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

A FINAL REPORT ON A CRITICAL STUDY ON MARKET EXPANSION STRATEGIES 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: B. VENKATESWARA RAO ICFAI NATIONAL COLLEGE, DILSHUKNAGAR, HYDERABAD. Company guide: MR. ARAVIND BRANCH DEVELOPMENT MANAGER, KOTTAPET, HYDERABAD.

CERTIFICATE

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

A CRITICAL STUDY ON MARKET EXPANSION STRATEGIES 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 fulfillment of the requirement for the award of MBA Degree. The student has carried out the project work for a period of four months from 19th Mar, 2007 to 7th July, 2007 in HDFC Standard Life Insurance Company. He was involved in marketing of HDFC Standard Life Insurance Companys products and recruiting Financial Consultants. I am pleased to record here that his performance during the period was extremely satisfactory and good. I wish him good luck for his future endeavor.

HDFC STANDARD LIFE INSURANCE

B. ARAVIND
BRANCH MANAGER

ICFAI NATIONAL COLLEGE 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 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.6ND03849 INCVijayawada ) in partial fulfillment of the requirement for the award Master of Business Administration During the academic Year 2006-08.

Place: HYDERABAD Date : / / 2007

PRINCIPAL

ICFAI NATIONAL COLLEGE 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 INCVijayawada) 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

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

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:-

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:

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

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

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 together to share the losses suffered by a few. Since the individuals who are going to suffer the loss are not known all the policyholders are protected in case they become the victims of the insured event. Thus insurance is a means of sharing of the risk.

Insurance is broadly classified as

o o

Life Insurance 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 burden of loss. The risk is also uncertain, as it becomes easier for any individual to guard himself against certain events. The individual is left with no other option than to deal with the event, as in most cases 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 the similar risk in the same period.

Subject matter of Insurance

When a person insurance his car the subject of the insurance is the car. What the insurance company guarantees is that in case of a financial loss due to an uncertain event then the company would compensate to the extent of the loss subject to the condition that the person has 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 life either, as life too cannot be compensated. Life insurance aims to compensate the Income Earning Capacity of the person. When we say Insurance we are only talking of Pure insurance 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 are uncertain events. Since, insurance is all about compensation of financial loss on the happening of an uncertain event, Death, Sickness and Accident are covered under life insurance. Whereas, Retirement is a certain event. You dont have a solution for certain events 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. Life insurance 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 an individual. Life insurance offers protection for the loss of income earning capacity due to Death, Accident and Sickness. Retirement on the other hand is a certain event. A certain event cannot be insured at all. The only alternative left for the person is to save for retirement. All the lives assured would definitely retire hence insurance cannot be offered for retirement. Income earning capacity is affected on retirement. The retirement plans are therefore savings plans, which help a person, save for the retirement.

PRINCIPLES OF INSURANCE

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 loss sustained by an individual be made good by the insurance company. In insurance other than life insurance or accident insurance the principle of indemnity is involved, by which one 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 good by insurance. Hence, a life insurance contract is, not contract of indemnity.

Principle of Utmost Good Faith

Life 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) to voluntarily disclose all the material facts that are relevant. These information is required by 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 of material 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 it becomes a gambling contract. Insurable interest is necessary for a valid contract of insurance (both life as well as non-life). In life insurance, the person who is to benefit from the proceeds of insurance must be in such relationship to the insured as to have a real interest in the continued life of the insured. There must be a reasonable ground, either pecuniary or based on affinity, to expect some benefit or advantage from the continuance of the life of the life assured. This real interest is partly compensated for by the proceeds of the insurance when the life assured dies. Any other basis would involve an element of gambling.

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.

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 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. law of large

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.

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 stamp duty 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.

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.

OBJECTIVES:
To assimilate the corporate culture which is not acquired only by reading Books? To sell as many Insurance policies of HDFC standard life insurance company as 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)

CHAPTER-II

INDUSTRY PROFILE

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 along with 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 tieups 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 and New 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.

Towards the end of the 19 th 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).

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.

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%

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, a National Reinsurer)

GIC had four subsidary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies. 1. 2. 3. 4. The Oriental Insurance Company Limited The New India Assurance Company Limited, National Insurance Company Limited United India Insurance Company Limited.

The top insurance player in insurance sector Whoever has more money wins
Company Indian promoter Reliance Group Dabur Bajaj Auto Aditya birla group HDFC ICICI bank Vysya bank Kotak Mahindra bank Max India Jammu and Kashmir Sahara India SBI Foreign insurance None Aviva, UK Allianz, Germany Sun life, Canada Standard life, UK Prudential, UK ING insurance, the Nether Lands Old mutual, South Africa. Total capital(Rs crores) 217 459 368 400 250 1085 440 260 FDI % Foreign capital ( Rs crore) 0 119.34 98 104 47 282 68 68 130 92 0 91 Market share based on premium 0.54 1.12 6.12 1.84 2.96 7.11 0.63 0.71 1.32 0.40 0.80 1.52

AMP sanmar + Aviva life Baja allianz Birla sun life HDFC standard ICICI prudential ING Vysya Kotak Mahindra, old mutual, Max New York Met life Sahara Life insurance SBI life

0 26 26 26 18.9 26 26 26 26 26 0 26

New York life, 500 US Met life, US 355 None Cardiff, 100 350

Tata AIG Total

Tata Group

France AIG, US 5,165

381

26

99 1,196.34

1.78

General Insurers : S.No. 1 2 Registration Date of Name of the Company Number Registration 102 103 23.10.2000 23.10.2000 Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited.

3 4 5 6

106 108 113 115

04.12.2000 22.01.2001 02.05.2001 03.08.2001

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 Date of Number Reg. 1 121 Name of the Company

03.01.2002 AMP Sanmar Life Insurance Company Limited.

122

14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers : S.No. 1 2. 3. Registration Date of Name of the Company Number Registration 123 124 125 15.07.2002 27.08.2002 27.08.2002 Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004 : ( From 1st Jan 2003 till Date) Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. Registration Date of Number Reg. 1 127 Name of the Company

06.02.2004 Sahara India Insurance Company Ltd.

Yr: 2004-2005 : Insurance Industry in this year, so far has 1new entrants; namely Life Insurers: S.No. Registration Date of Number Reg. 1 128 Name of the Company

17.11.2005 Shriram Life Insurance Company Ltd.

Trends: MILESTONES OF INSURANCE REGULATIONS IN

THE 20TH CENTURY

Year 1912 1928 Significant Regulatory Event The Indian Life Insurance Company Act The Indian Insurance Companies Act enabled the Government to collect statistical information about both life and non-life insurance businesses. 1938 1956 The Insurance Act: Comprehensive Act to regulate insurance business in India. 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 1993 1994 1995 1997 Nationalization of general insurance business in India Setting up of Malhotra Committee Recommendations of Malhotra Committee Setting up of Mukherjee Committee 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 2000 Cabinet clears IRDA Bill President gives assent to the IRDA Bill

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

Continuing the trend that essentially began 30 years ago, insurance Companies 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.

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.

CHAPTER -III

COMPANY PROFILE

Introduction Helping Indians experience the joy of home ownership. The road to success is a tough and challenging journey in the dark where only obstacles light 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 customer satisfaction. All you need is the courage to innovate, the skill to understand your clientele and the desire to give them your best Today, nearly three million satisfied customers whose dream we helped realise, stand testimony 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 property related services and a training facility. We also offer specialised financial services to our customer base through partnerships with some of the best financial institutions worldwide.

HDFC GROUP

HDFC LIMITED Founded in 1977, it is Indias largest housing finance institution with an asset base of over Rs. 15,000 crore. It has helped finance over 15 laks homes through 84 branches in India, 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. HDFC Limited has over 11 lakh depositors and over 46,000 deposit agents. Over the years, it has won many awards and accolades, and has promoted several group companies to meet investors and customers needs.

STANDARD LIFE ASSURANCE COMPANY (SLAC): Founded in 1825, this is Europes largest mutual life insurance company. Standard Life has total group assets under management of Rs. 5,89,000 crore and New Premium Income 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 recently voted Company of the Decade by independent financial advisors in U.K.

The Partnership:
HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

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

Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the first life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. 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

Incorporation of HDFC Standard Life Insurance Company Limited:

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as 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 Standard Life Insurance Company Limited. Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC 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 and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured.

Our key strengths

Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions We have a range of individual and group solutions, which can be easily 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.

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 MENAS THAT WE ARE THE MOST TRUSTED COMPANY, THE EASIEST TODEAL WITH ,OFFER THE 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 be our constant Endeavour. We will be do this by offering life insurance and pension products.

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

INNOVATION: Recognising the different needs of our customers, we will be offering 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 values that will guide them in this.

ORGANIZATION STRUCTURE
MD & CEO

GENERAL SALES & MARKET

HOD- IT

HODLEAGAL & SECRETARIA

GM FINANCE & ACTORIAL

HOD-HR

GM OPERATIONS& UNDDERWRITI NG

RETAIL SALES NORTH

ZONAL MANAGERS-6

RETAIL SALES SOUTH

ZONAL MANAGERS-6

INSTITUTIONAL SALES

ACCOUNTS
CHANNEL DEVELOPMENT & SALES TRAINING

OPERATIONS

MEDICAL MARKETING

UNDERWRITING

Corporate Office:

ACTUARIAL

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

Brief profile of the Board of Directors

is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Mr. Deepak S Parekh

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

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 in March 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 Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to 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 HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.
Mr. Keith N Skeoch

is a global Management Consultant advising CEO/Boards on Strategy and Change 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,
Mr. Ranjan Pant

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 of Technology 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 as fallows

TERM ASSURANCE PLAN LOAN COVER TERM PLAN

P
SINGLE PREMIUM WHOLE OF LIFE PLAN

I P S

PERSONAL PENTION PLAN UNIT LINKED PENSION PLAN

Protection Products

ENDOWMENT ASURANCE MONEY BACK PLAN CHILDRES PLAN UNIT LINKED ENDOWMENT YOUNG STAR PLAN

 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 Plus Plan Unit Linked Young Star Plan Unit Linked Young Star Plan

LIFE STAGES
Your insurance need will change as your life does, from starting to work to enjoying your golden 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 and help 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

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 comfortable Life 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

Access to your accumulated fund before maturity

Unit linked endowment plus plan

An outstanding investment opportunity by providing a choice of thoroughly 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 Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity

Unit linked pension plan

An outstanding investment opportunity by providing a choice of thoroughly 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 thoroughly researched 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

An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity

Unit linked young star plus plan

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

Regular Loyalty Units to boost your fund value every year Valuable protection to your child in case you are not around Flexible benefit combinations and payment options Flexible additional benefit options such as critical illness cover Access to your accumulated fund before maturity

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 your unfortunate demise within policy term Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to 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 protection against the uncertainties of life. HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loan or other loan liabilities. Choice of premium payment options-regular premium or a single one-time premium. Choice of taking the plan on a single life basis or a joint life (first claim) basis.

Money back plan

A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals within the policy term (see the table given below) an ideal way to secure your longterm 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 your unfortunate 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 (With Profits) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus 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 at the 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 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 protection against the uncertainties of life. HDFC Loan Cover Term Assurance Plan : An ideal way to cover your home loan or other loan liabilities. Choice of premium payment options-regular premium or a single one-time premium. Choice of taking the plan on a single life basis or a joint life (first claim) basis.

Investment Philosophy
As a life insurance company, they understand that customers have invested their savings with them for the long term, with specific objectives in mind like protection for the family in 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 of protecting 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 repeatable investment 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 policy holders. High quality research is therefore key to achieving this out-performance. While an individual stock or sector or asset class can be influenced by sentiment, liquidity or other such factors in the short term, over the long term market prices are based on fundamental values. For this reason, we follow an investment process that is based on the fundamental evaluation of each individual security. We have access to the best internal and external data available and are always looking for new sources of high quality information. The Investment Committee of HDFC Standard Life comprises top management of HDFC Group and HDFC Standard Life and plays a pivotal role in defining long term investment policies, strategic asset allocation and monitoring the Investment team performance on a continuous basis. The Investment decision making process is defined and has clear responsibilities and discretion articulated at various levels. Key elements to the investment process include asset allocation, stock selection, portfolio construction, risk management and dealing.

Risk management
Risk management is a critical function in the investment process and is monitored at multiple levels like fund risk, operational risk, market risk and stock/instrument specific risk. We also believe that discipline is critical in managing funds over a longer tenure. We have 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-adjusted returns over a longer period of time.

To sum up, our endeavor is to generate for our policyholders, consistent, risk-adjusted returns in a disciplined and repeatable manner with the aim of beating the defined benchmarks 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 is Rs. 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 Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the 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 a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. 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 dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include: Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners

Providing an enabling environment to foster growth and learning for their employees And 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 India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has 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 of ICICI'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 Capital Markets * 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 and HealthCare * Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products * Distribution - ICICI Capital, Distribution and Servicing of Retail Liability Products ICICI 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 the NYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI Bank on NYSE (symbol: IBN) on March 28, 2000. Prudential plc: Prudential plc was founded in 1848. Since then it has grown to become one of the largest providers 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 over US$ 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 the internet generation and is one of the first financial service organisations to use the internet on a fully integrated basis.

In October 1998, Prudential launched a "branchless" bank based on the approx.) as of December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK 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 overseas operation 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 insurance companies. Prudential controls approximately 4% of all the listed shares on the second largest stock exchange internet. Unusually titled as " egg:|". The bank has in a short span of its 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 over 500,000 customers. Development of superior products and services that offer value for money and security while producing superior financial returns, enables Prudential to maximise the value of its shareholder's investment and to establish lasting relationships with customers and policy holders. ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. The two companies 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 and Cardif 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 and security 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 to combine the best of banking practices handed down from the imperial management with the 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 has a branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore (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 in banking.

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 of Rs.2051 crore (US$470 mm) for the fiscal ending that date. Cardif is a wholly owned subsidiary of BNP Paribas, which is one of the top 10 banks in the world, and the third largest in Europe. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9 branches in major metros in the country. Cardif came into being in 1973. It has grown over the years into a vibrant insurance company specialising in personal lines such as long-term savings, protection products and creditor insurance. Cardif had a premium income of over US$ 4 billion in 1999, and more than US$ 23 billion of funds under its management. Cardif has been specialising in the art of selling insurance products through commercial banks in France and 23 other countries. France is the mother of bancassurance in the world. Over 65% of life insurance business is done through banks and financial institutions' counters in France, and the trend is rapidly catching up in other countries. t operates joint ventures in developed as well as developing countries, such as Brazil, 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-up capital 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 insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalisation period.

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

in 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 of protecting 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 repeatable investment 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 policy holders. High quality research is therefore key to achieving this out-performance. While an individual stock or sector or asset class can be influenced by sentiment, liquidity or other such factors in the short term, over the long term market prices are based on fundamental values. For this reason, we follow an investment process that is based on the fundamental evaluation of each individual security. We have access to the best internal and external data available and are always looking for new sources of high quality information. The Investment Committee of HDFC Standard Life comprises top management of HDFC Group and HDFC Standard Life and plays a pivotal role in defining long term investment policies, strategic asset allocation and monitoring the Investment team performance on a continuous basis. The Investment decision making process is defined and has clear responsibilities and discretion articulated at various levels. Key elements to the investment process include asset allocation, stock selection, portfolio construction, risk management and dealing.

Risk management
Risk management is a critical function in the investment process and is monitored at multiple levels like fund risk, operational risk, market risk and stock/instrument specific risk. We also believe that discipline is critical in managing funds over a longer tenure. We have 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-adjusted returns over a longer period of time. To sum up, our endeavor is to generate for our policyholders, consistent, risk-adjusted returns in a disciplined and repeatable manner with the aim of beating the defined benchmarks 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 is Rs. 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 Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the 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 a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. 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 dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include: Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees And 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 India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has 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 of ICICI'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 Capital Markets * 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 and HealthCare * Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products * Distribution - ICICI Capital, Distribution and Servicing of Retail Liability Products ICICI 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 the NYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI Bank on NYSE (symbol: IBN) on March 28, 2000. Prudential plc: Prudential plc was founded in 1848. Since then it has grown to become one of the largest providers 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 over US$ 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 the internet generation and is one of the first financial service organisations to use the internet on a fully integrated basis. In October 1998, Prudential launched a "branchless" bank based on the approx.) as of December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK 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 overseas operation 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 insurance companies. Prudential controls approximately 4% of all the listed shares on the second largest stock exchange internet. Unusually titled as " egg:|". The bank has in a short span of its 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 over 500,000 customers. Development of superior products and services that offer value for money and security while producing superior financial returns, enables Prudential to maximise the value of its shareholder's investment and to establish lasting relationships with customers and policy holders. ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. The two companies 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 and Cardif 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 and security 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 to combine the best of banking practices handed down from the imperial management with the 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 has a branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore (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 in banking. 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 of Rs.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 banks with a presence in India dating back to 1860. It has 9 branches in major metros in the country.

Cardif came into being in 1973. It has grown over the years into a vibrant insurance company specialising in personal lines such as long-term savings, protection products and creditor insurance. Cardif had a premium income of over US$ 4 billion in 1999, and more than US$ 23 billion of funds under its management. Cardif has been specialising in the art of selling insurance products through commercial banks in France and 23 other countries. France is the mother of bancassurance in the world. Over 65% of life insurance business is done through banks and financial institutions' counters in France, and the trend is rapidly catching up in other countries. t operates joint ventures in developed as well as developing countries, such as Brazil, 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-up capital 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 insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalisation period.

COMPETITORS OF HDFC SLIC.S.No. Registration Number 1 2 3 4 5 101 104 105 107 109 Date of Reg. Name of the Company

23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 7 8 9 10 11 12

110 111 116 117 121 122 127

12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited. 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 MetLife India Insurance Company Pvt. Ltd. 03.01.2002 AMP Sanmar Life Insurance Company Limited. 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd. 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

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:parties. Disability income insurance:- A Form of health insurance that A legally enforceable agreement between two or more

provides periodic payments to replace income when an insured person is unable to work as a result of illness , injury, or disease.

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 India.

IRDA:

Insurance Regulatory Development Authority.

ING: LIC: NBFCs: MFL: PVT.LTD: NMB: HDFC: SLIC:

International Netherlands Group. Life Insurance Corporation Of India. Non- Banking Financial Company . Madras Fertilizers. Private Limited. New Millennium Bank. HOUSING DEVELOPMENT FINANCE CARPORATION. STANDARD LIFE INSURANCE COMPANY.

FEATURE READINGS

Books Referred INSURANCE CHRONICLE-Jan2006-July2006 Marketing Management by Philip Kotler Investment Analysis and portfolio management by Prasanna Chandra. Some Information gathered from the company broachers Websites www.hdfcinsurance. com www.google.com

www.irda.com www.einsuranceprofessional.com

PART-II

Executive Training (E.T)

Executive training is the platform where we practically expose ourselves to the corporates. It is the first phase of entering into the actual work environment. Learning through work experience is the executive training.

OBJECTIVE:
The objective of the Executive training (E.T) is to get exposure to corporate Environment, to get the experience and to gain knowledge and skills in the work place rather than in a formal class room setting.. It gives us the experience of handling tasks and targets. It gives a just around the corner knowledge that, How to build the strategies to achieve the tasks and targets given by the company. We will get the experience of handling the customers, convincing the customers to accept or purchase our concepts or products. It gives us the practical experience and gives the path to pertain what we studied in the college. The primary objective of E.T is, to know how to do the smart work along with hard work, which makes us to differentiate from others. In, the Executive training we will meet many corporate customers who may receive well or may not. We will taste all the experience with the customers and also the interaction with the customer make us to enrich the product knowledge as well as communication skill, by clarifying the doubts of the customers. When we have to command or lead the team or group we have to know the type of work and what is that work and how to achieve that work, and for all these this ET (Executive Training) is answer. It also improves the communication skills and relationship with customers and employees. This form of direct learning helps the employee understand and imbibe the training lessons better this will also help in better application of the knowledge and skills gained during training. 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 OBJECTIVES IN BRIEF To assimilate the corporate culture this is not acquired only by reading books.

To learn how to approach and convince the customer. To learn how to convince and recruit Financial consultants. To sell as many Insurance policies of HDFC standard life insurance company as possible. To know the different types of products and knowing matching of products to the needs of customers.

 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.

TARGETS AND TASKS:

I attended product training classes in order to sell the insurance policies in an effective manner for about one month. I was not assigned any target for the first month. We are given a target of recruiting 3 Financial consultants and to make 10 policies worth Rs. 75,000/- (i.e. .out SIP target is to recruit 9 Financial Consultants and make 30 Policies worth Rs. 2,25,000/-.

ACHIEVEMENTS:
I recruited one Financial Consultants. I sold two Insurance policies with a premium of Rs 25,000/

STRATEGY
People can be classified into 3 classes depending up on their income levels like lower class, middle class or upper class. Of these three classes mostly middle class show interest to join as advisors. Though the lower class people are interested, as most of them are not educated

and they do not have good social relations in the society, they are not suitable to be Financial Advisors. The literates from the middle class are capable to meet the requirements to get selected as Financial Advisors. They get attracted to the benefits offered to the advisors by the company. This draws them to join in HDFSLIC. As the upper class people are suitable to get recruited as Financial Advisors as they have relations with high profiles so they can sell big investments easily. Mostly personal contacts, references made by the personal contacts are motivated to be recruited as financial advisors. The company also gave us chance to make free phone calls form the office. Mainly to get the insurance policies personal contacts are used and references from personal contacts are also tapped. In the survey to be conducted more references can be got from the respondance of the survey. Interact regularly with middle class and upper class people and encourage them to join as HDFCSLIC.

Through survey I gathered the names and phone numbers of prospective customers. We made cold calls form the company and by personal phones to convince them and to take appointment from them. We approached them according to the time given by them to get good impression on us and policy from them. We went to our native place to convince my relatives and neighbors to make policies. We gathered the references numbers of relatives and friends who are staying near to Hyderabad and in Hyderabad from my relatives .

 I used to make phone calls to the relatives and friends to introduce us and to convince them to make policies and some to become financial consultants. I even got the references from relatives staying in Hyderabad ,of their coemployees, friends and relatives. I also asked references form people whom we met through survey. For recruiting financial consultants we approached MBA students and get their classmates phone number and make cold calls to explain about he advantages by becoming financial consultant and convince them. I pasted Xerox papers containing information of my phone number and details asking people to make phone call if they are in need of part time jobs without any investment and with flexible timing ,allover India in any month ,season,etc. We made good relations with students staying with us in hostel and slowly convinced them to become financial consultants. We also made good relations with employees who are our neighbours to our hostal and convinced them to make policies and to become financial consultants. LEARNINGS FROM EXECUTIVE TRAINING: I learned how to live in corporate culture. I also learned how to behave in corporate world. I learned about the HDFC Standard Life insurance products I learned how to interact with the staff in the company. I observed customers psychology and attitude. I learned how to approach and convince the customer. I learned how to sell Insurance policies of HDFC standard life insurance company. I learned about the different types of products and I learned matching the products to the needs of customers.

 I found the strengths and weaknesses of the Insurance sector. I learned how to manage the team . I learned how to manage the time in an effective manner.] I learned how to interact with the customers by the process of conducting a survey

Limitations in achieving targets: o o o o People are not interested to invest in private companies. In HDFC SLIC there are no short-term policies. But people are interested to Most of the people are interested to invest on Mutual Funds, Real Estate and Business people are not interested to join as Financial Advisors because

invest in short terms and want more returns. Shares. they dont have time to attend training classes. This is one of the main reasons for underperformance. o Some homemakers are not interested to join as a financial advisor because they are busy with their family activities. Strategy for over coming limitations: People are not interested to insure in private companies. Need to Educate people for that.

Mainly targeted to approach part -time jobholders and homemakers. as they have interest to earn and time to do business.

 Concentrate on target market those who have good contacts with number of persons and high profiles like gold merchants, financiers and share market executives. These persons are best suitable for financial advisors as they have good experience in marketing field and good contacts with people.

MID COURSE CORRECTION

There is no such mid course correction

LIMITATIONS
I was not well versed with the skills of selling and that to selling the intangible products like insurance and other hindrances like lack of product knowledge, lack of selection of right product to right customer, time factor, inexperience in attracting the right type of customers etc. Selling insurance is considered to be the toughest job when compared to other types of sales because in insurance we sell intangible product which cannot be

seen, it is just giving security to the people at the time of uncertainty. I faced many difficulties at the time of selling the insurance products because

There were a few limitations which were faced while contacting with the customers.

1. HDFC is a private bank 2. LIC has been the biggest competitor to them and it is an Government organization too which is since many years.

3. The other strong competitors are ICICI and BAJAJ ALLIANCE

4. Insurance is an intangible product, so selling it is not that easy.

5. A detailed knowledge of the competitor product is very much required in this field.

6. The study is conducted for a short period of 4 months 7. It is very difficult to study the competitors strategies.

8. Because of the fluctuations in the market it is a tough task. 9. There is no much awareness about the insurance in India.

FINDINGS

 Had real time experience about the concept of insurance, its market and its various products / schemes Helped in developing conversation skills to talk to the prospective investors and advisors To create awareness to customers regarding the investment and to sell premiums and insurance in market and their various schemes.

VALUE ADDITION TO SELF

VALUE ADDITION TO THE COMPANY

CONCLUSION
The main purpose of SIP is to understand the working conditions, culture, deadlines, pressure etc. of the organization. So certainly it is very helpful in understanding the said objective. Management thesis will pave the way to acquire relevant information relating to the company and the industry as a whole. The targets achieved by me till the 5th week is comparatively very low when I compare them with the assigned targets. Some of the major reasons for such a poor performance are: As the financial year is ended most of the customers are not interested to take up a new policy as they are already taken the policy keeping in view of the tax benefits. Very few persons are interested in investing their money in the private insurance companies. Awareness among the people relating to the private insurance companies is very low. Existence of good number of private insurance companies. It is a time consuming process and the results will not come immediately. Weather conditions are not conducive to work in the day time. According to the survey conducted by me I observed that nearly 90% of customers are already invested their money in ULIPs as the work is long term in nature I may not convert all the interested people in to customers in the specified time.

INDUSTRY PROFILE

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 along with 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 tieups 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 and New 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. Towards the end of the 19 th 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).

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 detariffing 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.

The top insurance player in insurance sector Whoever has more money wins
Company Indian promoter Reliance Group Dabur Bajaj Auto Foreign insurance None Total capital(Rs crores) 217 459 368 400 FDI % Foreign capital ( Rs crore) 0 119.34 98 104 Market share based on premium 0.54 1.12 6.12 1.84

AMP sanmar + Aviva life Baja allianz Birla sun life

0 26 26 26

Aviva, UK Allianz, Germany Aditya birla Sun life,

HDFC standard ICICI prudential ING Vysya Kotak Mahindra, old mutual, Max New York Met life Sahara Life insurance SBI life Tata AIG Total

group HDFC ICICI bank Vysya bank Kotak Mahindra bank Max India Jammu and Kashmir Sahara India SBI Tata Group

Canada Standard life, UK Prudential, UK ING insurance, the Nether Lands Old mutual, South Africa. New York life, US Met life, US None Cardiff, France AIG, US 5,165

250 1085 440 260 500 355 100 350 381

18.9 26 26 26 26 26 0 26 26

47 282 68 68 130 92 0 91 99 1,196.34

2.96 7.11 0.63 0.71 1.32 0.40 0.80 1.52 1.78

2) To facilitate development of insurance in rural, social and unorganized sectors, IRDA has also enacted micro insurance regulations in November 2005.

Trends

MILESTONES OF INSURANCE REGULATIONS IN THE 20TH CENTURY

Year 1912 1928 Significant Regulatory Event The Indian Life Insurance Company Act The Indian Insurance Companies Act enabled the Government to collect statistical information about both life and non-life insurance businesses. 1938 1956 The Insurance Act: Comprehensive Act to regulate insurance business in India. 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 1993 1994 1995 1997 Nationalization of general insurance business in India Setting up of Malhotra Committee Recommendations of Malhotra Committee Setting up of Mukherjee Committee 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 2000 Cabinet clears IRDA Bill President gives assent to the IRDA Bill

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
Continuing the trend that essentially began 30 years ago, insurance Companies 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.

Bancassurance in India:
Bancassurance 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. 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.

COMPANY PROFILE

HDFC Standard Life Insurance Company Limited The Partnership : HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000. Incorporation of HDFC Standard Life Insurance Company Limited: The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC 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 Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent

companies and be the yardstick by which all other insurance companies in India are measured. 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

Their Values: SECURITY: Providing long term financial security to our policy holders will be our constant Endeavour. We will be doing this by offering life insurance and pension products. TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, we will be offering 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 values that will guide them in this. Corporate Office: IL&FS Financial Centre, Plot C22 - G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. Telephone Number: 6932666 Website: www.hdfcinsurance.com

Board Members

Brief profile of the Board of Directors Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

\Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and 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 in March 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 Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to 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 HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change 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, 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 of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

Board Members
Brief profile of the Board of Directors Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

\Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and 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 in March 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 Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to 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 HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change 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, 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 of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

Board Members
Brief profile of the Board of Directors Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman 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 Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

\Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and 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 in March 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 Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to 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 HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change 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, 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 of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.

18th February 2003

HDFC Standard Life launches it's Children's Plan

HDFC Standard Life Insurance launched its new HDFC Children's Plan today. This plan enables a parent to ensure a bright future for his child, whether it is education, marriage or establishing a professional career. It provides financial security to the child in future, even in case of the insured parent's unfortunate death during the policy term. Commenting on the new plan, Mr. Deepak Satwalekar, Managing Director & CEO, said, "We believe each child is unique with different needs and dreams. To accommodate all these differences we have designed a product that allows parents a wide range of flexibility so they can choose a solution that really works for their child. We believe we are launching

the best, most customer focused, children's product in the market today." The flexible features of this plan allow the plan to be customised to meet the specific needs and requirements of each customer. The first flexibility is that parents, grandparents, relatives or any other adult can take the plan for the benefit of the child. The second flexibility is that the plan can be taken for children of any age. On account of this feature, parents of young children as well as older children can take this plan. The third flexibility is the freedom of deciding the maturity date of the policy instead of having some fixed maturity dates of say 18 years or 21 years. Critical life events like college education, marriage, professional degree or setting up of a business vary across customer segments. Flexibility of maturity dates also enables customisation of the plan to meet an individual's specific requirements. Multiple plans can also be taken for a child to meet different needs. The Children's Plan comes with three options which offer parents the ability to decide as to how to meet their children's needs by allowing them to choose the timing and the types of policy benefits paid on maturity or death of the insured parent. Commenting on the suitability of the product for customers, Mr. Satwalekar said "As per a survey conducted by the

company 74% of parents of children below 10 years felt that such a plan needs to be taken. It was felt to be especially suited for planning for the child's higher studies and marriage". This plan adds to the company's range of life insurance, group insurance and pension plans. Tax benefits under section 88 and section 10 (10D) are applicable to this plan.

8th April 2003

HDFC Standard Life declares results for FY 2002-03, premium from new business more than three and a half times over last FY

Insurance coverage crosses Rs. 5000 crore mark

HDFC Standard Life participating policyholders to benefit from third successive bonus declaration Today, on 8th May 2003, HDFC Standard Life Insurance Company Limited, the first private sector life insurance company to start operations, declared its annual results for the financial year ending March 31st, 2003. The company generated premium from new business of Rs. 132 crore in 2002-03, as compared to Rs. 36 crore in the previous financial period, registering a year-on-year growth of over 260%. Another significant achievement for HDFC Standard Life was that the cumulative insurance coverage, i.e. the sum assured for the policyholders, crossed the Rs. 5000 crore mark during the year. During this period, HDFC Standard Life extended life insurance coverage to over 1,50,000 lives.

According to Mr. Deepak Satwalekar, Managing Director and CEO, HDFC Standard Life, the exceptional growth in business in the past twelve months had been driven by the rising expectations of the consumer. This in turn had resulted in HDFC Standard Life introducing new insurance solutions, establishing an increased presence across locations, increasing its sales force of trained financial consultants and adding corporate agents to its distribution mix, he added. The Directors of HDFC Standard Life at their Board meeting on 29th April, 2003, also declared the companys third bonus for participating policyholders. Commenting on the bonus declaration Mr. Deepak Parekh, Chairman, HDFC Standard Life, said We have declared reversionary bonus rates this year equal to the interim bonus rates we declared last year. Long term interest rates have fallen by over 1% since we declared our bonus last year, and this has had an impact on the rates of interest that all financial institutions can pay their customers. In recognition of this fall in long term interest rates we have reduced our interim bonus rates this year, and unless there is a recovery in long term interest rates, reversionary bonus rates will also have to be reduced in future years. Details of the bonuses declared are given in the Annexure attached along with this release. HDFC Standard Lifes current product portfolio caters to all the needs of the individual protection, investment, savings and pension. Mr. Satwalekar said, Our products are in fact integrated financial solutions that can offer them stability of returns along with total protection. We would, going forward, continue to add to our insurance solutions portfolio to offer increased flexibility in structuring individualized insurance solutions. A new addition to HDFC Standard Lifes product portfolio was the HDFC Childrens Plan in

February 2003. This customised solution has found wide acceptance amongst policyholders towards ensuring a bright future for their children, whether it is education, marriage or establishing a professional career. Besides the Childrens Plan, the HDFC Personal Pension Plan also continued to gain in popularity during the year. Amongst private insurers, HDFC Standard Life currently has a 25 percent market share in the pension segment. With offices in 49 locations, HDFC Standard Life has nearly doubled its physical presence across the country in the last twelve months. Ajmer in Rajasthan was the latest in the companys list of cities that it operates from. Also contributing to the growth in business were more than 10,500 financial consultants trained to understand the needs of the consumer, provide the right advice and maintain high service standards. With the modified corporate agency regulations allowing banks to sell insurance products, HDFC Standard life entered into tie-ups with HDFC Bank, Union Bank of India and Indian Bank. Emphasising the importance of this distribution channel, Mr. Satwalekar said that given the right circumstances, corporate agents, and bancassurance, which is a specialized form of corporate agents, could emerge as significant intermediaries in the year ahead. He pointed out that the success of bancassurance will, however, be dependent on appropriate products being sold through the bank branches and exploiting the strengths of the branch network. A significant change in the Indian financial services industry is imminent with banks and insurance companies increasingly realising the strategic significance of bancassurance in the future viability of their businesses, he added. HDFC Standard Lifes group business also grew significantly in 2002-03 covering over 22,000 lives for a sum assured of over Rs. 2000 crores.

Details of Bonus declared by HDFC Standard Life for participating policyholders for the financial year 2002-03 Regular premium policies The Directors declared a reversionary bonus at the annual rate of 3.75% of the sum assured for all regular premium HDFC Endowment Assurance policies, HDFC Childrens Plans, HDFC Money Back policies and HDFC Personal Pension Plans that were still in force on 31st March, 2003, and have paid all premiums in full when due. Single Premium Whole of Life Policies The Directors declared a reversionary bonus at the annual rate of 7.00% of the sum assured plus attaching bonus for all HDFC Single Premium Whole of Life policies that were still in force on 31st March, 2003. Single Premium Personal Pension Plans The Directors declared a reversionary bonus at the annual rate of 7.00% of the sum assured for all single Premium HDFC Personal Pension Plans that were still in force on 31st March, 2003. These rates of bonus will apply for the financial year from 1st April, 2002 to 31st March, 2003.
Interim Bonus

Regular premium policies The Directors declared an interim bonus at the annual rate of 3.25% of the sum assured for all regular premium HDFC Endowment Assurance policies, HDFC Childrens Plans, HDFC Money Back policies and HDFC Personal Pension Plans that become claims before the next bonus declaration and have paid all premiums in full when due. Single Premium Whole of Life Policies The Directors declared an interim bonus at the annual rate of 6.00% of the sum assured plus

attaching bonus for all HDFC Single Premium Whole of Life Policies that are still in force and become claims before the next bonus declaration. Single Premium Personal Pension Plans The Directors declared an interim bonus at the annual rate of 6.00% of the sum assured for all single premium HDFC Personal Pension Plans that are still in force and become claims before the next bonus declaration.

Notes

Reversionary Bonus A bonus that is added to policies throughout their term, the bonus rate changes over the term of the policy, the bonus rate is usually declared annually. Once added to the policy the full value of the bonus is guaranteed to be paid on death or maturity provided that all premiums are paid in full when they are due. Interim Bonus A bonus that is added only to policies which become claims in the period between this bonus distribution and the next. Such policies receive interim bonus to compensate them for the reversionary bonus they have earned up until the date of claim but will not receive because they will no longer be in force at the next bonus declaration. The interim bonus rate is usually declared annually. Calculation of reversionary and interim bonuses Reversionary and interim bonuses accrue on a monthly basis, so that policies will receive one twelfth of the annual rate of bonus for each complete and part month they qualify for bonus during the period to which the bonus applies.

1st January 2004

HDFC Standard Life launches Unit Linked Plans

HDFC Standard Life today launched its unit linked insurance and pension plans. The company has launched 2 products on the unit-linked platform HDFC Unit Linked Endowment Plan and HDFC Unit Linked Pension Plan. Through their flexible features the plans can be structured according to an individuals specific needs and risk appetite. The HDFC Unit Linked Endowment Plan will help an individual grow his savings in the long term while providing ongoing risk cover and the HDFC Unit Linked Pension Plan will help him in accumulating a corpus for post retirement life. These plans are targeted at individuals who want to make their own investment choice while choosing their insurance and pension plans. Moreover, the flexibility of increasing premium contributions in an existing account will be of particular help to the unorganised segment of the market in managing their cash flows. Commenting on the new plans, Mr Deepak Satwalekar, Managing Director & CEO, said, With this launch we have a complete range of solutions to offer to customers. The unit linked plans will offer a choice of investment options to customers looking for the same. In addition, this launch will help us tap the emerging opportunity of the new pension scheme for the government employees HDFC Standard Life is confident of delivering good long-term investment returns to its unit linked policyholders. The company has a good track record in managing policyholder funds and as a result has declared 3 consecutive bonuses in the last three years on its with profit products. The competitive charging structure for the newly launched unit linked plans is one of the lowest in the market and will help in delivering better long-term returns to policyholders. The recently launched gratuity plan funds have performed well in the short term, which too is a reflection of the companys investment expertise. HDFC Standard Life sees its pre-sale advice as a clear differentiator and in pursuance of this strategy, the company is launching its unit-linked plan through specially trained and certified Financial Consultants. HDFC Standard Life Insurance is the only company to have a special training followed by a test before allowing Financials Consultants to advice customers on these products. While elaborating on this Mr. Satwalekar said, With the flexibility and options offered under the unit linked platform, a well trained Financial Consultant will help a customer structure his plan and derive the maximum value from it. Since the customer will have to monitor his investments periodically, good advise and education by our Financial Consultant will be a key input for the customer to utilise the flexible feature of the plans. The newly launched plans offer a lot of flexibility to customers. The HDFC Unit Linked Endowment Plan comes with 5 fund options to match a customers risk profile. This plan allows the customer to choose the level of life insurance cover he needs and also a optional health cover. In addition the customer can switch monies between funds, re-

direct future premiums and also top up premiums to invest additional income. The HDFC Unit Linked Pension Plan comes with 4 fund options and allows customers to switch between funds, re-direct future premiums and top up when needed.

16th May 2005

HDFC Standard Life declares results for FY 2004-05

Premium Income grows by 132% HDFC Standard Life Insurance Company Limited declared its annual results for the financial year ending March 31st, 2005. The company generated New Business Premium Income of Rs. 486 Crore in 2004-05 registering a year-on-year growth of 132%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments. Mr. Deepak Satwalekar, Managing Director & CEO, HDFC Standard Life attributed this growth to the quality of life insurance solutions offered by the company. Speaking on the occasion he said, "We are equipped to offer some of the best solutions to our customers given our wide range of products and the quality of advice offered by our Financial Consultants and Corporate Consultants. Training was one of the biggest initiatives we had undertaken last year. Clearly, this initiative has started giving us good results." Highlights of Financial Year 2004-05 New Business Premium Income up by 132% to Rs. 486 Crores. Total Premium Income of Rs.687 Crores as against Rs. 298 Crores in FY 03-04. Alternate Channels including bancassurance have recorded an impressive growth of over 400% to contribute 37% to the Effective Premium Income (EPI). Group business increased to Rs. 32 Crores on EPI basis. The average premium doubled to Rs 17,000 Company products and services available in 444 locations across the country. Over 220% increase in MDRT numbers over the previous year. HDFC Standard Life tracks its New Business Premium on the

basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally accepted indicator of an insurance company's performance. While the company recorded New Business Premium Income of Rs. 486 Crores, the EPI figure was lower at Rs. 436 Crores. The total premium income (including renewal premium) grew by 130% to touch a figure of Rs. 687 Crores. High levels of persistency have resulted in a higher level of renewal premiums. High persistency is an important contributor to future profitability. The cumulative sum assured for all policies issued up to March 31, 2005 crossed Rs. 30,000 Crores. In the first full year of offering unit linked products, the structured sales process adopted by the company has paid rich dividends. HDFC Standard Life offers, both, life insurance policies as well as pension products on a unit linked platform. Unit linked products accounted for over 50% of the new business premium. Given the nature of the unit linked product, the company provided specialized training to a limited number of its Financial Consultants who were then tested for their understanding of the products and separately licensed. HDFC Standard Life is unique in stipulating this requirement for its sales force. The company's national relationships with HDFC Limited, HDFC Bank, Union Bank of India, Indian Bank and Saraswat Bank have also helped it reach out to a larger number of customers across the country. The alternate channel business grew by over 400% to contribute 37% of the premium income. The company plans to further strengthen these relationships through the introduction of products specially designed for this channel. HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company doubled the number of offices to 104 across the country. Through these offices, the company today services customer needs in over 440 towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005. There has been a huge jump, of over 220%, in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT). From 38 members as on 31st December 2003, the number has increased to 124 members as on 31st December 2004.

During the year, the company expanded its portfolio of products by launching plans to cover Superannuation and Leave Encashment needs, thereby offering a wide range of employee benefit solutions to its corporate clients. Consequently, HDFC Standard Life's Group Business saw a huge growth over the previous financial year. The New Business Premium grew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of over Rs.10,000 Crores. Given its parentage and its financial expertise, the company is confident of offering good long-term returns to its policyholders. Speaking on this Mr. Satwalekar said, "Our investment philosophy and cost consciousness together will help us in providing good long term growth to policyholders on their investments with us. This is evident in the performance of our equity based unit linked funds which have outperformed most indices over the last one year".

16th May 2006

HDFC Standard Life records impressive growth

Premium Income grows by 112% HDFC Standard Life has recorded a strong year on year growth of 112% for the period April-March 2005- 06, in comparison with the same period 2004-05, with new business first year premium of Rs.1029 crores. The growth achieved by the company was considerably higher than the private sector industry average of 84% for 2005-06. In terms of effective premium income (EPI), which gives a 10% value to a Single Premium policy, and is an internationally accepted indicator of an insurance companys performance, the EPI grew by 103% from Rs.436 Cr. to Rs. 887Cr. HDFC Standard Lifes growth in new business is a result of number of lives insured as well as, an increase in the average premium. For the individual business, volume measured by the number of lives insured, witnessed a 32% growth. The average premium also increased by 62% from Rs.17,000 in 2004-05 to Rs. 27,500 in 2005-06. Commenting on the huge potential that exists in the Indian market today, Mr. Deepak Satwalekar, Managing Director & CEO of HDFC Standard Life emphasised, The GDP has been growing over 8% per annum and 47% of all savings are now in financial saving forms; 16% of savings is in the form of insurance premiums and

another 16% is in Provident Fund and Pensions i.e., 32% of Indias financial savings of the household sector are available to be tapped. Therefore, growth for the private life insurance industry is inevitable and HDFC Standard Life is confident of maintaining a steady growth pace. Highlighting HDFC Standard Lifes differentiators, Mr. Deepak Satwalekar said, Our Company has the most competitive fund management charge, which is the lowest in equity based products. Our fund management charge is as low as 0.8% per annum, the key to enhancing long-term returns. Our other differentiator is that we believe in offering life insurance solutions to customers based clearly on their needs, and Disha is the way it is done. Disha is a Professional Sales Skills Training Program. The delegates in this program are introduced to a Need-based selling approach, which can cater to all our clients opting for life insurance solutions. Disha is aimed at providing a good service to the client and building long-term relationships. Contribution to the individual business premium income by the different channels of distribution also changed significantly, compared to last year. The Corporate Agency and Bancassurance channel has grown tremendously and currently accounts for 43% of the companys business. Speaking on this, Mr. Satwalekar said, The strategy to concentrate on activating a limited number of bancasurance partners rather than going in for signing up a large number of banks in the early years, also paid off. Our key to achieving bancassurance success is our belief in a partnership approach, customized product offerings, highly ethical dealings and providing good value to our partners and their customers. HDFC Standard Lifes offerings of Employee Benefit Solutions, to the corporate sector, through Group Business, have met with increased success with year on year growth of 174%. Commenting on the strong growth of HDFC SLs Group Business, Mr. Satwalekar said, Our excellent fund performance on retirement products and increase in our client base with 150 clients cutting across a spectrum of industries spanning from multinationals to PSUs to the older business houses, have been the highlights of the year. Ongoing training for conventional products and specialized training for unit linked products for more than 33,000 of our financial consultants has also helped its customers choose the products best suited for their need for protection, savings, investments and pensions. HDFC Standard Life is the only company requiring its sales force to undergo specific training in ULIPs before they are permitted to sell the same. There has been a huge jump in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT). From 124 members as on 31st December 2004, the number has increased to 318 members as on 31st December 2005.

HDFC Standard Life continues to have one of the widest reaches amongst new insurance companies. The Companys geographical presence has also increased and covers 169 offices across the country.

Table Showcasing Financial Results:

Parameters Apr-Mar 2004-05 (Rs. Cr.) Apr-Mar 2005-06 (Rs. Cr.) % Growth

Total received premium i. New Business ii. Renewal Effective Premium Income (Total) Group Business Premium (EPI)

668.40 486.15 182.25 436.08 49.40

1532.21 1028.94 503.27 887.30 135.15

129.23 111.65 176.14 103.47 173.58

7th February 2006

HDFC Standard Life records impressive growth

Premium Income grows by 150% HDFC Standard Life has recorded a strong growth of 150% for the period AprilDecember 2005, in comparison to the same period last year, with new business first year premium of Rs.599 crores while the overall private insurance industry grew by 91%. HDFC Standard Lifes Effective Premium Income (EPI) grew by 175% from Rs.181 Cr. to Rs.496 Cr. HDFC Standard Lifes growth in new business premium is a result of strong growth in policies sold as well as, an increase in the average premium. For the individual business, volume measured by the number of policies sold, witnessed an 80% growth, from under 125,000 in the first half of FY 2004-2005 to over 220,000 in the first half of FY 20052006. The average effective premium on the other hand increased to Rs.28,000 from approximately Rs.15,000 for the same period last year. Commenting on the consistently strong performance of the company, Mr. Deepak

Satwalekar, MD and CEO, HDFC Standard Life said, We believe that our success is a result of our efforts in giving customers, the best solutions to take care of their insurance needs. Our endeavour to provide high quality insurance solutions to customers through quality pre-sales advice, based on a sound need-based solutions approach, and post-sales service has started to pay off. Mr. Satwalekar added, The critical success factor has been managing the customer on two fronts, the actual customer experience in terms of service standards, and more importantly, customer perceptions about the manner in which HDFC Standard Life conducts business, in following a business ethic that shuns short cuts and unethical practices. Contribution to the individual business premium income by the different channels of distribution also changed significantly compared to the first half of last year. The Corporate Agency and Bancassurance channel has grown tremendously and currently accounts for over 45% of the companys business. Speaking on this, Mr. Satwalekar said, The customer has clearly indicated his/her preferred choice of distribution channel. Life insurance business is a long-term business and needs strong partnerships, which have been built over time with the customers. HDFC Standard Life has also strengthened its existing relationships and we are happy with the results. HDFC Standard Lifes offerings of Group Retirement Solutions to the corporate sector have met with increased success on the back of excellent investment performance shown by all its funds. Ongoing training for conventional products and specialized training for unit linked products for its 31,000 financial consultants has also helped its customers choose the products best suited for their need for protection, savings, investments and pensions. HDFC Standard Life is the only company requiring its sales force to undergo specific training in ULIPs before they are permitted to sell ULIPs. IRDA is now proposing this as a requirement for all companies. This is one more step that HDFC Standard Life has taken to protect the interests of the policyholders. HDFC Standard Lifes geographical presence has also increased and it has now 169 offices across the country (having added 66 new offices from April December 2005). Table Showcasing Financial Results:
Parameters Apr-Dec 2004-05 (Rs. Cr.) Apr-Dec 2005-06 (Rs. Cr.) % Growth

Total received premium i. New Business ii. Renewal Effective Premium Income Group Business Premium

330.45 239.07 91.38 180.78 16.55

829.17 598.70 230.47 496.32 59.48

150.92 150.43 152.21 174.54 259.40

New products, new approaches at HDFC Standard Life

Usha Somayaji 20 June 2001 Pension products. Mortgage redemption cover. Unit-linked products. These are some of the insurance 'goodies' that can be expected to come from HDFC Standard Life Insurance, the 82:18 insurance joint venture between housing financing major HDFC and the UK-based insurance major, Standard Life Insurance. Pension products are expected to come by October this year, and mortgage redemption covers, towards the end of the year. A little later, we can expect market related unit-linked products. "The pension business has enormous potential, as less than 10 per cent of the Indian workforce is covered by pension", enthused Deepak Parekh, chairman, HDFC Standard Life Insurance. He was in Pune, to launch the company's new branch - it's sixth in the country - and a new insurance product, the Group Term Insurance, that caters to the needs of the corporate sector to cover their employees under one umbrella insurance scheme. "Need" is the factor that HDFC Standard Life is hinging its business on, making its products meet the differing needs of the customers, and structuring the product accordingly. "With pension products, we will need to separate out the two parts -- of accumulation, during the saving period, and annuity, when you begin the pay-out," says Mr. Parekh. This kind of bifurcated pattern is what the company plans to pursue for pension products, although the final shape is yet to be decided. The other area is that of mortgage redemption, where it can be seen to have an edge over the competition, given its pool of housing loan customers in flagship HDFC. "Mortgage redemption is a big business overseas, we shall try to bring it here in the last quarter of this year," Mr. Parekh said. The focus would be on the capital component of the loans, particularly housing loans. However, the fact that the portion of the capital, in addition to the interest component was included for tax relief in India, this element too had to be factored in into any scheme, according to him. The strategy adopted by HDFC Standard Life to attract customers has been through customisation of its products. Its earlier products, the Endowment and the Money Back policies came with the facility to customise, as does its latest product, Group Term Insurance. Endowment and Money Back plans come with additional benefits such as critical illness, double sum assured, accidental death benefit and waiver of premium, which the customer can mix and match, as he or she wishes.

" Like our other insurance products, this product too is highly customisable," says Deepak Satwalekar, managing director and chief executive officer, HDFC Standard Life. Thus, the Group Term Insurance can be availed for a number of uses including providing insurance cover to its employees, which it can extend wherever it has given out housing or other loans. Besides being a pure life cover, it also has in-built flexibility, where the employer can opt for extendable facilities under the scheme, be it to cover the loans extended, or to include other employees during the period of cover, to adjust premium, link them to salary, or slabs or the number of people , as well as the size of the cover. Mr. Satwalekar admits that the innovativeness of a product lasts only as long as a clone enters the market, hence the difference has to be in the delivery. "We have tried to customise our products to the need of individuals, adding features to make them useful by meeting individual requirements". "Nobody 'buys' insurance, it has to be sold," says Mr. Satwalekar, underlining the fundamental difference in the market for insurance and other financial instruments. Which is why HDFC Standard Life agents -- called financial consultants -- will be specially trained to project their products as combined blessings -- for protection, savings, and tax breaks. The company has set itself a target of 25,000 policies in the first year (it began operations in December 2000), one million to be achieved before the end of the fifth year. "In the initial period, our focus will be to build up the infrastructure, processes and capacities," says Mr. Parekh. However the insurance business is a complex one, he admits, and affirms that any player in the industry has to offer innovative products as well as credibility. "The average life period of an insurance product being 21 years, individuals look at the company offering the product with a long term view. Will the company be around when the policy matures? Will it deliver? These are some of the questions that customers want answered," he says. "Hence, unlike other financial products, customers also look for the integrity and credibility of the company."

HDFC Group to follow Standard Life investment policy

Our Bureau Mumbai , July 25,2003. HDFC Group wants to follow the investment strategy of its foreign partner Standard Life, which bet on equities in the long term, Mr Deepak Parekh, Chairman, HDFC today said.

However, in India, investment in equities by life insurance companies is restricted by IRDA. Insurance companies can invest only up to 15 per cent of its corpus in `un-approved' securities. HDFC Standard Life Insurance Company Ltd has just started investing in equities, Mr Parekh said. Standard Life of UK, which has 18.4 per cent stake in HDFC Standard Life, invests up to 75 per cent of its funds in equities. According to Mr Iain Lumsden, Group Chief Executive, Standard Life Group, equities yield better returns if the investments are for a longer period, say more than ten years. Mr Lumsden, who is in India to attend the board meeting of HDFC Standard Life, however, said that policyholder should be informed about the risk in investing in equities. Talking to reporters here today, he said, for Standard Life group, after Germany and Hong Kong, India holds potential for growth. The potential in terms of number of policyholders could be more in India as compared with other countries. The group's business in the UK and Canada is suffering from lack of investor appetite, he said. Responding to question on mergers and acquisition, he said there was not much scope for merger in insurance sector. ... . "at least we at Standard Life are not looking this possibility as we may not find someone with our model". Standard Life group manages 85 billion pounds globally. Mr Parekh said capital HDFC Standard Life would be increased by Rs 70 crore to Rs 288 crore.
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DSPML sees private insurers with 45% share by 2010 A H Ghani | Friday, 08 June , 2007, 10:19

Though big brother Life Insurance Corporation of India (LIC) continues to dominate the domestic life insurance scene, private insurers are expected to gain market share by 2010. According to an estimate made by Rajeev Varma and Aashish Agarwal of DSP Merrill Lynch, private insurers would increase their share in new business premium (annualised premium equivalent) to 45% by FY2010 versus 35% in FY06, as they clock a growth of 89% year-on-year in FY08 and follow this up with 60% growth in FY09 and 40-45% thereafter.

Says Tata AIG's distribution officer Joydeep Roy: "We feel the overall industry growth will not be like last year, when LIC grew very high. However, it is reasonable to expect private insurers to grow 45% annually up to FY2010."

Among the private insurers, biggies such as ICICI Prudential and Bajaj Allianz are expected to grow by 50%-plus in FY08 and 40%-plus in FY09. "Thereafter, their growth is expected to moderate to around 30-35% per annum, primarily owing to high base effect and partly due to new insurers scaling up," the DSP Merrill Lynch officials said.

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The fastest growth, however, is expected from HDFC Standard Life. This is primarily due to its lower base and aggressive expansion of its distribution network. As far as leadership position is concerned, ICICI Prudential would continue to dominate in FY10 with a market share of 26%, followed by Bajaj Allianz with a market share of 15%. Says Roy of Tata AIG: "Lot of new companies are coming in and it is difficult to say who will dominate the market in FY10. Three years is a long time."

The domestic life insurance market itself should have grown by then. Total life insurance sector premiums are estimated to grow 243%, from $21 billion in FY06 to $72 billion in FY10. That means life insurance sector premiums should account for 5.5% of the GDP versus the current 2.6%.

Says Roy: "Our estimates are lower, since total premium is guided by LIC's historical base. The growth in new premiums should be at an average of 45-50% annually up to 2010. A total premium growth of 243% by FY10 sounds remote."

What is expected to enlarge the domestic life insurance market is the potential emergence of insurance distribution as a major fee income generator for banks.

The number of policies sold could potentially cross one billion by 2010.

Agrees Sanjay Tripathy, head (marketing) of HDFC Standard Life Insurance: "With retail channels continuously registering a high growth due to increase in the number of financial consultants and the successful emergence of alternate channels like banks, the number of policies sold should cross the one-billion mark by 2010."

Meanwhile, total assets under management for private sector life insurance players are estimated to increase to $55 billion by 2010, up from $6 billion in FY06.

LIC, on its part, should see a further $200-250 billion of assets under management.

Bajaj, ICICI, HDFC - Insurance Subsidiaries Adding Value Tuesday, March 06, 2007

Many Indian companies like ICICI, Bajaj Auto, HDFC, Aditya Birla Nuvo etc ventured into Life and General insurance business incorporating a wholly owned subsidiary to grow beyond their core business. Withn 3-5 years of operations, subsidiaries are now ready to be hived off as individual business entities. The insurance industry is expected to grow at 21% CAGR between 2007 and 2011 and private operators are all set to grab a big slice.

1. ICICI Ltd ICICI Prudential is the market leader amongst the private life insurers with a market share of 9.5% the second largest life insurer after LIC. It is the largest private operator with a market share of 30% amongst private companies. It has PAN India presence with 472 branches and 176,000 advisors. Per share value of life insurance for ICICI Bank, INR 219.

2.Bajaj Auto Ltd Bajaj Allianz is the second largest private insurance company in India with a total market share of 5.3% and 17% amongst private operators. It has 900 offices in India and derives 70% of its business from agents while the other 30% from alternative channels like GE Money, Syndicate Bank etc. Valuation of Bajaj Allianz is pegged at Rs143 billion. This amounts to an estimated Rs686 per share or 25% of Bajaj Autos current market value.

3.HDFC HDFC has tied up with Standard Life and has conservatively operated till now. It is the third largest operator amongst private players. It has around 500 offices for sales leads and 52,000 financial advisors to promote various insurance products. HDFC Standard Life Insurance Co. is valued at Rs83bn or US$1.9bn on a 12-months forward basis implying Rs149 per share of its parent HDFC.

COMPETETORS
ICICI Prudential Life Insurance Company Limited

Introduction 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 is Rs. 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 Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the 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 a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. 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 dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include: Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees And 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 India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has 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 of ICICI'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 Capital Markets * 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

and HealthCare * Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset Products * Distribution - ICICI Capital, Distribution and Servicing of Retail Liability Products ICICI 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 the NYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI Bank on NYSE (symbol: IBN) on March 28, 2000. Prudential plc: Prudential plc was founded in 1848. Since then it has grown to become one of the largest providers 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 over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK 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 overseas operation 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 insurance companies. Prudential controls approximately 4% of all the listed shares on the second largest stock exchange in the world, the London Stock Exchange, making it one of the largest institutional investors in the UK. Prudential is focused on the internet generation and is one of the first financial service organisations to use the internet on a fully integrated basis. In October 1998, Prudential launched a "branchless" bank based on the internet. Unusually titled as " egg:|". The bank has in a short span of its 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 over 500,000 customers. Development of superior products and services that offer value for money and security while producing superior financial returns, enables Prudential to maximise the value of its shareholder's investment and to establish lasting relationships with customers and policy holders. ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. The two companies bring together two of the strongest financial service brands in Asia known for their professionalism, excellent quality of service and long term commitment to YOU. Management Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Shri K.V. Kamath, Chairman Mr. Mark Tucker Smt. Lalita D. Gupte Mr. Danny Bardin Mrs. Kalpana Morparia Shri M.P. Modi Mr. John Caouette Shri S.P.Subhedar, (Alternate Director to Mr. Danny Bardin) Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker) Smt. Shikha Sharma, Managing Director Management Team Ms. Shikha Sharma, Managing Director Mr. Kevin Wright, Executive Vice President - Sales & Distribution Ms. Madhavi Soman, Chief - Strategic Initiatives Mr. V. Rajagopalan, Appointed Actuary Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Mr. Saugata Gupta, Chief - Marketing & Service Mr. Shubhro J. Mitra, Chief - Human Resources Corporate Office: ICCI Prulife Towers, 1089, Appasahab Marathe Marg, Prabhadevi, Mumbai 400 025. Telephone Number: 022-462 1600 Website : www.iciciprulife.com

ING Vysya Life Insurance Company Pvt. Ltd. ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance Vysya Bank and GMR Group. ING Group Over the last 150 years, ING Group has grown to become one of the largest life insurance organisations in the world. Today it touches the lives of over 50 million people across 65 countries. It offers a range of financial services including insurance, pensions, banking and asset management. In the year 2000, total assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In

the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries. The Vysya Bank Limited It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million customers, 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services. The Vysya Bank has a long-standing relationship with its customers and deep understanding of the Indian market. GMR Group It has a solid track record of over two decades of growth and has wide-ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking. GMR group has an excellent reputation of being able to successfully develop ventures from scratch. Attention:14, Sankey Road, Sadashivanag, Bangalore 560 006. Telephone Number: 080-3318300-312 Website : www.ingvysyalife.com OM Kotak Mahindra Life Insurance Company Ltd.

Introduction OM Kotak Mahindra Life Insurance Company Limited (OMKM) is a joint venture between Kotak Mahindra Finance Ltd., and Old Mutual plc aims to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Jeene Ki Azaadi...

Kotak Mahindra Finance Ltd Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From Banking, to Stock Broking, to Mutual Funds, to Life Insurance, to Investment Banking, the company caters to the financial needs of individuals and corporates. Kotak has a group net worth of around Rs.1,400 crore and currently employs over 2,000 dedicated employees in its various businesses. With a presence in about 50

locations in India and offices in New York, London, Dubai and Mauritius, the group currently services a customer base of over 5,00,000. The group has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate).

Old Mutual Old Mutual, a company with over 157 years of experience in life insurance business, has the largest financial services business in South Africa, through its life assurance, asset management, banking and general insurance operations. Being listed on the London Stock Exchange and included in FTSE 100 list of companies, Old Mutuals assets under management are worth $208 billion (as on Dec 31st, 2001). In the USA, Old Mutual is one of the top ten fixed annuity businesses, following its purchase during 2001 of Fidelity & Guaranty Life Insurance Company, and its multistyle asset management business offers an array of specialist asset management skills. In the UK, Old Mutual focuses on wealth management. Gerrard, its largest UK operation, is one of the leading private client stockbroking businesses in the country. Old Mutual has made significant progress through, continued development of core business and focused acquisitions. It has established a strong foundation, to build the future business for customer and shareholder value. The company has the ability to cater to a variety of consumer market segments, and offers a comprehensive and innovative product range catering for all income groups. Corporate Office: OM Kotak Mahindra Life Insurance Co. Ltd. Address: Peninsula Chambers, Peninsula Corporate Park,6th floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013. Tel: 91-22-56635000 Fax: 91-22-56635111 Website: www.omkotakmahindra.com SBI Life Insurance Company Limited SBI Life Insurance Co. Ltd. is a joint venture between State Bank of India and Cardif 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 and

security 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 to combine the best of banking practices handed down from the imperial management with the 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 has a branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore (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 in banking. 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 of Rs.2051 crore (US$470 mm) for the fiscal ending that date. Cardif is a wholly owned subsidiary of BNP Paribas, which is one of the top 10 banks in the world, and the third largest in Europe. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9 branches in major metros in the country. Cardif came into being in 1973. It has grown over the years into a vibrant insurance company specialising in personal lines such as long-term savings, protection products and creditor insurance. Cardif had a premium income of over US$ 4 billion in 1999, and more than US$ 23 billion of funds under its management. Cardif has been specialising in the art of selling insurance products through commercial banks in France and 23 other countries. France is the mother of bancassurance in the world. Over 65% of life insurance business is done through banks and financial institutions' counters in France, and the trend is rapidly catching up in other countries. It operates joint ventures in developed as well as developing countries, such as Brazil, 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-up capital 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 insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalisation period. Corporate Office:

2nd Floor, APEEJAY House, 3 Dinsha Vachha Road, Churchgate, Mumbai 400 020. Telephone Number: 022 - 2351000 to 1007 Tata AIG Life Insurance Company Tata AIG General Insurance Company Ltd, and Tata AIG Life Insurance Company Ltd., (collectively "Tata AIG") are joint venture companies between the Tata group India's most trusted industrial house and American International Group, Inc. (AIG), the leading U. S. based international insurance and financial services organisation. Both promoters have a deep and abiding interest in India's insurance sector. Prior to nationalisation, the Tatas pioneered private insurance in India when Sir Dorab Tata set up New India Assurance in 1919. By 1973, when General Insurance was nationalised the Tata company had a global presence with 56 overseas offices. AIG too, has always considered the Indian insurance sector to be of significance. The AIG companies entered India in 1945 and had offices in several Indian cities prior to nationalisation. AIG is the leading U.S. - based international insurance and financial services organisation and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial, personal and life insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. Today, AIG's operations extend across 130 countries and jurisdictions throughout the world. AIG is ranked #8 in Forbes 2000 "super 100" ranking of all US corporations. AIG is ranked #8 in Fortune 500 ranking of top US corporations, and ranked #1 in the property and casualty business. AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer. AIG's global businesses include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. The Tata Group is the most respected industrial conglomerate in India, with revenues of more than US $ 8 billion. The Group has long been a market leader in steel, commercial vehicles, electric power generation in the private sector and computer software. In recent times, it has promoted several new ventures in high growth areas of the economy such as financial services, telecommunications, information technology, auto components, oil field services and process management systems. The Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance.

Corporate Office: Ahura Centre, 4th Floor, 82, Mahakali Caves Road, Andheri(East), Mumbai 400093 . Telephone Number: 022 - 6930000 WebSite :www.tata-aig.com

Birla Sun Life Insurance Company Limited Introduction The company is the result of a joint venture between The Aditya Birla Group and Sun Life Financial, a leading international financial services organization. The Aditya Birla Group is the second largest business house in India, with a turnover exceeding Rs 260 billion and an asset base in excess of Rs 180 billion. The group's market capitalization is approximately Rs 150 billion. It has 7 lakh investors and employs around 72,000 people. It is a multinational conglomerate in it's own right, with 75 diversified business units in India and overseas, including operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt. Sun Life Financial has evolved from a single mutual fund life insurance company into one of the most highly rated insurance and wealth management institutions in the world. Sun Life Financial group offers a wide range of financial solutions to individuals and corporates and these are in the areas of life, health and disability; pension funds and plans; investment management; annuities and savings; trust, brokerage and banking. Sun Life Assurance Company of Canada, Sun Life's primary insurance arm, is among the largest international financial services organizations in the world, with assets under management of over US$ 201 billion. The two groups have had a partnership in India for a long time in the areas of asset management, retail distribution and stock broking. It was natural therefore that when the insurance sector was opened up in India, the partnership was extended to life insurance. Thus was born Birla Sun Life Insurance Company Ltd. The company has set for itself the following Business Management Philosophy: Vision To be a world class provider of financial services to individuals over their lifetime Mission To be the first preference of their customers as a leading Integrated Insurance Provider of insurance solutions through superior value creation and technology. Core Values

 Operating with integrity to the very highest standards of business conduct. Always working with the customer's needs in mind. Relentlessly pursuing excellence through the people they employ and the work they do. Providing products and services that add value for customers, channel partners and build value for the shareholders. Goals To be a world-class player in insurance business and amongst the top insurers in the country. Philosophy To create value for all customers, rural and urban, big and small. Innovation To lead with innovative product and customer service offerings. Professionalism To adhere to strict compliance and professional standards. Technology To achieve national connectivity using the backbone of Aditya Birla information highway. To enable better customer service standards through Superior Technology. To add web and call centers in a phased manner. Offices Mumbai,Delhi, Kolkatta, Chennai, Bangalore,Hyderabad, Pune, Lucknow, Ahmedabad. Corporate Office: 1st Floor, Ahura Centre, 'B' Wing, Mahakali Caves Road, Andheri(East), Mumbai 400 093. Telephone Number: 022-6928300 WebSite : www.birlasunlife.com MetLife India Insurance Company Pvt. Ltd. MetLife India Insurance Company Private Limited was incorporated in India on April 11, 2001 as a joint venture between MetLife International Holdings Inc., The Jammu and Kashmir Bank, M. Pallonji and Co Private Limited and other private investors.

The Metropolitan Life Insurance Company (MetLife ) is the number one insurer in the U.S. based on over US$2 trillion of life insurance in force. MetLife serves approximately 9 million individual households in the U.S. as well as 87 of the Fortune 100 companies. MetLife's institutional clients have approximately 33 million employees and members. Headquartered in New York, MetLife through its affiliates, subsidiaries and representative offices operates in 15 countries throughout the Americas, Europe and Asia. MetLife India inherits its parent company's over-130-year-old reputation of helping build financial independence for its customers. MetLife India has developed and distributes a range of life insurance products in India. MetLife India benefits from its parent company's global presence in the field of insurance, track record of establishing successful insurance operations in emerging markets and the unique strengths of its other Indian promoters. Drawing from these experiences, MetLife India hopes to be able to address the needs of the Indian customer. MetLife India aspires to build on MetLife's history of meeting policy holder and contract obligations and the ability to withstand the impact of adverse economic factors. The MetLife brand, known for empowering people to feel protected, guided and hopeful about their lives, will it is hoped do the same for its Indian customers. Headquartered in Bangalore, MetLife India hopes to deliver value and world-class service to customers through its financial advisors and corporate sales representatives. The mission of MetLife India Insurance is to build financial freedom for all. Corporate Office: Brigade Sashmahal, No.5, Vani Vilas Road, Basarangudi, Bangalore 560004. Telephone Number: 080-6678617/18 WebSite : www.metlife.com

Interview of Deepak Satwalekar, Managing Director and CEO, HDFC Standard Life Insurance Company

(Date: 17 May 2005) How has the FBT on superannuation affected your business? It is too early to say how the FBT on superannuation will affect our business. We have heard that some companies are reviewing their own compensation policies in the light of the FBT. They may move to a CTC structure. We shall have to wait and watch how this plays out.

Recently the IRDA has barred insurance companies from selling keyman covers stating large scale abuse of the product. How many keyman covers have you sold in March? And how much has the IRDA diktat affected your business? The IRDA diktat does not affect our business, as we have not been big players in the Keyman policy market. I do agree with IRDAs action in restricting the Keyman policies to being a pure risk product. That is the real objective of a Keyman policy and I am glad that action has been initiated early in this regard. Your position from among the top three has gone further down. Your comments pls There are different ways in which the ranking of insurance companies in a newly opened market can be measured. New business premium is one of them. For the long term success of an insurance company, the sale of regular premium policies, as opposed to single premium policies, is very important. We measure our New business premium income in Effective Premium terms, that is, we give only a 10% weight to a single premium policy. While we agree that market share is important, we would not engage ourselves in any practices that would hurt the long term profitability, or worse, the viability of the company. The quality of the book is very important in determining whether a life company is successful or not. ULIPs have been doing roaring business. But with lack of transparency and these being sold as investment products the IRDA plans to come out with stringent guidelines for the same. How much do you think it will affect the sale of unit linked products. It is extremely unfortunate that without a clear understanding of the unit linked product, the media as well as other affected segments of the financial sector have harped on the lack of transparency of these products. At HDFC Standard Life Insurance,we disclose, up front, all charges that would be payable, whether one time or on a recurring basis. In fact, these are factored in the preparation of the illustration that is made available to all our customers. These illustrations give the customer an idea of what the terminal value of his policy can be at the end of the policy term. Mutual funds do not have an equivalent facility. These are as much investment products as any other conventional product offered by insurance companies. The difference is that the customer now has a choice of what asset class he prefers to invest in. This is of great value to customers as they can now choose the asset class depending on their age, risk preferences, financial needs and existing investment portfolio. This choice, enhances transparency, not reduces it. I have not understood this fascination that the media has had in trying to show this as a fight between the mutual fund industry and the life insurance industry. Please try and understand that these are two different products that are offered by these players and they address very different needs, especially in terms of the period of

the contract. Unit linked policies, like other life insurance policies, are long term contracts, extending as long as 30 years, and do offer significant benefits in terms of maturity values arising from the low recurring charges that insurance companies levy. I agree that these are new products in the Indian market and not something that the customers were offered during the days of a non-competitive market environment. We have therefore put in place an additional programme for training and licensing our Financial Consultants to permit them to sell unit linked products. I believe we are the only life insurance company that has such a programme in place. As of now, a little over 25% of our sales force is permitted to sell unit linked products. This is one of the ways how we manage the risk of mis-selling that the regulators may be concerned about. I am not aware of the nature of the guidelines that are being planned and hence would not be able to comment on how they will affect us. All I can say is that the needs based approach that we have adopted for selling is a natural hedge against mis-selling. How do you plan to further strengthen your retail business? We have 104 offices across the country, including in B and C level towns. Through these offices we are able to offer our products and services to customers in over 440 towns. During the year we have plans for significantly increasing our reach through additional offices, so as to both widen and deepen our presence across the country. We also plan to leverage the wide distribution network of our bancassurance partners to reach a wider customer base. How different is insurance selling in rural areas? As different as chalk and cheese. It is important not to carry pre-conceived ideas about what is required by the rural market. It helps to listen to them. We need to keep in mind the shortage or non-availability of adequate medical testing facilities in rural areas, and therefore need to design appropriate products for these markets. As you go deeper into rural India there isnt a facility whereby they can pay their premiums on a regular basis. The desire to have insurance facilities reach rural India often runs ahead of the availability of adequate banking facilities. There are also difficulties in finding approved training institutions and testing facilities for getting our Financial Consultants licensed to sell insurance policies. Having said that, I do believe that with the increase in rural incomes that we are seeing in recent years, there will be a large opportunity to offer life insurance products in the years ahead. How much has bancassurance contributed to your business? Bancassurance is an important element of our distribution strategy. The past year has seen this channel contribute over 35% of our New business premium. Going forward we do plan to intensify the existing relationships and fully leverage the

strengths of this channel to offer our services to a larger client base. We may also consider extending our relationships to other partners which have a similar value system as ours.

Interview of Pankaj Seith, Chief-Marketing, HDFC Standard Life Insurance

How far will the recent changes announced regarding tax exemption for single premium policies benefit existing policyholders? These policies will continue to be a good investment option for long term investors. However withdrawal of the Section 10 (10D) benefit will have a slight dampening effect. In case benefits taxation of only the capital gains with indexation benefits is announced, they will again add to the attractiveness of these plans. What is the future of single premium policies? Single premium is a mode of payment offered on a variety of products. We also have single premium term insurance policies which are very useful for specific needs like covering your home loan. Single premium pension plans allow people to invest their one time bonuses into a fund for their retirement. Hence, single premium policies will fulfil specific needs in the future also. Looks like single premium policies will no more be in demand considering the huge outgo as tax. Do you plan to modify the product or will you withdraw it completely? That is not true. They will continue to be good investment products though the final decision on the taxation front will affect their attractiveness. Measures like taxation of only the gain and not the principal and features like indexation benefits will be fair in comparison to other investment options. Only once the final details are announced will we be in a position to decide their full impact on our product design, if any at all. The Finance Minister has announced that pension subsidy will be given only to LIC and not to private insurers. What will be your course of action regarding the differential treatment meted out to private insurers? We are already in the savings part of the pension market and that will not be affected. This subsidy will affect our prospects in the annuity/disbursement part of the pension market. We hope that over a longer period of time, a level playing field will be created in the annuity/disbursement segment also.

HDFC Standard tapping corporate agency route

Our Bureau

KOCHI, Jan. 7 HDFC Standard Life Insurance is aggressively tapping the corporate agency route in a bid to broadbase its distribution network and shore up its customer base. The insurer today announced its tie-up with the Kochi based JRG Financial Services Pvt Ltd as its new corporate agency channel, after Indian Bank and Union Bank. Speaking on the occasion of the launch, Mr Paresh Parasnis, General Manager, Distribution, said, "With the change in regulations for corporate agency, we are now focussing on activating our relationships with distribution houses and commercial banks. This tie-up will enable us to reach out to a large number of customers in Kerala." According to Mr Parasnis, the company proposes to broadbase its distribution network through this route rather than opening up of branches across the country. "We already have around 34 branches across the country but our growth route will be via the corporate agency route. A lot of business is coming up from say, B and C category towns and it is not feasible to open offices in every such location," he said. Mr Parasnis said that the company was not looking for agents, but was attempting to tap an already existing base of customers. A fully-owned subsidiary of JRG Associates Pvt Ltd, JRG Financial an active member of NSE and NSDL, will now be marketing the life insurance and pension products of HDFC Standard Life. Commenting on the size of the market, Mr Parasnis said that in terms of new business private players have around 9 per cent of the total market share in comparison to life Insurance Corporation of India (LIC) which holds around 91 per cent of the market share. In terms of whole business, he said a fair size of the market would be held by LIC alone. According to the company, Life Insurance premium as a percentage of gross domestic savings is expected to increase from 6-18 per cent over a 10-year period. Life insurance premium is expected to grow by about 18-20 per cent every year with pension premium going up by about 20-30 per cent. With these projected numbers, the number of policies in force will increase from about 10 crore to about 18 crore. HDFC Standard Life is also talking to potential institutional partners in a bid to strengthen its presence in rural and semi-urban areas.

HDFC Life records 260 pc growth

Tribune News Service

Chandigarh, August 27 HDFC Standard Life Insurance Co Ltd has achieved a sum assured of Rs 390 crore in Chandigarh region comprising of UT, Punjab and Haryana within two-and-half years of its operations. It has sold over 26,000 policies in Punjab alone during last financial year and collected Rs 15 crore as first premium, out of Rs 132 crore collected as first premium by selling 1.24 lakh policies throughout the country, said Mr Dilip Gazarao, Head Retail Sales, HDFC Standard Life Insurance here today. Addressing a press conference, he disclosed that the company had registered a growth of over 260 per cent in its business volume during 2002-03 against the previous year. The company has declared, he said, its third successive bonus for policy holders 3.75 per cent to regular income policy holders and 7 per cent on single premium policies. He claimed that cumulative insurance coverage for the policyholders had crossed Rs 5,800 crore mark till June 30, 2003. Mr Gazarao said that the company's endowment and money back polices had been very successful in the northern region against single premium products in other parts of the country. The company was targeting working people in the age group of 25-40 years to sell its pension fund polices. Referring to the high lapse ratio of 6 per cent for new policy holders as against 7-8 per cent in the industry, he said, the financial consultants were asked to approach only genuine buyers, and not on others just to meet their targets. He said the HDFC had also entered into agreement with banks like the Union Bank, HDFC Bank, Indian Bank to sell its products. Talking about the growth in market, Mr Gazarao said, the life insurance premium as a percentage of gross domestic product was expected to increase from 6 per cent to 18 per cent over a 10-year period. The life insurance premium was expected to grow by about 18-20 per cent every year with pension premium income growing by 20-30 per cent. With these projections, he said, the number of policies in force will increase from about 10 crore to about 18 crore by 2010.

About HDFC group

Introduction Helping Indians experience the joy of home ownership. The road to success is a tough and challenging journey in the dark where only obstacles light 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 customer satisfaction. All you need is the courage to innovate, the skill to understand your clientele and the desire to give them your best Today, nearly three million satisfied customers whose dream we helped realise, stand testimony 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 property related services and a training facility. We also offer specialised financial services to our customer base through partnerships with some of the best financial institutions worldwide.

HDFC Bank was incorporated in August 1994, and, as of March 31, 2007, had an nationwide network of 684 branches and 1605 ATM's in 316 Indian towns and cities. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

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Home Loan Services India Private Limited is a wholly owned subsidiary of HDFC Ltd. The company has been floated as a distribution arm of HDFC with an objective of offering doorstep service to prospective clients of HDFC group. HLSIL offers financial management solutions to individuals encompassing among other products Home Loans, Life Insurance, Mutual Funds, Fixed Deposits and property Solutions. Home Loans: HLSIL is present in over 100 locations across the country with 39 offices and over 1600 employees. Financial Management: HLSIL offers financial management solutions in 9 cities and is continuously expanding its reach. HLSIL employs sales persons across all spectrums of financial management enabling them to meet a range of financial needs. HDFC Realty: HLSIL manages the HDFC Realty business and the Website (hdfcrealty.com) which offers property solutions buying , selling , leasing to

Individuals and Corporates. HDFC Realty is present in all the major cities in India as well as in Dubai. The company mirrors the philosophy and values of its parent, HDFC. HDFC's finest investment is in its Human Resources. It draws its personnel from many disciplines. They are the building blocks on which the company's performance & productivity is based". H T Parekh, Founder - Chairman, HDFC HLSIL values integrity, commitment, teamwork and excellence in customer service. Our most valuable assets are our Human Resources. We are truly proud that today we have a highly motivated team of sales persons and that we have the lowest employee turnover rate in the Industr

With over one century of experience in the field of non-life insurance from Chubb and HDFC's expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the consumer insight to make its product range world class and comprehensive. Motor Insurance We understand and care for your vehicle beyond just the policy issue and speedy claims. HDFC Chubb's Motor Insurance product mainly focuses on Motor Package Policy for private cars & two wheelers. Home Insurance With Home Insurance, we will offer you cover for your home and belongings against fire and burglary. Our Home Insurance will bring you the convenience of purchase from HDFC's home loan counters. Accident & Health Accidents can happen anywhere and at anytime, which is why the HDFC Chubb Accident and Travel policy is designed to protect you from the financial consequences. Avail of the Group Accident Policy, Hospital cash-Accident policy and Business Travel policy.

100% BPO focus Intelenet has a unique 'co-sourcing' model with a 100% BPO focus, unlike other firms whose core proficiencies may lie in consulting or IT. We have a proven track record in re-engineering processes along industry lines. Our value-added services vary from customization of processes for clients and knowledge management to the more complex, where technology becomes an enabler for enhanced performance on metrics, reporting tools and middleware. In addition, we have established "Centers of Excellence" for transitioning and project management that are designed to ensure on-time, successful "go-live". Our Process Improvement Team ensures that best practices developed by individual teams are shared throughout the company so that all clients benefit in terms of cost savings, enhanced productivity and quality.