1.

1 HISTORY OF INSURANCE
Historians believe that insurance first developed in Sumer and Babylonia. The me
rchants & traders of these societies transferred & pooled their money to protect
themselves from pirates. In the 18th century BC, Babylonian king Hammurabi deve
loped a code of law known as the code of specific rules governing the practices
of early risk-sharing activities.
Insurance developed during the 1700’s in the North American colonies. In 1730, Ben
jamin Frank contributed for the Insurance of Houses from Loss by fire. The compa
ny collected contributions & this money went into an investment fund. Interest o
n this fund went towards paying claims dividends to those who contributed money.
The Industrial Revolution in the US, in the early & mid 1800’s prompted dramatic g
roup. During this time, many companies were establishes to sell life insurance p
olicies & annuities. Several shared profits among policyholders, also developed
. In addition, some life insurance companies charged premiums according to age o
f people & health.
WHAT IS INSURANCE?
Insurance is a legal contract that protects people from the financial costs that
result from loss of life, loss of health, lawsuits, or property damage. Insuran
ce provides a means for individuals & society to cope up with some of the risks
faced in every body.

1.2 NEED FOR INSURANCE

Risk is a situation in which some of loss is possible.
The loss might be:
• Financial, such as to secure your children’s future you take a protection plan.
• Physical, such as an injury or a death.
• Material, such as a wrecked car, a burned house, or a stolen diamond etc.
Risk is a part of life. The uncertainty surrounding potential losses is known as
Risk. Insurance offers a way for people, thereby, reducing the risks faced by a
group. People pay to buy insurance coverage (protection from risk). In exchange
, all policyholders (people any who own insurance policies) receive a promise th
at the group of policyholders as represented by the insurance organization will
pay when any policyholder experience kind of loss.
Insurance is device, which guarantees an individual against loss. Against that l
oss reimbursement is made from a fund to which many individuals exposed to the s
ame risk have contributed certain specified amounts, called Premiums. Payment fo
r an individual loss, dividend among many, does not fall heavily on the actual l
oser. The essence of the contract of insurance, called a policy, is mutuality.
The entity whose risk is transferred – which may be an individual or association o
f any type, including a government or government agency – is called the “insured”. The
entity that accepts the risk is called the “insurer” and the agreement between the
two by which the risk is transferred is called the “policy”. This is a legal contrac
t that sets out exactly the terms and conditions of the coverage. The fee paid b
y the insured to the insurer for assuming the risk is called the “premium”. This is
usually determined by the insurer to fund estimated future claims paid, administ
rative costs, and profit.
Let us take an example by assuming that a couple buys a home costing Rs. 100,000
. Knowing that the loss if their home would bring them financial ruin, they acqu
ire insurance coverage in the form of a homeowner’s policy. That policy will pay t
hem the cost of replacing or repairing their home in the event of a catastrophe.
The insurance company charges them a premium of Rs. 1,000 a year. Risk of loss
has been transferred from the homeowners to the insurance company.
The major operations of an insurance company are undertaking, the determination
of which risks the insurer can take on: and rate making, the decisions regarding
necessary prices for such risks.
The underwriter is responsible for guarding against adverse selection, wherein t
here is excessive coverage of high-risk candidates in proportion to the coverage
of low risk candidates. In preventing adverse selection, the underwriter must c
onsider physical, psychological, and moral hazards in relation to applicants. Ph
ysical hazards include those dangers, which surround the individual or property,
jeopardizing the well being of the insured. The amount of the premium is determ
ined by the operation of the law of averages as calculated by actuaries. By inve
sting premium payments in a wide range of revenue-producing projects, insurance
companies have become major suppliers of capital, and they rank among the nation’s
largest institutional investors.

1.3 IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by m
any people. But it also serves many other important economic & societal function
s. Insurance provides the capital that communicates need to quickly rebuild & re
cover economically from natural disasters.
Insurance itself has become a significant economic force in most of the industri
alized countries. Businessmen buy insurance to cover their employees against wor
k related injuries & health problems. They also insure their assets against any
kind of wear and tear by natural forces & forcibly.
Insurance companies perform a type of monetary redistribution – they collect premi
ums & eventually redistribute that money as payments. Depending on the type of i
nsurance, redistribution can take place anywhere from a month to many decades. B
ecause of this delay between collecting & paying out funds, insurance companies
invest their funds to bring extra revenue. Such investment help business & gover
nment finance their operations, & few profits from these investments support the
operation of insurance companies. With these investment earnings, insurance com
panies can keep rates much lower than would otherwise be possible.

1.4 TYPES OF INSURANCE

Insurance can be divided into three categories:
• Life insurance
• General insurance
• Health insurance
Life insurance is a contract for payment of a sum of money to the person assured
(or failing him/her, to the person entitled to receive the same) on the happeni
ng of the event insured against. Usually the contract provides for the payment o
f an amount on the date of maturity or at specified intervals or at unfortunate
death. The contract also provides for payment of premium periodically to the cor
poration by the assured.
General insurance include many areas of insurance like marine, motor, engineerin
g, health, fire, etc. the contract provides for the payment of an amount on the
happening of some contingency. These types of contract are annual in nature.
THE GLOBAL INSURANCE INDUSTRY
The insurance industry forms an integral part of the global financial market, wi
th insurance companies being significant institutional investors. In recent deca
des, the insurance sector, like other financial services, has grown in economic
importance. This is through direct contributions to Gross Domestic Product (GDP)
via increased levels of employment within the sector; and indirectly through hi
gher levels of risk transfer and financial intermediation.
1.5 INSURANCE SECTOR REFORMS
Prior to liberalization of Insurance industry, Life insurance was monopoly of LI
C.
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor
R.N. Malhotra- was formed to evaluate the Indian insurance industry and recomme
nd its future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were a
imed 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 fin
ancial 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 in
cluded:
Structure
Government stake in the insurance Companies to be brought down to 50%. Governmen
t should take over the holdings of GIC and its subsidiaries so that these subsid
iaries can act as independent corporations.
Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be allow
ed to enter the sector. No Company should deal in both Life and General Insuranc
e through a single entity. Foreign companies may be allowed to enter the industr
y in collaboration with the domestic companies.
Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should be set
up. Controller of Insurance- a part of the Finance Ministry- should be made inde
pendent
Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced fr
om 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any comp
any (there current holdings to be brought down to this level over a period of ti
me)
Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companie
s must be encouraged to set up unit linked pension plans. Computerization of ope
rations and updating of technology is to be carried out in the insurance industr
y.
1.6 THE INSURANCE SECTOR IN INDIA
Prior to 1999 there were only two players in the market:
• Life Insurance Corporation of India (LIC)
• General Insurance Corporation (GIC)
Then to protect the interests of the policyholders, to regulate, promote and ens
ure orderly growth of the insurance industry, IRDA was set up. After this the pr
ivate players started entering the market.
By any yardstick, India, with about 200 million middle class households, present
s a huge untapped potential for players in the insurance industry. Saturation of
markets in many developed economies has made the Indian market even more attrac
tive for global insurance majors with the per capita income in India expected to
grow at over 6% for the next 10 years and with improvement in awareness levels,
the demand for insurance is expected to grow at an attractive rat in India. an
independent consulting company, The Monitor Group has estimated that the life in
surance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008
(a compounded annual growth of 16.5%)

-+REGULATORY BODY: THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

Insurance is a federal subject in India. The primary legislation that deals with
insurance business in India is: Insurance Act, 1938, and Insurance Regulatory &
Development Authority Act, 1999.
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 fastidiously stuck to its schedule of framing regulation
s and registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch
of the IRDA’s online service for issue and renewal of licenses to agents. Since be
ing set up as an independent statutory body the IRDA has put in a framework of g
lobally compatible regulations.
MISSION-IRDA
“To protect the interests of the policyholders, to regulate, promote and ensure or
derly growth of the insurance industry and for matters connected therewith or in
cidental thereto.”

1.7 MILESTONES OF INSURANCE REGULATIONS IN THE 20TH CENTURY

Year Significant Regulatory Event
1912 The Indian Life Insurance Company Act
1928 Indian Insurance Companies Act
1938 The Insurance Act: Comprehensive Act to regulate insurance business in I
ndia
1956 Nationalization of life insurance business in India with a monopoly awar
ded to the Life Insurance Corporation of India
1972 Nationalization of general insurance business in India with the formatio
n of a holding company General Insurance Corporation
1993 Setting up of Malhotra Committee
1994 Recommendations of Malhotra Committee published
1995 Setting up of Mukherjee Committee
1996 Setting up of (interim) Insurance Regulatory Authority (IRA) Recommendat
ions of the IRA
1997 Mukherjee Committee Report submitted but not made public
1997 The Government gives greater autonomy to Life Insurance Corporation, Gen
eral Insurance Corporation and its subsidiaries with regard to the restructuring
of boards and flexibility in investment norms aimed at channeling funds to the
infrastructure sector
1998 The cabinet decides to allow 40% foreign equity in private insurance com
panies-26% to foreign companies and 14% to Non-resident Indians and Foreign Inst
itutional Investors
1999 The Standing Committee headed by Murali Deora decides that foreign equit
y in private insurance should be limited to 26%. The IRA bill is renamed the Ins
urance Regulatory and Development Authority Bill
1999 Cabinet clears Insurance Regulatory and Development Authority Bill
2000 President gives Assent to the Insurance Regulatory and Development Autho
rity Bill

1.8 LIST OF INSURANCE COMPANIES IN PRIVATE SECTOR

S.No. Date of Reg. Name of the Company
1 14.08.2000 HDFC Standard Life Insurance Company Ltd.
2 15.11.2000 Max New York Life Insurance Company Ltd.
3 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 10.01.2001 OM Kotak Mahindra Life Insurance Company Ltd.
5 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 30.03.2001 SBI Life Insurance Company Ltd .
8 02.08.2001 ING Vysya Life Insurance Company Private Ltd
9 03.08.2001 Allianz Bajaj Life Insurance Company Ltd.
10 06.08.2001 Metlife India Insurance Company Pvt. Ltd.
11 03.01.2002 AMP SANMAR Assurance Company Ltd.
12 14.05.2002 Aviva Life Insurance Company India Pvt. Ltd.
13 06.02.2004 Sahara India Insurance Company Ltd.

