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    ASUMMER TRAINING PROJECT REPORT

    ON

    SALES & MARKETING FORTHE

    BAJAJ ALLIANZ LIFEINSURANCE CO.

    SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

    THE DEGREE OF

    MASTER OF BUSINESSADMINISTRATION

    (2007-2009)

    Under the Guidance of:

    Retd. Col. Sh. S.k Jain Mr. Deepak Kumar

    HOD-MBA Sales Manager SUS Group of colleges Bajaj Allianz Life Insu.

    Tangori (Mohali)

    SUBMITED BY:

    HARENDER SINGH NAINMBA-III SEMESTER

    ROLL NO.: 7025220794

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    SHAHEED UDHAM SINGHCOLLEGE OF ENGG. &

    TECHNOLOGYTANGORI (MOHALI)

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    PREFACE

    The importance of an academic course would gain advantage and

    acceptance of the true form, only through practical experience. Hence i t

    is quite necessary to put the theories into talk. I t is r igidly accepted that

    the theory widens ones thinking hor izons viz. Concepts of market ing

    philosophies, but practice indicates the modern marketing and used in

    variety of settings of products.

    The s ummer t ra in ing p rogr ammers a re des igned t o g ive t he

    manager the future of the corporate happenings and work culture. These

    real l i fe s i tuat ions are ent irely di fferent f rom the s t imulated exercise

    enact ed i n an a rt if ic ia l env ir onment i ns ide t he s ummer t ra in ing

    programmers and designed, so that the manager to tomorrow do not feel

    i ll case when the t ime comes to shoulder r esponsibi li ti es . Prac ti ca l

    exposure for the PGDM students i s very necessary because what they

    s tudy in the c lass room i s not the r ea li ty. S ituat ion in the market i s

    unknown and very much unpredictable. So the pract ical exper ience is

    very much necessary this i s made possible wi th the summer t raining

    project in Bajaj Allianz Life Insurance Co. in marketing related to search

    for the Potential Insurance Consultants.

    All organizations involves into business with some objective and

    one o f t he obj ec ti ves i s t o endor se p roduct o r s er vi ce whi ch t hey

    produce. In my marketing project I tried to fid out the potential

    Insurance Consultants through questionnaire for the Bajaj All ianz Life

    Insurance Co. The product for the insurance company i s i ts poli ci es

    which company sale through its Insurance Consultants. So its quite clear

    that there will be as many Insurance Consultants. There will be increased

    sales.

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    ACKNOWLEDGEMENT

    I want to thank to those people who helped me in this

    summer training research project. First of all I would l ike to

    express my profound grat i tude to the Sales Manager of

    Bajaj Allianz Life Insurance Co., Nehru Palace, Delhi,

    Mr. Deepak Kumarwho gave me this opportunity to do this

    pro ject. He a lways remained a wonder fu l gu ide and

    supporter throughout this project.

    I would l ike to thank to my inst i tute also where I got

    all the knowledge and ski lls requi red for this research

    project. I also want to thank to my institute mentorMr. S.K

    Jain (H.O.D OF SUS) who took our project seriously and

    kept check on this time to time.

    At the end I want to say thanks to all persons involved

    in this project directly or indirectly.

    HARENDER SINGH NAIN(MBA-III SEM.)

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    TABLE OF CONTENTS

    1. Executive Summary

    2. About Life Insurance Sector

    3. Industry Overview

    4. Company Profile

    5. About Policies Of Bajaj Allianz

    6. Distribution Channel

    7. Research Methodology

    8. SWOT Matrix

    9. Findings

    10. Recommendations

    11. Bibliography

    12. Questionnaire

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    EXECUTIVE SUMMARY

    At the present t ime of cut throat compet i t ion in every indust ry

    every company want to top the chart and want to show as big as possible

    f igure of prof it s in i ts ba lance sheet. I t i s quit e c lear today tha t a t

    present time the growth of any organization is possible only with the

    help of hard working and wel l focused s taf fs that are the backbone of

    any organizations.

    I t was my great pleasure that I did my summer training from Bajaj

    All ianz L if e I ns ur ance Co. where I got t o know t ha t i n I ns ur ance

    industry the skills of the man power matters most and increasing number

    of Insurance Consultants help the organization to increase its issuance of

    policies which in turn result in growth for the organization. So it is quite

    clear that Insurance Consultants matter most for the Bajaj All ianz Life

    Insurance Co.

    My job was to create the database for the organization so that the

    number i f Insurance Consul tants could be increased. My job was to

    approach the individuals who are interested in joining the organization

    as Insurance Consul tant, with in the l imita tions l ike r elated to age,

    r el at ed t o qua li fi ca ti on , and t hen h is /her det ai ls w it h t he hel p o f

    ques t ionnaire. I vis i ted var ious areas of Delhi , Ghaziabad in order to

    meet different types of people.

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    WHAT IS LIFE INSURANCE

    First of al l we should come to know that what i s Li fe Insurance.

    The different definitions describing life Insurance are as:-

    Insurance in which the r isk insured against i s the death of a

    particular person, the insured, upon whose death while the policy is in

    force, the insurance company agrees to pay a stated sum or income to the

    beneficiary. Life Insurance pays a specified sum to the beneficiaries

    upon the death of the insured. It is generally used to provide cash to your

    f amil y i n t he event o f your dea th . There a re s ever al t ypes o f l if e

    insurance whole l ife insurance provides a l i fet ime of protection as long

    as you pay the premiums to keep the pol icy act ive. They also accrue a

    cash va lue and thus offer a savings component. Term l if e insurance

    provides protection only during the term of the policy and the policies

    are usually renewable at the end of the term. Insurance on human l ives

    including endowment benef i ts , addit ional benef i ts in event of death or

    dismemberment by accident or accidental means, addit ional benefi ts for

    disability, and annuities.

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    LIFE INSURANCE INDUSTRY IN INDIA

    Many may not be aware that the l ife insurance industry of India is

    a s o ld as i t i s in any o ther par t of the wor ld . The f i r s t Indian Li fe

    Insurance Company was the Oriental l i fe Insurance Company, which was

    started in India in 1818 at Kolkata. A number of players (over 250 in life

    and about 100 in non-l i fe) mainly wi th regional focus f lour ished al l

    across the country. However, the Government of India, concerned by the

    unethical s tandards adopted by some players agains t the consumers ,

    nat ional ized the indust ry in two phases in 1956 ( l i fe) and 1972 (non-

    l ife) . The insurance business of the country was then brought under two

    public sector companies, Life Insurance Corporation of India (LIC) and

    General Insurance Corporation of India (GIC).

    With such a large populat ion and the untapped market area of this

    population Insurance happens to be a very big opportunity in India.

    Today i t s tands as a bus iness growing a t the r ate of 15-20 percent

    annually. Together with banking services, i t adds about 7 percent to the

    countrys GDP. In spite of all this growth the statistics of the penetration

    of the insurance in the country i s very poor . Near ly 80% of Indian

    populations are without Life Insurance cover and the Health Insurance.

    This i s an indicator that growth potent ial for the insurance sector i s

    immense in India. It was due to this immense growth that the regulations

    were introduced in the insurance sector and in continuations Malhotra

    Committee was consti tuted by the government in 1993 to examine the

    various aspects of the industry. The Committee recommended throwing

    open the sector to private players to usher in competi tion and bring more

    choice to the consumer. The objective was to improve the penetrat ion of

    i ns ur ance a s a per cent age GDP, whi ch r emai ns l ow i n I nd ia even

    compared to some developing countries in Asia. The key element of the

    reform process was Part icipation of overseas insurance companies with

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    26% capital . Creating a more eff icient and competi t ive f inancial system

    suitable for the requirements of the economy as the main idea behind the

    reform.

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    A BRIEF HISTORY

    The or igin of insurance is very old. The t ime when we were not

    even born; was has sought some sort of protection from the unpredictable

    calamities of the nature. The basic urge in man to secure himself against

    any form of risk and uncertainty led to the origin of insurance.

    The insurance came to India f rom UK; wi th the es tablishment of

    The Oriental Insurance Corporation in 1818. the Indian Life Insurance

    company act 1912 was the first statutory body that started to regulate theLife Insurance business in India. By 1956 about 154 Indian, 16 foreign

    and 75 provident f irms were been established in India. Then the central

    government took

    over these companies and as a result the LIC was formed. Since then LIC

    has wor ked t owar ds s pr eadi ng L if e I ns ur ance and bui ld ing a w ide

    net work acr os s t he l engt h and t he b reat h o f t he count ry . Aft er t he

    l ib er al iz at io n t he e ntr an ce o f f or ei gn p la ye rs h as a dd ed t o th e

    competition in the market.

    The General Insurance bus iness in India, on the other hand, can

    trace i t s roots to the Tr i ton Insurance Company Ltd, the f i rs t General

    Insurance Company establ ished in the year 1850 in Calcut ta by the

    Brit i sh. In 1957 General Insurance Counci l, a wing of the Insurance

    Associat ion of India, frames a code of conduct for ensuring fair conduct

    and sound business practices. In 1972 the General Insurance Business in

    India with effec t f rom 1 s t January 1973. i t was aft er th i s tha t 107

    insurers amalgamated and grouped into four companies viz. the National

    Insurance Company Ltd, the New India Assurance Company Ltd, the

    Oriental Insurance Company Ltd. GIC incorporated as a company .

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    INSURANCE SECTOR REFORMS

    In 1993, Malhotra Committee headed by former Finance Secretary

    and RBI Governor was formed to evaluate the Indian industry and give

    its recommendations. The committee came up with the following major

    provisions:-

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

    should be allowed to enter the industry.

    Foreign companies may be a llowed to enter the indus try in

    collaboration with the domestic companies.

    Only one s tate level Life Insurance Company should al low to

    operate in each state.

    Reforms were init iated wi th the passage of Insurance Regulatory

    and Development Authority (IRDA) Bil l in 1999. IRDA was set up as an

    independent regulatory authori ty, which has put in place regulat ions in

    line with global norms.

    IRDA : The IRDA since i ts incorporation as a s tatutory body has been

    f rami ng r egul at ions and r eg is te ri ng t he p ri va te s ec to r i ns ur ance

    compani es . I RDA bei ng an i ndependent s ta tu to ry body has put a

    framework of globally compatible regulations .

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    INSURANCE MARKET IN INDIA

    By any yardstick, with about 200 mill ion middle class households,

    presents a huge untapped potential for players in the insurance industry.

    Saturat ion of markets in many developed economies has made the Indian

    market even more at t ract ive for global insurance majors . With the per

    capital income in India expected to grow at over 6% for the next 10 years

    and with improvement in awareness levels , the demand for insurance is

    e xp ec te d to g ro w a t a n a tt ra ct iv e r at e i n I nd ia . A n in de pe nd en t

    consul ting company, the Moni tor Group has est imated tha t the Life

    Insurance market will grow.

    WINDS OF CHANGE

    Reforms have marked the ent ry of many of the global insurance

    majors into the Indian market in the form of joint ventures with Indian

    companies . Some of the keys names are AIG, New York Life, Al l ianz,

    Prudential , Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Which

    has responded to the competi t ion in an admirable fashion by launching

    new products and improving service standards.

    Market Expansion :

    There has been an overall expansion in the market . This has

    been possible due to improved awareness levels thanks to the large

    number of advert is ing campaigns launched by al l the players. The scope

    f or e xp an si on i s s ti ll u nl im it ed a s v ir tu al ly a ll th e p la ye rs a re

    concentrat ing on large ci t ies and towns except by LIC to an extent

    there was no significant attempt to tap the rural markets.

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    New Product Offerings :

    There has been a plethora of new players, mainly from the stable

    of their international partners. Customers have tremendous choice from a

    l ar ge var ie ty o f p roduct s f rom pur e t er m i ns ur ance t o uni t- li nked

    investment products . Customers are offered unbundled products with a

    variety of benefits as riders from which they can choose. More customers

    are buying products and services based on their t rue needs and not just

    t ra dit io na l mo ne y- ba ck p ol ic ie s, w hi ch i s n ot c on si de re d v er y

    appropriate for long-term protection and savings. However, there are still

    some key new products yet to be introduced e.g. health products.

    Customer Service :

    Not unexpectedly, this was one area that witnessed the most

    signif icant change with the entry of new players. There is an at tempt to

    bring in international best practices in service and operational efficiency

    though use of l at es t t echnologies . Advice and need based se ll ing i s

    emerging through much better t rained sales force and advisors. There is

    improvement in response and turnaround t imes in specif ic areas such as

    delivery of f irs t policy receipt , policy document, premium notice, f inal

    maturity payment, settlement of claims etc. However, there is a long way

    to go and various customer surveys indicate that the standards are st i l l

    below customer expectation levels .

    Channels of Distribution :

    Till two years back, the only mode of distribution of life insurance

    products was through Agents. While agents continue to be the

    predominant distribution channel, today a number of innovative

    al ternat ive channels are being offered to cus tomers . Some of them are

    bancassurance, brokers, the internet and direct marketing. Though it is

    too ear ly to predict , the wide spread of bank branch network in India

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    could l ead to bancassurance emerging as a s ignif icant d is tr ibution

    mechanism.

    The introduction of private players in the industry has added to the

    colors in the dull industry. The ini t iat ives taken by the private players

    are very competi t ive and have given immense competit ion to the on t ime

    monopoly of the market LIC. Since the advent of the private players in

    the market the industry has seen new and innovative steps taken by the

    playe rs in this sector. The new playe rs have improved the service quality

    of the insurance. As a result LIC down the years have seen the declining

    phase in its career. The market share was distributed among the private

    playe rs. LIC market share has decreased from 95% (2002-03) to 82%

    (2004-05).

    The following companies has the market share of the life insurance

    industry.

    Insurance Company Market Share (Fig. in %)

    LIC 71.44

    ICICI Prudential 11.35

    Bajaj All ianz 7.06

    HDFC Standard Life 2.37

    SBI Life 1.81

    Birla Sun Life 1.49

    Max New York Life` 0.98

    TATA AIG 0.79

    Aviva 0.89

    OM Kotak Mahindra 0.86ING Vyasa 0.57

    Reliance 0.37

    MetLife 0.24

    Market Share of Life Insurance Companies as of May 2006

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    CURRENT SCENARIO OF THE

    INSURANCE INDUSTRY IN INDIA

    India with about 200 mill ion middle class household shows a huge

    untapped potent ial for players in the insurance indust ry. Saturat ion of

    markets in many developed economies has made the Indian market even

    more at tractive for global insurance majors . The insurance sector in

    India has come to a posit ion of very high potential and competi t iveness

    in the market.

    Innovative products and aggressive distr ibution have become the

    say of the day Indians, have always seen Life Insurance as a tax saving

    device, are now suddenly turning to the private sector that are providing

    them new products and variety for their choice.

    Life Insurance industry is wait ing for a big growth as many Indian

    and Foreign companies are wai t ing in the l ine for the green s ignal to

    start their operations. The Indian Consumer should be ready now because

    the market is going to give them all array of products, different in price,

    features and benefi ts . How the customer is going to make his choice wil l

    determine the future of the industry.

    CUSTOMER SERVICE

    Consumers r emain the mos t important cent re of the insurance

    sector . After the entry of the foreign players the industry is seeing a lot

    of competi tion and thus improvement of the customer service in the

    industry. Computerizat ion of operations and updating of technology has

    become imperative in the current scenario. Foreign playe rs an bringing

    i n i nt er na ti on al b es t p ra cti ce s i n s er vi ce t hr ou gh u se o f la te st

    technologies. The one t ime monopoly of the LIC and i ts agents are now

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    going through a through revision and training programs to catch up with

    the other private players.

    DISTRIBUTION CHANNELS

    Till date insurance agents s t il l remain the main source through

    which insurance products are sold. The concept is very well established

    in the country l ike India but s t i l l the increasing use of other sources is

    i mper at ive. I t t he re fo re makes s ense t o l ook a t wel l bal anced,

    alternatives channels of distribution.

    L IC ha s a lre ad y w ell estab lish ed an d h av e an e xten siv e

    dis t r ibut ion channel and presence. New players may f ind i t expensive

    and t ime consumi ng t o b ri ng up a d is tr ibut ion channel t o have an

    advantage.

    At present the d is tr ibution channel s tha t a re avai lable in the

    market are:

    Direct Selling

    Corporate Agents

    Group Selling

    Brokers and Cooperative Societies

    Bancassurance

    To make al l these channels a success the companies have to be

    very aler t and ski l l ful to know how to use these channels in a proper way. Bancassurance is on of the most upcoming channels of distribution.

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    BANCASSURANCE

    India has an extensive bank network established over the years.

    What Insurance companies have to do is to jus t take advantage of the

    cus tomers long-s tanding t rus t and relat ionships wi th banks . This i s a

    mutual ly benef icial s i tuat ion as banks can also expand thei r range of

    products on offer to customers, while the insurance company will also

    earn prof i t s f rom the exposure. Another advantage is that banks , wi th

    their network in rural areas, help to fulf i l l rural and social obligations

    stipulated by the

    Insurance Regulatory and Development Authority (IRDA)

    recently. Insurance companies should see bancassurance as a tool for increasing their market penetrat ion in India. I t is also good for the one

    who sees bancassurance in terms of reduced price, high quali ty product

    and delivery at doorsteps. Everybody is a winner here. The creation of

    bancassurance operations has made an important impact on the financial

    services industry at large. This is though a new concept but i t has gained

    a lot of importance in the industry at present and has a great future.

    PRODUCT INNOVATION

    Cus tomers have t remendous cho ice f rom a l ar ge var ie ty o f

    products from pure term insurance to unit- linked investment products.

    Customers are offered unbundled products with a variety of benefi ts as

    riders from which they can choose. More customers are buying products

    and services based on thei r t rue needs and not jus t t radi t ional money-

    back policies, which is not considered very appropriate for long-term

    protection and savings.

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    RURAL MARKETING

    R ur al I nd ia s ee ms t o h av e a n a pp eti te f or mo bi le p ho ne s,

    computers, and cars and to add to i t we have insurance. In India with the

    private players having entered into the insurance industry, the expected

    explosion in job opportunit ies may not actually happen but for them the

    catchments area i s the opportuni ti es in the rural India . In India the

    insurance business can be said to be a marathon, not a sprint. This is

    because of the nature of the business being long term. However it seems

    that they if not anything, are only increasing their spending, though only

    out of the capi tal . As insurance companies go more and more rural in

    search of bus iness , there wil l be opportuni ti es in the rura l sec tor .

    A lr ea dy U nit ed I nd ia T he R ura l c on su me r i s n ow e xh ib iti ng a nincreas ing propens ity for Insurance products . A research conducted

    exhibi ted that the rura l consumers are wil ling to dole out anyth ing

    between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance

    the awareness level for Life Insurance is the highest in rural India, but

    the customers are also aware about motor, accidents and cattle insurance.

    According to a s tudy nearly one third said that they had purchased some

    kind of insurance with the maximum penetrat ion skewed in favor of l i fe

    insurance. The study also pointed out the private companies have huge

    task to p lay in crea ting awareness and credit abi li ty among the rura l

    populace.

    INFORMATION TECHNOLOGY AND INSURANCE

    In the insurance industry today, there is a clear trend away from

    sell ing a broad range of products to a large volume of cus tomers in a

    one- size-f i ts-al l manner. Instead of focusing on their different products

    l ines as s i los ( i .e. , l i fe, property and casualty etc) insurers are looking

    for ways to offer highly targeted insurance products that are tai lored to

    the individuals customers with the h ighest propens ity to buy them.

    Insurance industry is a data-r ich industry, and thus, there is desire need

    to use the data for trend analysis and personalization.

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    With increased competi t ion among insurers , service has become a

    k ey is su e. P eo pl e to da y d on t w an t to a cc ep t t he c ur re nt v al ue

    propositions, they want personalized interactions and they look for more

    and more features and add ones and better service. Today managing the

    cus tomer intel l igent ly i s very cr i t ical for the insurer especial ly in the

    very competi t ive environment. Companies need to apply different set of

    rules and treatment strategies to different customer segments.

    With the explos ion of Webs it e and grea ter access to d irect or

    policy information, there is a need to developing better techniques to

    give cus tomers a t ruly personalized exper ience. Personalizat ion helps

    organizations to reach their customers with more impact and to generate

    new revenue through cross sel l ing and up sel l ing act ivi t ies . To ensure

    that the customers are receiving personalized

    information, many organizations are incorporating knowledge database-

    repositories of content that typically include a search engine and lets the

    customers loca te the a ll document and informat ion related to the ir

    queries of request for services. Customers can hereby use the knowledge

    database to manage the ir product s or the company information and

    invoices, c la im records, and h i stor ies of the serv ice inquiry. These

    products also may be able to learn from the customers previous

    knowledge database and to use their information when determining the

    relevance to the customers search request . The insurance sector remains

    a very competi tive market and those companies that a re able to best

    uti l ize their data and provide their customer with the most personalizedoptions will have the distinct competitive advantage.

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    MERGERS AND ACQUISTIONS

    This i s an era of merger s and acquis it ions. Private companies

    i nc lu din g MN Cs a re a ma lg am at in g t he w or ld o ve r to g et mo re

    compet it ive edge. Currently, the general insurance indust ry has been

    opened up. The insurers a re doing enough to r ai se the l evel of r isk

    a wa re ne ss o r a re t he y me re ly c on te nt t o c om pe te i n t he ma rk et s

    organized and established. The private players in the future would have

    to turn thei r at tent ion to working in the unorganized and under served

    markets.

    What is l ikely to happen is that the private players would continue

    to skim the profi table segments of the already organized business in theurban areas? The t ime has already come for the government of India to

    evaluate the performance of private companies.

    H ow ev er i t i s h ig h t im e f or t he g ov ern me nt t o re al iz e t ha t

    impor tance of merging the public sector general insurance companies

    into s ingle enti ty. The recent scenar io calls for a bet ter performance

    from part of each of the public sector insurance companies against each

    other. The result what we see i s the undercutt ing to r etain or wrest

    business and quoting an uneconomical rate of premium. While this

    allows one of the Public Sectors Company to win a business form another

    in th i s manner . The o ther s suf fer a los s and the r esul t ant e f fec t i s a

    cannibalizat ion with a fal l in the average premium of the public sector

    itself.

    The purpose of having four companies al l subsidiaries of General

    I ns ur an ce C or po ra tion o f I nd ia ( GI C) Na tion al I ns ur an ce

    Company, New India Assurance Company, Orienta l Insurance

    Company, and The United India Insurance Company; at the t ime of

    nationalizat ion was to have competi t ion among themselves in service

    and products at the same price.

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    Now with real competition coming in with most of the global

    insurance p layer s set ting footpr in ts here , i t i s f e lt tha t the t ime for

    merger has come and to enjoy the benefi ts i f the size. I t is to be stated

    that size does matter in insurance business. All over the worlds mergers

    and acquisi t ions in the r isk-underwriting sector is common. The benefi ts

    i f the four insurance companies merge wi l l be enormous . The merged

    enti ty wil l en joy h igher underwr it ing and r isk r etent ion capacity;

    increase in r einsurance premium, reduct ion in r e insurance outf low,

    healthy solvency margins, set t ing r ight the asset- l iabil i ty mismatch and

    reduction in cost . The loss of profi table business in view of undeserved

    compe ti ti on among t he pub li c s ec to r compani es i s hamperi ng t he

    subsidization of social insurance including the motor third party liability

    (TPL).

    I t i s thus clear that i t i s good for the public sector companies to

    merge immediately when they are s t i l l s t rong, les t a merger becomes

    inevitable later af ter the independent public sector companies fai l one

    after another.

    STRATEGIC ALTERNATIVES

    I f one analyses the his tory of growth of the insurance industry

    since reforms, i t is marked by al l- round growth of al l players. More or

    l es s a ll p laye rs have aggress ivel y r ec ru it ed and t ra ined adv is or s,

    appointed agents , launched new products, improved cus tomer service

    s tandards and revamped/expanded their dist r ibut ion networks. Every

    playe r would like the customers to believe that its service standards are

    the bes t or that i t s agents are the most informed and ethical . In other

    words , each company is t rying to be everything to everybody . Some

    playe rs justify the above strategy on the basis that the Indian market is

    huge and i t can accommodate everybody. St i l l , in a market where i t i s

    d if fi cu lt to d i st ingui sh onese lf suff ic i ently on service or any o ther

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    parameter to be able to charge a premium, it will lead to unmitigated

    price competit ion to the detriment of all playe rs. In the insurance

    industry where large amounts of capital are required, this is risky.

    While there is room for a few scale players with a f inger in every

    pie, it is profitable for the players to focus on different segments to

    s ur vi ve and t hr ive i n a mul ti -f ir m open env ir onment . Whi le each

    company has to choose i t s own unique pos i t ioning based on i t s unique

    strengths.

    Variety-based Positioning

    This type of posit ioning is based on variet ies in products and

    services rather than customer segments. It is a sensible strategy for those

    companies who have d i st inc tive advantages or s tr engths in of fering

    certain products and services.

    In the insurance indust ry too, i t i s poss ible to achieve a unique

    position by focusing on certain category of products. Through its

    super ior fund management capabi li ti es , the insurance company can

    deliver better returns on i t investment-l inked products and thereby for

    itself a leadership position in this segment.

    Then there i s the ent i re category of pens ion products , which is

    widely touted to have immense growth potential in India due to imminent

    pension reforms. It is possible to achieve profitable positioning by

    focusing and excelling in only pension products.

    Needs based Positioning

    This is the most commonly understood positioning and is based

    on the different needs of different groups of consumers. This can be done

    successful ly i f a company has unique s t rengths to service a group of

    customer needs better than others.

    The insurance needs of young family wi th smal l chi ldren wi l l be

    quite different from that of a family in which the income-earner is close

    to ret irement. However, in India most of the Life Insurance companies

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    have a wide variety of products of different customer needs and there is

    no company focusing only on a particular customer needs.

    Access- based Positioning

    Posit ioning of customers can also be done by the way they are

    access ible that i s di fferent groups of cus tomers may be access ible in

    dif ferent ways even though they may have s imilar needs . Access i s

    typically a function of customer scale.

    There is excellent opportunity in the insurance industry to employ

    access-based pos it ioning by targeting the rural insurance sector . The

    rural market for Life Insurance is very different from the urban market in

    terms of needs, income levels , distr ibution, penetrat ion of media and so

    on. Except for LIC, no other player has paid any at tent ion or focus on

    the rural sector. Contrary to common perception it is a big opportunity as

    emphasized repeatedly by such eminent s t rategies l ike C.K.Prahlad.

    Rur al mar ke t can be a h ighl y p ro fi tabl e pos it ion i f one i s abl e t o

    carefully plan.

    CHOOSING THE RIGHT STRATEGY

    The r ight s t rategic choice i s not a mat ter of pos i t ioning choice

    alone. I t i s the conf igurat ion of the ent i re value chain of the company

    through a different set of activities to deliver unique value to consumers.

    The set of act ivi t ies cover al l upstream and downstream activi t ies , from

    t he s el ec ti on o f t he p roduct mix . Some L if e I ns ur ance compani es

    focusing on rural markets have adopted innovative means of distribution.

    I ns tead o f appoi nt ing agent s a s i s done t yp ical ly, t hey have used

    Gramsevaks in di fferent vi llages across the country to promote Life

    Insurance and act as their sales arm.

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    So we can conclude that , the size of the market has grown and the

    size of the insurable populat ion in India is indeed vast and the exist ing

    playe rs have managed to cover about one-fourth of it.

    The f al li ng i nt er es t r at es , t he col laps e o f many s ma ll ti me

    financial inst i tut ions, the scope for entering related areas l ike banking

    and pensions in a bid for synergy and the promise of the e-commerce are

    some of the other opportunit ies knocking at the doors of the insurance

    majors.

    A number of web sites are coming up on insurance, a few financial

    magazines exclus ive ly devoted to insurance and a lso a f ew t ra in ing

    i ns ti tu te s b ei ng s et u p h ur ri ed ly. M an y o f t he u ni ve rs it ie s a nd

    management institutes have already started courses in insurance.

    L if e i ns ur ance has t oday become a mai ns tay o f any mar ke t

    economy s ince i t offer s p lenty of scope for garner ing l arge sums of

    money for long periods of time. A well regulated Life Insurance industry

    which moves with the t imes by offering i ts customers t ai lor -made

    products to satisfy their financial needs is, therefore, essential if we

    desire to progress towards a worry-free future.

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    COMPANY

    PROFILE

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    ABOUT BAJAJ ALLIANZ LIFE INSURANCE

    Mission: As a responsible cus tomers focused market leader , we s t i l ls tr ive t o under st and t he i ns ur ance needs o f t he consumers and

    translate it into affordable products that deliver value for money .

    Vision:

    To be the first choice insurer for customers.

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

    To be the number one insurer for creating shareholder value.

    SAM GHOSH , who was the CEO of Bajaj Allianz earlier has taken over

    as country Manager and is also the CEO of Bajaj Allianz Life

    Insurance Company.

    Bajaj Allianz Life Insurance Company Limited

    Bajaj Al l ianz Life Insurance Co. Ltd i s a joint venture between

    two leading conglomerates- , and Bajaj Auto, one of the biggest two and

    three-wheeler manufacturers in the wor ld and Al l ianz AG, one of the

    worlds largest insurance companies.

    Bajaj Allianze Life Insurance

    Is the fastest growing private life insurance company in India.

    Currently have over 300000 satisfied customers.

    Have Customer care centers in 156 ci t ies wi th 28000 Insurance

    Consultant providing the finest customer service.

    One of Indias leading private life insurance companies.

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    Bajaj Allianz General Insurance Company Limited

    Baja j All ianz Genera l Insurance Company Limited i s a joint

    venture between Bajaj Auto Limited and All ianz AG of Germany. Both

    enjoy a reputation of expertise, stability and strength.

    Bajaj All ianz General Insurance received the Insurance Regulatory

    and Development Authori ty (IRDA) cert if icate of Registrat ion (R3) on

    May 2n d , 2001 to conduct General Insurance business ( including Health

    Insurance business) in India. The Company has an authorized and paid up

    capi tal of Rs .110 crores . Bajaj Auto holds 74% and Al l ianz holds the

    remaining 26%. AG, Germany.

    In i ts f irs t year of operations the company has acquired the NO. 1

    status among the private non-l ife insurers . As on 31 s t March 2003, Bajaj

    All ianze Gener al I ns ur ance mai nt ai ned i ts l eade rs hi p pos it ion by

    garnering a premium income of Rs .300 Crores . Bajaj All ianze a lso

    became one of the few companies to make a profit in its first full year of

    operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.

    Bajaj All ianze today has a network of 40 offices spread across the

    length and breadth of the country. From Surat to Sli l iguri and Jammu to

    Thiruvananthapuram, al l the 38 offices are interconnected with the Head

    Office at Pune.

    In the f ir st ha lf of the current f inancial year , 2004-05, Baja j

    Al lianz generated a premium income of Rs.405 crores, achieving a

    growth of 84% and regi s t ered a 52% growth in Net prof i t of Rs . 20

    Crores over the last year for the same period. In the f inancial year 2003-

    04, the premium earned was Rs.480 Crores, which is a jump of 60% and

    the profit zoomed by 125% to Rs. 21.6% Crores.

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    Shareholders & Promoters

    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 in operation 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

    Allianz AG, Germany

    Allianz Group is one of the world's leading insurers and financial

    services providers.

    Founded in 1890 in Berlin, Allianz is now present in more than 70

    countries with over 177,000 employees. At the top of the international

    group is the holding company, Allianz AG, with its head office in

    Munich.

    Allianz Group provides its more than 60 million customers worldwide

    with a comprehensive range of services in the areas of

    Property and casualty insurance,

    Life and health insurance,

    Asset management and banking.

    In fiscal year 2005, Allianz's total revenues amounted to some 100.9

    billion euros. At the end of 2005 Allianz Group had more than 1.26

    trillion euros in assets under management. Of this, 743 billion euros

    were assets managed for third parties.

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    History of Allianz

    Documenting and researching its corporate history is part and

    parcel of the corporate culture of Allianz AG.

    The Allianz Center for Corporate History devotes itself to these tasks.

    As a frequently used information center, it has evolved into the

    company's "living memory".

    Global Presence

    Allianz Group is present on every continent and has companies and

    of fi ces in about 70 countr ies . More informat ion about our loca tions

    throughout the wor ld i s avai lable by moving the cursor over the wor ld

    map.

    Business Fields

    Property & Casualty Insurance

    When i t comes to proper ty and casualty insurance , All ianz i s

    number one in Germany. All ianz also ranks as one of the world's leadingglobal industrial risk insurers.

    Life & Health Insurance

    In life and health insurance, Allianz Group is among the top

    companies in Europe. Private and corporate retirement provision is

    emerging as a major market

    Asset Management & Banking

    Allianz Group's asset management activities are integrated under one

    roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group

    has laid a broad foundation in order to address clients ' needs on the

    investment market.

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    All ianz AG i s i n t he bus ines s o f Gener al ( Pr oper ty & Cas ua lt y)

    Insurance; Life & Health Insurance and Asset Management and has been

    in operat ion for over 110 year s. Al li anz i s one of the l a rgest g lobal

    composite insurance with operations in over 70 countries. Further, the

    Group provides Risk Management and Loss Prevention Services. All ianz

    has insured most of the worlds largest infrastructure projects (including

    Honkong Airport and Channel Tunnel between UK and France), further

    All ianz insures the majori ty of the fortune 500 companies, besides being

    a l arge indus tr ia l insure , All ianz has a subs tanti al port fo lio in the

    commercial and personal l ines sector , using a wide variety of innovative

    distribution channels.

    Allianz AG has the following of offer Bajaj Allianz General

    Insurance Company Ltd.:

    Set up and running of General insurance operations

    New and improved international products

    One of the worlds leading insurance companies

    More than 700 subsidiar ies and 2 lac employees in over 70 countr ies

    worldwide

    Provides insurance to almost half the Fortune 500 companies

    A Partnership Based on Synergy

    Baj aj A ll ianz Gener al I ns ur ance Company o ff er s t echn ical

    excellence in al l areas of General and Health Insurance as well as Risk

    Management . This par tnership successful ly combines Bajaj Autos in-

    depth unders tanding of the loca l market and extensive d is tr ibution

    network with the global experience and technical expertise of the Allianz

    Group. As a registered Indian Insurance Company and a capital base of

    Rs.110 crores, the company is:

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    Ful ly l icensed to underwri te al l l ines of general insurance bus iness

    including health with management control by Allianz AG

    About Bajaj Allianz Life Insurance:

    Bajaj Al lianz Life Insurance Company has developed insurance

    solu tions that ca ter to every segment and age- income profi les . It s

    products include Invest Gain (a unique life insurance plan where

    sustenance of income is combined in the same plan that also pays a lump

    s um), Cas h Gai n ( Money Back) , Chi ld Gai n( Chil dr en s p lan where

    sustenance of income is combined in the same plan that also pays a lum

    sum), Cash Gain (Money Back), Child Gain (Childrens Plan), Risk care

    (Pure Term), Life Time Care (whole Life) , term Care ( term with return of

    premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term

    insurance plan), UnitGain (Unit Linked Whole of Life Plan) and Unit Gain

    Single Premium.

    Bajaj Al l ianz Life Insurance is poised for an accelerated growth in the

    market and has already become the fastest growing private l i fe insurance

    company in India. Baja j All ianz Life Insurance has a wide pan India

    presence of office network in 156 citied of the country and is aided with a

    s t rong and t rained Agency network of over 28000 agents . Bajaj Al l ianz

    has also forged strong Banc assurance and Corporate Agency relat ionship

    and cont inues to build on new t i e -ups for f ast t rack growth and deep

    market penetration.

    Bajaj Al l ianz Life Insurance has launched a s lew of need-based

    products to cater to each varied needs of the customer. Currently Bajaj

    Al l ianz Life Insurance has a product por t fol io of 19 products and more

    need-based products are in the pipeline .

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    Bajaj Allianz general Insurance: 125 percent profit Increase

    Baja j All ianz Genera l Insurance Company Limited i s a jointventure company between Bajaj Auto Ltd., Indias leading manufacturer

    of two and three wheeler vehicles and the Allianz Group.

    Bajaj All ianz General Insurance offers technical excellence in al l

    areas of general and health insurance and risk management.

    The par tnership successfully combines Bajaj Autos extens ive

    unders tanding of the loca l market and expansive d is tr ibution with

    Allianz Groups global experience and technical expertise.

    Bajaj Allianz General Insurance is headquartered in Pune and has a

    wide network of 40 offices spanning the country. All the offices are fully

    networked. The company received the IRDA regis t rat ion in may 2001

    ; today, i t a l ready has a vas t range of 45 products to suit i t s corporate

    and retail customers. The company has also pioneered in unique forms of

    risk cover.

    In the year 2003-2004, the company garnered a premium income of

    approximately 4.8 bil l ion Rupees (86 mill ion Euros) with a profi t af ter

    t ax o f 220 mil li on Rupees ( 3.9 mil li on Eur os ); i t s ol d 1 .2 mil li on

    policies. With this result, it achieved a net profit growth of 125 percent,

    gross written premiums jumped by over 60 percent.

    All ianz Bajaj Changed Its Name To Bajaj All ianz Life

    Insurance

    All ianz Bajaj Li fe Insurance Co. Ltd. , the fas tes t growing pr ivate l i fe

    insurance co. today announced that i t has changed i ts corporate name to

    Bajaj Al l ianz Life Insurance Co. Ltd, ef fect ive f rom August 03, 2004.

    The change i n company name comes i n con junc ti on wit h r es ea rch

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    f indings f rom exis ting customers, business associates, prospective

    customers and other s takeholders indicates higher comfort level and ease

    of recall ing Bajaj name first and then All ianz, and hence the name Bajaj

    Allianz.

    Baja j All ianz Genera l Insurance Company Limited and Baja j

    All ianz Life Insurance Company Limited wil l now have a common logo

    and branding which will help in increasing our visibility and familiarity,

    which wil l create a much larger awareness and a greater mind share. The

    new logo incorporates the new Bajaj Auto logo.

    Comment ing on this occas ion Mr. Sam Ghose Manager , Al l ianz

    and CEO, Bajaj All ianz Life Insurance said, we are not only acquiring

    a ne w nam e, b ut ha ve pu t in mo tion a n ew lev el of en erg y a nd

    commitment to del iver ing the bes t products . The name change coupled

    with aggressive strategic market ini t iat ives to reach service customers

    better will give us an unbeatable position in the insurance market in this

    country and both Life and General companies together can unleash the

    Power of One and be the leader in the insurance industry.

    Bajaj Al l ianz Life Insurance recent ly launched over 100 satel l i tes

    branches, new life and non-life group products, which has helped Bajaj

    Al l ianz ( former ly known as Al l ianz Bajaj ) to log in Rs .100 Cr . Gross

    Writ ten Premium (GWP) in the f irs t 100 days of this f inancial year and

    has leaped to 2 nd posit ion as per IRDA figures ending June 04, from its

    7 t h position at the end of last financial year.

    Bajaj All ianz Life Insurance has also brought in the key executives, to

    infuse greater thrust , new ideas, eff iciency and professionalism to impartstate of the art servicing to the customers across the length and breadth of

    the country.

    CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE

    INSURANCE

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    The Bajaj Allianz Difference

    Business strategy al igned to cl ients needs and trends in India and

    global economy industry

    I nte rn ati on al ly e xp er ie nc ed c or e t ea m, m aj or it y w it h lo ca l

    background

    Fast, decentralized decision making

    Long-term commitment to market and clients

    Trust

    At Bajaj Al l ianz, they have real ized that the cus tomer seeks aninsurer whom he/she can trust. Bajaj All ianz Limited is t rusted name for

    over 55 years in the Indian market and All ianz AG has over 110 years of

    global experience in f inancial services. Together they are committed to

    provide the customer with time tested and trusted financial solutions that

    provide the customer all the security he/she need for their investments.

    And more

    Underwriting Philosophy

    Their underwriting philosophy focused on:

    Understanding the customers needs

    Underwriting what we understand

    Meeting the customers requirements

    Ensuring optimal coverage at lowest cost

    Claims Philosophy

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    The Bajaj Al l ianz team fol lows a service that aims at taking the

    anxiety out of claims process ing. They pr ide themselves on a f r iendly

    and open approach. They are focused towards providing the customer a

    hassle free and speedy claims processing. Their claims philosophy is to:

    Be flexible and settle fast

    Ensure no claim file to be seen by more than 3 people

    Check p rocess es r egul ar ly aga inst t he g loba l A ll ianz OPEX

    (Operational Excellence) methodology

    Customer Orientation

    At Bajaj All ianz, the guiding principals are customer service and

    client satisfaction. All the efforts are directed towards understanding the

    cul ture, social environment and individual insurance requirements- so

    that they can cater to all the customers varied needs.

    Experienced and Expert Servicing Team

    Baja j Al li anz i s driven by a t eam of exper ienced people who

    understand Indian r isks and are supported by the necessary international

    expertise requires to analyses and assess them service engineers located in

    every major city.

    Superior Technology

    In order to ensure speedy and accurate processing o the customersn ee ds , th ey h av e e st ab lis he d w or ld s c la ss t ec hn ol og y, w it h

    renowned insurance sof tware, which networks al l our of f ices and

    intermediaries

    Using the Web, pol icies can be issued form any off ice across the

    country for retail products

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    Unique, user f r iendly sof tware developed to make the process of

    i ss ue o f pol ic ie s and c la ims s et tl emen t s impl er ( e.g. onl ine

    insurance of marine policy certificate)

    Unique Forms of Risk Cover

    Special PA cover for Amarnath Yatris

    Housing loan cover for people, who are suddenly unemployed

    Film insurance

    Event management cover

    Risk Management Their Expertise

    Their service methodology is t r ied, tested and Proven the world over

    and involves:

    Risk identification: Inspection

    Risk analysis: Portfolio review and gap analysis.

    Risk retention

    Risk Transfer: To an insurer as well as reinsurer (as required)

    Creation of need based products

    Ongoing dialogue and proactively

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    PRODUCTS

    OF

    BAJAJ ALLIANZ

    LIFE INSURANCE

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    LIFE INSURANCE POLICIES

    LIFE LONG GAIN

    The Bajaj All ianz Life gain Plan comes with a host of features to

    a ll ow cus tomer t o have t he bes t o f a ll wor ds r egul ar i ncome f or

    customer and the added benefi ts of providing for loved ones too. This is

    the perfect plan to take care of ongoing and future family expenses l ike

    debts, expenses on children, l iving expenses, etc. I t can also take care of

    unforeseen expenses l ike accidents , i l lness. Hospi tal izat ion etc. andprovides a family with a safety net.

    How does the plan work?

    The premiums paid are invested in the Lifelong Gain Fund (based on the

    al location rate) and uni ts are al located depending on the offer pr ice of

    units for the fund. The value of the policy is the bid value of units that a

    cus tomer hol ds i n t he f und. The l if e i ns ur ance cover cha rges a re

    d ed uc te d th ro ugh mon thl y c an cellat io n o f u nits a nd the fun d

    administrat ion charge and fund management charge are priced in the unit

    value.

    Benefits available under the plan

    Death Benefit: In the case of unfor tunate premature death the

    beneficiaries are entitled to the greater of :

    Sum Assured less partial withdrawals

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    The bid value of units

    I f the age of the insured person is less than 7 or above 70, then the

    bid value of unit is paid.

    Guaranteed Survival Benefits:

    Guaranteed Survival Benefi ts are available under this policy.

    Bajaj All ianz Life Insurance wil l pay, by cancellat ion of units in the

    account of the pol icy, 3% of the Sum Assured every year af ter the

    premium payment are over till the termination of the policy. This

    guaranteed amount is payable every year provided al l premiums have

    been paid and no partial withdrawal were made, the guaranteed

    survival benefi t would be 3% (Sum Assured less part ial withdrawal)

    for the subsequent policy years. If the part ial withdrawals made are

    equal to the Sum Assured, then the guaranteed survival benefi t wil l

    become nil and funds in the account will be available to the customer

    for full/partial withdrawals as and when a customer needs them.

    Maturity Benefits:

    On the l ife assured at taining age 100, the bid value of unit in the

    fund will be paid out and the policy will terminate.

    Full Withdrawal:

    Life long Gain offers the customer the flexibility of the withdrawals

    by surrendering all his units, anyt ime after 3 full years premiums

    paid. The full withdrawals are paid out at the bid value of units. On

    full withdrawal the policy will terminate.

    Partial Withdrawal:

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    Lifelong Gain allows the customer to make partial withdrawals

    anytime after all the premiums are paid. This gives the customer the

    liquidity and option to take out additional money over and above the

    guaranteed survival benef it s, as and when required . In case of

    partial withdrawal, a minimum withdrawal amount is Rs.1000/- . In

    the case of a partial withdrawal, the subsequent Guaranteed

    S ur vi va l B en ef it s w il l b e 3 % o f (S um A ss ur ed l es s p ar tia l

    withdrawals made).

    Key Features

    Guaranteed death benefits

    Whole life protection with only 10 or 15 years of contributions.

    Guaranteed survival Benef i ts that pays 3% of the Sum Assured

    every year after the premium payments are over

    Provision for full and partial withdrawals .

    Benefits

    Death benefits

    Guaranteed Survival Benefits

    Maturity Benefits

    Full Withdrawals

    Partial Withdrawals

    UNIT GAIN PLUS

    With Bajaj All ianz Unit Gain Plus, A customer can invest in one

    life in sura nce plan th at ca n ta ke care o f all h is/h er ch an ging

    requirements throughout the ir l if e. This p lan has been des igned to

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    provide them with maximum flexibility, so that they do not have to

    worry about their changing need s.

    Bajaj All ianz Unit Gain Plus Offers the unique option of combining the

    protection of life insurance with the attractive prospects of investing in

    securities. A person can choose the

    i nves tmen t f unds t ha t he wan ts t o i nves t h is money , p rovi di ng an

    oppor tuni ty to have a di rect s take in the performance of the f inancial

    market . Customer also benef i t s f rom at t ract ive tax advantages and can

    protect loved ones against unfortunate events .

    How does the plan work?

    The premiums paid are invested in fund/ funds of customer s

    cho ice ( depend ing on t he a ll ocat ion r at e) and uni ts a re a ll ocat ed

    depending on the price of units that the customer holds in the fund/funds.

    The insurance cover and admini st ra tion charges a deducted through

    cancellation of units , The Fund Management Charge is priced in the unit

    value .

    Minimum Sum Assured = 5 time the annual premium.

    Maximum Sum Assured = y t times annual premium.

    The Five funds offered are as under:

    a) Equity Index Fund : The investment objective of this Fund is to

    provide capital appreciation through investment in equities. The

    plan is expected to match the returns given by Nifty Index of the

    National Stock Exchange. This fund wi l l inves t a t l eas t 85% in

    equities and maximum 15% in debt and cash.

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    b) Equity Plus Fund : The investment objective of this Fund is to

    provide capital appreciation through investment in select equities

    s tocks that have the potent ial for high capital appreciat ion. This

    fund wil l invest at least 85% in equit ies and maximum 15% in debt

    and cash instruments.

    c) Debt P lus Fund : The investment object ive of thi s Fund i s to

    provide accumulation of income through investment in high quality

    fixed income securi t ies l ike G-Secs, and corporate debt rates AA

    and above. This fund wil l be invested fully in Debt Instruments and

    money market instruments.

    d) Balanced Plus Fund : T his f un d is a fu nd o f f un ds . T he

    i nv es tme nt o bj ec tiv e o f t hi s f un d i s t o p ro vi de a b al an ce d

    investment be tween long-term capi ta l apprec ia tion and current

    income through investment in the Units of Bajaj Allianzs Equity

    Index and Debt Plus Funds. The balanced fund wil l invest 30% to

    50% in the equity index fund and 50% to 70% in the debt plus fund.

    Cash Plus Fund : The investment objective of this Plan is to have a

    fund tha t guarantees invested capi ta l through investments in l iquid

    money market and short - te rm ins truments l ike Commercia l Papers,

    Cert ificate of Deposits , money market , Mutual Funds, Bank FDs etc. The

    price of units in this fund is guaranteed not to go down.1005 of this fund

    will be invested in money market instruments. The price of the units in

    this fund is guaranteed never to go down.

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    Flexibilities to manage customer investments

    Bajaj Al lianz offers the f lexibil i ty to manage the inves tments.

    Ini t ial ly, the customer can al locate the premium into the 5 funds that are

    available in a proport ion of his/her choice. Subsequently, depending on

    the performance of funds, customer can switch between funds and also

    change the a lloca tion of premium to various funds . They a llow the

    cus tomer t hr ee s wi tches eve ry pol icy yea r s ub ject t o a minimum

    switching amount of Rs. 5,000/- or the fund value, whichever is lower.

    The cus tomer can also change the propor t ion of premium al locat ion to

    various funds at each policy anniversary.

    Unmatched Flexibility to suits the customers changing

    requirements

    Bajaj All ianz Unit Gain Plus offers unmatched f lexibil i ty to suit the

    policy according to the customers requirements.

    Flexibility In Premium Payment : The cus tomer has the

    flexibil i ty to decide how long he/she wishes to pay the premiums

    and when he wants to cash out the policy benefi ts . Customer may

    choose to cash out the pol icy benefi t s at one shot or do i t as and

    when you require cash through partial surrender of units .

    Flexibility to Increase the Sum Assured : The Customerhave the option to increase the Sum Assured without any medical

    tests every 3 r d year up to 4 t imes. The quantum of increase would

    be 25% of the original Sum Assured or Rs 1,00,000/- whichever is

    lower. If the customer does not exercise an option when i t is due,

    i t cannot be carried forward. If the age is les than 18 years at the

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    s tar t of pol icy, al l 4 increments wi l l be avai lable f rom age 18.

    Apart f rom exercising the opt ions to increase the Sum Assured

    without medical tes ts , he/she can increase the Sum Assured any

    time. Subject to medical underwrit ing (available up to age 60). In

    ei ther case, the Sum Assured af ter increase must be equal to or

    less than the maximum Sum Assured avai lable foe the premium

    level chosen. The customer should give notice of increase in death

    benefit 15 days before the yearly policy anniversary.

    Flexibility to decrease the Sum Assured : The customer

    can decrease the Sum Assured (in multiples of 1000) at any time to

    suit their changing needs. The sum Assured, af ter decrease, must

    be at least 5 times the annual premium. After a decrease

    subsequent increases will be subject to underwriting.

    Flexibil ity to Pay Top ups : The cus tomer may have received a

    bonus or some lump sum money. The customer can use that to

    increase his /her inves tments in their pol icy.98% of any amount

    paid as top-up is allocated to their funds.

    Flexibility to increase the level of Regular Premium

    Payment : The customers earnings grow over t ime, and so does

    their savings potent ial . With Bajaj Al lianz Uni t gain Plus , the

    cus tomers w il l have t he f lexi bi li ty t o i nc reas e t he ir r egul ar

    premium amount at any time.

    Assured Protection even if the customer misses payment

    of their premiums : Bajaj All ianz Unit Gain Plus provides the

    customer with the unique features of continued protection even if

    they forget to pay the ir premiums. After payment of three fu ll

    years premiums, when premiums due are not paid, the policy wil l

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    s tay in force wi th ful l benef i ts so long as there are enough uni ts

    ava il ab le f or cha rg ing t he Cos t o f I ns ur ance and Add it iona l

    Benefits after deducting all applicable charges .

    Important Details of the Bajaj Allianz Unit Gain Plus Plan

    Minimum Age at Entry: 0(Risk commences at age 7, and ceases

    after age 70)

    Maximum Age at Entry: 60.

    The minimum age at entry for all additional benefits is 18 years.

    The maximum age at entry for all additional benefits is 50 years.

    All additional benefits are available till age 65.

    Premium Payment Mode

    For the customers convenience, All ianz have provided 3 regular

    premium payment modes that can be Yearly, Half Yearly, and Quarterly.

    They also offer a monthly premium payment mode with salary deduction

    schemes. In addit ion, the customer also has the option to pay top-ups to

    increase his/her investments. The minimum premium is Rs.15000/- for the Annual Mode, Rs .7500/- for Half Year ly, Rs .3750/- for Quar ter ly,

    and Rs.1500/- for the Monthly Mode. The minimum top-up premium is

    Rs.5000/-.

    Partial and Full Withdrawals

    UnitGain Plus offers the full f lexibil i ty of ful l as well as part ialwithdrawals by surrendering units , anytime after 3 ful l years premium

    are paid. The surrenders are paid put at the value of units, and there is no

    s ur render penal ty on par ti al o r f ul l w it hdrawa ls a ft er f ul l 3 year s

    premiums are paid.

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    Key Features

    Guaranteed death benefit

    C ho ice o f 5 inv est men t fu nds w ith flex ib le in vestmen t

    management: you can change funds at any time.

    Attractive investment alternative to fixed-interest securities.

    Provis ion for ful l/part ial wi thdrawals any t ime af ter three full

    years premiums is paid.

    Unmatched flexibility- to match your changing needs.

    Benefits

    Death Benefits

    Cash withdrawal option

    Term Care

    This plan not only offers the cus tomer l i fe insurance cover at a

    low cost , but a lso provides for r eturn of premiums on matur ity. Thepremiums returns at maturity will be equal to the single premium or the

    s um t ot al o f e qu iv ale nt a nn ua l p re miu ms o f t he E co no my P ac k

    (excluding extra premiums charged if any). In case of premature death

    the policy term, the full sum Assured will be paid to the nominee.

    How does the plan work?

    The Bajaj All ianz Term care Plan o ff er s t he cus tomer t he

    convenience of choosing between two premium payment options.

    Regular Premium Payment : Premium payment throughout

    the selected term.

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    Single Premium Payment : One t ime premium payment for

    the selected term at commencement.

    Apart from covering the r isk of natural death, this plan also provides

    the customer the option to choose up to 5 addi tional benef it s. The

    customer can select a speci f ic combinat ion of addi t ional benef i t s bes t

    suited to his/her needs, available in 4 attractive packages to choose from.

    I. Economy : This is the basic plan, which is available for both the

    regular and single premium payment options.

    II. Protect : This pack comes with the following 3 in-built additional

    benefits :

    a) Accidental death Benefit.

    b) Accidental Permanent Total/Partial Disability Benefit

    c) Waiver of Premium Benefi t ( in case of accidental permanent

    total disability)

    The Protect Pack is available with the regular premium payment option

    only.

    III. Health : Thi s pack comes wi th t he f ol lowi ng 2 i n bu il t

    additional benefits :

    a) Critical Illness Benefit.

    b) Hospital cash Benefi t. The health Pack is available with the

    regular premium payment option only.

    IV. Total : This pack comes with the following 5 in-buil t addit ional

    benefits :

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    a) Accidental Death Benefit.

    b) Accidental Permanent Total/ Partial Disability Benefit.

    c) Waiver of Premium Benefi t ( in case of accidental permanent

    total disability)

    d) Critical Illness benefit

    e) Hospital Cash Benefit

    The Total Pack is avai lable wi th the regular premium payment opt ion

    only.

    Benefits :

    Accidental Death Benefit

    Accidental Permanent Total /Partial Disability Benefit

    Waiver of premium Benefit

    Critical Illness Benefit

    Tax Benefits

    Surrender

    Loans

    LOAN PROTECTOR

    The Baj aj A ll ianz Loan Pro tect or p lan i s a mor tgage t er m

    insurance plan that covers the outstanding principal amount of a loan. I t

    is an economical way to protect the family from the burden of repayment

    of the loan in case of death of the loaner. The plan is designed to pay a

    sum insured that wil l be equal to the outstanding principal amount of the

    loan due.

    How does the plan work?

    The Bajaj Allianz Protector Plan offers the convenience of

    choosing between two premium payment options.

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    I. Regular Premium Payment : Premium payment l imi ted to

    approximately 2/3 r d of loan tenure, whi le coverage cont inues for

    the full tenure of the loan.

    II. Single Premium Payment : One t ime p remi um payment

    covering the customer for the full tenure of the loan .

    Joint Life Availability

    The Customer has the option to cover the co-applicant of the loan

    under this plan. Under this opt ion, both l ives wi l l be covered and thedeath benefi t wil l be payable in case of death of ei ther l i fe. The policy

    terminates on death of either life.

    Days of Grace

    In case of non-payment of premiums, a grace per iod of 30 days

    will be al lowed for the yearly, half yearly and quarterly modes (15 daysfor monthly mode). After that the policy will lapse.

    Revival Of the Policy

    I t is possible to revive a policy that has lapse due to non-payment

    of premiums within 5 years from the date of lapse. The revival wil l be

    effected subject to underwrit ing. In case of joint l i fe, revival would be

    subject to underwriting on both lives.

    General Exclusion

    Within 15 days from the date of receipt of the policy, the customer

    have the option to review the terms and condit ions and return the policy,

    i f the cus tomer disagree to any of the term and condi t ions , s tat ing the

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    reasons for his/her objections. The customer wil l be enti t led to a refund

    of the premium paid, subject only to a deduction of a proport ionate r isk

    premium for the period on cover and expenses incurred on medical

    examination and stamp duty charges.

    Benefits :

    Death Benefit

    Premium Payment mode

    Tax benefits

    Surrender values/ paid up values

    CHILD GAIN

    Taking care of a child is perhaps the most important job a parent

    can have. I t is but natural that a person would l ike to give his/her best ,

    and therefore, this is the t ime when careful f inancial planning can help

    t hem t o f ul fi ll t he a sp ir at ions t ha t t he cus tomers have f or h is /her

    children .

    How does the plan work?

    The Bajaj Allianz Child Gain solut ions help the cus tomer to

    enjoy the joys of parenthood responsibi l i ty, wi th the reassurance of a

    secure future for their child.

    Common features in the 4 opt ions of Bajaj Al l ianz Chi ld gain

    Solutions.

    I. Limited Premium Payment Term W hi ch m ea ns t ha t t he

    premiums are payable till the customers child attains age 18 ye ars .

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    II. The customers contributions grow by way of

    compounded annual bonuses, which wi l l be paid to him wi th

    the f irs t guaranteed payout (policy anniversary following age 18 of

    your child) , for in-force policies. In addit ion to the annual bonuses,

    a terminal bonus may also be paid.

    III. The customers are also eligible for Tax benefits under Section 88

    and Section 10 (10 D) of the Income Tax Act.

    IV. Assuring Your Childs Future In an uncertain world , the

    prime interest of yo ur child cannot be jeopardized in any way.

    Which is why the Bajaj Allianz has buil t in some added benefi ts in

    al l thei r plans to protect the interes ts of your chi lds future, by

    counter insuring you- the policyholder.

    Premiums

    For the customers convenience they have provided three Premium

    Payment Modes can be Yearly, Half yearly or Quarterly.

    They also offer a Monthly Premium Payment Mode under salary

    deduction schemes.

    SurrenderThey offer the customer the choice of sur render ing the poli cy

    provided three full ye ars premium have been paid (Two years for

    premium terms of 5 and 6 years). The guaranteed minimum surrender

    value is 30% of al l premiums paid excluding the f irs t year premium and

    excluding the premiums for premium waiver benefi t and Family Income

    benefit and additional benefit opted for. The guaranteed minimum

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    surrender value after the premium payment term will be the discounted

    value of the outs tanding ins tal lment payments discounted at 10 % p.a.

    rate of interest.

    Loans

    L oa ns a re n ot a va ila bl e w it h Bajaj All ianz Child Gain

    solutions.

    15 days Free Look Period :

    Wit hi n 15 days f rom t he dat e o f r ecei pt s o f t he pol icy, t he

    customer have the option to review the terms and condit ions return thepolicy, if he/she disagree to any of the terms and conditions, stating the

    reasons for his/her objections. The customer wil l be enti t led to a refund

    of the premium paid, subject only to a deduct ion of propor t ionate r i sk

    premium for the period on cover and the expenses incurred on medical

    examination and stamp duty charges.

    Exclusions

    The Death Cover is subject to the following Exclusion :

    Suicide within one year from commencement of r isk, whether sane or not

    this product brochure gives the sal ient feature only. The relevant policy

    document i s the conclus ive evidence of the contract , and provides in

    detai l a l l the condi t ions . Exclus ion related to each of plans under the

    Bajaj Allianz Child Gain Solutions.

    INVEST GAIN

    I t takes only a moment to make promises and a l i fet ime to keep

    the m. Kee pin g pro mises mad e to yo ur lo ved o ne s is n ot ju st a

    responsibility, but a commitment that you have to live up to.

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    When you promise to see your family through thick and thin you

    need to make sure that you have planned for al l the eventual i t ies that

    may befall on them. You need to be prepared that even if there ever is an

    instance that you are not there with them you have saved enough to see

    them through their entire life.

    Accidental Death Benefit :

    Accidents are always sudden and sometimes fatal. You cant lessen

    the emot ional shock, but you can cert a in ly sof ten the f inancia l one.

    Bajaj Al lianz Accidental Death Benef it g iv es t he lo ve d o ne s

    something to start with after the permanent loss of income by paying an

    account equal to Sum Assured. (Subject to a maximum of Rs. 50,00,000/-

    under all policies with Bajaj Allianz taken together).

    Accidental Permanent Total/Partial Disability Benefit :

    Accidents are unpredictable and so are the consequences. They may

    lead to a disability partial or total. This benefit provides a financial

    cushion against such misfortunes. You will get 50% of the Sum Assured

    in case of partial disability and 100% in case of total disability. (Subject

    to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total

    disability under all policies with Bajaj Allianz taken together).

    Waiver of Premium Benefit :An accident may lead to permanent total disabil i ty, l imit ing ones

    abil ity to earn . Bajaj Al lianz Waiver of Premium Benef it is a

    helping hand when one needs i t most . I t waives off al l future premiums

    while keeping the valuable l i fe insurance cover al ive, thus enabling you

    to live up to your commitments.

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    Critical Illness Benefit (CI) :

    Some i l lnesses are cri t ical . They not only al ter ones l i fes pattern

    but also result in a financial drain. Bajaj Allianz Critical Il lness

    benefit sof tens the impact on the f ami ly by paying out the Cr i t i ca l

    I l lness Benefi t under the plan immediately, while other policy benefi ts

    con ti nue ( excl ud ing Hos pi ta l Cas h Benef it ). We cover 11 c ri ti ca l

    i l lnesses. The customer have the f lexibil i ty of choosing Crit ical I l lness

    cover up t o t he bas ic Sum Ass ur ed s el ec ted by you ( Mi ni mum Rs.

    50,000)

    Hospital Cash Benefit (HC) :

    The worry of set t l ing hospi tal bi l l s ( room charges) adds to the

    t rauma of hospi tal izat ion. Bajaj Al lianz Hospital Cash Benef it

    reduces this financial burden and helps recovery with peace of mind.

    Flexibility in Coverage :

    All Bajaj Al l ianz, they bel ieve I of fer ing benef i t s and not jus t

    products. They realize that customers are unique and their needs fori ns ur ance var y wit h t ime. They t he re fo re o ff er t he cus tomer t he

    f lexibi l i ty of inclus ion of coverage or exclus ion of coverage at each

    policy anniversary, subject to conditions relating to such inclusions and

    exclusion. Comprehensive Accident Protection can be included and

    excluded at each pol icy anniversary. Family Income Benef i t, Cr it ical

    I l lness benefi t and Hospital Cash Benefi t can be taken at inception only.

    CI and HC can be r educed o r exc luded s ubsequen tl y a t any pol icy

    anniversary . Once reduced or excluded, they cannot be increased or

    included subsequently.

    Increase In risk Coverage

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    Every added responsibi l i ty in a persons l i fe cal l for increase in

    his /her r isk cover. Bajaj All ianz provide the cus tomer the option to

    increase coverage up to 505 of the bas ic Sum Assured on each of the

    following happy moments in their life :

    Your Marriage.

    The Birth of your First Child.

    The Birth of the Second Child.

    This additional coverage is not subject to underwriting

    Bajaj Allianz Cash Gain Platinum :

    Quadruple Sum Assured + Bonuses

    Choice Of Terms

    Keeping the customers convenience in mind, Bajaj Allianz offers

    the customer the widest range of terms : 15, 20, 25,and 30 years.

    Additional Protection For The Customer need Their

    Family

    The customers have the option to add the fol lowing addi tional

    benefits. Providing total protection against uncertainties .

    a) Family Income Benefit (FIB) : The Ult imate Protection For

    your loved Ones . The customer can selec t the unique Fami ly Income

    Benef i t From Bajaj Al lianz that ensures total f inancial protection for

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    t he ir l ov ed o ne s. I n c as e o f d ea th o r a cc id en ta l t ot al p er ma ne nt

    disabi l i ty, a guaranteed monthly income 1% of the Sum Assured (12%

    per annum) is paid till the end of the policy term or at least for a period

    of 10 year s, whichever i s h igher . Moreover , a ll future premiums are

    waived.

    b) Comprehensive Accident protection : This benefi t provides

    comprehensive cover in case of an accident. It comprises of :

    Accidental Death Benefit

    Accidents are always sudden and somet imes fatal . You can t lessen

    the emot ional shock, but you can cert a in ly sof ten the f inancia l one.

    Bajaj Allianz Accidental Death Benefit gives the loved ones something

    to start af ter the permanent loss of income by paying an amount equal to

    the Sum Assured. (Subject to a maximum of Rs 50,00,000/- under al l

    polices with Bajaj Allianz taken together).

    Accidental Permanent Total/ Partial Disability Benefit

    Accidents are unpredictable, and so are the consequences. They may

    lead to a disabil i ty part ial or total . This Benefi ts provides a f inancial

    cushion against such misfortunes. You wil l get 50% of the Sum Assured

    in case of part ial disabil i ty. (Subject to a maximum of Rs. 25,00,000/-

    for part ial Rs. 50,00,000/- for total disabil i ty under al l policy with Bajaj

    Allianz taken together).

    Waiver of Premium Benefit

    An accident may lead to permanent total disabil i ty, l imit ing ones to

    earn. Bajaj All ianz Waiver of Premium Benefi t is a helping hand when

    one needs i t most . I t waives off al l future premiums whi le keeping the

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    val uabl e l if e i ns ur ance cover a li ve , t hus enabl ing you up t o your

    commitments.

    c) Critical Illness Benefit (CI): Some i l lnesses are cri t ical . They

    not only al ter ones l i fes pat tern but also resul t in a f inancial drain.

    Bajaj Allianz Critical Illness Benefit softness the impact on the family

    by payi ng out the Critical Illness Benefit under the

    plan immediately, while other policy benefits continue (excluding

    Hospi tal Cash Benef i t) . We cover 11 cr it ical i l lnesses . The cus tomer

    have the flexibility of choosing Critical Illness cover up to the basic Sum

    Assured selected by you (Minimum Rs. 50,000).

    d) Hospital Cash Benefit (HC): The worry of sett ing hospi tal bi ll s

    ( room charge) adds to the t rauma of hospit al iza tion . Bajaj All ianz

    Hospital Cash Benefi t reduces this f inancial burden and helps recovery

    with peace of mind.

    Flexibility in CoverageIn Bajaj Allianz, they believe in the offering and not just products.

    They realize that the customers are unique and their needs for insurance

    vary with t ime. They therefore of fer the customer the f lex ib i li ty of

    i nc lu si on o f c ov er ag e o r e xc lu si on o f c ov er ag e a t e ac h p ol ic y

    ann iver sa ry , s ub ject t o condi ti ons r el at ing t o s uch i nc lusi ons and

    exclus ion. Comprehensive Accident Protect ion can be included and

    excluded at each pol icy anniversary. Family Income Benef i t, Cr it ical

    I l lness Benefi t and Hospital cash Benefi t can be taken at inception only.

    C I & H C c an b e r ed uc ed o r e xc lu de d s ub se qu en tl y a t a ny p ol ic y

    anniversary. Once reduced or excluded, they be increased or included

    subsequently.

    Increase in Risk Coverage :

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    Every added responsibil i ty in a persons cal ls for increase in his/her

    r i sk cover . Bajaj Al lianz provide the cus tomer the opt ion to increase

    coverage up to 50% of the basic Sum Assured on each of the following :

    Happy moments on their life :

    Your birth of your first child

    The birth of the second child

    This addit ional coverage is not subject to underwrit ing. The opt ion

    should be exercised within 90 days of the occurrence of the said event.

    SAVE CARE ECONOMY

    As the breadwinner of the family yo u shoulder several

    responsibi li ti es. Your spouse s welfare, your childrens education ,

    buyi ng a house or a car you have a lot to think about, everyday. We, at

    Bajaj All ianz, believe that the securi ty and growth of your hard earned

    money should not add to these.

    Which is why they have created the Bajaj All ianz Save Care Economy-

    Single Premium the 10-year Single Premium vers ion of our popular

    Save Care Economy. I t i s an idea l p lan for a one- time lump sum

    investment that provides for saving with high risk-cover.

    What does Bajaj Allianz Save Care Economy SP offer

    you?

    The Bajaj Al l ianz Save Care Economy SP, i s a Single Premium

    investment plan for 10 years that also part icipates in the profi ts of the

    company. The highlights of this plan are:

    Minimum Guaranteed Return up to 3 .54%(depending on age a t

    entry).

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    The Minimum Guaranteed Amount (Sum Assured) would grow

    further by way of compounded annual bonuses.

    A high risk-cover of up to 142% (depending on age at entry) of the

    sum invested from the beginning of the policy term as a f inancial

    safety net to provide for unpredictable adversities.

    Eligible for Tax Benefi ts under Section 88 and Section 10 (10 D)

    of the Income Tax Act.

    A t ma tu ri ty yo u w ill r ec ei ve t he S um A ss ur ed (M in imu m

    Guaranteed Amount) along with the accrued bonuses.

    Death Benefit :

    In case of death dur ing the term of the plan, the nominee wi ll be

    paid the Sum Assured (Minimu