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RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT OF
A report submitted to Delhi Business School, New Delhi
As a part fulfillment of
MBA + Post Graduate Program (Industry Integrated) in
Entrepreneurship & Business.
Submitted to: Submitted By:
Director Academics Name of Student: surendra kumar
Delhi Business School Roll No: DBS/0810/W223
New Delhi Batch: Winter
Semester: 1ST
University: Punjab technical university
Internal guide:
Faculty:
Delhi Business School,New Delhi
B-II/58, M.C.I.E., Mathura Road, New Delhi
Website: www.dbs.edu.in
This is to certify that the summer training was done on
“RECRUITMENT AND SELECTION OF FINANCIAL
CONSULTANT OF HDFC STANDARD LIFE INSURANCE ”
submitted to Delhi Business School, New Delhi by surendra Kumar
in partial fulfillment of the requirement for the award of degree of
MBA & Post Graduate Program in Entrepreneurship & Business,
is a bonafide work carried out by him under my supervision and
guidance. This work has not been submitted anywhere else for
other degree/diploma. The original work was carried during
15/05/2008 to 15/07/2008 in “HDFC STANDARD LIFE
INSURANCE”.
Mr.VISHAL SAWHNEY
Manager
(Channle development)
HDFC
Seal/stamp of the organization STANDARD LIFE
INSURANCE
Date: ---------------------- H.N.-2955 Street N.-12
Ranjeet Nagar New Delhi 110008
ACKNOWLEDGEMENT
At the very outset, I would like to take golden opportunity of thanking those
persons without whose guidance, co-operation, inspiration and suggestion it
would have been impossible for me to accomplish the project successfully.
First of all I would like to thank Mr. Vishal sawhney. Channle development
Manager of HDFC SLI, for his kind guidance and necessary support during
the study.
I also take this opportunity to extend my heartfelt gratitude to others who
directly of indirectly helped me, by providing me necessary information
required for successful completion of the project.
Surendra kumar
Email Id:[email protected]
DECLARATION
This project well bred “RECRUITMENT & SELECTION OF
FINANCIAL CONSULTANT OF HDFC STANDARD LIFE INSURANCE ” presence proposes by me in the preferential discharge of obligations for the reward of M.B.A degree from Delhi Business School, affiliated to Punjab Technical University.
I somewhere different for any other degree, credential have not
submitted this effort.
Whole snitches of tidings and assist are genuine and have been
accredited in the report.
Surendra Kumar
M.B.A-1st SEM
Delhi Business School
New Delhi
Roll no-dbs/0810/W223
Table Of Contents
Executive Summary
Objective of the study
Literature review
Introduction
The promoters
The Company and its product line
Features of the product
Marketing strategy
Share market position
Competitors
Future prospects
National international image
Major problems
Conclusion
EXECUTIVE SUMMARY:-
Project Title: RECRUITMENT & SELECTION OF FINANCIAL CONSULTANT
Name of the organization: HDFC SLI
Place of the work: New friend’s colony, New Delhi
Organizational Guide: Mr.Vishal Sawhney
Duration: 15th may to 15th July
Major objectives:
To study of the market .
To study of the perfect market for HDFC SLI.
To approach to the interested people towards HDFC SLI.
Research Methodology:
Market research/survey
Area of research
I have done the research in Nehru placce, southwest Delhi, Faridabad, central Delhi
CP and many other places in Delhi.
Major Findings:
There are more then one people live in Delhi
Only more then 25% people have the knowledge of investment in HDFC
SLI.
There are many big and first insurance company in Delhi and it’s the heart
of India.
HDFC STANDARD LIFE INSURANCE
1-INTRODUCTION:-
HDFC Standard Life Insurance Company Ltd. offers a range of individual and
group insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance
institution and one of the subsidiaries of Standard Life plc, leading providers
of financial services in the United Kingdom. The Standard Life group has been
looking after the financial needs of customers for over 180 years. It is a leading
pension’s provider in the UK. Both the promoters are well known in their
respective fields of activities. For more details you may log on to
http://www.hdfcinsurance.com
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
. Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and
became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountan
Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland
Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005
Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005
Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of
individuals and limited companies and also has substantial experience in structuring overseas investments to and from India
Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI).
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC
Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited
2 THE BACKGROUND
HDFC LIMITEDHDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.
Business Objectives
The primary objective of HDFC is to enhance residential
housing stock in the country through the provision of
housing finance in a systematic and professional manner,
and to promote home ownership. Another objective is to
increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall
domestic financial markets..
Organisational 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) transform ideas into viable and creative solutions,
d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base.
HDFC operates through 75 location throughout the country with its Corporate Headquarters in Mumbai,India.HDFC also has an international office in Dubai, U.A.E.,with service associates in Kuwait, Oman and Qatar.
STANDARD LIFE GROUPThe Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925.The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK life assurance and pensions operating model to capitalise on the opportunities presented by EC Directive 92/96/EEC (the “Third Life Directive”) and offer a product range in that market with features which local providers were unable to offer. In the 1990s, the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business, with the intention of positioning itself as a broad range financial services provider.
JOINT VENTURE
HDFC Standard Life Insurance Company LtdHDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC Ltd.) India And UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the venture.HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or NAV services for Corporations, they can be easily customized as per specific needs.HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.
VISION STATEMENT“The most successful and admired life insurance company, which mean 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.In short, “The most obvious choice for all”.
Admired mean the company should be known for its standards. Not only customers, but also the competing life insurance companies should benchmark against HDFC SLI a nutshell, even the IRDA should give an example of HDFC SL as a guiding principle.
2- THE PROMOTERS
Joint ventures and associated undertakings
Country of registration or Share class Name incorporation and proportion held Year end Nature of businessHeng An Standard Life China Ordinary shares 50.0% 31 Dec
Life assuranceHDFC Standard Life Insurance Company
Limited** IndiaOrdinary shares 18.6% 31 Mar Life
assuranceHDFC Asset Management Company Limited* **
India Ordinary shares 49.9% 31 Mar Investment
management*
Owned by a subsidiary undertaking of the Company.**
The Company also has a 14.5% interest in Housing
Development Finance Corporation Limited (“HDFC
Limited”). HDFC Limited owns 81.4% and 50.1%of HDFC
Standard Life Insurance Company Limited and HDFC Asset
Management Company respectively. This gives theGroup
an effective interest in thesecompanies of 30% and 57%
respectively. The Company does not exercise dominant
influence over either of these joint ventures.The current
operations of these companies are not significant in
relation to the accounts of the Group.
Strength:-
A wide geographic reach, growing clients, and a diversified
portfolio of products and services.
.
Premium Payment
This section gives you all the details that you may require to pay your
premium and make it a hassle free experience. Along with various premium
payment options currently available to you, we have also drawn up a Checklist
of details that you will need in case you are paying through cheque or demand
draft. 7 Easy Ways to pay your premium:
At any of Our branches
You can deposit Cheque / Demand Draft drawn in favour of “HDFC
SLIC” at any of Our branch during the following business hours
Monday to Friday : 9.30 AM to 4.30 PM (For Cash)Monday to Friday : 9.30 AM to 5.00 PM (For Cheque)Saturday : 9.30 AM to 12.00 Noon (For Cash & Cheques) Closed on Sundays
Postage / Courier
You can send cheques and demand drafts drawn in favour of HDFC SLIC to
any of our branch offices
Online Payment
You can make online payment of premium anytime and from any location, at a
click of the mouse by using the Online payment facility. It is currently offered
to all the policyholders who are registered users of billjunction.com or have net
banking facility with any of the following banks - HDFC Bank, ICICI Bank,
Axis Bank, State Bank of India, Punjab National Bank, Union Bank of India,
Bank of Baroda
Drop Boxes
You can drop cheques and demand drafts drawn in favour of HDFC SLIC into
any of our drop boxes installed at various locations in various cities
Electronic Clearing Service (ECS) or Auto Debit facility of RBI
You can also pay renewal premiums through Electronic Clearing Service
(ECS) of Reserve Bank of India (RBI) presently available in following 61 cities
Agra, Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore,
Bardhaman, Baroda, Bhilwara, Bhopal, Bhubaneshwar, Calicut, Chandigarh,
Chennai, Cochin, Coimbatore, Dehradun, Delhi, Durgapur, Erode,
Gorakhpur, Guwahati, Gwalior, Hubli, Hyderabad, Indore, Jabalpur, Jaipur,
Jalandhar, Jammu, Jamshedpur, Jodhpur, Kanpur, Kolhapur, Kolkata,
Lucknow, Ludhiana, Mangalore, Mumbai, Mysore, Nagpur, Nellore, Panjim,
Patna, Pune, Raipur, Rajkot, Ranchi, Salem, Shimla, Sholapur, Siliguri, Surat,
Thirupur, Tirupati, Trichur, Trivandrum, Udaipur, Varanasi, Vijaywada,
Vizag
Standing Instructions (SI) Mandate
You can also pay your renewal premium through a Standing Instructions
Mandate if you have an account with HDFC Bank anywhere in India
Credit Card Facility
You can pay your renewal premium through your HDFC Bank credit card.
Checklist while paying your renewal premium through
cheque/ demand draft
your policy number and name correctly on the reverse side of the
cheque/ demand draft
We do not accept Post Dated Cheques (PDC’s) beyond the next banking
day from date of receipt
In case of any overwriting on your cheque, please countersign the same
As per RBI guidelines, Non MICR Cheques may not be acceptable at
few locations. In this scenario, please contact your nearest branch for
more details
Unit Linked Polices you can pay using Local Cheques/ Demand Drafts
other policies you can pay using either Local or Outstation cheques or
Demand Drafts
Weaknesses:-
Lapsation & Revival
Your renewal premium should reach us by the due date specified in the premium reminders. It is always advisable to pay on time so that your valuable policy benefits can continue.
However we do understand that there may be times when you may not be able to pay the renewal premium by the due date. Therefore we allow for some additional number of days from the due date, which is specified in your policy document, to help you make your premium payment.
In case we still don’t receive your premium payments by the end of the above
mentioned period, we would do either one of the following:
Lapse” the policy – if you haven’t paid premiums for the first 3 policy
years
Either of these may mean loss/reduction of valuable benefits of your policy. refer to your policy document for details.
We do, however, allow you to restore the original benefits for a Lapsed
or a Paid up policy under certain conditions.
On receipt we will send you the details of amount, that you will have to pay
towards revival. This amount may include all or some of the outstanding
premiums, revival interest and revival processing charges
If your policy is lapsed or paid-up for more than six months or lapsed due to
any reasons like illness, accidents etc. you may need to submit a Personal
Health Statement
we reserve our right to impose some new terms and conditions at the time of
revival decided on a case-to-case basis
3-THE COMPANY AND ITS PRODUCT LINE:-
COMPETITOR BY PRODUCT
Bancassurance is the selling of insurance
products by a bank. For HDFC Standard Life Insurance, bancassurance
and other alternative channels contribute around 42 per cent of the business.
The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are
HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank
of Baroda, Saraswat Bank and Bajaj Capital.
HDFC BANK
HDFC Bank is the largest insurance distributor of HDFC Standard Life Insurance.
INDIAN BANK
Indian Bank enters into a strategic tie-up with HDFC Standard Life Insurance Company Ltd .INDIAN BANK with over 90 years of standing in the financial market with the reputation for excellent customer service, has entered into a strategic tie-up with HDFC Standard Life Insurance Company Ltd., the first in the private sector to receive the Certificate of Registration for foray into Life Insurance business for distribution of latter’s insurance products. A Memorandum of understanding has been signed by the Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has to its strength 1377 branches spread across the country with ready built infrastructure and the expertise in marketing financial products. Initially the insurance products will be marketed through select branches in the South where the Bank has strong presence. The insurance products from HDFC Standard Life, will be competitive and customer friendly. The tie-up would benefit the Bank's customers, as they will have wider choice of life insurance policies at competitive premium
FINANCIAL POSITION OF HDFC SLIC IN FY 2007-08
HDFC Standard Life, one of the leading private life insurance
companies in India declared its annual results for the
financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685
crores in FY2007-08 registering a year-on-year growth of
63%. The growth was primarily driven by the success of the
company's initiative on structured sales processes based on
customer needs and their assessments.
Highlights of Financial Year 2007-08
New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium
Income is up by 70% at Rs 4,859 crores as against Rs. 2,856 crores in FY2006-
07
Alternate Channels including bancassurance has recorded an
impressive growth of over 63% to contribute 41% to the Effective
Premium Income (EPI).
Group business funds under management have increased to Rs. 959
crores, registering a growth of83% over FY2006-07
The average premium has increased to Rs. 33,000.
Company products and services are now available in 726 cities and
towns across the country. Strength of Financial Consultants has
increased to 1,45,000
Knowledge Center
Our Knowledge Centre is your personal resource for information that can help you
understand the basics of insurance and help you make an informed decision about
buying a policy. This section includes details on insurance terms and concepts, helps
you analyse plans for your various needs and lends meaning to some of the insurance
jargon that you may encounter
Life Stages
Your insurance need will change as your life does, from starting to work to
enjoying your golden years and all the stages in between. Each one of these
stages may pose a different insurance need/cover for you. In this section,
we have drawn up the basic life stages and help you analyse various
insurance needs accordingly.
STAGE 1
Young and Single
An important stage where one lays down the foundation of a successful life ahead.
Take advantage of the time and power of compounding to ensure that you build up
your dreams. Start saving early.
Your needs
Save for a home and wedding
Tax Planning
Save for Golden years
STAGE 2
Just Married
Marriage brings about a significant change. New dreams and new opportunities also
bring in additional responsibilities. While both of you look forward to a happy and
secure life , it is equally important to ensure that eventualities don’t come in the way
of shaping your dreams.
Your needs
Planning for home / securing your home loan liability
Save for vacation
Save for your first child
STAGE 3
Proud Parents
Once you have children, your need for life insurance is even more. You need to
protect your family from an untoward incident. Ensure your protection umbrella
takes into account the future cost of securing your child’s dream. You will want life
to go on for your loved ones, and having enough life insurance is a way to help
ensure that.
Your needs
Provide for children’s education
Safeguarding family against loan liabilities
Savings for post-retirement
STAGE 4
Planning for Retirement
While you are busy climbing the ladder of success today, it is important for you to
take time and plan for your life after retirement. Having an early start for
retirement planning can make a significant difference to your savings. Think about
your golden years even before you have reached them. The key is to think ahead and
plan well using your time and money.
Your needs
Provide for regular income post retirement
Immediate Tax benefits
Lead a secure, independent and comfortable life style in your retirement
years
4 FEATURES OF THE PRODUCT & BENIFIT
HDFC Standard Life: A good cover The opening up of life insurance has given finally given a level-playing field to
the private sector.
A. N. Shanbhag , February 19, 2002
Competition in the market always proves favourable to the consumer. So it is
in the case of life insurance. After what seems like almost an eon, finally the
doors of the life insurance sector were thrown open to the private sector
players last year. The Finance Act, 2001 has thankfully cleared quite a lot of
cobwebs giving a level-playing field to both the sectors. Notable amongst the
new entrants is HDFC Standard Life Insurance, a joint venture between the
global experience of Standard Life of UK and our own HDFC.
Standard Life, founded in 1825 is amongst the forerunners of the insurance
industry worldwide, having a presence not only in the UK but also Ireland,
Spain, Germany, Austria and Canada. Voted as the 'company of the decade',
Standard Life manages assets over US$ 119 billion.
HDFC does not need any formal introduction, so strong is its brand already.
After having a significant presence in the housing finance, banking and MF
industries, this JV marks its foray into the life insurance sector.
Private sector players would only be too aware that this is the proverbial first
step of the thousand-mile journey that lies up ahead. Contending for a piece of
market share with a Goliath that LIC is, will not be an easy task unless they
offer qualitative and innovative products at an affordable price. That they
would be pulling out all the stops to attract customers is not in doubt. Hence,
this is as good a time as any to pay attention and see what is on display.
The strategy
Too many options simply confuse the users whereas too few will surely turn
them away. HDFC Standard Life has thankfully introduced products with
basic premiums serving specific needs of all. Most products have some
additional optional value adding benefits at marginal additional premiums.
The proponent is free to choose any of the basic products along with none or
some of the options as per his needs.
Before examining the base products, let us see the options.
Accidental Death Benefit (ADB)
ADB provides an additional amount equal to the basic sum assured (SA) in
case of the death of the policyholder due to an accident, within 90 days of the
accident.
Critical Illness (CI) Benefit
CI provides an additional amount equal to the SA on diagnosis of the any one
of the 6 specified critical illnesses --- cancer, coronary artery bypass graft
surgery, heart attack, kidney/renal failure, major organ transplant (as
recipient) and stroke. The sum assured is payable if the policy holder survives
for 30 days after the date of the claim.
Double Sum Assured (DSA) Benefit
DSA provides an additional amount equivalent to the basic SA in case of the
death of the policyholder.
Waiver of Premium (WOP) Benefit
WOP basically waives the premium in case the policyholder becomes totally
disabled. However, the waiver is applicable only during the period of the
disability.
Accelerated Sum Assured (ASA)
Upon diagnosis of any of the specified six critical illnesses, ASA provides an
amount equal to the amount payable on death.
These options must be selected at the outset while choosing the product.
Now the base.
Single Premium Bond This is basically a hybrid of insurance and investment.
The life cover is quite low and therefore it functions almost like a deep
discount bond. For a single upfront premium (read investment), the policy
pays a lump sum (read maturity value) and its tenure of 10, 15, 20 years or
more at 5-year intervals. A compound revisionary bonus is declared every
year, which would be added to the policy upon its anniversary. The future
bonuses though are not guaranteed and are dependent upon the company's
experience and the conditions prevalent in the economy.
The minimum age for buying the policy is 18 years, the maximum being 70.
The minimum SA is fixed at Rs. 25,000, the maximum being Rs. 5,00,000.
Normally, a policy acquires a paid up value (and the related surrender value)
after premiums for 3 years are paid but in this case the holding period is
specified to be just 6 months --- Excellent liquidity indeed!
Term Assurance Plan
The SA is payable in the case of the death of the policyholder during the term
but on survival, there are no maturity benefits. Consequently, the premium
rates are absolutely the lowest. This is insurance in its purest form --- highest
cover at lowest cost. There was a crying need for easy availability of this
product. HDFC Standard Life deserves kudos to have catered to this need.
Amongst the optional benefits listed above, ADB, CI and ASA are available for
this plan.
Money Back Plan
This plan pays periodic cash lump sums during the tenure of the policy. The
lump sums, essentially a proportion of the basic SA are paid at 5-year
intervals. On survival, the basic SA plus bonus less the cash lump sums paid
earlier are provided. However, in the case of the demise of the policyholder,
the basic SA plus any bonus is provided to the family. This would be over and
above any earlier payouts.
The schedule of cash lump sums as a percentage of the basic SA is detailed in
the table. Moreover, CI, DSA, ADB and WOP can be opted for if so desired.
Endowment Assurance Plan
As is normal with all endowments, on the death of the life assured during the
term, the beneficiary will get the SA. On survival, the policyholder gets the SA.
From amongst the optional benefits, CI, DSA, ADB and the WOP benefit are
available along with this plan. The indicative premiums for an SA of Rs. 1 lakh
for a male life assured for a period of 20 years are detailed in the table.
Loan Cover Term Assurance
This is a unique product meant as a safety net in case one has taken a loan to
buy a house. It is designed to help the family repay the outstanding loan in the
case of the death of the breadwinner.
For starters, it provides a lump sum on the death of the life assured during the
term of the plan. The difference in this case is that the lump sum is a
decreasing percentage of the initial SA. As the loan decreases, as per its
payment schedule, the cover under the policy decreases as per its own
schedule.
There is a choice of paying the premium in yearly, half-yearly or quarterly
modes or even a single one time premium is payable. Amongst the optional
benefits, ASA is available along with this plan.
Group Term Insurance (GTI)
HDFC Standard Life also offers GTI, meant essentially for employees of an
organisation. GTI is extremely convenient for an employer as he can take
insurance for all or certain categories of employees. All members of a group,
subject to some basic conditions are eligible.
GTI is used basically to provide life insurance as part of the employee benefits.
It can also cover any housing or vehicle loan given by the employer to the
employee.To sum A wise man had said that the time to mend the roof is when
the sun is shining. This is applicable to life insurance too. Today as the
breadwinner you are able to maintain a decent standard of living for yourself
and your family. If you want enough bread for the family even after the death
of the breadwinner, you should look at the Single Premium Bond. In other
cases, life insurance is an absolute necessity. Have a look at other products.
Money Back Plan
Money Back Plan
Total Policy Number of years from policy date
Term 5 10 15 20 25
10 40%
15 30% 30%
20 25% 25% 25%
25 20% 20% 20% 20%
30 15% 15% 15% 15% 15%
Endowment Assurance Plan
Age Basic Policy Additional Premium
Years Premium (Rs.) For Optional benefits (Rs.)
CI DSA ADB WOP
20 4771 304 322 136 236
30 4835 442 388 144 300
40 5098 925 641 156 47550
5813 1890 1357 - -
5 MARKETING STRATEGIE
MARKET CONDITION OF PRODUCT IN DELHI & NCR REGION
When it comes to study the market condition of HDFC
Standard Life Insurance, it is quite easy to see that there is
good demand for products, but the sale of Ulip products are
very good. The market share is about 65% with compare to their competitor.
REASON FOR THEIR GOOD CONDITION:
1. Consultants hold on the market
When it comes for the case of market, there is a clear and complete hold of
HDFC SLIC Consultants.
2.Quality
HDFC SLIC provides good quality of products, which is praised by most of the
consumers. The reason for 65% of the market cover by HDFC Standard Life
Insurance is because of quality of products.
3.Demand
Demand for the product of HDFC Standard life is very high in the societies.
4.SupplySupply of product is also good, but in capturing whole market it take some time.
5 COMPETITORS
COMPETITORS BY COMPANY
MARKET SHARE POSITION
Life Insurance Corporation of India’s (LIC’s) market share has slipped
by almost 4% to 83.3% from 87% market share last fiscal. However, in
terms of number of policies sold, LIC continues to dominate the Indian
life insurance market with about 91% market share.
In terms of group insurance schemes, LIC’s market share was at 72.2%
after it covered 4.9 lakh lives. Private players had 27.9% of the market
covering 1.9 lakh lives.
The 12 private players in the country together mopped up Rs 385 crore
in premium in the first two months selling over 2 lakh policies. ICICI
Prudential Life leads with market share of 5.9% It is followed by Birla
Sunlife with a market share of 2.6%, Allianz Bajaj (1.6%), Tata AIG
(1.5%), HDFC Standard Life (1.4%) and SBI Life (1.2%).
Each of the other private players like Aviva, Max New York Life, OM
Kotak Life, ING Vysya, AMP Sanmar and MetLife had less than 1%
market share but posted high growth in business. In terms of premium
collection, ICICI Prudential mopped up Rs 136 crore followed by Birla
Sunlife (Rs 60 crore), Allianz Bajaj (Rs 37 crore), Tata AIG (Rs 35
crore), HDFC Standard Life (Rs 33 crore), SBI Life (Rs 27 crore).
Life Insurance Corporation Of India(LIC)
About 154 Indian insurance companies, 16 non-Indian companies and 75
provident were operating in India at the time of nationalization of Life
Insurance Industry. Nationalization was accomplished in two stages; initially
the management of the companies was taken over by means of an Ordinance,
and later, the ownership too by means of a comprehensive bill. The Parliament
of India passed the Life Insurance Corporation Act on the 19th of June 1956,
and the Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable cost. 245
Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC continues to be the dominant life
insurer even in the liberalized scenario of Indian insurance and is moving fast
on a new growth trajectory surpassing its own past records. LIC has issued
over one crore policies during the current year. It has crossed the milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth
rate of 16.67% over the corresponding period of the previous year. For more
details you may log on to http://www.licindia.com/history.htm
HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. offers a range of individual
and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), India’s leading
housing finance institution and one of the subsidiaries of Standard Life plc,
leading providers of financial services in the United Kingdom. The Standard
Life group has been looking after the financial needs of customers for over 180
years. It is a leading pension’s provider in the UK. Both the promoters are well
known in their respective fields of activities. For more details you may log on
to http://www.hdfcinsurance.com
Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Ltd. is a joint venture between New
York Life, a Fortune 100 company and Max India Limited, one of India's
leading multi-business corporations. The Company's paid up capital is Rs. 587
crore, which is more than the norm laid down by IRDA. . For more details you
may log on to http://www.maxnewyorklife.com
ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank-one of India's foremost financial services companies-and Prudential plc-
a leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 15.85 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential
commenced operations in December 2000. For more details you may log on to
http://www.iciciprulife.com.
Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between
Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is
one of India's leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the
group caters to the financial needs of individuals and corporates. Old Mutual
plc is an international financial services group, whose activities are focused on
asset gathering and asset management. For more details you may log on to
http://www.kotaklifeinsurance.com
Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance is a joint venture between the Aditya Birla Group
and Sun Life Financial, Birla Sun Life foraying into the life insurance and
retirement planning business. The Aditya Birla Group has a turnover close to
Rs. 38000 crores (as on March 31, 2006) and is one of the largest business
houses in India. Additional information is available at
www.adityabirla.com.Sun Life Financial Inc. is a leading international
financial services organization providing a diverse range of wealth
accumulation and protection products and services to individuals and
corporate customers. Tracing its roots back to 1865, Sun Life Financial and its
partners today have operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the Philippines, Japan,
Indonesia, India, China and Bermuda. As of March 31, 2006, the Sun Life
Financial group of companies had total assets under management of USD 343
billion. For more details you may log on to
http://www.birlasunlife.com/BirlaSunLife/Insurance/
Tata AIG Life Insurance Company Ltd.
Tata AIG Life Insurance Company Limited and Tata AIG General Insurance
Company Limited (collectively 'Tata AIG') are joint ventures of the Tata
Group and American International Group, Inc. (AIG). Tata AIG combines the
strength of the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the insurance venture
with AIG holding the balance 26 percent. Tata AIG Life provides insurance
solutions to individuals and corporates. Tata AIG Life Insurance Company
was licensed to operate in India on February 12, 2001 and started operations
on April 1, 2001. For more details you may log on to http://www.tata-aig.com.
SBI Life Insurance Company Limited .
SBI Life Insurance is a joint venture between the State Bank of India and
Cardif SA of France. SBI Life Insurance is registered with an authorized
capital of Rs 500 crore and a paid up capital of Rs 500 crores. SBI owns 74%
of the total capital and Cardif the remaining 26%. State Bank of India enjoys
the largest banking franchise in India. Along with its 7 Associate Banks, SBI
Group has the unrivalled strength of over 14,500 branches across the country,
the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas,
which is The Euro Zone’s leading Bank. BNP Paribas is one of the oldest
foreign banks with a presence in India dating back to 1860. Cardif is ranked
2nd worldwide in creditor’s insurance offering protection to over 35 million
policyholders and net income in excess of Euro 1 billion mark. Cardif has also
been a pioneer in the art of selling insurance products through commercial
banks in France and 34 more countries. For more details you may log on
http://www.sbilife.co.in
ING Vysya Life Insurance Company Private Limited
ING Vysya Life Insurance Company Private Limited (the Company) entered
the private life insurance industry in India in September 2001.It has an advisor
sales force of over 21,000 people, working from 140 branches located in 74
major cities across the country and over 3,000 employees. It also distributes
products in close cooperation with the ING Vysya Bank network. ING is a
global financial institution of Dutch origin. It has 150 years of experience, and
provides a wide array of banking, insurance and asset management services in
over 50 countries The Company has a is headquartered at Bangalore. For
more details you may log on http://www.ingvysyalife.com
Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates- Allianz AG, one of the world's largest insurance companies,
and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.
Characterized by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial strength, Bajaj
Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. For
more details you may log on to http://www.bajajallianzlife.co.in
Metlife India Insurance Company Pvt. Ltd.
With over 137 years of experience, the MetLife companies are a leader in
group benefits that serve 88 of the top one hundred FORTUNE 500®*
companies, and provide benefits to 37 million employees and family members
through its plans sponsors in the U.S. The MetLife companies are also ranked
#1 in group life and #1 in commercial dental in the U.S. The MetLife
companies are the number one life insurer in the U.S. with approximately US
$2.8 trillion of life insurance in force. In India, MetLife was incorporated in
2001, and aims to differentiate itself through customized need based selling,
simple and innovative products, and technology-backed service experience, to
tread its path to build financial freedom for everyone. For more details you
may log on to http://www.metlife.co.in/MetIndia
Reliance Life Insurance Company Limited
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of
the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of
India’s leading private sector financial services companies, and ranks among
the top 3 private sector financial services and banking companies, in terms of
net worth. Reliance Capital has interests in asset management and mutual
funds, stock broking, life and general insurance, proprietary investments,
private equity and other activities in financial services. Reliance Capital
Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with
the Reserve Bank of India under section 45-IA of the Reserve Bank of India
Act, 1934. For more details you may log on to http://www.reliancelife.co.in
Aviva Life Insurance Co. India Pvt. Ltd.
Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of
the leading providers of life and pensions products to Europe and has
substantial businesses elsewhere around the world. In India, Aviva has a long
history dating back to 1834. At the time of nationalization it was the largest
foreign insurer in India in terms of the compensation paid by the Government
of India. Aviva was also the first foreign insurance company in India to set up
its representative office in 1995.In India, Aviva has a joint venture with Dabur,
one of India's oldest, and largest Group of companies. A professionally
managed company, Dabur is the country's leading producer of traditional
healthcare products. In accordance with the government regulations Aviva
holds a 26 per cent stake in the joint venture and the Dabur group holds the
balance 74 per cent share. For more details you may log on to
http://www.avivaindia.com
Sahara India Insurance Company Ltd.
The Sahara Pariwar’s life insurance company – Sahara India Life Insurance
Company Ltd.- has been granted license by the insurance regulator – the
IRDA on 6th February 2004. With this approval Sahara India Life Insurance
Company Ltd. becomes the first wholly and purely Indian company, without
any foreign collaboration to enter the Indian Life insurance market. The
launch is with an initial paid up capital of 157 crores. The Chairman of the
company is Shri Subrata Roy Sahara who is also the Chairman of Sahara
Pariwar. For more details you may log on to http://www.saharalife.com
Recruitment of Financial Consultants (FC) in HDFC Standard Life
This is a good business opportunity offered by HDFC Standard Life to become a business partner and earn a good amount of money.
Business description
Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial Consultant and help analyze your customer’s financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customers on track.
Along with being a great career move you get associated with HDFC Standard Life Insurance, India’s Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer you unmatched support with various training programmes to help you excel in your endeavour.
A great career move in every way Zero investment, there is no start-up capital. You can work full-time or part-time, depending on your convenience Sunrise industry Support every step of the way At HDFC Standard Life, training is an inherent element of our support system - at no extra cost - for our new Financial Consultants
EXCELLENT OPPORTUNITY
Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding career
Flexible work timings – You can work whenever you like. You can work full-time or part-time, depending on your convenience. However, the time you invest will determine your success
Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or Working Professionals.
Zero Investment - There is no start-up capital required. Be your own boss with flexible working environment, unlimited earning potential and opportunities to be part of a world class sales team.
Attractive Remuneration - Company offers excellent commissions, award and rewards for the performers. You have unlimited earning potential. Commission structure is pretty handsome and is 15-40% and renewal commission of 5% second year onwards till the policy is in force.
Certificate by IRDA- You will get world class training free of cost and certification by Insurance Regulatory Development Authority.
TRAINING
Perfects your knowledge about the insurance industry as well as our products
IRDA Training
Prepares you for your career as a Financial Consultant and enables you to pass the IRDA examination easily
Disha Training
Hones your selling skills, enables you to understand customer needs and provide need-based insurance solutions
Advanced Training
Upgrades your capability and knowledge through sophisticated training programs customised for the changing world of financial products and markets
Desired Profile:
Age: 18 Yrs to 65 YrsEducation: Intermediate or moreExperience: Not MandatoryType of Job: Full Time or Part Time
Documents Required:
8 photograph
Age proof (passport, Birthcertificate, College Leaving Certificate, Driving License)
Address proof
Education proof
Copy of PAN Card
Duely Signed Cancelled Cheque of self
A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825 in case of online training towards HDFC SLIC LTD payable at Mumbai.
Recruitment process of FCs Fill up of Agency form
IRDA Training (100 hrs)
IRDA Exam
Fail Pass
Exit Product Training
Traditional Pr. ULIP Product
Internal Assessment
Fail Pass
Exit Certification
Job Description for Financial consultants
Pre sales role Identifying prospective clients. Meeting prospective clients. Understanding the need of the client. Presenting solutions to client. Closing sales.
Post sales role Taking 1-2 references from the client Providing timely updates to the client for maintaining Lifelong
relationship.
Benefits to FCs
Financial Benefits:
Commission on issuance of every policy.
Commission directly credited to bank account of FCs within 15 days. These commission varies from 7.5-40% according to plan.
BASIC COMMISSION
First year Commission payable on regular premium conventional policies issued on or after 21st march 2007
Name of the plan 1st year commission
Endowment Assurance plan 40%
Money Back plan 40%
Children’s plan 40%Term Assurance plan 25%Lone cover Term Assurance plan 25%Personal Pension Plan 7.5%
RENEWAL COMMISSION:Renewal commission would be paid from the 2nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans.
Name of the plan Renewal commission 2nd
year onwardsEndowment Assurance plan 5%Money Back Plan 5%Children’s plan 5%Lone cover Term Assurance Plan 5%Term Assurance plan 5%Personal Pension Plan 2%
BONUS COMMISSIONBonus commission would be payable on the first year premium received and adjusted on the regular premium policies under the following plans,1.Endowment Assurance Plan2.Money Back Plan3.Children’s Plan4.Term Assurance Plan5.Lone Cover Term Assurance Plan
Bonus commission is not payable on the single premium plans and on the policies issued under the Personal Pension Plan and all Unit Linked Plans.
Bonus commission rate would depend on financial consultant crossing the minimum RNEP(Received Net Effective Premium) within one year.
Period RNEP Bonus commission % of the 1st year Premium received
In one year
1,00,000 5%1,50,000 10%2,25,000 15%
REWARDS & RECOGNITION
Within 30 days of Licensing Consultant can become
STAR – Converted premium 2 Lacs
Silver Medal-Worth Rs 5200(approx)
RISING STAR – Converted premium of 5 Lacs
Gold Medal-Worth Rs 13,000(approx)
MILLIONAIRE STAR – Converted premium of 10 Lacs
Gold Medal-Worth Rs 25,000(approx)
GLOBAL STAR – Converted premium of 24 Lacs
Gold Medal-Worth Rs 60,000(approx)
Extra Payouts for STAR Performers
Star Performers Club
Status Bronze Silver Glod Centurion
Benefits 1%max
Rs.5999
2.5%,max
Rs.37499
5%,no upper limit
Graded-4.5%to8.5%
Additional status retention Bonus
0.50% 1.00% 1.50%
MONTHLY & QUARTERLY CONTESTS
There are various Sales linked monthly & quarterly contests occur in which FCs has opportunity to gain something. Like
Gift Vouchers Home Appliances Two-Wheelers Gold/Diamonds Jewelry Foreign Trips Mobile Phones Laptops Cars etc.
OTHER BENEFITS
On field support- Joint fieldwork with respective SDM/BDM.
Training support – Various training modules to enhance your sales skills, interpersonal skills etc.
Marketing support – Consumer Contact Programs.
Availability of office infrastructure for telecalling, quotations, benefits illustration etc.
Consultant corner to access illustration, sales done, and contest updates etc.
Personal email id.
Unit Linked Insurance Polices (ULIPS )
Unit linked guidelines were notified by IRDA on 21st December 2005. The main
intent of the guidelines was to ensure that they lead to greater transparency
and understanding of these products among the insured, especially since the
investment risk is borne by the policyholder. It is the endeavor of IRDA to
enable the buyer to make the most informed decision possible when planning
for financial security. We hope the following FAQs will enable a better insight
to all buyers about the character and features of Unit linked Products.
1. What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life
insurance policy which provides a combination of risk cover and investment.
The dynamics of the capital market have a direct bearing on the performance
of the ULIPs. REMEMBER THAT IN A UNIT LINKED POLICY, THE
INVESTMENT RISK IS GENERALLY BORNE BY THE INVESTOR.
2. What is a Unit Fund?
The allocated (invested) portions of the premiums after deducting for all the
charges and premium for risk cover under all policies in a particular fund as
chosen by the policy holders are pooled together to form a Unit fund.
3. What is a Unit?
It is a component of the Fund in a Unit Linked Policy.
4. What Types of Funds do ULIP Offer?
Most insurers offer a wide range of funds to suit one’s investment objectives,
risk profile and time horizons. Different funds have different risk profiles. The
potential for returns also varies from fund to fund.
The following are some of the common types of funds available along with an
indication of their risk characteristics.
General
Description
Nature of
Investments
Risk Category
Equity Funds Primarily invested in company stocks
with the general aim of capital
appreciation
Medium to High
Income, Fixed
Interest and Bond
Funds
Invested in corporate bonds,
government securities and other fixed
income instruments
Medium
Cash Funds Sometimes known as Money Market
Funds — invested in cash, bank
deposits and money market
instruments
Low
Balanced Funds Combining equity investment with
fixed interest instruments
Medium
5. Are Investment Returns Guaranteed in a ULIP?
Investment returns from ULIP may not be guaranteed.” In unit linked
products/policies, the investment risk in investment portfolio is borne by the
policy holder”. Depending upon the performance of the unit linked fund(s)
chosen; the policy holder may achieve gains or losses on his/her investments. It
should also be noted that the past returns of a fund are not necessarily
indicative of the future performance of the fund.
6. What are the Charges, fees and deductions in a ULIP?
ULIPs offered by different insurers have varying charge structures. Broadly,
the different types of fees and charges are given below. However it may be
noted that insurers have the right to revise fees and charges over a period of
time.
Premium Allocation Charge
This is a percentage of the premium appropriated towards charges before
allocating the units under the policy. This charge normally includes initial and
renewal expenses apart from commission expenses.
Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan.
Mortality charges depend on number of factors such as age, amount of
coverage, state of health etc
Fund Management Fees
These are fees levied for management of the fund(s) and are deducted before
arriving at the Net Asset Value (NAV) .
Policy/ Administration Charges
These are the fees for administration of the plan and levied by cancellation of
units. This could be flat throughout the policy term or vary at a pre-
determined rate.
Surrender Charges
A surrender charge may be deducted for premature partial or full encashment
of units wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of fund switches may be allowed each year without
charge, with subsequent switches, subject to a charge.
Service Tax Deductions
Before allotment of the units the applicable service tax is deducted from the
risk portion of the premium.
Investors may note, that the portion of the premium after deducting for all
charges and premium for risk cover is utilized for purchasing units
7. What should one verify before signing the proposal?
One has to verify the approved sales brochure for
all the charges deductible under the policy
payment on premature surrender
features and benefits
limitations and exclusions
lapsation and its consequences
other disclosures
Illustration projecting benefits payable in two scenarios of 6% and
10% returns as prescribed by the life insurance council.
8. How much of the premium is used to purchase units?
The full amount of premium paid is not allocated to purchase units. Insurers
allot units on the portion of the premium remaining after providing for various
charges, fees and deductions. However the quantum of premium used to
purchase units varies from product to product.
The total monetary value of the units allocated is invariably less than the
amount of premium paid because the charges are first deducted from the
premium collected and the remaining amount is used for allocating units.
9. Can one seek refund of premiums if not satisfied with the policy, after
purchasing it?
The policyholder can seek refund of premiums if he disagrees with the terms
and conditions of the policy, within 15 days of receipt of the policy document
(Free Look period). The policyholder shall be refunded the fund value
including charges levied through cancellation of units subject to deduction of
expenses towards medical examination, stamp duty and proportionate risk
premium for the period of cover.
10. What is Net Asset Value (NAV)?
NAV is the value of each unit of the fund on a given day. The NAV of each
fund is displayed on the website of the respective insurers.
11. What is the benefit payable in the event of risk occurring during the term
of the policy?
The Sum Assured and/or value of the fund units is normally payable to the
beneficiaries in the event of risk to the life assured during the term as per the
policy conditions.
12. What is the benefit payable on the maturity of the policy?
The value of the fund units with bonuses, if any is payable on maturity of the
policy.
13. Is it possible to invest additional contribution above the regular premium?
Yes, one can invest additional contribution over and above the regular
premiums as per their choice subject to the feature being available in the
product. This facility is known as “TOP UP” facility.
14. Whether one can switch the investment fund after taking a ULIP policy?
Yes. “SWITCH” option provides for shifting the investments in a policy from
one fund to another provided the feature is available in the product. While a
specified number of switches are generally effected free of cost, a fee is charged
for switches made beyond the specified number.
15. Can a partial encashment/withdrawal be made?
Yes, Products may have the “Partial Withdrawal” option which facilitates
withdrawal of a portion of the investment in the policy. This is done through
cancellation of a part of units.
16. What happens if payment of premiums is discontinued?
a) Discontinuance within three years of commencement – If all the
premiums have not been paid for at least three consecutive years from
inception, the insurance cover shall cease immediately. Insurers may
give an opportunity for revival within the period allowed; if the policy is
not revived within that period, surrender value shall be paid at the end
of third policy anniversary or at the end of the period allowed for
revival, whichever is later.
b) Discontinuance after three years of commencement -- At the end of the
period allowed for revival, the contract shall be terminated by paying
the surrender value. The insurer may offer to continue the insurance
cover, if so opted for by the policy holder, levying appropriate charges
until the fund value is not less than one full year’s premium. When the
fund value
reaches an amount equivalent to one full year’s premium, the contract shall
be terminated by paying the fund value.
17. What information related to investments is provided by the Insurer to the
policyholder?
The Insurers are obliged to send an annual report, covering the fund
performance during previous financial year in relation to the economic
scenario, market developments etc. which should include fund performance
analysis, investment portfolio of the fund, investment strategies and risk
control measures adopted.
In case, you need any clarification, you may address your query to the
following e-mail id:
Disclaimer :
The above material is provided for general information only and do not
constitute legal or other professional advice. This information is current at the
date of publication but may be subject to change without notice and
accordingly, may not be up to date at the time of viewing. Information specific
to a product may be obtained from the concerned Insurer.
