companies to be awarded the "General

Insurance Company of the Year" at the 10th Asia Insurance Industry Awards.

Products:

Business solutions:

Industrial All Risk



Fire and Special Peril

Electronic Equipment Insurance

Fidelity Insurance

Consequential Loss (Fire) Insurance

Tea Corp Insurance

Burglary Insurance

Machinery

Personal solutions:

Group Personal Accidents

Health

Health Insurance

Project Solutions:

Contractor’s All Risk

Contractor’s Plant & Machinery

Erection All Risk

Performance Guarantee

Liability Solutions:

Directors & Officers Liability

Product liability

Workmen’s Compensation

Event Insurance

Product Liability

Travel Insurance:

Senior Citizen Overseas Travel

Individual Overseas Travel

Corporate Overseas Travel

Domestic Travel

Birla Sun Life Insurance Company Limited



Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between

Aditya Birla Group and Sun Life Financial Inc. BSLI started functioning in March

2001 after getting the certificate of registration from IRDA.

Birla Sun Life Insurance Company Limited introduced unit Linked Life

Insurance Solutions in India. Within a short span of time it was able to establish itself

as a leading player in the Private Life Insurance Industry. It has been innovative and

come up with customer-centric products to provide safety and services. The company

has web-enabled IT systems for better customer services and a strong distribution

channel which is easily approachable. The company shows corporate governance and

a high degree of transparency in all business practices. It has professional knowledge

and global expertise of Aditya Birla Group. Birla Sunlife Insurance has been

providing first class financial solutions to its customers and has been amongst the top

three private sector life insurance companies.

Its mission is to be amongst the top players in the eyes of customers and the

first choice of insurance and retirement solutions to individuals and groups. These

innovative solutions are linked with global and technical expertise and are deployed

by a multi channel distribution network and enhanced technology.

The company aims at keeping all people associated with it - customers, clients,

stakeholders and employees- happy and fully satisfied. It wants to provide value

added products and services to the customers, job satisfaction to employees and

highest returns to the shareholders.

Qualities like integrity, commitment, passion, and speed are the core values of

the company. The products offered by the company are:

Individual Life:

Products:

Premium Back Term Plan

Birla Sun Life Term Plan Saving



Simply Life

Flexi Save Plus

Supreme Life

Life Companion

Flexi Cash Flow

Prime Life

Flexi Save Plus Children

Children's Dream Plan

Retirement:

Flexi Secure Life Retirement Plan II Riders

Critical Illness Plus Rider

Term Rider

Waiver of Premium

Critical Illness Rider

Critical Illness - Woman Rider

Accidental Death and Dismemberment Rider.

TATA AIG General Insurance

Tata AIG General Insurance Company Ltd. is a joint venture between Tata

Sons and American International Group, Inc. (AIG). The Tata Group is holding 74%

stake and the rest 26% is held by AIG. The company has got the expertise, knowledge

and strength of both the organizations.

Tata AIG General Insurance Company was founded on January 22, 2001. It

offers general insurance in various categories, such as automobile, home, personal

accident, travel, energy, marine, property and casualty and specialized financial

solutions. Jamsetji Tata founded Tata Group in 1860s. It has an estimated turnover of

around US $ 14.25 billion. It has spread its operations in various fields such as steel,

power, hotels, airlines, software services, communications, etc. Some of its major

projects have been Tata Tea, Tata Steel, Tata Chemicals, Titan, Tanishq, Voltas,

Westside and Tata Motors. Its imprints are made on the telecommunication and

technology sector. Regarding telecommunications, it is the largest international long



distance service provider. Approximately two- third of the equity of Tata Sons is held

by a host of national institutions in science and technology, medical services and

performing arts. By combining the ethical values with business acumen and fulfilling

its commitment to the nation, it has become one of the largest groups in India.

American International Group, Inc. (AIG) is the leading international player in

insurance and financial services. Its network spreads across 130 nations. AIG member

companies serve all types of customers, be it commercial or individual. AIG is among

the leading insurers and the largest underwriter of insurance. Aircraft leasing,

financial products and trading are some of the services offered by AIG. AIG has a

global expertise of fulfilling the customer-centric needs. It has specialized investment

management capabilities in equities, fixed income, alternative investments and real

estate. AIG's stock has been listed in the New York Stock Exchange as well as stock

exchanges in London, Paris, Switzerland and Tokyo.

The organization caters to individuals, small businesses and corporate.

Individual plans include motor, home, accident & health and travel insurance,

whereas corporate plans include accident & health, travel, energy, property, marine

and liability plans.

New India Assurance Company

Sir Dorab Tata founded New India Assurance Company on 23rd July 1919. It

has 1068 offices comprising of 26 regional offices, 393 divisional offices and 648

branches with more than 21,000 employees. It is one of the largest Non- Life insurers

in Afro- Asia and the first one to cross Rs.5000 crores of Gross Premium. It has a

global network expanding in countries like Japan, U.K., Middle East, Fiji and

Australia. Its international operations started in 1920 and have spread across 24

countries having a network of 19 branches, 12 agencies, 2 associate companies and 2

subsidiary companies. The company contributes 80% of total overseas premium in

India. The company has a highly qualified staff, which excels in both expertise and

knowledge and is trained to provide satisfaction to the customers. It is the only

company able to establish strong relationships overseas and has a record of successful

trading outside India. The performance has been outstanding and the company has

been able to maintain a strong position in the market.



It has been the pioneer in various fields such as:

Setting up an Aviation Insurance Department in 1946.

Handling the complete insurance requirements of the Indian Shipping Fleet.

Introduced its own Training School.

Pioneering the concept of 'Model Office Training'.

Creating department in Engineering insurance.

Satellite insurance.

The company wants to develop itself as the best general insurance company in

the industry. It is concerned about the society and community, and provides financial

security at reasonable prices. The company gives utmost importance to customer

needs and there is transparency in its operations. Some of the policies and schemes

introduced by the company are:

Public Liability Policy.

Jewellery Block Policy.

Pravasi Bharatiya Bima Yojana Policy

IFFCO Tokio General Insurance

IFFCO Tokyo General Insurance is a customer-centric company aiming to be

easily accessible and approachable to all sections of society. It offers products and

services that provide quality at reasonable cost. The organization has the deep

knowledge of IFFCO and thus developed a business plan that has both stability and

integrity. It has set global standards for itself and is the only private general insurance

company in India to make 5 consecutive years of experience. ITGI has been one of

the few companies to show underwriting profits within four years of operations.

The company focuses on delivering creative solutions to its customers. IFFCO

Tokio General Insurance has 273 employees present in 68 cities, dedicated to give full

satisfaction to the customers. It is the first company to underwrite mega policies for a

fertilizer and automobile client.

The Oriental Insurance Company Ltd

The Oriental Insurance Company Ltd. (OICL) is one of the general insurance

companies under the support of the General Insurance Corporation (GIC) of India. It



came into existence in the year 1947 and is one of the oldest organizations in India. It

caters to all sections and sectors ranging from MNCs to rural sector. The headquarters

of the company are situated at Delhi and it has 21 Regional Offices, 311 Divisional

Offices and 635 Branch offices.

It has a team of hard working employees, having the talent to take the

company to new heights. Also the company shows concern for both the employees

and customers. It provides special covers for large projects like power plants, steel

plants and chemical plants. It believes in actively participating in economic growth by

being a dynamic organization catering to the society with full commitment and

efficiency. The main objectives of the company are to serve the insurance needs of the

entire community, provide services at reasonable cost, and make optimum utilization

of the funds, maintaining global standards, minimization of losses and retention of

business.

HDFC Standard Life Insurance Company Limited

HDFC Standard Life Insurance Company Limited is one of the first

companies to be licensed by IRDA to operate in the Insurance sector. The company

came into existence on 14th August 2000. Both Crisil and ICRA have honored it with

AAA Ratings. Similarly Moody's and Standard and Poor’s have also honored it AAA

ratings. HDFC holds 81.4% share in HDFC and the remaining 18.6% stake is with

Standard Life. It integrates the strong expertise and stability of Standard Life and

HDFC.

