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A SUMMER TRAINING REPORT

ON

CUSTUMER EXPECTATION FROM INSURANCE POLICY

IN

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

Manoj kumar juyal

Roll No. 0934170017

MBA (3rd SEM)

Session: - 2009-2011

INSTITUTE INSTITUTE OF TECHNOLOGY AND MANAGEMENT

ALIGARH

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PREFACE

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PREFACE

This report is a part of my six weeks summer training started from 16 Jun. 2010 till 31th

july 2010 at HDFC Standard Life Insurance Company Limited. I have been appointed

here as a management trainee to get the on job field experience about the marketing and

sales of the all plan of HDFC Standard Life Insurance Company Limited.

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ACKNOWLEDGEMEN

T

ACKNOWLEDGEMENT

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A successful project can never be prepared by the single effort of the person to whom

project is assigned, but it also demand the help and guardianship of some conversant

person who helped the undersigned actively or passively in the completion of successfulproject. In this context as a student of INSTITUTE OF TECHNOLOGY AND

MANAGEMENT ALIGARH. I would first of all like to express my gratitude to Mr.

Deepak Srivastava (Sales Development Manager) for assigning me such a worthwhile

topic customer expectation from insurance policy

I am also like to thank to theprofessors of ITM for there invaluable guidance, keen

interest cooperation inspiration, and of course moral support through my project session.

(MANOJ KUMAR JUYAL)

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EXECUTIVE

SUMMARY

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum

growth and potential as compared to the other sectors. Insurance has the maximum

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growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This

growth potential attracts me to enter in this sector and HDFCStandard Life Insurance

Company Ltd has given me the opportunity to work and get experience in highly

competitive and enhancing sector.

The success story of good market share of different market organizations depends upon

the availability of the product and services near to the customer, which can be distributed

through a distribution channel. In Insurance sector, distribution channel includes only

agents or agency holders of the company. If a company like RELIANCE LIFE

INSURANCE, TATA AIG, and MAX etc has adequate agents in the market they can

capture big market as compared to the other companies.

TABLE OF CONTENTS

1. INTRODUCTION PAGE NO.

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1.1 ABOUT THE INDUSTRY 11

1.2 RANGE OF PRODUCT AND SERVICES 20

1.3 RULES AND REGULATIONS 22

1.4 COMPANY PROFILE 23

1.5 COMPETITION INFORMATION 59

2. RESEARCH METHODOLOGY 73

3. DATA ANALYSIS AND INTERPRETATION 74

4. CONCLUSIONS AND FINDINGS 84

5. SUGGESTION 86

6. LIMITATION 88

7. BIBLIOGRAPH 90

8. ANNEXURES 91

8.1 SAMPLE QUESTION

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INTRODUCTION

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INTRODUCTION

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INSURANCE: THE INDUSTRY SCENARIO

Insurance is one of the oldest known professions in the world economy. The

Indian counterpart is no younger. Life Insurance in its modern form came to India from

England in the year 1818. Oriental Life Insurance Company started by Europeans in

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Calcutta was the first life insurance company on Indian Soil. All the insurance companies

established during that period were brought up with the purpose of looking after the

needs of European community and Indian natives were not being insured by these

companies. However, later with the efforts of eminent people like Babu Muttylal Seal,

the foreign life insurance companies started insuring Indian lives. But Indian lives were

being treated as sub-standard lives inviting heavy premiums.

The era of change was ushered in by Bombay Mutual Life Assurance Society, the

first Indian life insurance company in the year 1870 that covered Indian lives at normal

rates. Starting as Indian enterprise with highly patriotic motives, insurance companies

came into existence to carry the message of insurance and social security through

insurance to various sectors of society. Bharat Insurance Company (1896) was also one

of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave

rise to more insurance companies. The United India in Madras, National Indian and

National Insurance in Calcutta and the Co-operative Assurance at Lahore were

established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth

in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in

Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay

Life) were some of the companies established during the same period.

In 1994, the committee submitted the report and some of the key recommendations

included:

Structure

o Government stake in the insurance Companies to be brought down to

50%

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o Government should take over the holdings of GIC and its subsidiaries

so that these subsidiaries can act as independent corporations.

o All the insurance companies should be given greater freedom to

operate.

Competition

o Private Companies with a minimum paid up capital of Rs.1bn should

be allowed to enter the industry.

o No Company should deal in both Life and General Insurance through a

single entity.

o

Foreign companies may be allowed to enter the industry incollaboration with the domestic companies.

o Postal Life Insurance should be allowed to operate in the rural market.

o Only one State Level Life Insurance Company should be allowed to

operate in each state.

Regulatory Body

o The Insurance Act should be changed.

o An Insurance Regulatory body should be set up.

o Controller of Insurance (Currently a part from the Finance Ministry)

should be made independent

Investments

o Mandatory Investments of LIC Life Fund in government securities to

be reduced from 75% to 50%

o 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)

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Customer Service

o LIC should pay interest on delays in payments beyond 30 days

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

plans

o Computerisation of operations and updating of technology to be

carried out in the insurance industry

The committee emphasised 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.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

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

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

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies. The other decisions taken simultaneously to

provide the supporting systems to the insurance sector and in particular the life insurance

companies were the launch of the IRDAs online service for issue and renewal of licensesto agents.

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

the insurance companies would have a trained workforce of insurance agents in place to

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sell their products. Since being set up as an independent statutory body the IRDA has put

in a framework of globally compatible regulations.

Reforms have marked the entry of many of the global insurance majors into the

Indian market in the form of joint ventures with Indian companies. Some of the key

names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and

Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player

LIC, which has responded to the competition in an admirable fashion by launching new

products and improving service standards. The following are the key winds of change

brought about by privatisation.

Market Expansion: There has been an overall expansion in the market. This has

been possible due to improved awareness levels thanks to the large number of advertising

campaigns launched by all the players. The scope for expansion is still unlimited as

virtually all the players are concentrating on large cities and towns - except by LIC to an

extent there was no significant attempt to tap the rural markets.

Customer Service: Not unexpectedly, this was one area that witnessed the most

significant change with the entry of new players. There is an attempt to bring in

international best practices in service and operational efficiency through use of latest

technologies. Advice and need based selling is emerging through much better trained

sales force and advisors. There is improvement in response and turnaround times in

specific areas such as delivery of first policy receipt, policy document, premium notice,

final maturity payment, settlement of claims etc. However, there is a long way to go and

various customer surveys indicate that the standards are still below customer expectation

levels.

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Channels of Distribution: Till two years back, the only mode of distribution of life

insurance products was through Agents or Insurance Consultants, as we call them. While

agents continue to be the predominant distribution channel, today a number of innovative

alternative channels are being offered to consumers. Some of them are banc assurance,

brokers, the Internet and direct marketing. Though it is too early to predict, the wide

reach of bank branch network in India could lead to banc assurance emerging as a

significant distribution mechanism.

STRATEGIC ALTERNATIVES IN THE INDIAN INSURANCE MARKET

If one analyses the history of growth of the insurance industry since reforms, it is

marked by all-round growth of all players. More or less all players (including the market

leader LIC) have aggressively recruited and trained advisors, appointed agents, launched

new products, improved customer service standards and revamped/expanded their

distribution networks. If at all there was any major difference between players it was only

in time lag in launching of services. Every player would like the customers to believe that

its service standards are the best or that its agents are the most informed and ethical, but

is debatable whether there are any significant differences. In other words, each company

is trying to be everything to everybody.

Our argument is that the strategy of being everything to everybody is risky. Some

players justify the above strategy on the basis that the Indian market is huge and it can

accommodate everybody. Still, in a market where it is difficult to distinguish oneself

sufficiently on service or any other parameter to be able to charge a premium, it will lead

to unmitigated price competition to the detriment of all players. One may achieve sales

turnover, but margins and profitability will suffer severely. While there is room for a few

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scale players with a finger in every pie, it is profitable for other players to focus on

different segments to survive and thrive in a multi-firm open environment. While each

company has to choose its own unique positioning based on its unique strengths some of

the generic positioning alternatives are mentioned below. Needless to say the positioning

choices discussed here are not mutually exclusive and can be overlapping.

VARIETY-BASED POSITIONING:

This type of positioning is based on varieties in products and services rather than

customer segments. It is a sensible strategy for those companies who have distinctive

advantages or strengths in offering certain products and services. One such example

is Birla Sun life Insurance, which has been placing particular focus on investment-

related products since its launch in India. Through its superior fund management

capabilities, the insurance company can deliver better returns on its investment-linked

products and thereby carve for itself a leadership position in this segment. Then there

is the entire category of pension products which is widely touted to have immense

growth potential in India due to imminent pension reforms. It is possible to achieve

profitable positioning by focusing and excelling in only pension products.

NEED-BASED POSITIONING:

The insurance needs of customers vary significantly for different groups of

customers. This is the most commonly understood positioning and is based on the

differing needs of different groups of consumers. This can be done successfully if a

company has unique strengths to service a group of customer needs better than others.

However, in India most of the life insurance companies have a wide variety of products

tailored for different customer needs and there is no company focusing on a particular

customer need.

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An example would be a life insurance company that focuses only on High Net-

worth Individuals (HNIs). The needs of HNIs would be quite different from those of a

general consumer and would require an entirely different marketing mix right from the

type of products offered and the way they are distributed, to the promotion methods

employed.

ACCESS-BASED POSITIONING:

Positioning of customers can also be done by the way they are accessible. That is

different groups of customers may be accessible in different ways even though they may

have similar needs. Access is typically a function of customer geography or customer

scale. There is excellent opportunity in the insurance industry to employ access-based

positioning by targeting the rural insurance sector. The rural market for life insurance is

very different from the urban market in terms of needs, income levels and distribution

(seasonality, for example), penetration of media and so on. So far except for LIC, no

other player has paid any attention or focus on the rural sector. Contrary to common

perception it is a big opportunity as emphasised repeatedly by such eminent strategists

like C.K. Prahlad. Rural market can be a highly profitable position if one is able to

carefully plan and tailor an entire set of low-cost activities of advertising, distribution,

and product design etc. to successfully exploit the potential.

FIVE LIFE INSURANCE MYTHS

People who choose life insurance policies based on myths about insurance could

end up making a costly decision. It is important to understand which kind of life

insurance is right for you or whether you need insurance at all. Life insurance policies use

legal language and have different names in different companies, which can scare you

from learning about them. So, here are five common life insurance myths to help you

from making the wrong choice.

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Myth 1: I Am Alive, Therefore I Need Life Insurance

Life insurance protects dependents and guarantees a steady source of income after

their breadwinner's death. Single people without dependents or childless couples who

earn enough to lead a good life need not consider buying insurance. Purchase life

insurance for a child only if you depend on her income. As for retired people, unless you

are insecure that your partner would desert you or if you depend on a pension that would

disappear upon your partner's death then you should get life insurance

Myth 2: I Don't Work So I Don't Need Insurance

Even those without jobs need life insurance. A jobless parent with dependent

children need not buy life insurance, as there's no pay check to replace. However

childcare could cost $10,000 to $30,000 annually. So estimate the amount it would cost

for your family and use that number for your "salary" when calculating life insurance

needs.

Myth 3: Odds Are I Won't Need It, So Why Spend The Money?

Why skip life insurance to save money? The reason why life insurance is cheaper

for younger people to buy is because chances of death low for youths. But life is unsure

and the time of our death is not predetermined therefore do buy life insurance to provide

for your family in case the worst does happen. If right kind of insurance is bought you

could provide enough financial security to your dependents.

Myth 4: If It's More Expensive, It Must Be Worth It

Term insurance is cheaper, better choice for most of us since term life insurance is

"pure" insurance with no investment add-on and guarantees your coverage till the time

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you pay your premium. Term insurance is specifically for those who want life insurance

for a stipulated duration of time. Level term insurance is probably the best option since

premiums don't increase while you have it. There are various types of Permanent

insurance such as whole life, universal and variable, and more but is seven to eight times

more expensive than term. A permanent insurance policy combines life insurance with an

investment that builds up cash value which you can exploit by borrowing or surrendering

(cashing in) the policy.

Myth 5: It's Such a Hassle to Get Insurance

If you need to change your life insurance, never cancel existing policies until your

new insurance is in place. You should not keep any gaps in your insurance coverage.

Most reputed companies provide online facility to download quotes and application

forms on the Internet. You can easily shop for the best possible rates online and then

consult a trusted agent to purchase the insurance. After contacting an agent or company

they themselves will arrange to collect the medical information they require.

ROLE OF LIFE INSURANCE

Role 1: Life insurance as Investment

Insurance is an attractive option for investment. While most people recognize the

risk hedging and tax saving potential of insurance, many are not aware of its advantages

as an investment option as well. Insurance products yield more compared to regular

investment options, and this is besides the added incentives offered by insurers.

INSURANCE is a unique investment avenue that delivers sound returns in addition to

protection.

Role 2: Life insurance as Risk cover

First and foremost, insurance is about risk cover and protection financial

protection, to be more precise to help outlast lifes unpredictable losses. Designed to

safeguard against losses suffered on account of any unforeseen event, insurance provides

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you with that unique sense of security that no other form of investment provides. By

buying life insurance, you buy peace of mind and are prepared to face any financial

demand that would hit the family in case of an untimely demise.

Role 3: Life insurance as Tax planning

Insurance serves as an excellent tax saving mechanism too. The Government of India has

offered tax incentives to life insurance products in order to facilitate the flow of funds

into productive assets. Under Section 88 of Income Tax Act 1961, an individual is

entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life

of his/her children or adult children. The rebate is deductible from tax payable by the

individual or a Hindu Undivided Family. This rebate is can be availed up to a maximum

of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year,

you can buy anything upwards of Rs 10 lakh in sum assured. (Depending upon the age of

the insured and term of the policy) This means that you get an Rs 12,000 tax benefit. The

rebate is deductible from the tax payable by an individual or a Hindu Undivided Family

RANGE OF PRODUCT AND SERVICES

Group Term Insurance:

HDFC Standard Life Insurance offers a Group Insurance scheme for companies called

'Group Term Insurance'. This product has been designed to offer innovative features and

a high degree of customization.

Gratuity Plan

The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer and

gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The

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contributions that you decide to invest in this policy will assist you in meeting your

gratuity obligations in a systematic manner

Leave Encashment Plan

The HDFC Leave Encashment Plan is a flexible insurance policy which helps employers

and leave encashment scheme trustees in funding leave encashment obligations without

the employers profit and loss account being unexpectedly impacted.

Development Insurance Plan:

This product is well suited for the economically weaker sections of society and caters

specifically to their needs. It makes available life cover at affordable rates.

Protection Plans

HDFC Term Assurance Plan

HDFC Loan Cover Term Assurance Plan

HDFC Home Loan Protection Plan

Children's Plans

HDFC Children's Plan

HDFC Unit Linked Young Star II

HDFC Unit Linked Young Star Plus II

HDFC Unit Linked Young Star Champion

Retirement Plans

HDFC Personal Pension Plan

HDFC Unit Linked Pension II

HDFC Unit Linked Pension Maxi miser II

HDFC Immediate Annuity

Savings & Investment Plans

HDFC Unit Linked Endowment Plus II

HDFC SimpliLife

HDFC Unit Linked Endowment II

HDFC Unit Linked Enhanced Life Protection II

HDFC Unit Linked Wealth Maxi miser Plus

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HDFC Unit Linked Endowment Winner

HDFC Endowment Assurance Plan

HDFC Money Back Plan

HDFC Single Premium Whole of Life Insurance Plan

HDFC Assurance Plan

HDFC Savings Assurance Plan

Health Plans

HDFC Critical Care Plan

HDFC Surgi Care Plan

Group Plans

Group Term Insurance Plan

Group Variable Term Insurance Plan Group Unit Linked Plan - Gratuity

Group Unit Linked Plan - Superannuation

Group Unit Linked Plan - Leave Encashment

RULES AND REGULATIONS

The Insurance Regulatory and Development Authority

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

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

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies.

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The other decision taken simultaneously to provide the supporting systems to the

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

IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that theinsurance companies would have a trained workforce of insurance agents in place to sell

their products.

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

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies have been registered.

COMPANY PROFILE

FORMATION OF COMPANY

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HDFC Standard Life Insurance Company Ltd. is one of Indias leading private

life insurance companies, which offers a range of individual and group insurance

solutions. It is a joint venture between HDFC Ltd., India's largest housing financeinstitution and Standard Life Assurance Company, Europe's largest mutual life company.

It was the first life insurance company to be granted a certificate of registration by the

IRDA on the 23rd of October 2000.

HDFC

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since

emerged as the largest residential mortgage finance institution in the country. The

corporation has had a series of share issues raising its capital to Rs. 119 crores. The net

worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates

through 75 locations throughout the country with its Corporate Headquarters in Mumbai,

India. HDFC also has an international office in Dubai, U.A.E., with service associates in

Kuwait, Oman and Qatar.

STANDARD LIFE

Standard Life is Europe's largest mutual life assurance company. Standard Life,

which has been in the life insurance business for the past 175 years, is a modern company

surviving quite a few changes since selling its first policy in 1825. The company

expanded in the 19th century from its original Edinburgh premises, opening offices in

other towns and acquiring other similar businesses. Standard Life currently has assets

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exceeding over 70 billion under its management and has the distinction of being

accorded "AAA" rating consequently for the past six years by Standard & Poor.

THE JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be

granted license by the IRDA to operate in life insurance sector. Each of the JV player is

highly rated and been conferred with many awards. HDFC is rated 'AAA' by both

CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and

Standard and Poors. These reflect the efficiency with which HDFC and Standard Life

manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively. HDFC

Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is

the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a

stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

Brief Profile of the Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the

Chairman and Director of Housing Development Finance Corporation

Limited (HDFC Limited). He joined HDFC Limited in a senior

management position in 1978. He was inducted as a whole-time director

of HDFC Limited in 1985 and was appointed as its Chairman in 1993.

Mr. Parekh is a Fellow of the Institute of Chartered Accountants

(England & Wales).

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Mr. Keki M. Mistry joined the Board of Directors of the Company in

December, 2000. He is currently the Vice Chairman and Chief

Executive Officer of HDFC Limited. He joined HDFC Limited in 1981

and became an Executive Director in 1993. He was appointed as its

Managing Director in 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.

Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She

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 and Deputy

Managing Director in 2007. She is responsible for overseeing all aspects

of lending operations of HDFC Limited.

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Mr. David Nish joined Standard Life on 1 November 2006 as Group

Finance Director and remained in that position until December 2009. He

is appointed as the Executive Europe on 1st January 2010. In 2000 he

was awarded the Scottish Business Awards Finance Director of the Year

and from 2004 to 2005 he served on the Government Employers

Pension Task Force. He is a member of the Institute of Chartered

Accountants of Scotland. He joined the Board of Directors in February

2010.

