COMPANY PROFILE OFHDFC STANDARD LIFE INSURANCE COMPANY LTD
ABOUT HDFC STANDARD LIFE INSURANCE
HDFC Standard Life, one of Indias leading private life insurance companies, offers arange of individual and group insurance solutions. It is a joint venture between HousingDevelopment Finance Corporation Limited (HDFC), Indias leading housing financeinstitution and Standard Life plc, the leading provider of financial services in the UnitedKingdom.HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.HDFC St andar d Li f e s pr oduct por t f ol i o compr i s es s ol ut i ons , whi ch meet var i ous customer needs such as Protection, Pension, Savings, Investment and Health. Customershave the added advantage of customizing the plans, by adding optional benefits calledriders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers.HDFC Standard Life continues to have one of the widest reaches among new insurancecompanies with 568 branches servicing customer needs in over 700 cities and towns. Thecompany has a strong presence in its existing markets with a base of 2,00,000 Financial Consultants. HDFC STANDARD LIFE INSURANCE PARENTAGE HDFC Limited HDFC Limited, India' s premier housing finance institution has assisted more than 3.4million families own a home, since its inception in 1977 across 2400 cities and townsthrough its network of over 271 offices. It has international offices in Dubai, London and2
Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of December 2009, the total asset sizehas crossed more than Rs. 104,560 crores including the mortgage loan assets of morethan Rs.90,400 crores. The corporation has a deposit base of over Rs. 23,000 crores,earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housingfinance industry. Recognition for the service to the sector has come from several nationaland international entities including the World Bank that has lauded HDFC as a modelhousing finance company for the developing countries. HDFC has undertaken a lot of cons ul t anci es abr oad as s i s t i ng di f f er ent count r i es i ncl udi ng Egypt , Mal di v es , andBangladesh in the setting up of housing finance companies. Standard Life Standard Life is one of the UK's leading long term savings and investments companiesheadquartered in Edinburgh and operating internationally. Established in 1825, StandardLi f e pr ovi des l i f e as s ur ance and pens i ons , i nves t ment management and heal t hcar e insurance products to over 6 million customers worldwide. The Group has around 10,000employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kongand mai nl and Chi na. At t he end of December 2010 t he Gr oup had t ot al as s et s under administration of 170.1bn. Standard Life's diverse business includes one of the largest life and pensions businesses in the UK with more than 4 million customers; Standard LifeInvestments, which currently manages assets of over 138.7bn globally and StandardLife Healthcare, a private medical insurance company which is one of the largest in theUK. On 10 J ul y 2006, af t er 80 year s as a mut ual company, St andar d Li f e As s ur ance Company demutualised and Standard Life plc was listed on the London Stock Exchange.St andar d Li f e now has appr oxi mat el y 1. 5 mi l l i on i ndi vi dual s har ehol der s i n over 50 countries around the world.3
Vision & Values Vision ' The most successful and admired life insurance company, which means that we are themost trusted company, the easiest to deal with, offer the best value for money, and set thestandards in the industry'. 'The most obvious choice for all'.Values Values that we observe while we work:
Integrity
Innovation
Customer centric
People Care One for all and all for one
Team work
Joy and SimplicityBes i des t he above ( whi ch pr ovi des an i ns i ght i nt o t he Cor por at e St r uct ur e of t heCompany) , t he Commi t t ees appoi nt ed by t he Boar d f ocus on s peci f i c ar eas and t akei n f or med deci s i ons wi t hi n t he f r amewor k of del egat ed aut hor i t y, and make s peci f i c recommendations to the Board on matters within their areas of purview. All decisions andrecommendations of the Committees are placed before the Board for information or for approval.4
Awards & Accolades Year 2010Best Companies to Work for in India in 2010 HDFC St andar d Li f e has been adj udged one of t heBes t Compani es t o Wor k f or i n I ndi a i n 2010. The company participated in the Great Places to Works t u d y f o r t h e f i r s t t i m e a n d r a n k e d f i r s t i n t h e insurance category. It ranked 34th on the Top 50 BestCompanies to Work for, in India 2010 list. The company was also awarded for its uniqueemployee initiative - Mission in-Genius national quiz. The study has shown that HDFCStandard Life conscientiously develops employee talent programmes to keep engagingand motivating its employees. The company provides some unique platforms such as'Mission in Genius' national quiz. The management is accessible to all at all times andsincerely seeks feedback from its employees through programmes such as 'Sparsh', thestudy said.The Best Companies to Work in India is a study conducted by the Great Place to WorkInstitute, India in partnership with The Economic Times. The 2010 edition is the seventhstudy in India, which received overwhelming response from more than 400 companies,making it the largest such study in India. And only 50 companies made it to the Best Companies to Work list! 'YoungStar Super' Voted 'Product of the Year 2010' HDFC Standard Lifes YoungStar Super has been votedProduct of the Year 2010 in the ' Insurance' category bym o r e t h a n 3 0 , 0 0 0 c o n s u m e r s n a t i o n w i d e a c r o s s 3 6 markets. YoungStar Super is an unit linked Children Plan5
with unique benefits such as bumper additions, double and triple benefits, attractiveallocations rates, and seven different funds.The consumer study on product innovation in India was conducted by A C Nielsen, thel eadi ng gl obal r es ear ch f i r m. Ent r i es wer e acce pt ed f r om pr oduct s t hat demons t r at e innovation in their product function, design, packaging or process or any other specifiedform. Entries were then filtered by a jury of distinguished industry professionals to ensurethat the products meet the innovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an Internationally Recognized Standard that cel ebr at es and r ewar ds t he bes t i nnovat i ons i n cons umer pr oduct s and s er vi ces . ThePr oduct of t he Year i s s el ect ed t hr ough an i ndependent cons umer s ur vey acr os s t he country in 26 countries for the past 20 years. Year 2009Received CIO 'The Ingenius 100 2009' Award H D F C S t a n d a r d L i f e h a s r e c e i v e d t h e C I O T h e I ngeni ous 100 - 2009 Awar d, f or ATLAS ( AgencyT r a i n i n g L i c e n s i n g a n d S e r v i c i n g S y s t e m ) . Additionally, the company has received the CIO 100 S e c u r i t y Awa r d 2 0 0 9 f o r p i o n e e r i n g LANDe s k M a n a g e m e n t a n d S e c u r i t y S u i t e s e c u r i t y implementation and taking its security to a higher level of technological excellence.HDFC Standard has received the CIO 100 Award for the third consecutive year. It hadreceived the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our i ni t i at i ves f or a s ecur e comput i ng envi r onment , i ncl udi ng Ses ame - I dent i t y andAccess Management. In 2007, t he company received CIO 100 award for Wonders and aSpecial Award in Storage category.CI O magaz i ne has a l ong t r adi t i on of honor i ng l eadi ng compani es f or bus i nes s andtechnology leadership and innovations through its flagship award program CIO 100.6
Its a celebration of 100 organizations (and the people within them) that are using IT ininnovative ways to deliver business value, whether by creating competitive advantage,opt i mi zi ng bus i nes s pr oces s es , enabl i ng gr owt h or i mpr ovi ng r el at i ons hi ps wi t hcustomers. Received Diamond EDGE Award 2009 HDFC St andar d Li f e has r ecei ved t he Di amond EDGEAward 2009 for its mobile workforce portal - ConsultantC o r n e r . E D G E - E n t e r p r i s e s D r i v i n g G r o w t h a n d E x c e l l e n c e ( u s i n g I T ) i s a n i n i t i a t i v e b y t h e , Network Computing magaz i ne t o i dent i f y, r ecogni s e, and honour end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness,and deliver quantifiable ROI to stakeholders. Network Computing magazine is part of CMP Technology, which brings more than 100I T medi a br ands t o mor e t han 18 mi l l i on t echnol ogy and bus i nes s deci s i on maker s worldwide. Business Strengths & Key Differentiators HDFC St andar d Li f e bel i eves t hat es t abl i s hi ng a s t r ong and et hi cal f oundat i on i s ane s s e n t i a l p r e r e q u i s i t e f o r l o n g - t e r m s u s t a i n a b l e g r o wt h . T o e n s u r e t h i s , we h a v e concentrated our focus on expansion of branch network, organising an efficient and welltrained 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.Our core values are drilled down to all levels of employees, as these are inviolable. Wecontinue 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 7 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 policyon December 12, 2000, our differentiators are:
Strong Promoter: HDFC Standard Life is a strong, financially secure businesssupported by two strong and secure promoters HDFC Ltd and Standard Life. HDFC Lt d s excel l ent br and s t r engt h emer ges f r om i t s unr el ent i ng f ocus on corporate governance, high standards of ethics and clarity of vision. Standard Lifei s a s t r ong, f i nanci al l y s ecur e bus i nes s and a mar ket l eader i n t he UK Li f e &Pensions sector.
Preferred and trusted brand: Our brand has managed to set a new standard inthe Indian life insurance communication space. We were the first private lifeinsurer to break the ice using the idea of self-respect instead of death to conveyour brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brandsthat customers recognize, like and prefer to do business. Moreover, our brandthought, Sar Utha Ke Jiyo, is the most recalled campaign in its category.
Investment philosophy: We f ol l ow a cons er vat i ve i nves t ment management philosophy to ensure that our customers money is looked after well. Theinvestment policies and actions are regularly monitored by a formal Investment Commi t t ee compr i s i ng non - execut i ve di r ect or s and t he Pr i nci pal Of f i cer &Executive Director.As a life insurance company, we understand that customers have invest ed 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 generatinggood, consistent, and stable investment returns to match the investors long-termobjective and return expectations, irrespective of the market condition.8
Need based selling approach: Despite the criticality of life insurance, sales inthe industry have been characterized by over reliance on tax benefits and limitedadvice-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',t h e f i r s t o f i t s k i n d s i n t h e i n d u s t r y , l o o k s a t t h e wh o l e f i n a n c i a l p i c t u r e . Customers see a plan not piecemeal product selling.
Risk control framework: HDFC St andar d Li f e has f ul l y i mpl ement ed a r i s k c o n t r o l f r a me wo r k t o e n s u r e t h a t a l l t y p e s o f r i s k s ( n o t j u s t f i n a n c i a l ) a r e i dent i f i ed and meas ur ed. Thes e ar e r egul ar l y r epor t ed t o t he boar d and t hi s ensures that the company management and board members are fully aware of anyrisks and the actions taken to ensure they are mitigated.
Focus on training: Training is an integral part of our business strategy. Almostall employees have undergone training to enhance their technical skills or thes of t er behavi our al s ki l l s t o be abl e t o del i ver t he s er vi ce s t andar ds t hat our c o mp a n y h a s s e t f o r i t s e l f . Be s i d e s t h e ma n d a t o r y t r a i n i n g t h a t F i n a n c i a l Cons ul t ant s have t o under go pr i or t o bei ng l i cens ed, we have devel oped and implemented various training modules covering various aspects including productknowledge, selling skills, objection handling skills and so on.
Focus on long term value: HDFC Standard Life do not focus in the business of ramping up the topline only, but to create maximization of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the long-term success of this company.
Transparent dealing: We are one of the few companies whose product details, pricing, clauses are clearly communicated to help customers take the rightdecision.9
Strict compliance with regulations: We have initiated and implemented manynew processes, some of which were found useful by the IRDA and later mademandatory for the entire industry. The agents who successfully completed thistraining only, were authorized by the company to sell ULIPs. This has now beenmade compul s or y by I RDA f or al l i ns ur ance compani es under t he new Uni t Linked Guidelines.
Diversified product portfolio: HDFC St andar d Li f e s wi de and di ver s i f i ed product portfolio help individuals meet their various needs, be it:1 . P r o t e c t i o n : N e e d f o r a s o u n d i n c o m e p r o t e c t i o n i n c a s e o f y o u r unfortunate demise2.Investment: Need to ensure long-term real growth of your money3.Savings: Save for the milestones and protect your savings too4.Pension: Need to save for a comfortable life post retirement5. Heal t h: Cover f or heal t h r el at ed exi ge nci es Brief Profile of the Board of Directors The Board is responsible to act in the best interests of the Company and its shareholders.I n di s char gi ng t hei r dut i es t he Di r ect or s s hal l compl y wi t h t he Code of Conduct as adopted by the Board.Directors are expected to attend and actively participate in Board Meetings and Meetingsof Committees on which they serve and to spend the time needed and meet as frequentlyas necessary to properly discharge their responsibilities.The Board is responsible for overall compliance with the corporate governance policy of the Company. It oversees and directs the management of the Companys business andaffairs. In doing so, it must act honestly, in good faith and in the best interests of theCompany.10 Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman andDirector of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as awhole-time director of HDFC Limited in 1985 and was appointed as its Chairman in1993. Mr . Par ekh i s a Fel l ow of t he I ns t i t ut e of Char t er ed Account ant s ( Engl and &Wales). Mr. Keki M. Mistry joined the Board of Directors of the Company inDe c e mb e r , 2 0 0 0 . He i s c u r r e n t l y t h e Vi c e Ch a i r ma n a n d Ch i e f Execut i ve Of f i cer of HDFC Li mi t ed. He j oi ned HDFC Li mi t ed i n 1981 and became an Executive Director in 1993. He was appointed asits Managing Director in 2000. Mr. Mistry is a Fellow of the Instituteo f Ch a r t e r e d Ac c o u n t a n t s o f I n d i a a n d a me mb e r o f t h e Mi c h i g a n As s o c i a t i o n o f Certified Public Accountants. Ms. Renu S. Karnad is the Managing Director of HDFC Limited. Sheis a graduate in Law and holds a Master's degree in Economics fromDelhi University. She has been employed with HDFC Limited since1978 and was appointed as the Executive Director in 2000 and DeputyManagi ng Di r ect or i n 2007. She i s r es pons i bl e f or over s eei ng al l aspects of lending operations of HDFC Limited. Mr. David Nish joined Standard Life on 1 November 2006 as GroupFinance Director and remained in that position until December 2009. 11 He is appointed as the Executive Europe on 1st January 2010. In 2000 he was awardedthe Scottish Business Awards Finance Director of the Year and from 2004 to 2005 hes er ved on t he Gover nment Empl oyer s Pe ns i on Tas k For ce. He i s a member of t heI ns t i t ut e of Char t er ed Account ant s of Scot l and. He j oi ned t he Boar d of Di r ect or s i n February 2010. Mr. Nat han Parnaby i s a p p o i n t e d a s t h e C h i e f Executive, Europe & Asia of Standard Life in the year 2 0 1 0 . N a t h a n j o i n e d S t a n d a r d L i f e i n 1 9 8 2 a s Investment Manager, responsible for all UK net funds.He wa s a p p o i n t e d a Di r e c t o r o f t h e S t a n d a r d Li f e I n v e s t me n t s b o a r d . He i s a Ma t h e ma t i c s g r a d u a t e f r o m Ox f o r d University and the Member of the Securities Institute. He joined theBoard of Directors in December 2009. Mr. Norman K. Skeoch is currently the Chief Executive in StandardLife Investments Limited and is responsible for overseeing InvestmentProcess & Chief Executive Officer Function. Prior to this, Mr. Skeochwas working with M/s. James Capel & Co. holding the positions of UK Economi s t , Chi ef Economi s t , Execut i ve Di r ect or , Di r ect or of Controls and Strategy HSBS Securities and Managing Director International Equities. Hewas al s o r es pons i bl e f or Economi c and I nves t ment St r at egy r es ear ch pr oduced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R. Divan is a practising Chartered Accountant and is aFellow of the Institute of Chartered Accountants of India. Mr. Divanwa s t h e F o r me r Ch a i r ma n a n d Ma n a g i n g Co mmi t t e e Me mb e r o f Mi d s n e l l Gr o u p I n t e r n a t i o n a l , a n I n t e r n a t i o n a l As s o c i a t i o n o f 12 Independent Accounting Firms and has authored several papers of professional interest.Mr. Divan has wide experience in auditing accounts of large public limited companiesand nat i onal i s ed banks , f i nanci al and t axat i on pl anni ng of i ndi vi dual s and l i mi t ed companies and also has substantial experience in structuring overseas investments to andfrom India. Mr. Ranj an Pant i s a gl obal Management Cons ul t ant advi s i ng CEO/Boards on Strategy and Change Management. Mr. Pant, until 2 0 0 2 wa s a P a r t n e r & Vi c e - P r e s i d e n t a t Ba i n & Co mp a n y , I n c . , Bos t on, wher e he l ed t he wor l dwi de Ut i l i t y Pr act i ce. He was al s o Di r e c t o r , Co r p o r a t e Bu s i n e s s De v e l o p me n t a t Ge n e r a l E l e c t r i c headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE(Honours) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the coreteam to set-up the Securities & Exchange Board of India (SEBI) and isalso associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. A. K.T. Chari has joined HDFC Standard Life as a Director onMarch 10, 2010. Mr. Chari has completed his Electrical Engineeringfrom Madras University in 1962. He is associated with InfrastructureDe v e l o p me n t F i n a n c e Co mp a n y Lt d . ( I DF C) f o r l a s t 1 1 y e a r s . Currently he is handling project finance for infrastructure projects atIDFC. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999. Mr. Gerald E. Grimstone was appointed Chairman of Standard Life inMa y 2 0 0 7 , h a v i n g b e e n De p u t y Ch a i r ma n s i n c e Ma r c h 2 0 0 6 . He 13 became a director of the Standard Life Assurance Company in July 2003. He is alsoChairman of Candover Investments plc and was appointed as one of the UKs BusinessAmbassadors by the Prime Minister in January 2009. Gerry held senior positions withinthe Department of Health and Social Security and HM Treasury until 1986. He then spent13 years with Schroders in London, Hong Kong and New York, and was Vice Chairmanof Schroders worldwide investment banking activities from 1998 to 1999. He is theAlternate Director to Mr. David Nish. Mr . Mi c h a e l G Co n n a r t y i s r e s p o n s i b l e f o r S t a n d a r d Li f e ' s investments in life assurance Joint Ventures in India and China. Heholds a degree in Law and MBA. He has worke d with Standard Lifefor 33 years in managerial positions covering a number of fields suchas Pensions law, International Marketing, Operational Management,Strategy, Risk, Compliance, Company Secretarial and Banking. He has acted as Project Manager for the start-up project of the Company in 2000. He is the Alternate Director toMr. Norman K. Skeoch. Mr. Amitabh Chaudhry is the MD and CEO of HDFC Standard Life.Be f o r e j o i n i n g HDF C S t a n d a r d Li f e , h e wa s t h e MD a n d CE O o f Infosys BPO and was also heading an Independent Validation Servicesu n i t i n I n f o s y s T e c h n o l o g i e s . He s t a r t e d h i s c a r e e r wi t h Ba n k o f America delivering diverse roles ranging from Head of TechnologyInvestment Banking for Asia, Regional Finance Head for Wholesale Banking and GlobalMarkets and Chief Finance Officer of Bank of America (India). He moved to CreditLyonnais Securities in 2001 in Singapore where he headed their investment bankingfranchise for South East Asia and structured finance practice for Asia before joiningI nf os ys BPO i n 2005. Mr . Chaudhr y compl et ed hi s Engi neer i ng i n 1985 f r om Bi r l a Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad.14 Mr. Paresh Parasnis is the Executive Director and Chief OperatingOf f i c e r o f t h e c o mp a n y . A f e l l o w o f t h e I n s t i t u t e o f Ch a r t e r e d Accountants of India, he has been associated with the HDFC Groups i nce 1984. Dur i ng hi s 16- year t enur e at HDFC Li mi t ed, he was responsible for driving and spearheading several key initiatives. As one of the foundingmember s of HDFC St anda r d l i f e, Mr . Par as ni s has been r es pons i bl e f or s et t i ng up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business andclaims settlement, customer interactions etc. Associate Companies HDFC Helping Indians experience the joy of home ownership.The road to success is a tough and challenging journey in the dark where only obstacles light the path. However, success on a terrain like this is not withouta solution.As we found out nearly three decades ago, in 1977, the solution for success is customer satisfaction. All you need is the courage to innovate, the skill to understand your clienteleand the desire to give them your best.Today, nearly three million satisfied customers whose dream we helped realize, standtestimony to our success.Our objective, from the beginning, has been to enhance residential housing stock and promote home ownership. Now, our offerings range from hassle-free home loans and deposit products, to propertyrelated services and a training facility.15 We also offer specialized financial services to our customer base through partnershipswith some of the best financial institutions worldwide. HDFC Bank The Housing Development Finance Corporation Limited (HDFC)was amongst the first to receive an 'in principle' approval from theReserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI' sl i ber al i z at i on of t he I ndi an Banki ng I ndus t r y i n 1994. The bank was i ncor por at ed i n August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai,India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January1995. HDFC Mutual Fund HDFC Mutual Fund has been one of the best performing mutualfunds in the last few years. HDFC Asset Management CompanyLimited (AMC) functions as an Asset Management company for the HDFC mutual fund.AMC is a joint venture between housing finance giant HDFC and British investment firmStandard Life Investments Limited. It conducts the operations of the Mutual Fund andmanages assets of the schemes, including the schemes launched from time to time. As of Aug 2006, the fund has assets of Rs.25,892 crores under management.In 2003, following a decision by the Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, to divest its asset management business in India, AMC hade n t e r e d i n t o a n a g r e e me n t wi t h Z I C t o a c q u i r e t h e a s s e t ma n a g e me n t b u s i n e s s . Consequently, all the schemes of Zurich Mutual Fund in India had been transferred toHDFC mutual fund and renamed as HDFC schemes. HDFC Sales 16 HDFC Sales is a wholly owned subsidiary of HDFC Ltd. The company has been floateda s a d i s t r i b u t i o n a r m o f HDF C wi t h a n o b j e c t i v e o f o f f e r i n g d o o r s t e p s e r v i c e t o prospective clients of HDFC group. HDFC Sales offers financial management solutionsto individuals encompassing among other products Home Loans, Life Insurance, MutualFunds, Fixed Deposits and property Solutions. Home Loans: HDFC Sales is present in over 100 locations across the country with 55offices and over 1750 employees. Financial Management: HDFC Sales offers financial management solutions in 9 citiesand is continuously expanding its reach. HDFC Sales employs sales persons across all spectrums of financial management enabling them to meet a range of financial needs. HDFC Realty: HDFC Sal es manages t he HDFC Real t y bus i nes s and t he Webs i t e(hdfcrealty.com) which offers property solutions buying, selling, leasing to Individualsand Corporates. HDFC Realty is present in all the major cities in India as well as inDubai.The company mirrors the philosophy and values of its parent, HDFC."HDFC's finest investment is in its Human Resources. It draws its personnel from manydi s ci pl i nes . They ar e t he bui l di ng bl ocks on whi ch t he company' s per f or mance & productivity is based". H T Parekh, Founder - Chairman, HDFCHDFC Sales values integrity, commitment, teamwork and excellence in customer service.Our most valuable assets are our Human Resources. We are truly proud that today wehave a highly motivated team of sales persons and that we have the lowest employeeturnover rate in the Industry. HDFC ERGO HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC Limited , Indias premier Housing17 Finance Institution & ERGO International AG , the primary insurance entity of MunichRe Group.HDFC ERGO focuses on providing the Right Insurance Solution for all. We offer our customers complete range of general insurance products ranging from Motor, Health,Travel, Home and Personal Accident in the retail space and customized products likeProperty, Marine and Liability Insurance in the corporate space.I t i s our cons t ant endeavor t o i mpr ovi s e and cat er t o ever y need of t he moder n da ycustomer with superior customer support service. This helps us give our customers aseamless and hassle-free experience.HDFC ERGO has been expanding its presence across the country and is today present across 71 cities with 78 branch offices with an employee base of over 950 professionals.The company has a r i ght bal ance of di s t r i but i on channel compr i s i ng of Deal er s hi ps , Brokers, Retail and Corporate Agents, Bancassurance and Direct Sales Team. Other Companies
HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Property Ventures Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Investments Ltd.
HDFC Holdings Ltd.
Credit Information Bureau (India) Ltd
HDFC Securities18 HDFC Standard Life Milestones
Recei ved t he PCQues t Bes t I T I mpl ement at i on Awar d 2008 f or Cons ul t ant Corner, the applications for its financial consultants, providing centralized controlover a vast geographical spread for key business units such as inventory, training,licensing, etc.
Received the 2008 CIO Bold 100 Award for its mobile workforce portal and theSpecial 2008 CIO Security Award for a secure computing environment, includingidentity management respectively.
Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award.
HDFCSL expanded its reach in the Bancassurance channel by arrangements withco-operative banks in the rural areas.
Continued to increase its focus on quality service, by putting in place a robustmechanism to capture Voice of the Customer through service audits across itsoffices. This was complemented by use of technology that enabled capture of allinteractions with customers across all touch points
S a r Ut h a Ke J i y o was honoured as Among Indias 60 Glorious AdvertisingMoments. The advertisements of the company were ranked 6 th amongst The 10most effective Advertisements in September 2007.
Recei ved t he PCQues t Be s t I T I mpl ement at i on Awar d 2007 f or Wonder s , i t s path-breaking implementation of an enterprise-wide workflow system. In additionthe company also bagged the EMC storage award for being the most innovativeusers of storage and storage management.
Pension Plan Tops Mints Survey of Best TV Ads.
HDFC St andar d Li f e s adver t i s i ng cr eat ed hi gh awar enes s f or t he br and and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards19 or gani s ed by t he Adver t i s i ng Agenci es As s oci at i on of I ndi a ( AAAI ) . The 3awards are the highest won by any single brand in the financial services business(including banking, mutual fund, insurance and other financial services).
Ranked 29 th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity Economic Times, theleading business publication of India. Corporate Governance 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 inwh i c h i t d e a l s wi t h v a r i o u s s t a k e h o l d e r s . T h e g o v e r n a n c e p o l i c i e s a d d r e s s t h e responsibilities, authority and administration of the Board of Directors. The policies alsoinclude the responsibilities of the Principal Officer and define the reporting relationships.T i me l y a n d a c c u r a t e d i s c l o s u r e o f i n f o r ma t i o n r e g a r d i n g t h e f i n a n c i a l s i t u a t i o n , 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. Companys Philosophy Cor por at e Gover nance i s a pr oces s t hat ai ms t o meet s t akehol der s as pi r at i ons andsocietal expectations. It is not a discipline imposed by a Regulator, rather is a culture thatgui des t he Boar d, Management and Empl oyees t o f unct i on t owar ds bes t i nt er es t of Stakeholders.20 At HDFCSL, Corporate Governance philosophy stems from the belief that corporategovernance is a key element in improving efficiency and growth as well as enhancingi nves t or conf i dence. Accor di ngl y, t he Cor por at e Gover nance phi l os ophy has been scripted as under: As a good corporate citizen, the Company is committed to soundcorporate practices based on its vision, values & principles in building confidence of itsvarious stakeholders, thereby paving the way for its long term success and sustenance.At the core of its corporate governance practice is the Board, which oversees how themanagement serves and protects the long-term interests of all the stakeholders of theCompany. The Company believes that an active, well-informed and independent Board isnecessary to ensure the highest standards of corporate governance.The Company s cor por at e gover nance pr act i ces ar e ai med at meet i ng t he cor por at e governance requirements as per t he IRDA Corporate Governance Guidelines, besidesgood pr act i ces ei t her r ecommended by pr of es s i onal bodi es or pr act i s ed by l eadi ng companies in India. .The following Corporate Governance Policy has been adopted by the Board of Directorsto assist the Board in the exercise of its responsibilities. This Policy is subject to futureamendments or changes, as may be necessary, in the light of the amendments in variousregulations in force for governance requirements. Products of HDFC Standard Life Insurance 1 . Pr o t e c t i o n Pl a n s : They help you shield your family from uncertainties in life dueto financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of ones family is oneof the most important goals of life. Protection Plans go a long way in ensuringyour familys financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner inyour f ami l y. No mat t er how muc h you have s aved or i nves t ed over t he year s , 21 sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss. Types of Protection Plans
HDFC Term Assurance Plan
HDFC Premium Guarantee Plan
HDFC Loan Cover Term Assurance Plan
HDFC Home Loan Protection Plan 2 . Re t i r e me n t Pl a n s : They provide you with financial security so that when your professional income starts to ebb, you can still live with pride withoutcompromising on your living standards. By providing you a tool to accumulateand invest your savings, these plans give you a lump sum on retirement, which isthen used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. Type of Retirement Plan
HDFC Personal Pension Plan 3 . S a v i n g s & I n v e s t me n t Pl a n s : They pr ovi de you t he as s ur ance of l ump s umfunds for your and your familys future expenses. While providing an excellentsavings tool for your short term and long term financial goals, these plans alsoa s s ur e your f ami l y a cer t ai n s um by wa y of an i ns ur ance cover . Wi t h HDFCStandard Lifes range of Saving & Investment Plans, you can therefore ensuret hat your f ami l y al wa ys r emai ns f i nanci al l y i ndependent , even i f you ar e not around. Types of Savings & Investment Plans 22
HDFC Endowment Assurance Plan
HDFC SL New Money Back Plan
HDFC Money Back Plan
HDFC Assurance Plan
HDFC Savings Assurance Plan
HDFC SL ProGrowth Super II
HDFC Single Premium Whole of Life Insurance Plan
HDFC SL Crest 4 . H e a l t h P l a n s : T h e y g i v e y o u t h e f i n a n c i a l s e c u r i t y t o me e t h e a l t h r e l a t e d contingencies. Due to changing lifestyles, health issues have acquired completelyn e w d i me n s i o n o v e r t i me , b e c o mi n g mo r e c o mp l e x i n n a t u r e . I t b e c o me s imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence. Types of Health Plans
HDFC Critical Care Plan
HDFC SurgiCare Plan 5 . Ch i l d r e n s Pl a n s : They helps you save so that you can fulfill your childs dreamsand aspirations. These plans go a long way in securing your childs future byfinancing the key milestones in their lives even if you are no longer around tooversee them. As a parent, you wish to provide your child with the very best thatlife offers, the best possible education, marriage and life style. Types of Childrens Plans
HDFC Children's Plan23
HDFC SL YoungStar Super II Chapter2 Industry Profile 24 INSURANCE IN INDIA The i ns ur ance s ect or i n I ndi a has come a f ul l ci r cl e f r om bei ng an open compet i t i vem a r k e t t o n a t i o n a l i s a t i o n a n d b a c k t o a l i b e r a l i s e d m a r k e t a g a i n . T r a c i n g t h e developments in the Indian insurance sector reveals the 360 degree 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 year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of t he i mport ant Mi l es t ones i n t he Li f e I ns urance Bus i nes s i nIndia are:1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the centralgovernment and nationalised. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 crore from the Government of India.25 The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established in theyear 1850 in Calcutta by the British. 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 itsfuture direction.The Malhotra committee was set up with the objective of complementing the reformsinitiated in the financial sector.The reforms were aimed at creating a more efficient and competitive financial systemsuit able for the requirements of the economy keeping in mind the structural changescurrently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reformsI n 1994, t he commi t t ee s ubmi t t ed t he r epor t and s ome of t he ke y r ecommendat i ons included: i . S t r u c t u r e
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 companies should be given greater freedom to operate i i . C o m p e t i t i o n
Private Companies with a minimum paid up capital of Rs.1bn should be allowedto enter the industry.26
No Company should deal in both Life and General Insurance through a singleentity.
Foreign companies may be allowed to enter the industry in collaboration with thedomestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate ineach state. i i i . R e g u l a t o r y B o d y
The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry) should bemade independent. i v . I n v e s t m e n t s
Mandatory Investments of LIC Life Fund in government securities to be reducedfrom 75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v . C u s t o m e r S e r v i c e
LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology to be carried out in theInsurance industry.The committee emphasized that in order to improve the customer services and increasethe coverage of the insurance industry should be opened up to competition. But at the27 same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.Hence, it was decided to allow competition in a limited way by stipulating the minimumcapital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable themt o act as i ndependent compani es wi t h economi c mot i ves . For t hi s pur pos e, i t had proposed setting up an independent regulatory body. The Insurance Regulatory and Development Authority (IRDA) Ref or ms i n t he I ns ur ance s ect or wer e i ni t i at ed wi t h t he pas s age of t he I RDA Bi l l i nParliament in December 1999. The IRDA since its incorporation as a statutory body inApril 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies.The ot her deci s i ons t aken s i mul t aneous l y t o pr ovi de t he s uppor t i ng s ys t ems t o t he insurance sector and in particular the life insurance companies was the launch of theIRDAs online service for issue and renewal of licenses to agents.The approval of institutions for imparting training to agents has also ensured that theinsurance companies would have a trained workforce of insurance agents in place to selltheir 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.28 INSURANCE COMPANIES IN INDIA
Aegon Religare
Aviva
Bajaj Allianz
Bharti Axa Life
Birla Sun Life
Canara HSBC OBC Life
DLF Pramerica
Future Generali Life
HDFC Standard Life
ICICI Pru
IDBI Fortis Life
ING Vysya
Kotak Life Insurance
Max New York Life
Metlife India
Reliance Life Insurance
Sahara Life
SBI Life Insurance
Shriram Life
Star Union Dai-ichi Life
Tata AIG Aegon Religare Life AEGON , an international life insurance, pension and investment company, Religare , oneo f I n d i a s l e a d i n g i n t e g r a t e d f i n a n c i a l s e r v i c e s g r o u p s a n d Bennett, Col eman &company , Indias largest media house, have come together to launch AEGON ReligareLife Insurance Company Limited . This venture is dedicated to build a firm future, bothf o r c u s t o me r s a n d e mp l o y e e s a n d wi l l c o n t i n u e t o b a l a n c e a l o c a l a p p r o a c h wi t h t h e power of an expanding global operation.29 We launched our pan-India multi-channel operations in July, 2008 with over 30 branchesspread across Indi a. Our busi ness phi losophy i s t o help peopl e plan t hei r li fe bet t er. We provide high quality advice to our customers and offer superior customer service. Aviva India Avi va Indi a i s a j oi nt vent ure bet ween one of t he count rys oldest and largest groups, Dabur, and Avi va plc, t he UK' s largest i nsurance group, whose associ at i on wi t h Indi a dates back to 1834. Dabur Group Founded i n 1884, Dabur Group i s one of Indi a' s oldest and largest group o f c o mp a n i e s wi t h a c o n s o l i d a t e d a n n u a l t u r n o v e r i n e x c e s s o f Rs 2 , 3 9 6 c r o r e s . A professionally managed company, it is the country's leading producer of traditionalhealthcare products. Aviva Group Avi va Group i s t he UKs largest and one of t he bi ggest Insura nce groupsworldwide. It is one of the leading providers of life and pensions products to Europe andhas subst anti al busi nesses el sewhere around t he world. Wi t h a hist ory dat i ng back t o 1696, Aviva Group has a 50 million customer base worldwide. Bajaj Allianz Life Insurance Co Ltd Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest InsuranceCompany and Bajaj Finserv.Al l i a n z S E i s a l e a d i n g i n s u r a n c e c o n g l o me r a t e g l o b a l l y a n d o n e o f t h e l a r g e s t a s s e t managers i n t he world, managi ng asset s wort h over a Tri l li on (Over INR. 55, 00, 00030 Crores). Alli anz SE has over 115 years of fi nanci al experi ence and i s present i n over 70 countries around the world. Bharti AXA Life Insurance CO Ltd. Bharti AXA Life Insurance i s a j oi nt vent ure bet ween Bhart i , one of Indi as l eadi ng business groups with interests in telecom, agri business and retail, and AXA, world leader i n fi nancial prot ect i on and wealt h management . The j oi nt vent ure company has a 74%stake from Bharti and 26% stake of AXA.The company launched national operations in December 2006. Today, we have over 8000employees across over 12 st at es i n t he count ry and a nat ional foot pri nt of di st ri but orst rai ned t o provi de quali t y fi nanci al advi ce and i nsurance solut i ons t o t he large Indi ancustomer base.A s w e f u r t h e r e x p a n d o u r p r e s e n c e a c r o s s t h e c o u n t r y w i t h a l a r g e n e t w o r k o f di st ri but ors, we cont i nue t o provi de i nnovat i ve product and servi ce offeri ngs t o cat er t ospeci fi c i nsurance and wealt h management needs of cust omers. What ever your plans i n life, you can be confident that Bharti AXA Life will offer the right financial solutions tohelp you achieve them. Birla Sun Life Insurance Company Limited Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indianc o n g l o me r a t e s a n d S u n Li f e F i n a n c i a l I n c , l e a d i n g i n t e r n a t i o n a l f i n a n c i a l s e r v i c e s organi zat i on from Canada. The local knowl edge of t he Adi t ya Bi rla Group combi ned with the domain expertise of Sun Life Financial Inc., offers a formidable protection for itscustomers future.31 With an experience of over 9 years, BSLI has contributed significantly to the growth anddevelopment of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country.Known for its innovation and creating industry benchmarks, BSLI has several firsts to itscredit. It was the first Indian Insurance Company to introduce Free Look Period and thesame was made mandatory by IRDA for all other life insurance companies. Additionally,BS LI p i o n e e r e d t h e l a u n c h o f Un i t Li n k e d Li f e I n s u r a n c e p l a n s a mo n g s t t h e p r i v a t e players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. Thesec a t e g o r y d e v e l o p me n t i n i t i a t i v e s h a v e h e l p e d BS LI b e c l o s e r t o i t s p o l i c y h o l d e r s e x p e c t a t i o n s , wh i c h g e t s f u r t h e r a c c e n t u a t e d b y t h e c o mp l e t e b o u q u e t o f i n s u r a n c e products (viz. pure term plan, life stage products, health plan and retirement plan) that thecompany offers.Ad d t o t h i s , t h e e x t e n s i v e r e a c h t h r o u g h i t s n e t wo r k o f 6 0 0 b r a n c h e s a n d 1 , 7 5 , 0 0 0 empanell ed advi sors. Thi s i mpressi ve combi nat i on of domai n expert i se, product range, r e a c h a n d e a r s o n g r o u n d , h e l p e d B S L I c o v e r m o r e t h a n 2 m i l l i o n l i v e s s i n c e i t c o mme n c e d o p e r a t i o n s a n d e s t a b l i s h a c u s t o me r b a s e s p r e a d a c r o s s mo r e t h a n 1 5 0 0 t owns and ci t i es i n Indi a. To ensure t hat our cust omers have an i mpeccabl e experi ence, BSLI has ensured t hat i t has lowest out st andi ng clai ms rat i o of 0. 00% for FY 2008 -09. Addi t i onall y, BSLI has t he best Turn around Ti me accordi ng t o LOMA on al l clai ms Parameters. Such services are well supported by sound financials that the Company has.The AUM of BSLI st ood at Rs. 8165 crs as on February 28, 2009, whi le as on March31, 2009, the company has a robust capital base of Rs. 2000 crs. Canara HSBC OBC Life The shareholdi ng pat t ern of t he Joi nt Vent ure i s as foll ows - Canara Bank holds 51%e q u i t y , H S B C I n s u r a n c e ( A s i a P a c i f i c ) H o l d i n g s L t d 2 6 % a n d O r i e n t a l B a n k o f 32 Commerce 23%. The Venture has an initial paid up capital of INR 325 crores which willfurther increase in line with our expansion plans.The Company commenced business 16th of June, 2008 after receiving requisite approvalsfrom the Insurance Regulatory Development Authority (IRDA). Canara HSBC Life hasaccess to 4100 bank branches all over India. DLF Pramerica Life DLF Prameri ca Li fe Insurance Company Lt d. (DPLI) i s a j oi nt vent ure bet ween DLFLi mi t ed and Prud ent i al Int ernat i onal Insurance Holdi ngs, Lt d. (referred t o hereaft er as " P I I H" ) . P I I H i s a f u l l y o wn e d s u b s i d i a r y o f P r u d e n t i a l F i n a n c i a l , I n c . ( r e f e r r e d t o hereafter as "PFI").The combination of the strength of the DLF brand and PFI's insurance expertise providethe strongest possible foundations for DPLI to succeed in the rapidly growing Indian lifeinsurance market. DLF DLF Limited is one of the leading real estate companies in the world. It has a track record of over si x decades of sust ai ned growt h, cust omer sat i sfact i on, and i nnovat i on. DLF's primary business is development of residential, commercial and retail properties.DLF has a unique business model wi t h earni ngs ari si ng from devel opment and rent als. DLF has entered into several strategic alliances with global industry leaders. Also, it hasrecent l y forayed i nt o t he i nfrast ruct ure, SEZ, fi nanci al servi ces and hot el busi nesses (www.dlf.in) . PFI Prameri ca i s a t radename used by Prudent i al Fi nanci al, Inc. ("PFI"), a companyincorporated and with its principal place of business in the United States, and its affiliated33 companies in select countries outside the United States. PFI is a financial services leader with operations in the United States, Asia, Europe, and Latin America.Leveraging its heritage of life insurance and asset management expertise, PFI is focusedon helpi ng i ndi vi dual and i nst i tut i onal cust omers grow and prot ect t hei r wealt h. In t he U . S . , t h e c o m p a n y ' s R o c k s y m b o l i s a n i c o n o f s t r e n g t h , s t a b i l i t y , e x p e r t i s e a n d innovation that has stood the test of time.P F I ' s b u s i n e s s e s o f f e r a v a r i e t y o f p r o d u c t s a n d s e r v i c e s , i n c l u d i n g l i f e i n s u r a n c e , annui t i es, ret i rement -relat ed servi ces, mut ual funds, i nvest ment management , and real est at e servi ces. Prudent i al Fi nanci al, Inc. of t he Uni t ed St at es i s not affi li at ed i n anymanner with Prudential plc, a company incorporated in the United Kingdom. Future Generali Life Future Generalii s a j oi nt vent ure bet ween t he Indi a -based Fut ure Group and t he It al y- based Generali Group.Fut ure Generali i s present i n Indi a i n bot h t he Li fe and Non-Li fe busi nesses as Fut ureGenerali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. FUTURE GROUP Fut ure Group, l ed by i t s founder and Group CEO, Mr. Ki shore Bi yani , i s one of Indi as leading business houses with multiple businesses spanning across the consumption space.Whi le ret ai l forms t he core busi ness act i vi t y of Fut ure Group, group subsi di ari es are present in consumer finance, capital, insurance, leisure and entertainment, branddevelopment, retail real estate development, retail media and logistics.Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million squaref e e t o f r e t a i l s p a c e i n 7 1 c i t i e s a n d t o w n s a n d 6 5 r u r a l l o c a t i o n s a c r o s s I n d i a . Headquart ered i n Mumbai (Bombay), Pant aloon Ret ai l empl oys around 30, 000 peopl e 34 and i s li st ed on t he Indi an st ock exchanges. The company fol l ows a mult i -format ret ai lst rat egy t hat capt ures almost t he ent i re consumpt i on basket of Indi an cust omers. In t heli fest yl e segment , t he group operat es Pant aloons, a fashi on ret ai l chai n and Cent ral, ac h a i n o f s e a ml e s s ma l l s . I n t h e v a l u e s e g me n t , i t s ma r q u e e b r a n d , Bi g Ba z a a r i s a hypermarket format t hat combi nes t he l ook, t ouch and feel of Indi an bazaars wi t h t he choice and convenience of modern retail.The groups specialty retail formats include sportswear retailer, Planet Sports, electronicsret ai l er, eZone, home i mprovement chai n, Home Town and rural ret ai l chai n, Aadhaar, among others. It also operates popular shopping portal,www.futurebazaar.com.Fut ure Capi t al Holdi ngs, t he groups fi nanci al arm, provi des i nvest ment advi sory t oasset s wort h over $1 bi lli on t hat are bei ng i nvest ed i n consumer brands and compani es, real estate, hotels and logistics. It also operates a consumer finance arm with branches in150 locations.Ot h e r g r o u p c o mp a n i e s i n c l u d e , Fu t u r e Ge n e r a l i , t h e g r o u p s i n s u r a n c e v e n t u r e i n partnership with Italys Generali Group, Future Brands, a brand development and IPR c o mp a n y , F u t u r e Lo g i s t i c s , p r o v i d i n g l o g i s t i c s a n d d i s t r i b u t i o n s o l u t i o n s t o g r o u p companies and business partners and Future Media, a retail media initiative.The groups presence in Leisure & Entertainment segment is led through, Mumbai-basedlisted company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company,Blue Foods t he group operat es around 100 rest aurant s and food court s t hrough brandsli ke Bombay Blues, Spaghet t i Ki t chen, Noodle Bar, The Spoon, Copper Chi mney and Gelato.Fut ure Groups j oi nt vent ure part ners i nclude, US-based st at i onery product s ret ai l ers, S t a p l e s a n d Mi d d l e Ea s t - b a s e d Ax i o m Co mmu n i c a t i o n s . F u t u r e Gr o u p b e l i e v e s i n developing strong insights on Indian consumers and building businesses based on Indian35 ideas, as espoused in the groups core value of Indianness. The groups corporate credois, Rewrite rules, Retain values. THE GENERALI GROUP The Generali Group i s a l eadi ng player i n t he gl obal i nsurance and fi nancial market s. Est abli shed i n Tri est e i n 1831, t oday t he Group i s one of Europes largest i nsurance providers and the European biggest Life insurer. It is also one of the worlds top assetmanagers wi t h asset s t ot ali ng more t han 300 bi lli on. Wi t h an employed sal es force of more than 100,000 people serving 60 million clients in 65 countries, the Group occupiesa leadershi p posi t i on i n West ern Europe and an increasi ngl y i mport ant place i n East ernEurope and Asia.The Group strategy aims to consolidate Generalis pre-eminence on its key markets anda c h i e v e a p r e mi e r p o s i t i o n o n ma r k e t s wi t h h i g h g r o wt h p o t e n t i a l , e s t a b l i s h i n g i t s leadershi p i n profi t abi li t y. The Group i s not onl y t he market l eader i n It al y, but also a primary player in Germany, France, Austria, Spain, Switzerland, Israel and Argentina.Generali is a strong player on markets offering high growth potential. In Central EasternEurope, i n part i cular, t hanks t o t he Generali PPF Joi nt Vent ure, i t i s one of t he pri mary players. Generali also has Joint Ventures in India and China, where, within a few yearsafter its entrance, it has already become one of the top foreign insurance providers. HDFC - Standard Life Insurance Company Ltd HDF C S t a n d a r d Li f e I n s u r a n c e Co mp a n y Li mi t e d . i s o n e o f I n d i a ' s l e a d i n g p r i v a t e insurance companies, which offers a range of individual and group insurance solutions. Iti s a j oi nt vent ure bet ween Housi ng Devel opment Fi nance Corporat i on Li mi t ed (HDFCLi mi t e d ) , I n d i a ' s l e a d i n g h o u s i n g f i n a n c e i n s t i t u t i o n a n d a Gr o u p Co mp a n y o f t h e Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and StandardLife (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while therest is held by Others.36 ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading internationalfi nanci al servi ces group headquart ered i n t he Uni t ed Ki ngdom. Tot al capi t al i nfusi onst ands at Rs. 47. 80 bi lli on, wi t h ICICI Bank holdi ng a st ake of 74% and Prudent ial plc holding 26%.We began our operat i ons i n December 2000 aft er recei vi ng approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of 2 0 7 4 b r a n c h e s ( i n c l u s i v e o f 1 , 1 1 6 m i c r o - o f f i c e s ) , o v e r 2 2 5 , 0 0 0 a d v i s o r s ; a n d 7 bancassurance partners. ICICI Prudent i al i s t he fi rst li fe i nsurer i n Indi a t o recei ve a Nat i onal Insurer Fi nanci al S t r e n g t h r a t i n g o f AAA ( I n d ) f r o m F i t c h r a t i n g s . F o r t h r e e y e a r s i n a r o w, I CI C I Prudential has been voted as India's Most Trusted Private Life Insurer, by The EconomicTi me s - AC Ni e l s e n ORG Ma r g s u r v e y o f ' Mo s t Tr u s t e d Br a n d s ' . As we g r o w o u r d i s t r i b u t i o n , p r o d u c t r a n g e a n d c u s t o me r b a s e , we c o n t i n u e t o t i r e l e s s l y u p h o l d o u r commitment to deliver world-class financial solutions to customers all over India. IDBI Fortis Life IDBI Fort i s Li fe Insurance Co Lt d, i s a j oi nt vent ure bet ween t hree l eadi ng fi nanci al c o n g l o me r a t e s I n d i a s p r e mi e r d e v e l o p me n t a n d c o mme r c i a l b a n k , I DBI , I n d i a s leading private sector bank, Federal Bank and Europes premier Bancassurer, Fortis, eachof which enjoys a significant status in their respective business segments. In this venture,IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each.IDBI Fortis launched its first set of products across India in March 2008, after receivingt he requi si t e approvals from t he Insurance Regulat ory Devel opment Aut hori t y ( IRDA). Today, we offer our servi ces t hrough a vast nat i onwi de net work across t he branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners.
37 I DBI Ba n k L t d . c o n t i n u e s t o b e , s i n c e i t s i n c e p t i o n , I n d i a s p r e m i e r i n d u s t r i a l development bank. Creat ed i n 1956 t o support Indi as i ndust ri al backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongstI n d i a s f o r e mo s t c o mme r c i a l b a n k s , wi t h a wi d e r a n g e o f i n n o v a t i v e p r o d u c t s a n d servi ces, servi ng ret ai l and corporat e cust omers i n al l corners of t he count ry from over 620 branches and more t han 1050 ATMs. The Bank offers i t s cust omers an ext ensi verange of di versi fi ed servi ces i ncludi ng proj ect fi nanci ng, t erm l endi ng, worki ng capi t al facilities, lease finance, venture capital, loan syndication, corporate advisory services andlegal and t echni cal advi sory servi ces t o i t s corporat e cli ent s as wel l as mort gages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in Indiasfi nanci al sect or such as t he Securi t i es and Exchange Board of Indi a (SEBI), Nat i onal Stock Exchange of India Limited (NSE) and National Securities Depository Ltd Federal Bank is one of Indias leading private sector banks, with a dominant presence int he st at e of Kerala. It has a st rong net work of over 640 branches and 670 ATMs spreadacross India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirelyaut omat ed and int erconnect ed branch net work. The Bank operat es on t he core banki ng platform and is RTGS/ NEFT enabled through which it offers state-of-the-art technologyenabled product s and servi ces. In addi t i on t o i nterconnect ed branches and ATMs, t he Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking,Any Where Banki ng, debi t cards, onli ne bi ll payment and call cent re faci li t i es t o offer round t he clock banki ng conveni ence t o i t s cust omers. The Bank has been a pi oneer i n providing innovative technological solutions to its customers and the Bank has wonseveral awards and recommendations. Fortis is an international insurance group composed of AG Insurance, the overall marketl e a d e r i n l i f e a n d n o n - l i f e i n s u r a n c e i n Be l g i u m, d i s t r i b u t i n g i t s i n s u r a n c e p r o d u c t s through the network of BNP Paribas Fortis Bank and independent insurance brokers, and38 F o r t i s I n s u r a n c e I n t e r n a t i o n a l w i t h s u b s i d i a r i e s i n t h e U K , F r a n c e , H o n g K o n g , Luxembourg (Non-li fe), Germany, Turkey, Russi a and Ukrai ne, and j oi nt vent ures i n Luxembourg (Life), Portugal, China, Malaysia, Thailand and India. ING Vysya Life ING Vysya Life Insurance Company Private Limited (the Company) entered the privateli fe i nsurance i ndustry i n Indi a i n Sept ember 2001, and in a short span of 3 years hasest abli shed i t self as a di st i nct i ve li fe i nsurance brand wi t h an i nnovat i ve, at t ract i ve andcust omer fri endl y product port foli o and a professi onal advi sor force. It also di st ri but es products in close cooperation with the ING Vysya Bank network. The Company isheadquartered at Bangalore. Kotak Life Insurance Ko t a k Ma h i n d r a Ol d Mu t u a l Li f e I n s u r a n c e Lt d i s a j o i n t v e n t u r e b e t we e n Ko t a k M a h i n d r a B a n k L t d . , i t s a f f i l i a t e s a n d O l d M u t u a l . A c o m p a n y t h a t c o m b i n e s i t s i n t e r n a t i o n a l s t r e n g t h s a n d l o c a l a d v a n t a g e s t o o f f e r i t s c u s t o me r s a wi d e r a n g e o f innovative life insurance products, helping them in taking important financial decisions atevery st age i n li fe and st ay fi nanci all y i ndependent . The company i s one of t he fast est g r o wi n g i n s u r a n c e c o mp a n i e s i n I n d i a a n d h a s s h o wn r e ma r k a b l e g r o wt h s i n c e i t s i n c e p t i o n i n 2 0 0 1 . Ko t a k Li f e I n s u r a n c e e mp l o y s a r o u n d 5 , 5 6 5 p e o p l e i n i t s v a r i o u s businesses and has 197 branches across 141 cities. Old Mutual Old Mut ual i s an int ernat i onal savi ngs and wealt h management company based in the UK. Originating in South Africa in 1845, it is among the top 100 largestcompani es i n t he FTSE100. The group has a balanced port foli o of busi nesses offeri ng Asset Management, Life Assurance, Banking and General Insurance Services in over 40count ri es, wi t h a focus on Sout h Afri ca, Europe and t he Uni t ed St at es, and a growi ng39 presence in Asia Pacific. Old Mutual employs approximately 54,000 employeesworldwide with its primary listing on the London, secondary listing on the Johannesburgstock exchanges as well as in Namibia, Malawi and Zimbabwe. Max New York Life Max New York Life Insurance Company Ltd. i s a j oi nt vent ure bet ween Max Indi a L i m i t e d , o n e o f I n d i a ' s l e a d i n g m u l t i - b u s i n e s s c o r p o r a t i o n s a n d N e w Y o r k L i f e I n t e r n a t i o n a l , t h e i n t e r n a t i o n a l a r m o f Ne w Yo r k Li f e , a F o r t u n e 1 0 0 c o mp a n y . Th e company has posi t i oned i t self on t he quali t y plat form. In li ne wi t h i t s vision to be themost admired life insurance company in India , i t has devel oped a st rong corporat egovernance model based on t he core values of excel l ence, honest y, knowl edge, cari ng, integrity and teamwork.Incorporated in 2000, Max New York Life started commercial operation in April 2001. Inline with its values of financial responsibility, Max New York Life has adopted prudentf i n a n c i a l p r a c t i c e s t o e n s u r e s a f e t y o f p o l i c y h o l d e r ' s f u n d s . Th e Co mp a n y ' s p a i d u p capital as on 30th April, 2009 is Rs 1782 crore.Max New York Li fe has mult i -channel di st ri buti on spread across t he count ry. Agencyd i s t r i b u t i o n i s t h e p r i m a r y c h a n n e l c o m p l e m e n t e d b y p a r t n e r s h i p d i s t r i b u t i o n , bancassurance, alliance marketing and dedicated distribution for emerging markets. TheCompany places a lot of emphasi s on i t s sel ect i on process for agent advi sors, whi ch comprises four stages - screening, psychometric test, career seminar and final interview.The agent advi sors are t rai ned i n-house t o ensure opt i mal cont rol on quali t y of t rai ni ng. The company currently has around 82,248 agent advisors at 715 offices across 389 cities.The company also has 36 referral t i e - ups wi t h banks, 24 part nershi p di st ri but i on andalliance marketing relationships each. Max New York Life has put in place a unique huband spoke model of distribution to deepen our rural penetration. This is the first time such40 a model has been put in place for rural marketing of insurance. The company has 139offices dedicated to rural areas.Max New York Life offers a suite of flexible products. It now has 39 products covering both life and health insurance and 8 riders that can be customized to over 800combinations enabling customers to choose the policy that best fits their need. Besidest h i s , t h e c o mp a n y o f f e r s 6 p r o d u c t s a n d 7 r i d e r s i n g r o u p i n s u r a n c e b u s i n e s s . The company currently has more than 11,178 employees. Metlife India MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. andwas incorporated as a joint vent ure between MetLife International Holdings, Inc., TheJ ammu and Kas hmi r Bank, M. Pal l onj i and Co. Pr i vat e Li mi t ed and ot her pr i vat einvestors. MetLife is one of the fastest growing life insurance companies in the country.It serves its customers by offering a range of innovative products to individuals and groupcustomers at more than 600 locations through its bank partners and company- ownedoffices. MetLife has more than 50,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country.Met Li f e, I nc. , t hr ough i t s af f i l i at es , r eaches mor e t han 70 mi l l i on cus t omer s i n t heAmericas, Asia Pacific and Europe. Affiliated companies, outside of India, include thenumber one life insurer in the United States (based on life insu rance inforce), with over 140 year s of exper i ence and r el at i ons hi ps wi t h mor e t han 90 of t he t op one hundr ed FORTUNE 500 companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals,as well as group insurance, reinsurance and retirement and savings products and servicesto corporations and other institutions. Reliance Life Insurance Rel i ance Li f e I ns ur ance i s an as s oci at e company of Rel i ance Capi t al Lt d. , a par t of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading41 private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capi tal hasi n t e r e s t s i n a s s e t ma n a g e me n t a n d mu t u a l f u n d s , s t o c k b r o k i n g , l i f e a n d g e n e r a l i ns ur ance, pr opr i et ar y i nves t ment s , pr i vat e equi t y and ot her act i vi t i es i n f i nanci al services. Reliance - Anil Dhirubhai Ambani Group also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure. Sahara Life The Sahara Pariwars latest foray is in the field of Life Insurance. The Pariwars lifei ns ur ance company Sahar a I ndi a Li f e I ns ur ance Company Lt d. - has been gr ant e dlicence by the insurance regulator the IRDA on 6th February 2004. With this approvalSahara India Life Insurance Company Ltd. becomes the first wholly and purely Indiancompany, without any foreign collaboration to enter the Indian Life insurance market. The launch is with an initial paid up capital of 157 crores. The Chairman of the companyis Shri Subrata Roy Sahara who is also the Chairman of Sahara Pariwar. SBI Life insurance SBI Life Insurance Company Limited is a joint venture between the State Bank of Indiaand BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capitalof Rs 2000 crores and a Paid-up capit al of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.St a t e Ba n k o f I n d i a e n j o y s t h e l a r g e s t b a n k i n g f r a n c h i s e i n I n d i a . Al o n g wi t h i t s 6 Associat e Banks, SBI Group has the unrivalled strength of over 16, 000 branches across the country, arguably the largest in the world.BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas- Euro Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks bymarket value and a European leader in global banking and financial services, is one of the42 o l d e s t f o r e i g n b a n k s w i t h a p r e s e n c e i n I n d i a d a t i n g b a c k t o 1 8 6 0 . B N P P a r i b a s Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP ParibasAssurance operates in 41 countries mainl y through the bancassurance and partnershipmodel.SBI Li fe has a unique mult i -distribution model encompassing vibrant Bancassurance, Ret ai l Agency, Insti tutional Alli ances and Corporate Solutions distribution channels. SBI Li fe ext ensi vel y leverages the SBI Group as a plat fo rm for cross-selli ng insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides avibrant base for insurance penetration across every re gion and economi c strat a in thecountry ensuring true financial inclusion.Agency Channel, comprising of the most productive force of more than 68,000 InsuranceAdvisors, offers door to door insurance solutions to customers. Shriram Life Shriram Life Insurance Company is the joint venture between the Shriram Group and theSanlam Group.T h e S h r i r a m G r o u p i s o n e o f t h e l a r g e s t a n d w e l l - r e s p e c t e d f i n a n c i a l s e r v i c e s conglomerates in India. The Group's main line of activities in financial services includechit fund, truck financing, consumer durable financing, stock broking, insurance brokinga n d l i f e i n s u r a n c e . Th e Gr o u p h a s a c u s t o me r b a s e o f 3 0 l a c s c h i t s u b s c r i b e r s a n d investors and operates through a network of 630 offices all over the country. The Grouphas the largest agency force in the private sector consisting of more than 75,000 loyal anddedicated agents.43 S a n l a m Li f e I n s u r a n c e Li mi t e d , a p a r t o f t h e Sa n l a m Gr o u p , i s o n e o f t h e l a r g e s t providers of life insurance in South Africa with 3.2 million individual policies under administ ration. It has a signi fi cant presence across South Afri ca, United Kingdom and Namibia and is a major provider of life insurance, retirement annuities, saving andinvest ment products, personal loans, home loans and trust servic es to individual s. Theshareholder's funds of Sanlam Life equates to USD 4.4 billion.The Sanlam Group was established in 1918 and has a l eadership position in financial services in South Africa. Demutualized in 1998, the group is listed on the JSE SecuritiesExchange in Johannesburg and on the Namibian Stock Exchange. It has a current marketcapitalization of USD 5.4 billion. The Sanlam Group also operates in the areas of groupschemes, retirement funds, short -t erm insurance, asset management and other financi al services. It has employee strength of 8, 000 and has shareholder funds in excess of USD4 . 6 b i l l i o n . On 3 1 s t De c e mb e r 2 0 0 4 i t h a d mo r e t h a n US D 4 8 b i l l i o n a s s e t s u n d e r management. Star Union Dai-ichi Life Bank of India and Union Bank of India, two leading Public Sector Banks in India and theDa i - i c h i Mu t u a l Li f e I n s u r a n c e Co mp a n y , a l e a d i n g J a p a n e s e Co mp a n y i n t h e Li f e Insurance market, have float ed a Joint Venture Company, "St ar Union Dai -ichi Li feInsurance Co. Ltd." for undertaking Life Insurance Business in IndiaTh e Co mp a n y , h a s b e e n i n c o r p o r a t e d / r e g i s t e r e d wi t h t h e Re g i s t r a r o f Co mp a n i e s , Maharashtra on 25th September, 2007. The Company has been issued the license for undert aking li fe insurance business in Indi a by Insurance Regul atory and Devel opment Au t h o r i t y ( I RDA) o n 2 6 . 1 2 . 2 0 0 8 . Th e Co mp a n y h a s b e s t i n s u r a n c e , I T, f i n a n c e a n d investment resources to ensure that it soon earns a prominent position in insurance sector.Th e Co mp a n y h a s a c a p i t a l s t a k e o f 5 1 % b y BOI , 2 6 % b y Da i - i c h i Li f e a n d 2 3 % b y 44 U n i o n B a n k . T h e C o m p a n y h a s a u t h o r i z e d c a p i t a l o f R s . 2 5 0 . 0 0 C r o r e s . S t a r Un i o n Da i - i c h i Li f e , wi t h t h e s t r e n g t h o f t h e d o me s t i c p a r t n e r s i n t h e I n d i a n Financial Sector coupled with the Dai-ichi Lifes strong domain expertise is expected, to be a strong player in the Indian Life Insurance market in a short time. The Companyoffers various products to serve all strata of the society.Ba n k o f I n d i a a n d Un i o n Ba n k h a v e a s t r o n g n a t i o n wi d e n e t wo r k o f mo r e t h a n 5 4 0 0 offices, which shall provide distribution outlets with a wide reach. More than 48 millionstrong banking customer base of the two banks provides ready scope for cross selling of insurance products. The two banks have strong brand equity, and command high level of trust among their customers and people at large. Additionally the Regional Rural Bankssponsored by the t wo banks provide more than 1400 branches to tap the li fe-insurance business in the rural areas.Dai-ichi Life is a leading player in the Life Insurance Segment in Japan and is one of the top ten Li fe Insurers in the world and the second largest Li fe Insurance Company inJapan. Establi shed in 1902, it has more than a century of experience in Li fe Insurance business. It has sound product knowledge, sharp asset management skills, and strongoperational capabilities to manage Life Insurance business, which make Dai-ichi Life the best insurance JV partner on the domain side.St a r Un i o n Da i - i c h i Li f e I n s u r a n c e Co mp a n y Lt d . i s a l s o c o mmi t t e d t o p r o v i d i n g i n s u r a n c e t o r u r a l a n d we a k e r / s o c i a l s e c t o r s . Bo t h t h e d o me s t i c p a r t n e r s a r e i n t h e process of implementing Govt. of Indias initiative of Financial Inclusion and their panIndia network of branches gives the Company a natural edge in catering to these sectorseffectively.Wi t h t h e s t r o n g b r a n d a n d c o m m i t m e n t o f t h e p a r t n e r s , S t a r U n i o n D a i - i c h i L i f e I n s u r a n c e Co mp a n y Lt d . p r o mi s e s t o b e a n e w s t a r o n t h e h o r i z o n o f t h e I n d i a n l i f e insurance business, promising value to all stakeholders.45 Tata AIG Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Lifecombines the Tata Groups pre-eminent l eadership position in India and AIGs global presence as one of the worlds leading international insurance and financial servicesorganization. The Tata Group holds 74 per cent stake in the insurance venture with AIGh o l d i n g t h e b a l a n c e 2 6 p e r c e n t . T a t a A I G L i f e p r o v i d e s i n s u r a n c e s o l u t i o n s t o individuals and corporates. Tata AIG Life Insurance Company was licensed to operate inIndia on February 12, 2001 and started operations on April 1, 2001.
46 Chapter3 ResearchMethodology 47 Meaning of Research Redman and Mory define research as a systemized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown.Research is an academic activity and as such the term should be used in a technical sense.According to Cl i fford Woody, research compri ses defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;making deductions and reaching conclusions; and at last carefully testing the conclusionsto determine whether they fit the formulating hypothesis. Objectives of Research The purpose of research is t o discover answers to questi ons through the application of sci enti fic procedures. The main ai m of research i s to find out the truth whi ch is hidden a n d wh i c h h a s n o t b e e n d i s c o v e r e d a s y e t . Th o u g h e a c h r e s e a r c h s t u d y h a s i t s o wn s p e c i f i c p u r p o s e b u t t h e r e s e a r c h o b j e c t i v e s c a n b e l i s t e d i n t o a n u m b e r o f b r o a d categories, as following:- 1. To gain familiarity with a phenomenon or to achieve new insights into it. Studieswith this object in view are termed as exploratory or formulative research studies. 2. To portray accurately the characteristics of a particular individual, situation or agroup. Studies with this object in view are known as descriptive research studies. 3. To d e t e r mi n e t h e f r e q u e n c y wi t h wh i c h s o me t h i n g o c c u r s o r wi t h wh i c h i t i s associ ated wi th something el se. Studi es wit h this object in view are known as diagnostic research studies.48 4. To test a hypothesi s of a casual relationship bet ween variabl es. Such studies areknown as hypothesis-testing research studies. 2.3 Significance of Research All process is born of inquiry. Doubt is often better than overconfidence, for it leads toinquiry and inquiry leads to invention. Is a famous Hudson Maxim in context of whichthe significance of research can well be understood increased amounts of research make progress possible.Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization.The role of research in several fields of applied economics, whether related to business or t o t h e e c o n o my a s a wh o l e , h a s g r e a t l y i n c r e a s e d i n mo d e r n t i me s . Th e i n c r e a s i n g complex nature of business and government has focused attention on the use of researchi n s o l v i n g o p e r a t i o n a l p r o b l e ms . Re s e a r c h , a s a n a i d t o e c o n o mi c p o l i c y , h a s g a i n e d added importance, both for government and business.Research methodology is a way to systematicall y sol ve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study thevarious steps that are generally adopted by a researcher in studying his research problemalong with the logic behind them. It is necessary for the researcher to know not only theresearch methods or techniques but also the methodology. Data Collection Source I n f o r ma t i o n c a n b e c o l l e c t e d t h r o u g h b o t h p r i ma r y a n d s e c o n d a r y s o u r c e s . Th e d a t a collected for this project has been taken from the primary as well as secondary sources. Primary Data: In some cases the researchers may realize the need for collecting the firsth a n d i n f o r m a t i o n . A s i n t h e c a s e o f e v e r y d a y l i f e , i f w e w a n t t o h a v e f i r s t h a n d information or any happening or event, we either ask someone who knows about it or we49 observe it oursel ves, we do the both. Thus, the t wo met hods by whi ch pri mary dat a can be collected is observation and questionnaire. Secondary Data: Any data, which have been gathered earlier for some other purpose, aresecondary dat a in the hands of researcher. Those data coll ect ed first hand, either by ther e s e a r c h e r o r b y s o me o n e e l s e , e s p e c i a l l y f o r t h e p u r p o s e o f t h e s t u d y i s k n o wn a s primary data. Sources of secondary data are:-
Internet
Magazines
Publications
Brochures Objectives of the Project
To determine the current status of the HDFC Standard Life Insurance CompanyLtd.
To find out the customers response towards HDFC Standard Life InsuranceCompany Ltd.
To study the satisfaction level of customers in different attributes of HDFCStandard Life Insurance Company Ltd. Research Design A research design is an arrangement of condition for the collection and analysis of datain a manner that aims to combine the relevance to the research purpose with economy in procedure.50 I n f a c t , t h e r e s e a r c h d e s i g n i s t h e c o n c e p t u a l s t r u c t u r e w i t h i n w h i c h r e s e a r c h i s conducted; it constitutes the blue print for the collection measurement and the analysis of the data. The research work which is undertaken is to get a detailed knowledge about thecustomers response towards HDFC Standard Life Insurance Company Ltd. 1. Qualitative research : this is through
Employees of HDFC Standard Life in Rohini branch, New Delhi 2. Sampling Technique :
Convenient sampling 3. Sample Size :
25 4. Research Tool
Interview and questionnaire51 Chapter4 Data Analysis 52 DATA ANALYSIS Question No. 1Respondent Age GroupPeople within the age of 45 years to 60 years comprise of the maxi mumnumber of respondents i.e. 36% closely followed by people within the age of 30 years to 45 years i.e. 28%. Only 14% of respondents age was more than60 years. 53 RESPONDENT's AGEGROUP 22%28%36%14%18-3030-4545-6060< Question No. 2Respondent income group (per year) RESPONDENT's INCOME GROUP 17%33%27%23%Below 50,00050,000-1,00,0001,00,000-2,00,000>2,00,000 R e s p o n d e n t s w h o s e a n n u a l i n c o m e l i e d b e t w e e n R s . 5 0 , 0 0 0 / - t o R s . 1,00, 000/ - comprised of 33% of the tot al people int erviewed. Whil e 17%respondents income lied below Rs. 50,000/-. 54 Question No. 3Respondents Profession RESPONDENT's PROFESSION 22%27%31%20%ServicemanBusinessmenProfessionalsOthers O f a l l t h e p e o p l e i n t e r v i e w e d , 3 1 % o f t h e m w e r e P r o f e s s i o n a l s , 2 7 % consisted of Businessmen, and 22% belonged to the Service Cl ass and therest 20% were of other categories. 55 Question No. 4Are you aware about life insurance? LIFE INSURANCE AWARENESS 63%37% YesNo Approxi mat el y 2/3 rd o f t h e p e o p l e i n t e r v i e w e d , w e r e a w a r e a b o u t t h e c o n c e p t o f l i f e i n s u r a n c e . A n d t h e r e s t 1 / 3 rd we r e u n a wa r e a b o u t l i f e insurance. 56 Question No. 5Do you know about IRDA? KNOWLEDGE ABOUT I.R.D.A. 71%29% YesNo A fai rl y better i mage emerged when people were questi oned about IRDA. 71% people knew about it and the rest 29% didnt have the knowledge aboutIRDA. 57 Question No. 6How many numbers of companies in life insurance are you aware of? NO. OF COMPANIES IN LIFEINSURANCE SEGMENT 18%21%34%27% OneTwo-Four Four-EightMore than Eight When asked numbers of companies in life insurance are you aware of 34%of people knew about more than 4 compani es but less than 8 compani es. And 27% people knew more t han 8 companies. Whereas onl y 18% people knew just about one company. 58 Question No. 7D