The company aims to provide:

Innovative products to cater to different needs of different customers

Customer service of the highest order

Use of technology to improve service standards

Value for money for customers

Increasing market share

Professionalism in carrying out business

The values ingrained in the company are to provide financial security to

policyholders, maintain trust and keep innovating to establish it as a



business of insurance is risk. Insurance helps individuals and organizations to

reduce the financial risks of an adverse event. Insurance involves two parties:

(i) The insurance company(also known as the insurer)

(ii) The policy holder

There are various fundamental principles of insurance:

1. Indemnity: It means that in case of a loss the insurer will pay the insured only

the actual amount of loss and not the amount exceeding the amount of policy

2. Utmost good faith: According to this principle the insured is duty bound to

disclose all the necessary information and material facts which has a impact on

the contract of insurance and has a bearing on the risks involved.

3. Insurable interest: This means that the insured should have some benefit on the

subject matter insured by its existence and loss from its destruction

4. Causa proxima: It means that the cause for the damage should be one of the

perils that are mentioned in the contract of insurance.

5. Risk: Risk must attach to a policy for which the insurer undertakes to protect

the insured and for which the insured pays a premium to the insurer.

6. Mitigation of loss: It means that the insured should try to minimize the loss and

also take necessary steps to minimize the loss

7. Subrogation: When an insured has received the amount for the damage

occurred all the rights and remedies against the third party will pass to the

insurer from the insured.

8. Contribution: According to this principle if the loss is insured with two or more

insurance companies then during the time of loss the companies have to

contribute equally towards the loss.

MARKET SHARE

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 offices. It has international offices in

Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait

and Oman to assist NRI’s and PIO’s to own a home back in India. As of December

2008, the total asset size has crossed more than Rs. 95,000 crores including the

mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit

base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors.

Customer Service and satisfaction has been the mainstay of the organization. HDFC

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

customers for over 180 years. It currently has a 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 £125 billion in assets.

It is a leading pensions provider in the UK, and is rated by Standard & Poor's

as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard

Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money

Marketing Awards, and it was voted a 5 star life and pension’s provider at the

Financial Adviser Service Awards for the 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.



SWOT ANALYSIS OF HDFC LIFE INSURANCE

Major Strengths:

Premium rates are increasing and so are commissions.

The variety of products is increasing.

Prospects expect more services from their brokers.

Major Weaknesses:

Insurance companies are often slow to respond to changing needs.

There is an increasing trend of financial weakness among the companies.

There are more competitors for agencies to compete with banks and Internet players.

Opportunities:

The ability to cross sell financial services is barely being tapped.

Technology is improving to the point that paperless transactions are available.

The client's increasing need for an "insurance consultant" can open new ways to service the client and generate income.

Threats:

The increasing cost and need for insurance might hit a point where a backlash will occur.

Government regulations on issues like health care, mold and terrorism can quickly change the direction of insurance.



Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies.

THE FIVE FORCES

INDUSTRY COMPETITORS

Rivalries naturally develop between companies competing in the same market.

Competitors use means such as advertising, introducing new products, more attractive

customer service and warranties, and price competition to enhance their standing and

market share in a specific industry. To Porter, the intensity of this rivalry is the result

of factors like equally balanced companies, slow growth within an industry, high

fixed costs, lack of product differentiation, overcapacity and price-cutting, diverse

competitors, high-stakes investment, and the high risk of industry exit. There are also

market entry barriers.

PRESSURE FROM SUBSTITUTE PRODUCTS

Substitute products are the natural result of industry competition, but they

place a limit on profitability within the industry. A substitute product involves the

search for a product that can do the same function as the product the industry already

produces. Porter uses the example of security brokers, who increasingly face

substitutes in the form of real estate, money-market funds, and insurance. Substitute

products take on added importance as their availability increases.



BARGAINING POWER OF SUPPLIERS

Suppliers have a great deal of influence over an industry as they affect price

increases and product quality. A supplier group exerts even more power over an

industry if it is dominated by a few companies, there are no substitute products, the

industry is not an important consumer for the suppliers, their product is essential to

the industry, the supplier differs costs, and forward integration potential of the

supplier group exists. Labor supply can also influence the position of the suppliers.

These factors are generally out of the control of the industry or company but strategy

can alter the power of suppliers.

BARGAINING POWER OF BUYERS

The buyer's power is significant in that buyers can force prices down, demand

higher quality products or services, and, in essence, play competitors against one

another, all resulting in potential loss of industry profits. Buyers exercise more power

when they are large-volume buyers, the product is a significant aspect of the buyer's

costs or purchases, the products are standard within an industry, there are few

changing or switching costs, the buyers earn low profits, potential for backward

integration of the buyer group exists, the product is not essential to the buyer's

product, and the buyer has full disclosure about supply, demand, prices, and costs.

The bargaining position of buyers changes with time and a company's (and industry's)

competitive strategy.

POTENTIAL ENTRANTS

A threat of new entrants into an industry depends largely on barriers to entry.

Porter identifies six major barriers to entry:

Economies of scale, or decline in unit costs of the product, which force the

entrant to enter on a large scale and risk a strong reaction from firms already

in the industry, or accepting a disadvantage of costs if entering on a small

scale.

Product differentiation, or brand identification and customer loyalty.



Capital requirements for entry; the investment of large capital, after all,

presents a significant risk.

Switching costs or the cost the buyer has to absorb to switch from one supplier

to another.

Access to distribution channels. New entrants have to establish their

distribution in a market with established distribution channels to secure a

space for their product.

Cost disadvantages independent of scale, whereby established companies

already have product technology, access to raw materials, favorable sites,

advantages in the form of government subsidies, and experience.

New entrants can also expect a barrier in the form of government policy

through federal and state regulations and licensing. New firms can expect retaliation

from existing companies and also face changing barriers related to technology,

strategic planning within the industry, and manpower and expertise problems. The

entry deterring price or the existence of a prevailing price structure presents an

additional challenge to a firm entering an established industry.

In summary, Porter's five-forces models concentrates on five structural

industry features that comprise the competitive environment, and hence profitability,

of an industry. Applying the model means, to be profitable, the firm has to find and

establish itself in an industry so that the company can react to the forces of

competition in a favorable manner. For Porter, Competitive Strategy is not a book for

academics but a blueprint for practitioners-a tool for managers to analyze competition

in an industry in order to anticipate and prepare for changes in the industry, new

competitors and market shifts, and to enhance their firm's overall industry standing.

Throughout the relevant sections of Competitive Strategy, Porter uses

numerous industry examples to illustrate his theory. Since those examples are now

over twenty years old, changes in technology and other industrial shifts and trends

have made them somewhat obsolete. Although immediate praise for the book and the

five-force model was exhaustive, critiques of Porter have appeared in business

literature. Porter's model does not, for example, consider nonmarket changes, such as

events in the political arena that impact an industry. Furthermore, Porter's model has



come under fire for what critics see as his under-evaluation of government regulation

and antitrust violations. Overall, criticisms of the model find their nexus in the lack of

consideration by Porter of rapidly changing industry dynamics. In virtually all

instances, critics also present alternatives to Porter's model.

INDUSTRY COMPETITION

LIFE INSURANE CORPORATION OF INDIA

Mumbai: Life Insurance Corporation of India (LIC) has defined clearly GE

Money India, a subsidiary of one of the world’s leading credit services company, as

one of the partners in its projected credit card venture.

LIC wants to leverage its 200 million base in order to tap chances in the credit

card payment industry that in 2006-07 developed by 22 per cent to Rs 41,361 crore.

HSBC, Canara, OBC Enter Pact to form Joint Life Insurance Company

Submitted by Harish Dhawan on Tue, 09/11/2007 - 10:45.

• Banking Sector

• Insurance Sector

MUMBAI: Canara Bank, Oriental Bank of Commerce (OBC) and HSBC Insurance

(Asia-Pacific) Holdings Ltd have signed an agreement to mutually set up a life

insurance company in the country.

According to a release the company has been named as Canara HSBC Oriental

Bank of Commerce Life Insurance Company Limited.

Canara Bank would hold the major stake of 51 per cent stake in the company,

whereas HSBC and OBC will hold 26 per cent and 23 per cent stake correspondingly.



LIC declared a bonus of Rs 70

• India Business


The Life Insurance Corporation (LIC) declared a bonus of Rs 70 for all

lifetime plans in lot of Rs 1,000 assured. The Insurance Corporation also announced

22 per cent growth in valuation surplus. Valuation surplus is calculated as the money

left with LIC after deduction of all taxes and costs. This surplus is divided between

policy holders and the government. Government will get 5 % of this Rs 15,127 crore.

33 percent Americans without Health Insurance


• United States

More than 33 per cent of the U.S. population under the age of 65 was not

having any health insurance plan during the last two years. Some were not having

insurance for the complete period, while there were many without health insurance

during some part of the year. The report was released by this Thursday by Families

USA, a consumer group which works for uninsured individuals.

