Hum A

Insurance and assurance

The term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen. When a person insures the contents of their home they do so because of events that might happen (fire, theft, flood, etc.) They hope their home will never be burglarized, or burn down, but they want to ensure that they are financially protected if the worst happens. This example

shows how it is a way of

spending a little money to protect against the risk of having to spend a lot of money. When a person insures their life they do so knowing that one day they will die. Therefore a policy that covers death is assured to make a payment. The policy offers assurance on death; even if the policy has a prescribed termination date the policy is still 1

assured to pay on death and therefore is an assurance policy.

An accidental death policy is not assured to

pay on death as the life insured may not die through an accident, therefore it is an insurance policy. A policy might also be assured for other reasons. For example an endowment policy is designed to provide a lump sum on maturity. Under certain types of policy the lump sum is guaranteed. Therefore, this may also be called an assurance policy. The test of whether a policy is assurance or insurance is that with an assurance policy the insured event will definitely occur whereas with an insurance policy there is a risk the insured event might occur.

2

1.2 LIFE INSURANCE Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the

happening

of

the

event

insured

against.

The contract is valid for payment of the insured amount during: •

The date of maturity, or

•

Specified dates at periodic intervals, or

•

Unfortunate death, if it occurs earlier.

3

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of

death

of

the

breadwinner.

By and large, life insurance is civilization’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. That of dying prematurely leaving a dependent family to fend for itself. 2. That of living till old age without visible means of

support.

Life Insurance Vs. Other Savings Contract of Insurance A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine

4

of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly

answered.

Any

misrepresentation,

non-

disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings

through

life

insurance

guarantee

full

protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire

amount

assured

(with

bonuses

wherever

applicable) whereas in other Savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly

5

because of the 'easy installment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case

the

employer

directly

pays

the

deducted

premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for

6

amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats.

7

Who can buy a policy? Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.

Policies

can

also

be

taken,

subject

to

certain

conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income and other relevant factors are considered by the corporation. Insurance for womens: Prior to nationalization (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalization of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up

8

to 30 years and if she does not have an income attracting Income Tax.. Medical and non-medical schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a

9

'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

10

COMPANY PROFILE

2.1 Introduction to Bajaj Allianz

Bajaj Allianz is a joint venture between 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. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of the world’s leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of two 11

wheelers and three wheelers in India and one of the largest in the world. Bajaj Allianz Life Insurance Company has developed insurance solutions that cater to every segment and age-income profiles. For companies

it

provides

comprehensive

'Employee

Benefit Solutions' (Group Term Life, EDLI, Gratuity, Superannuation, Keyman Insurance and more); for the individual InvestGain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked Plan), UnitGain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan, Unit Gain Single Pension & Unit Gain Easy Pension Plans and a new three year 6-in-1 Health Care Plan. Bajaj Allianz is poised for an accelerated growth in the market and has already become the fastest growing

12

private life insurance company in India. Bajaj Allianz has a pan-India presence of office network in 415 cities of the country and is aided with a strong and trained Agency network of over 70000 Insurance Consultants with 121 MRDT qualifiers in the calendar year 2004. Bajaj Allianz has also forged strong Bancassurance and Corporate Agency relationships and continues to build on new tie-ups for fast track growth and deep market penetration. Bajaj Allianz has launched a slew of need-based products to cater to each varied needs of the customer. portfolio

Currently of

26

Bajaj

products

products are in the pipeline.

13

Allianz and

has

more

a

product

need-based

Bajaj Allianz Life’s big entry into rural areas with 7 Regional Rural Banks tie-up

14

Bajaj Allianz Life Insurance Company Limited, the fastest growing life insurance company, has kick started it’s big leap to reach the rural heartlands with first of it’s kind tie-up with topmost & most successful Regional Rural Banks in the country and in doing so Bajaj Allianz Life will be able to provide valuable benefits of the most flexible and easy Life Insurance products to a vast array of the rural population. Tie-up with

these Regional

Rural

Banks

(sponsored

by

Syndicate Bank) will make available Bajaj Allianz life’s insurance policies to millions of people at over 1100 branches in rural areas. Bajaj Allianz life has forged partnerships with the following leading & profitable Regional Rural banks with extensive reach in rural areas: Name of the Regional Rural Bank No. Of Branches 1) Karnataka Vikas Gramin Bank 480 Branches (Karnataka) 2) Rayalseema Gramin Bank 150 Branches (Andhra Pradesh)

15

3) Gurgaon Gramin Bank 130 Branches (Haryana) 4) Sree Ananta Gramin Bank 81 Branches (Andhra Pradesh) 5) Pinakini Gramin Bank 102 Branches (Andhra Pradesh) 6) North Malabar Gramin Bank 160 branches (Kerala) 7) Prathama Bank

170 branches (Uttar Pradesh)

With these tie-ups Bajaj Allianz Life’s launches it’s major drive to reach the rural heartlands and to get access to the bottom of the pyramid, so as to provide the most flexible and simple Life Insurance products & services to the people in these areas. Bajaj Allianz Life is present in 500 towns, most of them being in non-urban and semi-rural towns and with this addition of 1200 branches in rural areas has ensured and even distribution of all of Bajaj Allianz Life’s products to all income segments of the of the society. These tie- ups (with the above mentioned banks) is a significant development and will effectively help the

16

company cater to the Insurance and savings needs of rural masses across the country.

About Bajaj

3.1 The Partnership: HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3-year joint venture agreement.

17

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting

the

IRDA

(Insurance

Regulatory

and

Development authority) Act passed in parliament. Despite

this

both

companies

remained

firmly

committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from

18

HDFC to form the core project team, based in Mumbai.Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate

in

the

Asset

Management

Company

promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000. 3.2

Incorporation

of

HDFC

Standard

Life

Insurance Company Limited: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. The ambition from as far back as October 1995 was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life was the only life company to be granted a certificate of registration.

19

HDFC

are

the

main

shareholders

in

HDFC

Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured 3.3 Mission: The aim is to be the top new life insurance company in the market.This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like•

Customer service of the highest order

•

Value for money for customers

20

•

Professionalism

in

carrying

out

business •

Innovative

products

to

cater

to

different needs of different customers •

Use of technology to improve service standards

•

Increasing market share

3.3 Values: •

SECURITY: Providing long term financial security to the policy holders will be our constant endeavor. Offering life insurance and pension products will do this.

•

TRUST: We appreciate the trust placed by our policyholders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.

•

INNOVATION:

Recognizing

the

different

needs of the customers, we will be offering

21

a range of innovative products to meet these needs.

3.4 Current Scenario HDFC Standard Life results for FY 2003-04; banc assurance and unit linked drive growth Insurance coverage crosses Rs. 13,500 crore mark. HDFC Standard Life Insurance Company Limited

declared

its

annual

results

for

the

financial year ending March 31st, 2004. The company generated new business premium of Rs. 232.5 crore in 2003-04 on annual premium income (API) basis. It registered a year-on-year growth of 76% and its corporate agency channel, including its banc assurance business grew by 150% to Rs 50 Cr. The recently launched unit linked business received good market response

22

and contributed 27% of business generated since its launch. Another significant achievement for HDFC Standard Life was that the cumulative insurance coverage,

i.e.

the

sum

assured

for

the

policyholders, crossed the Rs. 13,500 crore mark during the year. The company has covered over 450,000 lives so far. According

to

Mr.

Deepak

Satwalekar,

Managing Director and CEO, HDFC Standard Life, the growth in business in the past twelve months had

been

driven

by

HDFC

Standard

Life

partnering very closely with its banc assurance partners,

consolidating

its

presence

across

locations by increasing its sales force of trained financial

consultants

and

introducing

new

insurance and pension solutions on the unit linked platform. HDFC

Standard

Life’s

national

banc

assurance relationships with HDFC Bank and

23

Union Bank of India enabled it to reach many new customers. Its banc assurance partners and introduction of specialized products designed for the channel achieved this through a combination of geographical expansion. The banc assurance partners’ strengths were leveraged not just to achieve deeper and wider penetration, but also to

facilitate

payment

of

premium

for

our

policyholders. As a result, the corporate agency channel accounted for 22% of the company’s total new business. The

company

started

the

year

with

presence in 49 cities - one of the widest presences

among

all

new

life

insurance

companies. Over the year, it built greater depth in these markets and had 17,100 financial consultants as on 31st March 04 compared to 10,500 financial consultants on 31st March 03. All the new entrants have been trained to understand the needs of the consumer provide the right advice and maintain high service

24

standards. This quality of advice is reflected in the healthy persistence ratio of the company’s business - both on the individual and the group side. In January 2004, the company launched its unit linked insurance and pension plans through specially

trained

and

certified

Financial

Consultants. While elaborating on these plans Mr. Satwalekar said "HDFC Standard Life sees its presale advice as a clear differentiator. In pursuance of this strategy, HDFC Standard Life is the only company to have a special training followed by a test before allowing Financials Consultants to advise customers on its unit linked products." HDFC Standard Life’s group business also grew significantly in 2003-04 covering over 73,000 lives for a sum assured of over Rs. 4300 crores. During the year, the company also launched HDFC Gratuity Plan to offer a wider range

of

employee

corporate clients. 25

benefit

solutions

to

its

DISTRIBUTION STRATEGY

FINANCIAL CONSULTANT

CORPORATE AGENTS

DISTRIBUTION CHANNEL

BROKERS

BANC

BANC ASSURANCE

GROUP CHANNEL

ASSURANCE:

Banc

assurance

in

its

simplest form is the distribution of Insurance products through a bank's distribution channel. Banks can straightaway leverage their existing capabilities in terms of database and face-to-face contacts to market Insurance products. HDFC Standard Life’s is having national banc assurance

26

relationships with HDFC Bank and Union Bank of India. CORPORATE AGENTS: Corporate agents works like a franchisee of an insurance firm, they have their work force that they recruit of their own.

BROKERS: Brokers are those who represent several companies and place Insurance policies for their clients with the company that offers the best rate and coverage. Golden trust financial services are the brokers who sell the policies of HDFC Standard Life. GROUP CHANNEL: Group channel marketing is the selling of voluntary

(employee-paid)

Insurance and financial products at the worksite. The products may be on either an individual or group platform and are usually paid through periodic payroll deductions. The company itself sells in this channel.

27

FINANCIAL

CONSULTANT:

Financial

consultants are those independent seller who are tied up with the company to sell their products. In every insurance company finacial consultant play a vital role in enhancing the business. Majority of the selling is through this channel only i.e, by Financial consultants.

28

FINANCIAL CONSULTANT 6.1 Requisites for a financial consultant? 1. Section 42(4) of the amended Insurance Act, 1938 states an agent to be one who is not: A minor a. Found to be of unsound mind by a court of competent jurisdiction b. Found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit such offence by a court of competent jurisdiction c. Found guilty of having knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.

2. And Who: a. Possesses a pass in 12th standard (reduced to 10th standard for rural agents)

29

b. Has been trained for a minimum period of four weeks; and c. Has a pass in an examination prescribed by the Authority 6.2 Training Of Financial Consultants The Company gives training to financial consultants to: a. Impart

him

(her)

complete

knowledge

of

products, b. Imbibe in him (her) the importance of Pre-andPost sale service to customers, c. Equip him (her) as a trusted professional capable of advising persons on "Insurance"; d. Make him (her) as an efficient salesperson; e. Enable him (her) to master various techniques in the area of sale of insurance products; f. Instill in him (her) an ethical code, which will inform all his (her) dealings.

30

B

6.3 Contents Of Training Program A Financial consultant has to undergo a training of 100 hrs for which the syllabus is 1. INTRODUCTION TO INSURANCE a. Purpose and Need of Insurance b. Insurance as a social security tool c. Role of Insurance in the development of economy d. Pooling of risks and resources

2. FUNDAMENTALS OF AGENCY LAW a. Agency Law including definition of who is an agent, what are his functions, who can become an agent, the kind of business he can procure, etc. b. Agents' Regulations c. Contract Act

31

d. Various intermediaries in the insurance market- agents,

brokers, surveyors,

consultants etc. e. Difference between an agent and a broker and other intermediaries f. Methods of remunerating the agent

3. LEGISLATIVE AND REGULATORY MATTERS a. Insurance Act, 1938 b. LIC Act, 1956 c. Insurance Regulatory & Development Authority Act, 1999 d. Consumer Protection Act, 1986 e. Ombudsman Scheme f. Various other Acts such as Income Tax Act, etc. connected with conduct of Life Insurance Business

32

g. Code of conduct in Advertisement & Publicity

areas.

4. PROCEDURE FOR BECOMING AN AGENT a. Pre-requisite for obtaining a license b. Insurance company sponsorship c. Obtaining a license- minimum age, educational

qualification,

practical

training d. Maintenance & Duration of license e. Termination of License: revocation or suspension/

termination

of

appointment f. Unfair Practices: Rebates; Prohibited Inducements

and

Discrimination;

twisting

and

poaching,

Misrepresentations comparison;

33

False

&

incomplete statements

regarding

insurance

companies

financial condition

5. FUNCTIONS OF THE AGENT a. Proposal Form and other forms for grant of cover. b. All material and relevant information. c. Financial and medical underwriting d. Family history, medical examination, special medical reports etc. e. Admission of Age f. Special reports, Moral Hazard report, etc. g. Advance payment of premium before acceptance of the risk: Sec. 64VB of the Insurance Act. h. Ensuring delivery of policy insured

34

to the

i. Revivals j. Nomination & Assignment

6. COMPANY PROFILE a. Organizational Set-up of the company. b. Corporate Mission c. Strengths of the company d. Market Share e. Product details f. Promotion Strategy g. The Actuarial Profession- role in life insurance companies h. Product Pricing- Actuarial aspects

35

i. Distribution Channels which the insurer has; - other distribution channels their relative merits and demerits j. Hierarchical

structure

for

agents-

Trainee Agent, Junior /Senior Agent etc.

