Custmar awareness of HDFC Bank

SAAB MARFIN MBA

“A study on customer awareness to determine the

potential market of HDFC Standard Life Insurance

Products and plans”.

1
“A study on customer awareness to determine the potential market of

HDFC Standard Life Insurance Products and plans”.

SAAB MARFIN MBA

INDEX

Chapter-I

1) Introduction

2) Literature Review

3) Statement of the problem

4) Purpose of the study

5) Scope of the study

6) Objectives of study

Chapter-II

1) Organization Profile

2) Organization Chart

3) Sampling

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4) Research Design Data Collection Methods

5) Measuring tools.

Chapter-III

1) Result & discussion with graphs & charts.

2) Summary, conclusion, & a proposed action plan with resource

requirements and projected benefits to the organization.

Chapter-IV

1) Appendix

Questionnaire

2) Bibliography

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INDUSTRY OVERVIEW

THE HISTORY OF INSURANCE:

As with so many things in so many facts of our life, insurance too

was born out of a primal need and shaped by socio economic realities

of the time. The story goes back to around 2100 BC, the time ancient

civilization of Babylon and a business practice called ‘bottomry’. For all

practical purposes a form of marine insurance, bottomry enabled ship

owners to borrow money against their ships to pay for the trip. With

piracy rampant of high seas, traders and seafarers were reluctant to sale

to other lands for fear of their lives and goods. Bottomry gives them

some semblance of security. The arrangement was only if their ship

returned did trader have to repay the loan, along with interest, which

was pegged at an above market rate for risk covered. So, if their ship

failed to make it back they did not have to repay the loan ,there by

covering some or all the loss.

ORIGIN:

With the marine rout being the bedrock of trade and commerce in

those days, the practice of bottomry evolved and spread. With the

growth towns and trade in Europe, medieval guilds (group organized on

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the basses of some common objective like traders) pooled in money to

protect their members from loss by fire and ship wreck, to pay ransom

if they were captured by pirates and to provide burial and support in

sickness and poverty. By the middle of 14th century, as evidences by

earliest known insurance contract (Genoa, 1347) marine insurance was

common among maritime nations of Europe.

Lioyd’s of London the largest marine insurance today, was found

in 1688, in a coffee shop in London. Lioyd’s coffee house became

preferred place for merchants, ship owners and underwriters to transact

business. Insurance develop rapidly with growth of British commerce in

17th & 18th century, and started becoming organized, along the way

going through a period of defaults and closures.

The British bought insurance to India in 1818, replete with

imperialist prejudices. The oriental life insurance company, the first

insurance company in the country, insured only European widows.

British insurers eventually begin insuring Indian lives, but for a premium

that was 15% to 20% higher than that payable by British. It was only in

1870 that the disparity was corrected. Six Indians peeved by this

second-class treatment, set-up Bombay Mutual Life Assurance Society,

and started insuring Indian lives at the same cost of British lives. Social

discrimination, in fact, turned out to be catalyst for Indians initiative in

insurance sector. In 1909, activist Ishwar Chandra Vidyasagar founded

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the Hindu family annuity fund the first instant of a pension-based

investment scheme targeted at Indians.

As had happened in England earlier, a flood of new players and

patchy regulation snowballed into a crisis. Several insurers defaulted on

their contractual obligations to policyholders, citing investment losses,

some even folded-up. The insurance act 1938 started control on

insurance but even they failed to safeguard policyholder’s interests.

NATIONALSATION:

Post-Independence, discontent against insurers reached a

pitch. Business was chaotic ,, foreign insurers were leaving the country,

and Indian insurers, driven by greed and business consideration, weren’

t earning much credibility. The cry for nationalizing insurance grew

louder a move that insurers were, of course, opposed to.

On 19th January 1956, the life insurance business was

nationalized. In one swoop, the government snapped up 245 insurers

and provident societies. Eight months later, the life insurance

corporation of India (LIC) was formed, which took over the business of

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the erstwhile private insurers, and started expanding at a frenetic pace.

Today, this monolith has 2100 branch, 8lakh agents and offers a bevy

of insurance investment products. LIC marketed insurance less has a

risk management tool and more has savings instruments with tax edge.

A look at LIC policy profile shows that 18% of policies in force currently

are protection plans. Insurance cum investment plans account for 60%,

with balance being pure investment plans. Still house holds embraced

these safe investment avenues, with the sum assured (or the total value

of cove) increasing from Rs.1476cr in 1`957 to Rs. 459201cr to 1998

to 1999.

Similar circumstances lead to the nationalization of non-life

(general insurance). As in life insurance per nationalization there were

an inordinately largely number of insurers many of who where notorious

of clams. Non life insurance was nationalized in 1972. General

Insurance Corporation was setup as a holding company, total of 107

private insurers where merged and group to form general insurance

corporation four subsidiaries.

PRIVATISATION:

There were various reasons given by the government to nationalize

the insurance sector was to take insurance to the mass, facilitate the

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flow of long term funds (which insurance companies, by virtue of the

business they are in, have ready access to) into development of

infrastructure in the country, and safe guard the interest of the policy

holders. Towards this end, state insurers did develop the insurance

sector, though most experts believe that these monopolies could have

done much, much more.

In the early nineties is, the government went on a reforms binge

and started loosing controls on Indian industry. In 1993 the government

appointed the Malhotra committee headed former RBI governor

R.N.Malhotra, to draw up a blue print for insurance sector reforms. The

panel submitted its report a year later, recommending privatization,

backed by stiff entry guidelines and stringent regulations, so as to avoid

repeat per nationalization free for all.

The insurance regulatory and development authority (IRDA)

was founded to regulate the sector and over see the process of

privatization. In 2000, the IRDA started giving out licenses, and a year

later, the first of the private players started operation. The wheel had

come full circle.

Under state control, the insurance sector, both life and

non-life ,grew steadily. Still, Indians are not adequately insured and lag

behind most countries. Total insurance penetration (insurance premium

as a percentage of gross domestic product) is dismal when compared to

its economic standing. Just 2% of the population has some of life

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insurance.

Why private insurance are queuing up?

In many ways the re-entry of private insurers has marked Second

Coming for the sector. In just 3 years, the sector has under gone a

make over, offering the fruits of free market, more choice better service,

and quicker settlements, tighter regulations greater awareness. State

insurers have been compelled to get their act together.

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INTRODUCTION OF LIFE INSURANCE :

History of life insurance in India:

The life insurance industry in India dates back to 1818 .when

the Oriental Life Insurance Company set up office in Kolkata in 1823,

the Bombay Life Assurance Company started operations in Mumbai,

India. The Indian Life Assurance Companies Act was passed in 1912; the

Indian Insurance Companies Act 1928 followed this .These acts allowed

the Government to collect data regarding life and non life businesses

conducted by both Indian and foreign insurance companies later the

1928 act was amended and a new act the ‘Insurance Act’ was passed in

1938.

By the mid 1950s, 154 Indian insurers, 16 foreign insurers

and 75 provident societies were operating in the country. The life

insurance business was concentrated in urban areas and was confined

to the higher strata of society. In 1956, the management of these

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companies was taken over the Government of India LIC was formed in

September 1956 through the LIC Act 1956 with a Capital of Rs 50

million .One of the main objectives of forming LIC was to make

insurance cover available to a larger number of people particularly to

the lower segments of society . In 1972, the Government took over

management control of 106 private general insurance companies and

formed the General Insurance Corporation(GIC) over the years , LIC

expanded its network all over the country and become one of the

largest corporations in India .LIC had seven zonal offices 100divisional

offices ,2,048 branch offices and army of agents totaling 6,28,031.

Growth in Indian insurance industry was minimal in the

1960s and 1970s because of low sayings and the low level of literacy. In

addition the insurance industry lacked sufficient funding and

infrastructure .However changes in the economy in the 1980s, such as

growth in the rate of industrialization improvement in infrastructure the

capital markets increase in the savings rate and substantial capital

formation resulted in tremendous growth in the life insurance industry

over the years LIC launched several group insurance and social security

schemes to enhance its reach in the rural areas.

What is life insurance?

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Life insurance is a form of insurance that pays monetary

proceeds upon the death of the insured covered in the policy.

Essentially , a life insurance policy is a contract between the named

insured and the insurance company wherein the insurance company

agrees to pay an agreed upon sum of money to the insured’s named

beneficiary so long as the insured’s premiums are current.

People take out life insurance policies for a number of

reasons. Such insurance provides security to family members upon the

loss of a loved one for instance if the primary wage earner dies in his or

her prime the death benefit received from a life insurance policy will

assist the surviving family members in overcoming the burden of the

tragic loss . Life insurance can be purchased by individuals but is also

offered as a perk by many employers .Often times large employers and

government employers offer group life insurance at no cost the

employee . Should the employee wish to obtain additional life insurance

from the employers insurance company they can usually do so at

reduced rates.

The cost of life insurance varies depending on such factors as

the insured ‘s age health and occupation . For example the premium for

a 25 year old male non-smoker in excellent health will be far less

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expensive then a similar policy for a 65-year –old male smoker .

similarly a sky dive instructor would have to pay much higher premiums

for life insurance then would a librarian.

Life insurance is available in a number of different forms to

fit the tastes of the proposed insured some of the typical forms of

insurance policies include whole life variable life and term life .Term life

insurance policies begin with low premiums during the initial stages of

the policy and these premiums increase steadily as the insured grows

older .There is no cash built-up in a term policy and accordingly the

death benefit will not increase.

With whole life and variable life insurance a portion of

premium pays for the insurance and the remainder serves as a tax-free

investment .A whole life policy sets a premium at the beginning of the

policy and that premium does not change over the life of the policy .

This form of insurance allows for a cash of the policy or it will simply

serve to increase the death benefits in the end.

In a variable life product, the premium remains the same

over the life of the policy , and there should be a cash build-up as long

as the various mutual funds selected by the insured perform well.

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What is an insurance premium:

An insurance premium is the actual amount of money

charged by insurance companies for active coverage .An insurance

premium for the same service can very widely among insurance

providers which is why experts strongly recommend getting several

quotes before committing to an insurance policy .Insurance agents or

brokers will take your basic information and calculate an insurance

premium estimate based on your answers and other factors. The lowest

quoted price on an insurance premium may be the better bargain but

the level of coverage may also be lower.

The cost of an insurance premium is largely based on

statistics not necessarily on individual habits or history .A 22-year –old

male seeking car insurance for a sports car can often anticipate a

higher insurance premium than a 45-year-old women driving a

mid-size sedan. Both may have excellent driving records but the

insurance company considers a younger driver in a faster car to be

more at risk for accidents. Therefore the insurance premium quotes will

be noticeably different. In general a more expensive or faster car will

cost more to insure simply because owners of those vehicles TEND to

drive faster.

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The same philosophy holds true for medical insurance

premium costs .Non-smokers statistically live healthier lives then

smokers ,for example Construction worker may have more serious on

the job accidents than accountants . A55-year-old lumberjack who

smokes may be charged a higher health insurance premium than a

30-year-old non-smoker working in an office conversely an insurance

premium may be reduced if the policyholder changes his or her habits

and life style.

An insurance premium is generally collected in monthly or

semi-yearly payments .If the policyholder fails to make a scheduled

payment the insurance company can choose to cancel the policy entirely.

This is often referred to as a lapsed policy .Either the customer will pay

the balance of the insurance premium and become reinstated or the

policy will become null and void. Because the billing cycle can be

lengthy it is not unusual for policy holders to forget to make a

payments before the policy lapses.

An insurance premium is always in a state of flux Rates can

go up or remain stable between billing cycles .An accidents claim can

dramatically changes the insurance premium rate of the claimant

especially if the accidents report show the policy holder was at fault .

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Because most states now have a mandatory minimal insurance coverage

law for drivers there may be no other choice but to pay the increased

insurance premium or find another company willing to a higher risk

driver .Insurance agencies are for profit businesses , so they will make

every effort to recoup their losses after a pay-out . Paying an insurance

premium may seem like a waste of money ,but knowing your expenses

will be met after an accident can bring peace of mind .

INDIAN FOREIGN COUNTRY INSURER WEBSITE

PROMOTER PROMOTER

Bajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.c

Life Insurance o.in

ICICI Prudential USA ICICI iciciprulife.co

Prudential m

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Life Insurance

HDFC Standard UK HDFC hdfcinsurance

Life Standard Life .com

Insurance

Vysya Bank ING Group Netherlan INGVysya Life ingvysyalife.c

ds Insurance om

SBI Cardif(arm Canada SBI Life sbilife.co.in

of BNP Insurance

paribas)

TATA American USA Tata-AIG Life tata_aig.com

Internationa Insurance

l Group

Dabur India Aviva Plc Aviva Life avivaindia.co

Insurance m

Aditya Birla Sun Life Canada Birla Sun Life birlasunlife.c

Group Insurance om

Literature Review:

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The project report on “A study on customer awareness to

determine the potential market “HDFC Standard Life Insurance Plan” in

Dharwad. I through under took the project by the help of “HDFC

Standard Life Insurance Plan” Ltd. Sales development manager Mr. Moin

Lohani

Body of the Report:

Primary data was collected by administration questionnaire of

100 customers. The questionnaire was specially framed to meet the

requirement of the survey and the following details.

Direct contact was made with the respondents through random

sample to collect the needful information with reference to our

objective as per to meet the survey requirement.

Interview technique:

Direct personal interview was conducted throughout project

using direct structured and self administrative questionnaire.

Conclusion & Recommendation:

Analysis was based on the result of the research conducted and

the recommendations are based on the analysis.

Limitation :

The major limitation of the project was time frame.

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STATEMENT OF THE PROBLEM

“A study on customer awareness to determine the potential

market of HDFC Standard Life Insurance Products and plans”.

The main core problem in the project is to know weather the

people of Dharwad city is fully aware of “HDFC Standard Life Insurance

Plan”

Purpose of the study:

The study was undertaken to gather information from the

respondents regarding awareness Unit-Linked Youngster plan and the

purpose of the study is to know how many people are aware of “HDFC

Standard Life Insurance Plan”

Scope of the study:

The study will help the company to know the awareness of

“HDFC Standard Life Insurance Plan” in Dharwad city.

The study will help the company to know the customer

profile.

The company can find out where their competitors
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The reason for confining the scope of the research in Dharwad were .

1) One of the fast growing city in educational field in Karnataka and

represents the more scope to the insurance companies.

2) It is also commercial city in the Business field.

Objectives:

1. To study the awareness level of “HDFC Standard Life

Insurance Plan”.

2. To find factor influencing financial planning.

3. To find potential market for “HDFC Standard Life Insurance

Plan”

4. To find vital communication media.

RESEARCH METHODOLOGY

Data source: Primary data (field survey)

Area of Research: Dharwad city.

Research instrument: Questionnaire.

Sample Plan: Personal Interview.

Sample Unit: Businessman, Job holders, etc.

Sampling method: Non probability method, Random sampling method.

Sample Size: 50 respondents.

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Organizational Profile:

HDFC (Housing Development Finance Corporation Ltd.)

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Founded in 1977, HDFC is today the market leader in housing

finance in India and extended financial assistance for more than 19

lacks homes.

HDFC has 120 offices in India presently. It also has one

international office in Dubai and service associate in Bahrain, Kuwait,

Qatar, Saudi Arabia and sultanate of Oman.

HDFC’s asset based amount of over Rs 21450crore. Its financial

strength is reflected in highest safety rating of FAAA and MAAA

awarded by CRISIL ICRA two of India’s leading credit rating agencies

respectively for the last 7 years consequently.

It has a depositor based of over 13 lacks depositors and deposits agent

face of over 50000.

Of the total deposit of 82%are sourced from individual and trust

depositors, which demonstrate the tremendous confidence that retails

investor, have in the company.

HDFC promoted companies have emerged to to meet the investor

and customers needs.

HDFC bank for commercial banking HDFC mutual fund of mutual

fund of products.

HDFC standard life insurance company for life insurance and

pension plan and product and HDFC Chubb for general insurance

product.

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Being an institution that is strongly committed to the highest

standard of quality and excellence , HDFC has own several accolades in

the past few years one such award is “Ramakrishna Bajaj National

Quality Award” for the year 1999.this award was instituted to award

reorganization to Indian companies for business excellence and quality

achievements. HDFC is the only Company so far to receive this award in

the service category.

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Standard Life Assurance Company (SLAC)

Founded in 1825, Standard life has been at the fore front of the

U.K. Insurance Industry for 177 years by combining sound financial

judgment with integrity and reliability. The largest mutual life company

in Europe, it has operations in the U.K, Ireland, Spain, Germany, Austria

and Canada with representative offices in Hong Kong and Chaina.

One of its most recent successes was the launch of standard life

bank on 1st January 1998. The introduction of its innovative mortgage

product in January 1999 had an immediate impact on the U.K. market,

accounting for 11% of the all new lending within the first operational

year. The current deposite base of the bank is U.S. $ 7.1 Bn.

Standard life has total assets of U.S.$ 121 Bn and the new

premium income last year of U.S.$ 9.2 Bn. Its U.K. investment portfolio

accounts for approximately 2% of all shares listed in the London Stock

Exchange.

It is one of the few insurance companies in the world to receive

AAA rating from two of the leading International Credit Rating Agencies,

Moody’s And Standard and Poor’s. The letter described standard life’
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ability to meet its claims obligations of overwhelming under a variety of

economic conditions.

Not surprisingly, standard life is rated as one of the strongest

companies in the world, in financial terms.

The quality and values standard life brings to this venture are

immense. The companies reputation in the U.K. market remains

unrivalled. Besides being voted ‘Company of the year’ for overall service,

for the third consecutive year, standard life was recently voted

‘Company of the Decade’ by independent brokers.

Commissions

The rewards of selling insurance are the lucrative.

The limits on commission as provided in the Insurance Act 1938 are as

under:

Type of Policy Commission Limits

Immediate Annuity 2% of premium

Deferred Annuity 2% of premium

(single premium)

Deferred Annuity 7.5 % of the first year’s

(regular premium) premium

2% of each renewal premium

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All other Cases A maximum of 40 % of the

(Endowment, Money-back, etc.) first year’s premium

A maximum of 7.5 % of the

second year’s premium

A maximum of 5 % of the 4th

& 5th year’s premium

Thereafter, 5% of the renewal

premium

Total commission payable in

the first five years cannot

exceed 60 % of the annual

premium payable on the

policy.

Role of the HDFC Standard Life Agent-The consultant

The Company’s agent would be a professional sales person & would be

given the designation of a “consultant” by the Company.

The consultant would act as a financial advisor to the customer. He/She

would:

Analyze the customer financial requirements
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Help them plan their goals &

Recommend appropriate solution, so that the customer is able to

meet his /her financial objectives in the most optimum manner.

He/She shall provide support to customers on an ongoing basis.

The Company would also support the consultant by providing the

required training & information so that he/she is able to provide

the best service to the customers.

Thus, the Company’s Consultant would have a far wider role to

play than “the typical insurance agent.”

Why should be a consultant with HDFC standard life insurance

Company Ltd.?

HDFC standard life are companies with tremendous financial

strength as endorsed by credit rating agencies. Both enjoy an

excellent reputation in terms of goodwill and efficient customer

service.

Sales training imparted to our consultants will be based on the

finest international practices.

Promote and effective communication on marketing campaigns,

new products.

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The customer service process will be highly leveraged on

technology, whether it is getting a new policy on the books,

paying your commission or setting a claim.

New business will be processed through a local branch network.

Our objective is to get policies on our books and disburse.

Commission paid to you as quickly as possible.

A range of comparative products backed by quick and efficient

service supported by highly trained and customer focused

administration of team. The idea is to designe all our process

around the customers want, when they want it and where tyeu want

it.

Additional recognition for top performers.

Published service turnaround times, which will be used to measures

our performance.

Customer satisfaction surveys will be conducted proactively and the

company will the act on the results.

Scope of Insurance Business in India

The malhotra committee estimated that the insurance penetration

in India is to extent of about 25% of the insurable population.

As of 1999-2000, LIC’s insurance premium income was

approximately rs.32000 crore. It is observed that currently LIC has
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about 10 crore policies in force, which contribute a premium of about

6% of GDS (Grosss Domestic Savings ) of households in India.

Based on a report by the confederation of Indian Industries (CII), it

is anticipated that this figure of 10 crore policies inforce is likely to

double in the next decade.by the year 2010, the premium income is

expected to account for 18% of the GDS,amounting to Rs. 5,12,000

crore.

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About us

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HDFC Standard Life Insurance Company Ltd. is one of India’s leading

private life insurance companies, which offers a range of individual and

group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Ltd.), India’s leading

housing finance institution and The Standard Life Assurance Company,

a leading provider of financial services from the United Kingdom. Both

the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life

insurance industry – all important factors to consider when choosing

your insurer.

Our key strengths Financial Expertise As a joint venture of

leading financial services groups, HDFC Standard Life has the

financial expertise required to manage your long-term

investments safely and efficiently.

RangeofSolutions

We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed

to offer you complete flexibility combined with a low charging structure.

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TrackRecordsofar

Our cumulative premium income, including the first year premiums and

renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

We have covered over 1.6 million individuals out of which over 5,00,000

lives have been covered through our group business tie-ups.

Customer services

We at HDFC Standard Life are committed to maintaining the

highest level of customer service. Interacting with you via this website is

an extension of this commitment.

We have designed the ‘Customer Service’ section keeping in

mind all the information you may want to seek regarding procedures

such as paying your premium, various policy servicing options,

processing a claim and so on. We have also provided relevant forms that

can be downloaded easily for your use.

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Premium Payment

This section gives you all the details that you may require to

pay your premium and make it a hassle free experience. Along with

various premium payment options currently available to you, we have

also drawn up a of details that you will need in case you are paying

through cheque or demanddraft

6 Easy Ways to pay your premium:

Lapsation & Revival

Your renewal premium should reach us by the due date specified

in the premium reminders. It is always advisable to pay on time so that

your valuable policy benefits can continue.

However we do understand that there may be times when you

may not be able to pay the renewal premium by the due date.
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we allow for some additional number of days from the due date, which

is specified in your policy document, to help you make your premium

In case we still don’t receive your premium payments by the end of the

above mentioned period, we would do either one of the following:

“Lapse” the policy – if you haven’t paid premiums for the first 3 policy

years

payment.

Make the policy “Paid up” – if otherwise

Either of these may mean loss/reduction of valuable benefits

of your policy. Please refer to your policy document for details.

We do, however, allow you to restore the original benefits for a

Lapsed or a Paid up policy under certain conditions. Here is what you

would need to do:

Claims

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We at HDFC Standard Life realize that not everyone has the same kind

of needs. Keeping this in mind, we have a varied range of Products that you

can choose from to suit all your needs. These will help secure your future as

well as the future of your family.

Protection Plans

You can protect your family against the loss of your income or the

burden of a loan in the event of your unfortunate demise, disability or

sickness. These plans offer valuable peace of mind at a small price.

Our Protection range includes our Term Assurance Plan & Loan Cover

Term Assurance Plan.

Investment Plans

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Our Single Premium Whole Of Life plan is well suited to meet your long

term investment needs. We provide you with attractive long term returns

through regular bonuses.

Pension Plans

Our Pension Plans help you secure your financial independence even after

retirement.

Our Pension range includes our Personal Pension Plan, Unit Linked

Pension, Unit Linked Pension Plus

Savings Plans

Our Savings Plans offer you flexible options to build savings for your

future needs such as buying a dream home or fulfilling your children’s

immediate and future needs.

Our Savings range includes Endowment Assurance Plan, Unit Linked

Endowment, Unit Linked Endowment Plus, Money Back Plan, Children’s

Plan, Unit Linked Youngster, Unit Linked Youngster Plus .

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We understand that bereavement can be difficult to deal with, especially when

you have to arrange for all the formalities in Case of insurance claims.

If you are the claimant you may get in touch with us by emailing us at and

we will get back to you with that will be required to process a claim.

To help you arrange the documents we have drawn up a list of documents that

you may be required to send along with the claims form. This list is for your

reference only and the complete list may vary for each claim.

Indicative list of documents for Death Claim

Death Claim Form

Original Death Certificate

Original Policy Documents

Medical certificate of cause of death

Cremation or burial certificate (not

mandatory)

Legal evidence of title (In case there is no

nominee)

All past medical reports

Indicative list of documents for Critical Illness Claim

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Critical Illness Form

Claimant Statement Form

Original Policy Document

A copy of medical records at the time of diagnosis illness and for past

illnesses

Doctors/Hospital Certificates (formats will be issued by the claims assessor

only)

Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for

progressive employers who wish to provide the best and most innovative

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employee benefit solutions to their employees. We offer different

products for different needs of employers ranging from term insurance

plans for pure protection to voluntary plans such as superannuation and

leave encashment.

We now offer the following group products to our esteemed corporate

clients:

Group Term Insurance with Riders

Group Term Insurance with Profit-Share

Group Unit-Linked Plan

For Gratuity

For Defined Benefit Superannuation

For Defined Contribution Superannuation

Group Leave Encashment Plan

Rural Products

According to our research findings, there is keenness among rural customers to inv

savings cum protection plan with a term of five years. Especially, if the premium am

is low and affordable. Keeping this in view, we have designed a special product c

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Bima Bachat Yojana.

We have also designed a product called Super Bachat Yojana wherein the rural cust

can save regularly to create a corpus for future needs..

Bima Bachat Yojana

The key objective of this product is to provide cover to economically weaker se

and also to popularise the concept of life insurance and savings in rural areas.

Bachat Yojana is a low premium life protection plan. One time premium f

five-year term is just Rs. 100.

Benefits on death before Maturity: Rs 1,000.

Benefits on Surrender before Maturity

During year Surrender Value (Rs)

1 100

2 120

3 140

4 160

5 180

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Benefits on Maturity

On survival of the life assured to maturity, a benefit of Rs 200 will be paid.

Age Limit : 18 to 50 years

Super Bachat Yojana

Super Bachat Yojana combines the benefits of life protection as well as super savin

helps you save money to meet the expected long term needs. What’s more, it lets

participate in the surplus profits of the company!

Benefits on Maturity

Sum Assured + Reversionary Bonus + Interim and Terminal B

(Bonuses will be declared normally as on 31st March)

Benefits On Death

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During the first year a basic benefit of 80% of premiums paid and after the first

lesser

basic sum assured +reversionary bonuses paid

total premiums paid to date +interest @ 6 % per annum

Tax Benefits

Premiums paid are eligible for tax relief under Section 80 C of the Income Tax

1961

Any sum received is exempt under Section 10[10D] of the Income Tax Act, 1961

Age and Term Limits

Minimum Age at Entry 18 years

Maximum Age at Entry 60 years

Maximum Age at Maturity 75 years

Minimum Term 10 years

Maximum Term 30 years

Minimum Premium & Policy Fee

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Option Premium Fee

Annual 1800 150

Half Yearly 1000 80

Quarterly 550 45

Documents Required for Claim Payments

Fully completed Claim Form

Original Policy document

Original Death Registration Certificate

Original Certificate of Doctor certifying death

Original Certificate of cremation

There are NO exclusions under this product

Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover

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SAAB MARFIN MBA

to members of a Development Agency for a term of one year. On the death

of any member of the group insured during the year of cover, a lump sum

is paid to that member’s beneficiaries to help meet some of the immediate

financial needs following their loss.

Eligibility

Members of the development agency and their spouses with:

- Minimum age at the start of the policy 18 years last birthday

- Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group.

The group to be covered is only eligible if it contains more than 500

members.

Premium Payments

The premium to be paid will be quoted per member in the group and will

be the same for all members of the group.

The premium can only be paid by the Development Agency as a single

lump sum that includes all premiums for the group to be covered. Cover

will not start until the premium and all the member information in our

specified format has been received.

The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per

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SAAB MARFIN MBA

member.

.

Benefits

On the death of each member covered by the policy during the year of

cover a lump sum equal to the sum assured will be paid to their

beneficiaries or legal heirs. Where the death is as a result of an accident,

an additional lump sum will be paid equal to half the sum assured. There

are no benefits paid at the end of the year of cover and there is no

surrender value available at any time.

The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be

passing certain administrative tasks onto the Development Agency. By

passing on these tasks the premium charged can be lower. These tasks

would include:

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Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to

group members

These tasks would be in addition to the usual duties of a policyholder

such as:

Payment of premiums

Reporting of claims

Keeping policy holder information up to date

Training and support will be available to give guidance on how to

complete the tasks appropriately.

Since these additional tasks will impose a burden on the Development

Agency, the Development Agency may charge a Rs. 10 administration fee

to their members.

Prohibition of rebates

Section 41 of the Insurance Act, 1938 states

No person shall allow or offer to allow, either directly or indirectly, as

an inducement to any person to take out or renew or continue an

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SAAB MARFIN MBA

insurance in respect of any kind of risk relating to lives or property in

India, any rebate of the whole or part of the commission payable or any

rebate of the premium shown on the policy, nor shall any person

taking out or renewing or continuing a policy accept any rebate, except

such rebate as may be allowed in accordance with the published

prospectus or tables of the insurer

If any person fails to comply with sub regulation (previous point)

above, he shall be liable to payment of a fine which may extend to

rupees five hundred

Tax Benefits

INCOME TAX GROSS HOW MUCH TAX HDFC STANDARD LIFE

SECTION ANNUAL CAN YOU SAVE? PLANS

SALARY

Up to Rs. 33,660

Across All saved on
Sec. 80C All the life insurance plans.
income Slabs. investment of

Rs. 1, 00,000.

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Up to Rs. 33,660

Across all saved on
Sec. 80 CCC All the pension plans.
income slabs. Investment of

Rs.1, 00,000.

Unto Rs. 3,366
All the health insurance
Across all saved on
Sec. 80 D* riders available with the
income slabs. Investment of
conventional plans.
Rs. 10,000.

Rs. 37,026
TOTAL
Rs. 33,660 under Sec. 80C and under Sec. 80 CCC , Rs.3,366
SAVINGS
under Sec. 80 D, calculated for a male with gross annual
POSSIBLE **
income not exceeding Rs. 10,00,000.

Under Sec. 10(10D), the benefits you receive are completely
Sec. 10 (10)D
tax-free, subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum

Assured and Waiver of Premium Benefit.

** These calculations are illustrative and based on our understanding of current

tax legislations.

Please contact your tax consultant for exact calculation of your tax liabilities.

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Knowledge Centre

Our Knowledge Centre is your personal resource for information that

can help you understand the basics of insurance and help you make an

informed decision about buying a policy.

This section includes details on insurance terms and concepts, helps

you analyze plans for your various needs and lends meaning to some of

the insurance jargon that you may encounter.

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HDFC Standard Life Insurance Company Ltd. is one of India’s leading

private life insurance companies, which offers a range of individual and

group insurance solutions. It is a joint venture between Housing

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Development Finance Corporation Limited (HDFC Ltd.), India’s leading

housing finance institution and The Standard Life Assurance Company,

a leading provider of financial services from the United Kingdom. Both

the promoters are well known for their ethical dealings and financial

strength and are thus committed to being a long-term player in the life

insurance industry – all important factors to consider when choosing

your insurer.

Our key strengths

FinancialExpertise

As a joint venture of leading financial services groups, HDFC Standard

Life has the financial expertise required to manage your long-term

investments safely and efficiently.

RangeofSolutions

We have a range of individual and group solutions, which can be easily

customized to specific needs. Our group solutions have been designed

to offer you complete flexibility combined with a low charging structure.

TrackRecordsofar

our cumulative premium income, including the first year premiums and

renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.

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We have covered over 1.6 million individuals out of which over 5,00,000

lives have been covered through our group business tie-ups.

carriers

HDFC's finest investment is in its Human Resources. It draws its

personnel from many disciplines. They are the building blocks on

which the company's performance & productivity is based" . Mr. H T

Parekh Founder-Chairman, HDFC Ltd.

We welcome you to the family of HDFC Standard Life Insurance

Company Ltd.

This section will help you identify various career opportunities with us,

give you an insight into our work culture and also our various learning

and development initiatives amongst host of other information.

HDFC Standard Life is one of the leading life insurance companies

having a track record of declaring bonuses every year since inception.

We attribute this success to our people, who are our most important

asset. We believe they are a key facet of the company and it is their

contribution that has enabled us to achieve our current status. Since

they deserve the best, our efforts have been to provide them with the

best environment, best culture and best development opportunities

possible.

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Join the Winning Team at HDFC SL

In our quest to be a competitive player in the insurance space,

we are keen to partner with talented, high performing people.

We pride our self for a rich talent base that can successfully

propel the company to even greater heights in an increasingly

competitive platform. So if you think, you have it in you to

emerge victorious in this challenging environment, join us. You

can in order to send us your CV.

Current Opportunities

Accounts & Finance

Group Sales

Human Resource & Administration

Inferior & Technology

Marketing

Operations

Sales-Retail

Sales-Alternate Channel

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Underwriting

Training

Process Management

Agency

Legal & Compliance

Medical

Group Companies

Some of our valued bancassurance partners.

16th May 2006

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HDFC Standard Life records impressive growth

Premium Income grows by 112%

HDFC Standard Life has recorded a strong year on year growth of

112% for the period April-March 2005- 06, in comparison with the

same period 2004-05, with new business first year premium of

Rs.1029 corers. The growth achieved by the company was

considerably higher than the private sector industry average of 84%

for 2005-06. In terms of effective premium income (EPI), which gives

a 10% value to a Single Premium policy, and is an internationally

accepted indicator of an insurance company’s performance, the EPI

grew by 103% from Rs.436 Cr. to Rs. 887Cr.

HDFC Standard Life’s growth in new business is a result of number

of lives insured as well as, an increase in the average premium. For

the individual business, volume measured by the number of lives

insured, witnessed a 32% growth. The average premium also

increased by 62% from Rs.17, 000 in 2004-05 to Rs. 27,500 in

2005-06.

Commenting on the huge potential that exists in the Indian market

today, Mr. Deepak Satwalekar, Managing Director & CEO of HDFC

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Standard Life emphasized, “The GDP has been growing over 8% per

annum and 47% of all savings are now in financial saving forms; 16%

of savings is in the form of insurance premiums and another 16% is

in Provident Fund and Pensions i.e., 32% of India’s financial savings

of the household sector are available to be tapped. Therefore,

growth for the private life insurance industry is inevitable and HDFC

Standard Life is confident of maintaining a steady growth pace.”

Highlighting HDFC Standard Life’s differentiators, Mr. Deepak

Satwalekar said, “Our Company has the most competitive fund

management charge, which is the lowest in equity based products.

Our fund management charge is as low as 0.8% per annum, the key

to enhancing long-term returns. Our other differentiator is that we

believe in offering life insurance solutions to customers based clearly

on their needs, and ‘Disha’ is the way it is done.”

‘Disha’ is a Professional Sales Skills Training Program. The delegates

in this program are introduced to a ‘Need-based’ selling approach,

which can cater to all our clients opting for life insurance solutions.

‘Disha’ is aimed at providing a good service to the client and

building long-term relationships.

Contribution to the individual business premium income by the

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different channels of distribution also changed significantly,

compared to last year. The Corporate Agency and Banc assurance

channel has grown tremendously and currently accounts for 43% of

the company’s business. Speaking on this, Mr. Satwalekar said, “The

strategy to concentrate on activating a limited number of

bancasurance partners rather than going in for signing up a large

number of banks in the early years, also paid off. Our key to

achieving banc assurance success is our belief in a partnership

approach, customized product offerings, highly ethical dealings and

providing good “value to our partners and their customers.”

HDFC Standard Life’s offerings of Employee Benefit Solutions, to the

corporate sector, through Group Business, have met with increased

success with year on year growth of 174%. Commenting on the

strong growth of HDFC SL’s Group Business, Mr. Satwalekar said,

“Our excellent fund performance on retirement products and

increase in our client base with 150 clients cutting across a spectrum

of industries spanning from multinationals to PSUs to the older

business houses, have been the highlights of the year.”

Ongoing training for conventional products and specialized training

for unit linked products for more than 33,000 of our financial

consultants has also helped its customers choose the products best

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suited for their need for protection, savings, investments and

pensions. HDFC Standard Life is the only company requiring its

sales force to undergo specific training in ULIPs before they are

permitted to sell the same. There has been a huge jump in the

number of its Financial Consultants who have qualified to become

members of the prestigious Million Dollar Round Table (MDRT). From

124 members as on 31st December 2004, the number has increased

to 318 members as on 31st December 2005.

HDFC Standard Life continues to have one of the widest reaches

amongst new insurance companies. The Company’s geographical

presence has also increased and covers 169 offices across the

country.

Table Showcasing Financial Results:

Apr-Mar Apr-Mar

Parameters 2004-05 2005-06 % Growth

(Rs. Cr.) (Rs. Cr.)

Total received
668.40 1532.21 129.23
premium

i. New Business 486.15 1028.94 111.65

ii. Renewal 182.25 503.27 176.14

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Effective Premium 436.08 887.30 103.47

Income (Total)

Group Business 49.40 135.15 173.58

Premium (EPI)

News

16th May 2005

HDFC Standard Life declares results for FY 2004-05

Premium Income grows by 132%

HDFC Standard Life Insurance Company Limited declared its annual results

for the financial year ending March 31st, 2005. The company generated

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New Business Premium Income of Rs. 486 Crore in 2004-05 registering a

year-on-year growth of 132%. The growth was primarily driven by the

success of the company's initiative on structured sales processes based on

customer needs and their assessments.

Mr. Deepak Satwalekar, Managing Director & CEO, HDFC Standard Life

attributed this growth to the quality of life insurance solutions offered by

the company. Speaking on the occasion he said, "We are equipped to offer

some of the best solutions to our customers given our wide range of

products and the quality of advice offered by our Financial Consultants and

Corporate Consultants. Training was one of the biggest initiatives we had

undertaken last year. Clearly, this initiative has started giving us good

results."

Highlights of Financial Year 2004-05

New Business Premium Income up by 132% to Rs. 486 Crores. Total

Premium Income of Rs.687 Crores as against Rs. 298 Crores in FY 03-04.

Alternate Channels including banc assurance have recorded an

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impressive growth of over 400% to contribute 37% to the Effective

Premium Income (EPI).

Group business increased to Rs. 32 Crores on EPI basis.

The average premium doubled to Rs 17,000

Company products and services available in 444 locations across the

country

HDFC Standard Life tracks its New Business Premium on the basis of

Effective Premium Income (EPI). EPI is calculated by giving only a 10% value

to a Single Premium policy and is an internationally accepted indicator of

an insurance company's performance. While the company recorded New

Business Premium Income of Rs. 486 Crores, the EPI figure was lower at Rs.

436 Crores. The total premium income (including renewal premium) grew

by 130% to touch a figure of Rs. 687 Crores. High levels of persistency

have resulted in a higher level of renewal premiums. High persistency is an

important contributor to future profitability. The cumulative sum assured

for all policies issued up to March 31, 2005 crossed Rs. 30,000 Crores.

In the first full year of offering unit linked products, the structured sales

process adopted by the company has paid rich dividends. HDFC Standard

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Life offers, both, life insurance policies as well as pension products on a

unit linked platform. Unit linked products accounted for over 50% of the

new business premium. Given the nature of the unit linked product, the

company provided specialized training to a limited number of its Financial

Consultants who were then tested for their understanding of the products

and separately licensed. HDFC Standard Life is unique in stipulating this

requirement for its sales force.

The company's national relationships with HDFC Limited, HDFC Bank,

Union Bank of India, Indian Bank and Saraswat Bank have also helped it

reach out to a larger number of customers across the country. The

alternate channel business grew by over 400% to contribute 37% of the

premium income. The company plans to further strengthen these

relationships through the introduction of products specially designed for

this channel.

HDFC Standard Life continues to have one of the widest reaches among

new insurance companies. The company doubled the number of offices to

104 across the country. Through these offices, the company today services

customer needs in over 440 towns. The company also increased its depth

in existing markets by increasing its Financial Consultant strength from

17,000 as on 31st March 2004 to over 23,000 as on 31st March 2005.

There has been a huge jump, of over 220%, in the number of its Financial

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Consultants who have qualified to become members of the prestigious

Million Dollar Round Table (MDRT). From 38 members as on 31st

December 2003, the number has increased to 124 members as on 31st

December 2004.

During the year, the company expanded its portfolio of products by

launching plans to cover Superannuation and Leave Encashment needs,

thereby offering a wide range of employee benefit solutions to its

corporate clients. Consequently, HDFC Standard Life's Group Business saw

a huge growth over the previous financial year. The New Business Premium

grew to Rs. 49 Crore to cover over 200,000 lives for a sum assured of over

Rs.10,000 Crores.

Given its parentage and its financial expertise, the company is confident of

offering good long-term returns to its policyholders. Speaking on this Mr.

Satwalekar said, "Our investment philosophy and cost consciousness

together will help us in providing good long term growth to policyholders

on their investments with us. This is evident in the performance of our

equity based unit linked funds which have outperformed most indices over

the last one year".

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Accident

Benefit

An add-on with a life policy. It compensates a policyholder in

the event of death or injury by accident

Annuity

An investment option that makes a series of regular payments to an

individual in exchange for a premium or a series of premia.

Appreciate

To grow in value

Asset

Everything owned or due to a person

Asset allocation

How your investments are spread across various asset classes

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Bond

It is like an IOU. By buying a bond you loan money to a company, a

municipality, state or the Central Government

Bonus

The amount paid as return in a ‘with-profit’ policy. The bonus,

expressed as a percentage of the sum assured, is generally declared

every year. The amount is linked to the profits earned by the insurer.

Depending on the time of withdrawal, there are two kinds of bonuses

– reversionary and cash. A reversionary bonus can be encashed only

on maturity of the policy; a cash bonus can be withdrawn when

declared

Budget

It is a tool used to monitor and control expenditures and purchases.

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Capital gains

Profit earned from the sale of stocks, mutual fund units and real

estate. Long-term capital gains arise from assets owned for more

than a year while short-term capital gains are made from assets

owned for less than a year.

Compound Interest

Interest computed on principal plus interest accrued during the

previous periods of the investment

Corpus

The amount of money available with a scheme for investing. If

already invested, the corpus is the current value of the scheme’s

portfolio.

Cost averaging

A strategy that involves investing a fixed amount of money in an

asset class like equity, so that the average cost of acquiring the asset

in the long-term is much lower than that in the short-term.

Cover

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Another word for insurance; it also refers to the amount of

insurance.

Critical illness rider

A rider that provides a policyholder financial protection in the event

of a critical illness

Death benefit

The amount payable to the nominee on death of the policyholder.

The amount paid is the sum assured plus benefits applicable (if any)

less outstanding loans.

Declining term cover

A type of pure life protection insurance policy where the premia

remain the same while the life coverage keeps declining. They are

typically used to cover the life of a person with a pending loan

repayment, like home loan.

Deferred annuity

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An annuity plan where the first annuity payment becomes payable

after a chosen period that exceeds one year.

Discretionary expenses

These are expenses like entertainment, dining out and

non-compulsory travel that you can reduce at will.

Disability / dismemberment benefit rider

A rider that provides for additional cover in the event of disability, or

dismemberment, of the policy holder due to an accident

Dividends

Payments made by companies and mutual funds to shareholders and

unit-holders, respectively, from the income generated by it.

Down payment

The money that a home buyer has to contribute, often at least 15 per

cent of the value of the house, when he is taking a home loan.

Dividend yield

The percentage of dividend paid on a share to the value of the share.

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Emergency fund

The money, in the form of liquid investments in bank savings

accounts, two-in-one accounts and liquid funds, you need, to take

care of emergencies like a job loss that your insurance policies

wouldn’t cover

Endowment plans

An insurance plan that provides a policyholder risk cover and some

return on investment. Usually suitable for the risk-averse

Effective rate of interest

The true rate as against the nominal rate, which may be incorrect.

Estate

All assets of a person, both financial-like stocks, bonds, mutual

funds and fixed deposits and physical-like a house and gold that can

be passed on to his heirs.

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Estate planning

A financial plan to ensure the transfer of all your assets-both

financial, such as fixed deposits and stocks and physical, such as

home, after your death to your heirs without any delay or loss.

Exclusions

Risks and circumstances not covered by a policy. No claim will be

entertained in case of losses arising out of such situations

ELSS (equity-linked savings schemes)

Diversified equity funds that additionally offer a tax deduction under

Section 80C on investments up to Rs.1 lack.

EMI (equated monthly installment)

A borrower must make this payment each month towards repayment

of interest and principal of a loan taken by him.

Equity

The actual ownership interest in a specific asset or group of assets

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Financial planning

It covers the essential elements of a person’s financial affairs and is

aimed at achieving a person’s financial goals.

Fixed deposit

Funds placed on deposit in a bank, company or post office at a fixed

rate of interest.

Fixed-income investment

Any investment that provides a stated percentage of value, say 6 per

cent, on the invested amount.

Fixed rate loan

Interest rate charged on a loan that remains fixed during the tenure

of the loan

Floating rate loan

Interest rate charged on a loan benchmarked to a particular lending

rate. The rate gets adjusted during the tenure of the loan as the

benchmark interest rate changes.

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Group Insurance

An insurance policy taken out by employers to provide life cover to

their employees. Usually the cheapest form of insurance.

Guaranteed additions

The amount paid as returns in assured-return insurance plans.

Guaranteed additions are expressed as a percentage of the sum

assured, with the amount payable being stated by the insurer at the

outset.

Hospital cash benefit rider

A rider that provides cover for hospitalization

Immediate annuity

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An annuity that starts payments immediately after, or soon after, the

first premium is paid

Index fund

A scheme whose portfolio mirrors the progress of a particular index,

both in terms of composition and individual stock weight ages. It’s a

passive investment option, as a fund’s performance will mimic the

index concerned, barring a minor tracking error.

Insured

The policyholder

Insurer

The insurance company

Investments

Assets like fixed deposits, post office savings, bonds and stocks that

are acquired for the purpose of earning a return

Investment risks

The risks that your investments face. These include the risk of

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interest rate fluctuations impacting your debt investments or the

prices of equities going down.

Level term cover rider

A rider that increases the life cover in non-term plans, up to a

maximum of the sum assured on the base policy. The rider offers

death benefit along, and serves the need for extra protection for a

specified time period.

Liabilities

Monies owed, debt and other financial obligations of a person

Life annuity

An annuity that makes regular income payments till the policyholder

is alive. On the policyholder’s death, all income payments cease and

there are no beneficiary benefits.

Liquidity

The quality of assets that can be easily and quickly converted into

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cash without any, or significant, loss in value.

Loyalty additions

Additional benefits (other than guaranteed additions/bonus) paid to

policyholders on maturity of certain investment-based insurance

plans for staying on through its term. Loyalty additions are paid as a

percentage of the sum assured, with the amount depending on the

insurer’s financial performance.

Lock-in period

The period of time for which investments made in an investment

option cannot be withdrawn.

Marginal tax rate

The highest tax rate applicable to a person for paying income tax.

Market value

The monetary value an asset will fetch if sold in the market today.

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Maturity date

The date on which a policy term or fixed-income investment like

fixed deposit or bond comes to an end.

Money-back plans

A variant of endowment plans in which survival benefits are

disbursed through the policy term, rather than in a lump sum at the

end.

Net asset value (NAV)

The simplest measure of how a scheme is performing, it tells how

much each unit of it is worth at any point in time. A scheme’s NAV is

its net assets (the market value of the financial securities it owns

minus whatever it owes) divided by the number of units it has

issued.

Nominee

The person(s) nominated by the policyholder to receive the policy

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benefits in the event of his death.

Participative plans

See ‘with-profit’ policy

Pension Plan

Investment products offered by insurance companies and mutual

funds that required the investor to make defined contributions over

regular periods, mostly every year. The contributions are invested

according to a pre-decided investment plan. At retirement, the

accumulation is paid out through regular pay-out options.

Periodic payment investments

Investment options that have payouts in fixed intervals. For example,

money-back life insurance policies.

Permanent partial disability

Permanent loss of any body part, one eye, one limb or one finger or

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a toe, or injuries that render the insured in capable of earning an

income from the date of the accident onwards from any work,

occupation or profession. While the loss of the body part may be

permanent, its effects on the insured’s life are partial.

Permanent total disability

Permanent loss of use of any two limbs, or permanent and complete

loss of sight in both eyes and any other injury that renders the

insured incapable of earning an income. Cover this risk to secure

your wealth.

Policy

The legal document issued by an insurance company to a

policyholder that states the terms and conditions of an insurance

contract.

Policyholder

The person who buys an insurance policy. Also referred to as the

‘insured’.

Policy term

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The period for which an insurance policy provides cover

Post office schemes

Also known as Small Savings schemes, they are offered at post

offices and carry the highest returns among fixed income

instruments. Government backing makes these instruments like

Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan

Vikas Patra (KVP) and Post Office Monthly Income Scheme (POMIS)

risk-free

Pre-payment

Partial or full repayment of the loan before the end of the tenure.

Premium

The amount paid by the insured to the insurer to buy cover

Recurring deposit

This is offered both in post office and banks where you are required

to contribute a fixed amount ever month. It is a great tool for

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making small and regular savings.

Rest

The frequency at which interest is calculated on the outstanding loan

balance. The more regularly the interest is calculated on the

outstanding loan amount, the lesser the interest costs and cheaper

the loan. For example, monthly rests would make a loan with the

same rate cheaper than a quarterly rest.

Revolving credit

A pre-established credit line, typically in a credit card, against which

a person may borrow to make purchases.

Riders

Additional covers that can be added to a life policy, for a cost

Small savings

See post office schemes

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Sum assured

The amount of cover taken under a life insurance policy, it is the

minimum amount that will be paid on death of the policyholder

during the policy term.

Surrender value

The amount payable by the insurer to the owner of an

investment-based plan in case he opts to terminate the policy after

three years (the mandatory lock-in period) but before its maturity

date. The surrender value will be the premia paid till date minus

surrender charges and any outstanding loans due.

Survival benefits

The amount payable to a policyholder under an investment-based

plan if he survives the policy term. Typically, it is the sum assured

plus returns (guaranteed additions / bonus) accrued.

Temporary total disability

An injury that results from an accident and renders a person

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SAAB MARFIN MBA

immobile or affects his earning capacity temporarily. For instance, a

fracture in the arm or leg that keeps you from work: you may be

mobile but the injury may prevent you from working.

Term plans

A plan that provides life cover for a specified period of time, but no

return on the premia paid

Terminal bonus

A one-time bonus paid on maturity of a with-profit plan

Vesting date

Generally used in the context of pension plans and children’s plans

offered by life insurance companies. It is a date signifying a

milestone in a policy. In pension plans, it is the date from which the

policyholder starts receiving pension. In children’s plans, it is the

date from which a child becomes the owner of a policy taken out in

his name (generally, around his 18th birthday).

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SAAB MARFIN MBA

Waiver of premium rider

A rider that waives the premia payable on the base policy and other

riders in certain circumstances mostly related to death, disability or

injury. An important feature especially for investment products such

as children’s policies.

Wealth

The difference between the values of what you own (assets) and what

you owe (liabilities).

Will

A document that designates the assets of a person-both financial

and physical- to various family members and other heirs.

With-profit policy

An insurance plan in which the policyholder gets a share of the

insurer’s profits ( in the form of guaranteed additions / bonus).

Along with the sum assured.

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SAAB MARFIN MBA

Without-profit policy

An insurance plan in which the policyholder does not get any share

of the insurer’s profits

Whole-life plans

Class of life insurance policies that provide cover through your

lifetime.

BOARD OF DIRECTORS

Mr.Deepak S Parekh:

Is the chairmen of the company. He is also the Executive

chairmen of Housing Development Finance Corporation Limited

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SAAB MARFIN MBA

(HDFC Limited). He joined HDFC Limited in a senior management

posision in 1978. he was inducted as a whole time director of HDFC

Limited in 1985 and was appointed as its Executive Chairmen in

1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh

is the Fellow of the Institute of Chartered Accountants (England &

Wales)

Mr. Keki M Mistry:

Joined the board of directors of the company in December

2000. He is currently the Managing Director of HDFC Ltd. He joined

HDFC Ltd in 1981 and become a Executive Director in 1993. He was

appointed as its Managing Director in November, 2000. Mr. Mistry is

a Fellow of the Institute of Chartered Accountants of India and a

member of the Michigan Association of Certified Public Accountants.

Mr. Alexander M Crombie:

Joined the Board of Directors of the company in April, 2002.

He has been with the Standard Life Group for 34 years holding

various senior Management Positions. He was appointed as the

Group Chief Executive of the Standard Life Investment Limited. Mr.

Alexander M Crombie is the Fellow of the Faculty of Actuaries in

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SAAB MARFIN MBA

Scotland.

Ms. Marcia D Campbell:

Is currently Group Operations Director in the Standard Life

Assurance Company and is responsible for Group Operations, Asia

Pacific Development Strategy & Planning Corporate Responsibilities

and Shared Service Centre. Ms. Marcia D Campbell joined the Board

of Directors in November 2005.

Mr. Keith N Skeoch:

Is currently the Chief Executive of the Standard Life

Investment Limited and is responsible for overseeing Investment

Process and Chief Executive Officer Function. Prior to this, Mr.

Skeoch was working with M/s. James Capel & Co. holding the

Positions of UK Economist, Chief Economist, Executive Director,

Director of Control and Strategy HSBS Securities and Managing

Director International Equities. He was also responsible for Economic

and Investment Strategy Research Produced on a worldwide basis.

Mr. Keith N Skeoch joined the Board of the Directors in November

2005.

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Custmar awareness of HDFC Bank

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