Mr. Nathan Parnaby is appointed as the Chief Executive, Europe &

Asia of Standard Life in the year 2010. Nathan joined Standard Life in

1982 as Investment Manager, responsible for all UK net funds. He was

appointed a Director of the Standard Life Investments board. He is a

Mathematics graduate from Oxford University and the Member of the

Securities Institute. He joined the Board of Directors in December 2009.

Mr. Norman K. 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

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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 practicing 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 nationalized 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 (Honors) from Birla Institute of Technology and Sciences.

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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. A. K.T. Chari has joined HDFC Standard Life as a Director on

March 10, 2010. Mr. Chari has completed his Electrical Engineering

from Madras University in 1962. He is associated with Infrastructure

Development Finance Company Ltd. (IDFC) for last 11 years. Currently

he is handling project finance for infrastructure projects at IDFC. Prior

to this he was associated with Infrastructure Development Bank of India

(IDBI) from 1975 to 1999.

Mr. Gerald E. Grimstone was appointed Chairman of Standard Life in

May 2007, having been Deputy Chairman since March 2006. He

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became a director of the Standard Life Assurance Company in July

2003. He is also Chairman of Candover Investments plc and was

appointed as one of the UKs Business Ambassadors by the Prime

Minister in January 2009. Gerry held senior positions within the

Department of Health and Social Security and HM Treasury until 1986.

He then spent 13 years with Schroders in London, Hong Kong and

New York, and was Vice Chairman of Schroders worldwide

investment banking activities from 1998 to 1999. He is the Alternate

Director to Mr. David Nish.

Mr. Michael G Connarty is responsible for Standard Life's

investments in life assurance Joint Ventures in India and China. He

holds a degree in Law and MBA. He has worked with Standard Life for

33 years in managerial positions covering a number of fields such as

Pensions law, International Marketing, Operational Management,

Strategy, Risk, Compliance, Company Secretarial and Banking. He has

acted as Project Manager for the start-up project of the Company in

2000. He is the Alternate Director to Mr. Norman K. Skeoch.

Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life.

Before joining HDFC Standard Life, he was the MD and CEO of

Infosys BPO and was also heading an Independent Validation Services

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unit in Infosys Technologies. He started his career with Bank of

America delivering diverse roles ranging from Head of Technology

Investment Banking for Asia, Regional Finance Head for Wholesale

Banking and Global Markets and Chief Finance Officer of Bank of

America (India). He moved to Credit Lyonnais Securities in 2001 in

Singapore where he headed their investment banking franchise for

South East Asia and structured finance practice for Asia before joining

Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985

from Birla Institute of Technology and Science, Pilani and MBA in

1987 from IIM, Ahmadabad.

Mr. Paresh Parasnis is the Executive Director and Chief Operating

Officer of the company. A fellow of the Institute of Chartered

Accountants of India, he has been associated with the HDFC Group

since 1984. During his 16-year tenure at HDFC Limited, he was

responsible for driving and spearheading several key initiatives. As one

of the founding members of HDFC Standard life, Mr. Parasnis has been

responsible for setting up branches, driving sales and servicing strategy,

leading recruitment, contributing to product launches and performance

management system, overseeing new business and claims settlement,

customer interactions etc.

Brief Profile of the Management Team

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Mr. Amitabh Chaudhry

Managing Director and Chief Executive Officer

Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC

SLIC.

Before joining HDFC Standard Life in January 2010, he was the Managing Director and

CEO of Infosys BPO and was also heading an Independent Validation Services unit in

Infosys Technologies. Mr. Chaudhry started his career with Bank of America delivering

diverse roles ranging from Head of Technology Investment Banking for Asia, Regional

Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of

Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore

where he headed their investment banking franchise for South East Asia and structured

finance practice for Asia before joining Infosys BPO in 2005.

Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and

Science, Pilani and MBA in 1987 from IIM, Ahmadabad.

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Mr. Paresh Parasnis

Executive Director and Chief Operating Officer

Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDFC

Standard Life.

A fellow of the Institute of Chartered Accountants of India, he has been associated with

the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was

responsible, for driving and spearheading several key initiatives. As one of the founding

members of HDFC Standard life, Mr. Parasnis has been responsible for setting up

branches, driving sales and servicing strategy, leading recruitment, contributing to

product launches and performance management system, overseeing new business and

claims settlement, customer interactions etc.

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Ms. Vibha Padalkar

Chief Financial Officer

Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life.

Ms. Padalkar joined HDFC Standard Life in August 2008 after a seven year stint as

Executive Vice President-Finance at WNS Global Services, a NYSE listed leading global

business process outsourcing company. Vibhas key achievement during her tenure at

WNS was to lead a team that successfully completed the Groups IPO on the New York

Stock Exchange in a short span of six months. Prior to WNS, Vibha was with Colgate

Palmolive India for 7 years, including a short posting to the Group's New York

headquarters.

Ms.Padalkar became a member of the Institute of Chartered Accountants in England and

Wales in 1992, after having completed the last part of her schooling as well as college

education.

Mr. Ashley Rebello

Chief Actuary and Appointed Actuary

Mr. Ashley Rebello is the Chief Actuary and Appointed Actuary of HDFC Standard

Life.

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He completed his degree in Mathematics at Imperial College, London, before joining

Prudential UK in 1996. During his six years at Prudential he worked in Product

Development and Pricing, Valuation and in the Appointed Actuary's team. Subsequently

he worked as an actuarial consultant at PricewaterhouseCoopers for five years, working

for over 20 life insurance companies on a large variety of assignments in the UK,

Netherlands, Switzerland, Greece and the US. He joined Standard Life in April 2008 and

Immediately move to HDFCSL .

Mr.Vikram Mehta

General Manager, Sales and Marketing

Mr.Vikram Mehta heads the Sales and Marketing function for HDFC Standard Life.

Mr. Mehta joined HDFC Standard Life in February 2009. Before joining HDFC Standard

Life, he was associated with Citibank for 16 years serving various responsibilities

including the Head for Direct Sales - Citibank Credit Cards division in Germany,

Regional Director East - Citibank NA, India, and Acquisitions Head Credit Cards,

Central and Eastern Europe cluster. Mr. Mehta started his career with Reckitt and

Colman (now Reckitt Benckiser) in 1988, and was associated with the company for 4

years. He has been a part of FMCG and banking industry for over 20 year.

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Mr. Prasun Gajri

Chief Investment Officer

Mr. Prasun Gajri is the Chief Investment Officer of HDFC Standard Life.

Mr. Gajri joined HDFC Standard Life in April 2009 with a rich experience of 14 years in

investments and banking industry. He started his career in 1995 with Citibank and was

associated with it for over 6 years delivering various roles. He joined Tata AIG Life

Insurance Company in October 2001 to start the investment function and stayed there

until April 2009, the last role being that of the Chief Investment Officer.

He holds a PGDM from IIM Ahmadabad and is also a CFA Charter holder.

Head - Marketing, HDFC Standard Life Insurance Co. Ltd.

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is

also a sector which will lead to benefits across the full spectrum, from the individual who

will now have wider choices, to the economy which will see increased savings, to the

infrastructure sector which can look forward to long term funding being available. In an

under-insured economy, newer channels of distribution will have to be utilized to

intensify the reach of insurance both in urban and rural markets. This will create huge

employment opportunities not only within insurance companies but also as agents and

consultants of insurance companies.

Indian Bank enters into a strategic tie-up with HDFC Standard Life Insurance Company

Ltd.

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INDIAN BANK with over 90 years of standing in the financial market with the

reputation for excellent customer service, has entered into a strategic tie-up with HDFC

Standard Life Insurance Company Ltd., the first in the private sector to receive the

Certificate of Registration for foray into Life Insurance business for distribution of

latters insurance products. A Memorandum of understanding has been signed by the

Bank with the Insurance Company on 8th February 2001 to this effect. The Bank has to

its strength 1377 branches spread across the country with ready built infrastructure and

the expertise in marketing financial products. Initially the insurance products will be

marketed through select branches in the South where the Bank has strong presence. The

insurance products from HDFC Standard Life, will be competitive and customer

friendly. The tie-up would benefit the Bank's customers, as they will have wider choice

of life insurance policies at competitive premium.

HDFC Chubb General Insurance Company Limited Starts Operations in India

To offer multiple non-life insurance products under Auto & Home, Accident &

Health and Commercial Insurance

Speed and quality of service to be industry benchmarks

Mumbai, October 17, 2002: HDFC Chubb General Insurance Company Limited, a joint

venture between HDFC, India's premier financial services company, and The ChubbCorporation, leading global non-life insurer, formally launched its operations in Mumbai

today.

Deepak Parekh, Chairman, HDFC Chubb and Dean O'Hare Chairman and CEO, The

Chubb Corporation, accompanied by U.S. Ambassador to India, Robert D Blackwill,

presided over the launch ceremony. Offices in New Delhi, Bangalore and Hyderabad

have also been opened simultaneously.

HDFC Chubb plans to introduce over time three categories of non-life insurance products

in the Indian market:

Auto & Home (Personal Lines)

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Accident & Health - comprising of three products: Group Accident Policy,

Hospital Cash (Accident only) and Business Travel Policy - Accident & Sickness

(Single Trip and Annual Multi Trip)

Commercial Insurance - products to cover the broad spectrum of the maincommercial classes of property and also Marine and Casualty classes of business

In the medium term, HDFC Chubb also plans to introduce its range of specialty products

in the Executive Protection and Financial Institution areas.

Today it announced the launch of its first product - Motor Insurance. The other products

will be rolled out in phases.

HDFC Chubb has been set up with a capital of Rs. 101 Crores, in which HDFC holds

74% and The Chubb Corporation 26%.

Problem Of The Organization

Here the main problem is to known the level of awareness about life insurance among

those who can afford to buy insurance especially now when a no. of private insurer has

entered the market. The researcher would also like to establish the main reasons being

buying a life insurance policy, to know what type of cover is most preferred by people.

After going through the literature review, the researcher has found out that people still believe in government insurance policies i.e. LIC policies, even many of them dont

known about that ICICI is in insurance sector, with prudential which is no. 1 insurance

company of U.K. Also in todays world when privatization has been given the green

signal the people rely more on Govt. insurance companies than in private and this would

take time when the general awareness would change.

Competition Information

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.

Om Kotak Mahindra Life Insurance Co. Ltd.

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Birla Sun Life Insurance Co. Ltd.

Tata Aig Life Insurance Co. Ltd.

SBI Life Insurance Co. Ltd.

ING Vysya Life Insurance Co. Pvt. Ltd.

Allianz Bajaj Life Insurance Co. Ltd.

Metlife India Insurance Co. Pvt. Ltd.

AMP SANMAR Assurance Co. Ltd.

Aviva Life Insurance Company Ltd.

HDFC Standard Life - stuck in the standard mould

Venkatachari Jagannathan

10 April 2001

So what is new about your insurance policies? This is the question that dogs not only Mr.

Deepak M. Satwalekar, managing director and chief executive officer, HDFC Standard

Life Insurance, but also other new private life insurers.

One of the arguments advocated for opening up of the insurance sector is that the new

players tying up with foreign insurers would offer innovative products, something that

private insurers have so far not shown.

HDFC Standard Life, a joint venture between Indias leading housing finance institution,

Housing Development Finance Corporation (HDFC) and the UK-based Standard Life

Assurance Company, began its operations by introducing two policies - endowment and

money back with slight variation from the products that have been in existence for

several decades in this country.

The variation, observers say, is a marketing ploy to make comparisons with big brother

Life Insurance Corporation of India's (LIC) products.

Justifies Mr. Satwalekar, "As per our market survey, it was found that the above were the

two most popular products and we decided to launch them."

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While that is true, one of the reasons for endowment and money back policies to be more

popular than others is the fact that Life Insurance Corporation of India (LIC) agents

pushed them vigorously. The reason - commission on these products is higher than other

products. As a result the market is not aware about other usual products that are in LIC's

portfolio.

That apart there is no great difference between the premium rates of LIC and of HDFC

Standard Life. According to industry sources, the premium charged by the company for

add-on benefits to its basic cover is slightly higher than that of LIC rates.

What is interesting to note is that HDFC Standard Life is using LIC's mortality table and

has pegged its premium more or less at par with that of the latter. Here again it is to be

recalled that during the run up to the opening up of the sector LIC was castigated for non

revision of its mortality table for decades despite the fact that life expectancy has

increased several times over the years.

Given this situation is it not fair for HDFC Standard Life, as a new entrant, to charge a

lower rate by devising its own mortality table with the help of 175-years old Standard

Life Assurance?

Responding to that Mr. Nick Taket, actuary and general manager (finance) of HDFC

Standard Life remarks, "The premium and the policy returns- bonus on policies- are

inter-linked. Low premium will entail lower returns and vice versa. Hence we decided to

take the second route."

But HDFC Standard Life, according to Mr. Satwalekar, will be able to declare bonus to

its policyholders only after three years when they expect to have valuation surplus (the

difference between assets and liabilities excluding shareholders funds).

In order to overcome this jinx and capture new business, industry sources say that new

companies may declare bonus by transferring funds from shareholders account. And for

this purpose the promoters are expected to infuse additional funds during the initial years.

In fact one of the demands from the new entrants in life insurance is to tax exempt

moneys transferred from shareholders funds to valuation surplus account so that they can

declare bonus from the first year of operations.

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"The essence of regulations is to protect the policyholders money. So there is nothing

wrong in transferring money from shareholders funds to valuation surplus account,"

justifies Mr. Taket.

Not all agree with this school of thought. "Declaring bonus out of shareholders funds is

akin offering premium rebate which is expressly prohibited by the Insurance Act", warns

Mr. R. Ramakrishnan, chairman, Reserve Bank of India's advisory group on insurance

and member, Malhotra Committee on Insurance Reforms.

A bonus declared out of shareholders funds would give a misleading impression to the

policyholders about the financial health of the life insurer. As per the Insurance Act,

bonus to policyholders should be declared only out of valuation surplus or free reserves

created out of surplus during the earlier years. All other moneys that are channelled to the

surplus account should be reflected in the revenue account, he asserts.

Be that as it may, HDFC Standard Life, which began with a paid up capital of Rs.163

crore, expects additional funds to the tune of Rs.200 - Rs. 300 crore from the promoters

over a period of three years.

"Life insurance is a strange business. The more business one underwrites the more money

one needs for provisioning and to meet the solvency norms," says Mr. Satwalekar. The

company will not be making any profits for the first five years, he adds.

Meanwhile come July, HDFC Standard Life will be launching its pension

product/annuity policy and unit linked insurance product. The company also plans to

launch a mortgage redemption policy that is similar to LIC Housing Finance and LIC

scheme.

Under this scheme HDFC housing loan borrowers would be asked to take out a life

insurance policy. While the premium will take care of the debt, the borrower would have

to service only the interest component. The insurance company is expected to rake in

sizeable business as considering its parent companys loan disbursement of Rs. 4,492

crore (fiscal 2000).

This is set to increase further given that HDFC has taken over Hometrust Housing

Finance, besides taking a 28 per cent stake in Gruh Finance Ltd, a company floated with

cement major, Gujarat Ambuja Cement.

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Through a network of 200 financial consultants, HDFC Standard Life has already sold

around 6,000 out of targeted 25,000 policies. In order to fulfil its licensing norms of

doing stipulated rural business the company is tying up with NGO's.

The other marketing channel that the company will be using is the banks and corporates.

The company has signed an agreement with Indian Bank and Srei International Finance

for the purpose.

According to Mr. Taket, the company hopes to earn around Rs. 13 crore during the first

year and also enrol around 2,500 agents, orfinancial consultants as the company would

like to term them.

The area where the company largely differs with that of LIC is in its target market

segment. According to Mr. Satwalekar, the company's target segment is the people in the

age group of 20-59 years whereas for LIC the segment is those who are between 15-59

years of age.

With three offices functioning now - Mumbai, Delhi and Chennai- HDFC Standard Life

according to Mr. Pankaj Seith, head - marketing, plans to open branches in 18 more

cities.

In the final count, the launch of Life Insurance Company fills the gap in the entire gamut

of financial services offered by HDFC group. What HDFC still lacks is a general

insurance outfit which, according to Mr. Parekh, chairman of HDFC, may happen by this

December since the financial institution is talking to some overseas general insurers for a

possible collaboration.

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HDFC STANDARD LIFE INSURANCE (New business)

The first year premium income increased by over 58% from Rs. 1,026.18 crores

in the previous year to Rs.1, 624.23 crores in the current year. The cumulative Sum

Assured in respect of policies issued increased fromRs.47,730.40 crores as at 31st March,

2006 to Rs.67,192.97 crores as at 31st March, 2007.During the year, the company

introduced a revised version of the Group as well as Individual Unit Linked Plans to

conform to the new guidelines issued by the IRDA. The company now has a portfolio of

21 retail and 6group products, along with five optional rider benefits catering to the

savings, investment, protection and retirement needs of the customer. Most retail

products are offered on both, the conventional and unit linked platforms.

The Endeavour of the sales force is to help customers assess their financial and

insurance needs and then offer them an appropriately customized solution through the

combination of one or more riders together with the basic plan. As the age profile of our

customers is relatively young, the company has made a conscious effort to offer them

long term policies, with adequate life cover. We believe that in most cases a regular

premium paying policy would be in the interest of the policyholder- 80% of the policies

written this year are regular premium policies.

The company has significantly leveraged the barbell shaped demographic profile of the

population and is one of the biggest providers of

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i) Retirement solutions for the individual market segment,

ii) Solutions for planning

Childrens financial futures. The market for company retirement plans is yet evolving

and is currently very pricing sensitive. The company is a key player in the group business

market. During the year, the company issued over 5,23,000 policies and has covered

more than8,77,000 lives. Distribution

OFFICES

In its drive to deepen and widen the penetration in the market, the company

opened an

Additional 107 offices during the year, taking the total to 276 across 28 regions. In

addition the company also adopted the Hub and Spoke model and opened 162 spokes

during the year. Through the network of these offices the Companys Financial

Consultants, Corporate Agents and Brokers are able to service Customers in almost 700

cities and towns across the country.

FINANCIAL CONSULTANTS

The Companys distribution strategy continues to lay strong emphasis on the

development of the agency channel. The number of licensed Financial Consultants

appointed by the company increased from over 33,000 in the previous year to over

74,000 in the current year, with a large part of the increase happening in the latter part of

the year. This positions us well to take advantage of a larger trained sales force in the

coming year. The company provides extensive and thorough training, to not only Comply

with the regulatory requirements, but also to equip the financial consultants to

Appropriately assess the customers insurance needs. The needs based analysis

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approach Adopted by our sales force has resulted in a significant increase in the average

premium,

Even beyond the limits of tax benefits available

CORPORATE AGENTS

Simultaneously the company took advantage of the interest in distributing

insurance

Products that was evinced by banks and other corporate agents. This channel has yielded

good results and accounts for over 43% of all first year premia collected during the year.

RURAL & SOCIAL SECTOR OBLIGATIONS

Under the IRDA (Obligations of Insurers to Rural Social Sectors) Regulations,

2000, an

insurer is required to meet the prescribed obligations pertaining to rural and social

sectors.

The company has focused its attention in a few rural areas and has seen gratifying results.

As against a regulatory requirement of writing 18% of all policies in rural areas, the

company has issued over 1,21,000 policies accounting for more than 23% of all policies

issued during the year. Two of our financial consultants operating exclusively in rural

areas have also qualified for the internationally recognized Million Dollar Round Table

(MDRT) club. In addition, during the current financial year, the company has covered

27,284 lives under the social sector category, as against the requirement of 25,000 lives.

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SERVICING THE CUSTOMER

During the year, the company has established additional touch points for

rendering effective and efficient customer service. The customer can now visit our

offices, call the Service Helpline, send an email, access our service through the webportal or through the Financial Consultants. Premium payments can be made easily using

options like the direct debit facility (through the Electronic Clearing System) as also

through net banking that has been enabled

CAPITAL

During the year, the company raised the paid-up equity share capital from Rs. 620

crores

To Over Rs. 801 crores. Further the company also enhanced its authorized capital from

Rs. 620 Crores to Rs. 1,500 crores. The shares subscribed to by Standard Life Assurance

Companies are yet to be allotted and are awaiting approval from IRDA since Standard

Life Assurance Company had demutualised during the year

INFRASTRUCTURE

During the year, the Company has invested in additional infrastructure capacity

and human

Capital, in terms of offices, technology, staff, financial consultants, in order to be well

Positioned to increase the growth momentum in the year ahead.

The company stepped up the recruitment programme in the latter part of the year in

preparation for the next year. Many of the newly recruited sales employees will become

fully productive over the coming year.

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HUMAN RESOURCE

The company had 8,457 employees as of March 31, 2007 as compared to 3,043

Employees as of March 31, 2006. Under the provisions of Section 217 (2A) of the

Companies Act, 1956 and the rules framed there under, the names and other particulars of

employees are set out in the annexed to this Report.

TECHNOLOGY

The company has been investing in technology to ensure efficient processing of

business and to be in a position to offer value added services to customers. By

networking its branches across the country and setting up a second processing center in

Chennai, the company has taken effective steps towards ensuring Business Continuity.

Their investments in workflow and imaging technology through best of breed solutions

have helped it manage increasing volumes without affecting service standards. As a

result, the company, in the last year, has been awarded the Intelligent Enterprise Award

by the Express Computer Magazine Part of the Indian Express Group. The company

has also used the internet effectively to service both policyholders and its agency force.

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TRAINING

Employee training is an integral part of our business strategy. The company

continues to

invest heavily into the development of its manpower resources. This is an ongoing

activity

with investments being made to reap benefits in the years to come. During the year, a

large scale training campaign was carried out covering the

EMPLOYEES

Sales and operations, Financial consultants and alternate channel Partners and

their associates on the Compliance necessitated by the Guidelines on Anti Money

Laundering mandated by the IRDA. Risk Management Policy The company has a Risk

Management policy. This involved risk identification, impact evaluation and mitigant

identification exercise. A review mechanism has also been put in place to track the

movement of various risks, both at the unit level and at the corporate level. Regular

updates in this regard will be placed before the Audit Committee of Directors and the

board of directors. Particulars Regarding Conservation of Energy, TechnologyAbsorption and Foreign Exchange Earnings and Expenditure Since the company does not

carry out any manufacturing activity and has no dealings in foreign exchange, the

particulars in the Companies (Disclosure of Particulars in the Report of the Board of

Directors) Rules, 1988 are not applicable. Dividend As the company has not earned

profits, the directors do not recommend any dividend.

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ADVERTISEMENT AND SALES PROMOTION

52

Film opens in the compound of a

house. Father is checking something

inside the bonnet of an old small car.

His daughter, around 27-28 years old,

is working on a lap top next to him

Daughter: Dad. Father: Bolo

Daughter: Nayi car lene mein hee

bhalaai hai.

Dad nods in agreement without

looking up. Dad: Hmmm

Daughter continues affirmatively as

she signs on a cheque.

Daughter: Aur wo bhi badi wali.

Dad looks at her and asks.

Dad: Huh, Badi kyon?


53/105

53

Daughter, walks towards him with

swinging hand in air and says.

Daughter: Kyonki Toolika Sharma

chahti hai uske dad style se travel

kare.

Dad goes back to checking the engine

and says in a light hearted tone.

Dad: Aur Extra paise dad dega kya?

Daughter replies firmly: Nahi. Mere dad

ki beti.

Daughter: Relax dad, plan kiya.

Dad doesnt know what to say: Par...

And hands him the cheque. Dad looks

at the cheque and questions.

Dad (seriously): Itne paise aaye

kahaan se?


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54

Dad doesnt know what to say as he

looks at the cheque.

Daughter pleads: Pleasedad

Mother enters with tea. She senses

something serious and questions

them.

Mother: Aree Kya hua?

Father looks at her and says

emotionally.

Dad: Car badi ho gayi, aur beti bhi.

Daughter smiles with pride.

Super: Unit Linked Savings Plans

MVO: Unit Linked Savings Plans

from HDFC Standard Life. zimmedari

nibhao, Aaj bhi kal bhi

Father daughter are sitting.

MVO: Sar Utha Ke Jiyo.


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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 ofHDFC 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 &

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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 practicing 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 nationalized 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 WhartonSchool 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.

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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.

AREAS OF OPERATION

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 specialized financial services to our customer base

through partnerships with some of the best financial institutions worldwide.

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

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Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations

as a Scheduled Commercial Bank in January 1995.

HDFC Mutual Fund has been one of the best performing mutual funds in the last few

years. HDFC Asset Management Company Limited (AMC) functions as an Asset

Management company for the HDFC mutual fund.

AMC is a joint venture between housing finance giant HDFC and British investment firm

Standard Life Investments Limited. It conducts the operations of the Mutual Fund and

manages assets of the schemes, including the schemes launched from time to time. As of

Aug 2006, the fund has assets of Rs.25,892 crores under management.

