1.PROJECT REPORT ON SUMMER TRAINING NAME OF THE ORGANISATION: HDFC Standard Life InsurancePLACE: DharamshalaFIELD OF STUDY: MarketingTOPIC OF RESEARCH : Recruitment, growth and potential of HDFC Standard Life Insurance. Submitted toInstitute of Engineering and Emerging Technology, Baddi.In partial fulfillment of theRequirements for the award of Degree of Masters of Business Administration.SUBMITTED BY:NameSapna Sood Course MBA YearIInd year Roll No 98/08 HPU (roll no) 981 INSTITUTE OF MANAGEMENT STUDIES, BADDI, DIST SOLAN,HIMACHAL PRADESH Page1

2. 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 Page1 3. 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. Page1 4. TABLE OF CONTENTSCHAPTER 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 SPECIFICATIONS16 PAY OUT ELIGIBILITY...17 CUMULATIVE LICENSING PAYOUT CHART................18-19 TRAINING GIVEN TO FC20 RATE OF COMMISION THAT FC WILL GET ON PLANS..............21 QUALITY TRAINING IN HDFC SLIC...22 CLUBS.22 STAR PERFORMERS CLUB22 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 Page1 HDFC SIMPLILIFE.35-38 5. UNIT LINKED ENDOWMENT II 39-43 UNITLINKED ENDOWMENT WINNER.44 HDFCS SURGICARE PLAN..44 UNIT LINKED YOUNG STAR CHAMPION.45 UNIT LINKED WEALTH MAXIMISER PLUS..45 5. INSURANCE INDUSTRYS PROFILE LIFE INSURANCE..46 HISTORY AND PRESENT STATUS OF INSURANCE MARKET46 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 LIC58 FUNDWISE PATTERN OF INVESTMENT OF LIC59 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 COMPANYS HISTORY.70 CODE OF CONDUCT AND ETHICS.71-76 CORPORATE GOVERNANCE POLICY...77-78Page1 RECENT ACHIEVEMENTS AND MILESTONES.79-80 PRODUCTS OF HDFC SLIC81-87 6. INDUSTRIES OF HDFC SLIC..88 VISION AND VALUES.89 RESPONSIBILITY OF BOARD OF DIRECTORS90 AUDITAND RISKCOMMITTEEOF DIRECTORS.91 7.RESEARCH METHODOLOGY.92-95 8. DATA PRESENTATION, ANALYSIS AND INTERPRETATION96-139 9. SUMMARY OF THE PROJECT.140-149 FINDINGS150-151 SUGGESTIONS152-158 CONCLUSION159 13. ANNEXURE AND BIBLIOGRAPHY..160-163 Page1 7. EXECUTIVE SUMMARYInsurance 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 insurancePage1 products. The primary objective of the study is to understand the growth of the 8. 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 ofPage1customers behave positively towards the HDFC SLICs products. The dissertation 9. ends up with the suggestions in order to modify the current system for a higher growth and progress. INTRODUCTION TO THE SUBJECTIntroduction to InsuranceInsurance 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 Page1 similar risk & who agree to 'insure' against that risk. 10. 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 INSURANCEInsurance 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. Page1 11. 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 persons 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. Page1 (b) Fire Insurance: 12. 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 (orhis nominee)on thehappeningof the eventinsuredagainst. 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 Page1 is to protect the dependents against the loss of earning power of the insured through 13. 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? Page1 There are uncertainties of happenings of time and amount of loss. The main function of 14. 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 toPage1 15. 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/CLUBLICENSING NOS PAYOUT/LICENSE SILVER 1-3 1300 GOLD 4-101750 GOLD PLUS11-25 2250 PLATINUM 26-40 2500 PLATINUM PLUS>=413000 RECRUITMENT NOS/ PER MONTH PAYOUT /RECRUITMENT 1-6200 >=7Page1 Bonus of rs.200/- per license if input/output ratio for the month is >= 33% will be paid quarterly. 16. 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. Page1 SPECIFICATION FOR RECRUITMENT OF FC Specifications are: (Q-score) 17. 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:Recruitmen1200120010001200 0 1200 t payout Licensing 7400525010250 6750 11250 16500 payout TierGoldGoldGold plus Gold plusGold plus Platinum attainedBonus at 1000 800 800 00 0 the end of 1st quarter Bonus at 2000 400 1000 0 1400 the end of 2nd quarterIMPORTANT 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.Page1 18. Page1 19. TIER COUNT PAYOUT INCREMENTALINCREMENTAL CUMULATIVE COUNT OF LICENSE LIC PAYOUTFOR 2009(RS) SILVER 1 1300 1 1300 1300SILVER 2 1300 1 1300 2600SILVER 3 1300 1 1300 3900GOLD 4 1750 1 1750 5650GOLD 5 1750 1 1750 7400GOLD 6 1750 1 1750 9150GOLD 7 1750 1 1750 10900GOLD 8 1750 1 1750 12650GOLD 9 1750 1 1750 14400GOLD 101750 1 1750 16150GOLD 112250 1 2250 18400 PLUS GOLD 122250 1 2250 20650 PLUS GOLD 132250 1 2250 22900 PLUS GOLD 142250 1 2250 