Intership Program Final Report On

INTERSHIP PROGRAM FINAL REPORT ON HDFC STANDARD LIFE INSURANCE PVT LTD

SUBMITTED TO FACULTY GUIDE

SUBMITTED BY VINCY

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DECLARATION I Geo, hereby declare that the “Summer Internship Program Final Evaluation Report” On “HDFC Standard life insurance” submitted to the Madras University’ in the partial fulfillment of the degree of the Master Of Business Administration is a project work doneby me under the guidance of Mrs Faculty Guide of College, Thrissur.

Date:

VINCY

Place

2

,

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

, Faculty Guide,

Madras National College, Thrissur, for her valuable training, guidance and suggestion in the completion of the project.

I am greatly thankful to Mr. Sushil P.K (Company Guide) who guided me at every stage of this training by giving his valuable suggestions and recommendations.

Last but not the least, I am grateful to all people who directly or indirectly helped me in preparing this report.

Vincy

CONTENTS 3

 Introduction  Insurance industry in India  Overview of the company  Products  Distribution network  Board of directors  Associate companies  Who is who?  About the competitors  About the customers  Business objectives  Target/Task  Strategy  Analysis of performance  Limitations  Learning in ET  Awards / Rewards  Conclusion

IP DETAILS INC Center

: Thrissur 4

Enrollment No.

:

Name of the student

: Vincy

Program

: MBA

Name of faculty guide

: Mrs

Name of the company

: HDFC Standard life insurance

Name of the company guide

: Mr. Sushil P.K

Designation of the company Guide

: C.D.M

INTRODUCTION Executive training itself is Business, Communication, Leadership, Team Building and Employee or Student Training Program. Training refers to teaching of vocational or practical skill and knowledge that relate to specific useful competencies. It forms the core of apprenticeship and backbone of content at technical college and polytechnics.

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As my project, I get an opportunity to do my SIP program in HDFC Standard Life Insurance Company Ltd. Its world’s one of the top insurance company. Insurance is a form of risk management primarily used to hedge against the risk of contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurer- is the company that sells the insurance. Insurance rate- is the factor used to determine the amount called premium, to be charged for a certain amount of insurance coverage.

Type of Insurance • • • • • • • •

Health Casualty Life time Property Liability Credit Other type Insurance financing vehicles

Insurance companies May be classified in to two types

• Life insurance 6

• General insurance

Life Insurance Life insurance provides monetary benefits for family or other designated beneficiary, and may specifically provides for income to an insured person’s family. Life insurance sells life insurance, annuities and pension business is very long term nature. Coverage for life assurance or a pension can lower risks over many decades. It is important to understand the different types of life insurance. There are two main types: Term and Whole life. Term life insurance is insurance that you buy for set period of time, and then it expires. Whole life insurance is what you buy to cover you for your entire life. As long as you pay your premiums, whole life insurance won’t expire. There are pros and cons to each type of life insurance, and what you get depends upon your needs.

General insurance General insurance companies sell other types of insurance. It covers usually a shorter period such as one year.

INSURANCE INDUSTRY IN INDIA

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Insurance sector in India is one of the booming sectors of the economy and is growing at the rate 15-20 per cent annum. Together with banking services, it contributes to about 7 per cent to the country’s GDP. Insurance is a federal subject in India and insurance Industry in India is governed by Insurance Act, 1938, the life Insurance Business (Nationalization) Act, 19722, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related acts.

History The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher premium was charged for Indian lives then the non-Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society that started its business in 1870 was the First Company to charge same premium for both Indian and non-Indian lives. In 1912 insurance regulation formally began with the passing of Life Insurance Companies Act and Provident fund act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the First comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of1938 that provided strict State Control over insurance business. Insurance sector in India grew at a faster pace after Independence. In 1956 Government of India brought together 245Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5crore. 8

The (non-life) insurance business/general insurance remained with the private sector till 1972. There were 107 private companies involved in the business of general operations and their operations were restricted to organized trade and industry in large cities. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from January 1, 1973.The 107 private insurance companies were amalgamated and grouped into four companies: National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). In 1993, the first step towards insurance sector reforms was initiated with

the

formation

of

Malhotra

Committee, headed by former Finance

Secretary and RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector.

Privatization of insurance sector When we critically examine the opportunities which were available before the globalization of Indian market ,it can be said that LIC failed to cash it. One of the main reasons for the low insurance penetration in India was ineffective distribution and marketing strategies adopted by LIC. The company reportedly never had any strategic marketing game plan, and due to its monopolistic nature the need for serious marketing efforts was never felt. The advertising initiatives were limited to some print and electronic media advertisements, which typically talked about LIC’s products being great tax saving tool for salaried individuals 9

who came under the income-tax bracket. Despite all this, LIC was synonymous with insurance in India and it had established an enviable brand image for itself, especially in the rural areas and small towns. However, with the entry of new players, the insurance market changed almost overnight. The private insurers seemed all set to make the industry marketing-driven, wherein technical and service excellence would be the key factors of success. The private companies, in a bid to make their presence felt and their brand noticed, initiated a series of aggressive marketing and promotion initiatives, something that buyers of insurance were not accustomed to.LIC had made Indian insurance industry a sellers market, where customer had no option other than to buy its (LIC’S)product. LIC had also not tried to explore the market but were happy what they were getting effortlessly.

Major players in India Life insurers

•

Allianz Bajaj Life Insurance Co.Ltd

•

AMP Sanmar Assurance Co.Ltd

•

Birla Sun Life Insurance Co.Ltd

•

Dabur CGU life insurance company Pvt Ltd 10

• HDFC standard life insurance co.ltd •

ICICI prudential life insurance co.ltd

•

ING vysya life insurance co.ltd

•

Life Insurance Corporation of India

•

Max newyork life insurance co.ltd

•

Metlife india insurance co.pvt ltd

•

Om kotak mahindra life insurance co.ltd

•

SBI life insurance co.ltd

•

Tata AIG life insurance co.ltd

Non life insurance or general insurance •

Bajaj Allianz General Insurance Co.Ltd

•

ICICI Lombard General Insurance co.ltd

•

IFFCO Tokyo General Insurance co.ltd

•

National

Insurance Co.Ltd

OVERVIEW OF THE COMPANY

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in 11

this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given the company new directions and has helped the company achieve the status it currently enjoys. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations; they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007.

PRODUCTS IN HDFC ➢ Protection Plans

• Term Assurance Plan • Loan Cover Term • Assurance Plan ➢ Investment Plans: • Single Premium Whole Life Plan ➢ Pension Plans: • Personal Pension Plan • Unit Linked Pension Plan ➢ Savings Plans: • Endowment Assurance Plan • Unit Linked Endowment 12

• Unit Linked Endowment Plus • Money Back Plan • Children's Plan • Unit Linked Youngstar • Unit Linked Youngstar Plus

DISTRIBUTION NETWORK HDFC’s distribution network spans 250 outlets which include 52 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other third party Direct Selling Agents (DSA). To cater to non-resident Indians, HDFC has an office in London and Dubai and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia. Customer Service We at HDFC Standard Life are committed to maintaining the highest level of customer service. Hence we have tried to provide you with all the information you may want to seek regarding procedures such as paying your premium, various policy servicing options, processing a claim and so on. 13

1.

My accounts

2.

premium payment option •

At our branches

•

Post or courier

•

Online payment

•

Drop boxes

•

Credit cards

•

Easy bills

• 3.

Bonus

4.

Contact us

5.

Policy servicing Change in personal details Change in policy benefits

Others such as loss of policy document, policy cancellation in the Period 6. Lapsation and Revival 7

Claims

14

Free-Look

HUMAN RESOURCES Board of Directors Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Sir Alexander M. Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Sir Crombie is a fellow of the Faculty of Actuaries in Scotland. Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Ms. Marcia D. Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific 15

Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited. Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. 16

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & VicePresident 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 setup the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Gerald E. Grimstone was appointed Chairman in May 2007, having been Deputy Chairman since March 2006. He became a director of The Standard Life Assurance Company in July 2003. He is also Chairman of Candover Investments plc and was appointed as one of the UK’s Business Ambassadors by the Prime Minister in January 2009. Gerry held senior positions within the Department of Health and Social Security and HM Treasury until 1986. He then spent 13 years with Schroders in London, Hong Kong and New York, and was Vice Chairman of Schroders’ worldwide investment banking activities from 1998 to 1999. He is the Alternate Director to Sir Alexander Crombie. Mr. Paresh Parasnis is the Principal Officer and Executive Director of the company since November 14, 2008. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving and 17

spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc

Associate Companies of HDFC

HDFC Limited

HDFC Bank

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HDFC Mutual Fund

HDFC SALES

HDFC ERGO General Insurance

Who is who?

 Kavitha Seshunni(Vice President) 

Suvendu Pande(Ass. V.P.) 19

 Krishna syam sunder(Territory Manager Chanel Development) 

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



Sushil(C.D.M)

ABOUT THE COMPETETORS

The following companies are present in the life insurance industry in India. all these company’s are the competitors

➢ Bajaj Allianz life insurance company limited 20

➢ Birla sun life insurance Co.Ltd ➢ ICICI Prudential life insurance ➢ Life insurance corporation of India ➢ Met life India insurance company pvt.Ltd ➢ SBI life insurance Co.Ltd ➢ Tata AIG life insurance company limited ➢ Reliance life insurance company Ltd ➢ Aviva life insurance

The main competitor of HDFC standard life is LIC

ABOUT THE CUSTOMER

➢ High level income people HDFC provide premier life gold plan for high level income people. 21

➢ Business persons The business persons have an opportunity to invest in market with safe and Secured. Will get insurance coverage like life time gold

➢ Middle level income people HDFC provide so many plans for middle level income people. Will get benefit as pension.

➢ Family Smart kids plan is especially for family Who are interested to invest in market share? These persons all their customers

BUSINESS OBJECTIVE

• To get a practical exposure of theoretical knowledge • To get an experience on marketing • To prove my skills in marketing 22

• Take this opportunity to become a part of MNC • To learn the difficulties of person who are working in marketing filed • To study the requirements for satisfying customers. • To take this opportunity as chance to improve interpersonal skills and communication skill

Targets/Tasks The initial target provided by the company is to recruit 12 Financial Consultants each worth Rs.20,000 for the total of 2,40,000 within 13 weeks.

Strategies

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For my task, I entered to natural market. First I decided to go and meet my relatives for doing my business. Why I selected it is, that to get an idea about the customer’s questions. I felt comfort to answer for their questions and through this I got a rough idea about the customer’s response towards persons who are working in this area. Through this way I build a self confidence in my job. If I meet a person who is not willing to take a IRDA licence, then I-try to get maximum reference from him. In this way I made many reference to consider. This way I continued in convincing others and try to make a personal attachment by giving maximum help which I can do. Every one in the market has to maintain their own strategies to achieve their goals. It is not a single action; it is a series of actions that we have to follow. My strategies and plans for my executive training:Data Base Creation For every marketing executive the very first task is to create a database of customers. I had created the database for my ET from various sources such as:• Natural market • Existing customers • Directories • Activities • References

ANALYSIS OF PERFORMANCE V/S TARGET 24

My target was to recruit 12 Financial Consultants each worth Rs.20, 000 for the total of 2, 40,000 with in 13 weeks. The below table shows an analysis of my target and achievement for the 13 weeks. No of weeks

Targets

Achievements

1

20000

20000

2

20000

20000

3

20000

20000

4

20000

20000

5

20000

20000

6

20000

20000

7

20000

20000

8

25000

30000

9

30000

35000

10

30000

32000

11

30000

32000

12

30000

35000

13

35000

40000 25

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LIMITATIONS/PROBLEMS DURING ET General Problems • Lack of knowledge about the Insurance among the people. Most of the people lack knowledge about the insurance and its benefits especially in rural areas. Most of the people think that they will lose their money. • Lack of market support From the very beginning of my ET the market shows a downward trend. So the existing customers were not ready for any further investments as they had already suffered a huge loss from the market fall. Specific Problems • Time constraint to meet customers • Attitude of customers Some people are having a negative attitude towards the insurance, towards the company and also sometimes towards the marketing executives due to several reasons such as:○ They seen us for the first time ○ Visiting them alone ○ No identity to prove myself ○ Lack of faith

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LEARNING IN THE EXECUTIVE TRAINING • I got the practical experience in the marketing field. It is an opportunity to study the real executive work. It was a chance to get a clear picture of an executive job • Learned about the customer perceptions about the insurance products. • Understood the method and distribution channels of HDFC. • Got exposure to the corporate culture. • My attitude was changed through this training.

Additional benefits in the training period

 NCFM Certificate (Capital Market Module) 

IRDA License

AWARDS RECIEVED DURING EXECUTIVE TRAINING • Received an Incentive of Rs.4, 000 . 28

• Company given by a Pre-Placement offer to continue working in their organization.

CONCLUSION From the Executive Training I got practical experience in how to deal with the customers and how to canvas them. It is quite different from the class room teaching and it was an exposure to the real business or marketing environment. I took this training as an opportunity to learn market situation. Definitely the internship program helped me to improve my skills and performance. It was an entry to the corporate culture. I have faced a lot of challenges. It helped me to 29

know about the insurance sector especially about HDFC Standard Life Insurance Company. It also helped to deal with various products and services offered by the company. Any way it was a nice experience for me.I have achieved the target set by the company and a lot of incentives are offered by the company. The executive training period is an asset for me.

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