Growth in Insurance Sector

PROJECT REPORT ON SUMMER TRAINING

NAME OF THE ORGANISATION: HDFC Standard Life Insurance
PLACE : Dharamshala
FIELD OF STUDY : Marketing
TOPIC OF RESEARCH : Recruitment, growth and potential of HDFC
Standard Life Insurance.

Submitted to
Institute of Engineering and Emerging Technology, Baddi.
In partial fulfillment of the
Requirements for the award of Degree of
Masters of Business Administration.

SUBMITTED BY:
Name Sapna Sood
Course MBA
Year IInd year
Roll No 98/08
HPU (roll no) 981

INSTITUTE OF MANAGEMENT STUDIES,
BADDI, DIST SOLAN,
HIMACHAL PRADESH
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To whomsoever it may con

This is to certify that
Mr. / Miss SAPNA SOO
Technologies, Baddi (IMS)
titled “ Recruitment, Grow
From 1- July-09 (Start date)
Company Ltd, DHARAMSHA

We wish her/ him good luck
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ACKNOWLEDGEMENT
I would like to extend my sincere thanks to HDFC Standard Life Insurance Company for
providing me an immense opportunity for undertaking research in their esteemed
organization and providing me with continuous support and guidance which was vital for
the successful completion of the project.

I would like to take this opportunity to express my gratitude to my project guide, Mr.
Sunny Walia, Branch development manager, for a significant contribution made by
him towards my learning, by way of making himself available, providing leads in course
of the project and most importantly for the tremendous source of encouragement and
inspiration he has bestowed on me throughout the project. He was my advisor in HDFC
SLIC.

I express my sincere gratitude to Mr. Varun Gandotra Branch Manager of HDFC
Standard Life Insurance, Dharamshala, and also our training officer Mr. Sanjeev for
their timely guidance and in providing the required facilities and information for
completing the project.

I am also very indebted to my parents and my brother who have been with me at every
moment of my life.

I also wish to thank Mr. Vivek Kapoor, channel development officer for his kind help
and support during the tenure of the project.

I also want to take this opportunity to express my sincere gratitude to all the faculty
members of HDFC Standard Life Insurance, Dharamshala, my friends and all the
people who encouraged me throughout the project.

I am also thankfull to god for always being there.

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TABLE OF CONTENTS

CHAPTER NO. PAGE.NO.

1. EXECUTIVE SUMMARY…………………………………………………..…….7-8
2. INTRODUCTION TO INSURANCE………………………………………..……9
 DEFINITION…………………………………………………………….…...10
 CONCEPT OF INSURANCE………………………………………….…….10
 KINDS OF INSURANCE……………………………………………..……..11-12
 FUNCTIONS…………………………………………………………….……13-14
3. RECRUITMENT OF FC IN HDFC
 FINANCIAL CONSULTANT…………………………………………….….15
 BENEFITS GIVEN TO FC…………………………………………………...15
 PAYOUT TERMS……………………………………………………………..16
 SPECIFICATIONS……………………………………………………………16
 PAY OUT ELIGIBILITY……………………………………………………...17
 CUMULATIVE LICENSING PAYOUT CHART…………………................18-19
 TRAINING GIVEN TO FC……………………………………………………20
 RATE OF COMMISION THAT FC WILL GET ON PLANS………..............21
 QUALITY TRAINING IN HDFC SLIC……………………………………...22
 CLUBS………………………………………………………………………….22
 STAR PERFORMERS CLUB…………………………………………………22
 FIELD WORK ON RECRUITMENT………………………………………....23
4. DIFFERENT PRODUCTS ON WHICH WE WERE TRAINED
 UNIT LINKED YOUNG STAR PLUS-II………………………………..24-29
 UNIT LINKED ENDOWMENT PLUS-II………………………………..30-34
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 HDFC SIMPLILIFE……………………………………………………….35-38

 UNIT LINKED ENDOWMENT –II………………………………………
39-43
 UNIT LINKED ENDOWMENT
WINNER……………………………….44
 HDFC’S SURGICARE PLAN……………………………………………..44
 UNIT LINKED YOUNG STAR CHAMPION…………………………….45
 UNIT LINKED WEALTH MAXIMISER PLUS…………………………..45
5. INSURANCE INDUSTRY’S PROFILE
 LIFE INSURANCE…………………………………………………………..46
 HISTORY AND PRESENT STATUS OF INSURANCE MARKET………46
 INSURANCE SECTOR REFORM…………………………………………..47-48
 INDIAN INSURANCE MARKET…………………………………………...49-53
 OVERVIEW OF INDIAN INSURANCE INDUSTRY……………………..54
 LIFE INSURANCE IN INDIA……………………………………………….54-55
 IRDA…………………………………………………………………………...56
 DISTRIBUTION TIE UPS OF LIC……………………………………………58
 FUNDWISE PATTERN OF INVESTMENT OF LIC…………………………59
 MARKET SHARE OF PRIVATE INSURANCE COMPANIES……………..60
 EXISTING PLAYERS IN THE MARKET…………………………………….60
 PRODUCT MIX OF LIC……………………………………………………….61
6. INTRODUCTION OF HDFC SLIC
 OVERVIEW OF HDFC SLIC………………………………………………….62-63
 KEY STRENGTH……………………………………………………………….64-67
 PROFILE OF THE ORGANISATION………………………………………...68-69
 COMPANY’S HISTORY……………………………………………………….70
• CODE OF CONDUCT AND ETHICS………………………………….71-76
• CORPORATE GOVERNANCE POLICY……………………………...77-78
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 RECENT ACHIEVEMENTS AND MILESTONES…………………………….79-80
 PRODUCTS OF HDFC SLIC……………………………………………………81-87

 INDUSTRIES OF HDFC SLIC…………………………………………………..88
 VISION AND VALUES………………………………………………………….89
• RESPONSIBILITY OF BOARD OF DIRECTORS……………………90
• AUDIT AND RISK COMMITTEE OF
DIRECTORS………………….91
7. RESEARCH
METHODOLOGY………………………………………………………….92-95
8. DATA PRESENTATION, ANALYSIS AND INTERPRETATION……………………96-139
9. SUMMARY OF THE PROJECT……………………………………………………….140-149
 FINDINGS……………………………………………………………………150-151
 SUGGESTIONS………………………………………………………………152-158
 CONCLUSION………………………………………………………………159
13. ANNEXURE AND BIBLIOGRAPHY……………………………………………..160-163

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EXECUTIVE SUMMARY
Insurance is the pooling of fortuitous losses by transfer of such risk to insurers,
who agreed to provide the pecuniary benefit on their occurrence, or to render service
connected with risk. It is the transfer of financial responsibility for the risk at the point of
occurrence and conventionally involves the insurer in a commitment to pay. The
insurance service lead to efficient and productive allocation of capital resources,
facilitate growth of trade and commerce. Globalization will certainly increase insurance
penetration and all professionals shall equip themselves to exploit opportunities offered
by this sector.

The consumers are the largest economic group in any country and the present
day business activities are because of consumers only. Thus, consumers are the pillars
of the economy. The consumers are not only the heart of marketing system, but also the
controller of marketing functions. But it the modern marketing system consumers
sovereignty has become a myth on account of the variety of problems in the process of
merchandising. The study of consumer behavior enables marketers to understand and
predict consumer behavior in the market place; It also promote understanding of the
role that consumption plays in the lives of individual.
This gives me an opportunity to work on with this endeavor focusing on the
recruitments and growth of the company with special reference to the insurance
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products’. The primary objective of the study is to understand the growth of the

company by studying the awareness of the financial products within the consumers and
the number of consumers who take the policy from HDFC SLIC. Apart from this the
project also mentions the necessity of recruitment of financial consultants. I have done
field work regarding the recruitment.
The introductory chapter gives and insight to the insurance industry. It briefly
explains about the history of life insurance sector. It also contain the organizational
profile of HDFC SLIC, stating about its mile stones, vision, products, protection
solutions, advertising effectiveness and finally about its marketing strategies
and challenges.
The second chapter gives a glimpses idea about the area of dissertation i.e.
theoretical background of the study. This part clearly explains the theoretical part of
consumer behavior in general. It also includes statement of the problem, need and
impotents of the present study and focal objectives of the dissertation undertaken.
The third chapter explains about literature review. It briefly describes what all are
the information source for the present study and what benefits has derived from the
reference of those literatures.
Next part explains about the research methodology. With the basic
understanding of the study research design was formulated. To collect the data,
questionnaires consisting of 24 questions were prepared. The necessary data were
collected through personal interviews and interaction with both company personnel and
holders of life insurance policies. This chapter specifically explains about the type of
research, sample technique, sample size, actual collection of data and the tools used
for the testing of hypothesis.
The last but one chapter contains the analysis and interpretation of data
collected. The collected data was coded through tally bars and presented in percentage
wise and depicted in the form of graphical representation. It also includes the
hypothesis test about the overall result of the present study.
The last chapter is entirely the exploration of the research study giving all

respondents opinion in nutshell as findings i.e. stating that around percentage of
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customers behave positively towards the HDFC SLIC’s products. The dissertation

ends up with the suggestions in order to modify the current system for a higher

growth and progress.

INTRODUCTION TO THE SUBJECT

Introduction to Insurance

Insurance is a complex mechanism & it is consequently difficult to define. Insurance is
co-operative device for spreading over the loss suffered by one or more, caused by
particular risk, over large number of persons who agree to share the loss collectively.
We all are exposed to various risks in our daily life. Even the Wisest & Cleverest can't
avoid all risks. Nobody can predict or foresee the calamity he may suffer in future.
Everybody on the road, whether on foot or in a vehicle carries some risk.' of accident
which may result into serious injury, loss of limb impairing ability to earn livelihood, or
even death. One may take precautions against such risk, but the risk can't be
eliminated. Similarly, there can be loss due to fire, earthquakes, illness etc. Every loss
causes human suffering.
A risk involves loss. Not all, but most of the losses can be expressed in term of
money. A person exposed to some risk may incur a loss. If loss is small he may bear it
alone. If loss is huge he may not be able to bear it alone. Society may've to render help
to enable the sufferer to cope up with the situation. e.g., the help rendered to the victim
of earthquake in Gujarat. However it will be better if a device or system is developed to
provide help to those who happen to suffer a loss. Such a system is INSURANCE.
INSURANCE is a Co-operative device, which spreads, the loss caused by a par-
ticular risk to some person, over a number of person who are exposed to same or
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similar risk & who agree to 'insure' against that risk.

DEFINITIONS:

Functional definition:
Insurance is an instrument of distributing the loss of a few among many. ALLEN C.
MAYERSON, "Insurance is a device for the transfer to an insured of certain risks of
economic loss that would otherwise be same by the insured."

Contractual definition:
JUSTICE TINDALL, "Insurance is a contract in which a sum of money is paid to the
assured in consideration of insurer's incurring the risk of paying a large sum upon a
given contingency."

CONCEPT OF INSURANCE
Insurance is always against the risk (Risk is a condition where there is a possibility
of an adverse deviation from a desired outcome that is expected or hoped for). When
risk is said to be exist, there must always be at least two outcomes: certain and
uncertain. Risk arises out of uncertainty. Therefore Insurance is for the loss arising out
of the uncertainty of an event.
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Insurance is a mechanism or device to reduce the risk through risk sharing and
risk transfer. It is not the property, which is being insured. It is the person’s financial
interest in the property. So, Insurance provides the financial service.

However in simple terms, it has two characteristics:
1. Transferring or shifting of risk from one individual to a group;
2. Sharing losses, on some equitable basis, by all members of the Group.

KINDS OF INSURANCE

1. Life Insurance:
The subject matter of this type of insurance is human life. Most of insurance
policies are combination of saving & security. The insured is promised by the insurance
Co. that during the tenure of insurance in case of his death, his nominee will be paid the
insurance amount.
According to the SECTION 2 (ii) of Insurance Act 1938, "Life Insurance is the
business of effecting contracts of insurance upon human life including any contract,
whereby the payment of money is assured on death except death by accident on the
happening of any contingency dependent on human life and any contract which is
subject to the payment of premium for a team dependent on human life."

2. General Insurance:
(a) Marine Insurance:
It covers the sea or marine perils. Peril is the cause of loss or hazard, which is a
condition that may increase the chance of the loss. Marine Insurance is protection
against marine perils like loss or sinking of the ship, sea piracy, capture by enemy etc.
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(b) Fire Insurance:

It covers loss due to fire to the property like houses, shops, goods factories or go down
etc.
(c) Liability Insurance:
Covers risk of liability against third party, which on insurer might have to pay under
certain circumstances. E.g. injury to the property and/or person of a third person in road
accident or employer's liability for an injury or death of a worker while performing duty
etc.

(d) Social Insurance:
This is aimed at providing social security to the weaker sections of the society. It may
take the shape of pension plans, disability or sickness benefits etc. The premium may
come from government or employee and may also be shared by beneficiary.
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:
1. The date of maturity, or
2. Specified dates at periodic intervals, or
3. Unfortunate death, if it occurs earlier.
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.
Reasons for investing in life insurance policies:
1. Protection for the Family
The most important objective of life insurance is to provide financial protection for the
family in case of an unexpected and premature death of its bread earner. The purpose
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is to protect the dependents against the loss of earning power of the insured through

death or disability. Those who have insured their lives for an adequate sum can live in
peace and comfort, free of the worry of what would happen to their families in the event
of their sudden and premature death.
2. Regular Savings
Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless
there is compulsion to do so. For such people, life insurance is a compulsory, regular
savings scheme, especially the monthly salary savings schemes. Even if you do not
subscribe to the salary savings scheme, you can issue standing instructions to your
bankers to pay the premium regularly without reference to you. The element
of savings in a life insurance contract should be understood in a proper
perspective.

FUNCTIONS OF INSURANCE

A). Primary Functions

1. Certainty of Compensation of Loss:
Insurance provides certainty of payment at the uncertainty of loss. The element of
uncertainty is reduced by better planning and administration. The insurer charges
premium for providing certainty. Life is always full of risks. Life without risks and
uncertainties is unthinkable. Man has always encountered risks of various types since
the inception of civilization. Minor risks can be ignored but the major risks cannot be
ignored and their avoidance is desirable. One of the ways or techniques of meeting the
risks loss is prevention and insurance. Insurance removes all uncertainties and the
assured is given certainty of payment of loss. The insurer charges premium for
providing the said certainty.

2. Insurance provides protection:
The risk will occur or not, when will occur, how much loss will be there is an uncertain?
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There are uncertainties of happenings of time and amount of loss. The main function of

the insurance is to provide protection against the probable chances of loss. The
insurance cannot check the happening of risk.
The insurer gives certainty of payment of loss to the assured by charging premium.

3. Risk sharing:
Risk is uncertain and therefore loss arising from the risk is also uncertain. All business
concerns face the problem of risk and if the concern is big enough the handling of risk
become a specialized function.

(B). SECONDARY FUNCTIONS

1. Prevention of loss: Prevention is always better than cure. Prevention of loss is by
far the best solution to the problem of risk. When prevention fails other methods must
be adopted. The insurance joins hands with those institutions, which are actively
engaged in preventing the losses of the society. Reduction in loss causes lesser
payment to the assured and so more saving is possible which will assist in reducing the
premium

2. It provides capital: It provides capital to the society. For planned development of a
country there is great need for huge amount of capital. The accumulated funds are
invested in providing proper infrastructure and in investing in productive channel. Now a
day, the insurance companies are rendering positive help in the development of trade,
commerce and industries of a country through different scheme of investment.

3. Adequate Financial cover: The need of insurance is largely felt to give a cover to
the rural areas and to the socially and economically backward classes with a view to
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reach all insurable person in the country and provide them adequate financial cover
against death at a reasonable cost.

4. Mobilization of Savings:
In insurance the savings of masses is collected by insurance corporations.

5. Investment:
When funds are invested the interest of the community is kept in mind.

RECRUITMENT AS FINANCIAL CONSULTANT IN HDFC STANDARD
LIFE INSURANCE

FINANCIAL CONSULTANT:
A person who motivates other people to take different policies from the company. He is
a mediator between the company and the people. He provides the people with all the
necessary information regarding the different policies.

There are certain benefits which are provided to financial consultants. Some of them are
mentioned below:

TIER/CLUB LICENSING NOS PAYOUT/LICENSE
SILVER 1-3 1300
GOLD 4-10 1750
GOLD PLUS 11-25 2250
PLATINUM 26-40 2500
PLATINUM PLUS >=41 3000

RECRUITMENT NOS/ PER MONTH PAYOUT /RECRUITMENT
1-6 200
>=7
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Bonus of rs.200/- per license if input/output ratio for the month is >= 33% will be paid
quarterly.

OTHER PAYOUT TERMS:

1. For licensing payouts, processing is done monthly based on slabs of cumulative
count of license during the applicable period.
2. For recruitment payouts, payout cycle is on monthly basis. Each month FC
recruitment count will start from zero.
3. For calculation of input/ output ratio, candidates recruited or licensed as life to life
transfer cases will not be accounted.
4. Recruitments payouts to be made only on the completion of training of the
candidates recruited.
5. PTs will be paid at the payout slab, based on cumulative number of licenses
clocked by the recruited candidates during the applicable period.
6. Incase of recruitment of life to life transfer cases no recruitment payout to be
considered to PTs.
7. If PT is recruitment inactive for 3 months continuously then he is declared
terminated and he may not claim licensing payout post termination.
8. Recruit needs to be approved by the concerned BSM or AM-CD.
9. Payout shall not be paid on recruitments in case not accompanied by prescribed
fees.
10. Payout will be done after 30 days of completion of project tenure by way of either
gift cards or in such fashion.
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SPECIFICATION FOR RECRUITMENT OF FC
Specifications are: (Q-score)

• Age of financial consultant should be in bracket of 25-55 years.
• Family income of FC should be minimum of rs. 3 lacs /annum.
• FC should be a graduate.
• Fc should have spent a minimum of 3 years in the city of current residence.

PAYOUT ELIGIBLE IS AS PER TABLE MENTIONED BELOW:

Recruitmen 1200 1200 1000 1200 0 1200
t payout
Licensing 7400 5250 10250 6750 11250 16500
payout
Tier Gold Gold Gold plus Gold plus Gold plus Platinum
attained

Bonus at 1000 800 800 0 0 0
the end of
1st quarter
Bonus at 200 0 400 1000 0 1400
the end of
2nd quarter

IMPORTANT CALCULATIONS:

• RC is eligible for max of 1200/- rs recruitment payout for a month in case
of >=6 FC recruitment with training completion

• Bonus payout is calculated on quarterly cycle.
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TIER COUNT PAYOUT INCREMENTAL INCREMENTAL CUMULATIVE
COUNT OF LICENSE LIC PAYOUT
FOR 2009(RS)
SILVER 1 1300 1 1300 1300

SILVER 2 1300 1 1300 2600

SILVER 3 1300 1 1300 3900

GOLD 4 1750 1 1750 5650

GOLD 5 1750 1 1750 7400

GOLD 6 1750 1 1750 9150

GOLD 7 1750 1 1750 10900

GOLD 8 1750 1 1750 12650

GOLD 9 1750 1 1750 14400

GOLD 10 1750 1 1750 16150

GOLD 11 2250 1 2250 18400
PLUS
GOLD 12 2250 1 2250 20650
PLUS
GOLD 13 2250 1 2250 22900
PLUS
GOLD 14 2250 1 2250 25150
PLUS
GOLD 15 2250 1 2250 27400
PLUS
GOLD 16 2250 1 2250 29650
PLUS
GOLD 17 2250 1 2250 31900
PLUS
GOLD 18 2250 1 2250 34150
PLUS
GOLD 19 2250 1 2250 36400
PLUS
GOLD 20 2250 1 2250 38650
PLUS
GOLD 21 2250 1 2250 40900
PLUS
GOLD 22 2250 1 2250 43150
PLUS
GOLD 23 2250 1 2250 45400
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PLUS
GOLD 24 2250 1 2250 47650
PLUS
GOLD 25 2250 1 2250 49900
PLUS
PLATIN 26 2500 1 2500 52400
UM

CUMULATIVE LICENSING PAYOUT CHART BASED ON CUMULATIVE
COUNT OF LICENSES

FINANCIAL CONSULTANT

Financial consultant is not an agent. The biggest difference is that an agent is not
certified where as an FC is certified by a governing body of the insurance called the
IRDA. An FC advice and recommend the best solution to meet a client’s financial
requirement. Working as an FC brings an excellent growth opportunity as the FC
himself can decide the amount of his own pay cheque. He can himself choose his
working hours

TRANINIG OF A FINANCIAL CONSULTANT

Training Managers are appointed in major cities for the constant upgrading in providing
service to a customer.
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Classroom sessions are conducted for all the trainees. 50 hours training is compulsory
for every trainee. The examination is conducted by IRDA. If the FC is far away from the
place of training then he can also opt for online training. They will have timely
interactions with the company spokespersons.

A special program is started to improve the selling skill of the FC which is known as the
Professional Selling Skills Programme. The basic objective of the program is to:

• Provide a lead

• To increase the participation of FC in exhibitions and organizing events.

• There are many Branch level contests which are started. If an FC works hard and
smart and fulfills the criteria for being a winner then he is given certain gifts,
benefits and free tours.

RATE OF COMMISION THAT EVERY FC WILL GET ON THE FOLLOWING
PLANS:
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Rate of commision
Type of Plan First year 2nd year 3rd Year+ Bonus
Endowment 25% 5% 5% 15%
Money Back 25% 5% 5% 15%
Term Assurance (RP) 20% 5% 5% 15%
Loan Cover Term (RP) 20% 5% 5% 15%
PPP (RP) 7.50% 2% 2% NIL
SPWLP/ PPP (SP) 2% - -
ULEP 12.50% 4% 1% NIL
ULPP (RP) 7.50% 2% 1% NIL
ULPP (SP) 1%

HDFC SLIC gives the top quality training to all the FC. There are certain features which
keeps the HDFC SLIC on the top when it comes to proper training of an FC. Some of
them are mentioned below:

• Support of a dedicated Sales Development Manager

• First class pre and post sales support
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• Lead Generation Support

• Marketing Support

• Recognition Programs - MDRT, Top Achievers Section

• Reward Programs

• Online Support

CLUBS:

There are certain clubs which are started to increase the healthy competition
between the financial consultants.

• Level 1: Star Centurion Club (upto 10% extra commission)

• Level 2: Gold Star Performers Club (5% extra commission)

• Level 3: Silver Star Performers Club (2.5% extra commission

Star Performers Club

• Periodic Branch Level Contests are started.

• National Level Contests are started to increase the competition and urge to do
better between the different FC’s.

 Prizes ranging from Foreign Trips, Consumer Durables, Mobile phones, Laptops,
Palmtops, Handy-cams, Gold Coins etc.

 All Financial Consultants who qualify for National Level gets Certificate
of Achievement from the Head - Retail Sales

FIELD WORK IN HDFC SLIC

Field work is of following two types:
 Policies
 Recruitment
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FIELD WORK

POLICIES RECRUITMENT

During my tenure in HDFC SLIC, we were only asked to do recruitments of financial
consultants.
TARGET received was of 4 recruitments. By the tenure of my training in HDFC SLIC I was able
to complete 7 recruitments. The details of them are as follows:

Name of the financial Educational qualification Profession
consultant
Arvind kumar Graduation Shop keeper
Sumit kumar Graduation Shop keeper
Sanjay kumar Graduation Clerk
Tinkle Graduation Shop keeper
Susheel Graduation Shop keeper
Chander Graduation Teacher
Narendra Graduation Teacher

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In HDFC SLIC, DHARAMSHALA, we were trained about
different products. These are mentioned below:
UNIT LINKED YOUNG STAR PLUS-II

(Invest in your child’s dreams and secure your self respect)
In young star plus policy, the investment risk in investment portfolio is borne by the
policy holder. The HDFC Unit Linked Young Star Plus-II gives:
• Valuable protection to your child in case you are not around.
• An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments.
• Regular loyalty units to boost your fund value every year.
• Flexible benefit combinations and premium payment options.
• Flexible additional benefits options such as critical illness cover.
• Flexible benefit payment preferences- double benefit and triple benefit.
We can choose our investment funds and premium. We will then invest our premium,
in our chosen funds, in the proportion we specify.
In case of the person’s unfortunate demise during the policy term, we will:
1. Pay the sum assured he had chosen to the beneficiary.
2. For double benefit continue to pay 100% of the original regular premiums
towards your policy.
3. For triple benefit continue to pay 50% of the original regular premiums
towards your policy and pay the balance 50% of the premium to the
beneficiary.
This means that HDFC Standard Life Insurance will continue to make your savings
on your behalf, in your absence.

Four easy steps to your own plan:
STEP 1 Choose the premium you wish to invest.
STEP 2 Choose the amount of protection you desire.
STEP 3 Choose the additional plan benefit you desire.
STEP 4 Choose the investment fund you desire.
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FUNDS DETAILS Asset class

Risk/return
Money Bank Govt. Equity
market deposit security
Liquid low capital risk. Very 100% ------ Very low
fund-II stable return

Stable Low capital risk Very low
managed
Duration< 12 month 0-30%
fund-II

Duration between 18 0-20%
to 24 month.

Secure More capital stability. 0-5% 0-20% 75-100% Low
managed Higher potential
fund-II return than liquid fund

Defensive Access to long term 0-5% 0-15% 50-85% 15-30% moderate
managed returns
fund-II risk down.

Balanced Increased equity 0-5% 0-15% 20-70% 30-60% High
managed exposure gives long
fund-II term results
Stability due to bond
exposure

Equity Long term return 0-5% 0-10% 0-40% 60- Very high
managed Little stability 100%
fund-II

Growth Maximize return 0-5% ----- ---- 95- Very high
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fund-II 100%investment in 100%
high quality equities.

Step 1: CHOOSE YOUR REGULAR PREMIUM
This is the premium you will continue to pay each year of the policy. You can pay
monthly, half yearly or annually. The minimum regular premium is Rs.12000 per year
for annual and half yearly policies. For monthly mode, the minimum regular premium
is Rs 1500 per month. You may also choose to pay adhoc single premium top up or
additional regular premiums.

STEP: 2 CHOOSE YOU’RE LEVEL OF PROTECTION
We can choose any amount of sum assured with:
• A minimum of 5 times your chosen annual regular premium.
• A maximum of 40 times your chosen annual regular premium.

STEP: 3 CHOOSE ADDITIONAL PLAN BENEFITS
We offer a range of valuable protection options to secure the future for your family.
We can choose either life options or life and health options.
Benefit type Benefit payment Summary of the
preference benefits
Death benefit Double benefit They will pay 100% of all
future regular premium.
Triple benefit 50%of the premium paid
by them.
Critical illness benefit Double benefit Same as above
Triple benefit Same as above

STEP: 4 CHOOSE YOUR INVESTMENT FUNDS
In this plan the investment risk in your chosen investment portfolio is borne by you.
This means that the premium you pay are subject to investment risk associated with
capital markets.

ELIGIBILITY:
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BENEFITS TIME PERIOD AGE AT ENTRY MAXIMUM
MINIMUM MAXIMUM MINIMUM MAXIMUM AGE AT
MATURITY

LIFE 10 25 18 65 75
OPTIONS

LIFE AND 10 25 18 55 65
HEALTH
OPTIONS

:

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ACCESSING YOUR MONEY
1. ON MATURITY:
Your policy matures at the end of the policy term you have chosen and your death
and other risk ceases. You may redeem your balance units at the then prevailing
unit price and take the fund value with you.

SETTLEMENT OPTIONS: You have the option to take your fund in periodical
installment over the period, this may extend to 5 years.
2. ON DEATH:
Incase of your unfortunate demise during the policy
Term, we will:
• Pay the sum assured you had chosen to the beneficiary.
• Double benefit payment: continue to pay 100% of the original regular
premiums towards your policy as and when the premiums are due on an
annual basis.
• Triple benefit payment: continue to pay 50% of the original regular
premium towards your policy and pay the balance 50 % of the premium
to the beneficiary on annual basis.
3. ON CRITICAL ILLNESS:
• Continue to pay 100% of the original regular premium towards your policy
as and when the premium is due, on an annual basis.
on annual basis.

4. ON SURRENDER
Insurance plans are long term investments with significant tax advantages. If
you do not pay the original regular premium due in the first 3 years your life
cover will cease and the value of the units in the fund after the deduction of
the surrender charge will cease to be invested and will be held separately by
us. This amount will be paid out to you only at the end of the third year of your
policy or the end of the two year after you stop paying premiums into your
policy, whichever is later. Minimum withdrawal amount is 10000.

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CHARGES EXPLANATION

POLICY Rs.60/month
ADMINISTRATION
CHARGES
Amount depends upon your age
MORTALITY AND
OTHER RISK
BENEFIT Rs.100/ switch
CHARGE
Rs.250/ request
SWITCHING
CHARGE Depends upon fund value

PARTIAL Rs. 250
WITHDRAWAL
CHARGE
No surrender charges will be
SURRENDER levied for any policy that pays the
CHARGE original regular premium for 1st 5
yrs.
REVIVAL Rs. 250
CHARGES

CHARGES on withdrawl

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UNIT LINKED ENDOWMENT PLUS-II

The HDFC Unit Linked Endowment plus II gives:

 Valuable protection to your family in case you are not around.
 An outstanding investment opportunity by providing a choice of thoroughly
 Regular loyalty units to boost your fund value every year.
 Flexible benefit combinations and premium payment options.
 Flexible additional benefit options such as critical illness cover.

You can choose your premium and the investment funds. HDFC will then invest your
premium in your chosen funds. Incase of your unfortunate demise during the policy
term, we will pay the greater of your sum assured and your total fund value to your
family.

4 EASY STEPS TO YOUR OWN PLAN:

STEP 1 Choose the premium you wish to invest.
STEP 2 Choose the amount of protection you desire.
STEP 3 Choose the additional plan benefit you desire.
STEP 4 Choose the investment fund you desire.



Page55

preference benefits
future regular premium.
by them.



This means that the premiums you pay are subject to investment risk associated with
capital markets.
FUNDS DETAILS Asset class Risk/return


managed
fund-II Duration< 12 month 0-30%

Duration between 18 to 0-20%
24 month.

managed Higher potential return
fund-II than liquid fund

Defensiv Access to long term 0-5% 0-15% 50-85% 15-30% moderate
e returns
managed risk down.
fund-II
Page55

exposure

Equity Long term return 0-5% 0-10% 0-40% 60-100% Very high
managed Little stability
fund-II

Growth Maximize return 0-5% ----- ---- 95-100% Very high
fund-II 100%investment in

Page55

1. ON MATURITY:
installment over the period; this may extend to 5 years.
2. ON DEATH:
In case of your unfortunate demise during the policy
Term, we will:
annual basis.
on annual basis.

5. ON SURRENDER
Page55

CHARGES on with drawl

Page55

CHARGES EXPLANATION

POLICY Rs.60/month
ADMINISTRATION
CHARGES
MORTALITY AND
OTHER RISK
CHARGE
Rs.250/ request
SWITCHING

PARTIAL Rs. 250
WITHDRAWAL
CHARGE
yrs.
REVIVAL Rs. 250
CHARGES

HDFC SIMPLILIFE

The HDFC Simplilife gives:

 Valuable protection to your family in case you are not around
 An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investment.
Page55

Once you have chosen your premium and investment funds, HDFC will then invest
your premium in the proportion you specify. At the end of the policy term, you will
receive the accumulated value of your funds.

In case of your unfortunate demise during the policy term, we will pay the following to
your family:
• The unit fund value

• Sum assured


STEP 1: Choose the premium you wish to invest
This is the premium you will continue to pay each year of the policy. You
can pay either annually or half yearly. Your policy will have a fixed sum
assured of 5 times your chosen annualized premium.

minimum maximum
Annualized premium Rs. 20000 Rs. 100000
Sum assured Rs. 100000 Rs. 500000

STEP 2: Choose the investment fund or funds you desire.
In this plan the investment risk in your chosen investment portfolio is borne
by you. This means that the premiums you pay in this plan are subject to
investment risks associated with the capital markets. So, to balance your
level of risk and return, making the right investment choice is very important
and you are responsible for the choice you make.



managed

24 month.

Page55


e returns
managed risk down.
fund-II
exposure

fund-II


FLEXIBLE OPTIONS FOR YOUR NEEDS:

Flexible options benefits
Changing your investment decisions Switching
Premium redirections
Premium changes  You can not increase or reduce
your regular premiums at any
time.
 After 3 years of regular premium
Page55

your policy will be converted into
a paid policy.

ELIGIBILITY:

TERM PERIOD AGE AT ENTRY MAX AGE AT
MATURITY
MIN-15 YRS MIN-18 YRS 60 YRS
MAX-20 YRS MAX- 45 YRS

1. ON MATURITY:
installment over the period; this may extend to 5 years.
2. ON DEATH:
In case of your unfortunate demise during the policy
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Term, we will:
annual basis.

•Triple benefit payment: continue to pay 50% of the original regular
on annual basis.

6. ON SURRENDER

UNIT LINKED ENDOWMENT II

The HDFC Unit Linked Endowment II gives:

 Valuable protection to your family in case you are not around.
 An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investment.
Page55

 Flexible benefit combinations and premium payment options.
 Flexible additional benefit options such as critical illness cover.

4 EASY STEPS TO YOUR PLAN:
STEP 1 Choose the premium you wish to
invest.

STEP 2 Choose the amount of protection
you desire.
STEP 3 Choose the additional plan benefit
you desire.
STEP 4 Choose the investment fund or
funds you desire.




preference benefits
future regular premiums.
by them.


This means that the premiums you pay are subject to investment risk associated with
capital markets.
Page55




managed

24 month.


e returns
managed risk down.
fund-II
exposure

fund-II

Page55


1. ON MATURITY:
Page55

installment over the period, this may extend to 5 years.
2. ON DEATH:
Incase of your unfortunate demise during the policy
Term, we will:

annual basis.
on annual basis.

7. ON SURRENDER

CHARGES on with drawl
Page55

CHARGES EXPLANATION

POLICY Rs.60/month
ADMINISTRATION
CHARGES
MORTALITY AND
OTHER RISK
CHARGE
Rs.250/ request
SWITCHING

PARTIAL Rs. 250
WITHDRAWAL
CHARGE
yrs.
REVIVAL Rs. 250
CHARGES

Page55

UNIT LINKED ENDOWMENT WINNER

The HDFC Unit Linked Endowment Winner gives:

⇒ Valuable protection to your family in case you are not around.
⇒ An outstanding investment opportunity by providing a choice of
thoroughly researched and selected investments.
⇒ Bumper additions to the fund value at maturity
⇒ Access to your accumulated fund before maturity.
⇒ No need to go to for medicals.


STEP 1 Choose the premium you wish to invest
STEP 2 Choose the investment funds you
desire.
STEP 3 Fill the short medical questionnaire.

SURGICARE PLAN

The HDFC Surgicare Plan gives you:

 Valuable financial protection in case of surgical procedures.
 Increasing health cover every year.
 Lump sums benefit payment irrespective of actual medical cost.
 Flexible benefit options to choose from
 Flexible premium payment options

3 EASY STEPS TO YOUR PLAN:

STEP 1 Choose the level of health cover you
need
STEP 2 Choose the benefit option you desire
STEP 3 Work out the premium payable along
with our financial consultant. Page55

UNIT LINKED YOUNGSTAR CHAMPION

The HDFC Unit Linked Young Star Champion gives:

 Valuable protection to your child in case you are not around.
 An outstanding investment opportunity by providing a choice of thoroughly
 Bumper addition to the fund value at maturity.
 Flexible premium options
 No need to go for medicals.

In case of your unfortunate demise during the policy term, we will:

• Pay the sum assured you had chosen to the beneficiary
• Continue to pay 50% of the original regular premiums towards your policy.


STEP 2 Choose the investment funds you
desire
STEP 3 Fill the short medical questionnaire

UNIT LINKED WEALTH MAXIMISER PLUS

The HDFC Unit Linked Wealth Maximiser Plus gives:

 An outstanding investment opportunity by providing a choice of thoroughly
 One time investment at the star of the policy
 Cover till age 99 years.
 Regular loyalty units to boost your fund value every year.
 No medicals


STEP 2 Choose the level of protection you
desire.
STEP 3 Choose the investment fund you
desire.
Page55

INDUSTRY PROFILE

LIFE INSURANCE

Life insurance is a contract providing for a payment of a sum of money to the person
assured or failing him to the person entitled to receive the same on the happening of
certain event. Uncertainty of death is inherent in human life. It is this risk, which gives
rise to the necessity for some form of protection against the financial loss arising
from death. Insurance substitutes this uncertainty by certainty.
The objective of insurance is normally to provide:
A. Family protection and
B. Provision for old age.

HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN
INDIA
The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reviles the 360-degre turn witnessed

over a period of almost two centuries.

A brief history of the insurance sector
The business of life insurance in India in its existing form started in India in the
1818 with the establishment of Oriental Life Insurance Company in Calcutta. Some
of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non – insurance business.
1938: earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interest of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over
Page55

by the central government and nationalized. LIC found by an Act of
Parliament, viz. LIC Act 1956, with a capital contribution of rupees Five
Crore from the Government of India.
Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry

and recommend its future direction. The Malhotra committee setup with the

objective of complimenting the reforms initiated in the financial sector. The

reforms where aimed at “creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the

structural changes currently underway and recognizing that insurance is an

important part of the overall financial system where it was necessary to address

the need for similar reforms…”In 1994, the Committee submitted the report and

some of the key recommendations included:

i. Structure
• Government stake in the insurance companies to be brought down to
50%.
• Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.
• All the insurance company should be given greater freedom to operate.
ii. Competition
• Private companies with a minimum paid up capital of Rs. 1bn should be
allowed to enter the industry.
• No company should dealing both the life and general insurance through a
single entity.
• Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies
• Postal Life Insurance should be allowed to operate in the rural market.
• Only one State Level Life Insurance Company should be allowed to
Page55

operated in each state.

iii. Regulatory body

• The Insurance Act should be changed.
• An insurance regulatory body should be setup.

The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill

in Parliament in December 1999. The IRDA since its incorporation as statutory

body in April 2000 has fastidiously stuck to its schedule of framing regulations

and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to

the insurance sector and in particular the life insurance companies was the

launch of the IRDA’s online service for issue and renewal of license to agents.

The approval of institutions for imparting training to agents has also ensured that

the insurance companies would have trained work force of insurance agents in

place to sell their products, which are expected to be introduced by early next

year.

Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered. Page55

INDIAN INSURANCE MARKET

Insurance is an Rs 400 billion business in India, and together with banking services

adds about 7% to India’s GDP. Gross premium collection is about 2% of GDP and

has been growing by 15 to 20% per annum. India also has the highest number of life

insurance policies in force in the world, and total investable funds with the LIC are

almost 8% of GDP. Yet more than three fourth of India’s insurable population has no

life insurance or pension cover. Health insurance of any kind is negligible and other

forms of non life insurance are much below international standards.

To tap the vast insurance potential and to mobilize long term savings we need

reforms with include revitalizing and restructuring of the public sector companies,

and opening up the sector to private players. A statutory body needs to be made

to regulate

The market and promote a healthy market structure. Insurance Regulatory

Authority (IRA) is one such body, which checks on these tendencies. IRA role

comprises of following three functions:

a. Protection of consumer’s interest
b. To ensure financial soundness and solvency of the insurance industry
c. To ensure healthy growth of insurance market.
An insurance policy protects the buyer at some cost against the financial loss

arising from a specified risk. Different situations and different people require a

different mix of risk – cost combinations. Insurance companies provide these by

offering schemes of different kinds.
Page55

Unfortunately the concept of insurance is not popular in our country. As per the

latest estimates, the total premium income generated by life and general

insurance in India is estimated at around 1.95% of GDP. However India’s share

of world insurance market has shown an increase of 10% from 0.31% in 1996-97

to 0.34% in 1997-98. India’s market share in the life insurance business showed

a real growth of 11% there by outperforming global average of 7.7%. Non life

insurance business grew by 3.1% against global average of 0.20%. In India

insurance pending per capita was among the last in the world at $7.6 compared

to $7 in the previous year. Amongst the emerging economies, India is one of the

least insured countries but the potential for further growth is phenomenal, as a

significant portion of its population is in services and the life expectancy also

increased over the years.

The nationalized insurance industry has not offered consumers a variety of
products. Opening of the sector to private firms will foster competition, innovation
and variety of products. It would also generate greater awareness on the need for
buying insurance as a service and not merely for tax exemption, which is currently
done on the demand side, a strong correlation between demand for insurance and
per capita income level suggests that high economic growth can spur growth in
demand for insurance. Also there exists a strong correlation between insurance
density and social indicators such as literacy. With social development, insurance
demand will grow.
Page55

LIFE INSURANCE MARKET IN INDIA

Indian population 1 bn
GDP as on 2000 (Rs bn) 20000 bn
Gross Domestic Saving as a % of
23%
GDP
NCAER estimate of insurance
240 mn
Population
Estimated market by 2005 650 mn

India has an enormous middle class that can afford to by life, health, and
disability and pension plan products. The low level of penetration of life insurance in
India compared to other developed nations can be judge by a comparison of per
capita life premium.

C Country Life premium per capita US $
in1994
Japan 3817
UK 1280
USA 964
India 4

Clearly, there is considerable scope to raise per capita life premium is the market
is effectively tapped.
India has traditionally been a high savings oriented country – often described as

being on par with thrifty Japan. Insurance sector in the US is as big in the size as

the banking industry there. This gives us an idea of how important is the sector is.

Insurance sector canalizes the saving of the people to long-term investments. In

India where infrastructure is said to be critical importance, this sector

will bring the nations own money for the nation.
Page55

In three years time we would expect the 10% of the population to be under

some sort of an insurance cover. This assuming a premium of Rs. 5000 on an

average, 100 million Rs. 5000 = Rs. 500 bn.

This has made the sector the hottest one in India after IT. With social security
and security to the public at large being the agenda for opening the sector, the
role of the regulator becomes all the more serious and one that would be
carefully watched at every step.
The Insurance Regulator and Development bill is now an Act. With this India

in now the cynosure of all the global insurance players. Numerous player, both

Indian and foreign have announced their intention to start their insurance shops

in India. IRDA, under chairman ship of Mr. RANGACHARI, opened the window

for applying license in India.

One of the main deference between the developed economies and the

emerging economies is that insurance products are bought in the former while

these are sold in later. Focus of insurance industry is changing towards providing

a mix of both protection/risk cover and long-term investment opportunities.

Page55

Who’s going with whom?

Indian company Foreign partner
Kotak Mahindra Chubb

Tata Group AIG
Sundaram Finance Winterthur
Sanmar Group GIO of Australia
Spic Met Life
ILFS Cigna
Alpic Finance Allianz
20th Century Canada Life
Vysya Bank ING
Cholmandalan Axa
SBI Allince Capita
HDFC Standard Life
ICICI Prudential
Hindustan Times Commercial Union
IDBI Principal
Max India New York

Why life insurance?
Life Insurance cover is essential for it provides the following benefits:

• A lump sum payment to the nominees at the time of the death of the policy
holder;
• A regular payment to the nominees in the event of the death of the policy holder;
• Tax benefits, as premiums paid reduce the liability of tax;
• Relieves economic hardships in the family on the uneventful death of the sole
income holder;
• Inculcates the habit of saving.

AN OVERVIEW OF INDIAN INSURANCE INDUSTRY

Indian Insurance Industry
Page55

With a large population and untapped market, insurance happens to be a big
opportunity in India. The insurance business (measured in the context of first year
premium) grew at 47.93 per cent in 2005-06, surpassing the growth rate of 32.49
percent achieved in 2004-05. However, insurance penetration in the country

continues to be low. Insurance penetration or premium volume as a share of a
country’s GDP, for the year 2005 stood at 2.53 per cent for life insurance and 0.62
per cent for non-life insurance. The level of penetration tends to rise as income
increases, particularly in life insurance. India, with its huge middle class households,
has exhibited potential for the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors. The insurance market has witnessed dynamic changes which
includes presence of a fair number of insurers in both life and non-life segment.

Life Insurance in India
Life insurance industry recorded a premium income of Rs.105875.76 crore during
2005-06 as against Rs.82854.80 crore in the previous financial year, recording a
growth of 27.78 per cent. The contribution of first year premium, single premium and
renewal premium to the total premium was Rs.21275.75 crore (20.09 per cent);
Rs.17509.78 crore (16.54 per cent); and Rs.67090.21 crore (63.37 per cent),
respectively. In the year 2000-01, when the industry was opened up to the private
players, the life insurance premium was Rs.34,898.48 crore which constituted of
Rs.6996.95 crore of first year premium, Rs.25191.07 crore of renewal premium and
Rs.2740.45 crore of single premium.

Post opening up, single premium had declined from Rs.9, 194.07 crore in the year
2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return
policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent
growth) the year 2004-05 witnessed a significant shift with the single premium
income rising to Rs.10336.30 crore showing 74.11 per cent growth over 2003-04,
accounting for 12.74 per cent of the total premium underwritten in that year.
Page55

As against 34.62 percent in 2005-06.While the number of single premium individual
policies underwritten by the private insurance companies grew by 103 percent, the
non-single premium individual policies grew by 64 percent. The new insurers have

improved their market share from 9.33 per cent in 2005-06 to 14.25 percent in 2006-
07.

It reflects increase in their persistency ratio and enables insurers to bring down
overall cost of doing business. The renewal premium underwritten by the life
insurance industry, during 2006-07 recorded a growth of 18.46 per cent as against
20.85 per cent in 2005-06.
The private insurers and LIC reported growths of 122.56 per cent and 14.32 per cent
respectively during the year. Segregation of the first year premium reflects a definite
consolidation towards linked products with premium underwritten at Rs.16060.67
crore in 2006-07 as against Rs.8247.74 crore in 2005-06, i.e., a growth of 95 per
cent. The non-linked premium was Rs.19804.33 crore as against Rs.17069.37 crore
in 2004-05, i.e., a growth of 16 per cent. The linked and non-linked business
accounted for 44.78 and 55.22 per cent as against 32.54 and 67.46 per cent
respectively in the year 2005-06.

The Insurance Regulatory and Development Authority.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2000 has fast stuck to its schedule of framing regulations and registering the
private sector insurance companies. The other decision taken simultaneously to
Page55

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. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products which are expected to

be introduced by early next year. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations

Page55

Distribution Tie Ups of Life Insurance Companies: (up to July 07)

Fund Wise Pattern of Investments of Life insurance companies
Page55

Product mix of Life insurance companies:

Source=IRDA

Page55

INTRODUCTION TO HDFC STANDARD LIFE INSURANCE

Over view of the HDFC Standard Life Insurance
Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint
venture between Housing Development Finance Corporation Limited (HDFC
Limited), India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance companies,
offering a range of individual and group insurance solutions, in India. Being a joint
venture of top financial services groups, HDFC Standard Life has adequate financial
expertise to manage long-term investments safely and resourcefully.

HDFC Standard Life Insurance offers a range of individual and group solutions,
which can be easily personalized to specific needs. Its group solutions have been
planned to offer complete flexibility, together with a low charging structure. As on 31
December, 2008, the Company's new business premium income stood at Rs.
1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a
comprehensive list of policies and products on offer by HDFC Standard Life
Insurance:

Protection Plans

• HDFC Term Assurance Plan
• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan

Children's Plans

• HDFC Children's Plan
• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked Young Star Champion
Retirement Plans
• HDFC Personal Pension Plan
• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity
Page55

Savings & Investment Plans
• HDFC Unit Linked Endowment Plus II
• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maximiser Plus
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan
Health Plans
• HDFC Critical Care Plan
• HDFC SurgiCare Plan
Group Plans
• Group Term Insurance Plan
• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment

Page55

INTRODUCTION OF HDFC SLIC

Introduction

HDFC Standard Life Insurance Company Limited. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by others.

Our Key Strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard
Life has the financial expertise required to manage your long-term
investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily
customized to specific needs. Our group solutions have been designed
to offer you complete flexibility combined with a low charging structure.

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood
at Rs. 5,564.69 crores. The company has covered over 8, 33,070
lives as on March 31, 2009.

HDFC Standard Life believes that establishing 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 and well trained sales force,
and setting up appropriate systems and processes with optimum use
of technology. As all these areas form the basic infrastructure for
establishing the highest possible customer service standards.
Page55

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 the 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:

Strong promoter:

HDFC Standard Life is a strong, financially secure business supported by
two strong and secure promoters – HDFC Ltd and Standard Life. HDFC
Ltd’s excellent brand strength emerges from its unrelenting focus on
corporate governance, high standards of ethics and clarity of vision.
Standard Life is a strong, financially secure business and a market leader in
the UK Life & Pensions sector.
1. PREFFERED AND TRUSTED BRAND

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 self-respect instead of ‘death’ to
convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one
of the few brands that customers recognize, like and prefer to do
business. Moreover, our brand thought, SAR Utha Ke Jiyo, is the most
recalled campaign in its category.

2. INVESTMENT POLICY

We follow a conservative investment management philosophy to
ensure that our customer’s money is looked after well. The investment
policies and actions are regularly monitored by a formal Investment
Committee comprising non-executive directors and the Principal
Officer & Executive Director.

As a life insurance company, we understand that customers 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.
Page55

3. NEED BASED SELLING APPROACH

Despite the criticality of life insurance, sales in the industry have been
characterized by over 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.

4. RISK CONTROL FRAMEWORK

HDFC Standard Life has fully implemented a risk control framework to
ensure that all types of risks (not just financial) are identified and
measured. These are regularly reported to the board and this ensures
that the company management and board members are fully aware of
any risks and the actions taken to ensure they are mitigated.

5. FOCUS ON TRAINING

Training is an integral part of our business strategy. Almost all
employees have undergone training to enhance their technical skills
or the softer behavioral skills to be able to deliver the service
standards that our company has set for itself. Besides the mandatory
training that Financial Consultants have to undergo prior to being
licensed, we have developed and implemented various training
modules covering various aspects including product knowledge,
selling skills, objection handling skills and so on.

6. FOCUS ON LONG TERM VALUE

HDFC Standard Life does not focus in the business of ramping up the
topline only, but to create maximisation of stakeholder's value. Today,
we are extremely satisfied with the base that we have created for the
long-term success of this company.

7. TRANSPARENT DEALING

We are one of the few companies whose product details, pricing,
clauses are clearly communicated to help customers take the right
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decision.

8. STRICT COMPLIANCE WITH REGULATIONS

We have initiated and implemented many new processes, some of
which were found useful by the IRDA and later made mandatory for
the entire industry. The agents who successfully completed this
training only, were authorized by the company to sell ULIPs. This has
now been made compulsory by IRDA for all insurance companies
under the new Unit Linked Guidelines.

DIVERSIFIED PRODUCT PORTFOLIO

HDFC Standard Life’s wide and diversified product portfolio help individuals
meet their various needs, be it:

• Protection: Need for a sound income protection in case of your
unfortunate demise

• Investment: Need to ensure long-term real growth of your money

• Savings: Save for the milestones and protect your savings too

• Pension: Need to save for a comfortable life post retirement

• Health: Cover for health related exigencies

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PROFILE OF THE ORGANISATION

Name of the company: HDFC Standard Life Insurance
Address of Head office:

City : Dharamshala Pin Code: 176215
State : Himachal Pradesh
Status : Private
Telephone number : 1892222913
STD Code : 1800-227/6000 9191 Fax no :
Email : life@hdfcinsurance.com
Website : www.hdfcinsurance.com
Chief executive
Contact person (H.R Manager/ Personnel manager)
Mobile no
Company’s year of establishment: 14th August, 2000
Company’s product range/ services/business area
1. Products
Protection Plans

• HDFC Term Assurance Plan
• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan

Children's Plans

• HDFC Children's Plan
• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked Young Star Champion
Retirement Plans
• HDFC Personal Pension Plan
• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity
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Savings & Investment Plans
• HDFC Unit Linked Endowment Plus II
• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maximiser Plus
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan
Health Plans
• HDFC Critical Care Plan
• HDFC SurgiCare Plan
Group Plans
• Group Term Insurance Plan
• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment

Name of Related Party/ Nature of Relationship:
• HDFC Limited Holding Company
• Standard Life Assurance Company Investing Party
• Standard Life (Mauritius Holdings) 2006 Limited Investing Party
• HDFC Asset Management Company Limited Fellow Subsidiary
• HDFC Developers Limited Fellow Subsidiary
• HDFC Holdings Limited Fellow Subsidiary
• HDFC Trustee Company Limited Fellow Subsidiary
• HDFC Realty Limited Fellow Subsidiary
• HDFC Investments Limited Fellow Subsidiary
• HDFC ERGO General Insurance Company Limited Fellow Subsidiary
• HDFC Sales Private Limited Fellow Subsidiary
• HDFC Venture Capital Limited Fellow Subsidiary
• HDFC Ventures Trustee Company Limited Fellow Subsidiary
• HDFC Property Ventures Limited
Annual turnover
Number of employees
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Date
Signature
Course
Branch
Semester
Roll No

COMPANY’S HISTORY

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a
joint venture between Housing Development Finance Corporation Limited (HDFC
Limited) - India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance companies,
offering a range of individual and group insurance solutions, in India. Being a joint
venture of top financial services groups, HDFC Standard Life has adequate financial
expertise to manage long-term investments safely and resourcefully.

HDFC Standard Life Insurance offers a range of individual and group solutions,
which can be easily personalized to specific needs. Its group solutions have been
planned to offer complete flexibility, together with a low charging structure.

As on 31 December, 2008, the Company's new business premium income
stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far.
HDFC Standard Life Insurance Company Limited. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by others.

Page55

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