25150 PLUS GOLD 152250 1 2250 27400 PLUS GOLD 162250 1 2250 29650 PLUS GOLD 172250 1 2250 31900 PLUS GOLD 182250 1 2250 34150 PLUS GOLD 192250 1 2250 36400 PLUS GOLD 202250 1 2250 38650 PLUS GOLD 212250 1 2250 40900 PLUS GOLD 222250 1 2250 43150 PLUS GOLD 232250 1 2250 45400 Page1 PLUS GOLD 242250 1 2250 47650 PLUS GOLD 252250 1 2250 49900 PLUS PLATIN 262500 1 2500 52400 UM 20. CUMULATIVE LICENSING PAYOUT CHART BASED ON CUMULATIVE COUNT OF LICENSES FINANCIAL CONSULTANTFinancial 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 clients 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 CONSULTANTTraining Managers are appointed in major cities for the constant upgrading in providing service to a customer. Page1 21. 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 andsmart 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: Page1 22. Rate of commision Type of Plan First year 2nd year 3rd Year+ Bonus Endowment 25%5% 5%15% Money Back25%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 supportPage1 Lead Generation Support 23. Marketing Support Recognition Programs - MDRT, Top Achievers Section Reward Programs Online SupportCLUBS: There are certain clubs which are started to increase the healthy competitionbetween 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 commissionStar Performers Club Periodic Branch Level Contests are started. National Level Contests are started to increase the competition and urge to dobetter between the different FCs. 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 Certificateof Achievement from the Head - Retail SalesFIELD WORK IN HDFC SLICField work is of following two types: Policies Recruitment Page1 24. FIELD WORK POLICIESRECRUITMENTDuring 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 thefinancial Educational qualification Profession consultant Arvind kumar GraduationShop keeper Sumit kumarGraduationShop keeper Sanjay kumar GraduationClerk Tinkle GraduationShop keeper SusheelGraduationShop keeper ChanderGraduationTeacher Narendra GraduationTeacher Page1 25. In HDFC SLIC, DHARAMSHALA, we were trained about different products. These are mentioned below: UNIT LINKED YOUNG STAR PLUS-II(Invest in your childs 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 thoroughlyresearched 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 persons 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 premiumstowards your policy. 3. For triple benefit continue to pay 50% of the original regular premiumstowards your policy and pay the balance 50% of the premium to thebeneficiary. 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 1Choose the premium you wish to invest. STEP 2Choose the amount of protection you desire. STEP 3Choose the additional plan benefit you desire. STEP 4Choose the investment fund you desire.Page55 26. FUNDS DETAILSAsset classRisk/returnMoney BankGovt.Equitymarketdeposit security Liquidlow capital risk. Very 100% ------ Very low fund-II stable return StableLow capital risk Very low managed Duration< 12 month 0-30% fund-II Duration between 180-20% to 24 month. SecureMore capital stability. 0-5% 0-20% 75-100% Low managed Higher potential fund-II return than liquid fund DefensiveAccess to long term 0-5%0-15% 50-85% 15-30% moderate managed returns fund-IIrisk down.BalancedIncreased equity 0-5%0-15% 20-70% 30-60% High managed exposure gives long fund-II term results Stability due to bond exposure EquityLong term return 0-5%0-10% 0-40%60-Very high managed Little stability100% fund-IIGrowthMaximize return 0-5% ----- ---- 95-Very highPage55 fund-II 100%investment in 100% high quality equities. 27. 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 YOURE 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 Benefitpayment Summary ofthepreference benefits Death benefitDouble 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 aboveTriple benefit Same as aboveSTEP: 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: Page55 28. BENEFITS TIME PERIOD AGE AT ENTRY MAXIMUMMINIMUM MAXIMUM MINIMUM MAXIMUMAGEAT MATURITYLIFE 10 2518 65 75 OPTIONSLIFE AND 10 25 1855 65 HEALTH OPTIONS: Page55 ACCESSING YOUR MONEY1. 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. 29. SETTLEMENT OPTIONS: You have the option to take your fund in periodicalinstallment over the period, this may extend to 5 years. 2. ON DEATH:Incase of your unfortunate demise during the policyTerm, 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: Pay the sum assured you had chosen to the beneficiary. Continue to pay 100% of the original regular premium towards your policyas and when the premium is due, on an annual basis. Continue to pay 50% of the original regular premium towards your policyon 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. Page55 30. CHARGESEXPLANATIONPOLICY Rs.60/month ADMINISTRATION CHARGESAmount depends upon your age MORTALITY AND OTHER RISK BENEFITRs.100/ switch CHARGERs.250/ request SWITCHING CHARGE Depends upon fund valuePARTIALRs. 