Project BJ

8/13/2019 Project BJ

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A

SUMMER INTERNSHIP

ON

A STUDY ON PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE

Submitted in Partial Fulfilment

Of the Requirement for the

Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

(2010-2012)

SUBMITTED BY: SUBMITTED TO:MOHIT KUMAR BANSAL SUPREET CHAUHAN

ROLL NO. 100222243670 Asst. Professor in CTIMS

PUNJAB TECHNICAL UNIVERSITY


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The Bajaj Allianz General Insurance Corporation LtdZonal office Hamirpur

Himachal PradeshRef no:- zok1/adv/11 Date:- 04/08/2011

This is to certify that Mr. Mohit Kumar Bensal, MBA student

from CTIMS, Jalandhar has undergone summer training/project

assignment at this office and has successfully completed his

project assignment under the title of Study of the products of

Bajaj Allianz Life Insurance under the guidance of Mr. Vipin

Kumar (Associate executive) covering period from 30thJune to

04 August, 2011.

Associate Executive

(Insurance Department)


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CT INSTITUTIONS OF MANAGEMENT STUDIESSHAHPUR CAMPUS JALANDHAR

STUDENT S DECLARATIONI hereby certify that the work which is being presented in this

report entitled by A STUDY ON PRODUCTS OF BAJAJ ALLIANZ

LIFE INSURANCE by Mohit kumar bansal(university roll no

100222243670) in partial fulfillment of the requirement for the

award of degree of MASTERS OF BUSINESS

ADMINISTRATION in the department of CT INSTITUTION OF

MANAGEMENT STUDIES,SHAHPUR CAMPUS,JALANDHAR

under the PUNJAB TECHNICAL UNIVERSITY , JALANDHAR is

an authentic record of my own work carried out during the periodfrom 22ndjune to 7thauguest in 2011. The matter presented in this

project is accurate and authentic.

(Mohit Kumar Bensal)

This is certify that the above statement made by the student is

correct the best of my knowledge.


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Lect. SUPREET KAUR

ACKNOWLEDGEMENT

First of all I would like to thank the management at Bajaj Life Insurance Companyfor giving me the opportunity to do my summer training in their esteemed

organization.I am highly obliged to Mr. Vipin (Business Development Manager) for granting

me an opportunity to undertake training in Hamirpur (HP) Branch. I express mythanks to all sales managers under whose able guidance and direction, I was able to

give shape to my training.Their constant review and excellent suggestions throughout the project are highly

commendable. My sincere thanks to all executives who helped me gain knowledgeabout the actual working and processes involved in various departments.

My sincere thanks to all.


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PREFACE

On the job training in business organization infuses among

students a sense of critical analysis to apply of real managerial

situation to which they are exposed. It gives them an opportunity

to apply their conceptual, theoretical and imaginative skills to the

real life situation and to evaluate the results thereafter.

I was lucky to have got an opportunity to work at Bajaj Allianz

Insurance Cooperation ltd to get the project of my interest. I

visited the concern for six weeks and prepared my project The

Products of Bajaj Allianz Life Insurance.I also got the practical

experience in the field of management.

This report is written account of what I learnt, experienced and

explored during my summer training.


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CONTENTS

EXECUTIVE SUMMARY 7

NEW FAMILY GAIN 9

MEANING OF INSURANCE 10

IMPORTANCE OF INSURANCE 11

DIFFERENCE BETWEEN INSURANCE AND 12ASSURANCE

HISTORY OF INSURANCE 13

MEANING OF LIFE INSURANCE 14

KEY FEATURES OF LIFE INSURANCE 16

ROLE OF LIFE INSURANCE IN THE 17

GROWTH OF THE ECONOMY 17

RESEARCH OBJECTIVES 20

INTRODUCTION ABOUT THE COMPANY 21

MISSION OF THE COMPANY 23

HISTORY OF THE COMPANY 24

PRODUCT OF BAJAJ LIFE INSURANCE 25

RESEARCH METHODOLOGY 35

QUESTIONAIRE 56

LIMITATIONS OF THE STUDY 65

FINDINGS 66

SUGGESTIONS & 66RECOMMENDATIONS

OBJECTIVES QUESTIONAIRRES 67


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CONCLUSION 69

BIBLIOGRAPHY 70

EXECUTIVE SUMMARYBajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz

SE, one of the world's largest insurance companies, and Bajaj Finserv.

Allianz SE is a leading insurance corporation globally and one of the

largest asset managers in the world, that manage assets worth over a

Trillion. With over 115 years of financial experience, Allianz SE is

present in over 70 countries around the world. Bajaj Allianz is into both

life insurance and general insurance. Today, Bajaj Allianz is one of

India's leading and fastest growing insurance companies. Currently, it haspresence in more than 550 locations with over 60,000 Insurance

Consultants. In June 2008, Bajaj Allianz entered into partnership with

Thomas Cook India to provide travel finance. Bajaj Allianz Life

Insurance ensures excellent insurance and investment solutions by

offering customized products, supported by the best technology. A

comprehensive list of policies and products offered by Bajaj Allianz Life

Insurance Co. Ltd. is as follows:


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NEW FAMILY GAINIn this product, the minimum premium which is to be paid by the customer is

Rs.5000. The maximum premium for this product is Rs.10000.The policy term is10 years. The Sum Assured is Rs. 50000 or the Fund Value whichever is higher. It

is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer

can withdraw 75% or whole amount but surrender charges will be taken. After 5years no surrender charges will be charged. In this product customer has the facility

of getting a premium holiday for 2 years after 3 years have been completed and if

he withdraws after 5 years he will get Rs. 30000.The customer will get benefit of Section 80C and Section

10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate andunder Section 10(10D) he will get tax free maturity gains.

NEW UNIT GAIN

In this product, the minimum premium which is to be paid by the customer is

Rs.10000. The maximum premium for this product has no limit. The policy term is10 years.

The Sum Assured is 5 times the premium amount or the Fund Value whichever is

higher. It is a unit linked plan and the Lock-in period is 3 years. After 3 years the

customer can withdraw 75% or whole amount but surrender charges will be taken.

After 5 years there are nosurrender charges . In this product customer has the facility of getting a premiumholiday for 2 years after 3 years have been completed and if he withdraws after 5

years he will get Rs. 60000. The customer will get benefit of Section 80C and

Section 10(10D) of Income tax. Under Section 80 C the customer will get Taxrebate and under Section 10(10D) he will get tax free maturity gains.

Human Life Value ConceptThis concept tells about value of a human life, particularly when he/she is a earning

member of the family. Suppose a person is 30 years old and has a fixed monthly

income of Rs. 10000 and if retires at the age of 60 then he will earn about 36 lakh in

those 30 years. Unfortunately if he/she dies at the age of 32 his family memberswill have a financial loss, so to minimize the loss occurred due to the death of theearning member, one should have insurance of about 36 lacks.

Fixed Deposit compared with Insurance policyIn fixed deposit money is locked in for 5 or more years and in Insurance Policymoney is locked in only for 3 years. In fixed deposit, at maturity TDS (Tax


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deduction at source) is deducted but in Insurance policy, maturity amount is tax free

under Section 10(10D). In fixed deposit the rate of return is about 8-10% but inInsurance policy rate of return is 15% or more. In Fixed deposit, no life insurance is

given but in Insurance policy life insurance is given. In the training period, I have

tried to inform people about the products of Bajaj Allianz Life Insurance.

MEANING OF INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to

life and property. Insurance is a collective bearing of risk. Insurance is a financialdevice to spread the risks and losses of few people among a large number of people,

as people prefer small fixed liability instead of big, uncertain and changing liability.Insurance can be defined as a legal contract between two parties whereby one

party called insurer undertakes to pay a fixed amount of money on the happening ofa particular event, which may be certain or uncertain. The other party called

insured pays in exchange a fixed sum known as premium.

Insurance is desired to safeguard oneself and ones family against possible losses on

account of risks and perils. It provides financial compensation for the losses

suffered due to the happening of any unforeseen events.


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IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial market. Insurance

services play predominant role in the process of financial intermediary. Todayinsurance industry is one of the most growing sectors in India. There is lot of

potential in the Indian Insurance Industry.

There are many issues, which require study. The scope of the study of Insuranceindustry of India would be very great as there are ongoing developments in the

industry after the opening of the sector. The major issue right now is the hike in

FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Innear future Government may allow 49% FDI in Insurance. This would lead to morecapital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private players in the

market. Though market share of LIC has been affected, it has improved in terms of

efficiency.There are number of other hot topics like penetration of Health Insurance, Rural

marketing of insurance, new distribution channels, new product ranges, insurancebrokers regulation, incentive scheme of development officers of LIC etc. So it

offers lot of scope for studying the insurance industry. Right now the insurance

industry has great opportunities in countries like India or China which have huge

population. Also the penetration of insurance in India is very low in both life andnon-life segment so there is lot potential to be tapped. Before starting the discussion

on insurance industry and related issues, we have to start with the basics ofinsurance. So first we understand what is Insurance?How the word insuranceis

different from the wordAssurance?Etc.

DIFFERENCE BETWEEN INSURANCE AND

ASSURANCEAssurance is older in history and it was used to describe all types of Insurance.

From 1826, the term assurance came to be used only for the risks covered by life


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insurance and the term insurance was exclusively used to denote the risks covered

by marine, fire, etc. The word assurance indicated certainty. In life insurance, thereis an assurance from the insurance company to make payment under the policy

either on the maturity or at earlier death. On the other hand the word insurance was

used to denoteindemnity type of insurance where the insurance company was liable to pay only in

case of the loss damage the property. The insured event was bound to happensooner or later under assurance but the event insured against may or may not

happen under insurance. The principle of indemnity applies to insurancecontracts (non-life) only.

An insurance contract is based on some basic principles of insurance.

(1) Principle of utmost good faithIt means maximum truth. Both the parties should disclose all material information

regarding the subject matter of Insurance.

(2) Principle of indemnityThis means that if the insured suffers a loss against which the policy has been made,

he shall be fully indemnified only to the extent of loss. In other words, the insuredis not entitled to make a profit on his loss.

(3) Principle of subrogationThis means the insurer has the right to stand in the place of the insured after

settlement of claims in so far as the insureds right of recovery from an alternative

source is involved. The insurer before the settlement of the claim may exercise theright. In other words, the insurer is entitled to recover from a negligent third party

any loss payments made to the insured. The purposes of subrogation are to hold thenegligent person responsible for the loss and prevent the insured from collecting

twice for the same loss.

The concept of Third Party Claims is based on the same principle.

(4) Principle of causa proximaThe cause of loss must be direct and an insured one in order to claim of

compensation.

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured. Insurableinterest is that interest which considerably alters the position of the assured in the

event of loss taking place and if the event does not take placed, he remains in thesame old position.


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HISTORY OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the

ancient land of Babylonia where traders used to bear risk of the carvanby givingloans, which were later repaid with interest when the goods arrived safely. The

concept of insurance as we know today took shape in 1688 at a place called Lloyds

Coffee House in London where risk bearers used to meet to transact business. Thiscoffee house became so popular that Lloyds became the one of the first moderninsurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the eighteenthcentury. These companies were empowered to write fire and life insurance as well

as marine. The Great Fire of London in 1966 caused huge loss of property and life.

With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in

1967 the first fire insurance company known as the Fire Office.The early history of insurance in India can be traced back to the Vedas. The

Sanskrit term Yogakshema(Meaning well being), the name of Life Insurance Corporation of Indias corporate

headquarters, is found in the Rig Veda. The Aryans practiced some form of

community insurance around 1000 BC. Life insurance in its modern form came toIndia from England in 1818. The Oriental Life Insurance Company was the first

insurance company to be set up in India to help the widows of Europeancommunity. The insurance companies, which came into existence between 1818

and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to20 percent. The first Indian insurance company, the Bombay Mutual Life

Assurance Society, came into existence in 1870 to cover Indian lives at normal

rates.The Insurance Act, 1938, the first comprehensive legislation governing both life

and non-life branches of insurance were enacted to provide strict state control overinsurance business. This amended insurance Act looked into investments,

expenditure and management of these companies.By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75

provident societies carrying on life insurance business in India. Insurance business


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flourished and so did scams, irregularities and dubious investment practices by

scores of companies. As a result the government decided to nationalize the lifeassurance business in India. The Life Insurance Corporation of India (LIC) was set

up in 1956.

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction: the insurer, the insured, and

the owner of the policy (policyholder), although the owner and the insured are oftenthe same person. Another important person involved in a life insurance policy is the

beneficiary. The beneficiary is the person or persons who will receive the policy

proceeds upon the death of the insured. Life insurance may be divided into twobasic classesterm and permanent. Term life insurance provides for life insurance coverage for a specified term of

years for a specified premium. The

policy does not accumulate cash value. Permanent life insurance is life insurance that remains in force until the policy

matures, unless the owner fails to pay the premium when it is due.

Whole life insurance provides for a level premium, and a cash value tableincluded in the policy guaranteed by the company. The primary advantagesof whole

life are guaranteed death benefits, guaranteed cash values, fixed and known annual

premiums, mortality and expense charges will not reduce the cash value shown inthe policy.

Universal life insurance (UL) is a relatively new insurance product intended toprovide permanent insurance coverage with greater flexibility in premium payment

and the potential for a higher internal rate of return. A universal life policy includes

a cash account. Premiums increase the cash account. If you want insurance

protection only, and not a savings and investment product, buy a term life insurancepolicy.

If you want to buy a whole life, universal life, or other

cash value policy, plan to hold it for at least 15 years. Canceling these policies afteronly a few years can more than double your Life insurance costs.


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NEED FOR LIFE INSURANCE

You need Life Insurance because typically the need for income continues for those

who are financially dependent on you, but there is no guarantee of your ability toearn consistently and for the rest of your life. Life insurance can help you safeguard

the financial needs of your family.

This need has become even more important due to steadyDisintegration of the prevalent joint family system, and emergence of nuclearfamilies. The need to protect your family's ever growing needs is why you need

Life Insurance.

Why Do I Need Life Insurance?Thats a common question. Why would you need Insurance? Simply put, Life

brings with it many surprises, some pleasant and some not so and a Life Insurance

Plan ensures that you are better prepared to face uncertainties.How? In a number of ways:

ProtectionYou need life insurance to be there and protect the people you love, making surethat your family has a means to look after itself after you are gone. It is a thoughtful

business concept designed to protect the economic value of a human life for thebenefit of those financially dependent on him. Thats a good reason. Supposing you

suffer an injury that keeps you from earning? Would you like to be a financial

burden on your family, already losing out on your salary?

With a life insurance policy, you are protected. Your family is protected.

RetirementLife insurance makes sure that you have regular income after you retire and also

helps you maintain your standard of living. It can ensure that your post- retirementyears are spent in peace and comfort.

Savings and InvestmentsInsurance is a means to Save and Invest. Your periodic premiums are like Savingsand you are assured of a lump sum amount on maturity. A policy can come in really

handy at the time of your childs education or marriage! Besides, it can be used assupplemental retirement income!


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Tax BenefitsLife insurance is one of the best tax saving options today. Your tax can be savedtwice on a life insurance policy-once when you pay your premiums and once when

you receive maturity benefits. Money saved is money earned!

KEY FEATURES OF LIFE INSURANCE

1) Nomination: -When one makes a nomination, as the policyholder, one continues to be the ownerof the policy and the nominee does not have any right under the policy as long as

he/she is alive. The nominee has only the right to receive the policy money in case

of your death within the term of the policy.

2) Assignment: -If your intention is that your policy monies should go only to a particular person,

you need to assign the policy in favor of that person.3) Death Benefit: -The primary feature of a life insurance policy is the death benefit it provides.

Permanent policies provide a death benefit that is guaranteed for the life of the

insured, provided the premiums have been paid and the policy has not beensurrendered.

4) Cash Value: -The cash value of a permanent life insurance policy is accumulatedThroughout the term of the policy. It equals the amount a policy owner would

receive, after any applicable surrender charges, if the policy were surrendered

before the insured's death.

5) Dividends: -Many life insurance companies issue life insurance policies that entitle the policyowner to share in the company's divisible surplus.

6) Paid-Up Additions: -Dividends paid to a policy owner of a participating policy can be used in numerous

ways, one of which is toward the purchase of additional coverage, called paid-upadditions.

7) Policy Loans: -

Some life insurance policies allow a policy owner to apply for a loan against thevalue of their policy. Either a fixed or variable rate of

Interest is charged. This feature allows the policy owner an easily accessible loan in

times of need or opportunity.

8) Conversion from Term to Permanent: -When in need of temporary protection, individuals often purchase term lifeinsurance. If one owns a term policy, sometimes a provisions available that will


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allow her to convert her policy to a permanent one without providing additional

proof of insurability.

9) Disability Waiver of Premium: -Waiver of Premium is an option or benefit that can be attached to a life insurance

policy at an additional cost. It guarantees that coverage will stay in force andcontinue to grow

BENEFITS OF LIFE INSURANCE1) Risk cover: -Life Insurance contracts allow an individual to have a risk cover against anyunfortunate event of the future.

2) Tax Deduction: -Under section 80C of the Income Tax Act of 1961 one can get tax deduction onpremiums up to one lacks rupees. Life Insurance policies thus decrease the total

taxable income of an individual.

3) Loans: -An individual can easily access loans from different financial institutions bypledging his insurance policies.

4) Retirement Planning: -What had provided protection against the financial consequences ofPremature death may now be used to help them enjoy their retirement years.

Moreover the cash value can be used as an additional income in the old age.

5) Educational Needs: -Similar to retirement planning the cash values that flow from ones life Insurance

schemes can be utilized for educational needs of the insurer or his children.

ROLE OF LIFE INSURANCE IN THE

GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units.It has a Consistent profit and dividend paying

Record accompanied by a steady growth in its financial resources.

Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nation's development. The industry isrecognized as one of the largest financial Institutions in the country. The ventures

initiated by the industry in the areas of Mutual Fund, Housing Finance have done

exceedingly well in recent years. To protect the country's foreign exchangereserves, the reinsurance arrangement are so organized that maximum retention is

made possible within the country while at the same time protecting interests of the

policy holders. SECTION 45 OF THE INSURANCE ACT, 1938

No policy of life insurance effected after the coming into force of this Act shall,after the expiry of two years from the date on which it was effected, be called in


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question by an insurer on the ground that a statement made in the proposal for

insurance or in any report of a medical officer, or referee, or friend of the insured,or in any other document leading to the issue of the policy, was inaccurate or false,

unless the insurer shows that such a statement was on a material matter or

suppressed facts which it was material to disclose and that it was fraudulently madeby the policyholder and that the policyholder knew at that time of making it that the

statement was false or that it suppressed facts which it was material to disclose.

PROHIBITION OF REBATE:

SECTION 41 OF THE INSURANCE ACT, 1938No person shall allow or offer to allow, either directly or indirectly, as an

inducement to any person to take out or renew or continue an insurance in respect

of any kind of risk relating to lives or property in India, any rebate of the whole orpart of the commission payable or any rebate of the premium shown on the policy,

nor shall any person taking out or renewing or continuing a policy accept any

rebate, except such rebate as may be allowed in accordance withThe published prospectuses or tables of the insurer. Any person making default incomplying with the provisions of this section shall be punishable with a fine which

may extend to five hundred rupees.

LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT

It is the special characteristic of life insurance that it not only provides security butis also a form of investment. The insured not only wants to secure his family from

the risk of his death, but also wants to invest in the long term insurance plan. Both

these elements are possible in life insurance because the insurance companypromises to pay a fixed amount on the death of the insured, or on his attaining a

certain age. Element of Protection: Life insurance is the best way of securingagainst financial risks. The member of the family insures his life to provide affixed

amount security to his family in case of death and his family been secured against

any financial strain. Financial problems not only arise on untimely death of the

earning member, but also when the earning member becomes old and his energy towork reduces and so does his source of income also reduce. At this stage, he wants

to retire and lead a peaceful life. And if he has no source of income at this time he

shall have to depend on others, which is a very pitiable stage in old age. That iswhy; a rational man always saves for his old age, so that he doesnt have to depend

on others for maintaining himself. In such plans, insurance holds the prime position

due to the following reasons:1) He makes savings in the form of life insurance. To pay a regular premium he has

to save necessarily. Though premium takes a form of compulsory expense yet fordepositing regular premiums he has to develop a habit of saving. The saving also


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remains secure in life insurance.

2) The savings kept in a bank account can be withdrawn anytime for expenses, butthe amount paid as premium can be received from the insurance company only on

attaining a certain age.

3) Life insurance is also a kind of indirect saving. The life insurance policy cannotbe forfeited by Income Tax department, even after non-payment of income tax.

In this way, the element of economic security is present entirely in a life insurancepolicy. It is both, an element of protection and a helping hand in the old age.

Element of Investment: Life insurance also provides the benefit of investment. Theamount of premium consists, apart from the cost of insurance, an amount of

investment. This investment constantly increases. And this amount of investment is

called Life Fund and represents the element of investment. The Life insurancecompanies invest the amount of life fund to earn profits, and give the benefits of

such profits to the policy holder also. Firstly, while determining the amount of net

premium, the amount of interest is deducted from the cost of insurance thatconstitutes interest from the investment of premium fund. Then the insurancecompanies distribute most of the part of their profits (up to 90%) to the

policyholders as bonus. The investment in Life insurance policy is superior to other

kinds of investments because here there is no risk of losing money and there is noneed to invest the whole amount at one time. Life insurance can be called as the

best kind of risk- free security, on whose security, lending money is also possible.

By nationalization of Life insurance in our country, the insurance policy isguaranteed by the government by which it has become more secure.


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RESEARCH OBJECTIVES

1) To know the consumer responses about Bajaj Allianz life insurance policy.

2) To know about the products of Bajaj Allianz LifeInsurance.

3) To know about the objections of people for not taking the Insurance policy.

4) To know the need for Life Insurance.

5) To know the benefits of Life Insurance.

6) To know the market share of Bajaj Allianz Life

Insurance in the Market.


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INTRODUCTION ABOUT THE COMPANY

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest

Insurance Company and Bajaj Finserv. ( recently demerged from BajajAuto.)Allianz SE is a leading insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth over a Trillion (Over

INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience andis present in over 70 countries around the world. At Bajaj Allianz Life Insurance,customer delight is our guiding principle. Our business philosophy is to ensure

excellent insurance and investment solutions by offering customized products,

supported by the best technology.It started in 2001.

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit ofRs 42 crore for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore

in the corresponding period last year.

The groups life insurance arm, Bajaj Allianz Life Insurance Company, was thebiggest contributor to the firms income. Bajaj Allianz has posted a profit of Rs 68

crore in the June quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore.

Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against

Rs 1,847 crore in the corresponding period last year. Renewal premium, too,

increased to Rs 1,423 crore as against Rs 1,018 crore in the quarter ended June 30,2008. However, new business premium fell 42.28 percent to Rs 577 crore.

ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial servicesproviders. Founded in 1890 in Berlin, Allianz is now present in over 70 countries

with almost 174,000 employees. At the top of the international group is the holdingcompany, Allianz AG, with its head office in Munich. Allianz Group provides its


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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. ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore. 3rd largest Assets under Management (AUM) & largest

amongst Insurance cos. - AUM of Rs.51, 96,959 crore. 12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise 70 countries, 173,750 employees worldwide

BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the

largest manufacturer of two-wheelers and three-wheelers in India and one of the

largest in the world. A household name in India, Bajaj Auto has a strong brandimage & brand loyalty synonymous with quality & customer focus. A STRONG

INDIAN BRAND- HAMARA BAJAJ

Oneof the largest 2 & 3 wheeler manufacturers in the world 21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03

It has joined hands with Allianz to provide the Indian consumers with a distinctoption in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd.


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Mission of the company

India has 121 crore population but only 20 crore people are insured till now. Still101 crore People are yet to be insured. Also in broader perspective, company wants

to make every person get benefited through investing in Bajaj Allianz LifeInsurance. The Company is focusing on improving employee productivity, policy

persistency, operational processes and service levels.

Vision of the Company: Following are the visions of the company;

1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value

4) To aspire to be a world class organization.

5) To encourage organizational transparency.

6) To value integrity.


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HISTORY OF THE COMPANY

Bajaj Allianz Life Insurance Co. Ltd.is a joint venture between two leading

conglomerates- Allianz AG, one of the world's largest insurance companies, andBajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Characterized by global presence with a local focus and driven by customerorientation to establish high earnings potential and financial strength, Bajaj Allianz

Life Insurance Co. Ltd. was incorporated on 12thMarch 2001. The company received the Insurance Regulatory and Development Authority

(IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct LifeInsurance business in India. Bajaj Auto Ltd, the flagship company of the Rs. 8000

crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers inIndia and one of the largest in the world. A household name in India, Bajaj Auto

has a strong brand image & brand loyalty synonymous with quality & customer

focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is

the largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAArated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined

hands with Allianz to provide the Indian consumers with a distinct option in termsof life insurance products.

Details of the CompanyManaging Director and CEOMr. Kamesh Goyal

BOARD OF DIRECTORS:Mr. Rahul Bajaj (Chairman)

Dr. Werner ZedeliusMr. Sanjay Asher

Mr. Niraj BajajMr. Sanjiv Bajaj

Mr. Heinz DollbergMr. Ranjit Gupta


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Mr. S. H. Khan

Mr. Suraj MehtaMr. Dietmar Raich

Mr. Manu Tandon

Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)

PRODUCT OF BAJAJ LIFE INSURANCE

1) BAJAJ ALLIANZ NEW FAMILYGAIN

The thumb rule for buying insurance is that your insurance needs are

minimal in your early earning years, increases with added responsibilities(Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to

find a single insurance plan that can take care of all your changing requirements inlife additional protection, more money to invest, sudden requirement of cash or a

steady post-retirement income. With Bajaj Allianz New Family Gain, you caninvest in one life insurance plan that can take care of all your changing

requirements. This plan has been designed to provide you with maximumflexibility, so that you do not have to worry about your changing needs. The Bajaj

Allianz New Family Gain comes with a host of features to allow you to have the

best of all worlds - Protection and Investments. It enables every participant to create

a solid financial protection and savings plan for himself and his family. In this way,

as a participant in the Bajaj Allianz New Family Gain Plan, you can secure yourwell-being and accumulate savings towards financial independence and acomfortable retirement. The Key Features of the New Family Gain Plan are:

It is a unit linked Endowment type plan with a minimum term of 10 years and

maximum maturity age 70 years. Guaranteed death benefit:

Sum Assured Plus Fund Value of Units. You have the option to choose a host of additional rider benefits: UL Accidental

Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit.

It provides you with an easy, regular contribution mechanism to assist you in

accumulating funds. You can select an investment strategy to grow the funds contributed. Choice of 7 investment funds today with flexible investment management:

you can change funds at any time and also invest in the newer funds that would beintroduced from time to time. The premiums allocated are invested in fund/funds ofyour choice (depending on the allocation rate) and units are allocated depending on


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the price of units for the fund/funds. The value of your policy is the total value

of units that you hold in the fund/funds. The insurance cover charges, policyadministration charges and the additional rider benefit charges are deducted through

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

value.

You can choose a Sum Assured (Level of Protection) that you want in the NewFamily Gain Plan.

Minimum Sum Assured = 5 times of Annualized PremiumMaximum Sum Assured = Policy Term times of Annualized Premium

Death Benefit:The death benefit will be1) On death before attaining the age of 7 year: The death benefit will be the NAV of

the units in the policyholder's account (Fund Value) as on date of receipt of

intimation of death at the office. The policy terminates on the death of the lifeassured.2) On death on or after attaining the age of 7 years: The death benefit will be the

sum assured plus the NAV of the units in the policyholder's account (Fund value)

as on date of receipt of intimation of death at the office.

Maturity BenefitOn maturity, the NAV of units in the fund will be paid out and the policy will

terminate.

Additional Rider Benefits available with New Family GainYou have the option to add the following additional rider benefits, providing total

protection against uncertainties. UL Accidental Death Benefit

UL Accidental Permanent Total & Partial Disability Benefit (Please refer to thebrochure on additional rider benefits for more details.)

Assured protection even if you miss payment of your premiumsBajaj Allianz New Family Gain provides you with the unique feature of continued

protection even if you forget to pay your premiums. After payment of 3 full years'premiums, when premiums due are not paid the policy will be kept in-force, with

full insurance benefits by way of deducting units for the Cost of Insurance and all

other charges, provided the Fund Value less surrender charge, if any does not fallsto an amount equivalent to one annual premium under the policy. Bajaj Allianz

New Family Gain offers you a choice of 7 funds. You can choose to invest fully in

any one fund or allocate your premiums into the various Funds in a proportion thatsuits your investment needs.

TAX BENEFITSPremiums paid and benefits received will be eligible for tax benefits as per


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applicable tax laws. As per the current tax laws: Premiums payable are eligible for

tax benefits as per Section 80C of the Income Tax Act. Partial Withdrawals,Surrender Value, Death Benefit and Maturity Benefit are eligible for tax benefits as

per Section 10(10D) of the Income Tax Act. In case of change in any tax laws

relevant to the policyholder or the fund performance, the same will be applied asper regulations prevailing at that point of time.

RISK OF INVESTMENT UNDER UNIT LINKED PLANSThe Proposed/Life Assured is aware that the investment in the Units is subject to

the following, amongst other risks and agrees that he is making the investment inthe Units with full knowledge of the same.

Unit Linked Life Insurance products are different from the traditional insurance

products and are subject to the risk factors. The premium paid in unit linked life insurance policies are subject to investment

risks associated with capital markets and the Unit Price of the units may go up or

down based on the performance of the fund and factors influencing the capitalmarket and the insured/policyholder are responsible for his/her decisions. Bajaj Allianz Life Insurance is only the name of the insurance company and Bajaj

Allianz New Family Gain is only the name of the policy and does not in any way

indicates the quality of the policy, its future prospects or returns. Please know the associated risks and the applicable charges from your policy

document or by consulting the Company, your Insurance agent or your Insurance

intermediary. Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset Allocation Fund,

Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund are the names of

the funds offered currently with Bajaj Allianz New Family Gain, and in any mannerdo not indicate the quality of the respective funds, their future prospects or returns.

The investments in the Units are subject to market and other risks and there can beno assurance that the objectives of any of the funds will be achieved.

Pure Stock Fund, Equity Index Fund II,Bond Fund, Asset Allocation Fund,

Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund do not offer a

guaranteed or assured return. All benefits payable under the Policy are subject to the tax laws and other

financial enactments, as they exist from time to time.

The past performance of other funds of the company is not necessarily indicativeof the future performance of any of these funds. Important details of the plan:

Minimum Age at Entry: 0 years(Risk commences at age 7)

Maximum Age at Entry: 60 yearsMinimum Age at Maturity: 18 years

Maximum Age at Maturity: 70 yearsMinimum Term: 10 years. For minor lives: 18 minus age at entry of minor


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life subject to minimum of 10 years.

The minimum age at entry for all additional rider benefits is 18 years.The maximum age at entry for all additional rider benefits is 50 years.

For your convenience, we have provided 3 premium payment modes that can be

Yearly, Half-Yearly, and Quarterly. We also offer a Monthly premium paymentmode with salary deduction schemes or ECS. The minimum premium is Rs. 5000

for the Yearly Mode, Rs. 2,500 for Half Yearly, Rs.1,250 for Quarterly and Rs. 500for the Monthly Mode. In addition, you also have the option to pay topups to

increase your investments. The minimum top-up premium is Rs. 1,000. If any dueregular premium is not paid within the days of grace in the first three policy years,

the policy shall lapse. The policyholder will get an opportunity to revive the policy

within two years from the date of first unpaid premium, and if he does not reviveduring this period the contract shall be terminated and the surrender value will be

the fund value as on date of lapse less surrender charge, if any. This would be paid

on the expiry of the revival period or three policy years, whichever is later.

If policy is lapsed and death occurs during this period, the fund value as on date of

lapse would be paid and the policy will terminate immediately.

If all the due premiums have been paid for at least first three consecutive years andsubsequent premiums are unpaid, you will be given an opportunity to revive the

policy within two years from the first unpaid premium. During this limited period

for revival, the insurance covers under the policy shall continue levying allappropriate charges by cancellation of units at the prevailing unit price to meet the

mortality charge and other expense charges until the Fund value in respect of

Regular Premium less surrender charge, if any, falls to an amount equivalent to oneannual premium (NAV) across all the funds.

At the end of two years i.e. period for revival, if the contract is not revived, you canopt to continue the insurance cover under the policy subject to deduction of all

charges until the Fund value in respect of Regular Premium less surrender charge, if

any, falls to an amount equivalent to one annual premium (NAV) across all the

funds.If you do not opt to continue with the insurance cover after the revival period, the

contract shall be terminated by paying the fund value as on date of termination less

surrender charge, if any.When the Fund value in respect of Regular Premium less surrender charge, if any,

falls to an amount equivalent to one annual premium you will be notified about this

and the contract shall be terminated by paying the fund value as on date oftermination less surrender charge, if any.

2) NEW UNIT GAINThis product is similar to New Family Gain but in this product the minimum


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premium that is to be paid is Rs. 10, 000 and there is no limit for maximum

premium. The Sum assured is five times the premium amount. Both these products(New Family Gain and New Unit Gain) were started from 1 July 2006.

Key highlights of Bajaj Allianz New Unit Gain

Your investment, apart from normal allocation receives Loyalty units Equivalent to51% of the first years Annualized Premium over a period of 10 years.

Choice of 2 investment portfolio strategies to manage your investments Better.Your Policy continues to participate in the investment performance of the fund(s),

even if you are not able to pay 3 full years premiums.Maximum flexibility:

Option to increase the premium Partial withdrawal anytime after 3 years from the

commencement of the policy, provided 3 years regular premiums have been paid.

Three free switches every year.

Option to pay unlimited top-up premiums anytime during the tenure of thepolicy, to further enhance your savings. To encourage organizational transparency.

To value integrity.

Three simple terms to choose from: 15, 20 and 25 years. A host of additional rider benefits to provide you with

additional protection.

Guaranteed Life Cover, with flexibility to choose insurancecover to suit your changing needs.

3) PENSION GUARANTEEYour date of retirement is closing in. You want something that gives you an assuredincome long after youre retired. We at Bajaj Allianz Life Insurance are aware of

this need, and have come up with a plan that lasts you for a lifetime. Invest yoursavings in the Bajaj Allianz Pension Guarantee, a plan that gives you a guaranteed

income, till

your time comes.

The Bajaj Allianz Pension Guarantee PlanWith Bajaj Allianz Pension Guarantee, you can ensure a regular income after

retirement. The plan offers you a range of immediate annuities to choose from. The

immediate annuities available are: Bajaj Allianz Pension Guarantee- Life Annuity:Annuity for Life

Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years and life

thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 10 years and life

thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 15 years and life


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thereafter

Bajaj Allianz Pension Guarantee- Annuity Guaranteed for 20 years and lifethereafter

Bajaj Allianz Pension Guarantee-Return of Capital: Annuity for life with Return

of Capital (Purchase Price)How does Bajaj Allianz Pension Guarantee work?

All you have to do is pay a lump sum amount to Bajaj Allianz Life InsuranceCompany and the annuity payments will start after expiry of

monthly/quarterly/half-yearly/ yearly interval corresponding to the payment modeselected by you. Under all the options, annuity is payable for life, so you do not

have to worry about your income stopping at any stage. Under the Return of Capital

option (option 6 above), the amount used to purchase the annuity is paid to thenominee on the death of the annuitant.

Important details of the Bajaj Allianz Pension GuaranteePlan

Minimum Age at Entry 45Maximum Age at Entry 80Minimum Purchase Price Rs. 25,000

Minimum Annuity Installment Rs. 1,000

Annuity Frequency ModeFor your convenience we have provided 4 Annuity Frequency Modes that can be

Yearly, Half yearly, Quarterly or Monthly. The annuity will be payable one

month/quarter/half year/year after the date of purchase depending on the modeselected. The Sample Annuity Rate per annum per Rs.1 lakh of purchase price is

given below. The annuity rate varies between different purchase price bands.

Tax BenefitsThe policy will be eligible for tax benefits under Section 80C of the Income Tax

Act as of now.

4) BAJAJ ALLIANZ PROTECTOR

Dreams and Aspirations - we are constantly driven in our pursuit of these. House,

Consumer Durables, visits to exotic locations are some of the dreams we live for.

And the best way to fulfill them is through easy loans available at todays lowinterest rates. With small equated monthly installments, the price is not too heavy.

Yet, who can predict the unfortunate twists and turns in life?

And in case of unfortunate death of the loanee, the burden of repayment falls on thefamily. Bajaj Allianz Protector is the perfect plan to protect your family from the

repayment liability of outstanding loans. All this at a very nominal cost. Now, is

there a better way to provide for your familys financial security?

The Bajaj Allianz Protector PlanThe Bajaj Allianz Protector Plan is a mortgage term insurance plan that covers theoutstanding principal amount of a loan. It is an economical way to protect the


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family from the burden of repayment of the loan in case of death of the loanee. The

plan is designed to pay a sum insured that will be equal to the outstanding principalamount of the loan due. The Bajaj Allianz Protector Plan offers you the

convenience of choosing between two premium payment options

Regular Premium Payment - Premium payment limited to approximately 2/3rd ofthe loan tenure, while coverage continues for the full tenure of the loan.

Single Premium Payment - One time premium payment covering you for the fulltenure of the loan.

Joint life availabilityYou have the option to cover the co-applicant of the loan under this plan. Under this

option, both lives will be covered and the death benefit will be payable in case of

death of either life. The policy terminates on death of either life.Benefits Payable

Death Benefit

The death benefit is equal to the outstanding principal amount of the loan due as perthe loan schedule, irrespective of changes in interest rate/term at a later stage. Theoutstanding amount of loan due will depend on the loan amount, loan tenure and

interest rate as agreed upon at the time of disbursement of the loan.

Important details of the Bajaj Allianz Protector Plan Eligibility ConditionMinimum Sum Assured Rs. 2, 00,000

Maximum Sum Assured No Limit

Minimum Age at Entry 20 YrsMaximum Age at Entry 55 Yrs

Maximum Age at Policy Expiry Date 65 Yrs

Minimum Term for Single Premium 2 YrsMinimum Term for Regular Premium 5 Yrs

Maximum Term (Regular and Single Premium) 30 YrsPremium Payment Mode

For your convenience we have provided 5 Premium Payment Modes that can be

single premium, yearly, half-yearly, quarterly or monthly. The premium for

frequencies other than yearly mode is the annual premium multiplied with thefrequency factor (0.51 for the half yearly mode, 0.26 for the quarterly mode, and

0.09 for the monthly mode). Monthly mode is permitted only by salary deduction or

direct bank debit. The minimum premiums are Rs. 2500 for the Single Premium,Rs. 1000 for the annual mode, Rs. 700 for the half-

yearly mode, Rs. 450 for quarterly mode and Rs. 175 for monthly.

Tax Benefits

Tax benefits under Section 80C and Section 10(10)D available as per applicable taxlaws. All payments due under this plan shall be governed by tax laws applicable at


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that point of time.

Surrender values/Paid up ValuesThere are no surrender values or paid-up values under this plan.

Loans

Loans are not available under this planChange of Occupation

On change of occupation, depending upon the nature of the new occupation, thepremiums and benefits may be modified.

Days of GraceIn case of non-payment of premiums, a grace period of 30 days will be allowed for

the yearly, half yearly and quarterly modes (15 days for the monthly mode). After

that the policy will lapse.

Revival of the Policy

It is possible to revive a policy that has lapsed due to non- payment of premiums

within 5 years from the date of lapse. The revival will be effected subject tounderwriting. In case of joint life, revival would be subject to underwriting on bothlives.

General Exclusion

In case the life assured (in case of joint life, either of the life assured) commitssuicide within one year from the date of commencement / reinstatement of the

policy, the benefits of the plan would not be payable, and the premiums would be

refunded.

5) TERM CARE

Life Insurance.....

At the back of our minds we are often nagged by certain fears, the fears of anuncertain future, the insecurity of not being able to provide adequately for our

loved ones, the fear of not being able to save enough. Life Insurance is the onlycomplete answer to these fears. It is life insurance that provides you with the

security of a financial safety net and enables you to plan for unpredictable

adversities. Happiness often sneaks in through a door you didn't know you left

open. Let life insurance be that door for you.The 'Bajaj Allianz Term Care' Plan

The 'Bajaj Allianz Term Care' Plan is a term insurance plan. It is an economical

way of providing for one's life cover and at the same time ensuring that thepremiums paid are returned at maturity.

What does the 'Bajaj Allianz Term Care' Plan offer you?

This plan not only offers you life insurance cover at a low cost, but also providesfor return of premiums on maturity. The premiums returned at maturity will be

equal to the single premium or the sum total of equivalent annual premiums of theEconomy Pack (excluding extra premiums charged, if any). In case of pre-mature


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death during the policy term, the full Sum Assured will be paid to the nominee. The

'Bajaj Allianz Term Care' Plan offers you the convenience of choosing between twopremium payment options.

Regular Premium Payment

- Premium payment throughout the selected term. Single Premium Payment

- One time premium payment for the selected term at commencement. Apart fromcovering the risk of natural death, this plan also provides you the option to choose

upto 5 additional benefits. You can select a specific combination of additionalbenefits

best suited to your 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 Benefit (in case of accidental permanent total disability).

The Protect Pack is available with the regular premium payment option only.

iii. Health:This pack comes with the following 2 in-built additional benefits:

a. Critical Illness Benefit.

b. Hospital Cash Benefit.The Health Pack is available with the regular premium payment option only.

iv. Total:This pack comes with the following 5 in-built additional benefits:

a. Accidental Death Benefit.

b. Accidental Permanent Total/Partial Disability Benefit.

c. Waiver of Premium Benefit (in case of accidental permanent total disability).d. Critical Illness Benefit.

e. Hospital Cash Benefit.

The Total Pack is available with the regular premium payment option only.What are the in-built benefits that the 'Bajaj Allianz Term Care' Plan offers you?

a. Accidental Death Benefit

Accidents are always sudden and sometimes fatal. You can't lessen the emotionalshock, but you can certainly soften the financial one. Bajaj Allianz Accidental

Death Benefit gives your loved ones something to start with after the permanentloss of your income by paying double the basic Sum Assured. The total Accidental


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Death Benefit shall however be subject to a maximum of Rs. 10, 00,000/- under all

policies taken with Bajaj Allianz together.b. Accidental Permanent Total/Partial Disability Benefit

Accidents are unpredictable and so are the consequences. This may lead to a

disability - partial or total. The Bajaj Allianz Accidental Permanent Total/PartialDisability Benefit provides a financial cushion against such misfortunes.Type of

Disability BenefitsAccidental Permanent Partial Disability 50 % of Sum

Assured *Accidental Permanent Total Disability 100 % of Sum

Assured **

* Subject to a maximum of Rs. 5, 00,000/- under all policies with Bajaj Allianztaken together.

** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz

taken together.c. Waiver of Premium BenefitAn accident may lead to permanent total disability limiting your ability to earn. The

Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most.

It keeps your insurance cover alive by waiving off future premiums and enables youto live up to

your commitments.

d. Critical Illness BenefitSome illnesses are critical. They not only alter your life's pattern but also result in a

financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your

family by paying out the Critical Illness Benefit (equal to the Sum Assured) underthe plan immediately, while other policy benefits continue (excluding Hospital

Cash Benefit). We cover 11 Critical Illnesses.e. Hospital Cash Benefit

The worry of settling hospital bills (room charges) adds to the trauma of

hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden

and helps you to recover with peace of mind.Flexibility in Coverage*

At Bajaj Allianz, we believe in offering benefits and not just products. We realize

that you are unique and your needs for insurance vary with time. We therefore offeryou the flexibility of including the following benefit combination at each policy

anniversary.

Combination 1:

Accidental Death Benefit; Accidental Permanent Total/Partial Disability Benefit;Waiver of Premium Benefit.This combination can be added, if not taken earlier,


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deleted and added subsequently at each policy anniversary.

We also offer the flexibility of excluding the following benefitcombination:

Combination 2:

Critical Illness Benefit; Hospital Cash Benefit. This combination can be taken atinception only but can be excluded subsequently at any policy anniversary. Once

excluded, Combination 2 cannot be included in the policy subsequently.* Available with the regular premium payment option only

Other important details of the 'Bajaj Allianz Term Care' Plan.

Eligibility Condition

Minimum Age at Entry 18 YearsMaximum Age at Entry 50 years

Maximum Age at Maturity 65 years

Minimum Term 5 yearsMaximum Term 40 yearsMinimum Sum Assured Rs. 1,00,000/-

Maximum Sum Assured Rs. 10,00,000/-

Minimum Premium Rs. 1500/- forYearly, Rs. 1500/- for

Half Yearly.

The minimum premium for Single Premium option shall be Rs. 6000/-Premium Payment Mode


single premium, yearly or half-yearly.

6) NEW UNITGAIN PREMIER SP

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT

PORTFOLIO IS BORNE BY THE POLICYHOLDER

You and Your investments deserve more

This is why we have designed a unique plan that really offers you more? NewUnitGain Premier SP is a unique insurance cum investment plan that provides your

investment a zing from the start, by allocating 105% of the single premium paid

from day one, thereby ensuring that you get MORE.Bajaj Allianz New UnitGain Premier SP is exactly what the name suggests, with a

wide range of high quality investment funds to choose from coupled with flexible

investment management. You really have the best of all worldsinvestment,insurance and tax benefits. With Bajaj Allianz New UnitGain Premier SP, you can

invest in one life insurance plan that can take care of all your changingrequirements, be it your investment needs, children education needs or peaceful


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golden years. This plan has been designed to provide your family with higher

financial assistance should anything unfortunate were to happen to you as well asflexibility, so that you do not have to worry about your changing needs.

The Key Features of the New UnitGain Premier SP Plan are:

It is a unit linked plan with minimum term of 10 years and maximum maturity age70 years.

Convenient single premium payment. 105% of the single premium is allocated.

Guaranteed death benefit. You can adopt your own investment strategy to grow the funds.

Choice of three investment funds today with flexible investment management:

You can change funds at any time and also invest in the newer funds that may beintroduced from time to time subject to prior approval from IRDA.

Partial or full withdrawal facility, after three years from commencement (subject

to surrender charge, if applicable).How does the Bajaj Allianz New UnitGain Premier SP plan work?105% of the single premium paid is invested in fund/funds of your choice and units

are allocated depending on the price of units for the fund/funds. The fund value of

your policy is the total value of units that you hold in the fund/funds. The mortalitycharge and policy administration charge are deducted through monthly cancellation

of units. The Fund Management Charge is priced in the unit value.

Death Benefit:

You can choose a Sum Assured (Level of Protection) that you want in the New

UnitGain Premier SP Plan.

Minimum Sum Assured = 1.25 times the single premiumMaximum Sum Assured = Y times the single premium where

Y will be as per the following table:Age 0 - 17 1835 36 - 45 46 - 50 5155 5660 Group

Y 10 10 7 5 3* 2*

* Multiplier may be increased to 5 in special cases on case- to-case basis.

Benefits available under the plan

Death Benefit:

On death before the age of 7 years:

The death benefit will be the NAV of the units in the policyholders account (FundValue) as on date of receipt of intimation of death at the office. The policy

terminates on the death of the life assured.

On death after the age of 7 years and before the age of 60 years:

The death benefit will be the higher of the sum assured less the value of the unitswithdrawn by partial withdrawals in the last 24 months prior to the date of death or


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the NAV of the units in the policyholders account (Fund value) as on date of

receipt of intimation of death at the office.On death of the life assured on or after attaining the age of 60 years:

The benefit will be the higher of the sum assured less the value of the units

withdrawn within two years before attaining age 60 years and all the withdrawalsmade after attaining age 60 years or the value of the units in the policyholders

account (Fund Value) as on the date of intimation of death at the office.

Maturity Benefit:

On maturity, the value of the units is payable to the life assured/ policyholder.

Fund Value:

The Fund Value is equal to the number of units under this policy multiplied by the

unit price on the relevant valuation date.

Unit Price:

The unit price of each fund is arrived at by dividing the Net Asset Value (NAV) of

the fund by the number of units existing in the fund at the valuation date (beforeany new unit is allocated or cancelled)

Valuation Date:

The Company aims to value the Funds on each day the financial markets are open.

However, the Company reserves the right to value less frequently in extremecircumstances, where the value of the assets may be too uncertain. In such

circumstances, the Company may defer valuation of assets until a certainty on the

value of assets is resumed. The deferment of valuation of assets will be subject toprior consultation with IRDA. Currently, the cut-off time is 3 p.m. for applicability

of Unit Price of a particular day for switches, redemptions and publication of Unit

Price.

Cash withdrawal option:

You can withdraw (partially or fully) anytime after three years from the date ofcommencement.

In case of partial withdrawal, a minimum balance of Rs.20,000 or one-tenth of the

Single Premium, whichever is higher, across all funds must be maintained, and the

minimum withdrawal amount is Rs. 5,000. The surrender charge applicable forpartial withdrawal would be 6% in the 4th year, 4% in the 5th year, 2% in the 6th

year, & 0% thereafter. In case the policy is taken on the life of a minor,

the partial withdrawals shall not be allowed until the minor (life insured) attainsmajority (i.e. on or after attainment of age 18).

Surrender:

Full withdrawal of units by way of surrender of the policy is allowed after three

years from commencement. The surrender charge applicable for full withdrawalwould be 6% in the 4th year, 4% in the 5th year, 2% in the 6th year, & 0%


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thereafter.

Important Details of the Bajaj Allianz New UnitGain Premier SP PlanMinimum

Maximum

Age at Entry 0 Yrs (Risk commences at age 7) 60 YrsTerm 10 Yrs

Age at Maturity 18 Yrs70 Yrs

Single Premium Rs. 50000No limit

Termination of the Policy

The policy will terminate on occurrence of any of the following:a) The units in the policy are fully surrendered

b) The account value becomes equal to one tenth of the single premium paid.

c) The death of the Life Assuredd) On maturity, if settlement option is not takene) The expiry of the period for the Settlement Option

On the occurrence of (a) and (b) above the value of the units, if any, would be paid

to the life assured/policyholder upon such termination, subject to surrender penalty,if applicable. In case of (c), death benefit will be paid as mentioned separately

herein. In case of (d) and (e), the value of the units, if any is paid to the life

assured/policyholder at maturity or at each installment date, as applicable under thesettlement option.

7) CHILD GAIN

Are your children destined for greatness? Will they devise the universal currency,

or solve the problem of global warming? Will they make music like we have neverheard before, or keep shattering records in sports? Will they bring God to men, or

peace to the world? Your children may just be the ones to end wars, feed the

hungry, and care for many. Your child can aim for the highest echelons of success,

for greatness, and immortal fame. Your child can dream. But before your childdoes, you must.

Bajaj Allianz Child Gain Plan

Taking care of a child is perhaps the most important job a parent can have. It isnatural that you would like to give your child your best, and therefore, this is the

time when careful financial planning can help you fulfill the aspirations that you

have for your children. The Bajaj Allianz ChildGain Solutions help you to enjoy thejoys of parenthood responsibly, with the reassurance of a secure future for your

child.What does Bajaj Allianz ChildGain Plan offer you?


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Bajaj Allianz Child Gain offers a wide array of solutions that allows you to plan for

your childs future by providing you with as many as 4 distinct and unique options.Option 1: Child Gain 21

Option 2: Child Gain 24

Option 3: Child Gain 21 PlusOption 4: Child Gain 24 Plus

Common features in the 4 Options of Bajaj Allianz ChildGain Plan1. Limited Premium Payment Term which means that the premiums are payable till

your child attains age 18 years.2. Your contributions grow by the way of compounded annual bonuses, which will

be paid to you with the first guaranteed payout (policy anniversary following age 18

of your child), for in-force policies. In addition to the annual bonuses, a terminalbonus may also be paid.

3. You are eligible for Tax Benefits under Section 80C and Section 10(10) D of the

Income Tax Act.4. Assuring Your Childs Future: In an uncertain world, the prime interest of yourchild cannot be jeopardized in any way. This is why we have built in some added

benefits in all our plans to protect the interests of your childs future, by counter

insuring you- the policy holder.Inbuilt Benefits

Premium Waiver Benefit:

In case of death or accidental total permanent disability of the policyholder duringthe premium payment term, all future premium payments are waived. This benefit

will not be available in the event of accidental permanent total disability after age

65 of the policyholder.

Family Income Benefit:In case of death or accidental total permanent disability of the policyholder during

the term of the policy, a monthly income benefit of 1% of the sum assured (12% per

annum) subject to a maximum of

Rs.10,000 p.m. becomes payable till the end of the policy term. This benefit willnot be available in the event of accidental permanent total disability after age 65 of

the policyholder.

Option to Purchase further Insurance at Maturity:For ensuring continuity of thevaluable insurance protection that the child was enjoying, we offer the child an

option to purchase a with profits endowment or an equivalent plan from Bajaj

Allianz Life Insurance Company for twice the amount of face value of this policy,without any medical examination, on the premium rates prevailing at that time (The

application must be made at least 6 months prior to maturity of this policy).Payout Structures


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For Child Gain 21 and Child Gain 21 Plus: The minimum guaranteed payouts are as

follows:Policy Anniversary following 18 19 20 21

Completion of Age

Payout as % of Sum Assured 20% + Accrued 25% 25% 35%*Bonuses

For Child Gain 24 and Child Gain 24 Plus: The minimum guaranteed payouts are asfollows:

Policy Anniversary following 18 20 22 24Completion of Age

Payout as % of Sum Assured 25% + Accrued 25% 25% 40%

Bonus refers to probable increase in payout based on higher interest during thepayout period.

Start of Life Benefit

Unique Feature of Bajaj Allianz ChildGain 21 Plus and 24 PlusThese packages offer you the choice of providing a unique Start of Life Benefit foryour child. For a nominal amount, an additional Sum Assured subject to a

maximum limit of Rs. 10 lacks will become payable to enable the child start his/her

professional life smoothly, in case of an unfortunate death or Accidental PermanentTotal Disability of the Policyholder during the term of the policy. This benefit will

not be available in the event of accidental permanent total disability, after age 65 of

the policyholder.

Premiums


Yearly, Half-yearly, Quarterly and monthly. We also offer a Monthly PremiumPayment Mode under salary deduction schemes.

Surrender

We offer you the choice of surrendering the policy provided three full years

premiums have been paid (Two years for premium payment terms of 5 and 6 years).

The guaranteed minimum surrender value is 30% of all premiums paid excluding

the first year premium and excluding the premiums for Premium Waiver Benefitand Family Income Benefit and Additional Rider Benefit if opted

For example, The guaranteed minimum surrender value after the premium payment

term will be the discounted value of the outstanding installment paymentsdiscounted at 10% p.a. rate of interest.

Loans

Loans are not available with Bajaj Allianz ChildGain PlanExclusions

The Death Cover is subject to the following Exclusion:Suicide within one year from commencement of risk, whether same or not.


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8) INVEST PLUS

Bajaj Allianz Life Insurance launches Invest PlusLeading private sector life and general insurance company, Bajaj Allianz Life

Insurance has launched Invest Plus, which offers upfront minimum guaranteedinvestment returns at the beginning of each year, a company statement said here.

Invest Plus is the first of its kind traditional plan that offers upfront minimumguaranteed investment returns at the beginning of each year and a guaranteed

maturity value so that customers can feel protected at all times and plan theirinvestments without any worries.

"Invest Plus offers guaranteed benefits in these uncertain times. The USP is the

transparency of a ULIP product in a traditional product," Bajaj Allianz LifeInsurance Country Manager, Allianz & CEO, Kamesh Goyal said. The minimum

guaranteed investment returns works towards the benefit of the customer as he gets

an upfront minimum guaranteed rate of returns. This would be beneficialirrespective of market conditions as he is equally compensated by guaranteedreturns, Goyal said. Minimum guaranteed returns stands for a rate of return which is

declared at the beginning of each financial year itself and promises to offer the

customer the same return for the year irrespective of the market scenario, it said.The company has announced minimum guaranteed returns for FY10 at 7 percent.

Bajaj Allianz Invest PlusPresenting a one-of-its-kind investment plan that is secure, accountable andtransparent - All in one. Bajaj Allianz Invest Plus helps you get security while

ensuring peace of mind. The guaranteed investment returns give you a great

maturity benefit and protection to your family. You can multiply your returns bypaying additional premiums. Securing the future of your family and yourself was

never this easy. Enjoy your life with this all-in-one plan, and leave your worries tous.

Key features of Bajaj Allianz Invest Plus: Guaranteed Investment Returns and minimum Guaranteed Maturity Value.

10% of each Net Premium added as Loyalty Additions from the 11thPolicy Year Refund of a proportion of the cost of your life insurance cover at maturity

Option to pay Premium over and above the Regular Premium to acquire

Additional Accrued Maturity Value Choice of insurance cover as per your requirement

Option to take loan up to 85% of the surrender value of Accrued Maturity Value.

Option to en-cash partially the Additional Accrued Maturity Value A host of optional Additional Rider Benefits to choose from

Option to reduce the regular premium from the fourth policy year

How does Bajaj Allianz Invest Plus work?


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For Your policy the Company will maintain two accounts; an Accrued Maturity

Value (AMV) account for regular premiums and an Additional Accrued MaturityValue (AAMV) From the Regular Premium paid by you a Life Insurance Risk

Premium for, the Sum

Assured chosen and the Additional Rider Benefits premium, if any, will bededucted upfront and 95% of the resulting Net Premium shall be added to your

Accrued Maturity Value (as and when the Regular Premium is received by theCompany). You can pay Additional Premium over and above the Regular Premium

any time (Except during last three years before maturity) which shall be added toyour Additional Accrued Maturity Value (AAMV) account, after multiplying the

Additional Premium paid by you with the Additional Premium Factor.

The Accrued Maturity Value (AMV) and the Additional Accrued Maturity Value(AAMV), if any, shall be further enhanced at the rate of Guaranteed Investment

Return (GIR) on a monthly basis.

The Loyalty Additions at the rate of 10% of the Net Premium will further enhanceyour Accrued Maturity Value (AMV) from the 11th policy year as and when thepremiums are received by the Company.

The fund in respect of your Accrued Maturity Value (AMV) and Additional

Accrued Maturity Value (AAMV), if any, shall be invested in a Controlled Fund.The investment mix of the Controlled Fund shall always be in such proportion as

that stipulated by the Insurance Regulatory and Development Authoritys (IRDAs)

relevant regulations on investments for the non-linked business including anychange in future.

Bajaj Allianz Invest Plus offers you the following cover choices:You can choose sum assured as 5 times, 10 times, 15 times or 20 times (subject tomaximum of chosen policy term times) of annual premium.

Additional Rider Benefits availableThe following additional rider benefits in the form of rider can be availed at the

option of the policyholder.

Accidental Death Benefit Rider

Accidental Total / Partial Disability Benefit Rider Critical Illness Benefit Rider

Hospital Cash Benefit Rider

Waiver of Premium Rider Family Income Benefit Rider(Please refer to the additional rider benefits brochure

for more details.)

Death Benefit

The Death Benefit payable to the Nominee (provided the policy is in force) will be

equal to the amount of Sum Assured under the Policy plus the Accrued MaturityValue plus the Additional Accrued Maturity Value, if any, as on date of receipt of


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intimation of death at the office of the Company. In case of paid up policy, the

death benefit shall be higher of the reduced Sum Assured and the Paid Up AccruedMaturity Value, plus the Additional Accrued Maturity Value, if any, as on the date

of receipt of intimation of the death.

In case of lapsed policy, the death benefit shall be equal to the Additional AccruedMaturity Value, if any, as on the date of receipt of intimation of the death.

Maturity BenefitThe maturity benefit shall be

The Accrued Maturity Value as on Maturity Date plus Refund of aProportion of the total life insurance premium paid (excluding any rider premium,

extra premium and service tax); subject to a minimum of the Guaranteed Maturity

Value Plus the Additional Accrued Maturity Value, if any, as on Maturity Date. The

refund proportion of the total life insurance premium on maturity shall be made

only if all the due regular premiums till maturity date have been paid. Theproportion will be 50% for policy term 10, 75% for policy term 15 and 100% forpolicy term 20 & 25.

The Guaranteed Maturity Value (GMV) shall be equal to the total regular premium

paid till maturity date excluding rider premium, any extra premium & service taxand is applicable only if the entire due premiums have been paid under the policy

till maturity.

SurrenderYou may surrender the policy after three policy years, provided first three years

Regular Premiums have been paid in full. The Surrender Value shall be equal to the

Accrued Maturity Value plus the Additional Accrued Maturity Value, if any, lessapplicable penalty and subject to application of Market Value Adjustment (MVA),

if any.

Guaranteed Investment ReturnThe Company will declare a Guaranteed Investment Return for a year at the start of

each financial year keeping in view the expected rate of Investment Return in the

coming financial year. The Guaranteed Investment Return shall be used to enhancethe Accrued Maturity Value and the Additional Accrued Maturity Value, if any, on

a monthly basis at end of each calendar month. For any cash flow taking place

during the month, the GIR for that cash flow shall be calculated and credited for thefraction of the month.

The Guaranteed Investment Return declared by the Company for the

Financial Year2010 -11 is 7%.Loyalty AdditionsIf the Regular Premium has been paid in full for the first 10 Policy Years, then from


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the 11th Policy Year, the Company will add Loyalty Addition to the Accrued

Maturity Value equal to the 10% of the subsequent net premium on receipt of eachRegular Premium by the Company.

Market Value Adjustment (MVA)Market Value Adjustment (MVA) will be the reduction to the AMV and/or theAAMV that may be applied by the company on the date of Full or Part surrender

payment, based on the need for the Company to realize the investments and themarket value of the assets as on that date. The MVA shall not be applicable in case

of death or maturity.

Policy LoanYou can avail up to 85% of the surrender value of the Accrued Maturity Value as

loan from the Company, after three policy years at prevailing rate of interestprovided at least three years regular premiums have been paid in full. On payment

of death, maturity or surrender benefit, any outstanding loan amount with interest

shall be deducted from the benefit.Option to en-cash partially You can opt for Part Surrender of your Additional Accrued Maturity Value after

three years from the date of payment of each such additional premium.

The minimum amountof Part Surrender from Additional Accrued Maturity Valueis Rs.5, 000

Only one Part Surrender request is allowed in a calendar month.

In case of minor life, Part Surrender is allowed after attaining age 18 years. The Part Surrender of the AdditionalAccrued Maturity Value will be subject to

deduction of Surrender Penalty, as applicable.

The actual amount payable as Part Surrender may differ from the face value of theAdditional Accrued Maturity Value being surrendered, due to the application of the

Market Value Adjustment (MVA) and surrender penalty.

Option to Reduce the Regular PremiumYou can reduce your regular premium after three policy years by giving a written

notice at least 30 days prior to a policy anniversary, provided you have paid all due

regular premiums till date. Such reduction in regular premium shall be subject tothe minimum regular premium payable under the product at the time of such

reduction and further the revised regular premium shall not be less than the life

insurance premium and the rider premium, if any, including any extra premium,payable under the policy.

Any reduction in regular premium shall not result in any reduction of sum assured.

The reduction in regular premium shall be effected from the policy anniversary.

Non-ForfeitureIn the event of non-payment of Regular Premiums due under the policy within theGrace Period the following provisions will be applicable:


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If the failure to make payment of Regular Premium occurs in the first 3 Policy

Years, the Policy will lapse for all Life Insurance Cover and rider cover and noSurrender Value or Death Benefit in respect of the Accrued Maturity Value shall

be payable. However Surrender Value in respect of Additional Accrued Maturity

Value, if any, shall be payable on the termination of the Policy on the expiry of theRevival Period. The AMV of a lapsed policy shall not participate in the Guaranteed

Investment Return during the lapsed period, but the AAMV will continue to beenhanced by the Guaranteed Investment Return during the lapse period.

In case of earlier death of the life assured under a lapsed policy, theAdditional Accrued Maturity Value, if any, shall be payable.

If at least three full years Regular Premium has been paid, the Policy will be

converted to a Paid-Up Policy and the Accrued Maturity Value shall be reduced tothe Paid up Accrued Maturity Value by deducting the Premium Discontinuance

Penalty from the Accrued Maturity Value as on date of first unpaid premium. The

Paid up Accrued Maturity Value and the Additional Accrued Maturity Value, ifany, shall continue to participate in the Guaranteed Investment Return. The SumAssured shall be reduced by applying the proportion of number of premiums paid to

the total number of premiums payable till the Maturity Date. .

In the case of the death of the Life Assured under a Paid-Up Policy, the Companyis liable to pay a Death Benefit equal to the higher of the reduced Sum Assured and

the Paid-up Accrued Maturity Value, plus the Additional Accrued Maturity Value,

if any, as on the date of receipt of intimation of the death. . Under a Paid-Up Policy, no Additional Rider Benefit shall be payable.

Parameter DetailsMinimum Age at Entry 7 years (18 years in case of allAdditional Rider Benefits)

Maximum Age at Entry 60 years (50 years in case of allAdditional Rider Benefits)

Minimum Maturity Age 18 years

Maximum Maturity Age 70 years

Additional Rider Benefit 65 yearsCeasing Age

Policy Term 10, 15, 20 and 25 years

Minimum Premium* Rs. 10,000 per yearly installment,half-yearly installment, Rs. 5,000

quarterly installment, Rs. 2,500

monthly mode Rs. 1000(Monthly mode is available through ECS salary saving scheme only.)


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9) BAJAJ ALLIANZ CARE FI

Documents

Project BJ