HDFC

CONTENT
CHAPTER-I
INTRODUCTION
1.1 INTRODUTION 1.2 STATEMENT OF THE PROBLEM 1.3 OBJECTIVE OF THE STUDY 1.4 SCOPE OF THE STUDY 1.5 METHODOLOGY 1.6 LIMITATION OF THE STUDY

CHAPTER-II
INSURANCE INDUSTRY

CHAPTER-III
HDFC Standard Life Insurance
3.1 COMPANY AND ITS PROMOTERS

3.2 NATURE OF THE BUSINESS CARRIED 3.3 VISION, MISSION 3.4 FUNCTIONAL DEPARTMENT 3.5 PRODUT AND SERVICE PROFILE 3.6 AREA OF OPERATION 3.7 INFRASTRUCTURAL FACILITIES 3.8 ACHIEVMENT 3.9 FUTURE GROTH AND PROSPECTS 3.10 SWOT ANALYSIS

CHAPTER-IV
THEORETICAL FRAMEWORK

CHAPTER-V
DATA ANALYSIS & INTERPRETATION

CHAPTER-VI
 FINDING  SUGGESTION  CONCLUSIONS

CHAPTER 1
INTRODUCTION
1.1 INTRODUTION 1.2 STATEMENT OF THE PROBLEM 1.3 OBJECTIVE OF THE STUDY 1.4 SCOPE OF THE STUDY 1.5 METHODOLOGY 1.6 LIMITATION OF THE STUDY

1.1 INTRODUTION
It has been established that village co-operatives insured against loss of profit in an industry in the early days of the Aryan Civilization. There were contacts safeguarding risks of transport by sea or land. Further these well renowned joint-family system rendered services similar to those of present life assurances. However expecting the system of joint family all other gradually waned and insurance in the modern sense appeared in the late eighteenth and early nineteenth centuries by the established of seven Marine Insurance companies in Calcutta-the then centre of trade and commerce in India. This was followed in due course by the opening of branches and or agencies in India by many British offices, and some continental and colonial insurers. Even the American offices did not lag behind. The successful operation of the foreign insurers encouraged the formation of life offices in India in the late nineteenth century such as Bombay Mutual in 1871 and the oriental in 1874 and Hindustan cooperative in 1907 other life offices followed. The swadeshi movement at the beginning of the present century was responsible for the establishment of various insurers with Indian capital. Thus in 1907 the Indian Mercantile was the first Indian general insurance company followed later on by New India in 1919 and six other insurers. The year 1922 and 1923 were very critical for these young general insurers in as much as they had to compete with 150 foreign offices that had not only the experience of actual organization but also a tradition of general insurance business behind them. On the top of this the exchange banks provided impediments in one-way or the other. However patriotism of the Indian public saw the general insurers through this difficult period and national agitation insisting for legislative protection compelled the government of India to investigate into the matter. As a result of the above-mentioned investigation the Insurance Act of 1938 came into existence, which removed the hideous distinction between Indians and Non-Indian companies as far as provisions relating to deposits and submission of returns were concerned. The Nationalism or swadeshi spirit brought about an increase in the share of Indian insurers of the business in India from 11 percent in 1928 to 31 percent in 1939 largely at the expense of foreign offices. The Second World War helped the establishment of several indigenous industries the managing agents of which tried to acquire the control of insurance companies and banks to provide easy finance for their undertakings. This lead to the appointment of Cowasji Jehangir Enquiry Committee resulting in certain amendments of the Insurance Act, 1938. The Indian insures successfully faced the Bombay Explosion of 1944 and survived the partition of the country in 1947.

1951 onwards this has been a period of increasing business for Indian insurers due to the following causes: 1. The growing confidence of the Indian public. 2. The increasing awareness of the Indian public of the benefits of insurance. 3. The five-year plans. 4. The development plans undertaken by some of the leading insurers. The increase in life business of Indian insurers in the years 1954 and 1955 was phenomenal and on 19th January 1956 the government of India nationalised the life insurance business in India as a result of which the Life Insurance Corporation of India formally came into existence on September 1956. The main aims of nationalisation were: 1. Provision of complete security to the policyholders. 2. To prevent malpractices prevalent in life business. 3. To spread insurance to rural areas. 4. To encourage public savings and channel the same to finance national plans. Consequently not only is the LIC at present the main source of finance for the government and state organisations, public undertakings and well-established industrial organisations in the private sector but also provide loans to individuals to buy their own houses under the µown your home¶ scheme. It has also succeeded in its other main aims. The LIC also started transacting all classes of general insurance with effect from 1 April 1964 in competition with other general insurers on India. Their total direct premium income for the financial year 1968-69 was over Rs.15.35 crores, detailed as under:
st

Fire Rs.378.79 lakhs Motor Rs.95.62 lakhs Marine Rs.679.59 lakhs Miscellaneous Rs.381.49 lakhs The general insurance business in India has also been nationalised as from 13th may 1971 and the General Insurance Corporation of India (GIC) came into existence as from 1st January 1973. To ensure proper service to the public, it was decided that the GIC would underwrite general insurance business through its four subsidiaries that will

mutually compete for business. As from 1st of January 1974 all the insurers transacting general insurance in India ± whether Indian or foreign- were merged into the under noted four subsidiaries or companies or groups having more or less equal premium income. 1. The Oriental Fire and General Insurance Co. Ltd. 2. The New India Assurance Company Ltd. 3. The National Insurance Company Ltd. 4. The United India Fire and General Insurance Company Ltd.

The object of the government of India in forming these four subsidiaries is to ensure that these are so situated so as to render their combined services effectively to all parts of India. The General Insurance Corporation has been formed as a government company with an authorised capital of Rs.75 crores (with an initial subscribed capital of 5 crores) for the purpose of superintending, controlling and carrying on the business of general insurance. It is now possible to transact certain types of general insurance business, which were formerly considered too hazardous, and the GIC is likely to make a beginning with crop insurance.

1.2 STATEMENT OF THE PROBLEM
This particular topic has been chosen as a result of the increasing competition in the insurance sector from the private insurers as well as the nationalised insurans. As every organisation, irrespective of its size and mission may be viewed as a financial entity. LIC had a monopoly of the Indian life insurance market till the end of the year 2000, after which many private insurers came into the market of which the very first was HDFC Standard Life. In view of the increasing competition the management is confronted with issues and decision like. y What kind of plans has to be introduced? y What kind of strategies do they have to adopt?

1.3 OBJECTIVES OF THE STUDY
y y y y y y Ascertain the relative attractiveness of investment in insurance and other form of savings. Assess the business potential for HDFC Standard Life in the near future. Examine how the company¶s finances are managed. To identify the trends of the last five years. To suggest the suitable measure for improvisation. To identify the future growth patterns.

1.4 SCOPE OF THE STUDY
These issues need a careful consideration as the investment policy of HDFC Standard Life is still at a formative stage. The present project, ³rationale of the investment policy of HDFC Standard Life and its impact on capital formation in India´, therefore examines the investment policy of HDFC Standard Life in context of its liability characteristics on the one hand and the nature of the investment material on the other. The main purpose of this enquiry is to demonstrate the ways and means through which the life fund can be utilised for the economic and social advancement of the country, in consistence with the µpolicyholders interest¶ and relates it to rational economic interest. It explains the significance of life fund in the capital market. Besides estimating the potential resources of HDFC Standard Life. The study shows the impact of the growth of life fund on capital formation in India. The study lays down the board outlines of the investment policy.

1.5 METHODOLOGY
REVIEW OF LITERATURE Review of literature means the literature review followed for the purpose of preparing this report. If the literature followed is sound in nature, surely the report is going to be shaped literally sharp, which not only attracts the reader but also gives him the quality of work done. Firstly, for the introduction and other aspects the literature was taken from daily newspapers, business magazines, company journals. Information regarding the industry was taken from magazines, industry journals, company journals and previous insurance related projects reviewed from IIMB library. Information regarding the company profile was taken from company journals, company brochures and yearly magazines. For the research methodology of the study, the information¶s were taken from previous project reports and guidelines provided by the university. Lastly for the analysis and interpretation of the study the source of literature was previous projects reviewed from the libraries of AMC and IIMB. The literature processed from these sources was made use of in an organised manner to shape this study or report. RESEARCH DESIGN Throughout the study an attempt has been made to arrive at the conclusions with the help of economic reasoning, experience derived from the insurance industry from the lessons of economic history. The researcher has chosen a period of two years for my study. The researcher is conscious of the fact that this period is very short for describing the investment behaviour of HDFC Standard Life but the company had started its operations only on December 2010. The assets, which the company has inherited, have deep roots and justify full discussion in its historical perspective. SOURCES OF DATA Database can be classified into two categories, which are: Primary data and secondary data. Primary data: The data originally collected from the HDFC Standard Life and its agents through direct interview. Secondary data: various journals, articles were collected, various websites, IRDA guidelines and annual reports to study the utilisation of funds in HDFC Standard Life Co. Ltd.

1.6 LIMITATION OF THE STUDY
1. Life insurance was nationalised in India for the effective mobilisation of public savings and for financing economic development. This itself creates a problem as the economic development depends upon the pioneering efforts of the small enterprises while both the legislation mandates and the investment of HDFC Standard Life have emphasised to invest in established concerns. However the traditional policy followed by HDFC Standard Life apart from creating the problem of concentrating its investments in a few companies, has deprived the new ventures of the personal savings of the vast majority of policyholders. 2. Similarly direction of investment into particular sections can result in over stimulation of those areas and bringing on subsequent difficulties. It is essential therefore that the investment policy of HDFC Standard Life be adapted to changing needs so that it should not work against stable progress.

CHAPTER-II

INSURANCE INDUSTRY

BRIEF HISTORY OF INSURANCE IN INDIA

Life insurance activity in its modern from started in India in 1818 to provide insurance for the European soldiers and civilians to benefit their families. The first Indian Life insurance company, the Bombay Mutual Life assurance society started its business in 1870. This was the first company, which charged same amount of premium on both Indian and Non-Indian lives. Earlier native Indian lives were considered more risky and hence were charged more premiums for coverage. Foreign insurance companies dominated insurance business in India and enjoyed monopoly right up to the end of nineteenth century. Insurance regulation formally began in India through the passing of two acts, the life Insurance companies act of 1912 and the provident act 1912, the first legislation was introduced with the insurance act of 1938 that provided strict state control over insurance business in the country. This provided an effective cheek on the large-scale frauds that sullied insurance business during the 1930`s. In the 1940s, there were more than 220 Insurance companies in India. There was no control over the starting and closing of insurance companies. Customer`s money was on stake. After independence, the business of insurance grew at a faster pace as the competition among the Indian companies intensified. At this juncture, the government of India decided to merge all the insurance companies. In the year 1956, the merger and nationalization of all existing life insurance companies were done which resulted in giving birth to the life insurance corporation of India (LIC). Closed to foreign competition, the Indian insurance industry was run by the government for over 40 years through LIC and four general insurance companies that spanned the length and breadth of the country. LIC enjoyed a monopoly for more than four decades.

GLOBEL MARKET PENETRATION
Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. With the heightened awareness and the consumer education comes a willingness to view life insurance as an integral part of the financial portfolio. No longer is the life insurance a poorly understood product that is pushed onto people. Nor is it a product that is only to be bought hurriedly at the time of filling taxes. It`s now catching on as an important element of the overall financial basket one that is purchased to fulfill specific rational and emotional needs. Not only there has been a charge in the structure and nature of the products, but also in the way they are sold.

INSURANCE PENETRATION ACROSS THE NATION
From being a purely advisor ± driven business, the sector has seen the emergence of a number of channels including bank assurance, corporate agents, brokers and direct marketing. These channels, though new, are quickly gaining importance primarily because they present the customer with multiple ways of approaching life insurers. There has been a vast improvement in service attitude and delivery too. As with privatization in any industry, the benefits aren`t restricted to the customer alone, but extend to the society at large, by generating employment opportunities for thousands. Over the past two years, insurance companies; both life and non life insurance have collectively hired at least 6,000 employees to staff their operation across the country, another 90,000- odd have been appointed as life insurance advisors who are engaged in counseling and recommending products to the insurance buyers. The potential for the growth and spread of life insurance is high as in many other Asian countries. This is due to stronger economic growth, rapid aging of population, a weak social security and pension system leaves a majority of workers with no old age income security. A well-developed insurance sector promotes economic growth by encouraging risk-taking activity, and also has great potential in mobilizing long-term contractual savings and the rest is crucially needed for infrastructure development.

INSURANCE DENSITY ACROSS THE NATIONS
The global insurance market stands at 1521.2 billion US dollar and India stands 23rd position with 9.93 billion US dollar. Out of the 1 billion populations in India 35 millions are insured. India`s life insurance premium as percentage of GDP is 2.32%. The Indian insurance market is set to touch 25 billion US dollar by 2010. On theassumption of 7%growth inGDP. The role of life insurance is a crucial one for the development of our country. Life insurance companies have to invest 75% of its revenue in the government specified securities like electricity boards, housing schemes, water supply and sewage projects, development of road and transport, industrial development schemes etc.

INSURANCE (IRDA).

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 regulation and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular to the life insurance companies was the launch of the IRDA`s online service for issue and renewal of licenses to 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 sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 14 life insurance and 6 general insurance companies have been registered.

MISSION OF INSURANCE SECTOR:To protect the interest of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

DUTIES, POWERS AND FUNCTIONS OF IRDA
1. Adjudication of disputes between insurers and intermediaries or insurance intermediaries.

Promoting and regulation professional organizations connected with insurance and reinsurance business. 3. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. 2. 4. Promoting efficiency in the conduct of insurance business 5. Regulation investment of funds by insurance companies 6. Issue the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.

T1; PRIVATE LIFE INSURANCE PLAYERS IN INDIA

REG NO. 101 104 105 107 109 110 111 114 116 117 122 127 128

DATE REG. 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 14.05.2002 06.02.2004 17.11.2005

OF NAME OF THE COMPANY HDFC Standard life insurance company ltd. Max New York Life insurance company ltd. ICICI Prudential life insurance company lt6d. Om Kotak Mahindra life insurance company ltd. Birla Sun life insurance company ltd. Tata AIG life insurance company ltd. SBI life insurance company ltd. ING Vysya life insurance company private ltd. Alianz Bajaj life insurance company ltd. MetLife India insurance company pvt ltd. Aviva life insurance Co. India pvt ltd. Sahara India insurance company ltd Shriram life insurance company ltd.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN India are:
y 1818: Oriental life insurance company, the first insurance company on Indian soil started functioning. 1870: Bombay Mutual life assurance society, the first Indian life insurance company started its business. 1912: The Indian insurance 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 business. 1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of protecting the interest of the insuring public. 1956: 245 Indian and foreign insurance and provident fund societies take over the central Govt and nationalized. LIC formed by an Act of Parliament, viz, LIC Act, 1956, with a capital contribution of Rs. 5crore from the Govt of India.

y

y

y

y

y

INSURANCE

Definitions General Insurance:
A contract in which one party agrees to pay for another part¶s financial loss resulting from a specific event (for example, a collision, theft, or storm damage). Lease agreement generally requires that you maintain vehicle collision and property damage.

Life insurance:
A system of protection against loss in which a number of individuals agree to pay certain sum of money, Called premiums, to create a pool of money which will guarantee that individual will be compensated for losses caused by events such as fire, accident, illness, or death.

Benefits of Insurance:
Insurance is the instrument of security, savings and peace of mind. It Provides several benefits by paying a small amount of premium to an insurance company as:1. 2. 3. 4. 5. 6. 7. Safeguard oneself and one¶s family for future requirements. Peace of mind-in-case of financial loss. Tax rebate. Protection from the claim by creditors. Security against a personal loan or other type of loan. Provide a protection cover to industries, agriculture, women and child. Provide good returns on investments.

Private players in the Life insurance industry, which has tied up with various foreign companies:-

HDFC Standard Life Birla Sun Life Allianz Bajaj SBI Life ICICI Prudential TATA-AIG Life Max New York Life. Aviva Life Kotak Mahindra Life ING Vysya Life Reliance Life Metlife India

HDFC Bank Aditya Birla Group Bajai Auto SBI Bank ICICI Bank TATA Group Max India DABUR KOTAK Mahindra Bank Vysya Bank Reliance Group J & K Bank

Standard life, UK Sun life, Canada Allianz, Germany Cordiff, France Prudential, UK AIG, US New York Life, US Aviva, UK Old Mutual, S.A ING, Netherlands None Met life, US

CHAPTER 3
COMPANY PROFILE
3.1 COMPANY AND ITS PROMOTERS 3.2 NATURE OF THE BUSINESS CARRIED 3.3 VISION, MISSION 3.4 FUNCTIONAL DEPARTMENT 3.5 PRODUCT AND SERVICE PROFILE 3.6 AREA OF OPERATION 3.7 INFRASTRUCTURAL FACILITIES 3.8 ACHIEVMENT/ AWARDS 3.9 FUTURE GROTH AND PROSPECTS 3.10 SWOT ANALYSIS

3.1 HISTORY OF HDFSLIC
HDFCSLIC stands for Housing Development Finance corporation standard life insurance company. It is incorporated in 1977 as a public limited company with the specialization in provision of housing finance to individuals¶ cooperative societies and the corporate sector. One significant matter about the HDFC is that it is first private sector retail housing finance company and it is listed on both BSE and NSE. Its market capitalization in June 2002. Standard life insurance is founded in 1825. Standard life was reincorporated as a mutual assurance company in 1925. It¶s largest mutual life insurance company in Europe. For the joint venture between HDFC and SLIC, the discussion commenced in January 1995 and the agreement signed in October 1995. Further joint venture agreement renewed in October 1998. In January 2000 the life insurance project teem established in Mumbai. At last the company officially incorporated in 14th August 2000. It is the matter of great happiness for HDFCSLIC is that it is the first private sector life insurance company to be granted a certificate of registration in 23rd October, 2000. Today 75% shareholding in the hand of HDFC and Standard life has 25% shareholding in this joint venture.

Introduction
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 gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs.1,624 Crores. The company has covered over 8,77,000 lives year ending March 31, 2007. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is thelargest housing company in India for the last 27 years.

Our Key strengths Financial Expertise
As a joint venture of leading financial Services groups, HDFC Standard Life has the financial expertise required to manager your long-term investments safely and efficiently.

Range of solutions
We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

Organizational Goals
HDFC¶s main goals are to 1. 2. 3. 4. 5. Develop close relationships with individual households, Maintain its position as the premier housing finance institution in the country. Transform ideas into viable and creative solutions, Provide consistently high returns to shareholders, We to grow through diversification by leveraging off the existing client base

STANDARD LIFE HISTORY
The Standard Life Assurance Company (³Standard 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 ³Third Life Directive´) and offer a product range in that market with features which local provides 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, which the intention of positioning itself as a broad range financial services provider.

Standard Life Asia Limited / joint ventures:Economic Development Area General Company (³TEDA´) became operational in 2003. The group¶s Hong Kong subsidiary, Standard Life Asia Limited (³SL 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 which Housing Development Finance Corporation Limited(³HDFC´) 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

Board of Directors
y y y y y y y y y y MR Deepak S Parekh Chairman MR Deepak M Satwalekar MD&CEO MR Keki M Mistry MR Ravi Narain MR G.N. Bajpai MR Alexander M Crombie MR Gautam R Divan MR Ranjan Pant MRS Marcia Dominic Campbell MR Keith Norman Skeoch

3.3 VISION OF HDFCSL
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, ³The most obvious choice for all´ For retention in the market and highest market share, we need trust of our customer. The customer should trust on our policies, services, employs and they should be friendly with us. It wants to live in the eye and heart of the customer. It wants to give them the easiest deal so that they can be understood the terms and policies. As we know that profit is the main aim of any business but it think not only about his profit but also profit of the customer. It wants to be the

choice of all people on the basis of trust of customer, delivering high value to the customer, and deliver Of best value of the money.

MISSION OF HDFSLIC
We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things likey y y y y y Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

3.4 Departments
HDFC SLIC strongly believes that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. The organizational structure is designed to support the business objectives, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. HDFC SLIC organization structure is flexible enough to counter balance of the external and internal environment. This will help in the smooth functioning of the company. There are ten boards of directors who decide on & have the authority to take decision. And in the next level the managing director who controls over finance, marketing, IT, sales HR departments who comes under the top management. Zonal officer, branch manager, territory manager, sales manager, all comes under middle level management. Assistant sales manager, agency manager, unit manager, assistant unit manager and advisers comes lower level management.

Functional Departments:
y y y Finance departments Marketing departments Information departments Sales departments

y

Motivating & involving everyone in the organization for active participation towards continuous improvement in its activities.

3.5 PRODUCT OF HDFCSL
As we know that lots of insurance plan are playing in the market of different companies. HDCFSL has launched various insurance plans which based on unit link plan. It invests the investment of his consumer in bank deposits, Government securities and Bonds, and Equity. The percentage of these investments in these plans depends upon the consumer whether he wants to take more risk and more return or less risk or less return. It has launched several insurance plans which are thus in the table:-

1. 2. 3. 4. 5.

Unit link pension plan Unit linked pension plus Unit linked enhanced life protection II Unit linked young star plus II Endowment assurance plan

6. 7. 8. 9. 10. 11.

Children plan Money back plan Single premium whole of life plan Personal pension plan Saving assurance plan Assure plan

3.6 AREA OF OPERATION:The area of operation was national since origin, but in the year 2000 the company has a joint venture with standard life UK and entered Global market. So the area of operation of the company is global since 2000.

OWNERSHIP PATTERN:HDFC STANDARD LIFE INSURANCE is having a joint venture with Standard life UK. It was registered on 23.10.2000 & while registration it took the joint venture with standard life.

COMPETITORS:Sl.no
1 2 3 4 5 6 7 8 9 10 11

Company names
New York Life Insurance Company Ltd ICICI Prudential Life Insurance Company Ltd Kotak Mahindra Life Insurance Company Ltd Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd Life Insurance Company Ltd ING Vysya Life Insurance Company Private Ltd Bajaj Life Insurance Company Pvt. Ltd Life India Insurance Company Pvt. Ltd Life Insurance Company Ltd SAHARA India Insurance Company Ltd

3.7 INFRASTRUCTURE FACILITIES:It covers over 693 cities & towns through its offices in India with over 79000 financial consultants by company. HDFC also has 833 corporate agents and other sales intermediaries including banks for distribution of insurance products. The company has a tied agency and an alternate channel. Tied agency mainly deals with getting business and recruiting the life advisors, alternate channel. Tied agency mainly deals with getting business and recruiting the life advisors, alternate channel members are considered as the channel partners and they deal with mutual funds. In the tied agency as well as alternate channel, each employee is provided with a computer to perform their operations and a telephone connection is given as they have to follow up their clients and telephones are very essential to make feel calling. Each branch is provided with a seminar room, a branch manager room, regional manager room, cash counter for premium receipts and many other safety and welfare facilities to make employees feel free to perform their work.

3.8 AWARDS AND ACCOLADE OF HDFCSL

AWARDS
y y y y ³Company of the Year´ for the seventh successive year (Money Marketing Awards) ³Best Pension Provider´ (2004 and 2005 Money Marketing Awards) ³Best Pension Product´ (2003 ± 2005 Money facts Investment, Life & Pension Awards) ³Group Pensions Provider of the Year´ (Financial Adviser Life and Pension Award 2004).

ACCOLADE
1. March, 2008
µUnit Linked Savings Plan¶ Advertisement Tops Mint Best TV Ads Survey Mint 24/03/2008 The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mint¶s Top Television Advertisement survey conducted, for February 2008. HDFC Standard Life¶s Unit Linked Savings Plan advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The respondents were between 18 and 40 years. Mint¶s exclusive report, µNew voices in a makeover¶ outlines the survey in detail.

2. January2008
4Ps Business and Marketing's recent issue covers '60 Glorious Advertising & Marketing Moments' over the last 60 years in India. Issue dated 21/12/2007 to 03/01/2008

The 50's have been named as the era of setting up new institutions with Air India Maharaja titled as the first Indian brand mascot, Surf being India's first detergent powder. The 60's saw the

maturing of brand punch lines and the beginning of jingles, with 'MRF Muscleman', 'Utterly Butterly Delicious Amul'; the 70's heralded the age of professionalism with the Liril girl at the waterfall; the 80's saw many iconic Indian brands being launched with Bombay Dyeing, Maggi Noodles, Lalitaji endorsing Surf and others; since 1991 where the massive inflow of brands into India, initiated a veritable deluge of marketing and positioning strategies, with the famous Ericsson commercial, Cadbury's 'Kya Swad Hai Zindagi Mein' and many others.

3. December 2007
A survey of the best ads on television in November in which HDFC Standard Life pension plans, topped the ad diagnostics and came in eighth on ad reach - Mint 24/12/2007 Our pension advertising was ranked first in terms of ad diagnostic scores (including likeability, credibility, enjoyment). Especially important as respondents were between 18 and 40 yrs and therefore our target prospects.

And was ranked 8th in terms of a combined score of ad awareness and brand recall. Our advertising started in the last week of November and therefore has managed to reach audiences quickly, especially since the study was done in November. Given our media spends, our industry and other brands in the ranking, this score is very encouraging.

4. September 2007
JusConsult¶s Ad Box Office Monthly Monitor (featured in Economic Times)- HDFC Standard Life was ranked 6th amongst µThe 10 most effective ads¶ in September 2007. It moved up from 56th in August 2007. JuxtConsult¶s Ad Box Office is India¶s biggest monthly monitor of most effective television ads amongst urban consumers. The ranking was based on the total effectiveness of the ad in connecting the brand with the consumers. JuxtConsult¶s Ad Box Office Monthly Monitor (featured in Economic Times)- ± HDFC Standard Life¶s ad slogan µSar Utha Ke Jiyo¶ was ranked 10th in the Top 10 Top-of-mind ad slogans in September, 2007 (The ranking was based on how much our ad slogan recalled µtop of mind¶ in the daily ad clutter.)

5. december2006-January 2007
HDFC Standard Life was ranked 29th in the most trusted Indian Brands amongst the Top 50 Service Brands of 2006. This study was conducted by Brand Equity (Economic Times supplement). HDFC SL moved up 16 places to be positioned at number 29 (was earlier at 45). The highest jump amongst all service brands.

3.9 GROWTH & PROSPECTS: The company is performing well at present. It has increased sales by 65% to euro 70m (2006:euro42m) of which standard life share was euro 12m (2006:euro11m). There was an increase of 57.9% growth during the year (2007-2008). It also has the present share of 2.15%. As the HDFC is in various domains of finance like Banking, Life insurance, Personal loan, Home loan, Mutual Funds, Securities, and General insurance.

WEAKNESS 3.10STRENGTHS THREATS ANALYSIS STRENGTHS: 1. Advanced Technology

OPPORTUNITIES

AND

Technology plays a vital role in today¶s banking and insurance sector to be very fast and accurate and in the process meet its day-to-day operations at a lighting pace and tremendous accuracy. HDFC STANDARD LIFE is using advanced technology to satisfy the customers in a large way.

2. Commanding market share
HDFC enjoys a commanding market share of around 15% in the private insurance sector where other insurance companies are fighting a battle to get their market share into double figures.

3. High quality infrastructure
HDFC perhaps has got the best infrastructure support both for its employees and the advisors. They made huge investments in IT to make the company techno savvy and competitive. y Premium rates are increasing and so are commissions. y The variety of products is increasing. y Prospects expect more services from their brokers. y Huge pool of skilled professionals

4. Providing innovative products and services
To attract new customers and retain old customers HDFC has range of products tailor made for everyone¶s requirements ranging from investment plans to child plans to

retirement solutions. An array of products that cannot be found in the shelf of any other life insurance company.

WEAKNESSES
1. Absent in the rural market
HDFC has not catered into the rural market where there are tremendous opportunities for the company¶s products provided they develop some innovative products for the rural markets.

2. Lack of Band image in rural areas
The company is well known in urban areas due the promotions undertaken in the city but HDFC does not have the brand recognition of an LIC in the rural area. So HDFC has to undertake promotional activities to generate interest among the rural folks if it intends to have substantial market share.

3. Too many subsidiaries
HDFC group has many subsidiary products like General insurance. Mutual funds, Securities, Retail banking etc.

4. Premium is high
The company fixed the minimum premium that difficult to pay for low-income class people. y y y Insurance companies are often slow to respond to changing needs. There is an increasing trend of financial weakness among the companies. There are more competitors for agencies to compete with banks and Internet players.

OPPORTUNITIES
1. Every growing population
As the population of our country is increasing the steadily the demand for the insurance and other financial products are increasing simultaneously as there are more people with a variety of needs.

2. Expand more branches
As the awareness increase in people about insurance. There is need to expand more branches.

3. More growth for few products
Increase in population in particular area. There is large growth in Retirement solution and Health products. y y The ability to cross sell financial services is barely being tapped. Technology is improving to the point that paperless transactions are available.

THREATS :1. Cut throat competition
HDFC is given a tough run for its money due to the competition from other private insurance companies like ICICIPRU, Bajaj Allianz and Birla Sun Life insurance companies. y y y y y y y Nonexistent in the rural market :Arrival of more insurance companies in India. The increasing cost and need for insurance might hit a point where a backlash will occur. Government regulations on issues like health care, mold and terrorism can quickly change the direction of insurance. Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies. Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies. Human Resource Challenges.

CHAPTER 4
THEORETICAL FRAMEWORK

PRODUCT PROFILE

Product range of HDFC standard Life insurance
LIFE INSURANCE Savings/Investment plans - Endowment Assurance, Money Back, Single Premium Whole of Life, Children's Plan, Health plan Pure protection plans - Term Assurance, Loan Cover Term Assurance GROUP INSURANCE y Group Term Insurance Plan
y

Development Insurance Plan

RETIREMENT PLANNING y Personal Pension Plan

Savings & Investment Plans
You have always given your family the very best. And there is no reason why they shouldn't get the very best in the future too. As a judicious family man, your priority is to secure the wellbeing of those who depend on you. Not just for today, but also in the long term. More importantly, you have to ensure that your family's future expenses are taken care, even if something unfortunate were to happen to you. A big factor that you need to consider while building your wealth is inflation. It has a dual impact on your hard-earned savings. Inflation not only erodes your current purchasing power but also magnifies your monetary requirements for the future. Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.

However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save nearer to Rs 50,000/- annually to reach your targeted savings at the age of 50 Years, if you consider inflation. Our Savings & Investment Plans provide you the assurance of lump sum funds for your and your family's future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure your family a certain sum by way of an insurance cover. With HDFC Standard Life's range of Saving & Investment Plans, you can therefore ensure that your family always remains financially independent, even if you are not around.

Types of Savings & Investment Plans
Our range of Savings & Investment Plans includes Type Conventional Plans Unit Linked Insurance Plans HDFC SL ProGrowt h Super II HDFC SL ProGrowt h Flexi HDFC SL ProGrowt h Maximise r

Regular Premium

HDFC SL New Money Back Plan HDFC Assurance Plan HDFC Savings Assurance Plan HDFC Endowment Assurance Plan HDFC Life Sampoorn Samridhi Insurance Plan HDFC Single Premium Whole of Life Insurance Plan

Single Premium/ Investment

Limited Premium Payment

HDFC SL ClassicAssure Insurance Plan

HDFC SL Crest

HDFC Endowment Assurance Plan
As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also for the long term. With our HDFC Endowment Assurance Plan, you can start building your savings today and ensure that your family remains financially independent, even when you are not around. This 'With Profits' plan is designed to secure your family's future by giving your family a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term.

Features

Advantages
y

y y y y

Ideal way to secure your long-term financial goals and your family's financial independence by giving a lump sum payment (basic Sum Assured plus any Bonus Additions) on survival up to Maturity date Provides invaluable protection to your family by way of lump sum payment in case of unfortunate demise within policy term Gives you the flexibility to customise your policy according to your needs by adding any one of the 3benefit options available You can choose to pay your premium as either Annually, Half-Yearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961

HDFC SL New Money Back Plan

Being self reliant is a nice feeling. It⼌s comforting to be assured that you have necessary funds to live a fulfilling life. With HDFC SL New Money Back Plan, you will get regular cash back at periodic intervals, so that you can fulfill your dreams & aspirations. This plan also offers the financial protection to your loved ones when they need it the most, enabling you to live life with peace of mind.

Features

Advantages
Money Back on completion of every 4 years, you would get a percentage of your sum assured as cash payout. The payout will be as defined below. Policy Terms (Yrs.)
12

Survival Benefit as a % of Sum Assured (Money Back Payout) 4th yr
25%

8th yr
25%

12th yr
50% + attaching bonus 25%

16th yr
-

20th yr
-

24th yr
-

16

25%

25%

25% + attaching bonus 20%

-

-

20

20%

20%

20%

20% + attaching bonus 15%

-

24

15%

15%

15%

15%

25% + attaching bonus

y

y

y

Provides valuable protection to your family by way of lump sum payment i.e. Sum Assured plus attaching bonsues, in case of unfortunate demise within policy term, over and above any earlier payouts. You can choose to pay your premium as either Annually, Half-Yearly, Monthly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961

HDFC Single Premium Whole of Life Insurance Plan
Ideally, just how spending comes to you, so must saving and investing. You are able to finance your expenses and take care of your family's needs in present times. However, to ensure that family is able to maintain the same standard of living in the future, you need to make the right kind of investment today. HDFC Single Premium Whole of Life Plan is a tailor made plan well suited to meet your long-term investment needs and help you maintain your family's financial independence. This single premium investment plan is a Whole of Life plan aimed at providing long-term real growth of your money.

Features

Advantages
y y

y

y

This participating plan is a Whole of Life plan aimed at providing long-term real growth for your money By nature, this is a whole life policy where the term extends for the life However, you can decide on the policy term by using a feature built into it. For a period of 4 weeks, after any one of the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the Sum Assured plus any attaching bonuses, in full. Once money has been received, your policy will cease or you may also continue the policy for your whole life You can terminate the policy any time, after it has been in force for at least 6 month and receive a surrender value. We will pay discretionary surrender value based on our experience. However, after completion of 3 years there will be a guaranteed surrender value of 50% of premium paid. In addition to the guaranteed surrender value, we may pay additional discretionary surrender value based on our experience. Contract ends on the payment of the same Currently Section 80C benefit is available for the premium paid under the plan to the extent of 20% of the Sum Assured. In the event of a death claim the money paid is exempt as per Section 10(10D), of the Income Tax Act 1961

Health Plans
Health plans give you the financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence. In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect the most important asset that we have - our health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

Types Of Health Plans
Our range of Health Plans includes
y HDFC critical care plan HDFC surgi care plan

y

HDFC SurgiCare Plan
In the fast paced lives that we lead, medical contingencies may arrive at our doorstep uninvited.Surgery costs form a substantial portion of health care expenditure and needs to be provided for. Health issues can get compounded if left unattended and may require a surgery. Plus, the ever increasing costs of surgical procedures are sure to burn a hole in our pockets. HDFC SurgiCare Plan provides you with timely support in case you have to undergo a major surgery and hospitalisation, as the case maybe, ensuring your financial independence at all times.

Features

Advantages
y y y y y y y y 82 major surgical procedures are covered. Option to include hospital cash benefit Automatic increase in the level of health cover (subject to terms and conditions) ensures that the increasing medical costs are taken care of. Lump sum benefits are paid regardless of the actual medical expenses. The policy continues even after the after the payment of first or subsequent surgical procedures, subject to terms and conditions as stated in the policy brochure. Flexibility to tailor-make the policy by choosing level of health cover, benefit options level and premium payment as per your needs. Convenient and hassle free claims with cashless benefits on surgeries and hospitalization in any of the network hospitals. To know more click here. Tax benefits can be availed under section 80D of the Income Tax Act, 1961

Retirement Plans
Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. India's average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years. Priorities at different stages of life:-

However, skyrocketing costs can throw even a well-laid plan off balance. With costs rising every day, you can just imagine how high they will be when you are ready to hang up your boots. So, what should you do to counter this? It's time to plan your retirement and that too sooner than later.

The above illustration shows how with each passing year your annual savings requirement would increase. For instance, if you are 30 years old and plan to retire at 60, then, with a current annual expenditure of Rs. 3,00,000/- , you would need a corpus in excess of Rs. 2,00,00,000/- to maintain your living standards, assuming you live till 85 years and the inflation rate is 4%. To build this retirement corpus, you need to invest Rs 3,60,000/- per annum in a retirement plan that offers 8% returns per annum. In case you delay planning your retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per annum.

Types of Retirement Plans
Our range of Retirement Plans includes Type Regular Premium Single Premium/ Investment Conventional Plans HDFC Personal Pension Plan HDFC Life ClassicPension Insurance Plan HDFC SL Pension Maximus Unit Linked Insurance Plans

HDFC Personal Pension Plan
Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Personal Pension Plan is a 'With Profits' insurance policy that is designed to provide a post-retirement income for life with the freedom to choose your retirement date.

Features

Advantages
y This plan is designed to provide you a post retirement income for life- You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will

y y y y y

y

receive the Sum Assured plus any attaching bonuses, which will provide you a post retirement income in your golden years On your chosen retirement (Vesting) date, you will get the lump sum comprising the Sum Assured plus any attaching bonus. You can take up to 1/3rd of your Sum Assured as a tax free cash lump sum The rest must be converted to annuity You can buy the annuity from us or any other insurer For Regular Premium Policy, you can choose to pay your premium as either Annually, HalfYearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein