IDBI Federal

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INTRODUCTION

IDBI FEDERAL LIFE INSURANCE COMPANY

IDBI Federal Life Insurance Co Ltd. is a joint-venture of IDBI Bank, India's premier

development and commercial bank, Federal Bank, one of India's leading private sector

banks and Ageas, a multinational insurance giant based out of Europe.

IDBI Federal Life Insurance Co. Ltd. was formed on March 2008. In this venture, IDBI

Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. The

Headquarters is located in Mumbai, India.

IDBI Federal became one of the fastest growing new insurance companies. Through a

continuous process of innovation in product and service delivery IDBI Federal aims todeliver world-class wealth management, protection and retirement solutions that provide

value and convenience to the Indian customer.

The company offers its services through a vast nationwide network 2,308 partner bank

branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisorsand partners. As on 31st December 2013, the company has issued nearly 5.5 lakh policies

with a sum assured of over Rs. 32,110.48 crores.

SPONSORS OF IDBI FEDERAL LIFE INSURANCE CO LTD

IDBI Bank Ltd. continues to be, since its inception, India's premier industrialdevelopment bank. It came into being as on July 01, 1964 to support India's industrial

backbone.

Today, it is amongst India's foremost commercial banks, with a wide range of innovative

products and services, serving retail and corporate customers in all corners of the country

from 1201 branches and 2156 ATMs.

The Bank offers its customers an extensive range of diversified services including project

finance, term lending, working capital facilities, lease finance, venture capital, loansyndication, corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients.

As part of its development activities, IDBI Bank has been instrumental in sponsoring the

development of key institutions involved in India's financial sector - National Stock


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Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock

Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).

Federal Bank is one of India's leading private sector banks, with a dominant presence in

the state of Kerala. It has a strong network of over 1,142 branches and 1,312 ATMs

spread across India. The bank provides over four million retail customers with a wide

variety of financial products. Federal Bank is one of the first large Indian banks to have

an entirely automated and interconnected branch network.

In addition to interconnected branches and ATMs, the Bank has a wide range of services

like Internet Banking, Mobile Banking, Tele Banking, and Any Where Banking, debit

cards, online bill payment and call center facilities to offer round the clock bankingconvenience to its customers. The Bank has been a pioneer in providing innovative

technological solutions to its customers and the Bank has won several awards and

recommendations.

Ageasis an international insurance group with a heritage spanning more than 180 years.Ranked among the top 20 insurance companies in Europe, Ageas has chosen to

concentrate its business activities in Europe and Asia, which together make up the largest

share of the global insurance market.

These are grouped around four segments: Belgium, United Kingdom, Continental Europe

and Asia and served through a combination of wholly owned subsidiaries andpartnerships with strong financial institutions and key distributors around the world.

Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong

and UK. Ageas is the market leader in Belgium for individual life and employee benefits,

as well as a leading non-life player through AG Insurance. In the UK, Ageas has a strongpresence as the fourth largest player in private car insurance and the over 50's market.

Ageas employs more than 13,000 people and has annual inflows of more than EUR 21

billion.


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VISION AND VALUES

VISION

To be the leading provider of wealth management, protection and retirement solutions

that meets the needs of our customers and adds value to their lives.

MISSION

To continually strive to enhance customer experience through innovative product

offerings, dedicated relationship management and superior service delivery while striving

to interact with our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and Stakeholders.

Value to Customers: A product and service offering in which customers perceive value.

Rock Solid and Delivery on Promise: This translates into being financially strong,operationally robust and having clarity in claims.

Customer-friendly: Advice and support in working with customers and partners.

Profit to Stakeholders: Balance the interests of customers, partners, employees,

shareholders and the community at large.


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TYPES OF PRODUCTS

CHILDSURANCE: IDBI Federal Childsurance Savings Protection Insurance Plan, asavings plan designed to help customer to ensure that his childs future financial needsare fulfilled. This plan is designed to give customer guaranteed annual payouts to aid the

crucial milestones in his childs life. Whats more, this plan also provides financialprotection to customer childs future by ensuring thatthe plan continues even in customerabsence.

