CHAPTER 1 INTRODUCTION OF INSURANCE IN INDIA

INTRODUCTION OF INSURANCE
1.1 History of Insurance in India 1.2 What is Insurance? 1.3 Types of Insurance 1.4 Types of Insurance Policies 1.5 Benefits of ULIPs 1.6 Advantage of Insurance 1.7 Functions of Insurance 1.8 Issues and Challenges 1.1 HISTORY OF INSURANCE IN INDIA In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1stJanuary, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A welldeveloped and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

Important milestones in the Indian life insurance business

1912: The Indian Life Assurance Companies Act came into force for regulating the
life insurance business. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crores and that too from the Government of India. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.

Important milestones in the Indian general insurance business

1907: The Indian Mercantile Insurance Ltd. was set up which was the first company
of its type to transact all general insurance business. 1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns. 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973. 107 insurers integrated and grouped into four companies viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company. 1.2 WHAT IS INSURANCE ? Life Insurance is the key to good financial planning. On one hand, it safeguards your money and on the other, ensures its growth, thus providing you with complete financial well being. Life Insurance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness, critical illness or maturity of the policy. Life insurance plans, unlike mutual funds, are beneficial when you look at them as a long term avenue of investment which also offers protection through life cover. Life insurance policies are broadly categorized into 2 types; Traditional Plans and Unit Linked Insurance Plans (ULIPs). Traditional policies offer in-built guarantees and define maturity benefits through variety of products such as guaranteed maturity value. The investment risk in traditional life insurance policies is borne by life insurance companies. Additionally, the investment decisions are regulated to a large extent by IRDA rules and regulations, ensuring stable returns with minimal risk. Investment income is distributed amongst the policy holders through annual bonus. These policies are ideal for policy holders who are not market savvy and do not wish to take investment risks. ULIPs on the other hand provide a combination of risk cover and investment. More importantly they offer a flexibility to decide your risk taking profile. 1.3 TYPES OF INSURANCES

Unit Linked Plans and Conventional Plans Comparison between Unit Linked Plans and Conventional Plans
Type Unit Linked Insurance Plans Conventional plans Description Unit Linked Insurance Plans offered by insurance companies allow policy holders to direct part of their premiums into different types of funds (equity, debt, money market, hybrid etc.) Here the risk of investment is borne by the policyholder. Conventional Plans are traditional insurance plans. They usually invest in low risk return options and offer guaranteed maturity proceeds along with declared bonuses Flexibility of investment: Unit Linked Plans give you flexibility to invest as per your risk profile, financial commitments and convenience. You can choose to invest either in equity, or in debt or in hybrid fund and even change your investment strategy. These plans do not allow you

to choose investment avenues. Your funds are invested as per the strategy and discretion of the company. Transparency: Most Unit Linked Plans allow you to track your portfolio. They also regularly intimate regarding the percentage of the premium that is invested along with the charges levied. You are also kept informed about the value and number of fund units that you hold. Your premiums are invested in a common 'with profits' fund and therefore you cannot track your individual portfolio. Maturity benefits payout: At the time of maturity you redeem the units collected at the then prevailing unit prices. Some plans also offer you loyalty or additional units annually or at the time of maturity. At the time of maturity you get the sum assured plus bonuses, if applicable in the plan. Partial withdrawal: Unit Linked Plans allow you to make withdrawals from your fund, provided the fund does not fall below the minimum fund value and subject to other conditions. Conventional plans do not allow you to withdraw part of your fund. Instead, some policies offer you the facility to take a loan against your investment. Switching options: Available. You can change your investment fund decision by switching between the funds as being offered by the policy. Not available since the investment decision is taken by the insurance company. Charges structure:

Unit Linked Plans specify the charges. under various heads. These plans do not specify the charges involved Single premium Topup Available. The single premium top-up facility allows you to invest an extra amount over and above your regular premiums in your unit linked plan. The top-up facility is not available Benefit Snapshot Unit Linked Plans give you flexibility of investment They allow you to track your portfolio. Conventional plans offer fixed premiums linked to the sum assured. Unit Linked Plans offer the benefit of a single premium top up which allows you to invest ad hoc additional amounts Unit Linked Plans allow partial withdrawals, subject to conditions and switching between funds by paying some charges, if necessary. Unit Linked Plans give you the option of a premium vacation The maturity benefits for these plans include the sum assured plus bonuses, if applicable 1.4 TYPES OF INSURANCE POLICIES Insurance provides compensation to a person for an anticipated loss to his life, business or an asset. Insurance is broadly classified into two parts covering different types of risks: 1. Long-term (Life Insurance) 2. General Insurance (Non-life Insurance) Long-term Insurance Long term insurance is so called because it is meant for a long-term period which may stretch to several years or whole life-time of the insured. Long-term insurance covers all life insurance policies. Insurance against risk to one's life is covered under ordinary life assurance. Ordinary life assurance can be further classified into following types: Types of Ordinary Life Assurance Meaning 1. Whole Life Assurance In whole life assurance, insurance company collects premium from the insured for whole life or till the time of his retirement and pays claim to the family of the insured only after his death.

2. Endowment Assurance In case of endowment assurance, the term of policy is defined for a specified period say 15, 20, 25 or 30 years. The insurance company pays the claim to the family of assured in an event of his death within the policy's term or in an event of the assured surviving the policy's term. 3. Assurances for Children i). Child's Deferred Assurance: Under this policy, claim by insurance company is paid on the option date which is calculated to coincide with the child's eighteenth or twenty first birthday. In case the parent survives till option date, policy may either be continued or payment may be claimed on the same date. However, if the parent dies before the option date, the policy remains continued until the option date without any need for payment of premiums. If the child dies before the option date, the parent receives back all premiums paid to the insurance company. ii). School fee policy: School fee policy can be availed by effecting an endowment policy, on the life of the parent with the sum assured, payable in instalments over the schooling period. 4. Term Assurance The basic feature of term assurance plans is that they provide death risk-cover. Term assurance policies are only for a limited time, claim for which is paid to the family of the assured only when he dies. In case the assured survives the term of policy, no claim is paid to the assured. 5. Annuities Annuities are just opposite to life insurance. A person entering into an annuity contract agrees to pay a specified sum of capital (lump sum or by instalments) to the insurer. The insurer in return promises to pay the insured a series of payments until insured's death. Generally, life annuity is opted by a person having surplus wealth and wants to use this money after his retirement. There are two types of annuities, namely: Immediate Annuity: In an immediate annuity, the insured pays a lump sum amount (known as purchase price) and in return the insurer promises to pay him in instalments a specified sum on a monthly/quarterly/half-yearly/yearly basis. Deferred Annuity: A deferred annuity can be purchased by paying a single premium or by way of instalments. The insured starts receiving annuity payment after a lapse of a

selected period (also known as Deferment period). 6. Money Back Policy Money back policy is a policy opted by people who want periodical payments. A money back policy is generally issued for a particular period, and the sum assured is paid through periodical payments to the insured, spread over this time period. In case of death of the insured within the term of the policy, full sum assured along with bonus accruing on it is payable by the insurance company to the nominee of the deceased. General Insurance Also known as non-life insurance, general insurance is normally meant for a shortterm period of twelve months or less. Recently, longer-term insurance agreements have made an entry into the business of general insurance but their term does not exceed five years. General insurance can be classified as follows: Fire Insurance Fire insurance provides protection against damage to property caused by accidents due to fire, lightening or explosion, whereby the explosion is caused by boilers not being used for industrial purposes. Fire insurance also includes damage caused due to other perils like storm tempest or flood; burst pipes; earthquake; aircraft; riot, civil commotion; malicious damage; explosion; impact. Marine Insurance Marine insurance basically covers three risk areas, namely, hull, cargo and freight. The risks which these areas are exposed to are collectively known as "Perils of the Sea". These perils include theft, fire, collision etc. Marine Cargo: Marine cargo policy provides protection to the goods loaded on a ship against all perils between the departure and arrival warehouse. Therefore, marine cargo covers carriage of goods by sea as well as transportation of goods by land. Marine Hull: Marine hull policy provides protection against damage to ship caused due to the perils of the sea. Marine hull policy covers three-fourth of the liability of the hull owner (ship owner) against loss due to collisions at sea. The remaining 1/4th of the liability is looked after by associations formed by ship owners for the purpose (P and I clubs). Miscellaneous As per the Insurance Act, all types of general insurance other than fire and marine insurance are covered under miscellaneous insurance. Some of the examples of general insurance are motor insurance, theft insurance, health insurance, personal accident insurance, money insurance, engineering insurance etc. 1.5 BENEFITS OF ULIPs

Unit Linked Plans offer unique opportunity to combine protection with investments. Some special features of Unit Linked Life Insurance Policies (ULIPs) are: Provides flexibility in investments ULIPs offer a complete selection of high, medium and low risk investment options under the same policy. You can choose an appropriate policy according to your risk taking appetite, coupled with the opportunity to switch between fund options without any additional expense. ULIPs provide the flexibility to choose the sum assured and investment ratio in the annual targeted premium. It also offers the flexibility of one time increase in investment portfolio, through top-ups to avail investment opportunity offered by external environment or own income flows. Transparency The charge structure, value of investment and expected IRR based on 6% and 10% rate of returns, for the complete tenure of the policy are shared with you before you buy a product. Similarly, the annual account statement, quarterly investment portfolio and daily NAV reporting, ensures that you are aware of the status of your investment portfolio at all times. Most companies publish latest NAVs on their respective websites. Liquidity To cope with unforeseen circumstances, ULIPs offer the benefit of partial withdrawal; wherein after 3 years you can withdraw funds from our Unit Linked account, retaining only the stipulated minimum amount. Disciplined and regular savings ULIPs help you inculcate a regular saving habit. Also, the average unit costs tend to be lower than one time investment. Multiple benefits bundled in one product ULIP is an outstanding solution for risk cover, long term investments with the benefit of various investment opportunities, coupled with tax benefits. Spread of risk ULIPS are ideal for those investors who wish to avail the benefit of market linked growth without actually participating in the stock market, with the added benefit of risk-cover. 1.6 ADVANTAGES OF INSURANCE Life Insurance provides the dual benefits of savings and security. The following benefits explain why this investment tool should be an integral part of your financial plans. Advantages of Life Insurance Risk Cover

Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Planning for life stage needs Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values. Protection against rising health expenses Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs. Builds the habit of thrift Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages. Safe and profitable long-term investment Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains. Assured income through annuities Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life. Protection plus savings over a long term Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.

Growth through dividends Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus. Facility of loans without affecting the policy benefits Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought. Tax BenefitsInsurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans. Mortgage RedemptionInsurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family. 1.7 FUNCTION OF INSURANCE Primary functions Provides protection: insurance cannot check the happening of risk but can provide for losses of risk. Collective bearing of risk: insurance is a device to share the financial losses of few among many others. Assessment of risk: insurance determines the probable volume of risk by evaluating various factors, which give rise to risk. Provide certainty: insurance is a device, which helps to change from uncertainty to certainty. Secondary Functions Prevention of losses: insurance caution businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions. Small capital to cover large risk: insurance relieves the businessman from security investment, by paying small amount of insurance against large risk and uncertainty. Contribute towards development of large industries 1.8 ISSUES AND CHALLENGES The liberalization followed by growth of the Indian Insurance industry has opened wide opportunities for service and infrastructure sectors. This growth has to be properly canalized. Some of the major challenges, which have to be addressed for canalizing the growth of