IN 2003, following a decision by the Zurich Insurance Company (ZIC), the Sponsor of

Zurich India Mutual Fund, to divest its asset management business in India, AMC had

entered into an agreement with ZIC to acquire the asset management business.

Consequently, all the schemes of Zurich Mutual Fund in India had been transferred toHDFC mutual fund and renamed as HDFC schemes.

Here is a list of mutual funds of HDFC which includes Equity Funds, Balanced Funds

and Debt Funds.

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP

Morgan Partners and their associates, is a leading stock broking company in the country,

serving a diverse customer base of institutional and retail investors.

HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE ,

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and derivatives in NSE. Our website will support you with the highest standards of

service, convenience and hassle-free trading tools.

Our research team tracks the economy, industries and companies to provide you the latest

information and analysis. Our content offers financial information, analysis, investment

guidance, news & views, and is designed to meet the requirements of everyone from a

beginner to a savvy and well-informed trader.

HDFC Realty is a wholly owned subsidiary of HDFC. We have assisted

individuals in acquiring homes valued at 5000 million rupees.

HDFC is a pioneer housing finance institution in India and with over 30 years in

operations has provided finance to over a million families in India.

We are a team of real estate professionals facilitating Buying, Selling or Leasing

of Residential / Commercial property.

At HDFC Realty, we provide personalized attention to the individuals and

corporates in their process of identifying properties. From understanding the

requirement to organizing the site visits to completion of transaction, we make

every effort to make the process of acquiring a property, hassle free and

convenient.

MARKET SHARE

HDFC Limited.

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HDFC is Indias leading housing finance institution and has helped build more

than 23,00,000 houses since its incorporation in 1977.

In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.

As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The

depositor base now stands at around 1 million depositors.

Rated AAA by CRISIL and ICRA for the 10th consecutive year

Stable and experienced management

High service standards

Awarded The Economic Times Corporate Citizen of the year Award for its

long-standing commitment to community development.

Presented the Dream Home award for the best housing finance provider in 2004

at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life group has been looking after the financial needs of customers

for over 180 years

It currently has a customer base of around 7 million people who rely on the

company for their insurance, pension, investment, banking and health-care needs

Its investment manager currently administers 125 billion in assets

It is a leading pensions provider in the UK, and is rated by Standard & Poor's as

'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's

Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at

the Money Marketing Awards, and it was voted a 5 star life and pensions

provider at the Financial Adviser Service Awards for the last 10 years running .

The '5 Star' accolade has also been awarded to Standard Life Investments for the

last 10 years, and to Standard Life Bank since its inception in 1998. Standard

Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage

Magazine Awards in 2006

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VISION AND VALUES

The most successful and admired life insurance company, which mean that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set the

standards in the industry. In short,

The most obvious choice for all.

VALUES THAT WILL BE OBSERVED WHILE WE WORK WITH HDFCSLIC

INTEGRITY

What is it

Honest and Truthful in every action.

Transparency

Stick to principles irrespective of outcome.

Be just and fair to everyone.

Why

Integrity is the bedrock on which the company and the expectations of the

customers and employees are built.

Integrity establishes the credibility of the person defines the character and

empowers one to do justice to the job.

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Enables building confidence and trust, achieving transparency and laying a strong

foundation for a binding relationship

INNOVATION

What is it

Building a store house of treasures through experiences.

Looking at every product and process through fresh eyes everyday.

Why

To exceed customer expectation and maximise customer retention.

To achieve competitive advantage.

To promote growth and upgrade standards in the industry.

To open a world of new possibilities

CUSTOMER CENTRIC

What is it

Understand his expectations by keeping him as the centre - point

Listen actively

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Understand customer needs and deliver solutions.

Customer interest always supreme.

Customer centric

Why

Reinforce brand loyalty by complete transparency.

Customer is the source of revenue for the company.

Customer is the reason for our existence.

Ensure that customer chooses our company to do business with.

Customers goodwill alone can bring more business and more customers.

Will contribute to customer retention

PEOPLE CARE

What is it

Genuinely understanding the people we work with.

Guiding their development through training and support

Helping them develop requisite skills to reach their true potential.

Know them on a personal front.

Create an environment of trust and openness.

Respect for the time of others.

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Why

People are the most valuable assets of the company.

Motivate individual to give his / her best.

Establish a valuable relationship with them to create a joyful working

environment.

Job satisfaction

TEAM WORK

One for all and all for one

What is it

Whole team takes the ownership of the deliverables

Consult all involved , understand and arrive at a common objective

Co-operate and support across departmental boundaries

Identify strengths and weaknesses accordingly allocate responsibility to achieve

common objectives.

MAJOR COMPETITORS OF HDFC STANDARD LIFEMAJOR COMPETITORS OF HDFC STANDARD LIFE

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread

the message of life insurance in the country and mobilise peoples savings for nation-

building activities. LIC with its central office in Mumbai and seven zonal offices at

Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100

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divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active

agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and

United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance

Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.

Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit

linked life insurance and pension policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while

GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income

grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in

the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five million people living below the poverty

line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95

per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.

Compounded annual growth rate for Life insurance business has been 19.22 per cent per

annum

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company

known as General Insurance Corporation of India (GIC) was formed by the Central

Government in November 1972. With effect from 1 January 1973 the erstwhile 107

Indian and foreign insurers which were operating in the country prior to nationalization,

were grouped into four operating companies, namely, (i) National Insurance Company

Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company

Limited; and (iv) United India Insurance Company Limited. (However, with effect fromDec'2000, these subsidiaries have been de-linked from the parent company and made as

independent insurance companies). All the above four subsidiaries of GIC operate all

over the country competing with one another and underwriting various classes of general

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insurance business except for aviation insurance of national airlines and crop insurance

which is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17 countries directly

through branches or agencies and in 14 countries through subsidiary and associatecompanies.

LIFE INSURANCE COMPANIES

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together

two large forces - Max India Limited, a multi-business corporate, together with New

York Life International, a global expert in life insurance. With their various Products and

Riders, there are more than 400 product combinations to choose from. They have a

national presence with a network of 57 offices in 37 cities across India.

ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst thefirst private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). The

company has a network of about 56,000 advisors; as well as 7 banc assurance and 150

corporate agent tie-ups.

Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

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Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and

Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURANCE

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram

Finance Limited started its operations from March 2001. The company is Head Quartered

at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.

2. B

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