Hdfcsl,Tata Aig, Kotak

7/31/2019 Hdfcsl,Tata Aig, Kotak

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COMPARATIVE ANALYSIS OF HDFCSL,TATA AIG AND KOTAK.

CONTENTS

1 Introduction: Introduction to insurance. Introduction to insurance industry.

2Introduction to company


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INTRODUCTION TO INSURANCE

Insurance is a cover used for protecting oneself from the riskof a financial loss. It is important to understand that risk is apart of any persons life and that it increases as a person

increases in age, responsibility and wealth. Insurance is riskcoverage against financial losses There are mainly twoparties involved in this the insurer and the insured. Theinsurer is the insurance company who will provide the cover to the insured against any financial losses. The insured maybe an individual person or a group of people like anemployer, members of a society, etc.

A policy is the contract between the insurer and the insured,

which states the risks covered, the exclusions, if any, andthe benefits reimbursed on the happening of an event likedeath, illness etc. The policy is paid through what is called apremium, which is a set amount that must be paid by theinsured on a monthly, semi-annual or annual basis. On thehappening of an event like death, disability, fire, etc, for which the insured is covered, the benefit amount stated inthe policy contract can be claimed by the insured.

Classification of InsuranceThere are mainly two broad classes of Insurance Life andNon Life.


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Life insurance products include Term Life policies, whichgive a pure risk coverage of only the death benefit, whereasendowment or money back policies have a risk as well assavings component i.e. death as well as maturity benefit.Also coming under the life insurance umbrella are the Unit Linked Policies in which there is a risk component and asavings component, which is invested in equity, debt or giltfunds, depending on the insurance company.

Non Life insurance products include property or casualty,health insurance or house, fire, marine insurance etc. Thisinsurance class deals with all the non-life aspects of aninsured like his/her house, health, land, office, cargo, etcwhich might bring financial loss.

Principles Of Insurance

Indemnity A contract of insurance contained in a fire, marine, burglaryor any other policy (excepting life assurance and personalaccident and sickness insurance) is a contract of indemnity.This means that the insured, in case of loss against whichthe policy has been issued, shall be paid the actual amountof loss not exceeding the amount of the policy, i.e. he shallbe fully indemnified. The object of every contract of insurance is to place the insured in the same financialposition, as nearly as possible, after the loss, as if he losshad not taken place at all. It would be against public policy toallow an insured to make a profit out of his loss or damage.


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Utmost Good Faith

Since insurance shifts risk from one party to another, it isessential that there must be utmost good faith and mutual

confidence between the insured and the insurer. In acontract of insurance the insured knows more about thesubject matter of the contract than the insurer.Consequently, he is duty bound to disclose accurately allmaterial facts and nothing should be withheld or concealed.

Any fact is material, which goes to the root of the contract of insurance and has a bearing on the risk involved. It is onlywhen the insurer knows the whole truth that he is in aposition to judge (a) whether he should accept the risk and(b) what premium he should charge.If that were so, the insured might be tempted to bring aboutthe event insured against in order to get money .

Insurable Interest - A contract of insurance effectedwithout insurable interest is void. It means that the insuredmust have an actual pecuniary interest and not a mere

anxiety or sentimental interest in the subject matter of theinsurance. The insured must be so situated with regard tothe thing insured that he would have benefit by its existenceand loss from its destruction. The owner of a ship run a riskof losing his ship, the charterer of the ship runs a risk of losing his freight and the owner of the cargo incurs the risk of losing his goods and profit. So, all these persons havesomething at stake and all of them have insurable interest. Itis the existence of insurable interest in a contract of insurance, which distinguishes it from a mere wateringagreement.

Causa Proxima - The rule of causa proxima means thatthe cause of the loss must be proximate or immediate and


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not remote. If the proximate cause of the loss is a perilinsured against, the insured can recover. When a loss hasbeen brought about by two or more causes, the questionarises as to which is the causa proxima, although the resultcould not have happened without the remote cause. But if the loss is brought about by any cause attributable to themisconduct of the insured, the insurer is not liable.

Risk - In a contract of insurance the insurer undertakes toprotect the insured from a specified loss and the insurer receive a premium for running the risk of such loss. Thus,

risk must attach to a policy.

Mitigation of Loss - In the event of some mishap to theinsured property, the insured must take all necessary stepsto mitigate or minimize the loss, just as any prudent personwould do in those circumstances. If he does not do so, theinsurer can avoid the payment of loss attributable to hisnegligence. But it must be remembered that though theinsured is bound to do his best for his insurer, he is, notbound to do so at the risk of his life.

Subrogation - The doctrine of subrogation is a corollary tothe principle of indemnity and applies only to fire and marineinsurance. According to it, when an insured has received fullindemnity in respect of his loss, all rights and remedies

which he has against third person will pass on to the insurer and will be exercised for his benefit until he (the insurer)recoups the amount he has paid under the policy. It must beclarified here that the insurer's right of subrogation arisesonly when he has paid for the loss for which he is liableunder the policy and this right extend only to the rights and


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remedies available to the insured in respect of the thing towhich the contract of insurance relates.

Contribution - Where there are two or more insurance onone risk, the principle of contribution comes into play. Theaim of contribution is to distribute the actual amount of lossamong the different insurers who are liable for the same riskunder different policies in respect of the same subjectmatter. Any one insurer may pay to the insured the fullamount of the loss covered by the policy and then becomeentitled to contribution from his co-insurers in proportion to

the amount which each has undertaken to pay in case of loss of the same subject-matter.

In other words, the right of contribution arises when (I) thereare different policies which relate to the same subject-matter (ii) the policies cover the same peril which caused the loss,and (iii) all the policies are in force at the time of the loss,and (iv) one of the insurers has paid to the insured morethan his share of the loss.


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INTRODUCTION TO LIFE INSURANCE

Life insurance is designed to protect you and your family againstfinancial uncertainities that may result due to unfortunate demiseor illness.You can also view it as a comprehensive financialinstrument as a part of your financial planning offering you savingsand investment facilities along with cover against financial loss.

Modern insurance companies offer a wide range of lifeinsurance policies to meet the needs of a variety of people. Thetwo most common types of policies are term life and whole life . Aterm life policy pays out its face value only if you die during theterm. For example, a $500,000 term life policy with a ten-yearterm will pay your family $500,000 if you die within the next tenyears. The simplest form of a term life policy requires you to make

equal premium payments throughout the term. This is known as alevel-premium term policy, and it is the type of policy that we willquote for you at this web site.

A whole life policy pays out its face value whenever you die.In the early years of a whole life policy, you will pay higher premiums than would be necessary to buy a term life policy.These early overpayments are used by the insurance

company to keep the later payments reasonable. Otherwise,as you grow old, your term life insurance premiums wouldskyrocket. Level-premium whole life policies requireannual payments for your entire life, while limited-paywhole life policies require annual payments for a few years.


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Life insurance is a very important part of personal financialplanning because it is the quickest and easiest source of cash for your family upon your death. Within days, theinsurance company will deliver a check to your designatedbeneficiaries. This provides the money needed for funeralexpenses, as well as for family living expenses.

Young and middle-aged people generally use term lifepolicies to cover expenses that will terminate as they growolder. Term life coverage is often purchased to provide acollege fund, income for a surviving spouse, or repayment of the mortgage. For example, if your children will be educatedand independent in another 13 years, then a 15-year termlife policy will provide for them, even in the event of your demise. Most insurers offer term life policies only at standarddurations of 5, 10, 15, and 20 years, allowing people tomatch the policy term with their family needs

Benefits of life insurance

Protection Investment Saving Pension


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INTRODUCTION TO INDIAN INSURANCEINDUSTRY

Insurance may be described as a social device to reduce oreliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves bysharing risk, attached to individual.

The risk, which can be insured against include fire, the perilof sea, death, incident, & burglary. Any risk contingent uponthese may be insured against at a premium commensuratewith the risk involved.

Insurance is actually a contract between 2 parties wherebyone party called insurer undertakes in exchange for a fixedsum called premium to pay the other party happening of acertain event.

Insurance is a contract whereby, in return for the paymentof premium by the insured, the insurers pay the financiallosses suffered by the insured as a result of the occurrenceof unforeseen events.

With the help of Insurance, large number of people exposedto a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due toaccidental events, are made good.

The domestic insurance industry in India is estimated to bearound US$ 60.5 billion by 2010, of which US$ 35 billionwill come from rural and semi-urban areas. While the lifeinsurance market is expected to grow to US$ 35 billion,


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non-life insurance market will touch an estimated US$ 25 billion.

With the largest number of life insurance policies in force in

the world, Indias insurance sector accounted for 4.1 percent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,far ahead of China where insurance accounts for just 1.7 percent of the GDP and even the US where insurancepenetration stands at 4 per cent of the GDP. One area thatcontinues to cause concern is the number of customergrievances in insurance, especially in a few specific classes.This calls for more transparency in designing the contractwording and on insisting that the applicant is sufficiently

informed about the coverage and more particularly theexclusions. In addition, the legislation itself requires to betransformed to meet the needs of the emerging markets.The Law Commission of India which has gone extensivelyinto the various insurance laws has submitted its report. Thedemand for health insurance covers has seen a healthyincrease, and today the sector is the fastest growingsegment in the non-life insurance industry in India, whichgrew at over 40% last year. It is also emerging as an

increasingly significant line of business for life insurancecompanies. During the last five years, the premium fromhealth insurance products in non-life companies has grownfrom 675 crores in 2001-02 to Rs 3200 crores in 2006-07,almost 5 times its level 5 years back. While this rate of growth appears to be very healthy, it is on a low base, andhealth insurance penetration in the country continues to below. Only about 25 million persons are presently covered forhealth through commercial insurance, in a country of over

1.1 billion people. Overall, the Indian health sector is stillcharacterized by the near absence of any significant riskprotection against major health-related expenditure, asinsurance and other organized forms of payment for healthservices, including ESIS, CGHS and other such schemesbarely constitute a tenth of all health expenditure in thecountry. Almost four-fifths of the health spending in the


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country is private, out-of-pocket expenditure. In theabsence of such protection, the financial impact of hospitalization can be very pronounced, and indeed isreported as one of the leading causes of impoverishment in

the country. Indian insurance companies recorded a 19.9 per cent growthin premium in dollar terms (adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 percent. This rate of growth of the industry looks particularlyimpressive when seen against the fact that the combinedpenetration of both life and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent.

Clearly, the scope for growth is enormous.Led by the Life Insurance Corporation (LIC), the lifeinsurance industry registered a growth of 110 per cent infiscal 2006-07, taking the total business to US$ 19.2 billionfrom the previous years US$ 9.1 billion. The life insurancemarket has grown rapidly over the past six years, with newbusiness premiums growing at over 40 per cent per yearowing to the entry of a host of new players with significantgrowth aspirations and capital commitments.

The total life insurance market premiums is likely to morethan double from the current US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey. Thestudy titled India Insurance 2012: Fortune Favours theBold, expects a rise in premiums between 5.1 and 6.2 percent of the GDP in 2012 from the current 4.1 per cent drivenby greater insurance intensity per capita as the average percapita income increases and rise in penetration in urban andrural areas. The life insurance premium contributions per

capita have jumped from a little over US$ 7 in 1999-2000(pre-liberalisation) to US$ 38.5 in 2006-07.Life insurance penetration in India - which was less than 1per cent till 1990-91 - increased to 2.53 per cent in 2005,and to 3 per cent in 2006-07. While the impetus for growthhas come from both public and private insurers, the numberof players in this segment have also increased to 16 (15 in


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private sector), with Life Insurance Corporation (LIC) beingthe dominant player (market share of over 74 per cent).The general insurance industry grew 11.6 per cent betweenApril and November in 2007-08 with robust performances by

private players. The 13 non-life insurers collected US$ 4.7billion in premium against US$ 4.2 billion in the same periodlast year. While the public sector could increase itspremiums by just 3.57 per cent, 9 private sector playersclocked premium growth of 26.49 per cent. Private sectorplayers market share has grown to about 40 per cent inFY08 as compared to the public sectors 60 per cent.

INSURANCE SECTOR POLICY BY GOVERNMENT

Foreign direct investment up to 26 per cent is permittedunder the automatic route subject to obtaining a licensefrom the IRDA.

IRDA has removed administered pricing mechanism, i.e.de-tariffing in respect of fire and engineering along withmotor insurance of general insurance for premium, effectivefrom 1 January, 2007. The control rates on fire, engineering and workmenscompensation insurance classes has been removed from 1September, 2007.

Some state governments have also taken a dynamic role inthis sector. The Government of Andhra Pradesh after pilotingthe Arogya Sri health insurance scheme in three districtsplans to issue health cards to 18 million BPL (below thepoverty line) families. As a result, about 60 million of theStates 80 million people will have insurance cover. TheKarnataka Government has partnered with the private sector


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to provide coverage at a low cost in the YeshaswiniInsurance scheme. Launched in 2002, the scheme providescoverage for major surgical operations, including thosepertaining to pre-existing conditions, to Indian farmers who

previously had no access to insurance. With less than 10 per cent of the population having somesort of health insurance, the potential market for healthinsurance is huge. A McKinsey-CII report estimates thenumber of potential insurable lives at 315 million. In 2006-07, the fast-growing Indian health insurance business grew40 per cent to US$ 812 million. The sector is projected togrow to US$ 5.75 billion by 2010. Some Developments in The Indian Insurance Industry

follows:

Societe Generale has entered into a joint venture with IndiaBulls Financial Services for a life insurance joint venture inIndia through its French life insurance company Sogecap.

Tata have formed a joint venture with US based AmericanInt. Group (AIG) Max India has formed a joint venture withUS based life insurance company, New York Life.

Indian Farmers Fertiliser Cooperative (IFFCO) has formeda joint venture with Tokio Marine and Fire of Japan to formIFFCO Tokio General Insurance Company.

State Bank o f India has formed a joint venture with Cardiff SA of France (the insurance arm of BNP Paribas Bank) asSBICardiff Life.

ICICI has joined hands with UK based Prudential - ICICIPrudential Life Insurance.

The rapid growth of insurance industry, especially in the lifesegment has brought to the fore a number of issues which isa vital link between the insured and insurer. In order to


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spread the message of insurance to the far corners of thecountry, the IRDA had enlarged the scope of theintermediaries structure from the traditional tied agents tothe corporate agent, micro insurance agent, the

Bancassurance mode and the referral system. Insurers havealso adopted other channels of sales to suit e-selling such ascomputer points at convenient locations, on-line insurancepurchase etc.

These systems have been in place for some time now, someof them for the last eight years. Some of the practices thathave crept into the system in terms of remuneration orreimbursement of expenses or incentive schemes and so on

require a detailed examination to ascertain whether they arein conformity with the provision of the Insurance Act andtheir impact on the acquisition cost.

Nature of industry

Goods and services: The insurance industry providesprotection against financial losses resulting from a variety of

perils. By purchasing insurance policies, individuals andbusinesses can receive reimbursement for losses due to caraccidents, theft of property, and fire and storm damage;medical expenses; and loss of income due to disability ordeath.

Industry organization: The insurance industry consistsmainly of insurance carriers (or insurers) and insuranceagencies and brokerages. In general, insurance carriers arelarge companies that provide insurance and assume therisks covered by the policy. Insurance agencies andbrokerages sell insurance policies for the carriers. Whilesome of these establishments are directly affiliated with aparticular insurer and sell only that car riers policies, manyare independent and are thus free to market the policies of avariety of insurance carriers. In addition to supporting these


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two primary components, the insurance industry includesestablishments that provide other insurance-relatedservices, such as claims adjustment or third-partyadministration of insurance and pension funds.

These other insurance industry establishments also include anumber of independent organizations that provide a widearray of insurance-related services to carriers and theirclients. One such service is the processing of claims formsfor medical practitioners. Other services include lossprevention and risk management. Also, insurance companiessometimes hire independent claims adjusters to investigateaccidents and claims for property damage and to assign adollar estimate to the claim.

Insurance carriers assume the risk associated with annuitiesand insurance policies and assign premiums to be paid forthe policies. In the policy, the carrier states the length andconditions of the agreement, exactly which losses it willprovide compensation for, and how much will be awarded.The premium charged for the policy is based primarily onthe amount to be awarded in case of loss, as well as thelikelihood that the insurance carrier will actually have to pay.

In order to be able to compensate policyholders for theirlosses, insurance companies invest the money they receivein premiums, building up a portfolio of financial assets andincome-producing real estate which can then be used to payoff any future claims that may be brought. There are twobasic types of insurance carriers: primary and reinsurance. Primary carriers are responsible for the initial underwritingof insurance policies and annuities, while reinsurancecarriers assume all or part of the risk associated with the

existing insurance policies originally underwritten by otherinsurance carriers.

Primary insurance carriers offer a variety of insurancepolicies. Life insurance provides financial protection tobeneficiaries usually spouses and dependent children upon the death of the insured. Disability insurance supplies


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a preset income to an insured person who is unable to workdue to injury or illness, and health insurance pays theexpenses resulting from accidents and illness. An annuity (acontract or a group of contracts that furnishes a periodic

income at regular intervals for a specified period) provides asteady income during retirement for the remainder of oneslife. Property-casualty insurance protects against loss ordamage to property resulting from hazards such as fire,theft, and natural disasters. Liability insurance shieldspolicyholders from financial responsibility for injuries toothers or for damage to other peoples property. Mostpolicies, such as automobile and homeowners insurance,combine both property-casualty and liability coverage.

Companies that underwrite this kind of insurance are calledproperty-casualty carriers.

Some insurance policies cover groups of people, rangingfrom a few to thousands of individuals. These policiesusually are issued to employers for the benefit of theiremployees or to unions, professional associations, or othermembership organizations for the benefit of their members.Among the most common policies of this nature are grouplife and health plans. Insurance carriers also underwrite avariety of specialized types of insurance, such as real-estatetitle insurance, employee surety and fidelity bonding, andmedical malpractice insurance.

Other organizations in the industry are formed by groups of insurance companies, to perform functions that would resultin a duplication of effort if each company carried them outindividually. For example, service organizations aresupported by insurance companies to provide loss statistics,

which the companies use to set their rates.Recent developments: Congressional legislation nowallows insurance carriers and other financial institutions,such as banks and securities firms, to sell one anothersproducts. More insurance carriers now sell financial productssuch as securities, mutual funds, and various retirement


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plans. This approach is most common in life insurancecompanies that already sold annuities, but property andcasualty companies also are increasingly selling a widerrange of financial products. In order to expand into one

anothers markets, insurance carriers, banks, and securitiesfirms have engaged in numerous mergers, allowing themerging companies access to each other's client base andgeographical markets.

Insurance carriers have discovered that the Internet can bea powerful tool for reaching potential and existingcustomers. Most carriers use the Internet simply to postcompany information, such as sales brochures and productinformation, financial statements, and a list of local agents.However, an increasing number of carriers are starting toexpand their Web sites to enable customers to access onlineaccount and billing information, and some carriers evenallow claims to be submitted online. Many carriers alsoprovide insurance quotes online based on the informationsubmitted by customers on their Internet sites. In fact,some carriers will allow customers to purchase policiesthrough the Internet without ever speaking to a live agent.

In addition to individual carrier-sponsored Internet sites,several lead -generating sites have emerged. These sitesallow potential customers to input information about theirinsurance policy needs. For a fee, the sites forward customerinformation to a number of insurance companies, whichreview the information and, if they decide to take on thepolicy, contact the customer with an offer. This practicegives consumers the freedom to accept the best rate.

Working conditions / Hours: Many workers in theinsurance industry especially those in administrativesupport positions work a 5-day, 40-hour week. Those inexecutive and managerial occupations often put in morethan 40


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hours. There are several occupations in the insuranceindustry where workers may work irregular hours outside of office settings. Those working in sales jobs need to beavailable for their clients at all times. This accommodation

may result in these individuals working 50 to 60 hours perweek. Also, call centers operate 24 hours a day, 7 days aweek, so some of their employees must work evening andweekend shifts. The irregular business hours in theinsurance industry provide some workers with theopportunity for part-time work. Part-time employees makeup 8 percent of the workforce.

Work environment: Insurance employees working in sales jobs often visit prospective and existing customers homesand places of business to market new products and provideservices. Others working in the industry may need tofrequently leave the office to inspect damaged property, andat times can be away from home for days, traveling to thescene of a disaster such as a tornado, flood, or hurricane to work with affected policyholders and government officials.

A small, but increasing, number of insurance employeesspend most of their time on the telephone working in call

centers, answering questions and providing information toprospective clients or current policyholders. These jobs mayinclude selling insurance, taking claims information, oranswering medical questions.

As would be expected in an industry dominated by office andsales employees, the incidence of occupational injuries andillnesses among insurance workers is low. In 2006, only 1.3cases per 100 full-time workers were reported amonginsurance carriers, while just 0.7 cases per 100 full-timeworkers were reported among agents and brokers. Thesefigures compare with an average of 4.4 for all privateindustry.

Employment:


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The insurance industry had about 2.3 million wage andsalary jobs in 2006. Insurance carriers accounted for 62percent of jobs, while insurance agencies, brokerages, andproviders of other insurance-related services accounted for

38 percent of jobs .The majority of establishments in the insurance industrywere small; however, a few large establishments accountedfor many of the jobs in this industry. Insurance carriers tendto be large establishments, often employing 250 or moreworkers, whereas agencies and brokerages tend to be muchsmaller, frequently employing fewer than 20 workers .

Many insurance carriers home and regional offices are

situated near large urban centers. Insurance workers whodeal directly with the public are located throughout thecountry. Almost all of those working in sales work out of local company offices or independent agencies. Many othersin the industry work for independent firms in small cities andtowns throughout the country .


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Occupations in the industry:About 44 percent of insurance workers are in office andadministrative support jobs such as those found in everyindustry. Many office and administrative support positions inthe insurance industry, however, require skills andknowledge unique to the industry. About 29 percent of insurance workers are in management or business andfinancial operations occupations. About 16 percent of wageand salary employees in the industry are sales workers,selling policies to individuals and businesses. Several othersare employed in computer and mathematical scienceoccupations.

Office and administrative support occupations: Officeand administrative support occupations in this industryinclude secretaries , typists , word processors , bookkeepers ,and other clerical workers. Secretaries and administrativeassistants perform routine clerical and administrativefunctions such as drafting correspondence, schedulingappointments, organizing and maintaining paper andelectronic files, or providing information to callers. Bookkeeping, accounting, and auditing clerks handle all

financial transactions and recordkeeping for an insurancecompany. They compute, classify, update, and recordnumerical data to keep financial records complete andaccurate. Insurance claims and policy processing clerksprocess new policies, modifications to existing policies, andclaims forms. They review applications for completeness,compile data on policy changes, and verify the accuracy of insurance company records. Customer servicerepresentatives have duties similar to insurance claims and

policy processing clerks, except they work directly withcustomers by processing insurance policy applications,changes, and cancellations over the phone. They may alsoprocess claims and sell new policies to existing clients. Theseworkers recently are taking on increased responsibilities ininsurance offices, such as handling most of the continuingcontact with clients. A growing number of customer service


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representatives work in call centers that are open 24 hours aday, 7 days a week, where they answer clients questions,update policy information, and provide potential clients withinformation regarding the types of policies the company

issues.Management, business, and financial operationsoccupations: Top executives direct the operations of anindependent insurance agency, brokerage, or a largeinsurance carrier. Marketing managers direct carriers development of new types of policies that might appeal tothe public and strategies for selling them to customers.Sales managers direct the activities of the sales workers inlocal sales offices of insurance carriers and independentagencies. They sell insurance products, work with clients,and supervise staff. Other managers who work in theircompanies' home offices are in charge of functions such asactuarial calculations, policy issuance, accounting, andinvestments.

Claims adjusters, appraisers, examiners, and investigators decide whether claims are covered by the customers policy,estimate and confirm payment, and, when necessary,

investigate the circumstances surrounding a claim. Claimsadjusters work for property and liability insurance carriers orfor independent adjusting firms. They inspect propertydamage, estimate how much it will cost to repair, anddeter mine the extent of the insurance companys liability; insome cases, they may help the claimant receive assistancequickly in order to prevent further damage and beginrepairs. Adjusters plan and schedule the work required toprocess claims, which may include interviewing the claimant

and witnesses and consulting police and hospital records. Insome property-casualty companies, claims adjusters arecalled claims examiners, but in other companies, a claimsexaminers primary job is to review claims to ensure thatproper guidelines have been followed. Only occasionally especially when disasters suddenly increase the volume of


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claims do these examiners aid adjusters with complicatedclaims.

In the offices of life and health insurance carriers, claimsexaminers are the counterparts of the claims adjuster whoworks in a property and casualty insurance firm. Examinersin the health insurance carriers review health-related claimsto see whether the costs are reasonable based on thediagnosis. Examiners check claim applications forcompleteness and accuracy, interview medical specialists,and consult policy files to verify information on a claim.Claims examiners in the life insurance carriers review causesof death and also may review new applications for lifeinsurance to make sure that the applicants have no seriousillnesses that would prevent them from qualifying forinsurance.

Insurance investigators handle claims in which companiessuspect fraudulent or criminal activity, such as suspiciousfires, questionable workers disability claims, difficult -to-explain accidents, and dubious medical treatment.Investigators usually perform database searches on suspectsto determine whether they have a history of attempted or

successful insurance fraud. Then, the investigators may visitclaimants and witnesses to obtain a recorded statement,take photographs, inspect facilities, and conduct surveillanceon suspects. Investigators often consult with legal counseland are sometimes called to testify as expert witnesses incourt cases.

Auto damage appraisers usually are hired by insurancecompanies and independent adjusting firms to inspect thedamage to a motor vehicle after an accident and to provideunbiased estimates of repair cost. Claims adjusters and autodamage appraisers can work for insurance companies, orthey can be independent or public adjusters. Insurancecompanies hire independent adjusters to represent theirinterests while assisting the insured, whereas public


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adjusters are hired to represent the insureds int erestsagainst insurance carriers.

Management analysts , often called loss control representatives in the insurance industry, assess variousrisks faced by insurance companies. These workers inspectthe business operations of insurance applicants, analyzehistorical data regarding workplace injuries and automobileaccidents, and assess the potential for natural hazards,dangerous business practices, and unsafe workplaceconditions that may result in injuries or catastrophic physicaland financial loss. They might then recommend, forexample, that a factory add safety equipment, that a housebe reinforced to withstand environmental catastrophes, orthat incentives be implemented to encourage automobileowners to install air bags in their cars or take more effectivemeasures to prevent theft. Because the changes theyrecommend can greatly reduce the probability of loss, losscontrol representatives are increasingly important to bothinsurance companies and the insured.

Underwriting is another important management andbusiness and financial occupation in insurance . Underwriters

evaluate insurance applications to determine the riskinvolved in issuing a policy. They decide whether to acceptor reject an application, and they determine the appropriatepremium for each policy.

Sales and related occupations. Insurance sales agents,also referred to as producers, may work as exclusive agents,or captive agents, selling for one company, or asindependent agents selling for several companies. Throughregular contact with clients, agents are able to updatecoverage, assist with claims, ensure customer satisfaction,and obtain referrals. Insurance sales agents may sell manytypes of insurance, including life, annuities, property-casualty, health, and disability insurance. Many insurancesales agents are involved in cross - selling or total accountdevelopment, which means that, besides offering insurance,


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they have become licensed to sell mutual funds, annuities,and other securities. These agents usually find their owncustomers and ensure that the policies sold meet the specificneeds of their policyholders.

Professional and related occupations. The insuranceindustry employs relatively few people in professional andrelated occupations, but they are essential to companyoperations. For example, insurance companies lawyersdefend clients who are sued, especially when large claimsmay be involved. These lawyers also review regulations andpolicy contracts. Nurses and other medical professionalsadvise clients on wellness issues and on medical procedurescovered by the companys managed -care plan. Computer systems analysts, computer programmers, and computer support specialists are needed to analyze, design, develop,and program the systems that support the day-to-dayoperations of the insurance company.

Actuaries represent a relatively small proportion of employment in the insurance industry, but they are vital tothe industrys profitability. Actuaries study the probability of an insured loss and determine premium rates. They must

set the rates so that there is a high probability thatpremiums paid by customers will cover claims, but not sohigh that their company loses business to competitors.

Significant Points

Job growth in this large industry will be limited bycorporate downsizing, new technology, andincreasing direct mail, telephone, and Internet sales,but numerous job openings will arise from the needto replace workers who leave or retire.


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Growing areas of the insurance industry aremedical services and health insurance, and itsexpansion into other financial services, such assecurities and mutual funds.

Jobs in office and administrative occupationsusually may be entered with a high schooldiploma, but employers prefer college graduatesfor sales, managerial, and professional jobs.

Growth of Indian insurance industry

With an annual growth rate of 15-20% and the largestnumber of life insurance policies in force, the potential of theIndian insurance industry is huge. Total value of the Indianinsurance market (2004-05) is estimated at Rs. 450 billion(US$10 billion). According to government sources, theinsurance and banking services contribution to the country'sgross domestic product (GDP) is 7% out of which the grosspremium collection forms a significant part. The fundsavailable with the state-owned Life Insurance Corporation(LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of Indiais covered under various life insurance schemes, thepenetration rates of health and other non-life insurances inIndia is also well below the international level. These factsindicate the of immense growth potential of the insurancesector.

The life insurance industry in India grew by an impressive36%, with premium income from new business at Rs.253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. This report, IndianInsurance Industry: New Avenues for Growth 2012, finds


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that the market share of the state behemoth, LIC, hasclocked 21.87% growth in business at Rs.197.86 billion byselling 2.4 billion new policies in 2004-05. But this was stillnot enough to arrest the fall in its market share, as private

players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in thelast fiscal year (2004-2005) compared to the previous one,its market share came down from 87.04 to 78.07%. The 14private insurers increased their market share from about13% to about 22% in a year's time. The figures for the firsttwo months of the fiscal year 2005-06 also speak of the

growing share of the private insurers. The share of LIC forthis period has further come down to 75 percent, while theprivate players have grabbed over 24 percent.

There are presently 12 general insurance companies withfour public sector companies and eight private insurers.According to estimates, private insurance companiescollectively have a 10% share of the non-life insurancemarket.


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INSURANCE HISTORY

INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players:the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurer s :

General Insurance Corporation of India (GIC) (with effect fromDec'2000, a National Reinsurer)

S.No. RegistrationNumber

Date ofReg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
http://www.licindia.com/http://www.licindia.com/http://gicofindia.in/http://gicofindia.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.metlife.co.in/http://www.fg-life.in/http://www.idbifortis.com/http://www.idbifortis.com/http://www.fg-life.in/http://www.metlife.co.in/http://www.allianzbajaj.co.in/http://www.ingvysyalife.com/http://www.sbilife.co.in/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.omkotakmahindra.com/http://www.iciciprulife.com/http://www.maxnewyorklife.com/http://www.hdfcinsurance.com/http://gicofindia.in/http://www.licindia.com/


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GIC had four subsidary companies, namely ( with effect fromDec'2000, these subsidaries have been de-linked from the parentcompany and made as independent insurance companies.

1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited 3. National Insurance Company Limited 4. United India Insurance Company Limited .

Yr: 2000-2001 : ( From 2nd April '2000 to 31st December' 2001 )

Insurance Industry in the year 2000-2001 had 16 new entrants:

Life Insurers

General Insurers :


Date ofRegistration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance InsuranceCompany Limited

2 103 23.10.2000 Reliance General InsuranceCompany Limited.

3 106 04.12.2000 IFFCO Tokio General Insurance Co.Ltd

4 108 22.01.2001 TATA AIG General InsuranceCompany Ltd.

5 113 02.05.2001 Bajaj Allianz General InsuranceCompany Limited

6 115 03.08.2001 ICICI Lombard General InsuranceCompany Limited.

7 131 03-08-2007 Apollo DKV Insurance CompanyLimited

8 132 04-09-2007 Future Generali India InsuranceCompany Limited

9 134 16-11-2007 Universal Sompo GeneralInsurance Company Ltd.
http://www.orientalinsurance.nic.in/http://www.orientalinsurance.nic.in/http://www.newindia.co.in/http://www.newindia.co.in/http://www.nationalinsuranceindia.com/http://www.nationalinsuranceindia.com/http://www.uiic.co.in/http://www.uiic.co.in/http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.icicilombard.com/http://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.itgi.co.in/http://www.itgi.co.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.uiic.co.in/http://www.nationalinsuranceindia.com/http://www.newindia.co.in/http://www.orientalinsurance.nic.in/


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Yr: 2001-2002 : ( From 1st Jan 2001 to Dec. 2002 )

Insurance Industry in this year, so far has 5new entrants; namely

Life Insurers:


Date of Reg.

Name of the Company

1 121 03.01.2002 Reliance Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers :


Date ofRegistration

Name of the Company

1 123 15.07.2002 Cholamandalam GeneralInsurance Company Ltd.

2. 124 27.08.2002 Export Credit GuaranteeCorporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General InsuranceCo. Ltd

Yr: 2003-2004 : ( From 1st Jan 2003 till Date )

Insurance Industry in this year, so far has 1new entrants

Life Insurers:

S.No. RegistrationNumber Date of Reg.

Name of the Company

1 127 06.02.2004 Sahara India Insurance Company Ltd.
http://www.reliancelife.com/http://www.reliancelife.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.saharalife.com/http://www.saharalife.com/http://www.saharalife.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.cholainsurance.com/http://www.cholainsurance.com/http://www.avivaindia.com/http://www.reliancelife.com/


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Yr: 2004-2005 :

Insurance Industry in this year, so far has 1new entrants

Life Insurers:


Date of Reg.

Name of the Company

1 128 17.11.2005 Shriram Life Insurance Company Ltd

Yr: 2006-2007 :

Insurance Industry in this year, had 1new entrants

Life Insurers:


Date of Reg.

Name of the Company

1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

Yr: 2007-2008 :

Insurance Industry in this year, had 2 new entrants


Date of Reg.

Name of the Company

1 133 04.09.2007 Future Generali India Life Insurance Company Limited

2 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Yr: 2008-2009 :

Insurance Industry in this year, so far has 3 new entrants in Life and1 new entry in General
http://www.saharalife.com/http://www.saharalife.com/http://www.bharti-axalife.com/http://www.bharti-axalife.com/http://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.inhttp://www.idbifortis.com/http://www.idbifortis.com/http://www.idbifortis.com/http://www.irdaindia.org/www.fg-life.inhttp://www.bharti-axalife.com/http://www.saharalife.com/


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Life Insurers:

S.No.

RegistrationNumber

Date of Reg.

Name of the Company

1 136 08.05.2008

Canara HSBC Oriental Bank of Commerce LifeInsurance Company Ltd.

2 138 27.06.2008

Aegon Religare Life Insurance Company Ltd .

3 140 27.06.2008

DLF Pramerica Life Insurance Company Ltd.

General Insurers:


Date of Reg.

Name of the Company

1 139 27.06.2008 Bharti Axa General Insurance Company Ltd .

Introduction to HDFC

The first private sector retail Housing Finance Company in India was incorporated in1977 with almost 90% of the initial share holding in the hands of domestic institution andretail investors and currently 77% of the shares hold by foreign institutional investors anda primary objective of meeting a social needs of the common mass of India as well aspromising ownwership by providing long term finance to households for their needs.

However, the needs was according to National Building Organisation. The demand wasestimate at 2 milloin units per year and the total housing shortfall is estimated to be 19.4
http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.aegonreligare.com/http://www.aegonreligare.com/http://www.aegonreligare.com/http://www.dlfpramericalife.com/http://www.dlfpramericalife.com/http://www.irdaindia.org/www.bharti-axagi.co.inhttp://www.irdaindia.org/www.bharti-axagi.co.inhttp://www.irdaindia.org/www.bharti-axagi.co.inhttp://www.dlfpramericalife.com/http://www.aegonreligare.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/


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million units with the division of 12.6 million for rural and 6.64 million for urban. It islisted on both BSE and NSE and having the market capitalization of Rs 79 billion. It has118 offices and having the second largest employment generator in India with the staff strength of 1099.

FINANCIAL STRENGTH Was promoted with an initial share capital of 100 million. Asset Base of more than Rs 21459 cr. AAA (High Security and High Safety) rated for seven consecutive years.

MISSION

To be the top new life insurance company in the country .

Values

SERVICE

Offer a high quality customer service Trained consultants who would advice the customers in choosing the right

product for him.

TRUST

Commitment to the Indian market to establish themselves as the mostprofessional Life Insurance Company in India

INNOVATION

Commitment for developing quality products for the specific needs of the Indian customers.

Use latest technology.

HDFC IS A HIGHLY DIVERSIFIED GROUP. ITS GROUP COMPANIES ARE:

HDFC LIMITED:HDFC was incorporated in1977 with the primary objective of meeting a socialneed that of promoting home ownership by providing long term finance tohouseholds for their housing needs. HDFC was promoted with an initial sharecapital of Rs. 100.

HDFC BANK LIMITED:


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The Housing Development Finance Corporation Limited (HDFC) was amongstThe first to receive approval from the Reserve Bank of India to set up a bank inthe private sector. The bank was incorporated in August 1994 the name of HDFCBank Limited, with its registered office in Mumbai.

HDFC ASSET MANAGEMENT:

HDFC Fund is dominant player in the Indian Mutual Fund space, recognized itshigh levels of ethical and professional conduct a commitment towards enhancinginvestor interest.

HDFC STANDARD LIFE INSURANCE:

HDFC STANDAED LIFE is the name, which is working as one of the bestprivate insurance company in insurance sector. HDFC STANDARD LIFE

Insurance company ltd. Was incorporated on 14th

august 2000. It got thecertificate of registration on 23 rd October.

INTRODUCTION TO STANDARD LIFE

Standard was incorporate d in 1825. It is mainly a U.K based company having 31branches in U.K itself and many other branches in all over the world. It is alsorenounced as the European Largest Mutual Life Insurance Company and recentlyvoted Company od the decade by independent financial advisor U.K.

STANDARD LIFE:

STANDARD HEALTH CARE


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STANDARD INVESTMENT

SOME FACTS ABOUT THE COMPANY:

Founded in 1825 Mutual life insurance Largest mutual life insurance company in Europe Assets under management over Rs 707836 cr. Total assets under management Rs

707836 cr. New premium income Rs 76277 cr. AAA rated by Standard & Poors and Moodys.

THE JOINT VENTURE OF HDFC AND STANDARD LIFE:

Be granted license by the IRDA to operate in life insurance sector. Each of the JV HDFC

Standard Life Insurance Company Ltd was one of the first companies to who is highlyrated and conferred with many awards. HDFC is rated AAA by both CRISIL andICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard andPoors. These reflect the efficiency with which HDFC and Standard Life manage theirassets base of Rs 15000cr and Rs 600,000 Cr respectively.

Products of HDFC

1. Individual Products

Protection Plans


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HDFC TERM ASSURANCE PLAN

You have always ensured that your loved ones keep living a respectable

life with their heads held high. But life can be uncertain. As a prudentfamily man, you need to secure your family's future and protect your prideand your family's self respect. You need to have a plan to take care of yourfamily if something unfortunate were to happen to you.

With our Protection Plans, you can protect your family from uncertaintiesin life such as your unfortunate death or critical illness. And ensure thatyour family lives a life of self-respect and dignity even in your absence.

Our Protection Plans give you :

An ideal way to secure the financial future of your loved ones.High cover at a very nominal cost plus an option of adding optional benefits tocover for other eventualities.A choice of two plans depending on your requirements:

HDFC Term Assurance Plan : A pure risk cover plan, which gives youprotection against the uncertainties of life.HDFC Loan Cover Term Assurance Plan : An ideal way to cover your homeloan or other loan liabilities.

HDFC LOAN COVER TERM ASSURANCE PLAN

You have always ensured that your loved ones keep living a respectablelife with their heads held high. But life can be uncertain. As a prudentfamily man, you need to secure your family's future and protect your prideand your family's self respect. You need to have a plan to take care of yourfamily if something unfortunate were to happen to you.

With our Protection Plans, you can protect your family from uncertaintiesin life such as your unfortunate death or critical illness. And ensure that

your family lives a life of self-respect and dignity even in your absence.

Our Protection Plans give you :An ideal way to secure the financial future of your loved ones.High cover at a very nominal cost plus an option of adding optional benefits tocover for other eventualities.A choice of two plans depending on your requirements:


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HDFC Term Assurance Plan : A pure risk cover plan, which gives youprotection against the uncertainties of life.HDFC Loan Cover Term Assurance Plan : An ideal way to cover your homeloan or other loan liabilities.

Choice of premium payment options-regular premium or a single one-timepremium.Choice of taking the plan on a single life basis or a joint life (first claim) basis.

Investments Plan

HDFC Single Premium Whole of Life Plan

The well-informed rightly said and proves how important investments arein todays date and age. The question that we all fear is What about therisks attached?

GOOD NEWS for all the people who are anxious the same way! HDFCStandard Life Insurance brings to you a safe investment plan that wouldtake care of your savings and nurture your earnings

HDFC Single Premium Whole of Life Insurance PlanHDFC Single Premium Whole Of Life Insurance Plan is a tailor-madeplan well suited to meet your long-term investment needs. This participatingplan offers you the following benefits:

Whole of life plan aimed at providing long-term real growth of your moneySingle premium investment planIn case of your unfortunate demise during the policy term, thisparticipating (With Profits) insurance plan will pay your family the Sum

Assured and compound Reversionary Bonuses, which are usually addedannually. An additional Terminal Bonus may be paid depending on theperformance of the underlying investmentsDuring Guaranteed Surrender Periods you get the Sum Assured and allbonuses vested as at the date of surrender

HDFC Unit Linked Wealth Maximiser Plus

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDER


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You have given your best to everything in life. And you will settle fornothing but the best for yourself and your family. No wonder, you want aninvestment plan that enhances your investment returns. We present HDFCUnit Linked Wealth Maximiser Plus, a unique single premium investmentplan that strives to maximise your investment returns and takes care of

your familys protection need. So that while you reap potential retu rns ofyour investment, your and yours familys financial independence is alsosecured. HDFC UNIT LINKED WEALTH MAXIMISER PLUS

The HDFC Unit Linked Wealth Maximiser Plus gives An outstanding investment opportunity with choice of new exclusivefunds Single Premium with cover till age 99 yearsFlexible options like Managers FundRegular Loyalty Units to boost your fund value every year No medicals in case you are eligible for applying through Short MedicalQuestionnaire (SMQ)

You can choose your premium and the investment fund or funds. We will theninvest your premium, net of premium allocation charges in your chosen funds inthe proportion you specify. You will receive the accumulated value of your fundsat the end of the term.

In case of your unfortunate demise during the policy tenure, we will pay thegreater of your Sum Assured (less any withdrawals as defined below) and your total fund value to you.

Use HDFC Standard Lifes excellent investment options to maximise your sav ings & secure your and your familys future. We will assist you in providingfinancial security for your family in your absence.

All Unit Linked Life insurance plans are different from traditional insuranceplans and are subject to different risk factors.

HDFC Standard Life is the name of our Insurance Company and HDFC UnitLinked Wealth Maximiser Plus is the name of this plan. The name of ourcompany and the name of our plan do not, in any way, indicate the quality

of the plan, its future prospects or returns.

Pension Plans


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HDFC PERSONAL PENSION PLAN

Today, you are busy climbing the ladder of success and realizing yourdreams. Today, time is with you. Just take a moment and think. Will yoube able to continue at the same pace? Will your income be the sameforever? Will you be able to live life on your own terms even after youretire?

HDFC Personal Pension PlanWe understand your need to build a secure future for yourself. Hence, the HDFCPersonal Pension Plan is an insurance policy that is designed to provide a post -retirement income for life with the freedom to choose your retirement date.You can choose your premium, the Sum Assured and your retirement date. Atthe end of the policy term, you will receive the Sum Assured plus any attachingbonus, which will provide your post - retirement income.The HDFC Personal Pension Plan is an insurance policy, which can benefit you

in the following ways:

Provides a post retirement income in your golden yearsGives you the flexibility to plan your retirement dateGives you tax benefits on your premiums

The plan receives simple Reversionary Bonuses, which are usually addedannually. At the end of the term an additional Terminal Bonus may be paiddepending on the performance of the underlying investment. (See 'Bonuses' for more details)

Don't compromise on your self-respect, ever. Go ahead, hold your head high andenjoy life with the HDFC Personal Pension Plan.

HDFC UNIT LINKED PENSION

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDER.

Today, you are busy climbing the ladder of success and realizing yourdreams. Today, time is with you. Just take a moment and think. Will you beable to continue at the same pace? Will your income be the same forever?Will you be able to live life on your own terms even after you retire?

The HDFC Unit Linked Pension II is an insurance policy that is designed toprovide a retirement income for life with the freedom to maximise your


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investment returns. Stride into your golden years of retirement with dignityand pride.HDFC Unit Linked Pension II

The HDFC Unit Linked Pension II gives you: An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investmentsFreedom from tracking the market with Asset Allocation OptionBumper Addition of 50% of original annualised premium at vesting and on deathProvides a post retirement income for lifeGives you the flexibility to plan your retirement date

You can choose your premium and the investment strategy. We will theninvest your premium, net of premium allocation charges according to your chosen investment strategy. At the end of the policy term, you will receive the

accumulated value of your funds, which will be used to provide your pensionincome.

In the event of your unfortunate demise during the policy term, your spousewill receive a cash lump sum to help him or her manage the retirement years.

Use HDFC Standard Life's excellent investment options to maximise your savings & secure your golden years. Don't compromise on self respect, ever.Go ahead, hold your head high and enjoy life with the HDFC Unit LinkedPension II.

All Unit Linked Life insurance plans are different from traditional insuranceplans and are subject to different risk factors.

HDFC Standard Life is the name of our Insurance Company and HDFC UnitLinked Pension II is the name of this plan. The name of our company and thename of our plan do not, in any way, indicate the quality of the plan, its futureprospects or returns.

Savings Plan

HDFC Endowment Assurance Plan

You have given your family the very best. And there is no reason why theyshouldn't get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for


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today, but also in the long term. More importantly, you have to guard your lovedones against any eventuality. How will they sustain their way of life, so lovinglybuilt by you, in your absence?

With our HDFC Endowment Assurance Plan, you can ensure that your family

remains financially independent, even if you are not around. You can ensure thatthey live a life of respect and dignity. Always.

Endowment Assurance PlanThe HDFC Endowment Assurance Plan gives you:

An ideal way to secure your long-term financial goalsValuable protection to your family by way of lump sum payment in case of yourunfortunate demise within policy termLump sum payment (basic Sum Assured plus any bonus additions) on survival upto maturity dateVery flexible benefit options and payment options

In case of your unfortunate demise during the policy term, this participating ('WithProfits') insurance plan will pay your family the Sum Assured (together with theattached bonuses) you had chosen.

The plan receives simple Reversionary Bonuses, which are usually added annually. Atthe end of the term an additional Terminal Bonus may be paid depending on theperformance of the underlying investment.

HDFC Savings Assurance Plan

Inspite of your best efforts, you do not end up savings regularly for yourfamilys and your future. Unexpected expenses, unplanned purchases andoften, sheer lack of time defeat your efforts. Dont you wish that someonewould take on the responsibility of regularly savings your money for you?Auto build your savings with HDFC Savings Assurance Plan.HDFC Savings Assurance Plan helps you conveniently build your long-term savings.

This plan offers you the following featuresConvenient no medical examination procedureInsurance cover up to Rs. 5 Lakh with limited documentationYou can choose to save monthly, quarterly, half yearly or yearly as per yourconvenienceThe annual amount you pay is eligible for tax relief under Sec. 80 CThe maturity amount is completely tax-free under Section 10(10 D)


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What is HDFC Assurance Plan?

This plan is a with profits savings policy, which offers the following featuresThe policy receives simple reversionary bonuses, which are usually addedannually.

At maturity, the policy pays out the basic Sum Assured plus reversionary bonusesdeclared during the policy term. Interim or terminal bonus are also be payable if declared.The policy can be surrendered for cash value before maturityProvides financial support to your family by way of a lumpsum payment in case of your unfortunate death within the term of the policy. The lumpsum is the basicsum assured plus any bonus additions

HDFC Unit Linked Young Star Suvidha

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDER

As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a good education, establishing aprofessional career or even a modest wedding is expensive. Costs are rising fast.Just imagine how much you will need when your children take these importantsteps in life.

Plan today to ensure a bright future for your children, start building savings today

with the HDFC Unit Linked Young Star Suvidha, so that your child is able to leada life of respect and dignity with a secured financial future.

HDFC UNIT LINKED YOUNG STAR SUVIDHA

The HDFC Unit Linked Young Star Suvidha gives you: An outstanding investment opportunity by providing a choice of thoroughlyresearched and selected investmentsValuable protection to your family in case you are not aroundFlexible premium payment options

Access to your accumulated fund before maturityNo need to go for medical. Just signing a Declaration of Health statement

will do!

Thats Suvidha for you !!

You can choose your premium and the investment fund or funds. We will theninvest your premium, net of premium allocation charges in your chosen funds inthe proportion you specify. At the end of the policy term, you will receive the


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accumulated value of your funds.

In case of your unfortunate demise during the policy term, we willPay the Sum Assured you had chosen to your childContinue your policy AND continue to pay the original regular premiums you

had chosenThis means we will continue to make savings on your behalf, in your absence.The fund will be available for your familys use until the original Maturity Date.Use HDFC Standard Lifes excellent investment options to maximise your savings and maximise your childs achievements.

We will provide financial security for your child.

Health Plan

HDFC Critical Care Plan

You have always ensured that you and your family keep living arespectable life. However, life in todays times can be uncertain. As aperson who cares so much for his family, you dont want any unfortunateincident to affect your plans for you and your family. So why let any criticalillnesses shatter your and your familys aspirations.

HDFC Standard Life presents HDFC Critical Care Plan, a unique health planthat provides you with timely support in case of critical illness and helpsyou and your family to remain financially independent in difficult times. Sothat your family can always live their life with their head held high. Always.HDFC CRITICAL CARE PLAN

HDFC Critical Care Plan gives youValuable protection for you in case of critical illnessCover against 30 critical illnessesLump sum benefit payment irrespective of actual medical costCover continues even after benefit payment on selected illnessesFlexible premium payment option

HDFC Critical Care Plan helps you by providing a lump sum fixed benefit incase


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you are diagnosed with any of the critical illnesses covered. The benefit ispayable on survival for a period of 30 days post diagnosis of the critical illness.This benefit can be used to meet any financial requirements.

2. Group Products

GROUP TERM INSURANCE PLAN

Whatever the business Its the people who make it a success. Everybodyrequires some type of life insurance, especially when others depend on themfinancially.

The Group Term Insurance (GTI) plan meets this need and serves as an idealway for companies to reinforce their bond with their employees. The sort of needs, you, as an employer need to cater to could be in form of:

Employee benefitsCover for housing or vehicle loans given by you to your employees

A GTI cover for future service gratuity liability to be taken along with theHDFC Group Unit Linked Plan

The HDFC Group Term Insurance is a cost-effective plan that addresses theseneeds. In addition you have the choice to opt for a GTI with an experiencediscount feature ("Profit Share") , where a discount is given on future premiumsin case of favorable claim experience (subject to group size).

The HDFC group term insurance plan will have the following structure:One year renewable term insurance planOne master policy issued covering all members of the groupSum assured is payable on death (either due to natural causes or accidents)

The plan covers death due to any cause; accidental or natural, and hence ismore comprehensive than Group Personal Accident Insurance. Severalmultinational corporations, large Indian companies, foreign banks and softwarecompanies have already chosen the HDFC Group Term Insurance, aninnovative product from HDFC Standard Life Insurance, to protect their

employees.Optional Rider Benefits Accidental Death BenefitTotal Permanent DisabilityTotal Permanent and Partial Diability BenefitCritical Illness BenefitTerminal Illness Benefit


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GROUP VARIABLE TERM INSURANCE

The Group Variable Term Insurance is a tailor made insurance policy for third

party institutions. HDFC Standard Life Insurance Company will offer lifeinsurance to customers of one or more of the third partys specific products inorder that in the event of their death, there will be a lump sum available.

The Group Variable Term Insurance:On death, will pay a lump sum known as a sum assured. The sum assured variesover time in order that the customer receives the cover that they needIs a group policyHas no lengthy underwriting procedureIs simple to administer

The policy is without any participation in the insurers profits.

INTRODUCTION TO TATA-AIG LIFEINSURANCE

TATA-AIG LIFE


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Tata AIG Life Insurance Company Limited (Tata AIG Life) is a jointventure company, formed by the Tata Group and

American International Group, Inc. (AIG). Tata AIG Life combines theTata Groups pre -eminent leadership position in India and AIGsglobal pr esence as the worlds leading international insurance andfinancial services organization. The Tata Group holds 74 per centstake in the insurance venture with AIG holding the balance 26percent. Tata AIG Life provides insurance solutions to individuals andcorporates. Tata AIG Life Insurance Company was licensed tooperate in India on February 12, 2001 and started operations on

April 1, 2001.

TATA GROUP


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The Tata Group is one of India's largest and most respectedbusiness conglomerates, with revenues in 2007-08 of $55billion or Rs221,320 crore (not including Corus financials),the equivalent of about 3.2 per cent of the country's GDP,

and a market capitalisation of $65.16 billion as on May 22,2008. Tata companies together employ some 289,500people. The Tata Group has operations in more than 80countries across six continents, and its companies exportproducts and services to 85 countries.

AIG

American International Group, Inc. (AIG), a world leader ininsurance and financial services, is the leading internationalinsurance organization with operations in more than 130countries and jurisdictions. AIG companies servecommercial, institutional and individual customers throughthe most extensive worldwide property-casualty and lifeinsurance networks of any insurer. In addition, AIG

companies are leading providers of retirement services,financial services and asset management around the world.AIG's common stock is listed on the New York StockExchange, as well as the stock exchanges in Paris andTokyo.

PRODUCTS OF TATA-AIG LIFE

NIRVANA PLUS PLAN


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The Tata AIG Life Nirvana Plus (Nirvana Plus) policy is Indias firstand only pension policy with a guaranteed addition of 10% of thesum assured every 5 years. You can choose from three levels of cover, which is your amount of Sum Assured: Rs. 1 lakh, Rs. 2 lakhsand Rs. 4 lakhs. You can also decide the age you want to retire: 55,58 or 60 years of age.

Key features include:

10% of sum assured is added to your sum assured for every 5years of paid premiums.

Rs. 1 lakh will be paid directly to you should you be diagnosedwith a covered critical illness (after a 30 day survival period) for first 3 years of the policy.

Deaths that occur during the period of the policy will result in animmediate payment of the full sum assured to your beneficiary,plus guaranteed additions and bonuses (if any).

Deaths that occur due to accidental causes during the planperiod will result in an immediate payment of double the sumassured, plus guaranteed additions and bonuses (if any).

Payment of up to one third of your Sum Assured as lump sumcash upon reaching your chosen retirement age. The remainder is used to buy a monthly income plan that will generate amonthly cash income.

A reversionary bonus will be declared and credited from the 6thpolicy anniversary onwards

A terminal bonus will be paid upon maturity or death if thepolicy has been in force for 10 years.

Bonus is not guaranteed and will depend on the performance of the company.

No medical examination is required for persons between 18and 45 years of age.

Tax Benefits, Riders and Age Eligibility Premiums paid under this plan are eligible for tax benefits

under Section 80CCC of the Income Tax Act, 1961*. Critical illness cover can be purchased as a rider after the 3rd

year of the policy.


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Policy is available for persons between 18 and 45 years of age.

LIFE STARKID POLICY

Do you want your child to get the best? A professional education couldcost around Rs. 10 lakhs. Marriage expenses could also cost another Rs.12 lakhs. Have you saved enough to cover these costs?

Star Kid is an exceptional Child Endowment Policy that will ensure thatyou can afford to give your child everything he needs.


Your child will receive cash benefits to the equivalent of 20% of thesum assured at the age of 18, 19, 20, 21 & 22.

Flexible and affordable premiums, which can be paid annually, semi-annually, quarterly, or even monthly.

No medical examination of your child is needed. Free Look Period - A money-back guarantee, which allows you to

return the policy within 15 days of receipt for a full refund (minusnominal administrative charges).

Tax Benefits, Riders and Age Eligibility

Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the IncomeTax Act, 1961.*

Inbuilt Payor Benefit rider: In the event of Payors death or disabilitythe policy pays out following benefits:

During the premium paying period: All future premiums arewaived off.

After the premium paying period: 50% of Sum Assured is paidto the nominee of the policy.


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INVEST ASSURE II PLAN

Tata AIG Life Invest Assure II (Invest Assure II) is a unique, flexibleinsurance plan which combines the security of a life insurance policy withthe opportunity to exploit the upside of market returns by investing indifferent kinds of securities through multiple fund options. You can directthe investments by creating your own investment fund portfolio from arange of options to suit your needs and preferences.


Policy terms of 15, 20 or 30 years. No penalty for surrendering the policy any time after the 6th year. The Sum Assured is a multiple of the Annual Regular Premium

payable. The multiple varies according to age at entry and policyterm. You have a choice of premium multiples to choose from.

Any premium not deducted for coverage and charges may be

invested in a wide range of investment vehicles, including: an EquityFund, Income Fund, Aggressive Growth Fund, Stable Growth Fund ,a Short Term Fixed Income Fund and Select Equity Fund..

Invest Assure II also offers the flexibility to switch between funds,premium top-ups, partial withdrawal, premium holiday, policyreinstatement, and multiple premium payment modes.

Tax Benefits, Riders and Age Eligibility

Premiums paid under this plan are eligible for tax benefits under

Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax

Act, 1961.* Attach Accident, Waiver of premium, Payor Benefit (for juvenile

policy) and Critical Illness riders to this policy at a nominal extra costfor added protection.


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EASY RETIRE PLAN

Today, you are busy working hard to achieve your goals. You aregoing to retire one day. No matter how you want to live your life after retirement you need to plan and arrange for a regular income.

Tata AIG Life Insurance Company Ltd presents Tata AIG Life EasyRetire(Easy Retire) an individual immediate annuity, the idealsolution to convert your corpus to regular income. The regular income helps you cope with the expenses that continue even whenyou stop working and in fact increase with age as a result of mounting health bills and increasing prices.

Easy Retire is an immediate annuity plan with Return of Purchase

Price (RoPP) which can be purchased through a single premiumpayment. The plan provides for annuity payments which are paidthroughout the life time of an annuitant.

How does the Plan Work?

All you have to do is pay a single premium to Tata AIG LifeInsurance Company Ltd. (This amount is your purchase price)

Choose annuity payment modes [the frequency at which youwant the income] - monthly, quarterly, half-yearly or yearly

Tata AIG Life Insurance Company Ltd guarantees you a rateper thousand at the time of purchase and this depends on theage as well as purchase price.

Opt for either receiving post dated cheques or a direct creditinto your bank account. i.e. PDCs / ECS


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KOTAK LIFE INSURANCE COMPANY

Kotak Mahindra Old Mutual Life Insurance Ltd. Is a joint venturebetween Kotak Mahindra Bank Ltd, and Old mutual plc. At kotak lifeinsurance, they aim to help customers take important financialdecisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financiallyindependent.

KOTAK MAHINDRA GROUPKotak Mahindra is one of India's leading financial conglomerates,offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, tolife insurance, to investment banking, the group caters to thefinancial needs of individuals and corporates.

The group has a net worth of over Rs. 5,997 crore, employs over 20,000 people in its various businesses and has a distributionnetwork of branches, franchisees, representative offices and satelliteoffices across 370 cities and towns in India and offices in New York,London, San Francisco, Dubai, Mauritius and Singapore. The Groupservices around 5 million customer accounts.


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PRODUCTS OF KOTAK LIFE INSURANCE

KOTAK LONG LIFE SECURE PLUS

In this policy, the investment risk in the investment portfolio is borneby the policyholder.

Overview Protecting your family and ensuring their comfort has always beenyour primary concern and key responsibility. For this you require

careful planning and need to secure it with appropriate protection - anecessary cushion to face the unexpected events of life. To ensurethat your investments give maximum protection to secure your family's future and their financial independence, we bring to you theKotak Long Life Secure Plus.

Why an ideal plan Kotak Long Life Secure Plus is a unit-linked plan that ensures your investment gives maximum protection to secure your family's futureand their financial independence. It gives you the dual-benefit of

wealth creation in the long term and timely protection for your lovedones

Advantages

Secure the future for your loved ones with comprehensiveprotection

Avail of timely assistance in case of sudden accidentaldisability

Benefit from lower costs for additional rider options Manage investments with a wide range of funds Enjoy a boost in your fund value by Guaranteed Loyalty Units


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KOTAK ENDOWMENT PLANS

"What is Kotak Endowment Plan?" Kotak Endowment Plan is a protection plan that covers your life andat the same time ensures that your money does not lie idle. It investsa portion of your premium in financial instruments and ensures aconsiderable growth in savings. This is a participating plan (withprofits).

" What are the advantages of this plan? "

1. On maturity, you would receive the sum assured plus thebonus addition. Bonus addition is the amount in the

Accumulation Account*, in excess of the sum assured.

* Accumulation Account is your personal account, inwhich the premiums that you pay are deposited,the return declared every year is added and risk andexpense charges are deducted.

2. The amount available in the Accumulation Account is investedin various financial instruments (as per IRDA regulations) soyour money works harder for you.

3. The Automatic Cover Maintenance facility ensures the policyremains in force even if you miss premium payments. Thisfacility is available after the first three years of the term.

4. You can take a loan against your policy, after the policy hasbeen in force for at least three years.

5. You have the option of paying premiums quarterly, half yearly

or yearly. You also have the flexibility to pay premiums throughthe full term of the policy or pay it for a fixed term of 3, 5, 7, 10or 15 years.

6. You have the benefit of a 15-day free look period.


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KOTAK CAPITAL MULTIPLIER PLAN

"What is the Kotak Capital Multiplier Plan?" The Kotak Capital Multiplier Plan is a participating plan that is built insuch a way that it allows your money to multiply, and gives you theflexibility of using this money the way you need it, in regular withdrawals. This is an endowment plan, which is very flexible, andhas a lot of other in-built benefits.

"What are the advantages of this plan?"

1. You can choose to start making withdrawals from the vestingage, subject to a maximum of 65 yrs.

2. At the start of your withdrawal period, you can draw the fullproceeds; or you can draw upto 50%, of your Basic Sum

Assured or Accumulation Account*, whichever is higher.3. In the event that you draw the full proceeds, your policy

terminates.4. In the event that you do not draw full proceeds, then you can

make one or more withdrawals yearly (that can alter year toyear, as per your needs), total of which will be between 0% to

25% of the Net Vesting Value**, subject to the rules applicableat the vesting age. These withdrawals can be made for amaximum period of 15 years after maturity.

5. You have the choice to opt for an early vesting at any agebefore the scheduled vesting age (subject to at least 3 years'premiums having been paid), if need arises. If the early vestingis due to medical grounds, then the minimum condition of 3 yrsis also waived.

6. In addition to the regular premiums, you can make lump-suminjections into your plan during the premium-paying period, asand when you want (such lump-sum injections during a year may not exceed 25% of the Basic Sum Assured). ASupplementary Accumulation Account will be created for this,and will be combined with the Accumulation Account at thechosen vesting age.

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Hdfcsl,Tata Aig, Kotak