Project On Insurance

PROJECT REPORT ON SUMMER TRAINING
NAME OF THE ORGANISATION: HDFC Standard Life Insurance

PLACE : Dharamshala
FIELD OF STUDY : Marketing
TOPIC OF RESEARCH : Recruitment, growth and potential of HDFC
Standard Life Insurance.
Submitted to
Institute of Engineering and Emerging Technology, Baddi.
In partial fulfillment of the
Requirements for the award of Degree of
Masters of Business Administration.
SUBMITTED BY:
Name Sapna Sood
Course MBA
Year IInd year
Roll No 98/08
HPU (roll no) 981
INSTITUTE OF MANAGEMENT STUDIES,

BADDI, DIST SOLAN,
HIMACHAL PRADESH
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To whomsoever it may con
This is to certify that

Mr. / Miss SAPNA SOO
Technologies, Baddi (IMS)
titled “ Recruitment, Grow
From 1- July-09 (Start date)
Company Ltd, DHARAMSHA
We wish her/ him good luck

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ACKNOWLEDGEMENT
I would like to extend my sincere thanks to HDFC Standard Life Insurance Company for
providing me an immense opportunity for undertaking research in their esteemed
organization and providing me with continuous support and guidance which was vital for
the successful completion of the project.
I would like to take this opportunity to express my gratitude to my project guide, Mr.
Sunny Walia, Branch development manager, for a significant contribution made by
him towards my learning, by way of making himself available, providing leads in course
of the project and most importantly for the tremendous source of encouragement and
inspiration he has bestowed on me throughout the project. He was my advisor in HDFC
SLIC.
I express my sincere gratitude to Mr. Varun Gandotra Branch Manager of HDFC

Standard Life Insurance, Dharamshala, and also our training officer Mr. Sanjeev for
their timely guidance and in providing the required facilities and information for
completing the project.
I am also very indebted to my parents and my brother who have been with me at every
moment of my life.
I also wish to thank Mr. Vivek Kapoor, channel development officer for his kind help
and support during the tenure of the project.
I also want to take this opportunity to express my sincere gratitude to all the faculty
members of HDFC Standard Life Insurance, Dharamshala, my friends and all the
people who encouraged me throughout the project.
I am also thankfull to god for always being there.
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TABLE OF CONTENTS
CHAPTER NO. PAGE.NO.
1. EXECUTIVE SUMMARY…………………………………………………..…….7-8
2. INTRODUCTION TO INSURANCE………………………………………..……9
 DEFINITION…………………………………………………………….…...10
 CONCEPT OF INSURANCE………………………………………….…….10
 KINDS OF INSURANCE……………………………………………..……..11-12
 FUNCTIONS…………………………………………………………….……13-14
3. RECRUITMENT OF FC IN HDFC
 FINANCIAL CONSULTANT…………………………………………….….15
 BENEFITS GIVEN TO FC…………………………………………………...15
 PAYOUT TERMS……………………………………………………………..16
 SPECIFICATIONS……………………………………………………………16
 PAY OUT ELIGIBILITY……………………………………………………...17
 CUMULATIVE LICENSING PAYOUT CHART…………………................18-19
 TRAINING GIVEN TO FC……………………………………………………20
 RATE OF COMMISION THAT FC WILL GET ON PLANS………..............21
 QUALITY TRAINING IN HDFC SLIC……………………………………...22
 CLUBS………………………………………………………………………….22
 STAR PERFORMERS CLUB…………………………………………………22
 FIELD WORK ON RECRUITMENT………………………………………....23
4. DIFFERENT PRODUCTS ON WHICH WE WERE TRAINED
 UNIT LINKED YOUNG STAR PLUS-II………………………………..24-29
 UNIT LINKED ENDOWMENT PLUS-II………………………………..30-34
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 HDFC SIMPLILIFE……………………………………………………….35-38
 UNIT LINKED ENDOWMENT –II………………………………………
39-43
 UNIT LINKED ENDOWMENT
WINNER……………………………….44
 HDFC’S SURGICARE PLAN……………………………………………..44
 UNIT LINKED YOUNG STAR CHAMPION…………………………….45
 UNIT LINKED WEALTH MAXIMISER PLUS…………………………..45
5. INSURANCE INDUSTRY’S PROFILE
 LIFE INSURANCE…………………………………………………………..46
 HISTORY AND PRESENT STATUS OF INSURANCE MARKET………46
 INSURANCE SECTOR REFORM…………………………………………..47-48
 INDIAN INSURANCE MARKET…………………………………………...49-53
 OVERVIEW OF INDIAN INSURANCE INDUSTRY……………………..54
 LIFE INSURANCE IN INDIA……………………………………………….54-55
 IRDA…………………………………………………………………………...56
 DISTRIBUTION TIE UPS OF LIC……………………………………………58
 FUNDWISE PATTERN OF INVESTMENT OF LIC…………………………59
 MARKET SHARE OF PRIVATE INSURANCE COMPANIES……………..60
 EXISTING PLAYERS IN THE MARKET…………………………………….60
 PRODUCT MIX OF LIC……………………………………………………….61
6. INTRODUCTION OF HDFC SLIC
 OVERVIEW OF HDFC SLIC………………………………………………….62-63
 KEY STRENGTH……………………………………………………………….64-67
 PROFILE OF THE ORGANISATION………………………………………...68-69
 COMPANY’S HISTORY……………………………………………………….70
• CODE OF CONDUCT AND ETHICS………………………………….71-76
• CORPORATE GOVERNANCE POLICY……………………………...77-78
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 RECENT ACHIEVEMENTS AND MILESTONES…………………………….79-80

 PRODUCTS OF HDFC SLIC……………………………………………………81-87
 INDUSTRIES OF HDFC SLIC…………………………………………………..88
 VISION AND VALUES………………………………………………………….89
• RESPONSIBILITY OF BOARD OF DIRECTORS……………………90
• AUDIT AND RISK COMMITTEE OF
DIRECTORS………………….91
7. RESEARCH
METHODOLOGY………………………………………………………….92-95
8. DATA PRESENTATION, ANALYSIS AND INTERPRETATION……………………96-139
9. SUMMARY OF THE PROJECT……………………………………………………….140-149
 FINDINGS……………………………………………………………………150-151
 SUGGESTIONS………………………………………………………………152-158
 CONCLUSION………………………………………………………………159
13. ANNEXURE AND BIBLIOGRAPHY……………………………………………..160-163
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EXECUTIVE SUMMARY
Insurance is the pooling of fortuitous losses by transfer of such risk to insurers,
who agreed to provide the pecuniary benefit on their occurrence, or to render service
connected with risk. It is the transfer of financial responsibility for the risk at the point of
occurrence and conventionally involves the insurer in a commitment to pay. The
insurance service lead to efficient and productive allocation of capital resources,
facilitate growth of trade and commerce. Globalization will certainly increase insurance
penetration and all professionals shall equip themselves to exploit opportunities offered
by this sector.
The consumers are the largest economic group in any country and the present
day business activities are because of consumers only. Thus, consumers are the pillars
of the economy. The consumers are not only the heart of marketing system, but also the
controller of marketing functions. But it the modern marketing system consumers
sovereignty has become a myth on account of the variety of problems in the process of
merchandising. The study of consumer behavior enables marketers to understand and
predict consumer behavior in the market place; It also promote understanding of the
role that consumption plays in the lives of individual.
This gives me an opportunity to work on with this endeavor focusing on the
recruitments and growth of the company with special reference to the insurance
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products’. The primary objective of the study is to understand the growth of the
company by studying the awareness of the financial products within the consumers and
the number of consumers who take the policy from HDFC SLIC. Apart from this the
project also mentions the necessity of recruitment of financial consultants. I have done
field work regarding the recruitment.
The introductory chapter gives and insight to the insurance industry. It briefly
explains about the history of life insurance sector. It also contain the organizational
profile of HDFC SLIC, stating about its mile stones, vision, products, protection
solutions, advertising effectiveness and finally about its marketing strategies
and challenges.
The second chapter gives a glimpses idea about the area of dissertation i.e.
theoretical background of the study. This part clearly explains the theoretical part of
consumer behavior in general. It also includes statement of the problem, need and
impotents of the present study and focal objectives of the dissertation undertaken.
The third chapter explains about literature review. It briefly describes what all are
the information source for the present study and what benefits has derived from the
reference of those literatures.
Next part explains about the research methodology. With the basic
understanding of the study research design was formulated. To collect the data,
questionnaires consisting of 24 questions were prepared. The necessary data were
collected through personal interviews and interaction with both company personnel and
holders of life insurance policies. This chapter specifically explains about the type of
research, sample technique, sample size, actual collection of data and the tools used
for the testing of hypothesis.
The last but one chapter contains the analysis and interpretation of data
collected. The collected data was coded through tally bars and presented in percentage
wise and depicted in the form of graphical representation. It also includes the
hypothesis test about the overall result of the present study.
The last chapter is entirely the exploration of the research study giving all
respondents opinion in nutshell as findings i.e. stating that around percentage of

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customers behave positively towards the HDFC SLIC’s products. The dissertation
ends up with the suggestions in order to modify the current system for a higher
growth and progress.
INTRODUCTION TO THE SUBJECT
Introduction to Insurance
Insurance is a complex mechanism & it is consequently difficult to define. Insurance is

co-operative device for spreading over the loss suffered by one or more, caused by
particular risk, over large number of persons who agree to share the loss collectively.
We all are exposed to various risks in our daily life. Even the Wisest & Cleverest can't
avoid all risks. Nobody can predict or foresee the calamity he may suffer in future.
Everybody on the road, whether on foot or in a vehicle carries some risk.' of accident
which may result into serious injury, loss of limb impairing ability to earn livelihood, or
even death. One may take precautions against such risk, but the risk can't be
eliminated. Similarly, there can be loss due to fire, earthquakes, illness etc. Every loss
causes human suffering.
A risk involves loss. Not all, but most of the losses can be expressed in term of
money. A person exposed to some risk may incur a loss. If loss is small he may bear it
alone. If loss is huge he may not be able to bear it alone. Society may've to render help
to enable the sufferer to cope up with the situation. e.g., the help rendered to the victim
of earthquake in Gujarat. However it will be better if a device or system is developed to
provide help to those who happen to suffer a loss. Such a system is INSURANCE.
INSURANCE is a Co-operative device, which spreads, the loss caused by a par-
ticular risk to some person, over a number of person who are exposed to same or
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similar risk & who agree to 'insure' against that risk.

DEFINITIONS:
Functional definition:
Insurance is an instrument of distributing the loss of a few among many. ALLEN C.
MAYERSON, "Insurance is a device for the transfer to an insured of certain risks of
economic loss that would otherwise be same by the insured."
Contractual definition:
JUSTICE TINDALL, "Insurance is a contract in which a sum of money is paid to the
assured in consideration of insurer's incurring the risk of paying a large sum upon a
given contingency."
CONCEPT OF INSURANCE
Insurance is always against the risk (Risk is a condition where there is a possibility
of an adverse deviation from a desired outcome that is expected or hoped for). When
risk is said to be exist, there must always be at least two outcomes: certain and
uncertain. Risk arises out of uncertainty. Therefore Insurance is for the loss arising out
of the uncertainty of an event.
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Insurance is a mechanism or device to reduce the risk through risk sharing and
risk transfer. It is not the property, which is being insured. It is the person’s financial
interest in the property. So, Insurance provides the financial service.
However in simple terms, it has two characteristics:

1. Transferring or shifting of risk from one individual to a group;
2. Sharing losses, on some equitable basis, by all members of the Group.
KINDS OF INSURANCE
1. Life Insurance:
The subject matter of this type of insurance is human life. Most of insurance
policies are combination of saving & security. The insured is promised by the insurance
Co. that during the tenure of insurance in case of his death, his nominee will be paid the
insurance amount.
According to the SECTION 2 (ii) of Insurance Act 1938, "Life Insurance is the
business of effecting contracts of insurance upon human life including any contract,
whereby the payment of money is assured on death except death by accident on the
happening of any contingency dependent on human life and any contract which is
subject to the payment of premium for a team dependent on human life."
2. General Insurance:
(a) Marine Insurance:
It covers the sea or marine perils. Peril is the cause of loss or hazard, which is a
condition that may increase the chance of the loss. Marine Insurance is protection
against marine perils like loss or sinking of the ship, sea piracy, capture by enemy etc.
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(b) Fire Insurance:

It covers loss due to fire to the property like houses, shops, goods factories or go down
etc.
(c) Liability Insurance:
Covers risk of liability against third party, which on insurer might have to pay under
certain circumstances. E.g. injury to the property and/or person of a third person in road
accident or employer's liability for an injury or death of a worker while performing duty
etc.
(d) Social Insurance:

This is aimed at providing social security to the weaker sections of the society. It may
take the shape of pension plans, disability or sickness benefits etc. The premium may
come from government or employee and may also be shared by beneficiary.
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:
1. The date of maturity, or
2. Specified dates at periodic intervals, or
3. 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.
Reasons for investing in life insurance policies:
1. Protection for the Family
The most important objective of life insurance is to provide financial protection for the
family in case of an unexpected and premature death of its bread earner. The purpose
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is to protect the dependents against the loss of earning power of the insured through
death or disability. Those who have insured their lives for an adequate sum can live in
peace and comfort, free of the worry of what would happen to their families in the event
of their sudden and premature death.
2. Regular Savings
Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless
there is compulsion to do so. For such people, life insurance is a compulsory, regular
savings scheme, especially the monthly salary savings schemes. Even if you do not
subscribe to the salary savings scheme, you can issue standing instructions to your
bankers to pay the premium regularly without reference to you. The element
of savings in a life insurance contract should be understood in a proper
perspective.
FUNCTIONS OF INSURANCE
A). Primary Functions
1. Certainty of Compensation of Loss:

Insurance provides certainty of payment at the uncertainty of loss. The element of
uncertainty is reduced by better planning and administration. The insurer charges
premium for providing certainty. Life is always full of risks. Life without risks and
uncertainties is unthinkable. Man has always encountered risks of various types since
the inception of civilization. Minor risks can be ignored but the major risks cannot be
ignored and their avoidance is desirable. One of the ways or techniques of meeting the
risks loss is prevention and insurance. Insurance removes all uncertainties and the
assured is given certainty of payment of loss. The insurer charges premium for
providing the said certainty.
2. Insurance provides protection:

The risk will occur or not, when will occur, how much loss will be there is an uncertain?
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There are uncertainties of happenings of time and amount of loss. The main function of
the insurance is to provide protection against the probable chances of loss. The
insurance cannot check the happening of risk.
The insurer gives certainty of payment of loss to the assured by charging premium.
3. Risk sharing:
Risk is uncertain and therefore loss arising from the risk is also uncertain. All business
concerns face the problem of risk and if the concern is big enough the handling of risk
become a specialized function.
(B). SECONDARY FUNCTIONS
1. Prevention of loss: Prevention is always better than cure. Prevention of loss is by

far the best solution to the problem of risk. When prevention fails other methods must
be adopted. The insurance joins hands with those institutions, which are actively
engaged in preventing the losses of the society. Reduction in loss causes lesser
payment to the assured and so more saving is possible which will assist in reducing the
premium
2. It provides capital: It provides capital to the society. For planned development of a

country there is great need for huge amount of capital. The accumulated funds are
invested in providing proper infrastructure and in investing in productive channel. Now a
day, the insurance companies are rendering positive help in the development of trade,
commerce and industries of a country through different scheme of investment.
3. Adequate Financial cover: The need of insurance is largely felt to give a cover to
the rural areas and to the socially and economically backward classes with a view to
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reach all insurable person in the country and provide them adequate financial cover
against death at a reasonable cost.
4. Mobilization of Savings:
In insurance the savings of masses is collected by insurance corporations.
5. Investment:
When funds are invested the interest of the community is kept in mind.
RECRUITMENT AS FINANCIAL CONSULTANT IN HDFC STANDARD

LIFE INSURANCE
FINANCIAL CONSULTANT:
A person who motivates other people to take different policies from the company. He is
a mediator between the company and the people. He provides the people with all the
necessary information regarding the different policies.
There are certain benefits which are provided to financial consultants. Some of them are
mentioned below:
TIER/CLUB LICENSING NOS PAYOUT/LICENSE

SILVER 1-3 1300
GOLD 4-10 1750
GOLD PLUS 11-25 2250
PLATINUM 26-40 2500
PLATINUM PLUS >=41 3000
RECRUITMENT NOS/ PER MONTH PAYOUT /RECRUITMENT

1-6 200
>=7
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Bonus of rs.200/- per license if input/output ratio for the month is >= 33% will be paid
quarterly.
OTHER PAYOUT TERMS:
1. For licensing payouts, processing is done monthly based on slabs of cumulative

count of license during the applicable period.
2. For recruitment payouts, payout cycle is on monthly basis. Each month FC
recruitment count will start from zero.
3. For calculation of input/ output ratio, candidates recruited or licensed as life to life
transfer cases will not be accounted.
4. Recruitments payouts to be made only on the completion of training of the
candidates recruited.
5. PTs will be paid at the payout slab, based on cumulative number of licenses
clocked by the recruited candidates during the applicable period.
6. Incase of recruitment of life to life transfer cases no recruitment payout to be
considered to PTs.
7. If PT is recruitment inactive for 3 months continuously then he is declared
terminated and he may not claim licensing payout post termination.
8. Recruit needs to be approved by the concerned BSM or AM-CD.
9. Payout shall not be paid on recruitments in case not accompanied by prescribed
fees.
10. Payout will be done after 30 days of completion of project tenure by way of either
gift cards or in such fashion.
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SPECIFICATION FOR RECRUITMENT OF FC

Specifications are: (Q-score)
• Age of financial consultant should be in bracket of 25-55 years.
• Family income of FC should be minimum of rs. 3 lacs /annum.
• FC should be a graduate.
• Fc should have spent a minimum of 3 years in the city of current residence.
PAYOUT ELIGIBLE IS AS PER TABLE MENTIONED BELOW:
Recruitmen 1200 1200 1000 1200 0 1200

t payout
Licensing 7400 5250 10250 6750 11250 16500
payout
Tier Gold Gold Gold plus Gold plus Gold plus Platinum
attained
Bonus at 1000 800 800 0 0 0

the end of
1st quarter
Bonus at 200 0 400 1000 0 1400
the end of
2nd quarter
IMPORTANT CALCULATIONS:
• RC is eligible for max of 1200/- rs recruitment payout for a month in case

of >=6 FC recruitment with training completion
• Bonus payout is calculated on quarterly cycle.

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TIER COUNT PAYOUT INCREMENTAL INCREMENTAL CUMULATIVE
COUNT OF LICENSE LIC PAYOUT
FOR 2009(RS)
SILVER 1 1300 1 1300 1300
SILVER 2 1300 1 1300 2600
SILVER 3 1300 1 1300 3900
GOLD 4 1750 1 1750 5650
GOLD 5 1750 1 1750 7400
GOLD 6 1750 1 1750 9150
GOLD 7 1750 1 1750 10900
GOLD 8 1750 1 1750 12650
GOLD 9 1750 1 1750 14400
GOLD 10 1750 1 1750 16150
GOLD 11 2250 1 2250 18400

PLUS
GOLD 12 2250 1 2250 20650
PLUS
GOLD 13 2250 1 2250 22900
PLUS
GOLD 14 2250 1 2250 25150
PLUS
GOLD 15 2250 1 2250 27400
PLUS
GOLD 16 2250 1 2250 29650
PLUS
GOLD 17 2250 1 2250 31900
PLUS
GOLD 18 2250 1 2250 34150
PLUS
GOLD 19 2250 1 2250 36400
PLUS
GOLD 20 2250 1 2250 38650
PLUS
GOLD 21 2250 1 2250 40900
PLUS
GOLD 22 2250 1 2250 43150
PLUS
GOLD 23 2250 1 2250 45400
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PLUS
GOLD 24 2250 1 2250 47650
PLUS
GOLD 25 2250 1 2250 49900
PLUS
PLATIN 26 2500 1 2500 52400
UM
CUMULATIVE LICENSING PAYOUT CHART BASED ON CUMULATIVE
COUNT OF LICENSES
FINANCIAL CONSULTANT
Financial consultant is not an agent. The biggest difference is that an agent is not
certified where as an FC is certified by a governing body of the insurance called the
IRDA. An FC advice and recommend the best solution to meet a client’s financial
requirement. Working as an FC brings an excellent growth opportunity as the FC
himself can decide the amount of his own pay cheque. He can himself choose his
working hours
TRANINIG OF A FINANCIAL CONSULTANT
Training Managers are appointed in major cities for the constant upgrading in providing
service to a customer.
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Classroom sessions are conducted for all the trainees. 50 hours training is compulsory
for every trainee. The examination is conducted by IRDA. If the FC is far away from the
place of training then he can also opt for online training. They will have timely
interactions with the company spokespersons.
A special program is started to improve the selling skill of the FC which is known as the
Professional Selling Skills Programme. The basic objective of the program is to:
• Provide a lead
• To increase the participation of FC in exhibitions and organizing events.
• There are many Branch level contests which are started. If an FC works hard and
smart and fulfills the criteria for being a winner then he is given certain gifts,
benefits and free tours.
RATE OF COMMISION THAT EVERY FC WILL GET ON THE FOLLOWING

PLANS:
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Rate of commision
Type of Plan First year 2nd year 3rd Year+ Bonus
Endowment 25% 5% 5% 15%
Money Back 25% 5% 5% 15%
Term Assurance (RP) 20% 5% 5% 15%
Loan Cover Term (RP) 20% 5% 5% 15%
PPP (RP) 7.50% 2% 2% NIL
SPWLP/ PPP (SP) 2% - -
ULEP 12.50% 4% 1% NIL
ULPP (RP) 7.50% 2% 1% NIL
ULPP (SP) 1%
HDFC SLIC gives the top quality training to all the FC. There are certain features which
keeps the HDFC SLIC on the top when it comes to proper training of an FC. Some of
them are mentioned below:
• Support of a dedicated Sales Development Manager
• First class pre and post sales support

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• Lead Generation Support

• Marketing Support
• Recognition Programs - MDRT, Top Achievers Section
• Reward Programs
• Online Support
CLUBS:
There are certain clubs which are started to increase the healthy competition
between the financial consultants.
• Level 1: Star Centurion Club (upto 10% extra commission)
• Level 2: Gold Star Performers Club (5% extra commission)
• Level 3: Silver Star Performers Club (2.5% extra commission
Star Performers Club
• Periodic Branch Level Contests are started.
• National Level Contests are started to increase the competition and urge to do
better between the different FC’s.
 Prizes ranging from Foreign Trips, Consumer Durables, Mobile phones, Laptops,
Palmtops, Handy-cams, Gold Coins etc.
 All Financial Consultants who qualify for National Level gets Certificate
of Achievement from the Head - Retail Sales
FIELD WORK IN HDFC SLIC
Field work is of following two types:

 Policies
 Recruitment
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FIELD WORK
POLICIES RECRUITMENT
During my tenure in HDFC SLIC, we were only asked to do recruitments of financial

consultants.
TARGET received was of 4 recruitments. By the tenure of my training in HDFC SLIC I was able
to complete 7 recruitments. The details of them are as follows:
Name of the financial Educational qualification Profession

consultant
Arvind kumar Graduation Shop keeper
Sumit kumar Graduation Shop keeper
Sanjay kumar Graduation Clerk
Tinkle Graduation Shop keeper
Susheel Graduation Shop keeper
Chander Graduation Teacher
Narendra Graduation Teacher
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In HDFC SLIC, DHARAMSHALA, we were trained about
different products. These are mentioned below:
UNIT LINKED YOUNG STAR PLUS-II
(Invest in your child’s dreams and secure your self respect)

In young star plus policy, the investment risk in investment portfolio is borne by the
policy holder. The HDFC Unit Linked Young Star Plus-II gives:
• Valuable protection to your child in case you are not around.
• An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments.
• Regular loyalty units to boost your fund value every year.
• Flexible benefit combinations and premium payment options.
• Flexible additional benefits options such as critical illness cover.
• Flexible benefit payment preferences- double benefit and triple benefit.
We can choose our investment funds and premium. We will then invest our premium,
in our chosen funds, in the proportion we specify.
In case of the person’s unfortunate demise during the policy term, we will:
1. Pay the sum assured he had chosen to the beneficiary.
2. For double benefit continue to pay 100% of the original regular premiums
towards your policy.
3. For triple benefit continue to pay 50% of the original regular premiums
towards your policy and pay the balance 50% of the premium to the
beneficiary.
This means that HDFC Standard Life Insurance will continue to make your savings
on your behalf, in your absence.
Four easy steps to your own plan:

STEP 1 Choose the premium you wish to invest.
STEP 2 Choose the amount of protection you desire.
STEP 3 Choose the additional plan benefit you desire.
STEP 4 Choose the investment fund you desire.
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FUNDS DETAILS Asset class
Risk/return
Money Bank Govt. Equity
market deposit security
Liquid low capital risk. Very 100% ------ Very low
fund-II stable return
Stable Low capital risk Very low

managed
Duration< 12 month 0-30%
fund-II
Duration between 18 0-20%

to 24 month.
Secure More capital stability. 0-5% 0-20% 75-100% Low

managed Higher potential
fund-II return than liquid fund
Defensive Access to long term 0-5% 0-15% 50-85% 15-30% moderate

managed returns
fund-II risk down.
Balanced Increased equity 0-5% 0-15% 20-70% 30-60% High

managed exposure gives long
fund-II term results
Stability due to bond
exposure
Equity Long term return 0-5% 0-10% 0-40% 60- Very high
managed Little stability 100%
fund-II
Growth Maximize return 0-5% ----- ---- 95- Very high

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fund-II 100%investment in 100%

high quality equities.
Step 1: CHOOSE YOUR REGULAR PREMIUM
This is the premium you will continue to pay each year of the policy. You can pay
monthly, half yearly or annually. The minimum regular premium is Rs.12000 per year
for annual and half yearly policies. For monthly mode, the minimum regular premium
is Rs 1500 per month. You may also choose to pay adhoc single premium top up or
additional regular premiums.
STEP: 2 CHOOSE YOU’RE LEVEL OF PROTECTION

We can choose any amount of sum assured with:
• A minimum of 5 times your chosen annual regular premium.
• A maximum of 40 times your chosen annual regular premium.
STEP: 3 CHOOSE ADDITIONAL PLAN BENEFITS

We offer a range of valuable protection options to secure the future for your family.
We can choose either life options or life and health options.
Benefit type Benefit payment Summary of the
preference benefits
Death benefit Double benefit They will pay 100% of all
future regular premium.
Triple benefit 50%of the premium paid
by them.
Critical illness benefit Double benefit Same as above
Triple benefit Same as above
STEP: 4 CHOOSE YOUR INVESTMENT FUNDS

In this plan the investment risk in your chosen investment portfolio is borne by you.
This means that the premium you pay are subject to investment risk associated with
capital markets.
ELIGIBILITY:
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BENEFITS TIME PERIOD AGE AT ENTRY MAXIMUM
MINIMUM MAXIMUM MINIMUM MAXIMUM AGE AT
MATURITY
LIFE 10 25 18 65 75
OPTIONS
LIFE AND 10 25 18 55 65
HEALTH
OPTIONS
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ACCESSING YOUR MONEY

1. ON MATURITY:
Your policy matures at the end of the policy term you have chosen and your death
and other risk ceases. You may redeem your balance units at the then prevailing
unit price and take the fund value with you.
SETTLEMENT OPTIONS: You have the option to take your fund in periodical
installment over the period, this may extend to 5 years.
2. ON DEATH:
Incase of your unfortunate demise during the policy
Term, we will:
• Pay the sum assured you had chosen to the beneficiary.
• Double benefit payment: continue to pay 100% of the original regular
premiums towards your policy as and when the premiums are due on an
annual basis.
• Triple benefit payment: continue to pay 50% of the original regular
premium towards your policy and pay the balance 50 % of the premium
to the beneficiary on annual basis.
3. ON CRITICAL ILLNESS:
• Continue to pay 100% of the original regular premium towards your policy
as and when the premium is due, on an annual basis.
on annual basis.
4. ON SURRENDER
Insurance plans are long term investments with significant tax advantages. If
you do not pay the original regular premium due in the first 3 years your life
cover will cease and the value of the units in the fund after the deduction of
the surrender charge will cease to be invested and will be held separately by
us. This amount will be paid out to you only at the end of the third year of your
policy or the end of the two year after you stop paying premiums into your
policy, whichever is later. Minimum withdrawal amount is 10000.
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CHARGES EXPLANATION
POLICY Rs.60/month
ADMINISTRATION
CHARGES
Amount depends upon your age
MORTALITY AND
OTHER RISK
BENEFIT Rs.100/ switch
CHARGE
Rs.250/ request
SWITCHING
CHARGE Depends upon fund value
PARTIAL Rs. 250

WITHDRAWAL
CHARGE
No surrender charges will be
SURRENDER levied for any policy that pays the
CHARGE original regular premium for 1st 5
yrs.
REVIVAL Rs. 250
CHARGES
CHARGES on withdrawl
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UNIT LINKED ENDOWMENT PLUS-II
The HDFC Unit Linked Endowment plus II gives:
 Valuable protection to your family in case you are not around.

 An outstanding investment opportunity by providing a choice of thoroughly
 Regular loyalty units to boost your fund value every year.
 Flexible benefit combinations and premium payment options.
 Flexible additional benefit options such as critical illness cover.
You can choose your premium and the investment funds. HDFC will then invest your
premium in your chosen funds. Incase of your unfortunate demise during the policy
term, we will pay the greater of your sum assured and your total fund value to your
family.
4 EASY STEPS TO YOUR OWN PLAN:
STEP 1 Choose the premium you wish to invest.

STEP 2 Choose the amount of protection you desire.
STEP 3 Choose the additional plan benefit you desire.
STEP 4 Choose the investment fund you desire.



Page55

preference benefits
future regular premium.
by them.
This means that the premiums you pay are subject to investment risk associated with
capital markets.
FUNDS DETAILS Asset class Risk/return


managed
fund-II Duration< 12 month 0-30%
Duration between 18 to 0-20%

24 month.

managed Higher potential return
fund-II than liquid fund
Defensiv Access to long term 0-5% 0-15% 50-85% 15-30% moderate

e returns
managed risk down.
fund-II
Page55
exposure
Equity Long term return 0-5% 0-10% 0-40% 60-100% Very high
managed Little stability
fund-II
Growth Maximize return 0-5% ----- ---- 95-100% Very high

fund-II 100%investment in
Page55
1. ON MATURITY:
installment over the period; this may extend to 5 years.
2. ON DEATH:
In case of your unfortunate demise during the policy
Term, we will:
annual basis.
on annual basis.
5. ON SURRENDER
Page55
CHARGES on with drawl
Page55
CHARGES EXPLANATION
POLICY Rs.60/month
ADMINISTRATION
CHARGES
MORTALITY AND
OTHER RISK
CHARGE
Rs.250/ request
SWITCHING
PARTIAL Rs. 250

WITHDRAWAL
CHARGE
yrs.
REVIVAL Rs. 250
CHARGES
HDFC 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 investment.
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Once you have chosen your premium and investment funds, HDFC will then invest
your premium in the proportion you specify. At the end of the policy term, you will
receive the accumulated value of your funds.
In case of your unfortunate demise during the policy term, we will pay the following to
your family:
• The unit fund value
• Sum assured
STEP 1: Choose the premium you wish to invest

This is the premium you will continue to pay each year of the policy. You
can pay either annually or half yearly. Your policy will have a fixed sum
assured of 5 times your chosen annualized premium.
minimum maximum
Annualized premium Rs. 20000 Rs. 100000
Sum assured Rs. 100000 Rs. 500000
STEP 2: Choose the investment fund or funds you desire.

In this plan the investment risk in your chosen investment portfolio is borne
by you. This means that the premiums you pay in this plan are subject to
investment risks associated with the capital markets. So, to balance your
level of risk and return, making the right investment choice is very important
and you are responsible for the choice you make.


managed

24 month.

Page55

e returns
managed risk down.
fund-II
exposure
fund-II

FLEXIBLE OPTIONS FOR YOUR NEEDS:
Flexible options benefits

Changing your investment decisions Switching
Premium redirections
Premium changes  You can not increase or reduce
your regular premiums at any
time.
 After 3 years of regular premium
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your policy will be converted into

a paid policy.
ELIGIBILITY:
TERM PERIOD AGE AT ENTRY MAX AGE AT
MATURITY
MIN-15 YRS MIN-18 YRS 60 YRS
MAX-20 YRS MAX- 45 YRS

1. ON MATURITY:
installment over the period; this may extend to 5 years.
2. ON DEATH:
In case of your unfortunate demise during the policy
Page55
Term, we will:
annual basis.
•Triple benefit payment: continue to pay 50% of the original regular
on annual basis.
6. ON SURRENDER
UNIT LINKED ENDOWMENT II
The HDFC Unit Linked Endowment II 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 investment.
Page55
 Flexible benefit combinations and premium payment options.

 Flexible additional benefit options such as critical illness cover.
4 EASY STEPS TO YOUR PLAN:

STEP 1 Choose the premium you wish to
invest.
STEP 2 Choose the amount of protection
you desire.
STEP 3 Choose the additional plan benefit
you desire.
STEP 4 Choose the investment fund or
funds you desire.




preference benefits
future regular premiums.
by them.
This means that the premiums you pay are subject to investment risk associated with
capital markets.
Page55


managed

24 month.


e returns
managed risk down.
fund-II
exposure
fund-II

Page55

1. ON MATURITY:
Page55
installment over the period, this may extend to 5 years.
2. ON DEATH:
Incase of your unfortunate demise during the policy
Term, we will:
annual basis.
on annual basis.
7. ON SURRENDER
CHARGES on with drawl

Page55
CHARGES EXPLANATION
POLICY Rs.60/month
ADMINISTRATION
CHARGES
MORTALITY AND
OTHER RISK
CHARGE
Rs.250/ request
SWITCHING
PARTIAL Rs. 250

WITHDRAWAL
CHARGE
yrs.
REVIVAL Rs. 250
CHARGES
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UNIT LINKED ENDOWMENT WINNER
The HDFC Unit Linked Endowment Winner 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.
⇒ Bumper additions to the fund value at maturity
⇒ Access to your accumulated fund before maturity.
⇒ No need to go to for medicals.
STEP 1 Choose the premium you wish to invest

STEP 2 Choose the investment funds you
desire.
STEP 3 Fill the short medical questionnaire.
SURGICARE PLAN
The HDFC Surgicare Plan gives you:
 Valuable financial protection in case of surgical procedures.

 Increasing health cover every year.
 Lump sums benefit payment irrespective of actual medical cost.
 Flexible benefit options to choose from
 Flexible premium payment options
3 EASY STEPS TO YOUR PLAN:
STEP 1 Choose the level of health cover you

need
STEP 2 Choose the benefit option you desire
STEP 3 Work out the premium payable along
with our financial consultant. Page55
UNIT LINKED YOUNGSTAR CHAMPION

The HDFC Unit Linked Young Star Champion gives:
 Valuable protection to your child in case you are not around.

 An outstanding investment opportunity by providing a choice of thoroughly
 Bumper addition to the fund value at maturity.
 Flexible premium options
 No need to go for medicals.
In case of your unfortunate demise during the policy term, we will:
• Pay the sum assured you had chosen to the beneficiary

• Continue to pay 50% of the original regular premiums towards your policy.

STEP 2 Choose the investment funds you
desire
STEP 3 Fill the short medical questionnaire
UNIT LINKED WEALTH MAXIMISER PLUS
The HDFC Unit Linked Wealth Maximiser Plus gives:
 An outstanding investment opportunity by providing a choice of thoroughly

 One time investment at the star of the policy
 Cover till age 99 years.
 Regular loyalty units to boost your fund value every year.
 No medicals

STEP 2 Choose the level of protection you
desire.
STEP 3 Choose the investment fund you
desire.
Page55
INDUSTRY PROFILE
LIFE INSURANCE
Life insurance is a contract providing for a payment of a sum of money to the person
assured or failing him to the person entitled to receive the same on the happening of
certain event. Uncertainty of death is inherent in human life. It is this risk, which gives
rise to the necessity for some form of protection against the financial loss arising
from death. Insurance substitutes this uncertainty by certainty.
The objective of insurance is normally to provide:
A. Family protection and
B. Provision for old age.
HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN

INDIA
The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reviles the 360-degre turn witnessed
over a period of almost two centuries.
A brief history of the insurance sector

The business of life insurance in India in its existing form started in India in the
1818 with the establishment of 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 Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non – 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 insurers and provident societies are taken over
Page55
by the central government and nationalized. LIC found by an Act of

Parliament, viz. LIC Act 1956, with a capital contribution of rupees Five
Crore from the Government of India.
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee setup with the
objective of complimenting the reforms initiated in the financial sector. The
reforms where aimed at “creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to address
the need for similar reforms…”In 1994, the Committee submitted the report and
some of the key recommendations included:
i. Structure
• Government stake in the insurance companies to be brought down to
50%.
• Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.
• All the insurance company should be given greater freedom to operate.
ii. Competition
• Private companies with a minimum paid up capital of Rs. 1bn should be
allowed to enter the industry.
• No company should dealing both the life and general insurance through a
single entity.
• Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies
• Postal Life Insurance should be allowed to operate in the rural market.
• Only one State Level Life Insurance Company should be allowed to
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operated in each state.
iii. Regulatory body

• The Insurance Act should be changed.
• An insurance regulatory body should be setup.
The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to
the insurance sector and in particular the life insurance companies was the
launch of the IRDA’s online service for issue and renewal of license to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have trained work force 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 12 life
insurance and 6 general insurance companies have been registered. Page55
INDIAN INSURANCE MARKET

Insurance is an Rs 400 billion business in India, and together with banking services
adds about 7% to India’s GDP. Gross premium collection is about 2% of GDP and
has been growing by 15 to 20% per annum. India also has the highest number of life
insurance policies in force in the world, and total investable funds with the LIC are
almost 8% of GDP. Yet more than three fourth of India’s insurable population has no
life insurance or pension cover. Health insurance of any kind is negligible and other
forms of non life insurance are much below international standards.
To tap the vast insurance potential and to mobilize long term savings we need
reforms with include revitalizing and restructuring of the public sector companies,
and opening up the sector to private players. A statutory body needs to be made
to regulate
The market and promote a healthy market structure. Insurance Regulatory
Authority (IRA) is one such body, which checks on these tendencies. IRA role
comprises of following three functions:
a. Protection of consumer’s interest

b. To ensure financial soundness and solvency of the insurance industry
c. To ensure healthy growth of insurance market.
An insurance policy protects the buyer at some cost against the financial loss
arising from a specified risk. Different situations and different people require a
different mix of risk – cost combinations. Insurance companies provide these by
offering schemes of different kinds.

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Unfortunately the concept of insurance is not popular in our country. As per the
latest estimates, the total premium income generated by life and general
insurance in India is estimated at around 1.95% of GDP. However India’s share
of world insurance market has shown an increase of 10% from 0.31% in 1996-97
to 0.34% in 1997-98. India’s market share in the life insurance business showed
a real growth of 11% there by outperforming global average of 7.7%. Non life
insurance business grew by 3.1% against global average of 0.20%. In India
insurance pending per capita was among the last in the world at $7.6 compared
to $7 in the previous year. Amongst the emerging economies, India is one of the
least insured countries but the potential for further growth is phenomenal, as a
significant portion of its population is in services and the life expectancy also
increased over the years.
The nationalized insurance industry has not offered consumers a variety of

products. Opening of the sector to private firms will foster competition, innovation
and variety of products. It would also generate greater awareness on the need for
buying insurance as a service and not merely for tax exemption, which is currently
done on the demand side, a strong correlation between demand for insurance and
per capita income level suggests that high economic growth can spur growth in
demand for insurance. Also there exists a strong correlation between insurance
density and social indicators such as literacy. With social development, insurance
demand will grow.
Page55
LIFE INSURANCE MARKET IN INDIA
Indian population 1 bn
GDP as on 2000 (Rs bn) 20000 bn
Gross Domestic Saving as a % of
23%
GDP
NCAER estimate of insurance
240 mn
Population
Estimated market by 2005 650 mn
India has an enormous middle class that can afford to by life, health, and
disability and pension plan products. The low level of penetration of life insurance in
India compared to other developed nations can be judge by a comparison of per
capita life premium.
C Country Life premium per capita US $

in1994
Japan 3817
UK 1280
USA 964
India 4
Clearly, there is considerable scope to raise per capita life premium is the market
is effectively tapped.
India has traditionally been a high savings oriented country – often described as
being on par with thrifty Japan. Insurance sector in the US is as big in the size as
the banking industry there. This gives us an idea of how important is the sector is.
Insurance sector canalizes the saving of the people to long-term investments. In
India where infrastructure is said to be critical importance, this sector
will bring the nations own money for the nation.

Page55
In three years time we would expect the 10% of the population to be under
some sort of an insurance cover. This assuming a premium of Rs. 5000 on an
average, 100 million Rs. 5000 = Rs. 500 bn.

This has made the sector the hottest one in India after IT. With social security
and security to the public at large being the agenda for opening the sector, the
role of the regulator becomes all the more serious and one that would be
carefully watched at every step.
The Insurance Regulator and Development bill is now an Act. With this India
in now the cynosure of all the global insurance players. Numerous player, both
Indian and foreign have announced their intention to start their insurance shops
in India. IRDA, under chairman ship of Mr. RANGACHARI, opened the window
for applying license in India.
One of the main deference between the developed economies and the
emerging economies is that insurance products are bought in the former while
these are sold in later. Focus of insurance industry is changing towards providing
a mix of both protection/risk cover and long-term investment opportunities.
Page55
Who’s going with whom?
Indian company Foreign partner

Kotak Mahindra Chubb
Tata Group AIG
Sundaram Finance Winterthur
Sanmar Group GIO of Australia
Spic Met Life
ILFS Cigna
Alpic Finance Allianz
20th Century Canada Life
Vysya Bank ING
Cholmandalan Axa
SBI Allince Capita
HDFC Standard Life
ICICI Prudential
Hindustan Times Commercial Union
IDBI Principal
Max India New York
Why life insurance?

Life Insurance cover is essential for it provides the following benefits:
• A lump sum payment to the nominees at the time of the death of the policy
holder;
• A regular payment to the nominees in the event of the death of the policy holder;
• Tax benefits, as premiums paid reduce the liability of tax;
• Relieves economic hardships in the family on the uneventful death of the sole
income holder;
• Inculcates the habit of saving.
AN OVERVIEW OF INDIAN INSURANCE INDUSTRY
Indian Insurance Industry

Page55
With a large population and untapped market, insurance happens to be a big

opportunity in India. The insurance business (measured in the context of first year
premium) grew at 47.93 per cent in 2005-06, surpassing the growth rate of 32.49
percent achieved in 2004-05. However, insurance penetration in the country
continues to be low. Insurance penetration or premium volume as a share of a
country’s GDP, for the year 2005 stood at 2.53 per cent for life insurance and 0.62
per cent for non-life insurance. The level of penetration tends to rise as income
increases, particularly in life insurance. India, with its huge middle class households,
has exhibited potential for the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors. The insurance market has witnessed dynamic changes which
includes presence of a fair number of insurers in both life and non-life segment.
Life Insurance in India

Life insurance industry recorded a premium income of Rs.105875.76 crore during
2005-06 as against Rs.82854.80 crore in the previous financial year, recording a
growth of 27.78 per cent. The contribution of first year premium, single premium and
renewal premium to the total premium was Rs.21275.75 crore (20.09 per cent);
Rs.17509.78 crore (16.54 per cent); and Rs.67090.21 crore (63.37 per cent),
respectively. In the year 2000-01, when the industry was opened up to the private
players, the life insurance premium was Rs.34,898.48 crore which constituted of
Rs.6996.95 crore of first year premium, Rs.25191.07 crore of renewal premium and
Rs.2740.45 crore of single premium.
Post opening up, single premium had declined from Rs.9, 194.07 crore in the year
2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return
policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent
growth) the year 2004-05 witnessed a significant shift with the single premium
income rising to Rs.10336.30 crore showing 74.11 per cent growth over 2003-04,
accounting for 12.74 per cent of the total premium underwritten in that year.
Page55
As against 34.62 percent in 2005-06.While the number of single premium individual

policies underwritten by the private insurance companies grew by 103 percent, the
non-single premium individual policies grew by 64 percent. The new insurers have
improved their market share from 9.33 per cent in 2005-06 to 14.25 percent in 2006-
07.
It reflects increase in their persistency ratio and enables insurers to bring down
overall cost of doing business. The renewal premium underwritten by the life
insurance industry, during 2006-07 recorded a growth of 18.46 per cent as against
20.85 per cent in 2005-06.
The private insurers and LIC reported growths of 122.56 per cent and 14.32 per cent
respectively during the year. Segregation of the first year premium reflects a definite
consolidation towards linked products with premium underwritten at Rs.16060.67
crore in 2006-07 as against Rs.8247.74 crore in 2005-06, i.e., a growth of 95 per
cent. The non-linked premium was Rs.19804.33 crore as against Rs.17069.37 crore
in 2004-05, i.e., a growth of 16 per cent. The linked and non-linked business
accounted for 44.78 and 55.22 per cent as against 32.54 and 67.46 per cent
respectively in the year 2005-06.
The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2000 has fast stuck to its schedule of framing regulations and registering the
private sector insurance companies. The other decision taken simultaneously to
Page55
provide the supporting systems to the insurance sector and in particular the life
insurance companies was the launch of the IRDA 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
Page55
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Distribution Tie Ups of Life Insurance Companies: (up to July 07)

Page55
Fund Wise Pattern of Investments of Life insurance companies
Page55
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Product mix of Life insurance companies:
Source=IRDA
Page55
INTRODUCTION TO HDFC STANDARD LIFE INSURANCE
Over view of the HDFC Standard Life Insurance

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint
venture between Housing Development Finance Corporation Limited (HDFC
Limited), India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance companies,
offering a range of individual and group insurance solutions, in India. Being a joint
venture of top financial services groups, HDFC Standard Life has adequate financial
expertise to manage long-term investments safely and resourcefully.
HDFC Standard Life Insurance offers a range of individual and group solutions,
which can be easily personalized to specific needs. Its group solutions have been
planned to offer complete flexibility, together with a low charging structure. As on 31
December, 2008, the Company's new business premium income stood at Rs.
1,839.70 Crores; it has covered over 812,811 lives so far. Given below is a
comprehensive list of policies and products on offer by HDFC Standard Life
Insurance:
Protection Plans
• HDFC Term Assurance Plan

• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan
Children's Plans
• HDFC Children's Plan

• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked Young Star Champion
Retirement Plans
• HDFC Personal Pension Plan
• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity
Page55
Savings & Investment Plans
• HDFC Unit Linked Endowment Plus II
• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maximiser Plus
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan
Health Plans
• HDFC Critical Care Plan
• HDFC SurgiCare Plan
Group Plans
• Group Term Insurance Plan
• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment
Page55
INTRODUCTION OF HDFC SLIC
Introduction
HDFC Standard Life Insurance Company Limited. 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 Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by others.
Our Key Strengths
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard

Life has the financial expertise required to manage your long-term
investments safely and efficiently.
Range of Solutions
We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed
to offer you complete flexibility combined with a low charging structure.
Track Record So Far
Our gross premium income, for the year ending March 31, 2009 stood
at Rs. 5,564.69 crores. The company has covered over 8, 33,070
lives as on March 31, 2009.
HDFC Standard Life believes that establishing a strong and ethical

foundation is an essential prerequisite for long-term sustainable
growth. To ensure this, we have concentrated our focus on expansion
of branch network, organizing an efficient and well trained sales force,
and setting up appropriate systems and processes with optimum use
of technology. As all these areas form the basic infrastructure for
establishing the highest possible customer service standards.
Page55
Our core values are drilled down to all levels of employees, as these are inviolable.
We continue to promote high integrity in business practices and shun short cuts and
unethical practices, as we wish to be perceived as an institution with high moral
standing. Since our inception in 2000, when the Indian insurance space was opened for
private participation, we have consistently focused on setting benchmarks in all aspect on
insurance business. Being the first private player to be registered with the IRDA and the first
to issue a policy on December 12, 2000, our differentiators are:
Strong promoter:
HDFC Standard Life is a strong, financially secure business supported by

two strong and secure promoters – HDFC Ltd and Standard Life. HDFC
Ltd’s excellent brand strength emerges from its unrelenting focus on
corporate governance, high standards of ethics and clarity of vision.
Standard Life is a strong, financially secure business and a market leader in
the UK Life & Pensions sector.
1. PREFFERED AND TRUSTED BRAND
Our brand has managed to set a new standard in the Indian life
insurance communication space. We were the first private life insurer
to break the ice using the idea of self-respect instead of ‘death’ to
convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one
of the few brands that customers recognize, like and prefer to do
business. Moreover, our brand thought, SAR Utha Ke Jiyo, is the most
recalled campaign in its category.
2. INVESTMENT POLICY
We follow a conservative investment management philosophy to

ensure that our customer’s money is looked after well. The investment
policies and actions are regularly monitored by a formal Investment
Committee comprising non-executive directors and the Principal
Officer & Executive Director.
As a life insurance company, we understand that customers have invested

their savings with us for the long term, with specific objectives in mind. Thus,
our investment focus is based on the primary objective of protecting and
generating good, consistent, and stable investment returns to match the
investor’s long-term objective and return expectations, irrespective of the
market condition.
Page55
3. NEED BASED SELLING APPROACH
Despite the criticality of life insurance, sales in the industry have been
characterized by over reliance on tax benefits and limited advice-
based selling. Our eight-step structured sales process ‘Disha’
however, helps customers understand their latent needs at the first
instance itself without focusing on product features or tax benefits.
Need-based selling process, 'Disha', the first of its kinds in the
industry, looks at the whole financial picture. Customers see a plan
not piecemeal product selling.
4. RISK CONTROL FRAMEWORK
HDFC Standard Life has fully implemented a risk control framework to

ensure that all types of risks (not just financial) are identified and
measured. These are regularly reported to the board and this ensures
that the company management and board members are fully aware of
any risks and the actions taken to ensure they are mitigated.
5. FOCUS ON TRAINING
Training is an integral part of our business strategy. Almost all

employees have undergone training to enhance their technical skills
or the softer behavioral skills to be able to deliver the service
standards that our company has set for itself. Besides the mandatory
training that Financial Consultants have to undergo prior to being
licensed, we have developed and implemented various training
modules covering various aspects including product knowledge,
selling skills, objection handling skills and so on.
6. FOCUS ON LONG TERM VALUE
HDFC Standard Life does not focus in the business of ramping up the
topline only, but to create maximisation of stakeholder's value. Today,
we are extremely satisfied with the base that we have created for the
long-term success of this company.
7. TRANSPARENT DEALING
We are one of the few companies whose product details, pricing,

clauses are clearly communicated to help customers take the right
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decision.
8. STRICT COMPLIANCE WITH REGULATIONS
We have initiated and implemented many new processes, some of

which were found useful by the IRDA and later made mandatory for
the entire industry. The agents who successfully completed this
training only, were authorized by the company to sell ULIPs. This has
now been made compulsory by IRDA for all insurance companies
under the new Unit Linked Guidelines.
DIVERSIFIED PRODUCT PORTFOLIO
HDFC Standard Life’s wide and diversified product portfolio help individuals
meet their various needs, be it:
• Protection: Need for a sound income protection in case of your

unfortunate demise
• Investment: Need to ensure long-term real growth of your money
• Savings: Save for the milestones and protect your savings too
• Pension: Need to save for a comfortable life post retirement
• Health: Cover for health related exigencies
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PROFILE OF THE ORGANISATION
Name of the company: HDFC Standard Life Insurance

Address of Head office:
City : Dharamshala Pin Code: 176215

State : Himachal Pradesh
Status : Private
Telephone number : 1892222913
STD Code : 1800-227/6000 9191 Fax no :
Email : life@hdfcinsurance.com
Website : www.hdfcinsurance.com
Chief executive
Contact person (H.R Manager/ Personnel manager)
Mobile no
Company’s year of establishment: 14th August, 2000
Company’s product range/ services/business area
1. Products
Protection Plans
• HDFC Term Assurance Plan

• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan
Children's Plans
• HDFC Children's Plan

• HDFC Unit Linked Young Star II
• HDFC Unit Linked Young Star Plus II
• HDFC Unit Linked Young Star Champion
Retirement Plans
• HDFC Personal Pension Plan
• HDFC Unit Linked Pension II
• HDFC Unit Linked Pension Maximiser II
• HDFC Immediate Annuity
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Savings & Investment Plans
• HDFC Unit Linked Endowment Plus II
• HDFC SimpliLife
• HDFC Unit Linked Endowment II
• HDFC Unit Linked Enhanced Life Protection II
• HDFC Unit Linked Wealth Maximiser Plus
• HDFC Unit Linked Endowment Winner
• HDFC Endowment Assurance Plan
• HDFC Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan
Health Plans
• HDFC Critical Care Plan
• HDFC SurgiCare Plan
Group Plans
• Group Term Insurance Plan
• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• Group Unit Linked Plan - Superannuation
• Group Unit Linked Plan - Leave Encashment
Name of Related Party/ Nature of Relationship:

• HDFC Limited Holding Company
• Standard Life Assurance Company Investing Party
• Standard Life (Mauritius Holdings) 2006 Limited Investing Party
• HDFC Asset Management Company Limited Fellow Subsidiary
• HDFC Developers Limited Fellow Subsidiary
• HDFC Holdings Limited Fellow Subsidiary
• HDFC Trustee Company Limited Fellow Subsidiary
• HDFC Realty Limited Fellow Subsidiary
• HDFC Investments Limited Fellow Subsidiary
• HDFC ERGO General Insurance Company Limited Fellow Subsidiary
• HDFC Sales Private Limited Fellow Subsidiary
• HDFC Venture Capital Limited Fellow Subsidiary
• HDFC Ventures Trustee Company Limited Fellow Subsidiary
• HDFC Property Ventures Limited
Annual turnover
Number of employees
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Date
Signature
Course
Branch
Semester
Roll No
COMPANY’S HISTORY
Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a
joint venture between Housing Development Finance Corporation Limited (HDFC
Limited) - India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance companies,
offering a range of individual and group insurance solutions, in India. Being a joint
venture of top financial services groups, HDFC Standard Life has adequate financial
expertise to manage long-term investments safely and resourcefully.
HDFC Standard Life Insurance offers a range of individual and group solutions,
which can be easily personalized to specific needs. Its group solutions have been
planned to offer complete flexibility, together with a low charging structure.
As on 31 December, 2008, the Company's new business premium income

stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far.
HDFC Standard Life Insurance Company Limited. is one of India's leading private
Limited (HDFC Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by others.
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CODE OF CONDUCT AND ETHICS
FOR MEMBERS OF THE BOARD OF DIRECTORS
AND SENIOR MANAGEMENT
Important points:
• “The Company” shall mean HDFC STANDARD LIFE INSURANCE

COMPANY LIMITED
• “Board” shall mean the Board of Directors of the Company.
• “Board Members” shall mean the Members on the Board of Directors of
the Company.
• “Executive Directors” shall mean the Board Members who are in whole-
time employment of the Company.
• “Relative” shall mean ‘relative’ as defined in Section 2(41) and Section
6 read with
IA of the Companies Act, 1956.
“Senior Management” shall mean:
(a) Executives who are in the grade of General Manager and above,
(b) All Executives directly reporting to the Chief Executive,
(c) Chief Financial Officer,
(d) Company Secretary
PURPOSE
This Code is intended for all the Board Members and Senior Management
personnel and includes areas of ethics, integrity and honesty, providing
guidance to help them recognize and deal with ethical issues; mechanisms to
report unethical / dishonest conduct; and help foster a culture of honesty,
integrity and accountability. The matters covered in this Code are of the utmost
importance to the Company, its shareholders and business partners.
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The main objective of this Code is to ensure Corporate Governance and

accountability.
The Code of Conduct as approved and adopted by the Board of Directors shall
be posted on the Website of the Company.
1. Applicability
Ethical conduct is critical to the Company’s business. This Code does not
specifically address every potential form of unacceptable conduct, and it is
expected that the Board Member and Senior Management of the Company will
exercise good judgment in compliance with the principles of Corporate
Governance. The Board Members and Senior Management of the Company
have a duty to avoid any circumstance that would violate the letter or spirit of
this Code. They may contact the Chief Executive Officer or the Company
Secretary to seek any clarification in this regard. The Board Member and Senior
Management personnel should sign the acknowledgment at the end of this
document and return the same to the Company Secretary indicating that they
have received, read and understood and agree to comply with the Code. Board
members and Senior Management should affirm compliance with the Code in
the beginning of every financial year.
2. Fair Dealing
The Board Members and Senior Management should deal fairly with customers,
suppliers, competitors and employees. They should not take unfair advantage of
anyone through manipulation, concealment, abuse of confidential, proprietary or
trade secret information, misrepresentation of material facts, or any other unfair
dealing-practices.
3. Honesty & Integrity
The Board Members and Senior Management of the Company act with
utmost probity and professional integrity, honesty and ethical conduct, while
working in the Company’s premises, at offsite locations where the Company’s
business is being conducted, at Company sponsored business and social
events, or at any other place where they are representing the Company.
4. All the Board Members and Senior Management of the Company will act in
good faith, responsibly, with due care, competence and diligence, without allowing
their independent judgment to be subordinated. Further, they will act in the best
interests of the Company and fulfill their fiduciary obligations. An honest conduct is
free from fraud or deception and in conformity with all the accepted professional
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standards of conduct. Ethical conduct includes the ethical handling of actual or

apparent conflicts of interest between personal and professional relationships.
5. Conflict of Interest
The Board Members and Senior Management shall not engage in any business,
relationship or activity, which may be in conflict of interest with the business of the
Company. A conflict situation can arise under the following circumstances:
(a) When the Board Member or Senior Management personnel takes action or has
interests that may make it difficult to perform his / her work objectively and
effectively,
(b) When the Board member has Directorship/Agency with other Life Insurance
Company,
(c) The receipt of improper personal benefits by a member of his / her family as a
result of one’s position in the Company,
(d) Any outside business activity that detracts an individual’s ability to devote
appropriate time and attention to his / her responsibilities with the Company,
(e) The receipt of non-nominal gifts or excessive entertainment from any

person/company with which the Company has current or prospective business
dealings,
(f) Any significant ownership interest in any supplier, customer, development

partner or competitor of the Company,
(g) Any consulting or employment relationship with any supplier, customer,

business associate or competitor of the Company.
The Board Members and Senior Management personnel should be scrupulous

in avoiding conflicts of interest’ with the Company. In case there is likely to be a
conflict of interest, he/ she should make full disclosure of all facts and
circumstances thereof to the Board or any Committee / Officer nominated for
this purpose by the Board and a prior written approval should be obtained.
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6. Other Organizations
• Senior Management of the Company is expected to devote their full time

and efforts during normal working hours to the service of the Company. They shall
not engage in any business or secondary employment that interferes with their
obligations and responsibilities to the Company.
• Officers in the Senior Management of the Company will not serve on the
Board of Directors of any corporation not owned or controlled by the Company,
other than a nonprofit, charitable, religious, civic or educational
• Organization, without the prior written approval of the Board of the
Company.
7. Discrimination and Harassment
The Company is committed to providing a workplace free of discrimination and

harassment based on race, colour, religion, age, gender, national origin,
disability or any other biases. It would be the endeavor of every Board Member
and Senior Management of the Company to see that work place is free from
such environment. If any employee is discriminated, he /she may lodge a
complaint of discrimination or harassment to the Whistleblower Committee of
the Company.
8. Compliance with Laws, Rules and Regulations
Board Members must comply with and oversee compliance by employees and
officers, with laws, rules and regulations applicable to the Company / its
personnel, including insider trading regulations. Board Members must deal
fairly, and must ensure fair dealing by employees and officers, with the
Company's customers, suppliers, competitors and employees. No payment or
transaction should be made or undertaken by a Director or authorized or
instructed to be made or undertaken by any other person or the Company if the
consequence of that transaction or payment would be the violation of any law in
force.
9. Board Members will always act to the best of their knowledge, belief and effort in
the best interests of the Company and all its stakeholders, including employees,
shareholders and others. All suspected violations of this Code shall be promptly
reported to the Board and such violations are subject to investigation by the
Board. Violations will be investigated by the Board or any such designated
persons / Committee and appropriate action will be taken in the event of any
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such violation. Board Members should inform the Company immediately about the
emergence of any situation which may disqualify them from directorship.
10. It shall be the endeavor of every Director to attend as far as possible and
actively participate in meetings of the Board and Committee thereof on which they
are members.
11. Confidential Information
The Board Members and Senior Management shall maintain the confidentiality of
‘Confidential Information’ of the Company or that of any customer, supplier or
business associate of the Company to which Company has a duty to maintain
confidentiality, except when disclosure is authorized or legally mandated. The
‘Confidential Information’ includes all non-public information (including private,
proprietary and others) that might be of use to competitors or harmful to the
Company or its associates. The use of ‘Confidential Information’ for his / her own
advantage or profit is also prohibited.
12. Prevention of Insider Trading
Employees and Board Members should observe all applicable laws and
regulations including the Company’s policies and codes as applicable to them
with respect to dealing in the Company’s securities. All non public information
about the Company should be considered confidential information. To use non
public information for personal financial benefit or to “tip” others who might
make an investment decision on the basis of this information is not only
unethical but also illegal. A more detailed discussion of the insider trading laws
can be found in the Company’s Code of Conduct for prevention of Insider
Trading.
13. Use of Company’s assets
In carrying out their duties and responsibilities, all employees and Board
Members should endeavor to protect the Company’s assets and proprietary
information, and ensure that the same are being used by the Company and its
employees only for legitimate business purposes of the Company. Any
suspected incident of fraud, mismanagement of Company’s assets or theft
should be immediately reported for investigation to the Board or such other
person as designated in this regard.
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14. Waiver and amendment to the Code

Any amendment to this Code must be approved by the Board and publicly
disclosed as required by any applicable law or regulation. Any waiver of this
Code for the benefit of any employees, officer or director of the Company may
be made only by the Company’s Board or any executive authorized by the
Board and shall be disclosed promptly as required by applicable laws and
regulations including the rules of any stock exchange on which the Company’s
securities are listed or traded. Any such deviation as permitted by the
authorized executive shall be reported to the Board at the next meeting.
15. General
The Code should be viewed more as a code of ethics for better and transparent
Corporate Governance and accountability to stakeholders. The Code is not
intended to be all comprehensive and compliance should be both in spirit and in
law, regulations and guidelines and should be in harmony with the corporate
mission and objectives.
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HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

CORPORATE GOVERNANCE POLICY
Introduction
The Corporate Governance Policy provides the framework under which the
Board of Directors operates. It includes its corporate structure, culture, policies
and the manner in which it deals with various stakeholders. The governance
policies address the responsibilities, authority and administration of the Board of
Directors.
The policies include:
• The responsibilities of the Principal Officer and define the reporting

relationships.
• Timely and accurate disclosure of information regarding the financial
situation, performance, board constitution, ownership of the company etc. is an
important part of corporate governance.
Corporate governance arrangements are those through which an

organization directs and controls itself and the people associated with it.
The Policy is normally reviewed annually and modified when appropriate to

ensure proper alignment with best practices in corporate governance.
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COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate Governance is a process that aims to meet shareholder aspirations

and societal expectations. It is not a discipline imposed by a Regulator, rather is
a culture that guides the Board, Management and Employees to function
towards best interest of Stakeholders.
1. At HDFC SLIC, Corporate Governance philosophy stems from the

belief that corporate governance is a key element in improving efficiency and
growth as well as enhancing investor confidence. Accordingly, the Corporate
Governance philosophy has been scripted as under: “As a good corporate citizen,
the Company is committed to sound corporate practices based on its vision, values
& principles in building confidence of its various stakeholders, thereby paving the
way for its long term success and sustenance.”
2. At the core of its corporate governance practice is the Board, which

oversees how the management serves and protects the long-term interests of all
the stakeholders of the Company. The Company believes that an active, well-
informed and independent Board is necessary to ensure the highest standards of
corporate governance.
3. The Company’s corporate governance practices are aimed at meeting

the corporate governance requirements as per the Listing Agreement with Stock
Exchanges, besides good practices either recommended by professional bodies /
task forces or practiced by leading companies in India.
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RECENT ACHIEVMENTS AND MILESTONES
Awards & Accolades 2008

Sept, 2008
Received 2008 CIO Bold 100 and CIO Security Awards
HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award
recognizes organizations that exemplify the highest level of operational and strategic
excellence in information technology. This year's award theme, ‘The Bold 100,’
recognized those executives and organizations that embraced great risk for the sake of
great reward.
HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO
Security Award aimed at CIOs, whose pioneering implementations have taken their
enterprise security to the next level. This award category identifies innovative and
groundbreaking deployment of technologies aimed at creating a secure business
infrastructure.
The company received the 2008 CIO Bold Award for its mobile workforce portal and the
CIO Security Award for its initiatives for a secure computing environment, including
identity management.
May, 2008
Received PCQuest Best IT Implementation Award 2008
HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for
Consultant Corner, the applications for its financial consultants, providing centralized
control over a vast geographical spread for key business units such as inventory,
training, licensing, etc. HDFC Standard Life has won the PCQuest Best IT
Implementation Award for two years consequently. Last year, the company received the
award for Wonders, its path-breaking implementation of an enterprise-wide workflow
system.
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March, 2008
Silver Abby at Goafest 2008
HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio
writing craft category at the Goafest 2008 organised by the Advertising Agencies
Association of India (AAAI). The radio commercial ‘Pata nahin chala’ touched several
changes in life in the blink of an eye through an old man’s perspective. The objective
was drive awareness and ask people to invest in a pension plan to live life to the fullest
even after retirement, without compromising on one’s self-respect
March, 2008
Unit Linked Savings Plan Tops Mint Best TV Ads Survey
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, ‘New
voices in a makeover’ outlines the survey in detail.
February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007
Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received
the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual
Qimpro Awards function. The award celebrates excellence in individual performance
and highlights the quality achievements of extraordinary individuals in an era of global
competition and expectations.
January, 2008
Sar Utha Ke Jiyo among India’s 60 Glorious Advertising Moments
HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising &
Marketing Moments' over the last 60 years in India,’ by 4Ps Business and Marketing
magazine. The magazine said that HDFC Standard Life is one of the first private
insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of
'death' to convey its brand proposition. This was then, followed by others including ICCI
Prudential, thus giving HDFC Standard Life the credit of bringing up one such glorious
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advertising and marketing moment in the last 60 years.

PRODUCTS OF HDFC SLIC
HDFC Unit Linked Young Star II
Invest in your child's dreams and secure yourself respect "HDFC Unit Linked Young
Star II As a parent, your priority is your child’s future and being able to meet your child’s
dreams and aspirations. With our HDFC Unit Linked Young Star II, you can start
building your savings today and ensure a bright future for your child. This plan provides
valuable protection to your child in case you are not around. This Unit Linked Plan also
gives you with an outstanding investment opportunity to maximize your savings by
providing you a choice of thoroughly researched and selected investments. Advantages
You can customize the ideal plan for your child by choosing the premium you wish to
invest along with the Sum Assured, depending on the level of protection required The
Triple Benefit payment preference helps you secure your child’s immediate and future
needs. In case of your unfortunate demise or critical illness, we will pay the Sum
Assured to your child (Beneficiary). Your family need not pay any further premium.
HDFC Unit Linked Young Star Plus II

Invest in your child's dreams and secure yourself respect HDFC Unit Linked Young Star
Plus II As a parent, your priority is your child’s future and being able to meet your child’s
dreams and aspirations. With our HDFC Unit Linked Young Star II, you can start
building your savings today and ensure a bright future for your child. This Unit Linked
Plan provides valuable protection to your child in case you are not around and gives you
with an outstanding investment opportunity to maximize your savings by providing you a
choice of thoroughly researched and selected investments. This plan also gives regular
Loyalty Units to boost your fund value each year. Advantages this plan gives you
regular Loyalty Units to boost your fund value every year. At the end of every policy
year, we will increase the number of units (Loyalty Units) in each of your funds by
0.10% as long as your policy is in force (premium paying or paid up). The compounding
effect of these regular additions is expected to boost your final maturity value You can
customize the ideal plan for your child by choosing the premium you wish to invest
along with the Sum Assured, depending on the level of protection required The Triple
Benefit payment.
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HDFC Unit Linked Young Star Champion
Invest in your child's dreams and secure yourself respect HDFC Unit Linked Young Star
Champion As a parent, your priority is your child’s future and being able to meet your
child’s dreams and aspirations. With our HDFC Unit Linked Young Champion, you can
start building your savings today and ensure a bright future for your child. It is a
convenient plan, which saves you from the need of going for Medicals. This Unit Linked
Plan provides valuable protection to your child in case you are not around and gives you
with an outstanding investment opportunity to maximize your savings by providing you a
choice of thoroughly researched and selected investments. This plan also gives Bumper
Addition to the fund value at Maturity. Advantages No need to go for medicals. Just
filling a Short Medical Questionnaire will do, this plan gives you Bumper Addition to the
fund value at Maturity. Your fund value will be augmented by addition of Bumper
Addition, which is a percentage of your original annualized premium The Triple
Insurance Benefit helps you secure your child’s immediate and future needs. In case of
your unfortunate demise the company will pay the premium.
HDFC Unit Linked Endowment Plus II
Invest in financial security and self respect for you & your family HDFC Unit Linked
Endowment plus II 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 Unit Linked Endowment plus II, you can start building your savings today and
ensure that your family remains financially independent, even when you are not
around. This Unit Linked plan provides valuable protection to your family in case you
are not around and gives you with an outstanding investment opportunity to maximize
your savings by providing you a choice of thoroughly researched and selected
investments. This plan also gives regular Loyalty Units to boost your fund value each
year. Advantages: this plan gives you regular Loyalty Units to boost your fund value
every year. At the end of every policy year, we will increase the number of units
(Loyalty Units) in each of your funds by 0.10% as long as your policy is in force
(premium paying or paid up). The compounding effect of these regular additions is
expected to boost your final maturity value this plan provides valuable protection to
your family in unfortunate conditions.
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Unit Linked Insurance Plans
Unit Linked Insurance Plans Introduction in Unit Linked Plans, the investments made
are subject to risks associated with the capital markets. This investment risk in
investment portfolio is borne by the policy holder. Thus, you should make your
investment choice after considering your risk appetite and needs. Another factor that
you need to consider is your future need for funds. HDFC Standard Life offers you a
variety of unit-linked insurance products to suit your goals – be it for your retirement
planning, for your health, for your child’s education and marriage or for investment
purposes. Which Investor Class Are They Most Suited For? Those who wish to closely
track their investments: Unit linked plans allow policy takers to closely monitor their
portfolios. They also offer the flexibility to switch your capital between funds with
varying risk-return profiles. Individuals with a medium to long term investment horizon:
Unit linked plans are ideal for individuals who are ready to stay invested for relatively
long periods of time. Those with varying risk profiles: Across the seven funds offered,
the equity component varies from zero to a maximum of 100 per cent. Thus there is a
choice of funds available to all types of investors - from risk-averse investor to those
investors who have strong risk appetite. Investors across all life stages: This plan
category offers a variety of plans which can be opted for depending upon the life stage
you are in and your needs and financial liabilities at that point in time. How Is It
Structured? In a Unit Linked Plan, the premiums you pay are invested in the funds
chosen by you after deducting allocation charges and charges including those for
managing funds, policy administration and for providing insurance cover are deducted
from the funds by cancelling certain units. The value of each unit of a fund is
determined by dividing the total value of the fund’s investments by the total number of
units. Advantages of A Unit Linked Plan? Market linked returns: Unit linked plans give
you an opportunity to earn market-linked returns as part of the premiums are invested
in market linked funds which invest in different market instruments including debt
instruments and equity in varying proportions. Life protection, Investment and Savings:
Unit linked plans offer the twin benefits of life insurance and savings at market-linked
returns. Thus, you have the opportunity to invest your money to earn higher returns,
while taking care of your protection needs. Investing in unit linked plans helps to
inculcate a regular habit of saving and investing, which is important for building wealth
over the long term. Flexibility: Unit Linked Plans offer you a wide range of flexible
options such as the option to switch between investment funds to match your changing
needs. The facility to partially withdraw from your fund, subject to charges and
conditions. Single premium additions to enable the policy holder to invest additional
sums of money (over and above the regular premium) as and when desired, subject to
conditions. Servicing a Unit Linked Plan Single Premium: The policy holder is required
Page55
to pay the entire premium amount as a lump sum at the beginning of the policy term.
HDFC Unit Linked Pension Maximiser II
Lead a life of respect and dignity even after retirement HDFC Unit Linked Pension
Maximiser II Ideally, just how spending comes to you, so must saving and investing.
You are able to finance your expenses and take care of your expenses in present
times. However, to ensure that you are able to maintain the same standard of living
post retirement, you need to make the right kind of investment today. HDFC Unit
Linked Pension Maximiser II is a unique Single Premium unit linked plan, designed to
provide a post-retirement income for life with the freedom to maximise your investment
returns. This plan also gives Bumper Addition of 10% of initial single premium at
vesting and on death. Advantages this plan is designed to provide you a post
retirement income for life – You can choose your initial single premium, the investment
strategy and retirement date. At the end of the policy term, you will receive the
accumulated value of your funds including Bumper Additions, which will be used to
provide your pension income in your golden years. This plan gives you Bumper
Addition.
HDFC Unit Linked Pension II
Lead a life of respect and dignity even after retirement HDFC Unit Linked Pension II.
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 your income be the same forever?
Will you be able to live life on your own terms even after you retire? The HDFC Unit
Linked Pension II is Unit Linked plan, designed to provide a post-retirement income for
life with the freedom to choose your retirement date. This plan gives you with an
outstanding investment opportunity to maximise your savings by providing you a
choice of thoroughly researched and selected investments. This plan also gives
Bumper Addition to the fund value at vesting features. Please roll over your mouse
over circles for explanation. Advantages: 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 receive the accumulated value
of your funds, which will be used to provide your pension income in your golden years.
This plan gives you Bumper Addition to the fund value on Vesting. Your fund value will
be augmented by addition of Bumper Addition to the extent of 50% of your original
annualised premium chosen.
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HDFC Unit Linked Endowment Winner
Invest in financial security and self respect for you & your family HDFC Unit linked
Endowment Winner 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 Unit Linked Endowment Winner, you can start building your savings today and
ensure that your family remains financially independent, even when you are not
around. It is a convenient plan, which saves you from the need of going for Medicals.
This Unit Linked Plan gives you with an outstanding investment opportunity to
maximise your savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund value at
Maturity. Advantages No need to go for medicals. Just filling a Short Medical
Questionnaire will do, this plan gives you Bumper Addition to the fund value at
Maturity. Your fund value will be augmented by addition of Bumper Addition.
HDFC Unit Linked Wealth Maximiser Plus
Secure your financial independence HDFC Unit Linked Wealth Maximiser Plus 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 Unit Linked Wealth Maximiser
Plus, a unique Single Premium investment cum protection 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 plan also gives regular Loyalty Units to boost
your fund value each year. Advantages This plan not only strives to maximise your
investment return and providing long-term real growth for your money but also gives
you an enhanced flexibility to suit your protection needs. This plan gives you regular
Loyalty Units to boost your fund value every year. Page55
HDFC Unit Linked Enhanced Life Protection II
Enhanced Life Protection II you have always given your family the very best. And there
is no reason why they should not get the best in future too. With our HDFC Unit Linked
Enhanced Life Protection II, you can start building your savings today and ensure that
your family remains financially independent, even when you are not around. This Unit
Linked Plan also gives you with an outstanding investment opportunity to maximise
your savings by providing you a choice of thoroughly researched and selected
investments. In this plan, the original Sum Assured chosen by you will be automatically
increased by 5% each year giving your family benefit of enhanced protection.
Advantages: This plan provides valuable protection to your family in case you are not
around.
HDFC Unit Linked Endowment II
Endowment II you have always given your family the very best. And there is no reason
why they should not get the best in future too. With rising costs, ensuring the best got
your family will need some financial planning. With our HDFC Unit Linked Endowment
II, you can start building your savings today and ensure that your family remains
financially independent, even when you are not around. This Unit Linked Plan also gives
you with an outstanding investment opportunity to maximise your savings by providing
you a choice of thoroughly researched and selected investments. Advantages: This plan
provides valuable protection to your family in case you are not around. In case of your
unfortunate demise during the policy term, we will pay the greater of your Sum Assured
(less any withdrawals you have made in the two years before your claim) and your total
fund value to your family.
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HDFC Simple Life
Invest in financial security and self respect for you & your families. You have always
believed in living life on your own terms. So why let the changing realities of everyday
life overwhelm you and make your aspirations take a back seat? With our HDFC
SimpliLife Plan, you can plan now to maximise your savings and secure your and your
family’s future. It is a convenient plan, which saves you from the need of going for
Medicals. This Unit Linked Plan gives you with an outstanding investment opportunity to
maximise your savings by providing you a choice of thoroughly researched and selected
investment. Advantages this plan provides valuable protection to your family in case you
are not around.
Page55
INDUSTRIES OF HDFC SLIC
INDUSTRY NAME MARKET VALUE % TO AUM

Agro Chemicals 663,172.91 1.09%
Air-Conditioning & 1,375,847.18
Refrigeration
Automobiles - Ancillaries 1,759,409.18 2.25%
Automobiles - Others 267,403.02
Automobiles-4 Wheeler 1,121,823.85 2.88
Passenger Vehicles 3,483,319.49
Capital Goods - 3,118,043.30 0.44%
Engineering 3,149,403.17
Capital Goods - Others 822,712.68
1.84%
Central Government 699,811.2
5.70%
Loans 2,806,839.66
5.11
Construction - Civil / 1,070,867.87
5.16%
Turnkey 3,913,436.22
1.35%
Construction - Others
1.15%
Consumer - Fast Moving 3912432.34
4.60%
Consumer - Food & 817630.60
1.75%
Beverages 1,046,114.98
6.41%
Diversified - Mega 1,265,536.60
1.34%
Diversified - Others 5,563,950.65
1.71%
Electronics 157,092.02
2.07%
Finance
9.11%
Finance - NBFC 2,211,563.03
0.26%
Hotels, Resorts & 35,995.36
3.62%
Restaurants 985,508.99
0.06%
Info Tech - Software 487,262.87
1.61%
Infrastructure 1,659,772.84
0.80%
Media - Entertainment 991,286.00
2.72%
Media - Others 1,561,968.68
1.62%
Metals - Others 763,794.85
2.56%
Metals - Steel 1,638,191.16
1.25%
Mutual Funds 579,933.27
2.68%
Oil & Gas - Marketing 687,404.74
0.95%
Oil & Gas - Production
1.13%
Paints and Varnishing 2,989,448.75
4.90%
Petrochemicals - Refining 848,774.40
1.39%
& Marketing 868,015.15
1.42%
Pharmaceuticals & Drugs
0.00%
Telecom - Service 416.79
Providers Tyres
Utilities - Power
SUB TOTAL 49411750.84 80.92%
Page55
OUR VISION AND VALUES
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
Limited (HDFC Ltd.), India's leading housing finance institution and Standard Life
plc, a Group Company of the Standard Life, UK. HDFC, as on December 31, 2008,
holds 72.26 per cent of the paid up equity in the joint venture.
Our 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. In short, 'The most obvious choice for
all'.
Our Values
Values that define how we work:
• Integrity
• Innovation
• Customer centric
• People Care
• Team work
• Joy and Simplicity Page55
BOARD OF DIRECTORS
Duties and Responsibilities:
The Board is responsible for
(i) overseeing compliance with all relevant policies and procedures by which the
Company operates and ensuring that the Company operates at all times in
compliance with all applicable laws and regulations adhering to the highest ethical
and moral standards.
(ii) Monitors the financial performance of the Company and must ensure that the
financial results are prepared in accordance with the generally accepted
accounting principles and regulations issued by the Insurance Regulatory and
Development Authority and are reported to shareholders and regulators on a timely
and regular basis.
(iii) Ensuring that all material developments of the Company are disclosed to the
public on a timely basis in accordance with the Standard Listing Agreement
requirement.
(iv) Guiding the management in strategic and operating plans for the Company and
review the plans periodically as may be necessary.
(v) Formulating Compensation strategy and employee benefit schemes.
(vi) Policy matters requiring approval of the Board and as required by IRDA.
(vii) Formulate investment strategies for the investment of the funds.
(viii) Formulate guidelines for various internal and external disclosures.

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AUDIT & RISK COMMITTEE OF DIRECTORS
Role
The Company shall set-up an Audit & Risk Committee in compliance with the
provisions of Companies Act, 1956 and the Standard Listing Agreement which
binds the constitution and functioning of the Committee.
The primary function of the Audit & Risk Committee shall be:
• to assist the board in matters relating to applicable legal requirements with

respect to independence, financial literacy, accounting or related financial expertise
etc.
• The management of the Company has the overall responsibility to prepare
financial statements in accordance with generally accepted accounting principles and
any applicable regulations. The Company’s Independent Auditors have the
responsibility to audit these financial statements.
• The Audit & Risk Committee’s responsibility is one of overseeing the
correct preparation and provision of financial information. However, the Audit & Risk
Committee has no obligation to provide any expert or other special assurance as to
the Company’s financial statements.
Membership
The members of the Audit & Risk Committee are appointed by the Board of
Directors. It shall have minimum of three Non-Executive Directors, two third of
them being Independent Directors
Page55
RESEARCH METHODOLOGY
Research methodology is a careful investigation for inquiring in a systematic method
and finding solution of a problem. It comprises the defining and redefining of problem
formulating hypothesis, collection and evaluating data, making detection and reaching
conclusion. This research consists of following element.
OBJECTIVE OF STUDY
SOURCES OF DATA
RESEARCH DESIGN
SAMPLING DESIGN
SAMPLE SIZE
SAMPLE DESCRIPTION
LIMITATIONS OF STUDY
OBJECTIVES OF THE STUDY

1. To understand the attitudes and perception of respondents towards insurance
products.
2. To understand the growth of insurance sector in today’s scenario.
3. To study the respondents awareness towards HDFC SLIC.
4. To know people perception towards investments available in the market and their
risk perception.
5. To analyze the investment strategies of respondents.
6. To know the present consumer trend prevailing in the market.
.
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SOURCES OF DATA
Primary Source of Data

Primary data are those collected by the investigator himself for the first time and thus
they are original in character, they are collected for a particular purpose. A well-
structured questionnaire was personally administrated to the selected sample to collect
the primary data.
Secondary Source of Data

Secondary data are those, which have already been collected by some other persons
for their purpose and published. Secondary data are usually in the shape of finished
products.
External Data, was generated from magazines, research books and internet (websites).
RESEARCH DESIGN
The study was conducted as an exploratory sampling survey method to collect primary
and secondary data.
SAMPLING DESIGN
A sample is a representative part of the population. In sampling technique, information
is collected only from a representative part of the universe and the conclusions are
drawn on that basis for the entire universe.
A random sampling technique was used to collect data from the respondents. A random
sample is a sample selected from a population in such a way that every member of the
population has a equal chance of being selected and the selection of any individual
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does not influence the selection of any other. The selection is purely depends on
chance. So while conducting the survey, 90 respondents were selected at random.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present
study, 90 respondents were selected at random. All the 90 respondents were the
customers of one or another insurance company. Out of these 90 respondents 30 were
specifically HDFC SLIC customers.
SAMPLE DESCRIPTION
The respondents of this dissertation was 90 life insurance policy holders of different
insurance companies in general, out of which 30 respondents were the policy holders of
HDFC SLIC in particular; as the dissertation was focused on the consumer behavior
towards the insurance products with special reference to HDFC SLIC. The respondents
were personally contacted for the purpose of the study. A questionnaire was used for
survey and was answered by the customers of different life insurance companies.
Most of the respondents were in age group of 45-55; which was having a frequency of
31, 23 respondents were in the age group of 35-45, 15 respondents were in the age
group of 25-35 and 21 respondents were more than 55 years.
According to gender wise, 78 were male respondents and only 12 were female
respondents.
Nearly half of the respondents were professionals and a big chunk of the rest was
business class. Retired officers and others like housewives were among the
respondents. Page55
LIMITATION OF STUDY
1. An underlying assumption for the entire project is that the details and the
feedback received from the population is true.
2. It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult. Therefore, the study had to be carried out
based on the availability of respondents.
3. Some of the respondents were not ready to fill the questionnaires and some of
them were not ready to come out openly.
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TESTING OF HYPOTHESIS
The test of hypothesis begins with an assumption about the population from
which the sample is drawn. According to Prof.Morris Ham bury, “A hypothesis is simply
a quantitative statement about a population”. Hypothesis testing deals with a procedure,
which accepts or rejects the hypothesis.
Hypotheses are of two types:
1. Null Hypothesis
2. Alternate Hypothesis
Null Hypothesis
The null hypothesis is a very useful tool in testing the significance of difference. It
states that there is no real difference in the sample value and population value in the
particular value under consideration. This means that the observed difference is due to
the random fluctuations. The null hypothesis is denoted by Ho.
Alternate Hypothesis
As against the null hypothesis the alternative hypothesis specify those values
that the researcher believes to hold true, and he hopes that the sample data lead to
acceptance of this hypothesis as true.
Types of Errors
When a statistical hypothesis is tested there are four possibilities:
1. The hypothesis is true but the test reject it (Type 1 error)
2. The hypothesis is false but the test accepts it (Type 11 error).
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Level of Significance
Confidence with which the null hypothesis is accepted or rejected depends on

what is called significant level. The probability, with which we may reject a null
hypothesis, when it is true, is called the level of significance. Therefore the level of
significance is the risk, statisticians running in his decision. The level of significance is
denoted by ‘a’. It is better to keep level of significance at a low percentage. It means
that we should not reject a true hypothesis.
Acceptance Region
This represents the region with which the calculated value of the statistics must
lie to accept the null hypothesis. If calculated value lies in this region then the null
hypothesis will be rejected.
Procedure for Testing Hypothesis

1. Set up a null hypothesis (Ho) and alternative hypothesis (H1) appropriate to the
test to be conducted.
2. Specify the suitable level of significance.
3. Decide the test criterion suitable to the test statistics
4. Calculate the value of the test statistics using the appropriate formula
5. Make decisions about accepting or rejecting the null hypothesis. If calculated
value is less than tabulated value, Ho is accepted, else, HA is accepted by
rejecting Ho.
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Tools used for testing of hypothesis
Chi- square Test:
It is a non- parametric test. It describes the magnitude of discrepancy between
observed value and expected value. Higher the value of Chi-square ψ 2, greater the
discrepancy between the observed values from sample to sample. It is a statistic whose
value is always positive and varies from zero to infinity. It is the sum of difference
between the expected value and observed value.
This distribution is a limiting approximation of multinomial distribution with γ as

the mean and 2γ (nu) as the variance of the distribution. The test depends on the set
of observed and expected values and the degree of freedom γ (nu). It is a continuous
distribution, which can be applied to discrete random variables.
Degree of Freedom (DOF)

It is the number of classes to which the values can assigned arbitrarily with out
violating the restrictions or limitations placed. It is calculated using the following
formulae.
DOF = (r- 1)* (c – 1) where r is the no: of rows
C is the no: of columns
DOF = (n-1), where n is the no: pairs of observed and expected values.
Condition for Applying Chi-square Test:

The total sample size must be reasonably large.
No theoretical cell frequency should be less than 5. In case, the cell frequency is less
than 5, then ‘ Yates’ correction factor will be applied.
The constraints on the cell frequency, if varies, should be linear.
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Uses of Chi-square Test:
 It is used as a test of independence of attributes. This test brings association, if

any, between the attributes.
 It is used as a test of goodness of fit. In other words, it tests whether the given
set of observation will fit in to the distribution (normal, binomial etc…)
It is used as a test of homogeneity. In other words, it tests whether a set of readings are
more uniform or non-uniform. So with this test we can determine whether two or more
independent random samples are drawn from the same population or not.
Limitations of the study

1. An underlying assumption for the entire project is that the details and the
feedback received from the population is true.
2. It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult. Therefore, the study had to be carried
out based on the availability of respondents.
3. Some of the respondents were not ready to fill the questionnaires and
some of them were not ready to come out openly.
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TEST OF HYPOTHESIS
Whether the consumers are satisfied with insurance products and investment plans of
HDFC SLIC.
Customer Insurance Investment

TOTAL
Satisfaction products plans
Satisfied 25 20 45
Dissatisfied 5 10 15
TOTAL 30 30 60
Hypothesis:
Ho: Consumers are satisfied.
Ha: Consumers are not satisfied.
Level of Significance: 5%
Degree of Freedom (DOF)= (R-1)(C-1) = (2-1)(2-1) = 1

tab = 7.88
Test of Statistics:
   O - E)
2
/E
Observed Expected
(O-E)^2 (O-E)^2/E
Value (O) Value (E)
25 22.5 5 0.277778
5 7.5 5 0.833333
20 22.5 5 0.277778
10 7.5 5 0.833333
TOTAL 2.222222

cal = 2.22
tab = 7.88

 cal 
  tab
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Conclusion and Interpretation:
Since, the calculated value (cal) is lesser than tabulated value (tab), null
hypothesis (Ho) is accepted, i.e. alternate hypothesis (Ha) is rejected. It means
consumers are satisfied Insurance products and Investment plans of HDFC SLIC.
Page55
TABLE NO: 1
Table showing the monthly income of the respondents
FREQUENCY PERCENTAGE
PPARTICULARS
Less than 10000 11 12%
10000-20000 22 24%
20000-30000 24 27%
30000-40000 18 20%
More than 40000 15 17%
Total 90 100%
From the above table it can be inferred that:
 12% of the 90 respondents have a monthly income of not less than 10000
 24% of the respondents have a monthly income of 10000 – 20000
 17% of the respondents have a monthly income of more than 40000
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Graph showing the monthly income of the respondents
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TABLE: 2
Table showing the monthly savings of respondents
PARTICULARS FREQUENCY PRECENTAGE

Lessthan2000 15 17%
2000-4000 22 24%
4000-6000 21 23%
6000-8000 19 21%
More than 8000 13 15%
TOTAL 90 100%
 17% of the 90 respondents have a monthly savings of less than 2000
 24% of the respondents have a monthly savings of 2000 – 4000
 15% of the respondents have a monthly savings of more than 8000
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Graph showing the monthly savings of respondents
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TABLE NO: 3
Table showing the purpose of savings of the respondents

Medical expenses 21 23%
To buy durables 06 07%
To buy jewelleries 05 06%
To buy house or site 25 27%
Education 31 34%
Others 02 03%
TOTAL 90 100%
23% of the 90 respondents make savings for the purpose of medical
expenses.
07% of the respondents make savings for the purpose to buy durables.
 06% of the respondents make savings for the purpose to buy jewelleries.
 27% of the respondents make savings for the purpose to buy house or site.
 34% of the respondents make savings for the purpose of education.
 03% of the respondents make savings for some other purpose like marriage,
entrepreneurship etc.
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Graph showing the purpose of savings of the respondents
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TABLE NO: 4
Table showing the investment preference of the respondents

Bank deposit 22 24%
Insurance 18 20%
Shares 13 14%
Debentures 09 10%
Real estate 12 13%
Gold 04 05%
Mutual funds 07 08%
Chit funds 05 06%
Others 00 00%
TOTAL 90 100%
 24% of the 90 respondents preferred to make investments in bank deposits
 20% of the respondents preferred to make investments in insurance
 14% of the respondents preferred to make investments in shares
 10% of the respondents preferred to make investments in debentures
 13% of the respondents preferred to make investments in real estate
 05% of the respondents preferred to make investments in gold
 08% of the respondents preferred to make investments in mutual funds
 06% of the respondents preferred to make investments in chit funds

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Table showing the investment preference of the respondents
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TABLE NO: 5
Table showing the policies preferred by the respondent

Pension plan 35 39%
Youngstar plusII 16 18%
Endowment 28 31%
Maximiser 11 12%
TOTAL 90 100%
 39% of the respondents prefer annuity policy.

 18% of the respondents prefer money back.
 31% of the respondents prefer endowment.
12% of the respondents prefer term polices
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TABLE NO: 6
Table showing the respondents who are actively planning their investments taking care
of tax implications

Yes 72 80%
No 18 20%
TOTAL 90 100%
 80% of the 90 respondents actively plan their investments taking care of tax
implications.
 20% of the respondents do not plan their investments taking care of tax
implications.
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R e s p o n d e n ts w h o p la n th e ir in v e s tm e n ts
ta k in g c a re o f ta x im p lic a tio n s
20%
80%
ye s no
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TABLE NO: 7
Table showing the respondent’s level of information regarding insurance products

Good 30 33%
Moderate 54 60%
Poor 06 07%
TOTAL 90 100%
 33% of the 90 respondents have a good level of knowledge and information

regarding insurance products.
 60% of the respondents have an average level of knowledge and
information regarding insurance products.
 07% have a poor knowledge and information regarding insurance products.
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Level of information on insurance products
poor
7%
good
33%
moderate
60%
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TABLE NO: 8
Table showing the company’s preferred for taking life insurance policies by the
respondents

LIC 40 45%
HDFC SLIC 30 33%
ING-VYSYA 07 08%
BIRLA SUN LIFE 10 11%
Others 03 03%
TOTAL 90 100%
 45% of the 90 respondents are the holders of life insurance policies of LIC
 33% of the respondents are the holders of life insurance policies of HDFC SLIC
 08% of the respondents are the holders of life insurance policies of ING –
VYSYA
 11% of the respondents are the holders of life insurance policies of BIRLA SUN
LIFE
 3% of the respondents hold the life insurance policies of other companies, which
include Max New York, Metlife etc.

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Graph showing the company’s preferred for taking life insurance policies by the
respondents
TABLE NO: 9
Table showing how much insurance premium is paid monthly by the respondents

Less than 1000 16 18%
1000 – 2000 22 24%
2000 – 3000 40 44%
3000 – 4000 08 09%
More than 4000 04 05%
TOTAL 90 100%
 18% of the 90 respondents used to pay a monthly premium of less than 1000
 24% of the respondents pay a monthly premium of 1000 – 2000
 05% of the respondents pay a monthly premium of more than 4000
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Graph showing how much insurance premium is paid monthly by the respondents
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TABLE NO: 10
Table showing the purpose for which the respondents have taken the policy

Tax purpose 39 43%
Future security 23 26%
Children’s education 20 22%
Marriage 00 00%
Others 08 09%
TOTAL 90 100%
 43% of the 90 respondents have taken the policy for the purpose of tax saving
 26% of the respondents have taken the policy for the purpose of future security
 22% of the respondents have taken the policy for the purpose of children’s
education
 09% of the respondents have taken the policy for some other purpose like
accidents, natural calamities etc.
 None of the respondents have opted life insurance policies for marriage purpose
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Graph showing the purpose for which the respondents have taken the policy
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TABLE NO: 11
Table showing whose life is insured as per the policy taken by the respondents

Self 41 46%
Spouse 28 31%
Children 11 12%
Parents 10 11%
TOTAL 90 100%
 46% of the 90 respondents have insured their life itself as per the policy taken
 31% of the respondents have insured their spouse life as per the policy taken
 12% of the respondents have insured their children’s life as per the policy taken
 11% of the respondents have insured their parents life as per the policy taken
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Graph showing whose life is insured as per the policy taken by the respondents Page55
TABLE NO: 12
Table showing the person who pays premium for the respondent
Self 60 66%
15 17%
Employer
Spouse 12 13%
Others 03 04%
TOTAL 90 100%
 66% of the 90 respondent’s premium is paid by themselves.

 17% of the respondent’s premium is paid by their employer.
 13% of the respondent’s premium is paid by their spouse.
 04% of the respondent’s premium is paid by persons other than the above three.
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Person who pays premium
3
12
15
60
self employer spouse others
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TABLE NO: 13
Table showing the level of information of the respondents regarding the products of
HDFC SLIC

Very Good 34 37.7%
Good 28 31.1%
From the Moderate 20 22.2%
above Poor 8 8.8%
table it can TOTAL 90 100%
be inferred
that:
 37.7% of the 90 respondents have a good level of information regarding the

products of HDFC SLIC
 31.1% of the respondents have an average level of information regarding the
 22.2% of the respondents have only a poor information regarding the products of
HDFC SLIC
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Graph showing the level of information of the respondents regarding the products
of HDFC SLIC
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TABLE NO: 14
Table showing HDFC SLIC advisors who have contacted the respondents

Yes 26 43%
No 34 57%
TOTAL 60 100%
 43% of the 60 respondents have contacted by the advisors of HDFC SLIC

 57% of the respondents have not contacted by the advisors of HDFC SLIC
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Graph showing HDFC SLIC advisors who have contacted the respondents
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TABLE NO: 15
Table showing the rating of the service offered by HDFC SLIC

Good 36 60%
Average 24 40%
Poor 00 00%
TOTAL 60 100%
 60% of the 60 respondents have an opinion that service offered by HDFC SLIC is
good.
 40% of the respondents have rated its service as average.
 None of the respondents rated the services as poor.
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Graph showing the rating of the service offered by HDFC SLIC

TABLE NO: 16(a)
Table showing whether the respondents are satisfied with the service of the company
Yes 25 83%
No 5 17%
TOTAL 30 100%
 83% of the 30 respondents are satisfied with the service of HDFC SLIC.
 17% of the respondents are not satisfied with its service
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Graph showing whether the respondents are satisfied with the service of the company
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TABLE NO: 16(b)
Table showing whether the respondents are satisfied with the advisors of HDFC SLIC
advisors

Yes 17 57%
No 13 43%
TOTAL 30 100%
 57% of the 30 respondents are satisfied with the service provided by HDFC SLIC
advisors
 43% of 30 respondents are not satisfied with advisors’ service.
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Graph showing whether the respondents are satisfied with the advisors of HDFC
SLICadvisors
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TABLE NO: 17
Table showing whether the HDFC SLIC policyholders are receiving premium notice in
advance

50 83%
Yes
No 10 17%
TOTAL 60 100%
 83% of the 60 respondents have agreed that they are receiving premium notice
in advance
 17% of the respondents have not agreed that they are receiving premium notice
in advance
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Graph showing whether the HDFC SLIC policyholders are receiving premium
notice in advance
Table no: 18
Table showing that how many respondents find that the information given in the web
site of HDFC SLIC is enough.

68 75.5%
Yes
No 22 24.5%
TOTAL 90 100%
75.5% of the respondents are satisfied with the website.

 24.5% of the respondents are not satisfied with the website.
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Graph showing that how many respondents find that the information given in the web
site of HDFC SLIC is enough.
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TABLE NO: 19
Table showing the policies preferred by the respondents owning HDFC SLIC life insurance
policy

YOUNG STAR PLUS 24 40%
WEALTH
8 13%
MAXIMISER
ENDOWMENT 18 30%
PENSION PLAN 10 17%
TOTAL 60 100%
40% of 60 respondents who are owing HDFC SLIC life insurance policy prefer
young star plus.
 17% of the 60 respondents prefer pension plan
 30% of the respondents prefer endowment policy
 13% of the respondents prefer wealth maximiser.
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TABLE NO: 20
Table showing how frequently respondents like to pay their premium

Monthly 13 43%
Quarterly 08 27%
Half – yearly 04 13%
Yearly 03 10%
One time single
02 07%
premium
TOTAL 30 100%
 43% of the 30 respondents like to pay their premium monthly
 27% of the respondents like to pay their premium quarterly
 13% of the respondents like to pay their premium half yearly
 10% of the respondents like to pay their premium yearly
 07% of the respondents like to pay their premium as one time single premium
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Table showing how frequently respondents like to pay their premium

Table: 21
Table showing respondents satisfied with insurance product and
investment plans
Insurance product Insurance plan total

yes 25 20 45
no 5 10 15
⇒ 25 of 30 responddents are satisfied with insurance plan.

⇒ 20 of 30 are satisfied with insurance product.
Page55
Table showing respondents satisfied with insurance product and
investment plans
SUMMARY OF THE REPORT
STATEMENT OF THE PROBLEM
The title of the present research is “A study on recruitment and growth in HDFC
SLIC”
HDFC SLIC, which was one of the largest developmental banks, has ventured into
many areas of finance-in fact it has become a universal banking brand. Though private
insurance companies are in the infancy stage, the impact on the insurance market is
tangible. The marketing strategies of these private operators have forced LIC to change
its gears.
Insurance products are marketed with unique STP strategies. The market is more
aware and realistic about investment and returns from insurance products. Insurance
business is more transparent as compared to the past. There are basically two
important fields of function in an insurance company.
These are:
 .recruitment of new financial consultant.
 Growth of the company in terms of more consumers and better facilities to

them.
Page55
NEED AND IMPORTANCE OF THE STUDY
Since the opening up of insurance market to private operators, India is

considered one of the hottest places with the majority of the market being untapped.
Though there are restrictions for foreign operators many companies have entered the
Indian market and are operating as joint venture partners. The change in the nature and
structure of competition has changed the nature of the insurance products offerings.
The perception of the market about the insurance, which was earlier negative, is
gradually becoming positive.
It is necessary to understand that are more people aware of the insurance products; are
they finding our financial product worth spending.
The study about growth helps the company to improve their marketing strategies by
understanding that where they are lacking. Recruitment is yet another field in which the
companies need to pay attention. Qualitative recruitment should be encouraged rather
than quantitative recruitment as it will bring in more number of consumers.
.
OBJECTIVE OF THE STUDY
1. To understand the growth of the company by studying different consumers

who are taking policies from the company.
2 . To study the respondents awareness towards HDFC SLIC.
Page55
3 To analyze the investment strategies of respondents. To understand that

which product is more in demand.
4 To offer suggestion based upon the findings.
REVIEW OF LITERATURE
PURPOSE
After the purpose and scope have been defined, the researcher is faced with one of
the most difficult problem of obtaining and gathering the desired information or data.
Utmost care must be exercised while collecting data because data constitute the
foundation on which the superstructure of statistical analysis built. The results
obtained from the analysis are properly interpreted and policy decisions are taken.
Hence, if the information is inaccurate and inadequate the whole analysis may be
faulty and decisions taken will be misleading.
The source of information may be either primary or secondary. When the
investigator collects first – hand data for the purpose at hand, such data are know as
primary data. On the other hand, if you obtain the data from the published or
unpublished sources such data will constitute secondary data.
For the present dissertation also information where collected from both primary
and secondary sources. Primary source constitute questionnaires and personal
interviews. Most of the theoretical information needed is collected from different
textbooks, magazines and web sites. Thos constitutes a significant information source
for the present study. As the present dissertation was titled as “consumer behavior
towards the insurance products”, literature reference were concentrated mostly on
marketing and insurance related journals and magazines.
Page55
Sources of information
Insurance information:
Monthly insurance magazines like Asia Insurance Post, Insurance chronicle and
other business magazines like Business World, Business India etc. have also provided
good insight and valuable information during literature search.
Insurance sector plays a very vital role in the process of economic development of any
country it act as a mobilize of savings, as a financial intermediary, as promoter of
investment activity a stabilizer of financial market and as a risk manager. Insurance
services lead to efficient and products allocation of capital resources, facilitate growth of
trade and commerce, substitute for governments social security programs and
assessed individuals and firm in efficient management of risk.
[The Chartered Accountant – Journal of the Institute of Chartered Accountants of
India – June 2003 - ‘Insurance Industry’]
The Indian life insurance industry vibrant activity, since it opened to private sector
participation in 2001. The number of private life insurers now numbers to 12. This has
led to a significant increase in life insurance in penetration, which stood at 2.7% of the
GDP during 2001 – 02. All private insurers witnessed impressive growth, with a
campaigned growth of 33%. ICICI Pru continues to lead the private insurers with a new
business market share 37%. Birla Sunlife has seen a rapid growth with close to 90% of
its premium income arising out of unit-linked plan. HDFC slic still has a long way to go.
The union budget 2003 – 04 proved to be disappointing for life insurance industry. It
restricted the tax benefit currently offered. The budget proposes to restrict the tax rebate
under Section 88 to 20% of the sum assured.
[Asia Insurance Post – May 2003 – ‘A firm leap’ – by Richard Holloway,
managing consultant & Sumit Narayanan, Consultant of Watson Wyatt]
Life insurance is no longer being bought only as a savings tool but is increasing
being sold for protection. The competition in the insurance market is not in savings
products such as endowment and money back, but in the term insurance market.
According to survey carried out by FICCI, as many 88% of the respondents said that
they insure for security while only 40% did not for saving.
Page55
% of market share in 2001-02
Company Name %
LIC 98%
ICICI PRUDENTIAL 0.8%
HDFC STANDARED LIFE 0.2%
OTHERS 1.0%
Private players:
Company Name %
ICICI prudential 40%
Max New York 14%
Birla Sunlife 12%
HDFC Standard 12%
SBI life 6%
Allianze Bajaj 4%
Others 12%
[Business India – Oct 28 – Nov 10, 2002 – ‘precious life’]
Marketing information
Businesses today face three major challenges and opportunities: globalization

and advance in technology and de-regulation. Marketing is typically seen as the task of
creating, promoting and delivering well and services to consumers and business. And
marketer is involved in marketing much type of entities: goods, service, information etc.
among these services marketing has an eminent role in this present century.
Consumers are in present days marketing. So it is important to a marketer to
analyze and perceive the consumer behavior.
In this perspective in order to get information about the above-related areas the
following books has given a valuable in-depth in-sight:
1. Marketing Management – Philip Kotler (the millennium edition)
Page55
2. Service Marketing – Valarie A. Zeithaml & Mary Jo Bitner

3. Consumer Behavior - Leon G. Shiftman & Loslie Lazar Kanok (6th
Edition)
World Wide Web
The Internet or more particularly, the World Wide Web was used to collect
competitive information on insurance industry, as it provides the greatest repository of
information in the world.
The various web site used are:
1. www.indiainfoline.com
2. www.iciciprulife.com
3. www.google.com
4. www.ambest.com
5. www.insuremagic.com
METHODOLOGY
Type of research
Page55
Every decision poses unique needs for information, and relevant strategies can
be developed based on the information gathered through research. Research is the
systematic objective and exhaustive search for and study of facts relevant to the
problem.
Research design means the framework of study that leads to the collection and analysis
of data. It is a conceptual structure with in which research is conducted. It facilitates
smooth sailing of various research operations to make the research as effective as
possible.
The study was conducted as an exploratory sampling survey method to collect primary
and secondary data.
Primary Source of Data
Primary data are those collected by the investigator himself for the first time and
thus they are original in character, they are collected for a particular purpose.
A well-structured questionnaire was personally administrated to the selected sample to
collect the primary data.
Secondary Source of Data

Secondary data are those, which have already been collected by some other persons
for their purpose and published. Secondary data are usually in the shape of finished
products.
Two types of secondary data were collected for the preparation of the project work:
Internal Data was generated from company’s brochures, manuals and annual
reports.
External Data, on the other hand, was generated from magazines, research books and
internet (websites).
Page55
Sampling Techniques
A sample is a representative part of the population. In sampling technique,

information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe.
A random sampling technique was used to collect data from the respondents. A random
sample is a sample selected from a population in such a way that every member of the
population has a equal chance of being selected and the selection of any individual
does not influence the selection of any other. The selection is purely depends on
chance. So while conducting the survey, 90 respondents were selected at random.
Sample Size
Sample size denotes the number of elements selected for the study. For the
present study, 90 respondents were selected at random. All the 90 respondents were
the customers of one or another insurance company. Out of these 90 respondents 30
were specifically HDFC SLIC customers.
Sample Description
The respondents of this dissertation was 90 life insurance policy holders of

different insurance companies in general, out of which 30 respondents were the policy
holders of HDFC SLIC in particular; as the dissertation was focused on the growth
of the company with reference to the insurance products. The respondents were
personally contacted for the purpose of the study. A questionnaire was used for survey
and was answered by the customers of different life insurance companies.
Most of the respondents were in age group of 45-55; which was having a frequency of
31, 23 respondents were in the age group of 35-45, 15 respondents were in the age
Page55
group of 25-35 and 21 respondents were more than 55 years.

According to gender wise, 78 were male respondents and only 12 were female
respondents.
Nearly half of the respondents were professionals and a big chunk of the rest was
business class. Retired officers and others like housewives were among the
respondents.
Instrumentation Techniques
To know the response, the researcher used questionnaire method. It has been
designed as a primary research instrument. Questionnaires were distributed to
respondents and they were asked to answer the questions given in the questionnaire.
The questionnaires were used as an instrumentation technique, because it is an
important method of data collection. The success of the questionnaire method in
collecting the information depends largely on proper drafting. So in the present study
questions were arranged and interconnected logically. The structured questionnaire will
reduce both interviewers and interpreters bias.
Further, coding and analysis was done for each question’s response to reach into
findings, suggestions and finally to the conclusion about the topic.
Actual Collection of Data
Personal interview method was applied to collect the actual data for the research
study. The interactions with the respondents before filling questionnaires have made
them more friendly and free to give the information.
Apart from the interview method following tools also has been used for actual data
collection:
Page55
Company Records
Company records like annual reports, brochures, manuals etc. has given
valuable information for the present study.
Internet
Company related and topic related websites also provided significant contribution
in data collection.
Magazines
Magazines devoted solely to insurance news, such as Asia Insurance News,
Insurance Chronicle-monthly insurance digest and other marketing magazines.
TESTING OF HYPOTHESIS
The test of hypothesis begins with an assumption about the population from which the
sample is drawn. According to Prof.Morris Hambury, “A hypothesis is simply a
quantitative statement about a population”. Hypothesis testing deals with a procedure,
which accepts or rejects the hypothesis.
Hypotheses are of two types:
1. Null Hypothesis
2. Alternate Hypothesis
Conclusion and Interpretation: Since, the calculated value ( cal) is lesser than
tabulated value (tab), null hypothesis (Ho) is accepted, i.e. alternate hypothesis (Ha)
is rejected. it means consumers are satisfied Insurance products and Investment plans
of HDFC SLIC.
Page55
CONCLUSION, FINDINGS AND SUGGESTIONS
FINDINGS
1. LIC is the clear market leader across all age groups and income levels. May be
HDFC SLIC can excuse itself that people in the age of more than 55 years category
could not take its policies because HDFC SLIC was not around when these people
made their life insurance choices. But what is disturbing is that the young age group
(25 – 35) also prefers the government run LIC.
2. Majority of the respondents i.e. 22 respondents have a monthly savings around 2000
– 4000, 21 respondents said that they have monthly savings around 4000 – 6000
and only a few respondents have monthly savings of less than 2000, around 6000 -
8000 and more than 8000.
3. From the study it is found that majority of the respondents i.e. 22 respondents prefer
bank deposits for investment purpose, 18 prefer insurance, 13 prefer shares and 12
prefer real estate. So there is a more scope insurance sector as people feel it is
secured and profitable mode investment and this trend can capitalized upon by
HDFC SLIC..
4. In an absurd contrast to the information and awareness of life insurance among the
younger earning generation respondents seems careless to take up insurance.
HDFC SLIC can take up the initiative to create awareness of its insurance policies
right from the college level by conducting workshops there.
5. Most of the respondents prefer annuity policies; followed by endowment policies. 16
respondents like to invest in money back policies and only 11 respondents prefer
term.
6. Potential for HDFC SLIC exists in the category of respondents’ aged 25 – 45 years
old earning less than 10000 per month. As awareness of life insurance is gaining
ground here and tomorrow respondents from here will be growing upwardly mobile
and will invest larger amounts in life insurance.
7. Life policies have not at all been bought for marriage purpose.
Page55
8. From the study, it is clear that majority of the respondents has taken the policy for
themselves and 28 respondents have taken the policy for their spouse. The study
also shows that very less number of respondents have taken the policy for their
children and parents.
9. Most of the respondents are well informed about the products of HDFC SLIC, 27
respondents have an average knowledge and 13 respondents have only a poor
knowledge about it.
10. The ICICI PRUDENTIAL network of advisors should be increased and their targeting
tactics should be strengthened as out of 90 people surveyed only 39 were contacted
by HDFC SLIC advisors previously.
11. Among 30 HDFC SLIC policyholders majority prefers annuity policies, 9 respondents
prefer to take endowment policies and a few give preference to money back and
term.
12. Majority of HDFC SLIC policyholders rates its service as good.
13. It is found that majority of the HDFC SLIC policyholders are satisfied with the service
of both the company and advisors.
14. Majority of the customers of HDFC SLIC has agreed that they are receiving premium
notice advance. 5 customers have said that they are not receiving the premium
notice frequently, which also a quite good number out of total 30 respondents. So
the company should not ignore it.
Page55
SUGGESTIONS
1. Affordable schemes must be launched for the 20 – 30 year olds drawing less
than 5000 rupees per month. This category will rise in the future and ICICI
Prudential must concentrate on catching them young so that the company can
generate more income from the longer service lives of the younger potential
policyholders. HDFC SLIC must not limit itself to serve only the affluent, as it will be
ignoring a large chunk of aspirational Indians. It would be wise for the company to
target young people in the above category and grow along with them as they and
the nation prospers.
2. Many respondents in the 20 – 40 year old category are saving to buy a house /
site. HDFC SLIC can capitalize on this yearning by offering house loans with low
interest if customers take up its insurance policies.
3. Many respondents in their answer as to why they did not take HDFC SLIC
policies said that HDFC SLIC being a private insurer its reliability and long term
existence is a big question mark. This myth must be broken through an Ad-
campaign through radio, television, print, internet that tells that HDFC SLIC was
set up as a public limited company by the government. Hence it has existed for
48 years close to half a century and has gone from strength to strength, so why
not even in the future? It can exist for an even longer time with its tremendous
reserves and valuable experience in the financial sector. Even the advisors must
sell this fact of the company to the discerning public.
Page55
4. Website Changes:
a) HDFC SLIC must advertise more about its website in the mass media
so people can gain firsthand knowledge about its products at their
convenience in a more detailed manner.
b) The website is good but instead of having a glossary as a separate
entity, link words which are difficult to understand for a first timer (even
if it is as simple as ‘premium’) must be marked up (underlined) in the
text, which upon clicking must open out to a window giving details.
c) A page must be devoted on why life insurance must be taken plus real
life stories of how people without insurance protection suffered when
tragedies struck them. In contrast happy stories of those who were
smart must be given.
d) Links to other sites extolling the virtues of life insurance must be given.
e) A page devoted to HDFC’s beginning as a developmental bank must
be included in the website to assure potential customers that this is
one company that will stick around for a long time to come.
f) Exciting contests can be launched for those who visit the website.
g) HDFC SLIC has tied up with many banks – hence it must advertise in
these websites also. It can also advertise in other financial sections of
websites like rediff.com and indiainfoline.com. Youth sites like
mtvindia.com, facebook.com, orkut.com, twitter.com etc can also be
targeted.
Page55
5. According to Abraham Maslow’s hierarchy of needs the 2nd step to self
actualization is the fulfillment of the safety needs. Though people feel the need
for security a large number live in an ivory tower oblivious to the uncertainties life
could throw up in the distant future. They procrastinate to take decisions
regarding this aspect. It is this dormant aspect that HDFC SLIC should awaken in
people and bring about restlessness and unfulfilled feeling regarding their and
their family’s security. The next choice then would be insurance. This could be
brought about by an innovative campaign slogan saying, “The decision is now”.
6. HDFC SLIC must not target people only when they start earning but much before
that. To gain the ‘early bird ‘ advantage they must organize sessions in schools
and colleges giving explanations on life insurance in general and HDFC SLIC in
particular. This will make the younger generation more responsible making them
go in for insurance in a big way at the earliest thus making HDFC SLIC the
ultimate beneficiary to enjoy the income from customers from the very beginning
of their service lives. It can also bring about a stronger brand commitment in this
manner.
7. HDFC SLIC should consciously try to change the mindset of people from
investing in life insurance for the sake of tax exemption to that of worry
exemption. India will move into that mode in the future in its journey to being a
developed country as is exemplified by the fact that in developed countries
insurance policies are bought while in developing countries it is sold.
8. Nuclear families and increased life expectancy are two factors that have left the
elderly to fend for themselves. Hence pension is a necessity now than a luxury
earlier. Only 6% of the insurable populations are covered by some pension
scheme hence HDFC SLIC should tap this existing market and bring about
awareness and innovative schemes.
Page55
9. Majority of the respondents in all age and income groups of this survey prefer to
save in banks over insurance citing the reason that banks give better returns.
HDFC SLIC should explode this myth among consumers with the following fact:
The consumers believe that investment in life insurance is not desirable as the
yield on the premia is very low. It is correct that yield on most of the insurance
products is in the range of 7 per cent to 8 per cent only. However, this traditional
concept of investment totally ignores the invisible yield on the death-risk
coverage. For example, a policyholder aged 30 years for an endowment
assurance of 25 years will pay a yearly premium of Rs 4,000 only for a sum
assured of Rs 1 lakh. In case he dies after two years, his wife will get Rs 1 lakh in
settlement of death claims against Rs 8,000 premia paid for this policy. However,
if the same consumer makes investment in the recurring deposit of a bank of Rs
4,000 per year, his wife gets only Rs 8000 plus interest after two years. Hence
the insurance claim amount is much higher than the bank deposits. This applies
to other savings as well. Hence investment in insurance has an edge over other
savings in the event of the death of the consumers.
10. Leverage information technology to service large numbers of customers efficiently

and bring down overheads. Technology can complement or supplement
distribution channels cost-effectively. It can also help improve customer service
levels considerably.
11. Use data warehousing, management and mining to gauge the profitability and
potential of various customer and product segments and ensure effective cross
selling. Understanding the customer better will allow insurance companies to
design appropriate products, determine pricing correctly and increase profitability.
Page55
12. Ensure high levels of training and development not just for staff but for agents and
distribution organizations. Existing organizations will have to train staff for better
service and flexibility, while all companies will have to train employees to cope with
new products and an intensive use of information technology. The importance of
alliances and tie-ups means that companies will have to integrate related but
separate providers into their systems to ensure seamless delivery.
13. Build strong relationships with intermediaries such as agents. The agency force is
an important customer interface and companies must partner with this group to
reach customers and serve them effectively.
14. SUGGESTIONS TO APPROACH LARGE INSURABLE POPULATION:
Given India’s large population, the number of potential buyers of insurance is

certainly attractive.
However, too broad an approach can be misleading because it ignores the

difficulties of approaching this population. New entrants in other mass industries such
as consumer products or retail banking have discovered this to their cost. Much of the
demand may not be accessible because of poor distribution, large distances or high
costs relative to returns.
The second trap is the tendency to target the business of existing companies rather
than expanding the market. New players find it easier to try to capture existing
customers by offering better service or other advantages. Yet, the benefits of this
strategy are likely to be limited as respondents as per this survey are very satisfied with
their present insurance company (read LIC).
Page55
A better approach may be to examine specific niches where demand can be met or
stimulated. In my view new entrants would be best served by a micro-level approach on
two fronts:
a) First, HDFC SLIC should target specific niches, which are currently served poorly or
not at all. For example -- The lack of a comprehensive social security system combined
with a willingness to save means that Indian demand for pension products will be large.
However, current penetration is poor. By March 1998, LIC’s pension premium was only
Rs. one billion. Making pension products into attractive saving instruments would
require only simple innovations already common in other markets. For example, their
returns might be tied to index-linked funds or a specific basket of equities. Buyers could
be allowed to switch funds before the annuities begin and to invest different amounts at
different times.
b) The second prong of a new insurer’s strategy could be to stimulate demand in areas
that are currently not served at all.
The nationalized insurer currently has a large reach and presence. New entrants
cannot and do not-expect to supplant or duplicate such a network. Building a distribution
network is expensive and time consuming. Yet, if insurers are to take advantage of
India’s large population and reach a profitable mass of customers, new distribution
avenues and alliances will be imperative.
As products become simpler and awareness increases, they become off-the-

shelf, commodity products. Sellers move to remote channels such as the telephone or
direct mail. Insurance is sold by various intermediaries, not necessarily insurance
companies. In the UK for example, retailer Marks & Spencer now sells insurance
products. At this point, buyers look for low price. Brand loyalty could shift from the
insurer to the seller.
Page55
Recognizing this trend, the financial services industry worldwide has success-
fully used remote distribution channels such as the telephone or the Internet to reach
more customers, cut out intermediaries, brings down overheads and increase
profitability. A well-known example is the UK insurer Direct Line. Established in 1985, it
relied on telephone sales and low pricing to become the UK’s largest motor insurance
operator within a decade. It then moved into household insurance. ICICI Prudential
must use the above retailing and distribution techniques to target greater numbers.
Page55
CONCLUSION:
The different information or benefits derived from the in-depth study of the above
mentioned information sources are as follows:
⇒ History of the life insurance industry; it helped to know about where from
the life insurance company started their journey and how it has grown to the
present set-up. It was surprising information about the contribution of insurance
industry to the growth of the country.
⇒ Existing regulations and legislations relating to the life insurance industry;
this gives me an insight into the rules and various restriction that IRDA has
passed and the effect of Union Budget 2003 – 04
⇒ Competition existing in the present insurance market; the private sector
also took participation in the insurance industry from 2001. It was clear from the
above-mentioned articles; still LIC is the market leader in the life insurance
industry with 98% market share.
⇒ All the marketing information sources has given a significant contribution
to the detailed theoretical perspective for the research i.e. about marketing in
general, about service marketing and about consumer behavior.
⇒ World Wide Web also worked as a highly important information source as
it provides updated information for the research relating to various areas.
Page55
ANNEXURE
LIST OF TABLES
Table Page
No: TITLE No:
1 Table showing monthly income of the respondents 102
2 Table showing monthly savings of the respondents 104
Table showing the purpose of savings of the
3 106
respondents
Table showing investment preference of the
4 108
respondents
Table showing the respondents who are actively
5 planning their investments taking care of tax 112
implications
Table showing respondents level of information
6 114
regarding insurance products
Table showing companies preferred for taking life
7 116
insurance policies
Table showing the policies preferred by the
8 110
respondents
Table showing how much insurance premium is
9 118
paid monthly by the respondents
Table showing the purpose for which the
10 120
respondents have taken the policy
Table showing the who pays premium for the
11 124
respondents
Table showing whose life is insured as per the
12 122
policy taken by the respondents
Table showing the level of information regarding
13 126
the products of HDFC SLIC
Table showing HDFC SLIC advisors who have
14 128
contacted the respondents
Table showing the policies preferred by the
15 respondents owing HDFC SLIC life insurance 110
policy
Table showing the rating of the services offered by
Page55
16 130
HDFC SLIC
17(a) Table showing whether the respondents are 132
satisfied with the service of the company
Table showing whether the respondents are
17(b) 134
satisfied with the service of the advisors
Table TITLE Page

No: No:
Table showing whether the HDFC SLIC policy
19 136
holders receiving premium notice in advance
Table showing the respondents opinion regarding
20 whether the HDFC SLIC web site is informative 138
and suggestive
Page55
LIST OF GRAPHS
Graph Page
No: TITLE No:
1 Graph showing monthly income of the respondents 103
2 Graph showing monthly savings of the respondents 105
3 Graph showing the purpose of savings 107
4 Graph showing investment preference 111
Graph showing the respondents who plan their
5 113
investments taking care of tax implications
Graph showing the level of information regarding
6 115
insurance products
Graph showing companies preferred for taking life
7 117
insurance policies
8 Graph showing the policies preference 111
Graph showing approximate monthly insurance
9 119
premium
10 Graph showing purpose of the policy taken 121
11 Graph showing the person who pays premium 125
12 Graph showing person whose life is insured 123
Graph showing the level of information about the
13 127
Graph showing HDFC SLIC advisors who have
14 129
contacted the respondents
Graph showing the policies preferred by HDFC
15 111
SLIC customers
Graph showing the rating of the services offered by
16 131
HDFC SLIC
Graph showing the level of satisfaction on service
17(a) 133
of HDFC SLIC
Graph showing the level of satisfaction on the
17(b) 135
service of Advisors
Graph showing HDFC SLIC policy holders who
19 137
receives premium notice in advance
20 Graph showing comments on HDFC SLIC web site 139
Page55
BIBLIOGRPHY
List of books
4. Marketing Management – Philip Kotler
(The millennium edition)
5. Service Marketing – Valarie A. Zeithaml & Mary
Jo Bitner
6. Consumer Behavior - Leon G. Shiftman & Loslie
Lazar Kanok (6th edition)
Websites used
6. www.indiainfoline.com
7. www.hdfcslic.com
8. www.google.com
9. www.ambest.com
10. www.insuremagic.com
List of Magazines & Journals

1. The Chartered Accountant – Journal of the
Institute of Chartered Accountants of India – June
2003
2. Asia Insurance Post – May 2003
3. Business India – Oct 28 – Nov 10, 2002
4. Insurance Chronicle – January 2002
Page55
5. Marketing Mastermind – April 2002

Page55

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PROJECT REPORT ON SUMMER TRAINING

NAME OF THE ORGANISATION: HDFC Standard Life Insurance

INSTITUTE OF MANAGEMENT STUDIES,

This is to certify that

We wish her/ him good luck

I express my sincere gratitude to Mr. Varun Gandotra Branch Manager of HDFC

I am also thankfull to god for always being there.

CHAPTER NO. PAGE.NO.

 RECENT ACHIEVEMENTS AND MILESTONES…………………………….79-80

respondents opinion in nutshell as findings i.e. stating that around percentage of

growth and progress.

INTRODUCTION TO THE SUBJECT

Insurance is a complex mechanism & it is consequently difficult to define. Insurance is

similar risk & who agree to 'insure' against that risk.

However in simple terms, it has two characteristics:

(b) Fire Insurance:

(d) Social Insurance:

A). Primary Functions

1. Certainty of Compensation of Loss:

2. Insurance provides protection:

(B). SECONDARY FUNCTIONS

1. Prevention of loss: Prevention is always better than cure. Prevention of loss is by

2. It provides capital: It provides capital to the society. For planned development of a

RECRUITMENT AS FINANCIAL CONSULTANT IN HDFC STANDARD

TIER/CLUB LICENSING NOS PAYOUT/LICENSE

RECRUITMENT NOS/ PER MONTH PAYOUT /RECRUITMENT

1. For licensing payouts, processing is done monthly based on slabs of cumulative

SPECIFICATION FOR RECRUITMENT OF FC

PAYOUT ELIGIBLE IS AS PER TABLE MENTIONED BELOW:

Recruitmen 1200 1200 1000 1200 0 1200

Bonus at 1000 800 800 0 0 0

• RC is eligible for max of 1200/- rs recruitment payout for a month in case

• Bonus payout is calculated on quarterly cycle.

SILVER 2 1300 1 1300 2600

SILVER 3 1300 1 1300 3900

GOLD 4 1750 1 1750 5650

GOLD 5 1750 1 1750 7400

GOLD 6 1750 1 1750 9150

GOLD 7 1750 1 1750 10900

GOLD 8 1750 1 1750 12650

GOLD 9 1750 1 1750 14400

GOLD 10 1750 1 1750 16150

GOLD 11 2250 1 2250 18400

TRANINIG OF A FINANCIAL CONSULTANT

• To increase the participation of FC in exhibitions and organizing events.

RATE OF COMMISION THAT EVERY FC WILL GET ON THE FOLLOWING

• Support of a dedicated Sales Development Manager

• First class pre and post sales support

• Lead Generation Support

• Recognition Programs - MDRT, Top Achievers Section

• Level 1: Star Centurion Club (upto 10% extra commission)

• Level 2: Gold Star Performers Club (5% extra commission)

• Level 3: Silver Star Performers Club (2.5% extra commission

Star Performers Club

• Periodic Branch Level Contests are started.

FIELD WORK IN HDFC SLIC

Field work is of following two types:

During my tenure in HDFC SLIC, we were only asked to do recruitments of financial

Name of the financial Educational qualification Profession

(Invest in your child’s dreams and secure your self respect)

Four easy steps to your own plan:

Stable Low capital risk Very low