1. 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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2. 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 plans
Young & Just married Asset creation & protection Wealth creation and
mortgage protection
plans
Married with kids Children's education, Asset Education insurance,
creation and protection mortgage protection &
wealth creation plans
Middle aged with grown up Planning for retirement & Retirement solutions &
kids asset protection mortgage protection
Across all life-stages Health plans Health Insurance
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
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3. 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.
CHARACTERISTICS OF INSURANCE
 Sharing of risk
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4.  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
PERIOD OF THE STUDY
From 24th June 2008 to 30th July 2008
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5. 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.
LIFE INSURANCE
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6. 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
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
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7. 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.
A BRIEF
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8. 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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9. 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 1 st 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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10. 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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11. 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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12. List of other Life Insurers after 01.04.2000
Table -1
S.No. Name of the Company
1 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
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.
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13. (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
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
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14. 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
COMPANY WISE DETAILS
Table-4
Premium Income
December 2007
Total including Regular Single Renewal Total
group business Premium Premium Premium
(Rs crs)
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
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15. 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
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
15

16. 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
Branches
Zonal office 9
Regional Offices 29
Branch office and Spoke Locations 569
16

17. 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
Bancassurance Partners
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18. Stake Holding Pattern
27.62%
HDFC
Standard Life
72.38 %
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
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19. 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'
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
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20. was inducted as a whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of
HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).
• Mr. Keki M Mistry joined the Board of Directors of the Company in December,
2000. He is currently the Managing Director of HDFC Limited. He joined HDFC
Limited in 1981 and became an Executive Director in 1993. He was appointed as
its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute
of Chartered Accountants of India and a member of the Michigan Association of
Certified Public Accountants.
• Mr. Alexander M Crombie joined the Board of Directors of the Company in
April, 2002. He has been with the Standard Life Group for 34 years holding
various senior management positions. He was appointed as the Group Chief
Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of
the Faculty of Actuaries in Scotland.
• Ms. Marcia D Campbell is currently the Group Operations Director in the
Standard Life group and is responsible for Group Operations, Asia Pacific
Development, Strategy & Planning, Corporate Responsibility and Shared Services
Centre. Ms. Campbell joined the Board of Directors in November 2005.
• Mr. Keith N Skeoch is currently the Chief Executive in Standard Life
Investments Limited and is responsible for overseeing Investment Process &
Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/
s. James Capel & Co. holding the positions of UK Economist, Chief Economist,
Executive Director, Director of Controls and Strategy HSBS Securities and
Managing Director International Equities. He was also responsible for Economic
and Investment Strategy research produced on a worldwide basis. Mr. Skeoch
joined the Board of Directors in November 2005.
• Mr. Gautam R Divan is a 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
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21. 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.
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.
21

22.  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
HDFC Group Companies
22

23. Future Activities
DISTRIBUTION
SECURITISATION
23

24. 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
24

25. 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.
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
25

26. 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.
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
26

27. 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
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
27

28.  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
 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.
28

29. PRODUCT PROFILE
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
29

30. 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.
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:
o Due to an accident, and
o Within 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
30

31. 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.
 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.
31

32. 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
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.
32

33. 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
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.
33

34.  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.
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.
34

35. 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.
(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
35

36. 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.
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
36

37. 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
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
37

38.  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
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 GROSS ANNUAL HOW MUCH HDFC
SECTION SALARY TAX CAN WE STANDARD LIFE
SAVE? PLANS
Sec. 80C Across All income Upto Rs.33,990 All the life
Slabs saved on investment insurance plans
of Rs. 1,00,000.
38

39. Sec. 80 CCC Across all income Upto Rs.33,990 All the pension
slabs. saved on Investment plans.
of Rs.1,00,000.
Sec. 80 D* Across all income Upto Rs.3,399 All the health
slabs. saved on Investment insurance riders
of available with the
Rs. 10,000 conventional plans.
TOTAL SAVINGS Rs. 37,389
POSSIBLE ** Rs. 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
CHART -1
39

40. MD & CEO
GM- Sales and HOD - IT HOD - Legal & GM -Finance & GM- HR GM –
Marketing Secretarial Actuarial Operation
and
Underwriting
Zonal Services
Business Managers HOD-Audit
HOD-HR
Head-North
Zonal Managers
Sales
National Training
Zonal Services Actuarial Manager HR
Business Head- Managers
South
HOD -Health
Zonal
Managers
-Sales HOD -
HOD-Institutional. Medical OPERATION
Sales Regional Managers
HOD -Underwriting
HOD-Marketing
Territory Managers
Process
Finance Controller
HOD-Sales Training
Branch Managers
HOD-Channel HOD-Accounts
Development Sales Development
Managers
MARKETING DEPARTMENT
40

41. 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
GM SALES & MARKETING
HOD
MANAGER TELECALLING MANAGER TELECALLING
ZONAL MANAGER
SALES DEPARTMENT
41

42. 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).
CHART SHOWING HIERARCHY OF RETAIL SALES DAPARTMENT
CHART -3
42

43. BUSINESS HEAD
ZONAL MANAGER
REGIONAL MANAGER
TERRITORY MANAGER
BRANCH MANAGER
ASSISTANT SALES MANAGER
BUSINESS DEVELOPMENT
MANAGER
SALES DEVELOPMENT
MANAGER
FINANCIAL CONSULTANT
CHART SHOWING HIERARCHY OF ALTERNATE CHANNEL
SALES DEPARTMENT
CHART -4
43

44. MANAGING DIRECTOR
GENERAL MANAGER (DIRECT)
NATIONAL HEAD (DIRECT)
AREA DEVELOPMENT
MANAGER (DIRECT)
BUSINESS MANAGER
(DIRECT)
BRANCH DEVELOPMENT
MANAGER (DIRECT)
SALES DEVELOPMANT
MANAGER (DIRECT)
HUMAN RESOURCE DEPARTMENT
44

45. 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
CHART SHOWING HIERARCHY OF HUMAN RESOURCE
DEPARTMENT
45

46. CHART -5
GM- HR
HOD- HR
SENIOR HR MANAGER
ZONAL MANAGER HR
ASSISTANT MANAGER HR
REGIONAL HR EXECUTIVE
CHANNEL DEVELOPMENT DEPARTMENT
46

47. 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.
CHART SHOWING HIERARCHY OF CHANNEL DEVELOPMENT
CHART -6
47

48. HOD CD
NATIONAL HEAD
TERRITORY MANAGER
AREA MANAGER
CHANNEL DEVELOPMENT
MANAGER
ADMINISTRATION DEPARTMENT
48

49. 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
HEAD HR ADMINISTRATION
SENIOR MANAGER
ADMINISTRATION
MANAGER ADMINISTRATION
ASSISTANT MANAGER
ADMINISTRATION
SENIOR EXECUTIVE
EXECUTIVE
SUPPORT STAFF
LEGAL DEPARTMENT
49

50. 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
MANAGING DIRECTOR
COMPANY SECREATARY &
LEGAL HEAD
ZONAL LEGAL EXECUTIVE
RISK MANAGEMENT DEPARTMENT
50

51. 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 .
CHART SHOWING HIERARCHY OF RISK MANAGEMENT DEPARTMENT
CHART -9
BOARD OF DIRECTORS
SECRETARY
AUDIT OFFICER
TRAINING DEPARTMENT
The main functions of Training Department are:
51

52.  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
NATIONAL TRAING MANAGER
ZONAL SERVICES MANAGER
ZONAL TRAINING MANAGER
REGIONAL TRAING MANAGER
TRAINING OFFICER
TRAINING OFFICER
CONSULTANT
OPERATION DEPARTMENT
The main functions of Operation Department are:
52

53.  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
CHART -11
GM OPERATION BUSINESS HEAD
ZONAL SERVICE MANAGER
HOD OF OPERATION
ZONAL OPERATION
MANAGER
BRANCH OPERATION
MANAGER
TEAM MANAGER
OPERATION EXECUTIVE
OPERATION OFFICER
GRADUATE TRAINEE (GT)
AGENCY DEPARTMENT
53

54. 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.
CHART SHOWING HIERARCHY OF AGENCY DEPARTMENT
CHART -12
GM OPERATION BUSINESS HEAD
ZONAL SERVICE MANAGER
HOD OF OPERATION
ZONAL OPERATION
BRANCH OPERATION MANAGER
MANAGER
TEAM MANAGER
OPERATION EXECUTIVE
AGENCY OFFICERS
MEDICAL DEPARTMENT
54

55. 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.
CHART SHOWING HIERARCHY OF MEDICAL DEPARTMENT
CHART -13
SENIOR VICE PRESIDENT
MANAGER MEDICAL SUPPORT
EXECUTIVE MEDICAL
SUPPORT
OFFICER MEDICAL SUPPORT
SWOT ANALYSIS
55

56. 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.
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

57. 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
• S-O strategies pursue opportunities that are a good fit to the company's strengths.
• W-O strategies overcome weaknesses to pursue opportunities.
57

58. • 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
 The financial consultant are very selectively chosen have excellent communication
skills.
 Service quality which is crux of their mission
 HDFCSLIC declared 7th consecutive bonus.
58

59.  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
 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.
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60.  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
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61. 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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62. 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.
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63. 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 interpretationnon-awareness of policy
document by the customer may have the serious implication in the long term.
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64. 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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65. 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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66. 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
9) HR- HUMAN RESOURCE
10) GM – GENERAL MANAGER
11) MIS- MANAGEMENT IFORMATION SYSTEM
12) CD – CHANNEL DEVELOPMET
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