Professional Documents
Culture Documents
INSURANCE
INTERNSHIP REPORT
1
-CERTIFICATE-
2
Head of the Department Date:1st September 2009
IILM Business School
Balanagar
Hyderabad – 500037
Dear Sir,
This is to certify that Mr. Parshuram Sahoo S/O Mr. Subodh Kumar
Sahoo student of MBA IInd Semester bearing enrollment No.
EIILMU/08/F01270 of IILM Business School, Hyderabad has successfully
completed the practical training in our company during the period from
1st June 2009 to 31st Aug 2009.
We find Mr. Parshuram Sahoo as enthusiastic and hard working and we wish
him all success in future.
Yours sincerely,
P. Srinivas Rao.
3
ACKNOWLEDGEMENT
First and foremost I would like to thank HDFC Standard Life Insurance
Co. Ltd., Somajiguda Branch for giving me an opportunity to do my
internship in their esteemed organization. My special appreciation extends to
Mr. P. Srinivas Rao (Branch Sales Manager) , Mr.Venkata S Boppanna
(Sales Development Manager) and Mr. K. Srikant (Branch Training
Manager) of HDFC SLIC Somajiguda Branch for their constant
encouragement through out this period.
Last but not the least, my endless appreciation goes to my family who has
stood by my side and given me moral support whenever I was low and
boosted my will power.
Thank You.
PARSHURAM SAHOO
IILM BUSINESS SCHOOL, HYDERABAD
DATE- 1st September 2009
PLACE-Hyderabad.
4
CONTENTS
SL.No Page. No
1 EXECUTIVE SUMMARY 6
2 INTRODUCTION 7
3 HDFC PROFILE 8
4 STUDY DESIGN 25
5 SAMPLE DESIGN 26
6 LIMITATION 27
7 INTRODUCTION TO PERFORMANCE 28
APPRAISAL
8 NEED FOR PERFORMANCE APPRAISAL 30
9 ACHIEVING ORGANIZATIONAL GOAL 31
10 CHARACTERISTIC OF GOOD PERFORMANCE 32
APPRAISAL
11 EVALUATION TECHNIQUE 32
12 METHOD OF PERFORMANCE APPRAISAL 34
13 FACTOR INFLUENCING PERFORMANCE OF AN 44
EMPLOYEE
14 ADVANTAGES 45
15 SAMPLING 47
16 DATA ANALYSIS AND INTERPRETATION 48
17 FINDING 67
18 SUGGESTION 68
19 QUESTIONNAIRE 69
20 BIBILOGRAPHY 71
5
EXECUTIVE SUMMARY
The best learning experience was that I started from the very basics of
getting to that position and not from the position itself. This helped me get
useful insight and understanding of online marketing, the benefits to the
members as well as the HDFC Standard Life Insurance Company.
Training sessions were held to give me insights about How to create markets
and write comments on other member’s markets and to encourage and
appreciate them for their nice efforts and creative markets.
I also learnt how to work online for such a nice company HDFC Standard
Life Insurance Co. Ltd which enhanced my knowledge, writing skills and
communication.
6
INTRODUCTION:
The process of Human Resource Development (HRD) helps the employee’s
to acquire and develop technical, managerial and behavioral knowledge,
skills & abilities and the values , beliefs &attitudes necessary to perform
present and future roles. The process of Performance Appraisal helps the
employees and management to know the level of employees Performance
compared to the standard or predetermined level.
7
In American business, the Performance Appraisal is done to determine wage
increase, promotion, transfer, regarding the emphasis for the feedback to the
employee’s and assessing the need for their training is very less or we can
say it’s little. In contrast, Indian companies use Performance Appraisal for
training and development, providing feedback to the employee’s and
personal research. They also use it in determining wages and transfers as
they do it in the American companies.
8
2. HDFC PROFILE:
9
Awarded the Economic Times Corporate Citizen award in 2004.
“Best Home Loan Provider” title at the ZEE Pinnacle Awards 2006.
Unit Linked Savings Plan Tops Mint Best TV Ads Survey March,
2008.
10
Other Companies:
BANC ASSURANCE:
11
Career:
HDFC Bank is a dynamic bank; with a youthful and enthusiastic team
determine to accomplish the vision of becoming a world-class Indian bank.
Our business philosophy is based on four core values – Customer Focus,
Operational Excellence, Product Leadership and People. We believe that the
ultimate identity and success of our bank will reside in the exceptional
quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, motivating, and retaining the best people in
the industry.
12
objective is to build sound customer franchises across distinct business so as
to be a preferred provide of banking service for target retail and wholesale
customer segment, and to achieve a healthy growth in probability, consistent
with the Bank’s risk appetite. We are committed to do this while ensuring the
highest levels of ethical standards, professional integrity, corporate
governance and regulatory compliance.
Our business strategy emphasizes the following:
E Corporate Governance:
HDFC Bank recognizes the importance of good corporate governance,
which is generally accepted as a key factor in attaining fairness for all stake
holders and achieving organizational efficiency. This corporate Governance
Policy, therefore, is established to provide a direction and framework for
managing and monitoring the bank in accordance with the principle of
goods corporate governance.
13
in 1825, Currently over 7 million Customers worldwide, operation in
all the important markets of the world like Austria, Canada, China,
Germany, Spain, Hong Kong, Ireland and India through its network.
Standard Life listed on 10th July 2006, the biggest float on the London
Stock Exchange in the last five years.
14
The financial expertise of HDFC Group, combined with the Insurance
expertise of Standard Life is committed to offer better financial solution
to the customers.
Introduction
Joint venture: Stake Holding Pattern
15
26.00% 74.00%
HDFC Standard Life believes that stabling a strong and ethical foundation is
an essential prerequisite for long term sustainable growth. To ensure this we
have concentrated our focus on expansion of branch network, organizing an
efficient well trained sales force, and setting up appropriate system and
process with optimum use of technology. As all these areas from the basic
infrastructure for establishing the highest possible customer service
standards.
The most successful and admired life insurance company which mean that
we are the trusted company, the easiest to deal wit, offer the best value for
money, and set the standard in the industry.
16
As a joint venture of leading financial services groups, HDFC Standard
Life has the financial expertise required to manage your long term
investments safety and efficiently.
Range of Solutions
Our gross premium income for the year ending March 31, 2009 stood at Rs.
5,564.69 cores. The company has covered over 10, 00,000 lives as on March
31, 2009.
Our core values are drilled down to all levels of employees, as these are
inviolable. We continue to promote high integrity in business practices and
shun short cuts and unethical practices, as we wish to be perceived as an
institution with high moral standing. Since our inception in 2000, when
Indian insurance space was opened for private participation, we have
consistently focused on setting benchmarks in all aspect on insurance
business. Being the first private player to be registered with the IRDA and
the first to issue a policy on December 12, 2000, our differentiators are:
Our values
17
Integrity
Innovation
Customer Centric
People care
Team work
Strong promoter:
Our brand has managed to set a new standard in the Indian life insurance
communication space. We were the first private life insurer to break the ice
using the idea of “Sar Utha Ke Jiyo”. Today, we are one the few brands that
customer recognize, like and prefer to do business. Moreover, our brand
thought, “Sar Utha Ke Jiyo”, is the most recalled campaign in its category.
Investment philosophy:
18
We follow a conservative investment management philosophy to ensure that
our customer’s money is looked after well. The investment policies and
actions are regularity monitored by a formal investment committee
comprising non- executive directors and the Principal Offers & Executive
Director.
As a life insurance company we understand that customer have invested
their savings with us for the long term with specific objectives in mind.
Thus, our investment focus is based on the primary objective of protecting
and generating good, consistent, and stable investment returns to match the
investor’s long term objective and return expectations, irrespective of the
market condition.
Despite the criticality of the life insurance sales in the industry have been
characterized by over by reliance on tax benefits and limited advice-based
selling. Our eight-step structured sales process “Disha” however, helps
customers understand their latent needs at the first instance itself without
focusing on product features or tax benefits. Need- based selling process,
“Disha” the first of its kinds in the industry, looks at the whole financial
picture. Customers see a plan not piecemeal product selling.
Focus on training:
19
Training is an integral part of our business strategy. Almost all employees
have undergone training to enhance their technical skill or the softer
behavioral skill to be able to delver the service standards that our company
has for itself. Besides the mandatory training that financial consultants have
to undergo period to being licensed, we have developed and implemented
various training modules covering various including product knowledge,
selling skills, and objective handling skills, professional and so on.
HDFC Standard Life does not focus in the business of ramping up the top
line only, but to create maximization of stake holder’s value. Today, we are
extremely satisfied with the base that we that we have created for long term
success of this company.
Transparent dealing:
We are one the few companies whose product details, pricing; clauses are
clearly communicated to help customer take the right decision.
20
HDFC Standard Life’s wide and diversified product portfolio help
individuals meet their various need, be it:
Savings: Save for the milestones and protect your savings too
21
HDFC Standard Life Selected as ‘4Ps Power Brand 2006’, for being
of the India’s Top 25 Most Innovative Companies’.
22
He joined HDFC Limited in 1981 and became an Executive Director in
1993. He was appointed as its Management Director in November, 2000.
23
Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the core team
to set- up the Securities & Exchange Board of India (SEBI) and is also
associated with various committees of SEBI and the Reserve Bank of India
(RBI).
Mr. Paresh Parasnis is the principal officer and executive director of the
company November 14, 2008. A fellow of the institute of Charted
Accountant of India, he has been associated with the HDFC Group since
1984. During his 16 – year’s tenure at HDFC Limited, he was responsible
for driving and spearheading several key initiatives. As one of the founding
members of HDFC Standard life, Mr. Parasnis has been responsible for
setting up branches, performance management system, overseeing new
business new business claims settlement, customer interactions ect.
Other Companies
24
HDFC Property Ventures Ltd.
STUDY DESIGN
Objective of the study
3. To know the satisfactory level and the comfortable level between the
Employees and superiors.
25
Methodology is said to be the procedure or way in which the project
work has been done. In the project work, the methodology adopted is
data collection and sample plan.
Source of data:
The data for the study has been collected from various primary and
secondary sources.
Primary data:
Questionnaire:
Secondary data:
SAMPLE DESIGN:
26
1. Population: The population for the present study consists of all the
employees of HDFC Standard Life Co Ltd working at Somajiguda
Branch-V.
2. Sample size: The size of the sample for the present study is confined
to 50 employees belonging to personnel. Administration, marketing
department of HDFC Standard Life Insurance Co Ltd. Somajiguda
Branch-V. The size is confined due to time and availability.
3. Sample Technique: The sample for the present study is selected using
simple random technique.
LIMITATIONS:
27
The responses would have also been affected by the amount of work
and working conditions.
28
which he is employed, for the purpose of administration including
placement, selections for promotions, providing financial rewards & other
action which required differential treatment among the group as
distinguished from actions affecting all member equally.”
BY HEYEL
Specific.
Measurable.
29
Achievable (Occasionally agreed between the line manager &
employee).
Result oriented.
30
They can be mechanism of increasing communication between the
employee &his.
Supervising officer so that each employee gets to know the difficulties
of his subordinates and attempt to solve them.
It provides legally defensible reasons for making promotion, transfer,
and reward and discharge decisions.
They can be instruments to provide an opportunity for employees for
self reflection And goal setting so that individually planned and
monitored development takes place.
They can assist in a variety of personnel decisions by generating data
about each employee periodically.
Develop inter personal relationship.
To help in salary increment.
To prevent grievance & in-disciplinary activities.
Provide information about the performance ranks.
31
The appraisal process starts with a manager and employee setting goals for
the year together. The most effective goals are measurable and have easy to
understand performance standards.
32
Develop valuable communication among appraisal participants.
Encourage increase self –understanding among staff as well as insight
into the kind of development activities that are of value.
Distribute rewards on a fair & credible basis.
Clarify organizational goals so they can be more readily accepted.
Improve institutional/departmental manpower planning, test
validation,& development of training programs.
EVALUATION TECHNIQUE:
The six steps in performing evaluations
Specific.
Measurable.
Achievable (occasionally agreed between the line manager
&employee.
Result orientate in a company.
Times framed (with a set date for competition).
When to rate: Usually, all employee are rated on/ near the sane date in a
Company.
33
In many companies there is one evaluation in a year. However, more &more
organization shifts to evaluation: this is convenient especially in fast moving
organization, because a more frequent of the objectives is possible.
TRADITIONAL METHODS:
34
Individual evaluation methods are those techniques when the standards of
performance are defined individually, without references to other person(s).
Is the oldest & still most used method of evaluation? In case the case
the rater is presented with A set of traits & is asked to rate the
employee on each them. There are certain advantages in using
methods
Advantages:
Disadvantage:
35
substitute graphic rating scales, as graphic rating scales permits to evaluate
all the employees high.
Essay evaluation:
In which the rater is asked to describe the strong & week aspects of the
employee’s behavior by a supervisor. Usually, this method is used in
combination with other methods.
Advantages:
Explanation will give specific information about the employee and can
revel more about the supervisor.
Disadvantages:
36
Technique is a method according to which the rater maintains a log of
behavioral incidents that represent either effective for each employee being
rated the basis of this method is the principle that there are certain
significant set in each employees behavior &performance which makes all
the difference between success &failure on all jobs. Feedback is provided
about the incidence during performance review session. The advantage of
this method is that the results are less subjective, but this method needs more
time to use than the other techniques. This method has significant limitations
too. Negative incidents are generally more noticeable than positive ones, the
recording of the incident is the chore of the supervisors &may be put off
&easily forgotten the feedback may be too much at one time &appear as a
punishment etc.
Ranking methods:
The case when the superior is asked to rank the subordinates based on some
overall criterion.
Advantages:
● Easy to use.
● The relative position of each man is tested in terms of his numerical
ranks.
It’s used in case where there are several subordinates to be ranked. Each
employee is paired with every person to be compared with. The rater
chooses as the better performing subordinate. The number of times that a
37
person is chooses as the better employee is tallied, & results are indexed
based on this number.
Advantages:
Disadvantages:
It’s the method similar to grading on a curve. This rater is asked to rate the
employees in some fixed distribution of categories, such as 10% in low, 20%
in low average, 40% in average, 20%in above average,10%in high.
Advantages:
MODERN METHODS:
Behaviorally anchored rating scales (BARS):
38
This method was developed by smith & Kendall. The BARS approach relies
on the use of critical incidents to serve as anchor statements on a scale. A
BARS rating form usually contains 6 to 10 specifically defined performance
dimensions, each with 5 to 6 critical incident anchors (both positive &
negative). Employee prefer the using of this method instead of others, as it
seems that they become more committed, less tense & more satisfied than in
case using other methods. Behavioral Observation Scales, developed by
Latham &Associates. Like BARS, the BOS use the critical incident
technique to identify a series of behaviors that cover he domain of the job.
The major difference is that the rater should give under BOS how often the
rate has been observed engaged in the specific behaviors identified in BOS.
Assessment center:
In this individual from departments are brought to spend two or three days
working on an individual or group observers rank the performance of each
and every participant in order of merit. Since assessment center are basically
meant for evaluating the potential of candidates to be considered for
promotion, training or development, they offer an excellent means for
conducting evaluation processes in an objective way all assesses get equal
opportunity to show their talents and capabilities and secure promotion
based on merit.
39
development, ages and benefits etc. employee contribution is the money
value of employee service, which can be measured by labor productivity or
value added by human resources.
An exact answer cannot be given. The major problem is not with the
techniques but how they are used & by whom? The responsibility of the
rater & the seriousness of the rater are much more critical than which
method to choose.
40
generally used approaches to these interview situations; tell & sell, tell, &
listen & problem solving the using of which depends mainly of the
experience level of the employee.
41
Performance analysis to identify factors that have facilitated & factors
that have hindered performance.
Identification of training needs.
Action planning & goal setting for future.
Final assessment by the supervising officer for administrative
purposes.
Self – Appraisal:
Self –appraisal has an important role to play in employee development. The
individual is not likely to learn & develop himself he is interested in his own
learning & development and makes conscious efforts to develop. Such effort
would include identifying possible direction of growth, experiencing growth
through action, review & reflection to consciously monitor the growth.
42
Self –appraisal is not meant to be ritualistic form filling exercise. It is a
significant initial step for performance development. Self appraisal should
start at end of the performance period just before performance review
decision take place. Self- appraisal should start with the appraise taking up
his KPA’s & objective for the period that was over & reflecting about his
achievements.
Performance counseling:
Objective of counseling:
43
Helping him understand himself, his strengths & weaknesses.
Helping him to review in a non threatening way, in order to
help him in his problem, in achieving various objectives.
The system of CR has two principal objectives & the reporting
officer has a very clear perspective of these objectives.
To assess truly the performance of the subordinates in his
present job providing guidance & counseling to him to improve
his performance.
To assess his potential & to prepare him through appropriate
feedback guidance for higher responsibilities
The superior officer has to give subordinate a clear understanding of the task
to be performed & the subordinates required to the best of his capacity to the
quantitative & qualitative achievements of the given tasks making optimum
use of the resources available. Also, both the superior & his subordinate are
aware of the ultimate goal of their organization, which can be achieved only
through joint effort by both of them.
44
Clarity of objectives.
Public relation.
Data management.
Attitude.
Knowledge of job.
Acceptance of responsibility.
Development of subordinates.
Risk-Taking.
Delegating.
45
To take decision on termination.
46
The Halo Effect- It occurs when the rater assigns on several
dimensions of performed based on an overall, general
impression of the rate.
SAMPLING:
Sampling: Sampling may be defined as the selection of some part of an
aggregate or totality on the basis of which a judgment or inference about the
47
aggregate or totality is made. In other words, it is the process of obtaining
information about an entire population only a part of it.
48
90
80
70
60
50
40
30
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
DATA ANALYSIS AND
INTERPRETATION
49
a) YES b) NO
YES
NO
From the above it is evident that 100% of the employees feel that
performance appraisal is quit essential for any organization.
50
a) YES b) NO
YES 48 96
NO 2 4
TOTAL 50 100
YES
NO
51
From the above data it is evident that 96% of the respondents feel that
performance appraisal is very essential in the organization, where as 45
employees feel it is not essential in organization.
a) YES b) NO
YES 42 84
NO 8 16
TOTAL 50 100
YES
NO
52
From the above data it shows that 84% of employees feel that organization
facilitate growth & learning due to performance appraisal, where as 16% of
employees feel that organization does not provides growth & learning of
employees.
YES 46 92
NO 4 8
TOTAL 50 100
4. Performance appraisal system really assesses the quality of an employee.
Do you agree?
a) YES b) NO
53
YES
NO
From the above data it is evident that 92% of the employees feel that the
performance appraisal system really assesses the quality of an employee,
where as 85 feel that it does not assesses the quality of an employee.
c) Annual basis
54
OPINION NO.OF PERCENTAGE
RESPONNDENTS
A 8 16
B 12 24
C 30 60
TOTAL 50 100
A
B
C
From the above data it is evident that 60%of the employees feel that
performance appraisal should be done on annual basis & 24% of the
employees feel should be in done on half yearly basis 165 of the employees
feel should be done in quarterly basis.
55
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 5 10
B 37 74
C 8 16
D 0 0
TOTAL 50 100
A
B
C
D
From the above data it is evident that 74% of the employees ‘agree’ that
performance appraisal system of the organization distinguishes performs &
non performers, where as 105 strongly agree and 16% disagree doesn’t
distinguishes performers & non-performers.
a) YES b) NO
56
NO 2 4
TOTAL 50 100
YES
NO
From the above it shows that 96% of the employees feel that periodic
performance appraisal of the employee is required for maintaining efficiency
of individual and organization and above 4% of the employees feel that it is
not required to maintained.
a) YES b) NO
57
OPINION NO.OF PERCENTAGE
RESPONDENTS
YES 41 82
NO 9 16
TOTAL 50 100
YES
NO
From them above data it shows that 82% of the employees are aware on
which their performance is appraised but 16% of the respondents feel that
they are not aware of the basis on which their performance is appraised.
58
A 2 4
B 27 54
C 3 6
D 18 36
TOTAL 50 100
A
B
C
D
From the above data it shows that 54% of the employees feel that
performance appraisal in railways is based upon performance 36% feel that
it based on both performance and recommendation 7 trade union.
a) YES b) NO
59
YES 46 92
NO 4 8
TOTAL 50 100
YES
NO
From the above data it shows that 92%of the employees feel that
performance appraisal is contributor to encourage better job, but 8% of the
employees feel that it is not a contributor for job.
c) Strongly Disagree
60
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 38 76
B 6 12
C 5 10
D 1 2
TOTAL 50 100
A
B
C
D
From the above data it shows that 76% of the employees feel that appraisal
system discovers potential and make their short comings and 125 employees
feel that it does not discover potential.
d) Strongly Disagree
61
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 39 78
C 5 19
C 4 8
D 2 4
TOTAL 50 100
A
B
C
D
From the above data it shows that 78% of the employees agrees with the
above statement and 10% disagree.
d) No Need
62
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 30 60
B 10 20
C 4 8
D 6 12
TOTAL 50 100
A
B
C
D
From the above data it is evident that most of the employees feel that their
performance should be communicated to them in a written form.
a) Formal b) Informal
63
YES 29 58
NO 21 42
TOTAL 50 100
YES
NO
From the above data it’s evident that 58% feel of the employees feel that
counseling in an organization should be of formal kind and 42% of
employees feel counseling should of informal kind.
64
A 12 24
B 10 20
C 28 56
TOTAL 50 100
A
B
C
From the above data it’s evident that 56% of the employees feel that
counseling is used to know the areas of development and 245 feel that it is
just a formality and 20% feel that it identifies the strength & weakness of the
employees.
16. How often did you speak, or discuss about your performance with your
superiors?
d) Never
65
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 16 32
B 19 38
C 9 18
D 6 12
TOTAL 50 100
a
b
c
d
From the above data it’s evident that 38% of the employees said that they
sometimes and 32% frequently speak with their superiors about
performance.
d) Strongly disagree
66
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 25 50
B 0 0
C 25 50
D 0 0
TOTAL 50 100
Agree
Disagree
Strongly Agree
Strongly Disagree
From the above data it’s evident that 50% of the employees are strongly
agree and 50% agree that training & development the quality of the
employees in the organization.
67
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 16 32
B 32 64
C 1 2
D 1 2
TOTAL 50 100
Large extent
Moderate extent
Less extent
Not at all
From the above data it’s evident that 64% of the employees are feel that to
moderate extent and 32% to large extent think that performance increased as
a result of performance appraisal system.
Findings:
68
It has been found that most of the employees think that the
performance appraisal is essential and they think it is used as a tool
to improve performance, to determine organization needs, and to
basis for pay increase, promotions, and transfer.
The appraisal system facilitates growth & learning of employees
and it is used to distinguish performers.
The existing appraisal system helps the management to identify
potentiality of employees as well as useful for maintaining
efficiency of the individual & organization.
Some employees that they do not know which basis their
performance is appraised and most of the employees feel that it
help them discover their potential and enables to know their short
coming.
Organization provides training & development programs to
overcome the short comings identified in performance appraisal.
The employees that their promotions match their contributions and
new performance appraisal technique should be adopted in the
organization and the short comings are informed to them.
The performance appraisal supports to experiment with new ideas
as basis for promotion.
Suggestion:
The performance appraisal system should facilitate career growth &
learning of employees.
The short coming of employees should be informed to them after
performance appraisal.
Promotion should be based on performance rather than seniority or any
69
other factors.
Performance appraisal should be appraised by granting awards/ merit
certificate.
New performance appraisal techniques such as 360 degree performance
appraisal system should be used.
The performance appraisal should not be assessed by biased mind and
personal grudge.
Feedback should not be given to the employees more frequently.
a) Yes b) No
70
2. Do you think that Performance Appraisal is essential?
a) Yes b) No
a) Yes b) No
c) Annual basis
a) Yes b) No
71
a) Seniority b) Performance
d) Strongly Disagree
a) Yes b) No
a) Yes b) No
BIBILOGRAPHY:
Davis, Keith. “Human Behavior at Work”, Singapore. Hill
International Book co; 1989.
72
Essential of HRM and Industrial Relations- P. Subba Rao.
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76
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