INTRODUCTION

The business of insurance is related to the protection of the economic values of

assets. Every asset has a value. The asset would have been created through the efforts of

the owner. The asset is valuable to the owner, because he expects to get some benefits from

it. It is a benefit because it meets some of his needs. The benefit may be an income or in

some other form. In the case of a factory, the product generated by it is sold and income is

generated. In the case of a motor car, it provides comfort and convenience in

transportation. There is no direct income. Both are assets and provide benefits.

Every asset is expected to last for a certain period of time during which it will provide the

benefits. After that, the benefit may not be available. There is a life time for a machine in a

factory or a cow or a motor car .None of them will last for ever. The owner is aware of this

and he can so manage his affairs that by the end of that period or life-time, a substitute is

made available. Thus, he makes sure that the benefit is not lost. However, the asset may get

lost earlier. An accident or some other unfortunate event may destroy it or make it

incapable of giving the benefits. An epidemic may kill the cow suddenly. In that case, the

owner and those enjoying the benefits there from would be deprived of the benefits. The

planned substitute would not have been ready. There is an adverse or unpleasant situation.

Insurance is a mechanism that helps to reduce the effects of such adverse situations. It

promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.

PURPOSE AND NEED OF INSURANCE

Today, there is no shortage of investment options for a person to choose from. Modern day

investments include gold, property, fixed income instruments, mutual funds and of course,

life insurance. Given the plethora of choices, it becomes imperative to make the right

choice when investing our hard-earned money. Life insurance is a unique investment that

helps us to meet our dual needs - saving for life's important goals, and protecting our

assets.

Life insurance is designed to protect us and our family against financial uncertainties that

may result due to unfortunate demise or illness. We can also view it as a comprehensive

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financial instrument – as a part of our financial planning offering savings & investment

facilities along with cover against financial loss. By choosing the right policy as per our

needs i.e. customized solutions, we will be able to plan for a secure future for our self and

our loved ones.

Insurance need will change as our life does, from starting to work to enjoying our golden

years and all the stages in between. Each one of these stages may pose a different insurance

need/cover for us. In this section, we have drawn up the basic life stages and help us to

analyze various insurance needs accordingly.

Life Stage Primary Need Life Insurance Product

Young & Single Asset creation Wealth creation plansYoung & Just married Asset creation & protection Wealth creation and

mortgage protection plans

Married with kids Children's education, Asset creation and protection

Education insurance, mortgage protection & wealth creation plans

Middle aged with grown up kids

Planning for retirement & asset protection

Retirement solutions & mortgage protection

Across all life-stages Health plans Health Insurance

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Assets are insured, because they are likely to be destroyed or made non-functional before

the expected life time, through accidental occurrences. Such possible occurrences are

called perils. Fire, floods, breakdowns, lightning, earthquakes, etc. are perlis. If such perils

can cause damage to the asset. We say that the asset is exposed to that risk. Perils are the

events. Risks are the consequential losses or damages. The risk to an owner of a building,

because of the peril of an earthquake, may be a few lakhs or a few crores of rupees,

depending on the cost of the building, the contents in it and the extent of damage.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril

cannot be avoided through insurance. The risk can sometimes be avoided, through better

safety and damage control measures. Insurance only tries to reduce the impact of the risk

on the owner of the asset and those who depend on that asset. They are the ones who

benefit from the asset and therefore, would lose, when the asset is damaged. Insurance only

compensates for the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not

be possible. Examples of non-economic losses are love and affection of parents, leadership

of managers, sentimental attachments to family heirlooms, innovative and creative abilities,

etc.

The risk only means that there is a possibility of loss or damage. The damage may or may

not happen. The earthquakes may occur, but the building may not have been affected at all.

Insurance is done against the possibility that the damage may happen. There has to be an

uncertainty about the risk. The word ‘possibility’ implies uncertainty. Insurance is relevant

only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it

cannot be insured against. In the case of a human being, death is certain, but the time of

death is uncertain. The person is insured, because of the uncertainty about the time of his

death. In the case of a person who is terminally ill, the time of death is not uncertain,

though not exactly known. It would be ‘soon’. He cannot be insured.

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CHARACTERISTICS OF INSURANCE

Sharing of risk

Co-operative device

Evaluation of risk

Payment of happening of a special event

The amount of payment depends on the nature of loss incurred

The success of insurance business depends upon the large number of people insured

against similar risk.

Insurance is a plan, which spreads the risk and losses of few people among a large

number of people.

The insurance is a plan in which the insured transfers his risk on the insurer.

OBJECTIVE OF THE STUDY

This is an overall study about the different departments of the organisation. This study has

been designed with the following objectives.

To familiar with the organisation environment

To understand the organisational structure and the services provided

To have an exposure to the functions of major departments

To interact with the managers at various level of organisational hierarchy

BRANCH SELECTED FOR THE STUDY

o Malleswaram Branch, Bangalore

SCOPE OF THE STUDY

o To get in touch with the industrial and organisational environment

o To understand the actual working condition in the organization

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PERIOD OF THE STUDY

From 24th June 2008 to 30th July 2008

METHODOLOGY OF THE STUDY

Source of data

Primary data and Secondary data

PRIMARY DATA: - Primary data is collected directly through observations and interview

with managers and executives at various level of the organization.

SECONDARY DATA: - Secondary data is collected from various publications, journals,

company broucher, internet and Annual reports of HDFCSLIC.

LIMITATION OF STUDY

The non availability of certain data due to is confidential nature.

The study was mainly based on personal interviews and thus personal bias is

included.

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LIFE INSURANCE

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier

Among other things, the contract also provides for the payment of premium periodically to

the Corporation by the policyholder. Life insurance is universally acknowledged to be an

institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the

timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilisation's partial solution to the problems caused by

death. Life insurance, in short, is concerned with two hazards that stand across the life-path

of every person:

1. That of dying prematurely leaves a dependent family to fend for itself.

2. That of living till old age without visible means of support.

HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000BC. The Chinese

traders, traveling treacherous river rapids would distribute their goods among several

vessels, so that loss from any one vessel being lost would be partial and shared and not

total. The Babylonian traders would agree to pay additional sums to lenders, as the price

for writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodes

adopted the principle of ‘general average’, whereby, if goods are shipped together, the

owners would bear the losses in proportion, if loss occurs, due to jettisoning during

distress. (Captains of ships caught in storms, would throw away some of the cargo to

reduce the weight and restore balance. Such throwing away is called jettisoning).The

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Greeks had started benevolent societies in the late 7th century AD, to take care of the

funeral and families of members who died. The friendly societies of England were

similarly constituted. The Great Fire of London in1666, in which more than 13000 houses

were lost, gave a boost to insurance and the first fire insurance company, called the Fire

office, was started in1680.

The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee

House in London. Traders, who used to gather in the Lloyd’s coffee house in London,

agreed to share the losses to their goods while being carried by ships. The losses used to

occur because of pirates who robbed on the high seas or because of bad weather spoiling

the goods or sinking the ship. In India, insurance began in 1818 with life insurance being

transacted by an English company the Oriental Life Insurance Company Limited. The first

Indian company was the Bombay Mutual Assurance Society Ltd. formed in 1870 in

Mumbai. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the Empire of

India in1897 in Mumbai, the United India in Chennai, the National, the national Indian and

the Hindustan Cooperative in Kolkata.

Later, were established the cooperative assurance in Lahore, the Bombay life (originally

called the Swadeshi Life), the Indian Mercantile, the New India the Jupiter in Mumbai and

the Lakshmi in New Delhi. These were all Indian companies started as a result of the

swadeshi movement in the early 1900s.By the year 1956, when the life insurance business

was nationalised and the Life Insurance Corporation of India (LIC) was formed on 1 st

September 1956, there were 170 companies and 75 provident fund societies transacting life

insurance business in India .After the amendments to the relevant laws in 1999, the LIC did

not have the exclusive privilege of doing life insurance business in India. Now, nineteen

new life insures had been registered and were transacting life insurance business in India.

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A BRIEF

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

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

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,

with a capital contribution of Rs. 5 crores from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850

in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes

of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

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107 insurers amalgamated and grouped into four company’s viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company

Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

LAW AND REGULATIONS

INSURANCE ACT, 1938

The insurance Act 1938, which came into effect from 1st July 1939,and was amended in

1950 and later in 1999, is the principal enactment relating to the business of insurance in

India. The Act contains provisions regarding licensing of agents and their remunerations,

prohibition rebates, and protection of policyholder’s interests. It also has provisions placing

limits on the expenses of insurers, use of funds and patterns of investments, maintaining

solvency levels, and constitution of Insurance Associations and Insurance Councils and the

Tariff Advisory Committee for general insurance.

Till the constitution of the IRDA be the IRDA act in1999, the Controller of Insurance was

responsible for the administration of the Insurance Act. Since 1999, the IRDA has replaced

the Controller of Insurance .The insurance Act vests the IRDA with powers to

Register insurance companies and also cancel their registrations

Monitor and certify the soundness of the terms of the life insurance business

Make regulations relating to the conduct of the business of insurance

Inspect documents of insurers

Appoint additional directors

Issue directions

Take over the management of an insurer and appoint administrators

Adjudicate on disputes between insurers and intermediaries

Decide on disputes relating to settlement of claims of amounts not exceeding

Rs.2000.

By the end of December 2006, the IRDA had issued more than 25 regulations and also

issued several guidelines to insurers on a variety of matters.

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LIFE INSURANCE CORPORATION ACT, 1956

This Act was the basis for the establishment of the L.I.C. as body corporate consisting of

not more than 16 members appointed by the Central Government, one of the being

Chairman. The corporation’s duty was to carry on life insurance business to the best

advantage of the community. Section 30 gave the L.I.C. exclusive privilege ceased as a

result of the amendments made in 1999.These amendments were made in pursuance of the

Government’s policy of economic reforms.16 insurance companies were registered and had

commenced life insurance business till 31.08.2007.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT 1999

This Act passed in December 1999, provided for the establishment of the IRDA to protect

the interests of holders of insurance policies, to regulate, promote and ensure orderly

growth of the insurance industry and for matters connected therewith or incidental thereto.

It also sought to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956

and the General Insurance Business (Nationalization) Act, 1972.

The IRDA is a corporate body .It is advised by an Insurance Advisory Committee

consisting of not more than 25 members to represent the interests of commerce ,industry,

transport, agriculture, consumer forums, surveyors, agents intermediaries, organisations

engaged in safety and loss prevention, research bodies and employees associations in the

insurance sector. It replaces the ‘Controller of Insurance’ to administer the provisions of

the Insurance Act. That includes registrations, licensing, and laying down regulations for

the proper conduct of the business and the protection of the interests of policyholders.

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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)

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidiaries

have been de-linked from the parent company and made as independent insurance

companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited .

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List of other Life Insurers after 01.04.2000

Table -1

S.No. Name of the Company1 HDFC Standard Life Insurance Company Ltd

2 Max New York Life Insurance Co. Ltd.

3 ICICI Prudential Life Insurance Company Ltd.

4 Kotak Mahindra Old Mutual Life Insurance

Limited

5 Birla Sun Life Insurance Company Ltd.

6 Tata AIG Life Insurance Company Ltd.

7 SBI Life Insurance Company Limited .

8 ING Vysya Life Insurance Company Private

Limited

9 Bajaj Allianz Life Insurance Company Limited

10 Metlife India Insurance Company Ltd.

11 Aviva Life Insurance Co. India Pvt. Ltd.

12 Sahara India Insurance Company Ltd.

13 Shriram Life Insurance Company Ltd.

14 Bharti AXA Life Insurance Company Ltd.

15 Reliance Life Insurance Company Limited.

16 Future Generali Life Insurance Company Ltd.

17 IDBI Fortis Life Insurance Company Ltd.

18 Canara HSBC Oriental Bank of Commerce Life

Insurance Co. Ltd

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CONTRIBUTION OF LIFE INSURANCE SECTOR IN THE INDIAN ECONOMY

(i) Life Insurance is the only sector which garners long term savings.

(ii) Spread of financial services in rural areas and amongst socially less privileged.

(iii) Long term funds for infrastructure.

(iv) Strong positive correlation between development of capital markets and

insurance/pension sector.

COMPANY WISE DETAILS

Table-2

Capital Deployed

Company Name Capital Deployed

Dec 07 (Rs crs)

Aviva Life 758.20

Bajaj Allianz Life 875.56

Bharti Axa 113.23

Birla Sunlife 1000.00

Future Generali 115.00

HDFC Std Life 1123.59

ICICI Prudential 3361.68

ING Vysya 884.76

Kotak 509.43

Max New York 907.43

MetLife 962.75

Reliance Life 1324.00

Sahara Life 232.00

SBI Life 600.00

Shriram Life 125.00

TATA AIG 697.00

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COMPANY WISE DETAILS

Table-3

Number of Employees

Company Name Number of direct employees

Dec 07 (Nos)

Aviva Life 5645

Bajaj Allianz Life 20086

Bharti Axa 4602

Birla Sunlife 7486

Future Generali 129

HDFC Std Life 13415

ICICI Prudential 31217

ING Vysya 6982

Kotak 4576

Max New York 6402

MetLife 4578

Reliance Life 12902

Sahara Life 245

SBI Life 3610

Shriram Life 1212

TATA AIG 5719

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COMPANY WISE DETAILS

Table-4

Premium Income

December 2007

Total including group business

(Rs crs)

Regular Premium

Single Premium

Renewal Premium

Total

Aviva Life 632.38 13.37 522.01 1167.76

Bajaj Allianz Life 3346.15 433.57 1455.29 5235.01

Bharti Axa 50.32 1.35 1.40 53.07

Birla Sunlife 1076.87 20.74 764.91 1862.52

Future Generali 0.62 0.00 0.00 0.62

HDFC Std Life 1387.61 151.03 1269.44 2808.08

ICICI Prudential 4205.93 457.72 3093.88 7757.53

ING Vysya 404.87 18.96 221.50 645.33

Kotak 523.37 35.42 326.75 885.54

Max New York 848.05 189.54 725.85 1763.44

MetLife 394.75 15.77 181.74 592.26

Reliance Life 1062.52 324.96 216.71 1604.19

Sahara Life 40.21 23.03 8.15 71.39

SBI Life 1425.99 929.28 393.02 2748.29

Shriram Life 85.20 131.01 25.90 242.11

TATA AIG 522.91 74.30 751.37 1348.58

LIC 17929.50 17584.05 48758.28 84271.80

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COMPANY PROFILE

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 December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC Standard Life

Founded on 14th August 2000

Received a license on 23rd October 2000

First private insurance company to get a license from the IRDA

Declared 7th consecutive bonus

Vision

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

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

standards in the industry'.

'The most obvious choice for all'.

Values

Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care “One for all and all for one”

Team work

Joy and Simplicity

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Branches

Zonal office 9

Regional Offices 29

Branch office and Spoke Locations 569

Finance Minister – Inaugurating HDFCSLIC Head Office January 2001

HDFCSLIC Growth

The average EPI is Rs.34,000

EPI grew from Rs 1426 crores to Rs 2600crores in 2007-08

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Bancassurance Partners

Stake Holding Pattern

18

72.38 %

27.62%HDFC

Standard Life

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

A range of individual and group solutions, which can be easily customized to specific

needs. HDFCSLIC group solutions have been designed to offer us complete flexibility

combined with a low charging structure.

Track Record so far

Gross premium income, for the year ending March 31, 2008 stood at Rs.4,859 crores and

new business premium income stood at Rs.2,685 crores. The company has covered over

9,59,000 lives year ending March 31, 2008.

Accolades and Recognition

Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s

number 1 personal finance magazine.

Rated by 'Business world' as 'India's Most Respected Private Life Insurance

Company' in 2004.

HDFC Standard Life Selected as '4Ps Power Brand 2006', for being one of India's

Top 25 'Most Innovative Companies'

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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 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

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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 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 (Honors) 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.

21

PROMOTERS

HDFC LIMITED

Incorporated in 1977 to provide home ownership by providing long term loans

Focus on Excellence; Customer Satisfaction and enhancing Shareholder value

Almost 90% of initial shareholding in the hands of domestic institutions and retail

investors. Currently 78% of shares held by FII.

Rated “AAA” by CRISIL and ICRA

HDFC is India’s 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.

Awards and Accolades

HDFC won the the award for “Investment Management in India ’’ at the

Euromoney 2006 Real Estate Awards

“Best Home loan Provider ’’ title at the Zee Pinnacle Awards 2006

Limca Book of Records,2006:HDFC for the landmark achievement of One Lakh

Crore

“Best strategy ’’, at the 4Ps Business – product , price , promotion , place of

distribution, Marketing & Advertising Power Awards 2006

Dun &Bradstreet – American Express Corporate Awards 2006

22

HDFC Group Companies

SECURITISATION

Future Activities

DISTRIBUTION

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STANDARD LIFE

The Standard Life Assurance Company ("Standard Life") was established in 1825 and the

first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard

Life was reincorporated as a mutual assurance company in 1925.

The Standard Life group originally operated only through branches or agencies of the

mutual company in the United Kingdom and certain other countries.

Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely

remained the structure of the group until 1996, when it opened a branch in Frankfurt,

Germany with the aim of exporting its UK life assurance and pensions operating model to

capitalize on the opportunities presented by EC Directive 92/96/EEC (the “Third Life

Directive”) and offer a product range in that market with features which local providers

were unable to offer.

In the 1990s, the group also sought to diversify its operations into areas which

complemented its core life assurance and pensions business, with the intention of

positioning itself as a broad range financial services provider.

Banking, Healthcare & Investments –

The group set up Standard Life Bank, its UK mortgage and retail savings banking

subsidiary, in 1998 and Standard Life Investments, which had previously been the in-house

investment management unit of the group’s life assurance and pensions business, was

separated into a distinct legal entity in the same year, with the aim of establishing it as an

independent investment management business providing services to both the group and

third party retail and institutional clients. The group acquired Prime Health Limited

(subsequently renamed Standard Life Healthcare) in the United Kingdom in 2000. Standard

Life Healthcare expanded in March 2006 with the acquisition of the PMI business of First

Assist.

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Standard Life Asia Limited/Joint ventures –

The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”), was

incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard

Life in 2002. The group’s operations in Hong Kong were established to give the group a

presence in the Far East from which it could expand into China. The group’s joint ventures

in India with Housing Development Finance Corporation Limited (“HDFC”) were

incorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003

(in relation to the investment management joint venture). The group’s joint venture in

China with Tianjin Economic Development Area General Company (“TEDA”) became

operational in 2003.

Standard Life International Limited –

The group also incorporated Standard Life International Limited (“SLIL”) in 2005 for the

purposes of providing the group with an offshore vehicle, based in Ireland, through which

it could sell tax-efficient investment products into the United Kingdom. Sales of these

products commenced in 2006.

Service Company –

Following the group’s strategic review in 2004, the group established a service company

structure for the provision of central corporate services to the group’s business units.

Standard Life Employee Services Limited (“SLESL”) supplies a wide range of central

services to the rest of the group, including IT, facilities, legal and human resources

services, and employs staff working in the group’s UK and Irish operations (other than SLI,

SLB and SLH, which employ their staff directly). This service company structure was

created to enable Standard Life to comply with regulatory restrictions on the provision of

non-insurance services and to exploit group-wide synergies.

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Mission

What we do;

Our mission is to build valuable customer relationships by helping customers grow and protect their assets.

Vision

What we aspire to achieve;

Our vision is to help our customers around the world feel confident about their future wealth and wellbeing.

Overall corporate purpose

Why we exist;

Our corporate purpose is to generate sustainable, high-quality returns for our shareholders.

(Delivery, Efficiency and Opportunity driving shareholder value)

Strategy

How we will deliver our mission and vision;

Our strategy is to build valuable customer relationships with leading service and compelling propositions through:

creating capital efficient, innovative products

opening new routes to markets leveraging investment management expertise and performance driving for operational excellence

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SNAPSHOT-I

Founded in 1825

Providing a range of savings, pension, protection and investment products

Standard Life listed on 10 July 2006, the biggest float on the London Stock

Exchange in the last five years.

SNAPSHOT-II

Head Office Edinburgh, Scotland (UK)

United Kingdom 31 Branches

Canada 11 Branches

Ireland 7 Branches

Germany 1 Branches

Austria 1 Sales Office

Hong Kong 1 Representative Office

FINANCIAL STRENTH

Standard Life Investments assets held at 30 June 2006:

INR 10,469,791,000,000 or 1046979 Crores

Worldwide insurance new premium income for full year at 31 December 2005:

INR 518,160,431,000 or 51816 Crores

INDIAN MARKET EXPERIENCE

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First market entry - 1847

Innovative products and processes

Last claim settled in 1997

GROUP COMPANIES

Standard Life Bank offers a range of mortgages and savings products, and had

mortgage book of £10.6 billion* as at 31 December 2005.

Standard Life Investments manages assets for the group as well as third parties, and

has a record of strong investment performance

Standard Life Healthcare is one of the largest private medical insurance providers in

the UK.

PRODUCT PROFILE

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HDFC Standard Life offers a bouquet of insurance solutions to meet every need. HDFC

Standard Life, cater to both, individuals as well as to companies looking to provide benefits

to their employees.

For individuals, a range of protection, investment, pension and savings plans that assist and

nurture dreams apart from providing protection.

For organizations a host of customized solutions that range from Group Term Insurance,

Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart

from providing long term value to the employees help in enhancing goodwill of the

company.

(1) INDIVIDUAL PRODUCTS

HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in

mind, they have varied range of products that we can choose from to suit all our needs.

These will help secure our future as well as the future of our family.

Protection Plans

Protection plans protect our family against the loss of our income or the burden of a loan in

the event of our unfortunate demise, disability or sickness. These plans offer valuable

peace of mind at a small price.

Protection range includes:

Term Assurance Plan

A pure risk cover plan, which gives us protection against the uncertainties of life. The

HDFC Term Assurance Plan is an insurance policy that is designed to help secure our

family's financial needs. The plan does this by providing a lump sum to the family of the

life assured in case of death or critical illness (if option is chosen) of the life assured during

the term of the contract. One can choose the lump sum that would replace the income lost

to one's family in the unfortunate event of one's death.

29

ADDITIONAL OPTIONAL BENEFITS SUMMARY

Critical Illness(CI) Benefit Will pay an amount, equal to the Sum Assured selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum Assured is payable only if we survive for 30 days after the date of CI Benefit claim. Once such a claim is settled, no further CI Benefit is payable. However, the basic policy continues.

Accidental Death Benefit (ADB) Will pay an additional amount, equal to the sum Assured selected under this benefit, in case of our unfortunable demise:oDue to an accident, and

oWithin 90 days of the accident.

Accelerated Sum Assured (ASA)Benefit Will pay an amount, equal to the Sum Assured selected under this benefit, on diagnosis of any one of the 6 critical illnesses. Once such a claim is settled, our basic policy terminates without value.

The two optional benefits CI Benefit and ASA Benefit cannot be taken together.

Loan Cover Term Assurance Plan

Home Loan Protection Plan

Investment Plans

HDFC Standard Life provides you with attractive long term returns through regular bonuses.

Investment range includes:

Single Premium Whole Of Life Plan

HDFC Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited to

meet our long-term investment needs. This participating plan offers us the following

benefits:

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

Single premium investment plan.

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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.

Pension Plans

Pension Plans help us to secure our financial independence even after retirement.

Pension range includes:

Personal Pension Plan

HDFC Personal Pension Plan is an insurance policy that is designed to provide a post -

retirement income for life with the freedom to choose our retirement date. We can choose

our premium, the Sum Assured and our retirement date. At the end of the policy term, We

will receive the Sum Assured plus any attaching bonus, which will provide our post

retirement income. The HDFC Personal Pension Plan is an insurance policy, which can

benefit us in the following ways:

Provides a post retirement income in our golden years.

Gives us the flexibility to plan our retirement date.

Gives us tax benefits on our premiums.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the

end of the term an additional Terminal Bonus may be paid depending on the performance

of the underlying investment.

Unit Linked Pension

Unit Linked Pension Plus

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Savings Plans

HDFC Standard Life Savings Plans offer flexible options to build savings for our future

needs such as buying a dream home or fulfilling our children’s immediate and future needs.

Savings range includes:

Endowment Assurance Plan

The HDFC Endowment Assurance Plan gives us:

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.

In case of our unfortunate demise during the policy term, this participating ('With Profits')

insurance plan will pay our family the Sum Assured (together with the attached bonuses)

we had chosen.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the

end of the term an additional Terminal Bonus may be paid depending on the performance

of the underlying investment .

Assurance Plan

Savings Assurance Plan

Childern’s Plan

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HDFC Children's Plan gives us:

Invaluable financial support to our child.

A choice to customise an ideal plan for our child.

Multiple options for multiple benefits.

The HDFC Children's Plan is designed to secure our child's future by giving our child (the

beneficiary) a guaranteed lump sum, on maturity or in case of our unfortunate demise, early

in the policy term. The premiums, paid by us, are invested by the company to give you

good long-term returns.

The plan receives simple Reversionary Bonuses, which are usually added annually. At the

end of the term an additional Terminal Bonus may be paid depending on the performance

of the underlying investment .

Money Back

Unit Linked Endowment Suvidha

The HDFC Unit Linked Endowment Suvidha gives us:

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 premium payment options.

Access to your accumulated fund before maturity.

No need to go for medical. Just signing a “Declaration of Health” statement will do!

We can choose our premium and the investment fund or funds. They will then invest our

premium, net of premium allocation charges in our chosen funds in the proportion we

specify. At the end of the policy term, we will receive the accumulated value of our funds.

In case of our unfortunate demise during the policy term, they will pay the greater of our

Sum Assured (less any withdrawals we have made in the two years before our claim) and

our total fund value to our family.

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Use HDFC Standard Life’s excellent investment options to maximize our savings & secure

our and our family’s future. They will provide financial security for our family in our

absence.

All Unit Linked Life Insurance plans are different from traditional insurance plans

and are subject to different risk factors.

Unit Linked Endowment Suvidha Plus

Unit Linked Endowment Plus II

Unit Linked Young Star Suvidha

Unit Linked Young Star Suvidha Plus

Unit Linked Young Star Plus II

Unit Linked Enhanced Life Protection II

Simplilife

The HDFC SimpliLife gives:

Valuable protection to your family in case you are not around.

An outstanding investment opportunity by providing a choice of thoroughly

researched and selected investments.

One we have chosen our investment fund or funds, they will then invest our premium, net

of premium allocation charges in the proportion we specify. At the end of the policy term

of 15 years, you will receive the accumulated value of our funds.

In case of your unfortunate demise during the policy term of 15 years, they will pay the

following to our family.

The Unit Fund Value.

Plus Sum Assured of Rs. 1 Lakh.

All Unit Linked Life insurance plans are different from traditional insurance plans

and are subject to different risk factors.

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(2) GROUP PRODUCTS

HDFC Standard Life has the most comprehensive list of products for progressive

employers who wish to provide the best and most innovative employee benefit solutions to

their employees. HDFC Standard Life offer different products for different needs of

employers ranging from term insurance plans for pure protection to voluntary plans such as

superannuation and leave encashment. They offer the following group products to our

esteemed corporate clients.

Group Term Insurance

The Group Term Insurance (GTI) plan meets this need and serves as an ideal way for

companies to reinforce their bond with their employees. The sort of needs, we, as an

employer need to cater to could be in form of:

Employee benefits.

Cover for housing or vehicle loans given by us to our employees.

A GTI cover for future service gratuity liability to be taken along with the HDFC

Group Unit Linked Plan.

The HDFC Group Term Insurance is a cost-effective plan that addresses these needs. In

addition we have the choice to opt for a GTI with an experience discount feature ("Profit

Share"), where a discount is given on future premiums in case of favorable claim

experience (subject to group size).

The HDFC group term insurance plan will have the following structure:

One year renewable term insurance plan.

One master policy issued covering all members of the group.

sum assured is payable on death (either due to natural causes or accidents).

The plan covers death due to any cause; accidental or natural, and hence is more

comprehensive than Group Personal Accident Insurance. Several multinational

corporations, large Indian companies, foreign banks and software companies have already

chosen the HDFC Group Term Insurance, an innovative product from HDFC Standard Life

Insurance, to protect their employees.

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Optional Rider Benefits:

Accidental Death Benefit.

Total Permanent Disability.

Total Permanent and Partial Disability Benefit.

Critical Illness Benefit.

Terminal Illness Benefit.

Group Variable Term Insurance

Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with

Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave

Encashment schemes of your company

Also suitable for other employee benefit schemes such as salary saving schemes and

wealth management schemes

(3) SOCIAL PRODUCTS

Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to members of

a Development Agency for a term of one year. On the death of any member of the group

insured during the year of cover, a lump sum is paid to that member’s beneficiaries to help

meet some of the immediate financial needs following their loss.

Eligibility

Members of the development agency and their spouses with:    

Minimum age at the start of the policy 18 years last birthday

Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The group to be

covered is only eligible if it contains more than 500 members.

Premium Payments

36

The premium to be paid will be quoted per member in the group and will be the same for

all members of the group. The premium can only be paid by the Development Agency as a

single lump sum that includes all premiums for the group to be covered. Cover will not

start until the premium and all the member information in our specified format has been

received. The premium rate is Rs.25 per Rs.10,000 of lump sum, per member.

Benefits

On the death of each member covered by the policy during the year of cover a lump sum

equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is

as a result of an accident, an additional lump sum will be paid equal to half the sum

assured. There are no benefits paid at the end of the year of cover and there is no surrender

value available at any time.

The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be passing certain

administrative tasks onto the Development Agency. By passing on these tasks the premium

charged can be lower. These tasks would include:  

Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to group members

These tasks would be in addition to the usual duties of a policyholder such as:

Payment of premiums Reporting of claims Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete the tasks

appropriately. Since these additional tasks will impose a burden on the Development

Agency, the Development Agency may charge Rs.10 administration fee to their members.

 

Prohibition of rebates

37

Section 41 of the insurance act,1938 states

No person shall allow or offer to allow, either directly or indirectly ,as an Inducement

to any person to take out or renew or continue as insurance in respect Of any kind of

risk relating to lives or property in India ,any rebate of the whole or Part of the

commission payable or any rebate of the premium shown on the policy, nor shall any

person taking out or renewing or continuing a policy accept any Rebate, except such

rebate as may be allowed in accordance with the published prospectus or tables of the

insurer

If any person fails to comply with sub regulation(previous point) above, he shall be

liable to payment of a fine which may extend to rupees five hundred

TAX BENEFITS

INCOME TAX SECTION

GROSS ANNUAL SALARY

HOW MUCH TAX CAN WE

SAVE?

HDFC STANDARD LIFE

PLANSSec. 80C Across All income

SlabsUpto Rs.33,990 saved on investment of Rs. 1,00,000.

All the life insurance plans

Sec. 80 CCC Across all income slabs.

Upto Rs.33,990 saved on Investment of Rs.1,00,000.

All the pension plans.

Sec. 80 D* Across all income slabs.

Upto Rs.3,399 saved on Investment of Rs. 10,000

All the health insurance riders available with the conventional plans.

TOTAL SAVINGS POSSIBLE **

Rs. 37,389Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399

under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits we receive completely tax-free, subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit.** These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change.

ORGANISATION STRUCTURE

38

CHART -1

MD & CEO

GM- Sales and Marketing

HOD - IT HOD - Legal & Secretarial

GM -Finance & Actuarial

GM- HR GM – Operation

and Underwriting

BusinessHead-North

Business Head-South

HOD-Institutional. Sales

HOD-Marketing

HOD-Sales Training

HOD-Channel Development

Zonal Services Managers

Zonal Managers Sales

Zonal Services Managers

ZonalManagers -

Sales

Regional Managers

Territory Managers

Branch Managers

HOD-Audit

Actuarial

Medical

Finance Controller

HOD-HR

National Training Manager HR

HOD -Health

HOD - OPERATION

HOD -Underwriting

Process

Sales Development Managers

HOD-Accounts

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MARKETING DEPARTMENT

Different goals have been proposed to guide the marketing practitioner. The most common

view is that the marketer’s goal is to maximize the markets consumption of whatever the

company is producing. Marketing success means selling more and more products in the

markets.

Duties and responsibility of marketing department

Developing the customer relationship

On time product delivery and providing product information to the customers

Sales promotional activities

Creating customer satisfaction

CHART SHOWING HIERARCHY OF MARKETING DEPARTMENT

CHART -2

40

ZONAL MANAGER

MANAGER TELECALLING

HOD

GM SALES & MARKETING

MANAGER TELECALLING

SALES DEPARTMENT

Sales at HDFC Standard Life cover an array of activities. HDFC Standard Life practices

two types of sales channel. They are

Retail channel sales

Alternate channel sales

Retail channel sales

Retail channel sales are done through the help of financial consultant and sales

development managers. In this channel financial consultant plays a vital role in selling the

insurance policies in the market.

Alternate channel sales

Alternate channel sales comprises of direct sales .Direct sales taps database to generate

high quality leads for profitable business under direct sales these are create of recent

campaigns as well as details such as database list, target audience. Direct sales is done

through the sales development managers (direct).

41

CHART SHOWING HIERARCHY OF RETAIL SALES DAPARTMENT

CHART -3

SALES DEVELOPMENT MANAGER

BUSINESS DEVELOPMENT MANAGER

ASSISTANT SALES MANAGER

BRANCH MANAGER

TERRITORY MANAGER

ZONAL MANAGER

REGIONAL MANAGER

BUSINESS HEAD

FINANCIAL CONSULTANT

42

CHART SHOWING HIERARCHY OF ALTERNATE CHANNEL

SALES DEPARTMENT CHART -4

SALES DEVELOPMANT MANAGER (DIRECT)

BRANCH DEVELOPMENT MANAGER (DIRECT)

BUSINESS MANAGER (DIRECT)

AREA DEVELOPMENT MANAGER (DIRECT)

NATIONAL HEAD (DIRECT)

GENERAL MANAGER (DIRECT)

MANAGING DIRECTOR

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HUMAN RESOURCE DEPARTMENT

Human Resource Department has multiple goals. These include employee competency

development, employee motivation development and organizational climate development.

Employees require a variety of competencies to perform different tasks or functions

required by their jobs. The nature of jobs is constantly changing due to change in

environment, changes in organizational priorities, goals and strategies, changes in the

profiles of fellow employees, changes in technology, new opportunities, new challenges,

new knowledge base etc. Such changes in the nature of jobs require continuous

development of employee competencies to perform the job well.

Human Resource Development is said to be the core of a larger system known as Human

Resource System (HRS), wherein Human Resource Development is mainly concerned with

providing learning experience for the people associated with an organization through a

behavioral approach adopting various processes. In a broader sense, the term Human

Resource Development means those learning experience, which are organized for a specific

time and designed to bring about the possibility of behavioral change.

The main functions of Human Resource Department are:

Recruitment

Staffing

Performance appraisal

Training need analysis

Employee communication

Environmental regulations

House keeping

44

CHART SHOWING HIERARCHY OF HUMAN RESOURCE

DEPARTMENT

CHART -5

REGIONAL HR EXECUTIVE

ASSISTANT MANAGER HR

ZONAL MANAGER HR

SENIOR HR MANAGER

HOD- HR

GM- HR

45

CHANNEL DEVELOPMENT DEPARTMENT

Role Profile –Channel Development Manager

Direct Responsibilities

(1) Team Building

Resource recruitment (Recruitment Consultant, Project Trainee).

(2) Training & Induction

Training program for the resources

Joint field work with resources

(3) Planning & Implementation of Lead Generation Activities

Minimum Business Opportunity Presentation per week

Road shows

Bottom Line Activity

(4) Resource Motivation and Drive

One vendor review meet per week(Channel Development Manager to review)

One vendor meet per month( Area Manager Channel Development to address)

Rewards to top performers

(5) IRDA Training & Examination

Financial consultant 50 hours training tracking through recruitment consultant

IRDA examination tracking through recruitment consultant

(6) MIS & Documentation

Documentation of vendor contracts & payment modes

MIS on recruitment & licensing of financial consultant (Branch Manager/Territory

Manager wise.

46

CHART SHOWING HIERARCHY OF CHANNEL DEVELOPMENT

CHART -6

CHANNEL DEVELOPMENT MANAGER

AREA MANAGER

TERRITORY MANAGER

NATIONAL HEAD

HOD CD

47

ADMINISTRATION DEPARTMENT

The main functions of Training Department are:

Proper maintenance of all the equipment in the company such as printer, scanner,

fax machine, video conferencing equipment etc.

Keep record of stationery requirement in the various departments.

Tickets booking of the employee if they are traveling for the company purpose.

Purchasing of the stationery items.

House keeping work.

CHART SHOWING HIERARCHY OF ADMINISTRATION DEPARTMENT

CHART -7

48

LEGAL DEPARTMENT

The function of legal department is handling the legal issues of the company and solves the

issue. The legal executive duties to see that there should not be any illegal work in the

company premises .Legal executive has also duties like handle the cases for the company if

any cases are in the court.

CHART SHOWING HIERARCHY OF LEGAL DEPARTMENT

CHART -8

SUPPORT STAFF

EXECUTIVE

SENIOR EXECUTIVE

ASSISTANT MANAGER ADMINISTRATION

MANAGER ADMINISTRATION

HEAD HR ADMINISTRATION

SENIOR MANAGER ADMINISTRATION

49

RISK MANAGEMENT DEPARTMENT

Risk management is a structured approach to managing uncertainty related to a threat, a

sequence of human activities including: risk assessment, strategies development to manage

it, and mitigation of risk using managerial resources.

The strategies include transferring the risk to another party, avoiding the risk, reducing the

negative effect of the risk, and accepting some or all of the consequences of a particular

risk. Risk management is simply a practice of systematically selecting cost effective

approaches for minimising the effect of threat realization to the organization .

ZONAL LEGAL EXECUTIVE

COMPANY SECREATARY & LEGAL HEAD

MANAGING DIRECTOR

50

CHART SHOWING HIERARCHY OF RISK MANAGEMENT DEPARTMENT

CHART -9

TRAINING DEPARTMENT

The main functions of Training Department are:

Conduct the induction program on company requirement.

Training to the existing employee in the company.

Training to the financial consultant every month.

Conduct the IRDA exam classes on regular basis.

CHART SHOWING HIERARCHY OF TRAINING DEPARTMENT

CHART -10

AUDIT OFFICER

SECRETARY

BOARD OF DIRECTORS

51

OPERATION DEPARTMENT

The main functions of Operation Department are:

Verify the insurance policy application of the customers.

Feed the data of the applicants in to the computer.

Maintain the file of the customer’s documents.

Login the application and inform to the concern department.

Send daily report to the higher authority

CHART SHOWING HIERARCHY OF OPERATION DEPARTMENT

TRAINING OFFICER CONSULTANT

TRAINING OFFICER

REGIONAL TRAING MANAGER

ZONAL TRAINING MANAGER

ZONAL SERVICES MANAGER

NATIONAL TRAING MANAGER

52

CHART -11

AGENCY DEPARTMENT

The main functions of Agency Department are:

Verify the financial consultant application form.

Feed the applicants data in to the computer

Maintain the file of financial consultants application

Keep proper record for the IRDA exam and inform to the concern department.

Send daily report to the higher authority.

53

GRADUATE TRAINEE (GT)

OPERATION OFFICER

OPERATION EXECUTIVE

TEAM MANAGER

ZONAL OPERATION MANAGER

ZONAL SERVICE MANAGER

BUSINESS HEAD

BRANCH OPERATION MANAGER

HOD OF OPERATION

GM OPERATION

CHART SHOWING HIERARCHY OF AGENCY DEPARTMENT

CHART -12

MEDICAL DEPARTMENT

The main functions of Medical Department are:

Verify the medical information given by the customer in the insurance application.

Inform the customer for the medical check-up.

Arrange the medical check-up facility.

Tied up with the hospital for the medical check-up and other medical related issues.

Daily report to be submitted to the higher authority.

54

AGENCY OFFICERS

OPERATION EXECUTIVE

TEAM MANAGER

ZONAL OPERATION MANAGER

ZONAL SERVICE MANAGER

BUSINESS HEAD

BRANCH OPERATION MANAGER

HOD OF OPERATION

GM OPERATION

CHART SHOWING HIERARCHY OF MEDICAL DEPARTMENT

CHART -13

SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first

stage of planning and helps marketers to focus on key issues. SWOT stands for strengths,

weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.

Opportunities and threats are external factors.

55

OFFICER MEDICAL SUPPORT

EXECUTIVE MEDICAL SUPPORT

MANAGER MEDICAL SUPPORT

SENIOR VICE PRESIDENT

In SWOT, strengths and weaknesses are internal factors. For example: strength could be:

Patents

Strong brand names

Good reputation among customers

Cost advantages from proprietary know-how

Exclusive access to high grade natural resources

Favorable access to distribution networks

A weakness could be:

Lack of patent protection

A weak brand name

Poor reputation among customers

High cost structure

Lack of access to the best natural resources

Lack of access to key distribution channels

56

In SWOT, opportunities and threats are external factors. For example: An opportunity could be:

an unfulfilled customer need

arrival of new technologies

loosening of regulations

removal of international trade barriers

A threat could be:

shifts in consumer tastes away from the firm's products

emergence of substitute products

new regulations

increased trade barriers

The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have

a better chance at developing a competitive advantage by identifying a fit between the

firm's strengths and upcoming opportunities. In some cases, the firm can overcome a

weakness in order to prepare itself to pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of these factors can

be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

SWOT / TOWS Matrix

Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

57

S-O strategies pursue opportunities that are a good fit to the company's strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce its

vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm's weaknesses from

making it highly susceptible to external threats.

HSFC STANDARD LIFE

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

HDFCSLIC a range of individual and group solutions, which can be easily customized

to specific needs. HDFCSLIC group solutions have been designed to offer complete

flexibility combined with a low charging structure.

TRACK RECORD SO FAR

HDFCSLIC gross premium income, for the year ending March 31, 2008 stood at Rs.

4,859 crores and new business premium income stood at Rs. 2,685 crores.

The company has covered over 9,59,000 lives year ending March 31, 2008.

Money power which makes them ignorant about the gestation period.

Large network branches which helped to customer for the payment

Brand image ,business experience and innovative products

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The financial consultant are very selectively chosen have excellent communication

skills.

Service quality which is crux of their mission

HDFCSLIC declared 7th consecutive bonus.

The average EPI is Rs.34,000.

It is the fastest growing Pvt. Life Insurance Company in India.

WEAKNESS

High targets for financial consultants and for the sales departments.

Many competitors in the market offer same product by the title difference in the

premium brand and offerings.

Sustainable to risk associated with investments in money markets.

Try to catch middle lower people also.

OPPORTUNITIES

Huge market is literally untapped, out of estimated 320 millions insurable markets

only 20% of the population is insured.

Health insurance and pension schemes, an estimated market potential of

approximately $15 billion.

HDFCSLIC should give the insurance coverage both to parent and child so that

their life could be covered in both cases. The customer doesn’t mind paying some

extra premium for that

THREATS

59

Players like ICICI Prudential and Birla Sun Life with low premium for the same

plans.

Entery of many other private companies with equally strong experience and

financial strength of foreign partners making the competition difficult and

saturating the urban markets.

Current Govt. policies do not encourage gross domestic savings. If the tax liability

of the service can rises ,the customer will have little money to invest.

LIC has woken up from sleep and is following competitive strategies .Its huge

surplus in the Life Fund gives a capability to lodge price war.

Vision

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

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

standards in the industry'.

'The most obvious choice for all'.

Values

Values that we observe while we work:

Integrity

Innovation

Customer centric

People Care “One for all and all for one”

Team work

Joy and Simplicity

60

Findings

Motivated workforce

Participative management

Weekly team meeting among executive

High performing employees have clear opportunity for growth

Finance department is centralize and all the finance related work is operated from

head branch Mumbai.

Company should come up with branch in the rural areas. With objective and goals

to meet the demand and expectations of the public. Because of the entrance of

private players will increase the competition and it would be a tough task to secure

a good position in market.

As the people think that insurance is a tool to protect their family & a tax saving

device. They are aware of the fact & realizing its, importance. The company should

try to expand & buildup with infrastructure because there is a large potential for

insurance in India.

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SUGGESTIONS

The suggestion section contains some of the inputs given by me from the observation made

during the internship.

Recruit more number of financial consultants.

Company should introduce attractive offers to draw the attention of customers.

Educating the potential customers about the HDFCSLIC products and focus on,

how trust worthy and useful are these products.

Procedure of availing loans on the policy should be made easier on insurance

policy.

62

RECOMMENDATIONS

The insurance companies should now try to identify the gap between current level of

customer service and customer expectation .some of the strategies being recommended are

as follows:

Product differentiation: Offering a product that is distinctly different from other

products available in the market.

Innovativeness: Identifying a delightful customer experience.

Riders: These are additional offerings along with the main product.

Proper policy documentation: Wrong interpretation\non-awareness of policy

document by the customer may have the serious implication in the long term.

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Conclusion

HDFC Standard Life Insurance Company Ltd. is one of the best insurance company in

India. All members are striving towards even more betterment of the company whole-

heartedly. The company intends to see its efficiency and quality through customer services

and satisfaction. With the creative and innovative culture of the company it has been

successful in creating a very good image in the minds of the customers.

Personally speaking it was my pleasure being with company for period of 4 weeks. I had an

opportunity to learn about the recruitment of financial consultant, working of different

departments in the organization, and the knowledge about the insurance industry and the

products of the company.

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BIBILIOGRAPHY

TEXT BOOKS:-

IC-33 LIFE INSURANCE

WEBSITES:-

www.hdfcinsurance.com

www.irdaindia.org

http://uk.group.standardlife.com

www.licindia.com

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Abbreviations

1) HDFC- HOUSEING DEVELOPMENT FINANCE CORPORATION LIMITED.

2) HDFCSLIC- HDFC STANDARD LIFE INSURANCE COMPANY LIMITED.

3) LIC – LIFE INSURANCE CORPORATION

4) IRDA- INSURANCE REGULATORY DEVELOPMET AUTHORITY

5) HOD- HEAD OF DEPARTMENT

6) MD – MANAGING DIRECTOR

7) CEO- CHIEF EXECUTIVE OFFICER

8) IT- INFORMATION TECHNOLOGY

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9) HR- HUMAN RESOURCE

10) GM – GENERAL MANAGER

11) MIS- MANAGEMENT IFORMATION SYSTEM

12) CD – CHANNEL DEVELOPMET

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