250 WITHDRAWAL CHARGENo surrender charges will be SURRENDERlevied for any policy that pays the CHARGE original regular premium for 1st 5yrs. REVIVALRs. 250 CHARGES CHARGES on withdrawl Page55 31. UNIT LINKED ENDOWMENT PLUS-IIThe 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 thoroughlyresearched and selected investments. 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 1Choose the premium you wish to invest. STEP 2Choose the amount of protection you desire. STEP 3Choose the additional plan benefit you desire. STEP 4Choose the investment fund you desire.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 YOURE 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. Page55 Benefit type Benefitpayment Summary ofthepreference benefits Death benefitDouble benefit They will pay 100% of all future regular premium.Triple benefit 50%of the premium paid by them. 32. Critical illness benefit Double benefit Same as aboveTriple benefit Same as above STEP: 4CHOOSE YOUR INVESTMENT FUNDS In this plan the investment risk in your chosen investment portfolio is borne by you.This means that the premiums you pay are subject to investment risk associated withcapital markets. FUNDSDETAILS Asset class Risk/returnMoney BankGovt.Equity marketdeposit security Liquid low capital risk. Very 100% ------ Very low fund-IIstable return Stable Low capital risk Very low managed fund-IIDuration< 12 month 0-30%Duration between 18 to 0-20%24 month. Secure More capital stability. 0-5% 0-20% 75-100% Low managedHigher potential return fund-IIthan liquid fund Defensiv Access to long term 0-5% 0-15% 50-85% 15-30% moderate ereturns managed risk down. fund-IIPage55 33. Balanced Increased equity 0-5%0-15% 20-70% 30-60%High managedexposure gives long fund-IIterm resultsStability due to bondexposure Equity Long term return0-5% 0-10% 0-40%60-100% Very high managedLittle stability fund-IIGrowth Maximize return 0-5% ----- ---- 95-100% Very high fund-II100%investment inhigh quality equities.Page55 34. ACCESSING YOUR MONEY 1. ON MATURITY:Your policy matures at the end of the policy term you have chosen and your deathand other risk ceases. You may redeem your balance units at the then prevailingunit price and take the fund value with you.SETTLEMENT OPTIONS: You have the option to take your fund in periodicalinstallment over the period; this may extend to 5 years. 2. ON DEATH:In case of your unfortunate demise during the policyTerm, we will: Pay the sum assured you had chosen to the beneficiary. Double benefit payment: continue to pay 100% of the original regularpremiums towards your policy as and when the premiums are due on anannual basis. Triple benefit payment: continue to pay 50% of the original regularpremium towards your policy and pay the balance 50 % of the premiumto the beneficiary on annual basis. 3. ON CRITICAL ILLNESS: Pay the sum assured you had chosen to the beneficiary. Continue to pay 100% of the original regular premium towards your policy as and when the premium is due, on an annual basis. Continue to pay 50% of the original regular premium towards your policy on annual basis. 5.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. Page55 35. CHARGES on with drawl Page55 36. CHARGES EXPLANATION POLICY Rs.60/monthADMINISTRATIONCHARGES Amount depends upon your ageMORTALITY ANDOTHER RISKBENEFITRs.100/ switchCHARGE Rs.250/ requestSWITCHINGCHARGE Depends upon fund value PARTIAL Rs. 250WITHDRAWALCHARGENo surrender charges will beSURRENDER levied for any policy that pays theCHARGEoriginal regular premium for 1st 5yrs.REVIVAL Rs. 250CHARGES HDFC SIMPLILIFEThe HDFC Simplilife gives: Valuable protection to your family in case you are not around An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investment. Page55 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 37. Sum assured2 EASY STEPS TO YOUR OWN PLAN: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 premiumRs. 20000 Rs. 100000 Sum assured Rs. 100000Rs. 500000STEP 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. FUNDS DETAILS Asset classRisk/returnMoneyBankGovt. Equity market deposit security Liquidlow capital risk. Very100% ------Very low fund-II stable return StableLow capital risk Very low managed fund-II Duration< 12 month0-30% Duration between 18 to0-20% 24 month. SecureMore capital stability. 0-5% 0-20% 75-100% Low managed Higher potential return Page55 fund-II than liquid fund 38. DefensivAccess to long term 0-5%0-15% 50-85% 15-30%moderate e returns managedrisk down. fund-II BalancedIncreased equity 0-5% 0-15% 20-70% 30-60%High managed exposure gives long fund-II term results Stability due to bond exposure EquityLong term return0-5%0-10% 0-40%60-100% Very high managed Little stability fund-IIGrowthMaximize return 0-5%----- ---- 95-100% Very high fund-II 100%investment in high quality equities. FLEXIBLE OPTIONS FOR YOUR NEEDS:Flexible options benefits Changing your investment decisions SwitchingPremium redirections Premium changes You can not increase or reduceyour regular premiums at anytime. After 3 years of regular premiumPage55your policy will be converted intoa paid policy. ELIGIBILITY: 39. TERM PERIODAGE AT ENTRY MAX AGE AT MATURITY MIN-15 YRS MIN-18 YRS 60 YRS MAX-20 YRS MAX- 45 YRS ACCESSING YOUR MONEY 1. ON MATURITY:Your policy matures at the end of the policy term you have chosen and your deathand other risk ceases. You may redeem your balance units at the then prevailingunit price and take the fund value with you.SETTLEMENT OPTIONS: You have the option to take your fund in periodicalinstallment over the period; this may extend to 5 years. 2. ON DEATH:In case of your unfortunate demise during the policy Page55Term, we will: Pay the sum assured you had chosen to the beneficiary. Double benefit payment: continue to pay 100% of the original regularpremiums towards your policy as and when the premiums are due on anannual basis. 40. 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: Pay the sum assured you had chosen to the beneficiary. Continue to pay 100% of the original regular premium towards your policyas and when the premium is due, on an annual basis. Continue to pay 50% of the original regular premium towards your policyon annual basis. 6.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. UNIT LINKED ENDOWMENT IIThe 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. Page55Flexible 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 toinvest. 41. 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.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 YOURE 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 Benefitpayment Summary ofthepreference benefits Death benefitDouble benefit They will pay 100% of all future regular premiums.Triple benefit 50%of the premium paid by them. Critical illness benefit Double benefit Same as aboveTriple benefit Same as above STEP: 4CHOOSE YOUR INVESTMENT FUNDSIn this plan the investment risk in your chosen investment portfolio is borne by you. This means that the premiums you pay are subject to investment risk associated with capital markets. Page55 FUNDS DETAILS Asset class Risk/returnMoney Bank Govt.Equity marketdepositsecurity 42. Liquid low capital risk. Very 100%------Very low fund-IIstable return Stable Low capital risk Very low managed fund-IIDuration< 12 month 0-30%Duration between 18 to 0-20%24 month. Secure More capital stability. 0-5% 0-20% 75-100% Low managedHigher potential return fund-IIthan liquid fund Defensiv Access to long term 0-5% 0-15% 50-85%15-30%moderate ereturns managed risk down. fund-II Balanced Increased equity 0-5%0-15% 20-70%30-60%High managedexposure gives long fund-IIterm resultsStability due to bondexposure Equity Long term return 0-5%0-10% 0-40% 60-100% Very high managedLittle stability fund-IIGrowth Maximize return 0-5% ----- ----95-100% Very high fund-II100%investment in Page55high quality equities. 43. ACCESSING YOUR MONEY 1. ON MATURITY:Your policy matures at the end of the policy term you have chosen and your deathand other risk ceases. You may redeem your balance units at the then prevailingunit price and take the fund value with you. Page55SETTLEMENT OPTIONS: You have the option to take your fund in periodicalinstallment over the period, this may extend to 5 years. 2. ON DEATH:Incase of your unfortunate demise during the policyTerm, we will: Pay the sum assured you had chosen to the beneficiary. 44. Double benefit payment: continue to pay 100% of the original regularpremiums towards your policy as and when the premiums are due on anannual basis. Triple benefit payment: continue to pay 50% of the original regularpremium towards your policy and pay the balance 50 % of the premiumto the beneficiary on annual basis. 3. ON CRITICAL ILLNESS: Pay the sum assured you had chosen to the beneficiary. Continue to pay 100% of the original regular premium towards your policy as and when the premium is due, on an annual basis. Continue to pay 50% of the original regular premium towards your policy on annual basis. 7.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. CHARGES on with drawl Page55 45. CHARGESEXPLANATIONPOLICY Rs.60/month ADMINISTRATION CHARGESAmount depends upon your age MORTALITY AND OTHER RISK BENEFITRs.100/ switch CHARGERs.250/ request SWITCHING CHARGE Depends upon fund valuePARTIALRs. 250 WITHDRAWAL CHARGENo surrender charges will be SURRENDERlevied for any policy that pays the CHARGE original regular premium for 1st 5yrs. REVIVALRs. 250 CHARGESPage55 UNIT LINKED ENDOWMENT WINNERThe HDFC Unit Linked Endowment Winner gives: 46. 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. 3 EASY STEPS TO YOUR OWN PLAN:STEP 1 Choose the premium you wish to invest STEP 2 Choose the investment funds youdesire. STEP 3 Fill the short medical questionnaire.SURGICARE PLANThe 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 options3 EASY STEPS TO YOUR PLAN:STEP 1 Choose the level of health cover youneed STEP 2 Choose the benefit option you desire STEP 3 Work out the premium payable alongwith our financial consultant.Page55 UNIT LINKED YOUNGSTAR CHAMPION 47. 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 thoroughlyresearched and selected investments. 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.3 EASY STEPS TO YOUR OWN PLAN:STEP 1Choose the premium you wish to invest STEP 2Choose the investment funds you desire STEP 3Fill the short medical questionnaire UNIT LINKED WEALTH MAXIMISER PLUSThe HDFC Unit Linked Wealth Maximiser Plus gives: An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investments. 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 medicals3 EASY STEPS TO YOUR OWN PLAN:STEP 1Choose the premium you wish to invest STEP 2Choose the level of protection you desire. STEP 3Choose the investment fund you desire.Page55 INDUSTRY PROFILE 48. LIFE INSURANCELife 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 competitivemarket to nationalization and back to a liberalized market again. Tracing thedevelopments in the Indian insurance sector reviles the 360-degre turn witnessedover a period of almost two centuries. A brief history of the insurance sectorThe 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 49. 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 reformsIn 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 toPage55 operated in each state.iii. Regulatory body 50. The Insurance Act should be changed. An insurance regulatory body should be setup. The Insurance Regulatory and Development AuthorityReforms in the Insurance sector were initiated with the passage of the IRDA Billin Parliament in December 1999. The IRDA since its incorporation as statutorybody in April 2000 has fastidiously stuck to its schedule of framing regulationsand registering the private sector insurance companies.The other decisions taken simultaneously to provide the supporting systems tothe insurance sector and in particular the life insurance companies was thelaunch of the IRDAs online service for issue and renewal of license to agents.The approval of institutions for imparting training to agents has also ensured thatthe insurance companies would have trained work force of insurance agents inplace to sell their products, which are expected to be introduced by early nextyear.Since being set up as an independent statutory body the IRDA has put in aframework of globally compatible regulations. In the private sector 12 lifeinsurance and 6 general insurance companies have been registered. Page55 INDIAN INSURANCE MARKET 51. Insurance is an Rs 400 billion business in India, and together with banking servicesadds about 7% to Indias GDP. Gross premium collection is about 2% of GDP andhas been growing by 15 to 20% per annum. India also has the highest number of lifeinsurance policies in force in the world, and total investable funds with the LIC arealmost 8% of GDP. Yet more than three fourth of Indias insurable population has nolife insurance or pension cover. Health insurance of any kind is negligible and otherforms 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 consumers 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.Page55 52. 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 Indias share of world insurance market has shown an increase of 10% from 0.31% in 1996-97 to 0.34% in 1997-98. Indias 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 53. LIFE INSURANCE MARKET IN INDIAIndian population 1 bn GDP as on 2000 (Rs bn)20000 bnGross Domestic Saving as a % of 23%GDP NCAER estimate of insurance 240 mn Population Estimated market by 2005650 mnIndia 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 $in1994Japan 3817UK1280USA 964India 4Clearly, 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 millionRs. 5000 = Rs. 500 bn. 54. 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 Indiain now the cynosure of all the global insurance players. Numerous player, bothIndian and foreign have announced their intention to start their insurance shopsin India. IRDA, under chairman ship of Mr. RANGACHARI, opened the windowfor applying license in India.One of the main deference between the developed economies and theemerging economies is that insurance products are bought in the former whilethese are sold in later. Focus of insurance industry is changing towards providinga mix of both protection/risk cover and long-term investment opportunities.Page55 Whos going with whom? Indian company Foreign partnerKotak Mahindra Chubb 55. Tata GroupAIGSundaram FinanceWinterthurSanmar GroupGIO of AustraliaSpicMet LifeILFSCignaAlpic Finance Allianz20th CenturyCanada LifeVysya BankINGCholmandalanAxaSBI Allince CapitaHDFCStandard LifeICICI PrudentialHindustan Times Commercial UnionIDBIPrincipalMax India New YorkWhy 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 INDUSTRYIndian 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 56. continues to be low. Insurance penetration or premium volume as a share of a countrys 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 57. 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 58. 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 regulationsPage55 59. Page55 Distribution Tie Ups of Life Insurance Companies: (up to July 07) 60. Page55 61. Fund Wise Pattern of Investments of Life insurance companiesPage55 62. Page55 63. Product mix of Life insurance companies: Source=IRDAPage55 64. INTRODUCTION TO HDFC STANDARD LIFE INSURANCEOver 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 PlanChildren'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 65. 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 66. INTRODUCTION OF HDFC SLICIntroductionHDFC 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 StrengthsFinancial ExpertiseAs 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 SolutionsWe 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 stoodat Rs. 5,564.69 crores. The company has covered over 8, 33,070lives 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 67. 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 bytwo strong and secure promoters HDFC Ltd and Standard Life. HDFCLtds excellent brand strength emerges from its unrelenting focus oncorporate governance, high standards of ethics and clarity of vision.Standard Life is a strong, financially secure business and a market leader inthe UK Life & Pensions sector.1. PREFFERED AND TRUSTED BRANDOur 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 toensure that our customers money is looked after well. The investmentpolicies and actions are regularly monitored by a formal InvestmentCommittee comprising non-executive directors and the PrincipalOfficer & Executive Director. As a life insurance company, we understand that customers have investedtheir savings with us for the long term, with specific objectives in mind. Thus,our investment focus is based on the primary objective of protecting andgenerating good, consistent, and stable investment returns to match theinvestors long-term objective and return expectations, irrespective of themarket condition. Page55 68. 3. NEED BASED SELLING APPROACH Despite the criticality of life insurance, sales in the industry have beencharacterized by over reliance on tax benefits and limited advice-based selling. Our eight-step structured sales process Dishahowever, helps customers understand their latent needs at the firstinstance itself without focusing on product features or tax benefits.Need-based selling process, 'Disha', the first of its kinds in theindustry, looks at the whole financial picture. Customers see a plannot piecemeal product selling.4. RISK CONTROL FRAMEWORK HDFC Standard Life has fully implemented a risk control framework toensure that all types of risks (not just financial) are identified andmeasured. These are regularly reported to the board and this ensuresthat the company management and board members are fully aware ofany risks and the actions taken to ensure they are mitigated.5. FOCUS ON TRAINING Training is an integral part of our business strategy. Almost allemployees have undergone training to enhance their technical skillsor the softer behavioral skills to be able to deliver the servicestandards that our company has set for itself. Besides the mandatorytraining that Financial Consultants have to undergo prior to beinglicensed, we have developed and implemented various trainingmodules 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 thetopline only, but to create maximisation of stakeholder's value. Today,we are extremely satisfied with the base that we have created for thelong-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 Page55decision. 69. 8. STRICT COMPLIANCE WITH REGULATIONS We have initiated and implemented many new processes, some ofwhich were found useful by the IRDA and later made mandatory forthe entire industry. The agents who successfully completed thistraining only, were authorized by the company to sell ULIPs. This hasnow been made compulsory by IRDA for all insurance companiesunder the new Unit Linked Guidelines.DIVERSIFIED PRODUCT PORTFOLIO HDFC Standard Lifes wide and diversified product portfolio help individualsmeet their various needs, be it: Protection: Need for a sound income protection in case of yourunfortunate 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 Page55 70. PROFILE OF THE ORGANISATIONName 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 Companys year of establishment: 14th August, 2000 Companys product range/ services/business area 1. Products Protection Plans HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection PlanChildren'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 71. 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 EncashmentName 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 Page55 Date Signature Course Branch Semester Roll No 72. COMPANYS HISTORYEstablished 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 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. Page55 73. CODE OF CONDUCT AND ETHICSFOR MEMBERS OF THE BOARD OF DIRECTORSAND 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 Managementpersonnel and includes areas of ethics, integrity and honesty, providingguidance to help them recognize and deal with ethical issues; mechanisms toreport unethical / dishonest conduct; and help foster a culture of honesty,integrity and accountability. The matters covered in this Code are of the utmostimportance to the Company, its shareholders and business partners.Page55 The main objective of this Code is to ensure Corporate Governance and accountability. 74. The Code of Conduct as approved and adopted by the Board of Directors shallbe posted on the Website of the Company.1. Applicability Ethical conduct is critical to the Companys business. This Code does notspecifically address every potential form of unacceptable conduct, and it isexpected that the Board Member and Senior Management of the Company willexercise good judgment in compliance with the principles of CorporateGovernance. The Board Members and Senior Management of the Companyhave a duty to avoid any circumstance that would violate the letter or spirit ofthis Code. They may contact the Chief Executive Officer or the CompanySecretary to seek any clarification in this regard. The Board Member and SeniorManagement personnel should sign the acknowledgment at the end of thisdocument and return the same to the Company Secretary indicating that theyhave received, read and understood and agree to comply with the Code. Boardmembers and Senior Management should affirm compliance with the Code inthe 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 ofanyone through manipulation, concealment, abuse of confidential, proprietary ortrade secret information, misrepresentation of material facts, or any other unfairdealing-practices.3. Honesty & IntegrityThe Board Members and Senior Management of the Company actwith utmostprobity and professional integrity, honesty and ethical conduct, while working in the Companys premises, at offsite locations where the Companys 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 professionalPage55 standards of conduct. Ethical conduct includes the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. 75. 5. Conflict of InterestThe 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 ones position in the Company,(d) Any outside business activity that detracts an individuals 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 scrupulousin avoiding conflicts of interest with the Company. In case there is likely to be aconflict of interest, he/ she should make full disclosure of all facts andcircumstances thereof to the Board or any Committee / Officer nominated forthis purpose by the Board and a prior written approval should be obtained. Page55 76. 