2.1 INTRODUCTION TO THE ORGANIZATION

HDFC Standard Life Insurance Company Limited is one of India s leading private I
nsurance companies, which offers a range of individual and group insurance solut
ions. It is a joint venture between Housing Development Finance Corporation Limi
ted (HDFC Limited), India s leading housing finance institution and a Group Comp
any 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.
JOINT VENTURE
HDFC Limited
HDFC was incorporated in 1977 with the primary objective of meeting a social nee
d - that of promoting home ownership by providing long-term finance to household
s for their housing needs. HDFC was promoted with an initial share capital of Rs
. 100 million.
HDFC Limited, India’s premier housing finance institution has assisted more than 3
.3 million families own a home, since its inception in 1977 across 2400 cities a
nd towns through its network of over 250 offices. It has international offices i
n Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Ku
wait and Oman to assist NRI’s and PIO’s to own a home back in India. As of December
2008, the total asset size has crossed more than Rs. 95,000 crores including the
mortgage loan assets of more than Rs. 82,800 crores. The corporation has a depo
sit base of Rs. 17,551 crores, earning the trust of more than 9, 00,000 deposito
rs. Customer Service and satisfaction has been the mainstay of the organization.
HDFC has set benchmarks for the Indian housing finance industry. Recognition fo
r the service to the sector has come from several national and international ent
ities including the World Bank that has lauded HDFC as a model housing finance c
ompany for the developing countries. HDFC has undertaken a lot of consultancies
abroad assisting different countries including Egypt, Maldives, and Bangladesh i
n the setting up of housing finance companies.
Standard Life Group
The Standard Life Assurance Company ("Standard Life") was established in 1825 an
d the first Standard Life Assurance Company Act was passed by Parliament in 1832
. Standard Life was reincorporated as a mutual assurance company in 1925.The Sta
ndard Life group originally operated only through branches or agencies of the mu
tual company in the United Kingdom and certain other countries. Its Canadian bra
nch was founded in 1833 and its Irish operations in 1838. In the 1990s, the grou
p also sought to diversify its operations into areas which complemented its core
life assurance and pensions business, with the intention of positioning itself
as a broad range financial services provider.
The Standard Life Group has been looking after the financial needs of customers
for over 180 years. It currently has a customer base of around 7 million people
who rely on the company for their insurance, pension, investment, banking and he
alth-care needs. Its investment manager currently administers £125 billion in asse
ts. It is a leading pensions provider in the UK, and is rated by Standard & Poor
s as strong with a rating of A+ and as good with a rating of A1 by Moody s.
Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006 at
the Money Marketing Awards, and it was voted a 5 star life and pension’s provider
at the Financial Adviser Service Awards for the last 10 years running. The 5 S
tar accolade has also been awarded to Standard Life Investments for the last 10
years, and to Standard Life Bank since its inception in 1998. Standard Life Ban
k was awarded the Best Flexible Mortgage Lender at the Mortgage Magazine Award
s in 2006.

HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is
a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture par
tners being one of the leaders in their respective areas came together in
this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limite
d. Mr. Deepak Satwalekar is the MD and CEO of the venture.HDFC Standard Life bri
ngs to you a whole range of insurance Solutions be it group or individual or NAV
services for Corporations, they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by M
arch 2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Stan
dard Life Insurance Corporation is sure to become one of the leaders and the fir
st preference for any life insurance customer.

ASSOCIATE COMPANIES
HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

Other Companies
• HDFC Trustee Company Ltd.
• GRUH Finance Ltd.
• HDFC Developers Ltd.
• HDFC Property Ventures Ltd.
• HDFC Ventures Trustee Company Ltd.
• HDFC Investments Ltd.
• HDFC Holdings Ltd.
• Credit Information Bureau (India) Ltd
• HDFC Securities
BANK ASSURANCE PARTNERS
HDFC Bank
Saraswat Bank
Indian Bank
Bank of Baroda
\
COMPANY’S VISION & VALUES
Our Vision
The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for mo
ney, and set the standards in the industry .
The most obvious choice for all .
Our Values
Values that we observe while we work:
• Integrity
• Innovation
• Customer centric
• People Care “One for all and all for one”
• Team work
• Joy and Simplicity

PROFILE OF THE BOARD OF DIRECTORS

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and
Director of Housing Development Finance Corporation Limited (HDFC Limited). He
joined HDFC Limited in a senior management position in 1978. He was inducted as
a whole-time director of HDFC Limited in 1985 and was appointed as its Chairman
in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (Engla
nd & Wales).

Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 200
0. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited
. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He wa
s appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Inst
itute of Chartered Accountants of India and a member of the Michigan Association
of Certified Public Accountants.
Mr. David Nish joined Standard Life on 1 November 2006 as Group Finance Director
and remained in that position until December 2009. He is appointed as the Execu
tive Europe on 1st January 2010. He was awarded the Scottish Business Awards Fin
ance Director of the Year and from 2004 to 2005. He is a member of the Institute
of Chartered Accountants of Scotland. He joined the Board of Directors in Febru
ary 2010.

Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standar
d Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manag
er, responsible for all UK net funds. He was appointed a Director of the Standar
d Life Investments’ board. He is a Mathematics graduate from Oxford University and
the Member of the Securities Institute. He joined the Board of Directors in Dec
ember 2009.
Controls and Strategy HSBS Securities and Managing Director International Equiti
es. He was also responsible for Economic and Investment Strategy research produc
ed on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 20
05.
Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of Ind
ia Limited. Mr. Ravi Narain was a member of the core team to set-up the Securiti
es & Exchange Board of India (SEBI) and is also associated with various committe
es of SEBI and the Reserve Bank of India (RBI).
MANAGEMENT TEAM
Mr. Amitabh Chaudhry, Managing Director and Chief Executive Officer
Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDF
C Standard Life.
Before joining HDFC Standard Life in January 2010, he was the Managing Director
and CEO of Infosys BPO and was also heading an Independent Validation Services u
nit in Infosys Technologies. Mr. Chaudhry started his career with Bank of Americ
a delivering diverse roles ranging from Head of Technology Investment Banking fo
r Asia, Regional Finance Head for Wholesale Banking and Global Markets and Chief
Finance Officer of Bank of America (India). He moved to Credit Lyonnais Securit
ies in 2001 in Singapore where he headed their investment banking franchise for
South East Asia and structured finance practice for Asia before joining Infosys
BPO in 2005.
Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technolog
y and Science, Pilani and MBA in 1987 from IIM, Ahmedabad.
Mr. Paresh Parasnis, Executive Director and Chief Operating Officer
Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDF
C Standard Life.
A fellow of the Institute of Chartered Accountants of India, he has been associa
ted with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, h
e 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, driving sales and servicing strategy, leading recruitm
ent, contributing to product launches and performance management system, oversee
ing new business and claims settlement, customer interactions etc.

Ms. Vibha Padalkar, Chief Financial Officer

Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life.
Ms. Padalkar joined HDFC Standard Life in August 2008 after a seven year stint a
s Executive Vice President-Finance at WNS Global Services, a NYSE listed leading
global business process outsourcing company. Vibha’s key achievement during her t
enure at WNS was to lead a team that successfully completed the Group’s IPO on the
New York Stock Exchange in a short span of six months. Prior to WNS, Vibha was
with Colgate Palmolive India for 7 years, including a short posting to the Group
s New York headquarters.
Ms.Padalkar became a member of the Institute of Chartered Accountants in England
and Wales in 1992, after having completed the last part of her schooling as wel
l as college education in London.
AWARDS & ACCOLADES
Best Companies to Work for in India in 2010
HDFC Standard Life has been adjudged one of the Best Companies to Work for in In
dia in 2010. The company participated in the Great Places to Work® study for the f
irst time and ranked first in the insurance category. It ranked 34th on the Top
50 Best Companies to Work for, in India 2010 list. The company was also awarded
for its unique employee initiative - Mission –in-Genius national quiz. The study h
as shown that HDFC Standard Life conscientiously develops employee talent progra
mmes to keep engaging and motivating its employees. The company provides some un
ique platforms such as Mission in Genius national quiz. The management is acce
ssible to all at all times and sincerely seeks feedback from its employees throu
gh programmes such as Sparsh , the study said.
The Best Companies to Work in India is a study conducted by the Great Place to W
ork® Institute, India in partnership with The Economic Times. The 2010 edition is
the seventh study in India, which received overwhelming response from more than
400 companies, making it the largest such study in India. And only 50 companies
made it to the Best Companies to Work list!
YoungStar Super Voted Product of the Year 2010
HDFC Standard Life’s YoungStar Super has been voted ‘Product of the Year 2010’ in the
 Insurance category by more than 30,000 consumers nationwide across 36 markets.
YoungStar Super is an unit linked Children Plan with unique benefits such as bu
mper additions, double and triple benefits, attractive allocations rates, and se
ven different funds.
The consumer study on product innovation in India was conducted by A C Nielsen,
the leading global research firm. Entries were accepted from products that demon
strate innovation in their product function, design, packaging or process or any
other specified form. Entries were then filtered by a jury of distinguished ind
ustry professionals to ensure that the products meet the innovation criteria bef
ore they were passed on to the consumer votes/survey round. Product of the Year
is an Internationally Recognised Standard that celebrates and rewards the best i
nnovations in consumer products and services.

Received Diamond EDGE Award 2009

HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workf
orce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellenc
e (using IT) is an initiative by the ,Network Computing magazine to identify, re
cognise, and honour end-user companies in India that have demonstrated the best
use of technology to solve a business problem, improve business competitiveness,
and deliver quantifiable ROI to stakeholders.
Network Computing magazine is part of CMP Technology, which brings more than 100
IT media brands to more than 18 million technology and business decision makers
worldwide.
Unit Linked Savings Plan Tops Mint Best TV Ads Survey
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the lea
ding private insurance companies in India, has topped Mint’s Top Television Advert
isement survey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savi
ngs Plan advertisement was ranked 4th in terms of a combined score of ad awarene
ss and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoy
ment, believability, and claim). The respondents were between 18 and 40 years. M
int’s exclusive report, ‘New voices in a makeover’ outlines the survey in detail
Received PCQuest Best IT Implementation Award 2008

HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Co
nsultant Corner, the applications for its financial consultants, providing centr
alized control over a vast geographical spread for key business units such as in
ventory, training, licensing, etc. Read more about the ‘Consultant Corner’ tool in t
he ‘HDFCSL s in News’ Section.
HDFC Standard Life has won the PCQuest Best IT Implementation Award for two year
s consequently. Last year, the company received the award for Wonders, its path-
breaking implementation of an enterprise-wide workflow system.
INSURANCE PLANS OF THE COMPANY
• Young and single
Savings
Endowment Assurance
Money Back
Unit linked Enhanced Life Protection
Simplilife
Health
Surgicare
Critical care
• Just Married
 Savings
Joint life plans
Unit linked Endowment
Simplilife
Protection
Term Assurance
Loan cover term
• Married With Children
Savings
Children’s Plan
Unit Linked Young Star
Investments
Single Premium Whole Life
Wealth Maximizer
Pension
Pension Plans
• Nearing Retirement
Investments
Single Premium Whole Life
Wealth Maximizer
Health
Surgicare
Critical Care
Pension
Immediate Annuity

ORGANISATIONAL STRUCTURE
CEO
↓
CHAIRMAN
↓
MANAGING DIRECTOR (MD)
↓
COUNTRY HEAD
↓
ZONAL MANAGER (ZM)
↓
REGIONAL MANGER (RM)
↓
TERRITORY MANAGER (TM)
↓
BRANCH SALES MANGER (BSM)
↓
BUSINESS DEVELOPMENT MANAGER (BDM)
↓
SALES DEVELOPMENT MANGER (SDM)
↓
FINANCIAL CONSULTANT (FC)
2.2 PROBLEM OF THE ORGANISATION
1. Strong competitors like LIC & ICICI prudential impose a great threat to
HDFC SLIC.
2. It has to compete with wide range of products that its competitors offe
r.
3. It has to focus towards rural segment also which has a great scope of g
rowth.
 4. It has to decide on the strategies to be adopted which will help to cou
nter competition.
5. Infrastructure cost is high.
6. It has to increase its numbers of branches and also enhance its network
of agents so that it can compete with its major competitor.
7. It has to focus on providing effective training to its agents so that t
he costomer base can be increased and moreover customer satisfaction can be insu
red
2.3 SWOT ANALYSIS OF THE ORGANISATION
STRENGTHS
1. The company HDFC SLIC is best known for its pension plan.
2. Company has made a brand image through the advertisement “sar utha ke jiyo”.
3. Since 2000, company has been successful in making a strong customer base
.
4. Company had been giving good returns to the customers.
WEAKNESSES
1. The company does not have much flexible plans for the lower segment of t
he society.
2. Apart from pension plan company has got many other beneficial plans like
children plan etc of which people are not aware, therefore there should be an e
ffort to make an exposure of the plans to the people.
3. Company should focus more on corporate selling apart from direct selling
.
OPPORTUNITIES
1. As a result of increasing awareness of the people regarding secure inves
tments, life insurance is the best option which gives the benefit of insurance &
investment.
2. Lower segment is an opportunity for the company.
3. Life insurance is an effective way of saving taxes. All HDFC SLIC insura
nce plans are eligible for tax rebates Under Sec. 88 of Income Tax Act, 1961.
THREATS
1. Entrance of various new players in the sector.
2. Existence of various major brands in private sector in insurance.
3. LIC still holding 64% of the market share gives a cut through competitio
n.

2.4 COMPETITORS INFORMATION

Name of the Company Market Share (%)
LIC 64
SBI Life Insurance 8.93
ICICI Prudential 8.46
Bajaj Allianz 6.98
Reliance Life Insurance 2.96
HDFC SLIC 2.88
Birla Sun Life 2.11
Max New York Life 1.75
Kotak Life Insurance 1.19
Aviva Life Insurance 0.83
LIFE INSURANCE CORPORATION OF INDIA (LIC)
LIC has excellent money back policy WHICH provides payments for periodic payment
s of partial survival benefits as long as the policy holder is alive 20% of the
sum assured is payable after 5, 10, 15, 20 years and the balance 40% is payable
at the 20th year along with accrued bonus.
For a 25 year term, 15% of the sum assured become payable after 5, 10, 15, 20, y
ear and the balance 40% plus the accrued bonus becomes payable at 25th year. An
important feature of these types of policies is that in the event of the death o
f the policy holder at any time within the policy term the death claim comprises
of full sum assured without deducting any of the survival benefit amount which
have already been paid. The bonus is also calculated on the full sum assured.
HDFC standard life insurance does not have a money back policy. It could offer a
money back plan and capture sum portion of this market. While marketing insuran
ce products found that many customer wanted to purchase these plans.
LIC offers 66 different plans, plans are formulated for specific occasions – whole
life
Plans, term assurance plan, many back plans for women, child plans, plans for hi
gh worth individuals, pension plans, unit linked plan, special plan, social secu
rity schemes- diversified portfolio of product. HDFC standard life insurance cou
ld diversify its product portfolio. It could add more plans for high worth indiv
idual and women.
ICICI PRUDENTIAL
ICICI prudential is a stiff competitor for HDFC SDIL. The company is a merger be
tween ICICI bank which is the biggest private bank in India and prudential PLC w
hich is a global life insurance company.
The company has an investment plan, which is market related – Invest Shield life.
In this plan even if the market falls, the premium will be returned to investor.
It’s guaranteed plans, which ensure the company carefully invests your money. The
stock market performance or ICICI prudential is much better than HDFC SDIL. The
returns on the growth fund were 46.28% compared to the 42.70% offered by HDFC S
DIL. Customer are attracted by higher returns and this a plus point for prudenti
al.
The company is very well advertised. The advertisements are showcased in movies,
television, newspaper, magazine, billboards, radio etc. The company builds trus
t and faith in the minds of our people.
However the charges are very high in the plans offered by ICICI PRUDENTIAL. it i
s 35% during the first year, 15% in the next year and 3% from the third year onw
ards. Also a higher minimum premium of Rs. 8000 is charged. Hence the policies a
re not accessible to the lower strata of the society.
BIRLA SUN LIFE
Birla sun life insurance company limited is a joint venture between The Aditya B
irla Group, one of the largest business houses in India and sun life financial I
nc, a leading international financial services organization. The local knowledge
of the Aditya Birla group combined with the expertise of sun life financial Inc
, offers a formidable protection for your future.
The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market ca
pitalization of Rs. 53400 crores (as on 31st march 2007). It has over 72000 empl
oyees across all its units’ world wide. It us led by its chairman – Mr. Kumar Mangal
am birla some of its key organization within the group are Hindalco and Grasim.
Sun life financial and its partner today have operation in key markets worldwide
, including Canada, the United Kingdom, Hong Kong, the Philippines, Japan, Indon
esia, India, China and Bermuda. It had assets under management of over US$ billi
on, as on 31st march 2007, the company is a leading player in ty\he life insuran
ce market in Canada.
BAJAJ ALIIANZ
Bajaj Allianz is a joint venture between Allianz AG with 110 years of experience
in over 70 countries and Bajaj Auto, a trusted auto onus manufacturer for over
55 year in the Indian market. Together they are committed to offering you financ
ial solutions that provide all the security you need for your family and yoursel
f. Bajaj Allianz is the number one private life insurer for the year 2005 – 2006.
it is leading by 78 crores. It has experienced a whopping growth of 216% in the
last financial year.
The company has 1300000 policies and is backed by 550 offices across India. It o
ffers travel insurance, motor insurance, home insurance, health and corporate in
surance. The mortality charges are lower than HDFC SLIC. The entry age could be
zero years whish allow even new born babies to insured.

