SUMMER TRAINING PROJECT REPORT ON

A DETAILED STUDY OF RECRUIMENT AND RETENTION STRATEGIES OF FCs IN LIFE INSURANCE INDUSTRY WITH A SPECIAL FOCUS TO HDFC SLIC, BAREILLY

Submitted in Partial fulfillment of

Master of Business Administration

Programme MBA (2010-11) Uttar Pradesh Technical University, Lucknow

Under the guidance of:

Devashish Verma Sales Development Manager

Submitted By:
Pushpanjali singh M.B.A. 3rd Sem. Roll No. 1001670035

Faculty of Management
RAKSHPAL BAHADUR MANAGEMENT INSTITUTE BAREILLY

ACKNOWLEDGEMENT
I am thankful to our Training and Placement Officer Mr.Saurabh Saxena who arrange my summer training in HDFCSLIC Bareilly. I am also thankful to Mr. Devashish Verma (Sales Development Manager) HDFC SLIC Bareilly who guides me in the period of training and prepare for industry. I am also thankful to all the staff of HDFC SLIC Bareilly who helps me at each and every level. I am also thankful to my institution Rakshpal Bahadur Management Institute Bareilly to help me in attaining the opportunity to learn the practical aspects of my curriculum through this Industrial-Training Program. I am also sincerely thankful to our Director Dr.Neeraj Saxena and all my faculty members who contributed in my development through their diligent efforts and make me capable and confident enough to understand the industrial environment and specially Dr. Saurabh Saxena who guide me to preparing my training report. At last I am also thankful to people of Bareilly who are directly or indirectly helps me at every stage during the training. PUSHPANJALI SINGH (MBA 3rd Sem.)

PREFACE
This research report is conduct to know the awareness of life insurance in Bareilly city. This report is also give the berief knowledge about insurance &life insurance. In this report main knowledge about HDFC SLIC. Includes company profile. That is about the HDFC group, Standard Life and brief information about the HDEFC SLIC. In HDFC SLIC, I have told about the company portfolio, balance sheet and products of the company. Includes the main part of research study. In this part all the data are collected from the survey. With the help of survey, I want to solve the research problem. This report is help for all the employees and people who are related to the HDFC SLIC. This report is also help for the research scholar to understand the life insurance characteristics in Bareilly city.

PUSHPANJALI SINGH MBA (3rd Sem.)

CONTENTS Topics 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12 13. 14. 15. . 16. 17. 18. 19. 20. 21. 22. 20 PART I About Insurance Importants of insurance About insurance contract About life insurance Element of life insurance contract General rule of intrest in life insurance Classification of policy Risk and its classification About premium & custumer satisfication About investment of fund About devlepment of Indian life insurance About HDFC SLIC About HDFC About standard life Vision of HDFC SLIC Mission of HDFC SLIC Values of HDFC SLIC Operational Highlights Balance sheet The product of HDFC SLIC Brief overview of Insurance Industry Organization Structure Reserch Methodology

21. Sampling plan 22. Limitation 23. Analysics of Questionnaire 24. Conclusion & suggestion Bibliography Annexure

INSURANCE Insurance is as old as civilization. It was present in the form of mutual help. Joint stock companies and corporations are the recent form of insurance. The yogakshema has been the oldest term used in Rig-Veda for some kind of insurance. Manu has emphasized that a special charge be made on goods carried from one town to another to insure their safe carriage Manu smriti says:The traders must be made to pay taxes or duties taking into account the price of purchase, price of sale the length of journey, incidental expenses and yogakshema that is risk & safety Ancient India was the prominent maritime power today the nationalization and globalization that is privatization of life insurance & general insurance is expected to contribute maximum to the well being & safety of people by providing insurance services in every walk of life. The principle & practice of insurance has been changing from time to time. The code of hamburabi and Manu has recognized the advisability of province for sharing the future losses. If we look at insurance type then we find that marine insurance is the oldest form of insurance & first of the insurance has been framed in 1310 by count of Flanders as a charter of assurance by which merchant could insure their goods exposed to the risk of sea this law then spread to other areas of Europe as Spain, France, Portugal, Holland, & England. One of the famous marine insurance companies of oldest time, currently working is Lloyd it was fire insurance which was developed after marine insurance. It was observed in Anglo section guild form for the first time where the victims of fire hazards where given personal assistance by providing necessities for life. It was originated in Germany in 16th century the fire insurance got momentum in England after the great fire in1666 where the fire losses were tremendous almost 85% of the houses were burnt to ashes & property of nearly 10crores sterling was burnt off the first. The first fire insurance office

opened in England in1681. It was opened in the name of sun life insurance. Life insurance made its first appearance in England in 16 th century. The 1st recorded evidence in England being policy on the life of William gibbon on 18 June 1653. However before it the annuities were the common feature in England. The first registered life insurance office was Hand in Hand Society established in1696. Life insurance did not flourish in United States during 18th century because of serious fluctuations in death rates but in 19th century it greatly flourished. In India, the first life insurance company was opened in 1818 under the name of Oriental Life Assurance Company by some of the Europeans. The year 1870 was a landmark in the history of Indian insurance separating the early period of pinioning attempt at life insurance from the subsequent period of steady development at the establishment of Indian life insurance office that is Bombay Mutual Life assurance Society in 1871. The miscellaneous insurance took its shape in 19th century with the industrial revolution in England. Now various categories of insurance such as crop insurance, cattle insurance, etc. are taking place. The scope of general insurance is increasing with the advancement of the society.

INSURANCE Insurance is defined as cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk to persons insured against the risk. Functions of Insurance 1. Primary functions Provide certainty Provides protections Risk sharing 2. Secondary functions Prevention of loss Provides capital. Improves efficiency. Helps in economic progress. Nature of Insurance 1. Risk bearing. 2. Act as a cooperative device. 3. Valuation of risk. 4. Payment at contingency. 5. Valuation of amount of payment. 6. Large number of insured person. 7. Insurance is not a gambling. 8. Insurance is not a charity. Principle of insurance 1. Principle of cooperation. 2. Theory of probability.

Role and Importance of Insurance A. To an individual 1. security and safety 2. affords peace of mind 3. protects mortgaged property 4. eliminates dependencies 5. encourages saving 6. provides profitable instrument 7. fulfill various need of a person B. To business 1. reduced uncertainty 2. increased efficiency 3. key man indemnification 4. enhancement of credit 5. business continuation 6. welfare to employees C. To society 1. protection of wealth of society 2. economic growth of country 3. reduced inflation

Insurance contract:Insurance can be defined as a contract between two parties where by one party called insurer undertakes in exchange for affixed sum called premium, to pay to other party called insured a fixed amount of money on the happening of a certain event. Insurance involve A. Element of a general contract and B. Element of special contract relating to insurance. The special contract of insurance involves principles:

A.

General contract:- The valid contract, according to sec. 10 of Indian contract act 1872, must have following essentialities:1. agreement 2. legal consideration 3. free consent 4. competency 5. legal objective B .Special contracts:1. insurable interest 2. utmost good faith 3. indemnity 4. subrogation 5. warranties 6. proximate cause 7. assignment 8. nomination and 9.Return of premium i. Insurable Interest: - For a valid insurance contract, the insured must have an insurable interest in the subject matter of insurance. The insurable interest in one where by policy holders is benefited by the subject matter existence and is prejudiced by the death or the damage of the subject matter. The essentials of insurance contract are: There must be subject matter to be insured. The policy holder should have monetary relationship with the subject matter. The relationship between the policy holder and the subject matter should be recognized by law. In other words there should not be any illegal relationship between policy holder and the subject matter to be insured. The financial relationship b/w the policy holder and the subject matter are such that the policy is economically benefited by the

existence of the subject matter and /or will suffer the economic loss at the death or the existence of subject matter. The subject matter is life in life insurance, property and goods in property insurance, liability and insurance in general insurance. Insurable interest is essentially a pecuniary interest i.e. the loss caused by the happening of insured risk must be capable of financial valuation no. emotional or sentimental loss. As an expectation or anxiety should be the ground be one that if it happens, the party suffers financially and if it does not happen, the party is benefited by the existence. But a mere hope or expectation which may be frustrated by the happening of some extent is not an insurable interest. Utmost good faith :The doctrine of disclosing all material fact is embodied in the important principle of utmost good faith which applies to all form of insurance. Both parties of insurance contract must be of the same mind at the time of contract. There should not be any misrepresentation, non disclosure or fraud concerning the material fact .In case of insurance contract the legal maxim Caveat emptor (let the buyer beware) does not prevail, where it is regarded the duty of the buyer to satisfy himself of the genuine of the subject matter and the seller is under no obligation to supply information about it. But in insurance contract the seller i.e. insurer will also have to disclose all the material fact.
ii.

Material fact:A material fact is one which affects the judgment or decision of both the party in entering the contract. Facts which count materially are those which knowledge influences a party in deciding the weather or not to offer or to accept such risk and if the risk is acceptable, on what terms and conditions the risk should be accepted. These facts have a direct bearing on the degree of risk in relation to the subject of the insurance. In case of life insurance, the material fact or factors affecting the risk will be age, residence,

occupation health, income etc. and in case of property insurance, it would be use, design, owner and situation of the property. Full and true disclosure:The utmost good faith says that all the material facts should be disclosed in true and full form. It means that the fact should be disclosed in that form in which they really exist. There should be no concealment, misrepresentation, mistakes or fraud about the facts. There should be no false statement and no half truth or any silence or material fact. Duty of both parties:The duty to disclose material fact lies on the both the parties but in practice , the assured has to be more particular about the observance of this principle because he is usually in the full knowledge of the facts relating to the subject matter which, despite all effective inspections of the insurer would not disclosed. Facts need not to be disclosed by insured:The following facts however, are need not to be disclosed by the insurer. 1. Facts which tends to reduce / lessen the risk 2. Fact of public knowledge 3. Fact which could be inferred from the information disclosed 4. Fact waived by the insurer Facts governed by the condition of policy.

5.

Principle of indemnity:As a rule all insurance contract except personal insurance are contract of indemnity. According to this principle, the insurer undertakes to put the insured in the event of loss, in the same position that he occupied immediately before the happening of the event insured against. In certain form of insurance, the principle of insurance is modified to apply in true sense of indemnity. The insured is not entitled to make a profit of his loss. Use To discourse over insurance:- indemnity is an essential feature of an insurance contract , in absence of which , the industry would have the hue of gambling and the insured would tend to effect over insurance and then intentionally cause a loss to occur so that a financial gain could be achieved . So to avoid this intentional loss only the actual loss become payable and not the assured sum. (Which is higher in over insurance) .if the property in under insured i.e. Insured amount is less than actual value of the property insured, the insured is generally regarded his own insurer for the amount and in case of loss, he shall share the loss himself. 2. To avoid an anti social act:- if the assured is allowed to gain more than the actual loss which is against the principle of indemnity, he will be tempted to gain by destruction of his own property after getting it insured against a risk . He will be inconstant temptation to destroy the property. Thus the whole society will be doing only anti social act i.e. the person world be interested in gaining after destruction of the property. So the principle of indemnity has been applied where only the cash value of his loss and nothing more than this will be compensated, though he might have been insured for a greater amount. 3. To maintain the premium at low level:- if the principle of indemnity is not applied , larger amount will be paid for a smaller loss and this will increase the cost of insurance and the
1.

premium of insurance will have to be raised . if the premium is raised two things may happen first, person may not be inclined to insure and second, unscrupulous persons could get insurance to destroy the property to gain from such act .both things would defeat the purpose of insurance . This principle is here to help them because such temptation is eliminated when only actual loss and not more than actual financial loss is compensated provided there is insurance up to that amount. Conditions for indemnity i. The insured has to prove that he will suffer loss on insured matter at the time of happening of event and the loss is actual monetary loss. ii. The amount of compensation will be the amount of insurance indemnification can not be more than insured amount. iii. If the insured gets more amount than the actual loss the insurer has the right to get the extra amount back. iv. If the insured gets some amount from the third party after being fully indemnified by the insurer then the insurer will have the right to get /receive all the amount paid by the third party v. It does not apply to personnel insurance because amount of loss is not easily calculable. Doctrine of subrogation It refers to the right of the insurer to stand in place of insured, after settlement of claims in so far as the insureds right of recovery from an alternative source is involved. If the insured is in apposition to recover the loss in full or part from a third party, due to whose negligence , the loss have occurred ; his right of recovery is being subrogated to insurer on the settlement of the claims . Thereafter, the insurer recovers claims from the third party. This right can be exercises by the insurer before the payment for the loss also.

Essentials of doctrine of subrogation Corollary to the principle of indemnity: - it is the supplementary to the principle of the indemnity. The latter says that only actual value of loss of property is compensated while latter says that if the damaged property has any value left or any right against the third party, the insurer can subrogate the left property or the right of property. 2. Subrogation is substitution: - the insurer becomes entitled to all the rights of the insured subject matter after the payment because he has paid the actual loss of the property. He substituted in place of other person who acts on the right and claims of the property insured. 3. Subrogation is only up to the amount of payment. 4. Subrogation may b applied before payment .if the assured gets certain compensations from third party before being fully indemnified by the insurer; the insurer can pay the balance of loss. 5. This principle does not apply to personnel insurance because the doctrine of indemnity is not applicable to such insurance.
1.

v. Warranties It is that by which the assured undertakes that some particular things shall or shall not be done or that some conditions would be fulfilled or where by he affirms or negatives the existence of a particular state of facts .warranties which are expressed in the policy are expressed warranties and which are not are implied warranties . Warranties are an important condition in insurance contract which is to be fulfilled by the insured. On the breach of the warranties the insurer becomes free from the liability. therefore insured must have to fulfill the condition and promises during the insurance contract weather it is important or not in connection with risk .the contract can continue only when warranties are fulfilled or vice versa.

vi. Proximate cause The rule is that immediate and not the remote cause is to be regarded. The maxim is sed causa proxima non remote spectature i.e. See the proximate cause and not the distant cause. The real cause must be seen while payment of loss. If the real cause of loss is insured, the insurer is liable to compensate for the loss. But the proximate cause is not a device to avoid the trouble of discovering the real cause or the common sense cause. Proximate cause means the active efficient cause that sets in motion a train of event which brings about a result without interruption of any force started and working actively from anew and independent source. The determination of real cause depends upon the working and practice of insurance and circumstances to losses. A loss may not be occasioned by a mere event. There may be concurrent causes or chain of causes. They may occur in a sequence or in a broken chain. Determination of proximate cause 1. If there is a single cause of loss, the cause will be proximate cause and further if the peril was insured, insurer will have to be indemnify the loss. 2. If there are concurrent losses, the insured peril and expected peril have to be segregated. The concurrent cause may be the first separable and inseparable. The loss due to a particular cause may be separately known / distinguishably known. In such a case, if any cause is expected peril, insurer will have to pay up to the extent of the loss which occurred due to insured peril. If the circumstances are such that the perils are inseparable, then the insurers are not liable at all where an expected peril exist.

vii. Assignment or Transfer of interest It is necessary to distinguish between assignments of - subject matter of insurance, policy, and policy money when payable. Marine and life insurance policies can be freely assigned but the assignment under fire and accidental insurance policies are not valid without the prior consent of the insurer except changes of interest by will or operation of law . Moreover assignment under fire and accidental insurance policies must be made before the insured part with his interest. Once he has lost the interest, the policy is void and can not be assigned. Life policies can be assigned weather the assignee has an insurable interest or not. Life policies are frequently charged, assigned or otherwise dealt with, for they are the valuable securities. A marine policy is frequently / freely assigned unless it contains terms expressly prohibiting assignment. It is assigned before or after loss. Assignment in fire insurance can not be recognized without prior consent of insurer, change of interest in fire policy are not valid unless and until the consent of the insurer is obtained. viii. Return of premium Ordinarily the premium once paid cannot be refunded. However in following cases refund is allowed.
a

By agreement in the policy :- the assured may pay full premium while affecting the insurance , but it may be agreed to reduce it wholly or partially in the happening of the event .for example special packing may reduce the risk.

b.

For reasons of equity:- it includes certain important points:

1.

Non attachment of risk :- where the subject matter insured or part there of has never been imperiled for ex. term insurance with returnable premium

c.

where premium is returned to the policy holder if death does not occur during period of insurance. 2. Undeclared balance of an open policy: - The policy may be canceled and premium may be return for short interest allowed provided there was no further interest in the policy. 3. Where assured has no insurable interest : - Through out the currency of the risk. Premium is returnable provided policy was not attached by way of wagering. 4. Unreasonable delay :- Unreasonable delay in commencing the voyage may also entitle the insurer to cancel insurance by returning premium 5. Where the assured has over insured under an unvalued policy, a proportionate part of premium is returnable. Over insurance by double insurance : - If there is over insurance by double insurance, a proportionate part of several premiums returnable provided that if policies are taken different times and any earlier policy has at any time born the entire risk or if a claim has been paid on the policy in the respect of the full insured thereby no premium is returnable in respect of that policy and when double insurance is affected knowingly by assured, no premium is returnable.

LIFE INSURANCE Life insurance contract may be defined as the contract whereby the insurer in consideration of a premium undertakes to pay a certain sum of money either on the expiry of the fixed period or on the death of the insured. According to section 2 (2) of Insurance Act 1938 life insurance also includes annuity business. Since the life insurance contract is not an indemnity contract, the undertaking on the part of the insurer is an absolute one to pay a definite sum of money maturity of policy at the death or an amount in installment for affixed period or during the life. Features or Elements of Life Insurance contract 1. Nature of general contract 2. Insurable interest 3. Utmost good faith 4. Warranties 5. Proximate cause 6. Assignment and nomination 7. Return of premium 8. Others. In life insurance contract, the first three features are very important, while rests of them are complimentary in nature. 1. Nature of general contract Life insurance is also a short of general contract. It includes all the essential features of general contract, as agreement, competency, legal objectives, legal considerations, free consent of parties etc.
a.

Offer and acceptance: - An offer or proposal is intimation to another of ones intention to do or to abstain from doing anything with a view to obtain the assent of that other person to such an act. When the person to whom the proposal is made signifies his assent to it, the offer is said to be accepted.

The offer and acceptance of life insurance is of typical type. The proposal form is completed by the proposer and along with the proposed for first premium is paid. The same may be accepted at the normal rate and norms. The agents canvassing or publication of prospectus and of uses of insurance constitutes invitation to offer because the public in general and individual in particular are limited to make proposal for insurance. Submission of proposal along with the premium is an offer and dispatch of acceptance letter is acceptance. The risk will commence as soon as acceptance letter dispatched by the insurer. When the proposal in not accompanied with first premium, it would be an invitation to offer by prospects and the letter of insurer (generally letter of acceptance with modification is sent) asking the proposer to pay the first without any alteration is an offer and payment of first premium is acceptance.
b.

Competency: the essential element of a valid contract is that the parties to it must be legally competent to contract. Every person is competent to contract who is of the age of majority according to the law, who is of the sound mind, and who not disqualified from contracting by any law. The insurer will be competent to contract if he has got the license to carry on insurance business. The insurer is working with the article of association and memorandum of association or deed of partnership. Free consent: both the parties must be of the same mind at the time of the contract. If the two parties do not meet in this respect, there is no perfect agreement between them. It is necessary to call it free consent of the parties that the contract is not made through coercion, undue influence, fraud, misrepresentation or mistakes. In life insurance business both parties must know about the nature of risk to be underwritten. If the consent is not free , the contract is generally voidable at

c.

the option of the other party whose consent was not freely given.(section 13)
d.

Legal consideration: the presence of a lawful consideration is essential for a legal contract. The insurer must have some consideration in return for his promise to pay a fixed sum at maturity or death whichever may be the case. The consideration need not be money only. It should be any thing valuable or to which value may be assigned. It may be interest, dividend, right etc. In Raj Narayan vs. Hindustan Cooperative Insurance, the insurance was accepted but policy was not issued by the insurer. The insured died and could get the policy amount in allegiance of the policy because at the payment of the premium contract was complete. The first premium is consideration and the subsequent premium is merely conditions to contract. Legal objectives: the contract would be legal only when the object is legal. The object of the legal life insurance contract is to protect oneself or one family against financial losses at the death of the insured. The contract is some times to provide for financial contingencies/emergencies that may occur in old age. In brief the contract will be lawful only when the objective is legal. The objective will be legal only when there is insurable interest. With out having this interest, the objective of the contract would not be legal. It would be a wager contract and against public policy.

e.

2. Insurable interest It is a pecuniary interest. The insured must have an insurable interest in the life to be insured for a valid contract. Insurable interest arises out of pecuniary relationship that exist between the policyholders and the life assured so that the former stands to loose by the death of the latter and /or continues to gain by his survival. Insurable interest in life insurance may be categorized in two parts that is:

a. insurable interest in owns life:An individual has an insurable interest in his own life. Its presence is not required to be proved. Bunyon says that every man is presumed to possess an insurable interest in his estate for the loss of his future gains or savings which might be the result of his premature death. According to the definition of insurable interest it is also evident that the person will continue to gain financially while he is surviving and he will suffer losses if he is dead because he will be unable to earn or protect the property. The insurable interest in his own life is unlimited because the loss to the insured and his dependent can not be measured in terms of money and therefore no limits can be placed to the amount of the insurance that one may take on ones own life. Thus theoretically a person can take a policy to any unlimited amount on his own life; but in practice no insurer will issue a policy for an amount larger than amount seems suitable to the circumstances and means of applicant. Generally, it is mentioned one cannot purchase policy usually more than 10 times of his one year income. The premium can be paid by the 3rd party provided there is no intention to speculation. If there is possibility of wager contract it would be void.
b.

Insurable interest in other life :Life insurance can be affected on the life of 3 party provided the proposer has insurable interest in others life. There are 2 type of insurable interest
rd

a) When no proof is required:-there are only 2 cases when no proof is required for the insurable interest as they are legally presumed 1) wife have insurable interest in the life of husband:-it is presumed & decided by reed Vs royal exchange (1795) that wife is presumed to have insurable interest in the life of her husband because husband is legally bound to support the life of his wife. The wife who will suffer financially if husband is dead and will continue to gain if husband is surviving. Since the extent of loss or

gain can not be measured in this case hence wife has insurable interest in the husband life up to an unlimited extent 2) Husband has insurable interest in the life of wife: - Insurable interest presumed to exist here and no proof is required. It was decided Griffith vs. Fleming (1909) that the husband has insurable interest in his wifes life because of domestic services performed by his wife. If the wife is dead the husband has to employ other person to render domestic services & certain other financial expenditure will involve at her death which is not calculated. The husband is benefited at the survival; of his wife, so it is self proved that husband has insurable interest in his wifes life. Since monetary loss at her death or monetary benefit at her survival can not be measured there is unlimited insurable interest in the life of wife. Proof is required Insurable interest has to be proved in following cases:1) Business relationship: - the policyholder may have insurable interest in the life of assured due to the business or contractual relations. In this case the amount of insurable corresponds with the amount of risk involved. some of the examples are A creditor has in the life of debtors. A trustee has insurable interest in respect of interest of which he is trustee A partner has insurable interest in the life of the other partners. An insurer has in the life of the insured. An employee has in the life of key man. 2) family relationship: - insurable interest may arise due to family relationship if pecuniary interest exist between policyholders and life assured because mere relationship or ties of blood and of affection does not constitute insurable interest, the proper must have reasonable expectation of financial benefit from the continuance of the life of the

person to be insured or of financial loss from his death. The interest must be based on value and not on mere sentiments. Similarly moral obligations are not sufficient to warrant existence of insurable interest although legal obligations to get support will form insurable interest of the person who is supported in life or the person who is supporting. Thus a son can insure his fathers life only when he is dependent on him and father can take insurance policy on his sons life only when he is dependent on his son. General rule of insurable interest in life insurance 1) Time of insurable interest: - The insurable interest must exist at the time of proposal. Policy without insurable interest will be wager. It is not essential that insurable interest must be present at the time of claim. 2) Services: - except the service of wife, services of other relatives will not essentially form insurable interest. There must be financial relationship between proposer and the life insured. In other words, services performed by the son will not constitute insurable interest of the father in the life of his son. Vice versa is not essential; for forming insurable interest. 3) Insurable interest must be valuable: - In business relations the value or the extent of insurable interest must be determined to avoid wager contract of additional insurance. Insurance is limited only up to the amount of insurable interest. 4) Insurable interest should be valid: - insurable interest should not be against the public policy and it should be recognized by the law. Therefore the consent of the life assured is very essential before the policy can be issued. 5) The legal responsibility may be on the basis of the insurable interest: - since the person will suffer financially up to the extent of responsibility, the proposer has insurable interest to that extent. For instance a person will be under the legal responsibility to expose at the funeral of his wife and children; he can purchase insurance in their lives up to that extent.

Insurable interest must be definite: - the insurable interest must be present at the time of proposal. Mere expectation of gain or support will not constitute insurable interest. 7) Legal consequences: - the insurable interest must be there to form legal and valid insurance contract. With out insurable interest, it would be null and void.
6)

3. Utmost good faith The life insurance requires that the principle of utmost good faith should be preserved by both parties. This says that both parties i.e. insured and insurer must be of the same mind at the time of contract because only then the risk may be correctly ascertained. They must make full and true disclosure of the facts material to the risk. Material facts: - In life insurance national facts are age, income occupation, health, habits, residence, family history and plan of insurance. These are not determined or the basis of opinion and therefore all facts must be disclosed which insured feel as material. Duty: - It is the duty of both the parties to disclose all material facts which are going to influence the decision of other party since the decision is taken on the basis of subject matter, the life to be insured in insurance and national facts relating to subject matter are known or is expected to be known by proposer; it is much more responsibility of the proposer to disclose the material facts. It should also be noted that all the disclosed facts must true to its nature and must be authenticated. Legal consequences: - In the absence of utmost good faith the contract will be voidable at the option of the person who suffered loss due to non-disclosure. The intention at non-disclosure counts frauds and is void ab-initio and unintentional non- disclosure is voidable at the option of party not at fault. Once the voidable contract not at fault has been validated by the party not at fault the contract cannot avoided by him later on for instance, if the insurer has continue to accept the premium

when certain non disclosure, say mis-statement of age, has been disclosed the insurer can not invalid the contract and cannot refute the amount of claims. If the party not at fault does not exercise its option, the contract will remain valid. Facts not required to be disclosed Circumstances which are diminishing the risk. Facts which are known or reasonably should be known to insurer in his ordinary course of business. Facts which the insurer should infer from the information given. Facts which are waived by the insurer. Facts which are superfluous to disclose by reasons of a condition or warranties. Facts of public knowledge. 4. Warranties For understanding warranties representations are to be thoroughly understood because in life insurance those representations which are embodied in the policy and are expressly or impliedly forming the part on the basis of the contract are called warranties. Every information given by the proposer for insurance to the insurer during negotiation is representation. Warranties are an integral part of the contract i.e. these are the basis of the contract between the proposer and insurer and if any statement, weather material or non-material is untrue, the contract shall be null and void and the premium paid by him may be forfeited by the insurer. The policy issued will contain that the proposal and the Personnel statement shall form part of the policy and be the basis of the contract. So that representation will be warranties. As has been disclosed already that the warranties may be informative and promissory. i. Informative warranties: - in life insurance the informative warranties are more important. The person is expected to

ii.

disclose all the material facts to the best of his knowledge and belief. Promissory warranties: - warranties related to the future may only be the statement about his expectation or intention, for instance the proposer promises that he will not take up any hazardous occupation and will inform the insurer if he will take up the hazardous occupation.

Breach of warranties: If there is breach of warranties, the insurer is not bound to perform his part of contract unless he chooses to ignore the breach. The effect of a breach of warranties is to render the contract voidable at the option of the other party provided there is no element of fraud. In case of fraudulent representation or promise, the contract will be void ab- initio. 5. Proximate cause The efficient or effective cause which causes the loss is called proximate cause. It is the real and actual cause of loss. If the cause of loss (peril) is insured, the insurer will pay; other wise the insurer will not compensate. In life insurance the doctrine of causa proxima (proximate cause) is not applied because the insurer is bound to pay the amount of insurance whatever may be the reason of death. It may be natural or unnatural. So, this principle is not of much practical importance of connection with life assurance, but in the following case the proximate causes are observed in the life insurance, too. i. War risk:- where policy issued on exclusion of war an aviation risk, the proximate cause of death is important because the insurer waives its liabilities if death occurred , in this case , while the insured was in field or is engaged in operation of war and aviation . Only premium paid or surrender value whichever is higher payable and the total policy amount is not payable. ii. Suicide: - if suicide occurs with in one year of the policy, or there, was intention to commit suicide and

the payment of policy would be restricted, only up to the interest of the third party in the policy provided the interest was expressed at least one month before the suicide. Accident benefit:-a problem arises when an insured under an accident policy is killed or suffer an injury which has an immediate cause and also a remote cause. In accident benefit policy, double of policy amount is paid. So, the cause of death in this policy is of paramount importance.
6.

iii.

Assignment and cause The policy in the life insurance can be assigned freely for the legal consideration or love and affection. The assignment shall be complete and effectual only on the execution of such endorsement either on the policy itself or by any separate deed. Notice for such purpose must be given to the insurer who will acknowledge the assignment. Once the assignment is completed, it can not be revoked by the assignor because he ceases to be the owner of the policy unless reassignment is made by the assignee in favour of the assignor. An assignee may be the owner of the policy both on survival of the life assured, or on his death according to the terms of transfer. The life policy are the only which can be assigned weather the assignee has insurable interest or not. Life policies are frequently charged , assigned or dealt with for they are valuable securities because a fixed sum is certainly paid in life policies excepting a

few , say, pure endowment and temporary policies . Nominations The holder of a policy of a life insurance on his own life may either at the time before the policy matures, nominates the person or persons to whom the money secured by the policy shall be paid in the event of his death. A nomination can be cancelled before maturity, but unless notice is given of any such cancellation to the insurer, the insurer will not be liable for any bona fide payment to a nominee registered in a record. When the policy matures, or if the nominee dies, the sum shall be paid to the policyholder or his legal representation. Return of premium Ordinarily, the premium once paid can not be refunded. However in the following cases the premiums paid are returnable: For reasons of equity:Equity implies a condition that the insurer shall not receive the price of running a risk he runs .thus, there the contract does not come into effect or it is held to be void ab inito. For example, an account of misrepresentation or breach of warranty, the insured, in the absence of any express condition to contrary, can claim the return of any premium paid. But if the policy runs for a time & become void later on the insured is not entitled to the return of any part of the premium. Where the insured is guilty of fraud in obtaining a policy, he will fail in his claim to the sum assured. He can not also ask for a return of the premium because he will have to allege his own fraud to succeed in his claim & no court will assist such person.
i.

7.

8. Other features

Life insurance policies have the following additional features:

I.

Unilateral contract: - life insurance contract unilateral contract because, here, only the insurer makes an enforceable promise. The proposer had already performed his duty of payment of premiums. If the first premium is paid, the insurer is bound to accept subsequent premium & to pay the amount claim when it arises except on the ground of fraud. Conditional contract: life insurance is a conditional contract because the insurer shall pay the assured sum only when the contract is continuing by payment of premium. In addition the insurers promise to pay the sum assured is also conditional upon the furnishing of satisfactory proof of death & other condition mentioned in the policy. Indemnity contract is not applied: in life insurance the indemnity contract is not applicable because the value of loss at death cannot be ascertained. It is not possible to ascertain the time up to which the insured would have survived & it is also difficult to ascertain the amount of money to be earned by him during life time. So, the doctrine of subrogation is not applicable too.

II.

III.

CLASSIFICATION OF POLICIES The life insurance contract provides an element of protection and instrument. After getting insurance, the policy holders feels a same sense of protection because he feels that he shall be paid a definite sum at the time of maturity. Since a definite sum must be paid, the element of investment provides against pre-mature death and a fixed sum at the maturity of policy .The two elements of investment and protection exist in various degrees in different types of policies. Not only this but these element vary according to different times in the same policy the older the policy the lesser the element of protection & higher the element of investment & vice0versa. Having different element in different policies, the policyholders are free to choose the policy according the requirement. It would be known that no one policy is best for the entire policy holder due to variance in cost, element of investment & protection requirement of policyholder & availability of policy. The life insurance policies can be divided in to 5 categories: 1) Duration of policy 2) Method of premium payment 3) Participation in profit 4) Number of lives covered 5) Method of payment of claim amount 1: Policy according to duration of policy The life insurance policy according to duration may be whole life, term insurance, endowment insurance, and survivorship policy.
i.

Whole life policies: - such policies are issued for life. It means that the policy amount must be paid at the death of the life assured. The life assured, thus can not get the policy amount during the life time; only his dependent will get the advantage of this policy. Such policy can be affected by the payment of single payment, continuous payment or limited premium. The single premium payment is not very common where as the limited payment is

the most common and popular form of whole life policy because of convenience to the policyholder to arrange the payment of premium during his income earning period. In continuous premium payment, this benefit is not available because premium is not payable up to the life of the policyholder. This is loosing its importance because only the dependent of the life assured are getting the benefit. Also in extreme cases he [pays more by way of premium than benefit receivable under the policy and that too when earning capacity of the assured is reduced. This plan is cheaper and best suited to the young man with limited resources and whose requirement for protection is maximum. It is also beneficial to pay estate duty. If the payment of premium ceases after at least 3 years premium have been paid as can be allowed according to the rule will be automatically secured provided the reduced sum assured is not less than Rs. 250.
ii.

Term insurance policies: - Such policies are for the shorter period ranging from 3 months to 7 years. Sum insured is payable only in the event of the death of the life assured, occurring during the period, but the assurance comes to an end; should the life assured survived. These are the cheapest policies. These policies are without profit policies. Term insurance policies are useful to those : Who need extra protection for a shorter duration or Who need protection for longer duration but are unable to purchase for the time being due to ill health or lesser income A young business man can take the policy to save the business disaster during initial stages of business A key mans insurance is generally on term insurance basis A mortgagor of the property may be benefited by this scheme A father can take up this policy during the education of his children

iii.

Any person who is willing to provide insurance for a shorter period. Endowment policy: these policies are of various types:

a) Pure endowment policy: - The sum assured is payable on the life assureds surviving the endowment term. In the event of his death within the term premium may be returnable or not. In corporations all the premium paid without any deduction will be refunded to. Thus the pure endowment policy is opposite to the term policy. Actually these two policies i.e. pure endowment and term policy are the bases of all the policies. Pure endowment policies are for the benefit of others. So the pure endowment policy has the element of protection. Pure endowment grants protection against living too long while term insurance policy grants protection against living too short. The former is old age protection while latter is for family protection. b) Ordinary endowment policy: - This is the policy which actually represents life insurance in true sense. It provides an ideal combination of both the family protection and investment. It is taken out for a specific term of years, the sum assured being payable Either on the assured death during the period or on his survival to the end of the period. Premium are payable through out the term of the policy or to a limited period or till the prior death of the life assured. Ordinary endowment policy is the combination of term insurance and pure endowment. So net premium for the endowment policy is equal to the net premium of term and pure endowment polices issued at same age, for the same period of time. This provides solutions to various problems of life weather living too long or too short. In other words old age provision and family protection is possible by purchasing only this single policy. Moreover compulsory saving in possible due to this policy which is not present in other type of saving .it is a means of hedging against the this possibility of saving period being cut short by death. The neat advantage of this policy is to meet marriages, educations other requirement of family.

c) Joint life endowment policy: - this policy covers more than one life under the single policy. Under this plan, the sum assured is payable on expiry of the term or on the death of one of the assured lives during the endowment period. Premiums are payable throughout the endowment period or till the prior death of any one of the lives assured. The premium is calculated with certain modifications according to the age of all the insured partners. Paid up and surrender value are payable on the policies. This policy is suited to a partner of the firm because firm will not discontinue on the tremendous outflow of the fund at the death of the partner. It is also beneficial to a couple. 2. Policies according to the premium payment:It can be again classified into two heads i.e.: a. Single premium policy: - in this policy the whole premium is paid at the beginning of the policy. As compared to the annual premium payable, it is costlier , but as compared to aggregate of all the premium annually payable , it is much smaller because all the premium are received in advance and the insurer can earn additional amount on premium received . This type of policy can be affordable by those who get a windfall gain / income and are expected not to continue such return in the subsequent years. The single premium policy is not useful to other persons because of the chances of the deaths where after the subsequent premium are not required to be paid. b. level premium policy: - under this policy regular and equal premium are paid at the definite interval. This premium is lesser than the single premium and is convenient to make premium at a regular period. This may take the shape of an expense and can be paid. The equal installment may be paid monthly, quarterly, half yearly, and yearly. So it suits the requirement of different types of policyholder.

3.

Policies according to participation in profit

a. Without profit or non- participating profit: The holders of such policy are not entitled to share the profit of the insurer. This policyholder gets only the sum assured and no bonus is given to them. b. With profit or participating profit: the holder of such policies are entitled to share profit and not the loss, they can not be treated as the co-owner of the business. I f there is any loss; the policyholder can not get the bonus i.e. the share in the profit. The amount of bonus depends on the profit after deduction of provision for the taxes, contingencies etc. Such policy does not guarantee that policyholder will get bonus or something by way of profit every year. 4. Policies according to the number of persons insured a. Single life policy: Under such policy only one individual is insured. It is not necessary that the policy should be issued in ones own life, it may be in others life, but the fact is that this policy insures only one life. The policy amount is payable only when insured event occurs. b. multiple life policy: In this policy more than one life is insured. It may be- joint life policy or last survivorship policy.

Joint life policy: - It covers more than two life and the policy amount is payable on first death. This is beneficial to the partners of a firm and to a couple. Last survivorship policy: - the policy amount is payable at the death. So long as any insured is alive, no payment is made.

5. Policies according to the method of payment a. Lump sum policy: - where the sum is assured is paid in lump sum at the event insured against. b. Installment or annuity policy: - Under this policy the policy amount is payable in installment. It is beneficial to those whose earning capacities are reduced to minimum in old age. At that time, this policy may be more helpful. He may continue to get up to a fixed period or up to death or both.

RISK AND ITS CLASSIFICATIONS Classes of risks: The various life risks cannot be treated individually so they are put under a few broad categories based on the degree of risks. There are two main classes of risks: 1) Uninsurable risks 2) Insurable risks Uninsurable risks: If the insurance can be purchased at higher premium there should not be any uninsurable risks. Theoretically, after investigating all factors affecting a risk the life insurance company should be able to give each due considerations and determining the premium charge for the insurance. Practically, however there are a numbers of reasons why some persons are not insurable. The premium would be much high for these persons which will be against the insurance principle because higher premium will stimulate only to those who are at the death bed. If they are allowed it would be a case of speculation because after payment of a few premiums he will be gaining. It would be unfair to other healthy policyholders. So, in order to protect the existing policyholder, the insurance company must accept those risks against which it can assess adequate and fair premium to provide for claims. Insurable risks: Insurable risks are those which after the selection process can be carried out by an insurer although there can be different terms and conditions for different policyholders. There is a standard of risks, if the risks are not too great it can be insured as sub standard risk even if he does not meet the requirement of a standard risk. The risk of death among sub standard lives varies but in all cases it is higher than that of standard lives. Insurable risks are divided in to three broad categories- standard, sub standard and super standard risks. Every insurer does not use all these classifications.

a)

b)

c)

Standard risk: The standard risk is related with the normal life where there is no much or no less risk. There are certain criteria on which the risk is judged as normal life. It does not refer ideal or first class life but it is rather it is rather a mix of good and bad lives. This group does not contain only those persons who are free from all the impairments or those persons who are under serious illness. It is the group where majority of persons can be included and who may be either more or less than average. Sub Standard risk: Sub standard risk is those risks which are higher though insurable than the standard risk. Thus, the sub standard risks are above the standard risks and below the uninsurable risks. If the life proposed crosses the maximum limit of sub standard risk that will be treated as uninsurable. The sub standard risk is insured after the payment of additional premium. Super standard risk: the super standard risk is present where there is lesser risk than the standard risk. This is also called preferred risk. An insurer does not prefer risk policies because it increases the premium on the other standard risk which may cause reduction in losses of business.

PREMIUM AND CUSTOMER SATISFACTION The premium is of two types- net premium and gross premium. The two premiums are further sub divided in to two parts:-a) single premium and b) level premium. The net premium is based on mortality and interest rate whereas the gross premium depends on mortality rate, the assumed interest rate, the expenses and the bonus loading. Single premium is paid in one lump sum while the level premium is paid periodically in installments. The level premium is yearly, half yearly, quarterly and monthly. Firstly net premium is calculated and other premiums are based on this calculation. Net single premium It is that premium which is received by the insurer in a lump sum and is exactly adequate, along with the return earned thereon, to pay the amount of claims wherever it arises whether at death or even at surrender. It does not provide for expenses of management and for contingencies. Step for calculation 1. Determine what constitute a claim (a) death, (b) survival, or (c) both. 2. Determine when claims are paid (a) at the beginning, (b) at the end, or (c) during the year. 3. Determine the number of insured. 4. Determine the duration of policy. 5. Determine the probable number of claims per year. 6. Determine the value of claims per year. 7. Determine the number of year of interest involved and find the present value of a rupee. 8. Determine the present value of claims for each year. 9. Determine the present value of all future claims. 10. Determine the net single premium divided by number assumed for buying policy.

Assumption underlying the rate computations There are certain variables which are to be assumed at a level for calculation and alterations in premium calculation are made at later stage according to the changes in the variables. The following factors are assumed while calculating the net single premium. 1. As many policies of the given type are being issued as are the number of persons 2. Premium is collected in advance or in the beginning of the period. 3. All collections are immediately invested and will remain invested until money is needed for the payment of claims 4. The insurer will receive an assumed rate of interest. The assumed rate should be conservative to avoid future decline in interest rate. 5. The interest or dividend or any return of the invested fund is immediately invested for re-earning. 6. Mortality rate will be same as given in the mortality table and will be uniformly distributed through out the year. 7. All policies are of same amount. 8. Claims will be paid only at the end of the period. These assumptions may not be totally practicable but they are taken for making calculations easy. The changes in the assumptions can be adjusted accordingly. The premium does matter in all types of policies. It is the premium rate which is determined and thus has an impact on the customer. The customers who adopt the life policy mainly belong to lower- middle, middle, and upper- middle class of the society. Hence premium amount matters a lot. Higher the premium lower will be the customer base and vice- versa. However, if the policy provides certain extra benefit to the customer then customer satisfaction would be higher.

INVESTMENT OF FUNDS While calculating the premium, it has been assumed that the accumulated premiums are invested. The funds are invested to earn at least assumed rate of interest. Need of investment 1. Payment of claims: The first and the most important obligation of the insurer are to pay the amount of claims whenever they arise. For this, insurer is getting a substantial amount in the form of premiums and has to preserve them for payment later on. To keep such amount idle will be failure on the part of the insurer who is expected to invest them on behalf of policyholder. To avoid financial deficit: If the funds are not invested, the total income of the insurer will fall short of its requirement for meeting its commitment because a particular rate of interest on its investment has been assumed while calculating the rate of premium. Again, if the funds are not invested and interest not earned, it would be an under estimation of its future liability which may prove disastrous at the time of higher mortality. National interest: A huge fund of the society is taken by the insurer in form of premiums. Therefore, it is essential for the insurer to invest the funds for the economical development of the country.

2.

3.

Sources of funds 1. Premiums 2. Interest 3. Capital gains 4. Non payment of claims The principles of investment 1. Safety 2. Profitability 3. Liquidity 4. Diversification 5. Increase in life business Basis of formulation of investment policy by a life insurer 1. Basic principle 2. The outlook of management 3. The present composition of investment portfolio 4. Present position of insurer 5. Availability of suitable securities 6. Adequacy of funds 7. Socio- economic needs

POLICY CONDITIONS AND CUSTOMER SATISFACTION The policy conditions are studied in five forms: 1. Conditions relating to commencement of risk 2. Condition of premium 3. Condition relating to continuation of policies 4. Lapsed conditions and 5. Claims conditions. CONDITION RELAING TO COMMENCEMENT OF RISKS

Commencement of risk: The letter of acceptance is not a cover note, it only intimates that the risk will commence when the first premium is offered to and accepted by the insurer. If the premium was paid along with proposal form, the date of letter of acceptance will be the date of commencement of risk. After acceptance of risk, policy is issued. The policy contains terms and conditions of the insurance and is a document which can be used as a proof of insurance.

Proof of age: The proof of age must be produced at the time of proposal because the rate of premium depends on the age of life insured. The insurer does not withhold the issue of policy for the want of proof of age, but does not admit any claims unless the age is proved to the satisfaction of the insurer. However, if it is subsequently found that the age at entry was mentioned lower than the correct age, the assured sum is reduced to such amount as would have been purchased at the true age. If the actual age comes out to be lower than the stated age, the difference is either refunded or adjusted towards future premium or policy amount. The proof of age is very essential at the time of proposal in the term policies. Multi purpose policy, Children Deferred Endowment Assurance, Immediate Annuity and

Deferred Annuity, where the life assured has not completed 20 years or where the life to be assured has completed 50 years of age or the proposal is under the Salary Saving Scheme. CONDITION OF PREMIUM

Payment of premium: The premium rate is calculated annually, but for the convenience of the assured, it can be paid half-yearly, quarterly, or even monthly. It should be remembered that these premiums are not just the portion of yearly premium because the insurer losses interest on the unpaid premium of a year and expenses are involved for frequent calculation of premium. When premium are not annual but fractional and if death takes place before all the premium have fallen due for the current year , the corporation deduct the unpaid installment from policy year, the corporation deduct the unpaid installment form the assured sum at the time of settling the claims.

Day of grace: Premium is paid at or before the due date. But for the convenience of the policyholder certain additional period called day of grace, is allowed to pay the premium. The insured can pay the premium with in the day of grace and the policy would not lapse up to the day of grace. One calendar month but not less than 30 days is allowed for payment of premium.

Premium notice: In order that the policyholder may not forfeit the benefit of his policy, notice of premium falling due will be regularly sent to him except in the case of policies under which the mode of payment of premium is monthly where no such notice is required, the insurer is not bound to

give notice and the want of it can not be admitted as an excuse for not paying the due premium in time. CONDITIONS RELATING TO THE CONTINUE POLICY

Indisputable clause: In order to protect the interest of the assured, indisputable clause is added which provides that the policies shall be indisputable after a state period, i.e. two years from the date of issue except for non payment of premium or for fraud. Section 45 of the insurance act has provided that the policy will not be disputed on the ground of unintentional misstatement, misrepresentation or non disclosure of a material fact after two years of the issue of policy. However on the ground of fraud it can be disputed at any time during the currency of the policy.

Alterations in policies: The insurer permits certain alterations in terms and conditions of the policy at the request of the policyholder. The insurer reserves the right to decline such request without assigning any reason. Alteration may be change: in class or term, reduction in term of sum assured, increase in sum assured, changes in the mode of premium payment, splitting up of the policy in to two or more policies and so on. The insurer, generally, does not permit alterations which increase the amount of risk to the insurer.

Lost policy: The insured must inform to the insurer whenever the policy is lost or destroyed. On the satisfactory evidence of loss or destruction, the insurer will issue a duplicate copy after advertising the fact and will charge the assured the fee for issuing the duplicate copy. Nominations: According to the section 39 of insurance act 1938, the holder of a policy of life insurance on his own

life may, when effecting the policy or at any time before the policy matures for the payment, nominate a person or persons to whom the policy money secured by the shall be paid in the event of his death. Nominee is the person named by the policyholder to whom the policy amount may be paid if the policy amount is payable on the death and the nominee is alive when the life assured expires. In absence of any of these the nominee does not acquire any of the right in the policy. If policy matures by expiry of time, the policy amount is payable to the insured himself and not to the nominee. LAPSE CONDITIONS

Lapse of policy: The insurer shall remain liable for the payment of the claims so far the assured continues to pay the premium when they fall due. If the policyholder fails to pay any of the due premiums with in the day of grace, the insurers liability ordinarily ceases under the policy and the contract comes to an end. Thus the policy is lapsed and all the benefit related to the policy is terminated. The insurer, however, provides certain alternatives to help the insured at the time of lapsation.

Revival of lapsed policies: If a policy lapses by non payment of premium within the days of grace, it may be revived to the full policy amount at any time during the life time of the life assured, but with in a period of five years form the due date of the first unpaid premium and before the date of maturity. The revival is possible within six month from the due date of the first unpaid premium with out evidence of health on the Payment of premium in arrear with the interest at the rate of 7.5%per annum compounded annually. The revival after the first six month from the due date of the first unpaid premium will be effective only on the satisfactory production of evidence of health and habit of the

life assured and no adverse changes in personal or family history or occupation.

Special Revival Scheme: Many policyholders find it difficult to pay the arrears of premium with interest to revive their policies. For them the special revival scheme is beneficial to gain the cover of insurance. Under this scheme, the date of commencement of policy will be fixed by dating back the policies. The period for which the policy will be dated back depends upon the amount of premium paid. The plan and the period of insurance will be same as those under the original policies. The revival will be effected ordinarily by issue of a fresh policy.

Surrender value Extended term insurance Automatic premium loan Reduced Paid up Insurance

DEVELOPING INDIAN INSURANCE SECTOR The insurance sector has come to a full circle from being an open market to nationalization and back to liberalized market again. Tracing the development in the Indian insurance sector reveals 360 degree turn witnessed over a period of almost ten centuries. BRIEF HISTORY OF INSURANCE SECTOR IN DEVELOPING INDIA 1912: Indian life insurance corporation act enacted to regulate the life business in India. 1928: India insurance company act enacted to enable the government to collect statistical information about both life and non life insurance business. 1938: All the act consolidated and amended by the insurance act with the objective to protect the publics interest. 1956: Nearly 245 India and foreign insurance and provident societies are taken over and nationalized. Formulation of LIC act and its establishment with the initial capital of Rs. 5crores from govt. INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by the former finance secretary and RBI governor R.N. Malhotra was formed to evaluate the Indian insurance business industry and recommend its future direction. It was set up with the objective to compliment the reform initiated in the financial sector. Reforms aims at the creating more efficient and competitive financial system suitable for the requirement of the economy keeping in mind the structural changes currently under way and recognizing that insurance is an important part of the overall financial system where was necessary to address the need for the similar reform .

Committee submitted the following report in 1994 and the recommendations given are:1) Structures: Government stake in insurance company to brought down to 50%. Take over of GIC and its subsidiaries so as to make them to act as insurance corporations. More freedom to operate to the company. 2) Competitions: Private company with a minimum capital of Rs. 1billion to be allowed to enter the industry. No company should deal in both life and non-life business through a single entity. Foreign company be allowed to enter the industry and should be allowed collaborate with the domestic companies. Postal life insurance should be allowed to operate in rural areas. 3) Regulatory body: Change in insurance act to be made. Insurance regulatory body to be made. Controller of insurance (currently a part of Ministry of Finance) should be made independend. 4) Investment: Mandatory investment of LIC life fund to govt. securities be reduced to 50% from 75%. Holding of securities or share of GIC in other companies be reduced to 5%. 5) Customer service: Companies must be encouraged to set up unit linked pension plans.

HDFC STANDARD LIFE INSURANCE COMPANY LTD. HDFC Standard life Insurance Company ltd. Is one of the Indias leading private insurance companies, which offers a wide range of individual and group insurance products / solutions. It is a joint venture between Housing Development and Finance Corporations Limited (HDFC Ltd.), Indias leading housing finance institution and a group company of Standard life, UK. HDFC and Standard Life first came together for the possible joint venture, to enter the Indian life business, in January1995. It was clear from the outset that the both the companies share same values and beliefs and a strong relations quickly formed. In October 1995, the company signed 3 years agreement on the venture. Around this time Standard Life purchased 5% stake in HDFC, further strengthening the relationship. The next year was filled with uncertainty, due to changes in government and ongoing delays in passing the IRDA Act in the parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resources made available. Around this time Standard Life purchased 2% stake in Infrastructure Development Finance Corporations Ltd. Toward the end of the 1999, the opening of the market looked very promising and both the companies agreed the time was right to move the operations to the next level. Therefore in January 2000, an expert team from UK joined a hand picked team from HDFC to form the core project team based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% in HDFC bank. In a further development Standard Life to participate in Assets Management Company promoted by HDFC to enter the mutual fund market. The mutual fund was launched on july 2000.

INCORPORATION OF HDFC STANDARD LIFE INSURANCE COMPANY LTD. The company was incorporated on 14 th August 2000 under the name HDFC Standard Life Company Ltd. The companys ambition from as far back as October 1995 was to be the first private company to re-enter the life insurance market in India. On the 23rd October 2000, this ambition was realized when HDFC Standard Life was the only company to be granted a certificate of registration. HDFC are the main shareholder in it with 81.4% share and Standard Life owns 18.6%. HDFC and Standard Life have a close relationship built upon the shred values and trust. The ambition of the HDFC Standard Life is to mirror the success of the parent companies and be the yard stick by which all other insurance companies. ABOUT HDFC Incorporated in 1977, as a public limited company Specialize in the provision of hou7sing finance to the individuals, cooperative societies and corporate sectors. Listed on BSE and NSE Market capitalization as on June 2002is Rs.79 billion (US $ 1.6) Increase in deposit base from Rs. 14.58 billion in FY 94 to Rs.84.91 in FY02 Net increase in FY02 of Rs. 12.41 billion Over 52000 deposits agent and over 1.3 million depositors AAA rated by CRISIL and ICRA for eight consecutive years Achievement by HDFC Best managed company-1995&96 Most competitive Indian company-1997 Excellent in service industry-1998 National quality award-1999 Best managed company(Asia money)-2000

 Asias top best managed company-2001 Best non banking financial company in Asia by IIRG-2000 ABOUT STANDARD LIFE Founded in 1825 Mutual life insurance company since 1925 Largest mutual life insurance company in Europe AAA by Moodys and Standard and Poors Assets over Rs. 581000 crores Achievement of Standard Life Best managed service-1990 3star service award-1991 Overall best company-1992-94 4star service award-1995 Company of the year award-1996-97,2000, 2002 Company of the decade award-1999 Best personal pension provider award-2001 GROUP COMPANIES HDFC Limited HDFC Bank Limited HDFC Assets Management companies Limited HDFC Securities Limited HDFC reality Limited HDFC Chubb General Insurance Companies Limited

BANCASSURANCE PARTNERS HDFC HDFC Bank United Bank of India Indian Bank Saraswat Bank

 Bajaj Capital Bank Of Baroda

VISION STATEMENT The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offers the best value for the money and set standard in the industry.

MISSION STATEMENT The company included in its mission statement as: We aim to be the top new life insurance company in the market. This does not mean being the largest or the most productive company in the market rather a combination of several things: Customer service of higher order Value for money for customers Professionalism in carrying out business Innovative products to cater to the needs of the customers Use of technology to improve several standards Increasing market share

VALUE STATEMENT Security Trust Innovation Integrity Customer Centric People Care Team Care Joy and Simplicity

OPERATIONAL HIGHLIGHTS
Particulars of Policy holders fund New Business Premium Return Individual business a. regular premium b. single premium Group Business a. regular premium b. single premium Pensions a. regular premium b. single premium TOTAL Risk Claims 79,286.97 6,298.26 53314.2 7856.4 FY,mar. 31st 2007 FY,mar.31st 2006

4426.22 12674.09

3035.29 8978.4

45518.67 14219.36 162432.57 108025

24551.27 4883.1 102618.6 80154

New premium The first year premium increased by over 58% from Rs. 1026.18crores in the previous year to Rs. 1624.23 crores in the year. The cumulative sum assured in respect of policies increased from Rs. 47730.40 crores as at 31st march 2006 to Rs. 67192.97 crores as at 31st march 2007. During the year, the company introduced a revised version of the group as well as individual linked plans to conform to the new guidelines issued by the IRDA. The company has now a portfolio of 21 retail and 6 group products along with five optional rider benefits catering to the savings, investment, protection and retirement needs of the customer. Most retail products are offered on both the conventional and unit linked platforms. The endeavour of the sales force is to help customers assess their financial and insurance needs and then offer them an appropriately customized solution through the combination of one or more riders together with the basic plans. As the age profile of

our customers is relatively young, the company has made a conscious effort to offer them long term policies, with adequate life cover. The company believe that in most cases a regular premium paying policy would be in the interest of the policyholder -80% of the policies written this year are regular premium policies. The company has significantly leveraged the barbell shaped demographic profile of the population and is one of the biggest providers of: Retirement solutions for the individual market segment Solutions for planning childrens financial futures The market for the company retirement plan is evolving and is very price sensitive. The company is the key player in the group business. During the year the company issued over 5,23,000 policies and has covered more than 8,77,000 lives. Distribution Offices In its drive to deepen and widen the penetration in the market, the company opened an additional 107 offices during the year, taking the total to 276 across 28 regions. In addition, the company also adopted the hub and spoke model and opened 162 spokes during the year. Through the network of these offices the companys financial consultant, corporate agent and brokers are able to service the customers in almost 700 cities and towns across the country. Financial Consultant The companys distribution strategy continues to lays down strong emphasis on the development of the agency channel. The number of the licensed financial consultant appointed by the company increased from over 33,000 in the previous year to over 74,000 in the current year, with a large part of the increase happening in the latter part of the year. This

position the company well to take the advantage of a larger trained sales force in the coming year. The company provides extensive and thorough training, to not only complies with the regulatory requirement, but also to equip the financial consultants to appropriately assess the customers insurance needs. The need based analysis approach adopted by the sales force has resulted in a significant increase in the average premium, even beyond the limits of tax benefit available. Corporate agents Simultaneously the company took advantage of the interest in distributing insurance product that was evinced by banks and other corporate agents. This channel ha yielded good result and account for over 43% of all first year premia collected during the year. Servicing the customer During the year, the company has established additional touch points for rendering the effective and efficient customer service. The customer can now visit the offices, call the service helpline, send emails, access the service through the financial consultants. Premium payment can be made easily using options like the direct debit facility as also through net banking that has been enabled on the company website. Through effective use of digital security systems, the company now issues policy document with secured digital signatures. Investments Investments of insurance companies are regulated under the IRDA Regulations, 2000 as amended from time to time. The company has compiled with all the requirements under the said regulations. The total assets under management as on March 31st 2007 are Rs. 4976 crores as against Rs. 2554 crores in the previous year. Under the unit linked products, the company offers the choice of 6 funds ranging from growth to liquid funds.

Capital During the year, the company raised the paid up equity capital from Rs. 620 crores to over Rs.801 crores. Further the company has also enhanced the authorized capital from Rs. 620 crores to Rs. 1,500 crores. The shares subscribed to by standard life assurance company had demutualised during the year. Risk Management Policy The company has a risk management policy. This involved risk identification, impact evaluation and mitigant identification exercise. A review mechanism has also been put in place to track the movement of various risks, both at the unit level and at the corporate level. Regular updates in this regard will be placed before the audit committee of directors and the board of directors. Dividend As the company has not earned profit, the directors do not recommend any dividend.

BALANCE SHEET AS AT MARCH 31, 2007 (Rs. in crores) 2007 2006

S UC O F N ORE F UD
S A E ODR F N H R H L E 'S U D S a Cp l h re a ita S a A p a nmn yre e e p n in a tmn o s a h re p lic tio o e c iv d e d g llo e t f h re R s rv a dS rp s e e e n u lu C d / (Db F ir V lu Ca g A c u t re it e it) a a e h n e c o n n Sb o l u -T ta B RO I G OR W S N P LC H L E SF N O I Y ODR ' U D C d e it) F ir V lu Ca g A c u t re it/(Db a a e h n e c o n P lic L b s o y ia ilitie I s ra c Rs rv s nu ne ee e L k dL b s in e ia ilitie A d F ir V lu c a g d: a a e hne T ta L k dL b s o l in e ia ilitie Sb o l u -T ta F n fo F tu A p p tio u d r u re p ro ria n F n fo F tu A p p tio -P v io fo la s dp lic su lik lytob re iv d u d r u re p ro ria n ro is n r p e o ie n e e v e S rp sA c te toS a h ld rs u lu llo a d h re o e ' TTL OA A PI A I N FF N P LC T O U D O I V S ET N E MN S a h ld r h re o e P lic h ld r o yoe A s tsh ldtoc v r L k dL b s se e o e in e ia ilitie L AS ON F E A ST I D S ES X C R E TA S T U RN S ES C s a db n b la c ah n ak a ne A v n ea dO e A s ts d a c n th r s e S b o l (A u -T ta ) C R E TLA I I I S U RN I B T L E PO I I N R VS O S b o l (B u -T ta ) N TC R E TA S T (C =(A B E U RN S E S ) +) M CL A E U E PN I U E th e te dn t w no o a ju te ) I EL NO S X E D R (to e x n o ritte ff r d s d S T D B B L N EN R F A D O SA C U T(S a h ld rs c o n E I A A C I P OI N L S C O N h re o e 'a c u t) T T TTL OA

8 0 ,1 8 ,0 7 4 27 9 8 ,3 1 6 ,9 2 5 0 8 6 ,4 1 ,3 0 4

6 9 ,7 8 ,1 2 1 6 ,9 2 5 0 7 ,1 5 3 0 6 3 ,7 5 ,3 1 2

9 ,2 4 1 7 1 ,3 1 1 7 9 ,5 3 2 ,9 4 6 5 3 ,2 4 2 8 ,4 9 ,5 2 9 2 ,5 6 6 8 1 ,7 3 4 ,9 9 4 5 9 ,5 1

29 6 0 ,5 9 1 ,4 7 9 1 8 ,9 6 0 9371 728 2 0 ,3 9 ,2 3 0 1969 1300 9 2 ,6 3 5 3 3 ,6 5

5 ,4 5 9 8

2 ,5 6 5 1

5 ,4 9 6 4 1 ,4 7

2 ,9 0 9 9 9 ,8 6

1 2 ,7 3 ,5 9 4 1 ,7 2 6 7 8 ,8 6 2 ,5 6 6 8 1 ,7 3 1 ,6 8 2 3 76 5 3 ,0 4 3 6 ,5 6 ,3 3 5 1 6 ,9 0 ,9 1 8 5 2 ,5 6 ,3 5 3 3 7 ,6 2 ,8 4 5 385 04 3 0 ,4 7 ,9 5 9 1 2 ,0 9 ,4 0 3

1 8 ,9 0 ,3 0 1 1 ,6 5 1 1 9 ,0 0 1 ,9 6 9 1 3 ,0 0 2 ,3 6 9 5 61 4 0 ,3 5 2 7 ,6 2 ,8 9 2 90 0 9 ,1 6 3 5 ,7 8 ,8 9 2 2 5 ,5 7 ,6 8 6 2 ,7 9 8 2 2 8 ,2 6 ,6 7 9 1 8 ,4 2 ,1 2 3

4 2 ,3 4 ,4 1 6 5 ,4 9 6 4 1 ,4 7

3 6 ,7 3 ,1 5 5 2 ,9 0 9 9 9 ,8 6

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007
PARTICULARS amount transferred from policyholder account income from investment (a) interest, dividend, & rent (b) profit on sales/redemption investment (c) loss on sale/ redemption on investment (d) transfer /gains on revaluation/change in fair value (e) amortization(charge)/credit Subtotal other income TOTAL (A) expenses other than those directly related to in insurance bad debt written off provision other than taxation (a) for demolition in the value of investment (b) provision for doubtful debt others contribution to the policyholders fund TOTAL (B) profit/loss before tax provision for taxation profit/ loss after tax APPROPRIATIONS (a) balance at the beginning of the period (b) interim dividend paid during the period proposed final dividend (d) dividend distribution tax (e) transfers to reserves/other account PROFIT /LOSS CARRIED FORWARD TO BALACE SHEET EARNING PER SHARE-BASIC EARNING PER SHARE-DILUTED 2007(Rs.`000) 0 126836 114192 -12470 -23909 -2375 202274 764 203038 8252 0 0 0 0 1450397 1458649 -1255611 0 -1255611 2006(Rs.`000) 0 138496 7989 -6933 -6594 -8926 124032 3650 127682 18251 0 0 0 0 1397003 1415254 -1287572 0 -1287572

-3165753 0 0 0 0 -4421364 -1.83 -1.81

-1878181 0 0 0 0 -3165753 2092 2.92

REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 2007

PARTICULARS premium earned (a) premium (b) reinsurance ceded reinsurance accepted sub total income from investment (a) interest, dividend & rent (b) profit on sales/ redemption of investment loss on sale/ redemption of investment (d) transfer /gain on revaluation/ changes in fair value (e) amortization charges sub total other income (a) contribution from the shareholder's account (b) other income TOTAL (A) Commission operating expenses related to insurance business provision for doubtful debt bad debt written off provision for tax fringe benefit tax provisions (a) for diminution in the value of investment (b)others benefit paid(net) interim bonus paid change in value of liability against life policies (a) gross (b) amount ceded in reinsurance amount accepted in reinsurance TOTAL SURPLUS=A-B-C APPROPRIATIONS surplus allocated to shareholders transfer to shareholders account transfer to other reserves fund to future appropriation balance being for future appropriation TOTAL (D)

2007(`000) 28558656 -332408 0 28226248

2006(`000) 15699126 -229625 0 15469501

1589497 1043415 -411914 101405 -65762 2256641

689655 944930 -14974 2158993 -60160 3718444

1450379 232997 32166283 2099268 5767403 0 0 0 35784 0 0 1745350 300 22625262 -141054 0 24229858 33970 0 0 0 33970 0 33970

1397003 232709 20817657 1203252 3984948 0 0 0 26791 0 0 448337 417 15247633 -119237 0 15577150 25516 0 0 0 25516 0 25516

THE PRODUCTS OF HDFCSLIC HDFCSLIC 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 you r needs. These will help secure your future of your family. Protection plans: Term Assurance Plan Loan Cover Term Assurance Plan Investment Plans Single Premium Whole Of Life Plan Pension Plan Personal Pension Plan Unit Linked Pension Plan Unit Linked Pension Plus Plan Saving Plans Endowment Assurance Plan Unit Linked Endowment Plan Unit Linked Endowment Plus Plan Money Back Plan Childrens Plan Unit Linked Young star Plan Unit Linked Young star Plus Plan

COMPETITORS OF HDFC STANDARD LIFE INSURANCE CO.

Aviva Bajaj Allianz Birla sun life ICICI Pru Ing vysya Life insurance corporation Max new York life MetLife India Om kotak mahindra Reliance life insurance SBI life insurance Tata AIG

AVIVA The AVIVA Life Insurance Company is joint venture between Dabur India and the Aviva UK. Dabur is one of the Indias oldest and largest groups of companies with consolidated Annual turnover in excess of Rs 1,350 crores, countrys leading producer of traditional Healthcare products. Aviva Plc is UKs largest and the worlds fifth largest insurance group. It is one of the leading providers of life & pension products to Europe and has substantial business elsewhere around the world. Bajaj Allianz Bajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz AG, and Bajaj Auto, one of the biggest 2 & 3 wheeler manufacturer in the world? Bajaj Auto Ltd, the Flagship Company of the Rs.8000 crores Bajaj group is the largest manufacturer of two-wheelers and threewheelers in India and one of the largest in the world.

Allianz Allianz group is insurers and financial service providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the holding company, Allianz AG, with its head office in Munich. Birla sun life insurance company Limited Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and Overseas with operations in Canada, US, UK, Thailand, Indonesia, Philippines, Malaysia, and Egypt Foreign partner: Sun life assurance, sun life financials primary insurance business, has excellent rating with the worlds top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial service organizations in the world. ICICI Prudential Life Insurance ICICI Prudential Life insurance is a joint venture between the ICICI group and Prudential Plc, of the UK. ICICI standard off its operation in 1955 with providing finance for industrial development, and since then it has diversified into housing finance, consumer finance, mutual funds to being a Universal Bank and its latest venture Life insurance. Foreign Partner Established in 1848, Prudential plc. Of U.K has grown to be the largest life insurance and mutual fund Company in U.K. Prudential plc. Has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest Life Insurance Company in the United Kingdom. ICICI and prudential came together in 1993 to provide mutual fund product in India and today are the largest private sector mutual fund company in India. Their largest venture ICICI

Prudential Life plans to take care of the insurance needs at various stages of life. ING Vysya ING Vysya Life Insurance Company private Limited entered the private life insurance industry in India in September 2001, and in a short spans pf 3 years has established itself as a distinctive Life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close cooperation with the ING Vysya Bank network. The company is headquartered at Bangalore MAX NEW YORK Limited Max India Limited is a multi-business corporation that has business interest in telecom service. Bulk pharmaceuticals, electronic components and specialty products. It is also the service-oriented businesses of healthcare, life insurance and information technology. NEW YORK Life New York Life has grown to be a fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894, New York Life pioneered then unheard-of-concept of insuring women at the same rate as men. Thereafter, it continued to introduce a series of firsts a disability benefit clause in 1920, unemployment insurance in 1992 and complete customer care of the web in 1998. Today New York Life has over US billion in assets under management and over 30,000 agents and employees worldwide. The October 2000 fortune survey named New York Life amongst the top three most admired life and health insurance companies worldwide. With over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide. METLIFE INDIA MetLife India was incorporated as a joint venture between MetLife International Holdings Inc., Jammu & Kashmir Bank, M Pallonji & Co and other private investors.

MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and an additional 1000 outreach points through its channel partner. Life insurance Corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff strength of 1.24 lakhs employed and 2,048 branches and over sixlakhs agency force. LIC has hundred divisional offices and has established extensive training facility at all levels. At the apex, is the Management Development Institute, seven zonal Training Centre and 35 sales Training Centers. At the industry level, along with the Government and the GIC, it has helped establish the National Insurance Academy. It presently transacts individual Life Insurance business, group Insurance business, social security schemes and Pensions, grants housing loans through its subsidiary. And the markets savings and Investment products through its mutual fund. It pays off about Rs 6,000 crores annually to5.6 million policyholders Om kotak mahindra life insurance Established in 1985 as Kotak capital management finance promoted by Uday kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name kotak mahindra as industrialists Harish and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of Indias leading Financial institute. OLD Mutual:Old mutual plc is an international financial service group in London with expanding operations in life assurance, asset management, banking and general insurance. OLD Mutual is listed

on the London Stock Exchange and also on the south-African, Namibian, Malaawi, and Zimbabwe stock exchanges. It has 156 years of experience in life insurance business. OM Kotak Mahindra:OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd .and Old Mutual plc to enter the Indian insurance arena to offer a wide rang of innovative life insurance products. Reliance Life Insurance:Reliance Life Insurance Company Ltd is a part of Reliance Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking Financial company (NBFT) registered with the Reserve Bank of India act under section 45-1A. Reliance Capital sees immense Potential in the rapidly growing financial service sector in India and aims to become a dominant player in this Industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and corporate. SBI Life Insurance:SBI Life Insurance Company Ltd is a joint venture between Indias largest banks, State Bank of India and Cardiff S.A. a leading Life Insurance Company in France. State bank of India is a household name, and it stands as the last world for financial strength and security in the country. SBIs illus tries background dates back to the year 1806 when it started business, as a Presidency Bank, known as Bank of Bengal.

Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years. Cardiff came into being in the year 1973. Since then it has grown into a vibrant insurance company. Specializing in personal lines such as long-term saving, protection products and creditor insurance. Cardiff had a premium income of over US$ 4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has been specializing in the art of selling insurance products through Commercial bank in France and 23 other countries. SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance Regulatory & Development Authority of India and has been issued License number 111 on 29th March 2001. The Companys authorized capital is Rs. 250 crores, and the paid up capital at present is Rs.125 crores. SBI owns 74%of the total equity, and Cardiff the balance 26%. TATA AIG:The TATA AIG joint venture is a tie up between the established Tata Group and American International Group Inc. The TATA Group is one of the largest and most respected industrial houses in the country, while AIG is a leading US based insurance and financial service company with a presence in over 130 countries and jurisdiction around the world.

ORGANISATIONAL SRUCTURE OF HDFC STANDARD LIFE

MD & CEO

GM- SALES & MARKETING

HODIT

HOD- LEGAL & SECRE.

GMFINAN .

HODHR

GMOPERATIONS

BUSINESS HEAD -NORTH BUSINESS HEADSOUTH HOD INSTITUTIONAL SALES

ZONAL MANAGER ZONAL MANAGER

ACCT. MEDI. ATRL.

OPERATION UNDERWRITING

HOD- CHANNEL DEVELOPMENT & SALES HOD - MARKETING HOD-BUSINESS PROCESS &RESEARCH

ORGANISATIONAL STRUCTURE AT BAREILLY

TERITORY MANAGER

BRANCH MANAGER

ASSISTANT BRANCH MANAGER

ASSISTANT SALES MANAGER

BRANCH DEVELOPMENT MANAGER

SALES DEVELOPMENT MANAGER

SCOPE AND OBJECTIVE OF THE PROBLEM/ STUDY The main aim behind study is to know about the satisfaction level provided by the HDFC Standard life to its customers. One of the aim is also to describe the importance of customer in the modern era of business as far ads insurance industry is concerned. The other objectives are: To foresee the available potential marketing Bareilly. So as to maintain a good customer base for the organization To have an out look on the overall strategy of the organization so as to make amendment if needed To built up a loyal customer base To attract the customer towards HDFC Standard Life To know the market share of HDFC Standard Life in Bareilly To study the various initiatives and developments having impact on customer services; To forecast the expectations of various groups of customers; To discern the challenges and suggest measures for improving the customers services.

RESEARCH METHODOLOGY TYPE OF RESEARCH - Exploratory research design METHOD OF RESEARCH - Data collection method o primary data : through observation as well as personal interview o secondary data : through journal, research paper, monthly reports and financial reports SAMPLING METHOD- through judgment and convenience method SAMPLING UNIT- HDFC STANDARD LIFE, BAREILLY SAMPLING ELEMENTS Existing and potential customers in bareilly SAMPLE SIZE- 100

DATA COLLECTION AND METHODOLOGY The task of data collection begins after a research problem has been defined and research design is chalked out. While deciding about the method of data collection to be used for the study; the researchers should keep in mind two types of data i.e. Primary and Secondary data. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The data used for the present research is primary data. Data collection was done through sample, survey method involving the questionnaire to be filled in by the investigator. This was chosen because most of the facts and data where of the nature of primary data. For study like this time framework is not significant. However, for cross sectional analysis, both the insurance and customers were interviewed to find out real state of the affairs of the problem understudy. We had been close to the data obtaining through questionnaire and percentage as well as trend analysis have used to interpret the data. Over all study is based on the findings through survey of 100 persons belonging to varied age groups, as follows: Age groups 18-26 26-35 35-45 45-55 Above 55 Total no. of customers 32 21 35 06 06 100

The different methods that are used for collecting primary data are as follows: A) Contact Method: The 'contact method ' considering the short coming was selected to personal interview. This method being versatile was arranged interviewing as it made concerned approach to the respondent. B) Observation Method: The present investigation was done on the basis of making note of behavior and gestures of the target customers C) Questionnaire Method: The method of data collection is quite popular and is being adopted by researchers, private individuals and organization. D) Schedule Method: The method of data collection is very much like the collection of data through questionnaire, with little difference which lies in the fact that schedules are being filled in by the enumerates who are specially appointed for the purpose, these enumerators go to the respondents along with the schedule and put up the question. Inferences are drawn on the answers given by them.

DATA COLLECTION AND METHODOLOGY The task of data collection begins after a research problem has been defined and research design is chalked out. While deciding about the method of data collection to be used for the study; the researchers should keep in mind two types of data i.e. Primary and Secondary data. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The data used for the present research is primary data. Data collection was done through sample, survey method involving the questionnaire to be filled in by the investigator. This was chosen because most of the facts and data where of the nature of primary data. For study like this time framework is not significant. However, for cross sectional analysis, both the insurance and customers were interviewed to find out real state of the affairs of the problem understudy. We had been close to the data obtaining through questionnaire and percentage as well as trend analysis have used to interpret the data. Over all study is based on the findings through survey of 100 persons belonging to varied age groups, as follows: Age groups no. of customers 18-26 21 26-35 33 35-45 34 45-55 06 Above 55 06 Total 100 The different methods that are used for collecting primary data are as follows:

A) Contact Method: The 'contact method ' considering the short coming was selected to personal interview. This method being versatile was arranged interviewing as it made concerned approach to the respondent. B) Observation Method: The present investigation was done on the basis of making note of behavior and gestures of the target customers C) Questionnaire Method: The method of data collection is quite popular and is being adopted by researchers, private individuals and organization. D) Schedule Method: The method of data collection is very much like the collection of data through questionnaire, with little difference which lies in the fact that schedules are being filled in by the enumerates who are specially appointed for the purpose, these enumerators go to the respondents along with the schedule and put up the question. Inferences are drawn on the answers given by them.

LIMITATIONS 1. The information disclosed by the respondent may not be very accurate. 2. At some places difficulty faced in obtaining the information due to absence of the proprietor. 3. Unwillingness on the part of few respondents to disclose the information as per the questionnaire. 4. Indecisiveness on the part of the respondents regarding some questions,

CHANGING PROFILE OF CUSTOMERS AND THEIR NEEDS A research conducted by one US agency, technical assistance research program (TARP) in 1981, notes that 50-90 percent of customers contracts/visits are requested for information statement of accounts and utilization of routine services at the counters. To make customer feel that they are unique and very special to insurance branch, personnel at the customers should be in touch with customers, develop intimacy, and guide them about personalized products/services that will suit them best. Through, it is difficult to measure satisfaction which is highly subjective, in order to render better services and also to retain customer, insurance should insure that customer services should not suffer for want of efficient infrastructure and suitably oriented personnel. More flexible business hours, evening counters, elegant furniture, comfortable ambience, impressive interior, well designed counters, responsive and well behaved personnel regular contracts with customers etc. The customer have now started to receive much garter attention than ever before. A trained and motivated staff with full details of products & services customers friendly work culture, computerized insurance operation, positive attitude and optimistic out look of branch personnel, upgrading the quality of key service are looking for more avenues to serve and retain exiting customer, entrance customer relationship, use modern state of the art technology , broad out look to words the dynamics of market, manning of counters with experienced, well equipped and courteous personnel conversion with products and services being offered and producers to be fallow , effective mechanism for quick redresses of complaints counseling and guidance , use of sophisticated communication devices that is fax, telex, email etc. are the factors/ component to with stand the challenges posed before the Indian insurance is delivery of satisfactory services to the customers whether they are setting claim are maturity of policy?

CHANGED VALUES IN CUSTOMERS SERVICES Every insurer should make longer customer relationship a goal, because customer relationship is a tangible and actionable strategy, which keeps you well in competition. Disgruntled customer invariability send signals long before they leave. In the complete guide to customer service with a problem that has been resolved will be much more loyal than a customer satisfied by good service. So, do something different when then customers come to you with grievance or complaint. Act swiftly on employee input and get your people focused on doing thing well. Customer satisfaction survey [CSS] is one method of measuring the impact of its quality improvement process. Organizations do not exist and grow with the sole objective of profited maximization. However, profit can be defined as an organizations capacity to serve its customers, therefore, if we want to maximize our profit. We need to recognize customers recognition of our capacity to service them with improved expertise, lover cost faster response and consistent and reliable products and services. The situation calls for vigorous, concerted and harmonious efforts of all insurances. Customer satisfaction is the key of secure his/her loyalty and generates superior long term performance. Therefore, insurance culture needs to be more responsive to the needs of the public. In current context, customer care and customer concern have become much more important. Indian insurances are in the process of unsealing their level of customer service and responsiveness. Nevertheless, insurance services in general have still long way to go for earning respect and esteem from the customers and public in respect of the quality of services they are providing to them.

CUSTOMER SERVICES IN INSURANCE INDUSTRY -PRESENT STATE OF AFFAIRS The intensification of competition on the Indian insurance areas has brought the relevance of customer services in insurance to the force, as never before, insurance have started realizing that business goes to those who seek clients, service them. When the market bristles with a large number of players, including new and more aggressive players, the customer becomes increasingly aware of the wider choice of institution instruments and services and facilities available to them/him and quickly learns to use the choice to his benefit. The old dictum, customer stay with a insurance for he finds no one else any better yields place to a situation where new entrants steadily but surely make a dent or the business share of the existing players. These are the new awakenings compelling the public sector insurance to take to improvement in customer services with anew sense of urgency. Yet the sheer size of public sector insurance, volume and variety of transactions, inherited rigidities and practices and the consequent complexities can hardily be lost sight of. We are referring to the sum total levels of service obtaining in over 45000 insurance branches spread across the country with 10 lacks insurance employees constituting the work force. While the number of accounts serviced runs into hundreds of millions, the magnitude of transactions in indeed staggering. Insurance customers constitute a very wide cross-section of people spread across varied activity groups and population groups. In terms of sheer number and spread of insurance branches and volume and diversity of business transected the private sector insurance are a class apart. Any attempt to measure the performance private insurance sector in terms of customer service with the same yardstick that is used for measuring the performance of the foreign and new private sector insurance would be tantamount to overlooking the ground realities. They give a wide range of policy of fire, and company objective is there to satisfy the customer by providing various facilities.

One fundamental difference between the Indian public sector insurance and their new competitors is that while the latter have had the benefit of choice of locations customers, technological inputs and staff, the former have been deprived of such choice over the years owing to various compulsions. This article examines the level of customers service, with particular reference to the private sector insurance, lists out the major initiatives taken by insurance them and other concerned and created measures have been taken to improve the customer service standards in insurance levels of customer satisfaction in the public sector insurance are still much below expectations. As much as insurance business is a service industry, the ultimate judge is the customer. Unless the level of improvement in service comes up to the customers expectation, no insurance can claim to have really improved his service level. We must recognize that in view of the vast expanse and diversity of insurance service, customer service has varied dimensions. The level of customer service and satisfaction is, therefore, determined by branch location and design, variety of service rates and charges, system and procedures, dedication and decentralization, mechanization and computerization, competitive efficiency, customer overtures, complaint redressed and very importantly, staff skills, attitude and responses. Steps taken in recent years at various levels have clearly addressed many of these issues already. Market segmentation and opening of specialized branches has further improved accessibility and focused attention. There has been a conscious effort to improve the dicing and layout of branches, especially in urban and metro centers, more branches and officials ensuring top class personalized service to their customers. This should develop in to a conscious movement triggered by enlightened self interest. The writing on the wall is quite clear-those insurance, which do not measure up to customer expectation will lose their high value customers to, their

competitors and will be forced out of business in course of time. As the competition intensifies further levels of customer service determine the survival and growth of insurance. You8nger generation of insurance staff in particular have to show anew since of commitment to customer service for they have their long career and further at stake . Together, insurance staff at all level should focus on team efforts and own up responsibility for the levels of customer satisfaction. It is hopped that the new initiatives relating to functional autonomy, better incentive and reward system, skill up gradation measure, removal of rigidities specific to the public sector and creation of work environment that compares favorably with that of new players will together bring about a new orientation in dealing with customers. In service industry like insurance, the quality of customer service holds primal significance, particularly in the context of sustained business growth. Unlike other industries engaged in production of tangible goods, insurance are unique in the sense that they are producing and delivering the service instantaneously at the service delivery point that is at branches. This has an overwhelming impact on the customer psyche and make s them super sensitive towards the quality of service besides , the business relationship between a insurance & it customer is not a one time transitory relationship, but a relatively permanent and enduring one , which requires to nurtured with good quality of service. in such situation any insurance not having a mind towards bettering the quality of customer service is almost certain to loss its business. A needless to say , in the post reform era , which is becoming day by day flirtingly competitive only those insurance that have been exactingly customer focused will have better chances of survival & growth.

Customer expectations and perceptions Insurance is people- people interacting to realize commercial ends, through saving deposits and in term, lent for commercial purpose or manufacturing or creation and marketing of service by skilled and trust worthy financial institutions. The interaction through it is apt to describe them commercial contract s in so far as several aspect of these relationship are based on mutual co-operation , judgment , financial skill, market knowledge, trust & credibility . The traditional image of insurance is one of high efficiency, unimpeachable integrity as well as trustworthiness in handing depositors fund. Such indeed was professional code of ethics and commitment of majority of insurance in our country, till the 1950s and 1960s until the massive expansion of the insurance network. Mass insurance by itself need not have result in what followed. Rapid expansion manifest by wider and deeper reach of insurance system with in a few deeds, into the rural and semi urban India without possibly proper preparation and precautions was accompanied by deterioration in service general full in insurance standards. The insurance sector reform introduced in the 1990s has brought to the inherent strength and weakness. It is hearting to note that by moving towards international standards on capital adequacy , strict income recognition norms and assets classification system, as also decisions pertain to up gradation of technology though at much to slow pace, insurance are well set on path of strengthen through competition on a level playing field.

Customers expectations What are the expectations of customer? They are nether neither many nor unreasonable. They expect security, reasonable return, liquidity affordable & justified services charges and good service, compare globally. These are generally self explanatory. In any case the insurance would have to render customer needed service in a customer satisfying manner. Well designed customer service must be accomplished by good delivery. The five elements of good delivery as identified by first working group or customer service in insurance are: - speed, timeliness, accuracy, courtesy, concern. Customer expects these days reasonably high standards of service comparable globally. As against this expectation, insurance have found it even difficult to display the time norms prescribed by the IRDA journal leave alone fulfilling them. For many customers, life is no longer on a leisurely pace. NRIs are hailing from each and every village and small towns find their way to foreign markets. Even rural folk fail to understand delays, high cost and non performance. Avoidable delay characterize customer service in respect of updating passbooks enhancing cheque, issue of demand drafts, issue of cheque even receipts of cash/deposits collection of local or outstanding cheque etc. there are also a few irritants. In several stations, cashier refuses to accept small denomination note from traders, small savers and other insurance Analysis of customers view: Against this background of customer expectation, we have tried to know the view of customers through a sample survey. First we collect the information with regard to physical facilities and their after with regard to insurance services.

People having life insurance policy of any company

life insurance policy

80% 70% 60% 50% persons 40% 30% 20% 10% 0% yes acceptance no 28% 72%

Analysis: From the above graph we, can easily interpret that there are 72% people who have life insurance policy and 28% people do not have any life policy. It can also be seen from the above graph that their acceptance level is high, however the case is seen only in the high and middle high class and not in lower middle and lower class people. Age group: In these the highest percentage is the age group of 1830 that is 62%, the percentage of 30-45 age group is 23%, only 15% of people have life insurance policy belonging to the age group of 45-60,and the people above the age of 60 years their proportion is 0%.

Life policy
70% 60%

62%

P er s o n s
40% 30% 20% 10% 0% 18-30 30-45 Age 45-60 23% 15% 0% 60-above

50%

Profession The profession of the people is different who have the life insurance policy their percentages are as fallows Serviceman 36% Businessman 14% Professional 29% Others 21%
income analysis

40% 35% 30% 25% income 20% 15% 10% 5% 0%

36% 29% 21% 14% Series1

seviceman

business

profession

others

occupations

Type of life insurance policy people have

types of policies
60% 50% 40% persons 30% 20% 20% 10% 0% protection investment policy pension saving 12% 41% 27 %

Series1

Analysis From the above graph we can see that various policies / plans have been classified into four parts and then they have been valued by the customers. More than 50% persons have opted for protection plans. It is due to the fact that the people of India are conservative in nature and always think for future growth. The second preferred plan is saving plan i.e. they have been wanted by more than 20%. Age group analysis Further the plans have been classified in to various age group like-18-30, 30-45, 45-60, 60 & above. Investment plans are mostly adopted by 18-30 years age group and other age group are less enthusiastic about the investment plan.

people having investment plan

56%

60% 50% 40%

30% persons 30% 20% 10% 10% 0% 18-30 30-45 45-60 60-above age group 4% Series1

However, as against the investment policy, the saving plan is still the best choice for the older age group like 45-60and 60 and above. Both the group shares same percentage level in the plan.

persons having saving plans

33% 33%

35% 30% 25% persons 20% 15% 10% 5% 0% 18-30 30-45 12% 22%

45-60

60-above

age groups

Reasons for taking a policy

reasons for taking policy

35% 30% 25% persons 20% 15% 10% 5% 0%

31%

32%

20% 17%

security

saving

future need reasons

tax rebate

Analysis

The above graph represents the reasons why a person takes a life policy the reasons specified are saving purpose, securing the money, for future need or for getting rebate in tax payment. In it the people gave their first preference to saving and then to security for securing their future needs. They said that by maintaining both will serve the future needs. Very less people prefers to tax rebate facility as they are unaware about this benefit.

Rating the HDFC Standard life

Rating HDFC Standard life

60% 50% 40% Persons 30% 20% 10% 0%

51%

32% 24%

3% Excellent Good Scale of rating Fair Poor

Analysis The people ranked the HDFC Standard life best on a scale of comparison of it with other company. Nearly 54% persons ranked the company as the excellent and 32% ranked it as good. This shows the image of the company has formed in the market place. And also shows it goodwill which it has crated in the minds of the customers.

Rating the customer service in HDFC Standard life

rating customer service

80% 70% 60% 50% persons 40% 30% 20% 10% 0% exellant good fair poor scale of rating 4% 0% 22% 74%

Analysis This graph shows that the people have rated the customer service better than the other company. Nearly all the customers are satisfied with the facility provided to them. The graph shows that nearly 74% of the customers are satisfied with the working.

Rating unit linked plans as the best plans for the modern era

Rating ULIP plans

80% 70% 60% 50% Persons 40% 30% 20% 10% 0% Excellent Good Scale of rating Fair Poor 4% 0% 22% 74%

The graph shows that there is a great popularity of ULIP plans of HDFC Standard life. Almost 75% 0f the respondents have ranked the plans as the best one in comparison to other companies. Almost 22% of the responds said that the fund performances of ULIP plans are the good one.

The claim process of the company

claim process
80% 80% 70% 60% 50% persons 40% 30% 20% 10% 0% exellant good scale of rating fair poor 12% 8% 0%

The claims process seems to be very much settled in the company, the other company always faces such problems. The company has pad the claims amount in a direct way. It always facilitates the customers with the easiest mode of claims of their amount.

Comparison of traditional plans

comparision of plans

80% 70% 60% 50% persons 40% 30% 20% 10% 0% traditional plans 22%

72%

ulip plans

Loan coverage facility provided by the company

Loan coverage facility

80% 80% 70% 60% 50% Persons 40% 30% 20% 10% 0% Excellent Good Scale of rating Fair Poor 12% 8% 0%

Source of awareness of HDFCSLIC

Knowledge about HDFC Standard Life

42% 33%

45% 40% 35% 30% persons 25% 20% 15% 10% 5% 0% add. friends sources family fc 17% 8%

The people who are know about HDFCSLIC by the different sources. This proportion of people shows that media which are more suitable for awareness and how a company adapts their promotional strategy to increase their market share now here only I describe the way by which people know about HDFCSLIC . The proportion different sources are as fallows: Advertisement Friend Circle Family Member Financial Consultant of HDFCSLIC 33% 17% 8% 42%

People who have life insurance policy of HDFCSLIC

81% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no 19%

In the Bareilly there are percentage of people who know the HDFCSLIC is very high but ratio of people have the life insurance policy are very low only 19% of people have the policy of HDFCSLIC and rest 81% dont have the policy of HDFCSLIC but they have the life insurance policy of other companies. Most of people say that HDFC is the private company and I dont believe in this type of company.

Arrangements for Enquiry & Assistance For enquiry and assistance facility of the HDFCSLIC Bareilly 20% customer of the company says very good 30% customer give his mark for good, 35% are satisfied and 0nly 15% customers accept these facilities are poor.

40 35 30 25 20 15 10 5 0
EL LE NT VE R Y G O O D TO RY G O O D PO O R

Series1

EX C

SA TI S

FA C

CONCLUSIONS & SUGGETIONS The liberalization of insurance sector from the shackles of regulation has no doubt exposed its inherent weakness but at the same time opened up new vistas of growth and opportunities. Furthermore, never before the Indian insurance had faced the threats and challenges of competition so actually. To what extent Indian insurance companies. Will critically depend upon how soon they can relearn the forgotten basics of customer orientation and bring about an improvement in the service standard, which can be matched by only the global standards. However, to enable the insurance system to do so, four conditions need to be fulfilled- i. Emphasis on technology and translate the advantages into customer convenience; ii. Qualification and objective assessment of customer satisfaction across various segments is must; iii. Ensuring level playing field for the public sector insurance by which sufficient autonomy is accorded for accepting/refusing various types of business consideration; iv. Evolving a transparent pricing system based on actual companys analysis and creating adequate awareness among public at large so that general consensus is achieved towards playing a higher price for better service. Good customer service was a challenge in the past as it is at present. Unless insurance companies in India could realign their systems and procedures with customer needs, take proactive stance in not only rendering good quality customer service, but also anticipating their changing as well as latent needs to add value to the service, bringing about total customer satisfaction. HDFC Standard Life insurance continuous to become the biggest challenge before than in the future also. No insurance is an island. A few weeks insurance can bring down/tap the blood of all. There are no doubts each insurance company. Have to formulate and implement its own diagnosis specific and vision matching strategy. Cumulatively, the Indian insurance system as whole must be up graded.

The framework of strategy and constraints that will have to be met by the prescribed solution as under: A strategy that is based on available resources, companys sensitive, and quality enhancing and early- result- yielding will be welcome; The strategy adopted will have to be self renewing in the sense that it will uncover the resources needed, skill needed , expertise required from within rather than from without the insurance system and the country in the very process of implementation; A precondition of course is the change in our mindset recognizing the opportunities of computerization and enhancing the value addition of our insurance companies. Own heritage of systems procedures and human resources, enthroning equality of opportunity facilitating better performance to collect higher rewards. It will weave the safety net that will protect all stock holders, including labor, customers and of course the insurance companies;

Annexure

QUESTIONNAIRE
TOPIC: NAME OF RESPONDENT GENDER... ADDRES....... CONTECT NUMBER RESERCHER NAME: PUSHPANJALI SINGH How many person have any life insurance in any company Yes( ) No( )

Respondent age group(years) 18-30 ( ) 45-60 ( ) 30-45 ( ) >60 ( )

Respondent ,s profession Serviceman ( ) Professionals ( ) Businessman ( ) Others ()

Which type of life insurance policy do you have Protection plan ( ) Investment plan ( ) pension plan ( ) saving plan ( )

Do you have investment plan acoording to age group (year)

18-30 ( ) 45-60 ( )

30-45 ( ) > 60 ( )

Do you have saving plan according to age group (year) 18-30 ( ) 45-60 ( ) 30-45 ( ) >60 ( )

Why do you take policys For security For saving For future need For tax rebate () () () ()

Do you know about HDFC STANDARD LIFE INSURANCE ? YES ( ) NO ( )

Rating the HDFC STANDARD LIFE IN SURANCE ? Exellent ( ) Fair () Good ( ) poor ( )

Rating the custumer service in HDFC STANDARD LIFE INSURANCE ? Exellent ( ) Fair () Good ( ) Poor ( )

Rating the ULIP PLAN 0f HDFC STANDARD LIFE INSURANCE ? Exellent ( ) Good ( ) Fair () Poor ( ) Claim process in the HDFC STANDARD LIFE INSURANCE ?

Exellent ( ) Fair ()

Good ( ) Poor ( )

What type of plan will you want take ? Tradinal plan ( ) Ulip plan ( )

Loan covrage facility provided in the HDFC STANDARD LIFE INSURANCE ? Exellent ( ) Fair () Good ( ) Poor ( )

Sources of awareness of HDFC STANDARD LIFE INSURANCE ? Advertisement ( ) Family member ( ) Friend circle ( ) Fc of HDFC ( )

How many people of Bareilly have policy in HDFCSLIC ? Yes ( ) No ( )

Rank the HDFCSLIC with other PVT Insurance companies in Bareilly ? Exellent ( ) Fair () Good ( ) Poor ( )

Do know about any F.C of HDFCSLIC ? Yes ( ) No ( )

Remarks

.. . Date Place Respondent Signature