1.1
Introduction.
1.2
Industry Profile.
INDIAN
INSURANCE
MARKET
THE INSURANCE INDUSTRY IN INDIA
AN OVERVIEW
With the largest number of life insurance policies in force in the
world, Insurance happens to be a mega opportunity in India. It’s a business
growing at the rate of 15-20 per cent annually and presently is of the order of
Rs 1560.41 billion (for the financial year 2007 – 2008). Together with banking
services, it adds about 7% to the country’s Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and funds available with LIC for investments
are 8% of the GDP.
Even so nearly 65% of the Indian population is without life
insurance cover while health insurance and non-life insurance continues to be
below international standards. A large
part of our population is also subject to weak social security and pension
systems with hardly any old age income security. This in itself is an indicator
that growth potential for the insurance sector in India is immense.
A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure
development and strengthens the risk taking ability of individuals. It is
estimated that over the next ten years India would require investments of the
order of one trillion US dollars. The Insurance sector, to some extent, can
enable investments in infrastructure development to sustain the economic growth
of the country.
HISTORICAL
PERSPECTIVE
The history of life insurance in India dates back to 1818 when it
was conceived as a means to provide for English Widows. Interestingly in those
days a higher premium was charged for Indian lives than the non - Indian lives,
as Indian lives were considered more risky to cover. The Bombay Mutual Life
Insurance Society started its business in 1870. It was the first company to
charge the same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880. The
General insurance business in India, on the other hand, can trace its roots to
Triton Insurance Company Limited, the first general insurance company
established in the year 1850 in Calcutta by the British. Till the end of the nineteenth
century insurance business was almost entirely in the hands of overseas
companies.
Insurance regulation formally began in India with the passing of
the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912.
Several frauds during the 1920's and 1930's sullied insurance business in
India. By 1938 there were 176 insurance companies.
The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over the insurance
business. The insurance business grew at a faster pace after independence.
Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private
life insurers and provident societies under one nationalized monopoly
corporation and Life Insurance Corporation (LIC) was born. Nationalization was
justified on the grounds that it would create the much needed funds for rapid
industrialization. This was in conformity with the Government's chosen path of
State led planning and development.
The non-life insurance business continued to thrive with the
private sector till 1972. Their operations were restricted to organized trade
and industry in large cities. The general insurance industry was nationalized
in 1972. With this, nearly 107 insurers 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).
KEY
MILESTONES
1912: The Indian
Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian
Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.
1938: Earlier
legislation consolidated and amended by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian
and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament-
LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of
India.
INDUSTRY PROFILE
INSURANCE:
Insurance
can be defined as assurance for uncertainty. Insurance is about something going
wrong. Its’ often about things going right; One of the Wonders of human nature
is that we never believe anything can actually go wrong.
The
insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to liberalized market again. Tracking the
development in Indian insurance sector reveals the 360 degree turn witnessed
over a period of almost two centuries.
The
business of life insurance in Indian in its existing form started in India in
the year 1818 with the establishment of Oriental Life Insurance Company in
KOLKATTA. Some of the important milestones in life insurance business in India
are.
1912:
The Indian Life insurance Companies Act enacted as first statue to regulate the
life insurance business.
1928:
The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about life and non-life insurance businesses.
1938:
Earlier legislation consolidated and amended to by the insurance Act with the
objective of protecting the interests of the insuring public.
1965:
245 Indian and foreign insurers and provident societies take over by the
central government and nationalized. LIC formed by an act of parliament viz.
LIC. Act. 1956, with a capital contribution of Rs. 5 Crore from the government
of India.
Insurance
Regulatory and Development Authority
Reforms
in the Insurance sector were initiated with the passes of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously such to its schedule of framing regulations
and registering the private sector insurance companies.
The
other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch
of the IRDA online service for issue and renewal of licenses to agents.
Several
Companies have entered into the Indian Insurance Market. The following are the companies are:-
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2.1 Company Profile.
2.2 Product
Profile.
COMPANY PROFILE
HDFC standard life insurance company
was started on 14th august 2000 and received a licence 23rd October 2000.
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.
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 handpicked team from 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.
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. Our 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 realized when HDFC
Standard Life was the only life company to be granted a certificate of
registration.
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.
LOCATION
HDFC standard life
insurance company limited operates its business through its Branches the HDFC
Standard Life Insurance Company holding their main Regional office in Mumbai.
Corporate Office:
HDFC Standard Life Insurance
Company Limited,
IL&FS Financial Centre,
Plot C22 - G Block,
Bandera Karla Complex, Bandera
(East),
Mumbai-400051.
Tel: 56932666
Website –www.hdfcinsurance.com
Following are Some of the branch offices in India
Branch Offices:
Agra Ahmedabad
Ajmer Allahabad
Ambala Bangalore
Bhubaneswar Bhopal
Calicut Chandigarh
Chennai
Coimbatore
Delhi Durgapur
Faridabad Hyderabad
Indore Jaipur
Jalandhar Kanpur
Kolkata Lucknow
Mangalore Madurai
Mumbai Mysore
Nagpur
Nashik
Pondicherry Pune
Surat Trivandrum
Vadodara Vijayawada Vishakhapatnam
STANDARD LIFE
Standard Life is Europe’s
largest mutual life assurance company. Standard Life, which has been in the
life insurance business for the past 175 years is a modern company surviving
quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from kits original Edinburgh premises,
opening offices in other towns and acquitting other similar businesses.
Standard Life Currently has
assets exceeding over £ 70 billion under its management and has the distinction
of being accorded “AAA” rating consequently for the six years by Standard and
Poor.
SNAPSHOT
·
Founded in 1875, company supporting generation for
last 179 years.
·
Currently over 5 million Policy holders benefiting
from the services offered.
·
Europe’s largest mutual life insurer.
JOINT VENTURE
HDFC Standard Life Insurance
Company Limited was one of the first companies to be granted license by the
IRDA to operate in life insurance sector. Reach of the JV player is highly
rated and been conferred with many awards. HDFC is rated ‘AAA’ by both CRISIL
and ICRA. Similarly, Standard Life is rated ‘AAA’ both by Moody’s and Standard
and Poor’s. These reflect the efficiency with which HDFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.
HDFC Standard Life Insurance
Company Ltd was incorporated on 14th August 2000. HDFC is the
majority stakeholder in the insurance JV with 81.4% staple and Standard of as a
staple 18.6% Mr. Deepak S.Parekh is the MD and CEO of the venture.
HDFC Standard Life Insurance
Company Ltd. Is one of India’s leading Private Life Insurance Companies, which
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 the Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom. Both
the promoters are well known for their ethical dealings and financial strength
and are thus committed to being a long-term player in the life insurance
industry- all important factors to consider when choosing your insurer.
Associate Companies
HDFC LIMITED 
HDFC BANK
HDFC MUTUAL FUND
HDFC SALES 
HDFC ERGO GENERAL INSURANCE|
Some of
valued banc assurance partners.
|
||||||||
 HDFC LIMITED |
||||||||
|
Product Profile
Individual Products
Each of
us leads a unique life and so has unique needs. HDFC Standard Life offers a
range of products and invites you to choose the one that suits you best.
With Profits Endowment Assurance:
This
policy provides a combination of saving and life insurance. The sum assured
plus any bonuses will be payable at the end of the term or on death if earlier.
The customer commitment is to pay a level premium regularly throughout the life
of the policy. The Endowment Assurance can be customized to meet your needs by
adding any combination of up to_4 rider benefits.
With Profits Money Back:
This
policy provides a combination of savings, regular cash payments and life
insurance. Over the course of the contract, a proportion of the sum assured
will be paid at regular intervals. The sum assured plus any bonuses will be
payable on death before the end of the contract. On survival to maturity, you
will get the sum assured plus any bonuses less the regular payments already
made. Your commitment is to pay a level premium regularly throughout the life
of the policy. The Money Back can also be customized to meet your needs by
adding any combination of up to 4 rider benefits.
Term Assurance Plan:
Under the Term Assurance
plan, a sum assured is payable in case of death of the life assured during the
term of the contract. One can choose the lump sum that would replace the income
lost to one's family in the unfortunate event of one's death. The Term
Assurance Plan comes to you at a minimal cost and is well suited for the
value-conscious customer. The Term Assurance Plan can also be customized to
suit your needs by adding optional rider benefits
Loan Cover Term Assurance:
The Loan Cover Term
Assurance plan provides a lump sum on death of the life assured during the term
of the plan. The lump sum will be a decreasing percentage of the initial sum
assured. It is an affordable plan that has been designed to help your family
repay the outstanding loan in case of your unfortunate death on this product.
Personal Pension Plan
The Personal Pension Plan
is basically a savings contract, which is designed to provide an income for
life from retirement, with an option to take the lump sum elsewhere to buy the
annuity, provided it is permitted by the prevailing regulations. Your
commitment is to pay a single premium or level premiums with installments due
every quarter, half-year or year throughout the deferment period of the policy,
after which you will start receiving your pension.
Children's Plan
The
future of your child is most important to you. You need to plan today to ensure
a bright future for your child, whether it is education, marriage or
establishing a professional career. To help you save for your child, we at HDFC
Standard Life present the plan is affordable, customized to your needs, and
above all, enables you to realize your dreams for your child. This plan is well
suited for the value-conscious customer, and above all, for every loving
parent. Grandparents, other relatives or any adult for the benefit of a child
can also choose the plan.
3.1 Organization Study.
3.2 Objectives of study.
3.3 Organization Chart.
Organization Study
Organization is defined as
the “Association of various departments in the firm in which all work
collectively in attaining the goals & objectives of the company by
rendering the valuable services towards it by both employers and management.
Organization study means
which includes the organization structure, administration, hierarchy of the
organization recruitment, HR divisions and other activities in the organization
and observing the teamwork in the organization ,behaviour of the employers
inside the structure.
Importance
·
Knowing and getting the information
about the firm.
·
Division of workforce.
·
Authority and responsibility.
·
Discipline.
·
Unity of command.
·
Unity of direction.
·
Salaries.
·
Scalar chain.
·
Equity.
·
Stability in tenure.
3.2 Objectives of the study
1. To
understand the nature of the organization.
2. To
acquire the appropriate work culture.
3. To
develop self awareness.
4. To
apply the theoretical knowledge in the field.
5. To
exhibit professional behavior and the values.
Methodology
The data is collected from the various departments, and respective heads
through interaction with the staff &employers, company reports and broachers,
study material, reference notes and observation of the daily work in the firm
through the factory visits at regular period during the internship time.
ORGANIZATION STRUCTURE
|
DUTIES AND RESPONSIBILITIES
BRANCH MANAGER:
§ Overall management of the branch.
§ Achieving target given by
the General Manager in head office.
§ Weekly report to the head
office.
§ Take over the full in charge
of the department of administration.
§ Looking after preventive
maintenance planning activities.
§ Identification of training
needs to staff and Business development
managers.
managers.
§ Call upon weekly meeting to every Business Development Managers.
§ Verification of progress of the BDM's.
§ Implementing new techniques adopting in marketing.
§ Follow the principles of life insurance.
DEPUTY BRANCH MANAGER;
1) Assisting manager in day-to-day operations.
2) Managing the affairs of manager during his
absence.
3) Maintenance of office in healthy environment.
4) Execution of work as per the rules given by
the head office.
5) Day-to-day verification of login policies and
proposed policies.
4.1 Functional Department.
HUMAN RESOURCE DEPARTMENT
 |
|
 |
The primal resource of an
organization is the people. Managing its people is the most important aspect of
managing an organization. Scope of personnel management has also increased
considerably in recent years. Some of the reasons are as follows:
§ External influences
§ Changes in expectations
§ Changes in technology
§ Intense competition
§ Gaining of additional knowledge
No longer
is manpower just one of the resources in business organizations. It is the most
important of all resources this is because manpower is that resource through
which management wants to direct control all the other resources. To keep the
human power happy and content the most important objective of every management
in order to meet this objective, management must design and implement a set of
policies procedures and practices absolute.
For the
purpose of the efficient running of business the HDFC standard life insurance
company limited, holding separate manager/officer called H.R. development
officer in the every branch office in all over the India
Human Resource and Human Resource Management
have always been key factor in the group success. The group of HDFC offers you
not merely a job but an opportunity to fulfil your long term carrier plans.
Specifically the HDFC Standard Life Insurance offers:
1) An unlimited choice of opening.
2) Executing global carrier opportunities.
3) The resource to back to your ideas and
upgrade your skills.
4) Challenges aplenty and the chance to make
good earnings.
5) Training schemes.
In the same way the HDFC
Standard Life Insurance as an aim to get the award given by International
Standard Organization within one year in the field of service and management.
The main objectives of
Human Resource department in HDFC Standard Life Insurance Company Ltd.
1) Peace among employees in the office.
2) Better Co-ordination in the working
environment.
3) Motivational activities.
4) Sense of belongingness.
5) Recognition of work.
6) Carrier and self-development of employees
& Consultants.
EXECUTIVE PERFORMANCE
APPRAISAL AT HDFC STANDARD LIFE.
Instructions to the appraise.
Self-appraisal is a very
important part of the executive appraisal system in the company. It gives you
(the appraise) an opportunity to present a record of your performance for the
year, as you perceived it. The form must be filled with care and thoroughness
giving emphasis o the key aspects of the job.
You are required
to indicate clearly the record of our job performance during the year. Please
write only what you had achieved. Write the appraisal legibly and briefly.
Normally,
the executive appraisal is for the financial year-April 1st to March 31st. Therefore,
you must submit the duly completed self-appraisal with a covering note to your
Reporting officer latest by 15th April of the following year.
Instructions to the Appraiser
Try to be
as objective as possible in your rating. Please do not allow any personal
prejudices to collar in the rating of your executives. Do not evaluate on the
basis of isolated incidents, but base your judgment on the entire period under
review. In case you have used the significant incidents sheet, it could be a
great help to you in judging the performance of your subordinates during the
entire period of review.
While
writing the report, one item/factor at a time should be considered and weighed
only in relation to the requirement of the job and level of the appraise.
Performance categorization, grades and equivalent marks
|
Outstanding performance
|
A
|
91 & above
|
|
Very good
|
B
|
81-90
|
|
Good
|
C
|
71-80
|
|
Average
|
D
|
61-70
|
|
Below Average
|
E
|
51-60
|
|
Poor
|
F
|
Below 50.
|
SCOPE OF PERFORMANCE APPRAISAL
The
people in an organization have an upper hand in deciding the fate of
organization by achieving the objectives. For the realization of these goals
there should be step-by-step planning and performance by the human force of an
organization. In this sense, true performance ties in achieving a vision. As we
perform, the yardstick for measuring, our performance keeps changing with every
step forward, we perceive our mission better ad related goals get more closely
and easily defined.
METHOD,
TECHNIQUES OR TOOLS USED BY HDFC
HDFC
Standard Life Private Limited has taken keen interest for the development of
correct, clear and complete performance appraisal system. In order to overcome
the problems of appraisal techniques and to run the appraisal system
successfully, HDFC follows a mixture of different appraisal techniques. Through
this unique method the organization is able to have complete and necessary
details of employees.
It is
conducted annually and the time duration starts from 1st April and to 31st
March. It is done every year with the object of increasing ability, efficiency,
skills etc of work force. But easy sixth year promotion, transfers, job rotation
and necessary actions are taken place. Every assessment year’s records are
taken into considerations in order to implement the above mentioned actions.
The organization maintains
2 different booklets for two categories of executives. The performance
appraisal system of HDFC contains an executive appraisal of 6 different parts
involving employees, reporting officer, wing officer. In addition there is a
provision for the HRD officer to make recommendations based on the outcome of
above parts. This helps in training for the appraisal.
MARKETING DEPARTMENT
HDFC's Life Insurance
products are not a marketing products but it is cover under the marketing
department. It is a service given by the HDFC group to the public in the way of
assurance of life of the people who are insured.
In the realistic manner the
product selling is a type of service given to the public. The marketing of
products of life insurance holds line and staff organizational structure.
|
|
CHIEF
MARKETING MANAGER
1) Managing the affairs of BDM'S.
2) Execution of work.
3) Day-to-Day verification of login policies.
4) Implementing new techniques.
5) Fulfill the training needs to BDM'S and his financial consultants.
6) Rewarding the best achiever.
7) Maintain co-ordination between the BDM'S.
BUSINESS DEVELOPMENT MANAGER'S
1) Holding of several financial consultants in hand.
2) Doing part of the tarter plan given by branch manager.
3) Maintaining separate group of financial consultants.
4) Identification of training needs to financial consultants.
5) Putting effort on taking policies from his financial consultants.
6) Motivational and Morale support to financial consultants.
7) Day to day interaction between financial consultants.
8) Flow of commission as per the norms with their respective
policies.
9) Go along with the financial consultants when ever appointment with
the proposed clients when the financial consultants in not able to convince.
10)
Recording
the day-to-day log inn policies from financial consultants.
Marketing is an activity
of distributing the products among the public. Marketing never stops with
selling, where as marketing continues after sales also. Selling is nothing but
the mere delivery of goods but marketing acts apart from sales. The marketing
department studies the market and the target customers, decides the best way to
reach these customers, and works with the rest of the company to help determine
the new product needs of the market. In this competitive world each and every
product is meant for marketing, none of the products without having the concept
of marketing. Marketing plays an important role in any business organization.
Generally, Marketing is
divided into two types viz.
a.
Direct Marketing
Direct Marketing is
nothing but approaching the customer directly to sell our Products. As we see
already each and every product has to meet the market condition. The Product is
produced to sell it to is called direct marketing, in Direct Marketing there is
no concept of intermediation. Direct marketing gives higher return to the
marketers because it reduces the intermediate commission. Now a day’s many
business units prefer direct marketing to sell their product to the customers.
b.
Indirect Marketing
Indirect Marketing is just
opposite to direct marketing i.e. marketing the product by using the
distribution channels.
FINANCE DEPARTMENT
The HDFC Standard Life Insurance Company Ltd. dealing their
business through financial consultants. Financial consultants are got license
from the IRDA through their online examination conducted in training centres.
Financial consultants are the real assets of the HDFC Standard
Life Insurance Company Ltd in which financial consultants have separate corner
for doing business with proposed clients.
Finance is the lifeblood
of every organization. It is the requirement of every organization to maintain
records of finance which consist of all
Expenditure and incomes of
the organization. This organization has financial statements like Trading & profit &
loss a/c and balance Sheet. These accounts show the financial position of the
organization. They show the total debt and equity, the assets and liabilities
and the cash holding of the organization.
Finance department is
concerned with the money &money worth transactions which may include the:-
§ Allocation
of funds.
§ Investment
procedures.
§ Decision
making relating finance.
§ Payroll.
§ Collection
& remitting the balances from clients.
§ Preparation
of the accounts and the statements.
§ Publishing
the accounts & statements.
§ Raising
the money from external &internal sources.
§ Dealing
with the working capital and its requirement.
§ Investment
and purchase decisions.
§ And
much more.
Commission payable to the consultants
The Company has decided to
review the commission rates with effect from 1.11.2006.
This note details
the changes in the commission rates payable to individual financial consultants
with erect from 1.11.2006.
The company has
been offering first year commission at a uniform rate across all tenors. The cost for the short-term policies are
deferent from long-term policies, hence the consultant would henceforth be paid
commission at a rate, which differs as per the tenor of the policy.
The company has not
been differentiating between the basic commission and the bonus commission so
far. This decision was taken in view of
the fact the financial consultants were new and required some time to
understand the life insurance business.
It has now been decided to pay performance based bonus commission,
linked to production levels, to the consultants with effect 1.11.2007.
The following are
the details of the commission structure and NEP thresholds with effect from
1.11.2007 and are valid till 30th June 2008.
Basic First Year Commission
a) Basic First Year Commission payable on regular premium policies
issued with a premium paying term of 15 years and above.
|
Name of the Plan
|
Basic commission as a
percentage of First Year Premium received
|
|
Endowment Assurance Plan
|
25%
|
|
Money Back Plan
|
25%
|
|
Children's Plan
|
25%
|
|
Term Assurance Plan
|
20%
|
|
Loan Cover Term Assurance Plan
|
20%
|
|
Personal Pension Plan
|
7.5%
|
b) Basic First Year Commission payable on regular premium policies
issued with a premium paying term of less than 15 years
|
Name of the Plan
|
Basic commission as a Percentage of
first Year Premium received.
|
|
|
Endowment Assurance Plan
|
20%
|
|
|
Money Back Plan
|
20%
|
|
|
Children's Plan
|
20%
|
|
|
Term Assurance Plan
|
15%
|
|
|
Loan Cover Term Assurance Plan
|
15%
|
|
|
Personal Pension Plan
|
7.5%
|
|
(c) Basic Commission payable on single premium policies irrespective
of the premium paying term
|
Name of the Plan
|
Basic Commission
|
as
|
|
|
a percentage
|
of
|
|
|
Single Premium
|
|
|
|
received
|
|
|
Single Premium Whole of Life Insurance Plan
|
2%
|
|
|
Term Assurance Plan
|
2%
|
|
|
Loan Cover Term Assurance Plan
|
2%
|
|
|
Personal Pension Plan
|
2%
|
|
Basic Commission would be
payable on the actual amount received and adjusted towards first year premium
on regular premium policies and single premium policies by the company. In case
the policy is cancelled in the first three policy anniversary years or the
policyholder exercises the option to withdraw the policy in the look in period
or the benefits under the policy are reduced, some or all of the basic an bonus
commission, as applicable, would not be payable and if paid, the same would be
reclaimed.
System
A system is defined process or a set of
processes, that links and orders activities to enable work to be done and goals
to be achieved. These systems are very significant and should be chosen
carefully as they determine the speed, quality, accuracy and efficiency of the
different activities that are carried out on a daily basis. The system in an
organization is chosen considering different factors. These factors include the
size of the organization, the nature of business and so on.
Systems in HDFC Standard Life Insurance
Computers
are so versatile that they have become indispensable to administration and
other official procedures. They can strengthen man’s power in numerical
computation and information processing there by increasing the effectiveness of
organization.
Some of the characteristics of computer are:
1. Speed
2. accuracy
3. consistency
4. versatility
5. Diligence.
The systems followed by the company are given below.
a) Management
Information System:
A separate software is using in each
branch to account all transactions and to generate all those information needed
by the management. The details of all customers are entered in to this system.
b) Human Resource Information system
It is
computer based system followed in HDFC Standard life Insurance to maintain a
better human resource. Recruitment, selection, training are done in a
systematic manner.
PERFORMANCE OF THE COMPANY
TABLE-1
TABLE SHOWING THE MONTHLY
INCOME OF THE
RESPONDENTS ARE KNOW THE INSURANCE POLICIES
|
INCOME
|
NO. OF RESPONDENTS
|
PERCENTAGE
|
|
Below 5000
|
10
|
10%
|
|
5000-10,000
|
40
|
40%
|
|
10,000-20,000
|
30
|
30%
|
|
Above 20,000
|
20
|
20%
|
|
TOTAL
|
100
|
100%
|
GRAPH-1
GRAPH SHOWS THE MONTHLY
INCOME OF THE RESPONDENTS ARE KNOW THE INSURANCE POLICIES
GRAPH-2
GRAPH SHOWING PREFERENCE IN
BUYING INSURNCE REQUIREMENTS 
5.1 SWOT Analysis.
5.2 Vision, Mission and Objectives.
5.3 Findings.
5.4 Suggestions.
5.5 Learning Experience.
SWOT ANALYSIS
Strengths
Ø Money value for customers.
Ø Customer service of the highest order.
Ø Use of technology to improve service standards.
Ø Increasing market share.
Ø Professionalism in carrying out business.
Ø Innovative products to cater to different needs of different
customer.
Ø Trust and security among the best.
Ø Over 30000 consultants in
India.
Weakness
Ø Less number of branches.
Ø Low volume of financial consultants.
Ø Effectiveness of organizational health study.
Ø Insurance is still considered as tax saving device rather than
protection.
Ø Relationship.
Ø Difficult to change position of the employee.
Ø High volume of attrition rate.
Opportunities
Ø Easy availability of manpower for vacant positions specifically in
marketing.
Ø
Only 5% of the Indians having life insurance.
Ø
Improvement
in sales after service.
Ø
Chance to
improve more beneficial products.
Ø
Encouragement
for young financial consultants, achievers and identification of fast track
financial consultants and employees.
Ø
Recognizing
the different needs of customers.
Threats
Ø Lowering of interest rate to policy holders.
Ø Lowering of bonus on the occasion of maturity of policies.
Ø Cut throat competition due to more number of other insurance
Company.
Ø IRDA policies towards life insurance.
Ø Increase in cost due to competition.
Ø Lack of customer satisfaction level reduced because of competitors
policies.
Company
Mission:
The company aim 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.
§ 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.
Company vision
• Financial strength
•
Recognitions
•
Establishments
•
Location
• Service
backup
•
Collaboration
Company Objectives
·
To
deliver value for our customer.
·
Better
investment opportunities.
·
Well
being of the society.
·
Customer
service of the highest order.
·
Value for
money for customers.
·
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.
FINDINGS
It was found that most of the customers are professionals as
well as salaried people.
1. 40%of the customers are interested in taking high risk investment
in insurance.
2. Company providing good service to
customers.
3. Has the product are giving texts benefits contingents plans. Some
people are interested to take the insurance product.
4. Customers
are benefited through unit linked plans.
5. Need
based selling policy.
6. More
importance to customer safety and security.
SUGGESTIONS
1
Provide
more and more training to employees and financial consultants.
2
Introduce
new life insurance product.
3
Open more
and more branches as according to the growth of business.
4
Increase
financial consultant commission and incentives.
5
Increase
sales promotional activities and advertisement.
6
The
company can use latest advertisement media like TV, Radio, news paper etc.
LEARNING
EXPERIENCE
Since the
incorporation of HDFC Standard life Rajaji Nagar, Bangalore branch has become
an integral part of the joint venture between HDFC and Europe based life
insurance company, which has a history of more than 200 years in the insurance
industry.
HDFC
Standard Life is the top most insurance company in the service industry HDFC
Standard life doing lot of work to sustain in the national insurance market,
because of the keen competition. Customer’s service is the word for the company
to develop itself, in the competitive market with the word of "Survival is
the fittest". Company is trying too hard to sustain in the global market.
With the work force consisting of more than 15000 employees along with around
30000 financial consultants in all over India.
The
company is very much concerned about customer service and security. This has
made the company well ahead in the race with their competitors. So applying
latest possible service manuals and methods in their customer satisfaction and
compay main aim to become NO: 1 Life Insurance company.
In 2008
Company received CIO BOLD 100 SECURITY AWARD for most respected private insurance
company.
With all
these we can conclude that company is
trying to develop and grow itself in the insurance industry because whoever
stay in this market he is the winner.
6.1
Bibliography.
BIBLIOGRAPHY
Ø
Text
Books
§ Organizational Behaviour - K Ashwathappa
§ Personnel Management - C B Mamoria
§ Insurance in India - Kapoor
Ø
Other
References
§ Broachers, pamphlets & financial consultants manuals published
by HDFC Standard Life
Ø
Websites
§ www.hdfcinsurance.com
§ www.hdfc.com
§ www.managementparadise.com
No comments:
Post a Comment