COMPARITIVE ANALYSIS OF HDFC SLIC AND IDBI FEDERAL

COMPANY PROFILE : IDBI FEDERAL LIFE INSURANCE COMPANY
About IDBI Federal Life Insurance
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premie
r development and commercial bank, Federal Bank, one of India’s leading private se
ctor banks and Ageas Insurance International, a multinational insurance giant ba
sed out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank
and Ageas own 26% equity each. At IDBI Federal, we endeavor to deliver products
that provide value and convenience to the customer. Through a continuous proces
s of innovation in product and service delivery we intend to deliver world-class
wealth management, protection and retirement solutions to Indian customers. Hav
ing started in March 2008, in just five months of inception we became one of the
fastest growing new insurance companies to garner Rs 100 Cr in premiums. The co
mpany offers its services through a vast nationwide network across the branches
of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and
partners. As on June 30th 2010, the company has issued over 2 lakh policies with
a sum assured of over Rs 9,160 Cr.
Sponsors of IDBI Federal Life Insurance Co Ltd
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial de
velopment bank. Created in 1956 to support India’s industrial backbone, IDBI Bank
has since evolved into a powerhouse of industrial and retail finance. Today, it
is amongst India’s foremost commercial banks, with a wide range of innovative prod
ucts and services, serving retail and corporate customers in all corners of the
country from 725 branches and 1228 ATMs. The Bank offers its customers an extens
ive range of diversified services including project financing, term lending, wor
king capital facilities, lease finance, venture capital, loan syndication, corpo
rate advisory services and legal and technical advisory services to its corporat
e clients as well as mortgages and personal loans to its retail clients. As part
of its development activities, IDBI Bank has been instrumental in sponsoring th
e development of key institutions involved in India’s financial sector – such as the
Securities and Exchange Board of India (SEBI), National Stock Exchange of India
Limited (NSE) and National Securities Depository Ltd.
Federal Bank is one of India’s leading private sector banks, with a dominant prese
nce in the state of Kerala. It has a strong network of over 708 branches and 755
ATMs spread across India. The bank provides over four million retail customers
with a wide variety of financial products. Federal Bank is one of the first larg
e Indian banks to have an entirely automated and interconnected branch network.
In addition to interconnected branches and ATMs, the Bank has a wide range of se
rvices like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, d
ebit cards, online bill payment and call centre facilities to offer round the cl
ock banking convenience to its customers. The Bank has been a pioneer in providi
ng innovative technological solutions to its customers and the Bank has won seve
ral awards and recommendations.
Ageas is an international insurance company with a heritage spanning more than 1
80 years. Ranked among the top 20 insurance companies in Europe, Ageas has chose
n to concentrate its business activities in Europe and Asia, which together make
up the largest share of the global insurance market. They are grouped around fo
ur segments: Belgium, United Kingdom, Continental Europe and Asia. It is an undi
sputed leader in the Belgian market for individual life and employee benefits, a
s well as a leading non-life player, through AG Insurance. Internationally, Agea
s has a strong presence in the UK, where it is the third largest player in priva
te car insurance. The company also has subsidiaries in France, Germany, Ukraine
and Hong Kong. Ageas has a track record in developing partnerships with strong f
inancial institutions and key distributors in different markets around the world
and successfully operates partnerships in Luxembourg, Italy, Portugal, China, M
alaysia, India and Thailand. Ageas employs more than 11,000 people and has annua
l inflows of almost EUR 16 billion.

Vision and Values

Maintaining integrity through our values
Our Vision
To be the leading provider of wealth management, protection and retirement solut
ions that meets the needs of our customers and adds value to their lives.
Our Mission
To continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery while
striving to interact with our customers in the most convenient and cost effecti
ve manner.
To be transparent in the way we deal with our customers and to act with integrit
y.
To invest in and build quality human capital in order to achieve our mission.
Our Values
• Transparency: Crystal Clear communication to our partners and stakeholders
• Value to Customers: A product and service offering in which customers perceive v
alue
• Rock Solid and Delivery on Promise: This translates into being financially stron
g, operationally robust and having clarity in claims
• Customer-friendly: Advice and support in working with customers and partners
• Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large
3.2 COMPARITIVE STUDY ON HDFC SLIC AND IDBI FEDERAL LIFE INSURANCE
S.No. BASIS HDFC SLIC IDBI FEDERAL
1. Association Companies HDFC and Standard Life Insurance IDBI Ban
k, Federal Bank, Ageas
2. Type of Plans Protection Plans
Child Plans
Health Plans
Savings & Investment Plans
Retirement Plans Term Plans
Wealth Plans
Group Microusarnce Plans
Homesurance Plans
Health Plans

OBJECTIVES AND METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or su
ggested solutions; collecting, organizing and evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to dete
rmine whether they fit the formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic method of fi
nding solutions to a problem is Research.
4.1 SIGNIFICANCE OF STUDY
OBJECTIVE means the purpose for which the research has been conducted. We have t
o clearly define the objective of the project to be made. This is the first and
the most important part of the Research Methodology.
The primary objective of my research is to do a comparative study on HDFC SLIC a
nd IDBI Federal Life Insurance.
Other secondary objectives are as follows:
• To study the insurance sector as a whole.
• To study the general profile of both the organizations and to study their variou
s products.
• To study the market position of the companies by analyzing the market.
• To study the functioning of insurance companies.
• To study the customers preference towards the insurance sector.
• To know the customers preference towards both the company and their satisfaction
level and to make a comparison between both.

4.2 SCOPE OF A STUDY

• To become familiar in marketing HR and sales
• To gain experience in the field of marketing.
• To face various challenges in the insurance industry.
• To learn how to manage the sales.
• To achieve the target by the company.
4.3 MANAGERIAL USEFULNESS OF THE STUDY
BY DOING insurance industry study and undergoing through the training I have lea
rnt how the management has been working in the organization. What are the duties
and responsibilities of the personnel’s from top to bottoms… how they behave in a c
orporate world. Further more we have understand the management structure of the
organization i.e. how personals related to each other. Who can order to whom, w
hat are relationship between them? This can be easily understood by the below di
agram.
A thorough research and a detailed study of the market are very important for th
e management to take the right strategy suiting the market condition.
The study gives the information regarding the market competition, innovative pro
ducts offered by the competitor, present demand of the products in the market et
c.
The main usefulness of the study on the managerial level is:
• Market survey will help to know the prevailing market condition and also help in
framing the policies accordingly.
• It will help to estimate the level of awareness established in the market and in
deciding the extent of promotion required.
• It will help in finding out the customer expectation about the product and also
help to know the customer physiology.
• It will help to know the class on which HDFC SLIC must concentrate.
• The study will help the management to understand the customer mindset and also e
stimating the present and future market demand for the products.
4.4 METHODOLOGY
RESEARCH DESIGN
Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different ki
nds. The major purpose of descriptive research is description of the state of af
fairs, as it exists as the present. The main characteristic of this method is th
at the researcher has no control over the variables; he can only report what has
happened or what is happening.
DATA SOURCES
This project consists of two parts:-
Secondary Data
The first part is a study of the insurance company, HDFC Standard Life Insurance
using secondary data sources. This secondary information has been sourced from
the internet and from business related magazines and newspapers.
Primary Data
The second part of the study has been done using an descriptive research process
and a structured questionnaire was developed for this purpose. For the collecti
on of primary data this was the only method used.

QUESTIONNAIRE DESIGN / FORMULATION

Questionnaires: - A questionnaire consists of a set of questions presented to re
spondent for their answers. It can be Closed Ended of Open Ended
Open Ended: - Allows respondents to answer in their own words & are difficult to
 Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret and
Tabulate.
TYPES OF QUESTIONS USED IN THIS PROJECT
Close ended Questions
To know the choice of the people regarding various matters.
Dichotomous Questions
Which has only two answers “Yes” or “No”.
SAMPLE DESIGN
The population considered for the purpose of the survey was people residing in D
elhi and the National Capital Region (NCR).
\
Sample Extent
North Delhi
Time Frame
8 weeks
Sampling Technique
Since the information required was not of a very technical nature and also looki
ng at the scope of the project and the extent of the target segment, the samplin
g technique employed was Convenience Sampling
Sample Size
The sample size to 100 respondents. This was done keeping in mind the time const
raints and the fact that this number would be enough to serve the information ne
eds required to show the trends.
4.5 LIMITATIONS
• The only limitation in this survey was that the survey could not be conducted on
a big scale, due to the time constraint.
• Most of the contents collected was difficult to understand because it was new fo
r me to work in this field.
• It was tricky and time consuming to understand the mysteries of marketing.
• Response of customers was biased.

DATA ANALYSIS AND INTERPRETATION

Ques1. Are you insured?
o Yes
o No
Answer Number of Respondents
Yes 85
No 15
Interpretation: The questionnaire was conducted mainly on the people who are ins
ured because only those people may be knowing much about the insurance companies
and according to survey 85% of respondents are insured and rest are not insured
ie. 15%.

Ques2. Do you know about HDFC Standard Life Insurance Company Limited?
o Yes
o No
Answer Number of Respondents
Yes 75
No 25

Interpretation: The questionnaire was conducted mainly on the people who are awa
re about the company so as to get complete picture of analysis because only thos
e people can give correct information about the about the company’s reputation but
the people who were not knowing about the company were also considered so as to
get a better view of the responses. So as a result 75 % percent of the responde
nt were aware of hdfc slic and just 25% of people doesn’t know about it.

Ques3. Which company has better marketing strategies?

o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 64
IDBI FEDERAL 36

Interpretation: As seen from the graph 64% of respondents think that the marketi
ng strategies of HDFC SLIC is better & just 36% of respondents think that IDBI F
ederal Life Insurance is better.

Ques4. Which company has more attractive advertisements?

o HDFC SLIC
o IDBI FEDERAL
Answer Number of Respondents
HDFC SLIC 82
IDBI FEDERAL 18

Interpretation: As seen from the graph 82% of the respondents think that the adv
ertisements of HDFC SLIC are more attractive than IDBI Federal, in fact IDBI Fed
eral has very less spending towards its advertisements.

Ques5. Which company has a better pre-sales services?

o HDFC SLIC
o IDBI FEDERAL
Answer Number of Respondents
HDFC SLIC 74
IDBI FEDERAL 26

Interpretation: As seen from the graph the respondents are more satisfied with t
he pre-sales services of HDFC SLIC than IDBI Federal Life Insurance.

Ques6. Which company has better insurance plans and offers more varieties in its
products?
o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 62
IDBI FEDERAL 38

Interpretation: As seen from the graph 62% of the respondents are more satisfied
with the plans of HDFC SLIC than IDBI Federal and think that HDFC SLIC provides
them with more varieties and rest are with idbi fedral.

Ques7. Which company has a better and helpful staff?

o HDFC SLIC
o IDBI FEDERAL
Answer Number of Respondents
HDFC SLIC 65
IDBI FEDERAL 35

Interpretation: As seen from the graph 65% of the respondents are satisfied with
the staff of HDFC SLIC but the ratings for the staff of IDBI Federal is also no
t very bad ie 35%.

Ques8. Which company has better after-sales services?

o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 78
IDBI FEDERAL 22

Interpretation: 78% of the respondent are satisfied with the after-sales service
s of HDFC SLIC and only 22% of the respondent are in favor of IDBI Federal.

Ques9. Which company has better advisors?

o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 64
IDBI FEDERAL 36

Interpretation: As seen from the graph much of the respondents are satisfied fro
m the advisors of HDFC SLIC than IDBI Federal Life Insurance. As 64% of the resp
ondent is in favor of hdfc slic and 36% are against.

Ques10. Which company has better and easy accessibility?

o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 77
IDBI FEDERAL 23

Interpretation: 77% of the respondents think that HDFC SLIC is having easy and b
etter accessibility as compared to IDBI Federal and 23% of people think other wa
y round .

Ques11. Which company is a better choice for customers?

o HDFC SLIC
o IDBI FEDERAL

Answer Number of Respondents

HDFC SLIC 78
IDBI FEDERAL 22

Interpretation: As seen from the graph 70% of the respondents think that HDFC SL
IC is a better choice and 22% of customers thinks IDBI Federal is better .

FINDINGS & RECOMMENDATION

6.1 FINDINGS OF THE RESEARCH
• Insurance sector is the most booming sector in India now-a-days.
• The insurance sector helps in increasing the employment opportunities in India.
• Although there are a lot of private insurance companies but the main share is st
ill for the only public insurance company that is LIC.
• Privatization has led to a great impact on the insurance industry.
• HDFC is one of the oldest private insurance company in India.
• There are a lot of new companies entering in the insurance making it more compet
itive.
• A very less percentage of Indian population is insured till yet.
• There are many opportunities still to be availed by the private sector insurance
companies.
• Most of the persons are still not aware of the benefits of insurance.
• HDFC SLIC has got a good advantage of the name of HDFC associated with it.
• HDFC SLIC is growing its network day by day at a very large scale.
• The reliability of the Indian population upon the company is also good because o
f the brand name of HDFC and also being the oldest company in private sector in
insurance.
• IDBI Federal is also giving a good competition to HDFC SLIC as it is associated
with a good brand name of two banks.
• Many of the people are much satisfied with the plans of HDFC Standard Life Insur
ance Company than IDBI Federal.
• Much of the people are satisfied with the pre-sale services of HDFC SLIC when co
mpared to IDBI Federal.
• The people are also satisfied from the after-sales services of HDFC SLIC in comp
arison to IDBI Federal.
• Much of the people are satisfied with the staff and advisors of the HDFC SLIC in
comparison to IDBI Federal.
• According to most of the customers the advertisements of HDFC SLIC are more attr
active than IDBI Federal. In fact the advertisements of IDBI Federal are rarely
being seen.
• Many respondents feel that the marketing strategies adopted by HDFC SLIC are bet
ter than IDBI Federal.
• The customer satisfaction level of HDFC SLIC is very good.
• The company is having a good advantage of great customer base.
• Many of the respondents feel that HDFC SLIC have much easier and better accessib
ility as compared to IDBI Federal.
• HDFC SLIC is a more better choice for customers when in comparison to IDBI Feder
al.

6.2 RECOMMENDATIONS FOR THE ORGANIZATION

• The company should stress more on the ULIP plans because they are the one which
is adopted much by the population.
• The company should stress much on its marketing strategies and should work upon
it a bit more.
• The company is not using any brand ambassador in its advertisements which can pr
ove to be advantageous for the company.
• The company should recruit more and more financial advisors.
• The company should also offer some more plans for the middle class of the societ
y.
• The company should try to improve its services.
• The company should introduce some more plans for rural sector of the society whi
ch is still untapped.
• The company should introduce some group insurance plans like other companies.