HDFC SLIC-Priyanshu Saxena Aspirant Club House

8/14/2019 HDFC SLIC-Priyanshu Saxena Aspirant Club House

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HDFC STANDARD LIFE INSURANCE1

SIVA SIVANI INSTITUTE OF

MANAGEMENT

A

REPORT

ON

HDFC STANDARD LFIE

INSURANCE

SUBMITTED TOSUBMITTED BY

Priyanshu Saxena-Aspirant Club House


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Mr.B.S.Rao Sir PriyanshuSaxena

Roll No: B2-18

ARIHANT CLUBHOUSE

PGDM BIFAAS



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CONTENTS


Introduction 3Characteristics of Insurance 3Insurance industry classification 4Origin and Development of Insurance

Insurance in the World

Insurance in India

5

6Important milestones in life insurance business in

India

7

Insurance Sector Reforms 8Scenario after Malhotra Committee Report 10

Company Profile 11Span of Organization 13Performance of the company 16Key strengths 17Market Share of top 10 insurance companies 18Plans offered by HDFC

Individual Products

Group Products

Social Products

20

20

21

21Introduction to Unit Linked Funds 24Tax Benefits 26Questionnaire asked to HDFC 27Recommendations 28


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INTRODUCTION

General Definition

In the words of John Magee, Insurance is a plan by themselves which

large number of people associate and transfer to the shoulders of all,

risks that attach to individuals.

Fundamental Definition

In the words of D.S. Hansell, Insurance accumulated contributions of all

parties participating in the scheme.

Contractual DefinitionIn the words of justice Tindall, Insurance is a contract in which a sum of

money is paid to the assured as consideration of insurers incurring the

risk of paying a large sum upon a given contingency.

CHARACTERISTICS OF INSURANCE

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses

incurred.



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INSURANCE INDUSTRY: CLASSIFICATION

Fire Insurance Marine Insurance Mediclaim

Motor Vehicle


INSURANC

LIFE INSURANCE GENERAL


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ORIGIN AND DEVELOPMENT OF INSURANCE

Insurance in the World

Insurance in the modern form originated in the Mediterranean

during 13/14th century. The earliest references to insurance have been found in

Babylonia, the Greeks and the Romans.

The use of insurance appeared in the account of North Italian

merchant banks who then dominated the international trade in

Europe at that time. Marine insurance is the oldest form of insurance followed by life

insurance and fire insurance. The patterns that have been used in

England followed in other countries also in these kinds of

insurance. BABYLONIA the place where insurance was done firstly by traders

to cover the risks of the caravan trade through loans that were

repaid with interest only after the goods had arrived safely. The first life insurance policy was issued on 18 th June 1583, on the

life of William Gibbons for a period of 12 months.



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Insurance in India

The Britishers opened general insurance in India around

the year 1700. The first company, known as the Sun Insurance Office Ltd.

was set up in Calcutta in the year 1710. Insurance companies like Bombay Insurance Company Ltd

was established in 1793.

In 1818 it was conceived as a means to provide for English

Widows . The Bombay Mutual Life Insurance Society started its

business in 1870 . It was the first company to charge same premium for both Indian

and non-Indian lives. The Oriental Assurance Company was established in 1880 . Till the end of nineteenth century insurance business was

almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of

the Life Insurance Companies Act of 1912 and the

provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in

India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the

Insurance Act of 1938 that provided strict State Control over

insurance business.

The insurance business grew at a faster pace after independence.

The Government of India in 1956 , brought together over 240

private life insurers and provident societies under one



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nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born.

Nationalization was justified on the grounds that it would create

much needed funds for rapid industrialization.

Important milestones in the life Insurance business in

India

1912 : The Indian Life Assurance Companies Act enacted as

the first statute to regulate the life insurance

business.

1928: The Indian Insurance Companies Act enacted to

enable the government to collect statistical

information about both life and non-life insurance

businesses.

1938: Earlier legislation consolidated and amended to by

the Insurance Act with the objective of protecting

the interests of the insuring public.

1956: 245 Indian and Foreign insurers and provident

societies taken over by the central govt. and

nationalized. LIC formed by an Act of Parliament LICAct 1956- with a capital contribution of Rs. 5 Crores

from Govt. of India



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INSURANCE SECTOR REFORMS

The Malhotra Committee Report

In 1993, Malhotra Committee, headed by former Finance Secretary and

RBI Governor R. N. Malhotra, was formed to evaluate the Indian

insurance industry and recommend its future direction. In 1994, the

committee submitted the report and gave the following

recommendations:

Structure Government stake in the insurance Companies to be brought down

to 50%.

Government should take over the holdings of GIC and its

subsidiaries so that these subsidiaries can act as independent

corporations.

All the insurance companies should be given greater freedom to

operate.

Competition Private Companies with a minimum paid up capital of Rs.1bn

should be allowed to enter the industry. No Company should deal in both Life and General Insurance

through a single entity.

Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural

market.

Only one State Level Life Insurance Company should be allowed to

operate in each state.



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Regulatory Body.

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry)

should be made independent.

Investments Mandatory Investments of LIC Life Fund in government securities

to be reduced from 75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any

company (There current holdings to be brought down to this levelover a period of time)

Customer Service LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked

pension plans

Computerization of operations and updating of technology to becarried out in the insurance industry

Overall, the committee strongly felt that in order to improve the

customer services and increase the coverage of the insurance

industry should be opened up to competition.

But at the same time, the committee felt the need to exercise

caution as any failure on the part of new players could ruin the

public confidence in the industry.

Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.1 billion. This amount

is not very high for foreign firms, as it translates to only about US$25

million. Further, to date it is unclear whether equity should be payable in



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one go or should be brought in as installments. Also, the foreign equity

participation was to be restricted to only 40%.

The committee felt the need to provide greater autonomy to insurancecompanies in order to improve their performance and enable them to act

as independent companies with economic motives. For this purpose, it

had proposed setting up an independent regulatory body.



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Scenario after Malhotra Committee Report

The Government of India liberalised the insurance sector in March 2000

with the passage of the Insurance Regulatory and Development

Authority (IRDA) Bill, lifting all entry restrictions for private players and

allowing foreign players to enter the market with some limits on direct

foreign ownership. Under the current guidelines, there is a 26 percent

equity cap for foreign partners in an insurance company. There is a

proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread anddeepening of insurance in India and this may also include restructuring

and revitalizing of the public sector companies. In the private sector 15

life insurance companies have been registered. A host of private

Insurance companies operating in life segments have started selling

their insurance policies since 2001. Table shows the current market

players in the life Insurance Industry (Source IRDA).



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COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC

has since emerged as the largest residential mortgage finance

institution in the country The corporation has had a series of share

issues raising its capital to Rs. 119 crores.

HDFC Standard Life Insurance Company Limited was one of the first

companies to be granted license by the IRDA to operate in life

insurance sector. Reach of the JV player is highly rated and been

conferred with many awards. HDFC is rated AAA by both CRISIL and

ICRA. Similarly, Standard Life is rated AAA both by Moodys and

Standard and Poors. These reflect the efficiency with which HDFC and

Standard Life manage their asset

base of Rs. 15,000 Cr and Rs. 600,000 Cr.

Respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14 th

August 2000. HDFC is the majority stakeholder in the insurance JV with



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81.4 %stale and Standard of as a staple pf 18.6% Mr. Deepak

Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of Indias leadingPrivate Life Insurance Companies., which offers a range of individual

and group insurance solutions. It is a joint venture between Housing

Development Finance Corporation Limited (HDFC Ltd.) Indias leading

housing finance institution and the Standard Life Assurance Company,

a leading provider of financial services from the United Kingdom.

Both the promoters are will known for their ethical dealings and

financial strength and are thus committed to being a long-term player

in the life insurance industry- all important factors to consider when

choosing your insurer.

HDFC is the largest housing Company in India for the last 27 years.

Besides the core business of mortgage HDFC has evolved into a

financial conglomerate with holdings In:

o HDFC Standard Life insurance Company- HDFC holds 78.07

%.

o HDFC Asset Management Company HDFC holds 50.1%

o HDFC Bank- HDFC holds 22.25%.

o Intelenet Global (Business Process Outsourcing) HDFC

holds 50%.

o HDFC Chubb General Insurance Company HDFC holds

74%.



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SPAN OF ORGANISATION

Mr. Deepak S Parekh is the Chairman of the Company. He is also

the Executive Chairman of Housing Development Finance Corporation

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

management position in 1978. He was inducted as a whole-time

director of HDFC Limited in 1985 and was appointed as its Executive

Chairman in 1993. He is the Chief Executive Officer of HDFC Limited.

Mr. Parekh is a Fellow of the Institute of Chartered Accountants

(England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in

December, 2000. He is currently the Managing Director of HDFC

Limited. He joined HDFC Limited in 1981 and became an Executive

Director in 1993. He was appointed as its Managing Director in

November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered

Accountants of India and a member of the Michigan Association of

Certified Public Accountants.

Mr. Alexander M Crombie joined the Board of Directors of the

Company in April, 2002. He has been with the Standard Life Group for

34 years holding various senior management positions. He was

appointed as the Group Chief Executive of the Standard Life Group in

March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in

Scotland.

Ms. Marcia D Campbell is currently the Group Operations Director

in the Standard Life group and is responsible for Group Operations, Asia

Pacific Development, Strategy & Planning, Corporate Responsibility and



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Shared Services Centre. Ms. Campbell joined the Board of Directors in

November 2005.

Mr. Keith N Skeoch is currently the Chief Executive in StandardLife Investments Limited and is responsible for overseeing Investment

Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was

working with M/s. James Capel & Co. holding the positions of UK

Economist, Chief Economist, Executive Director, Director of Controls

and Strategy HSBS Securities and Managing Director International

Equities. He was also responsible for Economic and Investment

Strategy research produced on a worldwide basis. Mr. Skeoch joined the

Board of Directors in November 2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a

Fellow of the Institute of Chartered Accountants of India. Mr. Divan was

the Former Chairman and Managing Committee Member of Midsnell

Group International, an International Association of Independent

Accounting Firms and has authored several papers of professional

interest. Mr. Divan has wide experience in auditing accounts of large

public limited companies and nationalised banks, financial and taxation

planning of individuals and limited companies and also has substantial

experience in structuring overseas investments to and from India.

Mr. Ranjan Pant is a global Management Consultant advising

CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002

was a Partner & Vice-President at Bain & Company, Inc., Boston, wherehe led the worldwide Utility Practice. He was also Director, Corporate

Business Development at General Electric headquarters in Fairfield,

USA. Mr. Pant has an MBA from The Wharton School and BE (Honours)

from Birla Institute of Technology and Sciences.



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Mr. Ravi Narain is the Managing Director & CEO of National Stock

Exchange of India Limited. Mr. Ravi Narain was a member of the core

team to set-up the Securities & Exchange Board of India (SEBI) and is

also associated with various committees of SEBI and the Reserve Bankof India (RBI).

Mr. Deepak M Satwalekar is the Managing Director and CEO of

the Company since November, 2000. Prior to this, he was the Managing

Director of HDFC Limited since 1993. Mr. Satwalekar obtained a

Bachelors Degree in Technology from the Indian Institute of Technology,

Bombay and a Masters Degree in Business Administration from The

American University, Washington DC.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a

graduate in law and holds a Master's degree in economics from Delhi

University. She has been employed with HDFC Limited since 1978 and

was appointed as the Executive Director in 2000. She is responsible for

overseeing all aspects of lending operations of HDFC Limited.



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Key Strengths of HDFC

Financial Expertise

As a joint venture of leading financial services groups, HDFC StandardLife has the financial expertise required to manage your long-terminvestments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easilycustomised to specific needs. Our group solutions have been designedto offer you complete flexibility combined with a low charging structure.

Track Record so farOur gross premium income, for the year ending March 31, 2008 stoodat Rs. 4,859 crores and new business premium income stood at Rs.2,685 crores.

The company has covered over 9,59,000 lives year ending March 31,2008.



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MARKET SHARE OF TOP 10 INSURANCE

COMPANIES:

LIC (Life Insurance Corporation of India) still remains the largestlife insurance company accounting for 64% market share. Its

share, however, has dropped from 74% a year before, mainly

owing to entry of private players with innovative products and

better sales force.

ICICI Prudential Life Insurance Co Ltd is the biggest private life

insurance company in India. It experienced growth of 58% in new

business premium, accounting for increase in market share to8.93% in 2007-08 from 6.97% in 2006-07.

Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52%

and its market share went up to 6.98% in 2007-08 form 5.66% in

2006-07. The company ranked second (after LIC) in number of

policies sold in 2007-08, with total market share of 7.36%. SBI Life Insurance Co Ltd in terms of new number of policies sold,

the company ranked 6th in 2007-08. New premium collection forthe company was Rs 4,792.66 crore in 2007-08, an increase of

87% over last year. Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76

crore and its market share went up to 2.96% from 1.23% a year

back. It now ranks 5th in new business premium and 4th in

number of new policies sold in 2007-08.

HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680

crore in FY2007-08, registering a year-on-year growth of 64%. Its

market share is 2.88% and it ranks 6 th among the insurance

companies and 5th amongst the private players. Birla Sun Life Insurance Co Ltd market share of the company

increased from 1.22% to 2.11% in 2007-08. The company moved



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to the 7th position in 2007-08 from 8the a year before, pushing

down Max New York Life insurance company.

Max New York Life Insurance Co Ltd has reported growth of 73%

in 2007-08. Total new business generated was Rs 641.83 crore asagainst Rs 387.51 crore. The company was pushed down to the

8th position from 7th in 2007-08.

Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08,

the company reported growth of 80%, moving from the 11th

position to 9th. It captured a market share of 1.19% in 2007-08.

Last year the company doubled its branch network to 150 from

74. Aviva Life Insurance Company India Ltd ranking dropped to 10th

in 2007-08 from 9th last year. It has presence in more than 3,000

locations across India via 221 branches and close to 40

bancassurance partnerships. Aviva Life Insurance plans to

increase its capital base by Rs 344 crore. With the fresh

investment, total paid-up capital of the insurer would go up to Rs

1,348.8 crore.



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PRODUCTS & SERVICES

The right investment strategies won't just help plan for a more

comfortable tomorrow -- they will help you get Sar Utha ke Jiyo . AtHDFC SLIC, life insurance plans are created keeping in mind the

changing needs of family. Its life insurance plans are designed to

provide you with flexible options that meet both protection and savings

needs. It offers a full range of transparent, flexible and value for money

products. HDFC SLIC products are modern and contemporary unitized

products that offer unique customer benefits like flexibility to choose

cover levels, indexation and partial withdrawals.

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE

INSURANCE

INDIVIDUAL PRODUCTS

Protection Plans

A person can protect his family against the loss of his income or the

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

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

Protection range includes our Term Assurance Plan & Loan Cover Term

Assurance Plan

Investment Plans

HDFC SLICs Single Premium Whole of Life plan is well suited to meet

long term investment needs. This provides attractive long term returns

through regular bonuses.

Pension Plans

http://www.hdfcinsurance.com/products/indi_tap.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_spwlp.aspxhttp://www.hdfcinsurance.com/products/indi_tap.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_lcta.aspxhttp://www.hdfcinsurance.com/products/indi_spwlp.aspx


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Pension Plans help to secure financial independence even after

retirement. Pension range includes Personal Pension Plan , Unit Linked

Pension, Unit Linked Pension Plus .

Savings Plans

Savings Plans offer a flexible option to build savings for future needs

such as buying a dream home or fulfilling your childrens immediate

and future needs.

Endowment Assurance Plan Unit Linked Endowment Plus II Money

Back Unit Linked Enhanced Life Protection II Children's Plan Unit Linked

Young Star Plus II

GROUP PRODUCTS

HDFC Standard Life has the most comprehensive list of products for

progressive employers who wish to provide the best and most

innovative employee benefit solutions to their employees. It offers

different products for different needs of employers ranging from term

insurance plans for pure protection to voluntary plans such as

superannuation and leave encashment.

HDFC SLIC offers the following group products to esteemed corporate

clients:

Group Term Insurance

Group Variable Term Insurance

Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage

corpuses with Gratuity , Defined Benefit or Defined ContributionSuperannuation or Leave Encashment schemes of your company

Also suitable for other employee benefit schemes such as salary saving

schemes and wealth management schemes

SOCIAL PRODUCT

http://www.hdfcinsurance.com/products/indi_ppp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_eap.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_elpII.aspxhttp://www.hdfcinsurance.com/products/indi_cp.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspxhttp://www.hdfcinsurance.com/products/indi_ppp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpp.aspxhttp://www.hdfcinsurance.com/products/indi_ulpplus.aspxhttp://www.hdfcinsurance.com/products/indi_eap.aspxhttp://www.hdfcinsurance.com/products/indi_uleplusII.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_mbp.aspxhttp://www.hdfcinsurance.com/products/indi_elpII.aspxhttp://www.hdfcinsurance.com/products/indi_cp.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/indi_ulysplusII.aspxhttp://www.hdfcinsurance.com/products/grp_gtistdprop.aspxhttp://www.hdfcinsurance.com/products/grp_gvti.aspxhttp://www.hdfcinsurance.com/products/grp_gratuity.aspxhttp://www.hdfcinsurance.com/products/grp_superannuation.aspxhttp://www.hdfcinsurance.com/products/grp_leaveencash.aspx


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Development Insurance Plan

Development Insurance plan is an insurance plan which provides life

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

the death of any member of the group insured during the year of cover,a lump sum is paid to those member beneficiaries to help meet some

of the immediate financial needs following their loss.

Eligibility

Members of the development agency and their spouses with:

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

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

Employees of the Development Agency are not eligible to join the

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

500 members.

Premium Payments

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

and will be the same for all members of the group.

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

single lump sum that includes all premiums for the group to be

covered. Cover will not start until the premium and all the

member information in our specified format has been received.

Benefits

On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their

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

accident, an additional lump sum will be paid equal to half the sum

assured. There are no benefits paid at the end of the year of cover and

there is no surrender value available at any time.



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The role of the Development Agency

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

passing certain administrative tasks onto the Development Agency. Bypassing on these tasks the premium charged can be lower. These tasks

would include:

Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

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

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

such as:

Payment of premiums

Reporting of claims

Keeping policy holder information up to date

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

complete the tasks appropriately. Since these additional tasks willimpose a burden on the Development Agency, the Development

Agency may charge a Rs. 10 administration fee to their members.

Prohibition of rebates

Section 41 of the Insurance Act, 1938 states

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

indirectly, as an inducement to any person to take out or renewor continue an insurance in respect of any kind of risk relating to

lives or property in India, any rebate of the whole or part of the

commission payable or any rebate of the premium shown on the

policy, nor shall any person taking out or renewing or continuing

a policy accept any rebate, except such rebate as may be



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allowed in accordance with the published prospectus or tables of

the insurer

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

above, he shall be liable to payment of a fine which may extendto rupees five hundred



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INTROUCTION TO UNIT LINKED FUNDS

Unit linked plans are based on the component of the premium or the

contribution of the customer towards the plan. This contribution can be

in different modes like yearly, half yearly, quarterly and monthly. Unit

linked plans have multiple benefits like life protection, rider protection,

savings, transparency, investment choices, liquidity and planning for

taxes. These plans work like mutual funds. The premium is collected

from the policy holder. He is allotted a certain number of units based of

his contribution. The Net Asset Value is the value of each unit of the

fund. It is found by subtracting the charges and current liabilities fromthe current assets and investments and dividing this number by the

total number of outstanding units.

Let us take an example. There are 100 investors and each invests Rs.

10 in a fund. The total value of the fund is Rs. 1000 and each person is

allotted 1 unit of Rs 10. Now the money (Rs. 1000) is invested in the

debt or equity market. Suppose the fund value increased by 20%. As a

result the Rs. 1000 invested became Rs. 1200. Hence the value of

every investor is now Rs. 12 and not Rs. 10.

Parameters RBI Bonds Fixed

Deposits

Mutual Funds Unit linked

Safety High High Medium High

Liquidity None High High High

Returns Low Low High High

Life Cover 1 time

amount

1 time

amount

1 time

amount

10 times

Tax benefits Tax free Taxed Taxed Tax free



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We find that life insurance unit linked plans is a good area to invest

money in as it provides liquidity, safety, high returns, life cover and tax

benefits in a single plan. HDFC SLIC offers the option of indexation to

beat inflation. Risk is reduced to a large extent as the company invests

in a diversified portfolio of stocks.



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TAX BENEFITS

INCOME TAX

SECTION

GROSS ANNUAL

SALARY

HOW MUCH TAX

CAN YOU SAVE?

HDFC STANDARD

LIFE PLANS

Sec. 80C Across All

income Slabs

Upto Rs. 33,990

saved on

investment of

Rs. 1,00,000.

All the life

insurance plans.

Sec. 80 CCC Across all

income slabs.

Upto Rs. 33,990

saved on

Investment of

Rs.1,00,000.

All the pension

plans.

Sec. 80 D Across all

income slabs

Upto Rs. 3,399

saved on

Investment of

Rs. 10,000.

All the health

insurance riders

available with the

conventional plans.

TOTAL SAVINGSPOSSIBLE Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,

Rs.3,399 under Sec. 80 D, calculated for a male with

gross annual income

exceeding Rs. 10,00,000.


Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are

completely tax-free, subject to the conditions laid down

therein.


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QUESTIONAIRE asked to HDFC

EXISTENCE

HDFC came into existence somewhere around 38 yrs back, whereas hdfc slic came into existence just8 yrs back (i.e. on 14 th aug-2000).

Different channels of distribution of hdfc are

Sales.[ Retail selling , alternative channel , DST(directsales team) ]

Into retail selling involves selection FOR PROJECT TRAINEES.

Operations

HR

Agency support

Channel department.

Regional manager : Piyush

No of the employees

Presently 140 employees are working in the hdfc slic, Ranigunjbranch.

Different plans they issue for the customers

Pension plans***

Children plans

Endowment plan

Turnover of the HDFC

4 units-----4 business managers----HYD 1---750HYD 2---750



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Documents

HDFC SLIC-Priyanshu Saxena Aspirant Club House