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 andharassment based on race, colour, religion, age, gender, national origin,disability or any other biases. It would be the endeavor of every Board Memberand Senior Management of the Company to see that work place is free fromsuch environment. If any employee is discriminated, he /she may lodge acomplaint of discrimination or harassment to the Whistleblower Committee ofthe Company.8. Compliance with Laws, Rules and Regulations Board Members must comply with and oversee compliance by employees andofficers, with laws, rules and regulations applicable to the Company / itspersonnel, including insider trading regulations. Board Members must dealfairly, and must ensure fair dealing by employees and officers, with theCompany's customers, suppliers, competitors and employees. No payment ortransaction should be made or undertaken by a Director or authorized orinstructed to be made or undertaken by any other person or the Company if theconsequence of that transaction or payment would be the violation of any law inforce.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 Page55 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. 77. 11. Confidential InformationThe 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 andregulations including the Companys policies and codes as applicable to themwith respect to dealing in the Companys securities. All non public informationabout the Company should be considered confidential information. To use nonpublic information for personal financial benefit or to tip others who mightmake an investment decision on the basis of this information is not onlyunethical but also illegal. A more detailed discussion of the insider trading lawscan be found in the Companys Code of Conduct for prevention of InsiderTrading.13. Use of Companys assets In carrying out their duties and responsibilities, all employees and BoardMembers should endeavor to protect the Companys assets and proprietaryinformation, and ensure that the same are being used by the Company and itsemployees only for legitimate business purposes of the Company. Anysuspected incident of fraud, mismanagement of Companys assets or theftshould be immediately reported for investigation to the Board or such otherperson as designated in this regard. Page55 14. Waiver and amendment to the Code 78. Any amendment to this Code must be approved by the Board and publiclydisclosed as required by any applicable law or regulation. Any waiver of thisCode for the benefit of any employees, officer or director of the Company maybe made only by the Companys Board or any executive authorized by theBoard and shall be disclosed promptly as required by applicable laws andregulations including the rules of any stock exchange on which the Companyssecurities are listed or traded. Any such deviation as permitted by theauthorized 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 transparentCorporate Governance and accountability to stakeholders. The Code is notintended to be all comprehensive and compliance should be both in spirit and inlaw, regulations and guidelines and should be in harmony with the corporatemission and objectives.Page55 HDFC STANDARD LIFE INSURANCE COMPANY LIMITED 79. CORPORATE GOVERNANCE POLICY Introduction The Corporate Governance Policy provides the framework under which theBoard of Directors operates. It includes its corporate structure, culture, policiesand the manner in which it deals with various stakeholders. The governancepolicies address the responsibilities, authority and administration of the Board ofDirectors. 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 anorganization 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.Page55 80. COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE Corporate Governance is a process that aims to meet shareholder aspirationsand societal expectations. It is not a discipline imposed by a Regulator, rather isa culture that guides the Board, Management and Employees to functiontowards 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 Companys 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. Page55 81. RECENT ACHIEVMENTS AND MILESTONESAwards & Accolades 2008 Sept, 2008 Received 2008 CIO Bold 100 and CIO Security AwardsHDFC 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 2008HDFC 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.Page55 82. March, 2008 Silver Abby at Goafest 2008HDFC 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 mans 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 ones self-respect March, 2008 Unit Linked Savings Plan Tops Mint Best TV Ads SurveyThe Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading private insurance companies in India, has topped Mints Top Television Advertisement survey conducted, for February 2008. HDFC Standard Lifes 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. Mints exclusive report, New voices in a makeover outlines the survey in detai