In many cases, the employer pays for the health insurance. However, in recent

times, many companies are not offering this facility to cut employee costs.

'Removal of tariffs will boost insurance’: IRDA Chairman

Submitted by Mohit Joshi on Fri, 10/05/2007 - 11:24.


• India

• New Delhi

New Delhi, Oct.5: "The healthcare industry has two concerns: insurance and removal

of tariffs. Once tariffs are removed, insurance will get a boost, said C.S. Rao,

Chairman, Insurance Regulatory and Development Authority.



He was speaking at the Health Insurance Summit organized by the

Confederation of Indian Industry ( CII), here today. It has also prompted the general

insurer to pay attention to health insurance. Also required are discussions on pre-

existing diseases. With senior citizens unhappy with the existing health insurance

schemes, Rao added that this is an issue that needs to be addressed.

LIC to Introduce Initial Health Insurance Product By Next Month

• India Business


• Mumbai

Mumbai: Life Corporation of India (LIC), the country’s largest insurance service

provider is all set to launch its initial heal insurance product by next month

(November 2007). On the side lines of a meeting, Mr. D.D. Singh, LIC’s Health

Insurance Division’s Executive Director, D.D. Singh, said, “In 15 days, we would file

our application before the Insurance Regulatory and Development Authority (IRDA)

for necessary approvals.”

For claim processing, the Hyderabad-based health insurance company has

joined hands with eight third party administrators, Mr. Singh said.

US Medicare To Recover $4 Bln From Insurers

•

Insurance Sector

United States

Washington: The U.S. Medicare program has declared that it anticipates recovering

$4 billion from insurance firms, which offered up prescription coverage during last

year (2006) as spending on medications that year, was lower than projected.

The Centers for Medicare & Medicaid Services (CMS) has told that it pays up

Part D prescription plans beforehand, which are based on projected utilization and



then computes concluding payments at the yearend that are based on actual usage and

additional information.

IRDA Committee To Submit Report On Seniors' Health Insurance Issues

.

Insurance Sector

Calcutta: Set up by the Insurance Regulatory and Development Authority, a seven-

member committee on “issues relating to health insurance for the elders”, will submit

a report on health insurance for senior citizens by the first week of November.

B.D. Banerjee, a member of the committee and former chairman of Oriental

Insurance Company, said, “The committee will meet in Mumbai between October 9

and 11. The panel was asked to submit its report by October-end. But, I think, we will

be able to give our recommendations only by November 7,”

Medicare for Unorganized Sector under ESIC’s planning


• New Delhi

New Delhi: The medical care to workers in unorganized sector is to be extended

under the planning of the Employees’ State Insurance Corporation (ESIC).

While attending the 140th meeting of Corporation, Minister of Labour and

Employment Oscar Fernandez said that the ESI scheme being the premier social

security scheme, must come forward and make a starting by participating in Health

Insurance Scheme for below the poverty line workers in the unorganized sector by

making available its vast network of hospitals.



In the meeting, the discussion was on the proposal to amend specific

provisions of the ESI Act, 1948, to enable the opening of facilities in the hospitals to

non-insured persons on payments of user charges.



Kotak Life Insurance Draws Expansion

• India Business


Kotak Life Insurance has outlined plans to concentrate on a richer penetration

in Kerala for a larger part of the insurance market.

While addressing the media persons, Pankaj Desai, executive director, sales

and distribution, Kotak Life Insurance, told that the company anticipates servicing

more clients in every region of Kerala.

Mr. Desai said, “As a step towards this goal, we have launched our fifth

branch in Kerala in Thiruvananthapuram, after establishing ourselves in Kochi,

Kottayam, Thrissur and Kozhikode. In the near future, we will have branches at

Pathanamthitta, Alappuzha and Kannur.”

Cholamandalam MS signs pact with TCS, CMC

Insurance Sector

Cholamandalam MS General Insurance Co Ltd. (Chola MS) has entered with

Tata Consultancy Service (TCS) and CMC Ltd, to revamp its IT infrastructure, an

official release said.

The company said, “The new software system will ensure improved service

delivery processes for customers across branches in India.”



While the software is a proprietary general insurance system of CMC, TCS

will manage the customization and successful deployment over the web. The contract

will be of five-year duration including the annual maintenance contract, it added

ING Vysya Life Eyes Rs 1100 Cr New Premium

• India Business


The joint venture between Vysya Bank and Dutch ING Group, ING Vysya

Life Insurance Company is paving its path for the betterment of its customers.

The company will soon make a capital infusion of around Rs 125 crore to

increase the capital base of the company, which will support the growth plan chalked

out for the current fiscal.

Beside the plans to offer new product in the specialised annuity product space,

the company is eyeing to accumulate new business premium of around Rs 1,100 crore

by the end of current fiscal.

Deccan, ICICI Lombard join forces to offer travel insurance


• Bangalore

• India News



Bangalore, Apr. 3: Deccan, India’s most preferred low cost carrier and ICICI

Lombard General Insurance have joined forces to launch a unique flight and domestic

travel insurance which offers security against possible vacation or travel loss.

Munich - Europe's biggest insurer Allianz AG said Tuesday its first-quarter

earnings declined after its Dresdner Bank offshoot was forced to write down almost

900 million euro’s (1.4 billion dollars) as a result of the global financial crisis.

Munich-based Allianz said net profit slumped in the three months of the year

by 66 per cent to 1.1 billion euro, also warning that the financial fallout from the US

subprime market crisis could place at risk targets for next year.

The news sends Allianz shares down 1.4 per cent to 128.92 in early trading in

Frankfurt.


Max New York Life Insurance inks pact with IOC

• Company Updates


• India News

Max New York Life Insurance has entered into a tie-up with Indian Oil

Corporation (IOC) to sell its insurance products across India through IOC network.

Under the deal, IOC would make available around 2,000 Kisan Seva Kendras

across the country, for the sale of insurance products to the rural masses.

Submitted by Harish Dhawan on Sat, 07/12/2008 - 07:59.

• India Business




Max India and British United Provident Association (BUPA) will start a joint

venture in India known as Max Bupa Health Insurance Limited with an initial

investment of £12 million.

Bupa has 10 million customers in over 200 countries.

Bupa will own 26% equity while Max India will hold 50% equity shares in the

joint venture.

In the JV company while the balance of 24 per cent to be held by Chairman of

Max India, Analjit Singh and his family.

According to Indian laws regarding insurance, any outside firm can’t hold

more than 26% stake in any joint venture with an Indian firm.

Aviva Life Insurance inks pact with McDonald’s


Aviva Life Insurance, the world’s fifth largest insurer has tied- up with

McDonald’s, one of the leading fast food chains in India, to promote its new

marketing initiative Tension Chhodo Cricket Khelo (TCCK).

TCCK is a unique mass activation campaign conceptualized by Aviva, which

is based on the insight that parents these days being so occupied with securing their

child’s future that they miss out on enjoying their childhood today

Bharti AXA Life Insurance Launches Its 100th Branch In India

Submitted by Harish Dhawan on Sat, 08/02/2008 - 05:14.



• India Business


Bharti AXA Life Insurance Company has announced that it has launched its

100th branch in India, at Delhi.

In order to strengthen branch network in Northern India, the company is also

launching operations in Ghaziabad and Faridabad.

Bharti AXA Life Insurance has diversified its business footprints in large and

small cities and towns.

The multi-channel distribution spread of Bharti AXA Life consists agents,

corporate agents and brokers, bancassurance and telcassurance.

State Bank of India (SBI),

• India Business


State Bank of India (SBI), the country's largest lender, is expected to finalize

the terms for General Insurance joint venture with Insurance Australia Group (IAG), a

well-known international insurance major by next month.

The bank is presently working on the structure of the joint venture agreement,

which it expects to finalise by September, this fiscal.

Tata AIG life insurance

Cleartrip, one of the leading domestic travel portals, has teamed up with Tata

AIG General Insurance Company Limited to offer domestic travel insurance solutions

'Travancore' to its customers.

The latest launched policy will cover Cleartrip travelers against the flight

delays, medical expenses incurred while traveling, lost baggage, flight cancellations

due to sickness, injury or death.



Company profile

Introduction

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 of branch network, organising an efficient and

well trained sales force, and setting up 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.

Our core values are drilled down to all levels of employees, as these are

inviolable. We continue to promote high integrity in business practices and shun short

cuts and unethical practices, as we wish to be perceived as an institution with high

moral standing. Since our inception in 2000, when the Indian insurance space was

opened for private participation, we have consistently focused on setting benchmarks

in all aspect on insurance business. Being the first private player to be registered with

the IRDA and the first to issue a policy on December 12, 2000, our differentiators are:

Strong promoter

HDFC Standard Life is a strong, financially secure business supported by two

strong and secure promoters – HDFC Ltd and Standard Life. HDFC Ltd’s excellent

brand strength emerges from its unrelenting focus on corporate governance, high

standards of ethics and clarity of vision. Standard Life is a strong, financially secure

business and a market leader in the UK Life & Pensions sector.

Risk control l frame work

HDFC Standard Life has fully implemented a risk control framework to

ensure that all types of risks (not just financial) are identified and measured. These are

regularly reported to the board and this ensures that the company management and

board members are fully aware of any risks and the actions taken to ensure they are

mitigated

Need based selling approach



Despite the criticality of life insurance, sales in the industry have been

characterized by over reliance on tax benefits and limited advice-based selling. Our

eight-step structured sales process ‘Disha’ however, helps customers understand their

latent needs at the first instance itself without focusing on product features or tax

benefits. Need-based selling process, 'Disha', the first of its kinds in the industry,

looks at the whole financial picture. Customers see a plan not piecemeal product

selling.

Our 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 offices. It has international offices in

Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait

and Oman to assist NRI’s and PIO’s to own a home back in India. As of December

2008, the total asset size has crossed more than Rs. 95,000 crores including the

mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit

base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors.

Customer Service and satisfaction has been the mainstay of the organization. HDFC

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

customers for over 180 years. It currently has a 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 £125 billion in assets.

It is a leading pensions provider in the UK, and is rated by Standard & Poor's as

'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard



Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money

Marketing Awards, and it was voted a 5 star life and pension’s provider at the

Financial Adviser Service Awards for the 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 .

Keys to Success

• Generate repeat business.

• 100% complete customer satisfaction.

• Competitive pricing.

• Industry expertise.

Critical Issues

Ideal is still in the speculative stages as a start-up business. The critical issues that

they face are:

Ensure that Ideal is able to quickly meet the demand for their services.

Quickly gain market penetration.

Establish Ideal as the premier support service company for the insurance

industry in Layton, NJ.

Marketing Strategy

While Ideal's marketing budget is not huge, they recognize that in order to

generate business they must spend money on marketing.

Ideal will have four different marketing activities.

The first will be advertising; ads will be placed in both the Yellow Pages as

well as the regional industry trade journal.

A second marketing effort will be networking, leveraging all of Sarah's

industry contacts.

The third activity is participation in the regional trade show.



The last source of marketing is a direct mail campaign for local perspective

customers.

Mission

Ideal Business Support's mission is to provide the customer with the finest

business support services. We exist to attract and maintain customers. When we

adhere to this maxim, everything

Marketing Objectives

Increase repeat customers.

Decrease customer acquisition costs.

Generate brand equity, quantified by an increase in unsolicited service

requests.

Financial Objectives

Profitability by the end of year one.

Steady, sustainable growth.

Decrease training costs by 2% a quarter.

Target Markets

The insurance market that is in need of support services can be broken down

into two segments

Exclusive Agents: These are agents for only one type of insurance, such as

State Farm. The agent will sell all the different types of coverage that State

Farm offers, but only State Farm insurance. While the selection here is

limited, the advantage of the exclusive agent is that they usually have a very

strong relationship with that company which is good if there is ever any claim

issues.

Insurance Brokers: These agents do not have an exclusive contract with any

one insurance company. They can offer insurance from multiple companies.



The advantage of this set up is that they can offer a wider range of service

offerings than an agent who only sells one brand of insurance.

Positioning

Ideal will position itself as the most experienced insurance service support

company in the Layton area. This positioning will be achieved by leveraging its

competitive edge.

Ideal's competitive edge is specific, deep industry knowledge of insurance.

While having this specific knowledge will preclude a lot of the market, it makes a

small part of the market quite attractive.

This deep industry knowledge is based on Sarah's five years spent as an

independent insurance agent. Sarah will gather all of this intellectual capital and

process it into a training program so it becomes organizational knowledge.

This approach is somewhat backwards relative to the norm for the support

service industry. Generally, the background of the company owner is from the support

staff industry. They then apply the support staff proficiencies to the industry of their

different customers. Sarah believes that the intricacies of the insurance industry are

far more complex than that of the support agency.

Her rationale is that she can pick up the few things she does not know about

support much quicker than having to learn about the underlying industry that is

served.

Sarah's industry access is valuable for networking as well. Having spent time

in the industry, Sarah developed many strong relationships with agents. Having

established these relationships creates a trust bond that is significant for attempting to

transform the professional insurance relationship to a support service based

relationship.



Our Vision & Values

Our Vision

'The most successful and admired life insurance company, which means that

we are the most trusted company, the easiest to deal with, offer the best value for

money, and set the standards in the industry'.

Our 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

'Young Star Super' Voted 'Product of the Year 2010'

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 Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". Its awards and accolades for the year 2005 include the following-

Asiamoney Awards Asiamoney Awards

Hong Kong-based Finance Asia magazine

Economic Times Awards

Best Domestic Commercial Bank

Best Cash Management Bank -India.

"Best Bank in India"



HDFC Standard Life Insurance Company Limited. is one of 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), India's leading housing finance institution and a Group

Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds

72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in

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

Our Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life

has the financial expertise required to manage your long-term investments safely and

efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed to offer you

complete flexibility combined with a low charging structure.

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs.

5,564.69 crores.

The company has covered over 8,33,070 lives as on March 31, 2009.

Organizational Goals

HDFC's main goals are to a) develop close relationships with individual

households, b) maintain its position as the premier housing finance institution in the

country, c) maintain its position as the premier housing finance institution in the

country d) provide consistently high returns to shareholders, and e) to grow through

diversification by leveraging off the existing client base.



VISION STATEMENT-

To build a world class Indian bank

MISSION STATEMENT -

Use enabling technologies to provide value added products and services to

customers at value for money price. SUBSIDIARIES AND ASSOCIATE

COMPANIES

. HDFC Bank

. HDFC Mutual Fund

• HDFC Standard Life Insurance Company

. HDFC Realty

• HDFC Chubb General Insurance Company Ltd.

• Credit Information Bureau (India) Limited

• Other Companies Co-Promoted by HDFC



ORGANIZATION HIERARCHY



Chapter - 2

PRODUCT PROFILE

At HDFC Standard Life, the customer is provided with a bouquet of insurance

solutions to meet every need. It caters to both, individuals as well as companies

looking to provides benefits to their employees. This section gives them details of all

their products. They have incorporated various downloadable forms and products

details so that customer can make an informed choice about buying a policy. For

individuals, they have a range of protection, investment, pension and savings plans

that assist and nurture dreams apart from providing protection. They can choose from

a range of products to suit their life - stage and needs. For organization they have a

host of customized solutions that range from group term Insurance, gratuity, leave

encashment and superannuating products. These affordable plans apart from

providing long term value to the employees help in enhancing goodwill of the

company.

The various products are categorized as follows

1. INDIVIDUAL PRODUCTS

2. GROUP PRODUCTS

3. RURAL PRODUCTS

4. SOCIAL PRODUCTS

1. INDIVIDUAL PRODUCTS

At HDFC Standard Life it is realized that not everyone has the same kind of

needs. Keeping this mind, they have a varied range of products that can one chooses

from to suit all their needs. These will help secure their future of their family.

2. PROTECTION PLAN:

One can protect their own family against the loss of their income or the burden

of their loan in the event of his/her unfortunate demise, disability or sickness. These

plans offer valuable peace of mind t a small price.

The protection plans of HDFC Standard Life include Term Assurance Plan

and Loan Cover Term Assurance Plan.



3. GROUP PRODUCTS

One stop shop for employee - benefit solutions:-

HDFC Standard Life has the most comprehensive list of products for

progressive employers who wish to provide the best and most innovative employee

benefits solution to their employees. They offer different products for different needs

of employers ranging from term insurance plans for pure protection to voluntary plans

such as superannuation and leave enhancement.

They now offer the following group products to their corporate clients.

• Group term insurance with riders

• Group term insurance with profit share

• Group unit linked plan

• For gratuity

• For defined benefits superannuation

• For defined contribution superannuation

4. RURAL PRODUCTS

According to research finding, there is keenness among rural customers to

invest in saving cum protection plan protection plan with a term of five years.

Especially, if the premium amount is low and affordable. Keeping in view, we have

designed a special product called Bachat Yojana.

BIMA BACHAT YOJANA

The key objective of this product is to be provided cover to economically

weaker section and also to popularize the concept of life insurance and savings in

rural areas. Bima Bachat yojana is low premium life protection plan. One time

premium for a five year is just RS.100.

Benefits on death before maturity:

A benefit on death maturity is Rs.1, 000.



SOCIAL PRODUCT

Development insurance plan:

Development insurance plan is an insurance plan which provide life cover to

members of a development agency for a term of one year .on a death of any member

of the group insured during the year of cover, a lump sum is paid to that member's

beneficiaries help meet some of the immediate financial needs following their loss.

Eligibility:

Members of the development agency and their spouses with:

• Minimum age at the start of the policy 18 years last birthday.

• Maximum age at the start of policy 50 years last birthday Employees of the

development agency are not eligible to join the group.

The group to be covered is only eligible if it contains more than 500 members.

Premium payments

The premium to be paid will be quoted per member in the group and will be

the same for all members of the group. His premium can only be paid by the

Development agency as a single lump sum that includes all premiums for the Group

to be covered. Cover will not tart until the premium and the entire member

Information in our specified format has been received. The premium rate is Rs .25 per

Rs.10, 000 of lump sum, per member.

Benefits

On the death of each member covered by policy during the year of cover a

lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs.

Where death is as result of an accident, an additional lump sum will be of cover and

there is no surrender value available at any time.

Role of development agency



Due to the nature of the groups covered HDFC Standard Life will be passing

certain administrative tasks onto the Development Agency. By passing on these tasks

the premium charged can be lower.

INVESTMENT PLAN

The single premium whole of Life plan is well suited to meet the long term

investment needs of the customer's options of attractive long term returns through

regular bonuses.

PENSION PLAN

The pension plan of HDFC standard life help one secures their financial

independence even after retirement .The pension range includes the personal pension

plan, unit linked pension plus.

SAVINGS PLAN

The savings plan of HDFC standard Life offer the customers flexible options

to build savings for their future needs such as buying a dream home or fulfilling their

children’s immediate and future needs.

Their savings range includes Endowment Assurance plan, unit linked

Endowment plus, Money Back plan, children' s plan, Unit linked Youngster plus.

CHILDREN PLAN

As a parent one's top most priority is one's child future and being able to meet

one's child dreams and aspirations. HDFC children's plan aspires to fulfill all these.

The HDFC children's plan gives following benefits:-

• Invaluable financial support to the child.

• Help to customize an ideal plan for the child.

• Provide one multiple options for multiple benefits.

The HDFC children's plan is designed to secure one's child future by giving

one's child (the beneficiary) a guaranteed lump sum, on maturity or in case of one's

unfortunate demise, early in the policy term. The premiums paid by the customer are

invested by the company to give them good long-term returns.



The plan receives simple Reversionary Bonuses, which are usually added

annually. At the end of the term an additional Terminal Bonus may be added

depending on the performances of the underlying investment.

Tax Benefits (based on current tax laws): One will be eligible for tax benefits

under section 80C and section 10 (10D) of the income tax act 1961.

Organizational Study MONEY BACK PLAN

The HDFC money back plan is a "with profit" plan that gives customer following:

• A proportion of the basic sum assured as cash sums at a regular 5-year

intervals within the policy term an ideal way to secure one's long-term as well

as short financial goals.

• A lump sum payment on survival up to maturity date.

• Valuable protection to one's family by way of lump sum payment in case of

one's unfortunate death within the policy term. This is over and above any

earlier payment.

Making the right kind of investment will enable the customer to achieve their

objectives-be it one's immediate expenses or else securing one future financial need.

The money Back plan gives you a wide range of terms and each benefit schedule to

choose from. A summary of key benefits including the each lump sum payment,

expressed as a percentage of sum assured.

Tax benefits (based on current tax laws) : The tax benefits are same for all

plans. Surrendering the policy: Surrendering the policy are also same for all plans.

PERSONAL PENSION PLAN

HDFC personal plan is an insurance policy that is designed to provide a post

retirement income for the life with the freedom to choose one's retirement date. One

can choose one's premium, the sum assured and one's retirement date. At the end of

the policy term, one will receive the sum assured plus any attaching bonus, which will

provide one's post retirement income.



The HDFC personal plan is an insurance policy, which can benefit a customer

in following way:-

• Provides a post retirement income in one's golden year.

• Gives one the flexibility to plan one's retirement date.

• Gives one tax benefits on one's premiums. The plan received simple

Reversionary Bonus, which are usually addedannually. At the end of the term

an additional Terminal Bonus may be paid depending on the performances of

the underlying investment.

Tax benefits: The tax benefits as per as the endowment assurance plan.

Surrendering the policy: The terms and conditions for surrendering the policy are

same as endowment and children's discussed above.

ENDOWMENT ASSURANCE PLAN

The HDFC Endowment Assurance Plan gives the customers:

• An ideal way to secure one's long-term financial goals.

• Valuable protection to one's family by way of lump sum payment in case of

the unfortunate demise within the policy.

• Provides lump sum payment (basic sum assured plus any bonus additions) on

survival up to maturity date.

• Very flexible benefit options and payment options.

In case of the unfortunate demise of the customer during the policy term, this

participating insurance plan will pay family the sum assured (together with the

attached bonuses) they had chosen.

The plan receives simple Reversionary bonuses, which are usually added

annually. At the end of the term an additional Terminal Bonus may be paid depending

on the performance of the underlying investment.

UNIT LINKED YOUNGESTAR PLAN

The HDFC unit linked youngster plan gives the customer following:



• An outstanding opportunity by providing a choice of thoroughly Researched

and selected investments.

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

• Very flexible benefits combinations and payment options.

• Flexible additional benefit options such as critical illness cover.

One can choose one's and the investment funds. They can invest their

premium net of charges in funds in the proportion they specify. At the end of the

policy term, they will receive the accumulated value of their funds.

In case of unfortunate demise during the policy term, HDFC Standard Life

will continue the policy and continue to pay the original premium they had chosen.

Their family receive the sum assured they had chosen plus the fund built up by

your and HDFC Standard Life's contributions. Tax Benefits: The tax benefits are as

per the endowment policy.

UNIT LINKED PENSION PLAN

The HDFC unit linked plan is an insurance policy that is designed to provide a

retirement income for life with the freedom to maximize one's investment returns by

providing a choice of thoroughly researched and selected investments. Stride into

one's golden years of retirement with dignity and pride.

One can choice his premium and the investment funds. He/she will then invest

his/her premium, net of charges in his/her chosen funds in the proportion he/she

specify.

At the end of the policy term, he/she will receive the accumulated value of

his/her funds, which will be used provide his/her pension income.

In the event the unfortunate demise of the customer the spouse will receive a cash

lump sum to help him/her manage their retirement years. The HDFC Unit Linked Plan

is an insurance policy, which benefits one in the following ways:-

• Provide a post retirement income.



• Gives one the flexibility to plan one's retirement date.

• Gives one the freedom to invest premium as per his/her preference.

• Gives tax benefits on his/her premiums, and on receiving the lump sum. Tax

• Benefits : The tax benefits are as per the endowment assurance plan,

INCOME TAX SECTION

GROSS ANNUAL SALARY

HOW MUCH TAX CAN YOU SAVE?

HDFC STANDARD LIFE PLANS

Sec. 80C Across All income

Slabs.

Up to Rs. 33,660 saved on

investment of

Rs. 1, 00,000.

All the life insurance plans.

Sec. 80 CCC Across all income

slabs.


Investment of

Rs.1, 00,000.

All the pension plans.

Sec. 80 D* Across all income

slabs.


Investment of

Rs. 10,000.

All the health insurance riders

available with the conventional

plans.

TOTAL SAVINGS

POSSIBLE **

Rs. 37,026

Rs. 33,660 under Sec. 80C and under Sec. 80 CCC, Rs.3,366 under Sec. 80 D,

calculated for a male with gross annual income not exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the

conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium

Benefit.



** These calculations are illustrative and based on our understanding of current tax legislations.

HDFC Standard Life Insurance offers a range of individual and group

solutions, which can be easily personalized to specific needs. Its group solutions have

been planned to offer complete flexibility, together with a low charging structure. As

of 31 December, 2008, the Company's new business premium income stood at Rs.

1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a

comprehensive list of policies and products on offer by HDFC Standard Life

Insurance:

Protection Plans

HDFC Term Assurance Plan

HDFC Loan Cover Term Assurance Plan

HDFC Home Loan Protection Plan

Children's Plans

HDFC Children's Plan

HDFC Unit Linked Young Star II

HDFC Unit Linked Young Star Plus II

HDFC Unit Linked Youngster Champion

Retirement Plans

HDFC Personal Pension Plan

HDFC Unit Linked Pension II

HDFC Unit Linked Pension Maxi miser II

HDFC Immediate Annuity

Savings & Investment Plans

HDFC Unit Linked Endowment Plus II

HDFC Simply Life

HDFC Unit Linked Endowment II



HDFC Unit Linked Enhanced Life Protection II

HDFC Unit Linked Wealth Maximiser Plus

HDFC Unit Linked Endowment Winner

HDFC Endowment Assurance Plan

HDFC Money Back Plan

HDFC Single Premium Whole of Life Insurance Plan

HDFC Assurance Plan

HDFC Savings Assurance Plan

Health Plans

HDFC Critical Care Plan

HDFC SurgiCare Plan

Group Plans

Group Term Insurance Plan

Group Variable Term Insurance Plan

Group Unit Linked Plan - Gratuity

Group Unit Linked Plan - Superannuation

Group Unit Linked Plan - Leave Encashment

Associate Companies

HDFC Limited



HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance



Chapter-3

Financial Analysis

MCEV methodology and approach

The calculations of embedded value and new business profits have been done

using a market consistent embedded value (“MCEV”) approach. This approach differs

from a traditional EV approach primarily in respect of the way in which allowance for

risk is made

Within the traditional EV approach allowance is made for risk through an

increase in the risk discount rate used to value future shareholder cash flows, whilst

within the MCEV calculation explicit separate allowances are made for risk

There are two components to the MCEV:

Shareholder adjusted net worth – this component represents the market value

of assets attributable to shareholders. This amount is derived from the Indian GAAP

balance sheet adjusted to allow for assets on a market value basis, elimination of

intangible assets and to allow for shareholder attributable assets residing within the

unit-linked and non par policyholder funds

Value of in-force – this component represents the discounted value of after tax

shareholder attributable cash flows expected on the business as at the valuation date.

No allowance is made for future new business. This amount has been adjusted to

deduct allowances for non hedge able risk, frictional costs of required capital and the

time value associated with financial options and guarantees

1. Present value of future profits (“PVFP”):

This component has been calculated by discounting the projected future after

tax shareholder attributable cash flows expected to arise on in-force business at the

valuation date.

The cash flows have been projected on a deterministic basis using the

company’s best estimate view of future persistency, mortality and expenses. Future

investment returns and the risk discount rate have been set equal to the returns from

the risk free yield curve at the closing balance sheet date.



2. Cost of non-hedge able risk (“CNHR”):

A deduction from the PVFP is required in order to make appropriate

allowance for non hedgeable and non economic risks. Within a traditional EV

calculation this would be allowed for by an increase to the risk discount rate, but

within MCEV an explicit separate deduction is made.

The CNHR has been derived using a cost of capital approach whereby an

annual charge is applied to projected risk bearing capital associated with 99.5th

percentile stress events for non economic assumptions over a 1 year time horizon.

99.5th percentile stress events have been taken from the EU Solvency II, QIS

4 framework. In order to allow for the greater risks associated with emerging markets,

the risk bearing capital has been uplifted by 50 percent.

The CNHR has been calculated as the discounted value of a 4%p.a. charge

applied to the projected risk bearing capital.

The stress events, uplifts to NHR and annual charge, are reviewed and

modified if necessary on an annual basis.

3. Time Value of Financial Options and Guarantees ("TVFOG"):

The MCEV incorporates an allowance for risks associated with asymmetric

shareholder returns associated with the Participating (“Par”) Funds by deducting a

cost for the TVFOG. This asymmetry primarily arises due to the fact that if in deficit

the Par Funds have to be funded 100% by the Shareholder Fund whereas if the funds

have surpluses only 10% of these are attributable to the Shareholder Fund.

The PVFP is calculated using a deterministic basis and therefore does not

capture the risk that in certain possible circumstances the Par Funds may have

deficits.

The TVFOG has been calculated by assessment of the shareholder attributable

cash flows (both transfers out of the funds and injections into the funds) on a large

number of stochastic simulations derived on a risk neutral basis.



In each simulation the value of the shareholder attributable cash flows have

been discounted back to the balance sheet date with the TVFOG then being set equal

to the difference between the average of the discounted value of these cash flows and

the equivalent figure calculated on a deterministic basis.

The calculation of the TVFOG incorporates a number of approximations and

is being progressively developed and refined. The key areas of approximation include

the selection of implied equity and station volatilities, the treatment of future

management actions and the apportionment of TVFOG associated with new as

opposed to in- force business.

4. Frictional Costs of Required Capital (“FCRC”):

An allowance has been made within the MCEV for the frictional costs of

holding required capital (“FCRC”). Required capital has been set equal to the amount

of shareholder attributable assets required to back local regulatory solvency

requirements. The FCRC has been calculated as the discounted value of investment

costs and taxes on shareholder attributable assets backing the required capital over the

lifetime of the in-force business.

Key assumptions underlying MCEV

Maintenance expenses have been based on actual expense levels currently

being incurred and make no allowance for future productivity improvements.

Acquisition expenses, for the purposes of new business profitability reporting

have been based on levels the company expects to achieve by FY2012-2013 based on

its business plan.

Actual acquisition expenses are currently higher than these assumptions and

therefore any excess acquisition expense over the assumption is recognized in the

period and the shareholder attributable component, net of tax, deducted from the value

of new business for that period.

1. Expenses

2. Economic assumptions



An MCEV approach is used with projected earned and risk discount rates both

being set equal to the risk free (government bond) yield curve at the relevant balance

sheet date.

No allowance for any illiquidity premia is made within the earned rates.

3. Mortality and morbidity

Mortality and morbidity assumptions are set by product line and are based on

past experience

4. Persistency

Persistency assumptions are set by product line, payment mode and duration

in-force, based on past experience and expectations of future experience. Separate

decrements are modeled for lapses, surrenders and paid-ups.

Due to the age of the industry, minimal experience exists on long-term

persistency assumptions and therefore these assumptions are reviewed on an active

basis and updated when experience suggests a significant difference from the

assumptions used.

5. Tax assumptions

Tax assumptions are based on interpretation of existing tax legislation, where

appropriate supported by legal opinion.

No allowance is made for future changes to taxation such as the Direct Tax

Code. These changes will be incorporated only once materially enacted.

New business profits and analysis of change in MCEV

The analysis of change in MCEV identifies the main drivers that have caused

the MCEV to move over the financial year.

The value of new business written in the year is normally the most significant

driver for increases in value shown in the analysis of change.

In presenting the analysis of change, the following approach has been adopted:



A. Impact of changes in assumptions and methodology

The impacts from updates to assumptions and methodology are allowed for as

follows:

Updates to non economic assumptions and methodology are made at the start

of the period, and the subsequent analysis of change calculated using these

revisions

Updates to economic assumptions including revisions to the economic

scenarios used for the TVFOG calculation are made at the end of period and

incorporated as a closing adjustment.

B. Experience variances

The impact on the MCEV from variations between the assumptions and actual

experience are determined and recognized in the period for non economic

assumptions and at the end of the period for economic assumptions.

The impact on the variations for non economic assumptions is separately

attributed to new and in-force business.

C. Value of new business

New business profits are calculated as at end of period, using the opening (i.e.

31st March 2009) yield curve and incorporate allowance for variations on non

economic assumptions during the period.

The TVFOG associated with new business written during the year has been

approximated by apportioning the overall closing TVFOG (before changes to the end

period economic assumptions) on the basis of guaranteed benefits associated with the

new and in force business. This TVFOG is incorporated as a deduction from the new

business profits.

The new business profits are calculated before and after acquisition expense

overruns.



D. EV profits

EV profits are calculated as the movement in EV during the period less capital

injections.

E. EV Operating profit (“EVOP”)

EV operating profit (“EVOP”) is calculated as the movement in EV during the

period less capital injections and the impact of economic variances and economic

assumption changes.

The EVOP represents the impact on the MCEV from performance that is

considered within management control

Glossary

1) Total premiums – Total received premiums during the year including first

year, single and renewal premiums for individual and group business

2) First year premiums – Regular premiums received during the year for all

modes of payments chosen by the customer which are still in the first year. For

e.g. for a monthly mode policy sold in March 2009 the first installment would

fall into first year premiums for 2008-09 and the remaining 11 installments in

the first year would be first year premiums in 2009-10

3) New business received premium – The sum of first year premium and single

premium

4) Weighted received premium – The sum of first year premium and 10 percent

weighted single premiums and single premium top-ups

5) Renewal premiums – Regular recurring premiums received after the first year

6) Effective premium income (EPI) - 10 percent weight-age for single premiums

and annualized for regular premiums – e.g. monthly installment premium x 12

7) Commission ratio – Ratio of total commissions paid out on first year, single

and renewal premiums to total premiums



This release is a compilation of unaudited financial and other information and

is not a statutory release. This may also contain statements that are forward looking.

These statements are based on current expectations and assumptions that are subject

to risks and uncertainties. Actual results could differ materially from our expectations

and assumptions. We do not undertake any responsibility to update any forward

looking statements nor should this be constituted as a guidance of future performance.

These disclosures are subject to the prevailing regulatory and policy

framework as on March 31, 2010 and do not reflect any subsequent changes.



STATUATORY PROFIT AND LOSS ACCOUNT

Premium 70,051,044 55,646,937

Reinsurance (494,720) (463,174)

Premium(net) 69,556,324 55,183,763

Income from investments 57,228,189 (17,321,361)

Other incomes 3,826,305 6504,424

Total income 130,646,818 44,456,826

Commission (5,254,973) (4,248,904)

Operating expenses (15,090,403) (17,600,683)

Fright benefit tax - (66,320)

Benefits paid(net) (13,378,943) (6,812,692)

Interim bonus paid (1,013) (611)

Terminal bonuses paid (2,725) (4,194)

Change in the valuation in the liability against life policies in force

(96,009,353) (14,057,024)

Surplus/(deficit) 1,909,409 1,666,398

Appropriations

Transfers to share holders account 4,72,930 794,984

Transfer to other reserves

Funds for future appropriation-provision for lapsed policies 532,861 329,343

Balanced being funds for future appropriations 903,618 300

Total 1,909,409 1,124,627

(5,307)

Amounts transferred from share holders account (794,984)

Income from investment 472,930 (329,343)

Other income 335,133 300

Total income 3.522 1,124,627

Expenses other than those related to insurance business 811,585 (5,307)

Contribution to the policy holders fund (3,981) (6,148,951)

Profit/(loss)before tax (3,559,448) (5,029,631)

Provision for taxation (2,751,844)

Profit/(loss)after-tax (2,751,844) (5,029,631)



Balance sheet for the year 2009-10 of HDFC standard life insurance

Sources of funds Applications of funds

Share holders fund Investments

Share capital 19,680,000 17,958,180 Shareholders 6,304,757 4,291,597

Reveres and surplus 552,892 552,892 Policy holders 43,415,382 30,152,727

Credit/debit fair value of change accounts

184,435 77,610 Assets held to cover linked liabilities

155,217,800 68,782,936

subtotal 20,417,327 18,433,462 Loans 40,366 30,248

Fixed asset 1,143,777 1,451,346

Borrowings Current asset

Policy holders fund Cash and bank balances 2,826,362 4,108,660

Credit/debit fair value of change accounts

205,087 296,885 Advances and other asset 4,917,758 5,428,699

Policy liabilities 37,666,908 29,092,419 Sub total 7,744,1220 9,537,359

Insurance services

Provision for linked services

127,701,636 84,085,083 Current liabilities 12,281,585 8,820,225

Add: fair value change 27,516,164 (15,302,147) Provisions 187.617 208,813

Total provision for linked services

155,217,800 68,728,936 Sub total 12,467,202 9,029,038

Sub-total 193,089,795 97,578,470

Net current asset (4,725,082) 508,321

Funds for future appropriation

1,490,013 586,395

Funds for future appropriation provision for lapsed policies

1,064,831 531,970 Debt balance in p/l ac 14,664,966 11,913,122

Surplus associated to share holders

total 216,061,831 117,130,297 Total 216,061,966 117,130,297



CHAPTER 4

RESEARCH METHODOLOGY

INTRODUCTION

Research is an art of scientific investigation through search for new facts in

any branch of knowledge. It is a moment from known to unknown. Research always

starts with a question or a problem. Its purpose is to find answers to questions through

the application of the scientific method.

It is a systematic and intensive study directed towards a more complete knowledge of

the subject studied. As marketing does not address itself to basic or fundamental

question, it does not qualify as basic research. On the contrary, it tackles problems,

which seem to have immediate commercial potential. In view of the major

consideration, marketing research should be regarded as applied research. We may

also say that marketing research is of both types problem solving and problem

oriented. Marketing research is as systematic and objectives study of the problems

pertaining to the marketing of the goods and services. It may be emphasized that it is

not restricted to any particular area of marketing, but is applied to all the phases and

aspects

STATEMENT OF THE PROBLEM

“A study on reasons for the resignation of employees in HDFC STNDARD life

insurance”

THEORETICAL BACKGROUND OF THE STUDY

The study includes a detailed description of the post advisors of the

organization. The analysis includes the reasons for which the advisors have left the

organization. The study also includes what are the changes to be made in the

organization to retain the advisors in the organization. The main purpose is to take

corrective measures to the retain advisors in the organization.

The detail study will be conducted and the reasons for the resignation will be

taken into consideration.



OBJECTIVES OF THE STUDY

1) To know the reasons for resignation

2) To frame proper work environment

3) To know the work environment and working conditions in the organization

4) Changes to be made to retain the employees and to increase the productivity of

employees

5) To take more promotional measures to achieve long term objectives.

SCOPE OF THE STUDY

The study was conducted in davanagere city covering a sample size of 35 employees.

The study was conducted for a period of 6 weeks and collection of primary and

secondary data was collected.

The study includes what are the changes to be made in order to retain

employees in the organization.

The study also includes the reasons for resignation and how it effect the firm

in long run. The main purpose is to know the purpose and chances of rejoining

the firm.

1) DATA COLLECTED.

Data includes facts and figures, which are required to be collected to Achiever the

objectives of the project. In order to determine the present Position and satisfaction of

advisors in the STANDARD LIFE Insurance.

A) PRIMARY DATA

The data that is being collected for the first time or to particularly fulfill the objective

of the project is known as primary data.



THESE TYPES OF DATA WERE,

- The market share of other brands available in the market.

- Responses of an advisor

The above primary data were collected through responses of consumer and advisors

were conducted through questionnaires prepared for them. Individual and group

interviews also under taken with difference consumers, I have collected mainly the

Primary Data for my study by utilizing the questionnaire and interview methods.

B) SECONDARY DATA

Secondary data are that type of data, which are already assembled and need not to

collected from outside.

THESE TYPES OF DATA WERE.

I) Company Profile

ii) Product Profile

iii) Competitors Profile

The aforesaid data were collected through Internet and company s financial Report.

These data are collected from published sources such as Magazines, NEWS papers,

several books, and also from the help of web site www.ING life.co.in

(2) SAMPLING PLAN OF THE STUDY:

DATA COLLECTION METHOD

For given project, the primary data, which needed to collect for the first time, were

much significant. This type of information gathered through Survey technique, which

is the most popular and effective technique for correct data collection. The survey was

completed with the use of questionnaires. - Questionnaire for consumer.

SAMPLING

Sample is the small group taken under consideration from the total group. This small

group represents the total group. In the project the market research, which was ask to

be studied was davanagere region market but as it was possible to approach all the

respondent s customer of the city, hence a sample was selected which represents the

whole city. The areas selected for the sample Are present further in the appendix.



Sample size of customer list was taken From HDFC STANDARD Life Insurance

customer data basic. These include the nature of research, number of variable, and

nature of analysis, sample size used in similar studies incidence rates, completion

rates, and resources constraints. During the process of the study, survey has been

conducted on 35 advisors.

SAMPLING METHOD:

The researcher had choice between probability and non probability sampling methods.

In this study a simple non probability method namely convenience sampling was

adopted.

For my study I have selected Non-probability method in which I selected convincing

sampling method.

DATA EVALUATION

The data so collected were not simply accepted because it contained unnecessary

information and over or under emphasized facts. Therefore only relevant data were

included in the report, which helped in achieving the objectives of the project.

FIELD WORK

SURVEY WAS DONE BY HDFC.

The data was collected over a period of six weeks, using well structured

questionnaire. The respondents were contacted at their respective retail outlets in

various parts of the city.

PLAN OF THE DATA ANALYSIS:

Planning and analysis of data can be done through three steps. They are

Editing

Coding

Tabulation. These three are very important in analyzing the data.

EDITING:



Editing is the process of examining errors when there is some inconsistency in the

responses as entered in the questionnaire or where it contains partial or vague

answers.

CODING:

Coding is necessary to carry out the subsequent operations of tabulating and analyzing

data. If coding is not done, it will not be possible to reduce a large number of

heterogeneous responses into meaningful categories with the result that the analysis of

data would be weak and ineffective and without proper focus.

TABULATION:

Tabulation comprises sorting of the data into different categories and counting the

number of cases that belong to category the simplest way to tabulate is to count the

number of responses to one question. This is called bi-variate tabulation. Where two

or more variables are involved in tabulation, it is called bi variate or multivariate

tabulation. In marketing research projects and generally both types of tabulation are

used.



Chapter-4

DATA INTERPRETATION

Table: 1 Diagram showing no of years worked

The majority of the employees have left the organization in-between one to three

years. The main reason behind the resignation was due to heavy stress and

very short term objectives. This affected the long term objectives of the

objectives and goals of the organization.

DIAGRAM: 2 Diagram showing the analysis of work experience


NO OF YEARS WORKED

variable Frequency Percent

0-1 14 38.9

1-3 14 38.9

3-or more 7 19.4

Total 35 97.2

Total 36 100.0


Majority of the respondents have voted for satisfactory because majority of the

employees were not satisfied with the work environment and the work load given to

them. They feel that there was lack of team work in between the employees.


WORK EXPERIENCE

Variable Frequency Percent

very good 9 25.0

good 9 25.0

satisfactory 11 30.6

bad 3 8.3

very bad 3 8.3

Total 35 97.2

Total 36 100.0


Diagram: 3 Diagram showing reasons for resignation in HDFC

REASONS FOR YOUR RESIGNATION


personal problem 12 33.3

social problem 9 25.0

economic 3 8.3

environment 10 27.8

42.00 1 2.8

Total 35 97.2

Total 36 100.0

Majority of the employees has left the organization because of the personal problem.

They wanted freedom of working environment inside the organization. Social and

environmental problem has not affected the organization more on employees



Diagram: 4 Diagram showing work environment of employees in HDFC

WORK ENVIRONMENT IN HDFC

Variable Frequency Percent

comfortable 14 38.9

supportive 11 30.6

satisfactory 6 16.7

hectic 4 11.1

Total 35 97.2

Total 36 100.0

The Work environment was very comfortable in the organization because there was

more of local employees’ working in the organization. More support was given by the

collogues in the office. There was moral support given by the employees inside the

organization.



Diagram 5: Diagram showing support from colugos in side organization

SUPPOORT FROM COLLUGES


yes 21 58.3

no 14 38.9

Total 35 97.2

Total 36 100.0

The majority of employees said that there was moral support given by the employees

in the organization which made them to achieve the targets in critical situations. They

said that there use have a mutual understanding between the employees in work and in

personal problems.



Diagram 6: Diagram showing expectation from the organization

EXPECTATIONS FROM THE COMPANY


promotional opportunities 15 41.7

work culture 11 30.6

others 9 25.0

Total 35 97.2

Total 36 100.0

The above diagram represents your expectation of the employees in the organization.

The majority of employees has voted for promotional opportunities.

The major problem was lack of promotional measures in the organization. Which lead

to unproductive work environment inside the organization. The work environment can

be improving the promotional measures and fixing the objectives to the employees.



Diagram 7: Diagram showing awareness of the latest benefits

AWARENESS OF THE LATEST BENEFICTS


yes 18 50.0

no 17 47.2

Total 35 97.2

Total 36 100.0

The above diagram represents the awareness of the latest benefits. The majority of the

employees have said yes. And majority of the employees are interested to re join the

organization if more promotional measures are given to the employees



Diagram 8: Diagram showing reasons for leaving the firm

REASONS FOR LEAVING THE FIRM


lack of promotional activities 10 27.8

lack of training 16 44.4

Inconvenience to convince the

customers

5 13.9

lack of promotional measures 4 11.1

Total 35 97.2

Total 36 100.0

The majority of the employees have said lack of training is the main reason for

leaving the organization. And majority of the employees are interested to re join the

organization if more promotional measures are given to the employees are given to

the employees.



Diagram 9: Diagram showing the opinion of rejoining the HDFC

CHANCES OF REJOINING THE ORGANISATION

VariableFrequency Percent

Yes 17 47.2

no 18 50.0

Total 35 97.2

Total 36 100.0

The above diagram represents your rejoining of the employees in the organization.

Majority of the respondents say they are not interested to join the organization And

majority of the employees are interested to re join the organization if more

promotional measures are given to the employees.

[STATEMENT OF THE PROBLEM]

Reasons for the early resignation of the employees in the H.D.F.C. Standard

Life Insurance and the reasons Which effects the organization‘s long and short term

objectives.

The above diagram represents the awareness of the latest benefits. The majority of the

employees have said yes. And majority of the employees are interested to re join the

organization if more promotional measures are given to the employees



THEORETICAL BACKGROUND OF THE STUDY

The study includes a detailed description of the post employees of the

organization. The analysis includes the reasons for which the employees has left the

Organization. The study also includes what are the changes to be made in the

organization to retain the employees in the organization. The main purpose is to take

corrective measures to the retain employees in the organization.

The detail study will be conducted and the reasons for the resignation will be

taken into consideration.

SAMPLE CHARACTERISTICS

The project concluded that research conducted through the questionnaire method as

well as by the personal interview may gain access to a Different population than that

resulting from more traditional methods. Their study was also supported by the

company as well as the project guide, where differences in sample characteristics

were obtained between modes of survey delivery and between sample and population

parameters., the studies have found that the characteristics of given samples do not

differ substantially from the other samples or respondents given data and most of the

sample are quitting the agency with the similar reasons.

ANALYSIS OF DESCRIPTIVE STATISTICS

This is the survey made on the advisors who all are terminated by the HDFC

STANDARD LIFE Insurance in the davanagere region to find out the pros and cons

of quitting the firm as well as their agency from the firm and also the survey tried to

get back them to work for the organization success and to reactivate their agency.

The purpose of the survey or the survey shows why the advisors are quitting

the firm and their agency and what are their expectations from the company. And also

the data help to find out the organization working environment whether it is a

supportive to the advisors are not. The purpose of the survey behind is to promote the

terminated advisors and bring them back to work for the success organization.



Chapter - 6

FINDINGS, SUGGESTION AND CONCLUION

FINDINGS

1. Proper co-ordination should be there between the employees and the

management

2. The work load and work pressure has made the employees to leave the

organization.

3. There is no proper promotional measures such as, salary, bonous,

4. Work environment inside the organization is very unsatisfied

5. Lack of training to the employees

6. Lack of team work

SUGGESTIONS

1. Proper objectives and targets should be fixed to the employees

2. There should be long term objectives period of 2 to 3 months

3. Moral support should be given by the management

4. Work load should be less and it should fixed

5. Proper promotional measures should be fixed

6. Proper training should be given to the employees

7. Proper work environment should be provided such as programmes to increase

sales team work

8. Many employees suggest that team work helps to increase the productivity of

the employees



CONCLUSION

The entire study is done on the primary data. The employee who has left the

organization says that the primary reason is work lead and pressure. No definite

objectives are also another factor; employees’ retention will help the organization in

long run.

The objectives and goals should be fixed for the employees the objectives

should be for long run. There should teams framed. Which will help the employees to

achieve the targets easily Team work will help employees to achieve targets.

Promotional measures should be taken. Proper guidance and training should be given

to the employees.

The employee who has left the organization says that the primary reason is work lead

and pressure. No definite objectives are also another factor; advisors’ retention will

help the organization in long run.



BIBLIOGRAPHY

REFERENCES:

LIST OF WEBSITES:

• www.irda.com

• www.HDFClife.co.in

LIST OF BOOKS & MAGAZINES:

• Marketing Management- ICFAI publication

• Marketing Management- Philip kotler

• Outlook- the Layman’s Guide to Insurance

• Business line

• IRDA Journal

LIST OF NEWS PAPERS:

• Business Line

• Economics Times


Documents

orginal