Bajaj Alians Orignal

8/2/2019 Bajaj Alians Orignal

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EXECUTIVE SUMMARY

This internship report consists of the overall experience of online working as a part of

HDFC Standard Life Insurance Co. Ltd. This experience helped me understand the

basic functioning of the organization where I was inducted.

My Internship program - Project Title: Job Satisfaction of HDFC SLIC.

The best learning experience was that I started from the very basics of getting to that

position and not from the position itself. This helped me get useful insight and

understanding of online marketing, the benefits to the members as well as the HDFC

Standard Life Insurance Company.

Training sessions were held to give me insights about How to create markets and write

comments on other members markets and to encourage and appreciate them for their

nice efforts and creative markets.

I also learnt how to work online for such a nice company HDFC Standard Life

Insurance Co. Ltd which enhanced my knowledge, writing skills and communication.


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COMPANY PROFILE


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AN OVERVIEW

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj

Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,

stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001

to conduct General Insurance business (including Health Insurance business) in

India. The Company has an authorized and paid up capital of Rs 147 crores. Bajaj

Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

In its first year of operations, the company has acquired the No. 1 status among the


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private non-life insurers. As on 31st March 2006 Bajaj Allianz General Insurance

maintained its leadership position by garnering the premium income of Rs.1285

crore. Bajaj Allianz has made a profit after tax ofRs.52 crores.

Bajaj Allianz today has a network presence in over 100 towns spread across the

length and breadth of the country. From Surat to Siliguri and Jammu toThiruvananthapuram, all the offices are interconnected with the Head Office at

Pune.

In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a

premium income of Rs. 842 crores, achieving a growth of 35% and Net profits rose

to Rs.27 Crores.


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BUSINESS ASSOCIATES

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India

and also one of the largest manufacturers in the world. Bajaj Auto has been inoperation for over 55 years. As a promoter of Bajaj Allianz General Insurance

Company Ltd., Bajaj Auto has the following to offer: Vast distribution network.

Knowledge of Indian consumers.

Financial strength and stability to support the insurance business.

Visit Bajaj Auto's Website www.bajajauto.com

Allianz AG, Germany

Allianz AG is in the business of General (Property & Casualty) Insurance; Life &

Health Insurance and Asset Management and has been in operation for over 110

years. Allianz is one of the largest global composite insurers with operations in

over 70 countries. Further, the Group provides Risk Management and Loss

Prevention Services. Allianz has insured most of the world's largest infrastructure

projects (including Hongkong Airport and Channel Tunnel between UK and

France), further Allianz insures the majority of the fortune 500 companies, besides

being a large industrial insurer, Allianz has a substantial portfolio in the

commercial and personal lines sector, using a wide variety of innovative

distribution channels.

Allianz AG has the following to offer Bajaj Allianz General Insurance Company

Ltd. :

Set up and running of General insurance operations

New and improved international products
http://www.bajajauto.com/http://www.bajajauto.com/


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One of the world's leading insurance companies

More than 700 subsidiaries and 2 lac employees in over 70 countries

worldwide

Provides insurance to almost half the Fortune 500 companies

Technology

Other similar businesses

The promoters have also incorporated a Life insurance Company in India, called

Bajaj Allianz Life Insurance Company Limited to provide life insurance solutions.
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VISION, MISSION, VALUES AND LEADERSHIP STYLE OF BAJAJ

ALLIANZ CO.

VISION

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurerfor creating shareholder value

Mission

As a responsible, customer focused market leader, we will strive to understand the

insurance needs of the consumers and translate it into affordable products that

deliver value for money.

Values

Meeting commitments made to external and internal customers. Foster Learning, Creativity and Speed of Response. Respect for Dignity and potential of individuals. Loyalty and pride in the company. Team playing. Zeal to Excel. Integrity and Fairness in all matters.


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Leadership Style

To faster and sustain organized values. Empowering with responsibilities and accountability at all levels. Visionary. Courage, Credibility, Compassion and Visibility. Timely recognition, feedback and counseling. Communication, information sharing and consultations. To be role model.

A Partnership Based on Synergy

Bajaj Allianz General Insurance Company offers technical excellence in all areas

of General and Health Insurance as well as Risk Management. This partnership

successfully combines Bajaj Auto's in-depth understanding of the local market and

extensive distribution network with the global experience and technical expertiseof the Allianz Group. As a registered Indian Insurance Company and a capital base

of Rs. 147 crores, the company is

Fully licensed to underwrite all lines of general insurance business includinghealth

OBJECTIVES AND POLICIES


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To maintain a leading position as supplier of systems, equipments andservices to National / International standards and to attain a high level of

customer confidence.

Design, procurement, supply and execution of systems and equipments forTransmission Projects to meet requirements of customers stated as well as

implied, statutory aspects and National / International standards.

To acquaint customers on operation and maintenance of the equipment andsystems.

Identification of new areas of business in which BAJAJ ALLIANZ CO. mayenter.

FUNCTIONS

Give suggestions to various departments whether to enter in collaboration ornot.

Arrangement of various Customer Appreciation Programmes.

EMPLOYEE SATISFACTION

CONCEPT OF EMPLOYEE SATISFACTION


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Employee satisfaction is the end feeling of a person after performing a

task to the extent that a persons job fulfils his dominant needs and is

consistent with his expectations and values.

Employee satisfaction, like happiness, can be defined in terms of the

extent of positive rather than negative emotions experienced, in this

case at work, or as a reflective, cognitive state of satisfaction with the

work, the pay, and other aspects of the job (Argyle, 1987). A third

component of happiness and therefore of employee satisfaction, is the

absence of anxiety, depression or other signs of mental ill health. A

related concept is organizational commitment, that is the extent to

which a person is committed to work as such, his or her career isattached to the job loyal to the organization, or to the union.

MEASUREMENT OF EMPLOYEE SATISFACTION

The most widely used measure is a very simple. One overall job

satisfaction can be assessed by simple questions such as choose one of the

following statements, which best tells how well you like your job: I hate it.

I dislike it, I am enthusiastic about i t, I love it (Hoppock, 1935). A

number of similar general questions can be put together and the replies


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averaged. This can be done by using four point or five point scale

depending upon various factors, the kinds of study undertaken nature of

respondents etc.

Another way of finding out how much people really like their jobs is to ask

them if they would work if it were financially unnecessary.

Later measures have used a series of scales to measure different

components of job satisfaction. Many scales have been devised for this

purpose: one book reviews no less than 249 scales of various kinds (cook

et al., 1981). However the most widely used is the job description index,

which contains five scales seventy-two items in all, which are answered

yes, no or uncertain (Smith et al., 1969). The five scales are designed

to measure satisfaction in the following areas: (I) work on present job e.g.,

fascinating; (2) present pay, e.g., income inadequate for normal expenses (-

); (3) opportunities for promotion e.g., fairly good chance for promotion;

(4) supervision on present job e.g., lazy (-); (5) people on present job e.g.,

talk too much (-). The minus signs show reversed items, i.e., those that

show dissatisfaction.

There has been a great deal of research on these scales. They predict

overall job satisfaction, especially the work on present job scale.

Additional scales have been devised for use with managers to measure

satisfaction with subordinates and with the firm (Qarr and routledge,

1969).

Work may produce other forms of satisfaction of which people are unaware

until they lose their jobs. Research on the employed has found a number

of hidden benefits of work: it structures and organizes time, provides

social contacts outside the family, links the individual to broader goals and

purposes gives status and sense of identity, provides a raised level of

activity etc.


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JOB SATISFACTION AND JOB BEHAVIOUR

Vroom (1964) has done an excellent job of examining the relationship between job

satisfaction and varius aspects of job behaviour and perhaps summarizing his

findings is the best way of giving the reader an overview. Vroom categorizes

studies in terms of which job behaviours are correlated with job satisfaction.

Specifically, he groups them into studies of turnover, absenteeism, accidents, and

job performance.

Satisfaction and turnover

There is a consistent negative relationship between job satisfaction and the

probability of resignation.

Satisfaction and absentieem

Thre is a less consistent negative relationship beween job satisfaction and

absences.

Satisfaction and accidents

There is some indication of a negative relationship between job satisfaction and

accidents.

Satisfaction and job performance

There is no simple relationship between job satisfaction and job performance.


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DETERMINANTS OF EMPLOYEE SATISFACTION

The work itself: This is a major cause of employee satisfaction as a

whole, and particularly of the component of it known as intrinsic job

satisfaction. Hockman (1980) suggested that five features of work produce

such satisfaction. Many studies have investigated this issue and the latest

meta-analysis found the following average correlation with job satisfaction

(a) task identity (completing a clear and identifiable piece of work (b) task

significance the degree to which the job has an impact on the lives of

others; (c) skill variety (d) autonomy (the degree to which the job

[provides freedom, independence and discretion (e) feedback the extent to

which information about effectiveness is available.

Different occupations: There are very large differences between

occupations and the job satisfaction they provide.

In some surveys it has been found that the most satisfied workers are

university teachers, scientists, the clergy and social workers is probably

because their work has the right job characteristics, such as challenge,

autonomy and skill variety. Some of the most discontented workers are

those on assembly lines. They use a fairly low level of skill have little skill

variety, have very little autonomy, and do not complete an identifiable

piece of work: they do badly on all the job characteristics needed for

intrinsic satisfaction.

Pay: In a number of studies people have been asked to rank various

sources of job satisfaction and pay has usually come out among the first. It

is more a source of dissatisfaction than satisfaction: in some studies as

many as 80 per cent of employees were discontented with their pay. In job

satisfaction scales, contentment with pay is always one of the main

components, and gives a reasonably good prediction of overall satisfaction.


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Many people try so hard to increase their pay in one way or another that it

would be surprising if pay was not an important source of satisfaction

some go on strike some try to be promoted others do a second job.

However across the population pay has a surprisingly small correlation

with happiness or satisfaction. But within organizations there is acorrelation between job satisfaction and pay, after other variables have

been held constant although it is still small.

Relative pay is a better predictor of job satisfaction than the absolute

amount paid. People at work have a clear idea of what they ought to the

paid in comparison with others, and in relation to their skill, experience,

etc. it is widely believed that performance, seniority, age education etc.should be recognized and regarded by higher pay. If there is a discrepancy

between what employees think they should be paid and what they are paid.

They are dissatisfied. They were paid in the past, although inflation makes

accurate comparisons difficult and probably increases satisfaction with

current pay a little.

Security: Findings on the importance of security are contradictory. Theresults depend on the country and historical period in which studies have

been carried out .When people are worried about losing their jobs this is

found to spread to discontent with all other aspects of their. The people

who are most concerned about security are those in the lower income

group, and whose parents were in unskilled or semi-skilled jobs-

presumably because there is less security for less skilled workers. On the

other hand, it is also found that more intelligent people are also very

interested in long-term security. In Britain some of the elements of security

are provided by the state health and unemployment insurance and pensions.

What workers would really like is guaranteed employment; despite a

greatly improved employment situation.


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Status: There is a strong correlation between status and job satisfaction,

both in terms of status within an organization and of the social class

generally believed to be associated with different occupations. On the

other hand the most highly paid people managers administrators and

doctors are less satisfied and more stressed than university teachers,scientist and the others. In they enjoy the use of skills and the company of

their coworkers for example. The main negative feature of high status jobs

is that they can be more stressful.

Promotion prospects : American surveys show that opportunity for

advancement is usually ranked first or second in importance. Herzberg et

al., (1959) found that achievement, recognition and advancement were themain causes of positive satisfaction and estimates of the likelihood and

promotion. On the other hand, if people expecting promotion do not get it

they will be discontented. The importance of promotion is quite different

for people in different social classes and at different skill levels. For

managerial and professional people work is part of a career and promotion

is of the highest importance. For unskilled and semi-skilled workers

promotion is less likely and is less sought after.

Working groups : Many studies have found that the working group is one

of the most important components of job satisfaction. The Human relations

movement emphasized the importance of social factors at work and while it

underestimated the importance of other factors, such as pay and the work

itself, the findings are still valid. Co-workers can be a major source of help

at work there is often a great deal of joking fun and gossip and they can

provide social support at times of stress. Coworkers produce job

satisfaction under the following conditions;

a. Cohesiveness: Satisfaction is greatest in cohesive groups. Theconditions for cohesiveness are discussed elsewhere frequent interaction

group members of similar background and values democratic leadership


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skills, members brought together by the work flow in a cooperative

manner etc. a number of studies have shown that labour turnover is

much less in cohesive groups.

b. Popularity: There is a close correlation between popularity andsatisfaction and unpopular members usually leave.

c. Group size: Smaller groups have higher satisfaction than larger ones;the reason is probably that in smaller groups each members can exert a

lot of influence and talk as much as he or she likes while in large groups

the majority will be at the lower and of the dominance hierarchy.

d. Opportunities for interaction: Satisfaction is high when there areopportunities for interaction and reduced when noise or physical

separation makes this different.

Supervision: Satisfaction with superiors is the second source of social

satisfaction at work and is ranked as less important than that with co-

workers; tropically the two fall third and seventh in order of importance

supervision was mainly a source of periods of dissatisfaction in the

Herzberg studies, and another study found that there was a great deal of

conflict with supervisors. Supervisors may make demands for more or

better work may be felt to treat different subordinates unfairly, may be

seen as distant hostile or unsympathetic. On the other hand supervisors can

provide benefits that are partly material partly social they are a greater

source of instrumental tangible help than co-workers. They can help with

promotion pay rises and conditions of work: they can do more to solve

difficulties at work than either co-workers or spouses. The social rewards

which supervisors can provide include praise, encouragement and the

creation of a pleasant social atmosphere. Support from supervisors can

reduce the effects of stress on anxiety and depression. Most supervisors

feel that helping people in this way is part of the job. But the social side of


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the relationship is made difficult by the difference in power, status and

salary.

Characteristics of organization: Several aspects of organizational

structure affect job satisfaction.

Size: Satisfaction is greater in smaller companies and absenteeism is much

less. Smaller size can be achieved by decentralization.

Levels: Satisfaction is greater when there are fewer levels in the hierarchy,

i.e., in organizations, which are smaller or have a larger spans on control.

Participation in decisions or administration produces higher job

satisfaction. There may be participation in formal works committees, it

may be used by supervisors, or it may be used by management when some

change is being introduced.

Other aspects of the company mentioned in surveys are managers their

training and skills the nature of contacts with them; personnel policies

appraisal schemes; relations with trade unions liberal or conservative

attitudes; pride in company and product based on public reputation social

importance etc.

Individual differences: Extroverts are happier than introverts and this is

partly because they have more favorable experiences at work; this in turn

is partly because they get on better with people and enjoy social contacts

more. Neuroticism is negatively correlated both with job satisfaction and

with happiness in general probably because neurotics find more things

stressful and cause of anxiety and distress. Individual lacking in social

skills, intelligence, physical attractiveness or other aspects of competence

and personal resources are also unhappier.

Job satisfaction depends on the fit between personality and job. If an

individuals profile of need matches the profile of rewards offered by the

job he or she will be more satisfied. The most obvious fit, which is needed,


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is between employees knowledge and skills and those required by the job.

It does not matter from the organizations point of view if employees are

over qualified but it does matter for the employee. Those high in

achievement motivation prefer more challenging jobs, and show more

correlation between performance and satisfaction. Those with strong socialneeds are happier as members of close-knit, cooperative groups.

More highly educated and more intelligent people are generally more

satisfied because they usually do more interesting and challenging jobs.

However, if they are not doing jobs of this nature they are less satisfied.

Age and sex: It is usually found that older people are more satisfied with

their jobs. The effect is greatest for intrinsic satisfaction. It is partly

because older people have more rewarding and higher status jobs, but there

is still a correlation with age when such rewards have been held constant.

The most likely reason is that for older people aspirations and attainments

come closer so that they almost meet. In other words older people become

more adjusted to their work situation. They may also be able to adjust the

work situation to their needs for example by changing jobs or by alteringtheir conditions of work.


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THE EFFECT OF EMPLOYEE SATISFACTION

Health and mental health: Low job satisfaction is correlated with high

rates of anxiety, depression, psychosomatic symptoms and coronary heart

disease. (PPR) mental health is more closely as societal with (low) job

satisfaction than it is with features of the job suggesting that job

satisfaction is an intervening state in the causal chain. However to some

extent job satisfaction and mental health are probably both affected by

similar features of work; repetitive, machine paced work bad supervision,

conflict with co-workers and other forms of stress. In particular the

combination of low status and low-grade work is associated with

dissatisfaction and with dissatisfaction and with poor health, but therecould be several reasons for this including a tendency from those in poor

health to gravitate to poor job.

Social support from co-workers and supervisors is a major source both

of job satisfaction and positive mental health. It can buffer the effects

of stress at work more effectively than core sources of social support.

People in stressful jobs are in particular need of support form cohesiveworking groups or socially skilled supervisors.

Life satisfaction: Job satisfaction is one of the main factors in overall life

satisfaction, although it is less important than marriage and family life.

Some attempts to clarify the direction of causation have found that both

direction operate others that it is job satisfaction which influences life

satisfaction. Another possibility is that areas of work and non-work have a

lot in common such as friendship status similar styles of behavior and that

they jointly affect satisfaction with life as a whole. Another study

concluded that we suspect that how one effectively evaluates various life

concerns relates to essentially one phenomenon at the global level.

Perceptions of general well begin. kinds of satisfaction is a top -to-bottom

one i.e., general well being affects job satisfaction


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Individual needs and individual experience = Job

satisfaction

KNOWLEDGE

CONTRACT

Individual needs

For existing skill andknowledge to be used and

developed to the extent that

the individual wishes.

Individual experience

Skills and knowledge

adequately used. facilities for

knowledge development were

present in all firms although

there were some criticisms ofthere were some criticism of

these.

Fit

Good on use of skills

Quite good on development.

PSYCHOLOGICAL

CONTRACT

Individual needs

Opportunities for selfactualisation, the process by which

an individual achieves personal

growth, expressed by our

programmers and systems analysts

as a demand for self development

and responsibility individual

experience.

Opportunities for self development

existed (see knowledge contract).Opportunities for responsibility

good in present job.

Fit

Good on self development.

Good on responsibility in short

term.

TASK CONTRACTIndividual needs

For a set of tasks which fit

needs for

skill variety targets and feedback task identity work autonomyIndividual experience

Needs for skill variety, targetsand feedback, task identity and

work autonomy wee extremely

well catered for

Fit

Very good. This was seen as

the critical variable in the job

satisfaction of computer

specialties.

EFFICIENCY CONTRACTIndividual needs

For an equitable effort-rewardbargain

For acceptable workprocedures and controls

For acceptable supervisorycontrols


Pay acceptable Work procedures and controls

acceptable

Supervision acceptable Lack of positive guidance for

some

Fit

Good


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ETHICAL (SOCIAL VALUE) CONTRACT

Individual needs

For an employer whose values do not conflict with the individual's own

values, particularly in the sphere of human relationships


Little conflict of values when the reference group of the computer man

was his own company or EDP department. A potential for conflict if he

identified too much with the user.

Fit

Good, given continuance of existing technical values.


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Job Satisfaction and OCB

It seems logical to assume that job satisfaction should be a major determinant of

an employees organizational citizenship behaviour (OCB). Satisfied employees

would seen more likely to talk positively

About the organization, help others, and go beyond the normal expectations in

their job. Moreover, satisfied employees might be more prone to go beyond the

call of duty because they want to reciprocate their positive experiences. Consistent

with this thinking, early discussions of OCB assumed that it was closely linked

with satisfaction influences OCB but through perceptions of fairness.

There is a modest overall relationship between job satisfaction and OCB. But

satisfaction is unrelated to OCB when fairness is controlled for. What does this

mean? Basically, job satisfaction comes down to conceptions of fair outcomes,

treatment, and procedures. If you job satisfaction is likely to suffer significantly.

However, when you perceive organizational processes and outcomes to be fair,

Active

EXITVOICE

ConstructiveDestructive

NEGLECT LOYALTY

Passive


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trust is developed. And when you trust your employer, youre more willing to

voluntarily engage in behaviors that go beyond your formal hob requirements.

Job Satisfaction and Customer Satisfaction

Employees in service jobs often interact with customers. Since the management of

service organizations should be concerned with pleasing those customers, it is

reasonable to ask: Is employees who have regular contract with customers, the

answer is Yes.

The evidence indicates that satisfied employees increase customer satisfaction and

loyalty. Why? In service organizations, customer retention and defection are

highly dependent on how front-line employees deal with customers. Satisfied

employees are more likely to be friendly, upbeat, and responsive- which customers

appreciate. And because satisfied employees are less prone to turnover, customers

are more likely to encounter familiar faces and receive experienced service. These

qualities build customer satisfaction and loyalty. In addition, the relationship

seems to apply in reverse: Dissatisfied customers can increase an employees job

dissatisfaction. Employees who have regular contact with customers report that

rude, thoughtless, or unreasonably demanding customers adversely effect the

employees job satisfaction.

A number of companies are acting on this evidence. Service- oriented businesses

such as FedEx, Southwest Airlines, American Express, and Office Depot obsess

about pleasing their customers. Toward that end, they also focus on building

employee satisfaction-recognizing that employee satisfaction will go a long way

toward a contributing to their goal of having happy customers. These firms seek to

hire upbeat and friendly employees, they train employees in the importance of

customer service, they reward customer service, they provide positive employee

work climates, and they regularly track employee satisfaction through attitudes

surveys.


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BAJAJ ALLIANZ CO. GROUP SAVINGS LINKED INSURANCE

SCHEME

The BAJAJ ALLIANZ CO. Group Savings Linked Insurance Scheme provides an

insurance cover for all the regular employees and promotes savings to provide

financial assistance to the employees / beneficiaries at the time of retirement or

insurance cover in the event of death while in service.

Amount insured for different categories of employees is as under:

Category - Salary Grade wise Sum Assured(Rs.)

AI/BI to A VI/B VI grades, S-0, all temporary

employees recruited against regular vacancies

either on daily rated wages or on consolidated

wages SAI/SBI and equivalent categories.

10,000/-

AVII/BVII to AXI/BXI, SA1/SB1

to SA3/SB3, Jr. Executives20,000/-

E1 to E4 and other equivalent grades. 40,000/-

E5 and above. 80,000/-

PREMIUM P.M.( In Rs.)

Sum Assured Monthly

Premium

Risk Portion Savings Portion

10,000/- 13.50 5.00 8.50

20,000/- 27.00 10.00 17.00

40,000/- 54.00 20.00 34.00

80,000/- 108.00 40.00 68.00


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ITS BENEFITS

On the death of the member while in service, the assurance benefit applicable to

the category together with the amount with interest due to the credit of member

employee in the running account shall become payable to the beneficiary.

On reaching superannuation or earlier cessation of service other than death, the

total amount of savings portion in the credit of the member employee during theperiod of membership together with the interest thereon shall become payable to

the member employee.

Contribution paid by the member employee towards the savings portion will

qualify for deduction under Income Tax.

GROUP INSURANCE SCHEME

The BAJAJ ALLIANZ Employees Group Insurance Scheme one year renewal

term assurance plan provides graded insurance cover.

The coverage commences from the time of joining service to the end of calendar

day of the cessation of service.

Category and Salary Grade Sum Assured (Rs.)

AI/BI to AVI/BVI grades, S-0, all temporary

employees recruited against regular vacancieseither on daily rated wages or on consolidated

wages

10,000/-

AVII/BVII to AXI/BXI & SAI/SBI to

SAIII/SBIII, Jr. Executives

20,000/

E1 to E4 and other equivalent Grades. 35,000/-

E5 and above 50,000/-

ITS BENEFITS

On the death of the employee while in service, the category wise assurance

benefit is paid to the beneficiary as appointed by the employee. The prescribed

form of appointment of Beneficiary(ies) is to be signed by the employee on the


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date of entry to the scheme. In the event of the employee not having a family ordependents, he shall appoint legal personal representative to be his/her

BAJAJ ALLIANZ CO. EMPLOYEES HOUSING LOAN GROUP

INSURANCE SCHEME

This scheme provides for an insurance policy available upto Rs. 15 Lakhs tocover the outstanding housing loan of employees who are the members of the

scheme. In the event of death of the borrower employee covered under the

scheme, the housing loan and interest thereon outstanding as on the date of death

subject to a maximum of Rs.15 lakh will be paid by the insurer (currently LIC)

to the company which in turn will adjust it against HBA and interest thereon

outstanding on the date of death of employee or will pass on the same to the

lending agency in case the loan has been drawn by the borrower employee.

The insurance coverage is to the total loan outstanding at the beginning of the

policy year or subsequent enhancement subject to a ceiling of Rs. 15 lakhs.

In case of housing loans taken by the employees from housing finance agencies,

the interest does not remain outstanding. As it accrues it is recovered every month

and therefore in the event of death of the borrower, the interest does not remain

outstanding and hence coverage of interest portion of the borrowing does not arise

HOUSE BUILDING ADVANCE AND INTEREST SUBSIDY SCHEME

House Building Advance (HBA) will be granted to Company employees on

regular establishment with not less than five years of continuous service.

Employees working in BAJAJ ALLIANZ CO. Overseas Offices/Project Sites are

also eligible for the grant of HBA for construction/acquisition of a house,

ownership flat at any place of their choice in India .

Where both husband and wife are employees of the Company, the house building

advance shall be admissible to only one of them.

The flat rate of housing loan interest subsidy (HLIS) to employees whothemselves or whose spouses undergo sterilisation is Rs 42/- per ten thousand per

month on the qualifying amount subject to fulfillment of various conditions. This

will be admissible to the employees who are sanctioned interest subsidy on

housing loans as per company rules under BAJAJ ALLIANZ CO. Interest

Subsidy Scheme
http://10.23.30.241/pmanualtoday/SSF4-page-5.htm#6.2#6.2http://10.23.30.241/pmanualtoday/SSF4-page-5.htm#6.2#6.2


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Other Employees Insurance Policies

It consists of:

1. Group Personal Accident Policy2. OVERSEAS MEDICAL INSURANCE SCHEME3. INDIVIDUAL PERSONAL ACCIDENT INSURANCE POLICY

DEATH RELIEF FUND SCHEME

The BAJAJ ALLIANZ CO. Employees Death Relief Fund Scheme gives

monetary assistance to the families of the members who die while in service of

the company. Scheme covers all categories of employees who have voluntarilyenrolled themselves as members of the scheme. The scheme is administered by a

committee formed by respective unit management.

Re. 1.00 per member collected, as contribution on death of the constituent member

will be paid to the next of the kin or to the provident fund nominee. Death of a

member will be notified by the Personnel Department and the payment will be

made within 45 days of the death.


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BAJAJ ALLIANZ CO. RETIRED EMPLOYEES' CONTRIBUTORY

HEALTH SCHEME

The scheme is intended to extend medical cover to the retired BAJAJ

ALLIANZ CO. employee and his/her spouse and spouse of an employee who

dies while in service, subject to the certain conditions.

The beneficiaries will also be entitled to the medical attendance and treatment

from other panel Doctors, including Specialists to whom they are specially

referred for consultation/treatment by the Company Doctors. The medicines

prescribed by the outside Doctors in such cases will, however, be supplied to the

beneficiaries only from the Company hospitals/dispensaries, and no

reimbursement will be allowed for purchases of medicines or payment for

diagnostic tests etc.

However, expenditure incurred on consultations, diagnostics test and medicines in

emergencies/odd hours/problems of logistics will be reimbursed upto Rs.1,000/-

in a financial year on submission of prescriptions and cash memos. Thereimbursement of these charges will be done as per rates prescribed in BAJAJ

ALLIANZ CO. Schedule. This amount can be claimed on conclusion of the

financial year.


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SPECIAL INCENTIVE PAYMENT

Employees who are not eligible for Bonus under the Payment of Bonus Act are

paid Special Incentive. The payment on this account is linked to the performance

under the MOU and is regulated as per the categorisation of the Company's

performance by the Government.

ANNUAL PAYMENT OF BONUS

Annual Payment of Bonus in the Company is regulated strictly in accordance with

the provisions of the Payment of Bonus Act, 1965, as amended from time to time.

The rates of bonus are computed with reference to and on the basis of the

statements of accounts maintained by the manufacturing units

FESTIVAL ADVANCE

The festival advance up to the limit of one month basic pay will be admissible

only for the following festivals:

1. Pongal

2. Republic Day

3. Id-ul-fitr

4. Holi

5. Ram Naumi

6. Id-ul-zuha

7. Vaikasi Visakam (for Tiruchy only)


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8. Muharram

9. Independence Day

10. Janam Ashtami

11. Ganesh Chaturthi

12. Onam

13. Dussehra

14. Diwali

15. Guru Nanak's Birthday (in units other than Tiruchy)

16. Christmas

VEHICLE ADVANCE

FIRST ADVANCE

1. Motor Car:

The amount of advance is limited to 35 months basic pay or Rs.1,20,000 or the

anticipated cost of the motor car whichever is the least. The advance and interest

thereon is recoverable in not more than 200 equal monthly instalments or

remaining number of months available for recovery till superannuation whichever

is less.

2. Motor Cycle/Scooter:

The amount of advance is limited to Rs.15000/- or the anticipated cost of the

vehicle whichever is less . The amount of advance and interest thereon is


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recoverable in not more than 90 equal monthly instalments or remaining number

of months available for recovery till superannuation whichever is less.

3. Moped (such as Luna/Suvega/Vicky etc.):

The amount of advance is limited to Rs.9000/-, or anticipated cost of the vehicle

whichever is less. The amount of advance and interest thereon is recoverable in

not more than 80 equal monthly instalments or remaining number of months

available for recovery till superannuation whichever is less.

SECOND OR SUBSEQUENT ADVANCE

1. Motor Car:

The amount of advance is limited to Rs.90,000/- or 25 months' basic pay or the

anticipated cost of the motor car whichever is the least. The amount of advance

and interest thereon is recoverable in not more than 150/-monthly instalments or

remaining number of months available for recovery till superannuation, whichever

is less.

2. Motor Cycle/Scooter:

The amount of advance is limited to Rs.11,500/- or the anticipated cost of the

vehicle whichever is less. The amount of advance and interest thereon is

recoverable in not more than 75 equal monthly instalments or remaining number

of months available for recovery till superannuation, whichever is less.

3. Moped :

The amount of advance is limited to Rs.7000/- or anticipated cost of the vehicle,

whichever is less. The amount of advance and interest thereon is recoverable in

not more than 60 equal monthly instalments or remaining number of months

available for recovery till superannuation whichever is less.


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OTHER MISCLANEOUS BENEFITS

BAJAJ ALLIANZ CO. also provides various facilities to the members of BAJAJ

ALLIANZ CO. teams for participation in inter-unit events and National/State

level games. These facilities are as follows:

a) Scale of Kitb) Refreshmentsc) Prizesd) Travel/DA Entitlemente) Cash allowancef) Time-offg) Sports coordinators/Team managerh) Out of pocket expenses


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Documents

Bajaj Alians Orignal