ESG Report 2020 21

ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
REPORT 2020-21
HDFC Life Insurance Company Limited

Environmental, Social and Governance Report FY 2020-21
CONTENTS
ESG at a Glance 03 Holistic Living 30
Customer Centricity
MD & CEO Statement 05
Customer Satisfaction
About HDFC Life 08 Providing Long-term Capital
Inclusive Growth /
Our Vision 09
Financial Inclusion
Our Values 09
Special Supplement:
Our Approach to ESG Reporting 10
COVID-19 Response 35
Our ESG Strategy 11

Sustainable Operations 41
Ethical Conduct 13 Energy, Emission and Water

Conservation
Governance Structure
E-waste Management
Compensation Policy & Practices
Other Waste Management
Compliance Framework
Initiatives
Risk Management
Digitisation
Tax Policy
Reducing Carbon Footprint
Business Continuity Planning
Information & Cyber Security
Our Commitment to Sustainable Development 45
Business Ethics and Policies
Our Material Topics 46

Responsible Investing 22
Investment Framework Stakeholder Engagement 47

RI Framework
Risk Management Way Forward 50
Diversity, Equity and Inclusion 24
Human Capital Development

Promoting Responsible Behavior
ESG at a glance
NO. OF POLICIES CLAIM

SOLD SETTLEMENT
Customer (IN LAKH)
RATIO
Connect
Overall 9.8 Overall 99.4%
NO. OF CLAIMS VALUE OF NO. OF LIVES

SETTLED CLAIMS INSURED
(IN LAKH) (IN INR CRORE) (IN CRORE)
Overall 2.9 Overall Over 3,000 Overall 4.0
3
ESG at a glance
Conserving Environment
NO. OF TREES ENVIRONMENT ENERGY EFFICIENCY

PLANTED SUSTAINABILITY / SAVINGS
Electricity 14%
bill reduction
City forest 17 units
Trees 40,000+ Water ATMs 12 Amps 1.4 lakhs
saved
Last 3 years Last 3 years
E-WASTE GENDER
DISPOSAL DIVERSITY
Diversified
and Inclusive Women
employees 24%
E-waste Women
310 kg 27%
recycled Directors
Supporting Communities
CSR SPENDS LIVES IMPACTED WAR WIDOWS /

(IN INR CRORE)
CENTRAL ARMED
POLICE FORCES
Overall
2.3+
(in lakh
States /
24 / 3
UTs
Overall 20 Projects 22 Overall 230
EMPLOYEE PM CARES FUND COVID RELIEF

VOLUNTEERS (IN INR CRORE)
Meals, 5
medical hospitals
equipment covered
Overall 1,000+ Overall 7.5 Campaign Dabbawala
4
MD & CEO’s Statement
The pandemic tested our

agility as well as resilience
as a company. I feel
humbled to say that we
collectively tackled
numerous adversities and
continued to deliver value
to our stakeholders,
without compromising on
the safety of our
employees, our outsourced
staff, vendors and partners.
5
Dear Readers,
While the nation begins to bounce I am also happy to say that we and supplies to assist COVID
back from the impact of the played a socially meaningful role patients and also nutritional meals
pandemic, we have seen over the course of the year, having to support front-line health-care
countless individuals dedicating settled over 2.9 lakh death claims, workers. HDFC Life contributed Rs.
themselves for the greater good resulting in payouts in excess of 7.5 crore to the PM Cares fund, as
of the society. At the outset, I Rs. 3,000 crore. Despite part of HDFC Group’s contribution
would like to express my heartfelt challenges through the year, we of Rs. 150 crore, to help our
gratitude to all these unsung insured close to 4 crore lives in FY government mobilise resources.
heroes - the frontline medical 2020-21.
As an Organisation, we also
staff, sanitation workers and
The safety of our employees has believe in creating long-term
essential service providers who
always been our topmost priority. value for all stakeholders by
continue to work selflessly during
We rolled out multiple initiatives focusing on sustainable growth.
these trying times to help us all
related to employee assistance As part of our Go Green initiative
stay safe. I would also like to thank
like provision of oxygen and in line with the increasingly
our employees and partners who
concentrators, on-call doctor digital mindset of our customers,
helped us serve our customers
services for mental and physical we accelerated initiatives
during this period.
well-being during the course of including ‘Zero Paper’ (elimination
COVID-19 has certainly changed the year. To keep our employees of physical documents in sales and
many aspects of our lives. It has motivated and enable them to servicing) and increasing adoption
not only been a year of an address customers’ changing of policies in demat form.
emerging new normal but also of needs, we launched various
We remain focused on our
trends like: large-scale training programs and introduced
strategy of balanced product mix,
deployment of digital capabilities, new digitally enabled sales
diversified distribution,
increased focus on sustainability platforms. We identified the
market-leading product
and stakeholder engagement, importance of technology early
propositions, enhanced digital
changing needs of the customer on, and this enabled us to
capabilities and effective
and new models of working. In a empower our workforce, service
governance to deliver sustainable
nutshell, it has changed the way existing customers and generate
and profitable growth. We
we do business and has made us new business without physical
recorded a growth of 17% in
rethink the concept of ‘business as interaction. Digital is the backbone
terms of individual weighted
usual’. The pandemic tested our of our growth story and we
received premium (WRP) during FY
agility as well as resilience as a continue to invest in technology
2020-21 on a base of 19% growth
company. I feel humbled to say with a view to enhancing
in FY 2019-20. We issued 9.8 lakh
that we collectively tackled customer experience, simplifying
new individual policies registering
numerous adversities and the buying journey and creating
a growth of 10% and our market
continued to deliver value to our new product propositions.
share in terms of individual WRP
stakeholders, without
For the past two decades, HDFC increased by 130 basis points to
compromising on the safety of our
Life has strived to create a 15.5% in FY 2020-21.
employees, our outsourced staff,
positive impact for its customers
vendors and partners. Our Given the uncertainty around the
and communities. We have
20,000+ HDFC Lifers, 100,000+ pandemic and ever-evolving
collaborated with an NGO
agents, 300+ partners have situation, our future outlook
supporting frontline healthcare
valiantly overcome challenges and remains cautiously optimistic.
workers, in one of the worst hit
ensured that all our customers,
states of India. With the support During the year, when we were
policyholders and our
of this organisation, we provided faced with challenges by the
stakeholders were taken care of.
hospitals with medical equipment minute, our leadership team
6
adopted the strategy of ‘pause, assess, and react’. We

ensured timely updates to our Board and incorporated
their valued suggestions to formulate our business
I am also happy to say that we strategy in the given dynamic environment.
played a socially meaningful role In conclusion, when I look back today, I recognize that
over the course of the year, our Organisation has emerged stronger from the
crisis while ensuring sustainable growth, continued
having settled over 2.9 lakh stakeholder engagement and effective governance.
death claims, resulting in payouts HDFC Life is and will continue to be committed to
industry leading ESG standards that will help shape a
in excess of Rs. 3,000 crore. sustainable future for the communities we serve and
create long-term value for all our stakeholders.
Best Wishes,
Vibha Padalkar
7
About HDFC Life
HDFC Life Insurance Company Limited (‘HDFC Life’ / ‘Company’) is a joint venture between
HDFC Ltd., India’s leading housing finance institution and Standard Life Aberdeen, a global
investment Company. Established in 2000, HDFC Life is one of the leading life insurance
solutions providers in India, offering innovative savings and investment, pension and
annuity, protection and health solutions to customers. The Company has a robust
distribution system comprising of 300+ traditional partners, including more than 50
emerging ecosystem partners, bolstered by its pan India presence through a network of
390 branches.
8
Our Vision
To be the most successful and admired life insurance company, which means that we are
the most trusted Company, the easiest to deal with, offer the best value for money and set
the standards in the industry. “The most obvious choice for all”.
Our Values
The Values Framework ‘EPICC’ (Excellence,

People Engagement, Integrity, Customer-
Centricity, and Collaboration) characterises the
inspiring culture which fosters growth and
progress, for us and all our stakeholders, for
today and tomorrow.
Insight
Organisational values close to our heart
The EPICC Values guide every decision we take - the way we do our business and the way we interact with each
other. Our commitment to our values was displayed when we had to go under sudden lockdown during the
onset of the COVID pandemic. Our management team supported by the core BCP team swiftly and pro-actively
took all necessary measures to ensure that our employees and customers were taken care of, holding true to our
core values of ‘people engagement’ and ‘customer centricity’.
HDFC Life has 600+ Value Guardians and 100+ Value Ambassadors who drive the Values Programme on the
ground. They are the custodians of our Organisational values and it is through their tireless efforts that our
values get embedded throughout the Organisation.
In FY 2020-21, the Corporate Communications and Human Resources team have together launched the ‘Live
the EPICC Life’. Another step to build our reputation as a values driven Organisation.
9
Our Approach to ESG Reporting

This report has been structured using the framework based on our ESG strategy. The
Report is also produced in accordance with the “core” option of the Global Reporting
Initiative (GRI) standards and SEBI guidelines.
Our business is to provide a financial safety-net to

individuals to empower them to achieve their financial
goals and also protect their families. Our brand tagline, ‘Sar
Utha Ke Jiyo’ is a reflection of our commitment towards
making every stakeholder live a life of pride, with their
head held high. To this effect, HDFC Life is committed to
industry leading ESG standards that help in building a
sustainable future for the communities we serve and
creating long-term value for all our stakeholders.
Environment: Our objective is to contribute towards

building a sustainable future for our planet. Our initiatives
to reduce our carbon footprint through consumption
rationalisation, eco-friendly technology and efficient ways
to reduce, reuse and recycle waste help us in this
endeavour.
Social: HDFC Life plays an important role in addressing the

key risks of mortality, morbidity and longevity that set back
communities if left unmitigated. We also play a vital role in
the growth and development of the nation. Premium
received from policyholders are deployed into instruments
that finance investment in long horizon sectors like
infrastructure and others that support economic growth.
Governance: We aim to build the foundation of our

Corporate Governance philosophy on the basic principles
of integrity, transparency and accountability. This
philosophy plays a pivotal role in protecting the interest of
all our stakeholders, enhances investor confidence and
enables sustainable value creation.
Additionally, we have also embarked on our Integrated Reporting journey, in accordance with the guidance
provided in the Securities and Exchange Board of India (SEBI) circular dated February 6, 2017 and inspired by the
Integrated Reporting (<IR>) framework prescribed by the International Integrated Reporting Council (IIRC). The
International Integrated Reporting Council (IIRC) is a group of international leaders with a mission to create the
“Integrated Reporting Framework”. The Framework provides material information about an organisation’s
strategy, governance, performance and prospects in a concise and comparable format.
10
Our ESG Strategy

Our ESG strategy is driven by the vision that
as a responsible life insurer we must take on
the mantle to drive sharper, focused and
impactful ESG programme that maximizes Our ESG Statement
the value for all stakeholders and the
community at large.
HDFC Life is committed to
The ESG strategy has been developed based
on global benchmarks and material topics industry leading ESG
for HDFC Life, with an intent to address ESG standards that will help
risks and drive meaningful impact. Our ESG shape a sustainable future
approach is linked to our strategic goals. We
for the communities we
have a management level committee, which
overlooks the formulation of ESG framework serve and creating
and implementation of ESG strategy. longterm value for all our
A forum at executive committee-level also
stakeholders
reviews the ESG related strategy and
practices at frequent intervals.
Our ESG strategy focusses on five pillars, each of which have been elaborated in the
subsequent sections:
5 Pillars of ESG Strategy
Diversity,
Ethical Responsible Holistic Sustainable
Equity &
Conduct Investment Living Operations
Inclusion
The HDFC Life ESG Report elaborates our approach towards each of the five pillars. Each section
of this Report focusses on a pillar of the ESG Strategy and details our philosophy and initiatives.
11
Insight
The role HDFC Life plays in addressing
sustainability issues!
HDFC Life plays an important role in addressing the sustainability
challenges our communities face in India. Life insurance provides people
with peace of mind knowing that they are protecting themselves, their
families and their employees against life’s uncertainties.
Mortality, morbidity and longevity are the three key risks for an individual.
We play a vital role in growth and development of the nation. The
premiums from individuals are pooled by us and deployed into large-scale
collective capital investments to generate policyholder benefits. These
benefits finance long term investment in infrastructure and other key
sectors that support economic growth. The social fabric of traditional joint families has undergone a sea change
and we are seeing emergence of more nuclear families, resulting in decline in inherent social security. The
on-going pandemic has accentuated the protection gap that exists in India. Life insurance helps to address the
protection gaps emanating from these societal shifts.
Growth opportunity: Under-penetration and favorable demographics
Life Insurance penetration1 (2019) Life Insurance density US$2 (2019) India remains vastly
under-insured, both
18.3% 8,979 in terms of
16.5%
penetration and
density
4,129 Huge opportunity to

6.0% 6.7% 3,244
2,691 penetrate the
3.3% 3.4% 2.8% 380 underserviced
2.3% 256 230
58 segments, with
evolution of the life
Taiwan
Thailand
India
Singapore
Malaysia
Hong Kong
insurance
China
Hong Kong
Taiwan
Singapore
Japan
Malaysia
Thailand
China
India
Japan
distribution model
Life expectancy (Years) Population composition (Bn.) India’s insurable

population
1.3 1.6 1.7 estimated to be at
75.0 6% 9% 15% ~1 bn by 2035
71.9 Emergence of
56% 61% nuclear families and
67.6 60%
advancement in
healthcare facilities
lead to increase in
38% 30% 25%
life expectancy thus
2015 2035 2055 facilitating need for
2015 2035 2055 pension and
Less than 20 years 20-64 years 65 years and above protection based
products
1. Penetration as measured by premiums as % of Gross Domestic Product (GDP)

2. Density defined as the ratio of premium underwritten in a given year to the total population
Source: Swiss Re (Based on respective financial year of the countries), MOSPI, United Nations World Populations Prospects Report 2017.
12
Ethical Conduct
Our Strategic Approach

 Governance Structure & Philosophy
 Compensation Policy & Practices
 Compliance Framework
 Risk Management
 Tax Policy
 Business Continuity Planning
 Information & Cyber Security
 Business Ethics & Policies
13
Ethical Conduct
Governance Structure & responsibility. directors including independent

Philosophy directors.
The Company’s Corporate
At HDFC Life, the Corporate Governance framework is aligned The Board of the Company
Governance philosophy is based with the requirements prescribed comprises eleven directors. The
on the basic principles of integrity, under the Indian Companies Act, composition of the Board of
transparency, accountability and 2013 ('the Act') and the Rules Directors as on March 31, 2021 is
responsible corporate conduct made thereunder and the various as follows:
with an intention to enhance regulations and guidelines issued
investor confidence and create  Three non-executive
by the Insurance Regulatory and
enduring value for all its non-independent directors;
Development Authority of India
stakeholders. It also helps the (‘IRDAI’) and Securities and  Six independent directors; and
Company in reflecting its core Exchange Board of India (‘SEBI’).
values and principles in all its  The Managing Director & CEO,
business conduct. The Company’s The Company’s core values and and the Executive Director
philosophy on Corporate principles inspire it to set the
highest standards of Corporate  None of the directors of the
Governance plays a pivotal role in
Governance, which not only Company are related to each
protecting the interest of all its
focusses on complying with other
stakeholders and maximization of
their long-term profitability as applicable legislations but to go Matters related to appointment/
well as value creation. We are beyond in many areas of its re-appointment and rotation of
committed to maintaining the functioning and ensure directors are governed by the
highest levels of ethical sustainable behaviour in all provisions of the Companies Act,
standards, which comprises engagements. 2013 and SEBI Listing
integrity, corporate governance At HDFC Life, we will continue to Regulations.
and compliance framework. adopt and adhere to the The Companies Act, 2013, does
We further believe that an best-recognised Corporate not prescribe any specific term for
eminent, well-informed and Governance practices and appointment/ re-appointment of
independent Board is necessary to procedures and continuously non-executive directors. The
ensure highest standards of benchmark it with the appointment of non-executive
Corporate Governance. The Board best-in-class practices from director(s) is subject to retirement
and its Committees play a crucial across the globe. by rotation at every Annual
role in overseeing how the Board Composition General Meeting.
management is focusing on
HDFC Life had listed its securities In accordance with the SEBI
achieving business objectives,
on both the Stock Exchanges in Listing Regulations, a person shall
while serving the short-term and
India viz., BSE Ltd. (formerly not be a director (including
long-term interests of its
Bombay Stock Exchange) and independent director) in more
stakeholders. The Board of
National Stock Exchange of India than 7 listed entities w.e.f. April 1,
Directors are responsible for
Ltd. As a listed insurance company 2020. Further, any person who is
setting the course for, and
it is governed by the provisions of serving as a whole-time director/
evaluating the Company’s
the Companies Act, 2013; SEBI managing director in any listed
performance pertaining to
(Listing Obligations and Disclosure entity shall serve as an
Corporate Governance. The
Requirements) Regulations, 2015 independent director in not more
parameters of evaluation include
('SEBI Listing Regulations') and the than 3 listed entities. The
compliance, internal control, risk
guidelines issued by IRDAI. The Company and all the directors of
management, information and
Board of the Company comprises the Company are complying with
cyber security, customer service,
of executive and non-executive all the above requirements.
social & environmental
14
Ethical Conduct
Board Skills & Diversity business objectives, while serving Regulations, the Board of
interests of its stakeholders. Directors carries out an annual
HDFC Life is a leading private
evaluation, through an online
insurer in India. Given the size and Pursuant to Section 149(7) of the
module, of its performance and
reach of the Organisation and the Companies Act, 2013 read with
that of its Committees and
focus on having the best in class the Companies (Appointment and
individual directors.
governance, it is essential to have Qualifications of Directors) Rules,
a diverse Board comprising 2014, at the time of induction and The entire Board evaluates the
experts from various fields. at the beginning of every financial performance of the Board as a
year, the Company obtains whole and of individual directors
The Board of Directors includes
declarations from all the including the Chairman, after
eminent people from diverse
independent directors confirming seeking inputs from all directors
fields. Pursuant to the SEBI Listing
that they meet the ‘criteria of based on pre-determined criteria
Regulations, the Company has
independence’ as laid down under such as the Board composition
formulated a Policy on ‘Board
Section 149(6) of the Act, the and structure, effectiveness of
diversity’ to ensure diversity in the
Rules made thereunder and the Board processes, information and
Board in terms of experience,
SEBI Listing Regulations. In the functioning, etc. The Board also
knowledge, perspective,
opinion of the Board, all the evaluates the performance of the
background, gender, age and
independent directors fulfil the Committees after seeking inputs
culture.
criteria of independence specified from the Committee members
The Board of HDFC Life includes 3 under Section 149 of the Act and based on the pre-defined criteria.
women directors, i.e., female the Rules made there under and
Further, independent directors
representation in the Board the applicable provisions of the
meet separately, without the
stands at 27%. SEBI Listing Regulations; and are
attendance of non-independent
independent of the management.
A detailed background of our directors inter alia to review the
Board of Directors is outlined in Board Evaluation performance of non-independent
the Annual Report FY 2020-21. directors, and Board as a whole;
The Company has assessed the
and performance of the Chairman
Board Independence methodology and criteria to
of the Board.
evaluate the performance of the
Majority of the Board consists of Board as a whole and its Compensation Policy &
independent directors. The Board Committees as well as the Practices
lays down the corporate strategy performance of each director
for the Company. The Company’s Compensation Structure
individually, including the
Corporate Governance philosophy Chairman and aligned the The Company has in place a
is based on a diverse and effective template with the criteria laid in Remuneration Policy which is
independent Board and the the said guidance note issued by recommended by Nomination and
separation of the Board’s the SEBI in this regard. The said Remuneration Committee and
supervisory role from the criteria inter alia include duly approved by the Board.
executive management. involvement, quest for
improvement, teamwork, The Remuneration Policy serves
The Company believes that an
governance, knowledge & as a framework for determining
eminent, well-informed and
competency, understanding & the remuneration of Directors
independent Board is necessary to
fulfilment of functions, initiatives, including non-executive directors,
ensure highest standards of
availability & attendance, key managerial personnel (KMP)
Corporate Governance. The Board
commitment, contribution in and senior management officials.
and its Committees play a crucial
role in overseeing management Board meetings and integrity. It recommends the changes to the
team’s focus on achieving Pursuant to the provisions of the Board from time to time, seeks to
Act, and the SEBI Listing
15
Ethical Conduct
balance the fixed and incentive relevant heads of departments in For detailed policies, please visit
pay, and reflects the short-term the Company. ‘Company Policies’ tab on the
and long-term performance given page:
The Compliance Officer also places
objectives of the Company. https://www.hdfclife.com/about-
before the Audit Committee and
us/Investor-Relations
The key objective of the the Board of Directors, a
Remuneration Policy is to ensure Compliance certificate duly signed Risk Management
that it is aligned with the overall by Managing Director & Chief
Risk Governance
performance goals of the Executive Officer and Executive
Company. The policy ensures that Director confirming compliances, The Company has in place a risk
it is fair and reasonable to attract as well as deviations, if any, along management function. The prime
and retain necessary talent, linked with the steps taken to rectify the responsibility of the function is to
to attaining performance deviations and prevention of the identify, analyse, assess and take
benchmarks and involves a occurrence in future, as applicable measures to mitigate risks faced
judicious balance of fixed and in a given case. by the Company. The Company’s
variable components. The Risk Management Committee and
The Company has Anti Money
Remuneration Policy is uploaded Risk Management Council guides
Laundering (AML) Framework in
on the website of the Company. the function. The function along
place to prevent circulation of
with the support of the
In addition, the annual bonus illegally acquired cash through the
management aims to spread and
payouts of the senior leadership company and combat financing of
sustain risk management culture
levels is linked to both individual terrorist (CFT) activities. This
within the Company and provide
and Organisation’s performance framework helps the Company
risk assurance practices at an
that is measured on a balanced report suspicious transactions to
organisational level.
scorecard. The scorecard covers the Financial Intelligence Unit –
the Organisation’s performance on India (FIU-IND), lays down norms The Company has formulated a
financial, market / customer, to be followed by employees for risk management policy along
people, sustainability and complying with AML and carries with other risk related policies.
operational aspects. out AML training of employees, The Risk Management Policy sets
sales and advisory staff at regular the broad contours of the risk
https://www.hdfclife.com/about-
intervals. framework, which is used to
us/Investor-Relations
identify, assess, monitor, review
The Company has in place various
Compensation Governance and report risks as well as their
policies, in line with the regulatory
controls within the Company.
The remuneration paid to the requirements which act as a
directors and key management control and lay out a framework. Various risk governance councils
personnel (KMPs) is in line with These include Risk Management and oversight bodies determine
the Remuneration Policy of the Policy, Anti Money Laundering the strategic direction of the
Company and in compliance with Policy, Asset Liability Management Organisation and create the
guidelines issued by IRDAI. Policy, Whistle blower Policy, environment and the structures
Investment Policy, Outsourcing for risk management to operate
No stock options are granted to Policy, Cyber Security Policy, effectively.
non-executive directors. Customer Grievance Policy, Fraud
Management Policy, Underwriting The risk governance framework
Compliance Framework
Policy amongst others. Each of institutionalized in the Company is
In accordance with the compliance these policies are approved/noted supported by a “Three Lines of
procedures of the Company, by the Board/ Board Committees, Defence” approach. Every function
quarterly confirmation on as may be applicable. has been empowered to drive risk
compliances is obtained from the management framework in their
16
Ethical Conduct
respective areas of operation and found at the link below. Enterprise Risk Management
they form the first line of defence. https://brandsite-static.hdfclife.com Framework (ERM)
Control functions like risk /media/documents/apps/Famliarisa
The Enterprise Risk Management
management and compliance act tion_Programme_for_Independent
(ERM) framework within the
as second line of defence and are __Directors.pdf
Company operates as a feed-in
independent from business
From an IRDAI perspective, system to various internal and
operations which have been
regulations are not geography external stakeholders,
implemented through
centric and apply to the entire management and the Board of
independent reporting
Indian topography from an Directors.
mechanisms. The role of the third
insurance perspective, as may be
line is performed by internal audit The ERM framework is
relevant. Further, as an
function that provides an characterised by:
organisation, the Compliance
independent assurance to the
team of the Company ensures  An appreciation throughout the
Board on the functioning of
appropriate dissemination of Organisation that risk
internal controls.
regulatory notifications to all the management is everybody’s
Risk Awareness: One of the major relevant internal stakeholders and responsibility
objectives of risk management is also creates an actionable list
to foster risk management culture which is circulated for the  An iterative process of
within the Organisation. To respective line of businesses to identifying key risks, putting in
achieve this motto, risk teams understand the type of place risk mitigation plans and
creates awareness throughout compliance required in order to monitoring results
the year by way of trainings, fulfil the regulatory requirements.  A dedicated risk management
workshops, e-mailers, seminars, team with defined roles and
Further, on a quarterly basis, a
conferences, quizzes and special responsibilities, which
regulatory update is presented to
awareness drives. functions under the guidance
the Audit Committee of the Board
Regular risk management outlining the regulatory landscape and supervision of Chief Risk
education for non-executive and its compliance within the Officer (‘CRO’)
directors: An induction session is Organisation. An update on  Risk oversight by the
arranged for every Independent AML/CFT Compliance is also management through the Risk
Director, on his/her appointment presented to both the Audit Management Council and the
to the Board of Directors of HDFC Committee and the Board of the Board vide Risk Management
Life. The induction session, Company on a quarterly basis. Committee
amongst others, includes Further, the Company also has a
overview of the Company, its process of submitting a Various risks managed under ERM
vision and mission, the industry in compliance certificate on all framework includes following:
which it operates, its business applicable regulatory and
 Operational risk
strategies, risk management and statutory obligations, to the Board
the roles and responsibilities as a of Directors of the Company on a  Technology and business
member of the Risk Management quarterly basis, which provides for continuity risk
Committee and Board by the Chief an effective governance
 Compliance/regulatory risk
Risk Officer (CRO). Through such framework that ensures that the
sessions / programmes, the newly Company is meeting with its  Strategy and planning risk,
appointed independent directors regulatory obligations on an Insurance risk
also get an opportunity to interact ongoing basis.
with senior management team of  Subsidiary related risks
HDFC Life. Details of the  Financial risks including market
familiarization programme can be risk, liquidity risk, credit risk,
17
Ethical Conduct
asset liability mismatch risk, Ambassadors in branches, who Additionally, fraud risk
and actuarial assumption risk help in cultivating the values in assessments carried out by the
every employee through team are also presented to the
 Emerging risks
execution of various values Panel to apprise them of fraud
Fraud Risk Management initiatives. ‘Value Guardians' are risks being faced by the
the first line of oversight at the Organisation across geographies,
Fraud risk management is an branches and help spreading channels etc. and guidance is
integral practice and is central to awareness on values and taken for development of
our ethics and value system. The adherence to the same. mitigation strategies.
Company has in place a Board
approved fraud risk management The Malpractice Matrix is an Fraud monitoring initiatives:
policy which defines the integral part of our Code of
Several initiatives are taken at an
objectives, key activities as well as Conduct. As an ethics driven
organisation level to proactively
governance structure. The Risk Organisation, we realize the
manage fraud risks within HDFC
Management Committee of the importance of having a proactive
Life. Some of the key activities
Board oversees the deterrent in place to ensure that
include analysis of fraud
implementation of the fraud risk any kind of malpractice is dealt
repository matches, pre-claims
initiatives. This is directly with, at the right time and with
assessment and various fraud risk
influenced by our promises to the right action, to ensure
assessments. The focus of such
various stakeholders - be it the minimum adverse impact. The
initiatives is to identify and rectify
policyholders, shareholders, or the matrix includes a comprehensive
any instances of fraud or
regulatory authorities governing list of malpractices, which we
malpractice before it negatively
the industry and law enforcement might come across during the
affects either the policyholders or
agencies, of safeguarding their course of our operations. Thus, it
shareholders of the Company.
interests. has been designed to achieve the
following objectives:
Some key fraud risk management
practices adopted by the  To provide a comprehensive
Organisation are: framework for monitoring
operational activities
Values Program
 To take action against the
The Values Program within HDFC erring parties
Life has been defined with the
objective of imbibing the values of  To ensure transparency in
the Organisation at all levels dealing with internal and
starting from senior management external risks
to the grass roots level. The Chief
Disciplinary Panel for Malpractices
Value Officer (CVO) spearheads
this program and the Value A separate panel has been set up
Ambassadors and Value Guardians comprising Chief Financial Officer
drive the implementation. (Chairperson), Executive Director,
Chief Values Officer, Head Audit &
The Value Ambassadors, along
Risk Management, General
with the CVO, undertake an
Counsel, Chief Compliance Officer
outreach programme on value
& Company Secretary, Chief
awareness, mentor the local
Operating Officer, Chief Human
leadership and ‘own’ the branches
Resources Officer. Cases with high
from ‘Values’ perspective. ‘Value
risk and impact are referred to the
Guardians’ support the Value
Panel for guidance and decision.
18
Ethical Conduct
Emerging Risks
Risks: Mitigants
Economic Regulatory
 Lower interest rates, market volatility: Balanced  Change in tax laws: Improved customer engagement &
product mix, prudent risk management including communication around need for life insurance
regular repricing and appropriate hedging
 Change in data protection laws: Robust information
 Credit default: Conservative investment strategy; security & risk guidelines
ongoing portfolio review
Technology
 Disruption: Migration to latest tech platforms, Geo - Political
re-evaluation of business models  Social unrest , Cross - border tension;
Protectionist policies, trade wars: Balanced
 Cyber terrorism/crime: Regular risk audits,
product mix and geography diversification
awareness campaigns for employees
INSURANCE
Societal/Health
Environmental
 Pandemic outbreaks: Stringent underwriting based
on data analytics
 Climate change, loss of biodiversity, water crisis, rise in
pollution, natural disaster: Stringent underwriting on the
 Lifestyle changes (obesity, diabetes etc.): back of data analytics; appropriate pricing; initiatives to
Increased pricing; Marketing campaigns around
promote sustainable environmental practices
healthy lifestyle
Emerging Risks We engage in efficient tax evaluating the processes and

planning that supports business based on the disruption of
Emerging risks are trends which
and reflects commercial and services - customer,
can become potential game
economic activity. We adhere to financial/non-financial and
changers and affect the
relevant tax laws and we seek to regulatory impact is assessed.
Company’s financial strength,
minimize the risk of uncertainty or
competitive position, viability or The business continuity
disputes. Internal processes and
reputation over medium to long management function draws
controls are reviewed on an
term. Both qualitative and inferences from these analysis
ongoing basis to ensure that the
quantitative review, if available, and devises recovery strategies
risks are adequately managed. Our
for the given emerging risk for stress scenarios such as
tax policy can be located at the
categories/drivers shall be technology unavailability, people
link below.
conducted at quarterly or more unavailability and site
frequent intervals to gauge any https://brandsite-static.hdfclife.co unavailability to minimize
emerging risks and corresponding m/media/documents/apps/Tax% potential business loss.
risk mitigation options. 20Policy.pdf
Additionally, under the BCP
Tax Policy Business Continuity Planning framework, periodic drills are
(BCP) conducted to ensure
Being a responsible corporate
effectiveness of the derived
citizen, HDFC Life and its The business continuity
recovery strategies and
subsidiaries are committed to management framework follows
continually improving resumption
building a sustainable business industry-leading practices. It
techniques basis the learning’s
whilst creating value for all operates through a standard set
from such drills.
stakeholders. HDFC Life is of procedures. The first step is to
committed to complying with the create recovery plans for the Information & Cyber Security
applicable tax laws and critical business activities of a
Information and cyber security
regulations in all the jurisdictions function or process. The BCP
continue to be focus areas of
where it operates directly or via a undertakes business impact
HDFC Life. As part of the ISO
subsidiary. analysis (BIA) activity while
27001:2013 and ISMS assessment
19
Ethical Conduct
programme, independent auditors stakeholders, including partners, compliance with the same. HDFC
review and certify the controls vendors and contract staff, are Life's Code of Ethics Policy
implemented by us, basis IRDAI briefed on IT usage acceptance highlights an anti- discriminatory
cyber security guideline. Regular policy and are required to sign-off approach and provides for equal
external assessments are also on it. Apart from all these opportunity to all, thereby
conducted to benchmark initiatives, Company keeps rolling adhering to the principles in the
ourselves with financial services out awareness mails and other United Nations' Universal
and insurance industry. related campaigns to increase Declaration of Human Rights.
cognizance about cyber threats
The Company has a well-defined We have put in place specific
and information security.
information security policy policies and processes to avoid
(including areas of cyber security) The Company has a dedicated unethical behaviours that includes
that ensures all information email id (part of training module) discrimination, disregard for
assets are safeguarded by for reporting suspicious activity or security, safety of the
establishing comprehensive incident. Phishing activities can environment, unauthorized
management processes also be reported directly via disclosure of HDFC Life’s trade
throughout the Organisation. mailbox. Any disciplinary actions secrets or proprietary information,
Inputs from these activities are against the employee in case of improper sales practices, improper
put forth in the Information and any violation in this regard is taken and unethical advice to
Cyber Security Council which acts in line with the malpractice matrix. customers, fraudulent
as the internal governance body In case any employee notices transactions, conflicts of interest,
to monitor and address these something suspicious in place, improper financial or accounting
risks. Cyber and IT security he/she can escalate the same in practices, sexual or other forms of
governance comes under the line with the malpractice matrix. harassment, circumvention of
purview of Risk Committee. internal controls and regulatory
Cyber Insurance: The objective of
norms, breach of Anti Money
Information and cyber security cyber insurance policy is to cover
Laundering (AML)/Know Your
policy is internally available to all for the cost of expenses incurred
Customer (KYC) norms, any action
the employees. Information and when there is liability due to
that could potentially compromise
cyber security trainings are security breach or losses. The
the integrity of our stated values.
mandatory for all the employees Company has obtained cyber
Every employee is trained on the
and is conducted on a yearly basis. security insurance policy with an
effective execution of such
Security workshops on industry approximate cover of Rs. 72 crore.
policies and encouraged to adhere
best practices, security tools and
Business Ethics and Policies to ethical business practices. In
case study discussions are also
addition, employee can reach out
organized on periodic basis, as The Company’s Code of Ethics and to his line manager and/or
part of awareness training. A Conduct (the ‘Code’) is an respective business HR at any
separate program is conducted for extension of its values and point in time, in case of any
senior leadership, where sessions reflects its continued commitment violation of the code of conduct.
are organized or cyber trends and in ensuring ethical business
leaders are sensitized about practices and procedures across Below are some of the policies /
various cyber threats. The its operations. The Board of processes adopted by the
Company also keeps conducting Directors and all employees Company to ensure sound ethical
phishing simulation campaigns to including entire senior behaviour:
test the awareness level in the management team abides by the
Organization. Code and are required to
periodically affirm their
In order to protect our data, all our
20
Ethical Conduct
Grievance Redressal Policy Whistle Blower Policy dealings. Hence, HDFC Life has
adopted a “Zero Tolerance”
Policy for the customers Encourages employees to report
approach to bribery and
(approved by Board and published breach of any law, statute or
corruption in line with the
on website), where in case a regulation within the
provisions mentioned under the
customer is dissatisfied with our Organisation. There is a
Prevention of Corruption Act,
service, an internal mechanism is Whistleblower Committee
1988.
put in place to ensure effective formulated by the Company, which
and timely resolution of reports into Board level Audit and
complaints. There is a Grievance Risk Committee. To raise a
Management Committee complaint, an employee can reach
formulated by the Company, which out to us at
reports into Board level whistleblower@hdfclife.com.
Policyholder Protection Additionally, he/she can raise
Committee. complaint via other modes
detailed out in the Company's
Disciplinary Panel for Malpractices
policy.
Under the fraud risk management
https://brandsite-static.hdfclife.co
policy, the fraudulent cases as
m/media/documents/apps/Whistl
well as cases that require
eblower-Policy%20-%20Final.pdf
clarifications and cannot be closed
by risk team are referred to panel Policy against Sexual Harassment
comprising senior executive at Workplace
committee members. The panel is
Provides for a safe working
also apprised of fraud risks across
environment at the workplace and
geographies, channels etc. and
complies with provisions
guidance is taken for development
mentioned in the Sexual
of mitigation strategies. There is
Harassment of Women at
regular audit of frauds and
Workplace (Prevention, Prohibition
malpractices as part of internal
and Redressal) Act, 2013. To raise
audit programs.
a complaint, employee can reach
Privacy Policy out to us at
shcommittee@hdfclife.com.
Policy is available on our website
and provides our commitment to Detailed policy can be viewed by
privacy by taking reasonable steps visiting the attached link
to (a) protect the confidentiality of https://www.hdfclife.com/docum
the personally identifiable ents/apps/Policy%20on%20Prev
information (PII) provided by ention%20and%20Redressal%2
customer, employee and any third 0of%20Sexual%20Harassment
party associated with the %20at%20Workplace.pdf
Company, (b) protect against
Anti-bribery and Anti-corruption
unauthorized access or
Policy
unauthorized alteration,
disclosure or destruction of We are committed to acting and
information. building relationships based on
integrity and fairness in all our
https://www.hdfclife.com/privacy
-policy
21
Responsible Investment

 Investment Philosophy
 Risk Management
22
Responsible Investment
Investment Philosophy Our primary reliance is on  Policy commitment, revision

company / industry data available and sign off on updates
Our investment funds are
in public domain including quarterly
managed as per the stated  Communication of this
/ annual disclosures, investor
objectives laid down in the Board framework to relevant parties
presentations, annual reports
approved Investment Policy, Asset and oversight on
amongst others. We incorporate
Liability Management Policy (ALM implementation
these disclosures into our analysis
Policy), and respective funds’
to arrive at financial projections,  Annual scan and review of the
objectives. These policies lay
cost of capital and valuation. investment universe
down the asset allocation and risk
appetite guidelines for different We incorporate various ESG  Determining course of action in
funds, some of which have in-built factors while evaluating case of specific ESG issues being
guarantees. Fund allocation is investments. These include and raised about an investee company
tracked on a regular basis and is are not limited to aspects such as:
backed by suitable assets. In  The CIO may also raise any
 Energy and water consumption, specific issues under the RI
addition, our approach towards
air emissions, effluent and framework with HDFC Life’s
responsible investment (RI)
waste management, management Executive
includes core stewardship
environmental incidents, Committee (EC). Certain issues
principles and consideration of
assessing sustainability of may also be referred to the
environmental (E), social (S) and
current product/ service Investment Committee of the
governance (G) factors along with
offerings under the Board under the overall
financial parameters and outlook,
environment segment stewardship responsibilities of
while making investment
decisions. This framework the Committee. Our RI policy can
 Company’s management of
complements the Organisation’s be found at
social issues such as workforce
philosophy of achieving https://brandsite-static.hdfclife.c
diversity, attrition, health and
sustainable growth. om/media/documents/apps/Res
safety issues, relationships
ponsible_Investment_Policy.pdf
with local communities, data
Responsible Investment (RI)
security and privacy, customer Risk Management
Framework
orientation amongst others
Our investments are subject to a One of our key focus areas is
 Good governance practices such appropriate risk management to
detailed ESG evaluation
as board composition, audit contain volatility of earnings and
framework comprising
quality, financial disclosures, to maintain balance sheet
fundamental, quantitative and
anti-corruption policies strength even in stressed market
qualitative parameters, to analyse
the sustainability of businesses of conditions. We continue to rank
The scope of and weightage
investee companies. amongst top 3 private players, in
assigned to various ESG factors is
terms of absolute assets under
reviewed periodically. A prescribed
We have built a framework to management of Rs. 1.7 trillion.
report format for evaluating
employ an in-house methodology With respect to credit risk, we
individual investments has been
to compute ESG scores for have a robust investment policy
put in place. Key ESG issues are
current/prospective investments wherein most of the debt
highlighted as a part of this
based on publicly available data. investments are made with the
internal research note and
This evaluation framework, along best quality 'AAA'-rated blue-chip
monitored regularly. The Chief
with our research and analysis of issuers. Over 98% of the debt
Investment Officer bears the
the companies, helps in making investments are made in
primary responsibility of ensuring
informed decisions for our Government bonds and AAA rated
alignment with RI framework. The
investment portfolio. securities as on March 31, 2021.
key responsibilities of the CIO are:
23
Diversity, Equity and Inclusion

 Human Capital Development  Compensation Philosophy
 Diversity, Equity and Inclusion  Employee Engagement
 Talent Acquisition  Communication Platforms
 Employee Training  Safe and Healthy Workplace
 Performance Management  Promoting Responsible Behaviour
24
Human Capital Development We strive to provide a safe and We strive to:

healthy work environment to our
At HDFC Life, we believe that  Provide equal opportunity in all
employees, where all employees
people are the driving force aspects of employment for all
have the opportunity to reach
behind our success. Our people employees and applicants. To
their full potential and contribute
processes focus on right hiring, provide a workplace free from
to HDFC Life’s business success.
development for higher any form of discrimination
We are committed to embedding
productivity and creating an
equity and inclusion in all our  Foster a congenial &
engaged talent force with
practices. We aim to establish an harmonious work environment
digitization at the core. We believe
inclusive culture based on our based on professionalism,
that ‘values’ are the most critical
values framework, which honesty and integrity, as well as
elements that reflect the conduct
celebrates diversity, and is free high moral and ethical
and ethical practices of an
from discrimination. We launched standards, where people feel
organisation. Our Organisation’s
‘Celebrate You’, a diversity, equity comfortable and respected,
values, in conjunction with clearly
and inclusion (DEI) programme, to regardless of individual
identified leadership behaviour,
strengthen our reputation as an differences, talents or personal
enables employees across levels
Organisation that welcomes and characteristics
to deliver their responsibilities
respects diversity. Our transparent
towards internal and external  Promote diverse talent pool
and nurturing culture celebrates
customers in an effective way. We (work profiles designed for
diversity and aims to ensure that
are an equal opportunity employer second career women,
none is treated less favourably on
with a culture of meritocracy and freelancers, specially-abled)
grounds of gender, sexual
performance-based recognitions
orientation, age, race, religion,  Being a LGBTQ friendly
and rewards, where our workforce
creed, colour, national origin or Organisation
is from diverse backgrounds,
ancestry, physical or mental
education and experience. As on
disability, marital status, or
March 31, 2021, we had 20,636
thought process.
employees of which 24% are
women employees.
HDFC Life recognizes the

importance of diversity, equity, HDFC Life presents #MyJobMyTerms
and inclusion. We operate in a
diverse society, and we
understand that our customers as
well as talent pool have diverse
characteristics and different
experiences, needs, and
aspirations. At HDFC Life, we
believe that people are our most
important assets. Our vision
statement defines our goal clearly
– ‘to be the most obvious choice
for All’.
25
Talent Acquisition developmental needs of talent where women employees at

across junior, middle and senior manager grade are mentored
Our talent acquisition framework
management levels. and coached by senior women
is designed not just to build a
leaders in the Organization
robust talent pipeline, but also to Employee Training
create and nurture an employer  We also train employees on
At HDFC Life, we have developed
brand that can attract a diverse consequences of
multiple training modules, to cater
workforce to meet our non-adherence to defined rules
to training needs of each function
requirements. Some of the steps through malpractice training
and individual. We have invested
taken in this direction are: and social media policy training
in digital collaboration tools and
 We have developed alliances adopted a contemporary and  Mandatory data security
with universities and academia progressive learning ecosystem to training is covered under
under a hire-train-deploy model engage with the workforce of “information security
today. awareness"
 Our flagship campus hiring
programme, helps induct fresh  The ‘Skill Up’ intervention, in  We have also rolled out a suite
minds from premier B-schools collaboration with leading of focused training assets to
in India. We also recruit service providers of help employees understand
executive trainees from high-quality learning content, what is unconscious bias, how
B-Schools across the country helps our employees’ upskill to be inclusive, and being aware
and extensively train them themselves on a continuous of the various steps taken to
through a rigorous on-boarding basis inculcate diversity in our culture
program
 ‘Step Up’ and ‘Operations Performance Management
 For niche profiles like actuaries Champions League’ are learning
Performance management system
and underwriting, we hire and certification frameworks for
is deeply entrenched in the
train fresh recruits and large, populous frontline teams
principles of balanced scorecard.
internally grow talent in sales and operations. These
The compensation philosophy
are institutionalized since the
 Through #MyJobMyTerms, we ensures we benchmark ourselves
last few years, and links
aim at tapping skilled talent with the external market in order
learning with career growth
cohorts which may require to stay attractive as a potential
and rewards and recognition
non-traditional working employer. Given that, our business
arrangements. We also offer  The ‘Stride’ programme is used is one where long term customer
flexibility in terms of contracts, to identify, develop and commitment is of high
location and payment terms. promote high potential talent at importance, we give weightage
This initiative also broadens the middle management not just to the topline, but also to
and diversifies our talent pool parameters pertaining to quality
 High performing individuals at
by encouraging women, LGBTQ, of business, along with employee
senior level are identified and
specially-abled individuals, gig engagement and retention when
nominated to attend leadership
workers, etc. to work with us measuring Organisation’s
development courses in
performance. Individual
 We also prioritise internal talent globally renowned Ivy League
employee's performance likewise
mobility and advancement institutes
is measured by the same principle.
 In addition to these, we have All employees are given a detailed
We have institutionalized various
certain initiatives meant performance feedback once a
talent review, employee develop-
exclusively for our women year, while for frontline sales
ment and succession planning
employees, such as the employees and for senior
processes to assess potential and
‘women’s mentoring circle’, management, this activity is
26
conducted twice a year. This Depending on the objectives, two Nomination and Remuneration
ensures timely course correction types of LTIP schemes / Committee approval,
of employees at both, field and instruments have been introduced performance & merit of
strategic levels. in the Organisation employee's future potential
contribution and conduct of the
Compensation Philosophy  Cash based LTIP for middle and
concerned employee
junior management as well as
Our compensation philosophy is
front line sales  Clawback or malus provision:
designed to be competitive and
While the stock option grant
drive market competitive pay to  Stock based LTIP: Employee
process is a rigorous one,
ensure parity and stay attractive Stock Options (ESOPs) for
ensuring merit, fairness and
as a potential employer. Desirable senior management
transparency in the decisions,
business performance leads to
For both LTIP schemes following the stock options are cancelled
higher bonuses and increments at
are the salient features: on account of misconduct or
the end of the year and consistent
breach of company policies or
good performance is encouraged  LTIP is granted to employees terms of employment by a
through incentives and other city exceeding performance recipient. Additionally,
based bonuses. It is also important expectations. In case of ESOP resignation from services of the
to note that the annual bonus grants, additionally employee’s Organisation may also lead to
pay-outs of the senior leadership potential and business cancellation of stock options.
levels is linked to both individual criticality are also critical
and Organisation’s performance factors taken into consideration Employee Engagement
that is measured on a balanced
 All LTIP schemes have a vesting Under the employee engagement
scorecard, which covers the
period of two years, that initiatives, we come together to
Company’s performance on
encourages better retention share the spirit of festivals and
financial, market, customer,
and performance from special occasions like a family. We
people, sustainability and
individuals enrolled in the care not only for our employees
operational aspects.
scheme but also for their families. Last
Long-Term Incentive Pay (LTIP) year, when all of us were
Employee Stock Options (ESOP) operating virtually, we launched a
We have LTIP schemes for
Recipients of employee coverage first of its kind painting
employees across levels and
in ESOP schemes is based on the competition for the children of
categories.
following broad criterion: employees, called ‘Little Strokes’,
These schemes have been which helped us build an
introduced with the following  All stock option grants are emotional connect with our
objectives: based on recommendation and employees’ families. We also
approval of the senior launched ‘HDFC Life Got Talent’, an
 Retain the existing employees management and Nomination innovative and engaging platform
and also to attract the best and Remuneration Committee for our employees to display their
talent respectively diverse talents. To commemorate
 Encourage good performers to our 20 years of existence, the
 While the senior leadership of
maintain their performance annual event ‘Sparsh’ was
the Organisation is eligible for
over a long period conducted on a scale never seen
stock option grants, however,
before. Leveraging the current
the ESOP scheme is
 For senior leadership levels, work from home scenario, all our
broad-based with the inclusion
encourage them to contribute 20,000 plus employees and their
of a select set of middle and
towards the overall corporate family members were invited to
junior levels, based on
growth and profitability over a join us in this gala event, which
sustained period of time
27
also saw the re-launch of the  CEO communication is employees, customers and
Values program by our MD & CEO. conducted once every quarter investors, HDFC Life strives to
at the head office, while maintain a healthy and productive
We have taken various initiatives
employees in other offices view work environment. We maintain
to provide employees with
it online compliance with all applicable
work-life balance, so that they can
laws to help in maintaining a
take care of their responsibilities  Other interventions, such as
secure work environment. We are
and nurture their passion. We ‘just conversations’, ‘senior
committed to maintaining a
have flexi shifts, work from home, leadership digital connect’,
workplace that is free from
sabbaticals on need basis, ‘manager musings’, ‘leadership
violence, harassment, intimidation
amongst others. townhalls’ etc., offer multiple
and other unsafe or disruptive
avenues of interaction for our
 To support women colleagues conditions due to internal and
employees and leadership
for their life stage needs and to external threats. We provide
build a more inclusive  ‘Smart talks’, a peer-to-peer required safeguards to the
workplace, we provide learning forum, has been employees, as and when needed.
twenty-six weeks of fully paid successfully deployed, with
We also evaluate our progress in
maternity leave employees benefitting from the
reducing/preventing health
hitherto tacit knowledge of
 All male employees, related risks by studying trends at
leaders and experts
irrespective of tenure are frequent intervals and
entitled to five days of fully paid  These virtual sessions have subsequently taking measures like
paternity leave in the event of a witnessed enthusiastic employee well-being program to
child birth participation from employees mitigate such risks.
and experts on topics ranging
 Some of our women centric Flexible Working Hours
from technology, online
initiatives that we are proud of
marketing, lessons for life, team Taking a step towards providing
are Punarāgaman programme
building, etc. the employees with a perfect
(return to work programme for
work-life balance so that they can
those women who have taken a  As a result of our proactive
take care of their responsibilities
sabbatical due to personal efforts and innovative practices,
and nurture their passion.
priorities), ‘women mentoring we have been able to
circle’ for our women colleagues continuously improve our Hybrid Work Model
in manager grade, maternity gender diversity (from 18% in
During situations similar to what
transition programme, energy & 2015 to 24% in March 2021)
we are currently witnessing
resilience workshops and
 Employee endorsement is across the globe due to the
speaker series
captured through ‘E-sat survey outbreak of the novel coronavirus,
 Gig workforce options where - voice of the employee’ - an all employees have been given
women employees can join us anonymous employee option to work from home. We
from anywhere at their own satisfaction survey that is have developed systems and
pace conducted annually. In FY processes to ensure that our
2020-21, the employee survey employees can work from the
Communication Platforms
had a 93% response rate safety of their homes, without
Apart from the digital putting themselves at risk. This
Safe and Healthy Workplace
communication platforms, we also serves as a testament to the
provide other forums for Safety of people at the workplace concern we have for our
employees to engage with the is one of the primary concerns of employees. Apart from this,
leadership. HDFC Life. To meet our employees who have certain
responsibilities towards special personal circumstances /
28
needs under certain categories Paternity Leave those enumerated in the United
are permitted to work from home Nations Universal Declaration of
All male employees, irrespective
on a full time basis for either Human Rights and the
of tenure, get the benefit of a fully
durations of time: a continuous International Labour
paid paternity leave, in case of
stretch of 12 weeks, or 3 days a Organization’s Declaration on
child birth or adoption.
week for up to 6 months. This Fundamental Principles and
category includes but not limited Promoting Responsible Rights at Work (‘ILO Declaration’).
to - employees with young Behaviour We support the United Nations
children; mothers and single Guiding Principles on Business
fathers with a child of up to 6 Code of Conduct and Human Rights (‘UN Guiding
years of age; Single parents It sets forth the guiding principles Principles’), including the
(mothers & fathers) at the stage on which the Organisation corporate responsibility to respect
of adoption; Employees who have operates and conducts its daily human rights. Our support for
a chronic illness or have a business with its multiple these fundamental principles is
dependent needing care. This will stakeholders, government and reflected in our policies and
support our employees balance regulatory agencies, media or any actions towards our employees,
work and personal life and other such stakeholders. Every suppliers, clients, communities
perform their duties efficiently. employee is required to confirm and the territories where we do
that they have read and business. We also have dedicated
Maternity Leave
understood the Code of Conduct grievance mechanism in place for
To support women colleagues in by taking a pledge. mitigating human rights risks and
their life stage needs and to build https://brandsite-static.hdfclife.co empowering our workforce.
a more inclusive workplace, we m/media/documents/apps/Code
provide 26 weeks of fully paid %20of%20Conduct.pdf
maternity leave. Our maternity
transition programme assists Human Rights Policy
expectant mothers, their line HDFC Life supports the protection
managers, and the respective and elevation of human rights and
business HR teams in adjusting to is guided by fundamental
this change and facilitate a principles of human rights, such as
smooth journey into motherhood.
29
Holistic Living

 Customer Centricity
 Providing Long-term Capital
 Inclusive Growth / Financial Inclusion
 Fulfilling our Corporate Social Responsibility
 COVID-19 Response
30
Holistic Living
Customer Centricity to our Group customer segment, Re-imagining life insurance

which provides life and critical business
Customer-centricity is one of our
illness cover to employees. We
core values and it is our endeavour Our market leading digital
also joined hands with HDFC Ergo
to provide a superior customer capabilities enables reach, agility
to offer HDFC Life Corona Kavach.
experience across all our and efficiency. We built platforms
With a view to maintaining a
touch-points. When it comes to and ecosystems, for seamless
balanced and profitable product
customer service, it is no longer partner integration and
suite, participating savings,
enough for insurance companies simplifying sales and service
non-participating savings, ULIPs,
to aspire to outperform journeys for our customers and
protection and annuity accounted
companies within their own partners.
for 34%, 31%, 24%, 7% and 5%
industry. Customers in today’s
of individual APE respectively. Our suite of mobile applications,
digital age are well ‘networked’
Protection and annuity segments ’Insta suite’, help frontline sales
and expect insurers to deliver
contributed to around 20% each teams to on-board customers
customer service that meets the
of total new business premium. efficiently. We continuously strive
standard set by digital service
to leverage our capabilities in
providers across industries like We have designed products to suit
cloud computing, artificial
retail, cab operators or internet the different life stage needs/
intelligence (AI) and robotic
companies. requirements of a customer:
process automation (RPA) for
Product Innovation  Savings – HDFC Life Sanchay speed and ease. Our efficient
Par Advantage, HDFC Life platforms powered by advanced
Rapidly evolving customer
Sanchay Plus, HDFC Life Click 2 analytics, automation and AI
behaviour has spawned the need
Invest etc. enable us to service our partners
for innovative products to provide
seamlessly. We offer bespoke as
the most optimal solutions to the  Retirement – HDFC Life Pension
well as plug-and-play technology
end customer. Product innovation Guaranteed Plan, HDFC Life
integration solutions, based on the
has been one of the key pillars of New Immediate Annuity Plan
digital maturity of our partners.
our strategy and a key etc.
differentiator. We continue to Our early investment in technology
 Protection- HDFC Life Click 2
address the mortality, morbidity enabled us to smoothly transition
Protect Life, HDFC Life Group
and longevity risks of our traditional business touch-points
Poorna Suraksha
customers. to digital modes during the
 Children’s Plan – HDFC Life pandemic, minimising business
Our newly launched products
YoungStar Udaan, etc. impact, ensuring safety of lives
within the non-participating
and helping us stay ahead of the
(HDFC Life Sanchay Plus) and  Combo Plan – HDFC Life curve. We are cognisant of the
participating (HDFC Life Sanchay Sanchay Maximizer cyber-risks associated with
Par Advantage) segments have
 Health – HDFC Life Cardiac care, increased digital adoption and
received good response from our
HDFC Life Cancer care have taken adequate measures as
customers. The Company also
part of our risk management
launched term product in a new
process.
avatar - ‘HDFC Life Click 2 Protect
Life,' which offers the customer
A few illustrations of reimagining insurance:
flexibility to auto balance death
and critical illness cover or receive % Renewal Payments made Digitally (basis premium) 87%
income payouts from age 60. In
% of Claims intimated via Life Easy that were settled in 1 day 100%
addition, we introduced 'HDFC Life
Group Poorna Suraksha' catering No of Robotic Process Automation (RPAs) 280+
31
Holistic Living
Customer Satisfaction FY 2015-16 to 35 in FY 2020-21. This policy defines requirements

to help ensure compliance with
There are specific IRDAI regulatory Besides our regular customer
laws and regulations applicable to
provisions that make it necessary service touch-points like branch
HDFC Life’s collection, storage,
to conduct a 'suitability profiling' of offices, call centres and email
use, transmission, disclosure,
the prospective customer and desks, we have also extended our
retention and deletion of personal
only then recommend some of the customer service touch-points on
data.
relevant insurance plans that digital platforms. Our web portal,
would be best suited for them. mobile app and interactive bots on This policy is applicable to all HDFC
The customer is provided all the various social platforms have Life employees, contractors,
relevant information prior to enabled our customers to avail our vendors, interns, third parties,
consenting to an insurance services on a 24*7 basis, at a time associates, customers and
proposal by way of a customized and place of their choice. business partners who may
benefit illustration which outlines receive personal information from
Voice of Customer (VOC)
the product contours including HDFC Life, have access to personal
aspects like premium paying term A study aimed at capturing information collected or processed
(PPT), policy term (PT), sum customer satisfaction for every by or on behalf of HDFC Life, or
assured (SA), modal premium, interaction at various touch who provide information to HDFC
premium payment frequency etc. points. This helps in identifying Life.
strengths, opportunity areas,
Further, post issuance of the This policy covers the treatment
barriers and drivers of customer
policy, a copy of the proposal form of personal information gathered
satisfaction levels, on a touch
and the customized illustration, and used by HDFC Life for lawful
point as well as an overall level:
which the policyholder would business purposes. This policy
have consented to, at solicitation  Feedback is captured in a brief also covers the personal
stage, is also made available along online survey, sent via SMS. information we share with
with the policy documents for Standard questions, present in authorized third parties or that
future reference. The policy every survey, include overall third parties share with us.
document could be an e-pdf, in satisfaction rating (on a 5-point The company follows zero
dematerialized form, or a physical scale) along with an tolerance policy against the data
policy document, as would have open-ended question to ask for leakage and strict action is taken
been opted by the policyholder. the justification of the given against the persons violating the
The policyholder also gets a 15-30 rating and net promoter score policy as per the fraud risk
day period post receipt of the (NPS) scale. Other questions management policy.
policy document (15 days if are specific to the touch point To access the policy, refer
purchased via offline mode, 30 via which the customer has ‘communication’ section under:
days if purchased via online interacted https://www.hdfclife.com/privacy
mode/opted for e-insurance -policy
account), to reach out to the  The FY 2020-21 exit score
increased by 300 bps compared Providing Long-Term Capital
insurer, to request for cancellation
of the policy and obtain a refund to FY 2019-20.
The Indian insurance industry
of the premium paid, in case there Improvement at overall level was plays a key role in channelizing the
are any disagreements with the led by strong recovery in branch household savings to provide
terms and conditions under the and customer operations long-term capital needs of the
said policy. satisfaction score during the year. country in terms of infrastructure
and housing, along with
Our customer complaints have Customer Privacy investments in Government
been reducing over a period of
The Company has a bonds. As of March 31, 2021, our
time with complaints per 10,000
comprehensive data privacy policy. company has invested about 54%
policies sold reducing from 147 in
32
Holistic Living
of its assets under management financial security for the member’s Policyholder education
in the industries related to family in the event of the
We engage with our policyholders
infrastructure/ housing sector and member’s death.
and through regular
Government bonds.
Group Jeevan Suraksha and Group communication keep them
Inclusive Growth / Financial Term Insurance informed of their policy with us,
Inclusion their rights and duties as a
These are micro-insurance
policyholder,fraud/spurious
Rural and Social Sector products designed for members of
calls/malpractices, available
Obligations micro-finance institutions,
grievance redressal mechanisms,
co-operatives, self-help groups,
We maintain our focus on taking amongst others.
etc., to provide protection against
insurance to rural areas and also
financial liabilities arising from a Fulfilling our Corporate Social
endeavour to tailor our products
family member’s death. These Responsibility (CSR)
and processes to support these
plans can be availed at nominal
regions, considering customer As a responsible corporate citizen,
costs and they cover the
needs. As part of our overall HDFC Life contributes to nation
marginalised communities. We
business, we have achieved the building through its CSR
have covered more than 2 crore
prescribed regulatory targets of projects/programmes, in true
micro-finance consumer lives as
social and rural business. letter and spirit, as enshrined in
part of our group insurance.
the Act. All CSR interventions are
 Rural Business – Achieved
Promoting financial literacy conceived and implemented
21.7%, versus prescribed
through a focussed approach
requirement of 20% of overall When it comes to financial literacy
towards target beneficiaries for
business and awareness about life
generating maximum impact.
insurance, our efforts are
 Social Business – Insured
focussed on educating both The CSR initiatives of the
9,400,794 social lives versus
prospective and existing Company are carried out either in
prescribed 3,062,325 social
customers. Through campaigns, partnership with credible
lives
we make people aware of the implementing agencies or directly
In our pursuit to promote financial need and importance of life through projects executed by
inclusion, we have launched insurance for themselves and project management teams.
insurance products designed for their families.
Contributions made:
the economically weaker sections
Through regular customer
where the premium starts from as  Under education and livelihood:
engagement we keep our
low as Rs. 100 per month. In 11 initiatives were undertaken
policyholders informed of their
addition, there are which benefited 102,009 lives
rights and duties. Below are a few
micro-insurance products that are through access to subsidized
highlights of our insurance
offered through our education and free education,
awareness and literacy program.
micro-insurance agents or our mid-day meal programs in
partner micro-finance institutions. Financial literacy initiatives schools, infrastructural
In line with the Government’s development in schools,
We have tied up with NGO for
social scheme ‘Pradhan Mantri digitization of classrooms, focus
helping us conduct large-scale
Jeevan Jyoti Bima Yojana’, to offer on girl child education by
financial literacy sessions among
the benefits of insurance to the integration into formal
weaker and underprivileged
masses, we launched HDFC Life education, improved teaching
sections of society. Also, we run
Pradhan Mantri Jeevan Jyoti Bima environment and large-scale
on-ground knowledge sessions
Yojana Plan, a pure group term financial literacy programs
with the help of field sales teams
insurance product that ensures
and partners.
33
Holistic Living
 Under healthcare and hearts from Central Armed  Employees are encouraged and
sanitation: 6 initiatives were Police Forces (CAPF). Generous provided with opportunities to
undertaken which impacted amounts were directed towards volunteer and contribute
119,751 lives through clubfoot welfare of war widows and towards various social causes
correction and congenital heart families of soldiers who have for which they pledge. In FY
defect surgeries in children, sacrificed their lives while 2020-21, despite of nationwide
cancer treatment support, large serving the nation lockdown and roadblocks in
scale malnutrition reduction physical volunteering, 120
Other initiatives including
and prevention amongst employees virtually
employee and partner
under-5 children volunteered at pan India level to
engagement:
educate adolescent youth on
 Access to clean drinking water
 Various initiatives were various topics like financial
in villages through water ATMs
undertaken with channel literacy, soft skills, etc. Over
and large-scale health camps in
partners which focussed upon 800 employees are acting as
rural areas
senior citizen welfare, volunteers, as part of the COVID
 HDFC Life undertook a focused preventive healthcare, girl child Squad, to help those in need in
intervention to support war education and mass tree these trying times.
widows and families of brave plantation
34
Special Supplement:
COVID-19 Response
As the COVID-19 pandemic spread across the globe, we quickly invoked our business continuity plan,
keeping in mind the interest of our key stakeholders viz. employees, customers and the community at
large. We set up dedicated national, zonal and regional task forces charged with keeping our
employees and customers safe and our operations running.
We reinforced safety and hygiene protocols across our offices and branches, shielding high-risk employees,
protecting our customers and encouraging work from home. We reflect upon some of these initiatives, which
helped us reshape ourselves, adapt to the new normal and resurge as an insurer of choice, during these trying
times.
Focus on Employees
With our employees working from home, and social As our employees are now returning to the
distancing measures in place, we prioritized the workplace, we have introduced several innovative
continued employee development and engagement measures to help ensure the safety and well-being of
through gamification of our training modules, our employees. An example of the same is the HDFC
webinar series and encouraging digital interactions. Carpool platform, which is a new age, easy-to-use
platform for our employees. This enables them to
Understanding the importance of promoting good
both offer and get rides to the workplace, thereby
health, hygiene and creating a culture of wellness at
providing them with an alternative to public
work, we introduced a number of interventions that
transport.
have been well received by our employees.
We have introduced an online employee roster
We introduced initiatives and platforms to cater to
planning, to manage the number of employees
the wellbeing of our employees, like the ‘Emotional
present at a given time, in light of the various
and Mental Wellbeing Assistance Program’ for mental
government restrictions in place. Further, we
health counselling, the ‘Click2Wellness micro-site’
circulate COVID-19 advisory and awareness mails at
that serves as a one-stop shop for all health and
frequent intervals to help employees manage the
well-being related resources for our employees,
COVID-19 situation and tide over the difficult times.
‘Mindful Morning Movement’ series for mindfulness,
meditation and yoga; ‘Movember Movement’ with In addition to this, all our branches and offices are
focus on men’s health, ‘Walkathon’ focusing on routinely sanitized. Various safety measures and
walking and contributing to a cause. standard operating procedures are being followed to
35
COVID-19 Response
ensure the safety of our

employees and customers.
Focus on customers
The current pandemic has led to
higher awareness around the
need for protection and the
inadequacy of current insurance
coverage. Life insurance has
surely emerged as a prominent
theme to protect one’s family
whilst securing long-term
financial goals. This led to a
significant increase in customer
interactions, albeit with a
difference. The customer’s
preference shifted considerably
from interactions through physical
touchpoints like branches and
in-person meetings to digital
touch-points. This unprecedented
scenario accelerated the need for
us to have a digitally connected,
To limit physical interactions during the sales process, we enabled a first
but physically distanced workforce
of its kind Video & Voice Interfacing Sales Enabler (VVISE) platform for
to serve our customers better.
our sales teams. This enabled them to connect with customers virtually
The investments made over the and complete the sales journey, right from lead generation to proposal
years, as part of our digital login. The platform is device agnostic and has an ability to work on low
strategy enabled to seamlessly bandwidths.
manage our operations. We
Our approach towards 'Service Simplification' continued through FY
enabled a hybrid work from home
2020-21. It is based on six broad tenets – 24*7 availability, instant,
model. Virtual workspaces,
frictionless, accurate, personalised and proactive customer experience.
re-skilling our staff, flexible
Our digital service capabilities can extend a plethora of service options to
working hours and technology
our customers, on a 24*7 basis, without compromising on the social
solutions like cloud telephony and
distancing norms or their safety, despite a surge in service interactions.
virtual private networks allowed
us to deliver our services in a We launched VServ, a video conferencing app, which allows customers
seamless manner, while ensuring to connect with our team and get responses to their queries as well as
that productivity and employee get the requests actioned over a video call. We leveraged Vision AI for
morale remains unaffected. the digital life certificate process. Vision AI authenticates and completes
a liveliness check for annuity customers, within the comfort of their
36
COVID-19 Response
homes. To simplify the revival collected via digital modes. Our goal is provide best-in-class
process for our customers, we customer service, without
Easy Claims, an online death claim
launched the InstaRevival process, compromising on the safety of our
intimation platform helped
which aids the revival of lapsed customers, partners and
customers submit their claim
policies in less than a minute. Over employees. We have taken a host
request online by following 3
96% revivals were done over the of steps at our branches including
simple steps and without any
counter. equipping all service desk with a
hassle. This platform is designed
PVC shield, to ensure social
We also launched a new Digital to provide quick resolution to
distancing between the customer
Avatar ‘Zoey’, which has customers i.e. claim settlement
and our staff members. Masks are
human-like interaction within 24 hours, for low risk
compulsory for everyone in the
capabilities. This augmented claims.
branch and sanitizers are
reality platform is powered by
Our backend processes have also available. Branches are sanitised
artificial intelligence and machine
been enabled by robotic process at regular intervals. Further, we
learning capabilities and caters to
automation, with over 280 have launched multiple campaigns
customer queries instantly. Etty,
process bots deployed across 26 to urge customers to access our
our WhatsApp service bot, helped
different functions, to automate digital service touchpoints, from
over 8 lakh users to get their
manual tasks. This has reduced the comfort of their homes,
queries resolved over WhatsApp
process TATs and improved without risking their health. For
chats. Elle 2.0, our AI powered
accuracy across processes. We this purpose, we have also
chat-bot, handled over 95% of
continue to leverage AI and ML uploaded an FAQ document on our
web-chats digitally on the portal
capabilities on an ongoing basis to customer portal web page, to
while Neo, our virtual assistant on
optimise our processes and guide customers on the number of
Twitter, catered to our tech savvy
introduce innovative services, digital avenues available at their
users for their servicing needs. We
aimed at enhancing customer disposal.
also launched the industry first
experience.
Alexa bot and Google Assistant
bot Ezra to provide a personalized
experience to our customers.
Further, we added new
capabilities to our customer
service portal, My Account, and
our mobile app.
We enabled several digital modes

for customers to pay renewal
premiums ranging from payment
links on our website and app,
payment apps such as PayZapp
and Paytm, getting registered on
BHARAT bill pay system (BBPS) of
various banks. This has led to 87%
of our renewal premiums being
37
COVID-19 Response
Focus on communities
As a responsible corporate citizen, we contributed to the national efforts to mobilise funds and support all the
stakeholders in the fight against the pandemic, to minimise its impact on people. To curb the menace caused by
the novel Coronavirus, we contributed Rs. 7.5 crore to the PM CARES Fund. A nationwide employee voluntary
effort - ‘Ready to Bounce Back’, was initiated to steer our efforts. Our ‘#IndiaFightsCoronavirus - The Time to Act
is Now’ campaign also encouraged employees to contribute to the PM CARES Fund. During the year, HDFC Life
launched a #PromiseWalaDabba campaign to provide meals to Dabbawalas, whose livelihoods were seriously
impacted by the pandemic.
Supporting Frontline Healthcare workers

At the peak of the pandemic, we distributed 400 scrub
suit tops and pants, along with 2,000 N-95 respirators,
to cover 56 patients for COVID -19. High Flow Nasal
Cannula (HFNC) consumable kits were provided to
maintain oxygen levels of COVID -19 patients. Good
quality nutritional meals and supplements were
provided to 50 medical frontline staff. In Birbhum
district, 450 Swastha Sahikyas were provided with kits
consisting of 15 surgical masks, caps and sanitiser.
38
COVID-19 Response
Glimpses of our COVID-19 Heroes
Support to Families Impacted during Veer Naari – Army Wives Welfare

Hyderabad Floods Association
In October 2020, our Hyderabad team pooled in Through this initiative, we supported 234 Veer Naaris
contributions to provide rations to 400 families. Our (War Widows) with an amount of Rs.15,000 each. We
colleagues went beyond the call of duty to support salute the defence forces of our nation for their
people affected by the floods which hit the city unparalleled devotion in serving our motherland.
amidst the pandemic.
39
COVID-19 Response
Glimpses of our COVID-19 Heroes
Helping Corona Warriors, Families and Supporting the Local Administration

Helpers
In Varanasi, through our implementing partner, we
Some of our employees from Khar, Mumbai branch, reached out to more than 1 lakh citizens and local
volunteered during the COVID-19 lockdown. In March communities with relief materials/kits across 25 Red
2020, 500 water bottles, 200 food boxes and 5 fruit Cross Society centres.
packages were distributed. In April 2020, two
months’ ration supplies were provided to 12 families,
and financial support was extended to security
guards. In June 2020, three months’ ration supplies
were provided to 20 families, and financial support
was provided to the housekeeping staff.
Saving New-Borns during the Pandemic Bharat Ke Veer

A two-day-old baby, with a complex congenital As a part of available measures for the benefit of
cardiac condition, was operated at one of Chennai’s armed forces veterans, war widows and their
leading hospitals. With swift transfer, emergency dependents, the Bharat Ke Veer Fund was supported
intervention, and timely surgery, the baby was saved. with Rs. 13 lakh. The money from this fund is utilised
Another new-born baby in Theni, Kerala, was to support the families of brave hearts from seven
diagnosed with a heart condition that could turn fatal forces covered under Central Armed Police Forces
if not treated immediately. The baby was treated at (CAPF).
the same hospital in Chennai and recovered rapidly.
Lending a Helping Hand to Villagers COVID-19 - Lending a helping hand

One of our youth beneficiaries, who is part of our One of our colleagues in Hyderabad distributes 1,500
support system, showed how every individual can do freshly cooked home meals to road side workers on
his/her bit to help out in these difficult times. He weekends. During the lockdown, he with his four
inspired 40 school friends and collected Rs. 5,000. friends and 100 volunteers distributed food packets
With this money, they provided masks to the villagers to over 850 beneficiaries and 1,000 families with
in Khed Gaon, Pune. ration kits.
Swabhimaan Champions
Swabhimaan employee volunteering is the cornerstone to the Organisation’s culture of giving and connecting
with society at large for the employees. Despite the challenges of the pandemic, our employees contributed to
fighting the pandemic (see COVID 19 response section). 120 Striders (employees) virtually volunteered to
mentor adolescent youth on topics like financial literacy and soft skills. Over 800 employees are acting as
volunteers, as part of the COVID Squad, to help those in need in these trying times.
40
Sustainable Operations

 Energy, Emissions, and Water Conservation
 E-Waste
 Other Waste Management Initiatives
 Reducing Carbon Footprint
 Digitisation
41
Energy, Emissions and Water  Installation of sensor-based city forests (including 7 city
Conservation taps at corporate office and forests in FY 2020-21) in
other select office locations suburban Mumbai and
We are developing an internal
Maharashtra, using the Japanese
framework to track and measure E-waste Management
Miyawaki plantation method,
our carbon footprint. In our
We aim to mitigate harmful covering approximately 45,000 sq.
strategy to combat climate
environmental impact of e-waste ft., area with over 50 different
change, we will strive to reduce
and make sure that our e-waste is native species. Till date, HDFC Life
our greenhouse gas emission by
recycled and disposed-off in an has planted a total of 41,695
taking initiatives to monitor and
eco-friendly manner through trees.
reduce our energy consumption.
government certified waste
We expect our per capita Digitisation
disposal agencies. During FY
electricity consumption to reduce
2020-21, approximately 310 Kg of We have reduced our paper usage
on the back of these initiatives.
e-waste was recycled/ by introducing e-forms for
Given the looming danger of water
re-furbished/disposed in an customers and moving to online
scarcity, we are also taking
environmentally controlled documentation. We strive to make
measures to conserve water. The
manner, conforming to the our processes paperless and
Company has taken the following
guidelines of E-Waste green. Our printers are configured
initiatives to reduce the overall
(Management) Rules, 2016. We with default double-side printing
consumption of energy and
have also donated our old and we encourage employees to
conserve water at our branches:
information technology (IT) assets reduce usage of hard copy of
 3 star and above rated to recycling agencies for helping documents to the maximum
appliances used and regular under-privileged sections of the possible extent. We also
maintenance carried out to society. encourage our policyholders to
ensure efficiency opt for demat or dematerialized
Other Waste Management
(i.e. online copy) of their policy
 Replacement of Tube/CFL Initiatives
document. Currently, demat
lights with LED lights (69%
We comply with the Hazardous accounts for 44% of our new
branches currently use LED
and Other Wastes (Management business. In addition, in
lighting)
and Transboundary Movement) accordance with the Ministry of
 Implementation of switch Rules 2016. We discourage usage Corporate Affairs guidelines on
rooms across 384 branches of single-use plastics. Some of the virtual annual general meetings of
resulting in reduced initiatives taken in this direction shareholders, our annual report
air-conditioning usage (both in include usage of biodegradable was communicated digitally to our
running hours and temperature garbage bags, reusable plates, shareholders in FY 2019-20 and
settings), leading to decrease in cutlery, and wooden stirrers. We we expect this practice to
electricity bill units by 14% have also replaced plastic bottles continue in the current year as
and cups with glass bottles and well.
 Replacement of Uninterruptible
cups in our conference rooms.
Power Supply UPS with new
energy efficient devices; Reducing carbon footprint
reduction of UPS capacity by
We intend to reduce our
50% (equivalent to 750 KVA)
operational footprint through our
 Replacement of bottled eco-friendly activities, thus
drinking water with water helping in conservation of
purifiers environment. We have created 17
42
Reimagining the Insurance Landscape

Today's dynamic digital landscape requires
consistent investment in enhancing tech
capabilities.
Over the past few years, the life insurance industry has seen major shifts and
trends and has reshaped itself. Technologies have matured, customer expectation
landscape has changed, there is an explosion of data, insurtech startups have seen
hyper-growth, workforce has been digitally connected because of the pandemic
and there is an increased focus on cyber security.
HDFC Life continues to be a dominant player in such a These customer voices have been translated into five
dynamic environment with its digital strategy major building blocks. Four engines power these
centred around solving for customer voice while blocks and are the cornerstone of HDFC Life’s digital
building technology resilience. Today’s customer is model. Together, these nine blocks are focussed on
asking for a simple journey from purchase to pay-out, responding to the customer needs.
seeks integrated experience across partner
In the past annual reports, we have spoken about our
landscape, wants a 24x7 frictionless service, is
constant focus on developing and sharpening tech-
oriented towards personalised offers and looks at
nology platforms and assets. We have listed some
being nudged in their world.
additions to our repository of digital assets in the
subsequent pages.
1 3 5
Accelerate
SERVICE PLATFORMS
JOURNEY
SIMPLIFICATION Independent
SIMPLIFICATION
for connect and buying /
ACROSS
personalisation servicing
CHANNELS
Fast track DATA-Led

PARTNER Ecosystem
INTEGRATION for decision-
making
2 4
6 7 8 9
Connecting with Create a digital Enable a Hybrid Strengthen
Startups through scalable efficient WORK FROM HOME CYBER SECURITY
FUTURANCE ARCHITECTURE environment for post-COVID world
1. Futurance: A program to collaborate with startups for harnessing cutting-edge technology
43
Technology at the core

During the lockdown, ‘digital first’ became the norm. Digital is no longer a good
to have – it’s now a necessity. Our ethos of leveraging technology and investing
in digital assets, with a focus on customer-centricity, paid off handsomely during
the pandemic – we were able to seamlessly transition to the digital mode of
doing business. A few initiatives which provided impetus to our digital agenda:
VVISE: virtual frontline sales model enables sales Pre-conversion verification chat (PCVC): chat-based
representatives to connect with customers via video calling identification tool allows customers to self-authenticate –
and complete the sales process. VVISE also helps create during FY 2020-21, 51% of the verifications were done
efficiency by offering tele-medicals and having a face2face call through chat PCVC
with a doctor for better underwriting decisions.
SVAR (voice bot for renewal calling) and Cloud telephony for
VServ: Industry’s first video-based phygital mode of service, renewal collections: 95% of policies were renewed digitally
facilitates a web-based video conferencing service that allows
Avatar: bot capable of answering 500+ general queries and
our branch operations staff to service customers and sales
40+ policy specific queries
channels remotely. It is a secured interface that allows
customers and sales teams to easily connect with our branch Alexa-based smart service voice assistant, Elsa bot, capable
team anywhere and get their queries and requests managed of answering 200+ queries
through a virtual interaction. Through VServ, we on-boarded
Insta PRL: enables digital onboarding of agents – 98,000+
2,000+ customers. For our customers who could not travel to
applicants since launch in March 2020
branches due to the ongoing situation, we enabled the virtual
surrender functionality that allowed 1,200+ people to get Partner & Corporate Portals to ensure smooth partner
serviced for their surrender-related requests. Through VServ integration
we also collected 200+ life certificates from our senior citizen
customers thus ensuring their timely annuity payout, and Our technological improvements and advancements are
avoiding a risk to their lives due to Covid . keeping in mind the changing customer expectations of a
simple and transparent interface. We will continue to reach out
to our existing and prospective customers through new-age
technologies.
44
Our Commitment to Sustainable

Development
The United Nations Member States adopted the HDFC Life, over the years has recognised the need for
Sustainable Development Goals (SDGs) in the year inclusive growth. Through its various efforts
2015 with an aim to end poverty, protect the planet undertaken as a part of its business activities and
and ensure peace and prosperity for all by the year corporate social responsibility initiatives, the
2030. Company strives to create value for all its
stakeholders whilst keeping sustainability at the very
The 17 SDGs provide a coherent and holistic
centre. The conscious efforts undertaken by the
framework to balance social, economic and
company to reduce the environmental footprint and
environmental sustainability alongside development,
perform socially responsible business activities are
while bringing the world to several life-changing
aimed at helping the nation in successfully honouring
“zeroes”, including zero poverty, zero AIDS, zero
its commitment to the UN SDGs. The efforts
hunger and zero discrimination against women and
undertaken by HDFC Life ensure a positive
girls.
contribution to at least 10 of the 17 SDGs and we
India along with other countries is committed to this continue working on expanding the scope of our
effort and has confirmed its intent by signing the influence across other goals.
declaration on the 2030 agenda for sustainable
development, comprising of the 17 SDGs. As a leading
life insurance company and a socially responsible
business, HDFC Life is committed to support the
country in meeting its sustainability goals.
45
Our Material Topics

Material topics have a direct or an indirect impact on an organisation’s economic, environmental and
social value creation journey for its stakeholders and society at large. Our leadership team identifies
material topics by engaging with employees across management levels, thereby determining the risks
and opportunities posed to our business.
The top quartile material topics identified for the Company are as follows:
Business Ethics
Brand & Reputation Management
Customer Engagement & Satisfaction
Employee Health & Safety
Materiality Risks & Opportunities

Business Ethics
Insurance is a business of good faith.

Business Brand & Customer Employee
Ethics Reputation Engagement Health & An insurance company “sells a
Management & Safety promise”. Insurance contracts are
Satisfaction long-term contracts and in certain
cases (like protection plans), the
beneficiary may be different from the
policyholder. Trust is therefore more
important in insurance than in most
Customer Risk Management Employee other sectors. The onus is on the
Privacy & Management of the Legal Training & insurance company to disclose all
Data Security & Regulatory Development
Environment material facts in respect of products
at the time of policy purchase and
ensure that all genuine claims are
settled in a timely manner.
Brand and Reputation Management

Product Employee Sustainable Financial
Innovation Recruitment, & Inclusion – One of the key reasons for buying
Diversity and Responsible Access & insurance is to provide financial
Inclusion Investment Affordability security to your loved ones. Life
insurance contracts are long-term
contracts where in the insurer
discharges its obligation of settling
claims after several years of policy
Community Labor Resource Climate purchase. Hence, brand and
Development Practices Consumption Change & reputation are of utmost importance.
& Relations & Waste Green House
Management Gas (GHG) A life insurer needs to build and
emissions nurture a reputation which resonates
with the customers.
46
Our Material Topics
Customer Engagement and Satisfaction in turn drives company performance. Only a

Company which cares for its employees can provide
In the age of ‘instant gratification’, customers expect
good customer service and experience. Hence,
high levels of responsiveness and personalization at
providing a safe and healthy workplace to the
the same time. It is therefore imperative to engage
employees is our topmost priority, especially during
and establish robust customer relationships to drive
these uncertain times.
growth. We constantly strive to identify latent
customer needs to create need-based product As outlined in preceding chapters, we track key
propositions. On various occasions, we have metrics to keep a track of our performance on
introduced first-to-market innovative products material topics. Some of these metrics are – claim
which cater to the evolving needs of our customers. settlement ratio, complaints, persistency, online
reputation management, brand awareness, product
Employee Health and Safety
innovation, service simplification, and customer
A conducive and safe work environment is a key satisfaction score.
factor in building a highly engaged workforce which
Stakeholder Engagement
We aim to create value for all our stakeholders. To

continue delivering sustainable growth, we engage,
develop and strengthen our relationship with
stakeholders and take inputs from them to enhance
business strategy.
KEY STAKEHOLDERS
SHAREHOLDERS
CUSTOMERS EMPLOYEES
& INVESTORS
GOVERNMENT & PARTNERS,

REGULATORY VENDORS & COMMUNITIES
BODIES REINSURERS
47
Response: how do we
Stakeholder Mode of engagement Key expectations
deliver value?
Customers  Corporate website  Need-based and innovative  Create innovative and

products customer-centric products
 Branch assistance
 Data security  Nudge customers to
 Self-serve touch points like
self-service avenues
BOTs, apps, customer portal etc.  Simplified service and
best-in-class customer  Increase operational
 Engagement for claim
experience efficiency through
processing and settlement
automation, data insights
 Easy and quick claim
 Customer satisfaction survey and security measures
settlement
 Augmentation of
touchpoints, both physical
and virtual to improve
availability and reach
Shareholders  Annual General Meeting (AGM)  Value creation  Consistent and predictable
& investors delivery of growth along
 Quarterly earnings call  Risk management
with profitability
 Annual report, public  Adoption of sustainable
 Differentiated business
disclosures and investor business practices
model with multiple
presentation
sources of value
 Investor conference and generation
meetings
 Tangible diversification
 Media interactions benefits of robust risk
management
Employees  Feedback, recognition and  Career development  Fair, transparent & timely
talent management opportunities performance appraisal
process
 Learning & development  Diversity, equity and
initiatives inclusion  Increased employee
engagement,
 Employee engagement,  Fair compensation
mobile-based learning
wellness and safety initiatives
 Regular training program.
 CEO town hall, annual Sparsh,
 Employee engagement  Adoption of holistic
management interactions
approach towards
 Wellness & safety
wellness, physical and
mental health
 Building a talent pipeline
for specific roles through
Succession planning
48
Response: how do we
Stakeholder Mode of engagement Key expectations
deliver value?
Government &  Compliance with regulatory  Sound Corporate  Play a proactive role in
Regulatory requirements, notifications, Governance – Fair dealings, creating awareness about
circulars and guidelines conduct and transparency, need for insurance
timely disclosure
 Regular meetings, seminars  Comply with all the
and participation in industry  Regulatory and legal applicable regulations
forum compliance
 Corporate announcements  Contribution towards
development of industry
 Periodic submissions,
regulatory visits and
interactions
Partners,  One-on-one meetings, annual  Long-term partnerships  Offer compelling value

Vendors & reviews proposition to distribution
 Favorable product and value
Reinsurers partners
 Contracts, e-mails, calls, virtual proposition
interactions  Innovative product
 Ease of doing business and
propositions and market
 Periodic surveys data security
leading digital capabilities
 payment as per terms of to cater to evolving
contract customer needs
 Timely payment for
services
 Digital services and
well-defined information
and cyber security policy
Communities  CSR partnerships and  Work for causes such as  Adoption of sustainable
implementation of CSR related education and livelihood, business practices
projects healthcare and sanitation,
 Working with communities
environmental
 CSR-related disclosures in / weaker sections
sustainability, etc.
public domain
 Employees volunteering
 Community development
 Reduction of environmental opportunities
and growth
footprint
 Sourcing policies for rural
 Employee volunteering
areas
 Engaging with vendors
employing less privileged
and rural resources
49
Way Forward
In the current backdrop of heightened uncertainty, ESG has become an integral part of doing business
and for long-term value creation. We aim to improve our ESG performance by continuing to refine and
strengthen the following aspects of our business:
 Follow sound governance practices, prudent risk  Deliver innovative and need-based products and
management strategy and comply with all services to our customers with the aim to make
applicable laws and regulations our society financially protected
 Focus on creating value for our employees by  Invest in new age technology with a view to
adopting best practices in the area of talent simplifying the buying journey, enhancing
management, learning and development customer experience whilst creating new product
opportunities and employee engagement propositions
 Contribute to the society via various CSR  Strengthen our responsible investing (RI) strategy
initiatives in areas of education and livelihood, by increasing our engagement with investee
health and sanitation, environment and response companies on their ESG practices and deliver
to disasters such as the current pandemic consistent risk-adjusted returns to our customers
 Evolve our environment strategy to reduce our

carbon footprint while judiciously utilizing
resources
50
Feedback
Thank you for your interest in this Report. Your feedback will help us to improve our overall ESG performance
and disclosure. If you have any questions or feedback, please contact our ESG team or write to us at the
address below:
Registered Office
13th Floor, Lodha Excelus, Apollo Mills Compound,
N M Joshi Marg, Mahalaxmi, Mumbai - 400 011
Tel. : 022-6751 6666
Fax : 022-6751 6861
CIN : L65110MH2000PLC128245
Corporate Office
12th, 13th & 14th Floor, Lodha Excelus,
Apollo Mills Compound, N M Joshi Marg,
Mahalaxmi, Mumbai - 400 011
Tel. : 022-6751 6666 | Fax : 022-6751 6861
Email : investor.service@hdfclife.com
Website : www.hdfclife.com

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ENVIRONMENTAL,

HDFC Life Insurance Company Limited

Our ESG Strategy 11

Ethical Conduct 13 Energy, Emission and Water

Our Material Topics 46

Investment Framework Stakeholder Engagement 47

Diversity, Equity and Inclusion 24

Human Capital Development

NO. OF POLICIES CLAIM

NO. OF CLAIMS VALUE OF NO. OF LIVES

Overall 2.9 Overall Over 3,000 Overall 4.0

NO. OF TREES ENVIRONMENT ENERGY EFFICIENCY

CSR SPENDS LIVES IMPACTED WAR WIDOWS /

EMPLOYEE PM CARES FUND COVID RELIEF

Overall 1,000+ Overall 7.5 Campaign Dabbawala

MD & CEO’s Statement

The pandemic tested our

MD & CEO’s Statement

MD & CEO’s Statement

adopted the strategy of ‘pause, assess, and react’. We

About HDFC Life

The Values Framework ‘EPICC’ (Excellence,

Our Approach to ESG Reporting

Our business is to provide a financial safety-net to

Environment: Our objective is to contribute towards

Social: HDFC Life plays an important role in addressing the

Governance: We aim to build the foundation of our

Our ESG Strategy

5 Pillars of ESG Strategy

Growth opportunity: Under-penetration and favorable demographics

4,129 Huge opportunity to

Life expectancy (Years) Population composition (Bn.) India’s insurable

1. Penetration as measured by premiums as % of Gross Domestic Product (GDP)

Our Strategic Approach

Governance Structure & responsibility. directors including independent

Emerging Risks We engage in efficient tax evaluating the processes and

Our Strategic Approach

Investment Philosophy Our primary reliance is on  Policy commitment, revision

Diversity, Equity and Inclusion

Our Strategic Approach

Diversity, Equity and Inclusion

Human Capital Development We strive to provide a safe and We strive to:

Diversity, Equity and Inclusion

HDFC Life recognizes the

Diversity, Equity and Inclusion

Talent Acquisition developmental needs of talent where women employees at

Diversity, Equity and Inclusion

Diversity, Equity and Inclusion

Diversity, Equity and Inclusion

Our Strategic Approach

Customer Centricity to our Group customer segment, Re-imagining life insurance

Customer Satisfaction FY 2015-16 to 35 in FY 2020-21. This policy defines requirements

ensure the safety of our

We enabled several digital modes

Supporting Frontline Healthcare workers

Glimpses of our COVID-19 Heroes

Support to Families Impacted during Veer Naari – Army Wives Welfare

Glimpses of our COVID-19 Heroes

Helping Corona Warriors, Families and Supporting the Local Administration

Saving New-Borns during the Pandemic Bharat Ke Veer

Lending a Helping Hand to Villagers COVID-19 - Lending a helping hand

Our Strategic Approach