DISCLAIMER. This request for Expression of Interest (EOI) is not an offer by the Department

DISCLAIMER This request for Expression of Interest (EOI) is not an offer by the Department of Posts, India, but an invitation to receive responses from eligible interested firms for providing project consultancy on Long Term Strategy for Life Insurance Business of Department of Posts. No contractual obligation whatsoever shall arise from the EOI process unless and until a formal contract is signed and executed between Department of Posts, India and the bidder(s) concerned. Department of Posts, India reserves the right not to proceed with the project. 1

Schedule for Submission of EOI Event Availability of EOI Document at DoP Date & Time 14.01.2011 (10:00 hrs) Website Last date and time for submission of 11.02.2011 (15:00 hrs) completed EOI document Opening of EOI 11.02.2011 (16:00 hrs) The EOI document can be downloaded from the website: www.indiapost.gov.in Alternatively, the document can also be obtained in person from Asstt. Manager, Directorate of Postal Life Insurance, Department of Posts, Chanakyapuri, New Delhi 110 021 on any working day between 1100 to 1600 hours up to 10.02.2011 The completed application, containing two hard copies and one soft copy (on a non-rewriteable CD) of the EOI, should be submitted in a sealed cover super scribed with the title Expression of Interest for Consultancy on Long Term Strategy for Life Insurance Business of Department of Posts, before the last date and time at the following address: Ms. Hena Usman Addl. General Manager Directorate of Postal Life Insurance Department of Posts Chanakyapuri New Delhi 110 021 Tel No. +91-11-24673958,24671317 Fax No. +91-11-26876809/26882838 e-mail: agmhplidte@gmail.com 2

Late Applications: Any application received after the last date and time for submission of the same, i.e., 11.02.2011, 1500 hrs, shall not be accepted. Applications received after the last date shall be summarily rejected and returned unopened. 3

NOTICE INVITING EOI Government of India Ministry of Communications & IT Department of Posts Directorate of Postal Life Insurance Chanakyapuri New Delhi 110 021 No. 29-23/2010-LI Dated: 14 th January, 2011 INVITATION FOR EXPRESSION OF INTEREST (EOI) For Long Term Strategy for Life Insurance Business of Department of Posts Department of Posts, India invites applications for Expression of Interest (EOI) from experienced and reputed firms or a consortium of firms for providing comprehensive consultancy on Long Term Strategy for Life Insurance Business of Department of Posts. Detailed terms and conditions are prescribed in the EOI document, which can be downloaded from the website: www.indiapost.gov.in Alternatively, the document can also be obtained in person from Asstt. Manager, Directorate of Postal Life Insurance, Department of Posts, Chanakyapuri, New Delhi 110 021 on any working day between 1100 to 1600 hours up to 10.02.2011.. 4

The last date for submission of completed application, in a sealed cover super scribed Expression of Interest for Consultancy on Long Term Strategy for Life Insurance Business of Department of Posts, is 11.02.2011, up to 1500 hours (IST). Applications would be opened on the same day at 1600 hours (IST) in the presence of available applicants or their representatives. The applications will be evaluated in accordance with the pre-qualification and evaluation criteria to shortlist applicants as prescribed in the EOI document. Thereafter, the Request for Proposal (RFP) will be sent to the short listed applicants only. Ms. Hena Usman Addl. General Manager Directorate of Postal Life Insurance Department of Posts Chanakyapuri New Delhi 110 021 Tel No. +91-11-24673958,24671317 Fax No. +91-11-26876809/26882838 e-mail: agmhplidte@gmail.com 5

DEFINITIONS Applicant means a reputed Indian/foreign consultancy firm or a consortium of firms having a base in India and having the requisite experience who has applied for the invitation for EOI. Application means the EOI submitted by an Applicant in the prescribed format. DoP or India Post means Department of Posts, Government of India. EOI means Expression of Interest. RFP means Request for Proposal. PLI / RPLI means Postal Life Insurance / Rural Postal Life Insurance. 6

SECTION I EXPRESSION OF INTEREST (EOI) FOR Long Term Strategy for Life Insurance Business of Department of Posts I. INTRODUCTION India Post started Insurance operations in the year 1884 as a welfare measure for the employees of the Posts and Telegraphs Department, but soon extended its benefits to various departments of the Central and State Governments. Now benefits of Postal Life Insurance is open for employees of all Central and State Government Departments, Nationalised Banks, Public Sector Undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided by the Government etc. In 1995, Life Insurance business was extended to rural areas under Rural Postal Life Insurance (RPLI) to provide insurance cover to people living in rural areas with special emphasis on women and weaker sections of society. II. OBJECTIVES As of now, there are about 5 million policies under PLI with a Sum Assured of Rs.58,132 Crore. The average growth rate of PLI in terms of premium income is about 32%. 7

Further, under RPLI, there are about 13 million policies with the Sum Assured of Rs.67,162 Crore. The growth rate of RPLI was 60% in terms of premium income in 2009 10 over 2008 09. The Department is committed to expanding insurance cover to reach a target of about 100 million customers in a few years time. Post liberalization and opening up of the insurance sector to private insurers, several new business models of insurance have been launched which coupled with a regulatory and competitive environment are posing fundamental threat to the existing business models and requiring industry participants to make some significant shifts. Given the recent regulatory changes, government policies and the need for greater participation in the evolving but still growing life insurance market, Department of Posts wants a thorough diagnostic re look at its entire operating strategy including a structural framework in the insurance Division and to develop a road map for the future. III. SCOPE OF WORK OF THE CONSULTANCY ASSIGNMENT Department of Posts has approved a project for Long Term Strategy for Life Insurance Business of Department of Posts. In that regard, the consultants chosen shall focus on the following areas as a part of the assignment: 8

1. Analysis of insurance market, including future outlook for growth and profitability, Scope for expansion of products and clientele and key success factors for an organization to succeed. 2. In-depth study of insurance operations and models of other postal administrations around the World. 3. Detailed diagnostic of DoP s insurance business to identify core strengths and capability gaps in the organization with special emphasis on analyzing whether existing business model is equipped to: (i) make insurance the key revenue driver for the Department of Posts; (ii) address the need for expansion of clientele and introduction of new products; (iii) effectively handle the mandate for providing insurance cover to people living in rural areas especially women and weaker sections of society; (iv) effectively service policies through the existing postal network and workforce comprising postal employees and Gramin Dak Sewaks. 4. Developing the long term strategy for the insurance business of the DoP including but not restricted to: (i) Overall strategy towards the life insurance business so as to make insurance the key revenue driver for the DoP. (ii) Product development and marketing strategy that defines the key customer segments and customer value proposition (iii) (iv) Associated sales and distribution model for the target customer segments Operating model e.g., under-writing, policy issuance, policy and customer servicing (v) Organizational structure and operational network which would be required so as to make PLI / RPLI more competitive in the market while leveraging on the trust which it presently enjoys. 9

(vi) Organizational Structure required: Authority, Company or existing set up which will enable the insurance business to expand further so as to make it the key revenue driver of the DoP; be more independent and competitive and also take care of the requirements of conformity to extant laws and regulations required to be followed in the conduct of insurance business. Various models of regulator with regard to insurance activities available internationally should also be studied while making the above recommendations. (vii) Organization design including design of performance management systems and KPIs, incentive programs, MIS capabilities and tools and processes in line with the best practices in the insurance business IV. TIME SCHEDULE FOR CONSULTANCY It is envisaged that the Consultancy report will be submitted within six months after the award of the target. Interim reports will be submitted every two months for further consideration by the DoP. V. CONFLICT OF INTEREST: The selected applicants shall not engage in activities that conflict with the interest of the client (DoP) under the contract and they would not engage in any assignment that would be in conflict of interest with their current obligations to the same or other clients. The selected applicants that have a business or family relationship with such members of DoP staff who are directly or indirectly involved in the project will not be awarded the contract. 10

VI. PRE-QUALIFICATION General Criteria (i) The consultant firm should be in operation for at least five years in India. The consulting firm s annual turnover in the last three years in India should not be less than Rs. 100 crore per year (ii) The consultant organization should have significant domain knowledge of the insurance sector through prior experience in assignments globally and/or in India (iii) The consultant organization should have proven track record of having executed projects similar to the assignment proposed with life insurance organizations/companies in the last five years. (iv) The consultant should have in-house capability to take up the assignment and not through any associate friendly organizations, subsidiaries, contacts etc. (v) The consulting firm should not have been blacklisted/debarred/disqualified by any regulator/ statutory body or Government entity or any international or national agency for corrupt or fraudulent practices (vi) The EOI and all associated correspondence shall be written in English and shall conform to prescribed formats. (vii) EOI received by facsimile shall be treated as defective, invalid and rejected. Only detailed and complete EOI received prior to the closing time and date for submission of the EOI shall be taken as valid. (viii) Two hard copies and one soft copy (on a non-rewriteable CD) of the EOI prepared in accordance with the procedures enumerated in the EOI document should be submitted in a sealed envelope to the Department of Posts not later than the date and time laid down herein. 11

(ix)) All documents submitted by the applicant should be signed on each page by an authorized signatory. (x) The firms may form a consortium to complement their respective areas of expertise, or for other reasons. The consortium may take the form of a joint venture. In case of a joint venture, all members of the joint venture shall sign the contract and shall be jointly and severally liable for the entire assignment. The Department of Posts would only deal with the lead member in such cases. Special Criterion Firms which do not have any past experience in providing consultancy to (for projects similar to the proposed project, i.e. Long Term Strategy for Life Insurance Business of Department of Posts) Insurance Organizations/Other Companies, shall be summarily disqualified. VII. VALIDITY OF PROPOSALS Responses to this EOI submitted by the bidders shall remain valid for a period not less than six months from the last date for submission of EOI response. DoP reserves the right to reject any proposal which does not meet this requirement. VIII. AMENDMENT OF EOI At any time prior to the deadline for submission of responses, DoP for any reason may modify the EOI by amendment by updating the DoP s website (www.indiapost.gov.in) and such amendment shall be binding on bidders. DoP, at its discretion, may extend the deadline for the submission of responses. 12

IX. CONFIDENTIALITY: Information relating to the examination, clarification and comparison of the EOI shall not be disclosed to any persons not officially concerned with such process until the process is over. Undue use of confidential information related to the process by any firm may result in rejection of its EOI. X. CLARIFICATION TO EOI: The bidders may seek clarifications in writing regarding the EOI document within one week of issue of EOI. DoP shall respond in writing to any such request for the clarifications and all such clarifications shall be posted on India Post website www.indiapost.gov.in XI. CRITERIA FOR EVALUATION: The EOIs would be evaluated on the basis of the following criteria: Serial No. Criteria Weightage 1. Past Experience of the Firm 40% a. Number of years of experience of operating in India 10% (Minimum 5 years) as on 31 st March 2010 i. Experience between 5 to 10 years 5 ii. Experience of 10 or more years 10 b. Global Experience in providing Consultancy for Projects of 10% similar nature to Postal Life Insurance Organizations/other organizations i. Experience of 1 to 2 projects 5 ii. Experience of more than 2 projects 10 c. Experience in consultancy for Life Insurance projects of 20% similar nature in India i. Experience of 1 to 2 projects 10 ii. Experience of more than 2 projects 20 2. Experience of Key Personnel 40% a. Team Leader- In at least one project of similar nature with 20 Life Insurance Organizations/Companies b. Domain Expert- In at least one project of similar nature in 15 Life Insurance c. IT Professionals- In at least one project of similar nature 5 3. Financial Strength of the Firm (or Prime Applicant in 20% case of Consortium) a. Turnover Figures for the last Three Years 10% Qualifying turnover should be at least Rs. 100 crores Average turn over for 3 years (2007-08, 08-09,09-10) i. Between Rs. 100 to Rs.250 crores 5 13

ii. More than 250 crores 10 b. Average Net Profit for the last Three Years 10% i. Up to Rs. 50 crores 3 ii. More than Rs. 50 crores 7 All applicants obtaining more than 50% score on the basis of evaluation of EOI would be short-listed for issue of the RFP. XII. PROCESS TO BE FOLLOWED (i) This is not a Request For Proposal (RFP) and commercials should not be submitted with the EoI response. Any EoI response received with commercials will be rejected summarily (ii) The cost of preparing and submitting the EoI shall have to be borne by the consulting firms and the DoP reserves the right to reject any or all of the EoIs and/or annul the entire process without assigning any reason what so ever. (iii)interested consulting agencies are requested to submit their EoI as per the prescribed format given in Section - II. Documentary proof must be submitted for all claims made by the consulting agencies. The EoI, in the prescribed format on company letter-head, must be submitted in a sealed cover titled EoI Long Term Strategy for Life Insurance Business of Department of Posts and DELIVERED on any working day (Monday to Friday 10 AM to 6 PM) upto 11.02.2011, 15:00 hrs to the following address: Ms. Hena Usman Addl. General Manager Directorate of Postal Life Insurance Department of Posts Chanakyapuri New Delhi 110 021 Tel No. +91-11-24673958,24671317 Fax No. +91-11-26876809/26882838 e-mail: agmhplidte@gmail.com 14

(iv) The last date for submission of the EoI will be up to 11.02.2011, 15:00 hrs. (v) EoI responses received after this time and date will NOT be entertained under any circumstances. In case of the designated last day being declared a public holiday, the same will be extended to the next working day. (vi) This request for Expression of Interest is not an offer by the DoP, but an invitation to receive response from eligible interested bidders for consultancy for the project Long Term Strategy for Life Insurance business of Department of Posts for DoP. XIII. ISSUE OF REQUEST FOR PROPOSAL (RFP): On the basis of evaluation of EOIs, applicants would be short-listed. Only short- listed applicants will be issued a Request for Proposal (RFP) document containing detailed Scope of work/ Terms of Reference, Eligibility cum Evaluation criteria including requirement of key personnel and other project formats etc. XIV. RIGHT TO TERMINATE THE PROCESS: (i) DOP may terminate the EOI process at any time and without assigning any reason. DOP makes no commitments, explicit or implicit, that this process will result in a business transaction with anyone. (ii) This EOI shall only be deemed to invitation to offer and does not constitute a commitment to conduct procurement, or an offer of a contract or prospective contract. DOP shall not be liable for any costs incurred by any potential vendor in the preparation and submission of information in response to this EOI. 15

SECTION II PART I FORMAT FOR SUBMISSION OF EOI Notice No. 30-116/2008-D Project Title: EXPRESSION OF INTEREST (EOI) FOR LONG TERM STRATEGY FOR LIFE INSURANCE BUSINESS OF DEPARTMENT OF POSTS. Use the format below to provide consultant organization and experience (in management consultancy business as on 31 st March 2010). 1. Details of the Firm: a. Name: b. Legal Status: Individual/ Association/ Joint Venture/ Consortium c. Registered Address, Tel. No., Fax: d. Contact Person, Designation and Address including Tel. No., Fax, e-mail: 2. Brief Profile of the Firm: 3. Past Experience of the Firm: a. Number of Years in Business in India: b. Global experience in providing consultancy for projects of similar nature to Postal Administrations/Other Companies: c. Experience in consultancy for Life Insurance projects of similar nature in India: 4. Experience of Key Personnel: Please provide, as an annex to this form, abridged CV(s) of no more than one page (for each individual) in respect of key personnel with relevant experience as indicated in para XI of this EOI document: 5. Financial Strength of the Firm: a. Average Turnover figures for the last three years: b. Average Net Profit for the last three years: 16

PART II Format for Submission of Project Credentials Please provide details of a maximum of three (3) projects meeting the experience criteria supported by client certificate. The project experience statement shall be provided in the prescribed format given below: Title Description Client Name Address of the Client Client Reference Name & Designation: Phone No.: e-mail ID: Project Title Type of Project Project Scope (in brief) Project Location(s) Value of the Project (in INR only) Status of the Project (completed/ongoing) 17