insurance sector, are Product innovation Customers are now looking at insurance as complete financial solution offering stable returns coupled with total protection. There is a need to constantly innovate in terms of product development to meet ever-changing consumer needs. Understanding the customer better will enable an Insurance company to design appropriate products, determining price correctly and to increase profitability. In this context Management Guru Peter Duckers has rightly said, Markets are changing from Cost lead pricing to Price lead costing. While companies have been successful in product innovation, most of them are still grappling with right mix of Distribution Channels for: a) Capturing maximum market share to build brand equity. b) Building strong and Effective Customer relationships. c) Cost effective customer service. This calls for Selection of right type of distribution channel mix along with Prudent and efficient FOS (Fleet on Street) Management. 1. Distribution Network While the traditional channel of tied up advisors or agents would be the chief distribution channel, HDFC Standard Life should innovate and find new methods of delivering the products to consumers. Corporate agency, brokerage, banc assurance, e-insurance, cooperative societies and Panchayats are some of the channels, which can be tapped by the company to reach the appropriate market segments. 2. FOS Management The major issues to be addressed in insurance FOS management are High Attrition, lack of Motivation and Product knowledge. Continuous training, performance linked reward systems, and career counselling can effectively tackle these issues. Customer Education and Service Insurance, particularly life insurance is never bought but sold. To convince a large population, which is comparatively not well informed about the intangible benefits of life insurance, is indeed an onerous task. This apart, the task would be to position Insurance as a risk planning tool rather than a tax saving and investment tool. In the present competitive scenario, a key differentiation would be professional customer service in terms of quality of advice on product choice along with policy servicing. Servicing should focus on enhancing

the customer experience and maximizing customer convenience would create sustainable competitive advantage and build long lasting relationship. Investment Management The most difficult challenge would be to provide returns comparable to other financial instruments. The problem is further aggravated by interest rates moving south. Need of the hour for the company is to follow prudent underwriting practices and efficiently cut down management and administrative expenses. Insurers must follow best investment practices and have a strong Asset management company to maximize return.

CHAPTER 2 PROFILE OF HDFC STANDARD LIFE

HDFC STANDARD LIFE
2.1 Introduction to HDFC Standard Life 2.2 Vision & Values 2.3 Awards and Accolades 2.4 Corporate Governance 2.5 Market Watch 2.1 INTRODUCTION TO HDFC STANDARD LIFE HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. Key Strengths Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions They have a range of individual and group solutions, which can be easily customised to

specific needs.Their group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far Their gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 crores. As on March 31, 2009, the company has more than 27 lakh polices in force. Parentage HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9, 00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies. Standard Life Group (Standard Life plc and its subsidiaries) The Standard Life Group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment manager currently administers 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and

pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006. 2.2 VISION & VALUES Vision 'The most successful and admired life insurance company, which means that they are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'. Values Values that they observe while they work: Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity

2.3 AWARDS AND ACCOLADES

Received CIO 'the In genius 100 2009' Award HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award, for ATLAS (Agency Training Licensing and Servicing System). Additionally, the company has received the CIO 100 Security Award 2009 for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence. HDFC Standard has received the CIO 100 Award for the third consecutive year. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment, including Sesame - Identity and Access Management. In 2007, the company received CIO 100 award for Wonders and a Special Award in Storage category. CIO magazine has a long tradition of honouring leading companies for business and technology leadership and innovations through its flagship award program CIO 100. Its a celebration of 100 organizations (and the people within them) that are using IT in innovative ways to deliver business value, whether by creating competitive advantage, optimizing business processes, enabling growth or improving relationships with customers.

Received Diamond EDGE Award 2009 HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the ,Network Computing magazine to identify, recognise, and honour end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders. Network Computing magazine is part of CMP Technology, which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide.

Associate Companies
HDFC Limited HDFC Bank HDFC Mutual Fund HDFC Sales HDFC ERGO General Insurance Other Companies HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd. HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd. HDFC Investments Ltd. HDFC Holdings Ltd. Credit Information Bureau (India) Ltd HDFC Securities HDFCSL Milestone Received the PC Quest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment, including identity management respectively. Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award. HDFCSL expanded its reach in the Banc assurance channel by arrangements with cooperative banks in the rural areas. Continued to increase its focus on quality service, by putting in place a robust mechanism to capture Voice of the Customer through service audits across its offices. This was complemented by use of technology that enabled capture of all interactions with customers across all touch points

Sar Utha Ke Jiyo was honoured as Among Indias 60 Glorious Advertising Moments. The advertisements of the company were ranked 6th amongst The 10 most effective Advertisements in September 2007. Received the PC Quest Best IT Implementation Award 2007 for Wonders, its pathbreaking implementation of an enterprise-wide workflow system. In addition the company also bagged the EMC storage award for being the most innovative users of storage and storage management. Pension Plan Tops Mints Survey of Best TV Ads. HDFC Standard Lifes advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards organised by the Advertising Agencies Association of India (AAAI). The 3 awards are the highest won by any single brand in the financial services business (including banking, mutual fund, insurance and other financial services). Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity Economic Times, the leading business publication of India. 2.4 CORPORATE GOVERNANCE The Corporate Governance Policy provides the framework under which the Board of Directors operates. It includes its corporate structure, culture, policies and the manner in which it deals with various stakeholders. The governance policies address the responsibilities, authority and administration of the Board of Directors. The policies also include the responsibilities of the Principal Officer and define the reporting relationships. Timely and accurate disclosure of information regarding the financial situation, performance, board constitution, ownership of the company etc. is an important part of corporate governance. Corporate governance arrangements are those through which an organisation directs and controls itself and the people associated with it. Risk Management Risk management is a critical function in the Investment process and is monitored at multiple levels like Fund risk, Operational Risk, Market Risk and Stock / Instrument Specific Risk. also believe that discipline is critical in managing funds over a longer tenure. We have therefore set different benchmarks for the funds we manage and fund performance is closely

monitored against the set benchmarks. We strive to generate higher risk-adjusted returns over a longer period of time. To sum up, our endeavour is to generate for our policyholders, consistent, riskadjusted returns in a disciplined and repeatable manner with the aim of beating the defined benchmarks by active fund management. 2.5 MARKET WATCH Almost all good businesses engage in pain today, gain tomorrow activities Charlie Mugger Equity markets April was a lacklustre month for Equity markets globally and in India. The markets across the world had a subdued month and barring USA most markets traded down during the month. For the month SENSEX and NIFTY were almost flat with just 0.2% and 0.6% gains respectively. The broader market outperformed the main benchmark Indices with BSE500 index and BSE MIDCAP index being up by 1.8% and 5.6% respectively during the month of March. Foreign Institutional Investor (FIIs) remained buyers in the secondary market for the third consecutive month. FIIs bought Rs99 bn worth of Indian equities in cash market in April. Domestic mutual funds remained sellers for the eighth consecutive month and sold Rs.14 bn during the month. Data points released during the month gave further evidence of strong domestic recovery. First the trade data for the month of February showed merchandise exports growth of 35.3% year on year (YoY) on top of a 11.5% % increase YoY in January. Trade deficit narrowed slightly to USD9.0bn versus USD10.4bn in December due to imports growing slowly to USD25.1bn from USD24.7bn of January levels. The growth in Index of Industrial Production (IIP) was slightly lower than consensus estimates. IIP grew 15.1% Y-o-Y in February 2010, on top of 16.7% Y-o-Y growth in January. Manufacturing sector reported strong growth of 16.0% YoY, while Mining and Electricity grew by 12.2% and 6.7% respectively. The monthly Wholesale Price Index (WPI) growth continued its upward trajectory and was 9.94% for the month of March versus 9.89% for February. On the commodity front, commodities were mixed during the month. Crude oil ended up

2.9% at USD86.15 per barrel for the month. While Lead and Nickel were up 2.9% and 5.2% respectively, Copper, Aluminium, Zinc and Tin declined by 1.1%-4.6.0% during the month. WPI inflation is near peak according to the most economists and government estimates. In its review of Annual Monetary policy, the Reserve Bank of India (RBI) hiked the repo reverse repo and Credit reserve ratio (CRR) rates by 25bps each effective April 24. The repo rate now stands at 5.25%, while reverse repo is at 3.75%. The CRR now stands at 6%. The RBI move was largely on the expected lines. Also tone of the RBI was hawkish "Domestic balance of risks has shifted away from growth slowdown to inflation. Policy stance to reflect transition but follow a calibrated approach amidst potential risks to growth from global economy". Also RBI has projected 8.0% GDP growth for FY11 with upward bias and it has projected 5.5% WPI inflation for March 2011.We believe that rising inflation expectations and high commodity prices will force further action on monetary front from the RBI in coming months. We expect that WPI inflation to remain high due to rising commodity prices and high liquidity in the system. We expect manufacturing growth going forward to remain robust for some more time. Due to heavy FII buying, the Rupee appreciated by 1.2% against the US dollar during the month. The G-Sec yield for 10 year ended up by 19bps during the month. We believe that interest rates in India could rise further as RBI withdraws liquidity and worries on the high fiscal deficit resurface if oil sector reforms are not undertaken soon. Therefore, we feel that rate sensitive sectors could underperform in the near term. Banking credit growth is also showing clear signs of pickup and RBI has projected 20% non-food credit growth for FY11 versus 17% in FY10. The global situation remains mixed as USA continues to emit positive data flow while Europe sees more troubles. During the month S&P downgraded the sovereign rating of Greeces to junk grade. Even rating of Spain and Portugal was downgraded to AA and A respectively. Increasing government debts and high fiscal deficits world over is leading to fears of downgrades of sovereign ratings in the developed world. Also, we believe that as monetary

and fiscal stimulus is withdrawn, we could see some pressure on risky assets in general and equity markets in particular. However, given higher sustainable growth in emerging markets, the asset allocation will continue to favour emerging markets like India and we expect healthy FII flows even in CY2010. Real estate, Banks, Power, IT, Auto and FMCG stocks outperformed during the month. Oil & Gas, Metals and Capital goods stocks were underperformers during the month. The valuation gap in mid cap and large cap stocks has narrowed as midcap stocks outperformed the large cap stocks during the month. The market valuations are above their historical mean at about 17.3x FY11 earnings for SENSEX consensus estimates, which are building in about 23% EPS growth over FY10. We believe that estimates are reasonable and as of now and have little upside. However, we remain positive on the earnings growth in the longer term and believe that growth in India is secular. Barring the global risks, we remain optimistic on the markets. What should the investors do? a. Stay Invested Investors are advised to stay invested in the equity markets keeping in mind the long-term growth potential. India as a country is at an inflection point. With over 3,000 stocks getting traded every day, opportunities are immense for the investor and the fund manager. Investing is more about patience and discipline and less about timing. b. Decide and stick to your asset allocation While equity is expected to deliver a higher return than bonds over a longer period of time, commensurate with the higher risk, investors should stick to their decided asset-allocation strategy. E.g. If your equity allocation is 50% and market rises 10%, decide your review period (6 months or 1 year) and book profits to bring your asset allocation in equity back to 50%. Vice versa if the market falls. Do remember that with rising interest rates, the debt portfolio yields too are on the rise. Also need to do this considering your own financial profile and life stage consult our financial consultant for assistance. c.) Stick to quality Indian companies have realized, in the last few years that their target audience is now the global market and no longer only the Indian market. This is a paradigm shift from a strategy perspective. Using their strong balance sheets, the domestic market

leaders are able to acquire companies, enter new markets faster and roll out their costeffective processes, employed in their existing markets. Any price corrections will have lesser impact on such companies. d.) Diversify The Indian market will have different themes at different points of time. It is difficult for any investor to time the market or any particular sector. Diversification, amongst quality players, will continue to pay-off. Debt markets Update Highlights The Annual Monetary Policy unveiled by RBI during the month was the key event for the bond markets during April. The key takeaways from the policy were Repo / Reverse Repo and CRR raised by 25 bps each. The quantum of the hikes were lower than the market expectations. Inflation is a key concern for RBI, as the phenomenon of food price led inflation was spreading to non-food items and becoming more generalised. Non-food items inflation at 4.7% in March up from 0.4% in November, 2009. Industrial Growth becoming more widespread and Service sector showing higher level of activity The RBI Governor emphasised the calibrated (possibly indicating only 25bps hike in each step) nature of Monetary Policy tightening. We expect that if each hike is only of 25bps, then RBI will raise rates more frequently. Auction for the 3G telecom spectrum got underway. The auctions are expected to last for about 2 weeks. Analysts are forecasting net revenue accruals to the Government from the spectrum auction to top Rs 500 bn, significantly higher than the Rs 350 bn that was budgeted by the Government. This additional revenue will help the Government to cover for some of the expected slippages in its budgeted deficit. FII inflows into domestic debt have seen a sharp jump since the beginning of the year. The cumulative debt investments stand at USD 12.86 bn, as at the end of April, of which USD 5.4 bn was added in the first four months of the calendar. FII investments in domestic debt are subject to a limit of USD 5 bn for Government of India paper, and at USD 15 bn for Corporate bonds. Within these limits, the exposure to Government paper was almost fully used up with further limits available in Corporate bonds investments. WPI inflation came in at 9.90% y-o-y for the month of March 2010, narrowly avoiding the expectations of double digit inflation. However, revisions to the provisional numbers have been large, and we may yet see double digit inflation, once the final numbers are out. This high level of inflation may prove to be a local maxima as the expected decline in food prices and the base effect may more than offset the rise in the price levels. The lower trending inflation, however, does not provide much

comfort as the current rise in prices is led by non-food items. Moreover, any adjustment of domestic fuel prices will only add to the inflationary pressure. The fiscal crisis in Greece passed another milestone as the country was offered a Euro 110 bn assistance package by the Euro Zone and IMF. This monetary assistance is expected to cover the refinancing as well as the deficit financing needs of the country for the coming 2 3 years. Greece was able to get the aid package after promising some drastic reduction in its fiscal deficit, with a target of bringing the deficit under 3% of GDP by 2013. However, the markets did not seem to be impressed. Fears of a contagion to the other troubled European countries as well as scepticism over Greeces compliance with the tough conditionalities still run high. Market Outlook The dovish RBI Policy in April was the turning point for the month, as the market unwound some of the aggressive rate hike expectations priced into the bond yield levels. The calibrated steps of s and the successful bidders are expected domestic fuel prices. The first action will increase the revenue to be an enduring feature of the bond markets during the year. We will keep evaluating the market yields for any opportunities to add positions that offer higher value for the risk being added. unwinding the Monetary Policy stimulus also appeared to rule out any aggressive rate hikes by RBI. However, going forward the bond markets are expected to see greater volatility. The system liquidity continues to be comfortable, despite the CRR hike. This liquidity may reduce after the ongoing telecom spectrum auction concludes to borrow from the banks to meet their obligations. Moreover, expectations of further rate hikes from RBI will keep short end yields under pressure. Yields at the longer end are expected to move higher as the adverse supply-demand gap starts kicking in. Moreover, the high non-food inflation is also expected to keep RBI on a tightening path and more rate hikes will be on the cards. Crude Oil prices are also expected to adversely impact the Governments finances, as the current domestic fuel prices are leading to huge under recoveries for the Oil marketing companies. These shortfalls will have to be covered by a Government subsidy or an increase in the do Governments deficit and also borrowing requirements for the Government, while the alternative solution may end up pushing inflation higher. At the portfolio level, we will continue to maintain a conservative position, with a focus on generating returns from yield accruals over duration. The steep yield curve makes it attractive

for holding short duration positions. The sharp rally post the April Monetary Policy was contrary to our expectations. However, we expect that the current move will be shortlived and we expect that the volatility will continue to be an enduring feature of the bond markets during the year. We will keep evaluating the market yields for any opportunities to add positions that offer higher value for the risk being added.

CHAPTER 3 PROFILE OF ICICI PRUDENTIAL LIFE

ICICI PRUDENTIAL LIFE
3.1 Introduction to ICICI Prudential Life 3.2 Vision & Values 3.3 Promoters 3.4 Fact Sheet of ICICI Prudential 3.5 Products of ICICI Prudential 3.6 Awards & Recognition 3.1 INTRODUCTION TO ICICI PRUDENTIAL LIFE ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential began its operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, nation-wide team comprises of over 580 offices, over 230,000 advisors; and 23 Bancassurance partner. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. As ICICI grow its distribution, product range and customer base, continue to tirelessly uphold its commitment to deliver world-class financial solutions to customers all over India. The ICICI Prudential Edge - What makes us No. 1?

The ICICI Prudential edge comes from its commitment to customers, in all that company do be it product development, distribution, the sales processor servicing. Here's a peek into what makes us leaders. ICICI prudential products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps company develop Education plans that offer the ideal way to truly guarantee child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after retire, or Health insurance that arms customer with the funds you might need to recover from a dreaded disease. Having the right products is the first step, but it's equally important to ensure that customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products Robust risk management and underwriting practices form the core of business. With clear guidelines in place, ICICI ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. Entrusted with helping its customers meet their long-term goals, ICICI Prudential adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term 3.2 VISION & VALUES Vision of ICICI Prudential: To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to policyholders Providing an enabling environment to foster growth and learning for employees And above all, building transparency in all its dealings. The success of the company will be founded in its unflinching commitment to 5 core values - Integrity, Customer First, Boundary less, Ownership and Passion Values of ICICI Prudential: Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of company success. 3.3 PROMOTERS ICICI Bank is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs3446.58 bn (USD 79 billion) as on

March 31, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call canters and internet banking to ensure that customers have access to its services at all. Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over 251 billion of funds worldwide (as of 31December 2006). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. 3.4 FACT SHEET OF ICICI PRUDENTIAL THE Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs. 20.60 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. As of March 31,2007, the company garnered Rs. 4,843 crores of weighted retail + group new business premiums and wrote over 1.96 million retail policies. The company has assets held to the tune of over Rs. 15,000 crores. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the

highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its position as the No.1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of March 31, 2007 the company has over580 offices across the country and over 234,000 advisors. The company has over 22 Banc assurance partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,Idukki District Cooperative Bank, Jalgaon Peoples Co-operative Bank,Shamrao Vithal Co-op Bank, Ernakulum Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Singly Urban Co-operative Bank, Baramati Co Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Cooperative Bank 3.5 PRODUCTS OF ICICI PRUDENTIAL Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions: SavenProtect is a traditional endowment savings plan that offers life protection along with adequate returns. Cash Back is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a childs higher education or purchase of an asset. It is available for terms of 15 and 20 years. Life Time Super& Life Time Plus are unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options -Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi Balanced. Life Link Super is a single premium unit linked insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for longterm wealth creation.

Invest Shield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. Invest Shield Cash back is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options. Protection Solutions Lifeguard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. Child Plans Education insurance under the Smart Kid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. Smart Kid plans are also available in unit-linked form - both single premium and regular premium. Retirement Solutions Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. Life Time Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5,10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement. Life Link Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options. Health Solutions Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care

approach to managing the condition. Diabetes Care Plus also offers life cover. Hospital Care: is a fixed benefit plan covering various stages of treatment hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. Group Insurance Solutions: ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Prudential offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. Group Term Plan: ICICI Prudential's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. Ivan accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in unauthorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death. Waiver of Premium: In case of total and permanent disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with Life Time Super, Life Time Super Pension and Cash Plus. 3.7 AWARDS & RECOGNITION

India's Most Customer Responsive Insurance Company Avaya Global Connect - Economic Times Customer Responsiveness Awards Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003, 2004 and 2005 Prudence Customer Centricity Award 2004 & 2005. Prudential Corporation Asia Best Life Insurer 2003 Outlook Money Awards 2003 & 2004 IMM Award for Excellence Institute of Marketing & Management Organisation with Innovative HR Practices India Group of Institutes Super brand 2003-04 Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence Silver Effie for Effectiveness of the Retire from Work not life Advertising campaign Effies 2003 RECOGNITIONS IMM Award for Excellence Institute of Marketing & Management Organisation with Innovative HR Practices India Group of Institutes Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence