Hdfc Life Final Report

8/2/2019 Hdfc Life Final Report

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A

REPORT

ON

A CRITICAL STUDY ON MARKET EXPANSION STRATEGIES

AND ITS IMPACT ON PREMIUM COLLECTION OF HDFC SLIC

FOR

SUBMITTED BY

P. VENKATA KRISHNA

E.NO.6ND03849 (MBA 2006-08)

ICFAI NATIONAL COLLEGE

VIJAYAWADA


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A FINAL REPORT

ON


AND ITS IMPACT ON PREMIUM COLLECTION OF HDFC SLIC.

SUBMITTED BY

P.VENKATA KRISHNA

E.NO.6ND03849 (MBA2006-08)

ICFAI NATIONAL COLLEGE,

VIJAYAWADA.

WITH REFERENCE TO THE ORGANISATION

UNDER THE GUIDANCE OF

Faulty guide: Company guide:

B. VENKATESWARA RAO MR. ARAVIND

ICFAI NATIONAL COLLEGE, BRANCH DEVELOPMENT

DILSHUKNAGAR, MANAGER,HYDERABAD. KOTTAPET,

HYDERABAD.


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CERTIFICATE

This is to certify that the summer internship program-2007 entitled


AND ITS IMPACT ON PREMIUM COLLECTION OF HDFC SLIC,

a bone fide work of P. VENKATA KRISHNA,(E.NO.6ND03849, INC:VIJAYAWADA) is original and has been done under my supervision in partial fulfillmentof the requirement for the award of MBA Degree. The student has carried out the projectwork for a period of four months from 19th Mar, 2007 to 7th July, 2007 in HDFC StandardLife Insurance Company.

He was involved in marketing of HDFC Standard Life Insurance Companys products andrecruiting Financial Consultants. I am pleased to record here that his performance duringthe period was extremely satisfactory and good.

I wish him good luck for his future endeavor.

HDFC STANDARD LIFE INSURANCE

B. ARAVINDBRANCH MANAGER


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BESIDE HDFC BANK,

MALAK PET-500 036

Y. RAMA KRISHNA

Principal,

ICFAI National College

Hyderabad-500 036.

CERTIFICATE

This is to certify that project report entitled A CRITICAL STUDY ONMARKET EXPANSION STRATEGIES AND ITS IMPACT ON

PREMIUM COLLECTION OF HDFC SLIC, represents the genuine

work carried out by P. VENKATA KRISHNA (E.No.6ND03849 INC-

Vijayawada ) in partial fulfillment of the requirement for the award

Master of Business Administration During the academic Year 2006-08.

Place: HYDERABAD

Date : / / 2007 PRINCIPAL


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BESIDE HDFC BANK,

MALAK PET-500 036

B.VENKATESWARA RAO

Faculty guide,

ICFAI National College

Hyderabad-500 036.

CERTIFICATE

This is to certify that project report entitled A CRITICAL STUDY ON

MARKET EXPANSION STRATEGIES AND ITS IMPACT ON

PREMIUM COLLECTION OF HDFC SLIC, represents the genuine

work carried out by P. VENKATA KRISHNA (E.No.6NDO3849 INC-

Vijayawada) in partial fulfillment of the requirement for the award

Master of Business Administration During the academic Year 2006-08.

Place: HYDERABAD

Date : / / 2007 FACULTY GUIDE


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DECLERATION

I hereby declare that this project work entitled A

CRITICAL STUDY ON MARKET EXPANSION STRATEGIES AND

ITS IMPACT ON PREMIUM COLLECTION OF HDFC SLIC

carried out under the guidance of my Company Guide Mr. ARAVIND

and my Faculty guide Mr. B. VENKATESWARA RAO, ICFAI

National College, Hyderabad during academic year 2006-08 This

.report, neither in full nor in part has been submitted for award of any

other degree of either this university or any other university.

P. VENKATA KRISHNA.

ACKNOWLEDGEMENT


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At the outset let me thank Mr. PRAVEEN, company guide,

HDFC Standard Life Insurance for extending all possible assistance, in

required manner for completion of this project

I would like to express my sincere thanks to Mr. Y. RAMA

KRISHNA, Principal, ICFAI National College, Dilshuknagar,

Hyderabad, for giving me this opportunity to do the project work in

partial fulfillment of the requirement for the award of Degree of

Masters of Business Administration.

I express my sincere thanks to Mr. B. VENKATESWARA RAO

Faculty member, ICFAI National College, Dilshuknagar Hyderabad,

for giving her valuable assistance and guidance while doing my project

work.

I am extremely grateful to Mr. SUBASH, SIP Coordinator, ICFAI

National College, Dilshuknagar, who is a source of inspiration during

the course. I also express my sincere thanks to all our faculty members

who rendered their valuable suggestions while doing the project.

P.V

ENKATA KRISHNA.

TABLE OF CONTENTS:-


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Part - I

Title page 1

Acknowledgement .. 2

Declaration .. 3

Executive summery of project report .. 5

Chapter I: - ..

Introduction to the project

Need for Study

Objectives of the study

Methodology of the study

Limitations of the study

Chapter II: - ..

Industry profile

History

Present

Future Trends (opportunities)

Threats to the industry.

Chapter III: - ..Company profile

History

Present

Owners (shareholders)

Products

Market share

Competitors

Reference: -

EXECUTIVE SUMMARY OF THE PROJECT:


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SELLING OF INSURANCE POLICIES AND RECRUITING

FINANCIAL CONSULTANTS TO HDFC SLIC.This summary contains the gift of experience gained under the Summer Internship Program

(SIP).The project was allotted in HDFC STANDARD LIFE INSURANCE COMPANY.

The internship started with reporting to the manager on 19th MARCH. The ET comprised

selling insurance policies worth Rs.3LAKHS premium and recruiting of financial advisors.

The initial days were allotted to gain considerable knowledge about the company and its

products. Later the schedule was divided into two parts where few days were allotted to

undergo training relating to the application of strategies for selling the policies.

The next part of the schedule includes training relating to the recruitment of advisors.

While selling the policies Personal Selling is adopted as a strategy which requires

meeting the potential buyers personally, explaining them about the policies and convincing

them to purchase.

Chapter -I


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SELLING OF INSURANCE POLICIES AND TO RECRUIT

FINANCIAL CONSULTANTS TO HDFC SLIC.

Introduction to the project.

Definition 1: There is nothing more uncertain than life and nothing more certain

than life insurance.

Definition 2: According to transfer school Insurance is the device for the reduction

of uncertainty of one party called insured, through the transfer of particular risk to

another party, called the insurer who offers a restoration, at least in part, of economic

losses suffered by the insured.

Definition 3: Insurance is a plan by which large numbers of people associates

themselves and transfer to the shoulders of all risks that attach to individuals.

FUNDAMENTAL DEFINITION

Insurance may be defined as a social device providing financial compensation for the effects

of misfortune, the payment being made from the accumulated contributions of all parties

participating in the scheme.

WHAT IS LIFE INSURANCE

Life insurance is a contract between a person and an insurance company by which

that person pays certain agreed amount either monthly, quarterly, half-yearly or yearly. So

that at the time of persons death the agreed amount will be given to his or her family

members. This is often used to defray funeral and related expenses and there after replaces

the loss of income or pension benefit caused by the death of the policyholder. Life Insurance

involves selling IOUs and involves a whole range of specialists. Life insurance is a long-term

business and it is a distinguishing characteristics and it is also a time-tested business. Life

insurance has to manage a whole lot of risks.

TAX BENEFITS


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Life Insurance is one of the best tax saving options today. Your tax can be saved twice on a

life insurance policy. Once when you pay your premiums and once when you receive

maturity benefits. Money saved is money earned.

INSURANCE NEEDS

Since needs vary between people and depends on age, size of the family and dependents,

nature of other properties and incomes, no one can plan meet all the need. But all needs can

be met by a well-judged plan.

HOW DOES INSURNCE WORK?

All the policy holders who are likely to face the similar risk, agree to come togetherto share the losses suffered by a few. Since the individuals who are going to suffer the lossare not known all the policyholders are protected in case they become the victims of theinsured event. Thus insurance is a means of sharing of the risk.

Insurance is broadly classified as

o Life Insurance

o Non Life Insurance or General Insurance.

Whether it is Life Insurance or Non Life Insurance becomes so significant because of the

fallowing reasons:

The risk is enormous, and it becomes difficult for any individual to bear the burdenof loss.

The risk is also uncertain, as it becomes easier for any individual to guard himselfagainst certain events.

The individual is left with no other option than to deal with the event, as in mostcases the happening of the event is beyond the control of the individual.

Also there are many people in the society who are likely to face thesimilar risk in the same period.

Subject matter of Insurance


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When a person insurance his car the subject of the insurance is the car. What the insurancecompany guarantees is that in case of a financial loss due to an uncertain event then thecompany would compensate to the extent of the loss subject to the condition that the personhas adequately insured the car.

In Life insurance what is the subject matter?Or what is covered in life insurance.

Surely it cannot be death because death cannot be compensated. It cannot be lifeeither, as life too cannot be compensated. Life insurance aims to compensate the IncomeEarning Capacity of the person. When we say Insurance we are only talking of Pureinsurance or Term Assurance and not of any savings, investment or retirement plan.

Income Earning Capacity is LOST on the happening of the following events.

Death of the life assured

Accident of the life assured (death or permanent disability due to accident)

Sickness of the life assured (critical illness)

Retirement of the life assured

Out of the four events mentioned above, Death, Accident and Sickness areuncertain events. Since, insurance is all about compensation of financial loss on thehappening of an uncertain event, Death, Sickness and Accident are covered under lifeinsurance. Whereas, Retirement is a certain event. You dont have a solution for certainevents in insurance. Hence, the event retirement is not covered under life insurance.

It is often felt that life insurance means only death insurance. This is not true. Lifeinsurance is insurance against the loss of the income earning capacity of the person. Death,Accident and Sickness (critical illness only) can affect the income earning capacity of anindividual. Life insurance offers protection for the loss of income earning capacity due toDeath, Accident and Sickness.

Retirement on the other hand is a certain event. A certain event cannot be insuredat all. The only alternative left for the person is to save for retirement. All the lives assuredwould definitely retire hence insurance cannot be offered for retirement. Income earning

capacity is affected on retirement. The retirement plans are therefore savings plans, whichhelp a person, save for the retirement.

PRINCIPLES OF INSURANCE


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We will look at the three basic principles of insurance.

Principle of Indemnity

Principle of Utmost Good Faith

Insurable Interest

Principle of Indemnity

The Principle of Indemnity refers to the contractual provision whereby the losssustained by an individual be made good by the insurance company. In insurance otherthan life insurance or accident insurance the principle of indemnity is involved, by whichone party promises to make good the loss incurred by the other. The value of life,however, is incapable of estimation and except in a limited sense cannot be made goodby insurance. Hence, a life insurance contract is, not contract of indemnity.

Principle of Utmost Good FaithLife insurance contracts require a high degree of good faith because of the specia

inature of the contract. The duty exists on the part of the individual (proposer) tovoluntarily disclose all the material facts that are relevant. These information is requiredby the insurer to assess the risk and take a final decision whether to accept the risk or not.If accepted, on what terms and conditions. Misrepresentation or Non- disclosure ofmaterial facts can lead to the avoidance of contract by the insurer.

Insurable Interest

Insurable interest refers to the pecuniary (monetary) interest, which the individual(proposer) has on the subject matter to be insured. In the absence of insurable interest itbecomes a gambling contract. Insurable interest is necessary for a valid contract ofinsurance (both life as well as non-life). In life insurance, the person who is to benefit fromthe proceeds of insurance must be in such relationship to the insured as to have a realinterest in the continued life of the insured. There must be a reasonable ground, eitherpecuniary or based on affinity, to expect some benefit or advantage from the continuanceof the life of the life assured. This real interest is partly compensated for by the proceedsof the insurance when the life assured dies. Any other basis would involve an element ofgambling.


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In the present day scenario, we can cite the example of a person who hands over Rs.15000

every month to his wife for meeting household and other expenses. If he desires that his

wife or family should still receive the income of Rs.15000 or so every month in case he

dies, he should financially plan in such a way that after meeting the outstanding liabilities,

the family will continue to receive that amount every month. It would also depend on the

rate of interest prevalent at the time of investment.

Today, an investment of Rs.30, 00,000 at the rate of 6% p.a interest may fetch a

monthly income of Rs.15000. hence, the person who plans for Rs.15000 income p.m for

his family after his death, should see to it that his family receives a cash of Rs.30, 00,000

and his death after meeting the outstanding liabilities, which may include house mortgage,

car loan, and other financial liabilities. And, if the contingency expenses like marriage and

education of the children are also taken into consideration, then the cover would be higher.

If he has no other savings, then only financial solutions to meet the risk of death is to have

an insurance coverage, and buying term insurance products could be the only financial

solutions.

. For example, if only

100 persons, who have life insurance, an element of uncertainty as to the

number of death in that group in one year is largely present.

Fluctuations in the rate of death from year to year will be violent. On

the other hand ,if 100000 people are combined into a group, fluctuations

in deaths from year to year will probably vary by a fraction of one

percent. This will enable any life insurance company to transact

business on non-speculative lines. This is called the basic principle or law of large

numbers. In general, terms, the law of large numbers states that The larger number of

separate risks of a like nature combined into a group, the less uncertainty there is as to the

relative amount of loss that combined will be incurred within a given period.


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This law of large numbers applies to all classes of insurance both life

and non life. The concept of spreading of risks together with the law of large

numbers forms the economic basis of life insurance.

How much life insurance an individual should take depends upon the various needs of the

family that would arise in case of death or disability of bread winner.

Though the objectives may differ from family to family, we can draw up

a general list of needs applicable to most of the families.

Insurance is also an investment option periodic premiums are like

Savings that the insured can get a lump sum amount on maturity which

can meet major expenses like childs education or marriage.

Life insurance is one of the best taxes saving option today as the union budget 2006

removed the sublimit of Rs 10,000/ for tax free contributions to pension policies, there by

allowing individuals to sale up to Rs 1,00,000 to wards such plans .

A knowledge and under standing of the various factors which influence

mortality enables the company not only to select applicants but also

Classify them into different groups depending on the rate of mortality

They are likely present. The main purpose of this process is to determine the rate of

premium payable by the prospect for a risk presented by him to the company and accepted

by the company.


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ADVANTAGES OF LIFE INSURANCE

1) Life insurance policy creates an estate.

2) Life insurance encourages thrift i.e. Forced and compulsory savings.

3) Any court of law or income tax authorities cannot attach life insurance policies.

4) A policy of life insurance can be utilized as a collateral security for housing loan.

5) If immediate liquid cash is needed a policy of life insurance can be assigned to the

life insurance company as security for a loan.

6) Transfer of property contained in a life insurance policy does not attract any stampduty like other property.

7) The proceeds of life insurance policy including any Bonuses paid are not liable for

income Tax.

8) They are various other provisions in Income Tax act providing exemptions to

premiums paid under life insurance policies taken for specific purpose.

9) Settlement of claim under life insurance policies is very simple.

10) Life insurance is profitable investment. The IRDA pays special attention to the

safety of money paid by the policy holders.

11) A life insurance will have the necessary experience and expertise in this field and a

policy holder gets the benefits of the same entirely free.

12) Most of the investments in the market are generally available in a fixed

denomination.

13) Life insurance policies are available from very short duration to very long duration

unlike many other savings instruments.

14) Life insurance can be bequeathed to educational and philanthropic institutions.

15) Even economically and socially backward section of the society can benefit through

group life insurance schemes.

16) Society at a large is a great beneficiary through life insurance.


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LIMITATIONS OF INSURANCE

All risks cannot be insured

There must be insurable interest

Insurance is limited to the financial value

There must be large number of similar risks

It must be possible to calculate the risk of loss

Losses should not be catastrophic

Losses must not be too small

Losses must be reasonably unexpected

Losses must be accidental

NEED FOR THE STUDY

Day by day insurance sector in INDIA is becoming highly competitive, with regard to this

number of private insurance companies are emerging in the city, as a result confidence of

people on new insurance companies is very low. So companies on one hand have to satisfy

the customer and on the other they have to overcome the increasing competition.

Customers subscribe to insurance policies for various reasons like investment, protection to

them and to their family members, to avail tax benefits, to get up fixed income in the future

etc.

In order to know well about the insurance sector prevailing in the city this four months

programmed is very useful.


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OBJECTIVES:

To assimilate the corporate culture which is not acquired only by readingBooks?

To sell as many Insurance policies of HDFC standard life insurance companyas possible.

To identify the strengths and weaknesses of the Insurance sector.

To learn how to manage the team.

To learn how to manage the time in an effective manner.

To understand pros and cons of Insurance sector in India.

Limitations

In a city like Hyderabad people opt to invest in real estate, mutual

funds etc. than in insurance.

Busy schedule of the customer. (Poor response)


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CHAPTER-II

INDUSTRY PROFILE


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Global Insurance Industry

The insurance business which took roots in Italy, grew and established itself in

the fertile land of England from Lloyds of England, it journeyed and reached India alongwith the business and rules of England. Whatever the intention then the business between

the two countries one imperial and the colonel-generated remarkable awareness about the

concept of insurance in India.

The first insurance company that started working on the Indian soil was English

Company, which later made way for the Indian insurance company.

The global insurance industry is growing in unison. Most of the market is

undergoing globalization at a rapid pace. Globalization has brought into being several tie-

ups in the insurance industry, especially in several Asian countries. As a result, there has

been a rebounding for some market from the downturn of 1990s.

HISTORY OF INSURANCE IN INDIA:

In India, Insurance was established only at the beginning of the 19 th century. There

is some evidence that between 1797 and 1810, marine insurance companies were

established in Calcutta which was the center of the East India Companys trade and

commerce. It may, therefore be said that marine insurance was the earliest form of

insurance to be transacted in India.

Marine Insurance was followed by fire Insurance which was introduced by the

Alliance British and Foreign Fire Insurance Co., which established an agency office at

Madras in 1825.

By the year 1885 nearly 50 foreign offices commenced insurance business through

agency houses. The majority of offices were British and a few were from Australia andNew Zealand. Some of these offices were members of the Fire Offices Committee formed

in London in 1858 which introduced the East Indian tariffs which were observed by these

offices in India. It was only in 1850 that an Indian insurance company was formed to

transact general insurance, namely the triton Insurance Company.


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Towards the end of the 19th century, the Indian businessmen in Western India

started taking active interest in insurance business as brokers. During this period, fire

insurance transactions were confined to the metropolitan cities of Mumbai, Kolkata and

Chennai. These transactions were gradually extended to the other areas as Industries

developed outside these cities. The Indian brokers however operated only in Western India

and with their growing influence in the local mercantile community, began to virtually

control the business.

The period between the two world wars was a period of struggle for the newly

established Indian insurance Companies who with their limited experience had to contend

with severe competition from the foreign insurers who had superior technical expertise and

large experience. The position was further aggravated by the fact that exchange banks did

not accord recognition to the insurance policies issued by Indian insurance companies

except up to small limits. In these unsettled conditions, Government intervention became

inevitable. Accordingly, in 1935 a special officer was appointed to investigate and report

on Insurance Law reform and in 1938 the Indian Insurance Act was passed and brought

into force in 1939. This Act incorporated the principle of uniform Governance over all

insurers, both foreign and Indian. The Act was an important landmark in the history of

insurance

The Act has been amended a number of times, the most important amendments

being made in 1950 and 1968.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA)

Following the recommendations of the Malhotra Committee, the Government of India set

up setting up Insurance Regulatory Authority (IRA). It had been entrusted with the task of

preparing a comprehensive legislation to establish a statutory, autonomous IRDA on the pattern

of the Securities and Exchange Board of India (SEBI).


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Insurance Regulatory and Development Authority (IRDA) Act, 1999:

In order to provide better insurance cover to citizens and to augment the flow of

long-term sources of financing infrastructure, the Government, to open up the insurance

sector and also set up a statutory IRDA. The IRDA Act was enacted in 1999 to protect the

interests of policy holders and also to regulate, promote and ensure orderly growth of the

industry.

Duties IRDA:

The duty of IRDA is to regulate, promote and ensure orderly growth of the insurance and

reinsurance businesses.

The main initiatives that IRDA has taken.1) Announcement of detoxifying of all portfolio structures under tariff for over five

decades, including fire, engineering and motor, that constitute about 70% of the

total market of Rs. 20,000 crores. The four public sector players have about 75% of

the market with the 8 private sector players having the remaining 25%. January1,

2007 has been set for this purpose.

2) To facilitate development of insurance in rural, social and unorganized sectors, IRDA has

also enacted micro insurance regulations in November 2005.

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 was set up with the objective of complementing the reforms

initiated in the financial sector.


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The reforms were aimed at creating a more efficient and competitive financial system

suitable for the requirements of the economy keeping in min 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:

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 companies should be given greater freedom to operate.

Competition

Private companies with a minimum paid up capital of Rs. 1bn should be allowed to enter

the industry.

No company should deal in both 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 operate in each state.

Regulatory Body

The Insurance Act should be changed

Ana Insurance Regulatory body should be set up

Controller of insurance (currently a part from the Finance Ministry) should be made

independent

Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75%

to 50%


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GIC and its subsidiaries are not to hold more than 5% in any company (There current

holdings to be brought down to this level over a period of time.)

Customer service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

Computerization of operations and updating of technology to be carried out in the

Insurance industry

The committee emphasized that in order to improve the customer services and increase the

coverage of the insurance industry should be opened up to competition. But at the same

time, the committee felt the need to exercise caution as any failure on the part of new

players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum

capital requirement of Rs. 100 crores. The committee felt the need to provide greater

autonomy to insurance companies in order to improve their performance and enable them

to act as independent companies with economic motives. For this purpose, it had proposed

setting up an independent regulatory body.

INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, aNational Reinsurer)
http://www.licindia.com/http://www.gicoi.com/http://www.licindia.com/http://www.gicoi.com/


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GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidarieshave been de-linked from the parent company and made as independent insurancecompanies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,3. National Insurance Company Limited4. United India Insurance Company Limited.

The top insurance player in insurance sector

Whoever has more money winsCompany Indian

promoterForeigninsurance

Totalcapital(Rscrores)

FDI % Foreigncapital ( Rscrore)

Marketshare basedonpremium

AMP sanmar+

RelianceGroup

None 217 0 0 0.54

Aviva life Dabur Aviva, UK 459 26 119.34 1.12

Baja allianz Bajaj Auto Allianz,Germany

368 26 98 6.12

Birla sun life Aditya birlagroup Sun life,Canada 400 26 104 1.84

HDFCstandard

HDFC Standard life,UK

250 18.9 47 2.96

ICICIprudential

ICICI bank Prudential,UK

1085 26 282 7.11

ING Vysya Vysya bank INGinsurance, theNether Lands

440 26 68 0.63

KotakMahindra,

old mutual,

KotakMahindra

bank

Old mutual,South Africa.

260 26 68 0.71

Max NewYork

Max India New York life,US

500 26 130 1.32

Met life Jammu andKashmir

Met life, US 355 26 92 0.40

Sahara Lifeinsurance

Sahara India None 100 0 0 0.80

SBI life SBI Cardiff, 350 26 91 1.52
http://www.orientalinsurance.nic.in/http://www.niacl.com/http://www.niacl.com/http://www.nationalinsuranceindia.com/http://www.uiic.co.in/http://www.orientalinsurance.nic.in/http://www.niacl.com/http://www.nationalinsuranceindia.com/http://www.uiic.co.in/


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France

Tata AIG Tata Group AIG, US 381 26 99 1.78

Total 5,165 1,196.34

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram AllianceInsurance Company Limited

2 103 23.10.2000 Reliance General InsuranceCompany Limited.

3 106 04.12.2000 IFFCO Tokio General InsuranceCo. Ltd

4 108 22.01.2001 TATA AIG General InsuranceCompany Ltd.

5 113 02.05.2001 Bajaj Allianz General InsuranceCompany Limited

6 115 03.08.2001 ICICI Lombard GeneralInsurance Company Limited.

Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5new entrants; namely

Life Insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 121 03.01.2002 AMP Sanmar Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
http://www.royalsundaramalliance.com/http://www.royalsundaramalliance.com/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.tata-aig.com/http://www.tata-aig.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.avivaindia.com/http://www.royalsundaramalliance.com/http://www.royalsundaramalliance.com/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.tata-aig.com/http://www.tata-aig.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.avivaindia.com/


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General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 123 15.07.2002 Cholamandalam GeneralInsurance Company Ltd.

2. 124 27.08.2002 Export Credit GuaranteeCorporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General InsuranceCo. Ltd.

Yr: 2003-2004 : ( From 1st Jan 2003 till Date)


Life Insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 127 06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 :


Life Insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 128 17.11.2005 Shriram Life Insurance Company Ltd.
http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.saharalife.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.saharalife.com/


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Trends: MILESTONES OF INSURANCE REGULATIONS IN

THE 20TH CENTURY

Year Significant Regulatory Event

1912 The Indian Life Insurance Company Act

1928 The Indian Insurance Companies Act enabled the Government to collect statistical

information about both life and non-life insurance businesses.

1938 The Insurance Act: Comprehensive Act to regulate insurance business in India.

1956 The 245 Indian and foreign insurers and provident societies taken over by the

central government were nationalized. LIC was formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crores

from the Government of India.

1972 Nationalization of general insurance business in India

1993 Setting up of Malhotra Committee

1994 Recommendations of Malhotra Committee1995 Setting up of Mukherjee Committee

1997 The Government gives greater autonomy to LIC, GIC and its subsidiaries with

regard to the restructuring of boards and flexibility in investment norms

aimed at channeling funds to the infrastructure sector.

1999 The Standing Committee headed by Murali Deora decides that foreign equity in

private insurance should be limited to 26%. The IRA bill is renamed the

Insurance Regulatory and Development Authority (IRDA) Bill

1999 Cabinet clears IRDA Bill

2000 President gives assent to the IRDA Bill


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Deregulation

Deregulation is redefining who can offer insurance. Repeal, in late 1999,

of the 1933 Glass-Steagall Act (which formerly separated all arenas of

financial services) promised a major face lift for the insurance

Industry. Insurers, banks, and securities brokers are now free to

Merge and cross-sell each others products. This clears the way

For financial service superstores that will offer insurance as well

As investment and savings options. Commercial banks have been

---making modest inroads on traditional insurance markets for

Several years, but repeal of Glass-Steagall could lead to much greater

and quicker changes in the role of traditional insurance agents.

Technology

The industry is presently engulfed by Internet mania. After recent

Studies fingered insurance as the last holdout against online

Commerce, insurance providers rushed to wire their businesses. The

Internet promises to cut costs in a competitive market, provide a

new way for consumers to compare quotes and choose policies, and

make for a more convenient servicethe ideal customer-friendly

Combination. This transition will have an impact on the job

market: Companies will undoubtedly seek tech-savvy candidates

Who can support the move to e-commerce?

Consolidation


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Continuing the trend that essentially began 30 years ago, insuranceCompanies are responding to global competition and the need for

Cost efficiency by forming strategic alliances, merging into

Conglomerates and buying smaller companies. This trend is doing

away with the independent agencies that used to define the

Industry. Consolidation also means that companies will offer a full

range of insurance products instead of specializing in certain

Realms such as property or casualty.

Latest Trends:-

ULIPs are gaining popularity among various insurance schemes on offer as they provide

varied, flexible fund options based on individual investors risk appetite.

Different funds available in this space are equity funds, debt funds, liquid funds, hybrid

funds, capital guarantee funds. Equity funds are allowed to invest unto 91 95% and

equities, which predominantly, invest in blue chip companies. Balanced funds invest 60%

in equities and the remaining 40% in the debt instruments. Hybrid funds invest across

various categories in different ratios. Capital guaranteed funds are conservative in nature

and invest both in equity and debt instruments.

Banc assurance in India:

Banc assurance is selling of insurance policies through a banks established distribution

channels. With the rise in income level, the younger generation is creating huge liabilities

by raising various kinds of loans. They, therefore, must manage these liabilities by buying

matching life insurance covers.

Threats to the industry.

1) There is a major challenge for the insurance companies and the policy makers to

increase the awareness levels among rural population, so that they may view insurance

policies as risk management tool.


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2) There is a need for sufficient investment by both private and public institutions to bring

about a change in the perception of insurance as risk mitigation instrument and enhance the

awareness levels on various insurance products and how they work in principle.


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CHAPTER -III

COMPANY PROFILE


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Introduction

Helping Indians experience the joy of home ownership.

The road to success is a tough and challenging journey in the dark where only obstacleslight the path. However, success on a terrain like this is not without a solution.

As we found out nearly three decades ago, in 1977, the solution for success is customersatisfaction. All you need is the courage to innovate, the skill to understand your clienteleand the desire to give them your best

Today, nearly three million satisfied customers whose dream we helped realise, standtestimony to our success.

Our objective, from the beginning, has been to enhance residential housing stock and

promote home ownership.

Now, our offerings range from hassle-free home loans and deposit products, to propertyrelated services and a training facility.

We also offer specialised financial services to our customer base through partnerships withsome of the best financial institutions worldwide.
http://www.hdfc.com/index.asp


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HDFC GROUP
http://www.cibil.com/http://www.hdfcsec.com/http://www.hdfc.com/index.asphttp://www.hdfc.com/http://www.intelenetglobal.com/http://www.hdfcrealty.com/


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HDFC LIMITED

Founded in 1977, it is Indias largest housing finance institution with an asset baseof over Rs. 15,000 crore. It has helped finance over 15 laks homes through 84 branches inIndia, 3 overseas Service Associates and one International Office. CRSIL and ICRA have

awarded the AAA rating to HDFC Limited for the last six years consecutively. HDFCLimited has over 11 lakh depositors and over 46,000 deposit agents. Over the years, it haswon many awards and accolades, and has promoted several group companies to meetinvestors and customers needs.

STANDARD LIFE ASSURANCE COMPANY (SLAC):

Founded in 1825, this is Europes largest mutual life insurance company. StandardLife has total group assets under management of Rs. 5,89,000 crore and New PremiumIncome of Rs. 35,000 crore. It has received the AAA rating from Moodys and Standard& Poors. One of the strongest companies in the world, in financial terms, it was recentlyvoted Company of the Decade by independent financial advisors in U.K.
http://ukgroup.standardlife.com/html/index.htmlhttp://www.hdfc.com/index.asp


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The Partnership:

HDFC Standard Life first came together for a possible joint venture, to enter the LifeInsurance market, in January 1995. It was clear from the outset that both companies sharedsimilar values and beliefs and a strong relationship quickly formed. In October 1995 thecompanies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the

relationship.

The next three years were filled with uncertainty, due to changes in government andongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Actpassed in parliament. Despite this both companies remained firmly committed to theventure.

In October 1998, the joint venture agreement was renewed and additional resource madeavailable. Around this time Standard Life purchased 2% of Infrastructure DevelopmentFinance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFCTreasury department to advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and bothcompanies agreed the time was right to move the operation to the next level. Therefore, inJanuary 2000 an expert team from the UK joined a hand picked team from HDFC to formthe core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake inHDFC Bank.

In a further development Standard Life agreed to participate in the Asset ManagementCompany promoted by HDFC to enter the mutual fund market. The Mutual Fund was

launched on 20th July 2000.

The company was incorporated on 14th August 2000 under the name of HDFC StandardLife Insurance Company Limited.
http://ukgroup.standardlife.com/html/index.htmlhttp://www.hdfc.com/index.asp


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Their ambition from the beginning was to be the first private company to re-enter the lifeinsurance market in India. On the 23rd of October 2000, this ambition was realized whenHDFC Standard Life was the first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Lifeowns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is themaximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values andtrust. The ambition of HDFC Standard Life is to mirror the success of the parent companiesand be the yardstick by which all other insurance companies in India are measured.

Their Mission ( as stated in the Company's website ):

To be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market,rather it is a combination of several things like-

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share


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Incorporation of HDFC Standard Life Insurance Company Limited:

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurancecompanies, which offers a range of individual and group insurance solutions. It is a jointventure between Housing Development Finance Corporation Limited (HDFC Ltd.), India'sleading housing finance institution and a Group Company of the Standard Life, UK. HDFCas on March 31, 2007 holds 81.9 per cent of equity in the joint venture.

The company was incorporated on 14th August 2000 under the name of HDFC StandardLife Insurance Company Limited.

Their ambition from the beginning was to be the first private company to re-enter the lifeinsurance market in India. On the 23rd of October 2000, this ambition was realised whenHDFC Standard Life was the first life company to be granted a certificate of registration.

HDFC and Standard Life have a long and close relationship built upon shared values andtrust. The ambition of HDFC Standard Life is to mirror the success of the parent companiesand be the yardstick by which all other insurance companies in India are measured.

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 SolutionsWe have a range of individual and group solutions, which can be easily customised 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 cumulative premium income, including the first year premiums and renewal premiums

is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000 lives have been

covered through our group business tie-ups.


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Mission

To be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market,

rather it is a combination of several things like-

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

HDFC- COMPANY VISION

THE MOST SUCCESSFUL AND ADMIRED LIFE NSURANCE COMPANY,WHICH MENASTHAT WE ARE THE MOST TRUSTED COMPANY, THE EASIEST TODEAL WITH ,OFFERTHE BEST VALUE FOR MONEY AND SET THE SANDARDS FOR THE INDUSTRY

INSHORT:

THE MOST OBVIOUS CHOISE FOR ALL

Values:

SECURITY: Providing long term financial security to our policy holders will beour constant Endeavour. We will be do this by offering life insurance and pensionproducts.

TRUST: We appreciate the trust placed by our policy holders in us. Hence, wewill aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognising the different needs of our customers, we will beoffering a range of innovative products to meet these needs.

Their mission is to be the best new life insurance company in India and these are the valuesthat will guide them in this.


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ORGANIZATION STRUCTURE

Corporate Office:

GENERALSALES & HOD- IT

MD & CEO

HODLEAGAL&

SECRETARIA

GMFINANCE & HOD-HR

GMOPERATIONS&UNDDERWRITI

NG

RETAIL SALESNORTH

RETAIL SALESSOUTH

INSTITUTIONALSALES

CHANNELDEVELOPMENT &SALES TRAINING

MARKETING

ZONALMANAGERS-6

ZONALMANAGERS-6

ACCOUNTS

MEDICAL

ACTUARIAL

OPERATIONS

UNDERWRITING


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IL&FSFinancialCentre,PlotC22-GBlock,BandraKurlaComplex,Bandra(East),Mumbai:-400051.TelephoneNumber:-:6932666

Website:www.hdfcinsurance.com

Brief profile of the Board of Directors

Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman ofHousing Development Finance Corporation Limited (HDFC Limited). He joined HDFCLimited in a senior management position in 1978. He was inducted as a whole-timedirector of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993.

He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Instituteof Chartered Accountants (England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He iscurrently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 andbecame an Executive Director in 1993. He was appointed as its Managing Director inNovember, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of Indiaand a member of the Michigan Association of Certified Public Accountants.

Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002.He has been with the Standard Life Group for 34 years holding various senior management

positions. He was appointed as the Group Chief Executive of the Standard Life Group inMarch 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland.

Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Lifegroup and is responsible for Group Operations, Asia Pacific Development, Strategy &Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined theBoard of Directors in November 2005.

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited andis responsible for overseeing Investment Process & Chief Executive Officer Function. Priorto this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK

Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBSSecurities and Managing Director International Equities. He was also responsible forEconomic and Investment Strategy research produced on a worldwide basis. Mr. Skeochjoined the Board of Directors in November 2005.

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy andChange Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain &Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director,
http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/


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Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr.Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute ofTechnology and Sciences.

Insurance products

At HDFC Standard Life offer a bouquet of insurance solutions to meet every need. We

cater to both, individuals as well as to companies looking to provide benefits to their

employees. This section gives you details of all their products.

The products launched by HDFC Standard Life can be classified asfallows

Protection Products

TERM ASSURANCE PLANLOAN COVER TERM PLAN

PERSONAL PENTION PLANUNIT LINKED PENSION PLAN

SINGLE PREMIUM WHOLE OFLIFE PLAN

ENDOWMENT ASURANCEMONEY BACK PLAN

CHILDRES PLANUNIT LINKED ENDOWMENT

YOUNG STAR PLAN

P

I

P

S


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Term Assurance Plan

Loan Cover Term Assurance Plan

Investment Products

Single Premium Whole of Life Insurance Plan

Pension Products

Personal Pension Plan

Unit Linked Pension plan

Unit Linked Pension Plus Plan

Savings Products

Endowment Assurance plan

Money Back Plan

Childrens Plan

Unit Linked Endowment Plan

Unit Linked Endowment PlusPlan

Unit Linked Young Star Plan

Unit Linked Young Star Plan


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LIFE STAGES

Your insurance need will change as your life does, from starting to work to enjoying yourgolden years and all the stages in between. Each one of these stages may pose a different

insurance need/cover for you. In this section, we have drawn up the basic life stages andhelp you analyze various insurance needs accordingly.

Stage-1

Needs

Save for a home and wedding

Tax planning

Save for golden years Young and Single

Stage-2


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Needs

Planning for home/securing your home loan liability

Save for vacation

Save for your first child Just married

Stage-3

Needs

Provide for childrens education

Safeguarding family against loan liability

Saving for post-retirement proud parents

Stage-4

Needs

Provide for regular income post retirement

Immediate tax benefit

Lead a secure, independent and comfortableLife style in your retirement years retirement

PRODUCT FEATURES

Unit linked endowment plan

An outstanding investment opportunity by providing a choice of thoroughly

researched and selected investments

Valuable protection to your family in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover


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Access to your accumulated fund before maturity

Unit linked endowment plus plan


researched and selected investments Regular Loyalty Units to boost your fund value every year

Valuable protection to your family in case you are not around




Unit linked pension plan


researched and selected investments A post retirement income for life

Flexibility to plan your retirement date

Freedom to invest premiums as per your preference

Unit linked pension plus plan

An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investments

Regular Loyalty Units to boost your fund value every year

A post retirement income for life

Flexibility to plan your retirement date

Freedom to invest premiums as per your preference

Unit linked young star plan


Valuable protection to your child in case you are not around




Unit linked young star plus plan



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Regular Loyalty Units to boost your fund value every year

Valuable protection to your child in case you are not around




Childrens plan

Invaluable financial support to your child

A choice to customize an ideal plan for your child

Multiple options for multiple benefits

Endowment assurance plan

An ideal way to secure your long-term financial goals

Valuable protection to your family by way of lump sum payment in case of yourunfortunate demise within policy term

Lump sum payment (basic Sum Assured plus any bonus additions) on survival upto maturity date

Very flexible benefit options and payment options

Loan cover term assurance plan

An ideal way to secure the financial future of your loved ones.

High cover at a very nominal cost plus an option of adding optional benefits to

cover for other eventualities. A choice of two plans depending on your requirements:

HDFC Term Assurance Plan : A pure risk cover plan, which gives you protectionagainst the uncertainties of life.

HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loanor other loan liabilities.

Choice of premium payment options-regular premium or a single one-timepremium.

Choice of taking the plan on a single life basis or a joint life (first claim) basis.

Money back plan


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A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervalswithin the policy term (see the table given below) an ideal way to secure your long-term as well as short-term financial goals.

A lump sum payment on survival up to maturity date.

Valuable protection to your family by way of lump sum payment in case of yourunfortunate death within the policy term. This is over and above any earlier payouts.

Single premium hole of life plan

Whole of life plan aimed at providing long-term real growth of your money

Single premium investment plan

In case of your unfortunate demise during the policy term, this participating (WithProfits) insurance plan will pay your family the Sum Assured and compoundReversionary Bonuses, which are usually added annually. An additional TerminalBonus may be paid depending on the performance of the underlying investments

During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as atthe date of surrender

Term assurance plan

An ideal way to secure the financial future of your loved ones.

High cover at a very nominal cost plus an option of adding optional benefits tocover for other eventualities.

A choice of two plans depending on your requirements:

HDFC Term Assurance Plan : A pure risk cover plan, which gives you protectionagainst the uncertainties of life.

HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loanor other loan liabilities.

Choice of premium payment options-regular premium or a single one-timepremium.

Choice of taking the plan on a single life basis or a joint life (first claim) basis.


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Investment Philosophy

As a life insurance company, they understand that customers have invested their savingswith them for the long term, with specific objectives in mind like protection for the familyin case of death of family member, child education and marriage liabilities or just

investment returns over a longer period of time.

With the above in mind, their investment focus is based on the primary objective ofprotecting and generating good and consistent investment returns to match the investorslong term objective and return expectations.

Their investment success is therefore based on teamwork guided by a robust and repeatableinvestment process.

Investment process

They are an active manager, with the belief that over the medium and longer term,they will be able to outperform the benchmark, which will in turn benefit their policyholders.

High quality research is therefore key to achieving this out-performance. While anindividual stock or sector or asset class can be influenced by sentiment, liquidity or othersuch factors in the short term, over the long term market prices are based on fundamentalvalues. For this reason, we follow an investment process that is based on the fundamentalevaluation of each individual security. We have access to the best internal and externaldata available and are always looking for new sources of high quality information.

The Investment Committee of HDFC Standard Life comprises top management ofHDFC Group and HDFC Standard Life and plays a pivotal role in defining long terminvestment policies, strategic asset allocation and monitoring the Investment teamperformance on a continuous basis.

The Investment decision making process is defined and has clear responsibilitiesand discretion articulated at various levels. Key elements to the investment process includeasset allocation, stock selection, portfolio construction, risk management and dealing.

Risk management

Risk management is a critical function in the investment process and is monitored atmultiple levels like fund risk, operational risk, market risk and stock/instrument specificrisk. We also believe that discipline is critical in managing funds over a longer tenure. Wehave therefore set different bench marks for the funds we manage and fund performance isclosely monitored against the set benchmarks. We strive to generate higher risk-adjustedreturns over a longer period of time.


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To sum up, our endeavor is to generate for our policyholders, consistent, risk-adjustedreturns in a disciplined and repeatable manner with the aim of beating the definedbenchmarks by active fund management.

ABOUT COMPETETORS

ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was incorporated on July 20,2000. The authorized capital of the company is Rs.2300 Million and the paid up capital isRs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK(26%).

The Company was granted Certificate of Registration for carrying out LifeInsurance business, by the Insurance Regulatory and Development Authority on November

24, 2000. It commenced commercial operations on December 19, 2000, becoming one ofthe first few private sector players to enter the liberalized arena.

The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata,Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut,Mangalore and Ludhiana.

Till March 31,2002 the Company has issued 100,000 polices translating into aPremium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000Million.

The Company recognizes that the driving force for gaining sustainable competitiveadvantage in this business is superior customer experience and investment behind thebrand. The Company aims to achieve this by striving to provide world class service levelsthrough constant innovation in products, distribution channels and technology baseddelivery. The Company has already taken significant steps to achieve this goal..

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominantnew insurer in the life insurance industry. This they hope to achieve through theircommitment to excellence, focus on service, speed and innovation, and leveraging ourtechnological expertise.

The success of the organisation will be founded on its strong focus on values and clarity ofpurpose. These include:

Understanding the needs of customers and offering them superior products andservice

Building long lasting relationships with their partners


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Providing an enabling environment to foster growth and learning for theiremployeesAnd above all building transparency in all our dealings.They believe that they can play a significant role in redefining and reshaping the sector.Given the quality of their parentage and the commitment of their team, they feel that tere

will be no limits to their growth.

Sponsors

ICICI Ltd was established in 1955 by the World Bank, the Government of Indiaand the Indian Industry, to promote industrial development of India by providing projectand corporate finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financialconglomerate and has become one of the largest public financial institutions in India. ICICIhas financed all major sectors of the economy, covering 6,848 companies and 16,851

projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs 319.65 billion.

ICICI has now developed a whole range of activities to become a Universal Bank. Some ofICICI's spectrum of activities include:* Commercial Banking - ICICI Bank, India's first internet bank.* Information Technology - ICICI Infotech, transaction processing, software development* Investment Banking - ICICI Securities, one of the key players in the Indian CapitalMarkets* Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund player in India* Venture Capital - ICICI Venture, leading private equity investor with focus on IT andHealthCare

* Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products* Distribution - ICICI Capital, Distribution and Servicing of Retail Liability ProductsICICI is listed on the Indian Stock Exchanges and on the New York Stock Exchange(NYSE). On September 22, 1999, it became the first Indian company to be listed on theNYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI Bank onNYSE (symbol: IBN) on March 28, 2000.

Prudential plc:

Prudential plc was founded in 1848. Since then it has grown to become one of the largestproviders of a wide range of savings products for the individual including life insurance,

pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,and caters to the financial needs of over 10 million customers. It manages assets of overUS$ 259 billion (Rupees 11,39,600 crores in the world, the London Stock Exchange,making it one of the largest institutional investors in the UK. Prudential is focused on theinternet generation and is one of the first financial service organisations to use the interneton a fully integrated basis.


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In October 1998, Prudential launched a "branchless" bank based on the approx.) asof December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 yearscatering to over 1 million customers across 11 Asian countries.Prudential is the largest life insurance company in the United Kingdom (Source : S&P'sUK Life Financial Digest, 1998). Asia has always been an important region for Prudential

and it has had a presence in Asia for over 75 years. In fact Prudential's first overseasoperation was in India, way back in 1923 to establish Life and General Branch agencies.

In the US, Prudential owns Jackson National Life, one of the leading life insurancecompanies. Prudential controls approximately 4% of all the listed shares on the secondlargest stock exchange internet. Unusually titled as " egg:|". The bank has in a short span ofits existence become a leading banking service provider in the UK. Infect in the first sixmonths of its existence it garnered over 5 billion (US$ 8 billion) in deposits from over500,000 customers.

Development of superior products and services that offer value for money and

security while producing superior financial returns, enables Prudential to maximise thevalue of its shareholder's investment and to establish lasting relationships with customersand policy holders.

ICICI and Prudential came together in 1993 to provide mutual fund products inIndia and today are the largest private sector mutual fund company in India. The twocompanies bring together two of the strongest financial service brands in Asia known fortheir professionalism, excellent quality of service and long term commitmen.

SBI Life Insurance Company Limited

SBI Life Insurance Co. Ltd. is a joint venture between State Bank of India andCardif S.A. of France. We are a registered life insurance company.

SBI is a household name, and it stands as the last word for financial strength andsecurity in the country.

SBI's illustrious background dates back to the year 1806 when it started business asa presidency bank known as Bank of Bengal. Over the long journey, it has learnt tocombine the best of banking practices handed down from the imperial management withthe more dynamic ways of doing banking in the modern India.

It has grown as a responsible giant in the banking field over the years. Today, it hasa branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821crore (US$45,121mm) and a total balance sheet size of Rs.261504 crore (US59,950 mm).Together with its 7 Associate Banks, SBI commands about 30% of the market share inbanking.


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SBI is the strongest and most profitable bank in the country. It has a tangible networth of Rs.12146 crore (US$2,784mm) as at March 2000, and it earned a pre-tax profit ofRs.2051 crore (US$470 mm) for the fiscal ending that date.

Cardif is a wholly owned subsidiary of BNP Paribas, which is one of the top 10

banks in the world, and the third largest in Europe. BNP is one of the oldest foreign bankswith a presence in India dating back to 1860. It has 9 branches in major metros in thecountry.

Cardif came into being in 1973. It has grown over the years into a vibrant insurancecompany specialising in personal lines such as long-term savings, protection products andcreditor insurance. Cardif had a premium income of over US$ 4 billion in 1999, and morethan US$ 23 billion of funds under its management.

Cardif has been specialising in the art of selling insurance products throughcommercial banks in France and 23 other countries.

France is the mother of bancassurance in the world. Over 65% of life insurancebusiness is done through banks and financial institutions' counters in France, and the trendis rapidly catching up in other countries.

t operates joint ventures in developed as well as developing countries, such asBrazil, Chile and the Czech Republic.

SBI Life Insurance Company Ltd is registered as a life insurance company with theInsurance Regulator. The Company's authorised capital is Rs.250 crore, and the paid-upcapital at present is Rs.125 crore.

SBI owns 74% of the total equity, and Cardif the balance 26%.

Mission Statement

To emerge as the leading company offering a comprehensive range of life insuranceand pension products at competitive prices, ensuring high standards of customersatisfaction and world class operating efficiency, and become a model life insurancecompany in India in the post liberalisation period.

Investment Philosophy

As a life insurance company, they understand that customers have invested their savingswith them for the long term, with specific objectives in mind like protection for the family


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in case of death of family member, child education and marriage liabilities or justinvestment returns over a longer period of time.

With the above in mind, their investment focus is based on the primary objective ofprotecting and generating good and consistent investment returns to match the investors

long term objective and return expectations.

Their investment success is therefore based on teamwork guided by a robust and repeatableinvestment process.

Investment process

They are an active manager, with the belief that over the medium and longer term,they will be able to outperform the benchmark, which will in turn benefit their policyholders.

High quality research is therefore key to achieving this out-performance. While anindividual stock or sector or asset class can be influenced by sentiment, liquidity or othersuch factors in the short term, over the long term market prices are based on fundamentalvalues. For this reason, we follow an investment process that is based on the fundamentalevaluation of each individual security. We have access to the best internal and externaldata available and are always looking for new sources of high quality information.

The Investment Committee of HDFC Standard Life comprises top management ofHDFC Group and HDFC Standard Life and plays a pivotal role in defining long terminvestment policies, strategic asset allocation and monitoring the Investment teamperformance on a continuous basis.

The Investment decision making process is defined and has clear responsibilitiesand discretion articulated at various levels. Key elements to the investment process includeasset allocation, stock selection, portfolio construction, risk management and dealing.

Risk management

Risk management is a critical function in the investment process and is monitored atmultiple levels like fund risk, operational risk, market risk and stock/instrument specificrisk. We also believe that discipline is critical in managing funds over a longer tenure. Wehave therefore set different bench marks for the funds we manage and fund performance is

closely monitored against the set benchmarks. We strive to generate higher risk-adjustedreturns over a longer period of time.

To sum up, our endeavor is to generate for our policyholders, consistent, risk-adjustedreturns in a disciplined and repeatable manner with the aim of beating the definedbenchmarks by active fund management.


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ABOUT COMPETETORS

ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was incorporated on July 20,

2000. The authorized capital of the company is Rs.2300 Million and the paid up capital isRs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK(26%).

The Company was granted Certificate of Registration for carrying out LifeInsurance business, by the Insurance Regulatory and Development Authority on November24, 2000. It commenced commercial operations on December 19, 2000, becoming one ofthe first few private sector players to enter the liberalized arena.

The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata,Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut,

Mangalore and Ludhiana.

Till March 31,2002 the Company has issued 100,000 polices translating into aPremium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000Million.

The Company recognizes that the driving force for gaining sustainable competitiveadvantage in this business is superior customer experience and investment behind thebrand. The Company aims to achieve this by striving to provide world class service levelsthrough constant innovation in products, distribution channels and technology baseddelivery. The Company has already taken significant steps to achieve this goal..

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominantnew insurer in the life insurance industry. This they hope to achieve through theircommitment to excellence, focus on service, speed and innovation, and leveraging ourtechnological expertise.

The success of the organisation will be founded on its strong focus on values and clarity ofpurpose. These include:

Understanding the needs of customers and offering them superior products andservice

Building long lasting relationships with their partnersProviding an enabling environment to foster growth and learning for their

employeesAnd above all building transparency in all our dealings.They believe that they can play a significant role in redefining and reshaping the sector.Given the quality of their parentage and the commitment of their team, they feel that terewill be no limits to their growth.


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Sponsors

ICICI Ltd was established in 1955 by the World Bank, the Government of Indiaand the Indian Industry, to promote industrial development of India by providing projectand corporate finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financialconglomerate and has become one of the largest public financial institutions in India. ICICIhas financed all major sectors of the economy, covering 6,848 companies and 16,851projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs 319.65 billion.

ICICI has now developed a whole range of activities to become a Universal Bank. Some ofICICI's spectrum of activities include:* Commercial Banking - ICICI Bank, India's first internet bank.* Information Technology - ICICI Infotech, transaction processing, software development

* Investment Banking - ICICI Securities, one of the key players in the Indian CapitalMarkets* Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund player in India* Venture Capital - ICICI Venture, leading private equity investor with focus on IT andHealthCare* Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products* Distribution - ICICI Capital, Distribution and Servicing of Retail Liability ProductsICICI is listed on the Indian Stock Exchanges and on the New York Stock Exchange(NYSE). On September 22, 1999, it became the first Indian company to be listed on theNYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI Bank onNYSE (symbol: IBN) on March 28, 2000.

Prudential plc:

Prudential plc was founded in 1848. Since then it has grown to become one of the largestproviders of a wide range of savings products for the individual including life insurance,pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries,and caters to the financial needs of over 10 million customers. It manages assets of overUS$ 259 billion (Rupees 11,39,600 crores in the world, the London Stock Exchange,making it one of the largest institutional investors in the UK. Prudential is focused on theinternet generation and is one of the first financial service organisations to use the interneton a fully integrated basis.

In October 1998, Prudential launched a "branchless" bank based on the approx.) asof December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 yearscatering to over 1 million customers across 11 Asian countries.Prudential is the largest life insurance company in the United Kingdom (Source : S&P'sUK Life Financial Digest, 1998). Asia has always been an important region for Prudentialand it has had a presence in Asia for over 75 years. In fact Prudential's first overseasoperation was in India, way back in 1923 to establish Life and General Branch agencies.


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In the US, Prudential owns Jackson National Life, one of the leading life insurancecompanies. Prudential controls approximately 4% of all the listed shares on the secondlargest stock exchange internet. Unusually titled as " egg:|". The bank has in a short span ofits existence become a leading banking service provider in the UK. Infect in the first six

months of its existence it garnered over 5 billion (US$ 8 billion) in deposits from over500,000 customers.

Development of superior products and services that offer value for money andsecurity while producing superior financial returns, enables Prudential to maximise thevalue of its shareholder's investment and to establish lasting relationships with customersand policy holders.

ICICI and Prudential came together in 1993 to provide mutual fund products inIndia and today are the largest private sector mutual fund company in India. The twocompanies bring together two of the strongest financial service brands in Asia known for

their professionalism, excellent quality of service and long term commitmen.

SBI Life Insurance Company Limited

SBI Life Insurance Co. Ltd. is a joint venture between State Bank of India andCardif S.A. of France. We are a registered life insurance company.

SBI is a household name, and it stands as the last word for financial strength andsecurity in the country.

SBI's illustrious background dates back to the year 1806 when it started business as

a presidency bank known as Bank of Bengal. Over the long journey, it has learnt tocombine the best of banking practices handed down from the imperial management withthe more dynamic ways of doing banking in the modern India.

It has grown as a responsible giant in the banking field over the years. Today, it hasa branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821crore (US$45,121mm) and a total balance sheet size of Rs.261504 crore (US59,950 mm).Together with its 7 Associate Banks, SBI commands about 30% of the market share inbanking.

SBI is the strongest and most profitable bank in the country. It has a tangible net

worth of Rs.12146 crore (US$2,784mm) as at March 2000, and it earned a pre-tax profit ofRs.2051 crore (US$470 mm) for the fiscal ending that date.

Cardif is a wholly owned subsidiary of BNP Paribas, which is one of the top 10banks in the world, and the third largest in Europe. BNP is one of the oldest foreign bankswith a presence in India dating back to 1860. It has 9 branches in major metros in thecountry.


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Cardif came into being in 1973. It has grown over the years into a vibrant insurancecompany specialising in personal lines such as long-term savings, protection products andcreditor insurance. Cardif had a premium income of over US$ 4 billion in 1999, and morethan US$ 23 billion of funds under its management.

Cardif has been specialising in the art of selling insurance products throughcommercial banks in France and 23 other countries.

France is the mother of bancassurance in the world. Over 65% of life insurancebusiness is done through banks and financial institutions' counters in France, and the trendis rapidly catching up in other countries.

t operates joint ventures in developed as well as developing countries, such asBrazil, Chile and the Czech Republic.

SBI Life Insurance Company Ltd is registered as a life insurance company with the

Insurance Regulator. The Company's authorised capital is Rs.250 crore, and the paid-upcapital at present is Rs.125 crore.

SBI owns 74% of the total equity, and Cardif the balance 26%.

Mission Statement

To emerge as the leading company offering a comprehensive range of life insuranceand pension products at competitive prices, ensuring high standards of customersatisfaction and world class operating efficiency, and become a model life insurancecompany in India in the post liberalisation period.

COMPETITORS OF HDFC SLIC.-

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.


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6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited.

8 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

9 117 06.08.2001 MetLife India Insurance Company Pvt. Ltd.

10 121 03.01.2002 AMP Sanmar Life Insurance Company Limited.

11 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

12 127 06.02.2004 Sahara Indi Insurance Company Ltd.

Reliance Life Insurance - Formerly known as AMP Sanmar LIC

ING Vysya Life Insurance

Sahara Life Insurance - Now they are not into business

Shriram Life Insurance


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REFERENCES:-

Glossary of terms used:-

Agent:-an insurance company representative licensed by the state who

solicits, negotiates, or effects contracts of insurance and provides service

to the policy holder for the insurer.

ASSETS:- things of value owned by the company.

Attained age: the current age of the insured.

Beneficiary: the person or the party the owner of an insurance policy

Names to receive the policy benefit if the event insured against occurs.

Bonuses:- The distributable surplus paid to policy owners(also known

as dividends)

Contract:- A legally enforceable agreement between two or more

parties.

Disability income insurance:- A Form of health insurance that

provides periodic payments to replace income when an insured person

is unable to work as a result of illness , injury, or disease.


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Eligibility period:-A specified length of time, frequently ninety days up

to one year, following the eligibility date during which an individual

member of a particular group will remain eligible to apply for insurance

under a group health insurance policy without evidence of

insuperability.

LIST OF ABBREVIATIONS

GIC: General Insurance Corporation of

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