Key Features:

Guaranteed annual payouts to fund important milestones. Bonuses to boost your savings. Live cover for your familys financial security. Future premiums waived off in case of an unfortunate event.

Plan continues till maturity even in the unlikely case of you not being around.

MICROSURANCE:The IDBI Federal Group Microsurance Plan provides affordable lifeinsurance cover to groups. The plan is extremely useful to Micro Finance Institutions,Self Help Groups and NGOs to insure the lives of their group members and thus provide

security to the group members families. The plan can also be used for providing loan

protection to the group members families.

Key Features:

Life insurance covers to group members at affordable cost.

In the event of unfortunate death of a group member during the term of the cover,sum insured will be payable provided all premiums due are paid.

Members aged between 18 and 60 years can be covered. Sum insured between `5,000 and `50,000 per member can be availed. Automatic acceptance of cover without any evidence of health for all groups with

more than 200 members.

Accidental death benefit rider may subsequently be added.

INCOMESURANCE: At IDBI Federal, we understand this need and bring to you IDBI

Federal Incomesurance Guaranteed Money Back Insurance Plan (referred to asIncomesurance hence). This plan gives customer a real guarantee - what you see is what

you get!

Whats more, this plan comes with the benefit of life cover throughout the term of thepolicy!


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Key Features:

Pay premiums only for first 5 years of the policy. Get guaranteed annual payouts from the 6 thto 10thyear of the policy. Flexibility to choose premium amount as per your needs. Protect family with life cover for 10 years of policy term. Get 2 tax benefits of 80C and 10(10D).

LIFESURANCE:A fixed term non-linked participating endowment plan that providescustomer with the twin benefits of long-term savings and life cover. With IDBI Federal

Lifesurance Savings Insurance Plan (referred to as Lifesurance hence), customer smallinvestments will grow to big savings that will help customer realize the dreams that they

have for themself and their family. This plan also offers the benefit of life cover that will

provide financial security to customer family in their absence.

Key Features:

Lump sum payout at maturity. Financial protection against uncertainty. Guaranteed additions to safeguard your savings. Flexibility to choose options as per your needs. Bonuses to boost your savings. Get 2 tax benefits of 80C and 10(10D).

LOANSURANCE: IDBI Federal Life Insurance brings IDBI Federal Loansurance Group

Insurance Plan, a comprehensive solution that enables customer to help protect their

borrowers assets and savings. Through Loansurance they extend peace of mind to theirclients, ensuring that their debt does not become a burden on their family in their

absence. In return, customers are also protected from the risk of non-payment of the loan

due to death of the borrower.

Key Features:

Financial protection to Borrowers. Peace of mind to clients. Customized options to clients to safeguard their dreams. Protection against default in loan repayment. Borrowers Loyalty. Competitive Advantage. Tax Benefits.


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TERNSURANCE: IDBI Federal Termsurance Group Insurance Plan is a pure group term

plan designed to cater to a wide variety of formal and informal groups such as the

employer-employee groups/bank-depositor groups/ customer-supplier groups/professionals/affinity groups. It is a Group Term Insurance plan that provides basic life

insurance protection to the members of the plan.

Key Features:

Death Benefit. Accidental Death Benefit. Terminal Illness Benefit. Tax Benefit.

WEALTHSURANCE:Creating, building and managing wealth has always been a timeconsuming process, but not anymore. Wealthsurance Suvidha Growth Insurance Plan is asimple unit linked plan that helps you take your first step towards wealth creation through

an easy process. You can choose a plan combination as per your future milestones and

sign up for it with a few easy steps. This plan helps to not only build wealth to fulfill yourfuture dreams but also protects your loved ones in case of any unfortunate incident.

Key Features:

Select combination of Premium Payment Term (PPT) and Policy Term (PT),premium amount and fund options.

Select Systematic Allocator to balance growth and safety of your fund over theterm of the policy or manage fund as per your choice.

Avail high guaranteed loyalty additions to boost the growth of your fund. Have liquidity any time after 5 years. Two tax benefits.

RETIRESURANCE:IDBI Federal Retiresurance Group Insurance Plan is a non-linkednon-participating variable insurance plan, designed for employer-employee groups only.

It enables employers with more than 10 employees to outsource the management of their

employees gratuity, superannuation and/ or leave encashment funds.

Key Features:

Death Benefit. Retirement/ Resignation/ Disablement of the member of the scheme.


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ORGANISATIONAL STRUCTURE

National Head

Zonal Head

Regional Head

Branch Head

Manager Distribution


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FINANCIAL PERFORMANCE OF LAST 3 YEARS:

Profit & Loss Account for period ended March 31, 2014


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Balance Sheet as at March 31, 2014


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INDUSTRY OVERVIEW

THE INSURANCE INDUSTRY:

The insurance sector has gone through a number of phases and changes. Insurance in

India used to be tightly regulated and monopolized by state-run insurers. Following the

move towards economic reform in the early 1990s, various plans to revamp the sector

finally resulted in the passage of the Insurance Regulatory and Development Authority

(IRDA) Act of 1999. Significantly, the insurance business was opened on two fronts.

Firstly, domestic private-sector companies were permitted to enter both life and non-life

insurance business. Secondly, foreign companies were allowed to participate, albeit with

a cap on shareholding at 26%. With the introduction of the 1999 IRDA Act, the insurance

sector joined a set of other economic sectors on the growth march.

During the 2003 financial year, life insurance premiums increased by an estimated 12.3%

in real terms to INR 650 billion (USD 14 billion) while non-life insurance premiums rose

12.2% to INR 178 billion (USD 3.8 billion). Growth in insurance premiums has been

averaging at 11.3% in real terms over the last decade. There are strong arguments in

favor of sustained rapid insurance business growth in the coming years, including Indias

robust economic growth prospects and the nations high savings rates.

INDIAN REGULATORY DEVLOPMENT AUTHORITY

The insurance sector has been opened up in India, as there was an urgent need. Theinternational experience indicates those country with a liberalized insurance sector have

witnessed a rapid growth in premium volumes enhancing the domestic saving rate. This

happened in China, Malaysia and Singaporewhere a competitive market has led to

improvement in Services and quicker settlement of claims. And rightly therefore a

decision was taken by the Government of India to open up Insurance sector. The

establishment of IRDA in the month of April 2000 has been important development in

this direction, making the end of monopoly in the insurance sector.

Insurance Regulatory and Development Authority (IRDA) is a statutory body which

regulates and develops theinsurance industry in India. It was constituted by aParliamentof India Act called Insurance Regulatory and Development Authority Act, 1999 and it

was duly passed by theGovernment of India in April, 2000.

The IRDA Act, 1999 also allows private players to enter into the insurance sector in India

besides a maximum foreign equity of 26 per cent in a private insurance company having

operations in India. The FDI limit in insurance sector was raised to 49% in July 2013. It

serves as an Authority to protect the interests of holders of insurance policies, to regulate,
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promote and ensure growth of the insurance industry and for matters connected there

with. IRDA role is to protect rights of policy holders & they provide registration

certification to life insurance companies & responsible for renewal, modification,

cancellation & suspension of this registered certificate.

LEADING PLAYERS IN INSURANCE INDUSTRY:

1. Life Insurance Corporation of India: LIC is the largest and is popular with over2048 branches all over India. LIC still remains the top with new players entering

with customized insurance products. It has gained credibility and consumers trust

that it is able to sustain the insurance business having estimated assets worth Rs.8

trillion.

2. Birla Sun Life Insurance: Birla is the first insurance company initiating insurancebusiness in association with Business Continuity Plan and helping smallcompanies grow bigger. This is a life insurance that is collaboration between Sun

Life Financial Insurance and Aditya Birla Group.

3. HDFC Standard Life Insurance: HDFC Life specializes in providing an array ofsolutions for individuals and groups. This is a joint-venture between UK basedStandard Life and HDFC Ltd, the leading finance institution.

4. SBI Life Insurance Company Ltd: SBI Life Insurance makes highest profit and isthe life insurance offering plans matching different segments from urban to rural

divisions.

5. ICICI Prudential Life Insurance Company Ltd: ICICI Prudential Life Insurance isIndia's trusted private sector insurance company having collaboration with UK

based Prudential Group.


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IDBI Federal