7. FUNDAMENTALS/

PRINCIPLES

OF

LIFE

INSURANCE a. Utmost Good Faith b. Insurable Interest c. Pooling of similar risks 8. FINANCIAL PLANNING AND TAXATION a. Trends in Financial Services Market b. Other Savings Instruments like shares, units, capital markets, mutual funds, etc. vis-à-vis insurance c. Tax benefits under insurance policies. d. Life cycle- Needs

36

e. Solutions- Matching of the customers needs & requirements to that of the products available f. Comparison products

between

offered

vis-à-vis

different premium

chargeable, coverage, etc.

9. INSURANCE SALESMANSHIPSELLING TECHNIQUES a. Salesmanship - An Introduction b. Selling Process c. Pre-Approach d. Interview e. Objection f. Closing g. Service h. Consumer Education

37

10.COMPUTATION OF PREMIUMS/BONUSES a. Use of premium table in calculating premiums b. Premium rebates- mode rebates, large sum assured policies rebate c. Computation

of

premium,

extra

premium, rider premiums d. Computation

of

benefits-

Surrender

Value, Paid up Value etc.

11.INSURANCE DOCUMENTS a. Proposal Forms and other relevant forms b. First

Premium

Receipt/Renewal

Premium Receipt c. Policy Contract d. Endorsements e. Renewal Notice/ Bonus notices

38

f. Other Insurance Documents related to insurance

12.LIFE INSURANCE PRODUCTS a. Traditional/Unit Linked policies b. Individual and Group Policies c. With Profit and Without Profit Policies d. Different types of insurance productswhole life products, Interest sensitive products,,

Term,

Endowment,

Annuities,

Combination

plans

&

variations e. Policies

for

Physically

Females,

Children,

Handicapped

39

13.OPTIONS, GUARANTEES AND RIDERS a. Policy riders b. Policy options c. Policy guarantees

14.GROUP INSURANCE & SUPERANNUATION SCHEMES/ PENSION PLANS a. Special legal/other Features of group Insurance / Superannuation schemes b. Group insurance schemes - Employees Deposit Linked Scheme (EDLI) and Non- EDLI Schemes c. Gratuity schemes d. Superannuation

Schemes-

Money

purchase and Defined benefit Schemes e. Savings linked insurance policies f. Group annuity Schemes 40

g. Voluntary Retirement Schemes

15.HEALTH INSURANCE h. Critical Illness/ Dreaded Disease Plans i. Health Insurance riders j. Permanent Health Insurance k. Notification of claim, doctor's report, claim form, payment of claims

16.GOVERNMENT SCHEMES/ PROGRAMMES ON INSURANCE a. Details

of

different

Government

insurance schemes b. Subsidy provided by the Government for underwriting the schemes- SSGS, RGLIS, IRDP Scheme

17.RURAL INSURANCE 41

a. Definition of rural area b. Rural

Insurance

Schemes-

SSGS,

RGLIS, IRDP Scheme c. Targets in terms of total premium which should be completed by the agent d. Penalties for not meeting the laid down stipulations e. Special skills to market rural insurance schemes f. Details of Schemes specially designed for

the

rural

18.CLAIMS a. Intimation Procedure b. Claims Documents- Forms c. Settlement Procedures

42

areas.

19.AGENCY COMMISSION STRUCTURE

20.PERSONAL DEVELOPMEMT a. Personal

Business

Understanding

the

Goals

-

competition

and

enhancing time management skills, future prospects within the company. b. Marketing and Sales opportunities Identify

target

markets

and

build

relationship skills in the total planning sale. c. Target

Marketing

-

Develop

the

prospect customers profile and focus on new profitable target markets. d. Review the expanding market of aging adults e. Business Continuity - Emphasis on retaining the client by providing him up to date information on the changes

43

taking place, the benefits that he may enjoy because of changes in rules/ regulations/ change in company policy, sending out renewal notices, etc.

21.BEHAVIOURAL ASPECTS a. Motivation b. Morale c. Communication Skills d. Persuasive Skills e. Analytical Ability f. Behavior with other Agents/ Employees of

Insurer

22.FEEDBACK TO COMPANIES ON CUSTOMERS REQUIREMENTS WITH REGARD TO THEIR

44

INSURANCE NEEDS AND MISCELLANEOUS MATTERS

a. New requirements of the customers b. Modifications on the coverage, rates, etc. of the customers c. Code of conduct laid down by IRDA d. Penalties e. Dispute resolution forum set up by IRDA

for

between insurer. nature

adjudication the

Agent

Feedback of

resolution.

45

and

to

disputes

of

disputes customer/

IRDA &

on

methods

the of

6.4 Work of a financial consultant The Financial consultant is the interface between the customer and the Insurance Company. The agents should be able to accomplish the following service. •

Assessing and analyzing the client’s risk profile

•

Finding

the

best

product

or

products

available in the market •

Negotiating the best deal available

•

Continuity of service throughout the period of Insurance

•

To ensure proper documentation such as personal

form,

regarding

health,

personal Moral

statement

Hazard

Report,

Agent’s confidential report etc •

Clear customer’s doubts and educate them about the products

46

•

Provide printed literature about products in English and the regional languages

•

Should follow the code of conduct laid down by IRDA and Bajaj Allianz Life Insurance Company.

•

To

help

insured

in

nominations

and

assignments, loans surrenders, foreclosures etc •

OTHER

To help the insured in settlement of claims. MAJOR

WORK

PERFPRMED

BY

AN

FINANCIAL CONSULTANT: Underwriting: Underwriting is basically the process of screening, scrutinizing, and making decision on the proposals of the insurance. This process classifies applicants for Insurance by identifying characteristics Such as age, gender, health, occupation, lifestyles, people

with

similar

characteristics

are

grouped

together and are charged a premium based on the

47

group’s level of risk. It is the role of the agent to gather all information, which might influence the insurance

amount

and

provide

them

to

the

underwriting department. Financial consultant’s confidential report: It is a report giving information about the amount and sources of the prospect’s income his financial position and also information obtained by the agent

from

his

personal

knowledge

or

through

enquiries made by the agent. It serves as a check on the information supplied by the prospect in the proposal

form

and

personal

statement.

The

underwriter determines the risk on the basis of all this information’s. The underwriter depends solely upon the

financial

consultants

confidential

report

to

ascertain whether there is moral hazard.

RESEARCH METHODOLOGY Research can be defined as systematized effort to gain knowledge. A research is carried out by 48

different methodologies, which have their own pros and cons. Research methodology is a way to solve research problem along with the logic behind them. Thus when we talk of the research methodology we not only talk of the research methods but also consider the logic behind the methods we use in context of our research study and explain why we are using a particular method or technique and why we are not using others so

that

research

results

are

capable

of

being

evaluated either by the researcher himself or by others. Research

methodology

means

the

method

carried out to study the problem. It shows the type of the sample design used, its size and the procedure used to draw sample. The extent of precision achieved and the method used for handling any special problem during the course of the study.

49

Generally a research methodology comprises of the following steps.

50

Explanation: S.No.

General

Applicability

Methodology

Methodology

Step

To

decide

1.

objective

of

the To find the prospective

of

the financial consultant for

study.

the company..

Step

To

decide

the Descriptive research is

2.

research design

Step

To

3.

source of data

Step

To

4.

collection form

Step

To

5.

sampling

applicable to the project

determine

design

the Primary

data

is

applicable to the project. data Survey

method

is

applicable.

determine Non-probability stratified design sampling is applicable.

and sample size. Step

To

organize

6.

conduct

and Personal

interview

the through

structured

fieldwork.

questionnaire is used to collect the primary data.

Step

To

process

7.

analyze

and To study the perception the and plans of the people.

collected data. Step

To

prepare

8.

research report

the Finding and analysis of the information. 51

collected

Step 1: To decide the objective of the study to be carried out.

 To Study about Bajaj Allianz Life Insurance.

 To know the Distribution channel of Bajaj Allianz Life Insurance.

 To

find

the

prospective

financial

consultant for the company. Step 2: To decide the research design What is a research design? Research

design

is

a

plan,

structure,

strategy of investigation conceived so as to obtain answers to research question and control variance. There are three types of research design system.

 Exploratory Research  Descriptive Research

52

 Casual Research Among the above mentioned types descriptive research

design

has

been

chosen.

Descriptive

research design is used when the characteristics of a certain group, specific predictions or association of certain variables are to be determined. The prime focus of this research is to find an efficient sales force, of financial consultants. In order to study the characteristics and variables, crosssectional analysis was conducted by using field survey method. In the process of field survey, a questionnaire was developed and circulated to the respondents, which formed the basis for the entire research. Step 3:

To determine the source of data.

Data sources are the data resources or collection of fresh data to obtain results. There are two types of data sources:

 Primary Data: - Primary data is that data, which is collected fresh and thus, happen to be original in character. 53

 Secondary Data: - Secondary data is any data, which have been gathered earlier for some other purpose.

Among

the

above-mentioned

types

of

data

primary data was used for the study and analysis of the objectives of this project. Also the secondary data proved to be helping hand in framing up the insurance industry scenario and also the relevant topics in the entire project report. Characteristics of Primary Data:

 It is an extensive mode of collecting data.

 Lot of time is spent.  It gives accurate result if sample is efficiently selected.

 The data used is not outdated. Reasons for selecting Primary Data:

54

In

terms

Questionnaire

of was

Professionals,

primary

data

prepared

Unemployed

to

a

structured

interview

students,

the

housewives,

Investment consultant, Post office agents & others in Raipur District from various localities. Analysis clearly reflected the views and preferences regarding the perception of the people

towards

joining

Bajaj

Allianz

Life

Insurance. Step 4:

To design Data Collection.

There are two types of modes to collect the data:

 Observation Method.  Survey Method. As far as the data collection method for this project is concerned, designing the data collection method for this project is concerned; designing the data collection forms or survey forms is applicable to the project. The method selected is survey method.

55

A Survey can be conducted by:

 Personal Interview  Telephonic Interview  E-mail  Post Amongst the above methods personal interview method was conducted to gather information in detail. This method was chosen because along with the study of project’s primary objective i.e. study of people and convince them to join as financial consultant for Bajaj Allianz Life Insurance. Data

is

collected

by

structured

questionnaire and schedule. Step 5:

To determine sample design and sample

size. As soon as the researcher is ready with a formulated and

developed

questionnaire

he

research has

to

56

design decide

including whether

a the

information is to be collected from all the people comprising the population.

There are two types of survey:

 Sample Survey  Census Survey

From the two Samples survey is applicable to this project. Characteristics of sample survey:

 It is speedy.  It is cheaper than Census survey  It is economical.  More detail information is gathered. Following are the different types of sample survey:

57

1. Random Sampling. 2. Systematic Sampling. 3. Stratified Random Sampling. 4. Disproportionate Stratified Sampling. 5. Cluster Sampling. 6. Multi stage Sampling. 7. Replicated Sampling. 8. Area Sampling. 9. Quota Sampling. 10.Judgment Sampling. From these techniques Judgment Sampling was used to carry out the survey. Judgment Sampling as the name implies, suggests that the sample from the total population is purposively selected.

Sample Size Specification:

58

 100

which

Unemployed

includes

Professionals,

students,

housewives,

Investment consultant, Post office agents & others

in

Durg

District

from

various

localities.

 Entire coverage for research was in Durg District, Chattisgarh State.

Segmentation of people.

Field Methodology The Methodology adopted in the field to collect the data is represented diagrammatically below,

Meeting with people.

Filling up Questionnaire& 59 Schedule

TABULATION & ANALYSIS In order to determine the willingness of the people to become a financial consultant for HDFC Standard life ltd in Durg district, data collected by surveying is treated for a chi- square test. Responses

60

to

the

parameters

employees,

house

consultants,

post

like

professionals,

wives, office

students,

agents

and

working

investment others

are

interested or not to be a part of HDFC. Hence, the hypothesis for the test would be, Ho – Not interested to work for HDFC Standard Life. H1 – Interested to work for HDFC Standard Life. The collected data is categorized as mentioned in the table and treated for a chi-square test, considering relative hypothesis. Based on the results of chi-square test hypothesis would be accepted or rejected.

61

Willingness

to

be

an

financial

Consultant for HDFC YE N Total S

O

2

28 30

1

39 40

House wives

-

25 25

Students

3

27 30

2

38 40

1

14 15

-

20 20

Professionals

Working Employees

Investment Consultants Post

office

Agents Others

19 Total

9

200 1

Degrees of freedom (df) = (rows - 1) x (columns 1) df = (7-1) x (2-1) = 6

62

Looking up critical value for chi at df = 6 Significance level: 0.5; Critical value: 5.348 Sig. 0.05: chi is greater than or equal to 5.117 Chi-square = 5.117 The distribution is significant. Chi is less than or equal to 5.348(Critical value), So Null hypothesis is selected. H0: Not interested to work for HDFC Standard Life.

H1:Willingness to be an financial Consultant for HDFC YES

NO

Total

Professionals

2

28

30

Working Employees

1

39

40

House wives

-

25

25

Students

3

27

30

Investment Consultants

2

38

40

Post office Agents

1

14

15

Others

-

20

20

Total

9

191

200

63

rki

ng E

Ot he

Fig.1

64

rs

mp loy ee Ho s us ew ive In v s es S tm tu d en en tC ts o ns Po ult st an off ts ice Ag en ts

Wo

Pro fes sio na ls

45 40 35 30 25 20 15 10 5 0 YES NO

Reason for not joining HDFC Standard Life

Associated with another company Not have the time Low sales Private player Lack of awareness

W O R

PR O FE KI SS N IO G N EM AL PL O YE H O ES U SE IN W VE IV ST ES ST M U EN D EN T O TS PO N SU ST LT O FF AN IC T E AG EN T O TH ER S

Number of people

45 40 35 30 25 20 15 10 5 0

Category of people

Fig 2. The figure shows the major reasons why people are not ready to join HDFC Standard Life as an financial

consultant.

The

65

people

represents

the

different

groups

employees,

such

as

housewives,

professional,

students

consultant, postoffice agent & others.

66

,

working

investment

LIMITATIONS

Despite

the

possible

efforts

in

conducting

the

research, there were some unavoidable situations, which limited the scope of the project.

 Considering the population, the sample taken for the present study seems small and hence further investigation may be required.

 Due to the confidentiality factor some of the data was not to be disclosed.(Commission Structure)

 Time available for research was very short so certain aspects have been overlooked.

 A large area was to be covered within a short period of time.

67

FACTS about HDFC Standard life

 HDFC is doing good business in raipur but it has to start its operation in Bhilai and durg.

 HDFC standard life makes a lateral entry in the market as ICICI Prudential; Bajaj Alliance has already started its operations.

 The death claims are very low at HDFC Standard

life

as

they

are

very

much

concerned about whom to sell the policies.

 The monetary and non-monetary benefits are almost at par with other players in insurance industry.

68

 HDFC has a good brand image of its bank and house loan division, which is being encased by HDFC Standard life.

 HDFC is only using print media and hoardings for their advertisement.

 Regarding the sale force the company is facing

stiff

competition

with

LIC,

ICICI

Prudential and others.

FINDINGS

 Clients are more inclined to join LIC as an agent as per them insurance means LIC, i.e. the policy of LIC are easy to sell.

 If the clients are joining HDFC the segment is

more

consultant

of

tax

and

consultant, other

people

investment who

are

engaged in investment business that is

69

because

they

want

to

diversify

their

portfolio.

 HDFC lacks in sales promotion strategy.  Majority of professionals like CA, Tax planner want a corporate agency rather than to be a financial consultant.

 Those who are young that is in the age group of 20-35 years are ready to work for HDFC a private insurance firm above the age group the people have doubt about the reliability of private insurance firm.

 There are seven to eight players operating in Bhilai, Durg region and they are facing a lot of competition to appoint the agents who can work for them.

 HDFC is too selective in making an financial consultant rather than to appoint any one like in LIC.

70

 Many BSP employees are ready to join HDFC but they are not having the time for training. Thus they want Internet based training if available.

 As per the investment consultant who have the BSP and other government clients want HDFC to make their premium collection monthly through the salary account of the individual rather than half yearly, quarterly and yearly basis.

71

SUGGESTION Building Brand Awareness HDFC

Standard

life

can

contribute

creating

awareness by means of: •

Holding

seminars

and

informal

corner

meetings •

Distributing brochures / handouts giving complete information of their products.

•

Advertisements speaking of the utilities of the being a Financial Consultant instead of being loaded with slogans.

Premium Collection Cash or cheques pay the Insurance premium till date that to on quarterly, half yearly, or on yearly basis. Rather the customer should be given the choice to give the premium from their salary account. Promotion Strategy 72

• HDFC Standard Life should come out with a large volume of advertisement so that the people are aware about the company. • Electronic media has a very effective reach in and every potential household, but HDFC Standard Life is not using this media. • The company should provide more nonmonetary benefits to attract more financial clients. •

Provide printed literature about products in English and the regional languages.

Alternative Distribution channel. Rural areas and small towns offer a huge potential to the Insurance companies. This potential was largely untapped due to inadequate distribution. The key to market access in these areas can be: a. Co-operative societies b. Village Panchayats

73

c. Post Offices

NGO-This

channel

could

be

used

to

increase

awareness about the Insurance products. As many NGOs have strong presence and a positive reputation in rural areas they can prove to be an effective channel.

Personal advisors such as accountants, lawyers, doctors and tax planners Mutual Funds: Mutual Funds agents could capitalize on their existing customer bases to sell policies. Hospitals: A tie up with hospital chains for selling Insurance can be an effective channel to reach a wide base of customers.

74

CONCLUSION In a country of 1 Billion people, sky is the limit for insurance products. There is a vast untapped potential waiting to be mined particularly for life insurance products. But the problem is to an audience who spelled insurance as LIC; the initial breaking-through by private insurers is not an easy task. Being in the insurance business for about 50 years, LIC had already

75

carved a name for itself in the Indian psyche. Insurance being a long term contract, an established name

means

a

feeling

of

security

and

more

importantly LIC policies come with the safety tag - the most touted government guarantee. So it’s not easy to break the mold. Though HDFC Standard Life is doing well in national context but to tap the market in the city like Bhilai and Durg it has to focus on it’s marketing strategy especially the promotional aspect. Majority of the clients who want to be associated with HDFC Standard Life as Financial consultant is only to diversify

their

portfolio.

Opening

up

the

sector

certainly means more awareness amongst customers and higher expectations, which can be satisfied by new

products,

better

packaging

and

improved

customer service & a last but not the least a competent work force. Potential buyers for most of this Insurance lie in the middle class. Both new and existing players will have to explore new distribution and marketing channels to reach them that is to have the work force which knows the psyche of the people and can have the command to convince them to buy the insurance products. 76

REFERENCES Bibliography: G.C.Beri.MarketingResearch.,TheResearchProcess’.,‘Int erviewing’., in Tata McGraw-Hill Publishing, 2001Pg.no: 41- 48 Richard I.Levin and David S.Rubin, Statistics for Management, ‘Chi-Square Analysis’ in Prentice Hall of India Pvt., Ltd, 7th Edition, 1997. C.R.Kothari,

Research

Methodology,

‘Sampling

Techniques’ in Wishva Prakashan, 2001

Webliography: www.hdfcstandardlife.com Company Profile. www.indiainfoline.com:

Marketing Strategy Of

Insurance Co.. www.insuremagic.com:

About Private

Insurance Companies www.moneycontrol.com: Consultants

77

About Financial

www.indiatimes.com:

About Insurance

News. www.quirks.com:

Research Terms

(Glossary) www.goergetown.edu:

Chi-Square test

www.google.co.in:

Search engine for

secondary data source

ANNUAL REPORT 2004-05 1 The Indian economy has been growing and has become one of the fast growing economies in the world. The GDP growth in 2004-05 at 6.9 per cent though higher than the long term average growth however was lower than the growth registered in 2003-04. This was mainly because

of

insufficient

rainfall,

resulting

in

lower growth in agriculture sector. This shortfall was compensated by growth in the industry and

78

services sector augured by helpful economic growth

in

recovery

other in

economies. 200405

The

driven

industrial by

the

manufacturing sector was due to improvement in

domestic

climate,

demand,

increased

positive

business

investment

confidence

and

buoyant external demand. Industrial production in 2004-05 has picked up by a rebound in global trade

business

and

increased

consumer

confidence. Industrial growth was across basic goods,

capital

goods

and

consumer

goods.

Along with the industrial sector, services sector has also shown a higher growth at 8.8 per cent in 2004-05. The observed growth in finance and insurance expansion increase

sector in in

was

nonfood bank

facilitated credit

deposits

by

strong

coupled and

surge

with in

insurance business. The improved performance in ‘finance, insurance, real estate and business services’ contributed 12.9 per cent to growth in the real GDP. The saving rate has increased in

79

2003-04, the year for which the latest data available is 28.1 per cent compared to 26.1 percent in 2002-03. The major contribution was from the household sector even though there has been a shift from the financial savings to savings in the form of physical assets by the households. Household savings in the form of financial assets as a percent of GDP worked out to 14 per cent in 2003-04 as against 13.1 per cent in the previous year. Inflation rate as measured by changes in the Wholesale Price Index, on a point-to-point basis, was slightly higher at 5 per cent in 2004-05 compared to 4.6 per cent in 2003-04. On an average basis it was higher at 6.4 per cent than that of 5.4 per cent in the previous year. Across many countries the inflation rates were at higher levels than in the previous

year

forcing

the

central

banks

to

reverse their accommodative monetary policy for

stabilizing

inflationary

expectations.

The

higher inflation was mainly due to crude oil

80

because of increased global demand over the supply positions. In the Indian context RBI and the Government took timely and appropriate corrective actions so as to ease the inflationary pressures. remained

The

domestic

broadly

variations, encouraging secondary

because

stable, of

despite

strong

corporate market,

financial

and

markets intra-year

fundamentals,

results,

buoyant

investor

friendly

regulatory frame work.

OVERVIEW Retail investors started investing in the primary market

and

there

were

number

of

primary

issues in the market. The relative size of the collateralized segment of the money market was higher than the uncollateralized segment. The spread between the inter-bank call money rate and the market repo rate narrowed. The government securities market during 2004-05 was governed by domestic liquidity conditions

81

movements in international interest rates and domestic inflationary expectations. The foreign exchange

market

remained

stable

and

the

rupee moved in a wider range. On an annual average basis while rupee appreciated against US Dollar, it weekend against Euro, the Pound Sterling and Japanese Yen. By the end of March 2005 India held fourth largest stock of foreign exchange

reserves

emerging

economies

including in

Asia.

gold The

among

mid

term

review of the Reserve Bank of India highlighted the

impressive

performance

during

the first

quarter of 2005- 06 based on improvements in the real activity and double digit growth in industrial production and robust services sector. The Central Statistical Organisation has revised the growth in the first quarter of 2005-06. The RBI based on this and on its assessment has placed GDP growth in 2005-06 at 7.0 – 7.5 per cent. The overall performance of the economy was also reflected in the insurance industry.

82

The premium underwritten in India and abroad by life insurers in 2004-05 increased by 24.31 percent over the previous year. In the case of non-life insurers the corresponding growth was 12.09 per cent. The combined growth after adjusting for inflation was 9.7 per cent. The contribution

of

first

year

premium,

single

premium and renewal premium were 19.16 per cent,

12.47

per

cent

and

68.36

per

cent

respectively. The first year premium including single premium recorded a growth of 32.49 per cent driven by a significant jump in the unitlinked business. During the year, the four public sector non-life insurers reported a growth of 4.77

per

whereas

cent the

in eight

underwriting private

of

premium

sector

insurers

reported a growth of 55.35 percent. The market share of the private insurers has increased to 20.07 per cent. The number of policies written by the private insurers increased by 54.80 per cent whereas for the public sector insurers the

83

increase was 9.66 per cent. The industry also had

to

face

devastation

the

challenges

caused

by

the

due

to

the

Tsunami

on

December 26, 2004 and its aftermath affecting the eastern coast of India. The insurers rose to the occasion and took proactive steps to ensure expeditious settlement of claims through the setting

ANNUAL REPORT 2004-05 2 Setting up of special cells besides waiving some of

the

procedural

requirements

in

case

of

genuine claims. In some cases they have also publicized the measures adopted by inserting advertisements Authority

in

the

monitored

national the

dailies.

progress

in

The the

settlement of claims in a format designed for

84

this purpose on a monthly basis. A total of 467 claims amounting to Rs. 488 lakhs were booked by the life insurance companies while 2526 claims

amounting

to

Rs.

8649

lakhs

were

booked by the non-life insurers. While only an amount

of

Rs.

52

lakhs

(12

cases)

was

outstanding for life insurance companies as on 31st March 2005, an amount of Rs. 6942 lakhs (362 cases) was pending with non-life insurers as on March 2005. Another calamity to strike in July

2005

Government

was of

floods India

in and

Maharashtra.

The

IRDA

the

advised

insurers to ensure speedy settlement of claims by

setting

up

special

cells

besides

waiving

some of the procedural requirements in case of genuine

claims.

IRDA

in

order

to

facilitate

expeditious settlement of claims permitted inhouse surveyors to assess damage upto Rs. 50,000/-

as

against

the

normal

limit

of

Rs

20,000/-. The Authority closely monitored on a weekly basis the number of claims reported,

85

number

of

claims

settled,

and

claims

outstanding both in number and in quantum. With this experience in mind, it is necessary that

insurers

management

need cells

to

and

set

make

up

disaster

concerted

and

coordinated approach to tackle such calamities. The Authority has always been accommodative in

relaxing

or

waiving

the

procedural

requirements wherever necessary. As a part of developmental role of IRDA, IRDA has finalized and

issued

guidelines

on

Micro-insurance.

These guidelines were issued after discussing at various forums. Micro-insurance will meet the need for having insurance products which can be afforded by the rural and urban poor. The Regulations

on

Micro-insurance

provides

a

platform and rules to procure insurance for the targeted

segment

of

the

society.

The

regulations provide for a tie up between a life & a non-life insurance company for distribution of insurance products to improve the penetration

86

of insurance in the selected segment. Thus cross-selling is permitted in this area by the Authority. For encouraging the sale of Microinsurance products, the Authority has mandated that these would form part of the social and rural obligations of an insurer prescribed under the

provisions

of

the

Insurance

Act,

1938.

Considering that many insurers are vying for unit

linked

business

and

for

protecting

the

interest of the policyholders the Authority is finalizing the guidelines in this regard. The Authority has attached great importance to the growth Health insurance in India. One of the reasons for low penetration in India is the lack of regulations in the health sector resulting in exposure

of

the

beneficiaries

to

various

malpractices present in the system. As a follow up

of

the

recommendations

Insurance Working decided insurance

to

Group,

establish

Unit

in

IRDA.

87

of

the

Health

the Authority

a

separate In

the

has

Health

context

of

ensuring collection and maintenance of quality data by the insurers, indispensable for smooth transition

into

a

detariff

regime,

IRDA

has

outlined a roadmap relating to various steps to be

taken

by

the

insurers

in

the

areas

of

Underwriting, Rating of risks, Policy terms and conditions, Corporate governance and the Role of Tariff Advisory Committee. In a nutshell these guidelines

emphasize

the

importance

of

improved internal capabilities and procedures and need for sophisticated actuarial/ statistical analysis for rating of risks. As per the road map, the tariffs will be discontinued effective 31st December 2006.

Performance in the first half of 2005-06 (i) Life Insurers The life insurers underwrote a premium of Rs. 11323.13 crores during the six months in the current financial year as against Rs. 8425.06 crores in the comparable period of last year

88

recording a growth of 34.4 percent. Of the total premium

underwritten

LIC

accounted

for

Rs.8409.09 crores and the private insurers with Rs. 2914.03 crores. The premium underwritten by the LIC and the new insurers grew by 23.08 per cent and 82.94 per cent, respectively, over the corresponding six months period in the previous year. The number of policies written at the industry level increased by 21.48 percent. As against this increase, the number of policies written by LIC increased by 17.69 per cent whereas in the case of private insurers the increase premium

was

60.52

per

underwritten,

cent.

Of

individual

the

total

premium

accounted for Rs. 9849.41 crores (growth of 47.07 percent) and another Rs.1473.72 crores from the group business (a decline of 14.70 per cent). In respect of LIC the growth in individual and group business was 17.69 per cent and 9.70 percent respectively. However, in the case of private insurers the individual and group

89

business increased by 94.73 percent and 18.03 per cent respectively. The market share of LIC in terms of premium collection was 74.26 per cent while in the case of number of policies underwritten it was 88.32 percent respectively. In the corresponding period of the last year these shares were 81.09 per cent and 91.16 per cent respectively. The number of lives covered under

the

group

scheme

was

41.87

lakh

recording a growth of 34.87 percent

B. APPRAISAL OF INSURANCE MARKET

The insurance sector was opened up in the year 1999 facilitating the entry of private players into the industry. With an annual growth rate of 24.31 per cent and the largest number of life insurance policies in force, the potential of the Indian insurance industry is

90

huge. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the

passage

Development

of

the

Authority

Insurance (IRDA)

Regulatory Bill,

lifting

and entry

restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. According to CSO, the insurance and banking services’ contribution to the country’s GDP is 7.1 per cent out of which the gross premium collection forms a significant part. Life insurance penetration in India was less than 1 per cent till 199091. During the ‘90s, it was between 1 and 2 per cent and from 2001 it was over 2 per cent. In 2003-04 it was 2.4 per cent. The impetus for increase is due to the active role played by IRDA in licensing private players and taking positive steps in increasing the insurance awareness among the people. Besides, the insurance companies in general and private insurance companies in particular, are reaching to so far

91

untapped potential in rural areas with aggressive campaign by offering suitable products ANNUAL REPORT 2004-05

AGENTS LICENSED BY THE AUTHORITY (2004-05) (INDIVIDUAL AND CORPORATE) LIFE INSURERS Individual Agents Corporate Agents Total

Name New

Renewal

Total

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.

32,112

568

32,680 TATA AIG LIFE INSURANCE CO. LTD.

16,770

1009

17,779 AMP SANMAR INSURANCE CO.LTD.

4,874

139

5,013 BIRLA SUN LIFE INSURANCE CO.LTD.

5,025

450

5,475 AVIVA LIFE INSURANCE CO INDIA PVT. LTD.

3,818

1

3,819 HDFC STANDARD LIFE INSURANCE CO LTD. 10,356

92

9,310

1046

ICICI PRUDENTIAL LIFE INSURANCE CO LTD.

28,019

1911

29,930 ING VYSYA LIFE INSURANCE CO. PVT. LTD.

7,588

132

7,720 LIFE INSURANCE CORPORATION OF INDIA

129,394

224379

6,475

523

353,773 MAX NEW YORK LIFE INSURANCE CO.LTD. 6,998 METLIFE INDIA INSURANCE CO. PVT. LTD.

3,324

50

2,657

319

3,374 KOTAK MAHINDRA LIFE INSURANCE CO.LTD. 2,976 SAHARA INDIA LIFE INSURANCE CO. LTD .

1

0

1 SBI LIFE INSURANCE CO. LTD.

2,006

169

2,175 Sub Total 230696

251,373 482,069

ANNUAL REPORT 2004-05 LIFE INSURERS

93

Name

Urban

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD

Rural

Total

. 28912

3768

32680

TATA AIG LIFE INSURANCE CO. LTD.

17590

189

17779

AMP SANMAR INSURANCE CO.LTD.

4226

BIRLA SUN LIFE INSURANCE CO.LTD. AVIVA LIFE INSURANCE CO INDIA PVT. LTD.

787

5432

5475

117

3819

1032

10356

29838

92

29930

ING VYSYA LIFE INSURANCE CO. PVT. LTD.

7404

316

7720

LIFE INSURANCE CORPORATION OF INDIA

173958

179815

353773

MAX NEW YORK LIFE INSURANCE CO.LTD.

6899

99

6998

HDFC STANDARD LIFE INSURANCE CO. LTD. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

3702

43

5013

9324

METLIFE INDIA INSURANCE CO. PVT. LTD.

3310

64

KOTAK MAHINDRA LIFE INSURANCE CO.LTD.

2772

204

2976

1

0

1

SAHARA INDIA LIFE INSURANCE CO. LTD.

3374

ANNUAL REPORT 2004-05

APPOINTED ACTUARIES OF LIFE INSURERS (as on 31 st March, 2005) Bajaj Allianz Life Insurance Co. Ltd.

94

S. N. Bhattacharya

Aviva Life Insurance Co. India Pvt. Ltd Birla Sun Life Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Co. Pvt. Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd. MetLife India Insurance Co. Pvt. Ltd. Kotak Mahindra Life Insurance Co. Ltd.

K. K. Wadhwa K.. Gopalakrishnan N. D. Taket V. Rajagopalan A. Subramanian G. N. Agarwal R. P. Sarma K. Sriram James E. Thompson

Sahara India Life Insurance Co. Ltd. SBI Life Insurance Co. Ltd. TATA AIG Life Insurance Co. Ltd.

K. K. Dharni R. Kannan Phuong Chung

ANNUAL REPORT 2004-05 INDIAN ASSURED LIVES MORTALITY (1994-96) (modified) ULTIMATE

Ag

Mortality

Age

Mortality

e 0

rate 0.001630 0.000960

50 51

rate 0.005244 0.005819

0.000670

52

0.006443

0.000620

53

0.007116

0.000470

54

0.007839

1 2 3

95

4 0.000420

55

0.008611

0.000380

56

0.009433

0.000400

57

0.010294

7 8

0.000400

58

9

0.000400

59

0.000380

60

0.011951 0.013073

0.000450

61

0.014391

0.000530

62

0.015904

0.000650

63

0.017612

0.000713

64

0.019516

0.000770

65

0.021615

0.000823

66

0.022724

0.000873

67

0.025617

0.000919

68

0.028823

0.000961

69

0.032372

0.000999

70

0.036294

0.001033

71

0.040623

0.001063

72

0.045392

0.001090

73

0.050639

5 6

0.011025

10 11 12 13 14 15 16 17 18 19 20 21 22 23

96

0.001113

74

0.056404

0.001132

75

0.062728

0.001147

76

0.001159

77

0.001166

78

0.001170

79

0.001170

80

0.001171

81

0.001201

82

0.126553

0.001246

83

0.139067

0.001308

84

0.151077

0.001387

85

0.162298

24 25 0.069655

26 0.077231

27 0.085502

28 0.094519

29 0.104331

30 0.114992

31 32 33 34 35 0.001482

86

0.174149

36 0.001593

87

0.186638

0.001721

88

0.199775

0.001865

89

0.213560

0.002053

90

0.002247

91

0.243072

0.002418

92

0.258782

0.002602

93

0.275109

37 38 39 0.227995

40 41 42

97

43 0.002832

94

0.292031

0.003110

95

0.309522

0.003438

96

0.327549

0.003816

97

0.346073

0.004243

980

44 45 46 47 0.365052

48

List of Prospective client with their contacts

NAMES

Mobile 98

1) PRABHUT KUMAR

no. 9300009

2) ROHIT SHUKLA

010 98279

3) VIVEK AGARWAL

08887 9893759 889

4) APARNA BHOUDREYA 5) RUPESH AGARWAL 6) VIKASH BANG 7) SNEHA 8) ARCHANA RUNIGHA 9) KUMAR SINHA 10) PAWAN KUMAR

9329854 607

11) ARUN JAIN 12) BHUPENDRA KUMAR 13 VANDANA MISHRA

9826494

14 YOGENDRA

455 9826153

BHARDWAJ 15 AMIT CHABLANI

222 9300488

16) CHIRAG THAKKAR

931 9425205

17) SURYAKANT

111 9893723

SHARMA 18) RAMRATAN SONI

642 9893405

19) AWDHESH

415 9893605

20) SANTOSH KASHYAP

466 9329854

21) VAIBHAV MARTHA

607 9827911 428

99

9329854 22) BRIJESH TIVARI 23) SAGARDAS

629 9827155

MANIKPURI 24) MONOJ DEWANGAN

208 9893097

25) ISRAIL SIR

420 9827153

26) ANIL DEWANGAN

437 9925524

27) SAMEEP KHAN

510 9329116

28) ROHIT DEWANGAN

010 9827984

29) ARUN NIRMAL

280 9826730

30) RAKASH BAJAJ

433 9300501

31) SHABBIR

326 9827461

32) PARMANAND LAHRI

486 9826167

33) SANTOSH SAHU

478 9826176

34) AJAY VARMA

126 9827401

35) SUNIL

549 9300478

36) BALKISHAN

062 9200789

37) PRAKASH SINHA

570 9300657

38) KUMAR SINHA

616 9329112 100

39) DINESH RAMANI

603 9425211

40) SUNIL AGARWAL

173 9425210

41) MOHIT KAHAN(MO)

030 9827163

42) SUMIT TIWARI

666 9827920

43) PANKAJ

012 9329093

44) AKSHAT

9945 9300221

45) VISHANT

947 9300200

46) RAVI SHANKA

746 9827153

BHARGAN 47) SUNIL PURANIK

311 9425526

48) SANTOSH MIYAL

138 9827483

49) S.K.VERMA

054 9425513

50) VIKKY GUPTA

096 9329551

51) MOHAN LAL SAHU

475 9826129

52) AJAY

102 9425209

53) SAWAPNIL MITTRA

273 9826196

54) CHINA BEAUTY

226 9827409

PARULAR

273 101

53) SWAPN MANDAL

9300201

54) MOHD.ABID KHAN

174 9300477

55) MR.ASHOK MIDHA

724 9827140

56) NARSINGH VARMA

705 9300292

57) GUPTA JI

199 9826111 187

102

PROBLEMSENCOUNTERED  IGNORANCE OF RURAL SECTOR  LACK OF BROUCHERS IN HINDI

LANGUAGE  PROBLEM IN SUBMITTING PREMIUMS FROM DISTANT PLACES  PLANS ARE NOT DESIGNED AS PER RURAL CUSTOMER

103

CONTD…… MOST OF THE FC’S ARE ACTIVE FOR SHORT PERIOD OF TIME  LACK OF AWARENESS OF INSURANCE PRODUCTS  LACK OF COMMUNICATION SKILL IN MOST OF FC’S  MOST OF YOUNGSTERS ARE NOT PERFORMING WELL  LACK OF PROFESSIONAL TELE-CALLER  PROPER CHANNEL OF DESIGNATION & COUNTER 

104

CONTD……..  NO PROPER IDENTIFICATION  PROBLEM IN OFFICE INTERIOR  DELAY IN COMPLETION OF FORMALITIES

DUE TO NON AVIALABILITY OF PHOTO AT INSTANT  PROBLEM OF DRAFT  PROBLEM IN EFFICIENTLY HANDLING OF DATA

105

SOLUTIONSTO PROBLEM BRANCHES ,CFC, INQUIRIES CENTER SHOULD BE INSTALLED.FOR EG.BAJAJ ALLIANZ  BROUCHERS SHOULD BE DESIGNED IN SIMPLE HINDI LANGUAGE  PROVISION FOR OPENING OF COLLECTION CENTERS  APART FROM URBAN, PLANS SHOULD ALSO BE DESIGNED ACC. TO RURAL 

106

CONTD….. THERE SHOULD BE GATHERING OF BOTH FC’S AND BRANCH AUTORITIES ON A QUATERLY BASIS REVIEWING THE PERFORMANCE BATCHWISE  THERE SHOULD BE REGULAR TRAINING SESSION IF ANY AMENDMENTS ARE MADE IN THE INSURANCE PRODUCTS  PRESENTATION SKILL AND COMMUNICATION SKILL SHOULD BE DEVELOPED AND MUST BE FORWARDED BY SDMs 

107

CONTD…..

 THE CRIETRIA OF INCENTIVE SHOULD NOT

BE STICKY BUT MADE FLEXIBLE ACC.TO AGE AND NEEDS  THERE SHOULD BE AN APPOINTMENT OF ATLEAST 2-3 PROFESSIONAL TELECALLER ON A REGULAR/PERMANENT BASIS

108

CONTD…….. THERE SHOULD BE DISPLAY OF DESIGNATION ALONG WITH “MAY I HELP YOU” COUNTER.  THERE SHOULD BE FORMAL DRESS WITH LOGO OF HDFC SLIC  OFFICE INTERIOR SHOULD DESIGNED BY KEEPING CONSUMER FACILITY IN MIND LIKE:  Common space for consumer  More safe blocks should bedesigned  Designing should somewhat like bank(private) 

109

CONTD……  

  

DIGITAL CAMERA SHOULD BE PROVIDED FOR INSTANT PHOTOGRAPHS IN BRANCH SPECIAL COUNTER SHOULD BE INSTALLED REGARDING THE DRAFT AFTER CONSULTATION WITH HDFC BANK THAT CAN HAVE FACILITY LIKE DRAFT CREATION ON CONCESSIONAL RATE PHOTOGRAPHS , MARKSHEETS AND OTHER DOCUMENTARY PROOF SHOULD BE SCANNED AND KEPT IN RECORD ADDITIONAL: THERE SHOULD SOME TIE-UPS WITH MOBILE COMPANY THAT CAN MAKE SMS ON REGULAR INTERVAL REGARDING PRODUCTS AND RECRUITMENT.

110

FC RECRUITMENT RECRUITED : 22 LICENCED TILL 31/07/06 : 03 MARKET SEGMENTATION a) STUDENTS b) GOVT.EMPLOYEE c) SAHARA AGENTS d) SHARE BROKERS e) TRANSPORTER f) TIMBER MARKET

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